WORLD TRADE
ORGANIZATIONTN/MA/W/10/Add.2
18 March 2003
(03-1592)
Negotiating Group on Market Access Original:  English
MARKET ACCESS FOR NON-AGRICULTURAL PRODUCTS
Elaboration of India’s Proposal
Addendum
The following document, dated 14 March 2003, has been received from the Permanent
Mission of India.
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1. India had put forth its specific proposals on modalities. This was circulated to Members
vide Document No. TN/MA/W/10/Add.1. Further to the discussions held at the NGMA meeting on
19-21 February, 2003 India wishes to elaborate its proposals as per details given below -
2. India’s tariff reduction proposal inter alia  requires all Members to undertake the
following steps in reducing their tariffs in respect of tariff lines already bound:
(i) A simple percentage cut on bound tariffs of each Member, with a higher percentage
to be set for developed countries than the percentage set for developing countries.
Such a reduction method  shall fully take into account the special needs and interests
of developing and least developed country members and will be in conformity with
the mandate requiring “less than full reciprocity in reduction commitments” by
developing countries.
(ii) Members shall not impose tariff on any product in excess of three times their average
tariff. The average for this purpose shall be calculated after effecting the tariff
reduction as per (i) above.
3. The proposal for already bound tariff lines may thus be mathematically represented as
below:
Step 1  - O F TAYT *)1001(1 −=
Step 2  - T F  = T F1  o r 3*T A   whichever is less
Where
A = less than full reciprocity’ parameter;
A = 1 for developed countries and
A = 0.67 for developing countries
Y = Reduction percentage (to be negotiated)
OT = Present bound tariff on an individual tariff line
1FT = Reduced tariff after Step 1 on the individual tariff line
TA = Simple average tariff after Step 1
FT = Final bound tariff on the individual tariff lineTN/MA/W/10/Add.2
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4. As an S&D measure developing countries will have flexibility to:
a) Decide on the actual bindings on some tariff lines while still maintaining the percentage
reduction on an average basis as per 2(i) above.
b) Developing country members shall also have flexibility in respect of 2(ii) above.
c) Further, the flexibility to decide individual tariff bindings proposed in (a) above shall be
on at least 15% of the bound tariff lines of the concerned developing country Members.
This flexibility is on the understanding that the overall percentage reduction will be
achieved.
5. The resulting bound tariffs on some hypothetical tariff levels after the use of the above
formula with some indicative tariff reduction rates are illustrated in Annex-A.
6. Regarding hitherto unbound tariff lines, developing countries may bind them at the highest of
the bound rates in a Member’s tariff schedule or at the applied rate on a cut off date (base date)
whichever is higher. Further, at least up to 10% of the presently unbound tariff lines still consideredsensitive or strategically important for a developing country could be left unbound, but no sector is to
be kept completely unbound. The binding of the unbound tariff lines is in itself to be considered a
concession in terms of Article XXVIII bis:2(a) .TN/MA/W/10/Add.2
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ANNEX A
Tariff Reduction Obtained by 45% - 30% Ratio
Tariff Reduction – Step 1 Final Tariff – Step 2∂
Developed Developing Members with Bound TariffInitial
rate of
tariffs 45% 30%Average*
3%Average*
5%Average*
10%Average*
20%
0.0 0.0 0.0 0.0 0.0 0.0 0.0
2.5 1.4 1.8 1.4 1.4 1.8 1.8
5.0 2.8 3.5 2.8 2.8 3.5 3.5
7.5 4.1 5.3 4.1 4.1 5.3 5.3
10.0 5.5 7.0 5.5 5.5 7.0 7.0
12.5 6.9 8.8 6.9 6.9 8.8 8.8
15.0 8.3 10.5 8.3 8.3 10.5 10.5
17.5 9.6 12.3 9.0 9.6 12.3 12.3
20.0 11.0 14.0 9.0 11.0 14.0 14.0
22.5 12.4 15.8 9.0 12.4 15.8 15.8
25.0 13.8 17.5 9.0 13.8 17.5 17.5
27.5 15.1 19.3 9.0 15.0 19.3 19.3
30.0 16.5 21.0 9.0 15.0 21.0 21.0
32.5 17.9 22.8 9.0 15.0 22.8 22.8
35.0 19.3 24.5 9.0 15.0 24.5 24.5
37.5 20.6 26.3 9.0 15.0 26.3 26.3
40.0 22.0 28.0 9.0 15.0 28.0 28.0
42.5 23.4 29.8 9.0 15.0 29.8 29.8
45.0 24.8 31.5 9.0 15.0 30.0 31.5
47.5 26.1 33.3 9.0 15.0 30.0 33.3
50.0 27.5 35.0 9.0 15.0 30.0 35.0
52.5 28.9 36.8 9.0 15.0 30.0 36.8
55.0 30.3 38.5 9.0 15.0 30.0 38.5
57.5 31.6 40.3 9.0 15.0 30.0 40.3
60.0 33.0 42.0 9.0 15.0 30.0 42.0
62.5 34.4 43.8 9.0 15.0 30.0 43.8
65.0 35.8 45.5 9.0 15.0 30.0 45.5
67.5 37.1 47.3 9.0 15.0 30.0 47.3
70.0 38.5 49.0 9.0 15.0 30.0 49.0
72.5 39.9 50.8 9.0 15.0 30.0 50.8
75.0 41.3 52.5 9.0 15.0 30.0 52.5
77.5 42.6 54.3 9.0 15.0 30.0 54.3
80.0 44.0 56.0 9.0 15.0 30.0 56.0
82.5 45.4 57.8 9.0 15.0 30.0 57.8
85.0 46.8 59.5 9.0 15.0 30.0 59.5
87.5 48.1 61.3 9.0 15.0 30.0 60.0
90.0 49.5 63.0 9.0 15.0 30.0 60.0
92.5 50.9 64.8 9.0 15.0 30.0 60.0
95.0 52.3 66.5 9.0 15.0 30.0 60.0
97.5 53.6 68.3 9.0 15.0 30.0 60.0
100.0 55.0 70.0 9.0 15.0 30.0 60.0
                                                     
∂ In Step 2 the illustrated figures with average tariff of 3% & 5% are for developed countries, while the
illustrated figures with average tariff of 10% & 20% are for developing countries.
* Average after application of Step 1.TN/MA/W/10/Add.2
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Tariff Reduction Obtained by 50% - 331/3% Ratio
Tariff Reduction – Step 1 Final Tariff – Step 2∂
Developed Developing Members with Bound TariffInitial
rate of
tariffs50% 331/3%Average*
3%Average*
5%Average*
10%Average*
20%
0.0 0.0 0.0 0.0 0.0 0.0 0.0
2.5 1.3 1.7 1.3 1.3 1.7 1.7
5.0 2.5 3.4 2.5 2.5 3.4 3.4
7.5 3.8 5.0 3.8 3.8 5.0 5.0
10.0 5.0 6.7 5.0 5.0 6.7 6.7
12.5 6.3 8.4 6.3 6.3 8.4 8.4
15.0 7.5 10.1 7.5 7.5 10.1 10.1
17.5 8.8 11.7 8.8 8.8 11.7 11.7
20.0 10.0 13.4 9.0 10.0 13.4 13.4
22.5 11.3 15.1 9.0 11.3 15.1 15.1
25.0 12.5 16.8 9.0 12.5 16.8 16.8
27.5 13.8 18.4 9.0 13.8 18.4 18.4
30.0 15.0 20.1 9.0 15.0 20.1 20.1
32.5 16.3 21.8 9.0 15.0 21.8 21.8
35.0 17.5 23.5 9.0 15.0 23.5 23.5
37.5 18.8 25.1 9.0 15.0 25.1 25.1
40.0 20.0 26.8 9.0 15.0 26.8 26.8
42.5 21.3 28.5 9.0 15.0 28.5 28.5
45.0 22.5 30.2 9.0 15.0 30.0 30.2
47.5 23.8 31.8 9.0 15.0 30.0 31.8
50.0 25.0 33.5 9.0 15.0 30.0 33.5
52.5 26.3 35.2 9.0 15.0 30.0 35.2
55.0 27.5 36.9 9.0 15.0 30.0 36.9
57.5 28.8 38.5 9.0 15.0 30.0 38.5
60.0 30.0 40.2 9.0 15.0 30.0 40.2
62.5 31.3 41.9 9.0 15.0 30.0 41.9
65.0 32.5 43.6 9.0 15.0 30.0 43.6
67.5 33.8 45.2 9.0 15.0 30.0 45.2
70.0 35.0 46.9 9.0 15.0 30.0 46.9
72.5 36.3 48.6 9.0 15.0 30.0 48.6
75.0 37.5 50.3 9.0 15.0 30.0 50.3
77.5 38.8 51.9 9.0 15.0 30.0 51.9
80.0 40.0 53.6 9.0 15.0 30.0 53.6
82.5 41.3 55.3 9.0 15.0 30.0 55.3
85.0 42.5 57.0 9.0 15.0 30.0 57.0
87.5 43.8 58.6 9.0 15.0 30.0 58.6
90.0 45.0 60.3 9.0 15.0 30.0 60.0
92.5 46.3 62.0 9.0 15.0 30.0 60.0
95.0 47.5 63.7 9.0 15.0 30.0 60.0
                                                     
∂ In Step 2 the illustrated figures with average tariff of 3% & 5% are for developed countries, while the
illustrated figures with average tariff of 10% & 20% are for developing countries.
* Average after application of Step 1TN/MA/W/10/Add.2
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Tariff Reduction – Step 1 Final Tariff – Step 2∂
Developed Developing Members with Bound TariffInitial
rate of
tariffs50% 331/3%Average*
3%Average*
5%Average*
10%Average*
20%
97.5 48.8 65.3 9.0 15.0 30.0 60.0
100.0 50.0 67.0 9.0 15.0 30.0 60.0
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