Background
World Trade Organization Members in July 2004 concluded a
framework agreement as the basis to move forward with the Doha Round of
multilateral trade negotiations. Paragraph 7 of the Framework directs Members to
pursue a sectoral approach, which would allow WTO Members to eliminate or
harmonize tariffs in specific industry sectors.
The sectoral approach aims to eliminate (or harmonize)
tariffs in a given sector. This approach was used during the Uruguay Round to
negotiate agreements on wood, pulp, paper and furniture; metals; and
non-electric machinery; fish and fish products; textiles and clothing; leather,
rubber, and footwear; and transport equipment, and an agreement eliminating
tariffs on information technology products was concluded in 1997. In the
Information Technology Agreement negotiations it was decided that the Agreement
would come into effect once Members with a share of 90 percent of world trade
had joined it. The concessions were applied on an MFN basis. Under a sectoral
agreement, the pace, or staging, of tariff cuts country by country is open for
negotiation.
U.S.
Position
The United
States believes that a sectoral component is
essential to the overall success of tariff reduction and/or elimination
negotiations in the Doha Round and is seeking sectors of interest to other WTO
Members in an effort to build a critical mass of support for a sectoral approach
in as many areas as possible. The
United States
has suggested using the critical mass method, where a sectoral initiative would
be launched if a critical mass of players (importers and exporters) agrees to
participate.
Sectoral Initiatives
Under Consideration
WTO Members have formally or informally proposed several
sectors that might be considered for negotiation. These include agricultural equipment,
bearings, bicycles, cameras, ceramics, chemicals, civil aircraft, construction
equipment and machinery, electrical equipment and electronics, energy related
equipment, environmental goods, fertilizers, fish, footwear, forest products,
furniture, stones, gems and jewelry, glass, iron and steel, information
technology equipment, leather goods, machine tools, medical equipment, minerals
and raw materials including ores, motor vehicles, motor vehicle parts and
components, non-ferrous metals, office machines, paper and pulp,
pharmaceuticals, primary aluminum, scientific equipment, sporting goods,
textiles and clothing, titanium, and toys.