WORLD TRADE  
ORGANIZATION  TN/AG/26 
21 April 2011 
 (11-2086) 
Committee on Agriculture 
Special Session  
 
 
 
NEGOTIATING GROUP ON AGRICULTURE 
 
Report by the Chairman, H.E. Mr. David Walker,  
to the Trade Negotiations Committee  
 
21 April 2011 
 
 
1. In the period since I assumed the role of Chai r in April 2009, the Committee on Agriculture in 
Special Session (hereinafter referred to as the Negotiating Group) has undertaken the following broad 
streams of work: 
(a) I have undertaken consultations on the i ssues that are bracketed or otherwise 
annotated in the documentation before the Negotiating Group – the Draft Modalities 
text TN/AG/W/4/Rev.4 together with TN/AG/W/5, TN/AG/W/6 and TN/AG/W/7.1 
(b) The Negotiating Group has worked on the technical development of "Templates" for 
the presentation of data, both that requir ed for the establishment of Modalities and 
that required for the eventual scheduli ng of commitments, based on the Draft 
Modalities as contained in TN/AG/W/4/Rev.4. 
(c) The Negotiating Group has also separately un dertaken some substantive discussion of 
data requirements associated with TN/AG/W/4/Rev.4, together with progressive 
submission and verification of data requir ed by the provisions of TN/AG/W/4/Rev.4 
to be annexed to the Modalities themselves. 
(d) Over the past year, Members have also been giving some consideration to areas of 
technical ambiguity that may exist, or tec hnical clarification that may be needed, in 
the text of TN/AG/W/4/Rev.4. 
2. This report covers each of these activities.2 
                                                      
1 These documents are attached to this report. 
2 This report incorporates and, as relevant, builds on the report (TN/AG/25) I presented to the Trade 
Negotiations Committee on 22 March 2010 covering the activities of the Negotiating Group to that point.  Also 
attached is a list of communications relating to the work of the Negotiating Group formally submitted by Members since the issuance of TN/AG/W/4/Rev.4.  Work on "Clarifications" and "Template Development" has 
also benefitted from a range of informal contributions from Members. TN/AG/26 
Page 2  
 
  I. DRAFT MODALITIES TEXT (TN/AG/W/4/REV.4) 
A. C
HAIR 'S CONSULTATIONS ON ISSUES BRACKETED OR OTHERWISE ANNOTATED IN 
DOCUMENTATION BEFORE THE NEGOTIATING GROUP . 
3. I undertook consultations on ten categories of issues that are bracketed or otherwise annotated 
in the documentation as identified in (a) above.  Thes e are presented below in the order they appear in 
TN/AG/W/4/Rev.4. 
4. The objective of this work was to help Me mbers build consensus towards concluding 
Modalities in Agriculture. 
5. It was recognised at the outset that the issues identified potentially differed in nature and in 
the state of their preparation in the documentation before the Negotiating Group.  It was nevertheless 
considered useful to, where necessary and as far as possible, advance technical understanding and 
framing of issues in preparation for when decisions could be taken. 
6. In my assessment this judgement has been borne out in practice albeit, to this point, Members 
have not been in a position to substantively reso lve matters nor is there any discernable progress on 
these issues that can be captured in text. 
1. Blue Box – Product-specific limits (paragraph 42, TN/AG/W/4/Rev.4) 
7. Consultations indicate that no further technical  preparation is required for the eventual 
decision to be taken with respect to th e bracketed numbers in this paragraph. 
2. Cotton (paragraphs 54/55 and Chair's introduction, TN/AG/W/4/Rev.4) 
8. I have held a number of consultations on cotton throughout the period covered by this report.  
There have also been a number of political-l evel contacts between particular Members. 
9. Consultations have confirmed that not all Memb ers are in a position to agree to the text as 
drafted but no new contributions, technical or substantive, have been forthcoming to date. 
10. All Members involved in the consultations have  emphasised that they remain committed to 
finding a solution that addresses the issue of co tton "ambitiously, expeditiously and specifically" 
consistent with the commitments made at the H ong Kong Ministerial Conference in December 2005. 
11. However, in the absence of a dynamic capable of leading to the resolution of outstanding 
issues in the Agriculture negotiation more broadly,  and indeed the Round as a whole, what that 
solution might be remains unclear. 
3. Sensitive Products – Designation (paragr aph 71, TN/AG/W/4/Rev.4 and TN/AG/W/5) 
12. The annotation to paragraph 71 reads " Japan and Canada have declared themselves not to be 
in a position to agree to this  [the right of developed country Memb ers to designate up to 4 per cent of 
tariff lines as "Sensitive Products"] limitation ". 
13. Consultations confirm that Japan and Cana da are still seeking flexibility to designate 
additional tariff lines under the "Sensitive Products" category.  TN/AG/26 
 Page 3 
 
 
  14. It remains to be seen whether Members are pr epared to agree any further flexibility in 
designation of "Sensitive Products" beyond that alread y provided in paragraph 71 and, if so, what 
payment would be required for such designation. 
15. I expect consultations will continue amongst interested Members on a "without prejudice" 
basis, including on how any differential tariff quota expansion requirements might be allocated across 
different tariff lines. 
4. Tariff Cap (paragraph 76, TN/AG/W/4/Rev.4 and TN/AG/W/5) 
16. Views remain sharply divided on whether there should be an exception allowing the 
maintenance of tariffs in excess of 100 per cent ad valorem  on products outside a Member's overall 
"Sensitive Product" entitlement. 
17. Differing views have also been expressed on th e appropriateness of the payment options in 
the bracketed text in paragraph 76, we re any such exception to be granted. 
5. Tariff Quota Creation (paragraph 83, TN/AG/W/4/Rev.4 and TN/AG/W/6) 
18. While views remain divided on whether such fl exibility should be a fforded, consultations 
indicate a general willingness to continue technical discussion, on a "without prejudice" basis, based 
on TN/AG/W/6. 
19. There is a sense that the operability of criteria contained in TN/AG/W/6 is difficult to 
conceive in the abstract and that discussion may benefit from further factual clarification – for 
example in respect of which products amongst thos e for which consumption data has been submitted 
pursuant to Annex C of TN/AG/W/4/Rev.4 are not currently subject to tariff quotas. 
20. Transparency more generally remains a key element in Members' consideration of this issue. 
6. Tariff Simplification (paragraph 104, TN/AG/W/4/Rev.4) 
21. In TN/AG/25 I reported that consultations had involved an initial technical discussion on how 
the "or" option in paragraph 104 of TN/AG/W/4/ Rev.4 would be operationalised through the other 
provisions of paragraphs 103 – 108 of TN/AG/W/4/ Rev.4 together with the associated Annex N. 
22. Questions were raised, in this context, con cerning some apparent differences in terminology 
between the text of paragraphs 104 – 108 and Annex N and about th e interrelationship of envisaged 
procedures between the text and the Annex. 
23. Members were also interested in how proposed simplification would work in practice.  The 
European Union provided an overview presentati on, in an open-ended setting, on its proposed 
simplifications to the Meursing table. 
24. Since April 2010 I understand Members have continued discussions amongst themselves to 
better understand how proposed simplificati ons would work in concrete terms. 
25. The Negotiating Group has also been advised th at a number of Members have been working 
on developing a possible alternative to the options  contained in TN/AG/W/4/Rev.4.  I understand 
those Members have been making good progress in th eir work but have not ye t reached the stage of 
having a defined product which can be shared with the Negotiating Group for the purpose of 
attempting to reach a multilateral solution to this issue. TN/AG/26 
Page 4  
 
  7. Special Products (paragraph 129, TN/AG/W/4/Rev.4) 
26. The annotation to paragraph 129 reads "A number of developing country Members have 
expressed reservations concerning the numbers specified  in this paragraph, noting also that this may 
be affected by what is decided in other areas of the text". 
27. Consultations indicate that this annotation remains factually correct. 
28. Some Members expressed concerns about the potential export impacts of the treatment 
provided in paragraph 129.  Othe r Members considered that the pa ragraph should be regarded as 
"stabilised". 
8. Special Safeguard Mechanism – SSM (p aragraphs 144/145, TN/AG/W/4/Rev.4 and 
TN/AG/W/7) 
29. In TN/AG/25 I reported that consultations had benefitted from analytical contributions on 
various elements of a possible SSM architecture from a range of Members, including a number of contributions that had been circulated to all Members as JOB documents. 
30. Those contributions covered issues such as pr ice and volume cross-check, seasonality, price-
based SSM, flexibilities for Small, Vulner able Economies (SVEs), and pro-rating. 
31. Initial technical exchanges were undertaken on the issues of seasonality, price and volume 
cross-check, and price-based SSM.  A number of ques tions were raised on the circulated analytical 
papers with indications of further analytical c ontributions to come from others on these issues. 
32. Other papers on flexibilities for SVEs and pro-ra ting, which had only been recently circulated 
at that point, had been introduced with Members i ndicating they would need some time to study the 
papers before being in a position to enter into technical discussion on those issues. 
33. At the time of TN/AG/25 the importance of further focussed analys is and discussion was 
highlighted to contribute to the development of shared understanding to underpin the compromises 
necessary for the establishment of a "fit for purpose" mechanism. 
34. Since April 2010, further discussion was undertak en based on the analytical contributions 
submitted to that point and additional contri butions submitted by Members in July and 
September 2010. 
35. I advised the Negotiating Group in October that the stage of useful analytical discussion 
appeared to have been exhausted.  What was n eeded beyond that was "problem solving" engagement 
among Members to design a mechanism capable of being used to address cases of disruptive import 
surges while not disrupting demand-induced trade. 
36. That remains the case, at least to the extent that no such compromise options have yet been 
presented for consideration by the Negotiating Group. 
37. Several further proposals have been presented c oncerning Member-specific flexibilities in this 
area.  These issues will also need to be consider ed in any process of reaching agreement on an SSM.  TN/AG/26 
 Page 5 
 
 
  9. Tropical and Diversification Products (paragraph 148 and Annex G, 
TN/AG/W/4/Rev.4);  Long-sta nding Preferences and Preference Erosion (paragraph 149 
and Annex H, TN/AG/W/4/Rev.4) 
38. There have been significant developments in these areas. 
39. In December 2009, WTO Director General Pascal Lamy and I received the following 
communications: 
(a) A letter, dated 15 December 2009, from the European Union, the ACP countries, 
Brazil, Colombia, Costa Rica, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, 
Panama, Peru, and Venezuela conveying the text of a proposed DDA modality applicable to tariff reductions by the EU on bananas; 
(b) A letter, dated 15 December 2009, from the European Union, the ACP countries, 
Bolivia, Colombia, Costa Rica, Ecuador, Guatemala, Nicaragua, Panama, and Peru conveying the text of a proposed DDA modality for the treatment of Tropical Products and for Preference Erosion. 
40. I conveyed these communications to the Members of the Negotiating Group on 
18 December 2009 and subsequently held further consultations on these two issues identified in 
TN/AG/W/4/Rev.4. 
41. In TN/AG/25 I reported that consultations had a fforded an opportunity for initial discussion 
of the proposed modalities contained in the communica tions.  Clarification was provided in the course 
of those consultations that the treatment contained in sub-paragraph (ii) of the proposed replacement 
for paragraph 149 of TN/AG/W/4/Rev.4 is intend ed to relate only to the tariff lines for sugar 
contained in the attached Annex H. 
42. Some Members who are not party to the above  referenced communications expressed concern 
to understand how the proposals may affect their interests. 
43. Since April 2010 I understand consultations ha ve continued with relevant Members on how 
these proposals may affect their interests.  In  the absence of multilateral agreement, the 
15 December 2009 proposals should be seen as alternatives to the bracketed options in 
TN/AG/W/4/Rev.4.  Language has yet to be pr ovided by proponents concerning the clarification 
reported in paragraph 42 above. 
B. O
THER ISSUES  
44. The Negotiating Group has also been discussi ng specific proposals from Members tabled 
since December 2008, including some tabled in rece nt weeks, which range beyond the bracketed or 
otherwise annotated issues itemised above.  As ye t, no conclusions have been drawn from these 
discussions. 
C. CLARIFICATIONS  
45. I indicated in TN/AG/25 that I was available to hear from Members, individually or 
collectively, regarding any technical ambiguity they consider exists or technical clarification they 
consider is needed in the Draft Modalities text. TN/AG/26 
Page 6  
 
  46. Given the Modalities text, when agreed, will provi de instructions regarding the scheduling of 
commitments and amendments that will be require d to the Agreement on Agriculture it is important 
those instructions are clear and their m eaning is commonly understood by Members. 
47. Members have accordingly been considering a number of questions concerning provisions in 
the Draft Modalities text which have been identified by  certain Members or have arisen in the course 
of template development work. 
48. As yet there has been no communication to th e Negotiating Group of any views formed by 
Members involved in this ongoing discussion. 
D. C
ORRECTIONS  
49. In reading the Draft Modalities text (TN/AG/W/4/ Rev.4) the following corrections should be 
made.  These are itemised below in the order they ap pear in the text with the corrections highlighted 
in bold font. 
Footnote 11 to paragraph 65 – corr ected paragraph number references 
 
The Members concerned are those that meet the criteria set out in paragraph 157 and 
are listed in Annex I.  As is made clear in the Agreed Framework, small vulnerable 
economies (SVEs) are not m eant to create any sub -category of Members.  Bearing 
that principle in mind, the following Members could also be deemed to be eligible for this treatment, should they choose to av ail themselves of it, despite not being 
members of the SVE Group per se  given that this treatment could be deemed to be 
broadly comparably appropriate:  Republic of Congo, Côte d'Ivoire and Nigeria (plus 
other Members that can provide data that show that they meet the criteria in 
paragraph 157).  Additionally, Bolivia shall have access, exceptionally, to treatment 
equivalent to that provided for in paragraph 151.  As an exception, Suriname shall 
rebind its agricultural tariffs on a line by line basis at the level of the average bound tariff of Antigua and Barbuda, Barbados , Belize, Dominica, Grenada, Guyana, 
Jamaica, Saint Kitts and Nevis, Saint Lu cia, Saint Vincent and the Grenadines and 
Trinidad and Tobago resulting from these modalities. 
Footnote 24 to paragraph 135 – corr ected paragraph number reference 
 
A shipment shall not be considered  for purposes of paragraphs 135 and 136 unless the 
volume of the product included in that shipment is within the range of normal 
commercial shipments of that product entering into the customs territory of the 
importing developing country Member. 
Paragraph 174 – corrected typogr aphical error in second sentence 
 
A Member which intends to institute e xport prohibitions and restrictions shall 
consult, upon request, with any other Memb er having a substantial interest as an 
importer with respect to any matter relate d to the proposed measure.  The Member 
instituting such export prohibitions and restrictions shall provide, upon  request, the 
interested importing Member with necessary information, including relevant economic indicators.  TN/AG/26 
 Page 7 
 
 
  Section A, Attachment Ai – corrected paragraph reference in first paragraph 
 
The purpose of the product category list is to establish a common basis on which a member would undertake a partial designation calculation, in the event tariff lines in 
a product category might be declared Sensitiv e.  The list is comprehensive for the 
purposes of transparency required in paragraph 6(a) of Annex C. 
II. TEMPLATE DEVELOPMENT 
50. The work the Negotiating Group has been unde rtaking on development of templates is 
understood by all Members to be of an exclusively t echnical nature.  It has been a very deliberate and 
deliberative process undertaken in the open-ended format. 
51. Work has proceeded across each of the three "pillars" (Domestic Support, Market Access and 
Export Competition) in two "steps" as follows: 
Step 1 concerns the identification and de velopment of templates (including possible 
supporting tables) for the presentation of base data; 
Step 2 concerns the identification and de velopment of templates (including possible 
supporting tables) for the presentation of DDA commitments. 
52. It is recognised by all Members that this wo rk is not a substitute for work towards the 
conclusion of Modalities.  Indeed, given that wo rk on draft formats of scheduling templates and 
supporting tables is based on the Draft Modalities provi sions in TN/AG/W/4/Rev.4, it is not possible 
to complete all work on templat es until Modalities have been agreed. 
53. It should also be noted that the template devel opment work is just that – the development of 
templates for the formatting of the presentation of necessary information, to  be used when such 
presentation is required or otherwise agreed. 
54. Issues involving the timing of the actual provision of information have been and will continue 
to be dealt with in a distinct process.  Activity of this nature is covered in the "Data" section of this 
report. 
55. It has also been recognised that work on templates may raise questions on substantive 
interpretation of draft modalities provisions.  Where such situations have arisen, such as the case of 
some of the issues covered below in the "Data" sect ion of this report, these questions too have been 
and will continue to be dealt with in a distinct process. 
56. Significant effort has been devoted to work on St ep 1 across each of the three pillars and work 
is well advanced.  A considerable number of documents  have been produced to contribute to this work 
with many having been amended or superseded through the course of discussion in the Negotiating 
Group.  Those documents that remain under discussion will need to be finalised and consolidated as 
part of the conclusion of base data template work. 
57. Since April 2010, work has continued on templa te development, with particular focus on 
"Step 2". 
58. This has included overall "roadmap" presenta tions covering each of the three "pillars" 
(Domestic Support, Market Access and Export Comp etition).  There have also been more detailed 
presentations on scheduling templates on Total AMS and Overall Blue Box in the Domestic Support TN/AG/26 
Page 8  
 
  pillar;  on Tiered Formula tariff reductions in the Market Access pillar; and on Export Subsidy 
commitments in the Export Competition pillar. 
59. The template development work needs to be take n forward and finalised – to the extent it can 
in both "Step 1" and "Step 2" pending establishment of Modalities – in order that electronic files can 
be developed for use by Members in the post-Modalities scheduling phase. 
III. DATA-RELATED ACTIVITIES 
60. The way commitments resulting fro m Modalities can be readily unde rstood and verified is a 
data-intensive exercise.  The Negotiating Group h as therefore continued to engage separately on a 
number of data-related activities. 
61. These activities have been focussed, as a prio rity, around those areas where the Draft 
Modalities provisions in TN/AG/W/4/Rev.4 require data  to be available and capable of having been 
verified by Members in advance of the establishm ent of Modalities – including that data which is 
required by those provisions to be annexed to the Modalities themselves. 
62. The Negotiating Group agreed an extended date, until 4 December 2009, for additional 
Members who wished to submit Domestic Consum ption data for the purposes of Sensitive Product 
declaration consistent with Annex C of TN/AG/ W/4/Rev.4 and for Members to make technical 
amendments to data previously submitted.  The data which was submitted by ten Members (counting 
the EU as one) ahead of this agreed date remain s subject to an ongoing process of verification. 
63. Data provision and verification activity has also  continued in respect of Value of Production 
(VoP) data to be annexed to the Modalities (in terms of Members and base years) as required by 
paragraph 12 of TN/AG/W/4/Rev.4.  As part of th is process it has been clarified that the operating 
definition of Value of Production remains that which flows from the Agreement on Agriculture. 
64. Such VoP data has now been submitted by all but  one Member required so to do.  Steps are 
underway to rectify that gap.  The data submitted is also understood to have  gone through a thorough 
process of verification. 
65. VoP data which has been submitted by Member s and for years beyond that required by 
paragraph 12 of the Draft Modalities continues to serve  for transparency purposes only at this stage. 
66. Data has also been sought for the product-specific AMS and product-specific Blue Box to be 
annexed to the Modalities as required by paragraphs  22 and 40 of TN/AG/W/4/Rev.4.  It has been 
clarified that this data needs to be pr ovided by developed country Members only. 
67. With it being understood that commitments will be expressed in HS 2002 nomenclature, work 
is also underway to confirm AVE (ad-valorem e quivalent) transposition for the purpose of the AVEs 
to be annexed to the Modalities as required by paragraph 60 of TN/AG/W/4/Rev.4. 
68. Both these data sets need to be completed speedily. 
69. A range of data required for post-Modaliti es scheduling remains outstanding.  The 
Negotiating Group will need to consider when this data should be submitted in order to provide 
sufficient time for verification without undul y delaying eventual scheduling activity. 
70. A number of other questions that have been raised  relating to the provision of data remain to 
be addressed.  TN/AG/26 
 Page 9 
 
 
  IV. FUTURE WORK 
71. Members have been engaged in considerable activity over the past two year, including since 
TN/AG/25 was presented.  It is regrettable that Members did not feel able, at this point in the process of negotiations, to present more of that activity in a way that could be captured in agreed or otherwise 
visible text. 
72. It is my intention to consult with Members on the organisation of future work in the 
Negotiating Group following, and consistent with , guidance provided by the Trade Negotiations 
Committee. 
 
 
_______________ TN/AG/26 
Page 10  
 
  List of communications relating to the work of the Negotiating Group formally submitted 
by Members since the issuance of TN/AG/W/4/Rev.4 
 
 
JOB(08)/130  11 December 08 Israel - Sensitive products treatment for developing countries with 
ceiling binding commitments 
TN/AG/GEN/29  10 Feb 09 G-33  Proposal on the Treatment of SSM provided to the SVEs 
JOB(09)/49  27 May 09 Suggestions from the Uruguayan  Delegation to continue the process 
in the Agriculture Negotiations - Agriculture – Open issues in the modalities texts 
JOB(09)/65
 2 July 09 Argentina - WTO-Doha Negotiations In Agriculture 
JOB(09)/69  16 July 09 G-20  Views on the Technical Process of Discussions on Templates 
JOB(09)/99  15 Sept 09 Uruguay  - General approach to template  work to help operationalise 
modalities 
JOB(09)/104  23 Sept 09 United States - Agriculture Templates – An approach and initial 
thoughts on base data and base data templates 
JOB(09)/110  28 Sept 09 Cairns Group  - Non-exhaustive list of elements in the draft modalities 
text (TN/AG/W/4/Rev.4) that need to be scheduled in accordance with 
final agreed modalities 
JOB(09)/115  30 Sept 09 United States - Agriculture Templates – Domestic Support Base Data 
Templates 
JOB(09)/118  1 Oct 09 Cairns Group - Outlining the Data Needed to Calculate Base OTDS - 
Step 1 for Base OTDS 
JOB(09)/119  1 Oct 09 Cairns Group - Outlining the Data Needed  for pre-Doha Final Bound 
Total AMS - Step 1 for Base Final Bound Total AMS 
JOB(09)/120  1 Oct 09 Cairns Group - Outlining the Data Needed for Calculating Base 
Product-Specific AMS Limits - Step 1 for Base Product-Specific AMS Limits 
JOB(09)/121
 1 Oct 09 Cairns Group - Outlining the Data Needed for Base Overall Blue Box 
Limit - Step 1 for Base Overall Blue Box Limit 
JOB(09)/122  1 Oct 09 Cairns Group - Outlining the Data Needed for Calculating Base 
Product-Specific Blue Box Limits - Step 1 for Product-Specific Base Blue Box Limits 
JOB(09)/125
 2 Oct 09 United States - Agriculture Templates – Market Access Base Data 
Templates  
JOB(09)/137  13 Oct 09 Special Session - Agricultural Templates - Export Competition - 
Export Credits, Export Credit Guarantees or Insurance Programmes from the European Communities  
JOB(09)/138
 13 Oct 09 Special Session - Agricultural Templates - Export Competition 
Agricultural Exporting State Trading Enterprises - Communication 
from the European Communities  
JOB(09)/139  15 Oct 09 Special Session - Export Subsidies - Supporting Table for "No New 
Markets" - Communication from the United States  
JOB(09)/141  15 Oct 09 Special Session - A Potential Methodology to Determine In-Quota Ad 
Valorem Tariff Equivalents (AVEs) - Communication from Canada  
JOB(09)/172  13 Nov 09 Special Session - Agriculture Te mplates - Market Access Doha 
Development Agenda (DDA) Tariff Ra te Quotas (TRQs) Template - 
Communication from the United States   TN/AG/26 
 Page 11 
 
 
  JOB(09)/174  23 Nov 09 Special Session - G-20 Views on Substantive Issues for Developed 
Countries in the Agriculture Negotiations - Communication from the  
G-20 
JOB(09)/176  25 Nov 09 Special Session - Agriculture Data and Templates Exercise - Overview 
of Step 2 - Communication from  Australia and Uruguay 
JOB/AG/1  7 Jan 10 Data Requirements for Market A ccess Minimum Tariff Reduction for 
Developed Members - Communication by Argentina  
JOB/AG/1/Rev.1  27 Jan 10 Data Requirements for Market A ccess Minimum Tariff Reduction for 
Developed Members – Revision - Communication by Argentina  
JOB/AG/2  21 Jan 10 Agriculture Templates – Step 2:  Items to be Scheduled – Paragraph 
References - Communication by  New Zealand and Uruguay 
TN/AG/GEN/30  28 Jan 10 Refocusing Discussions on the Special Safeguard Mechanism (SSM): 
Outstanding Issues and Concerns on its Design and Structure - 
Submission by the G-33 
JOB/AG/3  5 Feb 10 G-33 Submission on the SSM:  Price and Volume Cross-Check 
Conditionalities - Communication by the G-33  
JOB/AG/4  5 Feb 10 G-33 Submission on the SSM:  Seasonality - Communication by the 
G-33  
JOB/AG/5  11 Feb 10 Issues and Concerns on the Price-Based Special Safeguard 
Mechanism:  Some Analysis and Technical Contributions for the Design and Structure - Communication by the G-33
 
JOB/AG/5/Rev.1  4 March 10 Issues and Concerns on the Price-Based Special Safeguard 
Mechanism:  Some Analysis and Technical Contributions for the Design and Structure - Communication by the G-33
 
JOB/AG/6  4 March 10 G-33 Submission on the SSM:  Flexibilities for SVEs - 
Communication by the G-33  
JOB/AG/7  5 March 10 G-33 Submission on the SSM:  Pro-Rating - Communication by the 
G-33  
JOB/AG/8  15 March 10 G-20 Statement on the Templates Discussions - Communication by the 
G-20 
JOB/AG/9  15 March 10 Informal Consultations by the Chair, 12 March 2009 - Special Session 
of the Committee on Agriculture - Communication by  Argentina 
TN/AG/GEN/31  2 June 10 Proposal concerning paragraph 5 of Annex J to TN/AG/W/4/Rev.4 of 
6 December 2008 on Provisions for special and differential treatment accorded to least developed co untries and net food-importing 
developing countries - Communication from Cuba  
JOB/AG/9/Corr.1
 15 June 10 Informal Consultations by the Chair, 12 March 2009 - Special Session 
of the Committee on Agriculture - Communication by  Argentina  - 
Corrigendum 
JOB/AG/10  1 July 10 Analysis of the Volume-Based Speci al Safeguard Mechanism (SSM):  
Implications for the Architecture of the SSM - Communication by 
Australia  and Canada  
JOB/AG/11  2 July 10 G-20 Views on Step 2 Templates - Communication by the  G-20 
JOB/AG/12  6 July 10 The RAMs Group Stance on the Agriculture Negotiations - 
Communication by the  Group of Recently Acceded Members 
(RAMs) 
JOB/AG/13  16 Sept 10 The Special Safeguard Mechanism (S SM):  A Contribution toward a 
Balanced Debate - Communication by Costa Rica  
JOB/AG/14  21 Sept 10 Issues and Concerns on the SSM - Communication by  Ukraine 
JOB/AG/15  22 Sept 10 G-20 Views on Templates Step 1:  Outstanding Data Requirements - 
Communication by the  G-20 TN/AG/26 
Page 12  
 
  JOB/AG/16  23 March 11 Flexibilities in the Agricultural Modalities on the Pillars of Domestic 
Support and Export Competition – Communication by the Group of 
Small Vulnerable Economies (SVEs)  
JOB/AG/17  23 March 11 The Special Safeguard Mechanism (SSM) Modalities to Apply to 
Small Vulnerable Economies (SVE) - Communication by  SVEs, ACP 
and African group 
JOB/AG/18  5 April 11 Food security for NFIDCs: A pro posal for special and differential 
treatment under the disciplines on export prohibitions and restrictions - Communication from the NFIDCs  
JOB/AG/19
 18 April 11 Specific Textual Proposal on Sp ecial Safeguard Mechanism (SSM) 
for  Low Tariff Bindings - Communication from the Philippines  
 
  TN/AG/26 
 Page 13 
 
 
   WORLD TRADE  
ORGANIZATION  TN/AG/W/4/Rev.4 
6 December 2008 
 (08-6017) 
Committee on Agriculture 
Special Session  
 
 
 
REVISED DRAFT MODALITIES FOR AGRICULTURE 
 I think we have made progress since July, and the attached text, together with the separate 
papers, are an attempt to capture that. 
 Within the text itself there are a number of square  brackets that have been  deleted.  It is clear 
that on a number of those, there cannot be said to be  formal agreement.  But, in earlier versions of the 
drafts where there were no square brackets, there wa s not always formal agreement either.  Everything 
is conditional in the deepest sense in any case.  But the changes made at this time now represent a best 
estimate of where there is additional good reason to believe there would prove to be consensus if 
everything was to come together as a modalities package. 
 Negotiations and discussions that took place dur ing the July meetings have been a strong 
input in arriving at that estimate, particularly as regards square brackets dropped in the section on 
domestic support and in certain parts of market acce ss.  But in these and in other areas, negotiations 
and discussion subsequent to July has also generated or confirmed that sense.  Indeed a considerable 
part of the time devoted to consultations over the last few weeks has been in checking whether things 
that might have hypothetically worked in July would still work now. 
 By and large that has been the case, and some other issues have come somewhat closer also 
since even in July.  But, clearly, there is still not fo rmal agreement on any or all of this.  Indeed, there 
is still certain divergence where even the device of square brackets has been dropped, and I have felt it 
was both instructive and fair to highlight within th e text itself a few points where there is still very 
real divergence (sensitive products being a principa l example) or where there is, to say the least, 
somewhat more heat detectable than on some others (tariff simplification being an example). 
 Of course, that conditionality remains, as alwa ys, paramount.  Certain things are manifestly 
not yet agreed.  And, depending on where we end up on these matters, other areas that seem relatively "stable" may well be revisited.  That is an undeniab le reality in any negotiation.  It has been made 
pretty clear to me in consultations  generally, and on a subject like Sp ecial Products in particular where 
Members concerned would, I suspect, be able to go with what is in the text at a pinch.  But whether or 
not that actually happens will be contingent on over all balance – including not just other parts of the 
agriculture text but elsewhere in the negotiations.  And that balance can be decisively affected by 
where elements that are still not settled end up.  The same can be (and has been) said for any issue 
you choose: domestic support; export competition; etc.  But it is still more responsible in the present 
circumstances, I believe, to describe the glass as (alb eit conditionally) half-full rather than half-empty.  
We are, after all, trying to get to an agreement ra ther than to find additional reasons why we cannot. 
 There are other areas where progress has been ma de since July, but it has not made it to the 
point where there is a basis to incorporate fully defi ned wording within the four corners of the text at 
the moment. TN/AG/26 
Page 14  
 
   This has been the case with certain elem ents regarding Sensitive Products, tariff quota 
creation, non-Sensitive Products with tariffs higher than 100 per cent, tropical and diversification 
products, preference erosion and the SSM. 
 While Members have at last been prepared to step (albeit tentatively) outside their comfort 
zones, they have not been prepared to get as far as a real convergence.  As always, one cannot invent 
consensus where it does not exist.  Indeed it is utterly counter-productive to do so because, lacking 
any real basis in the negotiation, it simply provoke s a counter-reaction that sends us back to square 
one. 
 But it would have been selling short the pr ogress made to simply have nothing new on the 
table on these matters.  So what has been done in such cases is to provide certain working hypotheses 
which, if the political will to conclude is genuine ly there, could become a platform to get us to 
closure.  I have taken some liberties here as it is, but, hopefully, not to the point of pure invention. 
 Some of those forms of words are being seen for the first time, albeit that they have not 
emerged in a vacuum:  they are there because they reflect, hopefully, emerging elements of 
convergence.  But even in these ar eas there is an inevitable uneve nness because some things are, 
unavoidably, somewhat better  developed than others.  
 On Sensitive Products, the text is, on the surface, mo re clear than in July.  That said, the fact 
remains that there appear to be effectively only  two developed Members among the importers that are 
actually prepared to live with 4 per cent of Sensitive Products despite a seeming view that "4 per cent" 
was what was a source of quasi-consensus in July.  I see no alternative, therefore, but to put that in the 
text unambiguously.  But the reality is that others ar e not in agreement with that.  There is no sign at 
this point of agreement to bridge that on the table.  The best I have been able  to do is to outline in a 
separate document some possibilities of how to "fix" this (if any fix other than applying 4 per cent without limitation will ever fly).  But even these ideas are speculative to so me extent because no-one 
has a common view on what uniform "payment" would work for going beyond 4 per cent. 
 On non-Sensitive Products above  100 per cent, battle-lines rema in drawn.  The text is 
accordingly still square-bracketed, albeit with a few minor changes.  I do sense that, under the surface, 
progress is being made but, nothing that is as ye t textually in the frame.  I have also made a 
suggestion in the attached working paper, for what it is worth, as another angle of approach. 
 Because, tariff quota creation is such a sensitive issue, the text retains the two options.  But 
consultations indicate that a strictly limited a nd transparent way out could be found.  Because, 
however, transparency is demanded by one side but  the other side says it cannot be done, the matter 
remains moot.  But with good will there is at least  an emerging structure for getting to closure.   
 On tropical and diversification products and pr eference erosion, the text remains the same.  I 
had wanted to record in a separate paper the consider able progress that had been made in July.  As of 
yesterday I had drafted that on the basis that, if everything fell into place – and bananas was key to 
that –  there was a deal there for the taking.  And it would have been useful for everyone to see how 
close we were to that.  But I was advised yester day that, on bananas certain material changes had 
occurred which, in the view of at least one set of  Members, vitiated any assumptions abut what might 
even be hypothetically possible.  I cannot ignore such  a strongly held view so, yet again, all we get for 
the time being is the 10 July text. 
 It is a pity, in my view, but I cannot intrude on a bilateral negotiations of this intensity.  All I 
would add is that the parties have been working on their bilateral lists as well.  Clearly everything else 
is contingent on satisfaction bein g found here also.  But there are Members that are uncomfortable 
about not knowing what would appear in impor ting Members’ lists based on the percentages  TN/AG/26 
 Page 15 
 
 
  canvassed below.  The parties to discussions ha ve developed, I believe , understandings on these 
matters among themselves to which I,  among others, am not privy.  If this remains a difficulty among 
Members I can only continue to urge those involved to consult in good faith with those concerned as 
soon as possible with a view to alleviating concerns about transparency.. 
 On the SSM, we have made some progress.  It  is uneven, it is fragile, it has never been 
consolidated into a single structure.  All previous info rmal efforts have failed.  So, this is the first time 
this particular structure has seen the light of day.  It is not, therefore, ready for inclusion in the text per 
se because it is utterly untested.  But hopefully it can at least help ma terially in getting us to that.  
There appear to remain still subsequent  issues to deal with as yet unresolved. 
 Then there is cotton.  Here we have, since July, at least re-established a good dialogue and a 
sense of trust that had been seriously eroded by events  at the end of July.  We have also got a robust 
and common view on the numbers that need to be crunc hed to get a final decision.  That said the fact 
remains that, textually, I regret that I can only repor t that neither I nor, as far as I can tell, anyone else 
involved in the consultations are any wiser today on what the deal will be than we were in July. TN/AG/26 
Page 16  
 
  I. DOMESTIC SUPPORT 
A. O
VERALL REDUCTION OF TRADE -DISTORTING DOMESTIC SUPPORT : A TIERED FORMULA  
Base level 
1. The base level for reductions in Overall Trade-Distorting Domestic Support (hereafter "Base 
OTDS") shall be the sum of: 
(a) the Final Bound Total AMS specified in Pa rt IV of a Member's Schedule;  plus 
(b) for developed country Members, 10 per cent of  the average total value of agricultural 
production in the 1995-2000 base period (thi s being composed of 5 per cent of the 
average total value of production for product-specific and non-product-specific AMS respectively);  plus 
(c) the higher of average Blue Box payments as notified to the Committee on 
Agriculture, or 5 per cent of the average total value of agric ultural production, in the 
1995-2000 base period. 
2. For developing country Members, item (b) of pa ragraph 1 above shall be 20 per cent of the 
average total value of agricultural producti on in the 1995-2000 or 1995-2004 period as may be 
selected by the Member concerned.  For devel oping country Members, the base period for the 
purposes of item (c) of paragraph 1 above shall be  1995-2000 or 1995-2004 as may be selected by the 
Member concerned. 
Tiered reduction formula 
3. The Base OTDS shall be reduced in accord ance with the following tiered formula: 
(a) where the Base OTDS is greater than US $60 billion, or the equivalent in the 
monetary terms in which the binding is expressed, the reduction shall be 80 per cent; 
(b) where the Base OTDS is greater than US $10 billion and less than or equal to 
US$60 billion, or the equivalents in the monetary terms in which the binding is 
expressed, the reduction shall be 70 per cent; 
(c) where the Base OTDS is less th an or equal to US$10 billion, or the equivalent in the 
monetary terms in which the binding is e xpressed, the rate of reduction shall be 55 
per cent. 
4. Developed country Members with high relative le vels of Base OTDS in the second tier (i.e. at 
least 40 per cent of the average total value of agricultural production in the 1995-2000 period) shall 
undertake an additional effort.  The additional reduction to be undertaken shall be equal to one half of 
the difference between the reduction rates speci fied in paragraphs 3(a) and 3(b) above. 
 
 
 
   TN/AG/26 
 Page 17 
 
 
  Implementation period and staging 
5. For developed country Members, the reductions shall be implemented in six steps over five 
years. 
(a) For Members in the first two tiers specified  in paragraphs 3(a) and 3(b) above, the 
Base OTDS shall be reduced by one-third on the first day of implementation.  The 
remaining reductions shall be implemen ted annually in five equal steps. 
(b) For Members in the third tier specified in paragraph 3(c) above, the Base OTDS shall 
be reduced by 25 per cent on the first day of implementation.  The remaining 
reductions shall be implemented annually in five equal steps. 
Special and differential treatment 
6. Developing country Members with no Final B ound Total AMS commitments shall not be 
required to undertake reduction commitments in their Base OTDS. 
7. For developing country Members with Final B ound Total AMS commitments, the applicable 
reduction in the Base OTDS shall be two-thirds of the relevant rate specified in paragraph 3(c) above.  
However, net food-importing developing countries  (hereafter "NFIDCs") listed in document 
G/AG/5/Rev.8 shall not be required to undert ake reduction commitments in their Base OTDS. 
8. For those developing country Members, the reduc tions shall be implemented in nine steps 
over eight years.  The Base OTDS shall be reduced by 20 per cent on the first day of implementation.  
The remaining reductions shall be implem ented annually in eight equal steps. 
Recently-Acceded Members 
9. Saudi Arabia, the Former Yugoslav Republic of  Macedonia, Viet Nam and Ukraine, as very 
recently-acceded Members (hereafter "RAMs") shall not be required to undertake reduction 
commitments in their Base OTDS.  Small lo w-income RAMs with economies in transition1 shall not 
be required to undertake reduction commitments in their Base OTDS.  Reduction commitments for other RAMs with Final Bound Total AMS commitments  shall be two-thirds of the relevant rate 
specified in paragraph 3(c) above and shall be implemented in accordance with the provisions in 
paragraph 8 above. 
Other commitments 
10. All Members, other than NFIDCs which undertak e not to use their entitlement to the Blue 
Box, and least-developed country Members,
2 shall schedule their Base, Annual and Final Bound 
OTDS entitlements, as provided above, in monetary terms, in Part IV of their Schedules.  Developing country Members that are not required to undertake reduction commitments  under any of the 
provisions of these modalities shall only be  required to schedule their Base OTDS. 
11. For those Members that, under these modalities are subject to reduction  commitments  in their 
Base OTDS, such commitments shall apply as a minimum overall commitment.  Throughout the 
implementation period and thereafter, each Member sha ll ensure that the sum of the applied levels of 
                                                     
 
1 This shall be applicable to Albania, Armenia,  Georgia, Kyrgyz Republic, Moldova and Mongolia.  
2 Cameroon, Congo (Brazzaville), Ghana, Nigeria and Swaziland sh all have access also to this 
provision. TN/AG/26 
Page 18  
 
  trade-distorting support under each OTDS compone nt does not exceed the Annual and Final Bound 
OTDS levels specified in Part IV of its Schedule.   
12. The Agreement on Agriculture shall be ame nded in order to provide for these OTDS 
modalities including amendments to existing Articles, wh ere necessary, to ensure consistency with the 
above provisions. The data on value of produc tion shall, for all Members undertaking OTDS 
reduction commitments, be annexed to these modaliti es. This Scheduled OTDS shall be understood 
not to have the effect of constraining the access of RAMs to their de minimis  entitlements under the 
terms of their accession to the WTO. 
B. F
INAL BOUND TOTAL AMS:   A TIERED FORMULA  
Tiered reduction formula 
13. The Final Bound Total AMS shall be reduced  in accordance with the following tiered 
formula: 
(a) where the Final Bound Total AMS is greater than US$40 billion, or the equivalent in 
the monetary terms in which the binding is expressed, the reduction shall be 70 per cent; 
(b) where the Final Bound Total AMS is greater  than US$15 billion and less than or 
equal to US$40 billion, or the equivalents in the monetary terms in which the binding 
is expressed, the reduction shall be 60 per cent; 
(c) where the Final Bound Total AMS is less than or equal to US$15 billion, or the 
equivalent in the monetary terms in which the binding is expressed, the rate of reduction shall be 45 per cent. 
14. Developed country Members with high relative le vels of Final Bound Total AMS (i.e. at least 
40 per cent of the average total value of agricultural production during the 1995-2000 period) shall undertake an additional effort in the form of a highe r cut than would otherwise be applicable for the 
relevant tier.  Where the Member concerned is in the second tier, the additional reduction to be 
undertaken shall be equal to the difference between the reduction rates specified  in paragraphs 13(a) 
and 13(b) above.  Where the Member concerned is in the bottom tier, the additional reduction to be 
undertaken shall be one half of the difference betw een the reduction rates specified in paragraphs 
13(b) and 13(c) above. 
Implementation period and staging 
15. For developed country Members, reductions in Final Bound Total AMS shall be implemented 
in six steps over five years.  For developed co untry Members in the top two tiers specified in 
paragraphs 13(a) and 13(b) above, this shall be implemented by m eans of a  25 per cent reduction on 
the first day of implementation, followed by reducti ons in equal annual instalments over five years.  
For other developed country Members, the reducti ons shall be implemented in six equal annual 
instalments over five years, commencing on the first day of implementation. 
Special and differential treatment 
16. The reduction in Final Bound Total AMS applicab le to developing country Members shall be 
two-thirds of the reduction applicable for devel oped country Members under paragraph 13(c) above.  
The reductions in Final Bound Tota l AMS shall be implemented in ni ne equal annual instalments over  TN/AG/26 
 Page 19 
 
 
  eight years, commencing on the first day of impl ementation. However, de veloping country Members 
with Final Bound Total AMS levels at or below US$ 100 million shall not be required to undertake 
reductions. 
17. NFIDCs listed in document G/AG/5/Rev.8 sha ll not be required to undertake reduction 
commitments in their Final Bound Total AMS. 
18. The provisions of  Article 6.2 of the Agre ement on Agriculture shall remain unchanged. 
Recently-Acceded Members 
19. Saudi Arabia, the Former Yugoslav Republic of  Macedonia, Viet Nam and Ukraine, as very 
recently-acceded Members shall not be required to  undertake reduction commitments in their Final 
Bound Total AMS.  Small low-income RAMs with ec onomies in transition shall not be required to 
undertake reduction commitments in their Final Bound Total AMS.3  In the case of such Members, 
investment subsidies which are generally availabl e to agriculture, agricultural input subsidies and 
interest subsidies to reduce the costs of financing , as well as grants to cover debt repayment , may be 
excluded from the calculation of the Current Total AMS.4  The reductions in Final Bound Total AMS 
for other RAMs with such commitments shall be two- thirds of the rate specified in paragraph 13(c) 
above and shall be implemented in  accordance with paragraph 16 above. 
Other  
20. Article 18.4 of the Agreement on Agriculture sha ll continue to apply in order to respond to 
the situations referred to in that provision.  Due c onsideration shall also be given in the event that a 
developing country Member faces difficulties in its AMS calculation as a result of extraordinary and sudden increases in food prices relative to the fixed external reference price. 
C. P
RODUCT -SPECIFIC AMS  LIMITS  
General 
21. Product-specific5 AMS limits shall be set out in terms of monetary value commitments in 
Part IV of the Schedule of the Member concerne d in accordance with terms and conditions specified 
in the paragraphs below. 
22. The product-specific AMS limits specified in  the Schedules of all developed country 
Members other than the United States shall be th e average of the product-specific AMS during the 
Uruguay Round implementation period (1995-2000 ) as notified to the Committee on Agriculture .  
These shall be tabulated by individual product for each Member in an Annex to these modalities. 
23. For the United States only, the product-specific AM S limits specified in their Schedule shall 
be the resultant of applying proportionately the average product-specific AMS in the 1995-2004 
period to the average product-specific total AMS support for the Uruguay Round implementation 
period (1995-2000) as notified to the Committee on Agriculture.  These shall be tabulated by 
individual product in the Annex to these m odalities referred to in the paragraph above. 
                                                      
3 This shall be applicable to Moldova which is the only such Member with a Final Bound Total AMS. 
4 This shall be applicable to Albania, Armenia,  Georgia, Kyrgyz Republic, Moldova and Mongolia. 
5 "Product-specific" commitments have the same meaning as they are used in the Uruguay Round Agreement 
on Agriculture.  TN/AG/26 
Page 20  
 
  24. Where a Member has, after the base period specified in  paragraphs 22 and 23 above, 
introduced product-specific AMS support above the de minimis  level provided for under Article 6.4 of 
the Uruguay Round Agreement on Agriculture, and it did not have product-specific AMS support 
above the de minimis  level during the base period, the product-specific AMS limit specified in the 
Schedule may be the average amount of such product-specific AMS support for the two most recent 
years prior to the date of adoption of these moda lities, for which notifications to the Committee on 
Agriculture have been made. 
25. In cases where the product-specific AMS s upport for each year during the base period 
specified in paragraphs 22 and 23 above was below the de minimis  level provided for under 
Article 6.4 of the Uruguay Round Agreement on Agricu lture and the Member concerned is not in the 
situation covered by paragraph 24  above, the product-specific AMS limit specified in the Schedule for 
the product concerned may be that de minimis  level, expressed in monetary terms.  The application of 
the provisions in this paragraph and paragraphs 21 to 24 shall not require a Member's product specific 
AMS limit to be lower than the base period de minimis  level, expressed in monetary terms as set out 
in this paragraph. 
26. The scheduled product-specific AMS limits shall be implemented in full on the first day of 
the implementation period.  Where the average notif ied product-specific AMS in the two most recent 
years for which notifications are available was high er, the limits shall be implemented in three equal 
annual instalments, with the starting point for impl ementation being the lower of the average of those 
two years or 130 per cent of the scheduled limits. 
Special and differential treatment 
27. Developing country Members shall establish th eir product-specific AMS limits by choosing 
one of the following methods, and scheduling a ll their product-specific AMS commitments in 
accordance with the method chosen: 
(a) the average product-specific AMS during th e base period 1995-2000 or 1995-2004 as 
may be selected by the Member con cerned, as notified to the Committee on 
Agriculture; or 
(b) two times the Member's product-specific de minimis  level provided for under Article 
6.4 of the Uruguay Round Agreement on Agriculture during the base periods referred to in sub-paragraph (a) above; or 
(c) 20 per cent of the Annual Bound Total AMS in  the relevant year during the Doha 
Round implementation period.  
28. Where a developing country Member chooses paragraph 27(a) above as its method for the 
establishment of product-specific AMS limits that Memb er shall also have access to the provisions of 
paragraphs 24 and 25 above. 
29. Article 6.3 of the Agreement on Agriculture shall be amended to reflect these modalities. 
  TN/AG/26 
 Page 21 
 
 
  D. DE MINIMIS  
Reductions 
30. The de minimis  levels referred to in Article 6.4(a)  of the Uruguay Round Agreement on 
Agriculture for developed country Members (i.e. 5 pe r cent of a Member's total value of production of 
a basic agricultural product in the case of product-specific de minimis  and 5 per cent of the value of a 
Member's total agricultural production in the case of non-product-specific de minimis ) shall be 
reduced by no less than 50 per cent effective on the first day of the implementation period.  
Furthermore, where, in any year of th e implementation period, a lower level of de minimis  support 
than that resulting from application of that minimu m percentage reduction would still be required to 
ensure that the Annual or Final Bound OTDS comm itment for that year is not exceeded, a Member 
shall undertake such an additional reduc tion in what would otherwise be its de minimis  entitlement. 
Special and differential treatment 
31. For developing country Members with Final Bound Total AMS commitments, the de minimis  
levels referred to in Article 6.4(b) of the Ur uguay Round Agreement on Agricu lture (i.e. 10 per cent 
of a Member's total value of production of a basi c agricultural product in the case of product-specific 
de minimis  and 10 per cent of the value of a Member's total agricultural production in the case of non-
product-specific de minimis ) to which they have access under their existing WTO obligations shall be 
reduced by at least two-thirds of the reduction ra te specified in paragraph 30 above.  The timeframe 
for implementation shall be three years from the first day of implementation.  Furthermore, where, in 
any year of the implementati on period, a lower level of de minimis  support than that resulting from 
application of that minimum percentage reduction w ould still be required to ensure that the Annual 
Bound or Final OTDS commitment for that year is  not exceeded, a Member shall undertake such an 
additional reduction in what would otherwise be their de minimis  entitlement. 
32. Developing country Members with no Final B ound Total AMS commitments; or with such 
AMS commitments, but that either allocate almost  all that support for subsistence and resource-poor 
producers, or that are NFIDCs listed in document G/AG/5/Rev.8; shall continue to have the same 
access as under their existing WTO obligations to the limits provided for product-specific and non-
product-specific de minimis  in the current Article 6.4(b) of the Uruguay Round Agreement on 
Agriculture. 
Recently-Acceded Members 
33. Saudi Arabia, the Former Yugoslav Republic of  Macedonia, Viet Nam and Ukraine, as very 
recently-acceded Members shall not be required to undertake reduction commitments in de minimis .  
Small low-income RAMs with economies in transition6 shall not be required to undertake reduction 
commitments in de minimis .  Other RAMs with Final Bound Total AMS commitments and which 
have existing de minimis  levels of 5 per cent shall reduce such  levels by at least one-third of the 
reduction rate specified in  paragraph 30 above and the timefram e for implementation shall be five 
years longer. 
Other 
34. The provisions of Article 6.4 of the Uruguay Round Agreement on Agriculture shall be 
amended accordingly to c onform to these modalities. 
                                                      
6 This shall be applicable to Albania, Armenia,  Georgia, Kyrgyz Republic, Moldova and Mongolia. TN/AG/26 
Page 22  
 
  E. B
LUE BOX 
Basic criteria 
35. The value of the following domestic support, provide d that it is consistent also with the limits 
as provided for in the paragraphs below, shall be excluded from a Member's calculation of its Current 
Total AMS but shall count for purposes of that Member’s Blue Box commitments and OTDS: 
(a) Direct payments under production-limiting programmes if: 
(i) such payments are based on fixed and unchanging areas and yields; or 
(ii) such payments are made on 85 per cent or less of a fixed and unchanging 
base level of production; or 
(iii) livestock payments are made on a fi xed and unchanging number of head. 
Or 
(b) Direct payments that do not require production if: 
(i) such payments are based on fixed and unchanging bases and yields; or 
(ii) livestock payments are made on a fixe d and unchanging number of head; and 
(iii) such payments are made on 85 per cent or less of a fixed and unchanging 
base level of production. 
36. Each Member shall specify in its Schedule wh ich of these categories – (a) or (b) – it has 
selected for the purposes of establishing all its Blue  Box commitments in this Round.  Any exception 
to this universal application would be with the agreement of all Members prior to finalization of 
Schedules.  In no circumstances could both domestic  support categories be made available for any 
particular product or products . 
37. Any Member that is in a position to move its domestic support from AMS to Blue pursuant to 
paragraph 43 below, or introduce product-specific Bl ue Box support pursuant to  paragraphs 47 and 50 
below subsequent to the conclusion of this negotiati on shall have the option to do so on the basis of 
either criterion above but, once selected and scheduled, this shall be binding. 
Additional criteria 
(a) Overall Blue Box limit 
38. The maximum value of support that can, under the above criteria of "Blue Box" , be provided 
under Article 6.5 shall not exceed 2.5 per cent of the average total value of agricultural production in 
the 1995-2000 base period on the basis of notifi cations to the Committee on Agriculture where they 
exist .  This limit shall be expressed in monetary term s in Part IV of Members' Schedules and shall 
apply from the first day of the implementation period. 
39. In cases where a Member has, consistent with the terms of Article 6.5(a) of the Uruguay 
Round Agreement on Agriculture, placed in the Blue  Box an exceptionally large percentage of its 
trade-distorting support – defined as 40 per cent – during the 1995-2000 base period, the limit for that  TN/AG/26 
 Page 23 
 
 
  Member shall, instead, be established by applicatio n of a percentage reduction in that average base 
period amount.  That percentage reduction shall e qual the percentage reduction that the Member 
concerned is to make in its Final Bound Total AM S.  This Blue Box limit shall be expressed in 
monetary terms and bound in Part IV of that Me mber's Schedule.  An implementation period of no 
more than 2 years may be provided for any such Me mber in the event that immediate implementation 
is unduly burdensome. 
(b) Product-specific limits 
40. For all Members other than the United States, th e limit to the value of support that may be 
provided to specific products as Blue Box entitlements shall be the average value of support provided 
to those products at an individual product level, consistent with Article 6.5(a) of the Uruguay Round 
Agreement on Agriculture, during the 1995-2000 peri od and with notifications to the Committee on 
Agriculture.  These product -specific limits shall be expressed in monetary terms at an individual 
product level, annexed in that format to these m odalities, bound in Part IV of the Schedule of the 
Member concerned, and shall apply from th e first day of the implementation period. 
41. In any case where Article 6.5(a) consistent Blue Box support was not provided for the entirety 
of the 1995-2000 period, the Member concerned sha ll use the average value of support for the years 
notified within that period, provided that there are at least three consecutive not ified years within that 
period. 
42. For the United States, the limits to the value of support that may be provided to specific 
products under paragraph 35(b) ab ove shall be [(110) (120)] per cent of the average product-specific 
amounts that would result from applying proporti onately the legislated maximum permissible 
expenditure under the 2002 Farm Bill for specific pr oducts at an individual product level to the 
overall Blue Box limit of 2.5 per cent of the averag e total value of agricultural production during the 
1995-2000 period.  These product-specific limits sh all be expressed in monetary terms at an 
individual product level, annexed in that format to these modalities and shall be bound in Part IV of 
that Member's Schedule. 
43. Blue Box entitlements for specific products may nevertheless exceed the limits determined 
under paragraphs 40-42 above but only where there is a corresponding and irreversible one-for-one 
reduction in the product-specific AMS limits for the products concerned (except for cotton, where that 
rate would be two-for-one). 
44. Where this arises in the context of this par ticular negotiation, full documentation must be 
provided in support of this "transfer" to ensure th at the starting point is verifiably, on the one hand, 
the product-specific AMS limit that would have be en otherwise inscribed in the Schedule through 
application of the methodology prov ided above and, on the other, th e Blue Box entitlement otherwise 
inscribed pursuant to application of the methodology set out above. 
45. Where this arises as a result of continuation of  the reform process after scheduling and during 
the implementation period, there must be an ex act reciprocal reduction in the scheduled product-
specific AMS limit for, as the case may be, a new, or an increase in the scheduled, product-specific 
Blue Box limit. 
46. In both such situations, the overall Blue  Box limit cannot in any case be exceeded. 
47. Notwithstanding the above, where, for a particular product, there is no product-specific 
entitlement to a Blue Box limit under the provisions above, and no Current AMS support in the base 
period for that particular product, a product-specifi c Blue Box limit may still be scheduled but only 
where the total support for any such products concer ned does not exceed 5 per cent of the overall Blue TN/AG/26 
Page 24  
 
  Box limit; there is a maximum for any single product of 2.5 per cent of the overall Blue Box limit; 
and the overall Blue Box limit is still respected.  This  is available to devel oped country Members with 
direct payments of the kind that meet the terms of paragraph 35(a) above, and is a once-only provision 
for commitment in this Round of negotiations. The monetary value and the products concerned shall 
be inscribed in a Member's Schedule.   
Special and differential treatment 
48. For developing country Members, the maximu m permitted value of support referred to in  
paragraph 38 above shall be 5 per cent of the av erage total value of agricultural production in the 
1995-2000 or the 1995-2004 base period as may be selected by the Member concerned.  That limit shall be expressed in monetary terms and bound in Part IV in  developing country Members' 
Schedules.  However, in cases where there is a movement from AMS to Blue subsequent to the 
conclusion of this negotiation, the developing coun try Member concerned shall have the option of 
selecting as its base period the most recent five-year period for which data are at that time available.  
An NFIDC which chooses not to avail itself of its Bl ue Box entitlement and thereby is not obliged to 
Schedule its OTDS under paragraph 10 above, shall so indicate by marking "nil" in the appropriate 
section of Part IV of its Schedule. 
49. Where a product accounted both for more than 25 per cent of the average total value of 
agricultural production and 80 per cent of the av erage Annual Bound Total AMS during the base 
period, a developing country Member that chooses to switch its support from AMS to Blue for that product, on a one-for-one and irreversible basis, sha ll be entitled to do so even if this would otherwise 
lead to exceeding the overall Blue Box limit provided for in the paragraph above. 
50. Where, for a particular product, a developing country Member has no product-specific 
entitlement to a Blue Box limit for that product under the above provisions, and no Current AMS 
support in the base period for it, a product-specifi c Blue Box limit may still be scheduled but only 
where the total support for the totality of any such  products concerned does not exceed 30 per cent of 
the overall Blue Box limit; there is a maximum for an y single product of 10 per cent of the overall 
Blue Box limit; and the overall Blue Box limit is  still respected.  For least-developed country 
Members and for NFIDCs these limits shall be 75 per cent and 25 per cent respectively. 
Recently-Acceded Members 
51. For RAMs, the maximum value of support referre d to in paragraph 38 above shall be 5 per 
cent of the average total value of agricultura l production in the 1995-2000 base period or the 1995-
2004 base period as may be selected by the Member concerned.  However, in cases where there is a 
movement from AMS to Blue subsequent to the co nclusion of this negotiation, the Member concerned 
shall have the option of selecting as its base period th e most recent five-year period for which data are 
at that time available. 
Other 
52. Article 6.5 of the Agreement on Agriculture sh all be amended to refl ect the above modalities 
accordingly. 
F. G
REEN BOX 
53. Annex 2 of the Agreement on Agriculture shall be amended as set out in Annex B of this 
document.  TN/AG/26 
 Page 25 
 
 
  G. COTTON :  DOMESTIC SUPPORT  
Reductions in support for cotton 
54. The development aspects of cotton shall be addr essed as provided for in paragraph 12 of the 
Hong Kong Ministerial Declaration.  AMS support for cotton shall be reduced according to the 
following formula: 
 Rc = Rg + (100 – Rg) * 100  
   3 * Rg  
Rc = Specific reduction applicable to cotton as a percentage Rg = General reduction in AMS as a percentage 
 
55. This shall be applied to the base value of s upport calculated as the arithmetic average of the 
amounts notified by Members for cotton in supporting tables DS:4 from 1995 to 2000.  The Blue Box limit applicable to cotton shall amount to one third of the product-specific limit that would otherwise 
have been the resultant from the me thodology generally applicable above. 
Implementation  
56. The reductions for trade-distorting domestic support on cotton shall be implemented over a 
period which is one third of  the implementation period. 
Special and differential treatment 
57. Developing country Members with relevant AMS and Blue Box commitments for cotton 
otherwise applicable under the relevant provisions of this Agreement, in cluding paragraph 27 above, 
shall provide a rate of reduction for cotton that is two-thirds of that which would be applicable under 
paragraph 54 above. 
58. Developing country Members shall implement their reduction commitments for cotton over a 
longer time period than for developed country Members. TN/AG/26 
Page 26  
 
  II. MARKET ACCESS 
A. T
IERED FORMULA FOR TARIFF REDUCTIONS  
Basis for reductions 
59. Subject to such other specific provisions as may be made, all final bound tariffs7 shall be 
reduced using the tiered formula set  out in the paragraphs below. 
60. In order to place final bound non- ad valorem  tariffs in the appropriate band of the tiered 
formula, Members shall follow the methodology to calculate ad valorem  equivalents (AVEs), along 
with associated provisions, set out in Annex A to TN/AG/W/3 of 12 July 2006. All AVEs so calculated shall be listed in an annex to these Modalities. 
Tiered formula 
61. Developed country Members  shall reduce their final bound tariffs  in six equal annual 
instalments over five years in accordan ce with the following tiered formula: 
(a) where the final bound tariff or ad valorem  equivalent is greater than 0 and less than or 
equal to 20 per cent, the reduction shall be 50 per cent; 
(b) where the final bound tariff or ad valorem  equivalent is greater than 20 per cent and 
less than or equal to 50 per cent, the reduction shall be 57 per cent; 
(c) where the final bound tariff or ad valorem  equivalent is greater than 50 per cent and 
less than or equal to 75 per cent, the reduction shall be 64 per cent;  and 
(d) where the final bound tariff or ad valorem  equivalent is greater than 75 per cent, the 
reduction shall be 70 per cent. 
62. The minimum average cut on final bound tariffs that a developed country Member shall be 
required to undertake
8 is 54 per cent.  Should application of the tiered formula treatment above, 
inclusive of the treatment for Sensitive Products as outlined in Section B below and additional cuts 
made as provided for elsewhere in these modalities relating to tariff escalation and tropical products 
result in an overall average cut less than 54 pe r cent, an additional effort shall be made 
proportionately across all bands to reach that target. 
63. Developing country Members other than those specified in paragraph 65 below shall reduce 
their final bound tariffs in eleven equal annual in stalments over ten years in accordance with the 
following tiered formula: 
(a) where the final bound tariff or ad valorem  equivalent is greater than 0 and less than or 
equal to 30 per cent, the reduction shall be  2/3 of the cut for developed country 
Members in paragraph 61(a)  above; 
(b) where the final bound tariff or ad valorem  equivalent is greater than 30 per cent and 
less than or equal to 80 per cent, the reduc tion shall be 2/3 of the cut for developed 
country Members in paragraph 61(b) above; 
                                                      
7 That is, all out-of-quota tariffs specified in Section I-A of Members' Schedules of Concessions.  In-quota 
tariffs shall be subject to commitments under the relevant paragraphs. 
8 i. e.  the average of the cuts made.  TN/AG/26 
 Page 27 
 
 
  (c) where the final bound tariff or ad valorem  equivalent is greater than 80 per cent and 
less than or equal to 130 per cent, the reduction shall be 2/3 of the cut for developed country Members in paragraph 61(c) above;  and 
(d) where the final bound tariff or ad valorem  equivalent is greater than 130 per cent, the 
reduction shall be 2/3 of the cut for deve loped country Members in paragraph 61(d) 
above. 
64. The maximum overall average cut on final bound tariffs any developing country Member 
shall be required to undertake
9 as a result of application of this formula inclusive of the treatment for 
Sensitive Products as outlined in Section B below is 36 per cent.  Should the above formula imply an 
overall average cut of more than 36 per cent10, the developing country Member shall have the 
flexibility to apply lesser reductions applied in a proportionate manner across the bands, to keep 
within such an average level. 
65. Those small, vulnerable economies11, including those among them which are ceiling binding 
and homogenously low binding countries, which choose to exercise the option set forth in paragraph 
130 below shall be entitled to moderate the cuts specified in paragraph 63 above by a further 10 ad 
valorem  percentage points in each band. 
Recently-Acceded Members 
66. RAMs shall be entitled to moderate the cuts they  would otherwise have been required to make 
under the tiered formula for developing count ry Members in paragraph 63 by up to 8 ad valorem  
percentage points.  All RAMs shall be entitled to exempt their final bound ta riffs at or below 10 per 
cent from reductions in bound tariffs. 
67. Saudi Arabia, the Former Yugoslav Republic of  Macedonia, Viet Nam, Tonga and Ukraine, 
as very recently-acceded Members and small low- income RAMs with economies in transition12, shall 
not be required to undertake re ductions in final bound tariffs. 
68. For all other RAMs, to the extent that, in implementing commitments undertaken in acceding 
to the WTO, there would be actual overlap with commitments to be otherwise undertaken in 
association with these Modalities, the start of implementation of commitments undertaken in 
association with these Modalities for such tariff lines shall begin one year after the end of 
implementation of the accession commitment. 
69. The implementation period for RAMs may be prolonged by up to two years after the end of the 
developing country Members' implementation period. 
                                                      
9 i. e. the average of the cuts made. 
10 In the case of Venezuela, this ceiling shall be 30 percent. 
11 The Members concerned are those that meet the criteria set out in paragraph 151 and are listed in Annex I.  
As is made clear in the Agreed Framework, Small vulne rable economies (SVEs) are not meant to create any sub -
category of Members.  Bearing that prin ciple in mind, the following Members could also be deemed to be eligible for 
this treatment, should they choose to avail themselves of it, despite not being members of the SVE Group per se  given 
that this treatment could be deemed to be broadly comp arably appropriate:  Republic of Congo, Côte d'Ivoire and 
Nigeria (plus other Members that can provide data that show that they meet the criteria in paragraph 147). 
Additionally, Bolivia shall have access, exceptionally, to treatment equivalent to that provided for in paragraph 142.  
As an exception, Suriname shall rebind its agricultural tariffs on a line by line basis at the level of the average bound tariff of Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint 
Lucia, Saint Vincent and the Grenadines and Tr inidad and Tobago resulting from these modalities. 
12 This is applicable to Albania, Armenia, Georgia, Kyrgyz Republic, Moldova and Mongolia.  TN/AG/26 
Page 28  
 
  70. 
More specific provisions can be found in the relevant sections of this document. 
B. SENSITIVE PRODUCTS  
Designation 
71. Each developed country Member shall have the ri ght to designate up to  4 per cent of tariff 
lines as "Sensitive Products".*  Where such Members have more than 30 per cent of their tariff lines in 
the top band, they may increase the number of Sensiti ve Products by two per cent, subject also to the 
conditions outlined in paragraph 75 below.  Wher e application of this methodology would impose a 
disproportionate constraint in absolute number of tariff lines because tariff concessions are scheduled 
at the 6-digit level, the Member concerned may increase its entitlement by that amount also. 
*  Japan and Canada have declared themselves not to be in a position to agree to this limitation  
72. Developing country Members shall have the right to designate up to one-third more of tariff 
lines as "Sensitive Products". 
Treatment - tariff cut 
73. Members may deviate from the otherwise appli cable tiered reduction formula in final bound 
tariffs on products designated as Sens itive.  This deviation may be one-t hird, one-half or two-thirds of 
the reduction that would otherwise have been requi red by the tiered reduction formula. Accordingly 
all of the tariff lines for a particular product shall take a uniform deviation. 
Tariff quota expansion 
74. For developed country Members, tariff quotas derived from the provisions in paragraph 71 
above and paragraphs 75-77 below shall result in  new access opportunities equivalent to no less than 
4 per cent of domestic consumption expressed in te rms of physical units where the two-thirds 
deviation is used.  Where the one-third deviation is used, the new access opportunities shall be no less 
than one per cent less than that percentage of dom estic consumption.  Where the one-half deviation is 
used, the new access opportunities shall be no less th an 0.5 per cent less than that percentage of 
domestic consumption.13 
75. Where a Member is entitled to, and chooses to  exercise its entitlement to have a higher 
number of Sensitive Products pursuant to paragra ph 71 above, the relevant amounts specified in 
paragraph 74 shall be maintained fo r the defined percentage of produc ts applicable to all developed 
country Members.  For the additional 2 per cent  available to those Members under paragraph 71, the 
Member concerned shall have an obligation to en sure that, whichever deviation is selected, an 
additional 0.5 per cent of domestic consumption beyond what is genera lly provided for is achieved for 
those  products.   
76. If, after application of all its tariff reduction commitments (i.e. including its Sensitive Product 
deviation entitlements), a developed country Member14 would still have some of its tariff lines in 
                                                      
13 See Annex C regarding the calculation of these tariff quota expansion commitments under paragraph 74-
83. 
14 For a developing country Member the relevant tariff threshold is 150 per cent ad valorem  and the 
limit is, consistent with paragraph 72, one-third more than for a developed country Member. In addition, where 
a developing country Member applies a Special Product  entitlement, the tariff threshold shall not apply.  TN/AG/26 
 Page 29 
 
 
  excess of 100 per cent ad valorem , it shall be entitled to retain thes e only if the tariff lines concerned 
are confined to those designated as, and are within  the numerical limits of, that Member’s overall 
Sensitive Product entitlement and that the Member c oncerned applies a higher expansion of 0.5 per 
cent of domestic consumption for those ta riff lines concerned. [Certain Members15 may also do so 
outside the Sensitive Product entitlement provided that (a) this is for no more than 1 per cent of its 
tariff lines beyond the Member’s sensitive entitlemen t; and (b) that the Member concerned either 
provides a further expansion of 0.5 per cent of dome stic consumption for all its Sensitive Products or 
provides that, for any line concerned, the tariff cut is implemented two years faster than would otherwise be required or is increased by  an additional ten percentage points ad valorem .] 
77. Where the existing bound tariff quota volume al ready represents 10 per cent or more of 
domestic consumption, the obligations to expa nd the tariff quota volumes by the percentages of 
domestic consumption specified in paragraph 74 may be reduced by 0.5% for each deviation.  Where 
the existing bound tariff quota volu me represents 30 per cent or more of domestic consumption, the 
obligations to expand the tariff quota volumes by th e percentages of domestic consumption specified 
in paragraph 74 above may be reduced  by 1 per cent for each deviation. 
78. For developing country Members using the Se nsitive Product deviation entitlements provided 
for in paragraph 73 above, the tariff quota expansion shall be two thir ds of the volume for developed 
country Members.  For developing country Memb ers, domestic consumption shall not include self-
consumption of subsistence produc tion.  Alternatively, developing country Members may choose 
from one of the three following options for use of their Sensitive Product entitlement by taking a 
smaller deviation than would otherwise be requi red under paragraph 63 above at the rate of: 
(a) one-third less than the formula cut otherwise applicable for no more than half of their 
Sensitive Product entitlement implemented over 3 years; or 
(b) one-half less than the formula cut otherwi se applicable for no more than one-third of 
their Sensitive Product entitlement implemented over 2 years; or 
(c) two-thirds less than the formula cut othe rwise applicable for no more than one-quarter 
of their Sensitive Product entitlement by the e nd of the first year of implementation. 
79. For the remainder of their Sensitive Product ta riff lines, a developing country Member may 
either take the full formula tariff cut, but with an implementation period that is three years longer than 
would otherwise be required, or apply tariff quota expansion. 
80. A Member may also choose to take the fu ll formula cut on all the lines but with an 
implementation period that is three years longer than would otherwise be required. 
81. Where recourse is taken to the provisions a bove there would be no requirement for tariff 
quota expansion on the relevant tariff lines excep t as provided for in paragraph 79 above.   
82. Expansion of the tariff quota for a Sensitiv e Product shall be scheduled and applied erga 
omnes  on a most-favoured-nation basis only.  The firs t instalment shall occur on the first day of 
implementation and be a minimum of  one quarter of the total additi onal domestic consumption.  The 
remaining three-quarters of the tota l shall be added in three steps at the expiry of each subsequent 
twelve-month period.   
 
                                                     
 
15 Iceland, Japan, Norway, Switzerland. TN/AG/26 
Page 30  
 
  83.  
Either : 
No tariff line may be declared sensitive and subject  to a tariff quota for Sensitive Products unless that 
tariff line was already subject to a pre-Doha tariff quota.   
Or: 
Members are entitled to declare sensitive any tariff line, irrespective of whether that tariff line was 
already subject to a pre-Doha tariff quota. 
C. O
THER ISSUES  
Tariff escalation 
84. The tariff escalation formula provided below sha ll apply to the list of primary and processed 
products attached in Annex D.16 
85. In addition to the application of  the tiered tariff reduction formula, tariff escalation shall be 
addressed in the following manner: 
86. Instead of taking the cut that would otherwise a pply to final bound tariffs in the band to which 
the processed product belongs (with the exception of the top band), the processed product shall take 
the cut that would, according to the tiered formula, othe rwise be applicable to the tariffs that fall in the 
next highest band.  A processed product in the top band shall be reduced by a cut which is equal to the 
cut that would otherwise have been applicable  according to the tiered formula increased by 6 ad 
valorem  points. 
87. These supplementary cuts shall be modera ted for the products concerned in two 
circumstances.  First, where the absolute difference between the processed and primary product tariffs 
after application of the normal tariff formula would be 5 ad valorem  percentage points or less in any 
given tier except in the case of the bottom tier, no additional tariff escalation adjustment shall be 
required. 
88. Second, the tariff escalation adjustment form ula cannot be applied in full where doing so 
would reduce the tariff for the processed product below that applicable to the primary product.  In a 
situation where this would occur, the rate of reduc tion for the processed product shall be moderated to 
ensure that the final bound rate of the processed  product equates to, but does not reduce below, the 
final bound rate for the primary product. 
89. Tariff escalation treatment shall not apply to any product that is declared as Sensitive.  Where 
the reduction for a tropical product would result in a reduction that is greater than the reduction under 
the tariff escalation formula, the tropical product reduction shall apply. 
90. This modality shall be applied by devel oped country Members and developing country 
Members declaring themselves to  be in a position to do so. 
                                                      
16 It is understood that conformity with the provisions of the modalities on this matter is without 
prejudice to whether or not tariff escalation, as a f actual matter, does or does not continue to exist.  TN/AG/26 
 Page 31 
 
 
  Commodities 
91. In the event that adverse effects of tariff escal ation for commodities were not to be eliminated 
via the tiered formula for reductions in bound duties and such specific measure s on tariff escalation as 
are provided for, Members shall engage with co mmodity-dependent producing country Members to 
ensure satisfactory solutions. 
92. Consistent with this, the followi ng approach shall be applicable: 
(a) commodity-dependent developing country Members, individually or as a group, shall 
identify and present products of interest to them for purposes of addressing tariff 
escalation to be adopted as part of the modalities.  In doing so, they will indicate the match of products on which tariff escalation should be addressed; 
(b) developed countries and those developing country Members declaring themselves to 
be in a position to do so shall undertake ta riff escalation reductions in the identified 
products; 
(c) at the end of the implementation period, th e difference between the identified primary 
and processed products shall not exceed an ag reed defined percentage  spread in the 
event that the combined effect of reduc tions through the tiered formula, through 
liberalisation of  tropical and diversificati on products and through the tariff escalation 
is not deemed to have been sufficient.   
93. Provision shall be made also for suitable pro cedures for negotiations on the elimination of 
non-tariff measures affecti ng trade in commodities. 
94. This work shall continue through the post-m odality phase to be concluded no later than the 
scheduling phase. The Secretariat will provide technical assistance in support of the commodity-
dependent developing country Me mbers throughout this period.  
95. Provision shall be made to ensure the possib ility that Members may take joint action through 
adoption of suitable measures, including thro ugh adoption of intergovernmental commodity 
agreements, for stabilization of prices for exports of agricultural commodities at levels that are stable, 
equitable and remunerative.  The provisions of  Article XXXVIII in the chapter on Trade and 
Development of GATT 1994, Part IV which inter alia  stipulates that the WTO Members could take 
"joint action" through "international arrangements"  for ensuring "stable equitable and remunerative 
prices" for exports of primary agricultural commod ities should be reviewed, clarified and improved  
so that, taken together with the  role of Article  XX (h) referred to in paragraph 100 below, an 
understanding will be reflected in the Agreement on Agriculture that the term "arrangements" covers 
both commodity agreements of which all interested  producing and consuming countries are parties;  
and agreements of which only commodity-dependent producing countries are parties. 
96. Action for negotiations and adoption of inte rgovernmental commodity agreements in 
pursuance of the provisions of the paragraph above  may be taken either jointly by producing and 
consuming countries or by commodity-dependent producing countries only. 
97. Such intergovernmental commodity agreemen ts may be negotiated and adopted by the 
countries themselves, or adopted after negotiati ons undertaken under the auspices of the WTO, 
UNCTAD or international commodity organizations. 
98. Intergovernmental commodity agreements may be  negotiated and adopted on an international 
or regional basis. TN/AG/26 
Page 32  
 
  99. Such agreements may provide for participation of association of producers. 
100. The general exceptions provisions of Article  XX (h) of GATT 1994 shall also apply to 
intergovernmental commodity agreements of which only producing countries of the concerned 
commodities are Members. 
101. Technical assistance shall be provided for, inter alia , the improvement of world markets for 
commodities and adoption and implementation of  intergovernmental commodity agreements. 
102. Financial resources required by the internationa l trade and other organizations for providing 
technical assistance in accordance with the provisi ons of paragraphs 100 an d 101 above shall be 
monitored through the mechanism established in WTO for administering Aid for Trade. 
Tariff simplification 
103. No tariff shall be bound in a form more comp lex than the current binding. All simplified 
bound tariffs shall not amount to any increase over the original more complex tariff.  
104.  
Either: 
All bound tariffs on products in a Member's Schedule shall be expressed as simple ad valorem  tariffs 
using the methodology set out in Annex A to TN/AG/W/3 of 12 July 2006. 
Or:  
No less than 90 percent of bound tariffs on products  in a developed country Member’s Schedule shall 
be expressed as simple ad valorem tariffs using the methodology set out in Annex A to TN/AG/W/3 
of 12 July 2006.
17  As regards, the residual unconverted tariff lines, each Member shall, by the end of 
the implementation period, have undertaken a review of the situation so that a decision can be taken 
no later than one year after the end of the impl ementation period on how to thereafter achieve 100% 
ad valorem  coverage. 
105. The above commitments shall be applied s ubject to the terms and conditions of the 
methodology set out in Annex N.  
106. In any case, the most highly complex forms of bound tariffs, such as those resulting from 
complex composition matrices, shall be converted to ad valorem  or specific tariffs.   The method for 
converting these into specific or ad valorem  tariffs shall be the methodology to calculate ad valorem  
equivalents as set out in Annex A to TN/AG/W/3 of 12 July 2006. 
107. Developing country Members making such conversi ons shall have an additional two years to 
achieve this outcome, if applicable.  For deve loping country Members that face challenges in 
converting non-ad valorem tariffs into ad valore m tariffs, efforts will be made to address such 
challenges, including through technical assistance. Least-developed country Members shall not be 
required to effect any such changes. 
108. The simplified tariffs shall be specified in  Members' Draft Schedules.  In all cases of 
proposed simplification, Members shall supply sup porting data that demonstrates that the proposed 
                                                      
17 In the case of the European Communities, however, this figure shall be 85% and, within the residual 
15 percent that is not converted, up to but no more than 5% may be retained as compound or mixed tariffs.  TN/AG/26 
 Page 33 
 
 
  simplified bound tariff is representative of, and doe s not amount to any increase over, the original 
more complex tariff and that the proposed simplification is in conformity with the agreed methodology.  All Members shall be given sufficien t time for evaluation of the proposed changes and 
all Members undertaking such a simplification shall respond constructively to queries made regarding 
those proposed conversions.  Upon request, the WTO Secretariat shall provide advice on technical 
matters and shall give particular technical assi stance to developing country Members.   
Tariff quotas 
(a) Bound in-quota tariffs18 
109. For developed country Members, all in-quota tari ffs shall be reduced either by 50 per cent or 
to a threshold of 10 per cent, whichever results in the lower tariff.  The reductions shall be 
implemented on the same time-frame as for the ex pansion of tariff quotas.  The maximum in-quota 
tariff on the first day of implementation shall be 17.5 per cent.  Where the in-quota tariff rate is 
already bound at or below 5% per cent ad valorem  it shall be reduced to zero at the end of the first 
year of the implementation period.19 
110. Where, in its current Schedule, a Member h as a tariff quota which includes a tariff line or 
tariff lines each of which has bound in-quota tariff(s ) equal to or higher than the bound out-of-quota 
tariff(s), effectively making the tariff quota non-oper ational, the Member concerned may eliminate the 
tariff quota.  In such a case, the Member concer ned shall compensate for the elimination of these 
quotas by reducing the threshold referred to in the pr evious paragraph by two percentage points for all 
operational quotas. 
111. Developing country Members' in-quota tariffs sh all be reduced by 15 per cent.  SVEs' in-
quota tariffs shall be reduced by 7.5 per cent20.  However, there shall be no equivalent to the 
developed country Member requirement to reduce to a threshold if lower; nor to the requirement to 
reduce rates at or below 5 per cent ad valorem  to zero. The reductions sh all be implemented on the 
same time-frame as for the expansion of tariff quotas. Where the tariff lines in a tariff quota are 
declared to be Special Products with zero cut, there shall be no requirement to reduce the in-quota 
tariff. 
112. Where a small, vulnerable economy has a tariff quota,  all the tariff lines of which are declared 
Special Products, it shall not be required to reduce the in-quota tariffs. 
113. The relevant reduction by RAMs shall be furthe r reduced to one third of the percentage cut 
required for developing country Members. In-quot a tariffs at or under 15 per cent need not be 
reduced.  Saudi Arabia, the Former Yugoslav Republic  of Macedonia, Viet Nam, Tonga and Ukraine, 
as very recently-acceded Members and small low-income RAMs with economies in transition21 need 
not make any reductions. 
114. All in-quota tariffs shall be bound in ad valorem  form.  For expanded Sensitive tariff quotas a 
single rate of duty, equal to the lowest current bound in-quota tariff applicable to the tariff lines 
                                                      
18 Reductions in in-quota tariffs shall not count for the purposes of calculating the average cuts. 
19 Switzerland shall be allowed not to reduce to zero the in-quota tariff for 2 tariff lines of wine in 
bottles, and not to reduce to 10 per cent the in-quota tariffs for two tariff lines of bread cereals.  This shall apply 
to bound in-quota tariffs only.  Sw itzerland shall compensate with new ma rket access opportunites equivalent to 
1 per cent of domestic consumption. 
20 Venezuela may also apply this provision. 
21 This is applicable to Albania, Armenia, Georgia, Kyrgyz Republic, Moldova and Mongolia TN/AG/26 
Page 34  
 
  covered by a single quota, shall be the starting point  for reductions for all tariff lines covered by the 
expanded tariff quota..   
(b) Tariff quota administration 
115. Tariff quota administration of scheduled tariff quot as shall be deemed to be an instance of 
"import licensing" within the meaning of the Uruguay Round Agreement on Import Licensing 
Procedures and, accordingly, that Agreement shal l apply in full, subject to the Agreement on 
Agriculture and to the following more  specific and additional obligations. 
116. As regards the matters referred to  in paragraph 4(a) of Article 1 of that Agreement, as these 
agricultural tariff quotas are negotiated and schedul ed commitments, publication of the relevant 
information shall be effected no later than 90 da ys prior to the opening date of the tariff quota 
concerned.  Where applications are involved, this  shall also be the minimum advance date for the 
opening of applications. 
117. As regards paragraph 6 of A
rticle 1 of that Agreement, applicants for scheduled tariff quotas 
shall apply to one administrative body only. 
118. As regards the matters referred to in paragraph 5(f) of Article 3 of that Agreement, the period 
for processing applications shall be, unqualifiedly, no  longer than 30 days for "as and when received" 
cases and no longer than 60 days for "simultane ous" consideration cases.  The issuance of licences 
shall, therefore, take place no later than the eff ective opening date of the tariff quota concerned, 
except where, for the latter category, there has been  an extension for applications allowed for under 
Article 1.6 of that Agreement. 
119. As regards Article 3.5(i), licences for schedul ed tariff quotas shall be issued in economic 
quantities. 
120. Tariff quota "fill rates" shall be notified. 
121. In order to ensure that their administrative pro cedures are consistent with Article 3.2 of that 
Agreement, "no more administratively burdensom e than absolutely necessary to administer the 
measure", importing Members shall ensure that unfilled tariff quota access is not attributable to 
administrative procedures that are more constraini ng than an "absolute necessity" test would demand. 
122. Where licences held by private ope rators exhibit a pattern of bein g  less than fully utilized for 
reasons other than those that would be expected to be followed by a normal commercial operator in 
the circumstances, the Member allocating the licences shall give this due weight when examining the 
reasons for under utilization and considering the allocation of new licences as provided for under 
Article 3.5 (j). 
123. Where it is manifest that a tariff quota is under filled but there would appear to be no 
reasonable commercial reason for this  to be the case, an importing Me mber shall request those private 
operators holding unused entitlements whether they w ould be prepared to make them available to 
other potential users.  Where the tariff quota is held by a private operator in a third country, e.g. as a result of  country-specific allocation arrangements, the importing Member shall transmit the request to 
the holder of the allocation concerned. 
124. As regards Article 3.5(a) (ii) of that Agreem ent, Members shall make available the contact 
details of those importers holding licen ces for access to scheduled agricultural
 tariff quotas, where, 
subject to the terms of Article 1.11, this is possible and/or with their consent.  TN/AG/26 
 Page 35 
 
 
  125. Members shall provide for an effective re-a llocation mechanism in accordance with the 
procedures outlined in Annex E 
Special Agricultural Safeguard (SSG) 
126. Developed country Members shall reduce to 1 pe r cent of scheduled tariff lines the number of 
lines eligible for the SSG on the first day of implemen tation, and it shall have been eliminated no later 
than the end of the seventh year of implementation.  At no time during this seven year period may the 
total duty applicable on a tariff line exceed the pre Doha round tariff binding.  If a tariff line included 
in the 1 per cent SSG entitlement is declared sens itive, the tariff quota expansion applicable to a two-
thirds deviation shall apply.  In addition, produc ts subject to delayed implementation shall not be 
subject to other flexibilities reducing quota si ze other than sub-allocation.  The standard 
implementation period for in-quota ra te reductions shall apply to tariff lines included in the 1 per cent 
SSG entitlements. 
127. For developing country Members the SSG coverage  shall be reduced to no more than 2.5 per 
cent of tariff lines on the first day of implementation.   For SVEs the SSG coverage shall be reduced to 
no more than 5 per cent of lines over 12 years.  Th e terms and conditions of the SSG shall remain 
unchanged from the terms and co nditions in the Uruguay Round Agreement on Agriculture except 
that the tariff rates concerned shall be updated to reflect the outcome of the Doha Round negotiations.  
128. Article 5 of the Agreement on Agriculture sh all be amended accordi ngly to reflect these 
modalities. 
D. SPECIAL AND DIFFERENTIAL TREATMENT  
Special Products 
129. Developing country Members shall be entitled to self-designate Special Products guided by 
indicators22 based on the criteria of food security, livelihood security and rural development. There 
shall be 12 per cent of tariff lines available for self-designation as Special Products. Up to 5 per cent 
of lines may have no cut. The overall averag e cut shall, in any case, be 11 percent.* 
*  A number of developing country Members have expresse d reservations concerning the numbers specified in 
this paragraph, noting also that this may be affected by what is decided in other areas of the text.  
130. In the case of small vulnerable economies, including those among them which are ceiling 
binding and homogenously low binding countries, they may, if they choose to do so, apply the moderated tariff tiered formula for SVEs provided for in paragraph 65 above plus the Special Product 
entitlement outlined above.  Alternatively, they may chose not to apply the tiered formula but simply 
meet an overall average cut of 24 per cent through ha ving in effect opted to designate as many tariff 
lines as they choose as Special Products.  The tari ff lines so chosen need not be subject to any 
minimum tariff cut and need not be guided by the indicators. 
131. In the case of RAMs, the maximum tariff line entitle ments to Special Products shall be 13 per 
cent and the overall average cut to be achieved fo r the designated tariff lines may be further reduced 
to 10 per cent.   
                                                     
 
22 See Annex F. TN/AG/26 
Page 36  
 
  Special Safeguard Mechanism (SSM) 
132. The SSM shall have no a priori  product limitations as to its ava ilability, i.e. it can be invoked 
for all tariff lines in principle.  A price-based and a volume-based SSM shall be available. In no circumstances may any product be, however, subject to the simultaneous application of price – and 
volume-based safeguards.  Nor shall there be app lication of either of these measures if an SSG, a 
measure under GATT Article XIX, or a measure unde r the Agreement on Safeguards is in place. 
133. As regards the volume-based SSM, it shall be applied on the basis of a rolling average of 
imports in the preceding three-year period (hereafter "base imports").  On this basis, the applicable 
triggers and remedies shall be set as follows: 
(a)  where the volume of imports during any year exceeds 110 per cent but does not 
exceed 115 per cent of base imports, the maximum additional duty that may be 
imposed on applied tariffs shall not exceed  25 per cent of the current bound tariff or 
25 percentage points, whichever is higher; 
(b)  where the volume of imports during any year exceeds 115 per cent but does not 
exceed 135 per cent of base imports, the maximum additional duty that may be 
imposed on applied tariffs shall not exceed  40 per cent of the current bound tariff or 
40 percentage points, whichever is higher; 
(c)  where the volume of imports during any year exceeds 135 per cent of base imports, 
the maximum additional duty that may be  imposed on applied tariffs shall not 
exceed 50 per cent of the current bound tariff or  50  percentage points, whichever is 
higher;  
(d)  where, formally, these triggers could be met, but the absolute level of imports is 
manifestly negligible in relation to dom estic production and consumption, remedies 
would not be applied.  
134. Imports under any scheduled tariff rate quota commitment may be counted for the purpose of 
determining the volume of imports required for invoking the volume-based SSM (except where a 
volume increase is entirely attributable to a scheduled tariff rate quota increase under Doha 
implementation phasing), but no additional duty shall be imposed on imports within such tariff rate 
quota commitments. 
135. As regards the price-based SSM, it shall be applicable where the c.i.f. import price
23 of the 
shipment24 entering the customs territory of the devel oping country Member, expressed in terms of its 
domestic currency falls below a trigger price25 equal to 85 per cent of the average monthly 
MFN-sourced price26 for that product for the most recent three-year period preceding the year of 
importation for which data are available, provide d that, where the developing country Member's 
domestic currency has at the time of importation de preciated by at least 10 per cent over the preceding 
12 months against the international currency or cu rrencies against which it is normally valued, the 
                                                      
23 Hereafter the "import price". 
24 A shipment shall not be considered for purposes of paragraphs 135 and 146 unless the volume of the 
product included in that shipment is within the range of normal commercial shipments of that product entering into the 
customs territory of the importing developing country Member. 
25 The trigger price shall be publicly disclosed and available to the extent necessary to allow other Members 
to assess the additional duty that may be levied. 
26 Hereafter the "reference price". The reference price us ed to invoke the provisions of this paragraph shall 
be the average monthly c.i.f. unit value of the product concerned.  TN/AG/26 
 Page 37 
 
 
  import price shall be computed using the average ex change rate of the domestic currency against such 
international currency or currencies for the three-year period referred to above. 
136. The price-based SSM remedy shall apply on a sh ipment-by-shipment basis.  The additional 
duty shall not exceed 85 per cent of the differe nce between the import price of the shipment 
concerned and the trigger price.  
137. Developing country Members shall not normally take recourse to the price-based SSM where 
the volume of imports of the products concerned in the current year is manifestly declining, or is at a 
manifestly negligible level incapable of undermining the domestic price level. 
138. The calculation of volume or price triggers, a nd the application of measures in accordance 
with the relevant provisions of this section, shall be on the basis of MFN trade only. 
139. Any shipments of the product in question which,  before the imposition of the additional duty, 
have been contracted for and were en route afte r completion of custom clearance procedures in the 
exporting country, either under the price- or volume-based SSM, shall be exempted from any such additional duty, provided that where a volume-base d SSM may be applicable in the next twelve-
month period, the shipment of the product in question may be so counted in that period for the 
purposes of triggering the SSM. 
140. The volume-based SSM may be maintained fo r a maximum period of 12 months from the 
initial invocation of the measure, unless a seasonal product is involved, in which case the SSM shall 
apply for a maximum of six months or to cover the period of actual seasonality, whichever is the 
longer. For the next immediate (consecutive) period , the three year rolling average shall be inclusive 
of that immediately preceding period of imports wh en the SSM was in place. However, where this 
would have the effect of lowering the three year rolling average below the level which triggered the 
SSM in the initial period, the trigger level for the in itial period shall apply.   No product shall be 
subject to the volume-based SSM consecutively for more than two periods and where such 
consecutive application has occurred this may not be resorted to again before the elapse of a further 
two consecutive periods. 
141. The operation of the SSM shall be carried out  in a transparent manner and the basis upon 
which ongoing calculations of rolling averages of im port volumes and prices shall be accessible to all 
Members so that they can be fully informed of  the basis upon which any potential actions may be 
taken.  Any developing country Me mber taking action shall give notice in writing, indicating the tariff 
lines affected by the additional SSM duty and including relevant data, to the Committee on 
Agriculture as far in advance as may be practicable or , where this is not possible, no later than 15 days 
after the implementation of such action.  The Me mber taking action shall afford any interested 
Members the opportunity to consult with it in respect of the conditions of application of such action. 
142. The above provisions on triggers and remedies apply subject to the limitation that the pre-
Doha bound tariff is respected as the upper limit and shall prevail as such. 
143. For least-developed country Members they may, nevertheless, apply the maximum remedy 
provided for above even if this would otherwise entail breach of a pre-Doha bound tariff, provided 
that the maximum increase over a pre-Doha bound tariff does not exceed 40 ad valorem  percentage 
points or 40 per cent of the current bound tariff, whichever is higher. This would be provided that all other relevant conditions fo r application of the measure have been met.   
144. [In the case of SVE’s referred to in footnot e 11 to these modalities, they may apply the 
maximum remedy provided for above even if this  would otherwise entail breach of a pre-Doha bound 
tariff, provided that the maximum increase over a pre-Doha bound tariff does not exceed 20 ad TN/AG/26 
Page 38  
 
  valorem  percentage points or 20 per cent of the curren t bound tariff, whichever is higher, for up to a 
maximum of (10-15) per cent of tariff lines in any gi ven period.  This would be  provided that all other 
relevant conditions for application of the measure have been met.  
145. For developing country Members other than those referred to in the preceding paragraph, they 
may apply the maximum remedy provided for above even if this would otherwise entail breach of a 
pre-Doha bound tariff provided that (a) the maxi mum increase over the pre-Doha bound tariffs would 
be no more than 15 ad valorem  percentage points or 15 per cent of the current bound tariff, whichever 
is the higher; (b) the maximum number of produc ts for which this provision would be invoked would 
be no more than 2-6
27 in any given period; and (c) this woul d not be permissible for two consecutive 
periods. All other provisions would be applicable.]  
146. The relevant Articles of the Agreement on Agricu lture shall be amended to reflect the above 
modalities. 
Fullest liberalization of trade in tropical and diversification products 
147. For those tropical and diversification products  attached in Annex G, the following modality 
shall be applied over and above that which would otherwise result from application of the tiered 
formula.   
148.  
Either:  
Where the scheduled tariff is less than or equal to 25  per cent ad valorem, it shall be reduced to zero. 
Where it is greater than 25 per cent ad valorem the applicable tariff cut shall be 85 per cent.  There 
shall be no sensitive product treatment for any of the products appearing on the annexed list.  The 
implementation of the cuts concerned shall be in four equal annual steps for all developed country 
Members. 
Or:  
Where the tariff is greater than or equal to 10 pe r cent, it shall be reduced by  the percentage cut 
specified in paragraph 61 (d) above, except for tariffs  in the top band which shall be reduced by the 
tariff escalation tariff cut for that band increased by 2 ad valorem points.  Where the tariff is less than 
10 per cent, it shall be reduced to zero.  The reduc tions concerned shall be implemented by developed 
country Members in accordance with the general ta riff reduction implementati on period. Developing 
country Members declaring themselves in a position to do so are encouraged to make additional 
efforts on tropical products beyond what w ould be required under the tiered formula 
Long-standing preferences and preference erosion 
149.       
Either:  
                                                      
27 For the purposes of this provision a “product” is identifiable at the 6-digit level of the Harmonized System 
(HS) nomenclature, but with the understanding that this can entail a maximum of [4 - 8] tariff lines per product   below 
that 6-digit level.  TN/AG/26 
 Page 39 
 
 
  For the products listed in Annex H, there shall be no tariff cuts on the items in that list for 10 years.  
Tariff cuts shall commence only after that point and  shall be implemented over five years in equal 
annual instalments thereafter.  
Or:  For those products listed in Annex H, where:  
(a) the pre-Doha MFN bound tariff is greater than 10 per cent ad valorem, and 
(b) over the most recent three-year period, the total value of trade from long-standing 
preference receiving country Memb ers is greater than US$ 50,000 or is 3 per cent of 
any long-standing preference receiver's to tal agricultural trade to the market 
concerned, and 
(c) there is unconstrained long-standing preferen ce eligibility in the market concerned,  
tariff cuts by long-standing preference granting country Members shall be implemented in equal 
annual instalments steps over a period that is two years longer than the implementation period for developing country Members for tariff cuts under the tiered formula. 
Where, however, there is an overlap between products subject to this provision and those covered by 
the tariff escalation and/or tropical products provisions, the latter pr ovisions shall prevail, except for 
the specific list of products identified in Annex X on which tariff reduction commitments shall proceed 
as is specifically determined in that Annex.
 
150. Long-standing preference granting Members havi ng undertaken to provide targeted technical 
assistance, including additional financial and capacity  building assistance to help address supply-side 
constraints and to promote the diversification of existing production in the territories of preference 
receiving Members, progress shall be reviewed annually. 
E. L EAST -DEVELOPED COUNTRIES  
151. Least-developed country Members are not required to undertake reductions in bound duties. 
152. We reaffirm the need to facilita te LDCs' secure, beneficial and me aningful integration into the 
multilateral trading system.  In this regard, we recall the Decision on Measures in Favour of Least-
Developed Countries contained in decision 36 of Annex F of  the Hong Kong Ministerial Declaration 
(the "Decision"), and agree that developed Me mbers shall, and developing country Members 
declaring themselves in a position to do so should28: 
(a) (i) Provide duty-free and quota-free market access on a lasting basis, for all products 
originating from all LDCs no later than th e start of the implementation period in a 
manner that ensures stability, security and predictability. 
(ii) Members facing difficulties at this time to provide market access as set out above 
shall provide duty-free and quota-free market access for at least 97 per cent of products 
originating from LDCs, defined at the tariff line level, no later than the start of the implementation period.  In addition, these Me mbers shall take steps to progressively 
achieve compliance with the obligations set out above, taking into account the impact on 
                                                     
 
28 Consistent with the text of the “Decision on Meas ures in Favour of Least- Developed Countries” in 
Annex F of the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC) TN/AG/26 
Page 40  
 
  other developing country Members at similar le vels of development, and, as appropriate, 
by incrementally building on the initial list of covered products. 
(iii)  Developing country Members shall be permitted to phase in their commitments and 
shall enjoy appropriate flexibility in coverage. 
(b) Provide meaningfully enhanced market access for all LDCs. 
(c) Ensure that preferential rules of origin applicable to imports from LDCs will be 
transparent, simple and contribute to facilita ting market access in respect of agricultural 
products.  In this connection, we urge Me mbers to use the model provided in document 
TN/MA/W/74, as appropriate, in the design of the rules of origin for their autonomous preference programmes. 
153. Accordingly, developed country Members sha ll inform WTO Members, by a date to be 
agreed, of the products that will be covered under the commitment to provide duty-free and quota-free 
market access for at least 97 pe r cent of products originating from LDCs defined at the tariff line 
level.  The agreement on the date by which this in formation shall be provided shall be concluded prior 
to the date of the Special Session of the Ministerial Conference to be held to take decisions regarding 
the adoption and implementation of the results of th e negotiations in all areas of the DDA (the "Single 
Undertaking"). 
154. As part of the review foreseen in the Decision, the Committee on Trade and Development 
shall monitor progress made in its implementation, incl uding in respect of preferential rules of origin.  
The details of the monitoring procedure shall be  defined and agreed by the Negotiating Group on 
Market Access by the time of the submission of fi nal schedules.  Under the monitoring procedure, 
Members shall annually notify the Committee on Trad e and Development (a) the implementation of 
duty-free and quota-free programmes, including the st eps taken and possible timeframes established 
to progressively achieve full compliance with the De cision and (b) the corresponding rules of origin.  
The first notification under this monitoring procedure shall be made by the start of the implementation 
of the results of the DDA.  The Committee on Trade and Development shall review such notifications 
and shall report annually to the Gene ral Council for appropriate action.  
C
OTTON MARKET ACCESS  
155. Developed country Members and developing country Members decl aring themselves to be in 
a position to do so shall give duty- and quota-free access for cotton exports from least-developed 
country Members from the first day of the implementation period. 
156. Developing country Members that are not in a position to give duty- and quota-free access for 
cotton exports from least-developed country Members from the first day of the implementation period 
shall undertake to look positively at possibilities for increased import opportunities for cotton from 
least-developed country Members. 
G.  S MALL , VULNERABLE ECONOMIES  
157. For the purposes of these modalities, this term a pplies to Members with economies that, in the 
period 1999 to 2004, had an average share of (a) world merchandise trade of no more than 
0.16 per cent or less, and (b) world trade in non-agricultural products of no more than 0.1 per cent and (c) world trade in agricultural products of no more than 0.4 per cent.  TN/AG/26 
 Page 41 
 
 
  158. Developed country Members and developing country Members in a position to do so shall 
provide enhanced improvements in market access for products of export interest to Members with 
small, vulnerable economies. 
159. More specific provisions are to be found in relevant sections of this document. TN/AG/26 
Page 42  
 
  III. EXPORT COMPETITION 
A. G
ENERAL  
160. Nothing in these modalities on export competition ca n be construed to give any Member the 
right to provide, directly or indirectly, export s ubsidies in excess of the commitments specified in 
Members' Schedules, or to otherwise detract from th e obligations of Article 8 of that Agreement.  
Furthermore, nothing can be construed to imply any change to the obligations and rights under 
Article 10.1 or to diminish in any way existing obligations under other provisions of the Uruguay 
Round Agreement on Agriculture or other WTO Agreements. 
161. Nor can anything in these modalities be constr ued to diminish in any way the existing 
commitments contained in the Marrakesh Deci sion on Measures Concerning the Possible Negative 
Effects of the Reform Programme on Least-developed and Net Food-importing Developing Countries 
of April 1994 and the Decision on the Implementati on-related Issues and Conc erns of 14 November 
2001 on, inter alia, commitment levels of food aid,  provision of food aid by donors, technical and 
financial assistance in the context of aid progr ammes to improve agricultural productivity and 
infrastructure, and financing normal levels of comme rcial imports of basic foodstuffs.  Nor could it be 
understood to alter the regular review of these deci sions by the Ministerial Conference and monitoring 
by the Committee on Agriculture. 
B. SCHEDULED EXPORT SUBSIDY COMMITMENTS  
162. Developed country Members shall eliminate their remaining scheduled export subsidy 
entitlements by the end of 2013.  This shall be effected on the basis of: 
(a) budgetary outlay commitments being reduced by 50 per cent by the end of 2010 in 
equal annual instalments from the date of entry into force, with the remaining 
budgetary outlay commitments being reduced to  zero in equal annual instalments so 
that all forms of export subsidies are eliminated by the end of 2013. 
(b) quantity commitment levels being app lied as a standstill from the commencement 
until the end of the implementation period at the actual average of quantity levels in 
the 2003-05 base period.  Furthermore, th roughout the implementation period, there 
shall be no export subsidies applied eith er to new markets or to new products. 
163. Developing country Members shall eliminate th eir export subsidy entitlements by reducing to 
zero their scheduled export subsidy budgetary outlay and quantity commitment levels in equal annual 
instalments by the end of 2016. 
164. In accordance with the Hong Kong Ministerial Declaration, developing country Members 
shall, furthermore, continue to benefit from th e provisions of Article 9.4 of the Agreement on 
Agriculture until the end of 2021, i.e. five years af ter the end-date for elimination of all forms of 
export subsidies. 
C. EXPORT CREDITS , EXPORT CREDIT GUARANTEES OR INSURANCE PROGRAMMES  
165. Export credit, export credit guarantees or insurance programmes shall comply with the 
provisions set out in Annex J. 
D. AGRICULTURAL EXPORTING STATE TRADING ENTERPRISES  
166. Agricultural exporting state trading enterprises sh all comply with the provisions of Annex K.  TN/AG/26 
 Page 43 
 
 
  E. INTERNATIONAL FOOD AID 
167. International food aid shall comply with the provisions of Annex L. 
F. COTTON  
168. Those export subsidies for cotton referred to in paragraph 162 above are prohibited in 
accordance with the mandate contained in paragraph 11 of the Hong Kong Ministerial Declaration.  
However, developing country Members which have an y export subsidy entitlement s referred to in that 
paragraph shall comply with this prohibition no later than the end of the first year of the 
implementation period. 
169. To the extent that new disciplines and commitments for export credits, export credit 
guarantees or insurance programmes,  agricultural exporting state trading enterprises and international 
food aid create new and additional obligations for Members as regards cotton, any such obligations 
shall be implemented on the first day of the impl ementation period for deve loped country Members, 
and by the end of the first year of the implem entation period for developing country Members. 
 TN/AG/26 
Page 44  
 
  IV. MONITORING AND SURVEILLANCE 
170. See Annex M. 
V. OTHER ISSUES 
A. [D
IFFERENTIAL EXPORT TAXES  
B. GIS] 
C. EXPORT PROHIBITIONS AND RESTRICTIONS  
171. In order to strengthen the existing disciplines on e xport prohibitions and r estrictions of Article 
XI.2(a) of GATT 1994, Article 12 of the Agreement on Agriculture shall be modified to include the 
following elements. 
172. Prohibitions or restrictions under Article XI.2 (a) of GATT 1994 in Members' territories shall 
be notified to the Committee on Agriculture within  90 days of the coming into force of these 
provisions. 
173. A Member instituting export prohibitions and r estrictions under that provision shall give 
notice of the reasons for introducin g and maintaining such measures. 
174. A Member which intends to institute export prohi bitions and restrictions  shall consult, upon 
request, with any other Member havi ng a substantial interest as an importer with respect to any matter 
related to the proposed measure.  The Member inst ituting such export prohibitions and restrictions 
shall provide, up request, the interested importing Member with necessary information, including relevant economic indicators. 
175. The Member instituting the measure shall report the progress made in the consultations to the 
Committee on Agriculture.   
176. The Committee on Agriculture shall provide for annual notification update and surveillance 
of these obligations. 
177. As provided in paragraph 7 of  Article 18 of the Agreement on Agriculture, any Member may 
bring to the attention of the Committee on Agriculture such measures under that provision which it considers ought to have been notified by another Member. 
178. Existing export prohibitions and restrictions in foodstuffs and feeds under Article XI.2 (a) of 
GATT 1994 shall be eliminated by the end of the first year of implementation. 
179. Any new export prohibitions or restrictions  under Article XI.2 (a) of GATT 1994 should not 
normally be longer than 12 months, and shall only be longer than 18 months with the agreement of the 
affected importing Members. 
180. The above provisions apply consistently with Article 12.2 of the Agreement on Agriculture.  
To the extent that the above provisions on consulta tions apply any obligations additional to Article 12 
of the Agreement on Agriculture, they shall not apply to least-developed and net food-importing 
developing countries.
29 
                                                      
29Cameroon, Congo (Brazzaville), Ghana, Nigeria and Swaziland shall have access also to this 
provision.   TN/AG/26 
 Page 45 
 
 
  ANNEX A 
 
UNITED STATES – PRODUCT SPECIFIC BLUE BOX LIMITS 
 
 
US Product-Specific Blue Box Limits As Notified by the United States  
1. For the United States, the average total valu e of agricultural production during the 1995-2000 
period is equal to $194,139.3 million.  
Year Total value of 
agricultural production 
(million dollars) 2.5 per cent of 
the value of 
agricultural 
production 
1995 190,109.7 4,752.7 
1996 205,701.3 5,142.5 
1997 203,883.7 5,097.1 
1998 190,886.0 4,772.2 
1999 184,734.6 4,618.4 
2000 189,520.3 4,738.0 
Average 194,139.3 4,853.5 
 
2. Under the 2002 Farm Bill, counter-cyclical pa yments for each eligible commodity are equal 
to the counter-cyclical payment rate times 85 pe r cent of base acres time s the counter-cyclical 
payment program yield.  The counter-cyclical paymen t rate is determined as the difference between 
the target price for that commodity, minus the di rect payment rate for that commodity, minus the 
higher of the season average price or the legislated  national loan rate for that commodity.  The 
counter-cyclical payment rate is highest when the mark et price is below the loan rate and is equal to 
the target price minus the direct payment rate minus the loan rate.    3. The legislated maximum permissible expenditu res for each of the years 2002-07 are given in 
appendix table 1.  The figures show s light variation from year to year and reflect the fact that the 2002 
Farm Bill legislated different loan rates and targ et prices over the period.  In addition, eligible 
production shows slight variation due to land entering and exiting from the Conservation Reserve 
Program over the period.  The propor tionate level for each commodity is determined by dividing the 
average maximum payment for the 2002-07 crop year s by the total average maximum payments for 
all commodities.  
Crop Average maximum payment 
2002-07 crop years Payment as per cent  
of total payment 
Corn 3,224.2 44.2% 
Grain sorghum 147.4 2.0% 
Barley 46.7 0.6% 
Oats 8.7 0.1% 
Wheat 1,421.5 19.5% 
Soybeans 550.3 7.5% 
Upland cotton 1,376.5 18.9% 
Rice 323.1 4.4% 
Peanuts 200.9 2.8% 
   
  Total 7,299.2 100.0% 
 
 TN/AG/26 
Page 46  
 
  4. Product-specific limits for Blue Box expenditu res are calculated by multiplying 2.5 per cent 
of the value of agricultural production times the proportionate level of pa yment under the 2002 Farm 
Bill times 110 and 120 per cent.   Product-Specific Blue Box Caps  
Crop 110 per cent 120 per cent 
Corn 2,359.8 2,574.3 
Grain sorghum 106.8 116.5 
Barley 32.0 34.9 
Oats 5.3 5.8 
Wheat 1,041.1 1,135.7 
Soybeans 400.4 436.8 
Upland cotton 1,009.0 1,100.8 
Rice 234.9 256.3 
Peanuts 149.5 163.1 
   
   TN/AG/26
 Page 47Appendix Table 1--Maximum Counter-Cyc lical Payments Under 2002 Farm Bill 
 
  A B C D = A-B-C E F = 0.85*E G H = D*F*G  
 Unit Target price Direct Loan rate Maximum Crop base Payment Payment Payment Percent 
   Payment rate  payment rate  Acres 
 yield  of Total 
   $ per unit  $ per unit  $ per unit  $ per unit mil acres mil acres unit per acre $mil  
2002           
           
Corn bushel 2.60 0.28 1.98 0.34 87.86 74.68 114.3 2,902.3 42.6% 
Sorghum bushel 2.54 0.35 1.98 0.21 12.10 10.29 58.0 125.3 1.8% 
Barley bushel 2.21 0.24 1.88 0.09 8.80 7.48 48.7 32.8 0.5% 
Oats bushel 1.40 0.024 1.35 0.03 3.10 2.64 49.8 3.4 0.1% 
Wheat bushel 3.86 0.52 2.80 0.54 76.20 64.77 36.1 1,262.6 18.5% 
Soybeans bushel 5.80 0.44 5.00 0.36 53.50 45.48 34.1 558.3 8.2% 
Upland cotton pound 0.72 0.0667 0.52 0.1373 18.86 16.03 639.0 1,406.3 20.6% 
Rice cwt 10.50 2.35 6.50 1.65 4.51 3.83 51.24 324.2 4.8% 
Peanuts pound 0.2475 0.018 0.1775 0.05 1.53 1.30 2,989 202.7 3.0% 
           
  Total         6,817.7 100.0% 
           
2003            
           
Corn bushel 2.60 0.28 1.98 0.34 87.83 74.66 114.4 2,903.8 42.8% 
Sorghum bushel 2.54 0.35 1.98 0.21 12.10 10.29 58.1 125.5 1.9% 
Barley bushel 2.21 0.24 1.88 0.09 8.80 7.48 48.7 32.8 0.5% 
Oats bushel 1.40 0.024 1.35 0.03 3.10 2.64 50.0 3.4 0.1% 
Wheat bushel 3.86 0.52 2.80 0.54 76.20 64.77 36.1 1,262.6 18.6% 
Soybeans bushel 5.80 0.44 5.00 0.36 53.50 45.48 34.1 558.3 8.2% 
Upland cotton pound 0.72 0.0667 0.52 0.1373 18.42 15.66 639.0 1,374.0 20.3% 
Rice cwt 10.50 2.35 6.50 1.650 4.49 3.81 51.2 322.2 4.8% 
Peanuts pound 0.2475 0.018 0.1775 0.052 1.52 1.29 2,989 200.3 3.0% 
           
  Total         6,782.8 100.0% 
            
  TN/AG/26 
Page 48   A B C D = A-B-C E F = 0.85*E G H = D*F*G  
 Unit Target price Direct Loan rate Maximum Crop base Payment Payment Payment Percent 
   Payment rate  payment rate  Acres 
 yield  of Total 
   $ per unit  $ per unit  $ per unit  $ per unit mil acres mil acres unit per acre $mil  
2004           
           
Corn bushel 2.63 0.28 1.95 0.400 87.64 74.49 114.2 3,402.9 44.7% 
Sorghum bushel 2.57 0.35 1.95 0.270 12.00 10.20 58.1 160.0 2.1% 
Barley bushel 2.24 0.24 1.85 0.150 8.70 7.40 48.7 54.0 0.7% 
Oats bushel 1.44 0.024 1.33 0.086 3.10 2.64 49.8 11.3 0.1% 
Wheat bushel 3.92 0.52 2.75 0.650 76.00 64.60 36.1 1,515.8 19.9% 
Soybeans bushel 5.80 0.44 5.00 0.360 52.90 44.97 34.1 552.0 7.3% 
Upland cotton pound 0.72 0.0667 0.52 0.1373 18.72 15.91 636 1,389.4 18.3% 
Rice cwt 10.50 2.35 6.50 1.650 4.51 3.84 51.24 324.3 4.3% 
Peanuts pound 0.2475 0.018 0.1775 0.052 1.52 1.29 2,990 200.7 2.6% 
           
  Total         7,610.4 100.0% 
           
2005           
           
Corn bushel 2.63 0.28 1.95 0.400 87.15 74.08 114.3 3,386.8 44.8% 
Sorghum bushel 2.57 0.35 1.95 0.270 11.90 10.12 58.1 158.7 2.1% 
Barley bushel 2.24 0.24 1.85 0.150 8.70 7.40 48.7 54.0 0.7% 
Oats bushel 1.44 0.024 1.33 0.086 3.10 2.64 49.8 11.3 0.1% 
Wheat bushel 3.92 0.52 2.75 0.650 75.40 64.09 36.1 1,503.9 19.9% 
Soybeans bushel 5.80 0.44 5.00 0.360 52.50 44.63 34.1 547.8 7.3% 
Upland cotton pound 0.72 0.0667 0.52 0.1373 18.47 15.70 634 1,366.9 18.1% 
Rice cwt 10.50 2.35 6.50 1.650 4.49 3.82 51.26 322.9 4.3% 
Peanuts pound 0.2475 0.018 0.1775 0.052 1.52 1.29 2,990 201.0 2.7% 
           
  Total         7,553.4 100.0% 
           
            
   TN/AG/26
 Page 49  A B C D = A-B-C E F = 0.85*E G H = D*F*G  
 Unit Target price Direct Loan rate Maximum Crop base Payment Payment Payment Percent 
   Payment rate  payment rate  Acres 
 yield  of Total 
   $ per unit  $ per unit  $ per unit  $ per unit mil acres mil acres unit per acre $mil  
2006           
           
Corn bushel 2.63 0.28 1.95 0.400 86.76 73.75 114.4 3,374.6 44.9% 
Sorghum bushel 2.57 0.35 1.95 0.270 11.80 10.03 58.2 157.6 2.1% 
Barley bushel 2.24 0.24 1.85 0.150 8.60 7.31 48.6 53.3 0.7% 
Oats bushel 1.44 0.024 1.33 0.086 3.10 2.64 49.9 11.3 0.2% 
Wheat bushel 3.92 0.52 2.75 0.650 74.80 63.58 36.1 1,491.9 19.9% 
Soybeans bushel 5.80 0.44 5.00 0.360 52.01 44.21 34.1 542.7 7.2% 
Upland cotton pound 0.72 0.0667 0.52 0.1373 18.40 15.64 634 1,361.3 18.1% 
Rice cwt 10.50 2.35 6.50 1.650 4.48 3.81 51.28 322.4 4.3% 
Peanuts pound 0.2475 0.018 0.1775 0.052 1.51 1.29 2,993 200.3 2.7% 
           
  Total         7,515.4 100.0% 
           
2007           
           
Corn bushel 2.63 0.28 1.95 0.400 86.76 73.75 114.4 3,374.6 44.9% 
Sorghum bushel 2.57 0.35 1.95 0.270 11.80 10.03 58.2 157.6 2.1% 
Barley bushel 2.24 0.24 1.85 0.150 8.60 7.31 48.6 53.3 0.7% 
Oats bushel 1.44 0.024 1.33 0.086 3.10 2.64 49.8 11.3 0.2% 
Wheat bushel 3.92 0.52 2.75 0.650 74.80 63.58 36.1 1,491.9 19.9% 
Soybeans bushel 5.80 0.44 5.00 0.360 52.01 44.21 34.1 542.7 7.2% 
Upland cotton pound 0.72 0.0667 0.52 0.1373 18.40 15.64 634 1,361.3 18.1% 
Rice cwt 10.50 2.35 6.50 1.650 4.48 3.81 51.28 322.4 4.3% 
Peanuts pound 0.2475 0.018 0.1775 0.052 1.51 1.29 2,993 200.3 2.7% 
           
  Total         7,515.4 100.0% 
           
           
            
  TN/AG/26 
Page 50   A B C D = A-B-C E F = 0.85*E G H = D*F*G  
 Unit Target price Direct Loan rate Maximum Crop base Payment Payment Payment Percent 
   Payment rate  payment rate  Acres 
 yield  of Total 
   $ per unit  $ per unit  $ per unit  $ per unit mil acres mil acres unit per acre $mil  
Average           
2002-07            
           
Corn bushel        3,224.2 44.2% 
Sorghum bushel        147.4 2.0% 
Barley bushel        46.7 0.6% 
Oats bushel        8.7 0.1% 
Wheat bushel        1,421.5 19.5% 
Soybeans bushel        550.3 7.5% 
Upland cotton pound        1,376.5 18.9% 
Rice cwt        323.1 4.4% 
Peanuts pound        200.9 2.8% 
           
  Total         7,299.2 100.0% 
 
  TN/AG/26 
 Page 51 
 
 
   
ANNEX B 
 
ANNEX 2 OF THE AGREEMENT ON AGRICULTURE SHALL BE AMENDED AS FOLLOWS : 
Government Service Programmes 
General services (paragraph 2) Add the following subparagraph (h) to the existing paragraph 2: 
(h) policies and services related to farmer  settlement, land reform programmes, 
rural development and rural livelihood secu rity in developing country Members, 
such as provision of infrastructural services, land rehabilitation, soil 
conservation and resource management, drought management and flood 
control, rural employment programmes, nutritional food security, issuance of property titles and settlement programmes, to promote rural development and poverty alleviation. 
Public stockholding for food security purposes 
Modify the existing footnote 5 as follows: 
  For the purposes of paragraph 3 of this Annex, governmental stockholding 
programmes for food security purposes in de veloping countries whose operation is 
transparent and conducted in accordance with officially published objective criteria or 
guidelines shall be considered to be in conformity with the provisions of this 
paragraph, including programmes under which stocks of foodstuffs for food security 
purposes are acquired and released at administ ered prices, provided that the difference 
between the acquisition price and the external  reference price is accounted for in the 
AMS. However, acquisition of stocks of foodstuffs by developing country 
Members with the objective of supporting low-income or resource-poor 
producers shall not be required to be accounted for in the AMS. 
Modify the existing footnote 5 and 6 as follows: 
For the purposes of paragraphs 3 and 4 of this Annex, the acquisition of foodstuffs at 
subsidised prices when procured genera lly from low-income or resource-poor 
producers in developing countries with the objective of fighting hunger and 
rural poverty, as well as  the provision of foodstuffs at subsidised prices with the 
objective of meeting food requirements of  urban and rural poor in developing 
countries on a regular basis at reasonable prices shall be considered to be in 
conformity with the provisions of this pa ragraph. This is understood to mean, inter 
alia, that where such programmes referred to in this footnote and paragraph 4 above, 
including those in relation to lowering pri ces to more reasonable levels, involve also 
the arrangements referred to in footnote 5 to  paragraph 4, there is no requirement for 
the difference between the acquisition price and the external reference price to be 
accounted for in the AMS. 
Decoupled income support (paragraph 6) 
Modify the existing subparagraph (a) as follows: TN/AG/26 
Page 52  
 
  (a) Eligibility for such payments shall be determ ined by clearly-defined criteria such as income, 
status as a producer or landowner, factor use or production level in a defined , fixed and unchanging 
historical  base period  which shall be notified to the Committee on Agriculture. Transfer of 
entitlements to existing decoupled income support between producers or landowners shall not 
be precluded .  An exceptional update is not precluded , provided that producer expectations and 
production decisions are unaffected, in particular  due to (a) ensuring  that any updated base 
period is not only a significant number of years in the past
1 but is also determined and 
promulgated by the administering authority in such a way that the updated base concerned could not have been reasonably anticipated by producers such that their production decisions 
could be materially altered, (b) that such updating  is not made in conjunction with, or otherwise 
amounts de facto  to, a decision to increase the uniform unitary rate per crop
2 and (c) that this 
updating shall not, in itself or otherwise by reason of its introduction, have the effect, directly or 
indirectly, of circumventing the obligations reg arding domestic support measures and price 
support to producers pursuant to paragraph 1.  
Members which have not previously made use of this type of payment and thus have not 
notified and which cannot establish a historical ba se period because of a lack of data shall not 
be precluded from establishing an appropriate ba se period which, provided that it is not based 
on any future factor use or production, need not be based on a pre-existing determinate 
historical record, but which shall be fixed and unchanging and shall be notified
3. This is without 
prejudice to the possibility for Members to establish appropriat e base periods for substantially 
different decoupled income support in accordan ce with the conditions laid down in this 
paragraph.   
  
 
Payments (made either directly or by way of go vernment financial participation in crop insurance 
schemes) for relief from natural disasters (paragraph 8) 
Modify the existing subparagraphs (a), (b) and (d) as follows: 
(a) Eligibility for such payments shall arise : 
(i) In the case of direct payments related to disasters  only following a formal 
recognition by government authorities that a natural or like disaster (including disease outbreaks, pest infestations, nuclear accidents, and war on the territory of the Member 
                                                     
 
1 Where a Member has, at the time of entry into force of this Agreement, more than one type of 
direct payments within the same system of d ecoupled income support, it shall be possible to 
decide, within a period of no more than five y ears from the date of entry into force of this 
Agreement, to move from one to another type of dir ect payments for all or part of the territory of 
that Member, including the use of a changed base period.  This decision shall be taken once and 
for all for each part of the territory of the Me mber concerned.  Where a Member intends to 
exercise this possibility, it shall notify its d ecision to the Committee on Agriculture within 180 
days of the entry into force of this Agreement. 
 
2 This shall mean the rate used to calculate the support per recipient on the basis of criteria such as 
area or yields. 
 
3 Developing country Members may not have the capacity to fully assess the impact of innovation 
in their agricultural policies. Acco rdingly, the base period of a time-limited experimental or pilot 
programme may not be taken as the fixed and unchanging base period for the purposes of this 
paragraph 
  TN/AG/26 
 Page 53 
 
 
  concerned) has occurred or is occurring;  and shall be determined by a production 
loss8 which exceeds 30 per cent of the average of production in the preceding five-
year period or a three-year average based on the preceding five-year period, excluding the highest and the lowest entry.   In the case of developing country 
Members, payments for relief from natural disasters may be provided to 
producers when the production loss is less than 30 per cent of the average of 
production in the preceding five-year period or a three-year average based on the preceding five-year period.  
(ii) In the case of government financia l participation in crop or production 
insurance schemes, eligibility for such payments shall be determined by a 
production loss which exceeds 30 per cent of the average production in a period 
demonstrated to be actuarially appropriat e.  In the case of a developing country 
Member's government's financial particip ation in crop or production insurance 
schemes, eligibility for payments may be provided to producers when the production loss is less than 30 per cent of the average of production in the 
preceding five-year period or a three-year average based on the preceding five-
year period. 
(iii) In the case of the destruction of animals or crops to control or prevent pests, 
diseases, disease-carrying organisms or  disease-causing organisms named in 
national legislation or international st andards, the production loss may be less 
than 30 per cent of the average of production referred to in paragraph 8(a)(i) or 
8(a)(ii), as applicable. 
(b) Payments made under this paragraph  shall be applied only in respect of losses of 
income, crops, livestock (including payments in connection with the veterinary 
treatment of animals), land or other production factors due to the natural disaster or 
destruction of animals or crops  in question. 
(d) Payments made under this paragraph  shall not exceed the level required to prevent 
or alleviate further loss as defined in criterion (b) above. 
  8  Developing country Members may det ermine the production loss of the 
affected sector(s) or region(s) on an aggregate basis.  
 
Structural adjustment assistance provided  through investment aids (paragraph 11) 
Modify the existing subparagraph (b) as follows: 
(b) The amount of such payments in any given year shall not be related to, or based on, the type 
or volume of production (including livestock units) undertaken by the producer in any year after the base period other than as provided for under criterion (e) below. .   The base period 
shall be a defined, fixed and unchanging historical base period which shall be notified to 
the Committee on Agriculture. Transfer of en titlements to existing decoupled income 
support between producers or la ndowners shall not be precluded . 
   An exceptional update is not precluded , provided that producer expectations and 
production decisions are unaffected, in particular due to (a) ensuring  that any updated 
base period is not only a significant number of years in the past
4 but is also determined 
                                                      
4 Where a Member has, at the time of entry into force of this Agreement, more than one type of 
direct payments within the same system of d ecoupled income support, it shall be possible to 
decide, within a period of no more than five y ears from the date of entry into force of this TN/AG/26 
Page 54  
 
  and promulgated by the administering authority in such a way that the updated base 
concerned could not have been reasonably an ticipated by producers such that their 
production decisions could be materially alt ered, (b) that such updating is not made in 
conjunction with, or otherwise amounts de facto  to, a decision to increase the uniform 
unitary rate per crop
5 and (c) that this updating shall no t, in itself or otherwise by reason 
of its introduction, have the effect, directly or indirectly, of circumventing the obligations 
regarding domestic support measures and price support to producers pursuant to 
paragraph 1. 
  Members which have not previously made use of this type of payment and thus have not 
notified and which cannot establish a historical  base period because of a lack of data 
shall not be precluded from establishing an appropriate base period which, provided that it is not based on any future factor use or production, need not be based on a pre-existing determinate historical record, but wh ich shall be fixed and unchanging and shall 
be notified
6. This is without prejudice to the possibility for Members to establish 
appropriate base periods for substantially  different decoupled income support in 
accordance with the conditions laid down in this paragraph.   
 Payments under regional assistance programmes(paragraph 13) 
Modify the existing subparagraphs (a), (b) and (f) as follows: 
(a) Eligibility for such payments shall be li mited to producers in disadvantaged regions.  
Each such region must be a clearly designated contiguous geographical area with a 
definable economic and administrative iden tity, considered as disadvantaged on the 
basis of neutral and objective criteria clearly spelt out in law or regulation and indicating that the region's difficulties arise out of more than temporary circumstances.  Developing country Members shall be exempted from the 
condition that a disadvantaged region mu st be a contiguous geographical area. 
                                                                                                                                                                    
 
Agreement, to move from one to another type of dir ect payments for all or part of the territory of 
that Member, including the use of a changed base period.  This decision shall be taken once and 
for all for each part of the territory of the Me mber concerned.  Where a Member intends to 
exercise this possibility, it shall notify its d ecision to the Committee on Agriculture within 180 
days of the entry into force of this Agreement. 
 
5 This shall mean the rate used to calculate the support per recipient on the basis of criteria such as 
area or yields. 
 
6 Developing country Members may not have the capacity to fully assess the impact of innovation 
in their agricultural policies. Acco rdingly, the base period of a time-limited experimental or pilot 
programme may not be taken as the fixed and unchanging base period for the purposes of this 
paragraph 
  TN/AG/26 
 Page 55 
 
 
  (b) The amount of such payments in any given year shall not be related to, or based on, 
the type or volume of production (including livestock units) undertaken by the producer in any year after the base period other than to reduce that production.  The 
base period shall be a defined, fixed and unchanging historical base period 
which shall be notified to the Co mmittee on Agriculture. Transfer of 
entitlements to existing decoupled income support between producers or 
landowners shall not be precluded . 
    An exceptional update is not precluded , provided that producer expectations 
and production decisions are unaffected, in particular due to (a) ensuring  that 
any updated base period is not only a significant number of years in the past
7 but 
is also determined and promulgated by the administering authority in such a 
way that the updated base concerned could not have been reasonably anticipated 
by producers such that their production  decisions could be materially altered, 
(b) that such updating is not made in conjunction with, or otherwise amounts de 
facto  to, a decision to increase the uniform unitary rate per crop8 and (c) that 
this updating shall not, in itself or otherw ise by reason of its introduction, have 
the effect, directly or indirectly, of circumventing the obligations regarding domestic support measures and pri ce support to producers pursuant to 
paragraph 1. 
   Members which have not previously made  use of this type of payment and thus 
have not notified and which cannot establis h a historical base period because of 
                                                     
 
7 Where a Member has, at the time of entry into force of this Agreement, more than one type of 
direct payments within the same system of d ecoupled income support, it shall be possible to 
decide, within a period of no more than five y ears from the date of entry into force of this 
Agreement, to move from one to another type of dir ect payments for all or part of the territory of 
that Member, including the use of a changed base period.  This decision shall be taken once and 
for all for each part of the territory of the Me mber concerned.  Where a Member intends to 
exercise this possibility, it shall notify its d ecision to the Committee on Agriculture within 180 
days of the entry into force of this Agreement. 
 
8 This shall mean the rate used to calculate the support per recipient on the basis of criteria such as 
area or yields. 
 TN/AG/26 
Page 56  
 
  a lack of data shall not be precluded from establishing an appropriate base 
period which, provided that it is not based on any future factor use or production, need not be based on a pre-existing determinate historical record, but which shall be fixed and unchanging and shall be notified
9. This is without 
prejudice to the possibility for Members to establish appropriate base periods 
for substantially different decoupled in come support in accordance with the 
conditions laid down in this paragraph. 
   
(f) The payments shall be limited to the extra costs or loss of income involved in 
undertaking agricultural production (including livestock production)  in the 
prescribed area. 
  
                                                      
9 Developing country Members may not have the cap acity to fully assess the impact of innovation 
in their agricultural policies. Acco rdingly, the base period of a time-limited experimental or pilot 
programme may not be taken as the fixed and unchanging base period for the purposes of this 
paragraph 
  TN/AG/26 
 Page 57 
 
 
  ANNEX C 
Basis for the calculation of tariff quota expansion 
 
1. Where, for any product1, a Member wishes to designate only a certain number of tariff lines 
within that product as Sensitive, it is free to do so  (provided the total number of tariff lines remains 
within the defined numerical limit on tariff lines that  may be declared Sensitive).  In such cases the 
method set out in Attachment Ai shall apply.2  
2. For each product in its entirety as specified in Attachment Ai there shall be a floor minimum 
access of at least 2 per cent of domestic consumption of that product category. 
3. Where there are separate tariff lines for in- quota and out-of-quota trade, they shall be 
combined and treated as one tariff line under this approach. 
4. Where there are separate tariff lines that do not  reflect material differences in essential 
product characteristics (e.g. reflecting superficial di fferences such as packaging; end use requirements 
such as distinguishing personal use from other uses; or  other administrative distinctions) they shall be 
combined and treated as one tariff line under this approach. 
5. Imports for re-export (including where the obligati on to re-export is in a processed form) shall 
not be counted as "imports" under that tariff line under this approach. 
6. Under whichever of these approaches is selected: 
(a) The resultant calculations shall have been made available to all Members with a 
sufficient period for them to have reviewed and verified them so that, at the time of 
the adoption of these Modalities, Members shall be in a position to know precisely 
what the actual volume of tariff quota expansion shall be at a tariff line level, should a 
product be subsequently declared as Sensitive.   The results of these calculations, as 
reflected in the templates and attachments, are an integral part of these modalities.  
As such, only products in respect of whic h the agreed calculations are annexed shall 
be eligible for Sensitive Product treatment and, where such a product is in fact 
selected subsequently as sensitive at the scheduling stage, the results of these 
calculations shall be, for whatever product is  concerned, applicable without variation. 
(b) Existing scheduled tariff lines shall be the b asis for all calculations.  There shall be no 
sub-categorization of tariff lines beyond existing scheduled commitments. 
(c) The base period shall be the most recent pe riod for which data is available, i.e. 2003-
05 unless this would be, for some particular product, a manifestly unrepresentative 
period due to exceptional circumstances. 
7. For any given product category, the provisions of  the Attachment on this matter shall apply as 
regards sub-allocation of tariff quotas. 
                                                      
1 For the purpose of these modalities, these products are those specified and delimited in Attachment Ai 
[except that this attachment shall be adjusted further to  meet the requirements of Members, particularly developing 
country Members, which have not yet had sufficient opportunity to have their requirements taken into account in the finalisation of this list, and is without prejudice to the c overage of tropical products which remains to be finalised]. 
2 Domestic consumption data for each product categor y and all tariff lines within each product category 
have been provided based on Attachment Ai and can be found on the WTO Members' website.  A Member may declare as a Sensitive Product only tariff lines for which domestic consumption data has been provided and 
posted on the website as of  31 Decem ber2008 and tariff quota expansion for these pr oducts shall be based on 
these data.  TN/AG/26 
Page 58  
 
  8. New tariff quota volumes arising from this negotia tion shall be bound in part I-B of Members' 
Schedules of concessions erga omnes  on a most favoured nation basis.  
  TN/AG/26 
 Page 59 
 
 
  ANNEX D  
 
TARIFF ESCALATION LIST  
 
Vegetables  
 
 
Fruits and Nuts  
 
Primary product Processed product 
0801.11 - Coconuts, dessicated 
0801.19 - Coconuts, excluding dessicated 1513.11 - Crude coconut oil  
 
1513.19 - Other coconut oil  
 2306.50 - Oilcake and other solid residues of coconut 
 
2308 - Vegetable materials and vegetable waste
* 
 
0805.50 – Lemons 2007.91 - Citrus fruit preparations; Jams, fruit jellies, 
marmalades, fruit or nut pur ee, and fruit or nut pastes, 
obtained by cooking, whether or not containing added sugar or other sweetening matter.* 
2009.31 - Juice of any other citrus fruit (other than orange 
or grapefruit); of a Brix value lower or similar to 20).*
 
0808.20 – Pears and quinces, fresh 2008.40 – Pears, Otherwise prepared or preserved. 
  Primary product Processed product 
0702.00 – Tomatoes, fresh or chilled 2002.10 – Tomatoes, whole or in pieces, prepared or 
preserved otherwise than by vinegar or acetic acid. 
 
2002.90 – Tomatoes, prepared or preserved otherwise than 
by vinegar or acetic acid. 
 
2009.50 – Tomato juice, unfermented and not containing 
added sugar or other sweetening matter. 
 
2103.20 - Tomato ketchup and sauce 
0707.00 Cucumbers and gherkins, fresh or chilled 0711 .40 - Cucumbers and gherkins provisionally preserved 
 
2001.10 - Cucumbers and gherki ns prepared or preserved 
by vinegar or acetic acid 
 
0709.60 - Fruits of the genus Capsicum or genus 
Pimenta 0904.20 - Fruits of the genus Capsicum or genus Pimenta, 
dried or ground 
 
0714.10 – Cassava 1108.14 - Cassava starch 
 TN/AG/26 
Page 60  
 
  Primary product Processed product 
2009.80 - Juice of any single fruit  or vegetable (other than 
juice of any single citrus fruit, pineapple, tomato, grape, or apple) unfermented and not containing added spirit, 
whether or not containing added sugar or other sweetening 
matter*
 
0809.10 – Apricots, fresh 2008.50 – Apricots, Otherwise prepared or preserved. 
0809.20 - Cherries, fresh 0812.10 - Cherries, provisionally preserved. 
 
2008.60 - Cherries, otherwise prepared or preserved. 
0809.30 – Peaches, includin g nectarines, fresh 2008.70 – Peaches in cluding nectarines, otherwise prepared 
or preserved. 
0809.40 - Plums 0813.20 - Prunes, dried 
 
Coffee  
 
Primary product Processed product 
0901.11 - Coffee, not roasted: Not decaffeinated 0901 .12 – Coffee, not roas ted, decaffeinated 
 0901.12 – Coffee, not ro asted, decaffeinated 
 
0901.21 - Coffee,  roasted: Not decaffeinated 
 
0901.22 - Coffee, roas ted: Decaffeinated 
 0901.90 - Other (Coffee husks and skins, coffee substitutes 
containing coffee) 
 2101.11 - Extracts, esse nces and concentrates* 
 
2101.12 - Preparations with a basis of extracts, essences or concentrates or with a basis of coffee 
 
Spices  
 
Primary product Processed product 
0910.10 - Ginger 2006.00 - Other fruits, vegetables and nuts, preserved by 
sugar  
2008.99 - Other fruits and edible parts of the plant, prepared 
or preserved* 
 
Oilseeds  
 
Primary product Processed product 
12.01 - Soya Beans, whether or not broken 1208.10 - Flours and meals of soya bean 
 
1507.10 - Crude oil, whether or not degummed, of soya bean oil and its fractions, not chemically modified. 
 
1507.90 – Refined oil of soybeans and its fractions, but not chemically modified. 
 
23.04 - Oil cakes of soybeans  TN/AG/26 
 Page 61 
 
 
  Primary product Processed product 
1202.10 - Ground-nuts, in shell, not roasted or 
otherwise cooked 1202.20 - Ground-nuts, shelled, whether or not broken, not 
roasted or otherwise cooked  
1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybeans or mustard* 
 
1508.10 - Crude Ground-nut oil , not chemically modified  
1508.90 - Refined Ground-nut oil, not chemically modified 
 2008.11 – Ground nuts, otherwise prepared or preserved, 
whether or not containing added sugar or other sweetening 
matter or spirit, not elsewhere specified or included.  
23.05 - Oilseed cake of ground nuts 
1205.10 - Low erucic acid rape or colza seeds, 
whether or not broken 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybean or mustard*  
1514.11 - Low erucic acid rape  or colza oil, crude, not 
chemically modified.  
1514.19 - Low erucic acid rape or colza oil, refined, not 
chemically modified.  
2306.41 - Of low erucic acid rape or colza seed 
1205.90 - Rape or colza seeds, whether or not 
broken 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybean or mustard* 
 
1514.91 - Crude rape, colza or mustard oil and fractions thereof, not chemically modified. 
 
1514.99 - Refined rape, colza or mustard oil and fractions thereof, not chemical ly modified, Other 
12.06 - Sunflower seeds, whether or not broken 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybean or mustard* 
 1512.11 - Crude sunflower-seed or safflower oil and 
fractions thereof, not chemically modified. 
 1512.19 - Refined sunflower-seed or safflower oil and 
fractions thereof, not chemically modified. 
 2306.30 - Oilseed cake of sunflower seeds 
1207.60 - Safflower seeds 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybeans or mustard* 
 
1512.11 - Crude sunflower-seed or safflower oil and 
fractions thereof, not chemically modified.    
1512.19 - Refined sunflower-seed or safflower oil and 
fractions thereof, not chemically modified. 
1207.10 – Palm nuts and kernels, whether or not broken 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybean or mustard* 
 
1511.10 - Crude palm oil and its refractions, not chemically modified oil TN/AG/26 
Page 62  
 
  Primary product Processed product 
 
1511.90 – Refined palm oil and its refractions, not chemically modified Other 
 
2306.60 - Oilseed cake of palm nuts or kernels 
1207.20 - Cotton seeds, whether or not broken 1208.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybeans or mustard* 
 1512.21 - Crude cotton-seed oil and its fractions, whether or 
not gossypol has been removed, not chemically modified 
 1512.29 - Refined cotton-seed oil and its fractions, not 
chemically modified 
 1521 - Vegetable waxes (of cotton) 
 
2306.10 - Oilseed ca ke of cotton seeds 
1207.40 - Sesamum seeds 12.08.90 – Flours and Meals of Oilseeds or oleaginous 
fruits, other than those of soybeans or mustard* 
 
1515.50 - Sesame oil and its fractions  
2306.90 - Oilseed cake, not otherwise specified* 
 
Cocoa  
 
Primary product Processed product 
1801.00 – Cocoa beans, whole or broken, raw or 
roasted 1802.00 - Cocoa shells, husks, skins and other cocoa waste 
 
1803.10 – Cocoa paste, not defatted 
 1803.20 – Cocoa paste, wholly or partly defatted 
 
1804.00 – Cocoa butter, fat and oil  
1805.00 – Cocoa powder, not containing added sugar or 
other sweetening matter 
 
1806.10 - Cocoa powder, containing added sugar or other sweetening matter 
 
1806.20 - Chocolate, containing cocoa, in bloks, slabs or bars >2 kg 
 
1806.31 - Chocolate in blocks, slabs or bars, filled  
1806.32 - Other, in blocks, slabs or bars, not filled 
 1806.90 - Other food preparations containing cocoa 
 
 
 
    TN/AG/26 
 Page 63 
 
 
  Cereals  
 
Primary product Processed product 
1001.10 – Durum Wheat 11.01   - Wheat or meslin flour* 
1103.11 - Groats and meal, of wheat* 
1103.20 – Pellets* 
1108.11 - Wheat starch 
11.09   - Wheat gluten, whether or not dried 
1902.11 - Pasta, containing eggs 1902.19 - Other pasta, not stuffed, cooked or otherwise 
prepared (other than those containing egg) 
1902.20 - Stuffed pasta, whether or not cooked or otherwise prepared 
1902.30 - Other pasta 
1905.20 - Gingerbread 1905.31 - Sweet biscuits 
1905.32 - Waffles and wafers 
1001.90 – Wheat Other 11.01 – Wheat or meslin flour* 
1103.11 – Groats and meal, of wheat* 1103.20 – Pellets* 
1103.11 – Wheat starch 
11.09 – Wheat gluten, whether or not dried 1905.20 - Gingerbread 
1905.31 - Sweet biscuits 
1905.32 - Waffles and wafers 
10.03  - Barley 1103.19 Groats and meal, of other cereals* 
1103.20 Pellets* 
1104.19 - Rolled or flaked grains, of other cereals* 
1104.29 - Other worked grains, of other cereals* 
1107.10 - Malt, not roasted 
1107.20 - Malt, roasted 1901.90 - Malt extract and food prep of flour groats, meal 
or starch,  other than for infant preparations, other than for 
use in mixes and doughs 
10.04 - Oats 10.06  - Germ of cereals, whole, rolled, flaked or ground, or 
otherwise worked, except rice of heading 
1103.19 Groats and meal, of other cereals* 
1103.20 Pellets* 1104.12 - Rolled or flaked grains: Of oats 
1104.22 - Other worked grains: Of oats 
1005.90 - Maize (corn), other than seed 1102.20 - Maize (corn) flour 
1103.13 - Cereal grouts and meal of corn 1108.12 - Corn starch 
1515.29 - Other fixed maize oil other than not refined, but 
not chemically modified   1901.10 - Preparations for infant  use, put up for retail sale* 
1901.20 - Mixes and doughs for the preparation of bakers' 
wares of heading 19.05* 
1904.10 - Prepared foods obtained from the swelling or 
roasting of cereals or cereal products* 1905.90  Other* 
2005.80 - Sweet corn, prepared or preserved, other than by 
vinegar or acetic acid, not frozen TN/AG/26 
Page 64  
 
  Primary product Processed product 
1006.10 - Rice in husk (paddy or rough)   1006.20 Husked (brown) rice  
1006.30 Semi-milled or wholly milled rice, whether or not polished or glazed 
1006.40 - Broken rice 
1102.30 - Rice flour 
1103.19 - Groats, meal and pellets, of other cereals* 
1904.20 - Prepared foods obtained from the unroasted cereal flakes or from mixtur es of unroasted and roasted 
cereal flakes or swelled cereals* 
2302.20 Bran, sharps and other residues of rice 
10.07 - Sorghum 1904.10 - Prepared foods obtained by the swelling or 
roasting of cereals or cereal products* 
1904.20 - Prepared foods obtained from the unroasted 
cereal flakes or from mixtur es of unroasted and roasted 
cereal flakes or swelled cereals* 
 
 
 *In cases where the HS heading can be associated  with more than one prim ary product, the tariff 
escalation modality would only apply if a Member ha s scheduled the processed product at the product 
specific level  TN/AG/26 
 Page 65 
 
 
  ANNEX E 
 
 
TARIFF QUOTA UNDERFILL MECHANISM 
 
 
1. During the first monitoring year, where an im porting Member does not notify the fill rate, or 
where the fill rate is below 65 per cent , a Member may raise a specific concern regarding a tariff quota 
commitment in the Committee on Agriculture and pla ce this concern on a tracking register maintained 
by the Secretariat. The importing Member shall discuss the administration of the tariff quota with all interested Members, with the aim of understanding the concerns raised, improving the membership's 
understanding of the market circumstances
1 and of the manner in which the tariff quota is 
administered and whether elements of the administra tion contribute to underfill. This shall take place 
on the basis of provision of objective and relevant da ta bearing on the matter, in particular as regards 
the market circumstances. The interested Members shall fully consider all documentation submitted by 
the importing Member2. The importing Member shall provide to  the Committee on Agriculture a summary 
of any documentation submitted to interested Members. The Members involved shall advise the Committee on Agriculture whether the matter has been resolved. The interested Members shall, if the 
matter remains unresolved, provide to the Committee on Agriculture, a clear statement of the reasons, 
based on the discussions and documentation provided, why the matter requires further consideration.  Such 
documentation and information may also be provided and considered in the same manner during the second and third stages of the underfill mechanism, as a means of addressing and resolving Members’ 
concerns.      
2. 
Once the underfill mechanism has been initia ted, where the fill rate remains below 65 per cent  
for two consecutive years, or no notification has been submitted for that period, a Member may 
request, through the Committee on Agriculture, that  the importing Member take specific action(s)3 to 
modify the administration of the tariff quota concerne d.  The importing Member shall take either the 
specific action(s) requested or, drawing on the di scussions previously held with the interested 
Members, such other action(s) which it considers w ill effectively improve the fill rate of the tariff 
quota. If the action(s) of the importing Member lead to a fill rate above 65 per cent or interested 
Members are otherwise satisfied that lesser fill rates are indeed attributable to market circumstances 
based on the data-based discussions that have taken pl ace, this will be noted and the concern marked 
"resolved" on the Secretariat's tracking register and will be no longer subject to monitoring (unless at 
some future point the process is restarted but, if so , it will be a new three year cycle).  If the fill rate 
remains below 65 per cent , a Member may continue to request additional modifications to the 
administration of the tariff quota.  
3. During the third and subsequent monitoring years, where: 
(a) the fill rate has remained below 65 per cent for three consecutive years or no 
notification has been submitted for that period; and 
                                                      
1 The market circumstances considered may include, inter alia, elements of prices, production and other 
factors affecting demand and supply in the domestic and in ternational markets, as well as other relevant factors 
affecting trade such as the existence of SPS measures  taken by an importing Memb er in accordance with the 
Agreement on Sanitary and Phytosanitary Measures 
2 Such documentation may include information on the administration of the tariff quota, as well as  data 
supporting the Member’s explanation of  the market circumstances of the ta riff quota in question and/or of the 
existence of any SPS measures for the product in question. 
3 The actions and remedies taken by the importing Member pursuant to the underfill mechanism shall not 
modify or impede the rights of a Member holding a country-specific allocation for that tariff quota with respect to their country-specific allocation. TN/AG/26 
Page 66  
 
  (b) the fill rate has not increased, for each of the preceding three years , by annual 
increments of  
(i) at least 8 percentage points when the fill rate is more than 40 per cent   
(ii) at least 12 percentage points when the f ill rate equals or is  less than 40 per 
cent;
4 and 
(c) the data-based discussions regarding market  circumstances have not led to the 
conclusion among all interested parties these are in fact the reason for underfill; and 
(d) an interested Member makes a statement in the Committee on Agriculture,  that it 
wishes to initiate the final st age of the underfill mechanism.  
4. The importing Member shall then promptly provide unencumbered access via one of the 
following tariff quota administration methods5: a first-come, first-served only basis (at the border); or 
an automatic, unconditional license on demand system within the tariff quota .  In taking a decision on 
which of these two options to implement, the importing Member will consult with interested 
exporting Members.  The method selected shall be maintained by the importing Member for a minimum of two years, after which time – provided that timely notifications for the two years have 
been submitted – it will be noted on the Secret ariat's tracking register and the concern marked 
"closed".  Developing country Members may choose an alternative tariff quota administration method 
or maintain the current method in place.  This choice of an alternative tariff quota administration 
method shall be notified to the Committee on Agricu lture under the provisions of this mechanism.  
The method selected shall be maintained by the im porting Member for a minimum of two years, after 
which time, if the fill rate has increased by two-thir ds of the annual increments described in paragraph 
3(b), it will be noted on the Secretariat's track ing register and the concern marked "closed". 
5. The availability of this mechanism and resort  to it by any Member is without prejudice to 
Members’ rights and obligations under the covered Ag reements in respect of any matter dealt with 
under the mechanism and, in the event of any confli ct, the provisions of the covered agreements shall 
prevail. 
 
                                                     
 
4 If the fill rate in any year increases beyond the le vel specified in 3b ii) the annual increment shall be 
the one specified in 3b i)  in the following year.  
5 The actions and remedies taken by the importing Member shall not modify or impede the rights of a 
Member holding a country-specific allocation for that tariff  quota with respect to their country-specific allocation. 
  TN/AG/26 
 Page 67 
 
 
  ANNEX F 
 
ILLUSTRATIVE LIST OF INDICATORS FOR THE 
DESIGNATION OF SPECIAL PRODUCTS 
  
1. The product is a staple food, or is a part of the basic food basket of the developing country 
Member through, inter alia , laws and regulations, including administrative guidelines or 
national development plan or policy or hist orical usage, or the product contributes 
significantly to the nutritional or caloric intake of the population. 
 
2. A significant proportion of the domestic c onsumption of the product in its natural, 
unprocessed or processed form, in a particular re gion or at a national level, is met through 
domestic production in the developi ng country Member concerned. 
 
3. Domestic consumption of the product in the developing country Member is significant in 
relation to total world exports of that product; or a significant proportion of total world exports of the product are accounted fo r by the largest exporting country. 
 
4. A significant proportion of the total domestic production of the product in a particular region 
or at the national level is produced on farm s or operational land holdings of up to and 
including 10 hectares, or is produced on farm or operational land holdings which are of a size 
equal to or less than the average farm size of the developing country Member concerned, or a 
significant proportion of the farms or operati onal land holdings producing the product are up 
to and including 10 hectares in size or of the average farm size or less of the developing country Member concerned. 
 
5. A significant proportion of the total agricultural population or rural labour force, in a 
particular region or at the national level, is  employed in the production of the product. 
 6. A significant proportion of the producers of the product, in a particular region or at the 
national level, are low income, resource poor, or  subsistence farmers, including disadvantaged 
or vulnerable communities and women or a si gnificant proportion of the domestic production 
of the product is produced in disa dvantaged regions and areas including, inter alia,  drought-
prone or hilly or mountainous regions. 
 7. A significant proportion of the total value of ag ricultural production or agricultural income of 
households, in a particular region or at the na tional level, is derived from the production of 
the product. 
8. A relatively low proportion of the product is  processed in the developing country Member as 
compared to the world average; or the product contributes a relatively high proportion to value addition in the rural areas, in a particular  region or at the national level, through its 
linkages to non-farm rural economic activities, in cluding handicrafts and cottage industries or 
any other form of rural value addition. 
 9. A significant proportion of the agricultural cu stoms tariff revenue is derived from the product 
in a developing country Member. 
 
10. A significant proportion of the total food expendi ture, or of the total income, of households in 
a particular region or at the national level in  the developing country Member concerned, is 
spent on the product. 
 TN/AG/26 
Page 68  
 
  11. The product in respect of which product specific AMS or blue box support has been notified 
by any WTO Member and which has been exported by that notifying Member during any year from 1995 to the starting date of the implementation of Doha Round. 
 12. The productivity per worker or per hectare of the product in the developing country Member, 
in a particular region or at the national level,  is relatively low as compared to the average 
productivity in the world.  TN/AG/26 
 Page 69 
 
 
  ANNEX G* 
LIST OF TROPICAL AND ALTERNATIVE PRODUCTS 
 
5. HS96 6.  Description 
060240 Roses, grafted or not 
060290 Live plants, incl. their roots, and mushroom spawn 
060310 Cut flowers and flower buds for bouquets, etc., fresh 
060390 Cut flowers and flower buds for bouquets, dried, etc. 
060491 Foliage, branches, for bouquets, etc. – fresh 
060499 Foliage, branches, for bouque ts, etc. – except fresh 
070190 Potatoes, fresh or chilled except seed 
070310 Onions and shallots 
070960 Peppers (Capsicum, Pimenta) fresh or chilled 
070990 Vegetables, fresh or chilled nes 
071190 Other vegetables;  mixtures of vegetables 
071390 Other dried leguminous vegetables 
071410 Manioc (cassava), fresh or dried 
071420 Sweet potatoes 
071490 Arrowroot, salep, etc. fresh or dried and sago pith 
080111 Desiccated coconuts 
080119 Other coconuts 
080290 Nuts, fresh or dried, whether or not shelled or peeled 
080300 Bananas, including plantains, fresh or dried 
080420 Figs, fresh or dried 
080430 Pineapples, fresh or dried 
080440 Avocados, fresh or dried 
080450 Guavas, mangoes and mangosteens, fresh or dried 
080510 Oranges, fresh or dried 
080520 Mandarin, clementine & citrus hybrids, fresh or dried 
080530 Lemons and limes, fresh or dried 
080590 Other citrus fruit, fresh or dried 
080711 Watermelons, fresh 
080719 Melons, fresh 
080720 Fresh pawpaws "papayas" 
081090 Fresh tamarinds, passion fruit, carambola, pitahaya and other edible fruit 
081190 Fruits and nuts (uncooked, steamed, boiled) frozen 
081290 Fruit and nuts, provisionally preserved 
081340 Other fruit 
081350 Mixtures of nuts or dried fruits 
081400 Peel of citrus fruit or melons 
090112 Coffee, not roaste d, decaffeinated 
090121 Coffee, roasted, not decaffeinated 
090122 Coffee, roasted, decaffeinated 
090190 Coffee, other roasted 
090210 Tea, green (unfermented) in packages < 3 kg 
090412 Pepper, crushed or ground 
090420 Capsicum or Pimenta, dried, crushed or ground 
090700 Cloves (whole fruit, cloves and stems) 
091010 Ginger 
100610 Rice in the husk (paddy or rough) TN/AG/26 
Page 70  
 
  5. HS96 6.  Description 
100620 Husked (brown) rice 
100630 Semi-milled or wholly milled rice, whether or not polished or glazed 
100640 Broken rice 
110230 Rice flour 
110620 Flour, meal and powder of sago or of roots or tubers of heading 07.14 
110630 Flour, meal and powder of the dried leguminous vegetables  
110814 Manioc (cassava) starch 
120210 Ground-nuts in shell, not roasted or cooked 
120220 Ground-nuts, shelled, whether or not broken 
120890 Other flours and meals of oil seeds or oleaginous fruits 
121190 Plants & parts, pharmacy, perfume, insecticide use nes 
121210 Locust beans, locust seeds 
121299 Vegetable products nes for human consumption 
130219 Vegetable saps and extracts nes 
140190 Other vegetable materials 
150710 Crude soya-bean oil, and its fractions 
150790 Other soya-bean oil, and its fractions 
150810 Crude ground nut oil  
151110 Palm oil, crude 
151190 Palm oil or fractions simply refined 
151211 Crude sunflower-seed or safflower oil and fractions thereof 
151219 Other sunflower-seed or safflower oil and fractions thereof 
151311 Crude coconut (copra) oil and its fractions 
151319 Other coconut (copra) oil and its fractions 
151321 Crude palm kernel or babassu oil  
151329 Palm kernel or babassu oil and fractions thereof, other 
151410 Low erucic acid rape or colza oil, crude 
151490 Low erucic acid rape or colza oil, other 
151530 Castor oil and its fractions 
151550 Sesame oil or fractions not chemically modified 
151620 Veg fats, oils or fractions  hydrogenated, esterified 
151710 Margarine, excluding liquid margarine 
152190 Beeswax, other insect waxes and spermaceti 
170111 Raw sugar, cane 
170191 Containing added flavouring or colouring matter 
170199 Refined sugar, in solid form, nes, pure sucrose 
170310 Cane molasses 
180310 Cocoa paste, not defatted 
 180320 Cocoa paste, wholly or partly defatted 
180400 Cocoa butter, fat, oil 
180500 Cocoa powder, unsweetened 
180610 Cocoa powder, sweetened 
  1806201 Chocolate and other food preps containing cocoa > 2 kg 
180631 Chocolate, cocoa preps, block, slab, bar, filled, > 2kg 
180632 Chocolate, cocoa prep, block/slab/bar, not filled, > 2kg 
  1806902 Chocolate/cocoa food preparations  
                                                      
1 Excluding more disaggregated lines which have a majority of their ingredients which are not tropical 
or alternative products. 
2 Excluding more disaggregated lines which have a majority of their ingredients which are not tropical 
or alternative products.  TN/AG/26 
 Page 71 
 
 
  5. HS96 6.  Description 
200190 Veg, fruit, nuts nes prepared or preserved by vinegar 
200410 Potatoes, prepared, frozen 
200520 Potatoes, prepared or preserved, not frozen/vinegar 
200590 Veg nes, mixes, prepared/preserved, not frozen/vinegar 
200600 Fruits, nuts, fruit-peel, et c. preserved by sugar 
200710 Homogenized jams, jellies, etc. 
200791 Citrus based jams jellies marmalade, etc. 
200799 Jams, fruit jellies, purees and pastes, except citrus 
200811 Ground-nuts otherwise prepared or preserved 
200819 Nuts, seeds & mixes, otherwise prepared or preserved 
200820 Pineapples, otherwise prepared or preserved 
200830 Citrus fruits, otherwise prepared or preserved 
200870 Peaches, otherwise prepared or preserved 
200891 Palm hearts, otherwise prepared or preserved 
200892 Fruit mixtures, otherwise prepared or preserved 
200899 Fruit, edible plants nes otherwise prepared/preserved 
200911 Orange juice, frozen, no t fermented or spirited 
200919 Orange juice, not fermented, spirited, or frozen 
200920 Grapefruit juice, not fermented or spirited 
200930 Citrus juice nes (one fruit) not fermented or spirited 
200940 Pineapple juice, not fermented or spirited 
200980 Single fruit, veg juice nes, not fermented or spirited 
200990 Mixtures of juices not fermented or spirited 
210111 Coffee extracts, essence 
210112 Coffee prep. of extracts 
210120 Tea and mate extracts, essences and concentrates 
210390 Sauces nes, mixed condiments, mixed seasoning 
220720 Ethyl alcohol 
220840 Rum 
230610 Oil-cake and other solid re sidues, of cotton seeds 
230660 Of palm nuts or kernels 
240110 Tobacco, not stemmed/stripped 
240120 Tobacco, partly or w holly stemmed/stripped 
240130 Tobacco refuse 
240210 Cigars, cheroots and ciga rillos, containing tobacco 
240220 Cigarettes containing tobacco 
240290 Cigars, cheroots, cigarettes, with tobacco substitutes 
240310 Smoking tobacco, whether or not containing tobacco substitutes 
240391 "Homogenized" or "reconstituted" tobacco 
240399 Other manufactured tobacco 
330112 Essential oils of orange 
330113 Essential oils of lemon 
 
 
 TN/AG/26 
Page 72  
 
  INDICATIVE LIST OF TROPICAL PRODUCTS USED IN THE URUGUAY ROUND* 
 
 PRODUCT GROUPS AND SUB-GROUPS 4-DIGIT HS HEADINGS  
   
Group I: Tropical beverages  
(a) Unprocessed products 0901, 0902, 1801, 1802 
(b) Semi-processed and processed products 1803, 1804, 1805, 2101 
   
Group II: Spices, flowers and plan ts, plaiting products, etc.  
(a) Unprocessed products 0904-0910, 0602, 0603, 1211, 
1301, 1401, 1402, 1403, 1404 
(b) Semi-processed and processed products 1302, 1521, 3203, 3301, 4601, 
4602, 9601 
   
Group III: Certain oilseeds, vegetable oils and products thereof  
(a) Unprocessed products and residues from oil extraction 1202, 1203, 1207, 2305, 2306 
(b) Semi-processed and processed products 1208, 1508, 1511, 1513, 1515, 
1516, 1518, 1519, 1520 
   
Group IV: Tropical roots, rice and tobacco  
(a) Unprocessed products 0714, 1006, 2401 
(b) Semi-processed and processed products 1106, 1108, 1903, 2402 
   
Group V: Tropical nuts and fruits  
(a) Unprocessed products 0801, 0803, 0804, 0807 
(b) Semi-processed and processed products 2006, 2007, 2008 
   
Group VI: Rubber and tropical wood  
(a) Raw material 4001, 4403 
(b) Semi-manufactures 4005-4009, 4407-4410, 4412 
(c) Finished products 4011, 4013-4017, 4414, 4418-
4421, 9401, 9403 
   
Group VII: Jute and hard fibres  
(a) Raw material 5303, 5304, 5305 
(b) Semi-manufactures 5307, 5308, 5310, 5311 
(c) Finished products 5607, 5608, 5609, 5905, 6305 
  *The resolution of these lists remains under active negotiation at this point.  TN/AG/26 
 Page 73 
 
 
  ANNEX H 
 
INDICATIVE LIST OF PREF ERENCE EROSION PRODUCTS* 
 
 
Tariff Lines 
at HS 6 Product Description 
020130 Fresh or chilled bovine meat, boneless 
020230 Frozen, boneless meat of bovine animals 
020312 Fresh or chilled hams, shoulders and cuts thereof of swine, with bone in 
060310 Fresh cut flowers and flower buds, for bouquets or for ornamental purposes 
070200 Tomatoes, fresh or chilled 
070810 Fresh or chilled peas "Pisum sativum", shelled or unshelled 
070820 Fresh or chilled beans "Vigna spp., Ph aseolus spp.", shelled or unshelled 
070990 Fresh or chilled vegetables (excl. potatoes, tomatoes, vegetables of the Allium) 
071490 Roots and tubers of arrowroot, salep, Jerusalem artichokes and similar roots and tubers with 
high starch or inulin content, fr esh, chilled, frozen or dried, whether or not sliced or in the form 
of pellets and sago pith (excl. manioc "cassava") 
080290 Other nuts, fresh or dried, other 
080300 Bananas, incl. plantains, fresh or dried 
080430 Fresh or dried pineapples 
080440 Avocados 
080450 Fresh or dried guavas, mangoes and mangosteens 
080610 Fresh grapes 
080719 Fresh melons (excl. watermelons) 
080720 Fresh pawpaws "papayas" 
081090 Fresh tamarinds, cashew apples, jackfruit, lych ees, sapodillo plums, passion fruit, carambola, 
pitahaya and other edible fruit (excl. nuts, bananas, dates, figs, pineapples, avocadoes, guavas, 
mangoes, mangosteens, papaws "papayas", citrus fruit, grapes,  
081340 Dried peaches, pears, papaws "papayas", tamarind s and other edible fruits (excl. nuts, bananas, 
dates, figs, pineapples, avocadoes, guavas, mangoes, mangosteens, citrus fruit, grapes apricots, 
prunes and apples, unmixed) 
090121 Roasted coffee (excl. decaffeinated) 
090500 Vanilla 
090700 Cloves, whole fruit, cloves and stems 
100620 Husked or brown rice 
110313 Cereal groats meal and pellets; of maize 
121210 Locust beans, incl. locust bean seed, fresh, chilled, frozen or dried, whether or not ground 
150810 Crude ground-nut oil 
151190 Palm oil and its fractions, whether or not refined (excl. chemically modified and crude) 
151311 Crude coconut oil 
151321 Crude palm kernel and babassu oil 
151590 Fixed vegetable fats and oils and their fractions, whether or not refined, but not chemically 
modified (excl. soya-bean, ground-nut, olive, palm, sunflower-seed, safflower, cotton-seed, 
coconut, palm kernel, babassu, rape , colza and mustard, linseed, maize 
170111 Raw cane sugar (excl. added flavouring or colouring) 
170199 Cane or beet sugar and chemically pure sucrose, in solid form; other 
180310 Cocoa paste (excl. defatted) 
180400 Cocoa butter, fat and oil 
190590 Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; 
communion wafers, empty cachets of a kind suita ble for pharmaceutical use, sealing wafers, 
rice paper and similar products (excl. crispbread, gingerbread and the like 
200590 Preparation of vegetables, mixtures TN/AG/26 
Page 74  
 
  Tariff Lines 
at HS 6 Product Description 
200820 Pineapples, prepared or preserved, whether or not containing added sugar or other sweetening 
matter or spirit, n.e.s. 
200830 Citrus fruit, prepared or preserved, whether or not containing added sugar or other sweetening 
matter or spirit, n.e.s. 
200860 Cherries, prepared or preserved, whether or not containing added sugar or other sweetening 
matter or spirit (excl. preserved with sugar but no t laid in syrup, jams, fruit jellies, marmalades, 
fruit purée and pastes, obtained by cooking) 
200899 Fruits and nuts, other 
200911 Frozen orange juice, unfermented, whether or not containing added sugar or other sweetening 
matter or spirit, n.e.s. 
200939 Single citrus fruit juice, unfermented, Brix value > 20 at 20°C, whether or not containing added 
sugar or other sweetening matter 
200979 Apple juice, unfermented, Brix value > 20 at 20°C, whether or not containing added sugar or 
other sweetening matter (excl. containing spirit) 
200980 Juice of fruit or vegetables, unfermented, whether or not containing added sugar 
210320 Tomato ketchup 
210390 Sauces, other 
220710 Beverages, spirits and vinegar;  Undenatures ethyl alcohol 
220840 Rum and tafia 
220890 Ethyl alcohol of an alcoholic strength of < 80% vol, not denatured; spirits and other spirituous 
beverages (excl. compound alcoholic preparations of a kind used for the manufacture of 
beverages, spirits obtained by distilling grape wine or grape marc) 
230990 Preparations of a kind used in animal feeding (excl. dog or cat food put up for retail sale) 
240110 Tobacco, unstemmed/unstripped 
240120 Tobacco, partly or wholly stemmed/ stripped, otherwise unmanufactured 
240130 Tobacco refuse 
240210 Cigars, cheroots and ciga rillos containing tobacco 
 
 *The resolution of this list remains under active negotiation at this point. 
  TN/AG/26 
 Page 75 
 
 
  ANNEX I 
SMALL, VULNERABLE ECONOMIES 
 
 
1. The data are based on the methodology that was u sed to prepare a previous Secretariat paper 
on shares of WTO Members in world non-agricultural trade, 1999-2004 (TN/MA/S/18).  Individual 
Members' data were extracted from the United Na tions Comtrade database on 6 June 2007.  World 
export and import totals, excluding significant re-exports were taken from the Secretariat's 
International Trade Statistics Report 2006.  This time period has been updated to 2000-2005 and a 
c.i.f.-f.o.b. adjustment has been applied to worl d exports by commodity group to derive respective 
world imports, but this does not change the overall results.1  The country averages are calculated on 
the basis of the years for which data are available. 
2. A small, vulnerable economy is defined as one whose average share for the period 1999-2004 
(a) of world merchandise trade does not exceed 0.16  per cent and (b) of world NAMA trade does not 
exceed 0.10 per cent and (c) of world agricu ltural trade does not exceed 0.40 per cent. 
3. The attached table does not include those Me mbers that are defined as least-developed 
countries by the United Nations Economic and Social  Council and those Members for which no data 
are available. 
 
  
 
                                                      
1 C.i.f.-f.o.b. factors were estimated based on the ratio of imports to exports for a matched group of reporters 
in UN Comtrade.  World imports by commodity group were derived by applying these c.i.f.-f.o.b. factors to the 
WTO's world exports by commodity group and aligning the re sulting figures to the WTO's world total imports. Intra-
trade of the 25 EC member States was then subtracted from the totals.  
  TN/AG/26 
Page 76  
 Share of total merchandise trade 
(%) Share of world agriculture (AOA) 
trade (%)  Share of non-agriculture (NAMA) 
trade (%) 
WTO Member Total 
(exports + 
imports Exports Imports Total 
(exports + 
imports Exports Imports Total 
(exports + 
imports Exports Imports 
Worlda 100 100 100 100 100 100 100 100 100 
Albania 0.019 0.008 0.029 0.050 0.008 0.087 0.017 0.008 0.026 
Antigua and Barbuda 0.004 0.001 0.007 0.011 0.000 0.020 0.004 0.001 0.006 
Armenia 0.015 0.010 0.019 0.040 0.018 0.060 0.013 0.010 0.016 
Barbados 0.013 0.005 0.020 0.037 0.022 0.050 0.011 0.004 0.019 
Belize 0.006 0.004 0.008 0.023 0.029 0.017 0.004 0.001 0.007 
Bolivia 0.032 0.032 0.032 0.102 0.143 0.065 0.028 0.025 0.030 
Botswana 0.057 0.061 0.053 0.075 0.030 0.116 0.056 0.065 0.048 
Brunei Darussalam 0.050 0.078 0.025 0.029 0.000 0.056 0.053 0.086 0.023 
Cameroon 0.036 0.038 0.035 0.112 0.140 0.087 0.032 0.032 0.032 
Cuba 0.063 0.034 0.089 0.240 0.223 0.256 0.052 0.022 0.080 
Dominica 0.002 0.001 0.002 0.007 0.005 0.008 0.001 0.001 0.002 
Dominican Rep. 0.068 0.018 0.113 0.154 0.115 0.189 0.063 0.011 0.111 
Ecuador 0.110 0.112 0.108 0.326 0.515 0.154 0.098 0.087 0.107 
El Salvador 0.051 0.026 0.075 0.173 0.136 0.206 0.044 0.018 0.068 
Fiji 0.014 0.010 0.018 0.047 0.055 0.040 0.012 0.007 0.017 
FYR Macedonia 0.033 0.026 0.039 0.076 0.069 0.083 0.027 0.024 0.030 
Gabon 0.031 0.046 0.017 0.026 0.004 0.046 0.032 0.051 0.015 
Georgia 0.014 0.009 0.020 0.052 0.044 0.060 0.012 0.006 0.018 
Ghana 0.057 0.044 0.067 0.221 0.302 0.144 0.047 0.027 0.063 
Grenada 0.003 0.001 0.004 0.009 0.006 0.012 0.002 0.001 0.004 
Guatemala 0.086 0.053 0.116 0.319 0.416 0.231 0.072 0.030 0.110 
Guyana 0.010 0.009 0.010 0.037 0.052 0.024 0.008 0.007 0.010 
Honduras 0.041 0.026 0.056 0.190 0.223 0.160 0.032 0.013 0.049 
Jamaica 0.044 0.024 0.063 0.114 0.091 0.136 0.040 0.020 0.059 
Jordan 0.079 0.052 0.104 0.198 0.120 0.269 0.071 0.049 0.092  
   TN/AG/26
 Page 77 Share of total merchandise trade 
(%) Share of world agriculture (AOA) 
trade (%)  Share of non-agriculture (NAMA) 
trade (%) 
WTO Member Total 
(exports + 
imports Exports Imports Total 
(exports + 
imports Exports Imports Total 
(exports + 
imports Exports Imports 
Kenya 0.052 0.037 0.065 0.215 0.314 0.126 0.041 0.019 0.062 
Kyrgyzstan 0.011 0.010 0.012 0.029 0.032 0.026 0.010 0.009 0.011 
Macao, China 0.049 0.04 9 0.048 0.05 5 0.013 0.09 3 0.050 0. 053 0.046 
Mauritius 0.037 0.032 0.041 0.096 0.102 0.090 0.034 0.028 0.038 
Moldova 0.018 0.013 0.022 0.089 0.132 0.051 0.013 0.006 0.021 
Mongolia 0.013 0.011 0.014 0.025 0.017 0.033 0.012 0.011 0.013 
Namibia 0.030 0.030 0.029 0.072 0.073 0.070 0.028 0.028 0.027 
Nicaragua 0.023 0.012 0.034 0.102 0.129 0.079 0.018 0.004 0.031 
Panama 0.038 0.016 0.059 0.105 0.091 0.114 0.035 0.011 0.056 
Papua New Guinea 0.032 0.042 0.023 0.070 0.086 0.056 0.030 0.040 0.022 
Paraguay 0.032 0.022 0.042 0.173 0.280 0.077 0.023 0.005 0.040 
Saint Kitts and Nevis 0.002 0.001 0.003 0.006 0.002 0.009 0.002 0.001 0.003 
Saint Lucia 0.004 0.001 0.006 0.016 0.009 0.022 0.003 0.001 0.005 
Saint Vincent and the Grenadines 0.002 0.001 0.003 0.011 0.009 0.012 0.002 0.000 0.003 
Sri Lanka 0.102 0.092 0.112 0.249 0.284 0.217 0.095 0.081 0.107 
Suriname 0.009 0.009 0.011 0.017 0.007 0.027 0.009 0.009 0.010 
Swaziland 0.019 0.018 0.019 0.068 0.082 0.056 0.015 0.014 0.016 
Trinidad and Tobago 0.086 0.102 0.071 0.086 0.072 0.098 0.088 0.107 0.071 
Uruguay 0.047 0.044 0.050 0.209 0.333 0.096 0.037 0.025 0.048 
Zimbabwe 0.037 0.037 0.039 0.151 0.280 0.067 0.030 0.021 0.037 
 
 a Excludes intra-EC trade (25 member States) and significant re-exports. 
Source :  All data are from the United Nations Comtrade databa se except for world totals, which are WTO estimates. TN/AG/26 
Page 78  
 
  ANNEX J 
 
POSSIBLE NEW ARTICLE TO REPLACE THE CURRENT ARTICLE 10.2 OF THE 
AGREEMENT ON AGRICULTURE 
 
EXPORT CREDITS, EXPORT CREDIT GUARANTEES OR INSURANCE PROGRAMMES 
 
Definition  
1. In addition to complying with all other expor t subsidy obligations under this Agreement and 
the other covered Agreements
1, Members undertake not to provide export credits, export credit 
guarantees or insurance programmes otherwise than in conformity with this Article. These export 
credits, export credit guarantees and insurance programmes (hereinafter referred to as "export 
financing support") shall comprise: 
(a) direct financing support, comprising direct cr edits/financing, refinancing, and interest 
rate support; 
(b) risk cover, comprising export credit insurance or reinsurance and export credit 
guarantees; 
(c) government-to-government credit agreements  covering the imports of agricultural 
products from the creditor country under which some or all of the risk is undertaken by the government of the exporting country; and 
(d) any other form of governmental export credit support, direct or indirect, including 
deferred invoicing and forei gn exchange risk hedging. 
2. The provisions of this Article shall apply to ex port financing support pr ovided by or on behalf 
of the following entities, hereinafter referred to as "export financing entities", whether such entities 
are established at the national or at the sub-national level: 
(a) government departments, agencies, or statutory bodies; 
(b) any financial institution or entity engaged in export financing in which there is 
governmental participation by way of equity, provision of funds, loans or 
underwriting of losses; 
(c) agricultural export state trading enterprises; and 
(d) any bank or other private financial, cred it insurance or guarantee institution which 
acts on behalf of or at the direction of governments or their agencies. 
                                                     
 
1 However, the second paragraph of item (k) of Annex I to the Agreement on Subsidies and Countervailing 
Measures (hereafter the "Illustrative List") shall not be applicable in the case of agricultural products.  TN/AG/26 
 Page 79 
 
 
  Terms and Conditions 
 
3. Export financing support shall be provided in conformity with th e terms and conditions set out 
below. 
(a) Maximum repayment term:  the maximum repayment term for export financing support 
under this Agreement, this being the period beginning at the starting point of credit2 and 
ending on the contractual date of the final pa yment, shall be no more than 180 days. For 
developed country Members, this shall apply from the first day of implementation or the 
last day of 2010, whichever comes first.  Ex isting contracts which have been entered into 
prior to the signature of this Agreement, are still in place, and are operating on a longer 
timeframe than that defined in the preceding sentence, shall run their course until the end 
of their contractual date, provided that they  are notified to the Committee on Agriculture 
and are not modified. 
(b) Self-financing:   export credit guarantee, insuran ce and reinsurance programmes, and 
other risk cover programmes included within s ub-paragraphs 1(b) (c) and (d) above shall 
be self-financing.  Where premium rates ch arged under a programme are inadequate to 
cover the operating costs and losses of that  programme over a previous 4-year rolling 
period , this shall, in and of itself, be sufficien t to determine that the programme is not 
self-financing. In addition, and irrespectiv e of whether these programmes conform with 
the requirements set out in the preceding sen tence, this does not exempt them from 
complying with any other provision of this Agreement or the othe r covered Agreements, 
including by reference to the more generally formulated long-term operating costs and 
losses of a programme, not limited to the hist orical rolling period referred to in the 
previous sentence, under item (j) of the I llustrative List.  Where these programmes are 
found to constitute export subsidies within the meaning of item (j) of the Illustrative List, 
they shall also be deemed to be not  self-financing under this Agreement. 
Special and Differential Treatment 
 
4. Developing country Members providers of expor t financing support shall be eligible to 
benefit from the following elements:  
(a) Maximum repayment terms :  the developing country Me mbers concerned shall have a 
phase-in period of four years after the first day of the implementation period or the end 
of 2013, whichever comes first, within which to fully implement the maximum 
repayment term of 180 days.  Th is shall be achieved as follows: 
(i) on the first day of implementation , the maximum repayment term for any new 
support entered into shall be 360 days;  
(ii) two years after implementation, the maximum repayment term for any new 
support to be entered into shall be 270 days;  
(iii) four years after implementation the maxi mum repayment term of 180 days shall 
apply.  
                                                      
2 The "starting point of a credit" shall be no later than the weighted mean date or actual date of the arrival of 
the goods in the recipient country for a contract under which shipments are made in any consecutive six-month period. TN/AG/26 
Page 80  
 
  It is understood that where there are, after an y of the relevant dates, pre-existing support 
arrangements entered into under the limits est ablished in the sub-paragraphs (i)-(iii) 
above, they shall run their original term. 
(b) Self-financing :  the self-financing period referred to in paragraph 3(b) shall be fifty per 
cent longer for developing country Members. 
5. Notwithstanding the terms of paragraphs 3 (a ) and 4 (a) above, Leas t-developed and net 
food-importing developing countries as listed in G/AG/5/Rev.8 shall be accorded differential and 
more favourable treatment comprisi ng allowance for a repayment term in respect of them of between 
360 and 540 days for the acquisition of basic foodstuffs.  Should one of these Members face  
exceptional circumstances which still preclude fina ncing normal levels of commercial imports of 
basic foodstuffs and/or in accessing loans granted by  multilateral and/or regional financial institutions 
within these timeframes, a further extension of su ch a time frame shall be provided. The standard 
monitoring and surveillance provisions of  the Agreement shall apply to these cases
3. 
                                                      
3 In the event that Cuba is a recipient Member in this situation any such monitoring and surveillance 
shall not apply without the prior express consent of Cuba.  TN/AG/26 
 Page 81 
 
 
  ANNEX K 
 
POSSIBLE NEW ARTICLE 10 BIS OF THE AGREEMENT ON AGRICULTURE 
 
AGRICULTURAL EXPORTING STATE TRADING ENTERPRISES 
 
1. Members shall ensure that agricultural expor ting state trading enterprises are operated in 
conformity with the provisions specified below and, subject to these provisions, in accordance with 
Article XVII, the Understanding on the Interpretation of Article XVII and other relevant provisions of 
GATT 1994, the Agreement on Agriculture and other WTO Agreements. 
Entities 
2. For the purpose of the disciplines set out hereun der in this Article, an agricultural exporting 
state trading enterprise shall be any enterprise whic h meets the working definition provided for in the 
Understanding on the Interpretation of Article XVII of the GATT 1994.4  
Disciplines 
3. In order to ensure the elimination of trade-di storting practices with respect to agricultural 
exporting state trading enterprises as described above, Members shall: 
(a) eliminate, in parallel and in proportion to the elimination of all forms of export subsidies 
including those related to food aid and export credits: 
(i) export subsidies, defined by Article 1( e) of the Uruguay Round Agreement on 
Agriculture, which are currently provided, consistently with existing obligations 
under Article 3.3 of the Uruguay Round Agreement on Agriculture, to or by an 
agricultural exporting state trading enterprise; 
(ii) government financing of agricultural exporting state trading enterprises, 
preferential access to capital or other special  privileges with respect to government 
financing or re-financing facilities, bor rowing, lending or government guarantees 
for commercial borrowing or lending, at below market rates; and 
(iii) government underwriting of losses, either directly or indirectly, losses or 
reimbursement of the costs or write-downs or write-offs of debts owed to, or by 
agricultural exporting state trading enterprises on their export sales. 
(iv) by 2013, the use of agricultural export monopoly powers for such enterprises5. 
                                                      
4 "Governmental and non-governmental enterprises, including marketing boards, which have been granted 
exclusive or special rights or privileges, including statutor y or constitutional powers, in the exercise of which they 
influence through their purchases or sales the level or dir ection of imports or exports." It is understood that where 
there is reference to the "rights and privileges " that "influence … the level or direction of imports " in the preceding 
sentence, this matter of imports is not per se  a matter falling under the disciplines of this Article which relates, rather, 
solely to the matter of exports under that working definition. 
5 Unless the product which is exported by such an enterprise concerned is de minimis , this being 
defined as where the average world exports of the agricultural product concerned are not more than 0.25% of total world trade in agricultural products in the 2003-2005 base period and provided that (a) the enterprise 
concerned has been notified already as an STE and (b) that the use of agricultural export monopoly powers by TN/AG/26 
Page 82  
 
  Special and differential treatment 
 
4. Notwithstanding paragraph 3(a )(iv) above, agricultural exporting state trading enterprises in 
developing country Members which enjoy special pr ivileges to preserve domestic consumer price 
stability and to ensure food security shall be permitte d to maintain or use export monopoly powers to 
the extent that they would not be otherwise incons istent with other provisions of this Agreement and 
other WTO Agreements. 
5. Where a developing country Member has an agricultural exporting state trading enterprise 
with export monopoly powers, that enterprise may con tinue also to maintain or use those powers, 
even if the purpose for which that enterprise h as such privileges could not be deemed to be 
characterized by the objective: "to preserve domestic consumer price stability and to ensure food 
security".  Such an entitlement, however, would be  permissible only for such an enterprise whose 
share of world exports of the agricultural product or  products concerned is less than 5 per cent, such 
that the entity's share of world exports of the pro duct or products concerned does not exceed that level 
in three consecutive years, and to the extent that the exercise of those monopoly powers is not 
otherwise inconsistent with other provisions of this Agreement and other WTO Agreements. 
6. In any case, agricultural exporting state tr ading enterprises in least-developed country 
Members and Members, small, vulnerable economi es, whether or not they enjoy such special 
privileges to preserve domestic consumer price st ability and to ensure fo od security, shall be 
permitted to maintain or use monopoly powers for agri cultural exports to the extent that they would 
not be otherwise inconsistent with other provisi ons of this Agreement a nd other WTO Agreements. 
Monitoring and surveillance 
7. Any Member that maintains an agricultural exporting state trading enterprise shall notify to 
the Committee on Agriculture, on an annual basis, re levant information regarding the enterprise's 
nature and operations.  This shall, consistent with standard WTO practice and normal commercial 
confidentiality considerations, requi re timely and transparent provision of information on any and all 
exclusive or special rights or privileges granted to such enterprises within the meaning of paragraph 1 
above sufficient to ensure effec tive transparency.  Memb ers shall notify any benefits, not otherwise 
notified under other WTO disciplines, which accrue to a state trading export enterprise from any 
special rights and privileges including those that are of a financial nature.  At the request of any 
Member, a Member maintaining a state trading e xport enterprise shall provide, subject to normal 
considerations of commercial confidentiality, inform ation requested concerning the enterprise's export 
sales of agricultural products, the product exporte d, the volume of the product exported, the export 
price and the export destination.
 
                                                                                                                                                                     
such an enterprise is not exercised in a manner which, either de jure  or de facto , effectively circumvents the 
provisions set out in sub-paragraphs (i) to (iii) above.    TN/AG/26 
 Page 83 
 
 
  ANNEX L 
 
POSSIBLE NEW ARTICLE 10.4 TO RE PLACE THE CURRENT ARTICLE 10.4  
OF THE AGREEMENT ON AGRICULTURE 
 
INTERNATIONAL FOOD AID 
 
1. Members reaffirm their commitment to maintain an adequate level of international food aid 
(hereinafter referred to as "food aid "6), to take account of the interests of food aid recipients and to 
ensure that the disciplines contained hereafter do not unintentionally impede the delivery of food aid 
provided to deal with emergency si tuations.  Members shall ensure that food aid is provided in full 
conformity with the disciplines below, thereby c ontributing to the objective of preventing commercial 
displacement. 
General disciplines applicable to all food aid transactions 
 
2. Members shall ensure that all food aid tran sactions are provided in conformity with the 
following provisions: 
(a) they are needs-driven; 
(b) they are in fully grant form; 
(c) they are not tied directly or indirectly to  commercial exports of agricultural products or 
of other goods and services; 
(d) they are not linked to the market development objectives of donor Members; and 
(e) agricultural products provided as food aid sha ll not be re-exported in any form, except 
where, for logistical reasons and in order to expedite the provision of food aid for another 
country in an emergency situation, such re-e xportation occurs as an integral part of an 
emergency food aid transaction that is itself ot herwise in conformity with the provisions 
of this Article. 
3. The provision of food aid shall take fully into account local market conditions of the same or 
substitute products.  Members shall refrain from pr oviding in-kind food aid in situations where this 
would cause, or would be reasonably foreseen to cause, an adverse effect on local or regional 
production of the same or  substitute products.7  Members are encouraged to procure food aid from 
local or regional sources to the extent possible, provided that the availability and prices of basic 
foodstuffs in these markets are not unduly compro mised.  Members commit to making their best 
efforts to move increasingly towards more untied cash-based food aid. 
                                                      
6  Unless otherwise specified, the term food aid is used to refer to both in-kind and cash-based food aid 
donations. 
7 It is conceivable that there could be circumstances where strict application of this obligation would have 
the effect of acting as an unintended impediment to the capacity of Members to respond fully and effectively to 
genuine need with in-kind food aid in an emergency situation envisaged under paragraphs 6 to 10 below.  Therefore it is recognized that, in such an emergency situation, Members may be permitted to depart from the strict application of 
this obligation, but only and strictly to the extent that this is a necessary and unavoidable consequence of the nature of 
the emergency itself such that to act in strict conformity  would manifestly compromise the capacity of a Member to 
respond effectively to meet food aid needs.  Furthermore, a Me mber shall in any case be obliged to avoid or, if this is 
not possible in the circumstances, to minimize, any a dverse effects on local or regional production through the 
provision of in-kind food aid otherwise in conformity with the provisions of paragraphs 6 to 10 below. TN/AG/26 
Page 84  
 
  4. Untied cash-based food aid that is in conformity with the provisions of paragraph 2 above shall 
be presumed to be in conformity with this Article. 
5. The recipient government has a primary role  and responsibility for the organization, 
coordination and implementation of food  aid activities within its territory. 
Further disciplines for food aid transactio ns in emergency situations (Safe Box) 
 6. To ensure that there is no unintended impe diment to the provision of food aid during an 
emergency situation, food aid provi ded under such circumstances (whether cash or in-kind) shall be in 
the ambit of the Safe Box and, therefore, deemed to  be in conformity with this Article, provided that: 
(a) there has been a declaration of an emerge ncy by the recipient country or by the 
Secretary-General of the United Nations; or 
(b) there has been an emergency appeal from a country; a relevant United Nations agency, 
including the World Food Programme and the United Nations Consolidated Appeals 
Process;  the International Committee of the Re d Cross or the International Federation of 
Red Cross and Red Crescent Societies; a relevant regional or international 
intergovernmental agency; a non-governmental  humanitarian organization of recognized 
standing traditionally working in conjunction with the former bodies; and 
in either case, there is  an assessment of need coordinated unde r the auspices of a relevant United 
Nations agency, including the World Food Programme ; the International Committee of the Red Cross 
or the International Federation of Red Cross and Red Crescent Societies.
8 
7. Following the emergency declaration or appeal as provided for in paragraph 6 above, there may 
well be a period where the needs assessment outcome is pending.  For the purposes of this Agreement, 
this period shall be deemed to be 3 months in dur ation.  Should any Member consider that the food 
aid concerned would fail to satisfy the conditions  provided for under paragraph 6 above, no initiation 
of dispute settlement on these grounds may occur until that period has elapsed (provided that the relevant multilateral agency referre d to in paragraph 6 above has not , within this period, given a 
negative assessment or has otherwise demonstrably not consented to a needs assessment).  Where, 
within or by the end of this period, the relevant  multilateral agency has either itself carried out a 
positive needs assessment or has demonstrably provided its consent or approval pursuant to 
footnote 3, and the other conditions  of paragraph 6 have been satis fied, the food aid concerned shall 
remain in the Safe Box hereafter provided it is also in conformity with all the other relevant 
provisions of this Article. 
8. There shall be no monetization for food aid in side the Safe Box, except for least-developed 
countries where there is a demonstrable need to do so for the sole purpose of transport and delivery. 
Such monetization shall be carried out solely with in the territory of the recipient least-developed 
country
9 such that commercial displacement is avoi ded or, if not feasible, at least minimized. 
                                                      
8 Needs assessment should be done with the involvement of the recipient government and may involve a 
relevant regional intergovernmental organization or an NGO, but while the latter bodies may be so involved, this  is  in a context where they are in coordination with the rele vant United Nations agency or ICRC/IFRCRCS as the case 
may be. A needs assessment shall not have standing for the purposes of access to the safe box under these provisions unless it has been conducted in such a coordinated manner,  and has obtained the demonstrable consent or approval of 
the latter multilateral agencies. 
9 In the case of a landlocked Member, additionally fo r the transport/delivery from the extra-territorial 
continentally contiguous port of final unloading to the destination territorial border.  TN/AG/26 
 Page 85 
 
 
  9. A notification will be required on an ex-post  basis by donor Members at six-month intervals in 
order to ensure transparency. 
10. Subject to its continued conformity with other pr ovisions of this Article, food aid that is in 
conformity with paragraph 6 may be provided as l ong as the emergency lasts subject to an assessment 
of continued genuine need as a result of the initial on set of the emergency.  The relevant multilateral 
agency shall be responsible to ma ke or convey such determination. 
Further disciplines for food aid transa ctions in non-emergency situations 
 
11. Further to the disciplines set out in paragraphs 1 to 5 above, in-kind food aid  in non-emergency 
situations outside the Safe Box shall be: 
(a) based on a targeted assessment of need whet her carried out by an international or 
regional intergovernmental organization10, including the UN, or, where such a targeted 
assessment is not reasonably obtainable,  by a donor government or a humanitarian non-
governmental organisation of recognized st anding, working in partnership with a 
recipient country government. That assessment would incorporate and reflect objective 
and verifiable poverty and hunger data pub lished by an international or regional 
intergovernmental organisation or by a recipient country that objectively identifies the food insecurity needs of the target populations  described in sub-paragraph (b) below; 
(b) provided to redress food deficit situations  which give rise to chronic hunger and 
malnutrition and, accordingly, such food aid shall be targeted to meet the nutritional 
requirements of identified food insecure groups; and 
(c) be provided consistently with the objective of preventing, or at the very least minimizing, 
commercial displacement.  Commercial displaceme nt in this context shall arise where the 
provision of in-kind food aid by a Member  materially displaces commercial transactions 
that would otherwise have occurred in or into a normally functioning market in the recipient country for the same product or directly competitive products. 
12. Monetization of in-kind food aid in non-emergenc y situations shall be prohibited except where 
it is in conformity with the provisions of paragr aph 11 above and,  as a means to meet direct 
nutritional requirements of least-developed and net food-importing developing country members, it is 
necessary to fund the internal transportation and deli very of the food aid to, or the procurement of 
agricultural inputs to low-income or resource-poor producers in, those Members.  Monetization shall 
be carried out within the territory of the reci pient least-developed or net food-importing developing 
country.
11 Additionally, commercial displacement shall be avoided. 
Monitoring and surveillance 
 
13. Food aid donor Members shall be required to notify to the Committee on Agriculture, on an 
annual basis, all relevant data.   
                                                      
10 This should involve the recipient country government and may involve humanitarian non-
governmental organisations working in partnership with the recipient country government. 
11 In the case of a landlocked Member, additionally for th e transit transport/delivery from the extra-territorial 
continentally contiguous port of final unloading to the destination territorial border.  TN/AG/26 
Page 86  
 
  ANNEX M 
MONITORING AND SURVEILLANCE 
 
 1. The existing Article 18 of the Agreement on Agri culture will be replaced by the text below.  
Enhanced monitoring also requires that, as a matte r of urgency, the Committe e’s Working Procedures 
(G/AG/1) and the Notification Requirements and Fo rmats (G/AG/2) be amended to reflect the new 
commitments that result from the current negotia tions which require amendments to existing 
notification formats, additional notification obliga tions and an enhanced role for the Committee in 
reviewing and monitoring implementation of co mmitments and disciplines under the Agreement on 
Agriculture. 
2. In addition to the provisions set out below,  the revision of G/AG/2 shall require that a 
Member that provides support which it claims is consistent with A nnex 2 of the Agreement, shall 
include in the initial notification required under 4(b) (ii) of the possible Article 18 a summary of the 
measure, including, where appropriate, base periods and yields, the sources where full details may be 
found, the expected budgetary outlay under each pr ogramme and such other information as the 
Committee on Agriculture may decide.  Any revision to a measure claimed to be consistent with 
Annex 2 of the Agreement shall also be so  notified before the revision takes affect. 
3. In revising the Working Procedures of  the Committee on Agriculture and Members' 
Notification Requirements and Formats, Members sha ll provide for an enhanced surveillance role for 
the Committee so as to improve tr ansparency and the contribution of obligations established under 
these modalities to the long-term objective of estab lishing a fair and market-oriented agricultural 
trading system.     TN/AG/26 
 Page 87 
 
 
   
Possible new Article 18 to Replace the Curren t Article 18 of the Agreement on Agriculture 
 
Review of the Implementation of Commitments 
  
Objectives 
1. The Committee on Agriculture shall review a nd monitor the implementation of Members' 
obligations established under this Agreement.  The Committee on Agriculture shall provide effective 
surveillance of compliance with obligations through ensuring transparency and give an opportunity to 
Members to assess the contribution of these obligati ons to the long-term objective of establishing a 
fair and market-oriented agricultural trading system. 
Institutional aspects 
2. The Committee on Agriculture shall meet as necessary, but not less than 4 times per year, for 
the purposes established in this Article and to affo rd Members the opportunity of consulting on any 
matter relating to the provisions of this Agr eement.  The Committee shall carry out such 
responsibilities as assigned to it under this Agreemen t or by Members.  The Committee shall establish 
subsidiary bodies, as appropriate, which shall car ry out such responsibilities as may be assigned to 
them by the Committee in accordance with the re levant provisions of this Agreement.  The 
Committee shall establish Working Procedures and No tification Requirements and Formats to reflect 
Members’ obligations as set out in this Agreem ent and Members’ Schedules and taking into account 
the requirements established in this Article.   W ith respect to the Notification Requirements and 
Formats, there shall be special and differentia l treatment for developing country Members with 
respect to the deadlines to be met. 
The review process 
3. The review process shall be primarily undertaken on the basis of notifications submitted by 
Members in relation to their specific binding commit ments and the disciplines applicable to them and 
in relation to other matters which may be agreed, using the Notification Requirements and Formats to 
be established under paragraph 2.   
4. The basis for the review pr ocess shall be supplemented by such documentation as the 
Secretariat may be requested by the Committee to pr epare in order to facilitate the review process, 
including the advance circulation of Members’ ques tions.  Should a Member be unable to submit a 
final notification by the appropriate deadline set out in the Notification Requirements and Formats, 
that Member should submit a provisional notification pending the provision of the final notification. Where appropriate, a Member shall include in its notifications the sources for the domestic provisions 
that regulate the measure.  
(a) In relation to market access: 
(i) A Member with tariff and other quota commitments shall provide a 
comprehensive one-off notification of the administration of its tariff quota commitments including: information on th e allocation and re-allocation of quotas 
and licenses; administrative procedures applicable; and any other information 
relevant to the implementation of co mmitments under these arrangements as well 
as prompt notification of any changes to any of these matters.  A Member with 
tariff and other quota commitments sha ll provide an annual notification of TN/AG/26 
Page 88  
 
  imports under tariff quota commitments as well as the levels of, and significant 
changes in tariff quota fill.   
(ii) If there is a choice made (and without prejudice to the outcome of that decision) 
to permit some retention of the special  safeguard pursuant to the options in 
paragraphs 116-118 above and, accordingly,  a Member would be thereby entitled 
to have in its Schedule some right to invoke the Special Agricultural Safeguard 
under Article 5 of this Agreement, it shall notify safeguard actions when 
initiated, and provide information on tri ggers and remedies, as well as an annual 
summary of these safeguard actions. 
(iii) A developing country Member shall no tify Special Safeguard Measure actions 
when initiated, and provide information on triggers and remedies, as well as an 
annual summary of these actions. 
(b) In relation to domestic support commitments: 
(i) Members shall provide an annual notification of domestic support measures, to 
allow Members to assess compliance with their Scheduled commitments 
concerning Overall Trade-distorting Do mestic Support, Bound Total Aggregate 
Measurement of Support, product-specific AMS limits, de minimis  levels and 
limits to support under Article 6.5.  The annual notifications shall also include 
information on support which is claimed to be consistent with Article 6.2, Article 
6.5 and Annex 2.  The notifications shall include: information on support measures; the details of the calculation of support for each measure; the 
monetary value of such support; and, wh ere appropriate, the value of production 
by product; the total value of agricultural production; and sources for the information and data included in the notification. 
(ii) A Member providing support which it claims  to be consistent with Article 6.5, 
Article 6.2 or Annex 2 shall provide a comprehensive one-off notification setting 
out the programmes under each provision, the source for the domestic legislation 
under which support is provided and a su mmary description of the measure.  A 
Member introducing or amending a programme  which it claims to be consistent 
with Article 6.5, Article 6.2 or Annex 2 shall provide a notification for each new 
or modified measure. 
(c) In relation to export competition, a Member with  commitments in Section II of Part IV of 
its Schedule, and a developing c ountry Member using the provisions of Article 9.4, shall, 
inter alia , submit annual notifications setting out its  use of export subsidies, by product 
or groups of products cons istent with that Member's scheduled commitments, where 
appropriate, in both export quantity and budge tary outlay terms.  A Member which 
provides export financing support shall provide an initial notification identifying the 
steps taken to ensure compliance of its export credits, export credit guarantees and 
insurance programmes with disciplines set out  in the relevant Article and an annual 
notification to enable the monitoring of self-financing and repayment disciplines.  A Member that has provided international food ai d shall provide annual notifications of the 
provision of both emergency and non-emergency food aid.  A Member that has maintained any agricultural exporting state tr ading enterprises shall notify the steps taken 
to ensure compliance with the discipl ines in Article 10.4 as amended.     TN/AG/26 
 Page 89 
 
 
  (d) In relation to export prohibitions and rest rictions, a Member instituting an export 
prohibition or restriction under Article XI .2(a) of GATT 1994 shall notify the measure 
and report on the progress made in consultations to the Committee on Agriculture. 
(e) Members shall also submit additional notifications on these and other matters within the 
scope of the provisions of this Agreement, including commitments undertaken with 
respect to cotton, and other matters relevant to the Agreement on Agriculture as may be 
agreed by the Committee on Agriculture. 
(f) Annual notification shall be submitted according to the periods set out in the Notification 
Requirements and Formats established under paragraph 2.  Notifications of new 
measures or modifications of existing ones shall be submitted immediately after they 
have been decided and, in any case,  before their entry into force. 
5. In the review process Members shall give due consideration to the influence of excessive 
rates of inflation on the ability of any Member to abide by its domestic support commitments. 
6. In the review process, any Member may br ing to the attention of the Committee on 
Agriculture any measure which it considers ought to have been notified by another Member, including 
by means of a counter notification. 
7. The review process shall provide an opportunity for Members to raise any matter relevant to 
the implementation of commitments under the reform  programme as set out in this Agreement. 
The surveillance process 
8. The Committee, and any working bodies estab lished under its Working Procedures, shall 
provide an effective forum for Members to mon itor compliance with commitments and disciplines 
under the Agreement on Agriculture and to undertak e surveillance of progress towards the long-term 
objective of establishing a fair and market-oriented ag ricultural trading system.  In the discharge of its 
surveillance functions, and based on factual repor ts from the Secretariat as requested by the 
Committee, the Committee and its working bodies shall review the implementation of commitments and obligations at such intervals and in rela tion to such matters to be agreed, including: 
(a) The follow-up to the Decision on Measures C oncerning the Possible Negative Effects of 
the Reform Programme on Least-Developed and Net Food-Importing Developing Countries; 
(b) Special review of implementation of special and differential treatmen t provisions of this 
Agreement and related development concerns; 
(c) The implementation of cotton-related commitments; 
(d) Conformity with notification obligations; 
(e) As requested by Members, factual backgroun d papers based on information provided by 
Members in notifications, including annual summaries of notifications of support claimed to be in compliance with Annex 2 of  the Agreement on Agriculture, notifications 
relating to Food Aid and export prohibitions a nd restrictions. For support claimed to be 
in compliance with Annex 2 of the Agreem ent on Agriculture, Members shall notify the 
base period and all other criteria releva nt to programmes under the provisions. 
Notifications under paragraph 6(a) shall incl ude regular and periodic updates on how the 
programmes concerned achieve the stated objectives. TN/AG/26 
Page 90  
 
  Special and Differential Treatment 
9. The Secretariat of the WTO shall give priority, within the limits of its resources, to requests 
for technical co-operation from developing country Members, including advice and assistance in meeting notification obligations, with the objec tive of enhancing their participation in the 
Committee's work.  Members should also give consideration to the provision of technical assistance to 
developing country Members to assist meeting th e provisions of this Article and complementary 
obligations. 
Appraisal 
10. Members shall review the effec tiveness of monitoring and surv eillance mechanisms, with the 
objective of making further improvements, following a period of 3 years from the entry into force of 
this Agreement.   TN/AG/26 
 Page 91 
 
 
  ANNEX N 
 
TARIFF SIMPLIFICATION METHODOLOGY  
 
1. The following methodology shall apply in respect of tariff simplification: 
At the beginning of the implementation period: 
2. The most highly complex forms of bound tariffs, such as complex matrix tariffs shall be 
converted into simple ad valorem tariffs. 
3. Non-ad valorem bound tariffs where the AVE from the Agreed Methodology using the 99-01 
base is comparable12 to the current AVE calculated using the average unit import value for the 
Member concerned in the year preceding the first year  of implementation shall be converted to simple 
ad valorem tariffs and bound in the Member's Schedule. 
Following the implementation period: 
4. Non-ad valorem bound tariffs where the AVE from the Agreed Methodology using the 99-01 
base is comparable13 to the current AVE calculated using the average unit import value for the 
Member concerned in the last year of the implem entation period shall be converted to simple ad 
valorem tariffs and bound in the Member's Schedule. 
Three years after the end of the implementation period: 
5. For non-ad valorem bound tariffs where the AVE from the Agreed Methodology is 
comparable14 to the current AVE calculated using the average unit import value for the Member 
concerned in the second year after the implementation period shall be converted to simple ad valorem 
tariffs and bound in the Member's Schedule. 
6. If after the conclusion of the three stages ou tlined above non-ad valo rem tariffs remain 
unconverted, these tariffs shall remain bound in their non-ad valorem form in the Member's Schedule. 
 
 
                                                      
12 The term “comparable” here shall be deemed to exist only where it can be demonstrated that the 
effective final tariff cut resultant from calculating the AVE on the basis of the average unit import value in the 
year preceding the first year of implementation would be no more than 4.9 percent ad valorem percentage points 
less (i.e. higher) than the effective tariff cut would have been if based on the 99-01 base period. 
 
13 The term “comparable” here shall be deemed to exist only where it can be demonstrated that the 
effective final tariff cut resultant from calculating the AVE on the basis of the average unit import value in the last year of the implementation period would be no more  than 4.9 percent ad valorem percentage points less (i.e. 
higher) than the effective tariff cut would have been if based on the 99-01 base period. 
 
14 The term “comparable” here shall be deemed to exist only where it can be demonstrated that the 
effective final tariff cut resultant from calculating the AVE on the basis of the average unit import value in the 
second year after the end of the implementation period would be no more than 4.9 percent ad valorem percentage points less (i.e. higher) than the effective tari ff cut would have been if based on the 99-01 base 
period. TN/AG/26 
Page 92  
 
  Attachment A 
Notes for Attachment A: Product Categories 
 
 The percentages indicated in the Common Cons umption Allocation column shall be used for 
the allocation of consumption among the HS-6 lin es for each product in the two-step calculation 
undertaken in attachment D.  
(1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
Animal 
Products, NESOI Deer Velvet 050790 Tortoise-she ll, whalebone & whalebone hair, 
horns, antlers, hooves, nails,  ... Core 1 100.0% 
Animal 
Products, NESOI Guts of Poultry 050400 Guts, bladders & stomachs of animals (other than 
fish), whole & pieces ther ... Core 1 100.0% 
Animal 
Products, 
NESOI Guts of Swine 050400 Guts, bladders & stomachs of animals (other than 
fish), whole & pieces ther ... Core 1 100.0% 
Cereals Barley 100300 Barley Core 1 90.0% 
Cereals Barley 110290 Cereal flour other than of wheat, meslin, rye, maize 
(corn), rice   2 0.0% 
Cereals Barley 110319 Groats/meal of cereals other than wheat & maize 
(corn)   2 0.0% 
Cereals Barley 110320 Pellets of cereals   2 0.0% 
Cereals Barley 110419 Rolled/flaked grains of cereals other than oats   2 0.0% 
Cereals Barley 110429 Other wkd. grains (e.g., 
hulled/pearled/slic ed/kibbled) of cereals other th 
...   2 0.0% 
Cereals Barley 110710 Malt, not roasted   2 9.3% 
Cereals Barley 110720 Malt, roasted   2 0.7% 
Cereals Barley 190120 Mixes & doughs for th e preparation of bakers' 
wares of 19.05   0 0.0% 
Cereals Barley 190190 Malt extract; oth. food preps. of 
flour/groats/meal/starch/ malt extact (see ...   0 0.0% 
Cereals Barley 190410 Prepared foods obt. by  the swelling/roasting of 
cereals/cereal prods.   0 0.0% 
Cereals Barley 190420 Prepared foods obt.  from unroasted cereal 
flakes/mixts. of unroasted cereal ...   0 0.0% 
Cereals Barley 190490 Cereals other than maize (corn) in grain form/in 
the form of flakes/oth. wk ...   0 0.0% 
Cereals Barley 210690 Food preps., n.e.s.   0 0.0% 
Cereals Buckwheat 100810 Buckwheat Core 1 100.0% 
Cereals Corn  1 100510 Maize (corn), seed   0 0.0% 
Cereals Corn  1 100590 Maize (corn), other than seed Core 1 93.7% 
Cereals Corn  1 110220 Maize (corn) flour   2 1.2% 
Cereals Corn  1 110313 Groats/meal of maize (corn)   2 1.7% 
Cereals Corn  1 110423 Corn (maize), worked othw. than into 
flour/groats/meal (e.g., hulled/pearle ...   2 3.4% 
Cereals Modified Starch 290543 Mannitol Core 1 3.7% 
Cereals Modified Starch 290544 D-glucitol (sorbitol) Core 1 15.6% 
Cereals Modified Starch 350510 Dextrins & oth. modified starches Core 1 77.1% 
Cereals Modified Starch 382460 Sorbitol other than of 2905.44 Core 1 3.6% 
Cereals Oats 100400 Oats Core 1 90.0% 
Cereals Oats 110412 Rolled/flaked grains of oats   2 7.1% 
Cereals Oats 110422 Oats, worked othw. than by rolling (e.g., 
hulled/pearled/s liced/kibbled)   2 2.9% 
Cereals Oats 230240 Bran, sharps & oth. resi dues, whether or not in the 
form of pellets, derive ...   0 0.0% 
Cereals Rice  1 100610 Rice in the husk (paddy/rough) Core 1 6.3% 
Cereals Rice  1 100620 Husked (brown) rice Core 1 9.4%  TN/AG/26 
 Page 93 
 
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
Cereals Rice  1 100630 Semi-milled/wholly milled rice, whether or not 
polished/glazed Core 1 72.8% 
Cereals Rice  1 100640 Broken rice Core 1 10.8% 
Cereals Rice  1 110230 Rice flour   2 0.6% 
Cereals Rice  1 110319 Groats/meal of cereals other than wheat & maize 
(corn)   2 0.1% 
Cereals Rice  1 110320 Pellets of cereals   2 0.0% 
Cereals Rice  1 110419 Rolled/flaked grains of cereals other than oats   2 0.0% 
Cereals Rice  1 110429 Other wkd. grains (e.g., 
hulled/pearled/slic ed/kibbled) of cereals other th 
...   2 0.0% 
Cereals Rice  1 110819 Starches (excl. of 1108.11-1108.14)   0 0.0% 
Cereals Rice  1 180690 Chocolate & oth. food pr eps. cont. cocoa (excl. of 
1806.20-1806.32)   0 0.0% 
Cereals Rice  1 190120 Mixes & doughs for th e preparation of bakers' 
wares of 19.05   0 0.0% 
Cereals Rice  1 190190 Malt extract; oth. food preps. of 
flour/groats/meal/starch/ malt extact (see ...   0 0.0% 
Cereals Rice  1 190211 Uncooked pasta, not stuffed/othw. prepd., cont. 
eggs   0 0.0% 
Cereals Rice  1 190219 Uncooked pasta, not stuffed/othw. prepd., not 
cont. eggs   0 0.0% 
Cereals Rice  1 190220 Stuffed pasta, wh ether or not cooked/othw. prepd.   0 0.0% 
Cereals Rice  1 190230 Pasta (excl. of 1902.11-1902.20)   0 0.0% 
Cereals Rice  1 190410 Prepared foods obt. by  the swelling/roasting of 
cereals/cereal prods.   0 0.0% 
Cereals Rice  1 190420 Prepared foods obt.  from unroasted cereal 
flakes/mixts. of unroasted cereal ...   0 0.0% 
Cereals Rice  1 190490 Cereals other than maize (corn) in grain form/in 
the form of flakes/oth. wk ...   0 0.0% 
Cereals Rice  1 190590 Bread, pastry, cakes, bi scuits & oth. bakers' wares 
n.e.s. in Ch.19, whethe ...   0 0.0% 
Cereals Rice  1 210690 Food preps., n.e.s.   0 0.0% 
Cereals Rice  1 220600 Fermented beverages (e.g., cider, perry, mead), 
n.e.s.; mixts. of fermented ...   0 0.0% 
Cereals Rye 100200 Rye Core 1 90.0% 
Cereals Rye 110210 Rye flour   2 10.0% 
Cereals Sorghum 100700 Grain sorghum Core 1 100.0% 
Cereals Starch 110812 Maize (corn) starch Core 1 25.4% 
Cereals Starch 110813 Potato starch Core 1 24.3% 
Cereals Starch 110814 Manioc (cassava) starch Core 1 38.4% 
Cereals Starch 110819 Starches (excl. of 1108.11-1108.14) Core 1 6.4% 
Cereals Starch 110820 Inulin Core 1 5.5% 
Cereals Starch 190120 Mixes & doughs for th e preparation of bakers' 
wares of 19.05   0 0.0% 
Cereals Starch 190190 Malt extract; oth. food preps. of 
flour/groats/meal/starch/ malt extact (see ...   0 0.0% 
Cereals Triticale 100890 Cereals (excl. those which have been hulled/othw. 
wkd.), n.e.s. Core 1 90.0% 
Cereals Triticale 110290 Cereal flour other than of wheat, meslin, rye, maize 
(corn), rice   2 4.7% 
Cereals Triticale 110319 Groats/meal of cereals other than wheat & maize 
(corn)   2 5.3% 
Cereals Wheat 100110 Durum wheat Core 1 18.7% 
Cereals Wheat 100190 Wheat other than durum wheat; meslin Core 1 71.3% 
Cereals Wheat 110100 Wheat/meslin flour   2 7.9% 
Cereals Wheat 110311 Groats/meal of wheat   2 0.4% 
Cereals Wheat 110320 Pellets of cereals   2 0.0% 
Cereals Wheat 110419 Rolled/flaked grains of cereals other than oats   2 0.0% TN/AG/26 
Page 94  
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
Cereals Wheat 110429 Other wkd. grains (e.g., 
hulled/pearled/slic ed/kibbled) of cereals other th 
...   2 0.0% 
Cereals Wheat 110430 Germ of cereal s, whole/rolled/flaked/ground   2 0.0% 
Cereals Wheat 110811 Wheat starch   2 0.2% 
Cereals Wheat 110900 Wheat gluten, whether or not dried   2 1.5% 
Cereals Wheat 190120 Mixes & doughs for th e preparation of bakers' 
wares of 19.05   0 0.0% 
Cereals Wheat 190190 Malt extract; oth. food preps. of 
flour/groats/meal/starch/ malt extact (see ...   0 0.0% 
Cereals Wheat 190211 Uncooked pasta, not stuffed/othw. prepd., cont. 
eggs   0 0.0% 
Cereals Wheat 190219 Uncooked pasta, not stuffed/othw. prepd., not 
cont. eggs   0 0.0% 
Cereals Wheat 190220 Stuffed pasta, wh ether or not cooked/othw. prepd.   0 0.0% 
Cereals Wheat 190230 Pasta (excl. of 1902.11-1902.20)   0 0.0% 
Cereals Wheat 190240 Couscous   0 0.0% 
Cereals Wheat 190410 Prepared foods obt. by  the swelling/roasting of 
cereals/cereal prods.   0 0.0% 
Cereals Wheat 190420 Prepared foods obt.  from unroasted cereal 
flakes/mixts. of unroasted cereal ...   0 0.0% 
Cereals Wheat 190430 Bulgur wheat   0 0.0% 
Cereals Wheat 190490 Cereals other than maize (corn) in grain form/in 
the form of flakes/oth. wk ...   0 0.0% 
Cereals Wheat 190510 Crispbread   0 0.0% 
Cereals Wheat 190520 Gingerbread and the like   0 0.0% 
Cereals Wheat 190531 Sweet biscuits   0 0.0% 
Cereals Wheat 190532 Waffles & wafers   0 0.0% 
Cereals Wheat 190540 Rusks, toasted bread & sim. toasted prods.   0 0.0% 
Cereals Wheat 190590 Bread, pastry, cakes, bi scuits & oth. bakers' wares 
n.e.s. in Ch.19, whethe ...   0 0.0% 
Cereals Wheat 210690 Food preps., n.e.s.   0 0.0% 
Dairy Butter 040510 Butter Core 1 63.6% 
Dairy Butter 040520 Dairy spreads Core 1 5.1% 
Dairy Butter 040590 Fats & oils derived from milk, other than butter & 
dairy spreads Core 1 31.3% 
Dairy Buttermilk/Sour 
Cream, Pwd 040390 Buttermilk/curdled milk & cream/kephir & oth. 
fermented/acidified milk & cr ... Core 1 100.0% 
Dairy Casein/ates 350110 Casein Core 1 64.2% 
Dairy Casein/ates 350190 Caseinates & oth. casein derivs.; casein glues Core 1 35.8% 
Dairy Cheese 040610 Fresh (unripened /uncured) cheese, incl. whey 
cheese, & curd Core 1 11.4% 
Dairy Cheese 040620 Grated/powdered cheese, of all kinds Core 1 3.8% 
Dairy Cheese 040630 Processed cheese, not grated/powdered Core 1 14.6% 
Dairy Cheese 040640 Blue-veined cheese Core 1 2.2% 
Dairy Cheese 040690 Cheese (excl. of 0406.10-0406.40) Core 1 68.0% 
Dairy Cond/Evap Milk 040291 Milk & cream, concentrated (excl. in powder), 
unsweetened Core 1 45.5% 
Dairy Cond/Evap Milk 040299 Milk & cream, concentrated (excl. in powder), 
sweetened Core 1 54.5% 
Dairy Fluid Milk 040110 Milk & cream, not concentrated/sweetened, fat 
content by wt. not >1% Core 1 23.8% 
Dairy Fluid Milk 040120 Milk & cream, not co ncentrated/sweetened, fat 
content by wt. >1% but not >6 ... Core 1 76.2% 
Dairy Ice Cream 180620 Chocolate & oth. food pr eps. cont. cocoa (excl. of 
1803.10-1806.10), in blo ...   0 0.0% 
Dairy Ice Cream 180690 Chocolate & oth. food pr eps. cont. cocoa (excl. of 
1806.20-1806.32)   0 0.0% 
Dairy Ice Cream 190190 Malt extract; oth. food preps. of 
flour/groats/meal/starch/ malt extact (see ...   0 0.0%  TN/AG/26 
 Page 95 
 
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
Dairy Ice Cream 210500 Ice cream & oth. edible  ice, whether or not cont. 
cocoa Core 1 100.0% 
Dairy Other Dairy  2 040130 Milk & cream, not concentrated/sweetened, fat 
content by wt. >6% Core 1 6.7% 
Dairy Other Dairy  2 040390 Buttermilk/curdled milk & cream/kephir & oth. 
fermented/acidified milk & cr ... Core 1 1.5% 
Dairy Other Dairy  2 040410 Whey & modified whey, whether or not 
concentrated/sweetened Core 1 2.0% 
Dairy Other Dairy  2 040490 Milk prods. of nat. milk constituents, whether or 
not sweetened, n.e.s. Core 1 10.4% 
Dairy Other Dairy  2 170211 Lactose & lactose syrup, cont. by wt. 99%/more 
lactose, expressed as anhydr ... Core 1 6.6% 
Dairy Other Dairy  2 170219 Lactose & lactose syrup, cont. by wt. >95% but 
<99% lactose, expressed as a ... Core 1 1.8% 
Dairy Other Dairy  2 170490 Sugar confectionery other than chewing gum (incl. 
white chocolate), not con ... Core 1 1.1% 
Dairy Other Dairy  2 180620 Chocolate & oth. food preps. cont. cocoa (excl. of 
1803.10-1806.10), in blo ... Core 1 4.4% 
Dairy Other Dairy  2 180631 Chocolate & oth. food preps. cont. cocoa, in 
blocks/slabs/bars, weighing 2k ... Core 1 2.9% 
Dairy Other Dairy  2 180632 Chocolate & oth. food preps. cont. cocoa, in 
blocks/slabs/bars, weighing 2k ... Core 1 3.8% 
Dairy Other Dairy  2 180690 Chocolate & oth. food preps. cont. cocoa (excl. of 
1806.20-1806.32) Core 1 10.0% 
Dairy Other Dairy  2 190110 Preparations for infant use, put up for RS Core 1 6.9% 
Dairy Other Dairy  2 190120 Mixes & doughs for the preparation of bakers' 
wares of 19.05 Core 1 2.2% 
Dairy Other Dairy  2 190190 Malt extract; oth. food preps. of 
flour/groats/meal/starch/malt extact (see ... Core 1 7.9% 
Dairy Other Dairy  2 210112 Preparations with a basis of 
extracts/essences/concs. of coffee/with a basi ... Core 1 0.0% 
Dairy Other Dairy  2 210120 Extracts, essences & concs. of tea/mat ╬ÿ, & 
preps. with a basis of these ext ... Core 1 0.0% 
Dairy Other Dairy  2 210610 Protein concs. & textured protein subs. Core 1 0.1% 
Dairy Other Dairy  2 210690 Food preps., n.e.s. (See footnote 2) Core 1 18.9% 
Dairy Other Dairy  2 220290 Non-alcoholic beverages other than waters of 
2202.10 (not incl. fruit/veg.  ... Core 1 2.4% 
Dairy Other Dairy  2 230990 Preparations of a kind used in animal feeding 
other than dog/cat food put u ... Core 1 4.7% 
Dairy Other Dairy  2 350220 Milk albumin, incl. concs. of 2/more whey 
proteins Core 1 5.5% 
Dairy Other Dairy  2 350400 Peptones & their derivs.; oth. protein subs. & 
their derivs., n.e.s.; hide  ... Core 1 0.2% 
Dairy SMP 040210 Milk in powder/granules/oth. solid form, fat 
content by wt. not >1.5% Core 1 100.0% 
Dairy Whey, 
Powdered 040410 Whey & modified whey, whether or not 
concentrated/sweetened Core 1 100.0% 
Dairy WMP 040221 Milk in powder/granules/oth. solid form, 
unsweetened, fat content by wt. >1 ... Core 1 84.8% 
Dairy WMP 040229 Milk in powder/granules/oth. solid form, 
sweetened, fat content by wt. >1.5 ... Core 1 15.2% 
Dairy Yogurt 040310 Yogurt Core 1 100.0% 
Eggs  3 Eggs in shell 040700 Birds' eggs, in shel l, fresh/presvd./cooked Core 1 100.0% 
Eggs  3 Processed Eggs 040811 Egg yolks, dr ied, whether or not cont. added 
sugar/oth. sweetening matter Core 1 12.0% 
Eggs  3 Processed Eggs 040819 Egg yolks (excl. dried), whether or not cont. added 
sugar/oth. sweetening m ... Core 1 16.5% 
Eggs  3 Processed Eggs 040891 Birds' eggs, not in shell (excl. yolks), dried, 
whether or not cont. added  ... Core 1 14.5% 
Eggs  3 Processed Eggs 040899 Birds' eggs, not in shell (excl. yolks), other than 
dried, whether or not c ... Core 1 15.5% TN/AG/26 
Page 96  
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
Eggs  3 Processed Eggs 190220 Stuffed pasta, wh ether or not cooked/othw. prepd.   0 0.0% 
Eggs  3 Processed Eggs 190230 Pasta (excl. of 1902.11-1902.20)   0 0.0% 
Eggs  3 Processed Eggs 210690 Food preps., n.e.s.   0 0.0% 
Eggs  3 Processed Eggs 350211 Dried egg albumin Core 1 37.1% 
Eggs  3 Processed Eggs 350219 Egg albumin (excl. dried) Core 1 4.4% 
Eggs Hatching Hatching Eggs & 
Live Chicks 040700 Birds' eggs, in shell, fresh/presvd./cooked Core 1 18.7% 
Eggs Hatching Hatching Eggs & 
Live Chicks 010511 Live fowls of species Gallus domesticus, weighing 
not >185g Core 1 81.3% 
F&V Almonds 080211 Almonds, in shell Core 1 9.3% 
F&V Almonds 080212 Almonds, shelled Core 1 90.7% 
F&V Almonds-
Prep/Pres 200819 Nuts (excl. ground-nuts), incl. mixts., 
prepd./presvd., whether or not cont ... Core 1 100.0% 
F&V Apples-Dried 081330 Apples, dried Core 1 100.0% 
F&V Apples-Fresh 080810 Apples, fresh Core 1 100.0% 
F&V Apples-Juice 200971 Apple juice, of a Brix value not >20, unfermented 
& not cont. added spirit, ... Core 1 9.8% 
F&V Apples-Juice 200979 Apple juice (excl. of 2009.71), unfermented & not 
cont. added spirit, wheth ... Core 1 90.2% 
F&V Apples-
Prep/Pres 200899 Edible parts of plants, prepd./presvd., whether or 
not cont. added sugar/ot ... Core 1 100.0% 
F&V Apricots-Dried 081310 Apricots, dried Core 1 100.0% 
F&V Apricots-Fresh 080910 Apricots, fresh Core 1 100.0% 
F&V Apricots-
Prep/Pres 200850 Apricots, prepd./presvd., whether or not cont. 
added sugar/oth. sweetening  ... Core 1 100.0% 
F&V Areca Nuts 080290 Nuts, n.e.s., fresh/dried, whether or not 
shelled/peeled Core 1 100.0% 
F&V Artichokes-Fresh 070910 Globe artich okes, fresh/chilled Core 1 100.0% 
F&V Artichokes-
Frozen 071080 Vegetables, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen Core 1 100.0% 
F&V Artichokes-
Prep/Pres 200190 Vegetables, fruit, nuts & oth. edible parts of 
plants (excl. cucumbers & gh ... Core 1 24.1% 
F&V Artichokes-
Prep/Pres 200590 Vegetables & mixts. of vegetables (excl. of 
2005.10-2005.80), prepd./presvd ... Core 1 75.9% 
F&V Asparagus-Fresh 070920 Asparagus,  fresh/chilled Core 1 100.0% 
F&V Asparagus-
Prep/Pres 200560 Asparagus, presvd./presvd. othw. than by 
vinegar/acetic acid, not frozen, o ... Core 1 100.0% 
F&V Avocadoes-
Fresh/Dried 080440 Avocados, fresh/dried Core 1 100.0% 
F&V Avocados-
Prep/Pres 200899 Edible parts of plants, prepd./presvd., whether or 
not cont. added sugar/ot ... Core 1 100.0% 
F&V Bamboo 
Product-
Prep/Pres 071190 Vegetables (excl. olives/capers/cucumbers & 
gherkins/mushrooms), provisiona ... Core 1 8.4% 
F&V Bamboo 
Product-Prep/Pres 200490 Vegetables & mixts. of vegetables, 
presvd./presvd. othw. than by vinegar/ac ... Core 1 16.8% 
F&V Bamboo 
Product-
Prep/Pres 200590 Vegetables & mixts. of vegetables (excl. of 
2005.10-2005.80), prepd./presvd ... Core 1 74.8% 
F&V Bananas-
Fresh/Dried 080300 Bananas, incl. plantains, fresh/dried Core 1 100.0% 
F&V Beans, Broad-
Dried 071350 Broad beans (Vicia faba var. major) & horse beans 
(Vicia faba var. equina/v ... Core 1 100.0% 
F&V Beans, Fresh 070820 Beans (Vigna spp., Phaseolus spp.), 
shelled/unshelled, fresh/chilled Core 1 100.0% 
F&V Beans, Frozen 071022 Beans (V igna spp., Phaseolus spp.), 
shelled/unshelled, uncooked/cooked by s ... Core 1 100.0% 
F&V Beans, Kidney-
Dried 071333 Kidney beans, incl. white pea beans (Phaseolus 
vulgaris), dried, shelled, w ... Core 1 100.0%  TN/AG/26 
 Page 97 
 
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
F&V Beans, Other-
Dried 071390 Dried leguminous vegetables, n.e.s., shelled, 
whether or not skinned/split Core 1 100.0% 
F&V Beans, Other-
Prep/Pres 200490 Vegetables & mixts. of vegetables, 
presvd./presvd. othw. than by vinegar/ac ... Core 1 51.6% 
F&V Beans, Other-
Prep/Pres 200590 Vegetables & mixts. of vegetables (excl. of 
2005.10-2005.80), prepd./presvd ... Core 1 48.4% 
F&V Beans, Small 
Red-Dried 071332 Small red (Adzuki) beans (Phaseolus/Vigna 
angularis), dried, shelled, wheth ... Core 1 100.0% 
F&V Beans, Small 
Red-Frozen 071029 Leguminous vegetables (excl. of 0710.21 & 
0710.22), shelled/unshelled, unco ... Core 1 100.0% 
F&V Beans, Small 
Red-Flour 110610 Flour, meal & powder of the dried leguminous 
vegetables of 07.13 Core 1 100.0% 
F&V Beans, Small 
Red-Prep/Pres 200490 Vegetables & mixts. of vegetables, 
presvd./presvd. othw. than by vinegar/ac ... Core 1 6.8% 
F&V Beans, Small 
Red-Prep/Pres 200551 Beans (Vigna spp., Phaseolus spp.), shelled, 
prepd./presvd. othw. than by v ... Core 1 47.3% 
F&V Beans, Small 
Red-Prep/Pres 200559 Beans (excl. Vigna spp. , Phaseolus spp.), shelled, 
prepd./presvd. othw. tha ... Core 1 5.1% 
F&V Beans, Small 
Red-Prep/Pres 200600 Vegetables, fruit, nuts, fruit-peel & oth. parts of 
plants, presvd. by suga ... Core 1 0.4% 
F&V Beans, Small 
Red-Prep/Pres 210690 Food preps., n.e.s. Core 1 40.4% 
F&V Beans, Vigna 
mungo-Dried 071331 Beans of the species Vigna mungo 
(L.)/Hepper/Vigna radiata (L.) Wilczek, dr ... Core 1 100.0% 
F&V Beans, Vigna-
Phassolus-Dried 071339 Beans (Vigna spp., Phaseolus spp. (excl. of 
0713.31-0713.33)), dried, shell ... Core 1 100.0% 
F&V Beans, Vigna-
Phassolus-Prep/Pres 200551 Beans (Vigna spp., Phaseolus spp.), shelled, 
prepd./presvd. othw. than by v ... Core 1 64.2% 
F&V Beans, Vigna-
Phassolus-Prep/Pres 200559 Beans (excl. Vigna spp. , Phaseolus spp.), shelled, 
prepd./presvd. othw. tha ... Core 1 35.8% 
F&V Brazil nuts 080121 Brazil nuts, in shell Core 1 8.9% 
F&V Brazil nuts 080122 Brazil nuts, shelled Core 1 91.1% 
F&V Brussels 
sprouts-Fresh 070420 Brussels sprouts, fresh/chilled Core 1 100.0% 
F&V Cabbage, 
kohlrabi, and 
kale-Fresh 070490 Cabbages, kohlrabi, kale  & sim. edible brassicas 
(excl. cauliflowers, heade ... Core 1 100.0% 
F&V Carrots and 
Turnips-Fresh 070610 Carrots & turnips, fresh/chilled Core 1 100.0% 
F&V Cashew nuts 080131 Cashew nuts, in shell Core 1 30.7% 
F&V Cashew nuts 080132 Cashew nuts, shelled Core 1 69.3% 
F&V Cauliflower and 
Broccoli-Fresh 070410 Cauliflowers & headed broccoli, fresh/chilled Core 1 100.0% 
F&V Celery-Fresh 070940 Celery (excl. celeriac), fresh/chilled Core 1 100.0% 
F&V Cherries-Dried 081340 Dried fruit (excl. of 08.01-08.06 & 0813.10-
0813.30) Core 1 100.0% 
F&V Cherries-Fresh 080920 Cherries, fresh Core 1 100.0% 
F&V Cherries-Frozen 081190 Fruit & nuts, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ... Core 1 100.0% 
F&V Cherries-Juice 200980 Juice of any single fruit/veg. (excl. of 2009.11-
2009.79), unfermented & no ... Core 1 100.0% 
F&V Cherries-
Prep/Pres 081210 Cherries, provisionally presvd. but unsuit. in that 
state for immediate con ... Core 1 24.4% 
F&V Cherries-
Prep/Pres 200860 Cherries, prepd./presvd., whether or not cont. 
added sugar/oth. sweetening  ... Core 1 75.6% 
F&V Chestnuts 080240 Chestnuts (Castanea spp.) Core 1 100.0% 
F&V Chestnuts-
Frozen 081190 Fruit & nuts, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ... Core 1 100.0% TN/AG/26 
Page 98  
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
F&V Chestnuts-
Prep/Pres 200819 Nuts (excl. ground-nuts), incl. mixts., 
prepd./presvd., whether or not cont ... Core 1 100.0% 
F&V Chickpeas-Dried 071320 Chickpeas (garbanzos), dried, shelled, whether or 
not skinned/split Core 1 100.0% 
F&V Chicory, Other, 
Fresh 070529 Chicory (excl. witloof chicory), fresh/chilled Core 1 100.0% 
F&V Chicory, Witloof, 
Fresh 070521 Witloof chicory (Cichorium intybus var. foliosum), 
fresh/chilled Core 1 100.0% 
F&V Clementines-
Fresh 080520 Mandarins, incl. tangerines & satsumas; 
clementines, wilkings & sim. citrus ... Core 1 100.0% 
F&V Clementines-
Prep/Pres 200830 Citrus fruit, prepd./presvd., whether or not cont. 
added sugar/oth. sweeten ... Core 1 100.0% 
F&V Coconuts 080111 Coconuts, desiccated Core 1 74.5% 
F&V Coconuts 080119 Cocunuts, other than desiccated Core 1 25.5% 
F&V Coconut-Juice 200980 Juice of any single fruit/veg. (excl. of 2009.11-
2009.79), unfermented & no ... Core 1 100.0% 
F&V Coffee, Instant 210111 Extracts, essences & concs. of coffee Core 1 100.0% 
F&V Coffee 090111 Coffee, not roasted, not decaffeinated Core 1 86.3% 
F&V Coffee 090112 Coffee, not roasted, decaffeinated Core 1 3.4% 
F&V Coffee 090121 Coffee, roasted, not decaffeinated Core 1 9.0% 
F&V Coffee 090122 Coffee, roasted, decaffeinated Core 1 1.1% 
F&V Coffee 090190 Coffee husks & skins; coffee substitutes cont. 
coffee in any proportion Core 1 0.2% 
F&V Courgettes-
Fresh 070990 Vegetables, n.e.s., fresh/chilled Core 1 100.0% 
F&V Cucumbers-
Fresh 070700 Cucumbers & gherkins, fresh/chilled Core 1 100.0% 
F&V Cucumbers-
Prep/Pres 071140 Cucumbers & gherkins, provisionally presvd. Core 1 20.0% 
F&V Cucumbers-
Prep/Pres 200110 Cucumbers & gherkins, prepd./presvd. by 
vinegar/acetic acid Core 1 80.0% 
F&V Cut Flowers & 
Flower Buds 060310 Cut flowers & flower buds of a kind suit. for 
bouquets/ornamental purps., f ... Core 1 100.0% 
F&V Dates-
Fresh/Dried 080410 Dates, fresh/dried Core 1 100.0% 
F&V Day Lily-Dried 071290 Dried vegetables, n.e.s.; mixts. of dried 
vegetables, whole/cut/sliced/brok ... Core 1 100.0% 
F&V Eggplant-Fresh 070930 Aubergines (egg-plants), fresh/chilled Core 1 100.0% 
F&V Figs-Fresh/Dried 080420 Figs, fresh/dried Core 1 100.0% 
F&V Garlic-Dried 071290 Dried vegetables, n.e.s.; mixts. of dried 
vegetables, whole/cut/sliced/brok ... Core 1 100.0% 
F&V Garlic-Fresh 070320 Garlic, fresh/chilled Core 1 100.0% 
F&V Garlic-Frozen 071080 Vegetables, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen Core 1 100.0% 
F&V Garlic-Prep/Pres 071190 Vegetables (excl. olives/capers/cucumbers & 
gherkins/mushrooms), provisiona ... Core 1 0.1% 
F&V Garlic-Prep/Pres 200190 Vegetables, fruit, nuts & oth. edible parts of 
plants (excl. cucumbers & gh ... Core 1 99.9% 
F&V Ginger 091010 Ginger Core 1 100.0% 
F&V Ginseng-roots 121120 Ginseng roots Core 1 100.0% 
F&V Ginseng-extracts 130219 Vegetable sa ps & extracts (excl. of 1302.11-
1302.14) Core 1 100.0% 
F&V Ginseng-
beverage&wine 220290 Non-alcoholic beverages other than waters of 
2202.10 (not incl. fruit/veg.  ... Core 1 100.0% 
F&V Ginseng-
beverage&wine 220870 Liqueurs & cordials Core 1 0.0% 
F&V Ginseng-
prep/pres 210690 Food preps., n.e.s. Core 1 100.0% 
F&V Ginseng-
prep/pres 330190 Extracted oleoresins; concs. of essential oils in 
fats/fixed oils/waxes/the ... Core 1 0.0%  TN/AG/26 
 Page 99 
 
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
F&V Grapefruit-
Fresh/Dried 080540 Grapefruit, fresh/dried Core 1 100.0% 
F&V Grapefruit-Juice 200921 Grapefruit juice, of a Brix value not >20, 
unfermented & not cont. added sp ... Core 1 25.3% 
F&V Grapefruit-Juice 200929 Grapefruit juice (excl. of 2009.21), unfermented & 
not cont. added spirit,  ... Core 1 74.7% 
F&V Grapes-Dried 080620 Grapes, dried Core 1 100.0% 
F&V Grapes-Fresh 080610 Grapes, fresh Core 1 100.0% 
F&V Grapes-Juice 200961 Grape juice, incl . grape must, of a Brix value not 
>30, unfermented & not c ... Core 1 13.1% 
F&V Grapes-Juice 200969 Grape juice, incl. grape must (excl. of 2009.61), 
unfermented & not cont. a ... Core 1 62.4% 
F&V Grapes-Juice 220430 Grape must (excl. of 20.09) Core 1 24.5% 
F&V Guavas-
Fresh/Dried 080450 Guavas, mangoes & mangosteens, fresh/dried Core 1 100.0% 
F&V Hazelnuts 080221 Hazelnuts/filberts (Corylus spp.), in shell Core 1 6.0% 
F&V Hazelnuts 080222 Hazelnuts/filberts (Corylus spp.), shelled Core 1 94.0% 
F&V Homogenized 
Vegetables 200510 Homogenised vegetables, prepd./presvd. othw. 
than by vinegar/acetic acid, n ... Core 1 100.0% 
F&V Jams/Purees 200791 Citrus fruit preps. (excl. homogenized), obt. by 
cooking, whether or not co ... Core 1 6.0% 
F&V Jams/Purees 200799 Preparations of fruit (excl. citrus fruit; excl. 
homogenized), obt. by cook ... Core 1 94.0% 
F&V Jujubes-Dried 081340 Dried fruit (excl. of 08.01-08.06 & 0813.10-
0813.30) Core 1 100.0% 
F&V Jujubes-Fresh 081090 Fresh fruit, n.e.s. Core 1 100.0% 
F&V Jujubes-Frozen 081190 Fruit & nu ts, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ... Core 1 100.0% 
F&V Kiwi  081050 Kiwifruit, fresh Core 1 100.0% 
F&V Konnyaku 121299 Vegetable prods., incl. sugar cane & unroasted 
chicory roots (Chicorium int ... Core 1 19.5% 
F&V Konnyaku 210690 Food preps., n.e.s. Core 1 80.5% 
F&V Leeks, Fresh 070390 Leeks & oth. alliaceou s vegetables, fresh/chilled Core 1 100.0% 
F&V Lemons-Fresh 080550 Lemons (Citru s limon/limonum) & limes (Citrus 
aurantifolia/latifolia), fres ... Core 1 100.0% 
F&V Lemons-Juice 200931 Juice of any single citrus fruit other than 
orange/grapefruit, of a Brix va ... Core 1 33.4% 
F&V Lemons-Juice 200939 Juice of any single citrus fruit other than 
orange/grapefruit (excl. of 200 ... Core 1 66.6% 
F&V Lemons-
Prep/Pres 200830 Citrus fruit, prepd./presvd., whether or not cont. 
added sugar/oth. sweeten ... Core 1 100.0% 
F&V Lentils-Dried 071340 Lentils, dried, shelled, whether or not 
skinned/split Core 1 100.0% 
F&V Lettuce-Fresh 070511 Cabbage lettuce (hea d lettuce), fresh/chilled Core 1 52.1% 
F&V Lettuce-Fresh 070519 Lettuce (Lactuca sativa) (excl. cabbage lettuce) 
fresh/chilled Core 1 47.9% 
F&V Litchies-Fresh 081090 Fresh fruit, n.e.s. Core 1 100.0% 
F&V Lungngans 
(Longans)-Dried 081340 Dried fruit (excl. of 08.01-08.06 & 0813.10-
0813.30) Core 1 100.0% 
F&V Lungngans 
(Longans)-Fresh 081090 Fresh fruit, n.e.s. Core 1 100.0% 
F&V Mangoes-
Fresh/Dried 080450 Guavas, mangoes & mangosteens, fresh/dried Core 1 100.0% 
F&V Mangoes-Juice 200980 Juice of any single fruit/veg. (excl. of 2009.11-
2009.79), unfermented & no ... Core 1 100.0% 
F&V Mangoes-
Prep/Pres 200899 Edible parts of plants, prepd./presvd., whether or 
not cont. added sugar/ot ... Core 1 100.0% 
F&V Manioc 071410 Manioc (cassava) Core 1 100.0% TN/AG/26 
Page 100  
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
F&V Mixed 
Condiments & Mixed 
Seasonings 210390 Sauces & preps. therefor, n.e.s.; mixed 
condiments & mixed seasonings, n.e. ... Core 1 100.0% 
F&V Mixed Fruit-
Prep/Pres 200892 Mixtures of edible parts of plants (excl. of 
2008.19), prepd./presvd., whet ... Core 1 100.0% 
F&V Mixed Juices 200990 Mixtures of juices, unfermented & not cont. 
added spirit, whether or not co ... Core 1 100.0% 
F&V Mixed 
Processed Vegetables 200590 Vegetables & mixts. of vegetables (excl. of 
2005.10-2005.80), prepd./presvd ... Core 1 100.0% 
F&V Mixed 
Vegetables 071090 Mixtures of vegetables, uncooked/cooked by 
steaming/boiling in water, froze ... Core 1 100.0% 
F&V Mushrooms,  
Agaricus-Dried 071231 Mushrooms of the genus Agaricus, dried, 
whole/cut/sliced/broken/in powder b ... Core 1 100.0% 
F&V Mushrooms,  
Agaricus-Fresh 070951 Mushrooms of the genus Agar icus, fresh/chilled Core 1 100.0% 
F&V Mushrooms,  
Agaricus-Frozen 071080 Vegetables, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen Core 1 100.0% 
F&V Mushrooms,  
Agaricus-Prep/Pres 071151 Mushrooms of the genu s Agaricus, provisionally 
presvd. Core 1 4.3% 
F&V Mushrooms,  
Agaricus-Prep/Pres 200310 Mushrooms of the genu s Agaricus, prepd./presvd. 
othw. than by vinegar/aceti ... Core 1 95.7% 
F&V Mushrooms, 
Oak-Dried 071239 Mushrooms (excl. of 0712.31-0712.33) & truffles, 
dried, whole/cut/sliced/br ... Core 1 100.0% 
F&V Mushrooms, 
Oak-Fresh 070959 Mushrooms other than of the genus Agaricus, 
fresh/chilled Core 1 100.0% 
F&V Mushrooms, 
Oak-Prep/Pres 200390 Mushrooms other than of the genus Agaricus, 
prepd./presvd. othw. than by vi ... Core 1 100.0% 
F&V Mushrooms, 
Other (excl. Oak/Shiitake)-Dried 071239 Mushrooms (excl. of 0712.31-0712.33) & truffles, 
dried, whole/cut/sliced/br ... Core 1 100.0% 
F&V Mushrooms, 
Other (excl. 
Oak/Shiitake)-Fresh 070959 Mushrooms other than of the genus Agaricus, 
fresh/chilled Core 1 100.0% 
F&V Mushrooms, 
Other (excl. Oak/Shiitake)-
Prep/Pres 200390 Mushrooms other than of the genus Agaricus, 
prepd./presvd. othw. than by vi ... Core 1 100.0% 
F&V Mushrooms, 
Shiitake-Dried 071239 Mushrooms (excl. of 0712.31-0712.33) & truffles, 
dried, whole/cut/sliced/br ... Core 1 100.0% 
F&V Mushrooms, 
Shiitake-Fresh 070959 Mushrooms other than of the genus Agaricus, 
fresh/chilled Core 1 100.0% 
F&V Mushrooms, 
Shiitake-Prep/Pres 200390 Mushrooms other than of the genus Agaricus, 
prepd./presvd. othw. than by vi ... Core 1 100.0% 
F&V Olives-Prep/Pres 071120 Olives, provisionally presvd. Core 1 11.1% 
F&V Olives-Prep/Pres 200570 Olives, presvd./presvd. othw. than by 
vinegar/acetic acid, not frozen, othe ... Core 1 88.9% 
F&V Onions-Dried 071220 Onions, dried, whole/cut/sliced/broken/in 
powder but not furth. prepd. Core 1 100.0% 
F&V Onions-Fresh 070310 Onions & shallots, fresh/chilled Core 1 100.0% 
F&V Onions-Frozen 071080 Vegetables, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen Core 1 100.0% 
F&V Onions-
Prep/Pres 071190 Vegetables (excl. olives/capers/cucumbers & 
gherkins/mushrooms), provisiona ... Core 1 100.0%  TN/AG/26 
 Page 101 
 
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
F&V Onions-
Prep/Pres 200190 Vegetables, fruit, nuts & oth. edible parts of 
plants (excl. cucumbers & gh ... Core 1 100.0% 
F&V Onions-Seed 120991 Vegetable seeds, of a kind used for sowing Core 1 100.0% 
F&V Oranges-
Fresh/Dried 080510 Oranges, fresh/dried Core 1 100.0% 
F&V Oranges-Juice 200911 Orange juice, frozen, unfermented & not cont. 
added spirit, whether or not  ... Core 1 33.9% 
F&V Oranges-Juice 200912 Orange juice, not frozen, of a Brix value not >20, 
unfermented & not cont.  ... Core 1 11.4% 
F&V Oranges-Juice 200919 Orange juice, not frozen (excl. of 2009.19), 
unfermented & not cont. added  ... Core 1 39.6% 
F&V Oranges-Juice 210690 Food preps., n.e.s. Core 1 6.5% 
F&V Oranges-Juice 220290 Non-alcoholic beverages other than waters of 
2202.10 (not incl. fruit/veg.  ... Core 1 8.6% 
F&V Oranges-
Prep/Pres 081290 Fruit (excl. cherries) & nuts, provisionally presvd. 
but unsuit. in that st ... Core 1 20.7% 
F&V Oranges-
Prep/Pres 200830 Citrus fruit, prepd./presvd., whether or not cont. 
added sugar/oth. sweeten ... Core 1 79.3% 
F&V Other Citrus 
Fruit (excl. Clementines)-Fresh/Dried 080520 Mandarins, incl. tangerines & satsumas; 
clementines, wilkings & sim. citrus ... Core 1 100.0% 
F&V Other Citrus 
Fruit (excl. 
Pomelos)-
Fresh/Dried 080590 Citrus fruit (excl. of 0805.10-0805.50), fresh/dried Core 1 100.0% 
F&V Other Fruit 
(excl. Apples/Avocado
s/Mangoes)-
Prep/pres 200899 Edible parts of plants, prepd./presvd., whether or 
not cont. added sugar/ot ... Core 1 100.0% 
F&V Other Fruit 
(excl. Cherries/Pears/Jujubes/Lungnga
ns/Persimmons, 
Other)-Dried 081340 Dried fruit (excl. of 08.01-08.06 & 0813.10-
0813.30) Core 1 100.0% 
F&V Other Fruit 
(excl. Cherries/Pineap
ples/Chestnuts/
Jujubes/Peaches/Nect/Pinenuts)-Frozen 081190 Fruit & nuts, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ... Core 1 100.0% 
F&V Other Fruit 
(excl. Jujubes, 
Litches, 
Lungngans (Longans), Persimmons, 
Starfruit, Sweet 
Sop)-Fresh 081090 Fresh fruit, n.e.s. Core 1 100.0% 
F&V Other 
Leguminous Vegetables-Frozen 071029 Leguminous vegetables (excl. of 0710.21 & 
0710.22), shelled/unshelled, unco ... Core 1 100.0% 
F&V Other Melons-
Fresh 080719 Melons (excl. watermelons), fresh Core 1 100.0% 
F&V Other Roots and 
Tubers 071490 Arrowroot, salep, Jerusalem artichokes & sim. 
roots & tubers with high star ... Core 1 100.0% TN/AG/26 
Page 102  
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
F&V Other 
Vegetables (excl. 
Courgettes)-
Fresh 070990 Vegetables, n.e.s., fresh/chilled Core 1 100.0% 
F&V Papaws 
(Papayas)-Fresh 080720 Papaws (papayas), fresh/dried Core 1 100.0% 
F&V Parts of Plants, 
Preserved by Sugar 200600 Vegetables, fruit, nuts, fruit-peel & oth. parts of 
plants, presvd. by suga ... Core 1 100.0% 
F&V Peaches/Nect-
Fresh 080930 Peaches, incl. nectarines, fresh Core 1 100.0% 
F&V Peaches/Nect-
Frozen 081190 Fruit & nuts, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ... Core 1 100.0% 
F&V Peaches/Nect-
Prep/Pres 200870 Peaches, incl. nectarines, prepd./presvd., whether 
or not cont. added sugar ... Core 1 100.0% 
F&V Pears-Dried 081340 Dried fruit (excl. of 08.01-08.06 & 0813.10-
0813.30) Core 1 100.0% 
F&V Pears-Fresh 080820 Pears & quinces, fresh Core 1 100.0% 
F&V Pears-Juice 200980 Juice of any single fruit/veg. (excl. of 2009.11-
2009.79), unfermented & no ... Core 1 100.0% 
F&V Pears-Prep/Pres 200840 Pears, prepd./presvd., whether or not cont. added 
sugar/oth. sweetening mat ... Core 1 100.0% 
F&V Peas, Fresh 070810 Peas (Pisum sativum), shelled/unshelled, 
fresh/chilled Core 1 100.0% 
F&V Peas, Frozen 071021 Peas (Pisum sativum), shelled/unshelled, 
uncooked/cooked by steaming/boilin ... Core 1 100.0% 
F&V Peas-Dried 071310 Peas (Pisum sativum), dried, shelled, whether or 
not skinned/split Core 1 100.0% 
F&V Pepper, Black 090411 Pepper (genus Piper), neither crushed/ground Core 1 85.1% 
F&V Pepper, Black 090412 Pepper (genus Piper), crushed/ground Core 1 14.9% 
F&V Peppers-Dried 090420 Fruits of the genera Capsicum/Pimenta, 
dried/crushed/ground Core 1 100.0% 
F&V Peppers-Fresh 070960 Fruits of the genera Capsicum/Pimenta, 
fresh/chilled Core 1 100.0% 
F&V Peppers-Frozen 071080 Vegetables, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen Core 1 100.0% 
F&V Peppers-
Prep/Pres 071190 Vegetables (excl. olives/capers/cucumbers & 
gherkins/mushrooms), provisiona ... Core 1 18.1% 
F&V Peppers-
Prep/Pres 210390 Sauces & preps. therefor, n.e.s.; mixed 
condiments & mixed seasonings, n.e. ... Core 1 81.9% 
F&V Persimmons, 
Other (excl. Sweet)-Dried 081340 Dried fruit (excl. of 08.01-08.06 & 0813.10-
0813.30) Core 1 100.0% 
F&V Persimmons, 
Other (excl. 
Sweet)-Fresh 081090 Fresh fruit, n.e.s. Core 1 100.0% 
F&V Persimmons, 
Sweet-Fresh 081090 Fresh fruit, n.e.s. Core 1 100.0% 
F&V Pineapples-
Fresh 080430 Pineapples, fresh/dried Core 1 100.0% 
F&V Pineapples-
Frozen 081190 Fruit & nuts, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ... Core 1 100.0% 
F&V Pineapples-Juice 200941 Pineapple juice, of a Brix value not >20, 
unfermented & not cont. added spi ... Core 1 16.7% 
F&V Pineapples-Juice 200949 Pineapple juice (excl. of 2009.41), unfermented & 
not cont. added spirit, w ... Core 1 83.3% 
F&V Pineapples-
Prep/Pres 200820 Pineapples, prepd./presvd., whether or not cont. 
added sugar/oth. sweetenin ... Core 1 100.0% 
F&V Pinenuts-Fresh 080290 Nuts, n.e.s., fresh/dried, whether or not 
shelled/peeled Core 1 100.0%  TN/AG/26 
 Page 103 
 
 
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Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
F&V Pinenuts-Frozen 081190 Fruit & nuts, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ... Core 1 100.0% 
F&V Pistachios 080250 Pistachios Core 1 100.0% 
F&V Plums-Dried 081320 Prunes, dried Core 1 100.0% 
F&V Plums-Fresh 080940 Plums & sloes, fresh Core 1 100.0% 
F&V Pomelos-
Fresh/Dried 080590 Citrus fruit (excl. of 0805.10-0805.50), fresh/dried Core 1 100.0% 
F&V Potatoes-Dried 071290 Dried vegetables, n.e.s.; mixts. of dried vegetables, 
whole/cut/sliced/brok ...   0 0.0% 
F&V Potatoes-Dried 110510 Flour, meal & powder of potatoes Core 1 29.1% 
F&V Potatoes-Dried 110520 Flakes, granules & pellets of potatoes Core 1 70.9% 
F&V Potatoes-Dried 190590 Bread, pastry, cakes, bi scuits & oth. bakers' wares 
n.e.s. in Ch.19, whethe ...   0 0.0% 
F&V Potatoes-Fresh 070110 Seed potatoes, fresh/chilled Core 1 26.6% 
F&V Potatoes-Fresh 070190 Potatoes other than seed potatoes, fresh/chilled Core 1 73.4% 
F&V Potatoes-Frozen 071010 Potatoes, uncooked/cooked by steaming/boiling 
in water, frozen Core 1 100.0% 
F&V Potatoes-Frozen 071090 Mixtures of vegetables, uncooked/cooked by 
steaming/boiling in water, froze ... Core 1 0.0% 
F&V Potatoes-
Prep/Pres 200410 Potatoes, prepd./presvd. othw. than by 
vinegar/acetic acid, frozen, other t ... Core 1 73.7% 
F&V Potatoes-
Prep/Pres 200520 Potatoes, prepd./presvd. othw. than by 
vinegar/acetic acid, not frozen, oth ... Core 1 26.3% 
F&V Potted Plants 060290 Live plants, n.e.s., incl. their roots; mushroom 
spawn Core 1 100.0% 
F&V Pumpkins-Seeds 120991 Vegetable seeds, of a kind used for sowing Core 1 100.0% 
F&V Raspberries-
Fresh 081020 Raspberries, blackberries, mulberries & 
loganberries, fresh Core 1 100.0% 
F&V Raspberries-
Frozen 081120 Raspberries, black berries, mulberries, 
loganberries, black/white/red curran ... Core 1 100.0% 
F&V Raspberries-
Prep/Pres 081290 Fruit (excl. cherries) & nuts, provisionally presvd. 
but unsuit. in that st ... Core 1 100.0% 
F&V Roses 060240 Roses, grafted/not, incl. their roots Core 1 100.0% 
F&V Salad Beetroot, 
etc. Fresh 070690 Salad beetroot, salsify, celeriac, radishes & sim. 
edible roots (excl. carr ... Core 1 100.0% 
F&V Soya Sauce 210310 Soya sauce Core 1 100.0% 
F&V Spinach-Fresh 070970 Spinach, New Zealand spinach & orache spinach 
(garden spinach), fresh/chill ... Core 1 100.0% 
F&V Spinach-Frozen 071030 Spinach, New Zealand spinach & orache spinach 
(garden spinach), uncooked/co ... Core 1 100.0% 
F&V Starfruit-Fresh 081090 Fresh fruit, n.e.s. Core 1 100.0% 
F&V Strawberries-
Fresh 081010 Strawberries, fresh Core 1 100.0% 
F&V Strawberries-
Frozen 081110 Strawberries, uncooked/cooked by 
steaming/boiling in water, frozen, whether ... Core 1 100.0% 
F&V Strawberries-
Prep/Pres 081290 Fruit (excl. cherries) & nuts, provisionally presvd. 
but unsuit. in that st ... Core 1 10.9% 
F&V Strawberries-
Prep/Pres 200880 Strawberries, prepd./presvd., whether or not 
cont. added sugar/oth. sweeten ... Core 1 89.1% 
F&V Sweet Maize-
Frozen 071040 Sweet corn, uncooked/cooked by 
steaming/boiling in water, frozen Core 1 100.0% 
F&V Sweet Maize-
Processed 200190 Vegetables, fruit, nuts & oth. edible parts of 
plants (excl. cucumbers & gh ... Core 1 0.0% 
F&V Sweet Maize-
Processed 200490 Vegetables & mixts. of vegetables, 
presvd./presvd. othw. than by vinegar/ac ... Core 1 6.0% 
F&V Sweet Maize-
Processed 200580 Sweet corn (Zea mays var. saccharata), 
prepd./presvd. othw. than by vinegar ... Core 1 94.0% 
F&V Sweet Potatoes 071420 Sweet potatoes Core 1 100.0% 
F&V Sweet Sop-Fresh 081090 Fresh fruit, n.e.s. Core 1 100.0% 
F&V Tea 090210 Tea, green (not fermented), whether or not 
flavoured, in immediate packings ... Core 1 6.7% TN/AG/26 
Page 104  
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
F&V Tea 090220 Tea, green (not fermented), whether or not 
flavoured, in immediate packings ... Core 1 7.5% 
F&V Tea 090230 Tea, black (fermented) & partly fermented tea, 
whether or not flavoured, in ... Core 1 27.4% 
F&V Tea 090240 Tea, black (fermented) & partly fermented tea, 
whether or not flavoured, in ... Core 1 58.4% 
F&V Tomatoes-Dried 071290 Dried vegetables, n.e.s.; mixts. of dried 
vegetables, whole/cut/sliced/brok ... Core 1 100.0% 
F&V Tomatoes-Fresh 070200 Tomatoes, fresh/chilled Core 1 100.0% 
F&V Tomatoes-
Frozen 071080 Vegetables, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen Core 1 100.0% 
F&V Tomatoes-Juice 200950 Tomato juice, unfermented & not cont. added 
spirit, whether or not cont. ad ... Core 1 100.0% 
F&V Tomatoes-
Prep/Pres 200210 Tomatoes, prepd./presvd. othw. than by 
vinegar/acetic acid, whole/in pieces ... Core 1 22.6% 
F&V Tomatoes-
Prep/Pres 200290 Tomatoes, prepd./presvd. othw. than by 
vinegar/acetic acid, other than whol ... Core 1 77.4% 
F&V Tomatoes-
Sauces 210320 Tomato ketchup & oth. tomato sauces Core 1 100.0% 
F&V Walnuts 080231 Walnuts, in shell Core 1 32.7% 
F&V Walnuts 080232 Walnuts, shelled Core 1 67.3% 
F&V Watermelons-
Fresh 080711 Watermelons, fresh Core 1 100.0% 
F&V Watermelons-
Seeds 120999 Seeds, n.e.s., of a kind used for sowing Core 1 100.0% 
F&V Yeast 210210 Active yeasts Core 1 62.9% 
F&V Yeast 210220 Inactive yeasts; oth. si ngle-cell micro-organisms, 
dead (excl. vaccines of  ... Core 1 28.8% 
F&V Yeast 210230 Prepared baking powders Core 1 8.3% 
Fibers Silk 500100 Silk-worm cocoons suit. for reeling Core 1 1.0% 
Fibers Silk 500200 Raw silk (not thrown) Core 1 99.0% 
Meats Beef and Veal 010210 Live bovine animals: pure-bred breeding animals   0 0.0% 
Meats Beef and Veal 010290 Live bovine animals ot her than pure-bred breeding 
animals   0 0.0% 
Meats Beef and Veal 020110 Carcasses/half-carca sses of bovine animals, 
fresh/chilled Core 1 0.8% 
Meats Beef and Veal 020120 Meat of bovine animals, fresh/chilled (excl. of 
0201.10), bone-in Core 1 1.5% 
Meats Beef and Veal 020130 Meat of bovine animals, fresh/chilled, boneless Core 1 39.3% 
Meats Beef and Veal 020210 Carcasses/half-carcasses of bovine animals, frozen Core 1 1.2% 
Meats Beef and Veal 020220 Meat of bovine animals, frozen (excl. of 0202.10), 
bone-in Core 1 3.5% 
Meats Beef and Veal 020230 Meat of bovine animals, frozen, boneless Core 1 44.8% 
Meats Beef and Veal 021020 Meat of bovine animals, salted/in 
brine/dried/smoked Core 1 0.5% 
Meats Beef and Veal 021099 Meat & edible meat offal, n.e.s., salted/in 
brine/dried/smoked, incl. edibl ...   2 0.1% 
Meats Beef and Veal 160100 Sausages & sim. prods. , of meat/meat offal/blood; 
food preps. based on thes ...   2 1.0% 
Meats Beef and Veal 160210 Homogenised preps. of prepd./presvd. 
meat/meat offal Core 1 0.1% 
Meats Beef and Veal 160250 Prepared/presvd. preps. of bovine animals (excl. 
homogenised preps.), incl. ... Core 1 7.2% 
Meats Meat Offals 020610 Edible offal of bovi ne animals, fresh/chilled Core 1 9.0% 
Meats M 020621 Tongues of bovine animals, frozen Core 1 11.1% 
Meats  020622 Livers of bovine animals, frozen Core 1 5.2% 
Meats  020629 Edible offal of bovine animals (excl. tongues & 
livers), frozen Core 1 28.4% 
Meats  020630 Edible offal of swine, fresh/chilled Core 1 2.3% 
Meats  020641 Livers of swine, frozen Core 1 1.7% 
Meats  020649 Edible offal of swine (excl. liver), frozen Core 1 32.1%  TN/AG/26 
 Page 105 
 
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
Meats  020680 Edible offal, n.e.s., fresh/chilled Core 1 0.5% 
Meats  020690 Edible offal, n.e.s., frozen Core 1 2.3% 
Meats  020734 Fatty livers of ducks/geese/guinea fowls, 
fresh/chilled Core 1 2.0% 
Meats  160220 Prepared/presvd. preps. of liver of any animal Core 1 2.7% 
Meats  160290 Preparations of prepd./presvd. meat (excl. of 
1602.10-1602.50), incl. preps ... Core 1 2.7% 
Meats Pork and 
Wildboar 010391 Live swine other than pure-bred breeding animals, 
weighing < 50kg   0 0.0% 
Meats Pork and 
Wildboar 010392 Live swine other than pure-bred breeding animals, 
weighing 50kg/more   0 0.0% 
Meats Pork and 
Wildboar 020311 Carcasses/half-carcasses of swine, fresh/chilled Core 1 2.0% 
Meats Pork and 
Wildboar 020312 Hams, shoulders & cuts thereof , fresh/chilled, 
bone-in Core 1 4.2% 
Meats Pork and 
Wildboar 020319 Meat of swine (excl. carcasses/half-
carcasses/hams/shoulders & cuts thereof ... Core 1 16.6% 
Meats Pork and 
Wildboar 020321 Carcasses/half-carcasses of swine, frozen Core 1 2.9% 
Meats Pork and 
Wildboar 020322 Hams, shoulders & cuts thereof , frozen, bone-in Core 1 2.4% 
Meats Pork and 
Wildboar 020329 Meat of swine (excl. carcasses/half-
carcasses/hams/shoulders & cuts thereof ... Core 1 53.5% 
Meats Pork and 
Wildboar 020900 Pig fat (free of lean meat) & poultry fat (not 
rendered/othw. extracted), f ...   2 2.2% 
Meats Pork and 
Wildboar 021011 Hams, shoulders & cuts thereof , of swine, 
salted/in brine/dried/smoked, bo ... Core 1 0.4% 
Meats Pork and 
Wildboar 021012 Bellies (streaky) & cuts thereof , of swine, 
salted/in brine/dried/smoked Core 1 1.5% 
Meats Pork and 
Wildboar 021019 Meat of swine (excl. hams/shoulders & cuts 
thereof & bellies (streaky) & cu ... Core 1 1.9% 
Meats Pork and 
Wildboar 021099 Meat & edible meat offal, n.e.s., salted/in 
brine/dried/smoked, incl. edibl ...   2 0.1% 
Meats Pork and 
Wildboar 160100 Sausages & sim. prods. , of meat/meat offal/blood; 
food preps. based on thes ...   2 3.7% 
Meats Pork and 
Wildboar 160210 Homogenised preps. of prepd./presvd. 
meat/meat offal Core 1 0.1% 
Meats Pork and 
Wildboar 160241 Hams & cuts thereof Core 1 2.2% 
Meats Pork and 
Wildboar 160242 Shoulders of swine & cuts thereof Core 1 1.5% 
Meats Pork and 
Wildboar 160249 Prepared/presvd. preps. of swine (excl. of 
1602.41, 1602.42 & homogenised p ... Core 1 4.8% 
Meats Poultry 010511 Live fowls of species Gallus domesticus, weighing 
not >185g   0 0.0% 
Meats Poultry 010512 Live turkeys, weighing not >185g   0 0.0% 
Meats Poultry 010519 Live ducks/geese/guinea fowls,  weighing not >185g   0 0.0% 
Meats Poultry 010592 Live fowls of species Gallus domesticus, weighing 
>185g but not >2000g   0 0.0% 
Meats Poultry 010593 Live fowls of species Gallus domesticus, weighing 
>2000g   0 0.0% 
Meats Poultry 010599 Live ducks/geese/turke ys/guinea fowls, weighing 
>185g   0 0.0% 
Meats Poultry 020711 Meat of fowls of sp ecies Gallus domesticus, not 
cut in pieces, fresh/chille ... Core 1 1.3% 
Meats Poultry 020712 Meat of fowls of sp ecies Gallus domesticus, not 
cut in pieces, frozen Core 1 12.8% 
Meats Poultry 020713 Cuts & edible offal of species Gallus domesticus, 
fresh/chilled Core 1 3.2% 
Meats Poultry 020714 Cuts & edible offal of species Gallus domesticus, 
frozen Core 1 46.7% TN/AG/26 
Page 106  
 
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Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
Meats Poultry 020724 Meat of turkeys, not cut in pieces, fresh/chilled Core 1 0.3% 
Meats Poultry 020725 Meat of turkeys, not cut in pieces, frozen Core 1 0.5% 
Meats Poultry 020726 Cuts & edible offal of turkey, fresh/chilled Core 1 2.1% 
Meats Poultry 020727 Cuts & edible offal of turkey, frozen Core 1 4.3% 
Meats Poultry 020732 Meat of ducks/geese/guinea fowls, not cut in 
pieces, fresh/chilled Core 1 0.4% 
Meats Poultry 020733 Meat of ducks/geese/guinea fowls, not cut in 
pieces, frozen Core 1 0.4% 
Meats Poultry 020735 Meat & edible meat offal of ducks/geese/guinea 
fowls (excl. of 0207.32-0207 ... Core 1 0.4% 
Meats Poultry 020736 Meat & edible meat offal of ducks/geese/guinea 
fowls (excl. of 0207.32-0207 ... Core 1 1.6% 
Meats Poultry 020900 Pig fat (free of lean meat) & poultry fat (not 
rendered/othw. extracted), f ...   2 0.1% 
Meats Poultry 021099 Meat & edible meat offal, n.e.s., salted/in 
brine/dried/smoked, incl. edibl ... Core 1 1.3% 
Meats Poultry 160100 Sausages & sim. prods. , of meat/meat offal/blood; 
food preps. based on thes ...   2 1.5% 
Meats Poultry 160210 Homogenised preps. of prepd./presvd. 
meat/meat offal Core 1 0.1% 
Meats Poultry 160231 Prepared/presvd. preps. of turkey (excl. 
homogenised preps.) Core 1 2.8% 
Meats Poultry 160232 Prepared/presvd. prep s. of fowls of the genus 
Gallus domesticus (excl. homo ... Core 1 18.9% 
Meats Poultry 160239 Prepared/presvd. preps. of fowls of 01.05 (excl. 
turkey & fowls of the genu ... Core 1 1.3% 
Meats Reindeer 010619 Live mammals, n.e.s.   0 0.0% 
Meats Reindeer 020890 Meat & edible meat offal, n.e.s., 
fresh/chilled/frozen Core 1 100.0% 
Meats Sheep Meat 010410 Live sheep   0 0.0% 
Meats Sheep Meat 010420 Live goats   0 0.0% 
Meats Sheep Meat 020410 Carcasses/half-carcasses of lamb, fresh/chilled Core 1 3.8% 
Meats Sheep Meat 020421 Carcasses/half-carcasse s of sheep (excl. lamb), 
fresh/chilled Core 1 2.4% 
Meats Sheep Meat 020422 Meat of sheep (excl. lamb & carcasses), 
fresh/chilled, bone-in Core 1 19.7% 
Meats Sheep Meat 020423 Meat of sheep (excl. lamb), fresh/chilled, boneless Core 1 7.2% 
Meats Sheep Meat 020430 Carcasses/half-carcasses of lamb, frozen Core 1 3.4% 
Meats Sheep Meat 020441 Carcasses/half-carcasse s of sheep (excl. lamb), 
frozen Core 1 2.7% 
Meats Sheep Meat 020442 Meat of sheep (excl. lamb & carcasses), frozen, 
bone-in Core 1 40.0% 
Meats Sheep Meat 020443 Meat of sheep (excl. lamb), frozen, boneless Core 1 17.5% 
Meats Sheep Meat 020450 Meat of goats, fresh/chilled/frozen Core 1 3.1% 
Meats Sheep Meat 021099 Meat & edible meat offal, n.e.s., salted/in 
brine/dried/smoked, incl. edibl ...   2 0.2% 
Meats Sheep Meat 160290 Preparations of prepd. /presvd. meat (excl. of 
1602.10-1602.50), incl. preps ...   0 0.0% 
Oils Canola 120510 Low erucic acid rape/colza seeds, whether or not 
broken Core 1 59.7% 
Oils Canola 120590 Rape/colza seeds (excl. low erucic acid), whether 
or not broken Core 1 7.9% 
Oils Canola 151411 Low erucic acid rape/colza oil, crude Core 1 16.4% 
Oils Canola 151419 Low erucic acid rape/colza oil, other than crude, & 
fractions thereof , whe ... Core 1 12.5% 
Oils Canola 151491 Rape/colza oil (excl. low erucic acid oil) & mustard 
oil, crude Core 1 2.1% 
Oils Canola 151499 Rape/colza oil (excl. low erucic acid oil) & mustard 
oil, other than crude, ... Core 1 1.4% 
Oils Canola 230641 Oil-cake & oth. solid residues, whether or not 
ground/in pellets , from extr ...   0 0.0%  TN/AG/26 
 Page 107 
 
 
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Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
Oils Canola 230649 Oil-cake & oth. solid residues, whether or not 
ground/in pellets , from extr ...   0 0.0% 
Oils Castor 120730 Castor oil seeds, whether or not broken Core 1 2.2% 
Oils Castor 151530 Castor oil & fractions thereof , whether or not ref. 
but not chemically mod ... Core 1 97.8% 
Oils Copra 120300 Copra Core 1 4.8% 
Oils Copra 151311 Coconut (copra) oil, crude Core 1 66.2% 
Oils Copra 151319 Coconut (copra) oil, other than crude, & fractions 
thereof , whether or not ... Core 1 29.0% 
Oils Corn Oil 151521 Maize (corn) oil, crude Core 1 38.8% 
Oils Corn Oil 151529 Maize (corn) oil, other than crude, & fractions 
thereof , whether or not re ... Core 1 61.2% 
Oils Cotton-seed 120720 Cotton seeds, whether or not broken Core 1 71.5% 
Oils Cotton-seed 151221 Cotton seed oil, crude, whether or not gossypol 
has been removed Core 1 7.8% 
Oils Cotton-seed 151229 Cotton seed oil, other than crude, & fractions 
thereof , whether or not ref ... Core 1 20.7% 
Oils Groundnuts 120210 Ground-nuts, not roasted/othw. cooked, in shell Core 1 12.5% 
Oils Groundnuts 120220 Ground-nuts, not roasted/othw. cooked, shelled, 
whether or not broken Core 1 70.7% 
Oils Groundnuts 120890 Flours & meals of oil s eeds/oleaginous fruits other 
than of mustard (excl.  ...   0 0.0% 
Oils Groundnuts 150810 Ground-nut oil, crude Core 1 14.2% 
Oils Groundnuts 150890 Ground-nut oil, other than crude, & fractions 
thereof , whether or not ref. ... Core 1 2.6% 
Oils Groundnuts 200811 Ground-nuts, pr epd./presvd., whether or not cont. 
added/sugar/oth. sweeteni ...   0 0.0% 
Oils Groundnuts 200819 Nuts (excl. ground-nuts), incl. mixts., 
prepd./presvd., whether or not cont ...   0 0.0% 
Oils Groundnuts 230500 Oil-cake & oth. solid residues, whether or not 
ground/in pellets , from extr ...   0 0.0% 
Oils Linseed 120400 Linseed, whether or not broken Core 1 70.1% 
Oils Linseed 151511 Linseed oil, crude Core 1 9.0% 
Oils Linseed 151519 Linseed oil, other than crude, & fractions thereof , 
whether or not ref. bu ... Core 1 20.9% 
Oils Margarine 151710 Margarine (excl. liquid margarine) Core 1 100.0% 
Oils Olive Oil 150910 Olive oil, virgin Core 1 64.4% 
Oils Olive Oil 150990 Olive oil (excl. crude & virgin) & fractions thereof , 
whether or not ref.  ... Core 1 35.4% 
Oils Olive Oil 151000 Oils & fractions thereof , obt. solely from olives 
(excl. of 15.09), whethe ... Core 1 0.2% 
Oils Other Oilseed 
Oils 151590 Fixed vegatable fats & oils (excl. of 1515.11-
1515.50), incl. jojoba oil &  ... Core 1 15.0% 
Oils Other Oilseed 
Oils 151620 Vegetable fats & oils & fractions thereof , 
partly/wholly hydrogenated/inte ... Core 1 49.7% 
Oils Other Oilseed 
Oils 151790 Edible mixts./preps. of animal/veg. 
fats/oils/fractions of diff. fats/oils  ... Core 1 26.0% 
Oils Other Oilseed 
Oils 151800 Animal/veg. fats & oils & fractions thereof , 
boiled/oxidised/dehydrated/su ... Core 1 9.3% 
Oils Sesamum 120740 Sesamum seeds, whether or not broken Core 1 88.9% 
Oils Sesamum 151550 Sesame oil & fractions thereof , whether or not 
ref. but not chemically mod ... Core 1 11.1% 
Oils Soybeans 120100 Soya beans, whether or not broken Core 1 78.4% 
Oils Soybeans 150710 Soya bean oil, crude, whether or not degummed, 
not chemically modified Core 1 18.1% 
Oils Soybeans 150790 Soya bean oil, other than crude, & fractions 
thereof , whether or not ref.  ... Core 1 3.5% 
Oils Soybeans 230400 Oil-cake & oth. solid residues, whether or not 
ground/in pellets , from extr ...   0 0.0% 
Oils Sunflower 120600 Sunflower seeds, whether or not broken Core 1 31.0% 
Oils Sunflower 151211 Sunflower seed/safflower oil, crude Core 1 48.7% TN/AG/26 
Page 108  
 
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Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
Oils Sunflower 151219 Sunflower seed/safflower oil, other than crude, & 
fractions thereof , wheth ... Core 1 20.3% 
Oils Technical Fats 150100 Pig fat, incl. lard, & poultry fat, other than of 
02.09/15.03 Core 1 7.8% 
Oils Technical Fats 150200 Fats of bovine animals/ sheep/goats, other than of 
15.03 Core 1 72.7% 
Oils Technical Fats 150300 Lard stearin, lard oil, oleostearin, oleo-oil & tallow 
oil, not emulsified/ ... Core 1 5.5% 
Oils Technical Fats 150430 Fats & oils & their fractions, of marine mammals, 
whether or not ref. but n ... Core 1 0.5% 
Oils Technical Fats 150500 Wool grease & fatty subs. derived therefrom, incl. 
lanolin Core 1 8.1% 
Oils Technical Fats 150600 Animal fats & oils & fractions thereof (excl. of 
1501.00-1505.00), whether  ... Core 1 1.3% 
Oils Technical Fats 151610 Animal fats & oils & fractions thereof , 
partly/wholly hydrogenated/inter-e ... Core 1 4.1% 
Sweeteners Fructose 170250 Chemically pure fructose Core 1 53.2% 
Sweeteners Fructose 170260 Fructose (excl. chemically pure fructose) & 
fructose syrup, cont. in the dr ... Core 1 36.8% 
Sweeteners Fructose 170290 Sugars, incl. invert sugar & oth. sugar & sugar syrup 
blends cont. in the d ...   2 10.0% 
Sweeteners Glucose 170230 Glucose & glucose syrup, not cont. fructose/cont. 
in the dry state < 20% by ... Core 1 83.3% 
Sweeteners Glucose 170240 Glucose & glucose syrup, cont. in the dry state at 
least 20% but < 50% by w ... Core 1 16.7% 
Sweeteners Honey 040900 Natural honey Core 1 100.0% 
Sweeteners Lactose 170211 Lactose & lactose syrup, cont. by wt. 99%/more 
lactose, expressed as anhydr ... Core 1 78.9% 
Sweeteners Lactose 170219 Lactose & lactose syrup, cont. by wt. >95% but 
<99% lactose, expressed as a ... Core 1 21.1% 
Sweeteners Maple Sugar 170220 Maple sugar & maple syrup Core 1 100.0% 
Sweeteners Molasses 170310 Cane molasses Core 1 81.0% 
Sweeteners Molasses 170390 Molasses, other than  cane molasses, resulting 
from the extraction/refining  ... Core 1 19.0% 
Sweeteners Sugar 170111 Cane sugar, raw, in solid form, not cont. added 
flavouring/colouring matter ... Core 1 55.5% 
Sweeteners Sugar 170112 Beet sugar, raw, in solid form, not cont. added 
flavouring/colouring matter ... Core 1 1.0% 
Sweeteners Sugar 170191 Cane/beet sugar & chemically pure sucrose, in solid 
form, cont. added flavo ...   2 0.7% 
Sweeteners Sugar 170199 Cane/beet sugar & chemically pure sucrose, in 
solid form, not cont. added f ... Core 1 33.5% 
Sweeteners Sugar 170290 Sugars, incl. invert sugar & oth. sugar & sugar syrup 
blends cont. in the d ...   2 0.2% 
Sweeteners Sugar 170410 Chewing gum, whether or not sugar-coated   2 1.2% 
Sweeteners Sugar 170490 Sugar confectionery other than chewing gum (incl. 
white chocolate), not con ...   2 7.9% 
Sweeteners Sugar 180610 Cocoa powder, cont. added sugar/oth. sweetening 
matter   0 0.0% 
Sweeteners Sugar 180620 Chocolate & oth. food pr eps. cont. cocoa (excl. of 
1803.10-1806.10), in blo ...   0 0.0% 
Sweeteners Sugar 180631 Chocolate & oth. food  preps. cont. cocoa, in 
blocks/slabs/bars, weighing 2k ...   0 0.0% 
Sweeteners Sugar 180632 Chocolate & oth. food  preps. cont. cocoa, in 
blocks/slabs/bars, weighing 2k ...   0 0.0% 
Sweeteners Sugar 180690 Chocolate & oth. food pr eps. cont. cocoa (excl. of 
1806.20-1806.32)   0 0.0% 
Sweeteners Sugar 190110 Preparations for infant use, put up for RS   0 0.0% 
Sweeteners Sugar 190120 Mixes & doughs for th e preparation of bakers' 
wares of 19.05   0 0.0%  TN/AG/26 
 Page 109 
 
 
  (1) (2) (3) (4) (5) (6) (7) 
Core Common  
Product Consumption Sector Category HS6 Description 
    Allocation 
        (See Notes) Share 
Sweeteners Sugar 190190 Malt extract; oth. food preps. of 
flour/groats/meal/starch/ malt extact (see ...   0 0.0% 
Sweeteners Sugar 190410 Prepared foods obt. by  the swelling/roasting of 
cereals/cereal prods.   0 0.0% 
Sweeteners Sugar 190531 Sweet biscuits   0 0.0% 
Sweeteners Sugar 190590 Bread, pastry, cakes, bi scuits & oth. bakers' wares 
n.e.s. in Ch.19, whethe ...   0 0.0% 
Sweeteners Sugar 210112 Preparations with a basis of 
extracts/essences/concs. of  coffee/with a basi ...   0 0.0% 
Sweeteners Sugar 210120 Extracts, essences & concs. of tea/mat ╬ÿ, & preps. 
with a basis of these ext ...   0 0.0% 
Sweeteners Sugar 210690 Food preps., n.e.s.   0 0.0% 
Sweeteners Sugar 220290 Non-alcoholic beverage s other than waters of 
2202.10 (not incl. fruit/veg.  ...   0 0.0% 
Tobacco Tobacco 240110 Tobacco, no t stemmed/stripped Core 1 8.9% 
Tobacco Tobacco 240120 Tobacco, partly/wholly stemmed/stripped Core 1 31.2% 
Tobacco Tobacco 240130 Tobacco refuse Core 1 1.3% 
Tobacco Tobacco 240210 Cigars, cheroots & cigarillos cont. tobacco Core 1 4.4% 
Tobacco Tobacco 240220 Cigarettes cont. tobacco Core 1 46.2% 
Tobacco Tobacco 240290 Cigars, cheroots, cigarillos & cigarettes of tobacco 
substitutes Core 1 0.7% 
Tobacco Tobacco 240310 Smoking tobacco, whether or not cont. tobacco 
substitutes in any proportion ... Core 1 4.1% 
Tobacco Tobacco 240391 Homogenised/reconstituted tobacco Core 1 1.8% 
Tobacco Tobacco 240399 Manufactured tobacco & manufactured tobacco 
substitutes, n.e.s. (excl. smok ... Core 1 1.4% 
Wine & 
Spirits Beer 220300 Beer made from malt Core 1 100.0% 
Wine & 
Spirits Ethyl Alcohol 220710 Undenatured ethyl alcohol of an alcoholic 
strength by volume of 80% vol. Core 1 77.7% 
Wine & 
Spirits Ethyl Alcohol 220720 Ethyl alcohol & oth. spirits, denatured, of any 
strength Core 1 22.3% 
Wine & 
Spirits Gin & Geneva 220850 Gin & Geneva Core 1 100.0% 
Wine & 
Spirits Liqueurs & 
Cordials 220870 Liqueurs & cordials Core 1 100.0% 
Wine & 
Spirits Rum 220840 Rum & tafia Core 1 100.0% 
Wine & 
Spirits Samsu, etc. 
(excl., Ethyl 
Alcohol) 220890 Undenatured ethyl alcohol of an alcoholic 
strength by volume <80%vol; oth.  ... Core 1 100.0% 
Wine & 
Spirits Vodka 220860 Vodka Core 1 100.0% 
Wine & 
Spirits Whiskies 220830 Whiskies Core 1 100.0% 
Wine & 
Spirits Wine Spirits 220820 Spirits obt. by distilling grape wine/grape marc Core 1 100.0% 
Wine & 
Spirits Wine 220410 Sparkling wine of fresh grapes Core 1 12.1% 
Wine & 
Spirits Wine 220421 Wine other than sparkling wine of fresh grapes, 
incl. fortified; grape must ... Core 1 76.6% 
Wine & 
Spirits Wine 220429 Wine other than sparkling wine of fresh grapes, 
incl. fortified; grape must ... Core 1 7.9% 
Wine & 
Spirits Wine 220510 Vermouth & oth. wine of fresh grapes flavoured 
with plants/aromatic subs.,  ... Core 1 1.3% 
Wine & 
Spirits Wine 220590 Vermouth & oth. wine of fresh grapes flavoured 
with plants/aromatic subs.,  ... Core 1 0.1% 
Wine & 
Spirits Wine 220600 Fermented beverages (e.g., cider, perry, mead), 
n.e.s.; mixts. of fermented ... Core 1 2.0% 
 TN/AG/26 
Page 110  
 
  Notes: 
 
Core Product: 
 
1: Core -- i.e., raw or basic traded good 
 
2: NonCore -- i.e., processed products with a lower level of value-added to which some 
consumption will be allocated  0: NonCore -- i.e., highly processed products (C h. 18-23) and any other lines to which no 
consumption will be allocated 
 
1  -- Members opting for the treatment provided for in paragraph C iii can use the following percentage 
for common consumption allocation. Corn:  1005.10: 0.0%, 1005.90: 90.0%, lines 1102.20 through 1104.23: 3.3% each.   Rice:  1006.10: 5.8%,  1006.20: 8.5%,  1006.30: 65.9%,  1006.40: 9.8%,  lines 
1102.30 through 2206.00: 0.5263% each. 
 
2  -- For members that do not have tariff lines disaggr egated beyond the HS 7 digit level, a separate 
balance sheet shall be created for 210690. No ch anges shall be made to the headline domestic 
consumption numbers in other product categories as a result.  3 Alternative Approach for Fruit and Vegetables and Eggs 
 
In cases where Members are not able to produce da ta for separate product categories as outlined in 
Attachment A for fruit and vegetables and eggs, Members can use an alternative approach of 
combining the fresh, frozen, dried, and prepared/p reserved product categories for a given fruit or 
vegetable (e.g. apples) and eggs in  shell and processed eggs into one  alternative product category.  
Domestic consumption for the alternative product cat egory shall be calculated using the balance sheet 
approach for the alternative product category.  Unde r this alternative approach, the alternative product 
category shall be subject to the provisions outlined in section C.  Core and non-core tariff lines and 
domestic consumption allocations for the alternativ e product categories are defined in the appendix to 
Attachment A  TN/AG/26 
 Page 111 
 
 
  Appendix:  Alternative Fruit and Ve getable and Egg Product Categories 
 
  Category HS6 Description Core Common  
       Product Consumption 
           Allocation 
       (See Notes) Share 
Apples Apples-Fresh 080810 Apples, fresh Core 1 90.0% 
Apples Apples-Dried 081330 Apples, dried   2 10.0% 
Apples Apples-Prep/Pres 200899 Edible parts of  plants, prepd./presvd., whether or 
not cont. added sugar/ot ...   0 
0.0% 
Apricots Apricots-Fresh 080910 Apricots, fresh Core 1 90.0% 
Apricots Apricots-Dried 081310 Apricots, dried   2 10.0% 
Apricots Apricots-Prep/Pres 200850 Apricots, prepd./presvd., whether or not cont. 
added sugar/oth. sweetening  ...   0 
0.0% 
Artichokes Artichokes-Fresh 070910 Glob e artichokes, fresh/chilled Core 1 90.0% 
Artichokes Artichokes-Frozen 071080 Vegetabl es, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen   2 
10.0% 
Artichokes Artichokes-Prep/Pres 200190 Vegetables, frui t, nuts & oth. edible parts of plants 
(excl. cucumbers & gh ...   0 
0.0% 
Artichokes Artichokes-Prep/Pres 200590 Vegetables & mixts. of vegetables (excl. of 
2005.10-2005.80), prepd./presvd ...   0 
0.0% 
Asparagus Asparagus-Fresh 070920 Aspa ragus, fresh/chilled Core 1 100.0% 
Asparagus Asparagus-Prep/Pres 200560 Asparagus,  presvd./presvd. othw. than by 
vinegar/acetic acid, not frozen, o ...   0 
0.0% 
Beans, Small Red Beans, Small Red-
Frozen 071029 Leguminous vegetables (excl. of 0710.21 & 
0710.22), shelled/unshelled, unco ...   2 
8.8% 
Beans, Small Red Beans, Small Red-
Dried 071332 Small red (Adzuki) beans (Phaseolus/Vigna 
angularis), dried, shelled, wheth ... Core 1 
90.0% 
Beans, Small Red Beans, Small Red-
Flour 110610 Flour, meal & powder  of the dried leguminous 
vegetables of 07.13   2 
1.2% 
Beans, Small 
Red Beans, Small Red-
Prep/Pres 200490 Vegetables & mixts. of  vegetables, presvd./presvd. 
othw. than by vinegar/ac ...   0 
0.0% 
Beans, Small Red Beans, Small Red-
Prep/Pres 200551 Beans (Vigna spp., Ph aseolus spp.), shelled, 
prepd./presvd. othw. than by v ...   0 
0.0% 
Beans, Small Red Beans, Small Red-
Prep/Pres 200559 Beans (excl. Vigna spp. , Phaseolus spp.), shelled, 
prepd./presvd. othw. tha ...   0 
0.0% 
Beans, Small Red Beans, Small Red-
Prep/Pres 200600 Vegetables, fruit, nuts, fruit-peel & oth. parts of 
plants, presvd. by suga ...   0 
0.0% 
Beans, Small Red Beans, Small Red-
Prep/Pres 210690 Food preps., n.e.s.   0 
0.0% 
Beans Beans, Fresh 070820 Beans (Vigna spp., Phaseolus spp.), 
shelled/unshelled, fresh/chilled Core 1 
90.0% 
Beans Beans, Frozen 071022 Beans (Vigna spp., Phaseolus spp.), 
shelled/unshelled, uncooked/cooked by s ...   2 
1.4% 
Beans Beans, Vigna-
Phassolus-Dried 071339 Beans (Vigna spp., Ph aseolus spp. (excl. of 
0713.31-0713.33)), dried, shell ...   2 
4.2% 
Beans Beans, Vigna-
Phassolus-Prep/Pres 200551 Beans (Vigna spp., Ph aseolus spp.), shelled, 
prepd./presvd. othw. than by v ...   0 
2.8% 
Beans Beans, Vigna-
Phassolus-Prep/Pres 200559 Beans (excl. Vigna spp. , Phaseolus spp.), shelled, 
prepd./presvd. othw. tha ...   0 
1.6% 
Beans, Other Beans, Other-Dried 071390 Dried leguminous vegetables, n.e.s., shelled, 
whether or not skinned/split Core 1 
100.0% 
Beans, Other Beans, Other-
Prep/Pres 200490 Vegetables & mixts. of  vegetables, presvd./presvd. 
othw. than by vinegar/ac ...   0 
0.0% 
Beans, Other Beans, Other-
Prep/Pres 200590 Vegetables & mixts. of vegetables (excl. of 
2005.10-2005.80), prepd./presvd ...   0 
0.0% 
Cherries Cherries-Fresh 080920 Cherries, fresh Core 1 90.0% 
Cherries Cherries-Frozen 081190 Fruit & nut s, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ...   2 
5.3% 
Cherries Cherries-Dried 081340 Dried fruit (excl. of 08.01-08.06 & 0813.10-
0813.30)   2 
1.4% 
Cherries Cherries-Prep/Pres 081210 Cherries, prov isionally presvd. but unsuit. in that 
state for immediate con ...   2 
3.3% 
Cherries Cherries-Prep/Pres 200860 Cherries, prepd./presvd., whether or not cont. 
added sugar/oth. sweetening  ...   0 
0.0% 
Chestnuts Chestnuts 080240 Chestnuts (Castanea spp.) Core 1 90.0% TN/AG/26 
Page 112  
 
    Category HS6 Description Core Common  
       Product Consumption 
           Allocation 
       (See Notes) Share 
Chestnuts Chestnuts-Frozen 0811 90 Fruit & nuts, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ...   2 
10.0% 
Chestnuts Chestnuts-Prep/Pres 200819 Nuts (e xcl. ground-nuts), incl. mixts., 
prepd./presvd., whether or not cont ...   0 
0.0% 
Clementines Clementines-Fresh 080520 Mandarins, incl. tangerines & satsumas; 
clementines, wilkings & sim. citrus ... Core 1 
100.0% 
Clementines Clementines-
Prep/Pres 200830 Citrus fruit, prepd./p resvd., whether or not cont. 
added sugar/oth. sweeten ...   0 
0.0% 
Cucumbers Cucumbers-Fresh 070700 Cucumber s & gherkins, fresh/chilled Core 1 90.4% 
Cucumbers Cucumbers-
Prep/Pres 071140 Cucumbers & gherkins, provisionally presvd.   2 
9.6% 
Cucumbers Cucumbers-
Prep/Pres 200110 Cucumbers & gherki ns, prepd./presvd. by 
vinegar/acetic acid   0 
0.0% 
Garlic Garlic-Fresh 070320 Garlic, fresh/chilled Core 1 67.9% 
 Garlic-Frozen 071080 Vegetable, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen Core 1 
21.2% 
 Garlic-Prep/Press 071190 Vegetables  (excl. olives/capers/cucmbers & 
gherkins/mushrooms, provi.. Core 1 
0.0% 
 Garlic-Dried 071290 Dried vegetables, n.e.s.; mists. Of dried 
vegetables, whole/cut/sliced/brok... Core 1 
10.9% 
 Garlic- Prep/Press 200190 Vegetables, fruit, nuts & oth. Edible parts of 
plants (excl. cucumbers and gh...  0 
0.0% 
 Garlic-Press 200600 Vegetables, fruit, nuts, fruit-peel  oth. Parts of 
plants, presvd.  By suga...  0 
0.0% 
Ginseng Ginseng-roots 121120 Ginseng roots Core 1 90.0% 
Ginseng Ginseng-extracts 130219 Vegetable saps & extracts (excl. of 1302.11-
1302.14)   2 
10.0% 
Ginseng Ginseng-prep/pres 210690 Food preps., n.e.s.   0 0.0% 
Ginseng Ginseng-
beverage&wine 220290 Non-alcoholic beverage s other than waters of 
2202.10 (not incl. fruit/veg.  ...   0 
0.0% 
Ginseng Ginseng-
beverage&wine 220870 Liqueurs & cordials   0 
0.0% 
Ginseng Ginseng-prep/pres 330190 Extracted oleore sins; concs. of essential oils in 
fats/fixed oils/waxes/the ...   2 
0.0% 
Grapes Grapes-Fresh 080610 Grapes, fresh Core 1 90.0% 
Grapes Grapes-Dried 080620 Grapes, dried   2 10.0% 
Jujubes Jujubes-Fresh 081090 Fresh fruit, n.e.s. Core 1 90.0% 
Jujubes Jujubes-Frozen 081190 Fruit & nut s, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ...   2 
7.5% 
Jujubes Jujubes-Dried 081340 Dried fruit (excl. of 08.01-08.06 & 0813.10-
0813.30)   2 
2.5% 
Lemons Lemons-Fresh 080550 Lemons (C itrus limon/limonum) & limes (Citrus 
aurantifolia/latifolia), fres ... Core 1 
100.0% 
Lemons Lemons-Prep/Pres 200830 Citrus fruit, prepd./presvd., whether or not cont. 
added sugar/oth. sweeten ...   0 
0.0% 
Mixed Vegetables Mixed Vegetables 071090 Mixtures of  vegetables, uncooked/cooked by 
steaming/boiling in water, froze ... Core 1 
100.0% 
Mixed 
Vegetables Mixed Processed 
Vegetables 200590 Vegetables & mixts. of vegetables (excl. of 
2005.10-2005.80), prepd./presvd ...   0 
0.0% 
Mushrooms Mushrooms,  
Agaricus-Fresh 070951 Mushrooms of the genus Agaricus, fresh/chilled Core 1 
90.0% 
Mushrooms Mushrooms,  
Agaricus-Frozen 071080 Vegetables, n.e.s. , uncooked/cooked by 
steaming/boiling in water, frozen   2 
4.8% 
Mushrooms Mushrooms,  
Agaricus-Dried 071231 Mushrooms of the genus Agaricus, dried, 
whole/cut/sliced/broken/in powder b ...   2 
4.2% 
Mushrooms Mushrooms,  
Agaricus-Prep/Pres 071151 Mushrooms of the genus  Agaricus, provisionally 
presvd.   2 
1.0% 
Mushrooms Mushrooms,  
Agaricus-Prep/Pres 200310 Mushrooms of the genus  Agaricus, prepd./presvd. 
othw. than by vinegar/aceti ...   0 
0.0% 
Mushrooms, Oak Mushrooms, Oak-
Fresh 070959 Mushrooms other than of the genus Agaricus, 
fresh/chilled Core 1 
90.0%  TN/AG/26 
 Page 113 
 
 
    Category HS6 Description Core Common  
       Product Consumption 
           Allocation 
       (See Notes) Share 
Mushrooms, 
Oak Mushrooms, Oak-
Dried 071239 Mushrooms (excl. of 0712.31-0712.33) & truffles, 
dried, whole/cut/sliced/br ...   2 
10.0% 
Mushrooms, 
Oak Mushrooms, Oak-
Prep/Pres 200390 Mushrooms other than of the genus Agaricus, 
prepd./presvd. othw. than by vi ...   0 
0.0% 
Onions Onions-Fresh 070310 Onions & shallots, fresh/chilled Core 1 90.0% 
Onions Onions-Frozen 071080 Vegetables , n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen   2 
0.3% 
Onions Onions-Dried 071220 Onions, dried, whole/cut/sliced/broken/in powder 
but not furth. prepd.   2 
8.0% 
Onions Onions-Prep/Pres 071190 Vegetables (excl. olives/capers/cucumbers & 
gherkins/mushrooms), provisiona ...   2 
1.7% 
Onions Onions-Seed 120991 Vegetable seeds, of a kind used for sowing   0 0.0% 
Onions Onions-Prep/Pres 200190 Vegetables, fruit,  nuts & oth. edible parts of plants 
(excl. cucumbers & gh ...   0 
0.0% 
Oranges Oranges-Fresh/Dried 080510 Oranges, fresh/dried Core 1 99.5% 
Oranges Oranges-Prep/Pres 081290 Fruit (excl. ch erries) & nuts, provisionally presvd. 
but unsuit. in that st ...   2 
0.5% 
Oranges Oranges-Prep/Pres 200830 Citrus fruit, prepd./presvd., whether or not cont. 
added sugar/oth. sweeten ...   0 
0.0% 
Peaches/Nect Peaches/Nect-Fres h 080930 Peaches, incl. nectarines, fresh Core 1 90.0% 
Peaches/Nect Peaches/Nect-Frozen 081190 Fruit & nuts, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ...   2 
0.0% 
Peaches/Nect Peaches/Nect-
Prep/Pres 200870 Peaches, incl. nectarin es, prepd./presvd., whether 
or not cont. added sugar ...   0 
10.0% 
Pears Pears-Fresh 080820 Pears & quinces, fresh Core 1 98.6% 
Pears Pears-Dried 081340 Dried fruit (excl. of 08.01-08.06 & 0813.10-
0813.30)   2 
1.4% 
Pears Pears-Prep/Pres 200840 Pears, prepd./p resvd., whether or not cont. added 
sugar/oth. sweetening mat ...   2 
0.0% 
Peas Peas, Fresh 070810 Peas (Pisum sativum), shelled/unshelled, 
fresh/chilled Core 1 
90.0% 
Peas Peas, Frozen 071021 Peas (Pisum  sativum), shelled/unshelled, 
uncooked/cooked by steaming/boilin ...   2 
1.5% 
Peas Peas-Dried 071310 Peas (Pisum sati vum), dried, shelled, whether or 
not skinned/split   2 
8.5% 
Peppers Peppers-Fresh 070960 Fruits of the genera Capsicum/Pimenta, 
fresh/chilled Core 1 
90.0% 
Peppers Peppers-Frozen 071080 Vegetables , n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen   2 
5.2% 
Peppers Peppers-Prep/Pres 071190 Vegetables (excl. olives/capers/cucumbers & 
gherkins/mushrooms), provisiona ...   2 
0.0% 
Peppers Peppers-Prep/Pres 090420 Fruits of  the genera Capsicum/Pimenta, 
dried/crushed/ground   2 
4.8% 
Peppers Peppers-Prep/Pres 210390 Sauces & prep s. therefor, n.e.s.; mixed condiments 
& mixed seasonings, n.e. ...   0 
0.0% 
Persimmons, excl. Sweet Persimmons, Other 
(excl. Sweet)-Fresh 081090 Fresh fruit, n.e.s. Core 1 
90.0% 
Persimmons, excl. Sweet Persimmons, Other 
(excl. Sweet)-Dried 081340 Dried fruit (excl. of 08.01-08.06 & 0813.10-
0813.30)   2 
10.0% 
Pineapples Pineapples-Fresh 080430 Pineapples, fresh/dried Core 1 96.4% 
Pineapples Pineapples-Frozen 081190 Fruit & nut s, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ...   2 
3.6% 
Pineapples Pineapples-
Prep/Pres 200820 Pineapples, pr epd./presvd., whether or not cont. 
added sugar/oth. sweetenin ...   0 
0.0% 
Pinenuts Pinenuts-Fresh 080290 Nuts, n.e.s., fresh/dried, whether or not 
shelled/peeled Core 1 
90.0% 
Pinenuts Pinenuts-Frozen 081190 Fruit & nuts, n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen, ...   2 
10.0% 
Plums Plums-Fresh 080940 Plums & sloes, fresh Core 1 90.0% 
Plums Plums-Dried 081320 Prunes, dried   2 10.0% 
Potatoes Potatoes-Fresh 070110 Seed potatoes, fresh/chilled   0 0.0% 
Potatoes Potatoes-Fresh 070190 Potatoes other than seed potatoes, fresh/chilled Core 1 90.0% TN/AG/26 
Page 114  
 
    Category HS6 Description Core Common  
       Product Consumption 
           Allocation 
       (See Notes) Share 
Potatoes Potatoes-Frozen 071010 Potatoes, uncoo ked/cooked by steaming/boiling in 
water, frozen   2 
3.0% 
Potatoes Potatoes-Frozen 071090 Mixtures of  vegetables, uncooked/cooked by 
steaming/boiling in water, froze ...   2 
0.0% 
Potatoes Potatoes-Dried 071290 Dried vegetables, n.e.s.; mixts. of dried vegetables, 
whole/cut/sliced/brok ...   0 
0.0% 
Potatoes Potatoes-Dried 110510 Flour, meal & powder of potatoes   2 2.0% 
Potatoes Potatoes-Dried 110520 Flakes, granules & pellets of potatoes   2 5.0% 
Potatoes Potatoes-Dried 190590 Bread, pastry, ca kes, biscuits & oth. bakers' wares 
n.e.s. in Ch.19, whethe ...   0 
0.0% 
Potatoes Potatoes-Prep/Pres 200410 Potatoes , prepd./presvd. othw. than by 
vinegar/acetic acid, frozen, other t ...   0 
0.0% 
Potatoes Potatoes-Prep/Pres 200520 Potatoes , prepd./presvd. othw. than by 
vinegar/acetic acid, not frozen, oth ...   0 
0.0% 
Raspberries Raspberries-Fresh 081020 Ra spberries, blackberries, mulberries & 
loganberries, fresh Core 1 
90.0% 
Raspberries Raspberries-Frozen 081120 Raspberries, blackberries, mulberries, loganberries, 
black/white/red curran ...   2 
9.9% 
Raspberries Raspberries-
Prep/Pres 081290 Fruit (excl. cherries) & nuts, provisionally presvd. 
but unsuit. in that st ...   2 
0.1% 
Spinach Spinach-Fresh 070970 Spinach, New Zealand spinach & orache spinach 
(garden spinach), fresh/chill ... Core 1 
90.0% 
Spinach Spinach-Frozen 071030 Spinach, New Zealand spinach & orache spinach 
(garden spinach), uncooked/co ...   2 
10.0% 
Strawberries Strawberries-Fresh 0810 10 Strawberries, fresh Core 1 90.0% 
Strawberries Strawberries-Frozen 081110 Strawberries, uncooked/cooked by 
steaming/boiling in water, frozen, whether ...   2 
9.8% 
Strawberries Strawberries-
Prep/Pres 081290 Fruit (excl. cherries) & nuts, provisionally presvd. 
but unsuit. in that st ...   2 
0.2% 
Strawberries Strawberries-
Prep/Pres 200880 Strawberries, prepd./presvd., whether or not cont. 
added sugar/oth. sweeten ...   0 
0.0% 
Sweet Maize Sweet Maize-Frozen 0710 40 Sweet corn, uncooked/cooked by 
steaming/boiling in water, frozen Core 1 
90.0% 
Sweet Maize Sweet Maize-
Processed 200190 Vegetables, fruit, nuts & oth. edible parts of plants 
(excl. cucumbers & gh ...   2 
0.0% 
Sweet Maize Sweet Maize-
Processed 200490 Vegetables & mixts. of  vegetables, presvd./presvd. 
othw. than by vinegar/ac ...   2 
0.6% 
Sweet Maize Sweet Maize-
Processed 200580 Sweet corn (Zea mays var. saccharata), 
prepd./presvd. othw. than by vinegar ...   2 
9.4% 
Tomatoes Tomatoes-Fresh 070200 To matoes, fresh/chilled Core 1 90.0% 
Tomatoes Tomatoes-Dried 071290 Dried vegetables, n.e.s.; mixts. of dried vegetables, 
whole/cut/sliced/brok ...   2 
5.5% 
Tomatoes Tomatoes-Frozen 071080 Vegetables , n.e.s., uncooked/cooked by 
steaming/boiling in water, frozen   2 
4.5% 
Tomatoes Tomatoes-Prep/Pres 200210 Tomatoes , prepd./presvd. othw. than by 
vinegar/acetic acid, whole/in pieces ...   0 
0.0% 
Tomatoes Tomatoes-Prep/Pres 200290 Tomatoes , prepd./presvd. othw. than by 
vinegar/acetic acid, other than whol ...   0 
0.0% 
Tomatoes Tomatoes-Sauces 210320 Tomato ketchup & oth. tomato sauces   0 0.0% 
Eggs Eggs 040700 Birds' eggs, in shell,  fresh/presvd./cooked Core 1 64.3% 
Eggs Eggs 040811 Egg yolks, dried, whether or not cont. added 
sugar/oth. sweetening matter Core 1 
4.3% 
Eggs Eggs 040819 Egg yolks (excl. dried), whether or not cont. 
added sugar/oth. sweetening m ... Core 1 
5.9% 
Eggs Eggs 040891 Birds' eggs, not in shell (excl. yolks), dried, 
whether or not cont. added  ... Core 1 
5.2% 
Eggs Eggs 040899 Birds' eggs, not in sh ell (excl. yolks), other than 
dried, whether or not c ... Core 1 
5.5% 
Eggs Eggs 190220 Stuffed pasta, whether or not cooked/othw. prepd.   0 0.0% 
Eggs Eggs 190230 Pasta (excl. of 1902.11-1902.20)   0 0.0% 
Eggs Eggs 210690 Food preps., n.e.s.   0 0.0% 
Eggs Eggs 350211 Dried egg al bumin Core 1 13.2%  TN/AG/26 
 Page 115 
 
 
    Category HS6 Description Core Common  
       Product Consumption 
           Allocation 
       (See Notes) Share 
Eggs Eggs 350219 Egg albu min (excl. dried)  Core 1 1.6% TN/AG/26 
Page 116  
 
   
Attachment Ai:  Partial Designation Modalities for Sensitive Products
 
 
A) Product Categories: 
 
The purpose of the product category list is to estab lish a common basis on which a member would 
undertake a partial designation calculation, in the event tariff lines in a product category might be declared Sensitive.  The list is comprehensive for the purposes of tr ansparency required in paragraph 
8a of Annex C.   
 
The approaches in this attachment are provided without prejudice to the outcome of negotiations on 
issues such as tropical products, preference eros ion and other elements of the market access 
negotiations.   1) Product Category Tariff Line Coverage:
 For the purpose of these modalities, the scope of 
Sensitive Products are those specified and delimited in terms of each product’s 6-digit tariff line 
coverage in Attachment A.  
 
For additional tariff lines added to existing product cat egories in Attachment A, such lines shall be 
assigned a coefficient of zero.  Any adjustments to domestic consumption due to  the addition of new 
lines would follow the requirements for net trade adjustments outlined in section B.  
 
Any additional tariff lines and product categories to be submitted by other Members would need to be 
reviewed to ensure consistenc y with the overall approach.  
 
2) Core and Non-Core Product Tariff Line(s):  The core and non-core product tariff lines 
associated with each product category ar e specified in Attachment A.   
 
B) Balance Sheet for Domestic Consumption: 
 
The domestic consumption for each product category,  except for “other dairy”, which is outlined 
below, shall be calculated using a balance sheet a pproach based on the tariff line coverage specified 
for each product category in Attachment A using the template set out in Attachment B. Changes to 
domestic consumption as specified in Attachment C fr om the addition or subtraction of tariff lines to a 
product category shall be made on a net trade basis (imports minus exports). 
 
When Members submit data for the purpose of making adjustments to their national product coverage 
to adapt it to the product coverage defined in Attach ment A, the sum of the net trade adjustments for 
non-core tariff lines should not result in a reduction of the domestic consumption for the product.  
 
C) Approach for all products, other than  dairy and fruits and vegetables15: 
 
For each product for which a Member chooses to provi de data, they shall use the partial designation 
two step approach, based on the ag reed template in Attachment D, to allocate domestic consumption 
to each 8 digit tariff line.   Within each product category:  
 
i) All non-core tariff lines in Chapter 18 and higher shall be assigned a 6 digit 
coefficient of zero for Step 1. 
                                                     
 
15 Except as in the alternative approach to fruit and vegetables and egg product categories outlined in 
footnote 3 of Attachment A.  TN/AG/26 
 Page 117 
 
 
   
ii) A minimum of 90% of the domestic consumption shall be allocated to the core 
product tariff lines.  The remaining domestic  consumption shall be allocated in 
accordance with Attachment A. 
 
iii) When more than 90% of domestic consumpti on is allocated to the core tariff lines of  
a product category as a result of provision i) above and when non-core tariff lines are selected sensitive, a maximum of 90% of domestic consumption shall be allocated to the core tariff lines and 10% sha ll be allocated equally to non-core tariff 
lines. 
 
D) Approach for dairy products: 
 
For dairy products, domestic consumption shall be  calculated using the balance sheet for domestic 
consumption data for the following individua l products (as listed in Attachment A): 
 
Fluid Milk Butter Skim Milk Powder Whole milk powder Cheese 
Condensed/Evaporated milk 
Yogurt Ice Cream Casein and Caseinates Powdered Whey 
Powdered Buttermilk 
 
Methodology to calculate domestic cons umption of other dairy tariff lines: 
 
 
For the remaining dairy tariff lines, domestic c onsumption shall be calculated using a residual 
methodology and an import cross-check.  The comm on HS 6 digit coefficients used to allocate 
domestic consumption to each HS 6 digit tariff line are as outlined in Attachment F. 
 
Residual Approach  Each Member shall convert their total dairy cons umption to a milk solids basis and subtract the 
domestic consumption for each of the dairy products  listed above converted to a milk solids basis 
using common agreed coefficients as outlined in  Attachment E. The residual amount of dairy 
consumption shall be allocated to each of the boun d tariff lines covered by the HS 6 categories listed 
in the “other dairy” product category in Attachme nts F using the Step1 and 2 allocation template. 
 
Volume Import Cross-Check 
 
For tariff lines that Members decl are as Sensitive Products, the import volume shall be compared to 
the allocated consumption calculated using the residual methodology.  Import volumes shall be converted to a milk solids basis using national coeffici ents in order to make this comparison.  In cases 
where the import volume is greater than the allo cated consumption using the residual methodology, 
the basis for calculating tariff quota expansion shall be the volume of imports for that tariff line. 
 TN/AG/26 
Page 118  
 
  Floor-Application 
 
The sum of the tariff quota expansion for all of the sensitive tariff lines (the greater of the residual 
methodology or volume import cross-check) must be gr eater than the agreed floor (based on the dairy 
residual domestic consumption); otherwise the agreed floor applies.  
 
E) Approach for Fruits and Vegetables
16 
 
For Fruit and Vegetables, Members wanting to desi gnate a product as sensitive shall do so on the 
basis of the product categories outlined in Attachment A. 
 
Members designating Sensitive Products in the fresh product category relating to the product 
consumed as fresh shall also provide for transparen cy reasons the balance sheet relating to the total 
domestic consumption of the whol e product in fresh equivalent. 
 
If a Member decides to designate Sensitive Products only in the product category of "fresh", the TQ 
expansion resulting from the application of the part ial designation methodology or the agreed floor of 
that product category shall at least be equal to 1.5% of the total domestic consumption in fresh 
equivalent for that product.  
 
F) Minimum Tariff Quota Expansion : 
 
Members shall have the option, for at most two prod uct categories with five or more core tariff lines 
at the HS6 level, to provide a tariff quota expansion that is equal to the larger of the tariff quota expansion resulting from the application of the partial designation methodology or 1 per cent of 
domestic consumption of that product category. 
 
For one of those two product categories only, if the average annual volume of commercial exports of 
the product category not benefiting from export subs idies in the 2003-2005 base period represents at 
least 15 times the volume of imports of the same product category, Members shall have the option to 
provide a tariff quota expansion that is equal to th e larger of the tariff quota expansion resulting from 
the application of the partial designation met hodology using a 1.75 per cent expansion (of the 
domestic consumption allocated to the Sensitive tariff lines) or 1 per cent of the domestic 
consumption of that product category.   Product categories subject to the provisions of secti on F shall not be subject to any sub-allocation. 
 
The product categories subject to the provisions of section F shall be specified in advance of 
modalities.  
G)  Scheduling of Tariff Quotas: 
 
Except as specified below, for any given product category, a single tariff quota shall be established. 
 
Sub-Allocation of Tariff Quotas
 
  
Any exception to the single tariff quota rule shall be  specified in advance of modalities and shall not 
apply to product categories with less than ten tariff lines at the HS-6 digit level. 
                                                      
16 Footnote 3 in Attachment A outlines an alternativ e approach to address s ituations where Members 
are not able to produce domestic consumption data for the fruit and vegetable and egg product categories 
outlined in Attachment A.  
  TN/AG/26 
 Page 119 
 
 
   
Exceptions to the single tariff quota rule shall be limited to a maximum of two tariff quotas for up to 
three product categories.  Members availing themselves of s ub-allocation for a product shall forfeit the right to provisions under 
section F above for that product category. 
 
The domestic consumption base for each sub-allocat ed tariff quota shall result from the two step 
methodology for allocation of domestic c onsumption outlined in Annex C except: 
 
• When a tariff quota contains one or more non-co re tariff lines with a zero coefficient, the 
non-core domestic consumption (totalling 10% of  the product’s domestic consumption) shall 
be allocated equally to all sensitive and non sensitive 6 digit non-core tariff lines.  
o For such a TQ the entire quantity allocated to a non-core 6-digit line shall be included 
in the TQ if any Member tariff line (e.g. 8 digit) within that 6-digit is declared 
sensitive.  
 
In no case shall the TQ expansion resulting from sub-allocation be less than the TQ expansion 
resulting from partial designation without sub-allocation. 
 
As Members that designate Sensitive Products at the 7 digit level have less flexibility under the partial 
designation approach, any such Members that forfe it their right to use section F for all product 
categories as well as other options for sub-allocation in section G and meet the following criteria: 
 
• Allocate the entire aggregate domestic consumption for the product category, and  
• Provide all necessary data in adva nce of the adoption of modalities 
 
Shall be permitted for their sub-allocations to schedule up to three tariff quotas for two product 
categories, provided that at least 60 per cent of th e aggregate consumption for the product category is 
allocated to the tariff quota representing the largest  share of world trade during the 2003-2005 base 
period. The remaining two tariff quotas for the produc t category shall be allocated 20 per cent each.   
 
And 
 
Shall be permitted to schedule two tariff quotas for one product category provided that at least 70 per 
cent of the aggregate consumption for the product cat egory is allocated to the tariff quota representing 
the largest share of world trade during the 2003-2005 base period. 
 
In addition, and subject to the other constraints in this section, where both sub-quotas contain only 
core lines (excluding other dairy), the domestic consumption base for the sub-allocated tariff quota 
containing the member tariff line (eg 8 digit) w ith the highest annual average value of national 
imports among the sensitive tariff lines in the pr oduct category in the 2003-2005 base period shall be 
the higher of the result of the partial designation methodology to that sub-allocated quota or 55% of 
the total tariff quota expansion arrived at thr ough the application of the partial designation 
methodology to the product category.  The domestic consumption base for the other sub-quota shall 
result from the difference between the total do mestic consumption base resulting from partial 
designation of the product category and the above-mentioned sub-quota.  
   
 TN/AG/26 
Page 120  
 
  H) Tariff Quota Fill Coefficients: 
 
Tariff quotas must be established and administered on a basis equivalent to the unit of measure on 
which domestic consumption was calculated and identif ied in Attachment B (e.g., grain equivalents, 
carcass weight equivalents, etc) or allocated a nd identified in Attachment F (milk solids basis). 
 
Coefficients shall be used for the purpose of coun ting imports under different tariff lines against tariff 
quota fill where such imports need to be converted into the equivalent unit of measure for the product 
for which the tariff quota was established. 
 
For “other dairy”, this coefficient shall be the same coefficient that is used for the purpose of 
allocating domestic consumption for a tariff line.  The coefficients to be used in the administration of the tariff quota shall be provided in advance of 
modalities and subject to verification, prior to their inclusion in schedules. 
 
  TN/AG/26 
 Page 121 
 
 
  General Note for All Templates : 
All data provided in all templates shall be for the 2003-2005 base period.  Calculations are to be undertaken 
using the most disaggregated unit of measure possible, e.g.,  as metric tons, and not rounded to thousand of tons.  
All templates should be provided in electronic fo rm for appropriate posting by the Secretariat . 
 
Notes for Attachment B: Balance Sheet Template 
 
Balance Sheet : 
The balance sheet template shall be used fo r any product category from Attachment A (when 
finalized) that may be declared sensitive and shall include the following columns:  
a) Total production from source cited below. b) Total imports as indicated in source cited below. c) Imports under programs which allow their entry on condition that they be used in products 
that shall be exported. 
d) Total supply calculated as indicat ed or from source cited below. 
e) Total exports as indicated in source cited below. f) Change in stocks as indicated in source cited below. g) Domestic Consumption (DC) calculated as indicated. The three year average consumption is 
also calculated here. Net changes to consum ption based on differences between the agreed 
product definitions and national product definitions are separately identified below the three 
year average.  The extent and nature of these differences are indicated in the Product Coverage table below the main chart. 
h) Industrial use is production that is utilized fo r further processing rather than directly as food 
or feed. 
i) Feed use is production fed directly to animals.  Seed use is production used for planting. 
j) Food use is production consumed directly for human food without further processing. 
 Product Coverage Chart
: 
k) Lists the HS 6 subheadings that are incl uded in the common product category as defined in 
Attachment A. 
l) Lists the HS 6 subheadings used to de termine the country's national total domestic 
consumption for the product. 
m) Member Action to indicate if net trade adjust ments (addition or subtraction of trade volumes) 
shall be made to nationally published consumption figure in  order to match the product 
category tariff line coverage in Attachment A. Any adjustments shall be outlined in 
Attachment C. 
n) Indicates the actual amount of net trade change for each such subheading.  The data used to 
calculate this change is taken from Attachment C.  All additions and subtractions shall be 
based on net product trade in the affected subh eadings.  Net trade shall be calculated as 
imports minus exports for the respective tari ff lines and shall include product content 
adjustments set out in Attachment C column 6 for imports and column 9 for exports. 
 
Data Sources : 
Citations to data sources should be as complete as  possible, including links to specific tables, or 
sufficient information to enable other member s to find the specific data being referenced. 
  
  TN/AG/26 
Page 122 Attachment B: Balance Sheet Template1 
Member     Country X 
Product Category    Product Y 
03-05 Domestic Consumption (MT) 727,650 
 
Balance Sheet: 
Product  
(Category or  
Sub-
Category) Year Unit Production Imports  Total Supply Exports Change in 
Stocks  
(where 
available) Domestic 
Consumption:  Industrial 
Utilisation  
(where available2)  Feed or  
Seed Use  
(where 
available2) Human Domestic 
Consumption 
(where available2)  
      a b c d  e  f g  h i j 
        Total Mandatory 
Re-export (where 
available) d=a+b-c Total 
  g=d-e-f     j=g-h-i 
                          
Product Y 2003 MT 600,000 20,000 0 620,000 10,300 -27,000 636,700 n/a n/a n/a 
  2004 MT 700,000 5,000 0 705,000 8,300 -25,000 721,700 n/a n/a n/a 
  2005 MT 800,000 30,000 0 830,000 7,700 7,000 815,300 n/a n/a n/a 
  2003-05               724,567       
        + net trade 3,083    
        DC 727,650    
 
 1 This template shall be util ized by any Member that may declare any pr oduct as Sensitive as provided for in Annex C 
 
 2 Based on the requirements outlined in Section E of the Possibl e Partial Designation Modalities for Sensitive Products, these co lumns (h, i and j) are mandatory for any Member that may 
declare a fresh fruit or vegetabl e product category as Sensitive. 
 
Product Coverage: 
Product Category Definition National 
Product 
Definition Member 
Action Net Trade Adjustment 
k l m n  
040510 040510     
040520   + 3,083 
040590 040590     
   3,083 
 
Data Sources: 
Production www.data.gov  
Imports  www.data.gov  
Imports for Re-Export  www.data.gov  
Total Supply www.data.gov  
Exports www.data.gov  
Change in Stocks: www.data.gov  
Industrial Utilisation   www.data.gov  
Feed Use  www.data.gov   TN/AG/26 
 Page 123 
 
 
  Notes for Attachment C:  Supplemen tary Data for  Balance Sheet  
 
Supplementary Table:  
 
Attachment C must be completed in cases where a net trade adjustment has been made to the 
nationally published domestic  consumption figure (as specified in Attachment B Column m). In cases 
where no net trade adjustment has been made to the nationally publ ished domestic consumption figure 
Attachment C is not required.  
Column Descriptions:
 
 
(1) All HS-6s in the product category for which a net trade adjustment w as made (as outlined in 
Attachment B, Column m)  (2) All bound TRQ over-quota and tariff-only lin es within an HS-6 for which a net trade 
adjustment was made.  
 (3) All detail import lines (or separately bound in -quota lines) within an HS-6 for which a net 
trade adjustment was made.   (4) Bound tariff line description 
 
(5) Unadjusted national imports (volume) by detail tariff line  (6) National product import content coefficient by de tail tariff line. This coefficient must also be 
provided in Attachment G, Column 5 Tariff Quota Fill Coefficient. 
 
(7) National imports (volume) by detail tariff line adjusted for product content. 
 (8) National imports (volume) by HS-6s adjusted for product content  (9) All detail export lines in the product category 
 
(10) National product export content coefficient by detail export line   (11) Unadjusted national exports (volume) by detail export line  
(12) National exports (volume) by detail export line adjusted for product content 
 (13) National exports (volume) by HS-6s adjusted for product content  (14) The net trade difference (adjusted HS -6 imports minus adjusted HS-6 exports)  
  TN/AG/26 
Page 124 Attachment C:  Supplementary  Data for Balance Sheet 
  
The following data must be provided for all tariff lines for which a net trade adjustment was made as specified in Attachment B  column m 
 
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 
Avg. 2003-05 Trade Data 
Member Imports Member Exports   
Volume National Product 
Import Content 
Coefficient (TL) Adj. Volume HS-6 Sum Detail Line(s) National Product 
Export Content 
Coefficient (TL) Volume Adj. Volume HS-6 Sum Net Trade 
Adjustment  
MT   MT MT     MT MT MT MT HS6  
(2002 
Nomen-
clature) Bound 
Tariff Line  Detail 
Line(s) Bound Tariff Line 
Description 
IDB                   
04052030 04052020, 
04052030 Butter substitute dairy 
spreads, over 45% butterfat weight 10,000 70% 7,000 
040520 
04052040 04052040 Butter substitute dairy 
spreads, containing 45% or less butterfat by weight 5,000 45% 2,250 9,250 040520 62% 10,000 6,167 6,167 3,083 
           Total Net Trade 
not in DC 3,083 
  TN/AG/26 
 Page 125 
 
 
  Notes for Attachment D:  Two-step Allocation Template 
 
The Two-Step Allocation Template shall be used for any product category from Attachment A (when 
finalized) that may be declared sensitive and shall include the following columns:  
 
(1) All HS-6s in common product category 
 (2) All bound TRQ over-quota and tariff-only lines within HS-6  (3) All detail lines (or separately bound in-quota lines) that contribute to tariff line allocation 
 
(4) Bound tariff line description  (5) Indicates a bound tariff rate quota exists for the respective tariff line  
(6) Share of domestic consumption allocat ed to HS-6  (From Attachment A) 
 (7) Domestic consumption quantity allocated to HS-6  (8) Unadjusted national imports (value) by tariff line  
(9) National product content coefficient by tariff line, which may not exceed 100 percent. 
 (10) National imports by tariff line adjusted for product content  (11) Total adjusted national imports in HS-6 
 
(12) Share of adjusted national impor ts for each tariff line within HS-6 
 (13) Allocated domestic consumption by tariff line   
  TN/AG/26 
Page 126 Attachment D:  Two-Step Allocation Template1 
 
 
Member     Country X 
Product Category   Product Y 
03-05 Domestic Consumption (MT) 727,650 
 
 
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 
          Step 1 Step 2 
World Member Member Member Member Member Member Member 
Import Share HS6 Dom Cons Imports Product 
Content 
Coefficient TL Imports HS6 Imports Import Share TL Dom Cons 
% (Value) MT Value   000 US$ 000 US$ % (Value) MT 
a b c d e f g h HS6  
(2002 
Nomen-
clature) Bound 
Tariff Line  Detail Line(s) Bound Tariff Line 
Description Bound 
TRQ 
  = a * DC IDB   = c * d = ∑eHS6 = e / f = g * b 
040510 04051020 04051010, 04051020 Butter  TRQ 63.6% 462,785 25,665,980 100% 25,665,980 25,665,980 100% 462,785 
04052030 04052020, 04052030 Butter substitute dairy 
spreads, over 45% butterfat weight,  TRQ 449,219 61% 274,023 2% 668 
040520 
04052040 04052040 Butter substitute dairy 
spreads, containing 45% or less butterfat by weight   5.1% 37,110 
31,149,484 48% 14,951,752 15,225,776 
98% 36,442 
040590 04059020 04059010, 04059020 Fats and oils derived 
from milk, other than butter or dairy spreads TRQ 31.3% 227,754 13,583,914 100% 13,583,914 13,583,914 100% 227,754 
                          
Total         100% 727,650     54,475,670 54,475,670   727,650 
 
 
 1This template shall be utilized by any Member that may declare any product as Sensitive as provided for in Annex C  TN/AG/26 
 Page 127 
 
 
   
Notes for Attachment E:  Calculation of Residual Domestic Consumption 
 
The Calculation of Residual Domestic Consump tion shall be used for the Other Dairy product 
category from Attachment A by any Member that may declare any tariff lines in the Other Dairy 
product category as Sensitive and shall include the following columns: 
 (1) Common HS 6 Product Definition  (2) Common List of Products to be Subtracted from Total Dairy Consumption 
 
(3) Common Milk Solids Coefficient  (4) Domestic Consumption on a Product Basis  
(5) Domestic Consumption on a Milk Solids Basis 
 Other
: 
 Members should provide balance sheet informati on (Attachment B and C) for any dairy products 
being subtracted from the total dairy domestic consumption in order to obtain the residual. 
  
  TN/AG/26 
Page 128 Attachment E:  Other Dairy Domestic Consumption Residual Calculation Methodology 
 
 
(1) (2) (3) (4) (5) 
CONSUMPTION 
    Common Milk Solids 
Coefficients  MT 
(Product Consumption)  MT 
(Milk Solids) 
HS6   a b  = a* b 
  Total Dairy Domestic Consumption 1     500,000
040110, 040120 Milk (non-manufacturing) 12.0% 200,000 24,000
040210 SMP 97.0% 20,000 19,400
040221, 040229 WMP 96.0% 10,000 9,600
040291, 040299 Evap/Cond Milk 30.0% 5,000 1,500
040310 Yogurt (incl. frozen) 12.0% 20,000 2,400
0405 Butter 82.0% 100,000 82,000
0406 Cheese 53.4% 150,000 80,100
210500 Ice Cream (incl. low-fat) 21.0% 75,000 15,750
350110, 350190 Casein 92.8% 30,000 27,840
040390 Powdered Buttermilk 92.0% 10,000 9,200
040410 Whey Powder 97.0% 10,000 9,700
  Residual Dairy Domestic Consumption 2     218,510
 
 1Total Dairy Consumption is the total consumption of all dairy pro ducts measured in milk solid tonnes and shall be verifiable ba sed on published national data. 
 2Residual Dairy Consumption is the domestic consumption in milk solid tonnes to be allocated to the other dairy product category . 
  TN/AG/26 
 Page 129 
 
 
  Notes for Attachment F:  Two-step Allocation Template for Other Dairy 
 
The Two-Step Allocation Template shall be used for the Other Dairy product category from 
Attachment A (when finalized) by any Member that  may declare any tariff lines in the Other Dairy 
product category as sensitive and shall include the following columns:  
 
(1) All HS-6s in common Other Dairy product category  (2) All bound TRQ over-quota and tariff-only lines within HS-6  
(3) All detail lines (or separately bound in-quota lines) that contribute to tariff line allocation 
 (4) Bound tariff line description  (5) Indicates a bound tariff rate quota exists for the respective tariff line 
 
(6) Share of Consumption allocated to HS-6  (From Attachment A)  (7) Domestic consumption quantity allocated to HS-6  (8) Unadjusted national imports (value) by tariff line 
 
(9) National milk solids coefficient by tariff line   (10) National imports by tariff line adjusted for milk solids content  
(11) Total adjusted national imports in HS-6 
 (12) Share of adjusted national impor ts for each tariff line within HS-6 
 (13) Allocated domestic consumption by tariff line  
(14) Unadjusted national imports (volume) by tariff line 
 (15) National volume imports by tariff lin e adjusted for milk solids content 
 (16) Greater of (13) allocated domestic consump tion by tariff line or (15) national volume imports 
by tariff line adjusted for milk solids content 
  
  TN/AG/26 
Page 130 Attachment F: Two Step Allocation Template for Other Dairy to Provide Domestic Consumption Data 
 
Member:      Country X 
Product Category:    Other Dairy 
03-05 Dom. Consumption (MT Milk Solids) 218,510 
 
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16) 
          Step 1 Step 2 
World Member Member Member Member Member Member Member Volume Import Cross-Check 
Import Share HS6 Dom Cons ImportsTL Milk Solid 
Coefficient TL Imports HS6 Imports Import Share TL Dom 
Cons (Milk 
Solid Basis) Volume Imports 
(Product Weight) Volume Imports 
(Milk Solids) 
% (Value) MT Value   000 US$ 000 US$ % (Value) MT MT (volume) MT (volume) 
a b c d e f g h  i  j Higher of Residual 
Allocation or Volume 
Imports on a Milk Solids 
Basis HS6  
(2002 
Nomen-
clature) Bound 
Tariff 
Line  Detail 
Line(s) Bound Tariff 
Line 
Description Bound 
TRQ 
Attachment A = a * DC IDB   = c * d = ∑eHS6 = e / f = g * b Source   = i*d greater of h or j 
040130       TRQ 7% 15,983 100 30% 30 30 100% 15,983 50,000 15,000 15,983 
040390         1.6% 3,575 100 10% 10 10 100% 3,575 1,000 100 3,575 
040410         2.2% 4,825 100 10% 10 10 100% 4,825 5,000 500 4,825 
040490       TRQ 11.3% 24,760 100 95% 95 95 100% 24,760 15,000 14,250 24,760 
170490         1.2% 2,586 100 5% 5 5 100% 2,586 8,000 400 2,586 
180620         4.8% 10,406 100 30% 30 30 100% 10,406 15,000 4,500 10,406 
180631         3.2% 7,017 100 30% 30 30 100% 7,017 3,000 900 7,017 
180632         4.1% 8,996 100 30% 30 30 100% 8,996 8,000 2,400 8,996 
180690       TRQ 10.9% 23,822 100 30% 30 30 100% 23,822 25,000 7,500 23,822 
190110         7.5% 16,407 100 30% 30 30 100% 16,407 60,000 18,000 18,000 
190120         2.4% 5,315 100 30% 30 30 100% 5,315 50,000 15,000 15,000 
190190         8.7% 18,918 100 30% 30 30 100% 18,918 40,000 12,000 18,918 
210112         0.0% 0 100 30% 30 30 100% 0 500 150 150 
210120         0.0% 0 100 1% 1 1 100% 0 800 8 8 
210610       TRQ 0.1% 160 100 10% 10 10 100% 160 600 60 160 
210690         20.7% 45,211 100 50% 50 50 100% 45,211 100,000 50,000 50,000 
220290         2.6% 5,776 100 10% 10 10 100% 5,776 15,000 1,500 5,776 
230990         5.1% 11,132 100 10% 10 10 100% 11,132 10,000 1,000 11,132 
350220       TRQ 6.0% 13,039 100 95% 95 95 100% 13,039 25,000 23,750 23,750 
350400         0.3% 582 100 95% 95 95 100% 582 10,000 9,500 9,500 
                                
Total        100% 218,510 2,000  661 661   218,510 441,900 176,518    TN/AG/26 
 Page 131 
 
 
  Notes for Attachment G:  Tariff Quota Fill Coefficient Template 
 
The Tariff Quota Fill Coefficient Template shall be  used for any product category from Attachment A 
(when finalized) that may be declared Sensitiv e and shall include the following columns:  
 
(1) All HS-6s in common product category 
 (2) All bound TRQ over-quota and tariff-only lines within HS-6  (3) All detail lines (or separately bound in-quota lines or applied tariff lines).  
 
(4) Bound tariff line description  (5) Product import content coefficients used for the purpose of establishing and administering tariff quotas on an equivalent basis to the unit of measure on which domestic consumption was 
calculated. These coeffficients shall be used for the purpose of coun ting imports under different tariff 
lines against tariff quota fill where such imports need to be converted to an equivalent unit of measure 
(eg. carcass weight equivalent, grain equivalent, egg equivalent, etc.). TN/AG/26 
Page 132  
 
  Attachment G:  Tariff Quota Fill Coefficient Template 
 
Technical coefficients are widely used in exis ting domestic consumption calculations to convert 
import quantities to a common unit of measure (eg. carcass weight equivalent, grain equivalent, egg 
equivalent, etc.) and to adjust import quantities to  appropriately reflect the content of the product 
category concerned (eg. the wheat equivalent content of pasta). 
 All Members are to provide the technical coefficien ts applied to import quantities (which for those 
tariff lines included in Attachment C would be the same  or aggregated coefficients used in Column 6 
of that attachment) and these coefficients sh all be used for the purpose of establishing and 
administering tariff quotas on an equivalent b asis to the unit of measure on which domestic 
consumption was calculated.  These coeffficients sh all be used for the purpose of counting imports 
under different tariff lines against tariff quota fill wh ere such imports need to be converted to an 
equivalent unit of measure. 
 
 
Member     Country X 
Product Category   Product Y 
 
 
(1) (2) (3) (4) (5) 
HS6  
(2002 Nomen-
clature) Bound Tariff 
Line  Detailed 
Line(s) Bound Tariff Line Description Product Import Content 
Coefficient (TL) 
405102010 Butter  100% 040510 04051020 405102020 Butter  100% 
405203010 Butter substitute dairy spreads, over 45% 
butterfat weight 60% 
04052030 
405203020 Butter substitute dairy spreads, over 45% 
butterfat weight 60% 040520 
04052040 405204000 Butter substitute dairy spreads, containing 
45% or less butterfat by weight 40% 
405902010 Fats and oils derived from milk, other than 
butter or dairy spreads 122% 
040590 04059020 
405902020 Fats and oils derived from milk, other than 
butter or dairy spreads 122% 
 
  
_______________ 
  TN/AG/26 
 Page 133 
 
 
   WORLD TRADE  
ORGANIZATION  TN/AG/W/5 
6 December 2008 
 
 (08-6016) 
Committee on Agriculture 
Special Session  
 
  
REVISED DRAFT MODALITIES FOR AGRICULTURE 
SENSITIVE PRODUCTS:  DESIGNATION 
 
 
1. This paper, like TN/AG/W/6 and 7, is much more like work-in-progress than is the Revised 
Draft of Modalities itself (TN/AG/W/4/Rev.4).  In these papers, it is not my intention to put forward 
precise suggestions for modalities because such preci se suggestions as I have made in the fourth 
revision (which is actually the fifth revision of modalities which I have done if you start with 
TN/AG/W/3) were the result of convergence to the poi nt where I felt such progress could be captured. 
2. Rather than propose a single solution to the designation of Sensitive Products, this working 
document sets out the issue and indicates a way forwar d which could, hopefully, operate as a platform 
to get to closure.  My reason for issuing this, a nd the other working documents, in this more formal 
format is to ensure that it is distributed in the same way and at the same time as the fourth Revised 
Draft Modalities for Agriculture itself. 
3. Based on constructive consultations to this point, we have progressed over differences on 
Sensitive Products, but we are still short of a cl ean text, let alone agreement on key matters.  
4. As regards Japan and Canada they are si gnalling unambiguously that they cannot limit 
themselves to 4 per cent of sensitive products.  Cana da has signalled it desires 6 per cent and Japan 8 
per cent.  Various ideas have been tried but nothin g has commanded consensus.  One could just leave 
it at that for political decision – in a certain sense the text per se  now presents it that way which seems 
to be the fairest thing to do in the circumstanc es when you simply do not have agreement on such a 
sensitive matter. 
5.  But the constructive engagement we had did su ggest certain lines of possibility and, one of 
these days, a solution is actually going to have to be found that works for everyone.  In that spirit, and 
based on what I have heard, the best I can sugg est as regards Canada is that the following could 
represent options – they are not intended as last word legal drafting – from which a final decision could be made.  Adjustments could obviously be made  to these options, but if this is ever going to be 
resolved, my sense is that it something close to wh at is outlined below could be a way to create a 
springboard to closure. 
6.  
Either: 
Canada may also have access to the maximum num ber of tariff lines provided for in the 
second sentence of paragraph 71 provided that (a) for each tariff line that is additional to TN/AG/26 
Page 134  
 
  the 4 per cent
1 under paragraph 71 first sentence, they provide an additional 1.5 per cent of 
domestic consumption to the 4 per cent of  domestic consumpti on provided for under 
paragraph 74 for those additional lines (i.e. 5. 5 per cent of domestic consumption for each 
additional line over the 4 per cen t limit); and (b) for all of th e 4 per cent of tariff lines 
referred to in paragraph 71 first sentence, they provide an additional 0.5 per cent of 
domestic consumption to the 4 per cent of  domestic consumpti on provided for under 
paragraph 74 (i.e. 4.5 per cent of domestic cons umption for the default 4 per cent of tariff 
lines). 
Or: 
Canada may also have access up to the maximum num ber of tariff lines provided for in the 
second sentence of paragraph 71 provided that  an additional 1 per cent of domestic 
consumption is provided for each and every tar iff line declared to be sensitive (i.e. 5 per 
cent of domestic consumption for each and every tariff line declared to be sensitive). 
7. As regards Japan, I have not to this point had the impression that either of the above two 
options would work.  Nor have I had any basis from the consultations to suggest any other approach 
that might generate convergence.  Of course, Japan  has tabled its own proposal as regards access to a 
total of 8 per cent of tariff lines for Sensitive Products.   
8. However, this is not, of course, just a questi on of numbers for Sensitive Products viewed in 
clinical isolation from everything else. There would be questions as to whether or how this affected those observing the default number and how it affected other elements in the text. 
9. As regards paragraph 76, some changes have been  made to the text within square brackets – 
which remains, as an issue, of real contention d espite ongoing consultations.  I have no emerging 
consensus by way of compromise or alternative.  Th e best I can suggest as a possible alternative is the 
following – proffered more in hope than expectation of agreement: 
Alternatively, certain Members
2 may retain no more than 2 per cent of their tariff lines in 
excess of 100 per cent ad valorem for no long er than four years after the implementation 
period of paragraph 61.  In addition, each year following the implementation period , they 
shall reduce one-quarter of retained lines to 100 per cent ad valorem. 
 
 
 
_______________ 
 
                                                      
1 This presentation assumes that the two-thirds deviation is used and there are no other adjustments.  If 
the one-half or one-third deviation or there were other adjustments made as provided for in the Revised Draft 
Modalities for Agriculture, then the figures th at follow should be adjusted accordingly. 
2 Iceland, Japan, Norway, Switzerland  TN/AG/26 
 Page 135 
 
 
   WORLD TRADE  
ORGANIZATION  TN/AG/W/6 
6 December 2008 
 (08-6015) 
Committee on Agriculture 
Special Session  
 
  
REVISED DRAFT MODALITIES FOR AGRICULTURE 
SENSITIVE PRODUCTS:  TARIFF QUOTA CREATION 
 
1. Based on consultations to this point, it is my sen se that neither one nor the other of the options 
presented in paragraph 83 of the text will prevail.   If that judgement is correct, the only realistic 
landing zone will be on the basis of a fully transpar ent, strictly conditioned and limited allowance for 
some tariff lines not currently subject to tariff rate q uotas to be declared sensitive and newly subject to 
tariff rate quotas.  Based on constructive consultati ons that have taken place to this point, the 
following represent the elements of convergence that have emerged.  They are not in final legal 
drafting form but could, hopefully, operate as a platform to get to closure.  
2. Paragraph 83, second optio n would be deleted. 
3. As regards paragraph 83 first option, someth ing along the following lines would be added to 
the sentence:  “…..or meets th e conditions outlined below.” 
4. It would need to be followed by something along the following lines:  
5. Tariff lines not currently subject to tariff rate  quotas can be declared sensitive and be newly 
subject to a tariff quota provided that the number of these lines does not exceed 1 per cent of tariff lines for any Member
1; that the 1 per cent is taken out of the maximum entitlement of sensitive tariff 
lines for the Member concerned; that the lines concer ned are subject to provision of an additional 2 
per cent of domestic consumption beyond what woul d be otherwise required un der paragraph 74; that 
the in-quota tariff rate is zero; and, as for a ll other sensitive product tariff lines, that they are 
scheduled and applied erga omnes  on a most-favoured-nation basis.  The lines concerned shall be 
transparently specified in full tariff line detail a nd with the access amounts provided in the attachment 
as an integral part of these modalities. 
6. Where there has been significant historical trade such that the above formulation would have 
the effect of manifestly and artificially restraining trade in a manner contrary to the object and purpose of these modalities, the domestic consump tion requirement above shall be added to the 
historical trade figure for the tariff lines concerned.   The product(s) concerned and the resultant access 
amounts shall be specified in full detail at tariff line level for the Member concerned in the attachment 
and constitute an integral part of these modalities (situation B in the attachment). 
7. In a particular case where use of historical tr ade and the above consumption factor would still 
manifestly and artificially restrain trade in a ma nner contrary to the object and purpose of these 
modalities due to the very recent and dynamic trade in  the product concerned, there shall be a specific 
provision for this product.  The access amounts shall be specified in full detail at tariff line level for 
                                                     
 
1 Except Norway which shall meet the terms of the last paragraph. TN/AG/26 
Page 136  
 
  the Member(s) concerned in the attachment and constitute an integral part of these modalities 
(situation C in the attachment). 
8. In the case of Norway, it shall abide by the provisions regarding 2 per cent additionality 
above except where, according to Attachment Ai(G) it has designated sensitive products at a seven 
digit level and allocated the entire aggregate domes tic consumption to these three product categories.  
In this case it shall, as its contribution, provide an  additional 0.5 per cent of domestic consumption for 
the whole TRQ for these three product categories.  Th e access amounts shall be specified in full detail 
at tariff line level in the attachment and c onstitute an integral part of these modalities.  TN/AG/26 
 Page 137 
 
 
  ANNEX 
 
Developed Country 
Member Default situation: 
Product and amount of TRQ access 
concerned at  tariff 
line level  Situation B: Product 
and amount of TRQ access concerned at 
tariff line level Situation C: Product 
and amount of TRQ access concerned at 
tariff line level 
European 
Communities    
 
       
United States    
 
 
 
 
    
Japan    
 
       
Norway    
 
  
 
    
Switzerland    
 
 
      
 
 
 
 
_______________ 
 
  TN/AG/26 
 Page 139 
 
 
   WORLD TRADE  
ORGANIZATION  TN/AG/W/7 
6 December 2008 
 (08-6014) 
Committee on Agriculture 
Special Session  
 
  
REVISED DRAFT MODALITIES FOR AGRICULTURE 
SPECIAL SAFEGUARD MECHANISM 
 
1. Based on constructive consultati ons to this point, we have made genuine progress on the SSM 
as relates to what happens in cases where it w ould mean going above the bound rate.  And the 
progress that we have made, while even reaching something that I could describe as tantamount to 
convergence on some elements, has still been uneven.  In other words, we have made real progress, 
but the unavoidable reality is that we are still shor t of a clean text, let alone actual agreement on key 
matters.  That being so I could hardly pretend th at there was something cooked and ready to go that 
could be inserted in the revised draft text. 
2. But I could not leave things just like that, because we have manifestly moved on.  The 
constructive engagement we have had did at least quarry out certain lines of direction and, one of 
these days, a solution is actually going to have to  be found that works for everyone.  We need 
something to work on in a spirit of getting to a conclusion.  In that spirit, and based on what I have heard, the best I can suggest is the following as an effort to represent the elements of convergence that 
are emerging.  It is not in final legal drafting form but could, hopefu lly, operate as a structure to get us 
to closure.  Adjustments could obviously be made to  the drafting below, but if this issue ever going to 
be resolved, my sense is that it something not a m illion miles from what is outlined below could be a 
way to create a springboard to closure. 
3. The following shall be the basis upon which the SSM may be triggered for “above the bound 
rate”: 
The volume-based SSM shall, subject to th e conditions in sub-paragraph x below, be 
applicable within a twelve month reporting period.  This twelve month period may be a 
marketing year, calendar year, fiscal year etc at the discretion of the Member concerned.  
But, once chosen, it is the binding basis for application.  
The SSM shall become applicable when, within t hat twelve month period, the trigger levels, 
calculated in respect of the average of the p receding three years’ imports, have been met.  If, 
however, an SSM was in force during that three year period, the monthly average of the 
imports net of that period of SSM applicati on shall be calculated and applied as the proxy 
imports for the months during which the SSM wa s in force, unless actual imports during its 
application were higher.  
Where the volume of imports during any peri od exceeds 120 per cent but does not exceed 140 
per cent, the maximum additional duty that may be imposed shall not exceed one-third of the 
current bound tariff or eight percentage  points, whichever is the higher. TN/AG/26 
Page 140  
 
  Where the volume of imports during any period exceeds 140 per cent, the maximum 
additional duty that may be imposed shall not exceed one-half of the current bound tariff or 
12 percentage points, whichever is higher. 
These remedies shall not normally be applicab le unless the domestic price is actually 
declining.  There may however be exceptional  circumstances where the authorities have good 
reason to believe that there would be at least an imminent foreseeable decline but may lack 
sufficiently reliable data to be in a position to verify that robustly at the time.  If so, action 
may be taken in such excep tional circumstances, subject to an expedited review by a standing 
panel of experts in the event that this is requested .  In any case, in the event that reliable data 
is subsequently available it shall be used and,  if it does not verify decline, the measure shall 
be rescinded.  
Once the SSM has been triggered, it may be app lied for a maximum of [4/8] months and shall 
not be re-applicable thereafter until an equiva lent period of months has elapsed. 
If the SSM is not triggered until within [2/4] months of the end of any given twelve month 
period it may, however, be applicable into the next  12 month period provided that this is for 
no more than [2/4] months and that the maximum period of application and conditionality for 
reapplication is also respected. 
The SSM shall not be applied to more than 2.5% of tariff lines in any 12 month period. 
4. I feel that the above indicates elements wh ere there has been more manifest convergence 
emerging and I am relatively more optimistic that th e above could be used as a robust enough working 
structure for getting to an agreement.  The area be low is less well advanced because the concept of 
any kind of pause is still more sensitive than other matte rs.  At this point at least, there is still not as 
much emergent consensus as on some other elements and it may prove to be the case that it is intractable.  There are some Members who would s ee no need to even go here.  On the other hand I 
cannot ignore that this area has, for other Members,  proved to be an important one which is perhaps 
all the more so because it is perceived to be the only possible way of allaying even to a small degree 
anxieties about seasonality effects.  I think it’s useful to at least lay out some options to help to foster 
convergence, if the will is there.  Some would like th ere to be no pause.  Others would like to ensure 
that there can be no consecutive application at all.  If there is to be a compromise the following are the 
best I can offer.  They need not be mutually exclusive: 
[In the event that the SSM for seasonal peris hable product tariff lines is  triggered and applied 
in two consecutive twelve month periods such t hat its total period of application is 12 months 
or more, it may not be applied in (or spill-over into) the subsequent twelve month period.]   
[There shall be a review after 2 years of the op eration of the SSM as it applies to seasonal 
perishable product lines, with particular em phasis on the impact on developing country 
Members exports. The purpose of such a review will be to determine whether there is any   disproportionate effect on seasonally trade d products and, if so, to recommend ways and 
means to redress any such impact in a manner whic h is compatible with effective functioning 
of the SSM.] 
[In the event that an SSM should be applied fo r three consecutive twelve month periods, the 
standing group of experts shall, on request by an affected Member, evaluate whether or not the measure is effectively functioning as a measu re to deal with import surges of an inherently 
temporary nature that is not disrupting normal  trade or whether it is a response to an 
underlying more structural problem. They shall render their views and opinions including 
non-binding recommendations as appropriate.]   TN/AG/26 
 Page 141 
 
 
  5. I should also note the fact that there are other matters still requiring subsequent decision.  It 
has not been feasible to turn to such matters in any detail since Ju ly because the working priority has 
been to sort out the “above the bound rate” approach first. 
(a) Status of LDCs:  Irrespective of a “gen eral” solution, it has been the working 
hypothesis (no-one has objected) that LDCs will have a more flexible arrangement as 
was originally conceived in Rev.3, alt hough the triggers and remedies were never 
settled and LDCs had sought greater flexibilities than in the Rev.3 text. 
(b) Status of SVEs:  If there is a “general” solu tion found, is it to be assumed that this is 
applicable to all developing countries including SVEs? 
(c) Status of “Under the bound rate”:  Consultati ons subsequent to July indicated that a 
number of Members had areas in Rev 3 that they disagreed with as regards “under the 
bound rate” paragraphs.  But it was recognised  that this could not be progressed one 
way or another until “above the bound rate” wa s resolved.   It is not clear how far 
reaching any changes might prove to be here. 
 
 
 
__________