RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/187/Add.2/Rev.1
2 November 2001
(01-5412)
Council for Trade in Goods Original:  English
EUROPEAN COMMUNITIES - THE ACP-EC PARTNERSHIP AGREEMENT
Revision
The following communication, dated 13 April 2000 and revised on 2 November 2001,
containing a Draft Decision for a waiver, has been received from the Permanent Delegation of the
European Commission.
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Decision of [date of decision]
[The General Council,]
HAVING REGARD TO paragraphs 1 and 3 of Article IX of the Marrakech Agreement
Establishing the World Trade Organisation (the "W TO Agreement"), the Guiding Principles to be
followed in considering applications for waiv ers adopted on 1 November 1956 (BISD 5S/25), the
Understanding in Respect to Waivers of Obligations under the General Agreement on Tariffs and
Trade 1994, paragraph 3 of Article IX of the WTO Agreement, and Decision-Making Procedures
under Articles IX and XII of the WTO Agreement agreed by the General Council (WT/L/93);
[CONDUCTING  the function of the Ministerial Conference in the interval between meetings
pursuant to paragraph 2 of Article IV of the WTO Agreement;]
TAKING NOTE  of the request of the European Communities (EC) and of the Governments
of the ACP States which are also WTO members (hereinafter also the “Parties to the Agreement”) for
a waiver from the obligations of the European Communities under paragraph 1 of Article I of the
General Agreement with respect to the granting of preferential tariff treatment for products
originating in ACP States as required by Article 36.3, Annex V and its Protocols  of the ACP-EC
Partnership Agreement (hereinafter also referred to as “the Agreement”)1;
CONSIDERING that, in the field of trade, the provisions of the ACP-EC Partnership
Agreement requires preferential tariff treatment by the EC of exports of products originating in the
ACP States;
CONSIDERING that the Agreement is aimed at improving the standard of living and
economic development of the ACP States, including the least developed among them;
CONSIDERING also that the preferential tariff treatment for products originating in ACP
States as required by Article 36.3, Annex V and its Protocols  of the Agreement is designed to
                                                     
1 As contained in documents G/C/W/187, G/C/W/204, G/C/W/254 and G/C/W/269 ).G/C/W/187/Add.2/Rev.1
Page 2
promote the expansion of trade and economic development of beneficiaries in a manner consistent
with the objectives of the WTO and with the trade, financial and development needs of the
beneficiaries and not to raise undue barriers or to create undue difficulties for the trade of other
members;
CONSIDERING that the Agreement establishes a preparatory period extending until
31 December 2007, by the end of which new trading arrangements shall be concluded between the
Parties to the Agreement;
CONSIDERING that the trade provisions of the Agreement have been applied since
1 March 2000 on the basis of transitional measures adopted by the ACP-EC joint institutions;
NOTING the assurances given by the Parties to the Agreement that they will, upon request,
promptly enter into consultations with any interested  member with respect to any difficulty or matter
that may arise as a result of the implementation of the preferential tariff treatment for products
originating in ACP States as required by Article 36.3, Annex V and its Protocols  of the Agreement;
NOTING that the implementation of the preferential tariff treatment for bananas may
be affected as a result of GATT Article XXVIII negotiations;
NOTING the assurances from the Parties to the Agreement that any re-binding of the
EC tariff on bananas under the relevant GATT Ar ticle XXVIII procedures should not result in
a reduction of overall market access for banana suppliers,  whether of preferential or MFN
origin,  at the time of the re-binding, and their willingness to accept a multilateral control on the
implementation of this commitment;
NOTING  that, in light of the foregoing, the exceptional circumstances justifying a waiver
from paragraph 1 of Article I of the General Agreement exist;
DECIDES as follows:
1. Subject to the terms and conditions set out hereunder, Article I, paragraph 1 of the General
Agreement shall be waived, until 31 December 2007, to the extent necessary to permit the
European Communities to provide preferential tariff treatment for products originating in
ACP States as required by Article 36.3, Annex V and its Protocols  of the ACP-EC
Partnership Agreement,2 without being required to extend the same preferential treatment to
like products of any other member.
2. The Parties to the Agreement shall promptly notify the General Council  of any changes in the
preferential tariff treatment to products originating in ACP States as required by the relevant
provisions of the Agreement covered by this waiver.
3. The Parties to the Agreement will, upon request, promptly enter into consultations with any
interested member with respect to any difficulty  or matter that may arise as a result of the
implementation of the preferential tariff treatment for products originating in ACP States as
required by Article 36.3, Annex V and its Protocols  of the Agreement; where a member
considers that any benefit accruing to it under the General Agreement may be or is being
impaired unduly as a result of such implementation, such consultations shall examine the
possibility of action  for a satisfactory adjustment of the matter.
                                                     
2 Any reference to the Partnership Agreement in this Decision shall also include the period during
which the trade provisions of this Agreement are applie d on the basis of transitional measures adopted by the
ACP-EC joint institutions.G/C/W/187/Add.2/Rev.1
Page 3
3bis       Upon request, the Parties to the Agreement will promptly enter into
consultations with any interested Member with the aim that any re-binding of the EC
tariff on bananas under the relevant GATT Article XXVIII procedures does not result
in a reduction of overall market access for banana suppliers, whether of preferential or
MFN origin,  at the time of the re-binding.
3ter       Any interested Member which considers that consultations under paragraph 3bis of this
decision have proved unsatisfactory may request an arbitration, which the Parties to the
Agreement shall not oppose. The Director Ge neral, following consultations with the
parties, will appoint an arbitrator within 30 days of such request.
The mandate of the arbitrator shall be to determine, within 90 days after its
appointment, whether the re-binding of th e EC tariff on bananas under the relevant
GATT Article XXVIII procedures results in a reduction of overall market access for
banana suppliers,  whether of preferential or MFN origin,  at the time of the re-binding.
If such is the case, this waiver shall cease to apply with respect to bananas two months
after the notification of the arbitration award to the General Council.
4. Any member which considers that the preferential tariff treatment for products originating in
ACP States as required by Article 36.3, Annex V and its Protocols  of the Agreement is being
applied inconsistently with this waiver or that any benefit accruing to it under the General
Agreement may be or is being impaired unduly as a result of the implementation of the
preferential tariff treatment for products originating in ACP States as required by Article
36.3, Annex V and its Protocols  of the Agreement and that consultations have proved
unsatisfactory, may bring the matter before the General Council , which will examine it
promptly and will formulate any recommendations that they judge appropriate.
5. The Parties to the Agreement will submit to the General Council an annual report on the
implementation of the preferential tariff treatment for products originating in ACP States as
required by Article 36.3, Annex V and its Protocols  of the Agreement.
6. This waiver shall not preclude the right of affected members to have recourse to
Articles XXII and XXIII of the General Agreement.
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