The World Trade Organization (WTO) members agreed on the framework for negotiations of modalities for NAMA in the Doha Round on August 1, 2004 (the July Package). The members recognized that “additional negotiations are required to reach agreement on the formula; the issues concerning the treatment of unbound tariffs; the flexibilities for developing-country participants; and the issue of participation in the sectoral tariff component and the preferences”. However, the WTO members made clear commitments on:
- The kind of formula: They opted for a non-linear formula, meaning that the tariff cuts will be larger on high tariffs than low tariffs. It will thus harmonize the tariffs structure of each WTO member. The text implicitly refers to the formula proposed by Ambassador Girard in the Chair’s Draft Elements of Modalities.
- The Special and Differential Treatment: All the LDCs, as well as countries with consolidated tariffs under 35%, will be exempted from tariffs cuts commitments. Hence, only eight African countries will be concerned by the NAMA clauses. Developing countries not exempted of all commitments will benefit from extra flexibilities, with longer implementation period, and exemptions on 15% of their tariff lines. The possibility of an implicit special and differential treatment (S&D), meaning that developing countries could apply a more flexible Girard formula, is still open.