WORLD TRADE  
ORGANIZATION   
TN/MA/W/37/Add.1 
28 May 2004 
 (04-2294) 
Negotiating Group on Market Access Original:   English 
   
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS 
 
Proposal on a Sectoral Agreement for Materials – The Primary Aluminium Case  
 
Communication from the United Arab Emirates 
 
Addendum 
 
  The following communication, dated 11 May 2004, is being circulated at the request of the delegation of the United Arab Emirates. 
 
_______________ 
 
 Since the February General Council meeting this year, the Negotiating Group on Market 
Access has held on last March its first formal m eeting and several informal discussions. During these 
discussions, the UAE delegation detected a clear wi llingness of delegations to  negotiate with each 
other and a concentration on the substance instead of the procedure. UAE perceived other positive 
element that all of members have avoided sinking  into repetitive debates and have focused their 
contributions on how solving prob lems and converging positions. 
  In this spirit, UAE has elaborated its second propos al, trying in the meantime to give effect to 
the appeal expressed by the Chairman of the Ne gotiating Group, and many  other delegations to 
submit more specific contributions. As it has been announced it the communication of May 2003 (TN/MA/W/37), UAE submit today a specific proposal on the sectoral component in the Non Agricultural Market Access (NAMA) package.   Concerning the references of the position, UAE  has preferred to follow a positive approach 
aiming at capitalizing all progress made before, durin g and after Cancun Conference. The objective is 
to suggest a constructive basis for discussion on th e sectoral agreements which constitutes a very 
sensitive and important issue not only for UAE but for all members.   The importance of this issue stems from th e engagements undertaken by many members, 
including UAE, to strengthen their national pol icy of diversifying the exporting sectors having 
comparative advantage. Otherwise, it is becoming so  evident that a single formula con not be taking 
into account the large diversity of economic situ ations across the WTO membership, and that a 
sectoral approach will be essential to find bala nce. For that purpose, the Doha mandate  
(Paragraph 16) is very clear and explicit while it insist s on the priority of initiatives, like sectoral tariff 
elimination, for products of substantiv e interest to developing countries. 
  In this respect, UAE suggests introducing a new sector into the list of specific sectors 
proposed to be covered by a sectoral tariff elimina tion approach; it’s the sector of raw materials, 
including non-ferrous metals; with primary aluminum as the strategic priority of the UAE.  
 
 Indeed, UAE attaches a strategic importance to  the Primary Aluminium  (HS 96: 76 01 – 
unwrought primary aluminium from the potlines of smelters) for which it suggests, as “a product of 
substantial export interest”, the complete elim ination of tariffs due to various arguments: TN/MA/W/37/Add.1 
Page 2  
 
 
 First of all, UAE proposes a win-win agreement on raw materials, and in particular metals 
(long sought for since the Uruguay Round), which is equally beneficial to developed and 
developing countries; wile favouring a fair level playing field.  
 
 Indeed, duty-free raw materials, including primary aluminium, are essential for the 
competitiveness of developed countries manufacturing and semi-manufacturing businesses; while the same products constitute generally strategic exports and emerging industries in 
developing countries. Therefore, we consider that a consensus among all WTO members could be easily reached around that proposal.  
 
 The world is in a trend of structural shortage for primary aluminium. Some experts forecast a 
world deficit over 8 millions tones by 2010, a lthough prolonged economic slow pace may 
create surplus for a few years. As it’s shown in the Annex N
o 1, the world primary aluminium 
demand has increased from 21 millions tonnes to approximately 27 millions tones (1995-2003) whereas the demand of developed countries has raised from 18 millions tones to approximately 26 millions tones. We expect th at this tendency will continue in the coming 
years such as indicated in the Annex N
o 2. The increase of world aluminium demand is due to 
its physical, economical and environmental pr oprieties; mainly in its key application 
(transportation, building, packaging, consumer goods).   
 
 The major integrated groups are concentrating a nd rationalizing, which results in curtailment 
of jobs and shrinking of suppliers for independe nt aluminium transformers – they are the ones 
who create the most new jobs, especially in downstream operations. Duty-free raw materials 
are essential to independent transformers w ho face everyday a harder competition and a 
restricted access to supplies, at a global and regional scale.  
 
 Primary aluminium counts for around 50% of the cost of aluminium products. Duty-free 
primary aluminium will stimulate aluminium consumption and support its competitiveness 
towards alternative materials such as steel and plastics.  
 
 Complete liberalization of primary aluminiu m would reduce speculative manipulations and 
distortions in the pricing of this raw mate rial. Thus providing a better visibility and 
predictability to the market while allowing for more transparency and a clear balance between 
demand and offer.    
  Besides, UAE would like to draw the attenti on of the members on the fact that most of raw 
materials, including primary aluminium, are subject ed to lowest tariffs. In  this respect, UAE support 
strongly the proposal that all of those tariffs should be eliminated at the beginning of implementation 
period for tariff elimination. In fact, there is no economic sense to keep applying such duties, since 
their abolition will not produce any considerable consequences for the members who applied them. In 
other words, those members – which are generally developed countries - will not be constrained to 
make much effort if they decide to eliminate these lowest tariffs. 
  The level at which a tariff is considered as lo west in not yet defined in the WTO, although 
some members have proposed options. For that re ason, UAE proposes that such lowest tariffs are 
defined at/or below 6% so that duties on primary aluminium can be eliminated in the last major developed regional markets where they are still applied. 
 
 Concerning the concept of a “critical mass”, it’s important to ensure that significant exporters 
and importers in the raw material sector participate in that sectoral agreement. For primary aluminium, the Annex N
o 2 shows, inter alias indicators, the main importers and exporters at present, 
and in the future according to certain forecasts (until 2020). UAE hopes that those members will be  TN/MA/W/37/Add.1 
 Page 3 
 
 
interested by the elements contained in this pr oposal and encouraged to share with the UAE 
delegation their appreciation in order to attain the cr itical mass required to conclude that Agreement.   
  To conclude, UAE wants to stress that primary aluminium is its second most important industry after oil; and one of with a considerable  potential for growth which is essential to the 
country’s economic and social development. UAE h as massively invested to reach the world’s top 
level for its standards in terms of technology,  quality, environment and labour policies. The 
liberalization of primary aluminium will enc ourage more productive investments upstream and 
downstream for this environment friendly metal. It will globally stimulate an industry which is 
evolving as a model for sustainable development. For these reasons, the elimination of all duties on 
primary aluminium is a major strategic objectiv e for UAE in the Doha Development Agenda.  
 
 Moreover, a sectoral agreement on raw material, including primary aluminium, can be 
considered as a salient example of co-operati on and convergence between the interests of both 
developed and developing countries in the WTO.  
 
 UAE invites all interested members to discu ss more-in depth the details of its sectoral 
proposal, keeping in mind that the ultimate objective is  to reach a balanced and “win-win” agreement. 
  To end with an optimistic note, international negotiators use to say: “when there is a will, 
there is a way”. UAE hopes that such proverb will be  a source of inspiration for the discussions on 
this initiative. TN/MA/W/37/Add.1 
Page 4  
 
Annex I 
 
   
 
    
 
    
 
     
 
    
Source: James F. king: Primary aluminum Flows.  Spoutwell House, Spoutwell Lane, Cobridge, 
England. October 2002.    
    
 
    
 
     TN/MA/W/37/Add.1
 Page 5 
Annex II 
Summary of primary aluminium flows by region 
(in '000 tons) 
 
 1990 
 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Canada 
Production 
Imports Exports Net Imports 
Consumption  
1567 
85 
1253 
-1169 
399  
2172 
134 
1719 
-1585 
617 
2374 
276 
1837 
-1561 
813 
2583 
223 
2046 
-1823 
760 
2583 
248 
2174 
-1926 
757 
2578 
262 
2035 
-1777 
801 
2582 
274 
2017 
-1743 
839 
2651 
276 
2082 
-1806 
845 
2885 
277 
2315 
-2035 
847 
2985 
282 
2405 
-2123 
862 
3000 
285 
2416 
-2129 
871 
3015 
295 
2409 
-2113 
902
USA + Mexico 
Production 
Imports Exports Net Imports Consumption  
4116 
991 702 289 
4405  
3386 
2017 
470 
1548 5250 
3733 
2664 
248 
2415 6348 
2679 
2715 
400 
2315 5145 
2760 
3776 
408 
3367 6177 
3254 
3513 
460 
3052 3656 
3660 
3304 
507 
2797 6507 
3743 
3207 
520 
2687 6480 
3728 
3385 
532 
2853 6831 
3746 
3543 
546 
2997 6794 
3765 
3632 
559 
3073 6889 
3784 
4079 
574 
3505 7339
South & Central America 
Production 
Imports 
Exports Net Imports Consumption  
1718 
53 
1127 
-1074 
554  
2030 
299 
1267 
-968 
845 
2102 
226 
1335 
-1109 
859 
1972 
190 
1165 
-979 
903 
2200 
82 
1410 
-1328 
885 
2299 
87 
1457 
-1369 
943 
2342 
91 
1459 
-1368 
988 
2347 
91 
1452 
-1360 
1001 
2359 
95 
1421 
-1325 
1047 
2395 
99 
1411 
-1312 
1098 
2729 
102 
1710 
-1608 
1145 
2790 
112 
1717 
-1605 
1210
European Union (15) 
Production Imports 
Exports 
Net Imports Consumption  
2552 3200 
1345 
1855 4427  
2159 4327 
1868 
2459 4709 
2509 5175 
1897 
3278 5473 
2574 5268 
1959 
3309 5334 
2576 5101 
2031 
3059 5407 
2614 5309 
2056 
3253 5613 
2679 5517 
2113 
3401 5803 
2685 5491 
2121 
3370 5781 
2385 5884 
2073 
3811 5908 
2397 6050 
2083 
3966 6037 
2409 6143 
2093 
4049 6117 
2421 6556 
2104 
4452 6503 TN/MA/W/37/Add.1 
Page 6 
 1990 
 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Other Europe – 10 New EU 
Members 
Production 
Imports Exports 
Net Imports 
Consumption  
 
191 339 102 
177 
378  
 
199 262 123 
139 
327 
 
272 535 266 
269 
512 
 
266 572 271 
301 
592 
 
270 742 286 
457 
545 
 
310 788 328 
460 
575 
 
359 872 396 
476 
586 
 
360 883 399 
484 
504 
 
326 939 394 
545 
618 
 
327 972 400 
572 
642 
 
329 998 403 
595 
663 
 
331 
1071 
406 
665 
729
Other Europe  
Production Imports Exports Net Imports 
Consumption  
1622 
347 
1247 
-899 
650  
1199 
418 
1232 
-814 
576 
1713 
611 
1893 
-1282 
780 
1795 
529 
1962 
-1432 
705 
1821 
574 
1629 
-1054 
754 
1915 
611 
1713 
-1102 
798 
2063 
641 
1859 
-1218 
828 
2158 
652 
1958 
-1305 
834 
2132 
696 
1944 
-1248 
863 
2143 
726 
1953 
-1228 
891 
2233 
744 
2041 
-1297 
910 
2284 
808 
2072 
-1263 
988
CIS Countries excl. Baltic States 
Production 
Imports Exports Net Imports Consumption  
3523 
0 
550 
-550 
2973  
3056 
30 
2701 
-2871 
534 
3637 
158 
3876 
-3718 
830 
3747 
65 
3557 
-3492 
831 
3767 
471 
3343 
-2872 
895 
3778 
393 
3210 
-2817 
961 
3807 
410 
3201 
-2791 
1016 
3832 
419 
3203 
-2784 
1048 
3723 
428 
3053 
-2525 
1098 
3601 
449 
2883 
-2434 
1166 
3657 
452 
2880 
-2429 
1227 
3767 
458 
2861 
-2403 
1363
China 
Production 
Imports 
Exports Net Imports Consumption  
865 
101 
65 35 
901  
1676 
432 
191 241 
2017 
2989 
1157 
209 948 
3394 
3425 
693 
409 284 
3845 
4308 
245 
517 
-272 
4037 
4755 
137 
576 
-440 
4315 
4981 
206 
610 
-404 
4577 
5206 
28 
644 
-616 
4590 
5266 
222 
658 
-435 
4831 
5392 
317 
680 
-364 
5029 
5579 
330 
711 
-381 
51985545 
866 
713 
153 
5698
Japan & Other Asia 
Production Imports 
Exports 
Net Imports Consumption  
673 
3679 
245 
3435 3815  
793 
4930 
534 
4396 4841 
856 
5250 
657 
4594 5130 
850 
4796 
591 
4205 4556 
873 
5074 
794 
4280 4725 
1056 5202 
889 
4313 4925 
1154 5371 
936 
4434 5122 
1158 5408 
915 
4493 5181 
1157 5344 
892 
4451 5372 
1162 5580 
899 
4681 5584 
1168 5770 
905 
4865 5756 
1312 6189 
934 
5255 6256  TN/MA/W/37/Add.1
 Page 7 1990 
 1995 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 
Middle East 
Production 
Imports Exports Net Imports 
Consumption  
446 118 287 
-169 
283  
820 
86 
580 
-494 
339 
1185 
102 889 
-788 
363 
1203 
106 904 
-798 
405 
1239 
100 941 
-842 
399 
1260 
104 946 
-842 
419 
1376 
108 
1052 
-944 
433 
1582 
155 
1258 
-1103 
481 
1689 
162 
1353 
-1191 
499 
1730 
170 
1382 
-1212 
519 
1872 
177 
1515 
-1338 
535 
1900 
195 
1512 
-1317 
584
Africa 
Production 
Imports Exports Net Imports Consumption  
598 
34 
406 
-372 
226  
628 
20 
349 
-329 
271 
1176 
34 
885 
-851 
325 
1353 
30 
1024 
-994 
320 
1386 
29 
1062 
-1032 
353 
1556 
35 
1198 
-1163 
393 
1822 
38 
1432 
-1395 
427 
1980 
39 
1584 
-1545 
436 
2003 
42 
1587 
-1545 
458 
2013 
45 
1576 
-1531 
482 
2023 
50 
1569 
-1520 
503 
2033 
56 
1533 
-1477 
556
Australasia  
Production 
Imports 
Exports Net Imports Consumption  
1492 
9 
1159 
-1150 
342  
1566 
18 
1202 
-1185 
382 
2091 
10 
1677 
-1667 
374 
2106 
13 
1778 
-1765 
362 
2157 
15 
1778 
-1765 
362 
2181 
16 
1812 
-1796 
385 
2209 
17 
1829 
-1813 
396 
2237 
17 
1857 
-1840 
397 
2269 
17 
1878 
-1861 
409 
2284 
17 
1882 
-1865 
419 
2348 
18 
1939 
-1922 
426 
2377 
19 
1935 
-1916 
450
World 
Production Imports 
Exports 
Net Imports Consumption  
19364 
8957 
8549 
408 
19463  
19681 12972 
12236 
736 
20709 
24636 16197 
15829 
368 
25200 
24553 15201 
16074 
-873 
23758 
26042 16458 
16401 
57 
25302 
27554 16456 
16683 
-227 
26484 
29034 16845 
17411 
-567 
27523 
29938 16667 
17991 
-1324 
27668 
27441 17491 
18101 
-610 
28580 
28298 18249 
18101 
147 
29521 
28892 18701 
18741 
-40 
30241 
31330 20704 
18770 
1935 
32590
    
 
     TN/MA/W/37/Add.1 
Page 8 
Annex II (continued) 
 
 
 
 2010 
 2011 
 2012 2013 2014 2015 2016 2017 2018 2019 2020 
Canada 
Production 
Imports Exports Net Imports Consumption  
3030 
306 
2402 
-2097 
934 
3045 
318 
2391 
-2093 
972 
3410 
322 
2749 
-2477 
983 
3631 
324 
2969 
-2645 
986 
3649 
325 
2982 
-2656 
993  
3711 
337 
3023 
-2686 
1025 
3778 
349 
3063 
-2714 
1064 
3797 
353 
3075 
-2722 
1074 
3815 
353 
3094 
-2741 
1074 
3971 
354 
3249 
-2895 
1076 
3991 
364 
3248 
-2884 
1107
USA + Mexico 
Production 
Imports 
Exports Net Imports Consumption  
3697 
4211 
574 
3636 7383 
3715 
4174 
583 
3592 7357 
3629 
4290 
583 
3707 7385 
3647 
4513 
600 
3913 7610 
3665 
4809 
620 
4189 7904  
3683 
4844 
631 
4213 7946 
3702 
4788 
641 
4147 7899 
3720 
4779 
652 
4127 7897 
3739 
5001 
672 
4329 8118 
3758 
5300 
695 
4605 8412 
3776 
5328 
709 
4619 8446
South & Central America 
Production Imports 
Exports 
Net Imports Consumption  
2929 
115 
1821 
-1706 
1248 
338 118 
2187 
-2069 
1274 
3584 
120 
2420 
-2299 
1310 
4065 
124 
2840 
-2715 
1375 
4085 
132 
2776 
-2644 
1467  
4283 
134 
2928 
-2704 
1515 
4445 
136 
3060 
-2924 
1548 
4467 
140 
3042 
-2902 
1592 
4634 
147 
3128 
-2981 
1681 
4700 
156 
3093 
-2938 
1790 
4723 
160 
3061 
-2900 
1852
European Union (15) 
Production Imports Exports 
Net Imports 
Consumption  
2433 6600 2114 
4486 
6552 
2445 6572 2124 
4448 
6534 
2457 6589 2135 
4454 
6556 
2470 6788 2145 
4643 
6737 
2482 7051 2156 
4895 
6974  
2495 7087 2167 
4920 
7015 
2507 7040 2177 
4862 
6983 
2520 7038 2188 
4850 
6990 
2535 7232 2199 
5033 
5178 
2545 7138 2211 
4928 
7052 
2558 7138 2222 
4916 
7057  TN/MA/W/37/Add.1
 Page 9 2010 
 2011 
 2012 2013 2014 2015 2016 2017 2018 2019 2020 
Other Europe – 10 New EU 
Members 
Production 
Imports Exports 
Net Imports 
Consumption   
 
332 
1096 
410 
686 
749 
 
334 
1116 
414 
702 
764 
 
336 
1138 
418 
720 
783 
 
337 
1188 
422 
767 
526 
 
339 
1249 
425 
824 
681  
 
341 
1282 
429 
853 
908 
 
342 
1304 
433 
871 
925 
 
344 
1333 
438 
895 
948 
 
345 
1392 
442 
950 
1000 
 
348 
1464 
445 
1019 
1066 
 
349 
1503 
449 
1054 
1099
Other Europe  
Production Imports Exports Net Imports 
Consumption  
2367 
787 
2106 
-1320 
1011 
2496 
797 
2237 
-1440 
1017 
2547 
812 
2287 
-1475 
1028 
2559 
851 
2290 
-1490 
1070 
2571 
901 
2291 
-1390 
1125  
2776 
863 
2431 
-1569 
1145 
2818 
878 
2477 
-1599 
1151 
2832 
896 
2490 
-1594 
1164 
2846 
943 
2495 
-1552 
1211 
2860 1003 2497 
-1494 
1272 
2874 1034 2508 
-1475 
1296
CIS Countries excl. Baltic States 
Production 
Imports Exports Net Imports Consumption  
4036 
475 
3053 
-2607 
1428 
4056 
491 
3063 
-2572 
1483 
4077 
509 
3037 
-2527 
1548 
4243 
542 
3126 
-2585 
1656 
4265 
561 
3056 
-2475 
1787  
4286 
605 
3015 
-2410 
1873 
4407 
624 
3086 
-2462 
1942 
4771 
647 
3390 
-2743 
2023 
4795 
687 
3316 
-2629 
2161 
4819 
736 
3222 
-2486 
2327 
4843 
767 
3167 
-2400 
2436
China 
Production 
Imports 
Exports Net Imports Consumption  
5782 
817 
751 
66 
5848 
6006 
691 
788 
-97 
5909 
6134 
667 
813 
-147 
5988 
6165 
905 
825 
80 
8245 
6223 
1210 
841 368 
6591  
6472 
1155 
884 271 
6744 
6528 
1149 
901 248 
6777 
6649 
1112 
926 185 
6834 
6682 
1346 
940 406 
7087 
6715 
1671 
954 716 
7431 
6786 
1746 
974 772 
7558
Japan & Other Asia 
Production Imports 
Exports 
Net Imports Consumption  
1480 6214 
968 
5246 6411 
1612 6246 
1030 
5216 6510 
1710 6327 
1072 
5255 6643 
1717 6671 
1080 
5591 6961 
1726 7101 
1088 
6013 7360  
1735 7303 
1096 
6207 7556 
1743 7413 
1105 
6309 7668 
2002 7442 
1235 
6206 7821 
2061 7836 
1293 
6543 8192 
2169 8331 
1401 
6930 8656 
2278 8574 
1514 
7061 8889 TN/MA/W/37/Add.1 
Page 10 
 2010 
 2011 
 2012 2013 2014 2015 2016 2017 2018 2019 2020 
Middle East 
Production 
Imports Exports Net Imports 
Consumption  
2069 
202 
1676 
-1474 
597 
2395 
206 
1997 
-1791 
605 
2756 
208 
2347 
-2139 
618 
2847 
219 
2420 
-2201 
648 
2861 
232 
2410 
-2178 
685  
2897 
240 
2435 
-2195 
703 
3661 
138 
3087 
-2949 
714 
3879 
141 
3292 
-3151 
729 
3898 
147 
3283 
-3136 
764 
3918 
155 
3267 
-3112 
808 
3937 
159 
3259 
-3110 
829
Africa 
Production 
Imports Exports Net Imports Consumption  
2109 
59 
1590 
-1531 
578 
2119 
62 
1586 
-1525 
595 
2130 
65 
1579 
-1515 
615 
2141 
70 
1557 
-1487 
654 
2151 
75 
1526 
-1451 
701  
2162 
79 
1512 
-1433 
729 
2173 
83 
1505 
-1423 
750 
2184 
87 
1495 
-1408 
776 
2195 
93 
1465 
-1372 
823 
2206 
101 
1425 
-1324 
882 
2217 
106 
1406 
-1300 
917
Australasia  
Production 
Imports 
Exports Net Imports Consumption  
2509 
19 
2064 
-2045 
464 
2771 
19 
2328 
-2309 
463 
2902 
19 
2456 
-2436 
465 
3114 
20 
2654 
-2634 
480 
3129 
21 
2649 
-2628 
502  
3145 
21 
2658 
-2636 
509 
3161 
21 
2672 
-2651 
510 
3417 
21 
2929 
-2908 
510 
3435 
22 
2929 
-2907 
527 
3452 
23 
2924 
-2902 
550 
3469 
23 
2936 
-2913 
556
World 
Production Imports 
Exports 
Net Imports Consumption  
33197 20901 
19560 
1342 
33201 
33494 20810 
20726 
82 
33483 
33948 21067 
21895 
-829 
33922 
35357 22214 
22928 
-713 
35248 
37115 23688 
22819 
869 
36970  
37115 23950 
23209 
741 
37667 
37937 23923 
24207 
-284 
37930 
38830 23986 
25153 
-1166 
38358 
39923 25198 
25255 
-57 
39807 
41443 26431 
25383 
1048 
41322 
42088 26903 
25484 
1440 
42042
    Source: James F. King: Primary aluminium Flows.  Spoutwell House, Spoutwell Lane, Cobridge, England.  
               October 2002. 
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