ࡱ>   @ \bjbj5*5* n7W@W@*'V W W WXXXXlY@!lY.t*v,-(--.O5C7$R. XIU..IUIUXX--vvvIUX-X-vIUvv,XX-h* 0Iled/F%0.uN7i NlYlYXXXXNX?8 AvH|-N?8?8?8lYpxtudtlYpxtuWorld Trade OrganizationTN/AG/W/4/Rev.1 8 February 2008(08-0611)Committee on Agriculture Special Session REVISED DRAFT MODALITIES FOR AGRICULTURE Revision This document reflects changes to the modalities intending to reflect the negotiation process. Domestic Support Overall reduction of trade-distorting domestic support: A Tiered Formula Base level The base level for reductions in Overall Trade-Distorting Domestic Support (hereafter "Base OTDS") shall be the sum of: the Final Bound Total AMS specified in Part IV of a Member's Schedule; plus for developed country Members, 10 per cent of the average total value of agricultural production in the 1995-2000 base period (this being composed of 5 per cent of the average total value of production for product-specific and non-product-specific AMS respectively); plus the higher of average Blue Box payments as notified to the Committee on Agriculture, or 5 per cent of the average total value of agricultural production, in the 1995-2000 base period. For developing country Members, item (b) of paragraph 1 above shall be 20 per cent of the average total value of agricultural production in the 1995-2000 or 1995-2004 period as may be selected by the Member concerned. For developing 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 The Base OTDS shall be reduced in accordance with the following tiered formula: where the Base OTDS is greater than US$60billion, or the equivalent in the monetary terms in which the binding is expressed, the reduction shall be [75][85]percent; where the Base OTDS is greater than US$10billion and less than or equal to US$60billion, or the equivalents in the monetary terms in which the binding is expressed, the reduction shall be [66] [73] per cent; where the Base OTDS is less than or equal to US$10 billion, or the equivalent in the monetary terms in which the binding is expressed, the rate of reduction shall be [50][60] per cent. Developed country Members with high relative levels of Base OTDS in the second tier (i.e. at least 40per 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 specified in paragraphs 3(a) and 3(b) above. Implementation period and staging For developed country Members, the reductions shall be implemented in six steps over five years. 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 implemented annually in five equal steps. 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 Developing country Members with no Final Bound Total AMS commitments shall not be required to undertake reduction commitments in their Base OTDS. For developing country Members with Final Bound 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 undertake reduction commitments in their Base OTDS. For developing country Members, the reductions 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 implemented annually in eight equal steps. Recently-Acceded Members Saudi Arabia, the Former Yugoslav Republic of Macedonia and Viet Nam, as very recently-acceded Members (hereafter "RAMs") shall not be required to undertake reduction commitments in their Base OTDS. Small low-income RAMs with economies in transition 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 All Members other than least-developed country Members 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. 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 shall ensure that the sum of the applied levels of trade-distorting support under each OTDS component does not exceed the Annual and Final Bound OTDS levels specified in Part IV of its Schedule. The Agreement on Agriculture shall be amended in order to provide for these OTDS modalities including amendments to existing Articles, where necessary, to ensure consistency with the above provisions. Final Bound Total AMS: A Tiered Formula Tiered reduction formula The Final Bound Total AMS shall be reduced in accordance with the following tiered formula: 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 70percent; 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; 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. Developed country Members with high relative levels of Final Bound Total AMS (i.e. at least 40per cent of the average total value of agricultural production during the 1995-2000 period) shall undertake an additional effort in the form of a higher 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 between the reduction rates specified in paragraphs 13(b) and 13(c) above. Implementation period and staging For developed country Members, reductions in Final Bound Total AMS shall be implemented in six steps over five years. For developed country Members in the top two tiers specified in paragraphs 13(a) and 13(b) above, such reductions shall be implemented by means of a first instalment of a [25] per cent reduction on the first day of implementation, followed by reductions in equal annual instalments over five years. For other developed country Members, the reductions shall be implemented in six equal annual instalments over five years, commencing on the first day of implementation. Special and differential treatment The reduction in Final Bound Total AMS applicable to developing country Members shall be two-thirds of the reduction applicable for developed country Members under paragraph 13(c) above. The reductions in Final Bound Total AMS shall be implemented in nine equal annual instalments over eight years, commencing on the first day of implementation. NFIDCs listed in document G/AG/5/Rev.8 shall not be required to undertake reduction commitments in their Final Bound Total AMS. Developing country Members shall continue to have the same access to the provisions of Article 6.2 of the Agreement on Agriculture as under their respective existing ϲʹ obligations. Recently-Acceded Members Saudi Arabia, the Former Yugoslav Republic of Macedonia and Viet Nam, as very recently-acceded Members shall not be required to undertake reduction commitments in their Final Bound Total AMS. Small low-income RAMs with economies in transition shall not be required to undertake reduction commitments in their Final Bound Total AMS. In the case of such Members, investment subsidies which are generally available 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. 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 Article 18.4 of the Agreement on Agriculture shall continue to apply in order to respond to the situations referred to in that provision. Product-Specific AMS Limits General Product-specific AMS limits shall be set out in terms of monetary value commitments in PartIV of the Schedule of the Member concerned in accordance with terms and conditions specified in the paragraphs below. The product-specific AMS limits specified in the Schedules of all developed country Members other than the United States shall be the average of the product-specific AMS during the Uruguay Round implementation period (1995-2000) as notified to the Committee on Agriculture. For the United States only, the product-specific AMS 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. 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 modalities, for which notifications to the Committee on Agriculture have been made. In cases where the product-specific AMS support for each year during the base period specified in paragraphs 22 and 23 above was below the de minimis level provided for under Article6.4 of the Uruguay Round Agreement on Agriculture 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 scheduled product-specific AMS limits shall be implemented in full on the first day of the implementation period. Where the average notified product-specific AMS in the two most recent years for which notifications are available was higher, the limits shall be implemented in three equal annual instalments, with the starting point for implementation being the lower of the average of those two years or 130 per cent of the scheduled limits. Special and differential treatment Developing country Members shall establish their product-specific AMS limits by choosing one of the following methods, and scheduling all their product-specific AMS commitments in accordance with the method chosen: the average product-specific AMS during the base period 1995-2000 or 1995-2004 as may be selected by the Member concerned, as notified to the Committee on Agriculture; or 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; 20 per cent of the Annual Bound Total AMS in the relevant year during the Doha Round implementation period. Where a developing country Member chooses paragraph 27(a) above as its method for the establishment of product-specific AMS limits that Member shall also have access to the provisions of paragraphs 24 and 25 above. Article 6.3 of the Agreement on Agriculture shall be amended to reflect these modalities. De minimis Reductions 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 per 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] [60] per cent [effective on the first day of the implementation period] [through five equal annual instalments]. Furthermore, where, in any year of the implementation period, a lower level of de minimis support than that resulting from application of that minimum percentage reduction would still be required to ensure that the Annual or Final Bound OTDS commitment for that year is not exceeded, a Member shall undertake such an additional reduction in what would otherwise be its de minimis entitlement. Special and differential treatment For developing country Members with Final Bound Total AMS commitments, the de minimis levels referred to in Article 6.4(b) of the Uruguay Round Agreement on Agriculture (i.e. 10 per cent of a Member's total value of production of a basic 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)5 to which they have access under their existing ϲʹ obligations shall be reduced by at least two-thirds of the reduction rate specified in paragraph 30 above. The timeframe for implementation shall be three years longer than that for developed country Members. Furthermore, where, in any year of the implementation period, a lower level of de minimis support than that resulting from application of that minimum percentage reduction would 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. Developing country Members with no Final Bound 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 ϲʹ obligations to the limits provided for product-specific and non-product-specific deminimis in Article 6.4(b) of the Uruguay Round Agreement on Agriculture. Recently-Acceded Members Saudi Arabia, the Former Yugoslav Republic of Macedonia and Viet Nam, as very recently-acceded Members shall not be required to undertake reduction commitments in de minimis. Small low-income RAMs with economies in transition shall not be required to undertake reduction commitments in deminimis. Other RAMs with Final Bound Total AMS commitments and which have existing de minimis levels of 5per cent shall reduce such levels by at least one-third of the reduction rate specified in paragraph 30 above and the timeframe for implementation shall be five years longer. Other The provisions of Article 6.4 of the Uruguay Round Agreement on Agriculture shall be amended accordingly to conform to these modalities. Blue Box Basic criteria The value of the following domestic support, provided 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: Direct payments under production-limiting programmes if: such payments are based on fixed and unchanging areas and yields; or such payments are made on 85 per cent or less of a fixed and unchanging base level of production; or livestock payments are made on a fixed and unchanging number of head. Or Direct payments that do not require production if: such payments are based on fixed and unchanging bases and yields; or livestock payments are made on a fixed and unchanging number of head; and such payments are made on 85 per cent or less of a fixed and unchanging base level of production. Each Member shall specify in its Schedule which 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. 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 Blue Box support pursuant to paragraphs 46 and 51 below subsequent to the conclusion of this negotiation 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 Overall Blue Box limit The maximum permitted 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 notifications to the Committee on Agriculture where they exist. This limit shall be expressed in monetary terms in Part IV of Members' Schedules and shall apply from the first day of the implementation period. 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 Member shall, instead, be established by application of a percentage reduction in that average base period amount. That percentage reduction shall equal the percentage reduction that the Member concerned is to make in its Final Bound Total AMS. This Blue Box limit shall be expressed in monetary terms and bound in Part IV of that Member's Schedule. An implementation period of no more than [2]years may be provided for any such Member in the event that immediate implementation is unduly burdensome. Product-specific limits For all Members other than the United States, the 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, consistent with Article 6.5(a) of the Uruguay Round Agreement on Agriculture, during the 1995-2000 period. These product-specific limits shall be expressed in monetary terms and bound in Part IV of the Schedule of the Member concerned, and shall apply from the first day of the implementation period. 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 shall use the average value of support for the years notified within that period, provided that there are at least three consecutive notified years within that period. For the United States, the limits to the value of support that may be provided to specific products under paragraph 35(b) above shall be [110] [120] per cent of the average product-specific amounts that would result from applying proportionately the legislated maximum permissible expenditure under the 2002 Farm Bill for specific products to the overall Blue Box limit of 2.5percent of the average total value of agricultural production during the 1995-2000 period. These product-specific limits expressed in monetary terms are annexed as Annex A to these modalities and shall be specified in Part IV of that Member's Schedule. 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). Where this arises in the context of this particular negotiation, full documentation must be provided in support of this "transfer" to ensure that the starting point is verifiably, on the one hand, the product-specific AMS limit that would have been otherwise inscribed in the Schedule through application of the methodology provided above and, on the other, the Blue Box entitlement otherwise inscribed pursuant to application of the methodology set out above. Where this arises as a result of continuation of the reform process after scheduling and during the implementation period, there must be an exact 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 BlueBox limit. In both such situations, the overall Blue Box limit cannot in any case be exceeded. Notwithstanding the above, where 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 a particular product, a product-specific Blue Box limit may still be scheduled but only where the total support for any such products concerned does not exceed 5 per cent of the overall Blue Box limit; there is a maximum for any single product of 2.5 per cent; and the overall Blue Box limit is still respected. This is available to developed country Members with direct payments of the kind that meet the terms of paragraph35(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. If it is resorted to, the Member concerned shall make also an equivalent value reduction in its Total AMS commitment in addition to what it would have been otherwise required to undertake according to the AMS formula cuts. [Where a Member's overall Blue Box support in any year is within the scheduled overall Blue Box limit, but there is product-specific Blue Box support which is in excess of that Member's scheduled product-specific limit, the support for such a product shall be required to be included in its entirety (i.e. not just the portion that is in excess of the scheduled limit) in the calculation of the Current AMS, provided that the scheduled product-specific AMS as well as the Annual or Final Bound Total AMS limits are not exceeded. Where a Member's overall Blue Box support in any year is in excess of that Member's scheduled overall Blue Box limit, and irrespective of whether the scheduled product-specific Blue Box limits are exceeded or not, that support shall be required to be included in its entirety (i.e. not just the amount by which it exceeds the scheduled limit) in the calculation of the Current AMS provided that the scheduled product-specific AMS as well as the Annual or Final Bound Total AMS limits are not exceeded.] Special and differential treatment For developing country Members, the maximum permitted value of support referred to in paragraph 38 above shall be 5 per cent of the average 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 country 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. 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 average 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, shall be entitled to do so even if this would otherwise lead to exceeding the overall Blue Box limit provided for in the paragraph above. As regards the provisions in paragraph 46 above, where a developing country Member has no product-specific entitlement to a Blue Box limit under the above provisions, and no Current AMS support in the base period for a particular product, a product-specific Blue Box limit may still be scheduled but only where the total support for any such products concerned does not exceed 7.5percent of the overall Blue Box limit; there is a maximum for any single product of 5 per cent; and the overall Blue Box limit is still respected. Recently-Acceded Members For RAMs, the maximum permitted value of support referred to in paragraph 38 above shall be 5 per cent of the average total value of agricultural production in the 1995-2000 base period. However, in cases where there is a movement from AMS to Blue subsequent to the conclusion of this negotiation, the 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. Other Article 6.5 of the Agreement on Agriculture shall be amended to reflect the above modalities accordingly. Green Box Annex 2 of the Agreement on Agriculture shall be amended as set out in Annex B of this document. Cotton: Domestic Support Reductions in support for cotton 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 This shall be applied to the base value of support 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 methodology generally applicable above. Implementation 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 treatmentseq level0 \h \r0 seq level1 \h \r0 seq level2 \h \r0 seq level3 \h \r0 seq level4 \h \r0 seq level5 \h \r0 seq level6 \h \r0 seq level7 \h \r0  Developing country Members with relevant AMS and Blue Box commitments for cotton otherwise applicable under the relevant provisions of this Agreement shall provide a rate of reduction for cotton that is two-thirds of that which would be applicable under paragraph  REF _Ref172385565 \r \h  \* MERGEFORMAT 55 above. Developing country Members shall implement their reduction commitments for cotton over a longer time period than for developed country Members. Market Access Tiered Formula For Tariff Reductions Basis for reductions Subject to such other specific provisions as may be made, all final bound tariffs shall be reduced using the tiered formula set out in the paragraphs below. 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 Developed country Members shall reduce their final bound tariffs in equal annual instalments over five years in accordance with the following tiered formula: 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 [48-52] per cent; 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 [55-60] per cent; 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 [62-65] per cent; and where the final bound tariff or ad valorem equivalent is greater than 75 per cent, the reduction shall be [66-73] per cent. The minimum average cut on final bound tariffs that a developed country Member shall be required to undertake 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 result in an overall average cut less than [54] per cent, an additional effort shall be made proportionately across all bands to reach that target. Developing country Members other than those specified in paragraph  REF _Ref188784890 \r \h  \* MERGEFORMAT 66 below shall reduce their final bound tariffs in equal annual instalments over eight years in accordance with the following tiered formula: 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  REF _Ref172975490 \r \h  \* MERGEFORMAT 62(a) above; 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 reduction shall be 2/3 of the cut for in paragraph  REF _Ref172975540 \r \h  \* MERGEFORMAT 62(b) above; 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 in paragraph  REF _Ref172975582 \r \h  \* MERGEFORMAT 62(c) above; and 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 in paragraph  REF _Ref172975611 \r \h  \* MERGEFORMAT 62(d) above. The maximum overall average cut on final bound tariffs any developing country Member shall be required to undertake as a result of application of this formula is [36] per cent. Should the above formula imply an overall average cut of more than [36] per cent, 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. Small, vulnerable economies shall be entitled to moderate the cuts specified in paragraph  REF _Ref190153169 \r \h  \* MERGEFORMAT 64 above by a further [10] ad valorem percentage points in each band. Recently-Acceded Members RAMs shall be entitled to moderate the cuts they would otherwise have been required to make under the tiered formula in paragraph  REF _Ref190153169 \r \h  \* MERGEFORMAT 64 by up to [7.5] ad valorem percentage points in each band. All RAMs shall be entitled to exempt their final bound tariffs at or below 10 per cent. Saudi Arabia, the Former Yugoslav Republic of Macedonia, Viet Nam and Tonga, as very recently-acceded Members and small low-income RAMs with economies in transition, shall not be required to undertake reductions in final bound tariffs. For all other RAMs, to the extent that, in implementing commitments undertaken in acceding to the ϲʹ, 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 accession commitment. The implementation period for RAMs may be prolonged by up to two years after the end of the developing country Members' implementation period. More specific provisions can be found in the relevant sections of this document. Sensitive Products Designation Each developed country Member shall have the right to designate up to [4] [6] per cent of [dutiable] 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 Sensitive Products to [6][8]percent, subject also to the conditions outlined in paragraph  REF _Ref172385865 \r \h  \* MERGEFORMAT 76 below. Where 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 also increase its entitlement to [6] [8] per cent. Developing country Members shall have the right to designate up to one-third more of tariff lines as "Sensitive Products". Treatment - tariff cut Members may deviate from the otherwise applicable tiered reduction formula in final bound tariffs on products designated as Sensitive. This deviation may be one-third, one-half or two-thirds of the reduction that would otherwise have been required by the tiered reduction formula. Tariff quota expansion For developed country Members, tariff quotas derived from the provisions in paragraph  REF _Ref172385899 \r \h  \* MERGEFORMAT 72 above and paragraphs  REF _Ref172385865 \r \h  \* MERGEFORMAT 76- REF _Ref190223603 \r \h  \* MERGEFORMAT 77 below shall result in new access opportunities equivalent to no less than [4][6]percent of domestic consumption expressed in terms 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 [3] [5] per cent of domestic consumption. Where the one-half deviation is used, the new access opportunities shall be no less than [3.5] [5.5] per cent of domestic consumption. Where a Member is entitled to, and chooses to exercise its entitlement to have a higher number of Sensitive Products pursuant to paragraph  REF _Ref172385899 \r \h  \* MERGEFORMAT 72 above, the relevant amounts specified in paragraph  REF _Ref188785257 \r \h  \* MERGEFORMAT 75 shall be maintained for the [4] [6] per cent of products applicable to all developed country Members. For the additional [2] per cent of products available to those Members under paragraph  REF _Ref172385899 \r \h  \* MERGEFORMAT 72, the Member concerned shall have an obligation to ensure that, whichever deviation is selected, an additional [0.5] [1] per cent of domestic consumption beyond what is generally provided for is achieved for those additional products. In addition, if after application of its tariff reduction commitments a Member still wishes to retain more than 4 per cent of its [dutiable] tariff lines in excess of 100 per cent ad valorem, it shall, for all its Sensitive Products, apply a further expansion of []per cent of domestic consumption. Where the existing bound tariff quota volume already represents 10 per cent or more of domestic consumption, and the one-third deviation is used, the expansion in the tariff quota volume under paragraph  REF _Ref188785257 \r \h  \* MERGEFORMAT 75 above need not be more than [2.5] [3.5] per cent of domestic consumption. Where the one-half deviation is used, the expansion in the tariff quota volume under paragraph  REF _Ref188785257 \r \h  \* MERGEFORMAT 75 above need not be more than [3] [4] per cent of domestic consumption. Where the existing bound tariff quota volume represents 30 per cent or more of domestic consumption, the expansion need not be more than [2] [3] per cent of domestic consumption or [2.5] [3.5] respectively. For developing country Members, the tariff quota expansion shall be two thirds of the volume for developed country Members. For developing country Members, domestic consumption shall not include self-consumption of subsistence production. Expansion of the tariff quota for a Sensitive Product shall be scheduled and applied on a most-favoured-nation basis only. The first instalment shall occur on the first day of implementation and be a minimum of one per cent of additional domestic consumption. Thereafter, each additional one per cent of domestic consumption shall be implemented at the expiry of each twelve-month period. Other Issues Tariff escalation The tariff escalation formula provided below shall apply to the list of primary and processed products attached in Annex D. In addition to the application of the tiered tariff reduction formula, tariff escalation shall be addressed in the following manner: Instead of taking the cut that would otherwise apply 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 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 [1.3 times] the cut that would otherwise have been applicable [increased by 6 ad valorem points]. These supplementary cuts shall be moderated 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. Second, the tariff escalation adjustment formula 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 reduction 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. 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. This modality shall be applied by developed country Members and developing country Members in a position to do so. Commodities In the event that adverse effects of tariff escalation were not to be eliminated via the tiered formula for reductions in bound duties and such specific measures on tariff escalation as are provided for, Members shall engage with commodity-dependent producing country Members to ensure satisfactory solutions. Consistent with this, the following approach shall be applicable: commodity-dependent developing countries, 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; developed countries and developing countries in a position to do so will undertake tariff escalation reductions in the identified products; at the end of the implementation period, the difference between the identified primary and processed products shall not exceed [x] percentage points. For this purpose, all non-ad valorem duties on the products identified by developing countries shall be bound in ad valorem terms. Provision shall be made also for suitable procedures for negotiations on the elimination of non-tariff measures affecting trade in commodities. Provision shall be made to ensure the possibility that Members may take joint action through adoption of suitable measures, including through 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 ϲʹ Members could take "joint action" through "international arrangements" for ensuring "stable equitable and remunerative prices" for exports of primary agricultural commodities should be reviewed, clarified and improved to provide 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. Action for negotiations and adoption of intergovernmental 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. Such intergovernmental commodity agreements may be negotiated and adopted by the countries themselves, or adopted after negotiations undertaken under the auspices of the ϲʹ, UNCTAD or international commodity organizations. Intergovernmental commodity agreements may be negotiated and adopted on an international or regional basis. Such agreements may provide for participation of association of producers. 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. Technical assistance shall be provided for, inter alia, the improvement of world markets for commodities and adoption and implementation of intergovernmental commodity agreements. Financial resources required by the international trade and other organizations for providing technical assistance in accordance with the provisions of paragraphs  REF _Ref172386043 \r \h  \* MERGEFORMAT 95 and  REF _Ref172386058 \r \h  \* MERGEFORMAT 96 above shall be monitored through the mechanism established in ϲʹ for administering Aid for Trade. Tariff simplification No tariff shall be bound in a form more complex than the current binding. [At least [90] per cent of] [All] bound tariffs on products in a Member's Schedule shall be expressed as simple ad valorem tariffs. Where a Member already has at least [90] per cent of its bound tariffs expressed in simple ad valorem terms, that Member shall convert no less than [50]percent of the remaining non-ad valorem tariffs into simple ad valorem tariffs. All tariffs within a 4-digit HS heading shall be expressed in the same form. This tariff simplification shall be fully effected on the first day of the implementation period. However, where a Member currently has less than [60] per cent of its bound tariffs in simple advalorem terms, it shall ensure that: at least [75] per cent of all bound tariffs are expressed as simple ad valorem tariffs on the first day of implementation; at least [80] per cent of all bound tariffs are expressed as simple ad valorem tariffs no later than twelve months later; and [90] per cent of all bound tariffs are expressed as simple ad valorem tariffs no later than the end of the second year of the implementation period. In all cases, and notwithstanding the preceding paragraph, the most highly complex forms of bound tariffs, such as complex matrix tariffs, shall be converted to ad valorem tariffs no later than the first day of the implementation period. Compound tariffs and mixed tariffs shall be converted to simple ad valorem tariffs or specific tariffs (within the limits of the overall percentages above) no later than the end of the first year of the implementation period. The method for converting final bound non-ad valorem tariffs into their ad valorem equivalents, or for converting final bound compound, mixed and highly complex tariffs into specific or ad valorem tariffs as provided for in the preceding paragraph, shall be the methodology to calculate ad valorem equivalents as set out in Annex A to TN/AG/W/3 of 12 July 2006. Developing country Members making such conversions shall have an additional two years to achieve this outcome, if applicable. Least-developed country Members shall not be required to effect any such changes. The simplified tariffs shall be specified in Members' Draft Schedules. In all cases of proposed simplification, Members shall supply supporting data that demonstrates that the proposed simplified bound tariff is representative of, and does 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 sufficient 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 ϲʹ Secretariat shall provide advice on technical matters and shall give particular technical assistance to developing country Members. Where there is provision above for implementation of some tariff simplification later than the first day of implementation, the reductions in bound tariffs prior to that point shall be on the basis of the existing bound tariffs for the Member concerned. Reductions on that basis shall be the legally binding commitment until the point at which the simplified tariff becomes the binding commitment. It shall be made clear in the Draft Schedules of the Member concerned which tariff lines are involved and the point at which the simplification for those lines shall be effected. Tariff quotas Bound in-quota tariffs The final reductions of Members' existing final bound in-quota tariffs shall be no less than the [default cut] [sensitive product cut increased by 20 per cent for developed country Members and by 14 per cent for developing country Members]. The implementation period and staging shall be aligned with those applying to reductions in the existing bound out-of-quota tariffs. [Bound in-quota tariffs shall be eliminated in equal annual instalments over five years for developed country Members. Developing country Members shall not be required to make reductions in their existing bound in-quota tariffs.] In-quota tariffs for new Doha Round tariff quota access opportunities shall [be bound at zero] [be bound at a rate equivalent to what would have applied under application of the tiered formula but for the deviation applied as a result of its designation as a sensitive, less 10 ad valorem percentage points for tariffs in the top tier, 7.5 ad valorem percentage points for tariffs in the second highest tier, 5ad valorem percentage points for tariffs in the third highest tier and 2.5 ad valorem percentage points for tariffs in the bottom tier. Any resulting in-quota duty which would, under this approach, be less than 10 per cent shall be bound at zero, and in no case shall the bound in-quota duty exceed 30 percentage points]. Reductions in in-quota tariffs shall not count for the purposes of calculating the average cuts, if applicable. Tariff quota administration Tariff quota administration of scheduled tariff quotas 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 shall apply in full, subject to the Agreement on Agriculture and to the following more specific and additional obligations. As regards the matters referred to in paragraph 4(a) of Article 1 of that Agreement, as these agricultural tariff quotas are negotiated and scheduled commitments, publication of the relevant information shall be effected no later than 90 days 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. As regards paragraph 6 of Article 1 of that Agreement, applicants for scheduled tariff quotas shall apply to one administrative body only. 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 "simultaneous" consideration cases. The issuance of licences shall, therefore, take place no later than the effective 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. As regards Article 3.5(i), licences for scheduled tariff quotas shall be issued in economic quantities. Tariff quota "fill rates" shall be notified. In order to ensure that their administrative procedures are consistent with Article 3.2 of that Agreement, "no more administratively burdensome 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 constraining than an "absolute necessity" test would demand. Members shall, accordingly, provide for an effective re-allocation mechanism [which ensures that, where licences held by private operators are less than fully utilized for reasons other than those that would be expected to be followed by a normal commercial operator in the circumstances, all feasible steps shall be taken to provide re-allocated access to tariff quotas as soon as possible. If this is legally and practicably feasible within a given tariff quota allocation period, the re-allocation shall be done within that quota period. If not, changes to the licence allocation arrangements tailored to remedy the problem identified shall be implemented no later than the commencement of the next licensing period] [in accordance with the procedures outlined in Annex E]. In any event, an importing Member shall, where it is manifest that a tariff quota is under filled, request those operators holding unused entitlements whether they would be prepared to make them available to other potential users. Where the tariff quota is subject to a country-specific allocation, the importing Member shall ensure that that request is transmitted to the country specific holder of the allocation concerned. As regards Article 3.5(a) (ii) of that Agreement, Members shall make available the contact details of those importers holding licences for access to scheduled agricultural tariff quotas, where, subject to the terms of Article 1.11, this is possible and/or with their consent. [Further to Article 3.5(k), imports shall only be attributable to a scheduled agricultural tariff quota when the imports concerned have been accompanied by a certificate of origin issued by the exporting country Member concerned for that purpose. Exporting country Members shall issue such certificates on demand for any of their exporters fulfilling normal requirements for export.] Special Agricultural Safeguard (SSG) Either: [Article 5 of the Agreement on Agriculture shall expire for developed country Members on the first day of the implementation period.] [Developed country Members shall reduce the number of tariff lines eligible for the SSG to 1.5 per cent of scheduled tariff lines, and developing country Members shall reduce the number of tariff lines eligible for the SSG to [x] per cent of scheduled tariff lines.] Or: Pending full elimination of the SSG by developed country Members within [4] years of the commencement of the implementation period, those Members shall, on the first day of the implementation period, have reduced the number of tariff lines eligible for the SSG under the Uruguay Round Agreement on Agriculture to no more than 1.5 per cent of scheduled tariff lines. This number shall be reduced to no more than one half of that number two years later and full elimination shall occur two years thereafter. Furthermore, the terms and conditions of such an SSG for developed country Members shall be streamlined to ensure that: in respect of the quantity trigger: it shall be available only where, over a rolling three-year average, imports are above a minimum threshold of 10 per cent of domestic consumption, have increased by at least 25 per cent in absolute terms and the ratio of imports to domestic consumption has increased by a factor of 0.35 or more. Where the applied rate is equivalent to the bound rate, the remedy shall be a maximum of an additional one third of the bound duty. Where the applied rate is less than the bound rate the remedy shall be the full margin between the bound rate and the applied rate or one quarter of the bound rate, (whichever is greater); and in respect of the price trigger: it shall be invoked for no more than two-thirds of the eligible tariff lines in any given year within the implementation period and the restrictiveness of the present provisions under Article 5 shall be effectively halved by modifying the specific parameters currently provided in paragraphs (b) through (e) of paragraph 5 of Article 5. For developing country Members the terms and conditions of the SSG shall remain unchanged from the URAA terms and conditions except that the tariff rates concerned shall be updated to reflect the outcome of the Doha Round negotiations. Article 5 of the Agreement on Agriculture shall be amended accordingly to reflect these modalities. Special and differential treatment Special Products Developing country Members shall be entitled to self-designate Special Products guided by indicators based on the criteria of food security, livelihood security and rural development.[] There shall be a minimum entitlement of 8 per cent, and a maximum entitlement of [12][20]percent, of tariff lines available for self-designation as Special Products. Under this provision, there is an entitlement to [6] per cent of tariff lines which shall take a tariff cut of [8][15]per cent. A further [6] per cent is available with a cut of [12] [25] per cent. [[A further] [8per cent of] [no] tariff lines shall be eligible for no cut.] In the case of small vulnerable economies, they may, if they choose to do so, apply the moderated tariff tiered formula for SVEs provided for in paragraph  REF _Ref188784890 \n \h  \* MERGEFORMAT 66 above plus the Special Product entitlement outlined above. Alternatively, they may simply deviate from the tiered formula cut for as many tariff lines as they choose to designate as a Special Product provided that they meet the overall average cut of 24 per cent. The tariff lines that they designate as Special Products need not be subject to any minimum tariff cut and this designation need not be guided by the indicators. In the case of RAMs, the threshold level above which indicators are not required to be used shall be [2] per cent higher, the maximum number of Special Product tariff line entitlement shall be [1]per cent greater and the relevant cuts may be [2] per cent less than generally applicable. [An additional 1 per cent of tariff lines without tariff cuts shall be available.] Special Safeguard Mechanism (SSM) The SSM shall have no a priori product limitations as to its availability, i.e. it can be invoked for all tariff lines in principle. However, it shall not be invoked for more than [3] [8] [products] in any given twelve-month period. 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 application of either of these measures if an SSG, a measure under GATT ArticleXIX, an anti-dumping or countervailing measure, or a measure under the Agreement on Safeguards is in place. 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: where the volume of imports during any year exceeds [105] [130] per cent but does not exceed [110] [135] per cent of base imports, the maximum additional duty that may be imposed on applied tariffs shall not exceed [[50] [20] per cent of the current bound tariff or [40] [20] percentage points, whichever is [higher] [lower]] [but where application of this additional duty would also mean that the current bound tariff would be exceeded, that bound tariff shall apply as a maximum ceiling]; where the volume of imports during any year exceeds [110] [135] per cent but does not exceed [130] [155] per cent of base imports, the maximum additional duty that may be imposed on applied tariffs shall not exceed [[75] [25] per cent of the current bound tariff or [50] [25] percentage points, whichever is [higher] [lower]] [but where application of this additional duty would also mean that the current bound tariff would be exceeded, the additional duty shall be capped at a level which is no more than halfway between the current bound tariff and the pre-Doha Round bound tariff]; where the volume of imports during any year exceeds [130] [155] per cent of base imports, the maximum additional duty that may be imposed on applied tariffs shall not exceed [[100] [30] per cent of the current bound tariff or [60] [30] percentage points, whichever is [higher] [lower]] [but where application of this additional duty would also mean that the current bound tariff would be exceeded, the pre-Doha bound tariff shall apply as a maximum ceiling]. 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, but no additional duty shall be imposed on imports within such tariff rate quota commitments. As regards the price-based SSM, it shall be applicable where the c.i.f. import price of the shipment entering the customs territory of the developing country Member, expressed in terms of its domestic currency falls below a trigger price equal to [70 per cent of] the average monthly [MFNsourced] price for that product for the most recent three-year period preceding the year of importation for which data are available, provided that, where the developing country Member's domestic currency has at the time of importation depreciated by at least 10 per cent over the preceding 12 months against the international currency or currencies against which it is normally valued, the import price shall be computed using the average exchange rate of the domestic currency against such international currency or currencies for the three-year period referred to above. The price-based SSM remedy shall apply on a shipment-by-shipment basis. The additional duty shall not exceed [50 per cent] of the difference between the import price of the shipment concerned and the trigger price [provided that this would not also result in exceeding [one half of the difference between] the pre- [and current] Doha Round bound tariff[s], in which case the latter shall constitute the limit]. Developing country Members shall not take recourse to the price-based SSM [as far as practicable], where the volume of imports of the products concerned in the current year is declining. [However, for least-developed country Members, where application of any of the above modalities on price- and volume-based measures would involve the prospect of exceeding their pre-Doha bound tariffs, such tariffs may be exceeded by a maximum of 20 ad valorem percentage points provided that all other relevant conditions have been met.] [Small vulnerable economies may, in a special situation of major disruption for a particular product involving volumes significantly beyond the threshold envisaged under paragraph  REF _Ref190226103 \r \h  \* MERGEFORMAT 128(c) above, have emergency recourse also to this provision for volume-based measures only for a maximum twelve-month period.] Where preferential trade is included in the calculation of volume or price triggers, the additional SSM duties shall be applied also to preferential trade. Where preferential trade is excluded from the application of remedies, that preferential trade shall not have been included when calculating volume and price triggers. Any shipments of the product in question which, before the imposition of the additional duty, have been contracted for and were en route after 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-based 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. The volume-based SSM may be maintained [until the end of the year in which it has been imposed] [for a maximum period of [6] [12] months from the initial invocation of the measure]. Where the measure is maintained beyond the year of invocation, the relevant products shall be accounted for under the limits defined in paragraph  REF _Ref190226055 \n \h  \* MERGEFORMAT 126 above, and only if all the above conditions are met. No product shall be subject to the volume-based SSM for more than two consecutive [6] or [12] month periods. The operation of the SSM shall be carried out in a transparent manner and the basis upon which ongoing calculations of rolling averages of import 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 Member 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 Member taking action shall afford any interested Members the opportunity to consult with it in respect of the conditions of application of such action. The SSM shall remain in force for the duration of the Doha Round implementation period [after which it shall expire.] The relevant Articles of the Agreement on Agriculture shall be amended to reflect the above modalities. Fullest liberalization of trade in tropical and diversification products 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. [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 85per 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.] [Where the tariff is greater than or equal to 10 per cent, it shall be reduced by [66] [73] per cent, except for tariffs in the top band which shall be reduced by the tariff escalation tariff cut for that band increased by 2 per cent. Where the tariff is less than 10 per cent, it shall be reduced to zero. The reductions concerned shall be implemented by developed country Members in accordance with the general tariff reduction implementation period. Developing country Members in a position to do so are encouraged to make additional efforts on tropical products beyond what would be required under the tiered formula.]. Long-standing preferences and preference erosion [For the products listed in Annex H, preference erosion shall be addressed as follows. 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.] [For those products listed in Annex H, where: the pre-Doha MFN bound tariff is greater than 10 per cent ad valorem, and over the most recent three-year period, the total value of trade [from the long-standing preference receiving country Members is greater than [US$ 50,000] [is [3] [5]per cent of any long-standing preference receiver's total agricultural trade to the market concerned] and there is unlimited long-standing preference 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 provisions shall prevail, except for the specific [ ] products identified in Annex H on which tariff reduction commitments shall proceed as follows [ ].] [Long-standing preference granting] Members shall 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. Least-Developed Countries Least-developed country Members are not required to undertake reductions in bound duties. Developed country Members shall, and developing country Members declaring themselves in a position to do so should: Provide duty-free and quota-free market access on a lasting basis, for all products originating from all LDCs by 2008 or no later than the start of the implementation period in a manner that ensures stability, security and predictability. 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, by 2008 or no later than the start of the implementation period. In addition, these Members shall take steps to progressively achieve compliance with the obligations set out above, taking into account the impact on other developing country Members at similar levels of development, and, as appropriate, by incrementally building on the initial list of covered products. Developing country Members shall be permitted to phase in their commitments and shall enjoy appropriate flexibility in coverage. Ensure that preferential rules of origin applicable to imports from LDCs are transparent and simple, and contribute to facilitating market access. Inform ϲʹ Members of the products that will be covered under the commitment to 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 by 2008, or no later than the start of the implementation period. Notify the steps and possible time frames within which they will progressively achieve full compliance with the Decision. As part of the review foreseen in the Decision, the Committee on Trade and Development shall monitor progress made in its implementation, including in respect of preferential rules of origin. The monitoring procedure should be defined and agreed by the time of final schedules. Cotton Market access Developed country Members and developing country Members 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. 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. Small, Vulnerable Economies For the purposes of these modalities, this term applies to Members with economies that, in the period 1999 to 2004, had an average share of (a)world merchandise trade of no more than 0.16percent 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. 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. More specific provisions are to be found in relevant sections of this document. Export Competition General Nothing in these modalities on export competition can be construed to give any Member the right to provide, directly or indirectly, export subsidies in excess of the commitments specified in Members' Schedules, or to otherwise detract from the obligations of Article 8 of that Agreement. Furthermore, nothing can be construed to imply any change to the obligations and rights under Article10.1 or to diminish in any way existing obligations under other provisions of the Uruguay Round Agreement on Agriculture or other ϲʹ Agreements. Scheduled Export Subsidy Commitments Developed country Members shall eliminate their remaining scheduled export subsidy entitlements by the end of 2013. This shall be effected on the basis of: 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. quantity commitment levels being [reduced to zero in equal annual instalments from the applicable commitment levels] [applied as a standstill from the commencement until the end of the implementation period at the lower of either the then current actual applied quantity levels or the bound levels reduced by 20 per cent]. Developing country Members shall eliminate their 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. In accordance with the Hong Kong Ministerial Declaration, developing country Members shall, furthermore, continue to benefit from the provisions of Article 9.4 of the Agreement on Agriculture until the end of 2021, i.e. five years after the end-date for elimination of all forms of export subsidies. Export Credits, Export Credit Guarantees or Insurance Programmes Export credit, export credit guarantees or insurance programmes shall comply with the provisions set out in Annex J. Agricultural Exporting State Trading Enterprises Agricultural exporting state trading enterprises shall comply with the provisions of Annex K. International Food Aid International food aid shall comply with the provisions of Annex L. Cotton Those export subsidies for cotton referred to in paragraph  REF _Ref188785516 \n \* MERGEFORMAT 153 above are prohibited in accordance with the mandate contained in paragraph 11 of the Hong Kong Ministerial Declaration. However, developing country Members which have any export subsidy entitlements referred to in that paragraph shall comply with this prohibition no later than the end of the first year of the implementation period. 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 implementation period for developed country Members, and by the end of the first year of the implementation period for developing country Members. Monitoring and Surveillance See Annex M. Other Issues [Sectoral Initiatives] [Differential Export Taxes] [GIs] Export prohibitions and restrictions In order to strengthen the existing disciplines on export prohibitions and restrictions, Article12 of the Agreement on Agriculture shall be modified to include the following elements. 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. A Member instituting export prohibitions and restrictions shall give notice of the reasons for introducing and maintaining such measures. The Committee on Agriculture shall provide for annual notification update and surveillance of these obligations. 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 which it considers ought to have been notified by another Member. 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. 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. ANNEX A UNITED STATES PRODUCT SPECIFIC BLUE BOX LIMITS [To be finalized] 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 security 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 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 developing 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 administered prices, provided that the difference between the acquisition price and the external reference price is accounted for in the AMS [provided that the difference between the acquisition price and the external reference price when multiplied by the volume of production for the product concerned does not exceed [15] per cent of that Member's total value of production of the basic agricultural product concerned and that the total for all such products under any such programmes does not exceed [10] per cent of the value of total agricultural production for the Member concerned. Where a developing country Member uses this provision, it shall notify the relevant data to the Committee on Agriculture.] Decoupled income support (paragraph 6) Modify the existing subparagraph (a) as follows: (a) Eligibility for such payments shall be determined by clearly-defined criteria such as income, status as a producer or landowner, factor use or production level in [, or the allocation of entitlements established in relation to,] a defined, and fixed and unchanging historical base period which shall be notified to the Committee on Agriculture. An exceptional update is not precluded, [provided that producer expectations and production decisions are unaffected, in particular due to the fact that any updated base period is a significant number of years in the past.] [but any such update shall only be permissible where the updated base period is itself a sufficiently significant number of years in the past so as to ensure that producer expectations and production decisions are not affected and, accordingly, that the payments or entitlements concerned shall not have the effect of inducing production contrary to paragraph 1 of Annex 2 or newly providing price support to producers contrary to paragraph 1(b) of Annex 2.] [Developing country] Members which have not previously made use of this type of payment, and thus have not notified, shall not be precluded from establishing an appropriate base period7, which shall be fixed and unchanging and shall be notified. 7 Developing country Members may not have the capacity to fully assess the impact of innovation in their agricultural policies. Accordingly, 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. Payments (made either directly or by way of government 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 concerned) has occurred or is occurring; and shall be determined by a production loss8 which exceeds 30per cent of the average of production in the preceding three 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 financial 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 appropriate. In the case of a developing country Member's government's financial participation 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 standards, 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 following a disaster 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 determine 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. [Where applicable,] The base period shall be fixed and unchanging and shall be notified to the Committee on Agriculture. An exceptional update is not precluded, [provided that producer expectations and production decisions are unaffected, in particular due to the fact that any updated base period is a significant number of years in the past] [but any such update shall only be permissible where the updated base period is itself a sufficiently significant number of years in the past so as to ensure that producers expectations and production decisions are not affected and, accordingly, that the payments or entitlements concerned shall not have the effect of inducing production contrary to paragraph 1 of Annex 2 or newly providing price support to producers contrary to paragraph 1(b) of Annex 2.] [Developing country] Members which have not previously made use of this type of payment, and thus have not notified, shall not be precluded from establishing an appropriate base period9, which shall be fixed and unchanging and shall be notified. 9 Developing country Members may not have the capacity to fully assess the impact of innovation in their agricultural policies. Accordingly, 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. Payments under regional assistance programmes(paragraph 13) Modify the existing subparagraphs (a), (b) and (f) as follows: (a) Eligibility for such payments shall be limited to producers in disadvantaged regions. Each such region must be a clearly designated contiguous geographical area with a definable economic and administrative identity, 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 must be a contiguous geographical area. (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. [Where applicable,] The base period shall be fixed and unchanging and shall be notified to the Committee on Agriculture. An exceptional update is not precluded, [provided that producer expectations and production decisions are unaffected, in particular due to the fact that any updated base period is a significant number of years in the past] [but any such update shall only be permissible where the updated base period is itself a sufficiently significant number of years in the past so as to ensure that producers expectations and production decisions are not affected and, accordingly, that the payments or entitlements concerned shall not have the effect of inducing production contrary to paragraph 1 of Annex 2 or newly providing price support to producers contrary to paragraph 1(b) of Annex 2.] [Developing country] Members which have not previously made use of this type of payment, and thus have not notified, shall not be precluded from establishing an appropriate base period10, which shall be fixed and unchanging and shall be notified. (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. 10 Developing country Members may not have the capacity to fully assess the impact of innovation in their agricultural policies. Accordingly, 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. ANNEX C BASIS FOR THE CALCULATION OF TARIFF QUOTA EXPANSION Either: Where, for any product, a Member has a tariff quota bound in its Schedule and wishes to designate any tariff line within that product coverage as Sensitive, the defined percentage of tariff quota access to be provided shall be calculated in terms of the percentage of domestic consumption of the entire product, irrespective of whether, for any number of tariff lines within that product coverage, the Member concerned has taken the full (i.e. "non-Sensitive") tariff cut. Where the domestic consumption data for the product in question is available from recognized international sources such as FAO or OECD, it shall be used. If it is not so available, existing national data shall be used. In the calculation of domestic consumption at that product level, all consumption must be included in the calculation, whether for direct human consumption, industrial use, animal feed, etc. This data must be provided in a transparent manner using a commonly-agreed supporting data template. Where this data does not currently exist at a national level, it shall be arrived at through a balance sheet approach (i.e. imports + production exports +/- changes in stocks). Calculations shall be provided in a transparent manner using a commonly-agreed supporting data template. Or: Where, for any product, 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). Where verifiable domestic consumption data exists for those tariff lines, the amount of the tariff quota access to be provided for them shall be the defined percentage of that domestic consumption figure for those tariff lines. Where verifiable domestic consumption data does not exist for those tariff lines at the time of adoption of these Modalities, the following four-step method of calculation shall apply: Step 1: 6-digit level: [Where domestic consumption data exists aligned to the 6-digit tariff level, it shall be used. The supporting data shall be supplied and verified in the commonly-agreed supporting data template.] Where that data does not exist already at the 6-digit level, a proxy shall be used as follows. The value of world trade for a given 6-digit tariff line shall be expressed as a percentage of total world trade for the whole product category within which that 6-digit tariff line exists. That percentage is applied to the particular Member's total domestic consumption of that product category to give the domestic consumption figure at the 6-digit level. The supporting allocation data shall be supplied and verified in the commonly-agreed supporting data template. Where this product consumption data is available from recognized international sources such as FAO or OECD, it shall be used. If it is not available, or if existing national sources provide more updated and accurate data, that shall be used. In the calculation of domestic consumption at that product category level, all domestic consumption must be included in the calculation, whether for direct human consumption, industrial use, animal feed, etc. This data shall be provided in a transparent manner in a commonly-agreed supporting template for the data. Where this data does not currently exist at a national level, it shall be arrived at through a balance sheet approach (i.e. imports + production exports +/- changes in stocks). Calculations shall also be provided in a transparent manner using a commonly-agreed supporting data template. Step 2: 8-digit level: Where domestic consumption data exists aligned to the 8-digit tariff level [for all the Members taking sensitive product status for the 8-digit lines concerned], it shall be used. The supporting data shall be supplied and verified in a commonly-agreed template. Where that data does not exist already aligned to the 8-digit level, a proxy shall be used. At the national level, the share of value of imports for any 8-digit tariff line within a 6-digit heading shall then be applied to the estimate of (or actual, if available) 6-digit consumption figure determined in Step 1 above to derive a proxy for domestic consumption at the 8-digit level. Step 3: base TQ calculation: The tariff quota expansion is determined by applying the defined percentage expansion to the 8-digit level domestic consumption figure arrived at under Step 2 above. Step 4: adjustment to base TQ calculation: The application of this proxy approach can have the effect of further and artificially accentuating low trade allocation to tariff lines which have been low traded precisely because they have been subject to relatively higher tariff restraint within the coverage of the product concerned. In order to offset this disproportionate effect, there shall be a safety-net provision whereby, as an absolute minimum, [for each product in its entirety as specified in the attachment there shall be a floor minimum access of at least [1] [3] per cent of domestic consumption of that product] [and] [a proportionality principle shall apply whereby the tariff quota expansion amount shall be calculated as the percentage of the number of 8-digit tariff lines within any given product declared as Sensitive applied to the domestic consumption figure for that product in its entirety] [,with the greater of the two applicable]. 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. Where there are separate tariff lines that do not reflect material differences in essential product characteristics (e.g. reflecting superficial differences 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. Imports for re-export (including where the obligation to re-export is in a processed form) shall not be counted as "imports" under that tariff line under this approach. Under whichever of these approaches is selected: The 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 which 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. Existing scheduled tariff lines shall be the basis for all calculations. There shall be no sub-categorization of tariff lines beyond existing scheduled commitments. The base period shall be the most recent period 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. For any given product category, [a single tariff quota with a single in-quota tariff shall be scheduled, irrespective of how many tariff lines are designated as Sensitive] [a maximum of [two] tariff quotas shall be scheduled for any given product category within which there are Sensitive Products, but only where, for the distinct tariff lines concerned, there is a differential margin of more than [x] per cent in the import unit values of the tariff lines concerned. All the tariff lines below that threshold would go into the first tariff quota, and all the tariff lines above that threshold would go into the second tariff quota]. New tariff quota volumes arising from this negotiation shall be bound in part I-B of Members' Schedules of concessions on a most favoured nation basis. Pre-existing bound tariff quota commitments shall be maintained separately. . ANNEX D (TO BE FINALIZED) TARIFF ESCALATION PROVISIONAL POTENTIAL LIST The following list is not finalized. It may be added to or diminished. Vegetables Primary productProcessed product0702.00 Tomatoes, fresh or chilled2002.10 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 sauce0707.00 Cucumbers and gherkins, fresh or chilled0711.40 - Cucumbers and gherkins provisionally preserved 2001.10 - Cucumbers and gherkins prepared or preserved by vinegar or acetic acid0709.60 - Fruits of the genus Capsicum or genus Pimenta0904.20 - Fruits of the genus Capsicum or genus Pimenta, dried or ground0714.10 - Cassava1108.14 - Cassava starch Fruits and Nuts Primary productProcessed product0801.11 - Coconuts, dessicated 0801.19 - Coconuts, excluding dessicated1513.11 - Crude coconut oil 1513.19 - Other coconut oil 2306.50 - Oilcake and other solid residues of coconut 2308 - Vegetable materials and vegetable waste0805.50 - Lemons2007.91 - Citrus fruit preparations; Jams, fruit jellies, marmalades, fruit or nut puree, 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, fresh2008.40 Pears, Otherwise prepared or preserved. 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 matter0809.10 Apricots, fresh2008.50 Apricots, Otherwise prepared or preserved.0809.20 - Cherries, fresh0812.10 - Cherries, provisionally preserved. 2008.60 - Cherries, otherwise prepared or preserved.0809.30 Peaches, including nectarines, fresh2008.70 Peaches including nectarines, otherwise prepared or preserved.0809.40 - Plums0813.20 - Prunes, dried Coffee Primary productProcessed product0901.11 - Coffee, not roasted: Not decaffeinated0901.12 Coffee, not roasted, decaffeinated 0901.12 Coffee, not roasted, decaffeinated 0901.21 - Coffee, roasted: Not decaffeinated 0901.22 - Coffee, roasted: Decaffeinated 0901.90 - Other (Coffee husks and skins, coffee substitutes containing coffee) 2101.11 - Extracts, essences and concentrates 2101.12 - Preparations with a basis of extracts, essences or concentrates or with a basis of coffee Spices Primary productProcessed product0910.10 - Ginger2006.00 - Other fruits, vegetables and nuts, preserved by sugar 2008.99 - Other fruits and edible parts of the plant, prepared or preserved Oilseeds Primary productProcessed product12.01 - Soya Beans, whether or not broken1208.10 - 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 soybeans1202.10 - Ground-nuts, in shell, not roasted or otherwise cooked1202.20 - 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 nuts1205.10 - Low erucic acid rape or colza seeds, whether or not broken1208.90 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 seed1205.90 - Rape or colza seeds, whether or not broken1208.90 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 chemically modified, Other12.06 - Sunflower seeds, whether or not broken1208.90 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 seeds1207.60 - Safflower seeds1208.90 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 broken1208.90 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 1511.90 Refined palm oil and its refractions, not chemically modified Other 2306.60 - Oilseed cake of palm nuts or kernels1207.20 - Cotton seeds, whether or not broken12.08.90 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 cake of cotton seeds1207.40 - Sesamum seeds12.08.90 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 [Refer to other proposals which remain on the table] ANNEX E TARIFF QUOTA UNDERFILL MECHANISM [During the first monitoring year, where an importing Member does not notify the fill rate, or where the fill rate is below [x per cent], a Member may raise a specific concern regarding a tariff quota commitment in the Committee on Agriculture and place 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 and of the manner in which the tariff quota is administered and whether elements of the administration contribute to underfill. Once the underfill mechanism has been initiated, where the fill rate remains below [x 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 takes specific action(s) to modify the administration of the tariff quota concerned. The importing Member shall take either the specific action(s) requested or, drawing on the discussions previously held with the importing Member, such other action(s) which it considers will effectively improve the fill rate of the tariff quota. If the action(s) of the importing Member lead to a fill rate above [x per cent] this will be noted and the concern marked "resolved" on the Secretariat's tracking register. While the fill rate remains below [x per cent], a Member may continue to request additional modifications to the administration of the tariff quota. During the third and subsequent monitoring years: following three or more consecutive years of underfill, where: the fill rate remains below [x per cent] for three consecutive years; and the fill rate has not increased by annual increments of at least [y per cent] for each of the preceding three years; and a Member makes a statement in the Committee on Agriculture that it wishes to initiate the final stage of the underfill mechanism. The importing Member shall then promptly provide unencumbered access via one of the following tariff quota administration methods: a first-come, first-served only basis (at the border); or an automatic, unconditional license on demand system. 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 Secretariat's tracking register and the concern marked "closed".] 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 historical usage, or the product contributes significantly to the nutritional or caloric intake of the population. 2. A significant proportion of the domestic consumption of the product in its natural, unprocessed or processed form, in a particular region or at a national level, is met through domestic production in the developing 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 for 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 farms 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 operational 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 significant proportion of the domestic production of the product is produced in disadvantaged regions and areas including, inter alia, drought-prone or hilly or mountainous regions. 7. A significant proportion of the total value of agricultural production or agricultural income of households, in a particular region or at the national 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, including handicrafts and cottage industries or any other form of rural value addition. 9. A significant proportion of the agricultural customs tariff revenue is derived from the product in a developing country Member. 10. A significant proportion of the total food expenditure, 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. 11. The product in respect of which product specific AMS or blue box support has been notified by any ϲʹ 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. ANNEX G [LIST OF TROPICAL AND ALTERNATIVE PRODUCTS] HS96Description060240Roses, grafted or not060290Live plants, incl. their roots, and mushroom spawn060310Cut flowers and flower buds for bouquets, etc., fresh060390Cut flowers and flower buds for bouquets, dried, etc.060491Foliage, branches, for bouquets, etc. fresh060499Foliage, branches, for bouquets, etc. except fresh070190Potatoes, fresh or chilled except seed070310Onions and shallots070960Peppers (Capsicum, Pimenta) fresh or chilled070990Vegetables, fresh or chilled nes071190Other vegetables; mixtures of vegetables071390Other dried leguminous vegetables071410Manioc (cassava), fresh or dried071420Sweet potatoes071490Arrowroot, salep, etc. fresh or dried and sago pith080111Desiccated coconuts080119Other coconuts080290Nuts, fresh or dried, whether or not shelled or peeled080300Bananas, including plantains, fresh or dried080420Figs, fresh or dried080430Pineapples, fresh or dried080440Avocados, fresh or dried080450Guavas, mangoes and mangosteens, fresh or dried080510Oranges, fresh or dried080520Mandarin, clementine & citrus hybrids, fresh or dried080530Lemons and limes, fresh or dried080590Other citrus fruit, fresh or dried080711Watermelons, fresh080719Melons, fresh080720Fresh pawpaws "papayas"081090Fresh tamarinds, passion fruit, carambola, pitahaya and other edible fruit081190Fruits and nuts (uncooked, steamed, boiled) frozen081290Fruit and nuts, provisionally preserved081340Other fruit081350Mixtures of nuts or dried fruits081400Peel of citrus fruit or melons090112Coffee, not roasted, decaffeinated090121Coffee, roasted, not decaffeinated090122Coffee, roasted, decaffeinated090190Coffee, other roasted090210Tea, green (unfermented) in packages < 3 kg090412Pepper, crushed or ground090420Capsicum or Pimenta, dried, crushed or ground090700Cloves (whole fruit, cloves and stems)091010Ginger100610Rice in the husk (paddy or rough)100620Husked (brown) rice100630Semi-milled or wholly milled rice, whether or not polished or glazed100640Broken rice110230Rice flour110620Flour, meal and powder of sago or of roots or tubers of heading 07.14110630Flour, meal and powder of the dried leguminous vegetables 110814Manioc (cassava) starch120210Ground-nuts in shell, not roasted or cooked120220Ground-nuts, shelled, whether or not broken120890Other flours and meals of oil seeds or oleaginous fruits121190Plants & parts, pharmacy, perfume, insecticide use nes121210Locust beans, locust seeds121299Vegetable products nes for human consumption130219Vegetable saps and extracts nes140190Other vegetable materials150710Crude soya-bean oil, and its fractions150790Other soya-bean oil, and its fractions150810Crude ground nut oil 151110Palm oil, crude151190Palm oil or fractions simply refined151211Crude sunflower-seed or safflower oil and fractions thereof151219Other sunflower-seed or safflower oil and fractions thereof151311Crude coconut (copra) oil and its fractions151319Other coconut (copra) oil and its fractions151321Crude palm kernel or babassu oil 151329Palm kernel or babassu oil and fractions thereof, other151410Low erucic acid rape or colza oil, crude151490Low erucic acid rape or colza oil, other151530Castor oil and its fractions151550Sesame oil or fractions not chemically modified151620Veg fats, oils or fractions hydrogenated, esterified151710Margarine, excluding liquid margarine152190Beeswax, other insect waxes and spermaceti170111Raw sugar, cane170191Containing added flavouring or colouring matter170199Refined sugar, in solid form, nes, pure sucrose170310Cane molasses180310Cocoa paste, not defatted 180320Cocoa paste, wholly or partly defatted180400Cocoa butter, fat, oil180500Cocoa powder, unsweetened180610Cocoa powder, sweetened 180620Chocolate and other food preps containing cocoa > 2 kg180631Chocolate, cocoa preps, block, slab, bar, filled, > 2kg180632Chocolate, cocoa prep, block/slab/bar, not filled, > 2kg 180690Chocolate/cocoa food preparations 200190Veg, fruit, nuts nes prepared or preserved by vinegar200410Potatoes, prepared, frozen [INDICATIVE LIST OF TROPICAL PRODUCTS USED IN THE URUGUAY ROUND] PRODUCT GROUPS AND SUB-GROUPS4-DIGIT HS HEADINGSGroup I:Tropical beverages(a)Unprocessed products0901, 0902, 1801, 1802(b)Semi-processed and processed products1803, 1804, 1805, 2101Group II:Spices, flowers and plants, plaiting products, etc.(a)Unprocessed products0904-0910, 0602, 0603, 1211, 1301, 1401, 1402, 1403, 1404(b)Semi-processed and processed products1302, 1521, 3203, 3301, 4601, 4602, 9601Group III:Certain oilseeds, vegetable oils and products thereof(a)Unprocessed products and residues from oil extraction1202, 1203, 1207, 2305, 2306(b)Semi-processed and processed products1208, 1508, 1511, 1513, 1515, 1516, 1518, 1519, 1520Group IV:Tropical roots, rice and tobacco(a)Unprocessed products0714, 1006, 2401(b)Semi-processed and processed products1106, 1108, 1903, 2402Group V:Tropical nuts and fruits(a)Unprocessed products0801, 0803, 0804, 0807(b)Semi-processed and processed products2006, 2007, 2008Group VI:Rubber and tropical wood(a)Raw material4001, 4403(b)Semi-manufactures4005-4009, 4407-4410, 4412(c)Finished products4011, 4013-4017, 4414, 4418-4421, 9401, 9403Group VII:Jute and hard fibres(a)Raw material5303, 5304, 5305(b)Semi-manufactures5307, 5308, 5310, 5311(c)Finished products5607, 5608, 5609, 5905, 6305 ANNEX H [INDICATIVE LIST OF PREFERENCE EROSION PRODUCTS] Tariff Lines at HS 6Product Description020130Fresh or chilled bovine meat, boneless020230Frozen, boneless meat of bovine animals020312Fresh or chilled hams, shoulders and cuts thereof of swine, with bone in060310Fresh cut flowers and flower buds, for bouquets or for ornamental purposes070200Tomatoes, fresh or chilled070810Fresh or chilled peas "Pisum sativum", shelled or unshelled070820Fresh or chilled beans "Vigna spp., Phaseolus spp.", shelled or unshelled070990Fresh or chilled vegetables (excl. potatoes, tomatoes, vegetables of the Allium)071490Roots and tubers of arrowroot, salep, Jerusalem artichokes and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets and sago pith (excl. manioc "cassava")080290Other nuts, fresh or dried, other080300Bananas, incl. plantains, fresh or dried080430Fresh or dried pineapples080440Avocados080450Fresh or dried guavas, mangoes and mangosteens080610Fresh grapes080719Fresh melons (excl. watermelons)080720Fresh pawpaws "papayas"081090Fresh tamarinds, cashew apples, jackfruit, lychees, 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, 081340Dried peaches, pears, papaws "papayas", tamarinds and other edible fruits (excl. nuts, bananas, dates, figs, pineapples, avocadoes, guavas, mangoes, mangosteens, citrus fruit, grapes apricots, prunes and apples, unmixed)090121Roasted coffee (excl. decaffeinated)090500Vanilla090700Cloves, whole fruit, cloves and stems100620Husked or brown rice110313Cereal groats meal and pellets; of maize121210Locust beans, incl. locust bean seed, fresh, chilled, frozen or dried, whether or not ground150810Crude ground-nut oil151190Palm oil and its fractions, whether or not refined (excl. chemically modified and crude)151311Crude coconut oil151321Crude palm kernel and babassu oil151590Fixed 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, maize170111Raw cane sugar (excl. added flavouring or colouring)170199Cane or beet sugar and chemically pure sucrose, in solid form; other180310Cocoa paste (excl. defatted)180400Cocoa butter, fat and oil190590Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products (excl. crispbread, gingerbread and the like200590Preparation of vegetables, mixtures200820Pineapples, prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, n.e.s.200830Citrus fruit, prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, n.e.s.200860Cherries, prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit (excl. preserved with sugar but not laid in syrup, jams, fruit jellies, marmalades, fruit pure and pastes, obtained by cooking)200899Fruits and nuts, other200911Frozen orange juice, unfermented, whether or not containing added sugar or other sweetening matter or spirit, n.e.s.200939Single citrus fruit juice, unfermented, Brix value > 20 at 20C, whether or not containing added sugar or other sweetening matter200979Apple juice, unfermented, Brix value > 20 at 20C, whether or not containing added sugar or other sweetening matter (excl. containing spirit)200980Juice of fruit or vegetables, unfermented, whether or not containing added sugar210320Tomato ketchup210390Sauces, other220710Beverages, spirits and vinegar; Undenatures ethyl alcohol220840Rum and tafia220890Ethyl 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)230990Preparations of a kind used in animal feeding (excl. dog or cat food put up for retail sale)240110Tobacco, unstemmed/unstripped240120Tobacco, partly or wholly stemmed/stripped, otherwise unmanufactured240130Tobacco refuse240210Cigars, cheroots and cigarillos containing tobacco ANNEX I SMALL, VULNERABLE ECONOMIES 1. The data are based on the methodology that was used to prepare a previous Secretariat paper on shares of ϲʹ Members in world non-agricultural trade, 1999-2004 (TN/MA/S/18). Individual Members' data were extracted from the United Nations 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 world exports by commodity group to derive respective world imports, but this does not change the overall results. The country averages are calculated on the basis of the years for which data are available. 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 agricultural trade does not exceed 0.40 per cent. The attached table does not include those Members that are defined as least-developed countries by the United Nations Economic and Social Council and those Members for which no data are available. Share of total merchandise trade (%)Share of world agriculture (AOA) trade (%) Share of non-agriculture (NAMA) trade (%)ϲʹ MemberTotal (exports + importsExportsImportsTotal (exports + importsExportsImportsTotal (exports + importsExportsImportsWorlda100100100100100100100100100Albania0.0190.0080.0290.0500.0080.0870.0170.0080.026Antigua and Barbuda0.0040.0010.0070.0110.0000.0200.0040.0010.006Armenia0.0150.0100.0190.0400.0180.0600.0130.0100.016Barbados0.0130.0050.0200.0370.0220.0500.0110.0040.019Belize0.0060.0040.0080.0230.0290.0170.0040.0010.007Bolivia0.0320.0320.0320.1020.1430.0650.0280.0250.030Botswana0.0570.0610.0530.0750.0300.1160.0560.0650.048Brunei Darussalam0.0500.0780.0250.0290.0000.0560.0530.0860.023Cameroon0.0360.0380.0350.1120.1400.0870.0320.0320.032Cuba0.0630.0340.0890.2400.2230.2560.0520.0220.080Dominica0.0020.0010.0020.0070.0050.0080.0010.0010.002Dominican Rep.0.0680.0180.1130.1540.1150.1890.0630.0110.111Ecuador0.1100.1120.1080.3260.5150.1540.0980.0870.107El Salvador0.0510.0260.0750.1730.1360.2060.0440.0180.068Fiji0.0140.0100.0180.0470.0550.0400.0120.0070.017FYR Macedonia0.0330.0260.0390.0760.0690.0830.0270.0240.030Gabon0.0310.0460.0170.0260.0040.0460.0320.0510.015Georgia0.0140.0090.0200.0520.0440.0600.0120.0060.018Ghana0.0570.0440.0670.2210.3020.1440.0470.0270.063Grenada0.0030.0010.0040.0090.0060.0120.0020.0010.004Guatemala0.0860.0530.1160.3190.4160.2310.0720.0300.110Guyana0.0100.0090.0100.0370.0520.0240.0080.0070.010Honduras0.0410.0260.0560.1900.2230.1600.0320.0130.049Jamaica0.0440.0240.0630.1140.0910.1360.0400.0200.059Jordan0.0790.0520.1040.1980.1200.2690.0710.0490.092 Kenya0.0520.0370.0650.2150.3140.1260.0410.0190.062Kyrgyzstan0.0110.0100.0120.0290.0320.0260.0100.0090.011Macao, China0.0490.0490.0480.0550.0130.0930.0500.0530.046Mauritius0.0370.0320.0410.0960.1020.0900.0340.0280.038Moldova0.0180.0130.0220.0890.1320.0510.0130.0060.021Mongolia0.0130.0110.0140.0250.0170.0330.0120.0110.013Namibia0.0300.0300.0290.0720.0730.0700.0280.0280.027Nicaragua0.0230.0120.0340.1020.1290.0790.0180.0040.031Panama0.0380.0160.0590.1050.0910.1140.0350.0110.056Papua New Guinea0.0320.0420.0230.0700.0860.0560.0300.0400.022Paraguay0.0320.0220.0420.1730.2800.0770.0230.0050.040Saint Kitts and Nevis0.0020.0010.0030.0060.0020.0090.0020.0010.003Saint Lucia0.0040.0010.0060.0160.0090.0220.0030.0010.005Saint Vincent and the Grenadines0.0020.0010.0030.0110.0090.0120.0020.0000.003Sri Lanka0.1020.0920.1120.2490.2840.2170.0950.0810.107Suriname0.0090.0090.0110.0170.0070.0270.0090.0090.010Swaziland0.0190.0180.0190.0680.0820.0560.0150.0140.016Trinidad and Tobago0.0860.1020.0710.0860.0720.0980.0880.1070.071Uruguay0.0470.0440.0500.2090.3330.0960.0370.0250.048Zimbabwe0.0370.0370.0390.1510.2800.0670.0300.0210.037 Source: All data are from the United Nations Comtrade database except for world totals, which are ϲʹ estimates. a Excludes intra-EC trade (25 member States) and significant re-exports. 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 In addition to complying with all other existing export subsidy obligations under this Agreement and the other covered Agreements, 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: direct financing support, comprising direct credits/financing, refinancing, and interest rate support; risk cover, comprising export credit insurance or reinsurance and export credit guarantees; government-to-government credit agreements covering the imports of agricultural products exclusively from the creditor country under which some or all of the risk is undertaken by the government of the exporting country; and any other form of governmental export credit support, direct or indirect, including deferred invoicing and foreign exchange risk hedging. The provisions of this Article shall apply to export financing support provided 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: government departments, agencies, or statutory bodies; any financial institution or entity engaged in export financing in which there is governmental participation by way of equity, provision of loans or underwriting of losses; agricultural export state trading enterprises; and any bank or other private financial, credit insurance or guarantee institution which acts on behalf of or at the direction of governments or their agencies. Terms and Conditions Export financing support shall be provided in conformity with the terms and conditions set out below. Maximum repayment term: the maximum repayment term for export financing support under this Agreement, this being the period beginning at the starting point of credit and ending on the contractual date of the final payment, shall be no more than 180 days. For developed country Members, this shall apply from the first day of implementation or the end of 2010, whichever comes first. Existing 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. Self-financing: export credit guarantee, insurance and reinsurance programmes, and other risk cover programmes included within sub-paragraphs 1(b) and (c) above shall be self-financing. Where premium rates charged under a programme over a previous [4] [5]-year rolling period are inadequate to cover the operating costs and losses of the programme during that same period, this shall, in and of itself, be sufficient to determine that the programme is not self-financing. In addition, and irrespective of whether these programmes conform with the requirements set out in the preceding sentence, this does not exempt them from complying with any other provision of this Agreement or the other covered Agreements, including by reference to the more generally formulated long-term operating costs and losses of a programme, not limited to a historical [4] [5] year period, under item (j) of the Illustrative 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 Developing country Members providers of export financing support shall be eligible to benefit from the following elements: Maximum repayment terms: the developing country Members concerned shall have a phase-in period of three 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. This shall be achieved as follows: on the first day of implementation, the maximum repayment term for any new support entered into shall be 360 days; two years after implementation, the maximum repayment term for any new support to be entered into shall be 270 days; three years after implementation the maximum repayment term of 180 days shall apply. It is understood that where there are, after any of the relevant dates, pre-existing support arrangements entered into under the limits established in the sub-paragraphs (i)-(iii) above, they shall run their original term. Self-financing: the self-financing period referred to in paragraph 3(b) shall be [6][7.5] years for developing country Members. Least-developed and net food-importing developing countries as listed in G/AG/5/Rev.8 shall be accorded differential and more favourable treatment comprising allowance for a repayment term in respect of them of 360 days for the acquisition of basic foodstuffs. However, should these Members face exceptional difficulties in financing normal levels of commercial imports of basic foodstuffs and/or in accessing loans granted by multilateral and/or regional financial institutions, they shall be accorded a repayment term of 540 days. ANNEX K Possible new Article 10 bis of the Agreement on Agriculture Agricultural Exporting State Trading Enterprises Members shall ensure that agricultural exporting 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 ϲʹ Agreements. Entities For the purpose of the disciplines set out hereunder in this Article, an agricultural exporting state trading enterprise shall be any enterprise which meets the working definition provided for in the Understanding on the Interpretation of Article XVII of the GATT 1994. Disciplines In order to ensure the elimination of trade-distorting practices with respect to agricultural exporting state trading enterprises as described above, Members shall: eliminate, in parallel and in proportion to the elimination of all forms of export subsidies including those related to food aid and export credits: 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; 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, borrowing, lending or government guarantees for commercial borrowing or lending, at below market rates; and 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. [by 2013, the use of agricultural export monopoly powers for such enterprises.] ensure that any use of agricultural export monopoly powers by such enterprises 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. Special and differential treatment 4. Notwithstanding paragraph [3(a)(iv)] above, agricultural exporting state trading enterprises in developing country Members which enjoy special privileges to preserve domestic consumer price stability and to ensure food security shall be permitted to maintain or use export monopoly powers to the extent that they would not be otherwise inconsistent with other provisions of this Agreement and other ϲʹ Agreements. 5. Where a developing country Member has an agricultural exporting state trading enterprise with export monopoly powers, that enterprise may continue also to maintain or use those powers, even if the purpose for which that enterprise has 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 product 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 ϲʹ Agreements. 6. In any case, agricultural exporting state trading enterprises in least-developed country Members and Members, small, vulnerable economies, whether or not they enjoy such special privileges to preserve domestic consumer price stability and to ensure food security, shall be permitted to maintain or use monopoly powers for agricultural exports to the extent that they would not be otherwise inconsistent with other provisions of this Agreement and other ϲʹ 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, relevant information regarding the enterprise's nature and operations. This will, consistent with standard ϲʹ practice and normal commercial confidentiality considerations, require 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 effective transparency. Members shall notify any benefits, not otherwise notified under other ϲʹ disciplines, that 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 export enterprise shall provide, subject to normal considerations of commercial confidentiality, information requested concerning the enterprise's export sales of agricultural products, the product exported, the volume of the product exported, the export price and the export destination. ANNEX L Possible New Article 10.4 TO REPLACE THE CURRENT ARTICLE 10.4 of the Agreement on Agriculture International Food Aid Members reaffirm their commitment to maintain an adequate level of international food aid (hereinafter referred to as "food aid"), 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 situations. Members shall ensure that food aid is provided in full conformity with the disciplines below, thereby securing the objective of preventing commercial displacement. General disciplines applicable to all food aid transactions Members shall ensure that all food aid transactions are provided in conformity with the following provisions: they are needs-driven; they are in fully grant form; they are not tied directly or indirectly to commercial exports of agricultural products or of other goods and services; they are not linked to the market development objectives of donor Members; and agricultural products provided as food aid shall 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-exportation occurs as an integral part of an emergency food aid transaction that is itself otherwise in conformity with the provisions of this Article. The provision of food aid shall take fully into account local market conditions of the same or substitute products. Members shall refrain from providing 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. 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 compromised. Members commit to making their best efforts to move increasingly towards more cash-based food aid. 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. 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 transactions in emergency situations (Safe Box) To ensure that there is no unintended impediment to the provision of food aid during an emergency situation, food aid provided 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: there has been a declaration of an emergency by the recipient country or by the Secretary-General of the United Nations; or 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 Red Cross and 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 undertaken by a relevant United Nations agency, including the World Food Programme; the International Committee of the Red Cross and the International Federation of Red Cross and Red Crescent Societies. 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 duration. 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 United Nations agency responsible for the needs assessment has not, within this period, given a negative assessment). Where, within or by the end of this period, the relevant UN agency has carried out a positive needs assessment and the other conditions of paragraph 6 have been satisfied, 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. There shall be no monetization for food aid inside 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 within the territory of the recipient least-developed country such that commercial displacement is avoided or, if not feasible, at least minimized. A notification will be required on an ex-post basis by donor Members at six-month intervals in order to ensure transparency. Subject to its continued conformity with other provisions of this Article, food aid that is in conformity with paragraph 6 may be provided as long as the emergency lasts subject to an assessment of continued genuine need as a result of the initial onset of the emergency. The relevant United Nations agency shall be responsible to make such determination. Further disciplines for food aid transactions in non-emergency situations Further to the disciplines set out in paragraphs 1 to 5 above, in-kind food aid for consumption in non-emergency situations outside the Safe Box shall be: based on a needs assessment carried out by an international or regional intergovernmental organization, including the UN, which should involve the recipient country and which may involve humanitarian non-governmental organizations working in partnership with the recipient country; 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 be provided consistently with the objective of preventing, or at the very least minimizing, commercial displacement. Commercial displacement 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. Monetization of in-kind food aid shall be [prohibited.] permissible [solely where it is necessary to fund the transportation and delivery of food aid to least-developed and net food-importing developing country Members. However, such monetization shall only be carried out within the territory of the recipient least-developed or net food-importing developing country.,  Additionally, commercial displacement shall be avoided or, if not feasible, at least minimized.][to fund activities that are directly related to the delivery of the food aid to developing country recipients, or for the procurement of agricultural inputs to low-income or resource-poor producers in developing countries]. Monitoring and surveillance Food aid donor Members shall be required to notify to the Committee on Agriculture, on an annual basis, the following data [ ]. ANNEX M MONITORING AND SURVEILLANCE New Article 17 Committee on Agriculture A Committee on Agriculture is hereby established. The Committee shall carry out the functions necessary to implement the provisions of this Agreement and the furtherance of its objectives, in particular with respect to: monitoring Members' implementation of their scheduled and rule-based commitments in market access, domestic support and export competition under this Agreement; providing Members with a regular forum for consultations with respect to the reform programme in agricultural trade within the framework of their commitments under this Agreement; performing any other function connected with this Agreement that the Council for Trade in Goods or a higher level body may determine; and establishing any subsidiary body, peer, advisory group, or working party, as it may deem appropriate to perform the above functions. New Article 18 Monitoring and Surveillance Progress in the implementation of commitments negotiated under the reform programme shall be reviewed by the Committee on Agriculture. For this purpose, the Committee on Agriculture shall elaborate comprehensive notification procedures as well as detailed upfront and annual information requirements to monitor Members' compliance with their scheduled and rule-based commitments under all the relevant provisions of this Agreement. These procedures shall be adopted by the Committee within [one month] following the entry into force of the Agreement and shall be observed by all Members in a timely manner. The least-developed country Members may delay compliance with notification obligations for a period of [five] years. Where such compliance is prevented by a lack of technical expertise or resources, the Secretariat shall provide the relevant technical assistance upon request to encourage compliance with notification requirements. The Committee shall review the operation of, and compliance with, the notification procedures after [three] years following the entry into force of the Agreement, and thereafter as the need arises, with a view to make recommendations towards their improvement. The review process shall be undertaken by the Committee on Agriculture in formal meetings on the basis of notifications submitted by Members, and 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 Committee shall encourage and facilitate adhoc consultations and thematic reviews among Members on specific matters of relevance to the reform programme. To enhance transparency, each Member shall designate one enquiry point which is responsible for the provision of information to all reasonable questions from interested Members regarding trade policy matters and domestic agricultural regulations that are within the scope of this Agreement, without requiring that Member to disclose confidential information. Any Member may bring to the attention of the Committee on Agriculture any measure which it considers ought to have been notified by another Member. 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. To assist the Committee in carrying out its monitoring and surveillance function, the Secretariat shall prepare any documentation that may be required to facilitate the review process, as well as an annual factual report on the operation of this Agreement based on notifications and other reliable information available to it. A more detailed set of provisions in respect of applicable procedures for notification, monitoring and surveillance under Committee authority shall be annexed (to be finalized). [Member proposals, including new proposals just to hand, remain on the table for review.] __________  This shall be applicable to Albania, Armenia, Georgia, Kyrgyz Republic and Moldova.  This shall be applicable to Moldova which is the only such Member with a Final Bound Total AMS.  This shall be applicable to Albania, Armenia, Georgia, Kyrgyz Republic and Moldova.  "Product-specific" commitments have the same meaning as they are used in the Uruguay Round Agreement on Agriculture.  Where a Member makes use of the additional flexibilities under paragraphs 24 and 25 above to obtain product-specific AMS entitlements that it would not otherwise secure through the general base period, the corresponding product-specific de minimis entitlement that would otherwise have accrued to that Member through the general base period shall be deducted from that de minimis base for reduction commitments, thereby avoiding double counting.  This shall be applicable to Albania, Armenia, Georgia, Kyrgyz Republic and Moldova.  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.  This shall not be inclusive of the tariff cuts resulting from the modalities applicable to tropical products and tariff escalation cuts respectively, except where the effect of these reductions is to increase the overall average tariff cut for the Member concerned by more than an additional 2.5 ad valorem percentage points.  The Members concerned are those that meet the criteria set out in paragraph 151 and are listed in AnnexI. As is made clear in the Agreed Framework, Small vulnerable economies (SVEs) are not meant 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 avail 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, Cte d'Ivoire and Nigeria (plus other Members that can provide data that show that they meet the criteria in paragraph 151).  This is applicable to Albania, Armenia, Georgia, Kyrgyz Republic and Moldova.  See Annex C regarding the calculation of these tariff quota expansion commitments.  [Alternatively, the cuts shall be exactly half-way between these two options.]  See Annex F.  Below the minimum entitlement of 8 per cent referred to in the next sentence, the developing country Member concerned need not resort to guidance by those indicators.  Where a Member finds that it would not, after guidance by indicators, be entitled to any additional Special Products beyond the minimum provided for in this paragraph, that Member may, in effect, "transfer" any unused Sensitive Products entitlement to obtain thereby additional Special Products, subject to the following: (a)that the maximum entitlement for transfer cannot be more than would be consistent with respecting the overall ceiling of [12] [20] per cent of tariff lines for Special Products; and (b) that the tariff reduction treatment for the tariff lines concerned shall be in conformity with the tariff cut entitlements for Special Products under this paragraph, except that sensitive product "transfers" cannot be used for [additional] "no cut" Special Products.  Defined as a maximum of [4] [8] tariff lines at the 6-digit level of the Harmonized System (HS) nomenclature.  [For those Members with domestic consumption data available to them and for whom the volume of imports in any given year is less than the situation described in paragraph 128(c), the remedy otherwise specified here shall apply only where: (a) the volume of imports in the current year is above a minimum threshold of [7.5] per cent of domestic consumption; (b) the volume of imports in the current year has increased by at least 20 per cent in absolute terms compared to the previous year; and (c) the ratio of the volume of imports to domestic consumption in the current year has increased by a factor of at least [0.3] over the rolling three-year average.]  Hereafter the "import price".  A shipment shall not be considered for purposes of paragraphs  REF _Ref190226167 \n \h 130 and  REF _Ref190226189 \n \h 131 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.  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.  Hereafter the "reference price". The reference price used to invoke the provisions of this paragraph shall be the average monthly c.i.f. unit value of the product concerned.  The text of this paragraph is the "Decision on Measures in Favour of Least-Developed Countries" in Annex F of the Hong Kong Ministerial Declaration (WT/MIN(05)/DEC).  For the purpose of these modalities, these products are those specified and delimited in terms of each products 6-digit tariff line coverage in the agreed Attachment.  For the purpose of these modalities, these products are those specified and delimited in terms of each products 6-digit tariff line coverage in the agreed Attachment.  This allocation template aligns with the products specified in the attachment and functions to assign the domestic consumption (proxies) for the products concerned.  Idem.  The actions and remedies taken by the importing Member pursuant to the underfill mechanism shall not impede the rights of a Member holding a country-specific allocation for that tariff quota with respect to their country-specific allocation.  Excluding more disaggregated lines which have a majority of their ingredients which are not tropical or alternative products.  Excluding more disaggregated lines which have a majority of their ingredients which are not tropical or alternative products.  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 ϲʹ's world exports by commodity group and aligning the resulting figures to the ϲʹ's world total imports. Intra-trade of the 25 EC member States was then subtracted from the totals.  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.  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.  "Governmental and non-governmental enterprises, including marketing boards, which have been granted exclusive or special rights or privileges, including statutory or constitutional powers, in the exercise of which they influence through their purchases or sales the level or direction 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.  Unless otherwise specified, the term food aid is used to refer to both in-kind and cash-based food aid donations.  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 Member shall in any case be obliged to avoid or, if this is not possible in the circumstances, to minimize, any adverse 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.  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, the relevant United Nations agency shall be responsible for the conduct of the needs assessment and its ultimate approval.  In the case of a landlocked Member, additionally for the transit transport/delivery from the extra-territorial continentally contiguous port of final unloading to the destination territorial border.  Where a Member seeks to provide food aid involving monetization not carried out as provided for under this provision, a written notification on the proposed transaction (or programme of transactions) shall be forwarded to a standing committee of experts and to the Committee on Agriculture. Such a notification shall specify in writing all the circumstances applicable including the rationale for the proposed transaction, all details of the proposed transaction and how it is proposed that commercial displacement will be avoided or, if not possible, at least minimized. The standing committee of experts shall, within 14 days of the receipt of notification, invite submissions, to be received within 14 days, from other interested parties on the matter. The standing committee of experts shall render its judgement on the proposed transaction within thirty days thereafter. Any proposed transaction shall be stayed pending that judgement, which shall be binding.     TN/AG/W/4/Rev.1 Page  PAGE 48 TN/AG/W/4/Rev.1 Page  PAGE 47 TN/AG/W/4/Rev.1 Page  PAGE 30 TN/AG/W/4/Rev.1 Page  PAGE 34 TN/AG/W/4/Rev.1 Page  PAGE 41 TN/AG/W/4/Rev.1 Page  PAGE 44 TN/AG/W/4/Rev.1 Page  PAGE 49 TN/AG/W/4/Rev.1 Page  PAGE 50 TN/AG/W/4/Rev.1 Page  PAGE 51 TN/AG/W/4/Rev.1 Page  PAGE 56 TN/AG/W/4/Rev.1 Page  PAGE 55 TN/AG/W/4/[Rev.1] Page  PAGE 60 TN/AG/W/4/Rev.1 Page  PAGE 60 TN/AG/W/4/[Rev.1] Page  PAGE 61 TN/AG/W/4/Rev.1 Page  PAGE 61 )/05>?ܱ𰿱F*CJaJh9h[Q5:CJ*aJ* ?Jkdo$$Ifl40+p# +E 4 lalf4$d$Ifa$gdpt^Hkd$$Ifl40+p#`+E 4 lalf4 $$Ifa$gdpt^$dh$Ifa$gdpt^2IZ\/?@AKLMNSEkdQ$$Ifl0+p#+E 4 lalHkd$$Ifl40+p# +E 4 lalf4 $$Ifa$gdpt^$d$Ifa$gdpt^ NOhxyz{|}WRRRgdf(Ekd+$$Ifl0+p#+E 4 lal $Ifgdpt^ $$Ifa$gdpt^Gkd$$Ifl`0+p#+E 4 lalz{}      $ m s x  < = \ ܻ昋{oc{Z{ZQZ{QZ{ZhUIhtaJhUIhDsaJhUIh6]aJhUIhDs6]aJhUIhaJ hUIhf(hUIhf(KHmH sH !hUIhf(B*aJmH phsH hUIh[QaJhUIhcaJhUIh5aJhH&hH&>*aJ hH&>*aJ h[Q5aJhUIh[Q5aJhUIh[QaJmH sH hUIhf(aJmH sH }    $ m x = N   & Fgd $$ & Fxgd<` & FgdDs & FgdDs & FgdR $$ & Fxgd}$$gdl $$$a$gdl$a$gd2(gdf(gdiN $a$gd[Q . 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