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Report
No.221004 |
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- International - |
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Informal WTO Council Meeting Generally Agrees on "Tariff Conversion" Methodology An informal ministerial meeting of the WTO held in Paris on May 4 agreed, for the most part, on methodology for calculating tariffs. The issue has been a stumbling block in advancing the talks to reduce import tariffs in the area of agriculture. The deal paves the way for resumption of full swing negotiations aimed at establishing modalities (standards for the reduction of protective measures) by the ministerial Council meeting scheduled to be held in Hong Kong in December. An agreement reached at this time was on methodology to convert "specific tariff" expressed as so much yen for a unit weight (ex. one kilogram) like in the case of Japanese rice import tariff to "ad valorem tariff" expressed as a percentage of the value of import. Conversion to "ad valorem (percentage) tariff" is essential for grouping various commodities (or their tariffs) into different bands in accordance with a tiered formula of tariff reduction. The deal was struck by giving favor to exporting nations with respect to where import prices are taken from and at what combination to use while importer' point was taken account of on the method of calculation. Negotiation will now move on to discuss other issues such as how differently to treat "sensitive products" strongly demanded by net food importing countries including Japan as well as concrete formula of tariff reduction. The new round of WTO trade negotiation is set to be completed by the end of 2006. In agriculture, Mr. Tim Groser, chairman of Agricultural Negotiating Committee, will present a draft outline agreement on "modalities" to member countries by the end of July with an eye on securing basic agreement by the December ministerial Council meeting. The deal this time by an informal ministers' meeting will for now be tabled for consideration and confirmation by all the WTO members, and negotiations on substance will then follow in earnest. |
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