G-33 Contribution on the Chairman's Reference Paper on Special Products

The following communication, dated 10 May 2006, is being circulated at the request of the G-33.

1. This paper seeks to convey the concerns of the G-33, and encapsulates those expressed during the intensive informal discussions held on 5 May 2006 by other developing countries represented in other developing countries' groupings, including the ACP, African Group and the LDCs, on the Chairman's Reference Paper on Special Products dated 4 May 2006 with a view to contribute to its amendment.

2. Special Products (SPs) play a crucial role in achieving the objectives of food security, livelihood security, and rural development, which are extremely important political, social and economic development imperatives, in most developing countries. The G-33 is thus firmly of the view that commercial considerations and/or the imports value of designated SPs cannot be introduced to assess the implications of the modalities on SPs. The negotiating mandate on SPs, incorporated in the July Framework, is unequivocal. The Hong Kong Ministerial Declaration has further specified self-designation of SPs guided by indicators based on the three criteria. Beyond that, any further specification of the treatment of SPs, as mandated by the July Framework, must also recognize the "fundamental importance of SPs" to the designating developing countries.

3. The presentation of statistics on some selected parameters developed by the Secretariat under instruction from the Chairman with the view to guide the resolution of the crucial issue of SPs, has naturally evoked surprise and unease. The WTO Members were not aware of a request for simulations on import values having been placed in order to direct the Members' attention to the implications of the G-33 proposal to designate at least 20% tariff lines as SPs. We have had no opportunity to discuss and agree upon the underlying assumptions, including the representative sample of Members. The assumptions used completely disregard the mandate. The scarce resources of the Secretariat should have been better utilised to assess the implications for the mandated criteria of food security, livelihood security and rural development needs of the various proposals, including that of the G-33 and the more recent ones.

4. The G-33 is quite firm that the mandate can bear no re-negotiation. The suggestions included in paragraphs 8 through 10 of the Reference Paper to cumulate the application of imports values with the three agreed criteria or to draw any interpretations linked to market access improvements must therefore be removed. The Framework requires each Member to make a contribution, but not each product. The principle of substantial improvement applies to each product in the sensitive product category but not in the Special Product category. Hence, the very premise of the Reference Paper goes contrary to the spirit of the Doha mandate, the provisions of the July Framework, and the Hong