WORLD TRADE ORGANIZATION

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1 WORLD TRADE ORGANIZATION 21 March 2002 ( ) Committee on Agriculture Special Session TARIFF AND OTHER QUOTAS Background Paper by the Secretariat 1. At the first Special Session of the Committee on Agriculture on March 2000, it was agreed that the Secretariat would provide, inter alia, a background paper on tariff quotas and imports within tariff quotas based on notifications in this area (G/AG/NG/1, paragraph 7(a) refers). 1 This paper revises and further updates the information contained in G/AG/NG/S/7 dated 23 May 2000 which was compiled from Members' Schedules and notifications. The paper takes into account the notifications and comments by Members received by the Secretariat up to 8 March The paper uses as the point of reference tariff quotas set out in Part I, Section I-B of Members' Schedules (or, in the case of Brazil and the United States, Part I, Section I-A). It also takes into account modifications via technical rectifications, Article XXVIII or Article XXIV:6 negotiations. A listing of all scheduled tariff quotas is provided in the Attachment to this paper. 3. The main body of this paper is divided into three parts. Part A provides details on tariff quota commitments. An overview of tariff quota fill is presented in Part B. Part C contains a detailed presentation of tariff quota fill for each of the implementation years from 1995 to Annex A lists the product categories used by the Secretariat in compiling the data. It also provides Country Notes giving specific technical details. Annex B contains a set of detailed tables on tariff quota fill by Member and by product category. Finally, the Attachment presents three listings of the tariff quotas compiled by Member. The first listing (Section 1 of the Attachment) gives the basic data for each tariff quota commitment, i.e. product description, nomenclature, scheduled initial and final quantities and units of measurements. The second listing (Section 2) provides fill rates for each tariff quota from 1995 to 2001 where data are available. The third listing (Section 3) provides a compilation of notified quantities and notified imports for the same period. In all three listings, reference numbers are provided both with respect to all tariff quotas (numbered 1 to 1425) and with respect to the tariff quotas of individual Members sequentially numbered according to their order of appearance in the relevant Schedules. 4. In the main body of the paper, the tariff quotas are summarized by way of tables showing their total number by product category and by Member. The summary also shows, on the basis of Schedules of Members and Table MA:1 notifications, the number of tariff quotas allocated on a country-specific basis for the implementation years. 2 There are four tariff quotas in Members' Schedules with zero shown for both the initial and final quantities; these are not included. On the basis of the information provided in Table MA:2 notifications, tariff quota fill rates are calculated for the implementation years: (i) by product category; (ii) by Member; (iii) on the basis of 1 For the purposes of this paper, including in the headings of the tables, "tariff quotas" should be taken as meaning "tariff and other quotas". 2 The term "implementation year" is used as short-hand for the relevant calendar, financial, or marketing year (G/AG/W/2/Rev.4 refers).

2 Page 2 whether the tariff quota is to expand over the implementation period; and (iv) by global versus country-specific tariff quotas. 5. Throughout this paper, "n.a." has been used to signify "not available", i.e. (i) no notification has been received by the Secretariat by the cut-off date, or (ii) imports under generally-applied in-quota rates were not reported, or (iii) the data relating to the tariff quota was aggregated with another tariff quota (see Country Notes) or (iv) the country concerned was not a Member in the relevant period. "-" has been used to signify "zero". Percentages may not add up due to rounding.

3 Page 3 PART A - TARIFF QUOTA COMMITMENTS 6. As of 8 March 2002, 43 Members have tariff quota commitments shown in their Schedules with a total of 1425 individual tariff quota commitments shown. These tariff quotas originate from a number of sources, including the Uruguay Round's "tariffication" methodology (current or minimum access), commitments in place prior to the conclusion of the Uruguay Round, and accession negotiations. Autonomous tariff quotas which Members may use as part of their import policy are not taken into account in the present paper. 7. Out of the total of 1425 tariff quotas, 597 are scheduled to increase over the relevant implementation period for the Members concerned, 823 are scheduled to remain unchanged and five are to decrease in quantity. The five cases for which the decreases are shown in the basic data table relate to the phasing out of three tariff quotas in Korea and two Swiss tariff quotas affected by technical rectifications (which came into effect after the first year of implementation). 8. Where tariff quotas are to increase over the implementation period the phasing of increases has been treated differently by different Members. Some Members undertook the first step of the increase in 1995 while other Members considered the "initial quantity" to be the relevant quantity for the 1995 implementation year. Some of those Members that did not increase the tariff quota quantity in the 1995 implementation year increased the quantity by one-fifth of the total increase in the second year of implementation (one-ninth in the case of developing country Members), while others increased tariff quota quantities by one-sixth (one-tenth). 9. In a number of other cases, the quantity notified as the tariff quota volume in Members' Table MA:2 notifications differs from the relevant quantity shown in Members' Schedules. Possible reasons for the differences between Schedules and Table MA:2 notifications are referred to in the Attachment. 10. Some Members notified all imports that occurred under tariff quota conditions with the result that the percentage unadjusted fill rate calculation can exceed 100 per cent. Other Members only notified imports up to the scheduled quantity (i.e. a maximum 100 per cent fill) even if in reality imports were above scheduled quantities. In order to put the calculation of tariff quota fill rates on an equal footing between Members, the Secretariat has adjusted for cases where notified imports are greater than scheduled tariff quota quantities by setting a maximum of 100 per cent tariff quota fill in Section 2 of the Attachment. So that Members and product groups are assessed in a consistent manner, it is this measure which is used throughout the rest of this paper. In the following, this measure is simply referred to as the "fill rate" or "tariff quota fill". Overview of tariff quota commitments 11. For the purposes of this paper, the Secretariat has classified tariff quotas by means of broad product categories. Table 1 below lists the product categories and the number of tariff quotas in each category (for all Members combined). Annex A provides a more detailed description of these product categories. Fruit and vegetables are in the lead (370 tariff quotas), followed by meat products (258) and cereals (226). Tobacco (13) ranks last among the twelve product categories.

4 Page 4 Table 1: Tariff quotas by product categories Code Product category Number of tariff quotas CE Cereals 226 OI Oilseeds products 129 SG Sugar and sugar products 59 DA Dairy products 183 ME Meat products 258 EG Eggs and egg products 21 BV Beverages 35 FV Fruit and vegetables 370 TB Tobacco 13 FI Agricultural fibres 20 CO Coffee, tea, spices and processed agricultural products 58 OA Other agricultural products 53 ALL Total all products Table 2 provides a breakdown of the total number of tariff quotas by Member. As evident from this table, the number of tariff quotas by Member ranges between 1 (Chile) and 232 (Norway). In addition, Table B.1 of Annex B presents a matrix of Members' tariff quotas by product category.

5 Page 5 Table 2: Number of tariff quotas by Member Member Number of tariff quotas Member Number of tariff quotas Australia 2 Korea f 67 Barbados 36 Latvia a 4 Brazil 2 Lithuania a 4 Bulgaria a 73 Malaysia 19 Canada 21 Mexico 11 Chile b 1 Morocco 16 China a 10 New Zealand 3 Chinese Taipei a 22 Nicaragua 9 Colombia 67 Norway 232 Costa Rica 27 Panama a 19 Croatia a 9 Philippines 14 Czech Republic 24 Poland 109 Dominican Republic c 8 Romania 12 Ecuador a 14 Slovak Republic 24 El Salvador 11 Slovenia 20 EC-15 d 87 South Africa 53 Guatemala 22 Switzerland 28 Hungary e 70 Thailand 23 Iceland 90 Tunisia 13 Indonesia 2 United States 54 Israel 12 Venezuela 61 Japan 20 All Members (43) 1425 Notes a b c d e f Dates of accession: Bulgaria, 1 December 1996; China, 11 December 2001; Chinese Taipei, 1 January 2002; Croatia, 30 November 2000; Ecuador, 21 January 1996; Latvia, 10 February 1999; Lithuania, 31 May 2001; Panama, 6 September The technical rectification set out in G/MA/TAR/RS/82 became effective on 30 January 2002 (WT/LET/415 refers). The technical rectification set out in G/MA/TAR/RS/54 became effective on 3 February 1999 (WT/LET/293 refers). The information refers to the draft Schedule for the EC-15 as this is the basis on which Table MA:2 notifications were submitted to the Committee on Agriculture. This includes the two additional tariff quotas which were notified on 10 November 1998 (G/AG/N/EEC/14 and G/AG/R/18 refer). As of 1 July 2000, one tariff quota was repealed (G/AG/N/EEC/34 refers). As of 2000, the bound MFN tariffs applying to 11 tariff quotas became lower than the respectively bound in-quota tariffs. These tariff quotas are not in place anymore. The Republic of Korea notified the liberalization of 4 tariff quotas as from 1 July 1997 as was specified in its Schedule (G/AG/N/KOR/11 and G/AG/N/KOR/21 refer). A tariff quota was opened for white silk in 1998 and in-quota imports were reported in G/AG/N/KOR/27.

6 Page A number of Schedules show, in the "other terms and conditions" column relating to tariff quotas, specific supplying country allocations. In addition, the Table MA:1 notifications themselves indicate specific country allocations in a number of other cases. 3 The following table indicates the number of tariff quotas in the Schedule of each Member that are totally or partially allocated to specific supplying countries, and the number of additional tariff quotas where such allocations are indicated in Table MA:1 notifications in the relevant year. Where no Table MA:1 notification of changes to tariff quota administration methods was made, the previously-notified administration method was carried over to the following year. It should be noted that in some cases it is not completely clear from notifications whether a particular tariff quota is allocated on a country-specific basis. The following table can thus only be considered to be indicative. 3 Furthermore, there were a number of general indications in Schedules that tariff quotas would be allocated to specific countries although none was indicated. These cases have not been taken into account in the present note.

7 Page 7 Table 3: Country-specific tariff quotas by Member, Member Countryspecific tariff quotas according to Schedules Additional country-specific tariff quotas according to MA:1 notifications Australia Barbados Brazil Bulgaria 4 n.a. n.a Canada Chile 1 n.a. n.a. n.a. n.a. n.a. n.a. n.a. China - n.a. n.a. n.a. n.a. n.a. n.a. n.a. Chinese Taipei - n.a. n.a. n.a. n.a. n.a. n.a. n.a. Colombia Costa Rica Croatia - n.a. n.a. n.a. n.a. n.a. n.a. n.a. Czech Rep Dominican Rep. 1 n.a. n.a. n.a. n.a Ecuador - n.a El Salvador EC Guatemala Hungary Iceland Indonesia Israel Japan Korea Latvia - n.a. n.a. n.a. n.a. n.a. n.a. n.a. Lithuania - n.a. n.a. n.a. n.a. n.a. n.a. n.a. Malaysia Mexico Morocco New Zealand Nicaragua Norway Panama 1 n.a. n.a. n.a Philippines Poland Romania Slovak Republic Slovenia South Africa Switzerland Thailand Tunisia United States Venezuela All Members (43)

8 Page 8 PART B - OVERVIEW OF TARIFF QUOTA FILL 14. For the purposes of calculating fill rates by product category and by Member, simple averages of fill rates have been used. It should be noted that this measure is only a very broad indicator of fill rates. The simple average does not differentiate in any way between tariff quotas on the basis of size or economic importance. For example, a tariff quota of 200 kg. gets the same weighting as another with a quantity of 6,000,000 tonnes. Likewise, low valued products are not differentiated from high valued products. 15. As already noted, for reasons of consistency the fill rates are calculated up to 100 per cent, i.e. they do not take into consideration any "over-fill" of a tariff quota. The fill rate represents imports as a percentage of the volume of the tariff quota as notified in Table MA:2 notifications rather than the scheduled quantity, in cases where there is a difference between the two Table 4 describes the trend over the period with respect to tariff quota fill. However, these fill rates are not directly comparable. First, the total number of applicable tariff quotas varies on a yearly basis as can be seen from the last column. This is principally due to (i) the accession of new Members to the WTO over this period 5, (ii) the opening of additional tariff quotas as a result of negotiations, and (iii) the phasing out of certain tariff quotas. Secondly, the number of tariff quotas included in, or excluded from, the calculation of fill rates also varies, as shown in the third and fourth columns, because no Table MA:2 notifications were received or because of certain aggregation practices used by some Members. The Country Notes contained in Annex A as well as the Attachment cover these technical aspects in greater detail. Table 4: Simple average fill rates, Implementation year Simple average fill Number of tariff quotas rate (%) included excluded total The spread of tariff quota fill in percentage terms over five distinct ranges of fill rates is described in Table 5 for the implementation period Given the limited number of notifications received for the 2001 implementation year, that year is not covered. For all the other 4 For a certain number of scheduled tariff quotas, the information notified by Poland covers specific tariff quota sub-items only, both in terms of notified quantities and notified imports. To ensure consistent treatment among Members, these partial data are not included in the analysis (see Country Notes, Poland). 5 In these cases, the relevant tariff quotas have been included as "applicable tariff quotas" starting with the year specified in the relevant Schedule, irrespective of the precise implementation date specified within this year and of whether the newly-acceded Member has submitted a Table MA:1 notification. This procedure is without prejudice to the legal status of the tariff quotas and the related obligations of the Members concerned, the only reason for this procedure being to use a systematic approach for purposes of this paper.

9 Page 9 implementation years, about half of the tariff quotas for which notified data are available fall in the upper range of fill, i.e., per cent. Table 5: Distribution of fill rates, % 20-40% 40-60% 60-80% % All Per cent of the number of tariff quotas included Tables 6 compares the fill rates of (i) those tariff quotas which are to expand over the implementation period and (ii) those which remain constant or are to decrease. Supplementing the information provided in paragraph 13, Table 7 compares the fill rates of global versus countryspecific tariff quotas. Table 6: Simple average fill rates Constant vs. expanding tariff quotas, Expanding tariff quotas Constant/decreasing tariff quotas Fill rate (%) No of TQs included Fill rate (%) No of TQs included Table 7: Simple average fill rates Global vs. country-specific tariff quotas, (per cent) Global Country-specific Scheduled MA:1 notifications

10 Page 10 PART C - TARIFF QUOTA FILL, Tariff quota fill in The notification procedures adopted by the Committee on Agriculture require Members to notify imports under tariff quotas annually. With respect to the tariff quotas covered in this paper for the 1995 implementation year, 30 out of the 33 Members concerned have notified imports under tariff quotas (although not necessarily for all tariff quotas). The number of applicable tariff quotas differs from the overall total (1425) mainly because seven countries were not Members during Furthermore, as reflected in Table 2, a number of tariff quotas became effective during the period under review. It should also be noted that some tariff quotas had zero initial levels for the 1995 implementation year, increasing to positive values over the implementation period. While one Member implemented the first increase from zero in the 1995 implementation year (and consequently submitted a Table MA:2 notification for those tariff quotas), others did not. 6 In total, Table MA:2 notifications received cover 1028 out of 1259 applicable tariff quotas or 82 per cent. 20. Overall, the simple average fill rate for 1995 equals 66 per cent for the notified tariff quotas. With respect to tariff quota fill rates by product category, Table 8 gives simple average fill rates along with the number of tariff quotas included in the analysis and those excluded due to a number of reasons, including those listed in paragraph 16 above. Table B.2 of Annex B presents more details by showing tariff quota fill rates by product category for five distinct percentage fill ranges (0-20 per cent, etc.). Table 8: Tariff quotas - simple average fill rates by product category, 1995 Product category Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Cereals Oilseeds products Sugar and sugar products Dairy products Meat products Eggs and egg products Beverages Fruit and vegetables Tobacco Agricultural fibres Coffee, tea, spices and processed agricultural products from mixed ingredients Other agricultural products Total all products Simple average fill rates by Member are shown in Table 9. The spread of tariff quota fill across distinct percentage ranges can be taken from Table B.3 of Annex B. 6 The notes describing the basic information presented in the Attachment, as well as the Country Notes contained in Annex A, should also be kept in mind, e.g. with respect to aggregated tariff quotas.

11 Page 11 Table 9: Tariff quotas - simple average fill rates by Member, 1995 Member Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Australia Barbados Brazil Canada Colombia Costa Rica Czech Republic El Salvador n.a EC Guatemala Hungary Iceland Indonesia Israel Japan Korea Malaysia Mexico Morocco New Zealand Nicaragua n.a. - 9 Norway Philippines Poland Romania Slovak Republic Slovenia South Africa Switzerland Thailand Tunisia n.a United States Venezuela All Members (30 out of 33) The information contained in Tables 8 and 9 is shown in chart form on the following page. A chart showing the number of tariff quotas for all notifying Members combined by five distinct fill rates (0-20 per cent, etc.) is also included. This chart shows that in 1995, 55 per cent of the tariff quotas for which imports have been notified registered fill rates ranging between 80 and 100 per cent. On the other hand, almost one fourth of these tariff quotas were filled by less than 20 per cent.

12 Page 12 Simple average fill rates by product category, Average = 66% CE OI SG DA ME EG BV FV TB FI CO OA Simple average fill rates by Member, Table B.4 of Annex B contains a matrix showing simple average fill rates by Member and product category. In considering this table, two points should be kept in mind. First, Table MA:2 notifications have not been received for all tariff quotas. Second, Average as noted = 66% in paragraph 14 above, 80 there is an inherent weakness in simple average calculations. Nevertheless, when read in conjunction with the number of tariff quotas for each Member in each product category (Table B.1 of Annex B), a general picture can be obtained AUS BRB BRA CAN COL CRI CZE EC GTM HUN ISL IDN ISR JPN KOR MYS MEX MAR NZL NOR PHI POL ROM SVK SVN ZAF CHE THA USA VEN 600 Distribution of fill rates, number of tariff quotas % 20-40% 40-60% 60-80% % fill rates

13 Page Table B.4 of Annex B contains a matrix showing simple average fill rates by Member and product category. In considering this table, two points should be kept in mind. First, Table MA:2 notifications have not been received for all tariff quotas. Second, as noted in paragraph 14 above, there is an inherent weakness in simple average calculations. Nevertheless, when read in conjunction with the number of tariff quotas for each Member in each product category (Table B.1 of Annex B), a general picture can be obtained. 24. Of the 1028 tariff quotas for which import data are available for the 1995 implementation year, 378 are to increase over the relevant implementation period for the Member concerned. The simple average fill rate for these tariff quotas equals 55 per cent. The 650 remaining tariff quotas (i.e. the 645 which are unchanged as well as the five tariff quotas which are decreasing over the implementation period) have a simple average fill rate of 73 per cent. 25. As for country-specificity, the tariff quotas which, according to the Schedules and the 1995 Table MA:1 notifications are apparently global in nature have a simple average fill rate of 67 per cent. The tariff quotas with country-specific allocations in Schedules have a simple average fill rate of 64 per cent. The additional tariff quotas allocated to supplying countries as identified from the Table MA:1 notifications have a simple average fill rate of 65 per cent. Tariff quota fill in Tables 10 and 11 present the analysis of fill rates by product category and by Member for the 1996 implementation year. The number of applicable tariff quotas under consideration is different because of the accession of Ecuador in January Notifications have been received for 1081 out of 1273 applicable tariff quotas, i.e. 85 per cent. Thirty-two out of the 34 Members concerned have notified imports for at least some of their tariff quotas. 27. The simple average fill rate across all product categories and all Members is 63 per cent. With respect to product categories, the fill rates range from 40 per cent for agricultural fibres to 79 per cent for tobacco. Across Members, the corresponding figures are 0 per cent (Ecuador) and 100 per cent for those Members which have notified imports for all their tariff quotas (Brazil, Indonesia). Table 10: Tariff quotas - simple average fill rates by product category, 1996 Product category Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Cereals Oilseeds products Sugar and sugar products Dairy products Meat products Eggs and egg products Beverages Fruit and vegetables Tobacco Agricultural fibres Coffee, tea, spices and processed agricultural products from mixed ingredients Other agricultural products Total all products

14 Page 14 Table 11: Tariff quotas - simple average fill rates by Member, 1996 Member Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Australia Barbados Brazil Canada Colombia Costa Rica Czech Republic Ecuador El Salvador n.a EC Guatemala Hungary Iceland Indonesia Israel Japan Korea Malaysia Mexico Morocco New Zealand Nicaragua n.a. - 9 Norway Philippines Poland Romania Slovak Republic Slovenia South Africa Switzerland Thailand Tunisia United States Venezuela All Members (32 out of 34) As with the 1995 implementation year, the following page contains charts showing the information from Tables 10 and 11 above. Tables B.5-7 of Annex B provide more detailed information including with respect to the distribution of tariff quota fill rates. 29. Of the 1081 tariff quotas for which Table MA:2 notifications are available for the 1996 implementation year, 401 are tariff quotas which are to increase over the relevant implementation

15 Page 15 period for the Member concerned. The simple average fill rate for these tariff quotas equals 54 per cent. The remaining tariff quotas (i.e. those remaining unchanged or decreasing over the implementation period) have a simple average fill rate of 68 per cent. 30. With respect to the country-specificity of tariff quotas in the 1996 implementation year, the tariff quotas which are apparently global in nature (1000) have a simple average fill rate of 63 per cent. The tariff quotas with country-specific allocations in Schedules (57) have a simple average fill rate of 62 per cent, while the additional tariff quotas allocated to supplying countries according to 1995 and 1996 Table MA:1 notifications (24) have a simple average fill rate of 76 per cent.

16 Page 16 Simple average fill rates by product category, Average = 63% CE OI SG DA ME EG BV FV TB FI CO OA Simple average fill rates by Member, Average = 63% Distribution of fill rates, number of tariff quotas % 20-40% 40-60% 60-80% % fill rates

17 Page 17 Tariff quota fill in In 1997, Bulgaria and Panama acceded to the WTO. In addition, the European Communities opened two new tariff quotas (rum and taffia, and grape juice), as reflected in Table 2. This brought the total number of applicable tariff quotas to Thirty-three out of the 36 Members concerned have notified imports covering 1166 tariff quotas, i.e. 85 per cent of the total number of applicable tariff quotas. Tables 12 and 13 below provide information on the fill rates by product category and by Member. More detailed information is provided in Tables B.8-10 of Annex B, including with respect to the distribution of tariff quota fill rates. 32. Of the 1166 tariff quotas for which import data are available for the 1997 implementation year, 416 are tariff quotas which are to increase over the relevant implementation period for the Members concerned. The simple average fill rate for these tariff quotas equals 53 per cent. The remaining tariff quotas (i.e. those remaining unchanged or decreasing over the implementation period) have a simple average fill rate of 66 per cent. 33. With respect to the country-specificity of tariff quotas in the 1997 implementation year, the tariff quotas which are apparently global in nature (1080) have a simple average fill rate of 61 per cent. The tariff quotas with country-specific allocations in Schedules (62) have a simple average fill rate of 63 per cent, while 24 other tariff quotas allocated to supplying countries have a simple average fill rate of 79 per cent. Table 12: Tariff quotas - simple average fill rates by product category, 1997 Product category Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Cereals Oilseeds products Sugar and sugar products Dairy products Meat products Eggs and egg products Beverages Fruit and vegetables Tobacco Agricultural fibres Coffee, tea, spices and processed agricultural products from mixed ingredients Other agricultural products Total all products

18 Page 18 Table 13: Tariff quotas - simple average fill rates by Member, 1997 Member Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Australia Barbados Brazil Bulgaria Canada Colombia Costa Rica Czech Republic Ecuador El Salvador n.a EC Guatemala Hungary Iceland Indonesia Israel Japan Korea Malaysia n.a Mexico Morocco New Zealand Nicaragua n.a. - 9 Norway Panama Philippines Poland Romania Slovak Republic Slovenia South Africa Switzerland Thailand Tunisia United States Venezuela All Members (33 out of 36)

19 Page 19 Simple average fill rates by product category, Average = 62% CE OI SG DA ME EG BV FV TB FI CO OA Simple average fill rates by Member, Average = 62% Distribution of fill rates, number of tariff quotas % 20-40% 40-60% 60-80% % fill rates

20 Page 20 Tariff quota fill in On 1 July 1997, Korea completely phased out three tariff quotas (Table 2 refers). This brought the total number of applicable tariff quotas to 1364 in As of 8 March 2002, 32 out of the 36 Members concerned have notified imports covering 83 per cent of the total number of applicable tariff quotas, i.e tariff quotas. Tables 14 and 15 below provide information on the fill rates by product category and by Member. More information is provided in Tables B of Annex B, including with respect to the distribution of tariff quota fill rates. 35. Of the 1134 tariff quotas for which Table MA:2 notifications are available for the 1998 implementation year, 390 are increasing over the relevant implementation period for the Members concerned. The simple average fill rate for these tariff quotas equals 55 per cent. The remaining tariff quotas (i.e. those remaining unchanged or decreasing over the implementation period) have a simple average fill rate of 68 per cent. 36. With respect to the country-specificity of tariff quotas in the 1998 implementation year, the tariff quotas which are apparently global in nature (1045) have a simple average fill rate of 63 per cent. The tariff quotas with country-specific allocations in Schedules (61) have a simple average fill rate of 69 per cent, while 28 other tariff quotas allocated to supplying countries have a simple average fill rate of 71 per cent. Table 14: Tariff quotas - simple average fill rates by product category, 1998 Product category Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Cereals Oilseeds products Sugar and sugar products Dairy products Meat products Eggs and egg products Beverages Fruit and vegetables Tobacco Agricultural fibres Coffee, tea, spices and processed agricultural products from mixed ingredients Other agricultural products Total all products

21 Page 21 Table 15: Tariff quotas - simple average fill rates by Member, 1998 Member Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Australia Barbados Brazil Bulgaria Canada Colombia Costa Rica Czech Republic Ecuador El Salvador n.a EC Guatemala Hungary Iceland Indonesia Israel Japan Korea Malaysia n.a Mexico Morocco New Zealand Nicaragua n.a. - 9 Norway Panama n.a Philippines Poland Romania Slovak Republic Slovenia South Africa Switzerland Thailand Tunisia United States Venezuela All Members (32 out of 36)

22 Page 22 Simple average fill rates by product category, Average = 63% CE OI SG DA ME EG BV FV TB FI CO OA Simple average fill rates by Member, Average = 63% Distribution of fill rates, number of tariff quotas % 20-40% 40-60% 60-80% % fill rates

23 Page 23 Tariff quota fill in The accession of Latvia and the certification of modifications to the Schedule of the Dominican Republic brought the total number of applicable tariff quotas to 1376 (Table 2 refers). As of 8 March 2002, 25 out of the 38 Members concerned have notified imports covering 62 per cent of all applicable tariff quotas in 1999, i.e. 849 tariff quotas. Tables 16 and 17 provide information on the fill rates by product category and by Member. Tables B of Annex B provide more detail including with respect to the distribution of tariff quota fill rates. 38. Of the 849 tariff quotas for which Table MA:2 notifications are available for the 1999 implementation year, 293 are tariff quotas which are to increase over the relevant implementation period for the Members concerned. The simple average fill rate for these tariff quotas equals 51 per cent. The 556 remaining tariff quotas (i.e. those remaining unchanged or decreasing over the implementation period) have a simple average fill rate of 67 per cent. 39. With respect to the country-specificity of tariff quotas in the 1999 implementation year, the 776 tariff quotas which are apparently global in nature have a simple average fill rate of 61 per cent. The 51 tariff quotas with country-specific allocations in Schedules have a simple average fill rate of 77 per cent, while the other 22 tariff quotas allocated to supplying countries have a simple average fill rate of 63 per cent. Table 16: Tariff quotas - simple average fill rates by product category, 1999 Product category Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Cereals Oilseeds products Sugar and sugar products Dairy products Meat products Eggs and egg products Beverages Fruit and vegetables Tobacco Agricultural fibres Coffee, tea, spices and processed agricultural products from mixed ingredients Other agricultural products Total all products

24 Page 24 Table 17: Tariff quotas - simple average fill rates by Member, 1999 Member Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Australia Barbados Brazil n.a. - 2 Bulgaria n.a Canada n.a Colombia Costa Rica Czech Republic Dominican Republic n.a. - 8 Ecuador El Salvador n.a EC Guatemala Hungary Iceland Indonesia Israel Japan Korea n.a Latvia n.a. - 4 Malaysia n.a Mexico Morocco New Zealand Nicaragua n.a. - 9 Norway Panama n.a Philippines n.a Poland Romania Slovak Republic Slovenia South Africa Switzerland n.a Thailand Tunisia United States Venezuela n.a All Members (25 out of 38)

25 Page 25 Simple average fill rates by product category, Average = 62% CE OI SG DA ME EG BV FV TB FI CO OA Simple average fill rates by Member, Average = 62% AUS BRB COL CRI CZE ECU EC GTM HUN ISL IDN ISR JPN MEX MAR NZL NOR POL SVK SVN ZAF THA TUN USA 440 Distribution of fill rates, number of tariff quotas % 20-40% 40-60% 60-80% % fill rates

26 Page 26 Tariff quota fill in As reflected in Table 2, the total number of applicable tariff quotas decreased to 1365 during the 2000 implementation year compared with the previous year. This was due to the phasing out of 11 tariff quotas by Hungary. As of 8 March 2002, 21 out of the 38 Members concerned have notified imports covering 51 per cent of all applicable tariff quotas in 2000, i.e. 700 tariff quotas. Tables 16 and 17 provide information on the fill rates by product category and by Member. Tables B of Annex B provide more detail including with respect to the distribution of tariff quota fill rates. 41. Of the 700 tariff quotas for which Table MA:2 notifications are available for the 2000 implementation year, 251 are tariff quotas which are to increase over the relevant implementation period for the Members concerned. The simple average fill rate for these tariff quotas equals 51 per cent. The 449 remaining tariff quotas (i.e. those remaining unchanged or decreasing over the implementation period) have a simple average fill rate of 65 per cent. 42. With respect to the country-specificity of tariff quotas in the 2000 implementation year, the 657 tariff quotas which are apparently global in nature have a simple average fill rate of 60 per cent. The 22 tariff quotas with country-specific allocations in Schedules have a simple average fill rate of 74 per cent, while the other 21 tariff quotas allocated to supplying countries have a simple average fill rate of 63 per cent. Table 16: Tariff quotas - simple average fill rates by product category, 2000 Product category Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Cereals Oilseeds products Sugar and sugar products Dairy products Meat products Eggs and egg products Beverages Fruit and vegetables Tobacco Agricultural fibres Coffee, tea, spices and processed agricultural products from mixed ingredients Other agricultural products Total all products

27 Page 27 Table 17: Tariff quotas - simple average fill rates by Member, 2000 Member Simple average fill rate (%) Number of tariff quotas included Number of tariff quotas excluded Australia Barbados Brazil n.a. - 2 Bulgaria n.a Canada n.a Colombia Costa Rica n.a Czech Republic Dominican Republic Ecuador El Salvador n.a EC Guatemala Hungary Iceland n.a Indonesia Israel Japan Korea n.a Latvia Malaysia n.a Mexico n.a Morocco n.a New Zealand Nicaragua n.a. - 9 Norway Panama n.a Philippines n.a Poland Romania n.a Slovak Republic Slovenia South Africa Switzerland n.a Thailand Tunisia United States n.a Venezuela n.a All Members (21 out of 38)

28 Page 28 Simple average fill rates by product category, Average = 60% CE OI SG DA ME EG BV FV TB FI CO OA Simple average fill rates by Member, Average = 60% AUS BRB COL CZE DOM ECU EC GTM HUN IDN ISR JPN LVA NZL NOR POL SVK SVN ZAF THA TUN Distribution of fill rates, number of tariff quotas % 20-40% 40-60% 60-80% % fill rates

29 Page 29 Tariff quota fill in In 2001, three Members have thus far notified imports for a total number of 72 tariff quotas. The simple average fill rate across all these three Members and all product categories is 54 per cent. Detailed information on these 72 tariff quotas can be found in the Attachment.

30 Page 30 Annex A Product categories and their content Code Broad product categories Indicative list of content CE Cereals Wheat and wheat flour, oats, barley, maize, rice, other grains, aggregated cereals tariff quotas (e.g. wheat and barley), processed cereals (including pasta, animal feed, etc.) OI Oilseeds products Oilseeds, vegetable oils, oil cakes, aggregated oilseeds tariff quotas SG Sugar and sugar products Sugar, processed sugar-containing products, aggregated sugar and sugar products tariff quotas DA Dairy products Milk and cream (not concentrated), milk powder, butter and butter oil, cheese, other milk products, aggregated dairy products tariff quotas ME Meat products Bovine meat, pigmeat, poultry meat, sheepmeat, live animals, aggregated meat tariff quotas (e.g. beef and sheepmeat), processed animal products EG Eggs and egg products Eggs, other egg products, aggregated egg and products tariff quotas BV Beverages Wine, non-alcoholic beverages (e.g. water), other alcoholic beverages, aggregated beverages tariff quotas (not fruit juices) FV Fruit and vegetables Pip fruit, citrus fruit, other fruit, aggregated fruit tariff quotas, processed fruit (including juices, jams, etc.), potatoes, other vegetables, aggregated vegetables, processed vegetables TB Tobacco Tobacco, other tobacco products, aggregated tobacco tariff quotas FI Agricultural fibres Cotton, silk, other fibres CO OA Coffee, tea, spices and processed agricultural products from mixed ingredients Other agricultural products Coffee, tea, cocoa, spices, honey, other spices, etc. (this also includes processed products such as infant formula and homogenised foods, sauces, soups, etc.) Other agricultural products (e.g. Chapter 5 of the Harmonized System) and most non-chapter 1 to 24 products such as dextrins, animal pelts, etc.

31 Page 31 Country Notes By Member and tariff quota number (MENO#) MEMBER MENO NOTE Bulgaria Membership on 1 December 1996 Brazil 2 Technical rectification sought - Chile 1 The modifications set out in G/MA/TAR/RS/82 became effective on 30 January 2002 (WT/LET/415 refers). China Membership on 11 December 2001 Chinese Taipei Membership on 1 January 2002 Colombia 1 Import data reported under MENO#58 3 Import data reported under MENO#59 4 Import data reported under MENO#60 12 Import data reported under MENO#61 15 Import data reported under MENO#62 16 Import data reported under MENO#63 17 Import data reported under MENO#64 28 Import data reported under MENO#65 46 Import data reported under MENO#66 57 Import data reported under MENO#67 58 Aggregated with MENO#1 59 Aggregated with MENO#3 60 Aggregated with MENO#4 61 Aggregated with MENO#12 62 Aggregated with MENO#15 63 Aggregated with MENO#16 64 Aggregated with MENO#17 65 Aggregated with MENO#28 66 Aggregated with MENO#46 67 Aggregated with MENO#57 Croatia Membership on 30 November 2000

32 Page 32 MEMBER MENO NOTE Dominican Republic All The modifications set out in G/MA/TAR/RS/54 became effective on 3 February 1999 (WT/LET/293 refers) Ecuador Membership on 21 January 1996 EC-15 All For a number of tariff quotas, the import data reflect authorized imports rather than effective imports. Please see the notifications for further details. 12 Butter The import data since 1995 "will be notified at a later stage". 31 Maize The quota quantity is reduced by imports of maize gluten feed, brewers' grains and citrus pulp as indicated in the commitments. 32 Sorghum The quota quantity is reduced by imports of maize gluten feed, brewers' grains and citrus pulp as indicated in the commitments. 35 Includes import data for MENO# Import data reported under MENO# This tariff quota was repealed as of 1 July 2000 (EEC/34 refers). 83 The 1997 quota for the United States has been staggered over the period (EEC/31 refers.) 84 The 1997 quota for the United States has been staggered over the period (EEC/31 refers.) 86 Grape juice - Opened (EEC/14 refers) 87 Rum and taffia Opened 1 July 1997 to (EEC/14 refers) Guatemala 8 Imports reported under MENO#9. 9 Includes imports under MENO#8. Hungary 21, 25, , 29, 37, 43, 44, 45, 48, 53 As of 2000, MFN rates are lower than in-quota rates. No TQs are in place any longer. Iceland 57, 83 Implemented as one single sheepmeat TRQ. Israel 5 and 6 Cessation of the application of Special Treatment (Annex 5, para 2) as of the end of On March 2001, a formal request for technical rectification was submitted (G/MA/TAR/RS/78 refers).

33 Page 33 MEMBER MENO NOTE Japan 3, 5 The tariff quota system is not applied as these products can be imported under the Hozei area (where the collection of customs duties is temporarily reserved) provided they are used for consumption in the cruise of international maritime vessels and international airlines as described in the Notes to Section I-B of Part I of Japan's Schedule. Import statistics for products subject to the Hozei area system are not available. 16 Cessation of the application of Special Treatment (Annex 5, para 2) as of FY 1999 notified through JPN/42 Technical rectification submitted G/MA/TAR/RS/57 in December Korea 5, 6, 60 Phased out in July 1997 (G/AG/N/KOR/11), as per footnote 6(d) in Schedule LX. 67 Phased out in July 1997 (G/AG/N/KOR/21) as per Schedule LX. Tariff rate quota opened in Latvia Membership on 10 February TQs were opened in 1999 (LVA/1 refers). Lithuania Membership on 31 May 2001 Morocco 14 In 1997 and 1998, reported under MENO# Reported under MENO# Includes import data for MENO#15 and MENO#16 in 1997 and Norway 32 Notified quantities differ from scheduled quantities. 52 Import data reported under MENO# Includes import data for MENO# Includes import data for MENO# Import data reported under MENO# Covers imports under MENO# Import data reported under MENO# Import data reported under MENO# Import data reported under MENO# Includes import data for MENO#91 and MENO# Includes import data for MENO#96 and MENO# Import data reported under MENO# Import data reported under MENO# Import data reported under MENO#108.

34 Page 34 MEMBER MENO NOTE Norway (cont'd) 107 Import data reported under MENO#108 until Includes import data for MENO#106 and MENO#107 up to As of 2000, covers imports under MENO#106, #109 and # Import data reported under MENO# Includes import data for MENO#106 and MENO# Imports of sauerkraut reported under MENO# Covers imports under MENO# Import data reported in litres, alcohol volume 80% or higher (= kg.) Panama Membership on 6 September Notified quantities are lower than scheduled quantities. Poland All Notified quantities for 1995 are half of scheduled quantities. Likewise, notified imports cover the period 1 July-31 December 1995 (G/AG/N/POL/3 refers). 1, 13, 27, 39, 46, 65, 68, 69, 73, 80, 87 Notified quantities are lower than scheduled quantities. Notified data, administration method and thus fill rates, only refer to a sub-set of each of these tariff quotas. 10 The scheduled quantity, i.e tons, is equivalent to 5 million pieces (conversion factor = 5.4) 11 Notified quantities are higher than scheduled quantity throughout the implementation years. 32 The notified quantity is lower than the scheduled quantity and refer to the seasonal importation of cucumbers. Seasons covered vary across the implementation years. 48 The notified quantities are lower than the scheduled quantities. Import data relate to strawberries, from 1 May-31 July. 56 Notified quantity in 1999 is higher than scheduled quantity. 60 Notified quantities, administration method, imports and fill rates only refer to wheat/meslin and rye flour, depending on implementation year. 75 Excludes Annex 1 products, i.e. products of an actual alcoholic strength by volume exceeding 22% vol. 76 Includes Annex 1 products.

35 Page 35 MEMBER MENO NOTE Poland (cont'd) 78 Conversion factors: 1 cigarette (HS ) = 1 gr.; 1 cigar = 4 gr.; 1 cigarillo = 3 gr. (HS ). 91 Notified quantities are lower than scheduled quantities. Notified data, and thus fill rates, refer to potatoes only. Switzerland 23 Notified quantity is higher than scheduled quantity (technical rectification sought). Administered in conjunction with MENO#25 "white wine in bulk other than industrial". 24 Notified quantities differ from scheduled quantities (technical rectification sought). 25 Administered in conjunction with MENO#23 "white wine in bulk other than industrial". United States 47 Notified quantity is higher than scheduled quantity.

36 Page 36 Annex B Detailed tables Page Table B.1 Number of tariff quotas by Member and by product group 37 Table B.2 Distribution of simple average fill rates by product group, Table B.3 Distribution of simple average fill rates by Member, Table B.4 Simple average fill rates by Member and product group, Table B.5 Distribution of simple average fill rates by product group, Table B.6 Distribution of simple average fill rates by Member, Table B.7 Simple average fill rates by Member and product group, Table B.8 Distribution of simple average fill rates by product group, Table B.9 Distribution of simple average fill rates by Member, Table B.10 Simple average fill rates by Member and product group, Table B.11 Distribution of simple average fill rates by product group, Table B.12 Distribution of simple average fill rates by Member, Table B.13 Simple average fill rates by Member and product group, Table B.14 Distribution of simple average fill rates by product group, Table B.15 Distribution of simple average fill rates by Member, Table B.16 Simple average fill rates by Member and product group, Table B.17 Distribution of simple average fill rates by product group, Table B.18 Distribution of simple average fill rates by Member, Table B.19 Simple average fill rates by Member and product group,