1. Sectoral Approach WTO Non-agricultural Market Access Department of Trade Negotiations May 2006

2.  Non-Mandatory  Aim to reduce tariffs over and above formula (most aim to eliminate tariffs)  Interested members form discussion groups on treatment of goods in particular sectors Overview

3.  Product coverage  Target end rates  Implementation schedule  Critical mass level  Special and Differential treatment for developing countries Common Elements

4. Product Coverage  What products should be included.

5.  Elimination  Harmonization Target End Rates (Over and above formula)

6. Implementation Schedule  Immediately  Same as standard (formula)  Others

7. Critical Mass Level  What constitutes a critical mass of participants.  How to determine threshold. Trade = Imp + Exp

8. Determining Threshold RankCountryExportImportTrade ShareCumulative Reporting Total117813128597246410100.00% 1EU (25)38164458398400334.09% 2United States15224282244344817.63%51.72% 3India1044112486229279.30%61.03% 4Hong Kong1141610644220608.95%69.98% 5Switzerland4841491597563.96%73.94% 6South Africa851469992133.74%77.68% 7Japan2156573078863.20%80.88% 8Australia4382262770092.84%83.72% 9South Korea3365359469592.82%86.55% 10Canada3907173156382.29%88.84% 11Thailand3296184651422.09%90.92% 12China2519220147201.92%92.84% 13Turkey797269734941.42%94.26% 14Singapore1653182834811.41%95.67% Others7138353610674

9. S & D for Developing  Longer implementation period  Zero – for – X  Limited products exemption

10. Competitive (study of CITS) Fair N/A Fair N/AHigh Fair N/A Fair Currently under discussion / Consult Results No Yes Cosponsor / initiated Sectors Auto & related parts Bicycle & related parts Chemicals Electronics/electrical Fish & fish products Footwear Forest products Gems & jewelry Hand tools Leather products Pharma & Med. Devices Raw Materials Sports equipments Textile & Clothing

11. Current Status SectorInitiatorCo-sponsorCurrent Status Automotive and Related PartsJapanFirst Generation Bicycle and Related PartsChinese Taipei  Third Generation ChemicalsUSAFirst Generation Electronics/ElectricalJapan  Second Generation Fish and fish productsNew Zealand/Norway  First Generation FootwearECFirst Generation Forest ProductsCanada  In the final stage of development Gems and JewelleryThailandSecond Generation Hand ToolsChinese TaipeiFirst Generation Open Access to Enhanced Healthcare Switzerland/Singapore/USAFirst Generation Raw MaterialsUAEFirst Generation Sports EquipmentChinese TaipeiThird Generation Textiles and ClothingECFirst Generation ToysHong Kong/Chinese TaipeiRoom Document

12. Q & A ? Thank You.