The leading chemical associations ACC, CCPA, Cefic, JCIA, representing more than 60% of worldwide chemical production, deeply regret the lack of progress on the Doha Development Agenda. We are particularly disappointed that the WTO ministerial conference planned this month has officially been called off notwithstanding the recent strong signal from the G20 leaders and the APEC summits. We greatly appreciate the efforts undertaken by Director General Pascal Lamy and major WTO members to pave the way for completion of the Round.

We believe that a commercially meaningful outcome of the Round is necessary to restart global growth. In past times of deep economic downturn, the removal of tariff and non-tariffs barriers to trade has been a major impetus for economic growth. A successful Doha outcome would also convey a very positive endorsement for global engagement and serve as a counterweight to increasing protectionist tendencies.

We therefore call on WTO members to resume the negotiations as soon as possible to achieve an ambitious outcome to the WTO Doha Round and effective new market access for the chemical industry on a global basis.

Given that:
 

• World chemical industry production exceeds US$ 3.2 trillion annually and over 35% of this production is traded internationally,
   
• Chemical tariffs in the OECD countries are already at a relatively low and harmonised level,
   
• The fast pace of globalisation of the chemical industry and the growing importance of emerging economies in the production, trade and consumption of chemicals warrant a global approach to
  tariff elimination,
   
• Recognising changing competitive pressures and the specific circumstances of each country, in
  order to accommodate as many member countries as possible, a limited flexibility in terms of time could be given to all members on highly sensitive products with a special and differential treatment for developing countries,
   
• Chemicals play a crucial role within global manufacturing supply chains and access to chemicals is equally important to developing and developed economies within those supply chains where opportunity for development is increasing,
   
• Liberalisation of chemical trade would give a major boost to the entire economy - both industrial
  and agricultural sectors,
   
• The horizontal tariff formula modalities included in the NAMA text issued on 9 December 2008 are insufficient for achieving effective new market access for chemicals in key growth markets of the world.

We believe that a chemical tariff elimination agreement would greatly contribute to raising the overall level of ambition of the NAMA negotiations. We suggest to agree on the modalities of and participation in a chemicals tariff elimination agreement at the same time as the broader NAMA modalities, and not subsequent to such modalities as foreseen in the December NAMA text.

The chemical tariff elimination agreement must have the following core elements:
 

• Full participation of OECD countries and leading emerging economies with substantial chemical production and a viable chemical industry, including Brazil, China, and India,
   
•  No exceptions in product coverage (HS chapters 28 to 39),
   
• Limited S&D provisions may be integrated into a chemical tariff elimination agreement but these
  must be restricted in scope, not undermine the ultimate objective of the agreement, and be time
  limited.
  
  18 December 2008

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