USTR Seeks Comments on WTO Decision to Provide Duty-Free Quota-Free Market Access for All Least Developed Countries
The Office of the U.S. Trade Representative (USTR) has issued a notice stating that the Trade Policy Staff Committee (TPSC) is requesting written comments no later than March 15, 2007 on considerations relating to the decision adopted at the Sixth Ministerial Conference of the World Trade Organization (WTO) in December 2005 on duty-free, quota-free (DFQF) market access for the least developed countries (LDCs).
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According to the USTR, the TPSC is seeking comments from the public on the full range of issues that may affect implementation of the decision.
WTO Members Agreed to Provide DFQF Market Access for All LDCs by 2008 or Sooner
At the Sixth Ministerial, WTO members agreed to provide duty-free and quota-free market access on a lasting basis for all products originating from all LDCs by 2008, or no later than the start of the implementation period of the Doha Development Agenda (DDA) in a manner that ensures stability, security, and predictability.
It was agreed that WTO Members would implement the DFQF initiative coincident with the implementation of the results of the negotiations under DDA. On a voluntary basis, WTO Members may also implement sooner. (See ITT's Online Archives or 12/20/05 news, 05122005, for BP summary of the December 2005 WTO decision on DFQF market access for LDCs.)
U.S. Says Successful Completion of DDA is a Prerequisite for Implementation of DFQF
On May 15, 2006, the U.S. submitted a document to the WTO Committee on Trade and Development entitled "Duty-Free, Quota-Free Market Access for the Least-Developed Countries: Communication from the United States." The document states, among other things, that the U.S. is fully committed to implementing the decision on DFQF to the LDCs, and that successful completion of the DDA is a prerequisite for implementation by the U.S.
The document also indicates that the U.S. will carefully evaluate its impact on and relationship to current tariff preference programs, such as the African Growth and Opportunity Act (AGOA) and the Caribbean Basin Initiative (CBI).
TPSC Seeks Comments on DFQF Implementation to Inform Planning Process
The TPSC states that it recognizes that some factors related to implementation of DFQF can only be determined once certain results are obtained in the overall DDA negotiations. At this time, however, as part of consultative process, the TPSC is seeking comments from the public addressing the range of issues that may affect implementation in order to inform the planning process.
The TPSC states that it may seek further public comments on specific issues related to implementation of DFQF at a later time.
- written comments should be submitted electronically no later than March 15, 2007
| Gloria Blue (procedural questions) | (202) 395-3475 |
| Office of WTO and Multilateral Affairs (general questions) | (202) 395-6843 |
USTR notice (FR Pub 01/18/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-198.pdf
BP Note
According to the USTR, the U.S. currently provides preferential treatment to products from LDCs through various preferential programs, such as the AGOA, the CBI, the Generalized System of Preferences (GSP), and "GSP-plus" for LDCs.
The USTR has previously stated that LDCs overall are already eligible for duty-free access to the U.S. on 83% of the 10,265 tariff lines in the U.S. tariff schedule. LDCs covered by AGOA and CBI are eligible for duty-free access on up to 91% of the tariff lines in the U.S. tariff schedule. (USTR statement, dated 12/19/05, available at http://www.ustr.gov/Document_Library/Transcripts/2005/December/Remarks_by_USTR_Portman_at_the_Closing_Press_Briefing.html and fact sheet, dated 12/18/06, available at http://www.ustr.gov/Document_Library/Fact_Sheets/2005/Update_from_Hong_Kong_Duty-Free_Quota-Free.html)