s&dt in market access: implications of the tiered … · • 5 in the pacific: kiribati, samoa,...
TRANSCRIPT
S&DT IN MARKET ACCESS:Implications of the Tiered Formula
for Developing Countries
Mário JalesSenior ResearcherICONE
Special and Differential Treatment (S&DT) in the WTO Agriculture Negotiations
Joint FAO-ICTSD Informal Expert ConsultationGeneva, 28 September 2004
SUMMARY
I. The tiered formula as of 1st August 2004
II. What the tiered formula could become
III. Integrating S&DT
IV. Implications for developing countries
THE TIERED FORMULA as of 1st August 2004
- What the Doha Work Programme determines and what it does not determine.
WHAT THE DWP DETERMINES
Single approach;Differences in tariff structures must be
taken into account;Bound rates as starting point;Progressivity;Flexibility;Special and differential treatment.
WHAT THE DWP DOES NOT DETERMINE
Structure of the tiered formula;
Election criteria for sensitive products;
Approach to tariff caps;
Approach to tariff simplification;
Approach to tariff escalation;
Approach to preference erosion.
WHAT THE TIERED FORMULA COULD BECOME
- Key elements of the tiered formula.
- Reading between the lines.
WHAT IS A TIERED FORMULA?M
agni
tude
of t
ariff
line
s (in
%)
CUT 1
CUT 2
CUT 3B
A
tariff lines (in descending order)
TIERED FORMULA: KEY ELEMENTS
Type of cut:Straight cut;Uruguay round formula;Swiss formula;Flexible Swiss formula;Dynamic formula.
Number of bands;
Cut-off points.
Tariff structure
SINGLE APPROACH
Paragraph 28“To ensure that a single approach for developed and developing country Members meets all the objectives of the Doha mandate, tariff reductions will be made through a tiered formula that takes into account their different tariff structures.”
DEVELOPED vs. DEVELOPING COUNTRIES
Same type of reduction formulae?Same reduction coefficients?Same cut-off points?
Same number of bands?
YESNO
NO
??
TARIFF STRUCTURES: Bound Tariffs
7450246015228T>100%
084742284148013930%<T<100%
00241001,0601,2740%<T<30%
00018399388T = 0%
7458476929592,0911,829# of lines120%80%10%0%0%0%Minimum120%80%300%55%277%350%Maximum0%0%53%10%40%30%Std. Dev.
120%80%100%35%14%4%Median120%80%117%36%29%12%Mean
TanzaniaCameroonIndiaBrazilEU-15USA
Source: ICONE.
TARIFF STRUCTURES: Applied Tariffs
AppliedBoundAppliedBoundAppliedBoundAppliedBound
00
880799590%55%6%10%10%
0841100189590%55%10%35%36%
BRAZIL
07450012246T>100%
0008479542230%<T<100%
57608470568240%<T<30%
169000170T = 0%
745745847847692692# of lines0%120%5%80%0%10%Minimum25%120%30%80%182%300%Maximum10%0%9%0%26%53%Std. Dev.25%120%25%80%30%100%Median18%120%23%80%37%117%Mean
TANZANIACAMEROONINDIA
Source: ICONE.
TARIFF STRUCTURES: Bound Tariffs
0%
50%
100%
150%
200%
250%
300%
350%
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000
# OF TARIFF LINES
AV
E %
USA EU-15 INDIA BRAZIL CAMEROON TANZANIA
TARIFF STRUCTURES: Developed Countries
0%
50%
100%
150%
200%
250%
300%
350%
0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000
# OF TARIFF LINES
AVE
%
USA EU-15
TARIFF STRUCTURES: Developing Countries
0%
50%
100%
150%
200%
250%
300%
350%
0 100 200 300 400 500 600 700 800 900
# OF TARIFF LINES
AV
E %
INDIA BRAZIL CAMEROON TANZANIA
PROGRESSIVITY
CUT 1 (ex.: 30% straight cut)
CUT 2 (ex.: 40% straight cut)
CUT 3 (ex.: 50% straight cut)
Mag
nitu
de o
f tar
iff li
nes
(in %
)
CUT 3 > CUT 2 > CUT 1
B
A
tariff lines (in descending order)
PROGRESSIVITYM
agni
tude
of t
ariff
line
s (in
%)
COMBO 3 > COMBO 2 > COMBO 1
COMBO 1 HALF: 30% straight cut HALF: UR formula 40-20
COMBO 2HALF: 40% straight cut HALF: UR formula 50-30
COMBO 3 HALF: 50% straight cut HALF: UR formula 60-40
B
A
tariff lines (in descending order)
FLEXIBILITY
Sensitive products;Number of products;Selection criteria;
Substantial improvement in market access:Tariff reduction vs. TRQ expansion
Reduction or elimination of in-quota tariff;
Improvements in the administration for existing TRQs.
INTEGRATING S&DT
- For Least-Developed Countries.- For All Developing Countries.
ALL DEVELOPING COUNTRIES
• Proportionality (tariff reduction/quota expansion);• Longer implementation periods;• Number and treatment of sensitive products;• Special products (food/livelihood security and rural development);• Special safeguard mechanism;• Liberalization of trade in tropical agricultural products;• Preference erosion.
LEAST-DEVELOPED COUNTRIES
• LDCs are not required to reduce tariffs;
• LDCs should enjoy duty-free and quota-free access to markets of developed countries (and some developing countries);
• Key Goal: Maintain tariff preference levels?
• 34 in Africa: Angola, Benin, Burkina Faso, Burundi, Cape Verde, Central African Rep., Chad, Comoros, Congo, Djibouti, Equatorial Guinea, Eritrea, Ethiopia, Gambia, Guinea, Guinea-Bissau, Lesotho, Liberia Madagascar, Malawi, Mali, Mauritania, Mozambique, Niger, Rwanda, Sao Tome & Principe, Senegal, Sierra Leone, Somalia, Sudan, Tanzania, Togo, Uganda, and Zambia;• 9 in Asia: Afghanistan, Bangladesh, Bhutan, Cambodia, Laos, Maldives, Myanmar, Nepal, and Yemen.• 5 in the Pacific: Kiribati, Samoa, Solomon Is., Tuvalu, and Vanuatu.• 1 in the Americas: Haiti.
IMPLICATIONS FOR DEVELOPING COUNTRIES
- Offensive interests.
- Defensive interests.
TARIFF STRUCTURE:United States
0%
50%
100%
150%
200%
250%
300%
350%
01 02 02 04 04 04 04 04 06 07 07 07 08 08 09 10 12 12 15 16 17 18 18 19 20 20 20 20 21 21 22 23 24 41 51 52
HS CHAPTERS
AVE
%
TOBBACO
GRAPES
SUGAR PEANUTSDAIRIES PEANUTS
PRODUCTS
DAIRY
TARIFF STRUCTURE:European Union
0%
50%
100%
150%
200%
250%
300%
01 02 02 02 02 04 04 04 06 07 07 08 08 10 11 12 12 15 15 16 18 19 20 20 20 20 20 22 22 22 23 24 35
HS TARIFF LINE
AVE%
MEAT OF BOVINE AND PORK
STARCHPROCESSED
CEREAL GRAINS
WINE
DAIRIES BANANAS
GARLIC
SUGAR
MUSHROOMS
RICE
OLIVE OIL
PREPARED VEGETABLES
DAIRY
52
TARIFF STRUCTURE:Brazil
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
01 01 02 02 02 04 05 06 07 07 07 07 08 08 09 09 10 11 12 12 12 13 15 15 15 17 18 19 20 20 21 22 22 23 24 33 35 43 52
HS TARIFF LINE
AVE
%
BOUND APPLIED
DAIRY
COCONUTSPEACH
PREPARATIONS
WINE
TARIFF STRUCTURE:India
0%
25%
50%
75%
100%
125%
150%
175%
200%
225%
250%
275%
300%
01 02 02 02 04 05 07 07 08 08 08 09 10 11 12 13 15 15 16 18 20 20 21 22 23 33 41 51
HS TARIFF LINE
AV
E %
BOUND APPLIED
NUTS WHEATVEGETABLE
OILS
BEVERAGES
TARIFF STRUCTURE:Cameroon
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
01 02 02 02 04 05 07 07 08 08 09 09 09 09 10 11 12 12 13 15 15 17 19 20 20 20 22 22 23 33 43 52
HS TARIFF LINE
AVE
%
BOUND APPLIED
50% cut
TARIFF STRUCTURE:Tanzania
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
110%
120%
130%
01 02 02 02 04 05 07 07 07 08 08 08 09 10 11 11 12 12 14 15 15 16 17 19 20 20 22 22 23 24 35 43 52
HS TARIFF LINE
AVE
%
BOUND APPLIED
