RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/276
17 July 2001
(01-3535)
Council for Trade in Goods Original:  English
THAILAND - EXTENSION OF THE TRANSITION PERIOD FOR THE ELIMINATION OF
TRADE-RELATED INVESTMENT MEASURES NOTIFIED UNDER ARTICLE 5.1 OF THE
AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES
REQUEST FOR A WAIVER
The following communication, dated 17 July 2001, has been received from the Permanent
Mission of Thailand.
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Pursuant to Article IX:3(b) of the Marrakesh Agreement Establishing the World Trade
Organization, I write to submit to the Council for Trade in Goods a request by the Kingdom of
Thailand for a waiver from the obligations of Article 5.2 of the Agreement on Trade-Related
Investment Measures (the “TRIMs” Agreement).
This request relates to the TRIM duly notified by the Kingdom of Thailand to the Council on
Trade in Goods on 30 March 1995, requiring local content for the manufacture of milk and dairy
products (G/TRIMS/N/1/THA/1). In vi ew of the particular difficulties in implementing the provisions
of the TRIMs Agreement as described in its request for an extension of the transition period under
Article 5.2 of that Agreement, dated 2 May 2000 (G/C/W/203), the Kingdom of Thailand considers
that exceptional circumstances exist that justify a waiver and therefore requests that the obligations of
Article 5.2 of the TRIMs Agreement be waived in respect of Thailand until 31 December 2003. To
this end, a draft Decision is attached herewith.
Pursuant to the Rules of Procedures for meetin gs of the Council for Trade in Goods (CTG), I
further ask that this request for a waiver be placed on the agenda for the next meeting of the CTG to
be convened at the earliest opportunity.G/C/W/276
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THAILAND - EXTENSION OF THE TRANSITION PERIOD FOR THE ELIMINATION OF
TRADE-RELATED INVESTMENT MEASURES NOTIFIED UNDER ARTICLE 5.1 OF THE
AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES
REQUEST FOR A WAIVER
Draft Decision
Decision of (…) 20011
The General Council,
Having regard  to paragraphs 1, 3 and 4 of Article IX of the Marrakesh Agreement
Establishing the World Trade Organization (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, 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 from Thailand under Article 5.3 of the TRIMs Agreement for an
extension of the transition period for five years for the TRIM notified under Article 5.1 of the TRIMs
Agreement (G/C/W/203) and its request for a waiver of the requirements of Article 5.2 of the TRIMs
Agreement;
Considering that Thailand's request under Article 5.3 of the TRIMs Agreement was made on
2 May 2000;
Considering that Thailand is substantially in the same situation as other developing countries
which have requested an extension of the period for the elimination of their notified TRIMs (G/L/325,G/C/W/169 and Add.1, G/C/W/ 171, G/C/W/172 and Add.1, G/C/W/173, G/C/W/174, G/C/W/175,
G/C/W/176 and Corr.1);
Taking into account  the individual development, financial and trade needs of Thailand;
Considering  that Thailand has demonstrated particular difficulties in implementing the
provisions of the TRIMs Agreement;
Considering  that Thailand hereby commits itself to eliminate this remaining TRIM;
                                                     
1 Adopted in accordance with the Procedures on WTO Decision-Making under Article IX of the WTO
Agreement agreed by the General Council (WT/L/93).G/C/W/276
Page 3
Noting that,  in light of the foregoing, the exceptional circumstances justifying a waiver from
Article 5.2 of the TRIMs Agreement exist;
Decides  as follows:
1. Subject to the terms and conditions set out in paragraphs 2, 3 and 4 below, Article 5.2 of the
TRIMs Agreement shall be waived in respect of Thailand;
2. The transition period under the TRIMs Agreement is extended for Thailand until
31 December 2001 for the TRIM for which an extension of the transition period has been
requested.
3. Thailand may request one additional extension for a period of no more than two years from
1 January 2002. Any such request, stating the particular difficulties Thailand continues to
encounter in implementing the provisions of  the TRIMs Agreement, shall be communicated
to the Council for Trade in Goods no later than 31 August 2001, and shall be accompanied
by:
(a) a description of the steps Thailand has taken to date and/or will take to
eliminate its remaining TRIM;
(b) a reasonable phase-out plan for eliminating definitively its remaining TRIM
no later than 31 December 2003;  and
(c) a commitment to submit periodic reports to the Council for Trade in Goods
on the progress it makes in phasing out its remaining TRIM.
4. Thailand shall consult with the Council for Trade in Goods on any request it makes under
paragraph 3, and on the implementation of its commitment to phase out and eliminate itsremaining TRIM. On the basis of these consultations, the Council for Trade in Goods shall
grant such request, no later than 5 October 2001, if it is verified that the request fulfils the
conditions set out in paragraph 2.
5. The periodic reports under paragraph 3(c) and the consultations under paragraph 4 shall be
deemed to fulfill the review requirements of Article IX:4 of the WTO Agreement.
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