1.      The framework package for the Doha Development Agenda (DDA) Negotiations was adopted at the 
WTO General Council on August 1st, 00:30 (August 1st, 07:30, Korean time). WTO member states engaged 
in concentrated negotiations based on the draft text proposed by Mr. Shotaro Oshima, Chairman of the 
General Council, and reached a final agreement on the framework after making additional modifications on 
certain parts of the text.

2.      The main contents of the agreed text are as follows:

ㅇ The DDA negotiations will progress beyond the original 1 January 2005 deadline and continue until 
the 6th Ministerial Conference. The 6th Ministerial Conference will be held in Hong Kong in December, 2005

ㅇ In Agriculture, domestic support and tariffs will be reduced according to the  tiered formula, with the 
specific tiers and reduction methods are to be  determined at a later stage through further negotiations

-   Members having higher levels of tariffs will make greater tariff reductions

-   For sensitive products, one of the major issues of the DDA negotiations,  all Members may designate an 
appropriate number of tariff lines to be  treated as sensitive, and substantial improvements in market 
access will be achieved through combinations of tariff quota commitments  (TRQ) and tariff reductions

-  The role of tariff cappings will be evaluated at a later stage

-   Developing countries may designate an appropriate number of products   as Special Products

-   On domestic support, Members having higher levels of domestic support   will make greater reductions, 
and must reduce more than 20% of the   sum of all trade-distorting support in the first year of the 
implementation period

-   Introduction of some flexibility for production-limiting subsidies (Blue Box)

-   All forms of export subsidies are to be reduced at an end date to be  negotiated, and there will be 
strengthened provisions to prevent the  utilization of export credits, STEs and food aid as export subsidies

ㅇ On Market Access for Non-Agricultural Products (NAMA), the linear formula  has been adopted as the tariff 
reduction formula that will apply to all  Members (greater reduction rates for greater tariff levels)

ㅇ For Services, all Members must submit their second offers by May 2005

-   Members who have not yet submitted their initial offers must do so as  soon as possible

ㅇ Among the four Singapore Issues, negotiations on trade facilitation will be launched, and the remaining 
three issues of investment, competition policy and transparency in government procurement will be 
excluded from future DDA work programmes

ㅇ The importance of development is emphasized throughout the course of negotiations, and to accelerate 
discussions on special treatments for developing countries and implementation issues, the deadlines for 
reporting have been set for July and May 2005, respectively.

3.      In the newly adopted framework for negotiations, the designation of sensitive agricultural products by 
each country and the introduction of Special Products for developing countries can be evaluated as positive 
developments for Korea. But as it has been decided that the role of tariff cappings will be evaluated at a 
later time and tariff rate quotas (TRQ) will be combined with tariff reductions, the actual effects of the DDA 
negotiations on Korea's Agricultural sector will be determined only after conducting further negotiations on 
detailed modalities.


4.      The non-linear formula which has been adopted for NAMA, requiring greater tariff reductions for higher 
tariff levels, is expected to be beneficial in eliminating tariff barriers in our export markets for industrial 
products.

ㅇ In addition, the launching of negotiations on trade facilitation, which aims to improve transparency and 
speed in the customs procedures of Member countries, is expected to ameliorate our trade environment


5.      The adoption of the framework text is expected to accelerate the DDA negotiations, which had gone 
through a momentary lull after the breakdown of the Cancun Ministerial Conference in September, 2003. 
Follow-up negotiations to establish concrete modalities will take place beginning September this year. The 
Korean government will actively participate in the follow-up negotiations through close consultations with 
relevant government agencies, and will make efforts to take sensitive sectors such as agriculture and 
fisheries into consideration and have Korea's position reflected to the greatest extent possible.

                                                             Spokesperson of MOFAT

* unofficial translation