Non-Agricultural Market Access
Encyclopedia
The Non-Agricultural Market Access (NAMA) negotiations are based on the Doha Declaration
of 2001 that calls for a reduction or elimination in tariffs, particularly on exportable goods of interest to developing countries.
NAMA covers manufacturing products, fuels and mining products, fish and fish products, and forestry products. These products are not covered by the Agreement on Agriculture or the negotiations on services.
The WTO considers the NAMA negotiations important because NAMA products account for almost 90% of the world's merchandise exports.
Pierre Louis Girard, Chairman of the NGMA, made the first proposal in 2003 before the Cancun Ministerial about the modalities regarding how to take the process forward. However, Girard's proposal faced severe opposition from the developed members because proposed a smaller tariff cut than the one that the developed member countries had been advocating.
However, by the time the Cancun Ministerial was held in 2003, the second text on NAMA was opposed by the developing countries for moving away from the first NAMA draft, especially by the G90
and African, Caribbean and Pacific Group of States countries.
The deadlock on NAMA negotiations was broken in July 2004, which was the first agreement amongst the countries after the collapse of Cancun. The July 2004 agreement also laid the framework for establishing future modalities.
A tariff binding is a ceiling above which a member country cannot apply a tariff, thus representing the maximum tariff than can be applied by a member.
The NAMA negotiators have opted in favour of a formula
approach to tariff reductions rather than a linear approach. The Swiss formula, which has been propounded by the developed countries such as the US, the EC countries, Norway, and Japan, proposes to cut tariffs steeply without taking account of the existing tariff profile of a country.
The modified Swiss formula, on the other hand, takes into account the tariff profile of the countries while carrying out tariff reductions. This approach is supported by the developing countries.
The group have two main objectives:
Member countries of NAMA-11 are Argentina
, Bolivarian Republic of Venezuela, Brazil
, Egypt
, India
, Indonesia
, Namibia
, Philippines
, South Africa
and Tunisia
.
Doha Declaration
The November 2001 Doha Declaration on the TRIPS Agreement and Public Health was adopted by the WTO Ministerial Conference of 2001 in Doha on November 14, 2001...
of 2001 that calls for a reduction or elimination in tariffs, particularly on exportable goods of interest to developing countries.
NAMA covers manufacturing products, fuels and mining products, fish and fish products, and forestry products. These products are not covered by the Agreement on Agriculture or the negotiations on services.
The WTO considers the NAMA negotiations important because NAMA products account for almost 90% of the world's merchandise exports.
History
NAMA negotiations formally began in January 2002 after the Negotiating Group on Market Access (NGMA) was created.Pierre Louis Girard, Chairman of the NGMA, made the first proposal in 2003 before the Cancun Ministerial about the modalities regarding how to take the process forward. However, Girard's proposal faced severe opposition from the developed members because proposed a smaller tariff cut than the one that the developed member countries had been advocating.
However, by the time the Cancun Ministerial was held in 2003, the second text on NAMA was opposed by the developing countries for moving away from the first NAMA draft, especially by the G90
G90
The G90, otherwise known as the Group of 90, is an alliance between the poorest and smallest developing countries, many of whom are part of the World Trade Organization...
and African, Caribbean and Pacific Group of States countries.
The deadlock on NAMA negotiations was broken in July 2004, which was the first agreement amongst the countries after the collapse of Cancun. The July 2004 agreement also laid the framework for establishing future modalities.
Main Issues
Tariff Reduction: methodology for reducing tariffs is at the core of the negotiations over NAMA. However, here too the developed and developing countries are divided over the extent to which tariff reductions will be carried out. At the heart of the debate is the reconciliation of the process of tariff reduction and the need to use tariffs as a policy tool, primarily by developing countries interested in protecting emerging industries for developmental purposes.A tariff binding is a ceiling above which a member country cannot apply a tariff, thus representing the maximum tariff than can be applied by a member.
The NAMA negotiators have opted in favour of a formula
Formula
In mathematics, a formula is an entity constructed using the symbols and formation rules of a given logical language....
approach to tariff reductions rather than a linear approach. The Swiss formula, which has been propounded by the developed countries such as the US, the EC countries, Norway, and Japan, proposes to cut tariffs steeply without taking account of the existing tariff profile of a country.
The modified Swiss formula, on the other hand, takes into account the tariff profile of the countries while carrying out tariff reductions. This approach is supported by the developing countries.
NAMA-11
A group of eleven developing countries working toward strengthening NAMA.The group have two main objectives:
- supporting flexibilities for developing countries
- balance between NAMA and other areas under negotiation.
Member countries of NAMA-11 are Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, Bolivarian Republic of Venezuela, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
, Egypt
Egypt
Egypt , officially the Arab Republic of Egypt, Arabic: , is a country mainly in North Africa, with the Sinai Peninsula forming a land bridge in Southwest Asia. Egypt is thus a transcontinental country, and a major power in Africa, the Mediterranean Basin, the Middle East and the Muslim world...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
, Namibia
Namibia
Namibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...
, Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
and Tunisia
Tunisia
Tunisia , officially the Tunisian RepublicThe long name of Tunisia in other languages used in the country is: , is the northernmost country in Africa. It is a Maghreb country and is bordered by Algeria to the west, Libya to the southeast, and the Mediterranean Sea to the north and east. Its area...
.