. /.   
 WORLD TRADE  
ORGANIZATION  TN/AG/GEN/27 
17 December 2007 
 
 (07-5628) 
Committee on Agriculture 
Special Session Original:   English 
 
 
G-33 PROPOSAL ON SPECIAL PRODUCTS 
 
 
 The following communication, dated 14 December 2007, is being circulated at the request of 
the G-33.  
 
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  I. DESIGNATION OF SPECIAL PRODUCTS 
Mandate: 
 
1. Special Products (SPs) shall be self-designated guided by indicators based on the criteria of 
food security, livelihood security and rural developm ent needs of individual developing country 
Members. 
Approach for the Self-Designation: 
 2. Developing country Members shall have the flexibility to self-designate a guaranteed 
minimum number [x] % of total tariff lines as SPs, wh ich shall be higher than  the number of Sensitive 
Products for developing country Members.  In add ition, developing country Members shall have the 
flexibility to self-designate an additional number [y] % of SPs provided that these are guided by 
indicators.  Based on this hybrid approach, devel oping country Members shall have the right to self-
designate up to a maximum 20% of total agricultural tariff lines as SPs.  
II. TREATMENT OF SPECIAL PRODUCTS: 
3. The G-33 underscores and reiterates that maintaining a no-commitment tier (zero cut 
treatment) must remain a fundamental aspect for SPs.  This is consistent w ith the Doha Mandate of 
providing maximum flexibility to developing co untry Members to address their food security, 
livelihood security and rural development needs.  The G-33 therefore will not be in a position to 
accept any design of SPs that does not pr ovide for such a tier or category.  
4. The G-33's graded approach to treatment pr ovides the preferred practical and workable 
solution for all.  While emphasizing the fundament al importance of SPs in the first grade being 
exempt from any commitments, the Group is ready to provide new proposals on the numbers of tariff 
lines in each grade as well as enhancing the treatme nt for the two remaining grades, as follows: 
Grade Percentage of  
SPs Tariff Lines Treatment (Cuts) 
1 40 % 0 % 
2 30 % 8 % 
3 30 % 12 % TN/AG/GEN/27 
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  5. This new G-33 proposal represents a signi ficant movement from the Group's previous 
position. 
III. FOOTNOTE 3 
6. The G-33 welcomes the treatment proposed by  the Chair for Members entitled to utilize 
Footnote 3 of Document TN/AG/W/4.  This means that these countries will not be obliged to reduce 
their tariffs more than 24% in average and that th ere will not be any obligation to apply any minimum 
reductions per tariff line.  The Group is also of th e view that for these Members the concept and the 
mandate of Special Products shall be integrated into  this solution through the inclusion of appropriate 
provisions in the modalities text on SPs.  At the same  time, it should be explicitly clear in the next 
modalities text that the Footnote 3 beneficiarie s will not need to apply any indicators in the 
designation of their SPs. 
IV. EXCHANGE MECHANISM 
7. Developing country Members may designate additional SPs by converting the unused 
Sensitive Products allowance by a certain exchange rate. 
8. Unused Sensitive Products allowanc es can be converted to SPs w ith an exchange rate of a 
ratio of 3:2. 
V. ADDITIONAL FLEXIBILITIES 
9. SVEs or other beneficiary Members which choose not to use Footnote 3 provisions shall have 
additional flexibilities in the designation, number and treatment of SPs, in particular that they will not need to apply any indicators in the designation of their SPs. 
10. RAMs shall have additional flexibilities with the number and treatment of SPs. 
 
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