Tariffication, the conversion of
nontariff barriers to equivalent
bound tariffs, was one of the most important outcomes of the
Uruguay Round Agreement on Agriculture (AoA). The adoption of a
tariffs-only approach for agriculture was a sweeping reform that
went a long way toward subjecting agricultural trade to the same
disciplines applied to other traded goods.
The Uruguay Round tariff reductions, along with the
establishment of
tariff-rate quotas (TRQs), increased market access for
agricultural exports, but also left many high tariffs in place (see
AoA Issues Series: Market Access: Tariffication
and Tariff Reduction). Agricultural trade would benefit from
reducing high tariffs, expanding and reforming TRQs, and improving
the predictability of tariff protection.
In the Doha Ministerial Declaration, members
committed to negotiations aimed at producing "substantial
improvements in market access for all products." WTO members have
agreed that tariff reductions will be made through a tiered
tariff-cutting formula that takes into account their different
tariff structures. Each country's tariffs will be structured into
four tiers based on the height of each tariff, with each tier
subject to a different percentage reduction. The overall objective
of the tiered formula is to achieve a degree of harmonization of
tariff structures across countries and products. This will be
achieved through progressively deeper cuts on those tiers
containing higher tariffs, with flexibilities for members to
designate a limited number of Sensitive Products. Sensitive
Products will be subject to lower reduction commitments, but with
some additional TRQ commitments required to assure that substantial
improvements in market access will be achieved for all
products.
Concerning "special and differential treatment for developing countries,"
there is agreement that developing countries' tariffs will be
subject to lesser cuts than developed countries' tariffs and they
will be given more time to implement these cuts. There is also
agreement that developing countries will be able to designate a
limited number of products as Special Products, which would be
subject to either no or lesser tariff cuts.
See the AoA Tariffs and Market Access section of the
recommended readings page for more information regarding tariff and
market-access issues related to the WTO Agreement on
Agriculture.
Other Agreement on Agriculture Issues: