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: in developed countries, the Swiss Formula would also result in a much steeper reduction of industrial tariffs for the former, unless they are allowed to have vastly different coefficients in the formula than that for developed countries.
It is in the interest of developing countries to have as high a coefficient as possible. The coefficient range of 19-23 proposed in the DMT is too low for developing countries. Moreover, a coefficient of 19-23 for developing countries and 8-9 for developed countries, as proposed in the DMT, fails to respect the mandate of “less than full reciprocity (LTFR) in reduction commitments” on the part of developing countries, as enshrined in the Nama Mandate. It does not even come anywhere close to the Nama-11 proposal (of June 8, 2007) of a gap of at least 25 points. Applying a coefficient of 8 for developed countries and 23 for India would result in a reduction of the average bound tariffs of the developed countries by 45.6% (from 6.8% to 3.7%) and of India by 60% (from 34.7% to 13.8%), thereby turning the principle of LTFR on its head. While the Nama-11 called for an increase in paragraph 8 flexibilities beyond what is already on the negotiating table, the DMT has attempted to dilute even that limited flexibility, by proposing to link it up with the value of the coefficient, rather than treating it as a standalone provision, as enshrined in the Nama Mandate.
In contrast, the proposal in the DMT on non-tariff barriers (NTBs), which is supposed to be an integral part of the Nama negotiations, deals only with procedural aspects and does not even include any timeline. Importantly, NTBs are a major cause of concern for developing countries when it comes to real market access in the developed countries. The DMT on Nama is too ambitious compared to the draft modalities text on agriculture, thereby disregarding Article 24 of the HKMD, which calls for “a comparably high level of ambition in market access for agriculture and Nama”.
In a significant development, many developing countries, including the Nama-11 group and the African-Caribbean & Pacific (ACP) group, had strongly criticised the DMT before the WTO went for its summer recess. Negotiations have resumed on September 3, and Nama will soon be taken up. It needs to be underscored here that Stephenson himself has clarified that the DMT contains his own proposals and is not a...
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