Info Service on Trade and WTO Issues (Dec08/06)
Geneva, 28 Nov (Kanaga Raja) -- Argentina, in a communication to WTO members dated 25 November, has set out a basis on which it would be able to move ahead on a set of modalities in non-agricultural market access (NAMA) involving a Swiss formula coefficient of 35 and flexibilities of 16% of NAMA lines, with a 50% cut and no trade value limitation.
its communication (TN/MA/W/109),
said the Argentinian paper, in the case of a coefficient of less than
35 but greater than 25, the flexibilities required by
Argentina said that it is fully committed to the Doha Round negotiations, and endorsed the objective that the final agreement should be consistent with the development mandate and remedy the imbalances in the multilateral trading system resulting from asymmetry in the treatment of agricultural products vis-a-vis non-agricultural products.
Specifically, and in order to prevent a further deepening of the disparity of treatment between Agriculture and NAMA, Argentina considers it essential that the outcome of the Round, whatever it may be, should be in keeping with the provisions of paragraph 24 of the Hong Kong Ministerial Declaration in ensuring a comparably high level of ambition in market access for Agriculture and NAMA.
this connection, said the paper, "neither the draft NAMA modalities
"This is compounded by undue demands to limit flexibilities, impose 'anti-concentration' rules, and require mandatory participation by certain developing countries in sectoral agreements. All of this runs counter to the principle of special and differential treatment in favour of the developing countries," said the paper.
"This is the only way for developing country markets to continue making a dynamic contribution to the rise in global demand, in a context of financial crisis with its clear symptoms of international economic recession."
to the paper, the manufacturing industry, which accounts for approximately
17% of Argentine GDP, was one of the main engines of
From then on, the number of jobs in the industrial sector rose by 8% per year, from 773,036 in 2002 to 1,130,858 in 2007. As a result of economic recovery, the value of industrial goods imports underwent a continuous increase from $7,683 million in 2002 to $38,971 million in 2007, representing an annual growth rate of 38%.
The relative importance of tariffs as an industrial policy instrument is linked to acceptance and implementation of multilateral disciplines restricting the use of other tools such as subsidies, quantitative restrictions, regulations governing foreign investment, and directed lending schemes.
Many of these other tools are, however, used in agricultural production and trade in the developed countries, thus limiting Argentina's ability to benefit from the high competitiveness it enjoys in this area, the paper noted.
This is because of the differences in cuts pertaining to sensitive products, a situation that is further aggravated by the persistence of strongly managed trade, given the diversity of protection instruments, including tariff quotas. The reduction provided in the negotiations in respect of these quotas does not, for the time being, narrow the gap between in-quota and out-of-quota tariffs.
As far as the industrial sector in the developed countries is concerned, the granting of high subsidies to the automotive and other industrial and services sectors is currently under review in order to address the global financial crisis.
implementation of such measures would considerably alter competitive
conditions for countries, such as
"It is therefore all the more important that tariff reduction in NAMA by the developing countries should be consistent with the proposals set out in this document, including the possibility of exempting from tariff reduction sectors benefiting from subsidies in the developed countries."
view of the above, said the paper, and assuming that sufficient progress
is made in the Agriculture negotiations,
is a significant contribution and
in the case of a coefficient of less than 35 but greater than 25, the
flexibilities required by