WORLD TRADE  
ORGANIZATION  TN/MA/W/124 
4 December 2009 
 (09-6211) 
Negotiating Group on Market Access Original:   English 
  
 
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Compendium, prepared by Japan, Switzerland, and the United States, containing the most recent 
NTBs text on a Ministerial Decision on Trade in Remanufactured Goods as well as the history of 
questions and answers related to this proposal  
 
Communication from Japan, Swit zerland  and the United States 
 
  The following communication, dated 2 December 2009, is being circulated at the request of 
the delegations of Japan, Switzerland and the United States. 
 
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Ministerial Decision on Trade in Remanufactured Goods 
 Members,   
 Recalling  that pursuant to paragraph 16 of the Doha Ministerial Declaration, Members 
agreed to negotiations aimed at reducing or as appropriate eliminating tariffs and non-tariff 
barriers on non-agricultural products;    
Recognizing  the objectives of protecting and preserving the environment, promoting 
sustainable development by preventing unn ecessary waste and conserving energy and raw 
materials, raising standards of living, and ex panding the production of and trade in goods; 
 
Noting  the development of remanufacturing as an important new field in 
manufacturing; 
 
Noting  that business enterprises are using reman ufacturing across an expanding range 
of products, such as earthmoving equipment, automotive parts, medical devices, information 
and communication technology products, industr ial machinery, precisio n instruments, and 
office equipment;  
 
Considering  the benefits to the environment and to  consumers of the production of and 
trade in remanufactured goods; 
 Recognizing  that remanufacturing takes place in  developed and developing countries 
alike, creating jobs and facilitating economic growth;  
 Desiring  to enhance opportunities for trade in remanufactured products by reducing or, 
as appropriate, eliminating non-tariff barriers in respect of those goods;     Mindful  of Members’ right to adopt measures for the protection of human, animal or 
plant life or health, or of the environment, consistent with the WTO Agreement; TN/MA/W/124 
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   Decide as follows: 
 1. Each Member’s trade regime should evolve in a manner that enhances market access 
opportunities for remanufactured goods.
1 
2. Members should review their non-tariff measures  with a view to ensuring that they do 
not impose prohibitions or restrictions on the importation of remanufactured goods that are 
proscribed by the Multilateral Agreements on Trade in Goods. 
3. Members shall meet every six months under th e auspices of the Council on Trade in 
Goods to discuss Members’ progress in reducing or, as appropriate, eliminating non-tariff barriers in respect of remanufactured goods.  The discussions shall be conducted using 
procedures that take fully into account the speci al needs and interests of developing and least-
developed country participants.   
4. Members shall afford sympathetic considerati on to any request for consultation from 
other Members concerning their non-tariff me asures affecting remanufactured goods.  Such 
consultations shall be without prejudice to a Member’s rights and obligations under the WTO 
Agreement.  
5. For purposes of this Decision, remanufactured good means [a non-agricultural good that 
(1) is entirely or partially comprised of parts (i) that have been obtained from the disassembly of 
used goods; and (ii) that have been processed, cleaned, inspected, or tested to the extent 
necessary to ensure they are in original working condition; and (2) has a warranty.] 
[NB:  Definition subject to further discussion.]    
 Question from Singapore:  Paragraph 5 - Why is the definition in the proposal substantially different 
from those seen in the US’ free trade agreements?  The difference could be found in product scope 
and the criteria of life expectancy, performance standards, and warranty.  (JOB(09)/22)  
• Co-sponsors’ answer: The definition of a re manufactured good proposed by the co-sponsors 
(which is in brackets) does contain language on warranty.  However, we believe that life 
expectancy and performance standards are not relevant characteristics in this proposal’s 
non-binding definition.   
  In U.S. free trade agreements, the defin ition of a remanufactured good is linked to the 
definition of a recovered good in a binding rules- of-origin chapter of the agreement.  This 
proposal does not address recovered goods, nor can it address rules of origin, and so must be 
substantially different from the re levant provisions in U.S. free trade agreements.  The only 
binding obligation in our proposal is for Me mbers to meet every six months to discuss 
barriers to trade in remanufactured goods.  There is no requirement for Members to 
implement the definition of remanufactured good into their own domestic legislation or 
regulation.  (TN/MA/W/117) 
 Question from Korea:  With regard to the scope of  the products concerned, do the proponents plan to 
identify certain ranges of remanufactured goods to be subject to the proposal or will they make this 
proposal applicable to any remanufactured good? (JOB(09)/26) 
 
• Co-sponsors’ answer:  The primary objective of the proposal is to meet every six months, 
after the DDA concludes, under the auspices of  the Council for Trade in Goods to discuss 
                                                     
 
1 This paragraph does not require a Member to redu ce or eliminate tariffs on  remanufactured goods.  TN/MA/W/124 
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  Members’ progress in reducing or, as appropriate, eliminating non-tariff barriers in respect of 
remanufactured goods, as defined in paragraph 5 of the text.  This proposal concerns any 
good that meets this specific definition, and th e proponents do not plan to identify a more 
specific or narrower range of remanufact ured goods within that definition. 
 
 Note that Members would not be required to  adopt this definition of remanufactured goods 
into their domestic laws or regulations.  Ra ther it would serve as a basis for the post-DDA 
discussions.  (TN/MA/W/112) 
 Question from Korea:   What will the quality standard of the remanufactured goods be? Will it be the 
same as for new products in kind, or is a ne w standard for remanufactured goods necessary? 
(JOB(09)/26)  
• Co-sponsors’ answer:  First, we need to make a clear di stinction between “standards,” 
compliance with which is voluntary, and “techni cal regulations,” compliance with which is 
mandatory (see Annex 1 of the TBT Agr eement).  Members are free to regulate 
remanufactured goods so long as it is done in conf ormity with WTO rules.  With respect to 
standards, to a large degree these are develope d in the private sector and driven by the 
marketplace.  Second, the only binding obliga tion in our proposal is for Members to meet 
every six months to discuss alleged barriers to trade in remanufactured goods and there is no requirement for Members to implement the de finition of remanufactured good into their own 
domestic legislation or regulation.  This proposal does not intend to address standards. 
 Furthermore, the United States addressed sim ilar issues in its concept paper on trade in 
remanufactured goods in December 2005 in TN/MA/W/18/Add.11. (TN/MA/W/112) 
 
Question from Malaysia:  Paragraph 5 - Needs cl arifications on definition and identification 
of the product coverage. Lack of clarity on definition and product c overage could promote 
junk yard activities.  (JOB(09)/93) 
 
• Co-sponsors’ answer:  First, we would like re fer Malaysia to our answer to Singapore’s 
question on the definition in TN/MA/W/117, pa rticularly concerning the non-binding nature 
of the definition.  Could Malaysia provide further detail on what it means by “junk yard 
activities”?  It would be helpful if Malaysia could provide guidance on how it would want to 
clarify the definition of a remanufactured good in  paragraph 5, beyond the revisions we made 
in past versions of the text.  We would be happy to discuss Malaysia’s concerns and ideas on 
the definition bilaterally.  
 
Second, concerning the product coverage, as noted in the preamble of our revised negotiating 
text (TN/MA/W/18/Add.16/Rev.3), business en terprises are using remanufacturing across an 
expanding range of products, such as earthmoving equipment, automotive parts, medical 
devices, information and communication technolog y products, industrial machinery, precision 
instruments, and office equipment although this preamble clause does not have any direct legally operative effect on the definition of "r emanufactured good". Additionally, we invite 
Malaysia to review JOB(07)/224 for an illustrative examples of remanufactured goods. 
(JOB(09)/155)  
 Question from Malaysia:  On implementation m echanism, how this proposal would able to 
differentiate between new and remanufactured goods at entry / exit points. (JOB(09)/93) 
 
• Co-sponsors’ answer: First, could Malaysia specify what it means by “implementation 
mechanism”?  If Malaysia is referring to th e negotiating text itself, undertaking a work 
program at the Council for Trade in Goods is the only aspect of the proposal from a TN/MA/W/124 
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  procedural perspective requiring implementati on.  Beyond that, we are not sure what 
“implementation mechanism” Malaysia is referencing.   
 
Second, this proposal is not prescriptive on Memb ers’ customs policies.  As we understand, 
policies and regulations in this regard vary from Member to Member.  Some prefer labelling 
as a means to identify remanufactured go ods.  For example, companies selling 
remanufactured goods in the United States have th e obligation to clearly label remanufactured 
goods as such.  We have elaborated on this  issue in JOB(07)/60, “Regulation of 
Remanufactured Goods: Answers to Frequently  Asked Questions”.  The co-sponsors are 
happy to discuss this issue further with  Malaysia bilaterally.   (JOB(09)/155 
 Question from China:  China holds the view that , on one hand, the development of remanufacturing 
industry is consistent with sustainable development.  But on the other, it is too early for developing 
Members to commit themselves to anything on rema nufactured goods because this industry is at its 
immature stage and the concept of remanufactured goods is still new to its domestic constituency.   
China thanks the US for clarifying  that this proposal does not require Members to adopt this definition 
of remanufactured goods into their domestic laws or regulations. The only binding obligation in the 
proposal is for Members to meet every six month to  discuss alleged barriers to trade.  Bearing the 
above clarification in mind, China would like to ask the proponents: “do the current Council for Trade 
in Goods and its subsidiary committees prevent Me mbers from raising their concerns in relation to 
remanufactured goods?” If yes, please give an exampl e. If no, what is the value added through this 
proposal? (JOB(09)/60) 
 
• Co-sponsors’ answer:  The co-sponsors believe the merits of trade in remanufactured goods 
for WTO Members require a focused agenda in the Council for Trade in Goods, as many relevant market access issues raised by our industries cut across WTO Committees and 
subject matter.  Nothing prevents Member s from raising these issues in WTO Committees 
now.  However, we expect that a work program using our proposed definition of a 
remanufactured good as a focal point for discussions will produce more value-added 
discussions and outcomes in the CTG for an industry that is growing in importance and can provide significant economic and environmenta l benefits for both de veloped and developing 
country Members.   
 
The co-sponsors have acknowledged that the to pic of trade in remanufactured goods was 
relatively new for most Members when the Unite d States first raised it in NAMA in 2004 and 
introduced our concept paper in the fall of 2005.  Since then we have presented information to 
many Members at the WTO, bilaterally, and in  other fora on remanufacturing and the issues 
surrounding trade in remanufactured goods.   We believe that Me mbers are now more 
comfortable with these concepts and understand how they can help the development of their 
economies.   
 
 
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