NAMA: LOOKING AT 'NON-CORE' ISSUES WHILE WAITING ON AGRICULTURE

Industrial goods negotiators at the WTO are once again waiting for signs of progress in the Doha Round agriculture talks before tackling the controversial issue of how the world's major markets will cut tariffs on manufactures.

Trade diplomats report that the chair of the negotiations on non-agricultural market access (NAMA), Canadian Ambassador Don Stephenson, will not address the core areas - the overall tariff reduction formula, exceptions for developing countries to shield some products from tariff cuts, and the treatment of unbound tariff lines - during his consultations this week.

Instead, he will meet with the proponents of some of the 'non-core' issues, such as the group of small and vulnerable economies (SVEs) or the so-called 'paragraph 6' group of poor countries with binding caps on fewer than 35 percent of their tariff lines, both of which are seeking special treatment distinct from that afforded to all developing countries. After that, he will proceed to meetings of small numbers' of delegates from different delegations and alliances.

Only in the first week of October will Stephenson turn to the core issues in the talks, said one source, referring to a letter the chair sent to Member delegations late last week.

Thus, unlike the agriculture talks, where negotiators have spent nearly three weeks intensively discussing the terms for a draft set out in July by the negotiating committee chair, the NAMA negotiations are proceeding gingerly. The main reason for this was that Stephenson's July draft agreement text received a chilly response, with the NAMA-11 group in particular complaining that the text was unfairly demanding of developing countries. The SVEs and the 'paragraph 6' countries also thought that the special tariff treatment accorded to them remained overly onerous (see BRIDGES Weekly, 1 August 2007).

Although talks are nonetheless likely to proceed from the parameters set out by Stephenson, delegates hope that signs of progress in the agriculture talks - and there have been modest ones (see related story, this issue) - will improve the mood music on NAMA.

Stephenson is believed to want to revise his draft modalities text, and release it at the same time as a revised draft agriculture deal. While once expected in mid-October, delegates now suggest this may happen towards the end of that month.

ICTSD reporting. .