Brasília, 30 (Agência Brasil - ABr) - The Commercial Negotiating Committee (CNC) of the Free Trade Area of the Americas (FTAA), at a meeting held in Venezuela, decided that the basic tariff on which import tax cuts will be based on will be the smallest tariff consolidated by the World Trade Organization (WTO) in effect between January 15th, 2003 and December 31st, 2004.

Another decision is that there will be four basis-periods for tax reductions. The reduction may happen immediately; over a maximum 5-year period; a maximum 10-year period; or in 10 years or more. This last option will be used for a small number of products.

According to the general subsecretary for Integration, Economy and Foreign Trade of the Ministry of Foreign Relations, ambassador Clodoaldo Hugueney, it was also determined that "all products will be under negotiation and, a priori, there will no exceptions". He also said that the negotiation rules for agricultural products will be similar to those for industrial ones. Hugueney added that export subsidies in the hemisphere will be prohibited and that ways to inhibit export subisidies from other countries will be studied. (WPS)