REPORT OFTHE GENERAL COUNCIL
TOTHE 1996 MINISTERIAL CONFERENCE
VOLUME II
96-4996WORLD TRADE WT/MIN(96)/2
26November 1996
ORGANIZATION(96-4996)
MINISTERIAL CONFERENCE
Singapore, 9-13December 1996
REPORT OFTHE GENERAL COUNCIL TO
THE 1996 MINISTERIAL CONFERENCE
VOLUME II
Reports ofthesubsidiary bodies oftheCouncil forTrade inGoods
Theannual reports ofthesubsidiary bodies oftheCouncil forTrade inGoods arereproduced
hereunder. Each report isreproduced asaseparate section withitsownpagenumbering.
Reports Document Symbol
Section I Working Group onNotification
Obligations andProcedures G/L/112 andAdd.1
Section II Textiles Monitoring Body G/L/113
Section III Committee onSanitary and
Phytosanitary Measures G/L/118
Section IV Committee onRules ofOrigin G/L/119
Section V Independent Entity established pursuant to G/PSI/IE/3
theAgreement onPreshipment Inspection G/L/120
Section VI Committee onCustoms Valuation G/L/121
Section VII Committee onTechnical Barriers toTrade G/L/122
Section VIII Committee onAnti-Dumping Practices G/L/123
Section IX Committee onAgriculture ontheMarrakesh
Ministerial Decision onMeasures Concerning
thepossible negative effects oftheReform
Programme onLeast-Developed Countries
andNetFood-Importing Developing Countries G/L/125
Section X Committee onAgriculture G/L/131WT/MIN(96)/2
Page2
Section XI Committee onSubsidies andCountervailing
Measures G/L/126
Section XII Committee onImport Licensing G/L/127
Section XIII Working Party onState Trading Enterprises G/L/128
Section XIV Committee onSafeguards G/L/129
Section XV Market Access Committee G/L/132
Section XVI Committee onTrade-Related
Investment Measures G/L/133SECTION I
WORKING GROUP ONNOTIFICATION
OBLIGATIONS AND PROCEDURESWORLD TRADE G/L/112
7October 1996
ORGANIZATION(96-4062)
REPORT OFTHE WORKING GROUP ONNOTIFICATION
OBLIGATIONS AND PROCEDURES1
I. TheMandate andtheEstablishment oftheWorking Group
1. TheMarrakesh Decision onNotification Procedures2provides initsPartIIIforthereview
ofnotification obligations andprocedures asfollows:
"The Council forTrade inGoods willundertake areview ofnotification obligations and
procedures under theAgreements inAnnex 1AoftheWTO Agreement. Thereview willbe
carried outbyaworking group, membership inwhich willbeopentoallMembers. Thegroup
willbeestablished immediately afterthedateofentry intoforce oftheWTO Agreement.
Theterms ofreference oftheworking group willbe:
- toundertake athorough review ofallexisting notification obligations ofMembers
established under theAgreements inAnnex 1AoftheWTO Agreement, withaview
tosimplifying, standardizing andconsolidating these obligations tothegreatest extent
practicable, aswellastoimproving compliance withtheseobligations, bearing inmind
theoverall objective ofimproving thetransparency ofthetrade policies ofMembers
andtheeffectiveness ofsurveillance arrangements established tothisend,andalso
bearing inmind thepossible needofsome developing country Members forassistance
inmeeting theirnotification obligations;
- tomake recommendations totheCouncil forTrade inGoods notlaterthantwoyears
aftertheentry intoforce oftheWTO Agreement."
2. ThisMinisterial Decision wasadopted bytheGeneral Council on31January 1995.3On
20February 1995, theCouncil forTrade inGoods established aWorking Group onNotification
Obligations andProcedures tocarry outthetasks setbytheDecision.4Atthesame meeting,
1Theobservations andconclusions oftheWorking Group onthespecific subjects examined areshown in
boldprint while therecommendations foraction bytheCouncil forTrade inGoods areshown inbold print
andareunderlined .
2ThefulltextoftheDecision issetoutinAnnex I.
3Document WT/GC/M/1, paragraph 9.
4Document G/C/M/1, paragraphs 6.1-6.3.G/L/112
Page2
Mr.A.Shoyer (United States) wasappointed Chairman. Thisappointment wasrenewed bytheCouncil
forTrade inGoods atitsmeeting on14February 1996.5
II. TheTask andOrganization oftheWorking Group
3. TheWorking Group held11meetings, on7July, 19October and28November 1995, plus
7February, 11March, 16April, 7May, 6June, 3July, 13September and3October 1996.
4. Atitsfirstmeeting theWorking Group noted thatitwasbeing called upontothoroughly review
allexisting notification obligations inthe12Agreements listed inAnnex 1AoftheWTO Agreement,
aswellastheGATT 1994, including thesixUnderstandings interpreting certain articles thereof.
Themandate didnotinclude theAgreements onServices, TRIPs, DSU, TPRM orthePlurilateral Trade
Agreements. Thequestion arose attheoutset astowhether therecommendations oftheGroup should
focus exclusively onprocedural aspects oriftheyshould orcould extend tomatters entailing possible
changes innotification obligations. Asnoted intheGroup 's1995 report totheCouncil forTrade in
Goods (G/L/30, paragraph 2),itwasconsidered thattheGroup could undertake itswork withwide
scope tomake whatever recommendations itfeltappropriate within theterms ofreference ofthe
Ministerial Decision. Asisborne outinthefollowing sections, however, therecommendations of
theGroup donotextend tothesubstantive aspects ofthenotifications, which theGroup considered
bestserved bytherespective committees.
5. Inlaunching itswork, Members wererequested toprovide written inputs identifying problems
andsuggestions, bothofageneral nature andwithrespect toparticular agreements. TheChairman
undertook tocontact thechairpersons ofvarious committees withaninterest intheGroup 'swork, to
encourage them toinform theGroup ofareas which itcould usefully examine. Following replies
received, theChairman observed atthemeeting inOctober 1995thatthecommittees werewellaware
oftheimportance anddifficulties inthenotification requirements andwereactively working towards
anefficient system ineachoftheirrespective areas ofresponsibility. Forthepurposes ofthisGroup,
however, hesuggested thatahorizontal approach across allAnnex 1Aagreements, would bethemost
productive. Forthis,ashadbeensuggested, identification ofareas forexamination would haveto
originate withMembers directly. Theindividual Members wereexposed tonotification demands across
thewhole spectrum, while thecommittees werefocusing, quite rightly, onlyontheirspecific areas
ofresponsibility.
6. Toassist theGroup initswork, theSecretariat prepared threepapers intheearlystages: (i)a
background noteonnotification procedures intheGATT since 1979; (ii)acomprehensive listof
notifications required fromWTO Members under agreements inAnnex 1AoftheWTO Agreement;
and(iii)information onformats fornotifications under thecovered agreements.6
7. TheGroup 'swork consisted basically ofthree phases: thefirstentailed thedevelopment of
aninventory ofthose notification obligations orprocedures where Members considered thatproblems
might exist. Thiswasaddressed atthethree meetings in1995. Thesecond phase, forthefirsthalf
of1996, wasdedicated toadetailed examination ofthese possible problem areas. Thiswasfollowed
bythethirdphase, inSeptember-October 1996, when thepresent report wasprepared andtheGroup 's
recommendations formulated.
5Document G/C/M/8, paragraphs 6.1-6.3.
6Alistofalldocuments provided totheGroup iscontained inAnnex II.G/L/112
Page3
8. Atitsfirstmeeting theGroup heard apresentation, forinformation purposes, onthe
implementation andoperation oftheCentral Registry ofNotifications, created under PartIIofthe
Ministerial Decision. Updates wereprovided attheGroup 'smeetings inOctober andNovember 1995.
III. Overall Observations
9. While thedetails ofthespecific work conducted bytheGroup, along withitsobservations
andrecommendations, aresetoutinSections AtoFbelow, theGroup considered thatthefollowing
overall observations should bebrought totheattention oftheCouncil forTrade inGoods.
10. Attheoutset oftheGroup 'swork, delegations emphasized thatacredible notification process
wasessential fortheeffective operation oftheWTO. Difficulties experienced inthepastwithrespect
tonotification requirements could becompounded inthefuture bytheincreased obligations onMembers
resulting fromtheUruguay Round. Therefore, itwasimportant thattheWorking Group address aspects
ofthenotificationandcounter-notificationprocesswithaviewtoimprovingcompliancewithobligations,
while alsoseeking torationalize requirements andavoid duplication. Some stressed, however, that
initsefforts towards suchgoals, theGroup should notlosesightoftheobligations andobjectives in
thevarious agreements andthespecific information required fortheproper functioning ofindividual
committees. Furthermore, theoverall contribution ofthenotification process toimproved transparency
andeffective surveillance oftrade policies andpractices should notbecompromised.
11. Anumber ofdelegations wereconcerned thatitwould bedifficult toconduct acomprehensive
examination ofthenotification situation atapoint intimewhen Members hadonlylimited experience
intheoperation ofthenotification system under theWTO. Itwasnoted thatsince theentry intoforce
oftheWTO on1January 1995, littlepractical experience hadbeengained inboththepreparation
ofnotifications andtheirexamination intherelevant Committees. Insome respects, therefore, the
work oftheGroup wasseenasbeing premature, lacking abroad overview oftherealdifficulties
Members would experience incarrying outtheirnotification obligations. Thissituation would require
thattheGroup examine thenotification obligations andarrive atconclusions andrecommendations
forimprovements more onthebasisoftheory thanfrompractical experience. Inthese circumstances,
itwould bedifficult toachieve thecompromises needed toharmonize procedures incertain areas.
12. Withrespect totherelationship withother committees, itwasalsopointed outthatthisGroup
might havecertain limitations inexpertise when itcame toexamining thespecific ortechnical details
ofthenotification obligations ineachoftheagreements inquestion. Ontheother hand, theGroup
could provide input fromitsmore detached andglobal perspective which individual committees might
lack. TheGroup might, therefore, identify problems andmake recommendations astotheapproach
orprocesses under which specific problems might bedealtwith, leaving theactual work ofredressing
thespecific problems, taking noteoftherecommended approach, totherelevant committees themselves.
Theviewwasgenerally shared thatthere wasnooverlap ofjurisdiction between theGroup andthe
committees, whose respective responsibilities andperspectives differed innature.
13. TheGroup observed thatthere werethree types ofnotification obligations andprocedures in
Annex 1A:(i)adhocnotifications which arespecifically required when certain actions aretaken by
aconcerned Member; (ii)"one-time only" notifications, most ofwhich arerequired toprovide
information onthesituations existing attheentry intoforce oftheWTO Agreement foraMember,
orwithin aspecified period calculated from thatdate; and(iii)theregular orperiodic notification
obligations (semi-annual, annual, biennial, triennial). Ofthe175notification obligations orprocedure
found inAnnex 1A,twenty-six were deemed tobeoftheregular orperiodic type. Inlightofthe
ongoing nature ofthese obligations andprocedures, theGroup focused particular attention initswork
onthese provisions.G/L/112
Page4
14. IntheGroup 'sexamination ofthespecific notification obligations andofthequestionnaires
andformats usedtopresent therequired information, thekeytopics werethepotential foroverlapping
orduplication inthenotification obligations andthepossibilities forsimplifying orstandardizing the
various questionnaires andformats. After much examination anddiscussion, theGroup found that
duplication inthereporting requirements wasnotawidespread phenomenon. Indeed, onlyinthecase
oftheAgreement onAgriculture andtheAgreement onSubsidies andCountervailing Duties wasthere
sufficient scope forelaborating arecommendation forchange. Inallother cases theduplication was
either minor initsextent orrelated toone-time notifications which didnotwarrant change.
15. TheGroup alsofound thatthere waslittle scope, atthispoint intime, toimprove the
questionnaires andformats which hadbeendeveloped, inmany cases, veryrecently through negotiations
intheUruguay Round. Furthermore, thehighly technical nature oftherequirements intheagreements
convinced many participants thatchanges should beinitiated anddeveloped within therespective
committees where thegreatest technical expertise andsensitivity resided. Inthisregard, theGroup
noted thatsuch work wasproceeding inmany committees astheydeveloped neworamended
questionnaires andguidelines, andelaborated theirindividual reporting processes. Itbecame clear
thatthecommittees wereveryactive inthisarearendering lesscritical theneedfortheGroup tomake
recommendations.
16. AstheGroup expanded thescope ofitsdiscussions, particularly inthelatter stages ofitswork,
itbecame increasingly aware oftheimportance oftwoother topics -improvement intherateof
compliance withnotification obligations andtheneedforassistance inthisregard tosome developing
country Members. Increasingly itwasrecognized thatmuch work needed tobedone toimprove
compliance rates inallagreements, toensure theefficient operation oftheagreements, toensure
maximum transparency andtobring allMembers fullyintothefunctioning oftheWTO system.
17. Itwasfurther recognized thatthekeytoimproved ratesofcompliance, atleastwithrespect
tocertain developing country Members, wasextensive andcarefully focused technical assistance in
anumber offorms. Aconcerted effort from three sides wasconsidered toprovide thebestmeans
ofproviding thisassistance: (i)intensive training toinform Members oftheirobligations; (ii)guidance
insetting upsystems inthedomestic administration tochannel theobligations andtheresponses; and
(iii)apractical handbook toprovide detailed information onthepreparation ofnotifications.
IV. TheIndividual Areas ofExamination
18. Inthefirstyear, fourbroad areas wereidentified bytheGroup where problems might exist,
namely:(a)duplicationoroverlappingincertainnotificationobligations;(b)thescopeforsimplification
ofdatarequirements andthestandardization offormats; (c)thepossibility tocoordinate thetiming
aspects ofthereporting processes (uniform periodicity); and(d)theneedofsome developing country
Members forassistance inmeeting theirnotification obligations;
19. Asmentioned intheChairman 'sinformal updating report totheCouncil forTrade inGoods
on19March 19967,discussion ofafurther issue, i.e.thequestion ofimproving Member 'scompliance
withthenotification obligations, wasatthatpoint intimeinitsearly stages. Yetafurther issue, i.e.
thestatus ofnotification obligations established pursuant toDecisions oftheGATT 1947
CONTRACTING PARTIES, wastaken upasofApril 1996.
7Thetextofthisreport isre-printed asanAnnex todocument G/NOP/6.G/L/112
Page5
20. Thepoints raised intheGroup 'sexamination ofthese sixareas, along withitsconclusions,
observations and,where considered appropriate, recommendations aresetoutinthefollowing six
sections.
Section A: Duplication orOverlapping inCertain Notification Obligations
21. Participantsidentifiedfoursetsofagreementswheresomeelementsofduplicationoroverlapping
mightexist.Thesewere:(i)AgreementonTrade-RelatedInvestmentMeasures(TRIMs)andAgreement
onSubsidies andCountervailing Measures; (ii)Agreement onAgriculture andAgreement onImport
Licensing Procedures; (iii)Agreement ontheApplication ofSanitary andPhytosanitary Measures
(SPS) andAgreement onTechnical Barriers toTrade (TBT); and(iv)Agreement onAgriculture,
Agreement onSubsidies andCountervailing Measures andArticle XVIofGATT 1994.
(i) Agreement onTrade-Related Investment Measures (TRIMs) andAgreement onSubsidies
andCountervailing Measures (Subsidies Agreement)
22. Asregards thepossible duplication oroverlapping intheTRIMs andSubsidies Agreements,
itwasnoted thattheSubsidies Agreement prohibited specific subsidies ofatypewhich might have
aparallel intheTRIMs Agreement, namely those subsidies which were contingent upon theuseof
domestic overimported goods (Article 3.1). These could notbegranted ormaintained under the
Subsidies Agreement although special provisions initsArticle 27.3indicated thatthisprohibition need
notbeapplied forfiveandeight years toLDCs andLLDCs respectively. IntheTRIMs Agreement,
theAnnex pointed tocertain measures thatwereinconsistent withthenational treatment obligations
inGATT Article III:4andwhich might beofasimilar nature tothose covered bytheSubsidies
Agreement.
23. TheGroup noted, however, thattheTRIMs notification inthisregard wasaone-time obligation
andwasduewithin 90daysoftheentry intoforce oftheWTO followed bytheelimination ofany
measures notinconformity withtheAgreement within twoyears (fiveforLDCs andseven forLLDCs).
Atthetimeoftheexamination ofthismatter, the90-day period hadelapsed forsuchnotification while
fornewMembers theobligation would remain, butasaone-time onlyrequirement.
24. TheGroup concluded thatwhile these TRIMs measures could bemaintained bysome
Members forcertain periods oftime, theywould havetobenotified onlyononeoccasion under
thisAgreementandalthoughsomeelementofduplicationwiththeSubsidiesAgreementwaspresent,
there would belittle purpose intheGroup taking steps toaddress non-recurring duplication.
Nofurther action bytheGroup wasconsidered necessary.
(ii) Agreement onAgriculture andAgreement onImport Licensing Procedures
25. With respect tothepotential forduplication between theAgreement onAgriculture andthe
Agreement onImport Licensing Procedures, itwasnoted that,pursuant toArticle 7.3ofthelatter
Agreement, Members wererequired tocomplete theannual questionnaire andsubmit ittotheCommittee
onImport Licensing by30September eachyear. Thisquestionnaire required Members toprovide
adescription oftheirimport licensing system, itspurposes, coverage andprocedures andallrelated
conditions anddocumentation. Changes toaMember 'ssystem made intheinterim weretobereported
onanadhocbasis. Under theAgreement onAgriculture itwaspossible foraMember toestablish
alicensing system aspartofatariff orother quota allocation programme. Fullnotification ofany
suchquota administration system wasrequired ona"one-off" basisin1995withanysubstantial changesG/L/112
Page6
inthesystem being notified adhoc. Thespecific informational requirements fornotifications under
theAgreement onAgriculture were summarized indocument G/AG/2.
26. Thisexamination generated discussion ofthebroader question whether agriculture tariff rate
quota systems withimport licensing procedures needed tobeincluded ingeneral notification obligations
oftheAgreement onImport Licensing Procedures. Oneview wasthatsince theimport licensing
questionnaire wasall-inclusive, alllicensing schemes,no matter whattheirsource, needed tobeincluded
inthenotifications tothatCommittee. There werenoprovisions ineither Agreement foranexclusion.
Anotherviewwasthatundertariffratequotas,wheretheimporterwasfreetomakeout-of-quotaimports,
thequota allocation wasnotaprior condition forimports andwasnotcovered bytheAgreement on
Import Licensing Procedures. Onthislatter basis, there would benooverlapping between thetwo
Agreements.
27. While bearing thisinmind, some participants wereoftheviewthattheactual extent ofoverlap
intheareas ofAgriculture andImport Licensing wasminimal. Theviewwasalsoexpressed thatthe
overlap between theAgriculture andImport Licensing Agreements reflected alegaldifference which
could entail aninterpretation ofthenotification obligations themselves. Itwasquestioned ifsuchmatters
were appropriate tothisGroup orrather should belefttotherespective committees.
28. Inconsidering allofthese points, theGroup concluded that, inthese particular
circumstances, efforts toremove thepossible duplication were notwarranted. Nofurther action
bytheGroup wasconsidered necessary.
(iii) Agreement ontheApplication ofSanitary andPhytosanitary Measures (SPS) and
Agreement onTechnical Barriers toTrade (TBT)
29. TheGroup noted thattheTBTAgreement required notification ofproposed neworchanged
technical standards orregulations, while theSPSAgreement required thatMembers notify proposed
neworchanged sanitary orphytosanitary regulations which could significantly affect trade. Provisions
alsoexistinbothforemergency actions tobesubsequently notified. TheGroup alsoobserved that
thenotification formats andtheprocedures agreed byboththeTBTandtheSPSCommittees were
veryclosely aligned inrecognition ofthefactthatoften thesame officials were responsible for
notifications under bothagreements andthetypeofinformation requested wasalsosimilar. Itwas
clearthatthere wasthepossibility ofsome overlap inthatasingle regulation might contain elements
which were relevant totheSPSAgreement andother elements which were relevant under the
TBTAgreement. However, bothCommittees hadcommitted tocoordinate closely inthisrespect and
towork withthegovernments concerned tolimitanyduplications.
30. Infact,thepotential foroverlap between TBTandSPSnotifications haslongbeenrecognized
andinNovember 1995ajointmeeting ofthetwocommittees washeldtoexamine notification problems
(G/TBT/W/16andG/SPS/W/33).Todealwithinstanceswhereanotificationcontainedelementsrelevant
tobothTBTandSPS,twosuggestions wereadvanced: aMember could submit asingle notification
totheSecretariat tobecirculated asbothanSPSandTBTCommittee document butclearly indicating
therespective SPSandTBTelements oftheproposed regulation, orMembers could separate thesubject
matter intoindividual notifications fortheSPSandTBTCommittees eachcontaining onlytherelevant
information.
31. After examination ofthepossible duplication, theGroup wasoftheviewthatthesubject matters
andoperation ofthese twoagreements were clearly intended tobekeptseparate. Article 1.5ofthe
TBTAgreement states thattheprovisions ofthatagreement donotapply tosanitary andphytosanitary
measures asdefined inAnnex AoftheSPSAgreement. Some participants alsofelttheproblem wasG/L/112
Page7
being resolved overtimeasMembers became more familiar withtheoperation ofthetwoAgreements,
andthetwoCommittees were aware oftheproblem andhadbeenjointly working toresolve it.
32. Accordingly, theGroup concluded thattheproblems encountered inrespect ofthese two
Agreements were more inthenature ofapossible confusion astowhich Agreement should be
invoked inmaking thenotification, thatis,wasthematter being notified asubject appropriate
totheSPSorTBT Agreements? Itwasnotconsidered tobeaquestion ofduplication, buta
"mechanical" problem, withthedistinction between thereporting processes ofthesetwoagreements
beinggenerallyunderstoodbyMembers.NofurtheractionbytheGroupwasconsiderednecessary.
(iv) Agreement onAgriculture andAgreement onSubsidies andCountervailing Measures
(Subsidies Agreement)/Article XVIofGATT 1994
33. From theoutset, itwasrecognized thatthereweredifferences intheobjectives ofthenotification
procedures ofthese agreements. IntheAgriculture Agreement, theobjective ofsubsidy notification
wastoensure compliance withthereform programme which waslargely based onquantitative
measurements while intheSubsidies Agreement andArticle XVIofGATT 19948,thenotifications
procedures hadtheobjective ofsetting outlegal, economic andother qualitative information related
tothecommitments themselves. Itwasconsidered thatitmight bepossible towork towards adegree
ofunification inthenotification formats, andperhaps acommon format. Itwasstressed thatcaremust
betaken toensure thatefforts toarrive atacommon format inthisareawould nothavetheeffect of
exempting certain products orsubsidies fromnotification. Onebenefit ofeliminating duplication would
betoencourage broader fulfilment ofthese notification requirements byallMembers.
34. After lengthy discussion ofpossible approaches tothisquestion, NewZealand provided apaper
(G/NOP/W/7) which setoutthreeoptions onhowtoapproach thequestion ofduplication/overlapping
inthenotification ofagricultural subsidies. Thefirstoption wasthatnochange should bemade to
thepresent arrangements; rather, theGroup could decide toreview thearrangements ataspecified
dateinthefuture when Members would havehadtheexperience ofafullcycle ofnotifications intheir
present format. Thesecond option foresaw thedevelopment ofarevised notification format for
agricultural subsidies which would merge thetwocurrent setsofobligations, resulting inonesingle
notification format meeting therequirements ofallthree Agreements. Thethirdoption would start
withtheAgriculture Agreement notification format andaddtoittheadditional qualitative information
required bytheSubsidies Agreement notification format torespond totheneeds ofallthreeAgreements
through oneformat.
35. Intheensuing discussions, someparticipants indicated apreference forthefirstoption ofmaking
nochange tothepresent formats atthistime. They considered thatitwastooearly toundertake a
review ofthenotification process without theexperience ofafullcycle ofSubsidies andAgriculture
notifications; some Members hadnotyetsubmitted their Subsidies Agreement orArticle XVI
notifications andmany Agriculture Agreement notifications were dueonlylaterin1996. Some
considered thattheGroup didnothaveenough basic information tomake reliable judgements or
recommendations inthismatter. Others wereoftheviewthatthepresent notification requirements
hadnotpresented serious problems; thattheagreements didnothaveextensive specific overlapping;
andtherefore, theydidnotwarrant substantive changes.
8Notifications required byArticle XVI:1 ofGATT 1994 arecurrently subject tothequestionnaire format
developed bytheCommittee onSubsidies andCountervailing Measures (G/SCM/6).G/L/112
Page8
36. Other participants, however, considered thatoptions twoandthree presented agoodbasisfor
asubstantive discussion intheGroup. Itwasstressed thatasingle notification format foragricultural
subsidies would simplify theadministrative process byremoving thedouble collection ofinformation
onthesame programmes. There were anumber ofdescriptive orinformation requirements inthe
Subsidies format which could beaccommodated intheformat adopted fortheAgriculture Agreement,
suchasthetitlesoftheprogrammes andinformation ontheiroperation. Itwasconsidered worthwhile
toexamine thepossibility ofadding these totheAgriculture format toarrive atasingle notification
whilenotchangingthetransparencyofsubstantiveobligationsoftheAgreementsconcerned.Inaddition,
theUnited States suggested inapaper (G/NOP/W/8) thattheGroup consider theelimination of
requirements toprovide information onsubsidy perunitandtrade effects ofagricultural subsidies,
except where information isreasonably available forcommodity-specific programmes.
37. Toillustrate itssuggestions, theUnited States provided apaper (G/NOP/W/10) which started
withtheexisting notification requirements relating todomestic support andexport subsidies under the
Agreement onAgriculture andadded anumber ofquestions under thecolumns which required
descriptions ofpolicies. These questions were taken from thenotification requirements under the
Subsidies Agreement andArticle XVIofGATT 1994. Theobjective wastocombine thestatistical
features oftheAgriculture Agreement notifications withthedescriptive elements oftheSubsidies
requirements. Thiswould provide afuller explanation ofsubsidy policies inbothaquantitative and
contextual basis. Theproposal would apply onlytosubsidies covered bythecurrent agricultural subsidy
notifications;othertypesofsubsidieswouldremainsubjecttothenotificationproceduresoftheSubsidies
Agreement andArticle XVIofGATT 1994.
38. TheEuropean Community alsointroduced apaper (G/NOP/W/11) which went inthesame
direction asthatoftheUnited States starting withtheAgriculture format andsupplementing itwith
details from theSubsidies format. They considered thattheduplication inthese requirements could
beavoided bycreating asingle format which would beapplicable onlytoagricultural subsidies.
39. Anumber ofparticipants, including Argentina (G/NOP/W/12), commented ontheseproposals.
Inparticular, theystressed thatthegoalofanyrecommended modifications tothenotification formats
should betomeetalloftheinformational requirements oftheAgreements concerned while removing
thereporting duplication. However, simplification mustnotentail changes inthenotification obligations
themselves, norimpair theachievement oftheobjectives oftheAgreements. They observed thatthe
proposal oftheUnited States, assupported bytheEuropean Community, would involve modifications
toelements found intheSubsidies Agreement.
40. Thequestion oftiming under aunified format wasalsoexamined. Itwasstressed thatthe
proposed revisions tothenotification formats would notalterexisting deadlines. Members would
continue tobesubject tothevarious deadlines fornotifications inboththeAgreement onAgriculture
andtheSubsidies Agreement, andthose established bytheCommittees. Members could usetheformats
tonotify measures totheCommittee onAgriculture according totheintervals determined bythat
Committee inG/AG/2 (according tocropyear, marketing year, etc.), andcould submit thesame
notifications totheSCM Committee nolaterthan30Juneofeachyeartosatisfy thenotification
obligations andprocedures oftheSubsidies Agreement.
41. After extensive discussion, theChairman undertook toprepare atextfortheGroup 's
consideration, drawing onthese proposals andthepoints raised intheGroup 'sdiscussions. Hisdraft
text(G/NOP/W/15) contained notification formats formeasures thatweresubject tothenotification
obligations andprocedures ofboththeAgreement onAgriculture, ontheonehand, andtheAgreement
onSubsidies andArticle XVIoftheGATT 1994, ontheother. Certain supporting tables adopted
bytheCommittee onAgriculture (G/AG/2) were modified sothataMember could usetheformats
adoptedbytheCommitteeonAgriculturetosatisfytheexistingrequirementsinthatAgreement(G/AG/2)G/L/112
Page9
aswellastheelements setforth inArticle 25.3oftheSubsidies Agreement, Article XVIofthe
GATT 1994 andtherelevant portions oftheformats adopted bytheCommittee onSubsidies and
CountervailingMeasures(G/SCM/6).Nootherrevisionstothesedocumentswereproposedandnothing
wasdeleted from thedocuments. TheChairman noted thattheadoption ofthese revised documents
would notsuggest thatthescope ofreview oftherelevant Committees hadbeenmodified. Some of
theinformation inthenewformats would notberelevant under theprovisions ofalloftherelevant
agreements anditwasclearthateachCommittee would berequired toexamine onlytheinformation
falling within itsmandate.
42. TheChairman 'sTextwaspresented attheJuly1996 meeting andwasexamined indetail at
theSeptember meeting.
43. TheWorking Group recommends thattheCouncil forTrade inGoods request the
Committee onAgriculture toconsider themodified notification formats contained inthedraft
revision todocument G/AG/2, assetoutindocument G/NOP/W/15 andthattheCouncil forTrade
inGoodsrequesttheCommitteeonSubsidiesandCountervailingMeasurestoconsiderthemodified
notification formats contained indraft revision todocument G/SCM/6, assetoutindocument
G/NOP/W/15. Both Committees should consider themodified notification formats withaview
toachieving greater coherence andefficiency inthenotification system.
Section B: TheScope forSimplification ofData Requirements andtheStandardization of
Formats
44. TheGroup noted thatquestionnaires andformats hadbeendeveloped boththrough theUruguay
Round negotiating process andthrough thework ofsome committees tofacilitate thepresentation of
theinformation required tobenotified. Inthisregard thequestions raised intheinitial consideration
ofthistopicwere: (i)ifanyoftheseformats wentbeyond theobligations oftheagreements concerned;
(ii)iftherewereanyfurther areaswhich would lendthemselves tostandardized formats; and(iii)could
formats bedeveloped suchthatonesubmission could respond totherequirements ofmore thanone
agreement. Toassist these discussions, theSecretariat prepared alistofallagreements forwhich
notification formats hadbeendeveloped (G/NOP/W/3).
45. There wasconcern inexamining thistopicthatchanges toformats would require bothtechnical
expertise onthenature andgoaloftheagreement itself aswellasasensitivity tothenegotiation
background oftheexisting formats. Hence thesuggestion wasmade thatpossible improvements under
thistopicshould betheresponsibility oftherespective committees which possess thespecific technical
expertise. Itwasstressed that,ataminimum, thisGroup should notpropose tomodify formats without
theconsideration andinput oftheconcerned committees.
46. Itbecame clearthrough several months ofexamination andreflection thatitwould notprove
fruitful forthisGroup toconduct adetailed examination ofalltheindividual formats andquestionnaires
currently being usedinthevarious committees. Accordingly, itwasdecided thattheChairman should
sendanotetothechairpersons ofthecommittees inthe"goods" areaindicating thatthese issues had
beendiscussed intheWorking Group andwould continue tobeconsidered, butthatitmight beuseful
tohavethese questions examined intherelevant committees aswell. Subsequently, anumber of
responses werereceived indicating thatthecommittees wereconsidering, asanongoing responsibility,
thevarious aspects ofthequestionnaires andformats, adapting existing onesascircumstances warranted
and,insome cases, developing newones.G/L/112
Page10
47. Toassist theGroup initsefforts tomaintain anawareness ofthework which wasbeing done
inthevarious committees onthistopic, theSecretariat assembled anoverview ofsuchdiscussions
drawing upon committee meeting reports orminutes (G/NOP/W/13).
48. Intheabsence ofanyfirm proposals under thistopic andrecognizing thatseveral
committees wereactively working toimprove theirownsystems, theGroup decided thatnofurther
action wasnecessary.
Section C: Coordination ofTiming Aspects oftheReporting Processes
49. Itwassuggested thattheGroup could usefully examine thescope forimprovements inthetiming
aspects ofthenotification process astheoverall burden ofpreparing, submitting andreviewing
notifications might beeased ifthese obligations werenotgrouped atcertain times butwerestaggered
overthefullyear.
50. Toassist theGroup inthisdiscussion, theSecretariat prepared adocument (G/NOP/W/5) setting
outthetiming aspects ofthenotification requirements intheagreements inthe"goods" area. Itwas
found thatthere were175suchnotifications comprising 106adhocrequirements whereby aMember
wasobliged tosubmit anotification onlyifaspecific action wastaken and43one-time onlyobligations,
mostofwhich related totheimplementation oftheagreements in1995oruponaccession. There were
alsoafurther 26regular orperiodic requirements (3semi-annual, 17annual, 3biennial and3triennial).
51. TheGroupexaminedtheregularnotificationswithspecificreportingdates,andnotedinparticular
thatthedates setoutintheagreements hadparticular relevance totheobligations ofeachparticular
agreement andtotheneeds oftherespective committees. Itwasconsidered thatthiswasnotaquestion
forseparate examination butmight bemore appropriately included intheGroup 'sexamination oftwo
othertopics, duplication/overlapping andsimplification/standardization. Itwassuggested thatinmaking
proposals onthese twotopics, consideration ofthetiming aspects should bebuiltintosuchproposals
rather thantheirbeing dealtwithasastand-alone item.
52. Onthisbasis, theGroup decided nottopursue thetopic oftiming asaseparate matter.
Section D: TheNeed ofSome Developing Country Members forAssistance inMeeting their
Notification Obligations
53. Opening theconsideration ofthisitem, some developing country participants pointed outthat
inview oftheever-increasing workload, combined withlimited resources inthesmall delegations,
theyhadgreat difficulty inadvising theirgovernments onallaspects ofthenotifications required.
Many developing countries haddifficulty understanding thefrequently complex andhighly technical
information demanded, andtherefore faced aprohibitive taskinproviding complete responses tothe
notification requirements andformats. While theyrecognized thatthesenotifications werepartoftheir
Membership obligations andtheywereprepared torespond tothemaximum oftheirabilities, there
wereserious constraints towhattheycould achieve duetotheirlimited resources. Inthisregard it
wasrecognized thattheWTO Technical Co-operation andTraining Division wasaware oftheproblem,
haddeveloped twoworkshops fordelegations onthisspecific topicin1995and1996andwould continue
toprovide assistance onnotification obligations through theirseminars andother programmes. More
generally, theGroup noted thattheCommittee onTrade andDevelopment wasintheprocess ofdrawing
upguidelines forthetechnical cooperation activities oftheWTO astheyrelate todeveloping country
Members.G/L/112
Page11
54. Asparticipants considered thespecific needs ofthedeveloping, andparticularly oftheleast-
developed country Members, anumber ofquestions wereraised including: whether some additional
forms ofspecial anddifferential treatment inrespect oftheobligations themselves should beconsidered
orifgreater technical assistance tomeettheexisting obligations would bethemostappropriate. With
respect totheformer, itwassuggested thatsimplified formats might bedeveloped forthedeveloping
countries withmore detailed information being provided tothecommittees onlywhen requested. In
some situations, prolonged time-frames might beconsidered.
55. Some participants didnotfavour suchapproaches, considering thattheinformation intheagreed
formats reflected theobligations which allMembers hadundertaken andwere vitaltotheefficient
operation oftheagreements andtomaintain fulltransparency. Itwasalsonoted thatseveral agreements
already included special considerations fordeveloping orleast-developed country Members, particularly
asregards time-frames fortheapplication ofsubstantive obligations.
56. Another ideawasthatexplanatory commentaries should beprepared foreachagreement on
howtocomplete thequestionnaires/formats. Inthisconnection, theGroup agreed thatthetechnical
cooperation programmes oftheWTO wereasound vehicle forassisting developing countries inmeeting
theirnotificationobligations.Particularreferencewasmadetothetwonotificationworkshopsmentioned
above, andtoseminars which werebeing heldonthistopic intheregions. Itwassuggested that,to
maximize theeffectiveness ofthese programmes, theyshould notbe"one-off" seminars butfollowed
upandbroadened.
57. Aformal proposal made byChile andNorway wasthatapractical handbook ormanual should
bedeveloped setting outthenotification obligations, questionnaires orformats, guiding theMembers
through theinformation required tocomplete thesubmissions. Onthebasisofthisproposal, theGroup
expanded theconcept further leading tothedevelopment ofafive-part draftdocument which would
contain (i)adescription ofthenotification obligations intheagreement based onthepresentations made
bytheSecretariat staffattheFebruary 1996workshop; (ii)alistofthespecific notification obligations
intherespective agreements drawn from document G/NOP/W/2/Rev.1; (iii)alldocuments issued
bythecommittees containing questionnaires, formats andguidelines foreachagreement; (iv)mock
examples offullycompleted notifications; and(v)thetextoftherelevant agreement. Aseparate,
loose-leaf handbook would beprepared foreachagreement onthisbasis. Toassist theGroup, amodel
ofthehandbook fortwoagreements wasprepared bytheSecretariat. Itwasfurther agreed thatthe
handbook would include adisclaimer tomake itveryclearthatitwasnotalegalinterpretation ofany
agreement butwasapractical tooloftheWTO technical assistance programme. Thehandbook would
beprovided totheChairmen ofvarious committees fortheirinformation andinput.
58. Asthediscussions proceeded andthehandbook tookshape, many delegations commented that
suchahandbook could prove sohelpful thatitshould notbedelayed several months untiltheformal
conclusions oftheGroup 'swork programme, inparticular since theWTO Secretariat could undertake
suchwork anyway within itsresources. Indeed, many delegations desiring tomeettheirnotification
obligations hadalready beenseeking technical assistance inthisarea. TheGroup noted thatnoMember
appeared tohavedifficulty withtheconcept ofapractical handbook, andthatthere wasinfactbroad
agreement onitsstructure andcontents. TheGroup wasalsoinformed ofwork underway along similar
linesintheTechnical Co-operation andTraining Division inresponse torequests from Members.
59. TheGroup recognized (a)theconsiderable information made available through the
notificationseminarswhichhadbeenarrangedbytheSecretariatandencouragedtheircontinuation
onaregular basis; and(b)thebenefit apractical handbook would provide tomany Members
andsupported theinitiatives toprepare andcirculate itassoon aspossible. Itwasnoted that
these activities were being carried outbytheTechnical Cooperation andTraining Division asG/L/112
Page12
partofthatDivision 'sregular work programme. Thehandbook would beupdated, asnecessary,
bythatDivision.
60. TheGroup wassubsequently informed thatthefirstportion ofthehandbook containing
information onfouragreements (Rules ofOrigin, Textiles, SPSandTBT) hadbeencirculated toall
Members; thesecond portion containing information onsixfurther agreements wasbeing translated
andwould becirculated assoonaspossible; andinformation ontheremaining agreements wasunder
preparation.
61. Onesuggestion advanced wasthatindustrialized countries could provide direct assistance to
developing countries byexchange ofvisits oftechnical experts todiscuss withandassist developing
country Members inthepreparation ofresponses tonotification obligations. After discussion onthe
possible modalities ofsuchanexchange programme, itfound littlefavour andwasnotpursued.
Section E: TheStatus ofNotification Obligations Established Pursuant toDecisions ofthe
GATT 1947 CONTRACTING PARTIES
62. TheGroup examined thelistofnotification obligations indocument G/NOP/W/2/Rev.1,
section II(b), which were created byDecisions oftheGATT 1947 CONTRACTING PARTIES. It
wassuggested thatsomeoftheseCONTRACTING PARTIES Decisions might beredundant orobsolete
inthecurrent situation. Those cited were: (a)Items 2,3and4onpages 48and49of
G/NOP/W/2/Rev.1 onCPsDecisions relating toQuantitative Restrictions andNon-tariff Measures
whichappeartobesupersededbytheCouncilforTradeinGoodsDecisionsof1December1995(G/L/59
andG/L/60); (b)Item6,alsoonpage49,onImport Licensing Procedures which appears tobe
superseded bytheWTO Agreement onImport Licensing Procedures plus thenew
Questionnaire (G/LIC/3); (c)Item8onpage50onMarks ofOrigin (GATT Article IX)forwhich,
according tothenotesinthe1995edition oftheGATT Analytical Index, therehavebeennosubmissions
since 1961; and(d)Item12onLiquidation ofStrategic Stocks which dates backtoaCPsDecision
in1955.
63. Thequestions posed under thistopicwere(i)aretheseobligations nowredundant orobsolete;
(ii)arethere anyothers; (iii)iftheyareredundant orobsolete howshould theybeaddressed; and
(iv)whatlegalprocess should befollowed.
64. TheGroup wasoftheviewthattheCPDecisions inpoint (a)above mayhavebeensuperseded
bytheprocedures adopted aftertheentry intoforce oftheWTO Agreement andconsidered thatthey
should beexamined ingreater detail. TheGroup decided thattheCPsDecision inpoint (b)above
wasclearly superseded bytheprocedures adopted aftertheentry intoforce oftheWTO Agreement
andtheearlier Decision could nowbeproposed fordeletion. TheCPsDecisions inpoints (c)and
(d)above were possibly obsolete buttheneedtocontinue tomaintain these notification obligations
would havetobeexamined ingreater detail.
65. Accordingly, theWorking Group recommends thattheCouncil forTrade inGoods request
theGeneral Council totakethenecessary steps toeliminate thenotification obligations inthe
Decisions oftheGATT 1947CONTRACTING PARTIES relating toimport licensing procedures
(L/3756 andSR/28/6). TheGroup further recommends thattheCouncil forTrade inGoods refer
theDecisions oftheGATT 1947CONTRACTING PARTIES relating toquantitative restrictions
andnon-tariffmeasures(BISD32S/92-93andBISD31S/227-228),MarksofOrigin(BISD7S/30-33)
andLiquidation ofStrategic Stocks (BISD 3S/51) totheappropriate bodies forfurther
consideration.G/L/112
Page13
Section F: Improving Members 'Compliance withNotification Obligations
66. Thegoalofimproving thecompliance withthenotification obligations andprocedures under
Annex 117wasrecognized asakeyresponsibility ofallMembers tomaximize transparency oftrade
policies andmeasures. Accordingly, theGroup considered thatthequestion ofcompliance deserved
verycareful examination asittouched upontheveryfunctioning oftheWTO system. Toconsolidate
thegains oftheRound, eachandevery agreement must befullyandfaithfully implemented. That
requires verydetailed monitoring bytheresponsible committees andcouncils which, inturn, could
onlybeachieved ifthere issufficient transparency -which means compliance withthenotification
obligations.
67. Toassist theGroup inexamining thisitem, theSecretariat prepared twopapers -G/NOP/W/9
which setoutgeneral information onthevolume ofnotifications received uptomid-February 1996
withsomeanalysisofthedegreeofcompliance,andG/NOP/W/14whichlistedtheperiodicandone-time
obligations andthenotification situation inthisregard ofeachindividual WTO Member.
68. Theexamination ofthesituation incompliance asreported indocument G/NOP/W/9 involved
theexamination ofover1500 notifications received inthefirstfourteen months oftheWTO. Itrevealed
thatover 40percent ofallnotifications were oftechnical regulations under theTBT and
SPSAgreements. Thenextlargest quantities ofnotifications wereintheareasofsubsidies (10percent),
textiles (9percent), anti-dumping (8percent), safeguards andrulesoforigin (6percenteach). What
wasalsoimportant, over80percentofthenotifications received were either adhoc(required only
when aspecific action wastaken) orone-time only(usually inrelation toentry intoforce ofthe
agreements). Therefore, onlyabout 18percentofallnotifications received wereregular orperiodic.
Theexact ratesofcompliance withtheone-time andperiodic notification obligations weresometimes
difficult tocalculate asnotallMembers were obligated toprovide allnotifications atthattime;
nevertheless, itwasclear thatcompliance ratesvaried greatly andfewexceeded 50percent.
69. Among thequestions raised inthediscussions ofthistopic: (i)wasthere alinkbetween the
volume ofnotifications tobemade byMembers andthedegree ofcompliance; (ii)didthecomplexity
ofthequestionnaires/formats reflect oncompliance rates; (iii)could thetiming ofnotifications affect
compliance; and(iv)could specific obligations thatattract aloworforthatmatter ahighcompliance
ratebeidentified? Although there were noclear replies tothese questions, thediscussion brought
outseveral points.
70. Anumber ofopinions were advanced astowhycompliance rateswere low. Onewasthat
theWTO Agreements hadbeeninplace forjustoveroneyearandthedemands attheoutset were
considerable. Notifications ofmeasures inplace upon entry intoforce oftheWTO Agreements and
oflawsandregulations, etc.added totheinitial burden. Newsystems hadtobedeveloped incapitals
tohandle thegreater demands andthese would require some timetoget"uptospeed". Itwasalso
noted thatmany administrations hadlimited resources tocoordinate thesubstantial demands bothin
theWTO andinthecapitals. Anumber ofMembers hadnomission inGeneva, which further
complicated theirtask. TheGroup considered thatcompliance frequently suffered because ofalack
ofawareness insomecapitals, particularly intheministries moreremoved fromtheoffices which usually
dealtwithWTO matters. Thiswould hinder comprehension oftherequirements anddelay oreven
prevent thesubmission ofinformation.
71. TheGroup considered thattheinformation contained inG/NOP/W/14 onallperiodic and
one-timenotificationsrequirementsandtheresponsestotheseobligationsbyallWTOMembersprovided
acomprehensive overview ofMembers 'participation andthereby improved thetransparency ofthe
system andassisted Members inseeing their ownindividual situation ataglance. Anumber of
participants commented thatthisfulllisting hadbeenfound helpful inthecapitals andwould provideG/L/112
Page14
apositive impetus tothetaskofimproving compliance. Thisdocument hasbeenupdated totheend
ofAugust 1996 andisincluded inthisreport asAnnex III.
72. TheGroup recommends thatacomprehensive listing ofnotification obligations andthe
compliance therewith byallWTO Members bemaintained onanongoing basis andbecirculated
semi-annually toallMembers. Inaddition, theCouncil forTrade inGoods might consider an
updating ofthelisting ofnotifications received, assetoutinAnnex IIItothisreport, prior to
theSingapore Ministerial Meeting.
73. Anumber ofsuggestions weremade onhowcompliance ratescould beimproved. Onewas
thattherecould beacentral entity oroffice ineachMember responsible forcoordinating thatMember 's
notification submissions inallareas. TheGroup fullyaccepted thatsome formofcoordination inthe
capitals toimprove theflowofinformation bothtoandfromGeneva andamong thevarious ministries
would beanimportant assistance tothenotification process. Itwasrecognized thatdifferent Members
would require different domestic structures and,indeed, somehadalready established suchcoordination
offices.
74. TheGroup recognized thatbenefits were possible both totheindividual Members and
totheWTO System from acentral national coordination ofnotification submissions, and
recommended thisforconsideration byindividual Members.
75. Another suggestion wasthattheCouncil forTrade inGoods could develop guidelines toassist
thecommittees inadministering thenotification system. These guidelines could include regular review
oftheirnotification questionnaires orformats, regular reminders tobemade prior toeachmeeting
onthenotification situation ineachMember, andtheregular publication ofthesituation asregards
compliance withthenotification obligations. Inthisregard, theGroup observed thatthemore active
committees wereinthisareaandthemore persistent inrequesting notifications, thehigher weretheir
ratesofcompliance.
76. TheGroup, therefore, recommends thattheCouncil forTrade inGoods consider the
preparation ofgeneral guidelines forthebodies under itspurview, providing fortheregular review
ofquestionnaires andformats andofthesituation asregards compliance with notification
obligations.
77. TheGroup alsotouched onthepossibilities forusing electronic means fortransmitting
information. Although thisconcept wasnotelaborated, itwasclear thatmany Members could see
merit inhaving thepossibility tosubmit notifications electronically andtohaveaccess tothenotification
ofothers through suchmeans.
78. TheGroup examined aproposal thataspecial programme ofassistance todeveloping country
Members, andparticularly theleast-developed, should beconsidered. Thiswould provide formore
intensive assistance, possibly withtheparticipation ofotherorganizations, focusing onthedevelopment
ofthesystems andstructures required torespond tothenotification obligations. Suchaprogramme
might involve, forexample, missions ofanappropriate duration which would require apoolof
knowledgeable people prepared tospend sufficient timeintherecipient Member countries toachieve
thegoals. Itwasalsonoted thatthisproposal envisaged anewprogramme, beyond those already
operatingundertheWTO'stechnicalcooperationprogramme,andwould,therefore,requireconsideration
notonlyofthecontent andcoverage ofsuchassistance, butalsothefinancial andhuman resources
aspects. Inviewofthetimeconstraints, theGroup wasnotabletoelaborate thisproposal further,
butconsidered ittobeofimportance andthatitshould formpartoftherecommendations totheCouncil
forTrade inGoods.G/L/112
Page15
79. Accordingly, theGroup recommends thatactive consideration begiven intheappropriate
WTO bodies tothedevelopment ofaspecial programme ofassistance todeveloping country
Members andparticularly totheleast-developed country Members providing more intensive
technical assistance, possibly with theparticipation ofother organizations, focusing onthe
development ofsystems andstructures required torespond tonotification obligations.
80. TheGroup alsoconsidered asuggestion concerning thesemi-annual reminders issued bythe
Central Registry ofNotifications pursuant toPartIIoftheMarrakesh Decision onNotification
Procedures. While thistopicwasoutside thepurview oftheWorking Group, inviewoftheproximity
ofthesubject matter tothetopics under discussion -improving Members 'compliance -theGroup
offered theobservation thatthereminders issued bytheCRN would beofgreater assistance to
Members iftheyprovided basic descriptions oftheinformation being sought .Thiscould take
theformofbriefdescriptions ofthenotification obligations being referred to,reference totherelated
provisions inthenotification handbook, anindication ifa"nil" report wasrequired incases where
theMember didnotmaintain themeasure inquestion, andsimilar information ofapedagogic nature.
Future Work inthisArea
81. TheGroup, bearing inmind theobservations made inparagraphs 11and12ofthisreport,
wasoftheopinion thatthedetailed, technical review ofnotification obligations andprocedures ineach
individual agreement should beanongoing responsibility ofthecommittees overseeing thefunctioning
oftherespective agreements. However, theGroup alsosawbenefit inconducting periodic reviews
oftheoperation oftheentire notification process fromamore detached andglobal perspective under
amandate along thelinesofthepresent Working Group. Itwasconsidered thatthiscould beachieved:
(a)through theextension ofthemandate ofthecurrent Working Group; (b)through theestablishment
bytheCouncil forTrade inGoods ofanewworking group, atanappropriate time, toaddress Annex 1A
agreements; or(c)through theestablishment, atanappropriate time, ofanewworking group under
theGeneral Council toaddress notification obligations inAnnexes 1A,BandC.Such work could
beundertaken withaviewtodeveloping recommendations forafuture Ministerial Conference.
82. Accordingly, theGroup recommends totheCouncil forTrade inGoods thatitrequest
theMinisterial Conference ortheGeneral Council toconsider theestablishment, atanappropriate
time, ofabody withamandate toreview thenotification obligations andprocedures throughout
theWTO Agreement. Alternatively, consideration might begiven totheestablishment ofabody,
ortheextension/modification ofthemandate ofthecurrent Working Group, toconduct, atan
appropriate time, afurther comprehensive review ofthenotification obligations andprocedures
intheagreements inAnnex 1AoftheWTO Agreement. Itwassuggested thatfuture work also
encompass matters relating totheCentral Registry ofNotifications, electronic transmission of
notifications andfurther work onthenotifications handbook.G/L/112
Page16
ANNEX I
DECISION ONNOTIFICATION PROCEDURES
Ministers,
Decide torecommend adoption bytheMinisterial Conference ofthedecision onimprovement
andreview ofnotification procedures setoutbelow.
Members,
Desiring toimprove theoperation ofnotification procedures under theAgreement Establishing
theWorld Trade Organization (hereinafter referred toasthe"WTO Agreement"), andthereby to
contribute tothetransparency ofMembers 'trade policies andtotheeffectiveness ofsurveillance
arrangements established tothatend;
Recalling obligations under theWTO Agreement topublish andnotify, including obligations
assumed under theterms ofspecific protocols ofaccession, waivers, andother agreements entered
intobyMembers;
Agree asfollows:
I. General obligation tonotify
Members affirm theircommitment toobligations under theMultilateral Trade Agreements and,
where applicable, thePlurilateral Trade Agreements, regarding publication andnotification.
Members recall their undertakings setoutintheUnderstanding Regarding Notification,
Consultation, Dispute Settlement andSurveillance adopted on28November 1979 (BISD 26S/210).
With regard totheirundertaking therein tonotify, tothemaximum extent possible, theiradoption of
trademeasures affecting theoperation ofGATT 1994, suchnotification itselfbeing without prejudice
toviews ontheconsistency ofmeasures withortheirrelevance torights andobligations under the
Multilateral Trade Agreements and,where applicable, thePlurilateral Trade Agreements, Members
agree tobeguided, asappropriate, bytheannexed listofmeasures. Members therefore agree that
theintroduction ormodification ofsuchmeasures issubject tothenotification requirements ofthe1979
Understanding.
II. Central registry ofnotifications
Acentral registry ofnotifications shallbeestablished under theresponsibility oftheSecretariat.
While Members willcontinue tofollow existing notification procedures, theSecretariat shallensure
thatthecentralregistryrecordssuchelementsoftheinformationprovidedonthemeasurebytheMember
concerned asitspurpose, itstrade coverage, andtherequirement under which ithasbeennotified.
Thecentral registry shallcross-reference itsrecords ofnotifications byMember andobligation.
Thecentral registry shallinform eachMember annually oftheregular notification obligations
towhich thatMember willbeexpected torespond inthecourse ofthefollowing year.
Thecentral registry shall draw theattention ofindividual Members toregular notification
requirements which remain unfulfilled.G/L/112
Page17
Information inthecentral registry regarding individual notifications shallbemade available
onrequest toanyMember entitled toreceive thenotification concerned.
III. Review ofnotification obligations andprocedures
TheCouncilforTradeinGoodswillundertakeareviewofnotificationobligationsandprocedures
under theAgreements inAnnex 1AoftheWTO Agreement. Thereview willbecarried outbya
working group, membership inwhich willbeopentoallMembers. Thegroup willbeestablished
immediately afterthedateofentry intoforce oftheWTO Agreement.
Theterms ofreference oftheworking group willbe:
— toundertake athorough review ofallexisting notification obligations ofMembers
established under theAgreements inAnnex 1AoftheWTO Agreement, withaview
tosimplifying, standardizing andconsolidating these obligations tothegreatest extent
practicable, aswellastoimproving compliance withtheseobligations, bearing inmind
theoverall objective ofimproving thetransparency ofthetrade policies ofMembers
andtheeffectiveness ofsurveillance arrangements established tothisend,andalso
bearing inmind thepossible needofsome developing country Members forassistance
inmeeting theirnotification obligations;
— tomake recommendations totheCouncil forTrade inGoods notlaterthantwoyears
aftertheentry intoforce oftheWTO Agreement.G/L/112
Page18
ANNEX II
ListofWorking Documents Issued bytheGroup
Document Date Title
Number
G/NOP/W/1 30/06/95 Background NotebytheSecretariat onNotification Procedures
intheGATT since 1979
G/NOP/W/2 &Rev.1 30/06/95 NotificationsRequiredfromWTOMembersUnderAgreements
&25/09/95 inAnnex 1AoftheWTO Agreement
G/NOP/W/3 22/09/95 Information onFormats forNotifications Under the
Agreements inAnnex 1AoftheWTO Agreement
G/NOP/W/4 03/11/95 Communication from theUnited States
G/NOP/W/5 21/11/95 Timing Aspects fortheNotification Requirements inthe
Agreements inAnnex 1AoftheWTO Agreement
G/NOP/W/6 21/11/95 Notification Requirements intheAgreements inAnnex 1Aof
theWTO Agreements Which Appear tohavesome Elements
ofDuplication
G/NOP/W/7 14/02/96 Communication from NewZealand
G/NOP/W/8 21/02/96 Communication from theUnited States
G/NOP/W/9 08/03/96 Information onCompliance withtheNotification Obligations
Under theAgreements inAnnex 1AoftheWTO Agreement
G/NOP/W/10 11/04/96 Communication from theUnited States
G/NOP/W/11 16/04/96 Communication from theEuropean Community
G/NOP/W/12 30/04/96 Communication from Argentina
G/NOP/W/13 10/05/96 Information onDiscussions Being Held inVarious WTO
Committees Related toTopics Under Examination inthe
Working Group
G/NOP/W/14 20/05/96 Information onNotifications Made Under theAgreements in
Annex 1AoftheWTO Agreement
G/NOP/W/15 02/07/96 Chairman 'sText
G/NOP/W/16 21/08/96 Draft Report oftheWorking Group totheCouncil forTrade
inGoods
G/NOP/W/16/Rev.1 27/09/96 Draft Report oftheWorking Group totheCouncil forTrade
inGoods: RevisionG/L/112
Page19
ANNEX III
INFORMATION ONNOTIFICATIONS MADE UNDER THE
AGREEMENTS INANNEX 1AOFTHE WTO AGREEMENT
1. Attherequest oftheWorking Group onNotification Obligations andProcedures, atitsmeeting
heldon16April1996(G/NOP/6,paragraphs25-28),theSecretariatcompiledalistingofregular/periodic
and"one-time" notification obligations under theAgreements inAnnex 1AoftheWTO Agreement
andofnotificationssubmittedpursuanttotheseobligationsupto1May1996.Thislistingwascirculated
indocument G/NOP/W/14.
3. ThisAnnex modifies andupdates theprevious listing tocover theperiod upto31August 1996.
Explanatory notes aresetoutonpages 19to23.
2. Thisinformation isdrawn from thenotifications which havebeenentered intotheCentral
Registry ofNotifications, aswellassome additional notifications received butnotyetentered into
theCRN. Thecut-off dateof31August 1996hasnoparticular significance, butwaschosen inorder
topresent asrecent apicture ofthesituation aspossible.
3. ThisAnnex doesnotaddress thequalitative aspects ofthese notifications, thatis,theextent
towhichthecontentofthesubmissionssatisfiestheinformationalrequirementsofthevariousobligations.G/L/112
Page20
EXPLANATORY NOTES
1. Thistablesetsoutnotification obligations ofaregular/periodic nature (i.e.semi-annual, annual,
biennial ortriennial) andnotifications required ona"one-time only" basis. Itdoesnotinclude
adhocnotifications, thatis,those which must beprovided onlyifacertain action istaken.
Italsodoesnotinclude those regular/periodic or"one-time" notification obligations listed in
document G/NOP/W/2/Rev.1, relating toMarks ofOrigin (page 50,item8),Regional
Arrangements (page 52,item13andpage55,item7),Balance ofPayments (page 54,item5)
andtheIntegrated Database (page 52,item15).
2. Thesymbols usedareasfollows:
(a) "X"denotes thatanotification hasbeenreceived intheWTO. Subsequent addenda
orcorrections tonotifications arenotcounted asadditional notifications.
(b) Ablank indicates thatthisisarequirement applicable totheMember concerned, but
thatnonotification hasbeenreceived uptothecut-off date.
(c) "NA" indicates thattherequirement wasnotapplicable forthisWTO Member during
theperiod covered bytheNote.
(d) "0"indicates thatnonotification wasreceived from theMember andthatthisisa
requirement which is:
(i) applicable onlytothose Members maintaining thetypeofmeasure ortaking
theaction inquestion butforwhich itwasnotpossible todetermine whether
theMember maintained thattypeofmeasure ortooktheaction inquestion;
or
(ii) permitting certain Members totakeadvantage ofspecial treatment.
3. Theabbreviations fortheAgreements andUnderstandings shown inthecolumn headings and
theirfulltitles areasfollows:
Column Heading Agreement/Understanding Title
Agriculture Agreement onAgriculture
Textiles and Clothing Agreement onTextiles and Clothing
Technical Barriers toTrade Agreement onTechnical Barriers toTrade
TRIMs Agreement onTrade-Related Investment Measures
Anti-dumping Agreement onImplementation ofArticle VIoftheGATT 1994
Customs Valuation Agreement onImplementation ofArticle VIIofGATT 1994
PSI Agreement onPreshipment Inspection
Rules ofOrigin Agreement onRules ofOrigin
Import Licensing Agreement onImport Licensing Procedures
Subsidies and Countervailing Measures Agreement onSubsidies and Countervailing Measures
Safeguards Agreement onSafeguards
State Trading Understanding ontheInterpretation ofArticle XVII oftheGATT 1994
Quantitative Restrictions (QRs) Decision onNotification Procedures forQuantitative Restrictions (G/L/59)G/L/112
Page21
4. On31August 1996, there were123WTO Members. ThelistofWTO Members inthefirst
column, however, comprises 108names astheEuropean Community andits15member States
provide onenotification foreachoftherespective requirements. InthecaseofAgriculture,
Switzerland 'snotifications aretaken tocover Liechtenstein asthesetwoMembers haveajoint
Schedule.
5. Thefollowing notes apply tospecific agreements:
Agreement onAgriculture
(a) Notifications maybesubmitted according tovarious bases (calendar, crop, fiscal years,
etc.); theabsence ofanotification does notnecessarily indicate anoutstanding
obligation astheymaybedueonlylaterin1996. However, thetimelimit for
submission ofMA:1 notifications hasnowpassed forallMembers.
(b) ForTables MA:1 andMA:2 (Tariff andother quotas -Article 18.2), notifications are
required onlybyMembers withtariff andother quota commitments recorded in
Section I-B(orSection I-A)ofPartIoftheirSchedules fortheproducts concerned.
(c) ForTable MA:5 (Special Safeguard -Articles 5.7and18.2) notifications arerequired
onlybyMembers having reserved theright tousetheSpecial Safeguard provisions
asindicated inSection I-AofPartIofSchedules.
(d) ForTable DS:1 (Domestic Support -Article 18.2), while allMembers arerequired
tonotify, theleast-developed country Members maynotify every second year(indicated
bythesymbol (NA)), allothers annually.
(e) ForTable ES:1 (Export Subsidies -Article 18.2), anotification isrequired byall
Members whether ornotabaseorannual commitment level isshown inSection II
ofpartIVoftheirSchedule, i.e.,a"nil" return isrequired.
(f) ForTableES:2(TotalexportsinthecontextofExportSubsidies-Articles10and18.2),
anotification isrequired onlybyMembers withexport subsidy reduction commitments
shown inSection IIofPartIVofSchedules and"significant exporters" assetoutin
G/AG/2/Add.1.
(g) ForTable ES:3(Food Aidinthecontext ofExport Subsidies -Articles 10and18.2)
notificationisrequiredofallfoodaiddonorMembersunlessthisinformationisprovided
forunder (e)above. No"nilreturn" isrequired fromMembers which donotprovide
foodorother aid.
(h) ForTable NF:1 (Food andother aidinthecontext oftheDecision -Article 16.2),
notification isrequired byalldonor Members inrespect ofactions taken within the
framework oftheDecision onMeasures concerning thePossible Negative Effects of
theReform Programme ontheLeast Developed andNetFood Importing Developing
Countries. No"nilreturn" isrequired fromMembers which donotprovide foodaid,
orother assistance tothecountries concerned.
Agreement onTextiles andClothing
(a) Notifications under Article 2.1wererequired onlybyCanada, theEC,Norway and
theUnited States.G/L/112
Page22
(b) Notifications under Articles 2.6/2.7 wererequired onlybyMembers which retained
theirrighttousethetransitional safeguard mechanism under Article 6.1plusthefour
Members in(a)above.
(c) Notifications under Article 3.1were required onlybyMembers which maintained
restrictions ontextile andclothing products other thanthose under theMFA.
(d) Notifications under Article 6.1indicating whether ornottheMember wished toretain
therighttousethetransitionalsafeguardmechanismwererequiredofallWTOMembers
except thefourmentioned in(a)above.
Agreement onTrade-Related Investment Measures
(a) Article 5.1requires thenotification ofinvestment measures Members wereapplying
thatwerenotinconformity withtheAgreement ona"one-time" basiswithin 90days
ofthedateofentry intoforce oftheAgreement.
(b) Article 6.2,alsoa"one-time" notification, isnotyetoperational, approval ofanagreed
standard format ispending.
Agreement onImplementation ofArticle VIoftheGATT 1994 (Anti-dumping)
(a) Notifications ofanti-dumping actions taken mustbesupplied semi-annually, pursuant
toArticle 16.4. Thereport fortheJanuary-June 1995 period wasdueon
31August 1995andfortheJuly-December 1995period wasdueon26February 1996.
(b) Fullandintegrated textsoflawsandregulations wererequired ona"one-time" basis
(Article 18.5).
Agreement ontheImplementation ofArticle VIIoftheGATT 1994 (Customs Valuation)
(a) Members thathavemade notifications areshown withan"X". "NA" indicates that
therequirement isnotapplicable tothisWTO Member.
(b) Asspecial anddifferential treatment, Article 20.1permits some developing country
Members todelay theapplication ofthisAgreement foruptofiveyears. Inaddition,
Article 20.2permits some developing country Members todelay application ofcertain
provisions forafurther three years. Annex IIIinitsparagraphs 2,3and4provides
developing countries withthepossibility ofnotifying certain reservations.
(c) Thenotification oflaws andregulations under Article 22.1 (oracommunication
indicating thatthelegislation notified under theTokyo Round Agreement onCustoms
ValuationremainsvalidundertheWTOAgreementonCustomsValuation)andresponse
tothechecklist ofissues are"one-time" requirements ofallMembers.
(d) TheDecisions onthetreatment ofinterest charges inthecustoms value ofimported
goods andonthevaluation ofcarrier media bearing software fordataprocessing
equipment are"one-time" notification obligations forthoseMembers choosing toapply
these Decisions.G/L/112
Page23
Agreement onImport Licensing
(a) Those Members which havenotified areshown withan"X". "NA" indicates thatthe
requirement isnotapplicable tothisWTO Member.
(b) Certain developing country Members candefer theapplication ofsome provisions for
notmorethantwoyearsfromthedateofWTOMembership(Footnote5toArticle2.2).
(c) Replies tothequestionnaire onimport licensing procedures arerequired ofallMembers
by30September eachyear(Article 7.3).
(d) AllMembers arerequired tonotify thenames ofpublications inwhich rules and
information concerning import licensing procedures arepublished andtosubmit copies
ofsuchpublications. AllMembers arerequired tonotify thefulltextoftheirrelevant
lawsandregulations (Articles 1.4(a)/8.2(b)).
Agreement onRules ofOrigin
(a) There aretwo"one-time" notification obligations inthisAgreement, onexisting non-
preferential rules oforigin (Article 5.1)andonexisting preferential rules oforigin
(Annex II,paragraph 4)."X"denotes thatanotification hasbeenreceived.
Agreement onSubsidies andCountervailing Measures
(a) Theannual reports ofsubsidies arerequired notlater than 30June each year
(Article 25.1) andwhere aMember considers thatthere arenomeasures requiring
suchnotification, a"nil" return isnecessary (Article 25.6). Anewandfullreport
onsubsidieswasdueon30June1995,andanupdatingreportwasdueon30June1996.
(b) Notifications ofcountervailing dutyactions taken must besupplied semi-annually
pursuant toArticle 25.11. Those fortheJanuary-June period of1995 were dueon
31August1995andfortheJuly-December1995periodweredueon26February1996.
(c) Two"one-time" notification requirements havenotbeenincluded inthetables due
totheirlimited applications: (i)subsidy programmes which areinconsistent withthe
Agreement (Article 28.1). These havebeennotified byChile, Malaysia, Mauritius
andSouth Africa; and(ii)subsidy programmes falling within thescope ofArticle 3
oftheAgreement maintained byMembers intheprocess oftransformation intoamarket
economy (Article 29.3). These havebeennotified bytheCzech Republic, Hungary
andPoland.
(d) AllMembers arerequired tonotify theirlawsandregulations pursuant toArticle 32.6.
Agreement onSafeguards
(a) Programmes tophase-out certain actions must bereported ona"one-time" basis by
Membersconcerned(Article11.2).ThoseMembersthathavenotifiedsuchprogrammes
areshown withan"X", allothers withan"0".
(b) AllMembers must notify their laws, regulations andadministrative procedures
(Article 12.6).G/L/112
Page24
(c) Members maintaining certain measures (Articles 10and11.1) must notify these on
a"one-time"basis(Article12.7).Membersthathavemadesuchnotificationsareshown
withan"X", allothers withan"0".
GATT 1994 Article XVII:4(a) andtheUnderstanding ontheInterpretation ofthisArticle
(a) Membersarerequiredtonotifystatetradingenterprises-the1995notificationobligation
wastosubmitnewandfullresponsestothequestionnaireonstatetrading(BISD9S/184-
185)notlaterthan30June1995. Where aMember considers thattherearenoactivities
requiring suchnotification, a"nil"return isnecessary. The1996 notification obligation
istosubmit updating notifications covering anychanges since thenewandfull
notification, andwasdueon30June1996.
Agreement onTechnical Barriers toTrade
(a) AllMembers arerequired tonotify ona"one-time" basis "measures inexistence or
takentoensuretheimplementationandadministrationofthisAgreement"(Article15.2).
(b) Thenotifications bystandardizing bodies intheMember countries thathaveaccepted
theCode ofGood Practice areindicated with"X"; others withan"0".
Agreement onPreshipment Inspection
(a) Pursuant toArticle 5,Members arerequired tonotify thelawsandregulations bywhich
theyputtheAgreement intoforce, aswellasother lawsandregulations onthistopic.
Decision onNotification Procedures forQuantitative Restrictions
(a) On1December 1995, theCouncil forTrade inGoods agreed that"Members shall
make complete notification ofthequantitative restrictions which theymaintain by
31January 1996 andattwo-yearly intervals thereafter ..."(G/L/59).G/L/112
Page25
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement
Agriculture Textiles and Clothing
18.2 18.2 5.7/18.2 18.2 18.2 10/18.2 10/18.2 16.2 2.1 2.6/2.7 3.1 6.1
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3Table
NF:1QRs (MFA) First Inte-
grationQRs
(other)Safeguard
Decision
Antigua and Barbuda NA NA NA NA 0 0 NA NA 0
Argentina NA NA NA X X X 0 0 NA X 0 X
Australia X X X X X 0 0 NA NA 0 X
Bahrain NA NA NA NA 0 0 NA NA 0
Bangladesh NA NA NA (NA) NA 0 0 NA X X X
Barbados NA 0 0 NA NA 0
Belize NA NA NA NA 0 0 NA NA 0
Benin NA NA NA NA NA NA NA NA NA NA 0
Bolivia NA NA NA NA 0 0 NA X 0 X
Botswana NA NA X NA 0 0 NA NA 0
Brazil X X NA X X X X X NA X 0 X
Brunei Darussalam NA NA NA NA 0 0 NA NA 0
Burkina Faso NA NA NA (NA) NA 0 0 NA NA 0
Burundi NA NA NA (NA) NA 0 0 NA NA 0
Cameroon NA NA NA NA 0 0 NA NA 0
Canada X X X 0 0 X X X NA
Central African Rep. NA NA NA (NA) NA 0 0 NA NA 0
Chile NA NA NA X X X 0 0 NA NA X X
Colombia X X 0 0 NA X 0 X
Costa Rica X 0 0 NA X 0 X
Côte d'Ivoire NA NA NA NA 0 0 NA 0 X
Cuba NA NA NA X 0 0 NA NA 0 X
Cyprus NA NA NA X 0 0 NA X X X
Czech Republic X X X X X X 0 NA X 0 X
Djibouti NA NA NA (NA) NA 0 0 NA NA 0
Dominica NA NA NA NA 0 0 NA NA 0
Dominican Republic NA NA NA X NA 0 0 NA X 0 X
EC X 0 0 X X X NA
Ecuador NA NA NA NA NA NA NA NA 0 X
Egypt NA NA NA NA 0 0 NA X X
ElSalvador NA 0 0 NA X 0 XG/L/112
Page26
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Agriculture Textiles and Clothing
18.2 18.2 5.7/18.2 18.2 18.2 10/18.2 10/18.2 16.2 2.1 2.6/2.7 3.1 6.1
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3Table
NF:1QRs (MFA) First Inte-
grationQRs
(other)Safeguard
Decision
Fiji NA NA NA NA NA NA NA NA NA NA 0
Gabon NA NA NA NA 0 0 NA NA 0
Ghana NA NA NA NA 0 0 NA NA 0
Grenada NA NA NA NA NA NA NA NA NA NA 0
Guatemala X NA 0 0 NA X 0 X
Guinea Bissau NA NA NA (NA) NA 0 0 NA NA 0
Guinea, Republic of NA NA NA (NA) NA 0 0 NA NA 0
Guyana NA NA NA NA 0 0 NA NA 0
Haiti NA NA NA NA NA NA NA NA NA NA 0
Honduras NA NA NA 0 0 NA X 0 X
Hong Kong NA NA NA X X NA 0 0 NA NA 0 X
Hungary X X X 0 0 NA X X X
Iceland X 0 0 NA NA 0
India NA NA NA NA 0 0 NA X X X
Indonesia X X 0 0 NA X X X
Israel 0 0 NA X X X
Jamaica NA NA NA NA 0 0 NA 0 X
Japan X X X X NA 0 0 NA X X X
Kenya NA NA NA NA 0 0 NA X X
Korea X X X NA 0 0 NA X X X
Kuwait NA NA NA NA 0 0 NA NA 0
Lesotho NA NA NA (NA) NA 0 0 NA 0 X
Liechtenstein X X X X X 0 0 NA NA 0
Macau NA NA NA X X NA 0 0 NA NA X X
Madagascar NA NA NA (NA) NA 0 0 NA NA 0
Malawi NA NA NA (NA) NA 0 0 NA NA 0
Malaysia X X X X X 0 0 NA X X X
Maldives NA NA NA (NA) NA 0 0 NA NA 0
Mali NA NA NA (NA) NA 0 0 NA NA 0
Malta NA NA NA NA 0 0 NA X X X
Mauritania NA NA NA (NA) NA 0 0 NA NA 0G/L/112
Page27
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Agriculture Textiles and Clothing
18.2 18.2 5.7/18.2 18.2 18.2 10/18.2 10/18.2 16.2 2.1 2.6/2.7 3.1 6.1
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3Table
NF:1QRs (MFA) First Inte-
grationQRs
(other)Safeguard
Decision
Mauritius NA NA NA NA 0 0 NA X X X
Mexico 0 0 NA X X X
Morocco X X X X X NA 0 0 NA X X X
Mozambique NA NA NA (NA) NA 0 0 NA NA 0
Myanmar NA NA NA (NA) NA 0 0 NA X 0 X
Namibia NA NA NA 0 0 NA NA 0
New Zealand X X X X X X X X NA NA X X
Nicaragua X X X X NA 0 0 NA X 0 X
Nigeria NA NA NA NA 0 0 NA 0
Norway X X X X 0 0 X X 0 NA
Pakistan NA NA NA X X 0 0 NA X X X
Papua New Guinea NA NA NA NA NA NA NA NA NA NA 0
Paraguay NA NA NA NA 0 0 NA X 0 X
Peru NA NA NA X NA 0 0 NA X X X
Philippines X X 0 0 NA X X X
Poland X X X X 0 0 NA X 0 X
Qatar NA NA NA NA NA NA NA NA NA NA 0
Romania X X X X 0 0 NA X 0 X
Rwanda NA NA NA NA NA NA NA NA NA NA 0
Saint Kitts and Nevis NA NA NA NA NA NA NA NA NA X X X
Saint Lucia NA NA NA NA 0 0 NA NA 0
Saint Vincent &Gre. NA NA NA NA 0 0 NA NA 0
Senegal NA NA NA NA 0 0 NA 0 X
Sierra Leone NA NA NA (NA) NA 0 0 NA NA 0
Singapore NA NA NA NA 0 0 NA NA X X
Slovak Republic X X X X X X X 0 NA X 0 X
Slovenia X X NA X X NA 0 0 NA X X X
Solomon Islands NA NA NA NA NA NA NA NA NA NA 0
South Africa X X 0 0 NA 0 X
SriLanka NA NA NA NA 0 0 NA X X X
Suriname NA NA NA NA 0 0 NA NA 0G/L/112
Page28
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Agriculture Textiles and Clothing
18.2 18.2 5.7/18.2 18.2 18.2 10/18.2 10/18.2 16.2 2.1 2.6/2.7 3.1 6.1
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3Table
NF:1QRs (MFA) First Inte-
grationQRs
(other)Safeguard
Decision
Swaziland NA NA NA 0 0 NA NA 0
Switzerland X X X X X 0 0 NA X 0 X
Tanzania NA NA NA (NA) NA 0 0 NA NA 0
Thailand X X X X X X 0 0 NA X X X
Togo NA NA NA (NA) NA 0 0 NA NA 0
Trinidad and Tobago NA NA NA X NA 0 0 NA 0 X
Tunisia X NA 0 0 NA X 0 X
Turkey NA NA NA X X 0 0 NA X 0 X
Uganda NA NA NA (NA) NA 0 0 NA NA 0
United Arab Emirates NA NA NA NA NA NA NA NA NA NA 0
United States X X X 0 0 X X X NA
Uruguay NA NA X X X X 0 0 NA X 0 X
Venezuela X 0 0 NA X X X
Zambia NA NA NA (NA) NA 0 0 NA X 0 X
Zimbabwe NA NA NA 0 0 NA NA 0G/L/112
Page29
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
TRIMs Anti-dumping Customs Valuation
5.1 16.4 16.4 18.5 20.1 20.2 Annex
III(2)Annex
III(3)Annex
III(4)22.1 Decisions
Invest-
ment
MeasuresSemi-annual Laws/
RegsDeferred
applic-
ationDeferred
applic-
ationMinim-
um
valuesReserv
-ations
Art. 4Reserv-
ations
Art.5.2Laws/
RegsCheck
-listInterest
chargesCarrier
Media
Jan-
June
95July-
Dec
95
Antigua and Barbuda 0
Argentina X X X NA NA NA X X X X
Australia 0 X X X NA NA NA NA NA X X X X
Bahrain 0
Bangladesh 0 X X X X X NA NA
Barbados X X X X
Belize 0
Benin 0 NA
Bolivia 0 X X X X X NA NA
Botswana 0 X NA NA NA NA NA
Brazil 0 X X X NA NA NA X X
Brunei Darussalam 0 X X NA NA
Burkina Faso 0 X X X X X NA NA
Burundi 0 X X NA NA
Cameroon 0 X X X X NA NA
Canada 0 X X X NA NA NA NA NA X NA X X
Central African Rep. 0 X NA NA
Chile X X X X X X X X X NA NA
Colombia X X X X X X X X X NA NA
Costa Rica X X X X X X X X NA NA
Côte d'Ivoire 0 X X X X X X NA NA
Cuba X X X X X NA NA
Cyprus X X X X NA NA NA NA NA NA X X
Czech Republic 0 X X X NA NA NA NA NA X NA X X
Djibouti 0 X X X X X NA NA
Dominica 0
Dominican Republic X X X X X X X X X NA NA
EC X X X X NA NA NA NA NA X NA X X
Ecuador X X X X X X NA NA
Egypt X X X X X X X X NA NA
ElSalvador 0 X X X X X NA NAG/L/112
Page30
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
TRIMs Anti-dumping Customs Valuation
5.1 16.4 16.4 18.5 20.1 20.2 Annex
III(2)Annex
III(3)Annex
III(4)22.1 Decisions
Invest-
ment
MeasuresSemi-annual Laws/
RegsDeferred
applic-
ationDeferred
applic-
ationMinim-
um
ValuesReserv
-ations
Art. 4Reserv-
ations
Art.5.2Laws/
RegsCheck
-listInterest
chargesCarrier
Media
Jan-
June
95July-
Dec
95
Fiji 0 NA
Gabon 0 X X X X X NA NA
Ghana 0 X NA NA
Grenada 0 NA
Guatemala 0 X X X X X X X NA NA
Guinea Bissau 0
Guinea, Republic of 0 X
Guyana 0
Haiti 0 NA
Honduras X X X X X X X X NA NA
Hong Kong 0 X X X NA NA NA NA NA X NA X X
Hungary 0 X X X NA NA NA NA NA X NA X X
Iceland 0 X X X NA NA NA NA NA
India X X X X NA NA NA X X X NA
Indonesia X X X X X X X X NA NA
Israel 0 X X X X X X NA NA
Jamaica 0 X X X X X X X X NA NA
Japan X X X X NA NA NA NA NA X NA X X
Kenya 0 X X X X X X NA NA
Korea 0 X X X NA NA NA NA NA X NA X X
Kuwait 0 X X X NA NA
Lesotho 0 NA NA NA NA NA X X
Liechtenstein 0 NA NA NA NA NA
Macau 0 X NA NA NA NA NA X NA
Madagascar 0 X X NA NA
Malawi 0 X NA NA NA X NA
Malaysia X X X X X X X X X NA NA
Maldives 0 X
Mali 0 X X NA NA
Malta 0 X X X X X X X X NA NA
Mauritania 0 X X X X X NA NAG/L/112
Page31
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
TRIMs Anti-dumping Customs Valuation
5.1 16.4 16.4 18.5 20.1 20.2 Annex
III(2)Annex
III(3)Annex
III(4)22.1 Decisions
Invest-
ment
MeasuresSemi-annual Laws/
RegsDeferred
applic-
ationDeferred
applic-
ationMinim-
um
ValuesReserv
-ations
Art. 4Reserv-
ations
Art.5.2Laws/
RegsCheck
-listInterest
chargesCarrier
Media
Jan-
June
95July-
Dec
95
Mauritius X X X X NA NA
Mexico X X X X NA NA NA X X X X X X
Morocco 0 X X X X X NA X X NA NA
Mozambique 0
Myanmar 0 X X X X X NA NA
Namibia 0
New Zealand 0 X X X NA NA NA NA NA X NA X X
Nicaragua X X X X X X NA NA
Nigeria X X X X NA NA
Norway 0 X X X NA NA NA NA NA X NA X X
Pakistan X X X X X X X X NA NA
Papua New Guinea NA
Paraguay 0 X X X X NA NA
Peru X X X X X X X X X NA NA
Philippines X X X X X X X X X NA NA
Poland X X X X NA NA NA NA NA
Qatar NA
Romania X X X X X NA X X
Rwanda NA
Saint Kitts and Nevis 0 NA
Saint Lucia X X X X
Saint Vincent &Gre. 0
Senegal 0 X X X NA NA
Sierra Leone 0
Singapore 0 X X X X X X X X NA NA
Slovak Republic 0 X X X NA NA NA NA NA X X
Slovenia X X X X NA NA NA NA NA X
Solomon Islands NA NA
South Africa X X X X NA NA NA NA NA X NA X X
SriLanka X X X X X X X X NA NA
Suriname 0 XG/L/112
Page32
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
TRIMs Anti-dumping Customs Valuation
5.1 16.4 16.4 18.5 20.1 20.2 Annex
III(2)Annex
III(3)Annex
III(4)22.1 Decisions
Invest-
ment
MeasuresSemi-annual Laws/
RegsDeferred
applic-
ationDeferred
applic-
ationMinim-
um
ValuesReserv
-ations
Art. 4Reserv-
ations
Art.5.2Laws/
RegsCheck
-listInterest
chargesCarrier
Media
Jan-
June
95July-
Dec
95
Swaziland 0 X X
Switzerland X X X X NA NA NA NA NA X NA
Tanzania 0 X
Thailand X X X X X X X X X NA NA
Togo 0 X X X X X NA NA
Trinidad and Tobago X X
Tunisia 0 X X X X X X X X NA NA
Turkey 0 X X X NA X NA X X X
Uganda 0
United Arab Emirates 0 NA X X X X NA NA NA
United States 0 X X X NA NA NA NA NA X NA X X
Uruguay X X X X X X X X X NA NA
Venezuela X X X X X X X X X NA NA
Zambia X X X X X X X X X NA NA
Zimbabwe 0 X X X X X X X XG/L/112
Page33
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Import Licensing Rules ofOrigin Subsidies and Countervailing Measures Technical Barriers to
Trade
2.2 7.3 1.4(a)/
8.2(b)5.1 Annex II(4) 25.1 25.1 25.11 25.11 32.6 15.2 Annex 3(C)
Deferred
appli-
cationReplies to
question-
nairePublic-
ations/
laws/regsNon-
pref.
rulesPref. rules Annual
Report
(new and
full, due
30/6/95)Annual
Report
(update,
due
30/6/96)Semi-annual Laws/
RegsLaws/
RegsAccept-
ance of
code
Jan-June
95July-Dec
95
Antigua and Barbuda 0
Argentina X X X X X X X X X 0
Australia NA X X X X X X X X X X X
Bahrain X 0
Bangladesh X 0
Barbados X X X X 0
Belize 0
Benin NA 0
Bolivia X X X X X X X 0
Botswana X X 0
Brazil X X X X X X X X
Brunei Darussalam X X 0
Burkina Faso X 0
Burundi 0
Cameroon X 0
Canada NA X X X X X X X X X 0
Central African Rep. 0
Chile NA X X X X X X X X
Colombia X X X X X X X X X X X
Costa Rica X X X X X X X X 0
Côte d'Ivoire X X X 0
Cuba X X X X X X X X
Cyprus X X X X X 0
Czech Republic NA X X X X X X X X
Djibouti 0
Dominica 0
Dominican Republic X X X X X X X 0
EC NA X X X X X X X X X
Ecuador X NA X 0
Egypt NA X X X X
ElSalvador X X X X 0G/L/112
Page34
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Import Licensing Rules ofOrigin Subsidies and Countervailing Measures Technical Barriers to
Trade
2.2 7.3 1.4(a)/
8.2(b)5.1 Annex II(4) 25.1 25.1 25.11 25.11 32.6 15.2 Annex 3(C)
Deferred
appli-
cationReplies to
Question-
nairePublic-
ations/
laws/regsNon-
pref.
rulesPref. rules Annual
Report
(new and
full, due
30/6/95)Annual
Report
(update,
due
30/6/96)Semi-annual Laws/
RegsLaws/
RegsAccept-
ance of
code
Jan-June
95July-Dec
95
Fiji NA 0
Gabon X 0
Ghana 0
Grenada NA 0
Guatemala X X X X 0
Guinea Bissau 0
Guinea, Republic of X 0
Guyana 0
Haiti NA 0
Honduras X X X X X X X 0
Hong Kong NA X X X X X X X X X 0
Hungary NA X X X X X X X
Iceland NA X X X X 0
India NA X X X X X X X X
Indonesia X X X X X X X X
Israel X X 0
Jamaica X X X X X
Japan NA X X X X X X X X X X
Kenya X X X X X
Korea X X X X X X 0
Kuwait X 0
Lesotho 0
Liechtenstein NA X 0
Macau 0
Madagascar X X 0
Malawi X 0
Malaysia X X X X X X X X X
Maldives X 0
Mali 0
Malta X X X X X X X X
Mauritania 0G/L/112
Page35
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Import Licensing Rules ofOrigin Subsidies and Countervailing Measures Technical Barriers to
Trade
2.2 7.3 1.4(a)/
8.2(b)5.1 Annex II(4) 25.1 25.1 25.11 25.11 32.6 15.2 Annex 3(C)
Deferred
appli-
cationReplies to
Question-
nairePublic-
ations/
laws/regsNon-
pref.
rulesPref. rules Annual
Report
(new and
full, due
30/6/95)Annual
Report
(update,
due
30/6/96)Semi-annual Laws/
RegsLaws/
RegsAccept-
ance of
code
Jan-June
95July-Dec
95
Mauritius X X X X X X X 0
Mexico NA X X X X X X 0
Morocco X X X X X X X X 0
Mozambique 0
Myanmar X 0
Namibia 0
New Zealand NA X X X X X X X X X
Nicaragua X X X X X 0
Nigeria NA X X 0
Norway NA X X X X X X X X 0
Pakistan NA X X X 0
Papua New Guinea NA
Paraguay X X X X 0
Peru X X X X X X X X X
Philippines NA X X X X X X X X
Poland NA X X X X X 0
Qatar NA 0
Romania NA X X X X X X
Rwanda NA
Saint Kitts and Nevis NA 0
Saint Lucia X X X 0
Saint Vincent &Gre. 0
Senegal X X X X
Sierra Leone 0
Singapore NA X X X X X X X
Slovak Republic NA X X X X X X X X
Slovenia NA X X NA X X X X X
Solomon Islands NA NA
South Africa NA X X X X X
SriLanka X X X X 0
Suriname X X 0G/L/112
Page36
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Import Licensing Rules ofOrigin Subsidies and Countervailing Measures Technical Barriers to
Trade
2.2 7.3 1.4(a)/
8.2(b)5.1 Annex II(4) 25.1 25.1 25.11 25.11 32.6 15.2 Annex 3(C)
Deferred
appli-
cationReplies to
Question-
nairePublic-
ations/
laws/regsNon-
pref.
rulesPref. rules Annual
Report
(new and
full, due
30/6/95)Annual
Report
(update,
due
30/6/96)Semi-annual Laws/
RegsLaws/
RegsAccept-
ance
ofcode
Jan-June
95July-Dec
95
Swaziland X X 0
Switzerland NA X X X X X X X X
Tanzania X 0
Thailand X X X X X X X X X
Togo
Trinidad and Tobago X X X X X X X X
Tunisia X X X X X X X X
Turkey X X X X X X X X X X
Uganda
United Arab Emirates X NA
United States NA X X X X X X X X
Uruguay X X X X X
Venezuela X X X X X X X X
Zambia X X X X
Zimbabwe X X X XG/L/112
Page37
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Safeguards State Trading PSI QRs
11.2 12.6 12.7 12.7 XVII(4)(a) XVII(4)(a) 5 G/L/59
Phase-
out
timetableLaws/
RegsExisting
11.1
measuresPre-
existing
Art. XIXAnnual state-
trading activities
(new and full
notif, due 30/6/95)Annual state-
trading activities
(update notif,
due 30/6/96)Laws/
RegsBiennial
report
Antigua and Barbuda 0 0 0
Argentina 0 X 0 0 X
Australia 0 X 0 0 X X X
Bahrain 0 0 0
Bangladesh 0 0 0
Barbados 0 0 0 X
Belize 0 0 0
Benin 0 0 0
Bolivia 0 X 0 0
Botswana 0 0 0
Brazil 0 X 0 0 X
Brunei Darussalam 0 0 0
Burkina Faso 0 0 0
Burundi 0 0 0
Cameroon 0 0 0
Canada 0 X X X X X X
Central African Rep. 0 0 0
Chili 0 X 0 0 X X X
Colombia 0 X 0 X X X
Costa Rica 0 X X X X X
Côte d'Ivoire 0 X 0 0 X X
Cuba 0 X 0 0 X
Cyprus X X 0 X
Czech Republic 0 X 0 0 X X
Djibouti 0 0 0
Dominica 0 0 0
Dominican Republic 0 X 0 0 X
EC X X X X X X X X
Ecuador 0 X 0 0
Egypt 0 X 0 0
ElSalvador 0 X 0 0G/L/112
Page38
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Safeguards State Trading PSI QRs
11.2 12.6 12.7 12.7 XVII(4)(a) XVII(4)(a) 5 G/L/59
Phase-
out
timetableLaws/
RegsExisting
11.1
measuresPre-
existing
Art. XIXAnnual state-
trading activities
(new and full
notif, due 30/6/95)Annual state-
trading activities
(update notif,
due 30/6/96)Laws/
RegsBiennial
report
Fiji 0 0 0
Gabon 0 0 0
Ghana 0 0 0
Grenada 0 0 0
Guatemala 0 X 0 0
Guinea Bissau 0 0 0
Guinea, Republic of 0 X 0 0 X
Guyana 0 0 0
Haiti 0 0 0
Honduras 0 X 0 0 X
Hong Kong 0 X X X X X X X
Hungary 0 X 0 0 X X
Iceland 0 X 0 0 X X
India 0 X X X X X X
Indonesia 0 X X X X X
Israel 0 X 0 0 X
Jamaica 0 0 0 X
Japan 0 X 0 0 X X
Kenya 0 X 0 0
Korea X X X X X
Kuwait 0 0 0
Lesotho 0 0 0
Liechtenstein 0 0 0
Macau 0 X 0 0 X X
Madagascar 0 0 0 X
Malawi 0 0 0
Malaysia 0 X X X X X
Maldives 0 X 0 0
Mali 0 0 0
Malta 0 X 0 0 X X X
Mauritania 0 0 0G/L/112
Page39
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Safeguards State Trading PSI QRs
11.2 12.6 12.7 12.7 XVII(4)(a) XVII(4)(a) 5 G/L/59
Phase-
out
timetableLaws/
RegsExisting
11.1
measuresPre-
existing
Art. XIXAnnual state-
trading activities
(new and full
notif, due 30/6/95)Annual state-
trading activities
(update notif,
due 30/6/96)Laws/
RegsBiennial
report
Mauritius X X X X X
Mexico 0 X 0 0
Morocco 0 X 0 0 X
Mozambique 0 0 0
Myanmar 0 X 0 0
Namibia 0 0 0
New Zealand 0 X 0 0 X X X
Nicaragua 0 X 0 0 X
Nigeria 0 X 0 0
Norway 0 X 0 0 X X X
Pakistan 0 X X X X X
Papua New Guinea
Paraguay 0 X 0 0
Peru 0 X X X X X X
Philippines 0 X 0 0 X X X
Poland 0 X 0 0 X X
Qatar 0 0 0
Romania 0 X 0 0 X
Rwanda
Saint Kitts and Nevis 0 0 0
Saint Lucia 0 X 0 0 X
Saint Vincent &Gre. 0 0 0
Senegal 0 0 0 X
Sierra Leone 0 0 0
Singapore 0 X X X X X X
Slovak Republic 0 X 0 0 X
Slovenia X X X 0 X X
Solomon Islands
South Africa X X X X X X
SriLanka 0 X 0 0
Suriname 0 0 0 XG/L/112
Page40
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Safeguards State Trading PSI QRs
11.2 12.6 12.7 12.7 XVII(4)(a) XVII(4)(a) 5 G/L/59
Phase-
out
timetableLaws/
RegsExisting
11.1
measuresPre-
existing
Art. XIXAnnual state-
trading activities
(new and full
notif, due 30/6/95)Annual state-
trading activities
(update notif,
due 30/6/96)Laws/
RegsBiennial
report
Swaziland 0 0 0
Switzerland 0 X X X X X X
Tanzania 0 0 0
Thailand 0 X X 0 X
Togo 0 0 0
Trinidad and Tobago 0 X 0 0
Tunisia 0 X 0 0
Turkey 0 X 0 0 X X
Uganda 0 0 0
United Arab Emirates 0 0 0
United States 0 X X X X X X
Uruguay 0 X 0 0 X
Venezuela 0 X X X X X
Zambia 0 X 0 0 X
Zimbabwe 0 X 0 0 XWORLD TRADE G/L/112/Add.1
21November 1996
ORGANIZATION(96-4930)
REPORT OFTHE WORKING GROUP ONNOTIFICATION
OBLIGATIONS AND PROCEDURES
Addendum
Updating oftheListing ofNotification Obligations and
theCompliance Therewith assetoutinAnnex IIIoftheWorking Group 'sReport
1. Atitsmeeting on15October 1996, theCouncil forTrade inGoods considered thereport of
theWorking Group onNotification Obligations andProcedures (G/L/112) anddecided, interalia,that
thelisting ofnotification obligations andthecompliance therewith, contained initsAnnex III,should
beupdated prior totheSingapore Ministerial meeting (G/C/M/14, paragraph 4.7).
2. Accordingly, thisdocument reproduces Annex IIIofG/L/112, including theexplanatory notes,
andupdates thelisting ofnotifications setouttherein toinclude allnotifications ofaregular orperiodic
nature received upto31October 1996.
3. Aswiththeoriginal listing, thisinformation isdrawn fromthenotifications which havebeen
entered intotheCentral Registry ofNotifications, aswellassome additional notifications received
butnotyetentered intotheCRN. Thecut-off dateof31October 1996hasnoparticular significance,
butwaschosen inorder topresent asrecent apicture ofthesituation aspossible. Further, thislisting
doesnotaddress thequalitative aspects ofthese notifications, thatis,theextent towhich thecontent
ofthesubmissions satisfies theinformational requirements ofthevarious obligations.G/L/112/Add.1
Page2
EXPLANATORY NOTES
1. Thistablesetsoutnotification obligations ofaregular/periodic nature (i.e.semi-annual, annual,
biennial ortriennial) andnotifications required ona"one-time only" basis. Itdoesnotinclude
adhocnotifications, thatis,those which must beprovided onlyifacertain action istaken.
Italsodoesnotinclude those regular/periodic or"one-time" notification obligations listed in
document G/NOP/W/2/Rev.1, relating toMarks ofOrigin (page 50,item8),Regional
Arrangements (page 52,item13andpage55,item7),Balance ofPayments (page 54,item5)
andtheIntegrated Database (page 52,item15).
2. Thesymbols usedareasfollows:
(a) "X"denotes thatanotification hasbeenreceived intheWTO. Subsequent addenda
orcorrections tonotifications arenotcounted asadditional notifications.
(b) Ablank indicates thatthisisarequirement applicable totheMember concerned, but
thatnonotification hasbeenreceived uptothecut-off date.
(c) "NA" indicates thattherequirement wasnotapplicable forthisWTO Member during
theperiod covered bytheNote.
(d) "0"indicates thatnonotification wasreceived from theMember andthatthisisa
requirement which is:
(i) applicable onlytothose Members maintaining thetypeofmeasure ortaking
theaction inquestion butforwhich itwasnotpossible todetermine whether
theMember maintained thattypeofmeasure ortooktheaction inquestion;
or
(ii) permitting certain Members totakeadvantage ofspecial treatment.
3. Theabbreviations fortheAgreements andUnderstandings shown inthecolumn headings and
theirfulltitles areasfollows:
Column Heading Agreement/Understanding Title
Agriculture Agreement onAgriculture
Textiles and Clothing Agreement onTextiles and Clothing
Technical Barriers toTrade Agreement onTechnical Barriers toTrade
TRIMs Agreement onTrade-Related Investment Measures
Anti-dumping Agreement onImplementation ofArticle VIoftheGATT 1994
Customs Valuation Agreement onImplementation ofArticle VIIofGATT 1994
PSI Agreement onPreshipment Inspection
Rules ofOrigin Agreement onRules ofOrigin
Import Licensing Agreement onImport Licensing Procedures
Subsidies and Countervailing Measures Agreement onSubsidies and Countervailing Measures
Safeguards Agreement onSafeguards
State Trading Understanding ontheInterpretation ofArticle XVII oftheGATT 1994
Quantitative Restrictions (QRs) Decision onNotification Procedures forQuantitative Restrictions (G/L/59)G/L/112/Add.1
Page3
4. On31October 1996, there were125WTO Members. ThelistofWTO Members inthefirst
column, however, comprises 110names astheEuropean Community andits15member States
provide onenotification foreachoftherespective requirements. InthecaseofAgriculture,
Switzerland 'snotifications aretaken tocover Liechtenstein asthese twoMembers haveajoint
Schedule.
5. Thefollowing notes apply tospecific agreements:
Agreement onAgriculture
(a) Notifications maybesubmitted according tovarious bases (calendar, crop, fiscal years,
etc.);theabsenceofanotificationdoesnotnecessarilyindicateanoutstandingobligation
astheymaybedueonlylaterin1996. However, thetimelimitforsubmission ofMA:1
notifications hasnowpassed forallMembers.
(b) ForTables MA:1 andMA:2 (Tariff andother quotas -Article 18.2), notifications are
required onlybyMembers withtariff andother quota commitments recorded in
Section I-B(orSection I-A)ofPartIoftheirSchedules fortheproducts concerned.
(c) ForTable MA:5 (Special Safeguard -Articles 5.7and18.2) notifications arerequired
onlybyMembers having reserved therighttousetheSpecial Safeguard provisions
asindicated inSection I-AofPartIofSchedules.
(d) ForTable DS:1 (Domestic Support -Article 18.2), while allMembers arerequired
tonotify, theleast-developed country Members maynotify every second year(indicated
bythesymbol (NA)), allothers annually.
(e) ForTable ES:1 (Export Subsidies -Article 18.2), anotification isrequired byall
Members whether ornotabaseorannual commitment level isshown inSection II
ofPartIVoftheirSchedule, i.e.,a"nil" return isrequired.
(f) ForTableES:2(TotalexportsinthecontextofExportSubsidies-Articles10and18.2),
anotification isrequired onlybyMembers withexport subsidy reduction commitments
shown inSection IIofPartIVofSchedules and"significant exporters" assetoutin
G/AG/2/Add.1.
(g) ForTable ES:3 (Food Aidinthecontext ofExport Subsidies -Articles 10and18.2)
notificationisrequiredofallfoodaiddonorMembersunlessthisinformationisprovided
forunder (e)above. No"nilreturn" isrequired fromMembers which donotprovide
foodaid.
(h) ForTable NF:1 (Food andother aidinthecontext oftheDecision -Article 16.2),
notification isrequired byalldonor Members inrespect ofactions taken within the
framework oftheDecision onMeasures concerning thePossible Negative Effects of
theReform Programme ontheLeast-Developed andNet-Food Importing Developing
Countries. No"nilreturn" isrequired fromMembers which donotprovide foodaid
orother assistance tothecountries concerned.
Agreement onTextiles andClothing
(a) Notifications under Article 2.1wererequired onlybyCanada, theEC,Norway and
theUnited States.G/L/112/Add.1
Page4
(b) Notifications under Articles 2.6/2.7 were required onlybyMembers which retained
theirrighttousethetransitional safeguard mechanism under Article 6.1plusthefour
Members in(a)above.
(c) Notifications under Article 3.1were required onlybyMembers which maintained
restrictions ontextile andclothing products other thanthose under theMFA.
(d) Notifications under Article 6.1indicating whether ornottheMember wished toretain
therighttousethetransitionalsafeguardmechanismwererequiredofallWTOMembers
except thefourmentioned in(a)above.
Agreement onTrade-Related Investment Measures
(a) Article 5.1requires thenotification ofinvestment measures Members wereapplying
thatwerenotinconformity withtheAgreement ona"one-time" basiswithin 90days
ofthedateofentry intoforce oftheAgreement.
(b) Article 6.2,alsoa"one-time" notification, isnotyetoperational, approval ofanagreed
standard format ispending.
Agreement onImplementation ofArticle VIoftheGATT 1994 (Anti-dumping)
(a) Notifications ofanti-dumping actions taken mustbesupplied semi-annually, pursuant
toArticle 16.4. Thereport fortheJanuary-June 1995 period wasdueon
31August 1995andfortheJuly-December 1995period wasdueon26February 1996.
(b) Fullandintegrated textsoflawsandregulations wererequired ona"one-time" basis
(Article 18.5).
Agreement ontheImplementation ofArticle VIIoftheGATT 1994 (Customs Valuation)
(a) Members thathavemade notifications areshown withan"X". "NA" indicates that
therequirement isnotapplicable tothisWTO Member.
(b) Asspecial anddifferential treatment, Article 20.1permits some developing country
Members todelay theapplication ofthisAgreement foruptofiveyears. Inaddition,
Article 20.2permits some developing country Members todelay application ofcertain
provisions forafurther three years. Annex IIIinitsparagraphs 2,3and4provides
developing countries withthepossibility ofnotifying certain reservations.
(c) Thenotification oflaws andregulations under Article 22.1 (oracommunication
indicating thatthelegislation notified under theTokyo Round Agreement onCustoms
ValuationremainsvalidundertheWTOAgreementonCustomsValuation)andresponse
tothechecklist ofissues are"one-time" requirements ofallMembers.
(d) TheDecisions onthetreatment ofinterest charges inthecustoms value ofimported
goods andonthevaluation ofcarrier media bearing software fordataprocessing
equipment are"one-time" notification obligations forthose Members choosing toapply
these Decisions.G/L/112/Add.1
Page5
Agreement onImport Licensing
(a) Those Members which havenotified areshown withan"X". "NA" indicates thatthe
requirement isnotapplicable tothisWTO Member.
(b) Certain developing country Members candefer theapplication ofsome provisions for
notmorethantwoyearsfromthedateofWTOMembership(Footnote5toArticle2.2).
(c) Replies tothequestionnaire onimport licensing procedures arerequired ofallMembers
by30September eachyear(Article 7.3).
(d) AllMembers arerequired tonotify thenames ofpublications inwhich rules and
information concerning import licensing procedures arepublished andtosubmit copies
ofsuchpublications. AllMembers arerequired tonotify thefulltextoftheirrelevant
lawsandregulations (Articles 1.4(a)/8.2(b)).
Agreement onRules ofOrigin
(a) There aretwo"one-time" notification obligations inthisAgreement, onexisting non-
preferential rules oforigin (Article 5.1)andonexisting preferential rules oforigin
(Annex II,paragraph 4)."X"denotes thatanotification hasbeenreceived.
Agreement onSubsidies andCountervailing Measures
(a) Theannual reports ofsubsidies arerequired notlater than 30June each year
(Article 25.1) andwhere aMember considers thattherearenomeasures requiring such
notification, a"nil" return isnecessary (Article 25.6). Anewandfullreport on
subsidies wasdueon30June1995, andanupdating report wasdueon30June1996.
(b) Notifications ofcountervailing dutyactions taken must besupplied semi-annually
pursuant toArticle 25.11. Those fortheJanuary-June period of1995 were dueon
31August1995andfortheJuly-December1995periodweredueon26February1996.
(c) Two"one-time" notification requirements havenotbeenincluded inthetables dueto
their limited applications: (i)subsidy programmes which areinconsistent withthe
Agreement (Article 28.1). These havebeennotified byChile, Malaysia, Mauritius
andSouth Africa; and(ii)subsidy programmes falling within thescope ofArticle 3
oftheAgreement maintained byMembers intheprocess oftransformation intoamarket
economy (Article 29.3). These havebeennotified bytheCzech Republic, Hungary
andPoland.
(d) AllMembers arerequired tonotify theirlawsandregulations pursuant toArticle 32.6.
Agreement onSafeguards
(a) Programmes tophase-out certain actions must bereported ona"one-time" basis by
Membersconcerned(Article11.2).ThoseMembersthathavenotifiedsuchprogrammes
areshown withan"X", allothers withan"0".
(b) AllMembers must notify their laws, regulations andadministrative procedures
(Article 12.6).G/L/112/Add.1
Page6
(c) Members maintaining certain measures (Articles 10and11.1) must notify these on
a"one-time"basis(Article12.7).Membersthathavemadesuchnotificationsareshown
withan"X", allothers withan"0".
GATT 1994 Article XVII:4(a) andtheUnderstanding ontheInterpretation ofthisArticle
(a) Membersarerequiredtonotifystatetradingenterprises-the1995notificationobligation
wastosubmitnewandfullresponsestothequestionnaireonstatetrading(BISD9S/184-
185)notlaterthan30June1995. Where aMember considers thattherearenoactivities
requiring suchnotification, a"nil"return isnecessary. The1996 notification obligation
istosubmit updating notifications covering anychanges since thenewandfull
notification, andwasdueon30June1996.
Agreement onTechnical Barriers toTrade
(a) AllMembers arerequired tonotify ona"one-time" basis "measures inexistence or
takentoensuretheimplementationandadministrationofthisAgreement"(Article15.2).
(b) Thenotifications bystandardizing bodies intheMember countries thathaveaccepted
theCode ofGood Practice areindicated with"X"; others withan"0".
Agreement onPreshipment Inspection
(a) Pursuant toArticle 5,Members arerequired tonotify thelawsandregulations bywhich
theyputtheAgreement intoforce, aswellasother lawsandregulations onthistopic.
Decision onNotification Procedures forQuantitative Restrictions
(a) On1December 1995, theCouncil forTrade inGoods agreed that"Members shall
make complete notification ofthequantitative restrictions which theymaintain by
31January 1996 andattwo-yearly intervals thereafter ..."(G/L/59).G/L/112/Add.1
Page7
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement
Agriculture Textiles and Clothing
18.2 18.2 5.7/18.2 18.2 18.2 10/18.2 10/18.2 16.2 2.1 2.6/2.7 3.1 6.1
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3Table
NF:1QRs (MFA) First Inte-
grationQRs
(other)Safeguard
Decision
Antigua and Barbuda NA NA NA NA 0 0 NA NA 0
Argentina NA NA NA X X X 0 0 NA X 0 X
Australia X X X X X X 0 0 NA NA 0 X
Bahrain NA NA NA NA 0 0 NA NA 0
Bangladesh NA NA NA (NA) NA 0 0 NA X X X
Barbados X X X NA 0 0 NA NA 0
Belize NA NA NA NA 0 0 NA NA 0
Benin NA NA NA NA NA NA NA NA NA NA 0
Bolivia NA NA NA NA 0 0 NA X 0 X
Botswana NA NA X X NA 0 0 NA NA 0
Brazil X X NA X X X X X NA X 0 X
Brunei Darussalam NA NA NA NA 0 0 NA NA 0
Burkina Faso NA NA NA (NA) NA 0 0 NA 0 X
Burundi NA NA NA (NA) NA 0 0 NA NA 0
Cameroon NA NA NA NA 0 0 NA NA 0
Canada X X X 0 0 X X X NA
Central African Rep. NA NA NA (NA) NA 0 0 NA NA 0
Chad NA NA NA NA NA NA NA NA NA
Chile NA NA NA X X X 0 0 NA NA X X
Colombia X X 0 0 NA X 0 X
Costa Rica X 0 0 NA X 0 X
Côte d'Ivoire NA NA NA NA 0 0 NA 0 X
Cuba NA NA NA X 0 0 NA NA 0 X
Cyprus NA NA NA X 0 0 NA X X X
Czech Republic X X X X X X X 0 NA X 0 X
Djibouti NA NA NA (NA) NA 0 0 NA NA 0
Dominica NA NA NA NA 0 0 NA NA 0
Dominican Republic NA NA NA X NA 0 0 NA X 0 X
EC X 0 0 X X X NA
Ecuador NA NA NA NA NA NA NA NA 0 X
Egypt NA NA NA NA 0 0 NA X X XG/L/112/Add.1
Page8
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Agriculture Textiles and Clothing
18.2 18.2 5.7/18.2 18.2 18.2 10/18.2 10/18.2 16.2 2.1 2.6/2.7 3.1 6.1
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3Table
NF:1QRs (MFA) First Inte-
grationQRs
(other)Safeguard
Decision
ElSalvador NA 0 0 NA X 0 X
Fiji NA NA NA NA NA NA NA NA NA NA 0
Gabon NA NA NA NA 0 0 NA NA 0
Gambia NA NA NA NA NA NA NA NA NA
Ghana NA NA NA NA 0 0 NA NA 0
Grenada NA NA NA NA NA NA NA NA NA NA 0
Guatemala X X X X X NA 0 0 NA X 0 X
Guinea Bissau NA NA NA (NA) NA 0 0 NA NA 0
Guinea, Republic of NA NA NA (NA) NA 0 0 NA NA 0
Guyana NA NA NA NA 0 0 NA NA 0
Haiti NA NA NA NA NA NA NA NA NA NA 0
Honduras NA NA NA X X 0 0 NA X 0 X
Hong Kong NA NA NA X X NA 0 0 NA NA 0 X
Hungary X X X 0 0 NA X X X
Iceland X X X 0 0 NA NA 0 X
India NA NA NA NA 0 0 NA X X X
Indonesia X X 0 0 NA X X X
Israel X X X X X 0 0 NA X X X
Jamaica NA NA NA NA 0 0 NA 0 X
Japan X X X X NA X 0 NA X X X
Kenya NA NA NA NA 0 0 NA X X
Korea X X X NA 0 0 NA X X X
Kuwait NA NA NA NA 0 0 NA NA 0
Lesotho NA NA NA (NA) NA 0 0 NA 0 X
Liechtenstein X X X X X 0 0 NA X 0 X
Macau NA NA NA X X NA 0 0 NA NA X X
Madagascar NA NA NA (NA) NA 0 0 NA NA 0
Malawi NA NA NA (NA) NA 0 0 NA NA 0
Malaysia X X X X X X 0 0 NA X X X
Maldives NA NA NA (NA) NA 0 0 NA NA 0
Mali NA NA NA (NA) NA 0 0 NA NA 0G/L/112/Add.1
Page9
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Agriculture Textiles and Clothing
18.2 18.2 5.7/18.2 18.2 18.2 10/18.2 10/18.2 16.2 2.1 2.6/2.7 3.1 6.1
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3Table
NF:1QRs (MFA) First Inte-
grationQRs
(other)Safeguard
Decision
Malta NA NA NA NA 0 0 NA X X X
Mauritania NA NA NA (NA) NA 0 0 NA NA 0
Mauritius NA NA NA NA 0 0 NA X X X
Mexico 0 0 NA X X X
Morocco X X X X X NA 0 0 NA X X X
Mozambique NA NA NA (NA) NA 0 0 NA NA 0
Myanmar NA NA NA (NA) NA 0 0 NA X 0 X
Namibia NA NA NA 0 0 NA NA 0
New Zealand X X X X X X X X NA NA X X
Nicaragua X X X X NA 0 0 NA X 0 X
Nigeria NA NA NA NA 0 0 NA 0 X
Norway X X X X X 0 0 X X 0 NA
Pakistan NA NA NA X X 0 0 NA X X X
Papua New Guinea NA NA NA NA NA NA NA NA NA NA 0
Paraguay NA NA NA NA 0 0 NA X 0 X
Peru NA NA NA X NA 0 0 NA X X X
Philippines X X X X 0 0 NA X X X
Poland X X X X 0 0 NA X 0 X
Qatar NA NA NA NA NA NA NA NA NA NA 0
Romania X X X X 0 0 NA X 0 X
Rwanda NA NA NA NA NA NA NA NA NA NA 0
Saint Kitts and Nevis NA NA NA NA NA NA NA NA NA X X X
Saint Lucia NA NA NA NA 0 0 NA NA 0
Saint Vincent &Gre. NA NA NA NA 0 0 NA NA 0
Senegal NA NA NA NA 0 0 NA 0 X
Sierra Leone NA NA NA (NA) NA 0 0 NA NA 0
Singapore NA NA NA X X NA 0 0 NA NA X X
Slovak Republic X X X X X X X 0 NA X 0 X
Slovenia X X NA X X NA 0 0 NA X X X
Solomon Islands NA NA NA NA NA NA NA NA NA NA 0
South Africa X X X X 0 0 NA X 0 XG/L/112/Add.1
Page10
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Agriculture Textiles and Clothing
18.2 18.2 5.7/18.2 18.2 18.2 10/18.2 10/18.2 16.2 2.1 2.6/2.7 3.1 6.1
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3Table
NF:1QRs (MFA) First Inte-
grationQRs
(other)Safeguard
Decision
SriLanka NA NA NA NA 0 0 NA X X X
Suriname NA NA NA NA 0 0 NA NA 0
Swaziland NA NA NA 0 0 NA NA 0
Switzerland X X X X X 0 0 NA X 0 X
Tanzania NA NA NA (NA) NA 0 0 NA NA 0
Thailand X X X X X X 0 0 NA X X X
Togo NA NA NA (NA) NA 0 0 NA NA 0
Trinidad and Tobago NA NA NA X NA 0 0 NA 0 X
Tunisia X X X X NA 0 0 NA X 0 X
Turkey NA NA NA X X X 0 0 NA X 0 X
Uganda NA NA NA (NA) NA 0 0 NA NA 0
United Arab Emirates NA NA NA NA NA NA NA NA NA NA 0
United States X X X X 0 0 X X X NA
Uruguay NA NA X X X X 0 X NA X 0 X
Venezuela X 0 0 NA X X X
Zambia NA NA NA (NA) NA 0 0 NA X 0 X
Zimbabwe NA NA NA 0 0 NA NA 0G/L/112/Add.1
Page11
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
TRIMs Anti-dumping Customs Valuation
5.1 16.4 18.5 20.1 20.2 Annex
III(2)Annex
III(3)Annex
III(4)22 Decisions
Invest-
ment
Meas-
uresSemi-annual Laws
/RegsDeferred
applic-
ationDeferred
applic-
ationMinim-
um
valuesReserv
-ations
Art. 4Reserv-
ations
Art.5.2Laws/
RegsCheck
-listInterest
chargesCarrier
Media
Jan-
June
95July-
Dec
95Jan-
June
96
Antigua and Barbuda 0
Argentina X X X X X NA NA NA X X X X X
Australia 0 X X X X NA NA NA NA NA X X X X
Bahrain 0
Bangladesh 0 X X X X X NA NA
Barbados X X X X
Belize 0
Benin 0 NA
Bolivia 0 X X X X X NA NA
Botswana 0 X NA NA NA NA NA
Brazil 0 X X X X NA NA NA X X X
Brunei Darussalam 0 X X NA NA
Burkina Faso 0 X X X X X NA NA
Burundi 0 X X NA NA
Cameroon 0 X X X X NA NA
Canada 0 X X X X NA NA NA NA NA X NA X X
Central African Rep. 0 X NA NA
Chad 0 NA NA NA NA
Chile X X X X X X X X X X NA NA
Colombia X X X X X X X X X X NA NA
Costa Rica X X X X X X X X NA NA
Côte d'Ivoire 0 X X X X X X NA NA
Cuba X X X X X X NA NA
Cyprus X X X X X NA NA NA NA NA NA X X
Czech Republic 0 X X X X NA NA NA NA NA X X X X
Djibouti 0 X X X X X NA NA
Dominica 0
Dominican Republic X X X X X X X X X X NA NA
EC X X X X X NA NA NA NA NA X NA X X
Ecuador X X X X X X NA NA
Egypt X X X X X X X X X NA NAG/L/112/Add.1
Page12
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
TRIMs Anti-dumping Customs Valuation
5.1 16.4 18.5 20.1 20.2 Annex
III(2)Annex
III(3)Annex
III(4)22 Decisions
Invest-
ment
Meas-
uresSemi-annual Laws
/RegsDeferred
applic-
ationDeferred
applic-
ationMinim-
um
valuesReserv
-ations
Art. 4Reserv-
ations
Art.5.2Laws/
RegsCheck
-listInterest
chargesCarrier
Media
Jan-
June
95July-
Dec
95Jan-
June
96
ElSalvador 0 X X X X X X X NA NA
Fiji 0 NA
Gabon 0 X X X X X NA NA
Gambia 0 NA NA NA NA
Ghana 0 X NA NA
Grenada 0 NA
Guatemala 0 X X X X X X X X X NA NA
Guinea Bissau 0
Guinea, Republic of 0 X
Guyana 0
Haiti 0 NA
Honduras X X X X X X X X X NA NA
Hong Kong 0 X X X X NA NA NA NA NA X NA X X
Hungary 0 X X X X NA NA NA NA NA X NA X X
Iceland 0 X X X X NA NA NA NA NA
India X X X X X NA NA NA X X X NA
Indonesia X X X X X X X X X NA NA
Israel 0 X X X X X X X NA NA
Jamaica 0 X X X X X X X X NA NA
Japan X X X X X NA NA NA NA NA X NA X X
Kenya 0 X X X X X X NA NA
Korea 0 X X X X NA NA NA NA NA X NA X X
Kuwait 0 X X X X NA NA
Lesotho 0 NA NA NA NA NA X X
Liechtenstein 0 X X X NA NA NA NA NA
Macau 0 X NA NA NA NA NA X NA
Madagascar 0 X X X NA NA
Malawi 0 X NA NA NA X NA
Malaysia X X X X X X X X X X NA NA
Maldives 0 X
Mali 0 X X NA NAG/L/112/Add.1
Page13
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
TRIMs Anti-dumping Customs Valuation
5.1 16.4 18.5 20.1 20.2 Annex
III(2)Annex
III(3)Annex
III(4)22 Decisions
Invest-
ment
Meas-
uresSemi-annual Laws
/RegsDeferred
applic-
ationDeferred
applic-
ationMinim-
um
valuesReserv
-ations
Art. 4Reserv-
ations
Art.5.2Laws/
RegsCheck
-listInterest
chargesCarrier
Media
Jan-
June
95July-
Dec
95Jan-
June
96
Malta 0 X X X X X X X X X NA NA
Mauritania 0 X X X NA NA
Mauritius X X X X NA NA
Mexico X X X X X NA X NA X X X X X X
Morocco 0 X X X X X X NA X X NA NA
Mozambique 0
Myanmar 0 X X X X X NA NA
Namibia 0
New Zealand 0 X X X X NA NA NA NA NA X NA X X
Nicaragua X X X X X X NA NA
Nigeria X X X X NA NA
Norway 0 X X X X NA NA NA NA NA X NA X X
Pakistan X X X X X X X X NA NA
Papua New Guinea NA
Paraguay 0 X X X X X NA NA
Peru X X X X X X X X X X NA NA
Philippines X X X X X X X X X X NA NA
Poland X X X X NA NA NA NA NA
Qatar NA
Romania X X X X X X NA X X
Rwanda NA
Saint Kitts and Nevis 0 NA
Saint Lucia X X X X
Saint Vincent &Gre. 0
Senegal 0 X X X X X X NA NA
Sierra Leone 0
Singapore X X X X X X X X X X NA NA
Slovak Republic 0 X X X X NA NA NA NA NA X X
Slovenia X X X X X NA NA NA NA NA X
Solomon Islands NA NA
South Africa X X X X NA NA NA NA NA X NA X XG/L/112/Add.1
Page14
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
TRIMs Anti-dumping Customs Valuation
5.1 16.4 18.5 20.1 20.2 Annex
III(2)Annex
III(3)Annex
III(4)22 Decisions
Invest-
ment
Meas-
uresSemi-annual Laws
/RegsDeferred
applic-
ationDeferred
applic-
ationMinim-
um
valuesReserv
-ations
Art. 4Reserv-
ations
Art.5.2Laws/
RegsCheck
-listInterest
chargesCarrier
Media
Jan-
June
95July-
Dec
95Jan-
June
96
SriLanka X X X X X X X X X NA NA
Suriname 0 X
Swaziland 0 X X
Switzerland X X X X X NA NA NA NA NA X NA
Tanzania 0 X
Thailand X X X X X X X X X X NA NA
Togo 0 X X X X X NA NA
Trinidad and Tobago X X
Tunisia 0 X X X X X X X X NA NA
Turkey 0 X X X X NA X NA X X X
Uganda 0 X X X X X
United Arab Emirates 0 NA X X X X X NA NA NA
United States 0 X X X X NA NA NA NA NA X NA X X
Uruguay X X X X X X X X X X NA NA
Venezuela X X X X X X X X X X NA NA
Zambia X X X X X X X X X NA NA
Zimbabwe 0 X X X X X X X XG/L/112/Add.1
Page15
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Import Licensing Rules ofOrigin Subsidies and Countervailing Measures Technical Barriers to
Trade
2.2 7.3 1.4(a)/
8.2(b)5.1 Annex II(4) 25.1 25.11 32.6 15.2 Annex 3(C)
Deferred
appli-
cationReplies to
question-
nairePublic-
ations/
laws/regsNon-
pref.
rulesPref. rules Annual
Report
(new and
full, due
30/6/95)Annual
Report
(update,
due
30/6/96)Semi-annual Laws/
RegsLaws/
RegsAccept-
ance of
code
Jan-
June
95July-
Dec
95Jan-
June
96
Antigua and Barbuda
Argentina X X X X X X X X X X
Australia NA X X X X X X X X X X X X
Bahrain X
Bangladesh X
Barbados X X X X
Belize
Benin NA
Bolivia X X X X X X X X
Botswana X X X
Brazil X X X X X X X X X X X
Brunei Darussalam X X
Burkina Faso X
Burundi
Cameroon X
Canada NA X X X X X X X X X X
Central African Rep.
Chad NA NA
Chile NA X X X X X X X X X X X X
Colombia X X X X X X X X X X X X
Costa Rica X X X X X X X X
Côte d'Ivoire X X X
Cuba X X X X X X X X X
Cyprus X X X X X X X
Czech Republic NA X X X X X X X X X
Djibouti
Dominica
Dominican Republic X X X X X X X X
EC NA X X X X X X X X X X X
Ecuador X X NA X X
Egypt NA X X X X XG/L/112/Add.1
Page16
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Import Licensing Rules ofOrigin Subsidies and Countervailing Measures Technical Barriers to
Trade
2.2 7.3 1.4(a)/
8.2(b)5.1 Annex II(4) 25.1 25.11 32.6 15.2 Annex 3(C)
Deferred
appli-
cationReplies to
question-
nairePublic-
ations/
laws/regsNon-
pref.
rulesPref. rules Annual
Report
(new and
full, due
30/6/95)Annual
Report
(update,
due
30/6/96)Semi-annual Laws/
RegsLaws/
RegsAccept-
ance of
code
Jan-
June
95July-
Dec
95Jan-
June
96
ElSalvador X X X X
Fiji NA
Gabon X
Gambia NA NA
Ghana X
Grenada NA
Guatemala X X X
Guinea Bissau
Guinea, Republic of X
Guyana
Haiti NA
Honduras X X X X X X X X
Hong Kong NA X X X X X X X X X X X
Hungary NA X X X X X X X X X X
Iceland NA X X X X X
India NA X X X X X X X X X
Indonesia X X X X X X X X X
Israel X X X X X
Jamaica X X X X X
Japan NA X X X X X X X X X X X X
Kenya X X X X X
Korea X X X X X X X X
Kuwait X X
Lesotho
Liechtenstein NA X X X X
Macau
Madagascar X X
Malawi X
Malaysia X X X X X X X X X X
Maldives X
MaliG/L/112/Add.1
Page17
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Import Licensing Rules ofOrigin Subsidies and Countervailing Measures Technical Barriers to
Trade
2.2 7.3 1.4(a)/
8.2(b)5.1 Annex II(4) 25.1 25.11 32.6 15.2 Annex 3(C)
Deferred
appli-
cationReplies to
question-
nairePublic-
ations/
laws/regsNon-
pref.
rulesPref. rules Annual
Report
(new and
full, due
30/6/95)Annual
Report
(update,
due
30/6/96)Semi-annual Laws/
RegsLaws/
RegsAccept-
ance of
code
Jan-
June
95July-
Dec
95Jan-
June
96
Malta X X X X X X X X X
Mauritania
Mauritius X X X X X X X
Mexico NA X X X X X X X X
Morocco X X X X X X X X X
Mozambique
Myanmar X
Namibia
New Zealand NA X X X X X X X X X X X X
Nicaragua X X X X X
Nigeria NA X X X
Norway NA X X X X X X X X X X X X
Pakistan NA X X X X X
Papua New Guinea NA
Paraguay X X X X
Peru X X X X X X X X X X
Philippines NA X X X X X X X X X X
Poland NA X X X X X X
Qatar NA
Romania NA X X X X X X X X X X X X
Rwanda NA
Saint Kitts and Nevis NA
Saint Lucia X X X
Saint Vincent &Gre.
Senegal X X X X X X
Sierra Leone
Singapore NA X X X X X X X X X X X X
Slovak Republic NA X X X X X X X X X
Slovenia NA X X X X X X X X
Solomon Islands NA NA
South Africa NA X X X X XG/L/112/Add.1
Page18
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Import Licensing Rules ofOrigin Subsidies and Countervailing Measures Technical Barriers to
Trade
2.2 7.3 1.4(a)/
8.2(b)5.1 Annex II(4) 25.1 25.11 32.6 15.2 Annex 3(C)
Deferred
appli-
cationReplies to
question-
nairePublic-
ations/
laws/regsNon-
pref.
rulesPref. rules Annual
Report
(new and
full, due
30/6/95)Annual
Report
(update,
due
30/6/96)Semi-annual Laws/
RegsLaws/
RegsAccept-
ance of
code
Jan-
June
95July-
Dec
95Jan-
June
96
SriLanka X X X X X X
Suriname X X
Swaziland X X X
Switzerland NA X X X X X X X X X
Tanzania X
Thailand X X X X X X X X X X
Togo
Trinidad and Tobago X X X X X X X X
Tunisia X X X X X X X X X X X
Turkey X X X X X X X X X X X
Uganda X X X X X X X
United Arab Emirates X X NA X
United States NA X X X X X X X X X X
Uruguay X X X X X X X X X
Venezuela X X X X X X X X X
Zambia X X X X X
Zimbabwe X X X XG/L/112/Add.1
Page19
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Safeguards State Trading PSI QRs
11.2 12.6 12.7 12.7 XVII(4)(a) XVII(4)(a) 5 G/L/59
Phase-
out
timetableLaws/
RegsExisting
11.1
measuresPre-
existing
Art. XIXAnnual state-
trading activities
(new and full
notif, due 30/6/95)Annual state-
trading activities
(update notif,
due 30/6/96)Laws/
RegsBiennial
report
Antigua and Barbuda 0 0 0
Argentina 0 X 0 0 X
Australia 0 X 0 0 X X X
Bahrain 0 0 0
Bangladesh 0 0 0
Barbados 0 0 0 X
Belize 0 0 0
Benin 0 0 0
Bolivia 0 X 0 0
Botswana 0 0 0
Brazil 0 X 0 0 X X
Brunei Darussalam 0 0 0
Burkina Faso 0 0 0
Burundi 0 0 0
Cameroon 0 0 0
Canada 0 X X X X X X
Central African Rep. 0 0 0
Chad 0 0 0
Chili 0 X 0 0 X X X X
Colombia 0 X 0 X X X X
Costa Rica 0 X X X X X
Côte d'Ivoire 0 X 0 0 X X
Cuba 0 X 0 0 X
Cyprus X X 0 X X
Czech Republic 0 X 0 0 X X
Djibouti 0 0 0
Dominica 0 0 0
Dominican Republic 0 X 0 0 X
EC X X X X X X X X
Ecuador 0 X 0 0
Egypt 0 X 0 0G/L/112/Add.1
Page20
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Safeguards State Trading PSI QRs
11.2 12.6 12.7 12.7 XVII(4)(a) XVII(4)(a) 5 G/L/59
Phase-
out
timetableLaws/
RegsExisting
11.1
measuresPre-
existing
Art. XIXAnnual state-
trading activities
(new and full
notif, due 30/6/95)Annual state-
trading activities
(update notif,
due 30/6/96)Laws/
RegsBiennial
report
ElSalvador 0 X 0 0
Fiji 0 0 0
Gabon 0 0 0
Gambia 0 0 0
Ghana 0 X 0 0 X
Grenada 0 0 0
Guatemala 0 X 0 0
Guinea Bissau 0 0 0
Guinea, Republic of 0 X 0 0 X
Guyana 0 0 0
Haiti 0 0 0
Honduras 0 X 0 0 X
Hong Kong 0 X X X X X X X
Hungary 0 X 0 0 X X
Iceland 0 X 0 0 X X
India 0 X X X X X X
Indonesia 0 X X X X X X
Israel 0 X 0 0 X X
Jamaica 0 0 0 X X
Japan 0 X 0 0 X X X
Kenya 0 X 0 0
Korea X X X X X
Kuwait 0 0 0
Lesotho 0 0 0
Liechtenstein 0 X X
Macau 0 X 0 0 X X
Madagascar 0 0 0 X
Malawi 0 0 0
Malaysia 0 X X X X X
Maldives 0 X 0 0
Mali 0 0 0G/L/112/Add.1
Page21
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Safeguards State Trading PSI QRs
11.2 12.6 12.7 12.7 XVII(4)(a) XVII(4)(a) 5 G/L/59
Phase-
out
timetableLaws/
RegsExisting
11.1
measuresPre-
existing
Art. XIXAnnual state-
trading activities
(new and full
notif, due 30/6/95)Annual state-
trading activities
(update notif,
due 30/6/96)Laws/
RegsBiennial
report
Malta 0 X 0 0 X X
Mauritania 0 0 0
Mauritius X X X X X
Mexico 0 X 0 0
Morocco 0 X 0 0 X
Mozambique 0 0 0
Myanmar 0 X 0 0
Namibia 0 0 0
New Zealand 0 X 0 0 X X X X
Nicaragua 0 X 0 0 X
Nigeria 0 X 0 0
Norway 0 X 0 0 X X X X
Pakistan 0 X X X X X
Papua New Guinea
Paraguay 0 X 0 0
Peru 0 X X X X X X X
Philippines 0 X 0 0 X X X
Poland 0 X 0 0 X X
Qatar 0 0 0
Romania 0 X 0 0 X
Rwanda
Saint Kitts and Nevis 0 0 0
Saint Lucia 0 X 0 0 X
Saint Vincent &Gre. 0 0 0
Senegal 0 X X X
Sierra Leone 0 0 0
Singapore 0 X X X X X X X
Slovak Republic 0 X 0 0 X X
Slovenia X X X 0 X X
Solomon Islands
South Africa X X X X X X XG/L/112/Add.1
Page22
Notifications Made Under theProvisions oftheAgreements
inAnnex 1AoftheWTO Agreement (cont'd)
Safeguards State Trading PSI QRs
11.2 12.6 12.7 12.7 XVII(4)(a) XVII(4)(a) 5 G/L/59
Phase-
out
timetableLaws/
RegsExisting
11.1
measuresPre-
existing
Art. XIXAnnual state-
trading activities
(new and full
notif, due 30/6/95)Annual state-
trading activities
(update notif,
due 30/6/96)Laws/
RegsBiennial
report
SriLanka 0 X 0 0
Suriname 0 0 0 X
Swaziland 0 0 0
Switzerland 0 X X X X X X
Tanzania 0 0 0
Thailand 0 X X 0 X X
Togo 0 0 0
Trinidad and Tobago 0 X 0 0
Tunisia 0 X 0 0 X X X
Turkey 0 X 0 0 X X
Uganda 0 X 0 0 X X
United Arab Emirates 0 0 0 X X X
United States 0 X X X X X X
Uruguay 0 X 0 0 X X X
Venezuela 0 X X X X X
Zambia 0 X 0 0 X
Zimbabwe 0 X 0 0 XSECTION II
TEXTILES MONITORING BODYWORLD TRADE G/L/113
4October 1996
ORGANIZATION(96-4055)
REPORT OFTHE TEXTILES MONITORING BODY
SUMMARY
Thisreport wasadopted andisbeing presented bytheTextiles Monitoring Body (TMB) in
thecontext ofthepreparation fortheSingapore Ministerial Conference. Itreflects thework carried
outbytheTMB onthebasis ofMembers 'notifications.
1. General
Chapter I(Introduction) provides abrief description oftheAgreement onTextiles and
Clothing (ATC) andtheroleoftheTMB. Italsogives information onthereports adopted bytheTMB
aswellasthenotifications submitted toitandtheircirculation toMembers.
2. Implementation
Chapters IItoIXcontain detailed information ontheimplementation ofthedifferent provisions
oftheATC. Chapter Xprovides information andanassessment onthefunctioning oftheTMB.
3. Built-in-agenda
(i) According toparagraphs 8(a)and11ofArticle 2oftheATC, programmes forthe
second stage ofintegration (1January 1998 -31December 2001) willhavetobenotified to
theTMB notlaterthanby31December 1996.
(ii) Pursuant toparagraph 11ofArticle 8,theCouncil forTrade inGoods shallconduct
amajor review ontheimplementation oftheATC during thefirststage ofintegration before
theendof1997. Toassist inthisreview, theTMB shalltransmit totheCouncil forTrade
inGoods acomprehensive report ontheimplementation oftheATC during thisfirststage
bytheendofJuly1997.
4. Observations, assessments andrecommendations
(i) Observations andassessments bytheTMB withrespect totheimplementation ofthe
different provisions oftheATC arereproduced inboldletters inthereport (integration -
paragraphs 11to16and21to27;quantitative restrictions under Article 2-paragraphs 34,
35and41;safeguard actions under Article 6-paragraphs 82to84;Article 7-paragraphs 99
to101; compliance withnotification requirements -paragraphs 19and102; andfunctioning
oftheTMB -paragraphs 111to122).
(ii) Recommendations aretobefound inparagraphs 103,107and119(printed inbold
letters andunderlined).G/L/113
Page2
INDEX
Page
I. INTRODUCTION ...........................................4
A. TheAgreement onTextiles andClothing (ATC) andthe
roleoftheTextiles Monitoring Body (TMB) ......................4
B. Reports bytheTMB .....................................4
C. Notification byMembers ..................................4
II. INTEGRATION .............................................5
A. Articles 2.6and2.7(a) ....................................5
B. Articles 6.1,2.6and2.7(b) ................................6
III. ARTICLE 2-QUANTITATIVE RESTRICTIONS MAINTAINED OR
NOTIFIED UNDER THE ARRANGEMENT REGARDING INTERNATIONAL
TRADE INTEXTILES (MFA), INFORCE ON31DECEMBER 1994 ..........8
A. Article 2.1-Restrictions inforce on31December 1994 ..............8
B. Article 2.2-Observations withregard toArticle 2.1notifications .........8
C. Article 2.15-Elimination ofrestrictions maintained under Article 2.......9
D. Article 2.17-Administration ofrestrictions ......................9
E. Article 2.18-Advanced implementation ofgrowth ratesfor
certain Members .......................................10
IV. RESTRICTIONS OTHER THAN THOSE MAINTAINED ORNOTIFIED
UNDER THE ARRANGEMENT REGARDING INTERNATIONAL TRADE
INTEXTILES (MFA) .........................................11
A. Review ofnotifications made under Article 3.1....................11
B. Programmes notified under Article 3.2(b) ........................11
C. Changes inexisting restrictions notified under Article 3.3 .............12
V. SAFEGUARD ACTIONS UNDER ARTICLE 6........................12
A. Review ofunilateral restraint measures applied under Article 6.10,
andfollow-up ofTMB recommendations ........................13
B. Agreed restraint measures notified under Article 6.9.................15
C. Unilateral measures taken under Article 6.11......................19
D. Present status ofsafeguard actions taken pursuant toArticle 6...........19
VI. OTHER MEASURES, MATTERS ORINFORMATION SUBMITTED
TOTHE TMB ..............................................20
A. Matters submitted under paragraphs 5and/or 6ofArticle 8............20
B. Matters submitted under paragraph 10ofArticle 8..................22
C. Information submitted totheTMB ............................22G/L/113
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Page
VII. IMPLEMENTATION OFSPECIAL PROVISIONS INTHE ATC
RELATED TOTHE SPECIAL INTERESTS OFCERTAIN WTO
MEMBERS ...............................................23
A. Article 1.4...........................................23
B. Special provisions infavour ofdeveloping andleast-developing
country Members .......................................23
VIII. ARTICLE 7-COMMITMENTS UNDERTAKEN ASARESULT
OFTHE URUGUAY ROUND ...................................23
IX. COMPLIANCE WITH NOTIFICATION REQUIREMENTS
UNDER THE ATC ..........................................24
X. FUNCTIONING OFTHE TMB ..................................25
A. TMB working procedures ..................................25
B. Discharging functions onanadpersonam basis ....................25
C. Meetings oftheTMB ....................................25
D. Circulation ofreports, Chairman 'snotes, derestriction of
TMB documents .......................................25
E. Overall assessment ......................................26
ANNEX I Notifications Received Pursuant toParagraphs 6and7ofArticle 2........29
ANNEX II Application ofTransitional Safeguard Mechanism under Article 6
oftheAgreement onTextiles andClothing .......................30
ANNEX III TMB Meetings ........................................32G/L/113
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I. INTRODUCTION
A. TheAgreement onTextiles andClothing (ATC) andtheroleoftheTextiles Monitoring
Body (TMB)
1. Asspecified inparagraphs 1ofArticle 1andArticle 9,1theATC setsoutprovisions tobe
applied byMembers during atransition period oftenyears fortheintegration ofthetextiles andclothing
sector intoGATT 1994. TheATC andallrestrictions thereunder shall stand terminated on
1January 2005, onwhich datethetextiles andclothing sector shallbefullyintegrated intoGATT 1994.
There shallbenoextension oftheATC.
2. TheTMB wasestablished inorder tosupervise theimplementation oftheATC, toexamine
allmeasurestakenunderitsprovisionsandtheirconformitytherewith,andtotaketheactionsspecifically
required ofitbytheATC.
3. Thecomposition oftheTMB forthefirststage ofimplementation oftheATC (1995 to1997)
wasdecided bytheGeneral Council on31January 1995 (WT/L/26) andsubsequently modified by
theGeneralCouncilon6February1996(WT/L/26/Add.1).AmbassadorAndrásSzepesiwasappointed
Chairman oftheTMB forthesameperiod bytheGeneral Council on31January 1995(WT/GC/M/1).
ThelistofTMB members, alternates, observers, andsuccessive changes, arecontained inparagraphs 2
ofG/TMB/R/1, 3,5,9,10,11,15and18.
B. Reports bytheTMB
4. TheTMB adopted reports ofitsmeetings, which werecirculated toWTO Members fortheir
information (G/TMB/R/1 to18). Asprovided forintheATC, atleastfivemonths before theend
ofeachstage oftheintegration process, theTMB shalltransmit totheCouncil forTrade inGoods
acomprehensive report ontheimplementation oftheATC during therespective stage. Thefirstsuch
comprehensive report isduebytheendofJuly1997.
5. TheGeneral Council decided atitsmeeting on15November 1995onprocedures tobefollowed
bytherelevant WTO bodies foranannual overview ofWTO activities andforreporting under the
WTO (WT/L/105). Pursuant tothisdecision, thefirstannual report oftheTMB wassubmitted in
November 1995 andiscontained indocument G/L/40.
6. Atthemeeting oftheGeneral Council on16April 1996, theChairman made astatement with
regard tothereporting procedures fortheSingapore Ministerial Conference (WT/L/145). Thepresent
report isbeing presented bytheTMB bearing inmind alltheelements contained inthisstatement.
Itcovers theperiod 1January 1995to1October 1996, andprovides anoverview oftheimplementation
ofthedifferent provisions oftheATC. Itcontains information onthework carried outbytheTMB
onthebasis ofMembers ’notifications andincludes some additional observations made bytheTMB
whenpreparingandadoptingthiscontributiontothepreparationoftheSingaporeMinisterialConference.
C. Notification byMembers
7. TheATC contains animportant number ofnotification requirements, some withaspecific
time-frame, andsome ad-hoc (mainly related tospecific actions taken byindividual Members).
1Unless otherwise specified, allArticles mentioned refer totheAgreement onTextiles andClothing.G/L/113
Page5
8. According totheATC, incarrying outitsfunctions theTMB “shallrelyonnotifications and
information supplied bytheMembers under therelevant Articles... ”oftheATC.
9. Inmost cases notifications aretobesubmitted totheTMB, andarecirculated bytheTMB
toallWTO Members forinformation andtransparency. Inlinewiththeworking procedures adopted
bytheTMB, notifications received pursuant toArticles 2.1,2.2,2.7(a) and(b),2.8(a)and(b),2.10,
2.11, 2.15, 3.1,3.3,3.4,6.1and7.2oftheATC arecirculated toWTO Members without delay.
Notifications addressed totheTMB forreview other thanthose listed above are,aftersuchreview,
alsotransmitted toWTO Members (G/TMB/R/1 and11).
II. INTEGRATION
10. Paragraph 6ofArticle 2states that“onthedateofentry intoforce oftheWTO Agreement,
eachMember shallintegrate intoGATT 1994products which accounted fornotlessthan16percent
ofthetotalvolume oftheMember ’s1990 imports oftheproducts intheAnnex, interms ofHSlines
orcategories ”.TheMembers which hadmade anotification under paragraph 1ofArticle 2(see
Chapter III)arecovered byparagraph 7(a)ofArticle 2,andtheother Members byparagraph 7(b)
ofthesame Article.
A. Articles 2.6and2.7(a)
11. Pursuant toparagraphs 6and7(a)ofArticle 2,notifications made totheGATT Secretariat
byCanada, theEuropean Communities, Norway andtheUnited States nolaterthan1October 1994,
inaccordance withadecision taken byMinisters atMarrakesh on15April 1994, weremade available
totheTMB forthepurposes ofparagraph 21ofArticle 2oftheATC. Inreviewing thesenotifications
theTMB noted that,inaccordance withparagraph 6ofArticle 2,thevolume ofproducts integrated
byCanada, theEuropean Communities, Norway andtheUnited States amounted toatleast16percent
ofthetotalvolume oftherespective Members ’1990 imports oftheproducts falling under thecoverage
oftheATC(Canada:16.34percent;EuropeanCommunities:16.4percent;Norway:16.26percent;
UnitedStates:16.21percent),includingproductsfromeachofthefourgroups:topsandyarns,fabrics,
made-up textile products, andclothing (seeAnnex I).Notwithstanding theprovisions ofparagraphs 6
and7ofArticle 2,theTMB wasaware that-withtheexception ofCanada affecting oneproduct
(work gloves) -theproducts thusintegrated werenot,prior totheirintegration intoGATT 1994,
subject toquantitative restrictions notified under paragraph 1ofArticle 2.
12. Paragraph 6ofArticle 2required Members tointegrate products selected from eachofthe
fourgroupsmentionedinparagraph11above;theintegrationprogrammessubmittedbytheMembers
concerned forthefirststage ofintegration metthisrequirement. TheTMB observed, however,
thattheshare oftops,yarns andfabrics intheintegration programmes notified under paragraphs 6
and7(a)ofArticle 2wassignificantly higher thanthatofmade-up textile products andclothing
(seeAnnex I).
13. Paragraph 6ofArticle 2alsorequired Members tointegrate inthefirststage products which
accounted fornotlessthan16percentofthetotalvolume oftheMember ’s1990imports oftheproducts
intheAnnex. However, astheproducts integrated were concentrated intherelatively less
value-added range ofproducts, itwould appear thattheshare ofproducts integrated, expressed
invalue terms, wassmaller thanthatexpressed involume.
14. Theintegration ofaproduct intoGATT 1994 pursuant toparagraph 6ofArticle 2has
twoconsequences: first, theprovisions ofArticle 6oftheATC cannot beinvoked withrespectG/L/113
Page6
toimports ofsuchproduct; second, anyquantitative restriction onthisproduct notified under
Article 2oftheATC iseliminated.
15. Inlight oftheobservation made bytheTMB reproduced inthelastsentence of
paragraph 11above, itcanbeobserved thattheincreases inaccess tothemarkets ofMembers
having notified restrictions pursuant toparagraph 1ofArticle 2havebeenlimited todate, with
oneexception, totheannual increases inthelevels ofrestrictions required under paragraphs 13
and,ifapplicable, 18ofArticle 2,andinonecasetotherecourse totheprovision ofparagraph 15
ofthesame Article. TheTMB alsoobserved thatnonotification hadbeen made under
paragraph 10ofthesame Article, which provides thepossibility ofintegrating products earlier
thatprovided forintheintegration programmes notified.
16. TheTMB wasaware oftheconcern expressed byseveral Members that,should thepattern
ofselection oftheproducts tobeintegrated inthesecond andthird stages pursuant toparagraphs
8(a)and(b)ofArticle 2reproduce thatofthefirststage, theimplementation oftheintegration
ofthetextiles andclothing sector intoGATT 1994on1January 2005, asstated inparagraph 8(c)
ofArticle 2,would prove difficult. TheTMB wasequally aware that, intheviewofsome other
Members, theeventual integration ofthetextiles andclothing sector intoGATT hadtobeseen
alsointhecontext oftheliberalization builtintotheATC inparagraphs 13,14and,ifapplicable,
18ofArticle 2.
B. Articles 6.1,2.6and2.7(b)
17. According toparagraph 9ofArticle 2,“Members which havenotified, pursuant toparagraph 1
ofArticle 6,theirintention nottoretain therighttousetheprovisions ofArticle 6shall, forthepurposes
ofthisAgreement, bedeemed tohaveintegrated theirtextiles andclothing products intoGATT 1994.
SuchMembers shall, therefore, beexempted fromcomplying withtheprovisions ofparagraphs 6to
8and11”ofthesame Article. Thereview oftheexamination bytheTMB ofnotifications received
under paragraphs 6and7(b)ofArticle 2has,therefore, tobemade inthecontext ofnotifications made
pursuant toparagraph 1ofArticle 6.
Article 6.1
18. Paragraph1ofArticle6statesthat“MembersnotmaintainingrestrictionsfallingunderArticle2
shallnotify theTMB ...astowhether ornottheywishtoretain therighttousetheprovisions ofthis
Article ”.TheTMB received suchnotifications fromfifty-eight WTO Members. TheTMB tooknote
thatthefollowing fifty-one Members hadnotified thattheywished toretain theright tousethe
provisions ofArticle 6:Argentina, Bangladesh, Bolivia, Brazil, Colombia, Costa Rica, Côted'Ivoire,
Cyprus, theCzech Republic, theDominican Republic, Ecuador, Egypt, ElSalvador, Guatemala,
Honduras, Hungary, India, Indonesia, Israel, Jamaica, Japan, Kenya, Korea, Lesotho, Malaysia, Malta,
Mauritius,Mexico,Morocco,Myanmar,Nicaragua,Nigeria,Pakistan,Paraguay,Peru,thePhilippines,
Poland, Romania, Senegal, theSlovak Republic, Slovenia, South Africa, SriLanka, Switzerland,
Thailand, Trinidad andTobago, Tunisia, Turkey, Uruguay, Venezuela andZambia. Italsotooknote
thatthefollowing seven WTO Members didnotwish toretain theright tousetheprovisions of
Article 6:Australia, Chile, Cuba, Hong Kong, Macau, NewZealand andSingapore.
19. TheTMB wishes todraw theattention ofMembers tothefactthattheMembers which
didnotmaintain restrictions falling under Article 2had,pursuant toparagraph 1ofArticle 6,
theobligation tonotify within aspecific time-frame whether ornottheywished toretain theright
tousetheprovisions ofArticle 6.TheTMB noted withconcern thatasignificant number of
suchMembers didnotsubmit anotification under thisparagraph.G/L/113
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Articles 2.6and2.7(b)
20. TheTMB received forty-two notifications made, pursuant toparagraphs 6and7(b)ofArticle 2,
byArgentina, Bangladesh, Bolivia, Brazil, Colombia, Costa Rica, Cyprus, theCzech Republic, the
Dominican Republic, ElSalvador, Guatemala, Honduras, Hungary, India, Indonesia, Israel, Japan,
Korea, Malaysia, Malta, Mauritius, Mexico, Morocco, Myanmar, Nicaragua, Pakistan, Paraguay,
Peru,thePhilippines,Poland,Romania,SaintKittsandNevis,theSlovakRepublic,Slovenia,SriLanka,
Switzerland, Thailand, Tunisia, Turkey, Uruguay, Venezuela andZambia. Itcompleted itsreview
ofthirty-nine ofthem. Inthisreview theTMB noted thatinallcases theproducts integrated amounted
toatleast16percentoftherespective Members ’totalimports oftheproducts falling under thecoverage
oftheATC (inmost cases involume of1990 imports, insome other cases invalue and/or witha
different base-year, seeAnnex I),andthatinallcases products from eachofthefourgroups (tops
andyarns, fabrics, made-up textile products, andclothing) hadbeenintegrated. Thereview ofthe
notifications made byIsrael, Myanmar andSaintKittsandNevis areinprogress, andwillbeconcluded
assoonastheadditional information sought bytheTMB from these Members isreceived.
21. Asnoted above, theTMB insome instances tooknoteofintegration programmes which, in
certain respects, didnotfullymeetthetechnical criteria established under paragraph 6ofArticle 2.
Thisconcerned cases where thedatawere notavailable involume, orfortheyear1990, orwhere
theshare ofintegration wascalculated relative todataforthetextiles andclothing sector asawhole
since datafortheexact product coverage oftheATC were notavailable. Prior totaking noteof
such notifications, theTMB ensured thatnobetter datacould beobtained. Furthermore, its
taking noteofsuchnotifications waswithout prejudice totherights andobligations ofMembers
under theATC.
22. Asalready mentioned inparagraph 12above, paragraph 6ofArticle 2requires Members to
integrate products selected fromeachofthefourfollowing groups: topsandyarns, fabrics, made-up
textile products, andclothing. Theintegration programmes submitted byMembers pursuant to
paragraphs 6and7(b)ofArticle 2metthisrequirement. However, although there were wide
variations intheprogrammes presented under these provisions, theTMB observed thatinthe
large majority ofcases theshare ofoneortwogroups (tops andyarns and/or fabrics) was
significantly higher thanthose oftheother groups (seeAnnex I).
23. Paragraph 6ofArticle 2alsorequired Members tointegrate inthefirststage products which
accounted fornotlessthan16percentofthetotalvolume oftheMember ’s1990imports oftheproducts
intheAnnex. However, withrespect tothecases where theproducts integrated wereconcentrated
intherelatively lessvalue-added range ofproducts, itwould appear thattheshare ofproducts
integrated, expressed invalue terms, wassmaller thanthatexpressed involume.
24. TheTMB observed thatnonotification hadbeenmade under paragraph 10ofthesame
Article, which provides thepossibility ofintegrating products earlier thanthatprovided forin
theintegration programmes notified.
25. TheTMB alsoobserved thatseven Members hadnotified theirchoice nottoretain theright
tousetheprovisions ofArticle 6(seeparagraph 18)andthatforthose Members theproducts falling
under thecoverage oftheATC hadbeenintegrated intoGATT 1994 asfrom 1January 1995. The
TMB commended these Members forhaving opted forthisapproach.
26. TheTMB observed furthermore thatamong thefifty-one Members which hadchosen toretain
therighttousetheprovisionsofArticle6,ten(Côted’Ivoire,Ecuador,Egypt,Jamaica,Kenya,Lesotho,
Nigeria,Senegal,SouthAfrica,TrinidadandTobago)hadnotsubmittedanotificationunderparagraphs6
and7(b)ofArticle 2.TheTMB wished todraw theattention ofMembers tothefactthattheG/L/113
Page8
notification requirement contained inparagraph 1ofArticle 6,andtheresulting notification
requirement contained inparagraph 7(b)ofArticle 2,were mandatory andhadtobesubmitted
totheTMB within prescribed deadlines.
27. TheTMB noted thatinsome cases products integrated under paragraphs 6and7(b)of
Article 2hadalready beensubject toquantitative restrictions, notified under Article 3andjustified
under aGATT 1994 provision, andthatsuchrestrictions were notaffected bytheintegration
oftheproducts concerned. Among theforty-two Members which submitted anotification pursuant
toparagraphs 6and7(b)ofArticle 2,twelve made notifications under paragraph 1ofArticle 3invoking
justification under aGATT 1994 provision fortherestrictions notified (seeparagraph 43below).
III. ARTICLE2-QUANTITATIVERESTRICTIONSMAINTAINEDORNOTIFIEDUNDER
THEARRANGEMENTREGARDINGINTERNATIONALTRADEINTEXTILES(MFA),
INFORCE ON31DECEMBER 1994
A. Article 2.1-Restrictions inforce on31December 1994
28. Paragraph 1ofArticle 2oftheATC states that“allquantitative restrictions within bilateral
agreements maintained under Article 4ornotified under Article 7or8oftheMFA inforce onthe
daybefore theentry intoforce oftheWTO Agreement shall, within 60daysfollowing suchentry into
force, benotified indetail, including therestraint levels, growth ratesandflexibility provisions, by
theMembers maintaining suchrestrictions totheTMB”.Notifications werereceived pursuant tothis
paragraphfromCanada,theEuropeanCommunities,NorwayandtheUnitedStates.TheTMBcompleted
theirreview, keeping alsoinmind observations made bysome other Members (seeSection Bbelow),
andtooknoteofcorrections oradditions tothese notifications made byCanada andtheUnited States
(G/TMB/R/6,7,10,11,12,13and15).Accordingtoparagraph4ofArticle2,“therestrictionsnotified
under paragraph 1[ofArticle 2]shallbedeemed toconstitute thetotality ofsuchrestrictions applied
bytherespective Members onthedaybefore theentry intoforce oftheWTO Agreement. Nonew
restrictions interms ofproducts orMembers shallbeintroduced except under theprovisions ofthis
Agreement orrelevant GATT 1994 provisions ”.
B. Article 2.2-Observations withregard toArticle 2.1notifications
29. According toparagraph 2ofArticle 2,“itisopen toanyMember tobring totheattention
oftheTMB, within 60daysofthecirculation ofthenotifications, anyobservations itdeems appropriate
withregard tosuchnotifications ”.Suchnotifications werereceived fromColombia (observations on
thenotification made bytheUnited States), Hong Kong (observations onthenotification made bythe
United States), Korea (observations onthenotifications made byCanada, theEuropean Communities
andtheUnited States) andMacau (observations onthenotification made bytheUnited States).
30. Inreviewing thenotifications made byColombia, Hong Kong andKorea, theTMB noted that
theobservations made inthese notifications hadbeentaken intoaccount inthecorrigenda oraddenda
tothenotificationsmadeunderparagraph1ofArticle2bytheWTOMembersconcerned(G/TMB/R/6).
31. TheTMB tooknotethatthecorrection made bytheUnited States hadbeenconfirmed ina
subsequent notification received from Hong Kong under paragraph 2ofArticle 2(G/TMB/R/10).
Thisnotification contained additional elements, andtheTMB reverted totheir consideration ata
subsequentmeeting.Inreviewingtheseadditionalelements,theTMBtooknoteofHongKong’sdemand
thatthefullproduct descriptions, theconversion factors applicable, thecoverage andstructure ofthe
groups andsub-groups notified withrespect toHong Kong aswellasthecategory number forG/L/113
Page9
made to-measure suits, benotified totheTMB. TheTMB understood thatthese elements would be
notified bytheUnited States under paragraph 17ofArticle 2(G/TMB/R/12).
32. TheTMB considered thenotification byMacau pursuant toparagraph 2ofArticle 2.Inthis
notification,MacaustatedthattheUnitedStates'notificationreceivedundertheprovisionsofparagraph1
ofArticle 2oftheATC contained restrictions which, according toMacau, were notinforce onthe
daybefore theentry intoforce oftheATC under thebilateral agreement withMacau maintained under
Article 4oftheMFA. Accordingly, Macau invited theTMB torecommend thatthese restrictions
werenotinconformity withparagraph 1ofArticle 2oftheATC. Given thecomplexity ofthematter,
theTMB invited bothparties toprovide inwriting anyadditional submission orexplanation theymight
finduseful, which bothparties did.
33. TheTMB considered alltheelements putforward bybothparties intheirsubmissions, including
thereference made byMacau tothereview bytheTextiles Surveillance Body in1994ofthebilateral
agreement concluded under theMFA between Macau andtheUnited States. TheTMB noted thatits
review wasconducted under paragraph 2ofArticle 2.Itfound thatarecommendation, asrequested
byMacau, thatintheabsence ofeither anagreement overtheconversion ofcertain designated
consultation levels (DCLs) (onUScategories 219, 225,317,326,611and625–9)intospecific
limits (SLs), oractual trade inthese fabric categories, thenotification bytheUnited States ofthose
specific limits should beconsidered nullandvoid, wasnotwarranted. Inarriving atitsconclusions,
theTMB tooknotethattheconversion ofDCLs intoSLstookplace in1994 under theMFA. The
TMB noted withconcern, however, thatSLswereintroduced bytheUnited States inthealmost complete
absence oftradeinthesecategories. Itwastheexpectation oftheTMB that,inmonitoring developments
inthisarea, theUnited States would bearinmind thisobservation. TheTMB alsowished todraw
theattention ofMembers tothefactthat,withtheentry intoforce oftheATC, specific provisions
hadbeeninoperation fortheestablishment ofnew restrictions (G/TMB/R/13).
34. Asindicated inparagraphs 30to33above, theTMB hascompleted thereview ofallthe
observations brought toitsattention under paragraph 2ofArticle 2byMembers, andthedeadline
forsubmitting suchobservations haslapsed. Itcan,therefore, beassumed thatthetotality of
restrictions applied pursuant toparagraph 1ofArticle 2hasbeennotified, andthatnone ofthe
elements contained inthese notifications iseither contested byother Members orrequires further
consideration bytheTMB.
C. Article 2.15-Elimination ofrestrictions maintained under Article 2
35. Paragraph 15ofArticle 2states that“nothing inthisAgreement shallprevent aMember from
eliminatinganyrestrictionmaintainedpursuanttothisArticle,effectiveatthebeginningofanyagreement
yearduring thetransition period, provided theexporting Member concerned andtheTMB arenotified
atleastthree months prior totheelimination coming intoeffect”.TheTMB reviewed anotification
made byNorway inSeptember 1995, under thisparagraph, oftheelimination ofcertain restrictions
withrespect tosome WTO Members, witheffect asof1January 1996. TheMembers affected had
alsobeeninformed inadvance. TheTMB commended Norway fortheearly elimination ofsome
ofitsrestrictions maintained under theATC (G/TMB/R/6).
D. Article 2.17-Administration ofrestrictions
36. Paragraph 17ofArticle 2states that“administrative arrangements, asdeemed necessary in
relation totheimplementation ofanyprovision ofthisArticle, shallbeamatter foragreement between
theMembers concerned. Anysucharrangements shallbenotified totheTMB”.Todate,notifications
under thisArticle have been made byCanada, theEuropean Communities, Mauritius andthe
United States.G/L/113
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37. TheTMB considered under paragraph 17ofArticle 2anotification byMauritius ofavisa
arrangement ithadconcluded withtheUnited States, andtooknoteofthisnotification (G/TMB/R/9).
Italsoconsidered thedetailed notifications byCanada ofadministrative arrangements concluded with
Bangladesh, Brazil, Costa Rica, Cuba, Hong Kong, Hungary, India, Indonesia, Korea, Lesotho, Macau,
Malaysia, Mauritius, Pakistan, thePhilippines, Poland, Romania, Singapore, theSlovak Republic,
SriLanka, Swaziland, Thailand, Turkey andUruguay. Thearrangements hadbeenbilaterally agreed
andcontained provisions which implemented, inaccordance withtheprovisions ofparagraph 1of
Article 4oftheATC, administrative aspects oftherespective export control systems (export licences,
monitoring ofexports, quota flexibility provisions, exchange ofstatistics, re-exports byCanada,
consultations). TheTMB tooknoteofthese notifications (G/TMB/R/13 and17).
38. Anumber ofnotifications arepending review.
E. Article 2.18-Advanced implementation ofgrowth ratesforcertain Members
39. Paragraph 18ofArticle 2specifies that“asregards those Members whose exports aresubject
torestrictions onthedaybefore theentry intoforce oftheWTO Agreement andwhose restrictions
represent 1.2percentorlessofthetotalvolume oftherestrictions applied byanimporting Member
asof31December 1991 andnotified under thisArticle, meaningful improvement inaccess fortheir
exports shallbeprovided, attheentry intoforce oftheWTO Agreement andfortheduration ofthis
Agreement, through advancement byonestage ofthegrowth ratessetoutinparagraphs 13and14,
orthrough atleastequivalent changes asmaybemutually agreed withrespect toadifferent mixof
baselevels, growth andflexibility provisions ”.Notifications under thisprovision havebeenreceived
from Canada, theEuropean Communities andtheUnited States.
40. According tothese notifications, theMembers concerned foreachimporting Members, and
theimplementation ofthisprovision, were asfollows:
- forCanada:2CostaRica,Cuba,theCzechRepublic,theDominicanRepublic,Hungary,
Jamaica, Lesotho, Macau, Mauritius, Myanmar, Poland, theSlovak Republic,
South Africa, SriLanka, Swaziland andUruguay. Thegrowth rates setoutin
paragraph 13ofArticle 2were increased by25percent, instead of16percent;
- fortheEuropean Communities: PeruandSriLanka. Thegrowth rates setoutin
paragraph 13ofArticle 2were increased firstly by16percentandsecondly by
25percent, instead of16percent;
- fortheUnited States: Bahrain, Colombia, Costa Rica, theCzech Republic,
theDominicanRepublic,Egypt,ElSalvador,Fiji,Guatemala,Haiti,Hungary,Jamaica,
Kenya, Kuwait, Macau, Mauritius, Poland, Qatar, Romania, theSlovak Republic, the
United Arab Emirates andUruguay. Thegrowth rates setoutinparagraph 13of
Article 2were increased by25percent, instead of16percent.
TheTMB tooknoteofthese notifications.
41. TheTMB observed thattheimplementation ofthisprovision oftheATC hadbeenmade
bytheMembers concerned using different methodologies. Itshould benoted inthisrespect that
paragraph 18ofArticle 2does notprovide precise guidance astohow toimplement the
2Indetermining eligibility fortreatment, Canada alsoincluded those Members thataccounted forlessthan
1.2percentoftherestraints ineffect on31December 1994.G/L/113
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advancement byonestage ofthegrowth rates setoutinparagraphs 13and14,orthrough at
leastequivalent changes asmaybemutually agreed withrespect toadifferent mixofbaselevels,
growth andflexibility provisions. However, itistobenoted thattheresult interms ofmarket
access inthefirststage isimproved ifthemethodology chosen fortheadvancement byonestage
ofthegrowth rates includes thegrowth factor ofthefirststage, themanner inwhich ithadbeen
done byoneoftheMembers concerned.
IV. RESTRICTIONS OTHER THAN THOSE MAINTAINED ORNOTIFIED UNDER THE
ARRANGEMENT REGARDING INTERNATIONAL TRADE INTEXTILES (MFA)
A. Review ofnotifications made under Article 3.1
42. Paragraph 1ofArticle 3states that“within 60daysfollowing thedateofentry intoforce of
theWTO Agreement, Members maintaining restrictions3ontextile andclothing products (other than
restrictions maintained under theMFA andcovered bytheprovisions ofArticle 2),whether consistent
withGATT 1994 ornot,shall (a)notify them indetail totheTMB, or(b)provide totheTMB
notifications withrespect tothem which havebeensubmitted toanyother WTO body”.TheTMB
hasreceived suchnotifications from twenty-nine WTO Members; todate, thereview oftwenty-six
ofthese notifications hasbeencompleted bytheTMB (G/TMB/R/5, 7,8,9,12,13and15),and
additional information isbeing sought from Mexico, Morocco andThailand before completing the
review. During itsconsideration ofnotifications made under paragraph 1ofArticle 3,theTMB noted
thatithadreceived noreverse notification under paragraph 4ofthatArticle.
43. Outofthesetwenty-nine notifications, although notrequired bytheATC, tenMembers notified
thattheydidnotapply anyrestriction within themeaning ofparagraph 1ofArticle 3(Chile, Indonesia,
Kenya, Macau, Mauritius, NewZealand, thePhilippines, Saint Kitts andNevis, Singapore and
SriLanka). Intwelve instances (Bangladesh, Cyprus, Egypt, theEuropean Communities, India, Korea,
Malaysia, Malta, Pakistan, Peru, theUnited States andVenezuela), Members notified restrictions on
imports andinvoked either Articles XVIII:B, XVIII:C, XX(b), XX(f), orXXIV, asaGATT 1994
justification forsuch restrictions. TheTMB tooknoteofsuchnotifications.
44. Infourcases (Cyprus, Hungary, Japan andSlovenia) Members hadnotified quantitative
restrictionswhichweresubjecttoaphase-outprogramme,inaccordancewithparagraph2(b)ofArticle3.
TheTMB tooknoteofsuchnotifications, andofthefactthatphase-out programmes hadbeenorwould
benotified totheTMB (seeSection Bbelow).
45. Inaddition, Canada andtheUnited States hadnotified under bothparagraph 1ofArticle 2
andparagraph1ofArticle3measuresapplied,interalia,tocountrieswhichwerenotyetWTOMembers
atthetimethenotification hadbeenmade. Since these countries hadsubsequently become Members,
these measures were reviewed bytheTMB inthecontext ofparagraph 1ofArticle 2.
B. Programmes notified under Article 3.2(b)
46. Paragraph2ofArticle3statesthat“Membersmaintainingrestrictionsfallingunderparagraph1,
except those justified under aGATT 1994 provision, shalleither ...(a)bring them intoconformity
withGATT 1994 within oneyearfollowing theentry intoforce oftheWTO Agreement, ...or...
(b)phase themoutprogressively according toaprogramme tobepresented totheTMB bytheMember
3Restrictions denote allunilateral quantitative restrictions, bilateral arrangements andother measures having
asimilar effect.G/L/113
Page12
maintaining therestrictions notlaterthansixmonths afterthedateofentry intoforce oftheWTO
Agreement ”.
47. FourMembersnotifiedaphaseout-programmepursuanttoparagraph2(b)ofArticle3:Cyprus,
Hungary, Japan andSlovenia (G/TMB/N/146, 147,175,and186,respectively). TheTMB tooknote
ofsuchprogrammes. Insodoing, theTMB observed, inthecaseofHungary, thatinview ofthe
general nature ofthisprogramme, itexpected thatthedetails ofitsimplementation intherespective
stages would benotified totheTMB priortotheirimplementation, forit’sconsideration (G/TMB/R/9).
InthecaseofJapan, theTMB expressed theexpectation thattheimplementation oftheprogramme,
inconformity with paragraph 2(b)ofArticle 3,would besuchastoprovide appropriate progressive
increases tothelevelofrestrictions onimports ofsilkyarnandsilkfabric fromKorea (G/TMB/R/11).
Although Cyprus notified aphase-out programme pursuant toparagraph 2(b)ofArticle 3,itshould
benoted thattherevised programme submitted byCyprus inreply totheadditional information and
clarification sought bytheTMB seems tofallmore under theprovisions ofparagraph 2(a)ofthesame
Article.
C. Changes inexisting restrictions notified under Article 3.3
48. Paragraph 3ofArticle 3provides that“during theduration ofthisAgreement, Members shall
provide totheTMB, foritsinformation, notifications submitted toanyother WTO bodies withrespect
toanynewrestrictions orchanges inexisting restrictions ontextile andclothing products, taken under
anyGATT 1994 provision, within 60daysoftheircoming intoeffect”.
49. TheTMB received andreviewed three notifications made pursuant tothisparagraph bythe
European Communities. Twonotifications contained agreed changes increasing thequantitative limits,
orconsultation levels, maintained vis-à vistheCzech Republic, Egypt, Hungary, Malta, Morocco,
Poland, Romania, theSlovak Republic, andTunisia. According tothesenotifications, thesequantitative
limits orconsultation levels hadbeenapplied inthecontext ofpreferential tradeagreements witheach
ofthese countries andwere being notified under Article XXIV oftheGATT. TheTMB tooknote
oftheinformation contained inthese notifications. Athirdnotification stated thatasaresult ofthe
completion ofthecustoms union between theEuropean Communities andTurkey, theconsultation
levelsnotifiedbytheEuropeanCommunitiestotheTMBunderparagraph1ofArticle3vis-à-visTurkey
were eliminated asof1January 1996. TheTMB tooknoteofthisinformation (G/TMB/R/12).
V. SAFEGUARD ACTIONS UNDER ARTICLE 6
50. Article 6oftheATC provides forthepossibility ofapplying transitional safeguard measures
onimports ofproducts covered bytheATC andnotyetintegrated intoGATT 1994thatcause serious
damage, oractual threat thereof, tothedomestic industry producing likeand/or directly competitive
products. According toparagraph 7ofArticle 6,“theMember proposing totakesafeguard action
shallseekconsultations withtheMember orMembers which would beaffected bysuchaction ”.Such
consultations mayresult inarestraint measure being applied unilaterally bytheimporting Member
under paragraph 10ofArticle 6,orinarestraint measure being agreed between theparties andnotified
under paragraph 9ofArticle 6.Inbothcases theTMB willhavetoreview themeasure. Or,asa
result ofsuchconsultations, theimporting Member maydecide nottointroduce thesafeguard measure
envisaged. Inaddition, paragraph 11ofArticle 6provides that“inhighly unusual andcritical
circumstances, where delay would cause damage which would bedifficult torepair, action under
paragraph 10maybetaken provisionally onthecondition thattherequest forconsultations and
notification totheTMB shallbeeffected within nomore thanfiveworking daysaftertaking theaction ”.G/L/113
Page13
51. TheUnited States made twenty-five requests forconsultation pursuant toparagraph 7of
Article 6:twenty-four in1995andonein1996(seeAnnex II).Eleven resulted inrestraint measures
being agreed either during theconsultation period, orprior to,orduring thereview ofthemeasure
bytheTMB. InonecasetheUnited States decided nottoapply asafeguard measure. Fiveunilaterally
applied measures weredropped bytheUnited States before theirreview bytheTMB, andanadditional
oneduring thereview. TheTMB, therefore, completed thereview ofseven safeguard measures applied
under paragraph 10ofArticle 6bytheUnited States. Section Arefers toallcases where theTMB
started itsreview ofthesafeguard measures applied unilaterally, although insome instances thereview
wasnotcompleted since, inthemeantime, themeasure wasrescinded (with Thailand for
UScategory 352/652) orameasure wasagreed (with Turkey forUScategory 352/652, andwith
Honduras forUScategory 435). Brazil requested consultations onimports ofseven product categories
under paragraph 7ofArticle 6inJune1996(twoonimports fromHong Kong, fiveonimports from
Korea), atthesame timeintroducing provisional safeguard measures pursuant toparagraph 11of
Article 6(seeSection Cbelow andAnnex II).
A. Review ofunilateral restraint measures applied under Article 6.10, andfollow-up ofTMB
recommendations
United States/Costa Rica, Honduras, Thailand andTurkey: imports ofcotton andman-made fibre
underwear (UScategory 352/652)
52. TheTMB reviewed safeguard measures applied bytheUnited States pursuant toparagraph 10
ofArticle6onimportsofcottonandman-madefibreunderwear(UScategory352/652)fromCostaRica,
Honduras, Thailand andTurkey. Thailand hadalsomade anotification ofthesame action under
paragraphs 5and6ofArticle 8.During thisreview, theTMB wasinformed thattheUnited States
andTurkey hadarrived atamutually agreed solution oftheissue under paragraph 9ofArticle 6.In
addition, while starting theexamination oftherequest submitted byThailand initsnotification, the
TMB wasinformed thattheUnited States haddecided torescind thissafeguard measure against Thailand
(G/TMB/R/2 andparagraphs 88and89below).
53. During itsreview under paragraphs 2and3ofArticle 6ofthesafeguard action taken bythe
United States against imports ofcategory 352/652 from Costa RicaandHonduras, theTMB found
thatserious damage, asenvisaged inthese provisions, hadnotbeendemonstrated. TheTMB could
not,however, reach consensus ontheexistence ofactual threat ofserious damage. TheTMB
recommended thatfurther consultations beheldbetween theUnited States andtheparties concerned,
withaviewtoarriving atamutual understanding, bearing inmindtheabove, andwithdueconsideration
totheparticular features ofthiscase, aswellasequity considerations. TheTMB alsorecommended
thatthese consultations should beheldconsistent withtheATC, inparticular withArticles 6and4,
andbeconcluded within 30days, andthattheparties should report totheTMB ontheoutcome of
suchconsultations nolaterthanattheendofthatperiod. TheTMB equally noted that,withrespect
totheintroduction ofasafeguard measure, theATC doesnotprovide anyindication withrespect to
theeffective dateofimplementation ofthatmeasure.
54. Inreaching itsrecommendation, theTMB examined alltheinformation provided bytheparties,
including theroleplayed byoutward processing trade. Onthatbasis, andkeeping alsoinmind the
particular nature ofthistrade flow, theTMB wasoftheviewthatanumber ofimportant indicators,
interalia,thedropinUSdomestic production ofcotton andman-made fibreunderwear, theparallel
increase inimports ofthese products, andthestatus ofthisindustry, were notsuchastowarrant a
claim ofserious damage being caused totheUSindustry byimports. However, theTMB could not
agree, onthebasis ofalltheinformation provided, whether ornotthere existed athreat ofserious
damage caused totheUSindustry byimports ofproducts ofcategory 352/652 (G/TMB/R/2).G/L/113
Page14
55. Following theTMB'srecommendation, theTMB wasinformed bytheUnited States and
Honduras thattheyhadheldconsultations without reaching acommon position, but,subsequently was
informed under paragraph 9ofArticle 6thatthetwoparties hadarrived atamutually agreeable
resolution ofthisissue (seeG/TMB/R/3 andparagraphs 68and69below).
56. Following thesameTMB recommendation, theTMB received reports byboththeUnited States
andCosta Ricaexplaining thatithadnotbeenpossible toreach amutually agreeable resolution of
theissue. InviewofCosta Rica’srequest toparticipate intheTMB'sexamination ofthese reports,
theBody decided toinvite theparticipation ofbothdelegations. TheTMB tooknoteofthereports
andofthefactthatthetwoparties didnotreach amutual understanding during theconsultations.
TheTMB'sdiscussions confirmed theBody'sprevious findings inthismatter (seeparagraph 54above).
There being nofurther requests bytheparties involved, theTMB considered itsreview ofthematter
completed (G/TMB/R/3 and5).4
United States/Honduras: imports ofcotton andman-made fibre pyjamas andother nightwear
(UScategory 351/651)
57. TheTMB reviewed under paragraphs 2and3ofArticle 6thesafeguard measure introduced
bytheUnited States pursuant toparagraph 10ofArticle 6onimports ofcotton andman-made fibre
pyjamas andother nightwear (UScategory 351/651) fromHonduras. TheTMB, having examined all
theinformation provided bytheparties, found thatserious damage, oractual threat thereof, hadnot
been demonstrated andrecommended thattheUnited States rescind themeasure (G/TMB/R/2).
Subsequently, theTMB wasinformed thattheUnited States haddecided torescind themeasure. The
TMB tooknoteofthisdecision (G/TMB/R/3).
United States/India: imports ofmen’sandboys’wool coats other thansuit-type (UScategory 434)
58. TheTMB considered asafeguard measure taken bytheUnited States onimports ofmen’sand
boys’wool coats other thansuit-type (UScategory 434)fromIndia. TheTMB, having examined all
oftheinformation provided bybothparties inthelightoftheconditions established under paragraphs 2
and3ofArticle 6,found thatserious damage, oractual threat thereof, hadnotbeendemonstrated,
andrecommended thattheUnited States rescind themeasure. Subsequently, theTMB wasinformed
andtooknotethattheUnited States haddecided torescind thissafeguard measure (G/TMB/R/3 and5).
United States/India: imports ofwomen ’sandgirls’wool coats (UScategory 435)
59. TheTMB considered, under paragraphs 2and3ofArticle 6,thesafeguard measure taken
bytheUnited States onimports ofwomen ’sandgirls’woolcoats (UScategory 435)fromIndia. The
TMB found thatserious damage, asenvisaged inthese provisions, hadnotbeendemonstrated. The
TMB could not,however, reach consensus ontheexistence ofactual threat ofserious damage. The
TMB added that,when reviewing theimplications ofthediscussions intheTMB andtheBody’sfinding
inthismatter, theparties should keepinmind thefactthattheATC issilent astowhether theimport
restraint cancontinue tobemaintained (seeG/TMB/R/3). Indiareferred thismatter totheTMB under
paragraph 6ofArticle 8(seeparagraph 90below).5
4Costa Ricasubsequently requested theestablishment ofapanel (WT/DS24/1). Thepanel wasestablished
bytheDispute Settlement Body on5March 1996.
5India subsequently requested theestablishment ofapanel (WT/DS32/1). TheUnited States laterwithdrew
therestraint,andIndiarequestedtheterminationoffurtheractioninpursuanceofthedecisiontakenbytheDispute
Settlement Body toestablish apanel toexamine thatmatter (WT/DS32/2).G/L/113
Page15
60. Atalaterstage, theTMB received anotification fromtheUnited States ofthewithdrawal of
thisunilateral restraint. TheTMB tooknoteofthisnotification (G/TMB/R/13).
United States/India: imports ofwoven wool shirts andblouses (UScategory 440)
61. TheTMB considered, under paragraphs 2and3ofArticle 6,thesafeguard measure taken
bytheUnited States onimports ofwoven woolshirts andblouses (UScategory 440)fromIndia. The
TMB found thattheactual threat ofserious damage hadbeendemonstrated, andthat,pursuant to
paragraph 4ofArticle 6,thisactual threat could beattributed tothesharp andsubstantial increase
inimports from India (G/TMB/R/3). India referred thismatter totheTMB under paragraph 10of
Article 8(seeparagraph 92below).6
United States/Honduras: imports ofwomen ’sandgirls’wool coats (UScategory 435)
62. TheTMB started itsreview ofasafeguard measures introduced bytheUnited States pursuant
toparagraph 10ofArticle 6onimports ofwomen ’sandgirls’wool coats (UScategory 435)from
Honduras. After thepresentation oftheirarguments, theparties informed theTMB thattheyhaddecided
toresume bilateral consultations, andasked forsuspension oftheconsideration ofthisissue bythe
TMB. TheBody wasinformed subsequently thattheUnited States andHonduras hadarrived ata
mutuallyagreeableresolutionoftheissueunderparagraph9ofArticle6(G/TMB/R/3andparagraphs73
and74below).
United States/Hong Kong: imports ofwoven wool shirts andblouses (UScategory 440)
63. TheTMB reviewed asafeguard measure introduced bytheUnited States onimports ofwoven
wool shirts andblouses (UScategory 440)from Hong Kong. TheTMB, having considered the
arguments putforward bytheparties, noted thatHong Kong'sexports ofproducts ofcategory 440
intotheUnited States werealready under restraint under agroup limitnotified bytheUnited States
inaccordance withparagraph 1ofArticle 2oftheATC. Itfound that,according toparagraph 4of
Article 6,theapplication ofasafeguard measure under thisArticle toHong Kong'sexports ofproducts
ofcategory 440intotheUnited States was, therefore, notjustified, andrecommended thatthe
United States rescind themeasure. Subsequently, theTMB wasinformed andtooknotethatthe
United States haddecided torescind thissafeguard measure (G/TMB/R/4 and6).
B. Agreed restraint measures notified under Article 6.9
64. Under theprovisions ofparagraph 8ofArticle 6oftheATC, twoMembers may, after
consultation heldpursuant toparagraph 7ofArticle 6,reach mutual understanding thatthesituation
callsforrestraint ontheexports ofaparticular product. Insuchcases, paragraph 9ofArticle 6states
that“details oftheagreed restraint measure shallbecommunicated totheTMB within 60daysfrom
thedateofconclusion oftheagreement. TheTMB shalldetermine whether theagreement isjustified
inaccordance withtheprovisions ofthisArticle. ...TheTMB maymake suchrecommendations as
itdeems appropriate totheMembers concerned ”.
65. TheTMBhasreceivedthenotificationunderparagraph9ofArticle6oftwelverestraintmeasures
agreed onimports ofvarious products intotheUnited States fromColombia, theDominican Republic,
ElSalvador, Guatemala, Honduras, Jamaica, Turkey andSriLanka. Inthree instances (involving
imports fromElSalvador, Jamaica andSri-Lanka), thenotification ofanagreed measure wassuperseded
6India subsequently requested theestablishment ofapanel (WT/DS33/1). Thepanel wasestablished by
theDispute Settlement Body on17April 1996.G/L/113
Page16
astheUnited States decided torescind theagreed measure. TheTMB tooknoteofsuchadecision
bytheUnited States. These three notifications were, therefore, notreviewed bytheTMB. Eight
notifications made pursuant toparagraph 9ofArticle 6have been reviewed bytheTMB. One
notification, received recently, remains tobereviewed.
66. Theeight notifications reviewed bytheTMB relate tomeasures agreed onimports intothe
United States offourproducts: cotton andman-made fibreunderwear (UScategory 352/652) from
Colombia, theDominican Republic, ElSalvador, Honduras andTurkey; women 'sandgirls'wool
coats (UScategory 435)from Honduras; women ’sandgirl’swool suits(UScategory 444)from
Colombia; andcotton andman–made fibreskirts (UScategory 342/642) fromGuatemala. Inreviewing
these agreed restraints, theTMB made thefollowing observations:
United States/Dominican Republic: imports ofcotton and man-made fibre underwear
(UScategory 352/652)
67. InreviewingtherestraintmeasureagreedbetweentheUnitedStatesandtheDominicanRepublic
onimports ofcotton andman-made fibreunderwear (UScategory 352/652), theTMB observed that
nogrowth ratewasprovided forwithrespect totheguaranteed access level (GAL).7However,
according toindications given bytheUnited States Government, theGALcanbeincreased onrequest.
Therefore, itwastheTMB'sunderstanding that,attherequest oftheDominican Republic, theGAL
would beincreased bynolessthan6percentannually. TheTMB recalled thatataprevious meeting,
when reviewing theaction taken bytheUnited States against imports ofcategory 352/652 from
Costa RicaandHonduras under paragraphs 2and3ofArticle 6,anaction taken atthesame timeas
thatonimports ofthesame product fromtheDominican Republic, ithadfound thatserious damage,
asenvisaged inthese provisions, hadnotbeendemonstrated. TheTMB hadnot,however, reached
consensus ontheexistence ofactual threat ofserious damage. TheTMB noted that,whilst thetotal
leveloftheagreed restraint wassubstantially above therollback level, thatportion oftherestraint which
wasavailable unconditionally totheDominican Republic (i.e.thespecific limit) waslower thanthat
rollback level(G/TMB/R/7).
United States/Honduras: imports ofcotton andman-made fibreunderwear (UScategory 352/652)
68. Inreviewing therestraint measure agreed between theUnited States andHonduras onimports
ofcotton andman-made fibreunderwear (UScategory 352/652), theTMB observed thatnogrowth
ratewasprovided forwithrespect totheGAL. However, according toindications given bythe
United States Government, theGAL canbeincreased onrequest. Therefore, itwastheTMB's
understanding that,attherequest ofHonduras, theGAL would beincreased bynolessthan6percent
annually. TheTMB recalled thatataprevious meeting, when reviewing theaction taken bythe
United States against imports ofcategory 352/652 fromCosta RicaandHonduras under paragraphs 2
and3ofArticle 6ithadfound thatserious damage, asenvisaged inthese provisions, hadnotbeen
demonstrated. TheTMB hadnot,however, reached consensus ontheexistence ofactual threat of
serious damage. TheTMB noted thatthetotalleveloftheagreed restraint, aswellasthatportion
oftherestraint which wasavailable unconditionally toHonduras (i.e.thespecific limit) were both
substantially above therollback level(G/TMB/R/8).
69. TheTMB alsoreceived acommunication from Honduras relating totheimplementation by
theUnited States ofthisagreed restraint measure. Inthiscommunication, Honduras expressed concern
7Guaranteed Access Levels (GALs) arequantities ofproducts ofacategory thatacountry canexport tothe
United States without being subject toquantitative limitation, provided theactual product shipped qualifies for
such treatment, inter alia, bybeing made of"UScomponents"G/L/113
Page17
thattheagreement wasnotimplemented consistently withitsterms bytheUnited States, notably with
respect tothelevel ofaccess totheUSmarket asof1January 1996, andthatthiswas,therefore,
threatening toseriously disrupt trade from Honduras. Honduras requested thattheTMB review the
implementation ofthelimits bilaterally agreed. TheTMB wasinformed thatitwastheUnited States
Government ’sintention toimplement theagreement infullandtobeincontact withHonduras with
aviewtoresolving thisquestion. TheTMB tooknoteofthis,informed Honduras oftheUnited States '
intention, anddecided that,should problems remain, itwould revert tothisquestion atitsnextmeeting.
Bothparties wereinformed ofthisdecision (G/TMB/R/8). TheTMB wasinformed subsequently by
bothparties thattheproblems hadbeensolved.
United States/El Salvador: imports ofcotton andman-made fibreunderwear(US category 352/652)
70. Inreviewing therestraint measure agreed between theUnited States andElSalvador onimports
ofcotton andman-made fibreunderwear (UScategory 352/652), theTMB observed thatnogrowth
ratewasprovided forwithrespect totheGAL. However, according toindications given bythe
United States Government, theGAL canbeincreased onrequest. Therefore, itwastheTMB's
understanding that,attherequest ofElSalvador, theGALwould beincreased bynolessthan6percent
annually. TheTMB recalled thatataprevious meeting, when reviewing theaction taken bythe
United States against imports ofcategory 352/652 fromCosta RicaandHonduras under paragraphs 2
and3ofArticle 6,anaction taken atthesame timeasthatonimports ofthesame product from
ElSalvador, ithadfound thatserious damage, asenvisaged inthese provisions, hadnotbeen
demonstrated. TheTMB hadnot,however, reached consensus ontheexistence ofactual threat of
serious damage. TheTMB noted thatthetotalleveloftheagreed restraint, aswellasthatportion
oftherestraint which wasavailable unconditionally toElSalvador (i.e.thespecific limit) wereboth
substantially above therollback level(G/TMB/R/8).
United States/Turkey: imports ofcotton andman-made fibreunderwear (UScategory 352/652)
71. Inreviewing therestraint measure agreed between theUnited States andTurkey onimports
ofcotton andman-made fibreunderwear (UScategory 352/652), theTMB recalled thatataprevious
meeting, when reviewing theaction taken bytheUnited States against imports ofcategory 352/652
from Costa RicaandHonduras under paragraphs 2and3ofArticle 6,anaction taken atthesame
timeasthatonimports ofthesameproduct fromTurkey, ithadfound thatserious damage, asenvisaged
inthese provisions, hadnotbeendemonstrated. TheTMB hadnot,however, reached consensus on
theexistence ofactual threat ofserious damage. TheTMB noted thatthespecific limitagreed was
substantially above therollback level(G/TMB/R/8).
United States/Colombia: imports ofcotton andman-made fibreunderwear (UScategory 352/652)
72. Inreviewing therestraint measure agreed between theUnited States andColombia onimports
ofcotton andman-made fibreunderwear (UScategory 352/652), theTMB recalled thatataprevious
meeting, when reviewing theaction taken bytheUnited States against imports ofcategory 352/652
from Costa RicaandHonduras under paragraphs 2and3ofArticle 6,anaction taken atthesame
timeasthatonimports ofthesame product from Colombia, ithadfound thatserious damage, as
envisaged inthese provisions, hadnotbeendemonstrated. TheTMB hadnot,however, reached
consensus ontheexistence ofactual threat ofserious damage. TheTMB noted thatthetotallevelof
theagreed restraint, aswellasthatportion oftherestraint which wasavailable unconditionally to
Colombia (i.e.thespecific limit) were bothsubstantially above therollback level(G/TMB/R/8).G/L/113
Page18
United States/Honduras: imports ofwomen 'sandgirls'wool coats (UScategory 435)
73. Inreviewing therestraint measure agreed between theUnited States andHonduras onimports
ofwomen 'sandgirls'woolcoats (UScategory 435,seealsoparagraph 62above), theTMB observed
thatnogrowth ratewasprovided forwithrespect totheGAL. However, according toindications
given bytheUnited States Government, theGAL canbeincreased onrequest. Therefore, itwasthe
TMB'sunderstanding that,attherequest ofHonduras, theGAL would beincreased bynolessthan
2percentannually. TheTMB recalled thatataprevious meeting, when reviewing theaction taken
bytheUnited States against imports ofcategory 435fromIndiaunder paragraphs 2and3ofArticle 6,
anaction taken atthesame timeasthatonimports ofthesame product fromHonduras, ithadfound
thatserious damage, asenvisaged inthese provisions, hadnotbeendemonstrated. TheTMB had
not,however, reached consensus ontheexistence ofactual threat ofserious damage. TheTMB noted
thatthetotalleveloftheagreed restraint, aswellasthatportion oftherestraint which wasavailable
unconditionally toHonduras (i.e.thespecific limit) were bothabove therollback level. TheTMB
alsonoted thattheagreed growth rateof2percentwasjustified inaccordance withparagraph 13of
Article 6(G/TMB/R/8).
74. TheTMB alsoreceived acommunication from Honduras relating totheimplementation by
theUnited States ofthisagreed restraint measure. Inthiscommunication, Honduras expressed concern
thattheagreement wasnotimplemented consistently withitsterms bytheUnited States, notably with
respect tothelevel ofaccess totheUSmarket asof1January 1996, andthatthiswas,therefore,
threatening toseriously disrupt trade fromHonduras. Honduras requested thattheTMB review the
implementation ofthelimits bilaterally agreed. TheTMB wasinformed thatitwastheUnited States
Government ’sintention toimplement theagreement infullandtobeincontact withHonduras with
aviewtoresolving thisquestion. TheTMB tooknoteofthis,informed Honduras oftheUnited States '
intention, anddecided that,should problems remain, itwould revert tothisquestion atitsnextmeeting.
Bothparties wereinformed ofthisdecision (G/TMB/R/8). TheTMB wasinformed subsequently by
bothparties thattheproblems hadbeensolved.
United States/Colombia: imports ofwomen ’sandgirl’swool suits(UScategory 444)
75. TheTMB reviewed therestraint measure agreed between theUnited States andColombia on
imports ofwomen ’sandgirl’swoolsuits(UScategory 444)fromColombia. TheTMB examined the
information made available bytheUnited States toColombia during thebilateral consultations, aswell
asother relevant information provided bytheUnited States attheTMB'srequest. While itobserved
thatsome data,notably thepaceofincreased imports fromColombia, might leadtodifferent findings,
theTMB concluded thatthisagreement inoverall terms wasjustifiable inaccordance withtheprovisions
ofArticle 6oftheATC. Assuch, theagreement wasconsidered justified. TheTMB noted, however,
that,whilst thetotalleveloftheagreed restraint wassubstantially above therollback level, thatportion
oftherestraint available unconditionally toColombia (i.e.thespecific limit) waslower thantherollback
level(G/TMB/R/11).
United States/Guatemala: imports ofcotton andman-made fibreskirts (UScategory 342/642)
76. TheTMB reviewed therestraint measure agreed between theUnited States andGuatemala
onimports ofcotton andman-made fibreskirts (UScategory 342/642) from Guatemala. TheTMB
examined theinformation made available bytheUnited States toGuatemala during thebilateral
consultations, inparticular, andalsoother relevant information provided bytheUnited States atthe
TMB'srequest. While itobserved thatsome datamight point todiverging directions, theTMB
concludedthatthisagreementinoveralltermswasjustifiedinaccordancewiththeprovisionsofArticle6
oftheATC. TheTMB noted thatthetotalleveloftheagreed restraint, aswellasthatportion ofthe
restraint thatwasavailable unconditionally toGuatemala (i.e.thespecific limit), were substantiallyG/L/113
Page19
above therollback level. Itobserved thatnogrowth ratewasprovided forwithrespect totheGAL.
However, according toindications given bytheUnited States Government, theGAL canbeincreased
onrequest. Therefore, itwastheTMB'sunderstanding that,attherequest ofGuatemala, theGAL
would beincreased bynolessthan6percentannually (G/TMB/R/13).
C. Unilateral measures taken under Article 6.11
77. InJune1996,BrazilrequestedconsultationwithHongKongandKoreapursuanttoparagraphs7
and11ofArticle 6,introducing atthesametimeseven provisional safeguard measures (twoonimports
fromHong Kong, fiveonimports fromKorea). Theparties communicated totheTMB thattheyhad
failed toagree onrestraint measures within thedeadline envisaged inparagraph 11ofArticle 6.
78. On11September 1996, theTMB began itsexamination ofsafeguard measures introduced by
Brazil, pursuant toparagraph 11ofArticle 6,onimports ofproducts ofBrazilian categories 618(woven
artificialfilamentfabric)and838(men’sandboys’knitshirtsofmaterialotherthancottonandman-made
fibre) from Hong Kong. Thetwomeasures hadbeenintroduced witheffect asfrom 1June1996.
TheTMB invited theparticipation ofBrazil andHong Kong, which sentdelegations topresent their
respective cases. Bothparties made presentations andprovided replies toquestions withrespect to
bothmeasures. Onthisbasis, theTMB started itsin-depth discussion but,inviewofthecomplexity
oftheissue andthelackoftimeavailable, wasunable toconclude it.TheTMB, therefore, decided
torevert toitsexamination attheearliest possible dateacceptable tobothparties, which wereinvited
tosendrepresentatives upon theTMB’sresumption ofthisexamination (G/TMB/R/16).
79. On11September 1996, theTMB wasinformed byBrazil andKorea thattheyhaddecided
toresume consultations withrespect tothesafeguard measures introduced byBrazil pursuant to
paragraph 11ofArticle 6onimports ofthefollowing Brazilian product categories from
Korea: category 611(woven fabrics containing 85percentormore byweight ofartificial staple);
category 618(woven artificial filament fabric); category 619(polyester filament fabric); category 620
(other synthetic filament fabric); andcategory 627(sheeting ofstaple filament fibrecombination).
Both parties, consequently, requested theTMB todefer itsconsideration ofthese measures
(G/TMB/R/16).
D. Present status ofsafeguard actions taken pursuant toArticle 6
80. Since theTMB hadtodevote much ofitswork totheexamination ofactions referred toit
under thedifferent provisions ofArticle 6,itseems appropriate toprovide areport onthecurrent
outcome ofsuchactions, andtooffer some comments toMembers. Itistobenoted thatsince the
entry intoforce oftheWTO Agreement -hence oftheATC -twoMembers, theUnited States and
Brazil, haveinvoked theprovisions ofthisArticle totakesafeguard actions. TheUnited States sought
consultations withfourteen Members intwenty-five cases, while Brazil tookprovisional actions against
twoMembers inseven cases. Abreakdown ofsuchinvocations byquarters shows thefollowing pattern
(seealsoAnnex II):
1995 1stquarter 10requests (United States)
2ndquarter 14requests (United States)
3rdquarter None
4thquarter None
1996 1stquarter 1request (United States)
2ndquarter 7requests (Brazil)
3rdquarter None
Total 32requestsG/L/113
Page20
81. Outofthetwenty-five actions taken bytheUnited States, eleven safeguard measures remained
inforce inSeptember 1996, while fourteen hadbeendisinvoked orthemeasures rescinded. Ofthese
eleven measures, ninehadbeenagreed between theparties andnotified pursuant toparagraph 9of
Article6,andtwohadbeenintroducedunilaterallybytheUnitedStatesunderparagraph10ofArticle6.
Inoneofthetwolatter cases, theTMB hadreached theconclusion thatactual threat ofserious damage
hadbeendemonstrated, andcould beattributed tothesharp andsubstantial increase inimports from
theMember concerned. Intheother case, theTMB hadconcluded thatserious damage hadnotbeen
demonstrated butcould not,however, reach consensus ontheexistence ofactual threat ofserious
damage.8
82. Inallcases where theTMB conducted anexamination ofthemeasures taken under Article 6,
andinparticular ofthemeasures taken pursuant toitsparagraph 10,itcarried outaverythorough
review ofthematter, onthebasis ofthefactual datapresented toitinconformity withparagraph 7
ofArticle 6,complemented byanyadditional information submitted bytheparties, oritdecided to
seekfrom theMembers concerned. TheTMB observed that, inmost cases, Members were able
tocomply withitsrecommendations.
83. TheTMB isaware oftheimplications fortrade ofrequests forconsultations made with
aviewtointroducing safeguard measures, inparticular, when transitional measures areapplied
andsubsequently rescinded. Itbelieves, however, worthwhile tomention that, while during the
firsthalfof1995 (atatimetheTMB hadnotasyetreviewed anysafeguard action) twenty-four
requestsforconsultationshadbeenmade(allofthembytheUnitedStates)pursuanttoparagraph7
ofArticle 6,onlyeight hadbeen made (seven byBrazil andonebytheUnited States) inthe
following 15months.
84. TheTMB observed thatboththeMembers invoking thesafeguard provisions oftheATC
andtheMembers subject tosuchactions hadstrictly observed theprocedural requirements of
Article 6.TheTMB wasaware thatithadnotalways beenpossible tomeet allthedeadlines of
theATC foritsreview ofthemeasures notified. Thishadinallinstances taken place withthe
concurrence oftheparties involved andcould inpartbeexplained bytheimportance itsmembers
attached toaquick, butalsothorough consideration oftheissues.
VI. OTHER MEASURES, MATTERS ORINFORMATION SUBMITTED TOTHE TMB
A. Matters submitted under paragraphs 5and/or 6ofArticle 8
85. Paragraph 5ofArticle 8provides that“intheabsence ofanymutually agreed solution inthe
bilateral consultations provided forinthisAgreement, theTMB shall, attherequest ofeither Member,
andfollowingathoroughandpromptconsiderationofthematter,makerecommendationstotheMembers
concerned ”.Paragraph 6ofArticle 8states that“Attherequest ofanyMember, theTMB shallreview
promptly anyparticular matter which thatMember considers tobedetrimental toitsinterests under
thisAgreement andwhere consultations between itandtheMember orMembers concerned havefailed
toproduce amutually satisfactory solution. Onsuchmatters, theTMB maymake suchobservations
asitdeems appropriate totheMembers concerned andforthepurposes ofthereview provided for
inparagraph 11”.Thefollowing suchmatters havebeenbrought before theTMB.
8Both issues were referred tothedispute settlement mechanism bytheMembers affected.G/L/113
Page21
Articles 8.5and4.2-Philippines/United States: changes intheadministration orimplementation of
restrictions
86. InJuly1996 theTMB received acommunication from thePhilippines regarding changes in
theUnited States 'rulesoforigin, which, itwasargued, adversely affected imports intotheUnited States
ofcertain textile products fromthePhilippines andupset thebalance ofrights andobligations between
thetwoparties under theATC. ThePhilippines requested theTMB toconsider thismatter. Atits
meeting inJuly1996, theTMB wasinformed bythePhilippines andtheUnited States thattheyhad
decided tocontinue consultations onthematter, and,therefore, requested theTMB todefer its
consideration ofthisnotification.
Articles 8.5and5.4-Pakistan/United States -Alleged circumvention byPakistani companies
87. InFebruary andMarch 1996 theTMB considered anotification made byPakistan, under
paragraphs 4ofArticle 5and5ofArticle 8,ofdebits made bytheUnited States toPakistan ’squotas
forUScategory 361(bedsheets) onaccount ofalleged circumvention byPakistani companies. The
TMB invited theparticipation ofPakistan andtheUnited States, which sentdelegations topresent their
respective cases. Both parties made presentations andprovided replies toquestions. AtitsMarch
meeting, theTMB wasinformed bythetwodelegations that,following consultations, amutually
satisfactory understanding hadbeenreached between them, andthatthisunderstanding would benotified
totheTMB (G/TMB/R/10 and11). TheTMB received thenotification on1October 1996.
Articles 8.5and8.6:Thailand/United States
88. Inthecontext ofthesafeguard action introduced bytheUnited States onimports ofcotton
andman-made fibreunderwear (seeparagraph 52above), theTMB received anotification fromThailand
under paragraphs 5and6ofArticle 8oftheATC. According tothisnotification, since paragraph 4
ofArticle 6oftheATC provided thatnosafeguard measure shallbeapplied totheexports ofany
member whose exports oftheparticular products were already under restraint under theATC, the
United States hadnoright tointroduce asafeguard measure onimports ofcategory 352/652 from
Thailand,asthatcategorywasalreadysubjecttoagrouplimit.TherepresentativeofThailandconfirmed
that,irrespective oftheUnited States 'decision torescind thesafeguard measure against imports from
Thailand, Thailand wanted theTMB toreview thequestion ofprinciple raised. After having heard
thepresentation oftheparties, theTMB decided toresume thediscussion ofthisissueatasubsequent
meeting (G/TMB/R/2).
89. TheTMB didnotresume thisdiscussion, butitrecalled initsreply toThailand thatwhen it
hadreviewed thesafeguard measure introduced bytheUnited States onimports ofwoven woolshirts
andblouses (UScategory 440)fromHong Kong (G/TMB/R/4 and6),ithadnoted thatHong Kong's
exports ofproducts ofcategory 440intotheUnited States werealready under restraint under agroup
limit notified bytheUnited States andhadfound that,according toparagraph 4ofArticle 6,the
application ofasafeguard measure under Article 6toHong Kong'sexports ofproducts ofcategory 440
intotheUnited States was,therefore, notjustified.
Article 8.6:United States/India: imports ofwomen ’sandgirls’wool coats (UScategory 435)
90. TheTMB received acommunication from India under paragraph 6ofArticle 8,following
thereview bytheTMB ofthesafeguard action taken bytheUnited States onimports ofproducts of
category 435(women ’sandgirls’wool coats) from India (seeparagraph 59above). Inthis
communication, Indianoted thattheTMB hadarrived ataconsensus ontheabsence ofserious damage,
butcould notreach aconsensus ontheexistence ofactual threat thereof. Thus, theTMB hadnotbeen
abletomake appropriate recommendations, though paragraph 6ofArticle 6mandated ittodosoinG/L/113
Page22
situations where therehadbeennoagreement between theMember proposing totakesafeguard action
andtheMember which would beaffected bysuchaction. Itwastheunderstanding oftheGovernment
ofIndiathat,intheabsence ofaclearrecommendation oftheTMB upholding thevalidity oftherestraint
action bytheUnited States, itwasincumbent upontheUnited States towithdraw therestraint. India,
therefore, requested theTMB toreview theaction bytheUnited States incontinuing itsrestraint on
imports ofcategory 435from India, assuchaction wasdetrimental toIndia’sinterests. TheTMB
heard thepresentation byIndia, andconsidered theelements putforward. TheBody could notmake
anyrecommendation inaddition totheconclusions ithadreached ataprevious meeting (G/TMB/R/3),
norcould theTMB reach aconsensus onwhether ornottherestraint oncategory 435could continue
tobemaintained inlightoftheabsence ofconsensus ontheexistence ofactual threat ofserious damage.
TheTMB, therefore, considered itsreview ofthematter under therelevant provisions oftheATC
completed (G/TMB/R/6).9
B. Matters submitted under paragraph 10ofArticle 8
91. Paragraph 10ofArticle 8gives thepossibility toaMember which “considers itself unable
toconform withtherecommendations oftheTMB”,to“provide theTMB withthereasons therefor
notlaterthanonemonth afterreceipt ofsuchrecommendations. Following thorough consideration
ofthereasonsgiven,theTMBshallissueanyfurtherrecommendationsitconsidersappropriateforthwith.
If,aftersuchfurther recommendations, thematter remains unresolved, either Member maybring the
matter before theDispute Settlement Body andinvoke paragraph 2ofArticle XXIII ofGATT 1994
andtherelevant provisions oftheDispute Settlement Understanding ”.TheTMB hasreceived one
suchnotification. Itsreview isdescribed below.
India/United States: imports ofwoven wool shirts andblouses (UScategory 440)
92. TheTMB received acommunication from India under paragraph 10ofArticle 8,following
thereview bytheTMB ofthesafeguard action taken bytheUnited States onimports ofproducts of
category 440(woven wool shirts andblouses) from India (seeparagraph 61above). Inthis
communication, India conveyed itsinability toconform withtherecommendation theTMB hadmade,
which allowed forthecontinuance oftherestraint levels imposed bytheUnited States. TheTMB
heard thepresentation andconsidered theelements putforward byIndia. TheBody could notmake
anyrecommendation inaddition totheconclusions ithadreached ataprevious meeting (G/TMB/R/3).
TheTMB, therefore, considered itsreview ofthematter completed (G/TMB/R/6).10
C. Information submitted totheTMB
Information submitted byHong Kong
93. TheTMB wasinformed byHong Kong, pursuant toArticle 4.4oftheDispute Settlement
Understanding,oftherequestforconsultationsaddressedtoTurkeybyHongKongunderArticleXXII.1
ofGATT 1994 relating totheunilateral imposition ofquantitative restrictions byTurkey onimports
ofabroadrangeoftextileandclothingproductsfromHongKongasfrom1January1996(WT/DS29/1).
TheTMB tooknoteofthisinformation (G/TMB/R/10).
9Seealsofootnote 5onpage 14.
10Seealsofootnote 6onpage 15.G/L/113
Page23
Information received from theChairman oftheTrade Negotiating Committee atofficial level
94. Atitsfirstmeeting theChairman informed theTMB thathehadreceived fromtheChairman
oftheTrade Negotiating Committee atofficial levelaNotefortheRecord, regarding paragraph 13
ofArticle 6oftheATC, providing anagreed interpretation ofthephrase “unless otherwise justified
totheTMB”.TheTMB agreed totransmit thisnote(G/TMB/N/107) toWTO Members fortheir
information (G/TMB/R/1).
VII. IMPLEMENTATION OFSPECIAL PROVISIONS INTHE ATC RELATED TOTHE
SPECIAL INTERESTS OFCERTAIN WTO MEMBERS
A. Article 1.4
95. Paragraph 4ofArticle 1states that“Members agree thattheparticular interests ofthe
cotton-producingexportingMembersshould,inconsultationwiththem,bereflectedintheimplementation
oftheprovisions ofthisAgreement ”.TheTMB received nospecific notification under paragraph 4
ofArticle 1related totheimplementation ofthisprovision.
B. Special provisions infavour ofdeveloping andleast-developed country Members
96. Several paragraphs oftheATC contain special provisions infavour ofdeveloping and/or
least-developed country Members. Initssubmission totheCommittee onTrade andDevelopment,
made attherequest oftheChairmen oftheCouncil forTrade inGoods andtheCommittee onTrade
andDevelopment,theTMBidentifiedthefollowing:paragraph2ofArticle1,paragraph18ofArticle2,
paragraphs 6(a),(b)and(c)ofArticle 6,andparagraph 3(a)oftheAnnex. Inthesame submission,
theTMB alsoidentified provisions oftheATC which could beapplied insuchawayastoprovide
favourable treatment, orbebeneficial, interalia,todeveloping country orleast-developed country
Members. These areparagraph 4ofArticle 1,paragraphs 6and7(a)and(b),15and18ofArticle 2,
Article 3,paragraphs 6(b)and(d)ofArticle 6,paragraphs 1and2ofArticle 7.Thissubmission,
based onnotifications received bytheTMB upuntilmid-July 1996, hasbeencirculated toWTO
Members indocument WT/COMTD/W/17.
VIII. ARTICLE 7-COMMITMENTS UNDERTAKEN ASARESULT OFTHE URUGUAY
ROUND
97. Paragraph 1ofArticle 7states that,“aspartoftheintegration process andwithreference to
thespecific commitments undertaken bytheMembers asaresult oftheUruguay Round, allMembers
shalltakesuchactions asmaybenecessary toabide byGATT 1994 rules anddisciplines soasto:
(a) achieve improved access tomarkets fortextile andclothing products through such
measuresastariffreductionsandbindings,reductionoreliminationofnon-tariffbarriers,
andfacilitation ofcustoms, administrative andlicensing formalities;
(b) ensure theapplication ofpolicies relating tofairandequitable trading conditions as
regards textiles andclothing insuchareas asdumping andanti-dumping rules and
procedures,subsidiesandcountervailingmeasures,andprotectionofintellectualproperty
rights; and
(c) avoid discrimination against imports inthetextiles andclothing sector when taking
measures forgeneral trade policy reasons ”.G/L/113
Page24
98. Paragraph 2ofArticle 7states, interalia,that“Members shallnotify totheTMB theactions
referred toinparagraph 1which haveabearing ontheimplementation ofthisAgreement. Inaddition,
paragraph 3ofthatArticle offerthepossibility that“where anyMember considers thatanother Member
hasnottaken theactions referred toinparagraph 1,andthatthebalance ofrights andobligations under
thisAgreement hasbeenupset, thatMember maybring thematter before therelevant WTO bodies
andinform theTMB”.TheTMB hasnotreceived anynotification orinformation from Members
pursuant tothese paragraphs.
99. TheTMB wasaware oftheconclusions reached bytheCommittee onMarket Access in
April 1995, according towhich insupervising theimplementation ofconcessions relating totariffs
andnon-tariff measures, theapproach tobefollowed wastorelyoncross orreverse notifications
toidentify problems thatmight arise outoftheimplementation ofthese concessions. According
totheinformation available totheTMB, nosuchcross orreverse notification hadbeensubmitted
todatetotheCommittee onMarket Access. TheTMB wasequally aware, however, thatona
fewoccasions, issues which mayalsoberelevant inthecontext oftheprovisions ofArticle 7of
theATC hadbeen raised intheCommittee onMarket Access.
100. TheTMB wasalsoaware oftheconcerns expressed bysome Members withrespect to
thelackofsufficient improvements inaccess tothemarkets insome developing Members.
101. Inaccordance withtheprovisions ofparagraph 11ofArticle 8,thecomprehensive report
theTMB isduetosubmit totheCouncil forTrade inGoods bytheendofJuly1997inthecontext
ofthemajor review oftheimplementation oftheATC willhave toaddress, interalia,theissue
ofimplementation ofArticle 7oftheATC. Inorder tohaveareliable basis forsuchanassessment,
theTMB willhavetorelyoncontributions from Members aswellasrelevant information from
WTO bodies.
IX. COMPLIANCE WITH NOTIFICATION REQUIREMENTS UNDER THE ATC
102. Theimplementation oftheATC cannot bemonitored fullyunless Members comply with
itsnotification requirements. Inthisrespect, theoverall picture isamixed one.Ontheonehand,
theMembers accounting forthemajority ofinternational trade intextiles andclothing under
theATC complied with theessential notification requirements oftheATC. Anumber of
notifications have, however, beenaddressed totheTMB after therespective deadlines foreseen.
Inthisrespect theTMB observed thatitstaking noteoflatenotifications waswithout prejudice
tothelegal status ofsuchnotifications. Ontheother hand, asindicated inthecontext ofsome
oftheprovisions discussed above, theTMB noted withconcern thatanimportant number of
Members hadnotprovided anynotification. TheTMB observed thattheSecretariat hadsent
reminders toMembers ontheir notification obligations. TheTMB expressed itsserious concern
that theabsence ofnotifications ortheir latesubmission may have implications forthe
implementation oftheATC.
103. TheTMB requests theCouncil forTrade inGoods totakenoteoftheabove observations
andconcerns andtorecall toMembers theparticular importance ofstrictly adhering tothe
notification requirements under theATC.G/L/113
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X. FUNCTIONING OFTMB
A. TMB working procedures
104. Pursuant toparagraph 2ofArticle 8oftheATC, theTMB devoted several formal andinformal
sessions ofitsfirstmeeting totheelaboration andadoption ofitsworking procedures (G/TMB/R/1).
105. Atasubsequent meeting, theTMB hadadiscussion onwhen notifications made totheTMB
foritsinformation pursuant toparagraph 3ofArticle 3oftheATC should becirculated toWTO
Members.Bearinginmindparagraph5ofArticle3theTMBdecidedthatinsuchcasesparagraph4.2(a)
oftheTMB’sworking procedures would apply, i.e.thatsuchnotifications would becirculated toWTO
Members without delay, itbeing understood thattheTMB might examine orreview thesenotifications
atalaterstage (G/TMB/R/11).
B. Discharging functions onanadpersonam basis
106. Paragraph 1ofArticle 8oftheATC states thatTMB members discharge theirfunction on
anadpersonam basis. Theworking procedures adopted bytheTMB specify that“indischarging their
functions ...,TMB members andalternates undertake nottosolicit, accept oractupon instructions
fromgovernments, nortobeinfluenced byanyother organisations orundue extraneous factors. They
shalldisclose totheChairman anyinformation thattheymayconsider likely toimpede theircapacity
todischargetheirfunctionsonanadpersonambasis.Shouldseriousdoubtsariseduringthedeliberations
oftheTMB regarding theability ofaTMB member toactonanadpersonam basis, theyshallbe
communicated totheChairman. TheChairman shalldealwiththeparticular matter asnecessary ”.
107. When adopting itsworking procedures, theTMB invited itsChairman tosubmit totheCouncil
forTrade inGoods thefollowing forappropriate action: “WTO Members which, pursuant tothe
decision oftheGeneral Council of31January 1995, appoint TMB members under Article 8.1ofthe
Agreement onTextiles andClothing accept thatTMB members serve intheiradpersonam basis and
notasgovernment representatives. Consequently, theyshallnotgiveTMB members instructions, nor
seektoinfluence them, withregard tomatters before theTMB. Thesame applies toalternates. ”This
proposal wastransmitted totheCouncil forTrade inGoods inJuly1995, andthematter isstillwith
theCouncil. TheTMB requests theCouncil totakeappropriate action onthisproposal.
C. Meetings oftheTMB
108. TheTMB hastodateheldnineteen meetings, ninein1995 (thefirstonewasheldinseven
sessions), tenfrom January to1October 1996, totalling overall eighty-four days(seeAnnex III).It
hasreviewed tensafeguard measures imposed pursuant toparagraph 10ofArticle 6,aswellasfive
matters referred totheTMB under Article 8,forwhich itinvited delegations oftheparties concerned,
inaccordance withitsworking procedures. Ithasstarted toreview twosafeguard measures imposed
under paragraph 11ofArticle 6.TheTMB alsoreviewed, pursuant toparagraph 9ofArticle 6,eight
agreed restraint measures. Inaddition ithasreviewed, interalia,forty-two notifications made pursuant
toparagraphs 6and7(a)and(b)ofArticle 2,twenty-five notifications under paragraph 1ofArticle 3,
andtaken noteoftwenty-five notifications under paragraph 17ofArticle 2,aswellasoffifty-eight
notifications under paragraph 1ofArticle 6.Forthispurpose, theTMB hadinmany instances to
seekadditional information orexplanations fromtheMembers before thereview could becompleted.
D. Circulation ofreports, Chairman ’snotes, derestriction ofTMB documents
109. TheTMB usually adopts thereports ofitsmeetings atthesubsequent meeting, onthebasis
ofadraftproposed bytheTMB secretariat incorporating, whenever appropriate, thetextsofTMB’sG/L/113
Page26
recommendations, findings andobservations; these textsthemselves havealready beenadopted bythe
TMB. Such reports are,therefore, normally circulated toWTO Members more thanamonth after
eachmeeting oftheTMB. TheTMB feltthatthistimelagwasunnecessarily long. It,therefore,
authorized itsChairman onseveral instances, inparticular when theTMB hadreviewed dispute cases
betweenWTOMembers,toissueanoteforwardinginformationontheTMB’srecommendations,findings
andobservations toWTO Members (G/TMB/1 to8).
110. Following thedecision adopted bytheGeneral Council atitsmeeting on18July1996, the
TMB considered thequestion ofthederestriction ofitsworking documents (G/TMB/W/- and
G/TMB/SPEC/-series). TheTMB recalled thatinadopting itsownworking procedures on13July1995
ithadagreed thatitwould “...decide ontheimplementation ofthedecision oftheGeneral Council
onderestriction ofdocuments when theGeneral Council hasadopted itsdecision onthismatter ”
(G/TMB/R/1). TheTMB tooknoteoftheGeneral Council ’sdecision anddecided thatitwould act
infullcompliance withit(G/TMB/R/16).
E. Overall assessment
111. Anassessment ofTMB’sfunctioning cannot bemade without taking intoconsideration
thecircumstances ofitsestablishment, theinitial workload itwasfaced with, aswellasthe
importance ofthissector ofinternational trade foralarge number ofWTO Members. Atthe
entry intoforce oftheATC, theTMB composition hadyettobedecided, which tooktheGeneral
Council onemonth. TheTMB, therefore, hadtostarttheelaboration ofitsworking procedures,
amandatory requirement ofparagraph 2ofArticle 8,withconsiderable delay. Itadopted them
inadifficult context, asmany ofthenotifications called forbytheATC were arriving anda
number ofsafeguard actions were being taken andhadtobereviewed.
112. TheadoptionofworkingprocedureswasapreconditionfortheTMBtobecomeoperational.
TheTMB took four months todevelop andadopt them, but,after more than oneyear of
experience, theTMB isoftheviewthatithasbeen aworthwhile investment. Nevertheless, the
TMB keeps itsworking procedures under review.
113. Theamount ofnotifications anddispute cases theTMB hashadtoreview sinceitsinception
hasbeensubstantial, inparticular in1995. TheTMB hasbeenabletocopewithit,although in
some instances thereview ofdispute cases hadtobeslightly delayed. Thiswasdone inallcases
inconsultation -andagreement -withtheMembers concerned, which showed anunderstanding
forwhich theTMB isthankful.
114. Afirstsetofnotifications (e.g.notifications pursuant toArticles 2.1and2.2,2.6and2.7(a)
and(b),3.1and6.1)reached theTMB initsearly days. Inview oftheir great number, and
ofthenumber ofsafeguard actions theTMB hadtocopewithatthesame time, thereview of
these notifications hadtobesomewhat delayed. TheTMB, however, tookthedecision tocirculate
suchnotifications toWTO Members without delay. Itdidanin-depth review ofthese notifications,
often seeking additional information (formally andinformally) from Members. Thisinmany cases
leadtoimportant modifications oftheoriginal notifications, withaviewtobringing them inline
withtherelevant provisions oftheATC.
115. TheTMBreviewedfourteendisputesorrelatedcases;thecompletionoftwoofthesereviews
ispending. Inthemajority ofcases theTMB could reach aconsensus andadopt recommendations,
asrequired bytheATC, withwhich theparties were abletocomply.
116. Asaresult ofthese reviews, aswellasoftheexamination oftheother notifications, the
TMB believes thatithasbeen abletoestablish acertain authority andtosetcertain standardsG/L/113
Page27
which canprovide guidance toMembers interms oftheirimplementation ofthedifferent provisions
oftheATC.
117. Thedeadlines provided bytheATC totheTMB foritsreview ofdispute cases places it
under tighttimeconstraint. Ontheonehand, theTMB hastoreach aconclusion relatively quickly,
butontheother hand, ithastocopewithaverysubstantial amount ofinformation andmake
anin-depth analysis ofmany economic andlegal arguments andconsiderations. TheTMB is
oftheview thatinsome instances additional -iflimited -timeisnecessary toreach decisions
asrequired.
118. TheTMB isconcerned thatinafewcases itcould notarrive ataconsensus decision on
matters brought toit,and,therefore, could notfulfil itsmandate. Partofthiscanbeattributed
tothelackoftimeavailable foritsreview. ButtheTMB isfully aware oftheadverse impact
suchinability hadontheMembers affected. While similar circumstances causing atemporary
deadlock cannot totally beexcluded inthefuture, theTMB isdetermined tomake allthenecessary
efforts toovercome suchdifficulties andreach thedecisions required ofitbyconsensus.
119. Anorganizational aspect hasalsoabearing onthework oftheTMB. Anumber ofTMB
members arenominated byWTO Members represented bysmall delegations, andhaveanumber
ofimportant duties toperform astheir country orterritory representatives, inaddition tothe
TMB. While theTMB, incompliance withthedecision oftheGeneral Council, submitted well
inadvance itstentative schedule ofmeetings for1996, thiswasoften notaccommodated inthe
WTO schedule ofmeetings. Onanumber ofoccasions, meetings oftwoorthree other WTO
bodiestookplaceinparallelwithTMBmeetings,makingitdifficultforsomemembersoralternates
toparticipate inTMB meetings. Inorder tofacilitate thework oftheTMB, dueconsideration
should begiven totheschedule ofmeetings oftheTMB intheWTO ’soverall schedule ofmeetings.
120. TheTMB hasmade substantial efforts toensure andtoimprove thetransparency ofits
proceedings. Ithasdecided tocirculate most ofthenotifications itreceives toWTO Members
without delay, asreflected initsworking procedures. Ithasalsotried toprovide asmuch
information aspossible initsreports onmatters athand, reproducing inparticular theviews
oftheparties toadispute, andalsogiving, totheextent possible, thereasons forthedecisions
reached byconsensus. Furthermore, theconcern fortransparency wasgermane tothefactthat
indeveloping itsworking procedures theTMB agreed that, indispute cases, representatives of
theMembers involved could bepresent andparticipate inthediscussion, within certain limits,
throughout thereview, upto,andinsome cases, including, thedrafting oftherecommendations.
TheTMB hasalsoauthorized itsChairman tocirculate anotetoWTO Members after the
conclusion ofthereview ofdispute cases, sothatitsrecommendations orfindings areimmediately
available toWTO Members.
121. TheTMB isaware ofthefactthatinanumber ofcases thecommon rationale forits
recommendations orfindings wasnotasclearly expressed asitwould havehoped. Itiscommitted
toimproving transparency inthisrespect, aswellasmaking further efforts toprovide asmany
details andexplanations aspossible initsreports. Members should, however, take into
consideration thatconsensus issometimes reached onthebasis ofdifferent considerations or
different rationales, andthatamore detailed report mayrender consensus more difficult toachieve
and/or require additional time.
122. TheTMB isoftheview that, although ithasinmost cases been possible forMembers
torelyonit,there maybeaneed -andpossibility -forimprovement incertain areas such as
itsability toreach decisions byconsensus, andtomake itsdecisions more understandable by
Members. Inthisregard, theTMB feelsthatoneimportant waytoachieve these objectives isG/L/113
Page28
toensure thattheTMB continues todevelop itscollegiality inorder toovercome possible difficulties
stemming, interalia,fromthefactthat,ontheonehand, TMB members areappointed byMembers
designated bytheCouncil forTrade inGoods anditsmembership hastobebalanced andbroadly
representative oftheMembers and,ontheother hand, TMB members discharge their functions
onanadpersonam basis. Alsowithregard todeveloping collegiality, noticeable progress could
beachieved overtime, which provides agood basis forfuture improvements.G/L/113
Page29
ANNEX I
Notifications Received Pursuant toParagraphs 6and 7ofArticle 2
Situation asof1October 1996
WTO Member Share oftotal volume oftheMember ’s1990 imports of
theproducts intheAnnex integrated
(unless otherwise indicated)
(%)Share of
tops and
yarns
(%)*Share of
fabrics
(%)*Share of
made-up textile
products
(%)*Share of
clothing
(%)*
Argentina 16.8 0.12 12.73 3.96 0.001
Bangladesh 16.04 (ofthe1990 value ofimports) 4.59 6.15 0.05 5.25
Bolivia 16.42 (of1990 imports oftextiles and clothing) 7.38 1.96 0.35 6.73
Brazil 16 6.02 3.01 7.02 0.01
Canada 16.34 9.6 4.33 1.28 1.13
Colombia 16.21 16.21 0.00 0.00 0.00
Costa Rica 16 8.68 1.61 5.39 0.32
Cyprus 16.44 (ofthe1990 value ofimports) 0.73 13.88 1.49 0.33
Czech Republic 16.16 (of1993 imports) 12.55 1.63 1.06 0.92
Dominican Republic 16.02 (of1991 imports) 7.48 8.11 0.29 0.14
ElSalvador 16 12.68 1.12 2.05 0.15
European Communities 16.4 4.4 8.10 3.60 0.40
Guatemala 16.17 4.57 7.79 0.37 3.44
Honduras 16.0 5.36 5.32 3.09 2.23
Hungary 16.01 (of1992 imports) 7.00 5.67 2.78 0.56
India 16.35 (April 1990 -March 1991) 16.35 0.00 0.00 0.00
Indonesia 16 15.96 0.03 0.01 0.00
Japan 16 4.45 2.10 9.02 0.44
Korea 16.35 14.81 1.52 0.00 0.01
Malaysia 18.09 (ofthe1990 value ofimports) 6.97 9.79 0.14 1.17
Malta 17.3 0.74 16.32 0.15 0.09
Mauritius 16.94 (ofthe1990 value ofimports oftextiles and clothing) 7.6 9.2 0.04 0.2
Mexico 16 5.46 9.20 0.54 0.79
Morocco 16.89 (1990 imports oftextiles and clothing) 14.54 0.16 2.17 0.00
Nicaragua 16.64 (of1990 imports oftextiles and clothing) 10.19 6.38 0.01 0.12
Norway 16.26 3.51 11.95 0.65 0.15
Pakistan 28.14 (July 1990 -June 1991) 0.33 0.00 0.01 27.79
Paraguay 16.78 0.10 2.53 8.45 5.71
Peru 16.26 0.26 15.87 0.00 0.13
Philippines 16.13 9.61 4.91 0.32 1.28
Poland 16.28 15.70 0.04 0.20 0.34
Romania 43.34 (ofthe1990 value ofimports) 17.06 0.00 26.28 0.00
Slovak Republic 16.11 (of1993 imports) 6.46 5.82 3.82 0.003
Slovenia 18.61 (of1992 imports) 7.74 4.47 3.52 2.88
SriLanka 16.06 (ofthe1990 value ofimports) 7.42 7.56 0.56 0.51
Switzerland 16.19 4.99 2.40 8.13 0.67
Thailand 16.02 15.10 0.00 0.69 0.23
Tunisia 17.34 15.22 0.59 1.53 0.00
Turkey 18 15.0 2.30 0.67 0.03
United States 16.21 8.42 2.38 3.25 2.16
Uruguay 16.49 6.78 9.59 0.11 0.01
Venezuela 16 7.35 8.09 0.33 0.23
Zambia 16.01 (ofthe1990 value ofimports oftextiles and clothing) 4.44 7.26 2.21 2.11
*Shares inmost cases calculated bytheSecretariat onthebasis ofnotifications.G/L/113
Page30ANNEX II
Application oftheTransitional Safeguard Mechanism under Article 6oftheAgreement onTextiles and Clothing
Situation asof1October 1996
Member
requesting
consultationsMember subject to
arequest for
consultationCategory
numberProduct description Date ofthe
request for
consultationsType ofsafeguard
measure introducedReview bytheTMB Follow-up oftheTMB
reviewSafeguard
measure
currently in
force
United States ElSalvador 351/651 Cotton &man-made fibre pyjamas &other
nightwear27March 1995 Agreed restraint United States rescinded No
United States Honduras 351/651 Cotton &man-made fibre pyjamas &other
nightwear27March 1995 Unilateral restraint Yes United States rescinded No
United States Jamaica 351/651 Cotton &man-made fibre pyjamas &other
nightwear27March 1995 Agreed restraint United States rescinded No
United States Costa Rica 352/652 Cotton &man-made fibre underwear 27March 1995 Unilateral restraint Yes Dispute settlement panel Yes
United States Dominican Republic 352/652 Cotton &man-made fibre underwear 27March 1995 Agreed restraint Yes Yes
United States ElSalvador 352/652 Cotton &man-made fibre underwear 27March 1995 Agreed restraint Yes Yes
United States Honduras 352/652 Cotton &man-made fibre underwear 27March 1995 Unilateral restraint Yes Subsequent agreed restraint,
reviewedYes
United States Turkey 352/652 Cotton &man-made fibre underwear 28March 1995 Unilateral restraint Agreed restraint during review Agreed restraint reviewed Yes
United States Colombia 352/652 Cotton &man-made fibre underwear 29March 1995 Agreed restraint Yes Yes
United States Thailand 352/652 Cotton &man-made fibre underwear 29March 1995 Unilateral restraint United States rescinded during
reviewNo
United States India 440 Woven wool shirts and blouses 18April 1995 Unilateral restraint Yes Dispute settlement panel Yes
United States India 435 Women ’sand girls’wool coats 18April 1995 Unilateral restraint Yes Dispute settlement panel;
United States rescinded;
India requested termination
offurther action in
pursuance ofdecision to
establish apanelNo
United States India 434 Men’s&boys’wool coats other than suit-type 18April 1995 Unilateral restraint Yes United States rescinded NoG/L/113
Page31Member
requesting
consultationsMember subject to
arequest for
consultationCategory
numberProduct description Date ofthe
request for
consultationsType ofsafeguard
measure introducedReview bytheTMB Follow-up oftheTMB
reviewSafeguard
measure
currently in
force
United States Honduras 435 Women ’sand girls’wool coats 24April 1995 Unilateral restraint Agreed restraint during review Agreed restraint reviewed Yes
United States Philippines 670-L Man-made fibre luggage 24April 1995 Unilateral restraint Rescinded before review No
United States Brazil 434 Men’s&boys’wool coats other than suit-type 26April 1995 None No
United States Hong Kong 440 Woven wool shirts and blouses 27April 1995 Unilateral restraint Yes United States rescinded No
United States SriLanka 670-L Man-made fibre luggage 27April 1995 Agreed restraint United States rescinded No
United States Thailand 670-L Man-made fibre luggage 28April 1995 Unilateral restraint Rescinded before review No
United States Thailand 603 Artificial staple yarn 28April 1995 Unilateral restraint Rescinded before review No
United States Guatemala 342/642 Cotton and man-made fibre skirts 31May 1995 Agreed restraint Agreed restraint reviewed Yes
United States Colombia 444 Women ’sand girls’wool suits 31May 1995 Agreed restraint Agreed restraint reviewed Yes
United States Philippines 444 Women ’sand girls’wool suits 31May 1995 Unilateral restraint Rescinded before review No
United States Costa Rica 351/651 Cotton &man-made fibre pyjamas &other
nightwear29June 1995 Unilateral restraint Rescinded before review No
United States ElSalvador 342/642 Cotton and man-made fibre skirts 29March 1996 Unilateral restraint Agreed restraint before review Yes
Brazil Hong Kong 618 Woven artificial filament fabric 1June 1996 Unilateral restraint Review started Yes
Brazil Hong Kong 838 M&B shirts, knitted orcrocheted, ofother
textile material1June 1996 Unilateral restraint Review started Yes
Brazil Korea 611 Woven fabric containing 85% ormore by
weight artificial staple1June 1996 Unilateral restraint Review deferred attherequest
ofboth partiesYes
Brazil Korea 618 Woven artificial filament fabric 1June 1996 Unilateral restraint id. Yes
Brazil Korea 619 Polyester filament fabric 1June 1996 Unilateral restraint id. Yes
Brazil Korea 620 Other synthetic filament fabric 1June 1996 Unilateral restraint id. Yes
Brazil Korea 627 Sheeting ofstaple filament fibre combinations 1June 1996 Unilateral restraint id. YesG/L/113
Page32
ANNEX III
TMB Meetings
Meeting number Meeting dates Meeting reports
1 8-9and23-24 March, 10-11 April, 15-19 May,
7-9June, 4-6and12-13 July1995G/TMB/R/1
2 13-15 and17-21 July1995 G/TMB/R/2
3 28August to1September 1995 G/TMB/R/2
4 12-15September 1995 G/TMB/R/3
5 25-28 September 1995 G/TMB/R/4
6 16-20 October 1995 G/TMB/R/5
7 13-17 November 1995 G/TMB/R/6
8 4-5December 1995 G/TMB/R/7
9 18-20 December 1995 G/TMB/R/8
10 1-2February 1996 G/TMB/R/9
11 26-29 February 1996 G/TMB/R/10
12 20-22 March 1996 G/TMB/R/11
13 22-24 April 1996 G/TMB/R/12
14 3-5June 1996 G/TMB/R/13
15 24-27 June 1996 G/TMB/R/14
16 22-23 July1996 G/TMB/R/15
17 9-11 September 1996 G/TMB/R/16
18 16-18 September 1996 G/TMB/R/17
19 30September-1 October 1996 G/TMB/R/18SECTION III
COMMITTEE ONSANITARY AND PHYTOSANITARY MEASURESWORLD TRADE G/L/118
15October 1996
ORGANIZATION(96-4271)
REPORT OFTHE COMMITTEE ONSANITARY
AND PHYTOSANITARY MEASURES
This report wasadopted bytheCommittee onSanitary andPhytosanitary Measures on
8October 1996, forconsideration bytheSingapore Ministerial Conference.
***
1. TheAgreement ontheApplication ofSanitary andPhytosanitary Measures setsouttherights
andobligations ofMembers withregard tomeasures notpreviously addressed indetail under theGATT.
2. TheCommittee onSanitary andPhytosanitary Measures (hereinafter the"Committee") was
established toprovide aregular forum forconsultations andtocarry outthefunctions necessary for
theimplementation oftheAgreement andthefurtherance ofitsobjectives, inparticular withrespect
totheprocess ofinternational harmonization ofsanitary andphytosanitary measures. TheCommittee
istoencourage andfacilitate adhocconsultations ornegotiations among Members onspecific sanitary
orphytosanitary issues, toreview notifications andtoencourage theuseofinternational standards,
guidelines andrecommendations. TheCommittee heldthree regular meetings in1995 andagain in
1996(seeSPS/R/1-5). Inaddition, informal meetings andconsultations wereheldonseveral matters.
Aspecial jointmeeting withtheCommittee onTechnical Barriers toTrade washeldontransparency
provisions, inparticular notification procedures andtheoperation ofEnquiry Points.
3. Atitsfirstmeeting in1995, theCommittee adopted working procedures (G/SPS/1) and
recommended procedures andaformat fortheimplementation ofthenotification provisions under the
Agreement(G/SPS/2).Modificationstotheserecommendedproceduresandformat,aswellasprocedures
forthenotificationofurgentactions,weresubsequentlyagreedbytheCommittee(G/SPS/7).Inaddition,
theCommittee established lists (which areregularly updated) ofNational Enquiry Points
(G/SPS/ENQ/series) andofNational Notification Authorities (G/SPS/6). Atthisandlatermeetings,
theCommittee alsoagreed toinvite, onanadhocbasis, thefollowing international intergovernmental
organizationsasobserverstoitsmeetings:Officeinternationaldesépizooties(OIE),CodexAlimentarius
Commission (Codex), International Plant Protection Convention (IPPC), Food andAgriculture
Organization (FAO), World Health Organization (WHO), UNCTAD, International Trade Centre (ITC),
aswellastheInternational Organization forStandardization (ISO).
4. Under theprovisions oftheAgreement, allMembers (except theleast-developed oneswhich
maydelay until2000theimplementation oftheAgreement) arerequired tonotify new,ormodifications
toexisting, sanitary orphytosanitary regulations which arenotsubstantially thesame asthecontent
ofaninternational standard andmayhaveasignificant effect oninternational trade. Each Member
isrequired todesignate asingle central government authority asresponsible forthese notifications.
They arealsorequired toestablish andidentify oneNational Enquiry Point torespond torequests for
information regarding sanitary andphytosanitary measures. Asof8October 1996, 396notifications
havebeenreceived from 31different Members. 82Members haveidentified theirNational Enquiry
Points and63haveidentified theirnational authority responsible fornotifications.G/L/118
Page2
5. TheAgreement setstwoexplicit taskswhich theCommittee hasinitiated butnotyetconcluded.
Article 5:5oftheAgreement requires theCommittee todevelop guidelines tofurther thepractical
implementation ofthisprovision1.Informal andinformal consultations, draft guidelines arebeing
developed forfuture consideration bytheCommittee.
6. TheAgreement requires thattheCommittee develop aprocedure tomonitor theprocess of
international harmonization andtheuseofinternational standards, guidelines andrecommendations.
Aproposal forsuchaprocedure isunder consideration bytheCommittee. Atthesame time, the
Committee isalsoexamining towhatextent, asprovided forbytheAgreement, information gathered
bytherelevant international standard-setting bodies maybeused. Analternative approach considered
bytheCommittee istheextent towhich these bodies might themselves beinvolved inthemonitoring.
7. TheCommitteehasprovidedaregularforumforthediscussionofspecificnotificationssubmitted
byMembers andofconcerns regarding notifications, including insufficient timeprovided forcomment.
OtherissuesregardingtheimplementationoftheAgreementhavealsobeenconsideredbytheCommittee.
Some oftheserelate tospecific measures proposed ortaken bycertain Members which other Members
allege violate theprovisions oftheAgreement, whereas others concern measures which individual
Members havetaken tofurther theirimplementation oftheAgreement, suchas,forexample, with
regard totheiruseofriskassessment. Trade concerns ofamore generic nature, relating tosanitary
andphytosanitary measures, havealsobeendiscussed, including withregard totheestablishment of
pesticide residue requirements, procedures fortheexchange ofscientific andtechnical information
between importing andexporting Members, andsub-national measures.
8. Article 14provides thattheleast-developed country Members maydelay theapplication of
theAgreement until2000. Other developing country Members maydelay theapplication ofprovisions
notrelated totransparency until1January 1997, ifnecessary because ofalackoftechnical expertise
orinfrastructure, orofresources. Also, according totheAgreement, theCommittee may,under certain
circumstances, grant specific, time-limited exceptions toobligations. Although concerns havebeen
expressed bycertain Members thatsome developing country andleastdeveloped country Members
could experience difficulties inimplementing thenotification andother provisions oftheAgreement,
nospecific problems inthisregard havebeenbrought before theCommittee.
9. TheCommittee haskepttheneedfortechnical assistance under regular consideration. The
WTO Secretariat hasinitiated aseries ofregional seminars inAfrica, Asia, Central andEastern Europe
andLatin America, including anumber incooperation withother relevant international organizations,
toassist Members 'implementation oftheAgreement. Other technical assistance hasbeenprovided
bytheSecretariat, directly byMembers andbyregional orinternational organizations. Members with
specific technical assistance needs within thescope ofArticle 9oftheAgreement havebeenencouraged
tomake theseknown totheCommittee, ashavebeenMembers inaposition tooffertechnical assistance.
1Article 5:5states "With theobjective ofachieving consistency intheapplication oftheconcept
ofappropriate levelofsanitary orphytosanitary protection against riskstohuman lifeorhealth, or
toanimal andplant lifeorhealth, eachMember shallavoid arbitrary orunjustifiable distinctions in
thelevels itconsiders tobeappropriate indifferent situations, ifsuchdistinctions result indiscrimination
oradisguised restriction oninternational trade. Members shall cooperate intheCommittee, in
accordance withparagraphs 1,2and3ofArticle 12,todevelop guidelines tofurther thepractical
implementation ofthisprovision. Indeveloping theguidelines, theCommittee shalltakeintoaccount
allrelevant factors, including theexceptional character ofhuman health riskstowhich people voluntarily
expose themselves."G/L/118
Page3
10. Theeffective implementation oftheAgreement requires coordination andcooperation with
relevant international intergovernmental organizations which develop standards, guidelines and
recommendations withrespect tosanitary andphytosanitary measures, andinparticular theOffice
international desépizooties (OIE), theCodex Alimentarius Commission (Codex) andtheInternational
Plant Protection Convention (IPPC). Close working relationships havebeenestablished withthese
bodies whocontribute regularly tothework oftheCommittee. Much progress hasbeenmade inthe
work undertaken bythese bodies which could facilitate theimplementation oftheAgreement byWTO
Members. Progress inthedevelopment ofrelevant international standards andmethodologies forrisk
assessment, inparticular, isoffundamental importance inthisregard, asistherevision oftheIPPC
(now under consideration).
11. TheCommittee hasdiscussed elements ofapractical andeffective on-going andfuture work
program. Thisprogram includes: reviewing theefficacy oftheAgreement 'snotification process;
improving transparency inother areas, including through theexchange ofinformation onMembers '
administrative structures andprocedures related totheestablishment ofSPSmeasures; facilitating
consultations leading totheresolution ofcurrent tradeproblems; coordinating andimproving thequality
andefficiency ofinternational technical assistance; andpromoting therecognition ofequivalent SPS
measures consistent withtheprovisions oftheAgreement.
12. Article 12:7oftheAgreement provides thattheCommittee shallreview theoperation and
implementation oftheAgreement three years afteritsentry intoforce, and,where appropriate, may
submit totheCouncil forTrade inGoods proposals toamend thetextoftheAgreement having regard,
interalia,totheexperience gained initsimplementation. TheCommittee willundertake appropriate
work forsuchareview oftheAgreement.
13. TheCommittee recommends thatMinisters endorse theapproach setoutinparagraphs 5,6,
11and12,above. Furthermore, theCommittee recommends thatMinisters reiterate thestrong
commitment ofallMembers tothefullimplementation oftheAgreement, including itsnotification
andother transparency provisions.SECTION IV
COMMITTEE ONRULES OFORIGINWORLD TRADE G/L/119
18October 1996
ORGANIZATION(96-4447)
REPORT OFTHE COMMITTEE ONRULES OFORIGIN
SECTION A-BACKGROUND
Introduction
1. Thisreport covers theyears 1995and1996. Itaddresses theworkundertaken bytheCommittee
onRules ofOrigin (theCommittee) inrespect oftheimplementation ofthebuilt-in mandate forthe
harmonization ofnon-preferential rulesoforigin (Harmonization Work Programme); implementation
oftheAgreement onRules ofOrigin (theAgreement) ingeneral; andtheidentification ofissues arising
intheHarmonization Work Programme. Asforeseen intheAgreement (Articles 4.1,4.2and9.2(b)),
theHarmonization Work Programme isbeing jointly undertaken bytheCommittee andtheTechnical
Committee onRules ofOrigin (theTechnical Committee) established under theauspices oftheWorld
Customs Organization.
2. Multilaterally agreed rulesoforigin areindispensable fortheunrestricted flowofinternational
trade. They provide forpredictability andtransparency. Second, theyeliminate obstacles tothefree
flowoftrade, created bytheexistence ofdifferent national rulesoforigin withsometimes contradictory
methods fortheattribution oforigin. Finally, under conditions ofglobalization inwhich goods are
decreasingly being produced inonecountry there isanurgent necessity toagree toacommon setof
rulesfortheconferment oforigin ongoods. Discussions under theWork Programme illustrate these
difficulties andchallenges.
3. Members haverecognized andreaffirmed thatthenegotiations fortheharmonization ofnon-
preferential rules oforigin should establish rules thatcanbeapplied inanimpartial, transparent,
predictable, consistent andneutral manner. Theessential objectives andprinciples oftheHarmonization
Work Programme arecontained inArticle 9.1oftheAgreement. Annexed totheAgreement isa
common declaration withregard topreferential rulesoforigin which setsoutcertain disciplines tobe
followed intheapplication ofsuchrules.
Work oftheCommittee onRules ofOrigin
4. Intheperiod under review, theCommittee heldeight formal meetings which werepreceded
byextensive informal consultations (seeAnnex IIforminutes). TheCommittee elected Mr.Chiedu
Osakwe (Nigeria) asChairman andMrs. Anikó Ivanka (Hungary) asVice-Chairperson for1995 and
re-elected them for1996.
5. Participation intheCommittee isopentoallWTO Members. Inaddition, Governments granted
observer status bytheWTO General Council, aswellasrepresentatives oftheIMF, OECD, UNCTAD,
WCO andtheWorld Bank attended Committee meetings asobservers.
6. Atitsmeeting of16November 1995, theCommittee adopted itsrules ofprocedure, which
were approved bytheCouncil forTrade inGoods.G/L/119
Page2
SECTION B-STATUS REPORT OFTHE COMMITTEE 'SWORK
Implementation oftheAgreement
(i) Harmonization Work Programme
7. TheHarmonization Work Programme wasofficially launched on20July1995andisscheduled
forcompletion by20July1998. TheProgramme isdivided intothree Phases:
(i) Definitions ofGoods Wholly Obtained, andMinimal Operations orProcesses;
(ii) Substantial Transformation -Change inTariff Classification; and
(iii) Substantial Transformation -Supplementary Criteria.
8. From theinitiation oftheHarmonization Work Programme, inJuly1995, tothepresent, the
Committee hasreceived andconsidered fourReports fromtheTechnical Committee onRules ofOrigin
(seeAnnex 2).According totheAgreement onRules ofOrigin, theTechnical Committee should submit
quarterly results ofitswork totheCommittee. Atthetimeofsubmitting thisReport totheCouncil
forTrade inGoods, theFifth Report from theTechnical Committee hadbeenreceived, buthadnot
yetbeencirculated forconsideration. Consequently, inputs from thatReport were notavailable for
inclusion inthisReport.
9. Atitsmeeting of16November 1995, theCommittee began consideration oftheFirstReport
oftheTechnical Committee concerning thedefinition ofwholly obtained goods (Annex A)andthe
definition ofminimal operations orprocesses thatdonotbythemselves confer origin toagood(Annex
B).Atthatmeeting, itapproved definitions 1(a),1(b)and1(e)ofAnnex A,anddefinitions 1(a),1(b)
and1(c)ofAnnex B.TheCommittee decided torequest theTechnical Committee torefine definitions
of1(c),1(d)and1(g)inAnnex A.TheCommittee agreed torequest theTechnical Committee toforward
ageneral format establishing theoverall architectural design within which theresults ofthedifferent
phases oftheHarmonization Work Programme willbefinalized. Ontheproblem ofthedefinition
oftheterm"country", theCommittee decided torequest theTechnical Committee tofullyproceed
withtheHarmonization Work Programme intheabsence ofanabstractly constructed definition ofthe
term"country", andtoforward toitunresolved practical issues relating tothedefinition oftheterm
"country", forafinaldetermination.
10. Atitsmeeting of1February 1996, theCommittee agreed thattheExplanatory Notes tothe
definitions inAnnexes AandBoftheFirstReport should belegally binding. Itwasalsoagreed that
theCommittee should request theTechnical Committee torevisit theExplanatory Notes onthebasis
thattheywillbelegally binding. Atthismeeting, theCommittee examined theissue of"scrap and
waste" andidentified three separate concepts: scrap andwaste; articles thatcannolonger perform
theiroriginal purpose; andparts recovered from thesaidarticles. TheCommittee recognized that
theissue ofparts asanindependent issue hadnotbeenaddressed bytheTechnical Committee and
consequently agreed toreferittotheTechnical Committee. Onthequestion ofdraftdefinition 2of
Annex A,including theorigin ofgoods obtained orproduced onvessels, factory ships, structures and
installations outside acountry, analternative drafttextwasformulated asapossible basisforanagreed
definition. However, atsubsequent discussions ontheissue attheMaymeeting, different views
expressed byMembers produced fouralternative drafttextsasafurther possible basis foranagreed
definition.
11. Atitsmeeting of10May1996, theCommittee approved definitions 1(a),1(b), 1(c),1(d),
1(e)and1(f)andthelegally binding notes tothose definitions inAnnex 2totheThird Report. With
reference todefinition 1(i),itwasagreed thattheTechnical Committee should berequested toexamine
themeaning oftheterms "produced" and"solely". TheCommittee determined theneedtotransmitG/L/119
Page3
totheTechnical Committee therequest tofurther examine andclarify withaviewtopossibly defining
thefollowing terms when usedinthecontext ofwholly obtained orproduced: processing, further
processing andmanufacturing. TheCommittee noted thatthedraftdefinitions ofminimal operations
orprocesses willbere-examined throughout theHarmonization Work Programme.
12. TheCommitteealsoconsideredtherecommendationfromtheTechnicalCommitteeonthegeneral
rules forinterpreting andapplying therules oforigin andthegeneral format establishing theoverall
architectural design oftheharmonized rules oforigin. Itwasagreed thatthedraftsubmitted tothe
Committee presented avalid basis forthecontinuation oftheHarmonization Work Programme, and
thatthedraftneeded tobefurther developed, consistent withtheAgreement, aswork progresses.
13. TheCommittee established anIntegrated Negotiating Text(INT) fortheHarmonization Work
Programme which provides astatus report andfactual account ofallstages ofthenegotiations, including
allreservations byMembers (seeAnnex II).Itisthecommon working document andreference point
forthejointwork ofthetwoCommittees. Inestablishing theINT, itwasnoted thattheaimofsuch
atextwould betoenhance efficiency anddiscipline inthenegotiating process, assist delegations,
particularly intheircapitals, inassessing progress inthenegotiations andproblems thatexistand,finally,
alsoassist inbuilding abridge ofunderstanding between thetwoCommittees.
(ii) Notification ofnon-preferential rules oforigin
14. Notifications relating tonon-preferential rulesoforigin havebeenreceived from51Members
ofwhich 22Members notified thattheydonothavenon-preferential rules oforigin (seeAnnex I).
Thisconstitutes 46percentofMembers oftheWTO. 59Members or54percenthavenotnotified.
(iii) Notification ofpreferential rules oforigin
15. Notifications relating topreferential rulesoforigin havebeenreceived from51Members, of
which oneMember notified thatitdoesnothavepreferential rules oforigin (seeAnnex I).This
constitutes 46percentofWTO Members. 59Members havenotyetnotified theirpreferential rules
oforigin (seeAnnex I),constituting 54percentofWTO Members.
16. TheCommittee repeatedly expressed concern thatanumber ofMembers hadnotyetcomplied
withthenotification requirements, andurged those Members whohavenotyetdonesotosubmit their
notifications without further delay.
(iv) Other issues related toimplementation oftheAgreement
17. Further tothenotifications, theCommittee alsodiscussed additional issues linked tothe
implementation oftheAgreement. Inthisregard, concern wasexpressed bysome Members onthe
needtoavoid unilateral changes inrulesoforigin thatcreate uncertainty andhaveadverse effects on
international trade.
18. Members oftheCommittee commented alsoonnotifications ofnational legislation submitted
bysome Members. Several significant issues wereraised. Forinstance, views wereexpressed that
complex procedures forcertificates oforigin andexclusive language requirements, inparticular in
relation totheapplication ofanti-dumping duties, should beavoided; theview wasalsoexpressed
thatcertificates oforigin could constitute useful instruments inpreventing practices aimed atconcealing
theactual origin ofgoods. Tothisend,simplicity ofprocedures andconfidentiality ofproducer
information wereemphasized. However, oncertificates oforigin, theviewwasexpressed thatsuch
instruments arenotcovered bytheprovisions oftheAgreement. Ontheissues raised, theCommitteeG/L/119
Page4
didnotcome toacommon view. Intheend,theCommittee agreed thatrulesandprocedures indomestic
legislation must becompatible withGATT 1994 rules, andanychanges before theconclusion of
negotiations should beconsistent withdisciplines governing thetransition period.
SECTION C-CONCLUSIONS AND RECOMMENDATIONS
Implementation oftheAgreement ingeneral
19. TheCommittee focused ontheimplementation oftheAgreement, particularly onthe
Harmonization Work Programme.
20. Aprocedure wasadopted bytheCommittee todealwithqueries byMembers inrespect of
notifications ofnational legislations. Thisprocedure willserve toensure aproper andcoordinated
examination ofsuchnotified legislation andtoensure conformity withdisciplines established inthe
Agreement. TheCommittee recommends adherence byMembers totheguidelines established forthe
treatment ofnotifications byMembers.
21. TheCommittee recognized thatnotifications areindispensable fortheeffective andcredible
functioning oftheWTO Agreement. Lowratesofnotification restrict theability oftheCommittee
toassess theglobal status ofrulesoforigin, andconsequently theeffectiveness ofnewdisciplines once
theyareconcluded. TheCommittee callsonallMembers thathavenotyetnotified either theirnon-
preferential orpreferential rules oforigin todosowithout further delay.
Harmonization Work Programme
22. TheHarmonization Work Programme presents amixed picture ofprogress andproblems.
TheWork Programme isdivided intoPhases I,IIandIIIasprovided forinArticle 9oftheAgreement.
Phase Iislargely completed, although twoissues remain unresolved.
23. First, theorigin tobeattributed toparts recovered from articles inacountry different from
thecountry where thearticles were used(consumed) raised several issues.
24. Thekeypendingissuereferstopartsrecoveredfromusedarticlesnotfitfortheiroriginalpurpose
andnotcapable ofbeing restored orrepaired, imported, interalia,forrecycling purposes. Onthis
issue, environmental policy considerations wereraised bysome Members, thattrade insucharticles
andparts should notbeusedto"dump" scrap andwaste, toxic, hazardous andradioactive materials
inothercountries. TheCommittee recognized theseconcerns asvalid. Atthesametime, mostMembers
endorsed theview thattheCommittee should restrict itswork totheattribution oforigin togoods,
andexclude extra-origin considerations which riskjeopardizing thework oftheCommittee.
25. Thesecondunresolvedquestionreferstotheorigintobeattributedtogoodsobtainedorproduced
onvessels, factory ships, structures andinstallations outside acountry. Thisquestion raised several
complex issues ofinternational lawandpublic policy linked, inparticular, withthepractical application
oftheterm"country" inrelation togoods which should beconsidered asbeing wholly obtained. There
arelong-standing national positions atissue. Resolution ofthisproblem willbepossible onlyby
constructive andmutual compromises andunderstanding byMembers. Tothisend,theCommittee
isproceeding withtheHarmonization Work Programme onthebasis ofaddressing issues related to
theterm"country" onlytotheextent where therearepractical consequences fortheattribution oforigin
tospecific goods, intheinterest ofachieving theobjectives ofthisAgreement.
26. TheCommittee recommends thatattention should strictly focus ontheconferment oforigin
togoods, andthatextra-origin considerations beexcluded fromitswork. While itisrecognized thatG/L/119
Page5
harmonization negotiations cannot beundertaken inavacuum, related issues arising should bereferred
bytheCommittee totherelevant Committees.
27. While substantial progress hasbeenmade inPhase IIoftheHarmonization Work Programme,
thePhase isbehind schedule duetothecomplexities involved. Notwithstanding these delays, the
CommitteeconsidersthattheHarmonizationWorkProgrammeshouldbecompletedwithinthethree-year
timeframe. Tothisend,additional steps needtobetaken, inaccordance withtheprovisions ofthe
Agreement, toensure adherence tothetimeframe. Note should betaken oftheongoing efforts to
further improve theefficiency ofthejointwork bytheCommittee andtheTechnical Committee. In
addition, theIntegrated Negotiating TextfortheHarmonization Work Programme isasignificant and
useful document thatwillfacilitate theHarmonization Work Programme. Itprovides thebasis for
measuring theprogress andtheefficiency ofthenegotiations, aswellasthecoherence oftherules
thatarebeing established.G/L/119
Page6
Annex I
1. Members thathavenotified Non-Preferential Rules ofOrigin
Argentina (G/RO/N/2 &10)
Australia (G/RO/N/1)
Canada (G/RO/N/1)
Colombia (G/RO/N/1)
Cuba (G/RO/N/3)
Czech Rep.(G/RO/N/2)
EC(G/RO/N/1)
Hong Kong (G/RO/N/1)
Hungary (G/RO/N/2)
Japan (G/RO/N/1)Korea (G/RO/N/1)
Madagascar (G/RO/N/11)
Malta (G/RO/N/4)
Mexico (G/RO/N/12)
Morocco (G/RO/N/2)
NewZealand (G/RO/N/1)
Norway (G/RO/N/8)
Peru(G/RO/N/4 &5)
Poland (G/RO/N/8)
Romania (G/RO/N/1)Senegal (G/RO/N/10)
SlovakRepublic(G/RO/N/1)
Slovenia (G/RO/N/5 &7)
South Africa (G/RO/N/3)
Switzerland (G/RO/N/4)
Tunisia (G/RO/N/7)
Turkey (G/RO/N/8)
US(G/RO/N/1 &6)
Venezuela (G/RO/N/1 &10)
2. Members thathavenotified thattheydonothaveNon-Preferential Rules ofOrigin
Bolivia (G/RO/N/9)
BruneiDarussalam
(G/RO/N/5)
Chile (G/RO/N/6)
Costa Rica(G/RO/N/1)
DominicanRep.(G/RO/N/9)
ElSalvador (G/RO/N/10)
Honduras (G/RO/N/3)Iceland (G/RO/N/5)
India (G/RO/N/1)
Israel (G/RO/N/13)
Jamaica (G/RO/N/4)
Kenya (G/RO/N/9)
Malaysia (G/RO/N/6)
Mauritius (G/RO/N/1)
Nicaragua (G/RO/N/10)Philippines (G/RO/N/6)
Singapore (G/RO/N/3)
Thailand (G/RO/N/1)
Trinidad &Tob. (G/RO/N/7)
Uganda (G/RO/N/13)
United Arab Emirates (G/RO/N/13)
Uruguay (G/RO/N/12)G/L/119
Page7
3. Members thathavenotnotified Non-Preferential Rules ofOrigin
Antigua andBarbuda
Bahrain
Bangladesh
Barbados
Belize
Benin
Botswana
Brazil
Burkina Faso
Burundi
Cameroon
Central African Republic
Chad
Côted'Ivoire
Cyprus
Djibouti
Dominica
Ecuador
Egypt
FijiGabon
Gambia
Ghana
Grenada
Guatemala
Guinea Bissau
Guinea, Rep.of
Guyana
Haiti
Indonesia
Kuwait
Lesotho
Liechtenstein
Macau
Malawi
Maldives
Mali
Mauritania
Mozambique
MyanmarNamibia
Nigeria
Pakistan
Papua NewGuinea
Paraguay
Qatar
Rwanda
Saint KittsandNevis
Saint Lucia
SaintVincentandGrenadines
Sierra Leone
Solomon Islands
SriLanka
Suriname
Swaziland
Tanzania
Togo
Zambia
Zimbabwe
4. Members thathavenotified Preferential Rules ofOrigin
Argentina (G/RO/N/10 &12)
Australia (G/RO/N/1)
Bolivia (G/RO/N/1 &12)
Brazil (G/RO/N/12)
BruneiDarussalam
(G/RO/N/4)
Canada (G/RO/N/1, 6&8)
Chile (G/RO/N/6)
Colombia (G/RO/N/1 &12)
Côted'Ivoire (G/RO/N/11)
Cuba (G/RO/N/3)
Czech Rep.(G/RO/N/2)
Dominican Rep.(G/RO/N/5)
EC(G/RO/N/1)
Ecuador (G/RO/N/12)
ElSalvador(G/RO/N/10&11)
Honduras (G/RO/N/3 &10)Hungary (G/RO/N/2)
India (G/RO/N/1)
Indonesia (G/RO/N/4)
Israel (G/RO/N/13)
Jamaica (G/RO/N/4)
Japan (G/RO/N/6)
Kenya (G/RO/N/9)
Korea (G/RO/N/7)
Madagascar (G/RO/N/11)
Malaysia (G/RO/N/4)
Malta (G/RO/N/4)
Mauritius (G/RO/N/1)
Mexico (G/RO/N/12)
Morocco (G/RO/N/2)
New Zealand (G/RO/N/1)
Nicaragua (G/RO/N/10)
Norway (G/RO/N/8)Paraguay (G/RO/N/12)
Peru (G/RO/N/1 &12)
Philippines (G/RO/N/4)
Poland (G/RO/N/8)
Senegal (G/RO/N/10)
Singapore (G/RO/N/3 &4)
Slovak Republic (G/RO/N/1)
Slovenia (G/RO/N/5 &7)
Switzerland (G/RO/N/6)
Thailand (G/RO/N/1 &4)
Trinidad &Tob. (G/RO/N/7)
Tunisia (G/RO/N/7)
Turkey (G/RO/N/8)
US(G/RO/N/1, 6&12)
Uganda (G/RO/N/13)
Uruguay (G/RO/N/5)
Venezuela (G/RO/N/1 &12)
5. Member thathasnotified thatitdoes nothave Preferential Rules ofOrigin
Hong Kong (G/RO/N/1).G/L/119
Page8
6. Members thathave notnotified Preferential Rules ofOrigin
Antigua &Barbuda
Bahrain
Bangladesh
Barbados
Belize
Benin
Botswana
Burkina Faso
Burundi
Cameroon
Central African Republic
Chad
Costa Rica
Cyprus
Djibouti
Dominica
Egypt
Fiji
Gabon
GambiaGhana
Grenada
Guatemala
Guinea Bissau
Guinea, Rep. of
Guyana
Haiti
Iceland
Kuwait
Lesotho
Liechtenstein
Macau
Malawi
Maldives
Mali
Mauritania
Mozambique
Myanmar
Namibia
NigeriaPakistan
Papua New Guinea
Qatar
Romania
Rwanda
St.Kitts &Nevis
Saint Lucia
Saint Vincent &Grenadines
Sierra Leone
Solomon Islands
South Africa
SriLanka
Suriname
Swaziland
Tanzania
Togo
United Arab Emirates
Zambia
ZimbabweG/L/119
Page9
Annex II
1. Minutes ofMeetings oftheCommittee onRules ofOrigin
- 4April 1995 (G/RO/M/1)
- 27June 1995 (G/RO/M/2)
- 16November 1995 (G/RO/M/3)
- 29November 1995 (G/RO/M/4)
- 1February 1996 (G/RO/M/5)
- 10May 1996 (G/RO/M/6)
- 13September 1996 (G/RO/M/7)
- 11October 1996 (G/RO/M/8)
2. Reports oftheTechnical Committee onRules ofOrigin
- G/RO/1 (First Report)
- G/RO/4 (Second Report)
- G/RO/5 (Third Report)
- G/RO/6 (Fourth Report)
- G/RO/9 (Fifth Report -received butnotyetconsidered)
3. Letters from theChairman oftheCommittee onRules ofOrigin totheChairman oftheTechnical
Committee onRules ofOrigin
- Working languages oftheTechnical Committee onRules ofOrigin (6April 1995, G/RO/W/1)
- Initiation oftheHarmonization Work Programme (20July 1995, G/RO/W/4)
- Definition oftheterm "country": establishment ofadrafting group (29June 1995, G/RO/W/5)
- Harmonization ofrules oforigin (2January 1996, G/RO/W/9)
- Harmonization ofrules oforigin (1February 1996, G/RO/W/11)
- IntegratedNegotiatingTextfortheHarmonizationWorkProgramme(22May1996,G/RO/W/13)
- Harmonization ofrules oforigin (21May 1996, G/RO/W/14)
- Integrated Negotiating Text fortheHarmonization Work Programme (12September 1996,
G/RO/7)
- Harmonization ofrules oforigin (16September 1996, G/RO/8)
4. Integrated Negotiating Text fortheHarmonization Work Programme
- G/RO/W/13
- G/RO/W/13/Rev.1SECTION V
INDEPENDENT ENTITY ESTABLISHED PURSUANT
TOTHE AGREEMENT ONPRESHIPMENT INSPECTIONWORLD TRADE G/PSI/IE/3
G/L/120
ORGANIZATION 18October 1996
(96-4337)
Agreement onPreshipment Inspection
Independent Entity
REPORT OFTHE INDEPENDENT ENTITY TOTHE
COUNCIL FOR TRADE INGOODS
TheAgreement onPreshipment Inspection provides fortheestablishment ofanIndependent
Entity fortheadministration oftheindependent review procedures assetoutinArticle 4ofthe
Agreement. TheIndependent Entity (IE)wasestablished byDecision oftheGeneral Council of
13December1995(WT/L/125/Rev.1).ParagraphI.CoftheStructuresandFunctionsoftheIndependent
Entity (Annex IIofWT/L/125/Rev.1) provides that,
"theIEwillreport totheCouncil forTrade inGoods atleastonceayearbutmore frequently
ifnecessary."
Thereport below ispresented inaccordance withtheabove requirement.
1. TheDecision oftheGeneral Council of13December 1995 (WT/L/125/Rev.1) approved the
Agreement between theWTO, theInternational Chamber ofCommerce (ICC), andtheInternational
Federation ofInspection Agencies (IFIA) establishing theIndependent Entity foreseen inArticle 4(a)
oftheAgreement onPreshipment Inspection. Annex IoftheDecision contains theterms ofthe
Agreement between theWTO, theICC, andtheIFIA; Annex IIcontains theStructure andFunctions
oftheIndependent Entity; andAnnex IIIcontains theRules ofProcedure fortheOperation of
Independent Reviews.
2. Following theDecision oftheGeneral Council, theadministrative andprocedural requirements
necessary tocommence operations oftheIEwere putinplace inApril 1996. Specifically, theList
ofExperts forIndependent Reviews hadbeenfinalized anddistributed indocument G/PSI/IE/1, and
theinformation andapplication forms hadbeentranslated anddistributed globally totheaffiliates and
contacts ofICCandIFIA. Following thisconfirmation, WTO Members were notified thatasof1
May1996,theIEwouldbepreparedtoreceiveapplicationsrequestingindependentreviews(G/PSI/IE/2).
3. During thereporting period, theIEhasreceived norequests foranindependent review.SECTION VI
COMMITTEE ONCUSTOMS VALUATIONWORLD TRADE G/L/121
29October 1996
ORGANIZATION(96-4527)
Committee onCustoms Valuation
REPORT OFTHE COMMITTEE ONCUSTOMS VALUATION
TOTHE COUNCIL FOR TRADE INGOODS
A. Background
1. TheAgreement onImplementation ofArticle VIIoftheGeneral Agreement onTariffs and
Trade 1994 (theAgreement) entered intoforce on1January 1995. Thisreport covers theyears 1995
and1996. Itaddresses thework undertaken bytheCommittee onCustoms Valuation (theCommittee)
inrespect oftheobjectives oftheAgreement, which are:toprovide greater uniformity andcertainty
intheimplementation oftheprovisions ofArticle VIIoftheGATT 1994; toestablish afair,uniform
andneutral system forthevaluation ofgoods forcustoms purposes thatprecludes theuseofarbitrary
orfictitious customs values; toensure thatthebasisforvaluation ofgoods forcustoms purposes should,
tothegreatest extent possible, bethetransaction value ofthegoods being valued; andtosecure
additional benefits fortheinternational trade ofdeveloping countries.
2. During theperiod under consideration, theCommittee hasheldfourformal meetings, on
12May1995 (G/VAL/M/1), 24October 1995 (G/VAL/M/2), 25April 1996 (G/VAL/M/3) and
25October 1996(G/VAL/M/4, tobeissued). TheCommittee elected Mr.P.Palecka(Czech Republic)
asChairman andMr.M.Baumbach (Brazil) asVice-Chairman for1995, andre-elected themfor1996.
3. Participation intheCommittee isopentoallWTO Members. Inaddition, Governments granted
observer status bytheWTO General Council, aswellasrepresentatives oftheWorld Customs
Organization (WCO), IMFandUNCTAD attended Committee meetings asobservers.
4. Atitsmeeting of24October 1995, theCommittee adopted itsrulesofprocedure, which were
approved bytheCouncil forTrade inGoods.
B. Implementation oftheAgreement
5. TheCommittee examined thenational legislations ofeightMembers which hadbeensubmitted
during theperiod under consideration. TheCommittee concluded itsexamination ofthelegislations
ofCanada, theCzech Republic, theEuropean Communities, Macau, Slovenia, andSouth Africa. With
respect totheMexican andIndian legislations, theCommittee tooknoteofthevarious points raised
andtheexplanations furnished, andagreed tocontinue theexamination.
6. TheCommittee adopted twodecisions which werereferred bytheMinisters atMarrakesh to
theCommittee foradoption: (i)decision regarding cases where customs administrations havereasons
todoubt thetruthoraccuracy ofthedeclared value; and(ii)decision ontextsrelating tominimum
valuesandimportsbysoleagents,soledistributorsandsoleconcessionaires(G/VAL/1).TheCommittee
alsoadopted decisions relating totheinterpretation andadministration oftheAgreement (G/VAL/5).
These decisions wereoriginally adopted bytheTokyo Round Committee onCustoms Valuation. The
Committee further agreed onprocedures forthenotification ofnational legislation andresponse tothe
checklist ofissues byMembers whowereTokyo Round signatories andwhose legislation hadalready
beenexamined.G/L/121
Page2
7. InconformitywithArticle20.1oftheAgreement,51developingcountryMembershaveinvoked
delayed application oftheprovisions oftheAgreement. Understanding hasbeen reached inthe
Committee thatthetextsofthenational legislation ofthesedeveloping country Members willbesupplied
totheCommitteebeforethedevelopingcountryMembersbeginapplyingtheprovisionsoftheAgreement
(G/VAL/5, para. B2(ii)).
8. Todate14Members havesubmitted communications indicating thattheirlegislation notified
undertheTokyoRoundCustomsValuationAgreementremainedvalidundertheWTOCustomsValuation
Agreement; inaddition 8Members havenotified either theircomplete national legislation oncustoms
valuation oramendments thereto; 37Members havenotyetmade anynotification. (SeeAnnex).
TheChairman oftheCommittee hasrepeatedly expressed concern thatanumber ofMembers have
notyetcomplied withthenotification requirements, andurged those Members whohavenotyetdone
sotosubmit theirnotifications without further delay.
9. OneMember hasnotified thedateofitsapplication ofparagraph 2oftheDecision ofthe
Committee onCustoms Valuation onValuation ofCarrier-Media Bearing Software forDataProcessing
Equipment (SeeAnnex).
10. TheCommittee tooknotethattheGeneral Council had,atitsmeeting of31January 1995,
adopted adecision on"Continued Application under theWTO Customs Valuation Agreement of
Invocations ofProvisions forDeveloping Countries forDelayed Application andReservations under
theTokyo Round Customs Valuation Agreement" (WT/L/38); andthattheGeneral Council had,at
itsmeeting of31January 1995, adopted adecision onthe"Avoidance ofProcedural andInstitutional
Duplication" (WT/L/29). TheCommittee alsotooknoteofthereports onthework oftheFirst
(2-6October 1995), Second (4-8March 1996) andThird (30September-4 October 1996) Sessions of
theTechnical Committee oftheWCO.
C. Recommendations
11. TheCommittee recommends that,inaccordance withtheprovisions ofArticle 20.3ofthe
Customs Valuation Agreement, emphasis beplaced onaddressing thetechnical assistance needs of
developing countries incollaboration withthetechnical assistance activities oftheWorld Customs
Organization inorder toensure thesmooth andtimely transition ofallMembers towards effective and
fullimplementation oftheAgreement.G/L/121
Page3
ANNEX
(i) Members whohaveindicated thattheirlegislation remains valid under theWTO Customs
ValuationAgreementinaccordancewiththedecisiontakenbytheCommittee(G/VAL/M/1)(14)
Australia (G/VAL/N/1/AUS/1) Norway (G/VAL/N/1/NOR/1)
Brazil (G/VAL/N/1/BRZ/1) Romania (G/VAL/N/1/ROM/1)
Hong Kong (G/VAL/N/1/HKG/1) SlovakRepublic(G/VAL/N/1/SVK/1)
Hungary (G/VAL/N/1/HUN/1) Switzerland (G/VAL/N/1/CHE/1)
Japan (G/VAL/N/1/JPN/1) Turkey (G/VAL/N/1/TUR/1)
Korea (G/VAL/N/1/KOR/1) United States (G/VAL/N/1/USA/1)
NewZealand (G/VAL/N/1/NZL/1) Zimbabwe (G/VAL/N/1/ZWE/1)
(ii) Members whohavesubmitted theirlegislations oramendments inaccordance withArticles 22.1
and22.2oftheAgreement (8)
Canada (G/VAL/N/1/CAN/1) Macau (G/VAL/N/1/MAC/1)
Czech Republic (G/VAL/N/1/CZE/1) Mexico(VAL/1/Add.25/Suppl.1/Rev.1,
European Communities (G/VAL/N/1/EEC/1/Rev.1) Suppl.2, andSuppl.3)
India (G/VAL/N/1/IND/ 2) Slovenia (G/VAL/N/1/SVN/1)
South Africa (G/VAL/N/1/ZAF)
(iii) Members whohavedelayed application oftheprovisions oftheAgreement inaccordance with
Article 20.1oftheAgreement (51)
Bangladesh (WT/Let/1/Rev.1) Kuwait (WT/Let/72)
Bolivia (WT/Let/48) Madagascar (WT/Let/85)
Brunei Darussalam (WT/Let/36) Malaysia (WT/Let/1/Rev.1)
Burkina Faso(WT/Let/19) Mali(WT/Let/78)
Burundi (WT/Let/24) Malta (WT/Let/1/Rev.1)
Cameroon (WT/Let/41) Mauritania (WT/Let/82)
Central African Republic (WT/Let/19) Mauritius (WT/Let/1/Rev.2)
Chile (WT/Let/1/Rev.1) Morocco (Decision inWT/L/38)
Colombia (WT/Let/1/Rev.2) Myanmar (WT/Let/1/Rev.1)
Costa Rica(WT/Let/1/Rev.1) Nicaragua (WT/Let/29)
Côted'Ivoire (WT/Let/1/Rev.1) Nigeria (WT/Let/106)
Cuba (WT/Let/19) Pakistan (WT/Let/1/Rev.1)
Djibouti (WT/Let/108) Paraguay (WT/Let/1/Rev.1)
Dominican Republic (WT/Let/1/Rev.1) Peru(Decision inWT/L/38)
Ecuador (WT/Let/72) Philippines (WT/Let/1/Rev.1)
Egypt (WT/Let/19) Senegal (WT/Let/1/Rev.1)
ElSalvador (WT/Let/1/Rev.2) Singapore (WT/Let/1/Rev.1)
Gabon (WT/Let/1/Rev.1) SriLanka (WT/Let/1/Rev.1)
Ghana (WT/Let/1/Rev.1) Thailand (WT/Let/1/Rev.1)
Guatemala (WT/Let/24) Togo (WT/Let/19)
Honduras (WT/Let/1/Rev.1) Tunisia (WT/Let/1/Rev.2)
Indonesia (WT/Let/1/Rev.1) Uganda (WT/Let/108)
Israel (WT/Let/1/Rev.2) United Arab Emirates (WT/Let/72)
Jamaica (WT/Let/1/Rev.2) Uruguay (WT/Let/1/Rev.1)
Kenya (WT/Let/1/Rev.1) Venezuela (WT/Let/1/Rev.1)
Zambia (WT/Let/28)G/L/121
Page4
(iv) Members whohavemade nonotifications (36)
Antigua &Barbuda Lesotho
Argentina Malawi
Bahrain Maldives
Barbados Mozambique
Belize Namibia
Benin Papua NewGuinea
Botswana Poland
Chad Qatar
Cyprus Rwanda
Dominica Saint Kitts&Nevis
Fiji Saint Lucia
Gambia Saint Vincent &Grenadines
Grenada Sierra Leone
Guinea Bissau Solomon Islands
Guinea, Rep.of Suriname
Guyana Swaziland
Haiti Tanzania
Iceland Trinidad &Tobago
(v) Members whohavenotified thattheyapply paragraph 2ofthedecision oftheCommittee on
Customs Valuation onValuation ofCarrier Media Bearing Software forData Processing
Equipment
Cyprus (G/VAL/N/1/CYP/1)SECTION VII
COMMITTEE ONTECHNICAL BARRIERS TOTRADEWORLD TRADE G/L/122
28October 1996
ORGANIZATION(96-4491)
REPORT OFTHE COMMITTEE ONTECHNICAL BARRIERS TOTRADE
ThisReport wasadopted bytheCommittee onTechnical Barriers toTrade on22October 1996,
fortheconsideration bytheSingapore Ministerial Conference.
***
I. INTRODUCTION
1. TheCommittee onTechnical Barriers toTrade wasestablished on1January 1995 under
Article 13.1oftheAgreement onTechnical Barriers toTrade (TBT). Membership ofthe
TBTCommittee isopentoallWTO Members. Observer governments andobservers from
international intergovernmental organizations were invited toparticipate intheTBTCommittee 's
formal meetings inaccordance withtherelevant Decisions oftheGeneral Council.1
2. TheCommittee helditsfirst, second, third, fourth, fifth, sixth andseventh meetings on
21April 1995 (G/TBT/M/1), 14July1995 (G/TBT/M/2), 20October 1995 (G/TBT/M/3),
1March 1996 (G/TBT/M/4), 28June1996 (G/TBT/M/5), 16October 1996 (G/TBT/M/6) and
22October 1996 (G/TBT/M/7) respectively. Atitsfirstmeeting, theCommittee elected
Ambassador C.L.Guarda (Chile) asChairperson. On6-7November 1995, theCommittee helda
special jointmeeting onProcedures forInformation Exchange withtheSPSCommittee to
facilitate theimplementation ofthese procedures byMembers. Noformal decisions were taken at
themeeting, butproposals emanating from thediscussions were brought totheattention ofthe
Committee forconsideration (G/TBT/W/16). On27February 1996, theCommittee heldajoint
informal meeting withtheCommittee onTrade andEnvironment topursue discussions on
eco-labelling.
II. IMPLEMENTATION OFTHE MARRAKESH MINISTERIAL DECISIONS
3. On15April 1994, Ministers inMarrakesh adopted twoDecisions relating tothe
TBTAgreement. They are:(i)Decision onProposed Understanding onWTO-ISO Standards
Information System; and(ii)Decision onReview oftheISO/IEC Information Centre Publication.
Subsequent tothese Decisions, anagreement wasreached between theSecretary-General ofthe
ISOCentral Secretariat andtheDirector-General oftheWTO toestablish aWTO Standards
Information Service operated bytheISOtoprovide information onstandardizing bodies under
Paragraphs CandJoftheCode ofGood Practice forthePreparation, Adoption andApplication
ofStandards contained inAnnex 3oftheWTO TBTAgreement. TheMemorandum of
Understanding agreed upon wascirculated indocument G/L/1.
1Decisions oftheGeneral Council: Participation inMeetings ofWTO Bodies byCertain Signatories oftheFinal Acteligible tobecome
Original Members oftheWTO (WT/L/27); Guidelines forObserver Status forGovernments intheWTO (WT/L/161 -Annex 2);and
Observer Status forInternational Intergovernmental Organizations intheWTO (WT/L/161 -Annex 3).Representatives oftheIMF, UNCTAD,
ITC(UNCTAD/GATT), ISO,IEC,FAO, WHO, FAO/WHO Codex Alimentarius Commission, International Office ofEpizootics, OECD
andUN/ECE areinvited toattend meetings oftheTBTCommittee inanobserver capacity.G/L/122
Page2
4. Atitsfirstmeeting, theCommittee tooknoteofthestatements made regarding the
procedures fornotifications under theCode ofGood Practice (G/TBT/W/4/Rev.1) andagreed that
theCommittee Chairperson would inform theChairman oftheBudget Committee ofthefinancial
resources needed bytheISO/IEC Information Centre fortheapplication oftheWTO Standards
Information Service operated byISO.
5. Thefirstannual WTO TBTStandard Code Directory wasprepared bytheISO/IEC
Information Centre atthebeginning of1996, andcontains information received pursuant to
paragraphs CandJoftheCode ofGood Practice, including information onthework programmes
ofstandardizing bodies thathaveaccepted theCode. Attheendof1995, 28standardizing bodies
from 26Members hadaccepted theCode ofGood Practice. Atitsfourth meeting on
1March 1996, theCommittee carried outitsfirstannual review oftheCode ofGood Practice
under theMinisterial Decision onreview oftheISO/IEC Information Centre Publication.
III. STATUS OFIMPLEMENTATION OFTHE AGREEMENT
A. Statements received under Article 15.2from Members onMeasures taken toImplement
andAdminister theAgreement (G/TBT/2 andAdd.1-26)
6. Thisisaone-time notification byeachMember ofthelegislative, regulatory and
administrative actions ithastaken toensure thattheprovisions oftheAgreement areapplied.
Total: 42
ofwhich:
Tokyo Round TBTSignatories (46): 37
NewWTO Members oftheAgreement (79): 5
TheChairperson sentreminders atthebeginning ofMay1996 todelegations whose
statements hadnotyetbeenreceived.
B. Standardizing Bodies accepting theCode ofGood Practice forthePreparation, Adoption
andApplication ofStandards (G/TBT/CS/N/1-60)
7. Itisanobligation under Article 4thatcentral government standardizing bodies accept and
comply withtheCode ofGood Practice. Members shallalsotakesuchreasonable measures as
maybeavailable tothem toensure thatlocalgovernment, non-governmental andregional
standardizing bodies accept andcomply withtheCode. There areestimated tobesomewhat in
excess of600standardizing bodies worldwide.
Total: 60
ofwhich:
Central Government Standardizing Bodies: 23
Others: 37G/L/122
Page3
C. Notifications made byMembers under Articles 2.9.2, 2.10.1, 3.2,5.6.2, 5.7.1 and7.2of
theAgreement since 1January 1995 (G/TBT/Notif.95.1-365 andG/TBT/Notif.96.1-390)
8. These areperiodic notifications ofchanges intechnical regulations andconformity
assessment procedures bycentral governments andlocalgovernments. Alistindicating the
number ofnotifications made byMembers andbyArticles iscontained inAnnex 1.
Total: 755
ofwhich:
Tokyo Round TBTSignatories (46): 31
NewWTO Members oftheAgreement (79): 2
Local Governmental technical regulations andconformity assessment procedures: 3
Non-notified measures raised inTBTCommittee meetings: 1
D. Establishment ofEnquiry Points byMembers under Article 10(G/TBT/ENQ/7)
9. Members arerequired toestablish national Enquiry Points toanswer allreasonable
enquiries ontheirapplication oftrade-related technical regulations, standards andconformity
assessment procedures.
Total: 73
ofwhich:
Tokyo Round TBTSignatories (46): 45
NewWTO Members oftheAgreement (79): 28
E. Notifications made byMembers under Article 10.7oftheAgreement
10. Members areobliged tonotify whenever theyhavereached agreements withanyother
country orcountries onissues related totechnical regulations, standards orconformity assessment
procedures which mayhaveasignificant effect ontrade.
Total: none
F. Overall assessment
11. AttheCommittee 'sfifthmeeting, theChairperson expressed theviewthatimplementation
oftheTBTAgreement wasproceeding slower thanisdesirable inrelation tothesubmission of
statements under Article 15.2andthenumber ofstandardizing bodies thathaveaccepted theCode
ofGood Practice. Totheextent thatthiswasduetorealtechnical difficulties oralackof
awareness oftheobligations under theAgreement, theSecretariat wasencouraged toredouble its
technical assistance work inthisarea. TheSecretariat hasorganized together withtheISOand
withtheITCthree regional seminars in1996 inSouth Africa, Latin America andCentral
America, aiming atproviding technical assistance tonewMembers, inparticular developing
countries, tobetter understand theAgreement sothatitcanbefullyimplemented.G/L/122
Page4
IV. ACTIVITIES OFTHE COMMITTEE SINCE 1JANUARY 1995
A. Decisions andRecommendations adopted bytheCommittee (G/TBT/1/Rev.4)
12. Atitsfirstmeeting, theCommittee adopted itsrules ofprocedure. These were
subsequently approved bytheCouncil forTrade inGoods. Atitssecond meeting, theCommittee
adopted decisions andrecommendations regarding: (i)Statements onimplementation and
administration oftheAgreement under Article 15.2oftheAgreement; (ii)Notification
procedures; and(iii)Procedures forinformation exchange. Atitsthirdmeeting, theCommittee
adopted decisions andrecommendations regarding: (i)Technical assistance; and
(ii)Regional standard-related activities. Atitsfourth meeting, theCommittee adopted certain
changes totheformat fornotifications under Articles 2,3,5and7andagreed toderestrict
TBTnotifications andthelistofenquiry points. Atitsfifthmeeting, theCommittee adopted the
format fornotifications under Article 10.7oftheAgreement andagreed toamend itsdecision
regarding technical assistance tomake special mention ofthetechnical assistance needs oftheleast
developed countries.
B. Main Issues discussed atCommittee Meetings
13. Ateachofitsmeetings, theCommittee heard statements ontheimplementation and
administration oftheAgreement. Anumber ofMembers informed theCommittee ofmeasures
taken toensure theimplementation andadministration oftheAgreement. Several measures were
brought totheCommittee 'sattention byMembers whoraised concerns about thepotential adverse
trade effect orinconsistency withtheAgreement ofthose measures. Anumber ofrequests were
made foradditional information from Members ontheirproposed oradopted technical regulations,
standards andconformity assessment procedures. Inseveral instances theMembers concerned
chose tocommunicate theirreplies tothese requests through theCommittee. (G/TBT/M/1, 5and
6)
14. TheCommittee helddiscussions ontheissue oftechnical assistance (G/TBT/W/26 and
G/TBT/M/1, 3and5).Atitsthirdandfifthmeetings, theCommittee adopted decisions on
technical assistance (G/TBT/1/Rev.4).
15. Theissue ofeco-labelling wastaken upatvarious meetings oftheCommittee
(G/TBT/M/2-6) andalsoataspecial jointinformal meeting withtheCommittee onTrade and
Environment. Discussions focused onenvironmental labelling (eco-labelling) programmes and
measures andtheirrelationship totheprovisions oftheTBTAgreement. While there isno
consensus onthecoverage bytheTBTAgreement ofeco-labelling schemes andthecriteria, based
onnon-product related processes andproduction methods, itisgenerally feltimportant toreview
thoroughly theprocess ofeco-labelling, from itsdesign stages toitsapplication inpractice, against
principles anddisciplines oftheAgreement relating totransparency, harmonization,
non-discrimination, theavoidance ofunnecessary obstacles totrade, andspecial anddifferential
treatment ofdeveloping country Members. Inresponse toarequest atthemeeting ofthe
Committee onTrade andEnvironment on21June1995, theSecretariat prepared anoteon
Negotiating History oftheCoverage oftheAgreement onTechnical Barriers toTrade withregard
toLabelling Requirements, Voluntary Standards, andProcesses andProduction Methods Unrelated
toProduct Characteristics (G/TBT/W/11). Discussions ontheissue havebeenenriched by
presentations ofseveral existing eco-labelling schemes atthejointinformal session ofthe
TBTCommittee andtheCommittee onTrade andEnvironment (G/TBT/W/23). Papers anda
draftdecision were presented bythedelegation ofCanada (G/TBT/W/9, 21and30)topromote
discussion oftheissue. Aproposal wasmade bythedelegation oftheUnited States regarding
further work ontransparency ofeco-labelling (G/TBT/W/29).G/L/122
Page5
16. Several Members expressed interest inandrequested further information ontheISO9000
andISO14000 standards series onquality management andenvironmental management
(G/TBT/M/2-4). Apresentation wasmade andacommunication wasreceived from theISOin
thisregard (G/TBT/W/20).
C. Other Activities andReviews conducted bytheCommittee
17. Atitsfourth meeting, theCommittee carried outitsfirstannual review ofthe
implementation andoperation oftheAgreement under Article 15.3based onbackground
documentation contained inG/TBT/3 andCorr.1. Theneedforimproving implementation was
emphasized.
18. Atitssixth meeting, theCommittee conducted aperiodic examination ofthespecial and
differential treatment granted todeveloping country Members under Article 12.10 ofthe
Agreement (G/TBT/M/6).
19. TheCommittee helddiscussions ondecisions andrecommendations onconformity
assessment procedures andheard representations from theISOonlatest developments inISO/IEC
work relating torules andguides inconformity assessment activities; from theInternational
Laboratory Accreditation Conference (ILAC) onaccreditation activities intheconformity
assessment area; andfrom theUnited Nations -Economic Commission forEurope onrules and
work oftheUN/ECE.
V. PROGRESS CONCERNING WORK UNDER THE BUILT-IN AGENDA
20. Under Article 15.4oftheAgreement, theCommittee willcarry outitsfirsttriennial
review oftheoperation andimplementation oftheAgreement notlaterthantheendof1997,
including theprovisions relating totransparency, withaviewtorecommending anadjustment of
therights andobligations oftheAgreement where necessary toensure mutual economic advantage
andbalance ofrights andobligations. Having regard totheexperience gained inthe
implementation oftheAgreement, theCommittee shall, where appropriate, submit proposals for
amendments tothetextoftheAgreement totheCommittee forTrade inGoods.
21. Itisfeltimportant toensure thatathorough examination ofallaspects ofthe
TBTAgreement relevant totechnical regulations, standards andconformity assessment procedures
canbecarried outatthetriennial review inorder tostrengthen implementation oftheexisting
disciplines andfurther theAgreement withtheaimoffacilitating trade through more efficient and
effective regulation. Issues suggested byMembers forthereview include: theCode ofGood
Practice forthePreparation, Adoption andApplication ofStandards; international standards;
notification procedures; mutual recognition agreements andequivalence; measures notmore trade
restrictive thannecessary; andconformity assessment procedures.G/L/122
Page6Annex 1
Notifications made in1995 and1996 byMembers andbyrelevant Articles oftheAgreement
Members Number of
notifications
made in
1995Number ofnotifications made under therelevant
Articles in1995Number of
notifications
made in
1996Number ofnotifications made under therelevant
Articles in1996
2.9 2.10 3.2 5.6 5.7 7.2 not
specify.2.9 2.10 3.2 5.6 5.7 7.2 not
specify.
Argentina - 1 1
Australia 20 20 14 14
Belgium 17 17 13 13
Brazil - 7 2 3 2
Canada229 27 2 18 18 1
Czech
Republic 12 12 13 13
Denmark228 20 10 7 6 10 5 5
ElSalvador 1 1 -
European2
Community 32 32 36 34 8 1
Finland 4 4 3 3
France 1 1 1 1
Germany 2 2 1 1
Hong Kong 6 5 1 4 3 1
India 11 10 1 14 14
Korea,
Rep. of213 8 1 4 8 8 2
2Thenumber ofnotifications made under therelevant Articles doesnotcorrespond tothetotalnumber ofnotifications made during thecurrent period since certain notifications were made under more than
oneArticle.G/L/122
Page7Members Number of
notifications
made in
1995Number ofnotifications made under therelevant
Articles in1995Number of
notifications
made in
1996Number ofnotifications made under therelevant
Articles in1996
2.9 2.10 3.2 5.6 5.7 7.2 not
specify.2.9 2.10 3.2 5.6 5.7 7.2 not
specify.
Jamaica - 1 1
Japan248 41 1 6 34 31 1 3
Malaysia 1 1 19 5 14
Mexico 29 28 1 20 20
Netherlands 33 33 29 29
New
Zealand 1 1 1 1
Norway 6 6 25 25
Philippines2- 11 11 1 1
Singapore 8 8 -
Slovak
Rep. 14 9 5 4 3 1
Spain 4 4 6 5 1
Sweden25 4 1 26 26 1
Switzerland 4 4 9 9
Thailand 7 7 9 3 4 2
United
States 29 29 34 34
TOTAL 365 332 14 2 19 6 - 7 371 331 10 1 16 1 - 26G/L/122
Page8
Annex 2
Notifications under Article 15.2andoftheEstablishment ofEnquiry Points under Article 10
byMembers; andoftheAcceptance oftheCode ofGood Practice forthePreparation,
Adoption andApplication ofstandards bystandardizing bodies
MEMBER ARTICLE 15.2 ACCEPTANCE OFTHE
CODE OFGOOD
PRACTICEENQUIRY POINTS
Antigua andBarbuda
Argentina x x
Australia x 1 x
Austria x 2 x
Bahrain x x
Bangladesh
Barbados
Belgium x x
Belize
Benin x
Bolivia x
Botswana
Brazil x 1 x
Brunei Darussalam
Burkina Faso
Burundi
Cameroon
Canada x x
Central African Republic
Chad
Chile x 1 x
Colombia x 1 x
Costa Rica x
Côte d'Ivoire
Cuba x 1 x
Cyprus x
Czech Republic x 1 x
Denmark x 1 x
Djibouti
DominicaG/L/122
Page9
MEMBER ARTICLE 15.2 ACCEPTANCE OFTHE
CODE OFGOOD
PRACTICEENQUIRY POINTS
Dominican Republic x
Ecuador 1
Egypt 1 x
ElSalvador x
European Community x 3 x
Fiji x
Finland x 1 x
France x 1 x
Gabon
Gambia
Germany x 1 x
Ghana x
Greece x x
Grenada
Guatemala
Guinea
Guinea Bissau
Guyana
Haiti
Honduras
Hong Kong x x
Hungary 1 x
Iceland x
India 1 x
Indonesia x 1 x
Ireland x x
Israel x
Italy x 2 x
Jamaica 1 x
Japan x 4 x
Kenya 1 x
Korea x
Kuwait
LesothoG/L/122
Page10
MEMBER ARTICLE 15.2 ACCEPTANCE OFTHE
CODE OFGOOD
PRACTICEENQUIRY POINTS
Liechtenstein
Luxembourg x x
Macau x
Madagascar
Malawi x
Malaysia x 1 x
Maldives
Mali
Malta
Mauritania
Mauritius x
Mexico x x
Morocco x
Mozambique
Myanmar x
Namibia
Netherlands x 1 x
New Zealand x 1 x
Nicaragua
Nigeria x x
Norway x 1 x
Pakistan x
Papua New Guinea
Paraguay
Peru 1 x
Philippines x 1 x
Poland 1
Portugal x x
Qatar
Romania x 1 x
Rwanda
Saint Kitts andNevis
Saint LuciaG/L/122
Page11
MEMBER ARTICLE 15.2 ACCEPTANCE OFTHE
CODE OFGOOD
PRACTICEENQUIRY POINTS
Saint Vincent &
theGrenadines
Senegal 1
Sierra Leone
Singapore x 1 x
Slovak Republic x 1 x
Slovenia x 1 x
Solomon Islands
South Africa 1 x
Spain x 1 x
SriLanka x
Suriname
Swaziland
Sweden x 9 x
Switzerland x 3 x
Tanzania x
Thailand 1 x
Togo
Trinidad andTobago 1 x
Tunisia x 1 x
Turkey 1 x
Uganda x x
United Arab Emirates
United Kindgom x x
United States x x
Uruguay
Venezuela 1
Zambia x
Zimbabwe 1 x
Total 42 60 73SECTION VIII
COMMITTEE ONANTI-DUMPING PRACTICESWORLD TRADE G/L/123
29October 1996
ORGANIZATION(96-4499)
Committee onAnti-Dumping Practices
REPORT (1996) OFTHE COMMITTEE ON
ANTI-DUMPING PRACTICES
I. Organization ofthework oftheCommittee
1. TheAgreement onImplementation ofArticle VIoftheGeneral Agreement ofTariffs andTrade
(hereinafter "theAgreement") entered intoforce on1January 1995. AllMembers oftheWTO are
ipsofacto members oftheCommittee onAnti-Dumping Practices established under theAgreement.
2. ObservergovernmentsintheGeneralCounciloftheWTOhaveObserverstatusintheCommittee.
Inaddition, theCommittee invited, onanadhocbasis, representatives oftheWorld Bank, OECD,
IMFandUNCTAD toattend meetings oftheCommittee inanobserver capacity. Atitsregular meeting
on21October 1996, theCommittee tooknoteofthedecision oftheGeneral Council regarding the
status ofinternational organizations asObservers totheWTO andauthorized theChairman toconsult
informally onwhich international intergovernmental organizations would begranted observer status
intheCommittee. Pending theoutcome ofsuchconsultations, theCommittee agreed tocontinue to
invite those organizations which hadbeenfollowing theCommittee 'smeetings onanad-hoc basis.
3. Thefocus ofthisreport isontheperiod since theCommittee 'slastannual report ((G/L/34),
thatis,31October 1995-21October 1996. However, where relevant, information fromtheprevious
period isreported. During theperiod under review, theCommittee heldfourmeetings. Regular meetings
oftheCommittee wereheldon29April 1996and21October 1996(G/ADP/M/7 andM/9respectively).
Special meetings oftheCommittee toreview notifications oflegislation were heldjointly withthe
Committee onSubsidies andCountervailing Measures on4-8December 1995 and24-26 April 1996
(G/ADP/M/6 andM/8respectively).
4. Mr.Mohan Kumar (India) waselected Chairman oftheCommittee atitsfirstmeeting in
February1995,andMr.JohnMcNab(Canada)waselectedVice-Chairman.TheCommitteeatitsmeeting
of29April 1996elected Mr.OleLundby (Norway) asitsChairman, andMr.KajitSukhum (Thailand)
asitsVice-Chairman. Pursuant totheCommittee 'srulesofprocedure, theytookoffice attheendof
thatmeeting.
II. Notification andexamination ofanti-dumping lawsand/or regulations ofMembers
5. Intheareaofanti-dumping, WTO rulesareimplemented through Members 'national legislation.
Pursuant toArticle 18.5oftheAgreement, asamplified byadecision oftheCommittee, Members with
available legislation and/or regulations regarding anti-dumping dutyinvestigations orreviews covered
bytheAgreement should notify thefullandintegrated textoftherelevant legislation and/or regulations
totheCommittee. Ifsuchlegislation and/or regulations donotexistorarenotavailable, theMember
should inform theCommittee ofthisfact,andinthecaseofnon-availability, explain thereasons therefor.
These notifications have been treated asunrestricted documents from theoutset. Inaddition, the
Committee decided, atitsspecial meeting of21February 1995thatObserver governments should provide
theCommittee withanyinformation theObserver government considers relevant tomatters within theG/L/123
Page2
purview oftheAgreement, including thetextofitslawsandregulations regarding anti-dumping duties,
andinformation regarding anyanti-dumping measures taken bytheObserver government.
6. 84Members hadnotified theCommittee regarding theirdomestic anti-dumping legislation.1
These notifications canbefound indocument series G/ADP/N/1/.... 40Members hadnot,asyet,made
anynotification under Article 18.5oftheAgreement. Annex Asetsoutthestatus ofnotifications of
legislation under Article 18.5oftheAgreement. Ofthe84Members submitting notifications, 17notified
thattheyhadnospecific legislation relating toanti-dumping, 31notified newlegislation, and36notified
pre-WTO legislation stillinforce. Ofthe53Members notifying noanti-dumping legislation orpre-WTO
legislation stillinforce, 35indicated thatnewlegislation isbeing considered ordrafted. Inaddition,
26Members indicated thattheWTO Agreement hasforce oflawintheterritory oftheMember.
7. During theperiod under review, theCommittee continued thework ofreviewing notifications
ofanti-dumping lawsand/or regulations begun in1995. Inaddition tothelegislations andnotifications
without legislative textreviewed during theprevious period, theCommittee reviewed thenotifications
ofanti-dumping legislation ofthefollowing Members intwospecial meetings heldjointly withthe
Committee onSubsidies andCountervailing Measures: Barbados, Bolivia, Colombia, Costa Rica, Cuba,
Ecuador,Iceland,Israel,Jamaica,Japan,Malawi,Malaysia,Norway,Philippines,Romania,SaintLucia,
Slovenia, South Africa, Thailand, Trinidad &Tobago, Tunisia, Turkey, andZambia. TheCommittee
alsoreviewed thenotifications without legislative textofthefollowing Members: Botswana, Cyprus,
Dominican Republic, ElSalvador, Guatemala, Republic ofGuinea, Honduras, Hong Kong, Indonesia,
Macau,Maldives,Malta,Morocco,Nicaragua,Pakistan,Paraguay,Poland,SriLanka,Suriname,Turkey,
Uganda,andZimbabwe.ThesubstanceofthereviewisreflectedinthewrittenquestionsputtoMembers,
andtheirwritten answers. References tothese questions andanswers canbefound intheminutes of
thejointspecial meetings toreview legislation, G/ADP/M/6 andSuppl.1 andM/8. References tothe
questions andanswers forthelegislative review meetings heldduring 1995canbefound intheminutes
oftherelevant meetings, G/ADP/M/3 andSuppl.1, andG/ADP/M/4 andSuppl.1.
8. AsoftheendofApril 1996, theCommittee hadconducted aninitial review ofallnotifications
received todatethathadbeencirculated toMembers intimetoallow preparation forthereview sessions.
Four special meetings toreview legislation havebeenheldjointly withtheCommittee onSubsidies
andCountervailing Measures sinceJuly1995. Atitsspecial meeting inDecember 1995, theCommittee
decided thatfortheimmediate future, jointspecial meetings toreview legislation werenolonger needed,
andthereview oflegislation, bothnewly notified andpreviously reviewed, would takeplace inthe
context ofregular Committee meetings. TheCommittee adopted procedures forthecontinued review
oflegislation(G/ADP/W/284),basedprimarilyonaprocessofwrittenquestionsandanswers,tofacilitate
productive discussions during thecontinued review oflegislations. Review ofnewandamended
legislations would follow thesameprocedures usedduring thejointspecial meetings toreview legislation.
References tothequestions andanswers submitted regarding continued review ofnotifications of
legislation canbefound intheminutes oftheregular meeting oftheCommittee, G/ADP/M/9.
9. Asoftheendoftheperiod under review, asignificant number ofwritten questions putto
Members during thecourse ofthelegislative review meetings remained unanswered. Nonetheless, the
Chairmanhadexpressedsatisfactionwiththeprogressthathadbeenmadeduringthemeetings.Questions
puttoMembers ranged fromthose regarding general, policy matters toveryspecific andhighly technical
questions ofnational administration ofanti-dumping measures. Among theconcerns raised byMembers
wereperceived inconsistencies between theAgreement andbothnewly-enacted legislation andlegislation
enacted priortotheentryintoforceoftheAgreement. Inaddition, Members expressed concern regarding
thepotential foractions inconsistent withtheAgreement ifsuchactions arebased onlegislation enacted
1TheECiscounted as16Members.G/L/123
Page3
prior totheentry intoforce oftheAgreement. Another concern wasthecomplexity oftheprocedural
andsubstantive requirements oftheAgreement, andtheneedforsignificant training andeducation,
particularly fornewusers ofanti-dumping measures anddeveloping countries, toensure thatactions
were taken consistently withtheAgreement.
III. Semi-annual reports onanti-dumping actions taken byMembers
10. Article 16.4oftheAgreement provides thatMembers shallsubmit, onasemi-annual basis,
reports onanti-dumping duty actions taken within thepreceding sixmonths. Pursuant tothe
recommendation oftheInformal Contact Group (PC/IPL/11, Annex 7),which wasadopted bythe
Committee atits21February meeting (G/ADP/M/1, paras. 21-22), thefirstsemi-annual report submitted
byeachWTO Member would cover theperiod July-December orJanuary-June, whichever wasmore
recent, preceding thedateofentry intoforce oftheWTO Agreement forthatMember. Inaddition,
Members taking noaction during agiven period arerequested tosonotify theCommittee.
11. Guidelines forinformation tobeprovided insemi-annual reports submitted pursuant to
Article16.4arecontainedindocumentG/ADP/1.Submissionofsemi-annualreportsbyMembersknown
tobeusers ofanti-dumping measures hasimproved sinceearly1995. Asignificant number ofMembers
havenever filedasemi-annual report, however. While many ifnotmostoftheseMembers arebelieved
nottobeusers ofanti-dumping measures, intheabsence ofsemi-annual reports, thesituation remains
uncertain. TheCommittee reviewed thenotifications ofaction fortheperiods 1July-31 December
1995 and1January-30 June1996 atitsregular meetings inApril andOctober. Inaddition tospecific
questions raised concerning theactions taken byMembers, concern wasexpressed overthelackof
notifications, andthefactthatnotifications often didnotfollow theformat setforthintheguidelines.
Thecomments ofMembers arereflected intheminutes oftheregular meetings, G/ADP/M/7 andM/9.
12. Semi-annual reports fortheperiod 1July-31 December 1995.33of107Members2subject
totheobligation tosubmit reports forthisperiod (31percent) hadnotified theCommittee thatthey
hadnottaken anyanti-dumping actions during thisperiod. Semi-annual reports ofactions taken during
thisperiod werereceived from 22Members (21percent). Nosemi-annual report wasreceived from
52Members (48percent). Thesemi-annual reports have been circulated indocument series
G/ADP/N/9/..., andthestatus ofsemi-annual reports received wascirculated indocument
G/ADP/N/9/Add.1/Rev.2, andissetoutinAnnex B.
13. Semi-annual reports fortheperiod 1January-30 June 1996.27of109Members2subject
totheobligation tosubmit reports forthisperiod (25percent) hadnotified theCommittee thatthey
hadnottaken anyanti-dumping actions during thisperiod. Semi-annual reports ofactions taken during
thisperiod werereceived from19Members (17percent). Nosemi-annual report wasreceived from
63Members (58percent). Thesemi-annual reports have been circulated indocument series
G/ADP/N/16/..., andthestatus ofsemi-annual reports received wascirculated indocument
G/ADP/N/16/Add.1, andissetoutinAnnex B.
14. ATable summarising anti-dumping actions taken byMembers during theperiod 1July1995-
30June1996 isreproduced inAnnex Ctothisreport.
IV. Reports onallpreliminary orfinalanti-dumping actions
2TheECiscounted as1Member.G/L/123
Page4
15. PursuanttoArticle16.4oftheAgreement,MembersaretoreportwithoutdelaytotheCommittee
allpreliminary andfinalanti-dumping actions taken. Guidelines fortheinformation tobecontained
inthesereports aresetforthinG/ADP/2. Reports ofpreliminary andfinalanti-dumping actions during
theperiod under consideration hadbeenreceived from Argentina, Australia, Canada, theEuropean
Communities, Guatemala, Korea, Malaysia, Mexico, NewZealand, Peru, South Africa, Turkey, the
United States, andVenezuela. (G/ADP/N/7, N/8,N/10, N/11, N/12, N/13, N/15, N/17, N/18, and
N/19). While suchreports areregularly submitted bysome users ofanti-dumping measures, anumber
ofMembers known tohavetaken preliminary andfinalactions, including some whohavefiledsemi-
annual reports regarding theiractions, havenotreported those actions without delay totheCommittee.
TheCommittee reviewed thenotifications ofpreliminary andfinalactions atitsregular meetings in
April andOctober. Inaddition tospecific questions raised concerning theactions taken byMembers,
concernwasexpressedoverthelackofnotificationsfromnumerousmembers.ThecommentsofMembers
arereflected intheminutes oftheregular meetings, G/ADP/M/7 andM/9.
V. Other matters discussed bytheCommittee
16. Rules ofProcedure :Atitsregular meeting inApril, theCommittee adopted Rules ofProcedure
(G/ADP/4), based ontheRules oftheGeneral Council andoftheCouncil forTrade inGoods, and
incorporating relevant changes tomake them applicable totheCommittee. TheCouncil forTrade in
Goods subsequently approved theCommittee 'sRules ofProcedure atitsmeeting of22May1996.
17. Notification ofCompetent Authorities :Atitsregular meeting inApril, theCommittee decided
torequest Members tonotify thename, address, telephone andfaxnumber, andelectronic mailaddress
where available, oftheirauthorities competent toinitiate andconduct anti-dumping investigations.
Thisnotification would bemade once, subject toupdating orcorrecting notifications should therelevant
information ofanyMember change. Thelistcontaining theinformation notified byMembers is
maintained bytheSecretariat andcirculated inaddenda todocument G/ADP/N/14. Thefollowing
Members hadnotified relevant information totheSecretariat: Argentina, Australia, Bolivia, Brazil,
Canada,Chile,EC,Guatemala,HongKong,Hungary,Iceland,Israel,Jamaica,Kenya,Korea,Mauritius,
Mexico, NewZealand, Norway, Peru, Romania, Singapore, Slovenia, Switzerland, Thailand, Turkey,
Uganda,UnitedStates,Venezuela,andZambia(G/ADP/N/14/Add.3).AttheCommittee'sregularmeeting
inOctober, itwasproposed thattheCommittee askMembers tonotify, separately fromtheirnotifications
oflegislationand/orregulations,theirdomesticproceduresfortheconductofanti-dumpinginvestigations.
18. AdHocGroup onImplementation :Atitsregular meeting inApril, theCommittee decided
toestablish anAdHocGroup onImplementation, toprepare recommendations totheCommittee on
issues where agreement seems possible. Inaddition, theAdHocGroup could consider other issues
regarding implementation onwhich Members believe discussions would behelpful, andreport tothe
Committee. Members were requested tosubmit proposals foritems theGroup could discuss tothe
Secretariat. TheSecretariat circulated thesuggestions received indocument G/ADP/W/399. Atan
informal meeting on1October 1996, Members considered those suggestions, andgenerally agreed on
agroup oftopics thatmight appropriately bereferred bytheCommittee totheAdHocGroup for
consideration atthistime. Inaddition, Members considered favourably aproposal thatthework of
theAdHocGroup proceed bydiscussing intheorder received, written papers andproposals submitted
byanyMember onanytopic referred totheGroup. Itwasalsoconsidered thattheAdHocGroup
could discuss more thanonetopic atagiven meeting, provided thatproposals hadbeen made by
Members. TheAdHocGroup could make recommendations totheCommittee onthetopics referred
toit.Atitsregular meeting inOctober, theCommittee decided onagroup oftopics thatitreferred
totheAdHocGroup fordiscussion andconsideration ofpossible recommendations totheCommittee.
19. Procedures forpreparation andadoption ofAnnual Report :Atitsregular meeting inApril,
theCommittee considered theprocedures forthepreparation andadoption ofitsannual report adoptedG/L/123
Page5
atitsfirstmeeting inFebruary 1995, inlightofsuggestions fromtheChairman oftheGeneral Council.
TheCommittee decided thattheSecretariat should prepare adraftreport inthesame format ashad
beenusedintheprevious year'sreport, incorporating fromthatreport those aspects ofimplementation
thatwould helpexplain theprogress thattheCommittee hadmade. TheSecretariat wasalsodirected
todraftashort section onanti-circumvention, reporting onwhattheCommittee haddoneandonthe
informal consultations during theyear. Thedraftreport would becirculated toMembers attheend
ofSeptember orinearlyOctober, atwhich timetheCommittee would havetodecide whether itshould
meetinformally inadvance oftheregular October meeting todiscuss anyadditional matters forinclusion
inthereport.
VI. Anti-Circumvention
20. Atitsmeeting on30October 1995, theCommittee hadauthorized theChairman toengage
ininformal consultations withaviewtoreporting backtotheCommittee atitsmeeting inDecember
onhowtheCommittee isgoing torespond totheMinisterial Decision, including terms ofreference
andprocedural issues. TheChairman heldsuchinformal consultations on21November 1995. A
substantial number ofMembers tookpart,andthediscussion focused onthematters regarding how
thediscussions should proceed.
21. Based ontheChairman 'sreport regarding theinformal consultations, presented totheCommittee
atitsspecial meeting inDecember 1995, theCommittee authorized himtocontinue toconsult informally
onthetasksetfortheCommittee bytheMinisterial Decision onAnti-Circumvention. TheChairman
noted thatMembers might, inthefirstinformal consultations, wishtodiscuss thecourse theinformal
consultations should takeandthemajor topics thatshould beconsidered. Among theexamples mentioned
ininformal consultations werethescope oftheissueofanti-circumvention andwhether circumvention
canbedealt withthrough existing mechanisms under theAgreement. TheChairman further stated
thattheinformal consultations would be,ofcourse, opentoanyinterested Member, andwithout prejudice
toanyMember 'srights andobligations under theAgreement, ortoanyMember 'sraising anti-
circumvention during meetings oftheCommittee, andundertook toinform theCommittee periodically
ondevelopments inthese informal consultations. TheChairman alsosuggested that,ifanyMember
hadspecific issues itbelieved should bediscussed during thefirstinformal consultations, theymight
submit theirsuggestions totheChairman, whowould undertake tocommunicate theseideastointerested
Members inadvance ofthefirstinformal consultations, since theymight helpfocus initial discussions.
22. Severaldelegationssubmittedsuggestionsconcerningtheframeworkfortheinformalconsultations,
andtopicstobediscussed.Furtherinformalconsultationswereheld7March1996.Again,thediscussion
focused principally onthequestion oftheframework forcontinued informal consultations, including
aproposal made bytheChairman, butnoagreement wasreached. Additional papers onaproposed
framework forcontinued discussions were presented during another round ofinformal consultations
on30April1996.SeveralMembersmadeproposals,asdidtheChairman,butnoconsensuswasachieved
ontheframework forcontinued discussions. TheChairman continued toconsult withdelegations in
anattempt tofindabasisforagreement onaframework forcontinued discussions, andinvited interested
Members tofurther informal consultations following theCommittee 'sregular meeting inOctober.
VII. Concluding observations
23. TheCommittee considered that,ingeneral, goodprogress hadbeenmade inthefirsttwoyears
inimplementing theAgreement. However, theCommittee considered thatmuch remained tobedone,
andthatadditional efforts fromMembers wererequired inorder toachieve fullimplementation ofthe
Agreement.G/L/123
Page6
24. TheCommittee observed thatoneofitsmajor tasksduring thefirsttwoyears oftheAgreement
hadbeentoreview thedomestic anti-dumping legislations notified byMembers. Thereview exercise
indicated thatimplementation inthisregard waslessthancomplete. NotallMembers thatarecurrent
orpotential users ofanti-dumping measures hadcompleted thedomestic legislative processes to
incorporate therelevant requirements oftheAgreement. Thus, further efforts wererequired inorder
toensure substantive implementation oftheAgreement. Inaddition, during themeetings toreview
notifications oflegislation, avariety ofissues regarding theWTO-consistency ofnotified legislations
wereraised. Themeetings provided Members withanopportunity toseekclarification ofissues arising
outofother Members 'legislation. Generally, Members wereabletoclarify theissues raised. Both
Members notifying legislation andthose submitting questions generally found theprocess helpful and
wished tocontinue thiswork intheCommittee. TheCommittee thought itextremely important that
Members carefully consider allquestions posed, comments made andreplies provided inthecontext
ofthese review sessions.
25. Inaddition,theCommitteeconsideredthatfurthereffortswererequiredinorderthatallMembers
submitted complete notifications ofanti-dumping actions taken andsemi-annual reports onatimely
basis. Fulltransparency wasessential toensure surveillance andmonitoring oftheimplementation of
theAgreement. While theachievement ofthisgoaldepended primarily ontheefforts ofindividual
Members, theCommittee could examine steps thatmight betaken toimprove compliance by,inter
alia,informing concerned governments ofcompliance problems, andassisting developing country
Members tomeettheirnotification obligations.
26. TheCommittee noted thattheprocedural andsubstantive requirements ofthenewAgreement
weredetailed,andthatitsimplementationrequiredsubstantialexpertiseandthecommitmentofsubstantial
resources byMembers. TheAdHocGroup onImplementation hadbeencreated todiscuss, andif
possible make recommendations totheCommittee on,issues concerning theimplementation ofthe
Agreement. TheCommittee considered thatmaximum efforts should bemade toassist Members, and
inparticular developing country Members, toachieve fullimplementation oftheAgreement.
27. TheCommittee observed thatdiscussions withrespect totheMinisterial Decision onAnti-
Circumvention would continue.G/L/123
Page7
ANNEX A
ANTI-DUMPING LEGISLATION NOTIFICATIONS
MEMBER NOTIFICATION PROVIDED
Antigua andBarbuda
Argentina G/ADP/N/1/ARG/1 +Suppl.1
Australia G/ADP/N/1/AUS/1 +Suppl.1
Bahrain
Bangladesh
Barbados G/ADP/N/1/BRB/1
Belize
Benin
Bolivia G/ADP/N/1/BOL/1 +Suppl.1
Botswana G/ADP/N/1/BWA/1
Brazil G/ADP/N/1/BRA/1 +Suppl.1
Brunei Darussalam
Burkina Faso
Burundi
Cameroon
Canada G/ADP/N/1/CAN/2
Central African Republic
Chad
Chile G/ADP/N/1/CHL/1
Colombia G/ADP/N/1/COL/1
Costa Rica G/ADP/N/1/CRI/1
Côted'Ivoire G/ADP/N/1/CIV/1
Cuba G/ADP/N/1/CUB/1 +Suppl.1
Cyprus G/ADP/N/1/CYP/2
Czech Republic G/ADP/N/1/CZE/1
Djibouti
Dominica
Dominican Republic G/ADP/N/1/DOM/2
European Communities3G/ADP/N/1/EEC/2 +Corr.1
3TheECiscounted as16Members.G/L/123
Page8
Ecuador G/ADP/N/1/ECU/1
Egypt G/ADP/N/1/EGY/1
ElSalvador G/ADP/N/1/SLV/1
Fiji
Gabon
Ghana
Grenada
Guatemala G/ADP/N/1/GTM/2
Guinea Bissau
Guinea, Republic of G/ADP/N/1/GIN/1
Guyana
Haiti
Honduras G/ADP/N/1/HND/2
Hong Kong G/ADP/N/1/HKG/1
Hungary G/ADP/N/1/HUN/1
Iceland G/ADP/N/1/ISL/1
India G/ADP/N/1/IND/2 +Corr.1 +Suppl.1
Indonesia G/ADP/N/1/IDN/2
Israel G/ADP/N/1/ISR/2
Jamaica G/ADP/N/1/JAM/1
Japan G/ADP/N/1/JPN/2 +Corr.1 &2+Suppl.1
Kenya G/ADP/N/1/KEN/1
Korea G/ADP/N/1/KOR/1 +Corr.1 &2
Kuwait
Lesotho
Liechtenstein
Macau G/ADP/N/1/MAC/1
Madagascar
Malawi G/ADP/N/1/MWI/1 +Corr.1
Malaysia G/ADP/N/1/MYS/1G/L/123
Page9
Maldives G/ADP/N/1/MDV/1
Mali
Malta G/ADP/N/1/MLT/1
Mauritania
Mauritius G/ADP/N/1/MUS/2
Mexico G/ADP/N/1/MEX/1 +Corr.1 &2
Morocco G/ADP/N/1/MAR/1
Mozambique
Myanmar
Namibia
NewZealand G/ADP/N/1/NZL/2
Nicaragua G/ADP/N/1/NIC/1
Nigeria
Norway G/ADP/N/1/NOR/3
Pakistan G/ADP/N/1/PAK/1
Papua NewGuinea
Paraguay G/ADP/N/1/PRY/1
Peru G/ADP/N/1/PER/1 +Suppl.1 +Corr.1
Philippines G/ADP/N/1/PHL/1
Poland G/ADP/N/1/POL/1
Qatar
Romania G/ADP/N/1/ROM/1
Rwanda
Saint Kitts&Nevis
Saint Lucia G/ADP/N/1/LCA/1
Saint Vincent &
Grenadines
Senegal G/ADP/N/1/SEN/1
Sierra Leone
Singapore G/ADP/N/1/SGP/1
Slovak Republic G/ADP/N/1/SVK/1
Slovenia G/ADP/N/1/SVN/1G/L/123
Page10
Solomon Islands
South Africa G/ADP/N/1/ZAF/1
SriLanka G/ADP/N/1/LKA/1
Suriname G/ADP/N/1/SUR/1
Swaziland G/ADP/N/1/SWZ/1
Switzerland G/ADP/N/1/CHE/1
Tanzania
Thailand G/ADP/N/1/THA/2 +Corr.1
Togo
Trinidad andTobago G/ADP/N/1/TTO/1 +Corr.1
Tunisia G/ADP/N/1/TUN/1
Turkey G/ADP/N/1/TUR/2
Uganda G/ADP/N/UGA/2
United Arab Emirates
United States G/ADP/N/1/USA/1 +Corr.1 +Suppl.1
Uruguay G/ADP/N/1/URY/2
Venezuela G/ADP/N/1/VEN/1 +Suppl.1 &2
Zambia G/ADP/N/1/ZMB/1
Zimbabwe G/ADP/N/1/ZWE/2G/L/123
Page11
ANNEX B
SEMI-ANNUAL REPORTS
Key: X=Semi-annual report ofactions taken submitted
N=Report ofnoactions taken submitted
notapplicable =obligation didnotapply toMember forthatperiod
blank =Noreport submitted
MEMBER 1July-31December 1995 1January -30June 1996
Antigua andBarbuda
Argentina X X
Australia X X
Bahrain
Bangladesh
Barbados N
Belize
Benin
Bolivia N
Botswana
Brazil X X
Brunei Darussalam
Burkina Faso
Burundi
Cameroon
Canada X X
Central African Republic
Chad notapplicable
Chile X X
Colombia X X
Costa Rica N
Côted'Ivoire
Cuba N N
Cyprus N N
Czech Republic N NG/L/123
Page12
MEMBER 1July-31December 1995 1January -30June 1996
Djibouti
Dominica
Dominican Republic N N
European Communities4X X
Ecuador
Egypt N N
ElSalvador
Fiji
Gabon
Ghana
Grenada
Guatemala N X
Guinea Bissau
Guinea, Republic of
Guyana
Haiti
Honduras N N
Hong Kong N N
Hungary N N
Iceland N N
India X X
Indonesia N
Israel X X
Jamaica N
Japan X X
Kenya
Korea X X
Kuwait N
4TheECiscounted as1Member.G/L/123
Page13
MEMBER 1July-31December 1995 1January -30June 1996
Lesotho
Liechtenstein
Macau
Madagascar
Malawi
Malaysia X X
Maldives
Mali
Malta N N
Mauritania
Mauritius N
Mexico X X
Morocco N N
Mozambique
Myanmar
Namibia
NewZealand X X
Nicaragua
Nigeria
Norway N N
Pakistan
Papua NewGuinea
Paraguay N N
Peru X X
Philippines X N
Poland N
Qatar
Romania N N
Rwanda
Saint Kitts&Nevis
Saint Lucia NG/L/123
Page14
MEMBER 1July-31December 1995 1January -30June 1996
Saint Vincent &
Grenadines
Senegal N N
Sierra Leone
Singapore X N
Slovak Republic N N
Slovenia N N
Solomon Islands notapplicable
South Africa X
SriLanka N N
Suriname
Swaziland N
Switzerland N N
Tanzania
Thailand X N
Togo
Trinidad andTobago
Tunisia N
Turkey X X
Uganda N
United Arab Emirates N
United States X X
Uruguay N N
Venezuela X X
Zambia N
Zimbabwe NG/L/123
Page15ANNEX C5
Summary ofAnti-Dumping Actions
(1July1995-30 June1996)
Initiation Provisional
Measures
(negative preliminary determinations not
included)Definitive
Duties
(negative determinations notincluded)Price
UndertakingsMeasures
inforce on
30June1996
(definitive
duties andprice
undertakings)
No. Countries6involved No. Countries involved No. Countries involved No. Countries involved
ARGENTINA
42 BRA(10) CHL(2) CHN(8) 0 NONE 21 BRA(4) CHN(6) CHT(2) 0 NONE 28
CHT(1) DEU(3) ESP(1) CZE(1) DEU(1) HKG(1)
FRA(1) KOR(1) NLD(6) HUN(1) IND(1) JPN(1)
URY(1) USA(5) ZAF(3) KOR(1) POL(1) VEN(1)
AUSTRALIA
8 CHN(1) GBR(1) KOR(2) 2 THA(1) USA(1) 1 CHN(1) 0 NONE 86
MYS(1) THA(1) USA(1)
ZAF(1)
5Includes actions covered bytheTokyo Round Agreement, theWTO Agreement, andArticle VIofGATT 1947.
6"Countries" refers inallcases tocountries orcustoms territories. Alistoftheabbreviations used inthistable canbefound following thetable.G/L/123
Page16Initiation Provisional
Measures
(negative preliminary determinations not
included)Definitive
Duties
(negative determinations notincluded)Price
UndertakingsMeasures
inforce on
30June1996
(definitive
duties andprice
undertakings)
No. Countries6involved No. Countries involved No. Countries involved No. Countries involved
BRAZIL
1 CHN(1) 3 CHN(3) 9 BIH(1) CHN(3) HRV(1) 0 NONE 20
IND(1) MKD(1) SVN(1)
YUG(1)
CANADA
6 BRA(1) CHN(1) GBR(1) 12 BRA(1) CHN(1) DEU(1) 6 DEU(1) DNK(1) GBR(1) 0 NONE 96
IDN(1) ITA(1) USA(1) DNK(1) GBR(2) IDN(1) NLD(1) USA(2)
ITA(1) KOR(1) NLD(1)
USA(2)
CHILE
4 BRA(2) NZL(1) USA(1) 0 NONE 0 NONE 0 NONE 0
COLOMBIA
5 CHN(1) KOR(4) 1 CHN(1) 0 NONE 0 NONE 7G/L/123
Page17Initiation Provisional
Measures
(negative preliminary determinations not
included)Definitive
Duties
(negative determinations notincluded)Price
UndertakingsMeasures
inforce on
30June1996
(definitive
duties andprice
undertakings)
No. Countries6involved No. Countries involved No. Countries involved No. Countries involved
EUROPEAN COMMUNITY
16 CHN(6) CZE(1) EGY(1) 23 BLR(1) CHN(6) HRV(1) 25 BRA(1) CHN(6) CZE(1) 6 CZE(1) HR
V(1)RUS(1) 76
HUN(1) IDN(1) IND(2) IDN(2) KOR(1) MEX(1) HRV(1) IDN(1) KOR(1) THA(1) UK
R(1)ZAF(1)
MYS(1) PAK(1) POL(1) MYS(3) RUS(2) THA(4) MEX(1) MYS(3) RUS(3)
TUR(1) UKR(1) USA(1) THA(3) UKR(1) USA(2)
ZAF(1)
GUATEMALA
1 MEX(1) 0 NONE 0 NONE 0 NONE Infonot
available
INDIA
5 CHN(2) DEU(1) KOR(1) 0 NONE 7 BRA(1) CHN(4) JPN(1) 0 NONE 87
USA(1) RUS(1)
7Asof31December 1995.G/L/123
Page18Initiation Provisional
Measures
(negative preliminary determinations not
included)Definitive
Duties
(negative determinations notincluded)Price
UndertakingsMeasures
inforce on
30June1996
(definitive
duties andprice
undertakings)
No. Countries6involved No. Countries involved No. Countries involved No. Countries involved
ISRAEL
4 DEU(1) ESP(1) ITA(1) 1 ESP(1) 0 NONE 0 NONE Infonot
available
USA(1)
JAPAN
0 NONE 0 NONE 1 PAK(1) 0 NONE 3
KOREA
6 CHN(1) JPN(2) USA(3) 0 NONE 0 NONE 0 NONE 8
MALAYSIA
0 NONE 2 KOR(1) THA(1) 2 KOR(1) THA(1) 0 NONE 0G/L/123
Page19Initiation Provisional
Measures
(negative preliminary determinations not
included)Definitive
Duties
(negative determinations notincluded)Price
UndertakingsMeasures
inforce on
30June1996
(definitive
duties andprice
undertakings)
No. Countries6involved No. Countries involved No. Countries involved No. Countries involved
MEXICO
3 CHN(1) CHT(1) USA(1) 1 BRA(1) 20 BRA(6) CAN(2) CHN(1) 3 VEN(3) 61
DEU(1) IND(1) JPN(1)
NLD(1) RUS(1) USA(3)
VEN(3)
NEW ZEALAND
9 CAN(1) GBR(1) IDN(1) 2 CHT(1) KOR(1) 3 CHT(1) GBR(1) THA(1) 0 NONE 26
KOR(1) THA(3) ZAF(2)
PERU
4 CHL(1) CHN(2) MEX(1) 1 CHN(1) 2 CHN(2) 0 NONE 2
PHILIPPINES8
0 NONE 2 CHT(1) IDN(1) 0 NONE 0 NONE Infonot
available
SINGAPORE
0 NONE 0 NONE 2 MYS(1) TUR(1) 0 NONE 2
8ThePhilippines didnotsubmit areport fortheperiod 1January -30June1996, Hence, thefigures reflect onlyactions taken during theperiod 1July-31December
1995.G/L/123
Page20Initiation Provisional
Measures
(negative preliminary determinations not
included)Definitive
Duties
(negative determinations notincluded)Price
UndertakingsMeasures
inforce on
30June1996
(definitive
duties andprice
undertakings)
No. Countries6involved No. Countries involved No. Countries involved No. Countries involved
SOUTH AFRICA9
14 BEL(1) CHN(1) DEU(1) 6 BEL(1)* CHT(2) FRA(1) 0 NONE 0 NONE 15
EGY(1) ESP(1) FRA(1) IND(1)* ITA(1)
GBR(2) HKG(1) HUN(1)
IND(2) TUR(1) ZWE(1)
THAILAND
0 NONE 0 NONE 0 NONE 0 NONE 1
9South Africa didnotsubmit areport fortheperiod 1January-30 June1996. Hence, thefigures reflect onlyactions during theperiod 1July-31December 1995, except
forthose marked *,which were taken after 1January 1996, butreported fortheprevious period.G/L/123
Page21Initiation Provisional
Measures
(negative preliminary determinations not
included)Definitive
Duties
(negative determinations notincluded)Price
UndertakingsMeasures
inforce on
30June1996
(definitive
duties andprice
undertakings)
No. Countries6involved No. Countries involved No. Countries involved No. Countries involved
TURKEY
0 NONE 0 NONE 0 NONE 0 NONE 38
UNITED STATES
16 CHN(3) CHT(1) DEU(1) 13 CHN(3) CHT(1) DEU(2) 17 BRA(1) CHN(7) CHT(1) 0 NONE 294
GBR(1) IDN(1) JPN(4) GBR(1) ITA(1) JPN(3) DEU(1) ITA(1) JPN(2)
KAZ(1) MEX(2) TUR(1) ROM(1) TUR(1) ZAF(1) ROM(1) THA(1) TUR(1)
ZAF(1)
VENEZUELA
5 ARG(1) CHN(2) MEX(1) 1 PER(1) 0 NONE 0 NONE 4
PER(1)G/L/123
Page22
LIST OFABBREVIATIONS USED INANNEX C
AFG AFGHANISTAN
ALB ALBANIA
DZA ALGERIA
ATG ANTIGUA AND
BARBUDA
ARG ARGENTINA
ARM ARMENIA
AUS AUSTRALIA
AUT AUSTRIA
AZE AZERBAIJAN
BHS BAHAMAS
BHR BAHRAIN
BGD BANGLADESH
BRB BARBADOS
BLR BELARUS
BEL BELGIUM
BLZ BELIZE
BEN BENIN
BMU BERMUDA
BOL BOLIVIA
BIH BOSNIA-
HERZEGOVINA
BWA BOTSWANA
BRA BRAZIL
BRN BRUNEI DARUSSALAM
BGR BULGARIA
BFA BURKINA FASO
BUR BURUNDI
CMR CAMEROON
CAN CANADA
CAF CENTRAL AFRICAN
REPUBLIC
TCD CHAD
CHL CHILE
CHN CHINA
CHT CHINESE TAIPEI
COG CONGO, REPUBLIC
COL COLOMBIA
CRI COSTA RICA
CIV COTE D'IVOIRE
HRV CROATIA
CUB CUBA
CYP CYPRUS
CZE CZECH REPUBLIC
DNK DENMARK
DJI DJIBOUTI
DMA DOMINICA
DOM DOMINICAN REPUBLIC
EEC EUROPEAN
COMMUNITY
ECU ECUADOR
EGY EGYPT
SLV ELSALVADOR
EST ESTONIA
FJI FIJI
FIN FINLAND
FRA FRANCE
MKD FORMER YUGOSLAV
REPUBLIC OF
MACEDONIA
GAB GABON
GMB GAMBIA
GEO GEORGIA
DEU GERMANY
GHA GHANA
GRC GREECEGRD GRENADA
GTM GUATEMALA
GNB GUINEA-BISSAU
GIN GUINEA, REP. OF
GUY GUYANA
HTI HAITI
HND HONDURAS
HKG HONG KONG
HUN HUNGARY
ISL ICELAND
IND INDIA
IDN INDONESIA
IRN IRAN
IRQ IRAQ
IRL IRELAND
ISR ISRAEL
ITA ITALY
JAM JAMAICA
JPN JAPAN
JOR JORDAN
KAZ KAZAKHSTAN
KEN KENYA
KOR KOREA
KWT KUWAIT
KGZ KYRGYZSTAN
LVA LATVIA
LBN LEBANON
LSO LESOTHO
LIE LIECHTENSTEIN
LTU LITHUANIA
LUX LUXEMBOURG
MAC MACAU
MDG MADAGASCAR
MWI MALAWI
MYS MALAYSIA
MDV MALDIVES
MLI MALI
MLT MALTA
MRT MAURITANIA
MUS MAURITIUS
MEX MEXICO
MDA MOLDOVA, REP. OF
MNG MONGOLIA
MAR MOROCCO
MOZ MOZAMBIQUE
NAM NAMIBIA
NLD NETHLANDS
NZL NEW ZEALAND
NIC NICARAGUA
NER NIGER
NGA NIGERIA
NOR NORWAY
OMN OMAN
PAK PAKISTAN
PAN PANAMA
PNG PAPUA NEW GUINEA
PRY PARAGUAY
PER PERU
PHL PHILIPPINES
POL POLAND
PRT PORTUGAL
PRI PUERTO RICO
QUT QATAR
ROM ROMANIA
RUS RUSSIAN FEDERATION
RWA RWANDAKNA SAINT KITTS &NEVIS
LCA SAINT LUCIA
SAU SAUDI ARABIA
SEN SENEGAL
SYC SEYCHELLES
SLE SIERRA LEONE
SGP SINGAPORE
SVK SLOVAK REPUBLIC
SVN SLOVENIA
ZAF SOUTH AFRICA
ESP SPAIN
LKA SRILANKA
VCT SAINT VINCENT &
GRENADINES
SDN SUDAN
SUR SURINAME
SWE SWEDEN
CHE SWITZERLAND
TJK TAJIKISTAN
TZA TANZANIA
THA THAILAND
TGO TOGO
TTO TRINIDAD &TOBAGO
TUN TUNISIA
TUR TURKEY
TKM TURKMENISTAN
UGA UGANDA
UKR UKRAINE
ARE UNITED ARAB
EMIRATES
GBR UNITED KINGDOM
USA UNITED STATES
URY URUGUAY
UZB UZBEKISTAN
VUT VANUATU
VEN VENEZUELA
VNM VIET NAM
ZAR ZAIRE
ZMB ZAMBIA
ZWE ZIMBABWESECTION IX
COMMITEE ONAGRICULTURE ONTHE MARRAKESH
MINISTERIALDECISION ONMEASURES CONCERNING THE
POSSIBLE NEGATIVE EFFECTS OFTHE REFORM PROGRAMME
ONLEAST-DEVELOPED AND NET FOOD-IMPORTING COUNTRIESWORLD TRADE G/L/125
24October 1996
ORGANIZATION(96-4471)
REPORT BYTHE COMMITTEE ONAGRICULTURE ONTHE MARRAKESH
MINISTERIAL DECISION ONMEASURES CONCERNING THE POSSIBLE NEGATIVE
EFFECTS OFTHE REFORM PROGRAMME ONLEAST-DEVELOPED AND NET FOOD-
IMPORTING DEVELOPING COUNTRIES
Report fortheSingapore Ministerial Conference adopted bythe
Committee onAgriculture on24October 1996
***
I. Introduction
1. TheDecision onMeasures Concerning thePossible Negative Effects oftheReform Programme
onLeast-Developed andNetFood-Importing Developing Countries ("the Decision") wasadopted by
Ministers atMarrakesh asanintegral partoftheUruguay Round outcome. AcopyoftheDecision
... isannexed tothisreport.
2. While recognizing thatimplementation oftheresults oftheUruguay Round asawhole would
benefit allparticipants, theDecision alsorecognizes thatduring thereform programme leading togreater
liberalization oftradeinagriculture least-developed andnetfood-importing developing countries may
experience negative effects interms oftheavailability ofadequate supplies ofbasic foodstuffs from
externalsourcesonreasonabletermsandconditions,includingshort-termdifficultiesinfinancingnormal
levels ofcommercial imports ofbasic foodstuffs. TheDecision accordingly establishes mechanisms
which provide for:(i)review oftheleveloffoodaidandtheinitiation ofnegotiations intheappropriate
forum toestablish aleveloffoodaidcommitments sufficient tomeetthelegitimate needs ofdeveloping
countriesduringthereformprogramme;(ii)theadoptionofguidelinesonconcessionality;(iii)financial
andtechnical assistance under aidprogrammes toimprove agricultural productivity andinfrastructure;
and(iv)differential treatment inthecontext ofanagreement tobenegotiated onagricultural export
credits. TheDecision alsotakes intoaccount thequestion ofaccess totheresources ofinternational
financial institutions under existing facilities, orsuchfacilities asmaybeestablished, inorder toaddress
short-term difficulties infinancing normal levels ofcommercial imports.
3. Article16:1oftheAgreementonAgriculture("theAgreement")providesthatdevelopedcountry
Members oftheWTO shalltakesuchaction asisprovided forwithin theframework oftheDecision,
withprovision being made inArticle 16:2fortheCommittee onAgriculture tomonitor, asappropriate,
thefollow-up totheDecision. Inlinewithitsterms ofreference (WT/L/43) theCommittee ischarged
more generally withoverseeing implementation andaffording Members theopportunity forconsulting
onanymatter relating totheimplementation oftheprovisions oftheAgreement, including Article 16.
4. Intermsofparagraph6thereof,theDecisionissubjecttoregularreviewbytheWTOMinisterial
Conference. TheCommittee 'sworking procedures (G/AG/1, para. 18)require theCommittee to
prepare areport onthefollow-up totheDecision forthepurposes ofthisreview. Thepresent report
istherefore submitted forconsideration bytheMinisterial Conference, inaccordance withthereportingG/L/125
Page2
procedures fortheSingapore Ministerial Conference (WT/L/145), asabasis foritsreview ofthe
provisions oftheDecision.
5. Section IIofthisreport summarizes theprocedures established formonitoring thefollow-up
totheDecision aswellasthestepstaken bytheCommittee toassist inmaking theDecision operational;
Section IIIoutlines thefollow-up withrespect totheaction provided forwithin theframework ofthe
Decision; andSection IVsetsoutrecommendations forconsideration bytheMinisterial Conference
inthecontext oftheirreview oftheprovisions ofDecision pursuant toparagraph 6thereof.
II. Procedures forMonitoring theFollow-up totheDecision
6. IntermsoftheworkingproceduresadoptedbytheCommitteeatitsfirstmeetinginMarch1995,
systematic monitoring ofthefollow-up totheDecision isconducted onanannual basis attheregular
November meetings oftheCommittee. Inaddition, theworking procedures provide thatthere shall
beanopportunity atanyregular meeting oftheCommittee toraiseanymatter relating totheDecision.
Inpractice questions relating totheimplementation oftheDecision havebeenraised ateachmeeting
oftheCommittee withmany ofthematters raised being pursued ininformal consultations thathave
ledtodecisions being taken bytheCommittee. Themainpoints raised inthecourse oftheCommittee 's
discussions ontheDecision aresetoutintherelevant sections oftheSecretariat summary reports on
theCommittee 'smeetings (G/AG/R/1 to6refer) andarereferred toasappropriate inSection IIIof
thisreport.
7. Themonitoring process isstructured oncontributions byMembers generally aswellason
thebasis ofnotification requirements relating toactions provided forwithin theframework ofthe
Decision (G/AG/2, pages 33and34refer). Thus donor Members arerequired atleastannually to
submit notifications withrespect tothefollowing matters: (i)thequantity offoodaidprovided to
least-developed andnetfood-importing developing countries; (ii)theproportion ofsuchfoodaid
provided infully grant form orappropriate concessional terms; and(iii) technical andfinancial
assistance under aidprogrammes. Inaddition, anyMember maynotify other relevant information
withrespect toactions taken within theframework oftheDecision.
8. SinceimportantareasoftheactionprovidedforwithintheframeworkoftheDecisionarematters
within thecompetence oroperational responsibility ofother international organizations, theCommittee
invited andmade provision fortheactive participation inthemonitoring process byobservers from
thefollowing international organizations: theFAO, theWorld Food Programme, theOECD, the
UNCTAD andtheInternational Grains Council (Food AidConvention) inrespect, interalia,offood
aid,agriculture development andrelated matters; andtheIMFandtheWorld Bank mainly inrespect
ofmatters relating toaccess tothefinancial resources ofthese organizations.
9. Thefirstmonitoring exercise, which wasundertaken atthe20-21 November 1995 meeting
oftheCommittee, wasbased essentially oncontributions byMembers andobserver international
organizations, since atthatstage intheimplementation process thenotifications (which maybebased
onacalendar, marketing orotherannual basis) hadnotbecome due.These notifications arenowcoming
onstream andwillbetaken intoaccount asappropriate intheNovember 1996 monitoring exercise.
10. TheDecision asadopted atMarrakesh described butdidnotlistthecountries thatweretobe
covered bytheDecision. Following extensive informal consultations onthissubject, theCommittee
atitsNovember 1995 meeting adopted adecision ontheestablishment ofaWTO listofnetfood-
importing developing countries (G/AG/3 refers). Thisdecision wasadopted ontheunderstanding that
being listed didnotassuchconfer automatic benefits since, under themechanisms covered bytheG/L/125
Page3
Marrakesh Ministerial Decision, donors andinternational organizations concerned would havearole
toplay(G/AG/R/4, paragraph 17,refers).
11. TheWTO listitself wasinitially established attheMarch 1996 meeting oftheCommittee.
Inaddition toleast-developed countries asrecognized bytheUNEconomic andSocial Council, the
listcurrently comprises thefollowing sixteen developing country WTO Members which notified their
request tobelisted andhavesubmitted relevant statistical dataregarding theirstatus asnet-importers
ofbasicfoodstuffsduringarepresentativeperiod:Barbados,Côted'Ivoire,DominicanRepublic,Egypt,
Honduras, Jamaica, Kenya, Mauritius, Morocco, Peru, SaintLucia, Senegal, SriLanka, Trinidad and
Tobago, Tunisia andVenezuela (G/AG/5/Rev.1 refers). Thelististobereviewed bytheCommittee
atitsregular March meetings.
III. Follow-up withrespect totheMeasures provided forwithin theFramework oftheDecision
Food Aid(subparagraphs 3(i)and(ii)oftheDecision)
12. Paragraph 3oftheDecision specifies certain mechanisms agreed tobyMinisters inorder to
ensure thattheimplementation oftheresults oftheUruguay Round ontrade inagriculture doesnot
adversely affect theavailability offoodaidatalevelwhich issufficient tocontinue toprovide assistance
inmeeting thefoodneeds ofdeveloping countries, especially least-developed andnetfood-importing
developing countries. These mechanisms include agreement byMinisters:
(i)toreview thelevel offoodaidestablished periodically bytheCommittee onFood Aid
under theFood AidConvention 1986 andtoinitiate negotiations intheappropriate forum to
establish aleveloffoodaidcommitments sufficient tomeetthelegitimate needs ofdeveloping
countries during thereform programme;
(ii)toadopt guidelines toensure thatanincreasing proportion ofbasic foodstuffs isprovided
toleast-developed andnetfood-importing developing countries infullygrant formand/or on
appropriate concessional terms inlinewithArticle IVoftheFood AidConvention 1986.
13. AtitsNovember 1995meeting theCommittee commissioned apreparatory work programme
(G/AG/4 refers) covering subparagraphs 3(i)and(ii)oftheDecision, aswellasprocedures forthe
submissionofdetailedproposals.AtitsMarch1996meetingtheCommitteeembarkedonanexamination
of,andexchange ofviews on,issues relating tofoodaidlevels andcommitments, aswellason
guidelines relating totheconcessionality offoodaid.Forthispurpose theCommittee hadbefore it
abackground note(G/AG/W/20), prepared bytheSecretariat attherequest oftheCommittee, which
indicated thatbothinternational foodaidcommitments andtheactual volume offoodaidhaddeclined
inrecent years. Representatives oftheFAO, theUNWorld Food Programme andtheInternational
Grains Council/Food AidCommittee contributed tothese discussions. Asagreed bytheCommittee
atitsMarch 1996meeting, informal consultations wereundertaken onbehalf oftheChairman onthe
implementation ofthepreparatory work programme.
Technical andFinancial Assistance under AidProgrammes toImprove Agricultural Productivity and
Infrastructure (Subparagraph 3(iii)oftheDecision)
14. Members oftheCommittee consider thatthefollow-up totheDecision intheareaoftechnical
andfinancial assistance under aidprogrammes would needtobeassessed, interalia,inthelightof
thenotifications tobesubmitted totheCommittee inadvance ofthemonitoring exercise tobeundertaken
atthemeeting oftheCommittee inNovember thisyear. Inthisgeneral context Members recognized
thatimproving agricultural productivity andinfrastructure inleast-developed andnetfood-importing
developing countries isafundamentally important objective andthattechnical andfinancial assistanceG/L/125
Page4
provided under aidprogrammes hasakeyroletoplayinhelping torealise thisobjective. While noting
that,given budgetary restraints, account hadtobetaken ofcompeting priorities andoftherelative
effectiveness ofvarious forms ofassistance, Members agreed thatfullconsideration should continue
tobegiven inthecontext oftheiraidprogrammes torequests fortheprovision oftechnical andfinancial
assistance toleast-developed andnetfood-importing developing countries toimprove theiragricultural
productivity andinfrastructure.
Differential Treatment intheContext ofanAgreement onAgriculture Export Credits (Paragraph 4
oftheDecision)
15. Under Article 10:2oftheAgreement, which relates totheprevention ofcircumvention ofexport
subsidy commitments, Members undertake to"work towards thedevelopment ofinternationally agreed
disciplines togovern theprovision ofexport credits, export credit guarantees orinsurance programmes
and,afteragreement onsuchdisciplines, toprovide export credits, export credit guarantees orinsurance
programmes onlyinconformity therewith". Further work ontheelements ofanoutline understanding
isrequired. Attheappropriate stage theCommittee onAgriculture willneedtoconsider howan
understanding inthisareacould bemultilateralized within theframework oftheAgreement on
Agriculture andhowtheprovisions ofparagraph 4oftheDecision havebeentaken intoaccount.
Access totheResources ofInternational Financial Institutions under Existing Facilities orsuchFacilities
asmaybeEstablished (Paragraph 5oftheDecision)
16. Paragraph 5oftheDecision recognizes thatasaresult oftheUruguay Round certain developing
countries mayexperience short-term difficulties infinancing normal levels ofcommercial imports and
thatthesecountries maybeeligible todrawontheresources ofinternational financial institutions under
existing facilities, orsuchfacilities asmaybeestablished, inthecontext ofadjustment programmes,
inorder toaddress suchfinancing difficulties. Inresponse totherequest made inthisregard atthe
September 1995meeting oftheCommittee, theDirector-General inhisconsultations withtheManaging
Director oftheIMFandthePresident oftheWorld Bank raised anumber ofquestions concerning
therespective contributions oftheFundandtheBanktothefollow-up under paragraph 5oftheDecision.
17. Theresponses oftheFund andtheBank toquestions concerning thescope forimproved
conditions ofaccess orfacilities fornetfood-importing developing countries (scope forproviding some
degreeofpriorityinaccesstoexistingfacilitiesandforsofteningconditionality,prospectsforestablishing
newfacilities toassist netfood-importers andways inwhich theWTO could assist theFund andthe
Bank tobemore forthcoming inthese matters) were presented anddiscussed inthecourse ofthe
Committee 'sNovember 1995monitoring exercise. Ingeneral, given therange offacilities available,
theIMFandtheWorld Bank didnotconsider thatitwasnecessary, atthepresent stage, toestablish
special Uruguay Round-related facilities. Netfood-importing developing country Members expressed
theirdisappointment regarding theaccessibility ofexisting facilities andthescope forestablishing new
Uruguay Round-related facilities atthepresent stage, particularly inviewoftheexplicit reference by
Ministers tosuchfacilities inparagraph 5oftheDecision. TheDirector-General 'sspecific questions,
theFund'sandtheBank'sresponses thereto andthesummary oftheCommittee 'sdiscussions are
contained indocuments G/AG/W/12 &Add.1 andG/AG/R/4.)
IV. Recommendations forConsideration bytheMinisterial Conference
18. InthelightoftheCommittee 'sdiscussions onthefollow-up totheDecision, thefollowing
recommendations aresubmitted forconsideration bytheMinisterial Conference inthecontext ofits
review oftheprovisions oftheMarrakesh Ministerial Decision onMeasures Concerning thePossible
Negative Effects oftheReform Programme onLeast-Developed andNetFood-Importing Developing
Countries:G/L/125
Page5
(i) that,inanticipation oftheexpiry ofthecurrent Food AidConvention inJune1998
andinpreparation fortherenegotiation oftheFood AidConvention, action beinitiated
in1997 within theframework oftheFood AidConvention, under arrangements for
participation byallinterested countries andbyrelevant international organizations as
appropriate, todevelop recommendations withaviewtowards establishing alevelof
foodaidcommitments, covering aswidearange ofdonors anddonable foodstuffs as
possible, which issufficient tomeetthelegitimate needs ofdeveloping countries during
thereform programme. These recommendations should include guidelines toensure
thatanincreasing proportion offoodaidisprovided toleast-developed andnetfood-
importing developing countries infullygrant formand/or onappropriate concessional
terms inlinewithArticle IVofthecurrent Food AidConvention, aswellasmeans
toimprove theeffectiveness andpositive impact offoodaid;
(ii) thatdeveloped country WTO Members continue togivefullconsideration inthecontext
oftheiraidprogrammestorequestsfortheprovisionoftechnicalandfinancialassistance
toleast-developed andnetfood-importing developing countries toimprove their
agricultural productivity andinfrastructure;
(iii) thattheprovisions ofparagraph 4oftheMarrakesh Ministerial Decision, whereby
Ministers agreed toensure thatanyagreement relating toagricultural export credits
makes appropriate provision fordifferential treatment infavour ofleast-developed and
netfood-importing developing countries, betaken fullyintoaccount intheagreement
tobenegotiated onagricultural export credits;
(iv) thatWTO Members, intheirindividual capacity asmembers ofrelevant international
financial institutions, takeappropriate steps toencourage theinstitutions concerned,
through theirrespective governing bodies, tofurther consider thescope forestablishing
newfacilities orenhancing existing facilities fordeveloping countries experiencing
Uruguay Round-related difficulties infinancing normal levels ofcommercial imports
ofbasic foodstuffs.G/L/125
Page6
ANNEX
DECISION ONMEASURES CONCERNING
THE POSSIBLE NEGATIVE EFFECTS OFTHE
REFORM PROGRAMME ONLEAST-DEVELOPED AND
NET FOOD-IMPORTING DEVELOPING COUNTRIES
1. Ministers recognize thattheprogressive implementation oftheresults oftheUruguay Round
asawhole willgenerate increasing opportunities fortradeexpansion andeconomic growth tothebenefit
ofallparticipants.
2. Ministers recognize thatduring thereform programme leading togreater liberalization oftrade
inagriculture least-developed andnetfood-importing developing countries mayexperience negative
effects interms oftheavailability ofadequate supplies ofbasic foodstuffs from external sources on
reasonabletermsandconditions,includingshort-termdifficultiesinfinancingnormallevelsofcommercial
imports ofbasic foodstuffs.
3. Ministersaccordinglyagreetoestablishappropriatemechanismstoensurethattheimplementation
oftheresults oftheUruguay Round ontrade inagriculture doesnotadversely affect theavailability
offoodaidatalevelwhich issufficient tocontinue toprovide assistance inmeeting thefoodneeds
ofdeveloping countries, especially least-developed andnetfood-importing developing countries. To
thisendMinisters agree:
(i) toreview theleveloffoodaidestablished periodically bytheCommittee onFood Aid
under theFood AidConvention 1986 andtoinitiate negotiations intheappropriate
forum toestablish aleveloffoodaidcommitments sufficient tomeetthelegitimate
needs ofdeveloping countries during thereform programme;
(ii) toadoptguidelinestoensurethatanincreasingproportionofbasicfoodstuffsisprovided
toleast-developedandnetfood-importingdevelopingcountriesinfullygrantformand/or
onappropriate concessional terms inlinewith Article IVoftheFood Aid
Convention 1986;
(iii) togivefullconsideration inthecontext oftheiraidprogrammes torequests forthe
provision oftechnical andfinancial assistance toleast-developed andnetfood-importing
developing countries toimprove theiragricultural productivity andinfrastructure.
4. Ministers further agree toensure thatanyagreement relating toagricultural export credits makes
appropriate provision fordifferential treatment infavour ofleast-developed andnetfood-importing
developing countries.
5. Ministers recognize thatasaresult oftheUruguay Round certain developing countries may
experience short-term difficulties infinancing normal levels ofcommercial imports andthatthese
countries maybeeligible todrawontheresources ofinternational financial institutions under existing
facilities, orsuchfacilities asmaybeestablished, inthecontext ofadjustment programmes, inorder
toaddress suchfinancing difficulties. Inthisregard Ministers takenoteofparagraph 37ofthereport
oftheDirector-General totheCONTRACTING PARTIES toGATT 1947 onhisconsultations withthe
Managing Director oftheInternational Monetary Fund andthePresident oftheWorld Bank
(MTN.GNG/NG14/W/35).
6. Theprovisions ofthisDecision willbesubject toregular review bytheMinisterial Conference,
andthefollow-up tothisDecision shallbemonitored, asappropriate, bytheCommittee onAgriculture.SECTION X
COMMITTEE ONAGRICULTUREWORLD TRADE G/L/131
7November 1996
ORGANIZATION(96-4724)
REPORT OFTHE COMMITTEE ONAGRICULTURE
Report adopted bytheCommittee onAgriculture on6November 1996
*****
1. Inaccordance with itsterms ofreference asadopted bytheWTO General Council on
31January 1995(WT/L/43) theCommittee isrequired tooversee theimplementation oftheAgreement
onAgriculture ("theAgreement") andtoafford Members theopportunity ofconsulting onanymatter
relating totheimplementation oftheprovisions oftheAgreement.
2. Akeyfunction oftheCommittee istoreview progress intheimplementation ofcommitments
negotiated under theUruguay Round reform programme inaccordance withtherelevant provisions
ofArticle 18oftheAgreement. TheCommittee onAgriculture isalsocharged under Article 16:2
oftheAgreement withmonitoring, asappropriate, thefollow-up totheMarrakesh Ministerial Decision
onMeasures Concerning thePossible Negative Effects oftheReform Programme onLeast-Developed
andNetFood-ImportingDevelopingCountries.TheworkoftheCommitteeinthisregardissummarised
intherelevant section oftheseparate report submitted bytheCommittee forthepurposes ofthereview
bytheMinisterial Conference oftheprovisions ofthisDecision.
3. TheCommittee onAgriculture hasheldseven regular meetings (four meetings in1995 and
three sofarinthecurrent year) plusonespecial meeting which wasconvened atintervals between
24October and6November 1996 (summary reports oneachofthese meetings arecontained in
documents G/AG/R/1 to8).These meetings havebeen supplemented asappropriate byinformal
consultations andmeetings. Afurther regular meeting oftheCommittee istobeheldon28-29
November 1996. Thework oftheCommittee isconducted inaccordance withworking procedures
specifically tailored tothefunctions oftheCommittee (G/AG/1), andwithgeneral rulesofprocedure
inlinewiththose adopted bytheWTO General Council (G/AG/W/22). Observers fromthefollowing
international intergovernmental organizations attend regular meetings oftheCommittee onAgriculture
onanadhocbasis: theFAO, theIMF, theInternational Grains Council, theOECD, theUNCTAD,
theUNWorld Food Programme andtheWorld Bank.
4. Inaccordance withtherelevant provisions ofArticle 18oftheAgreement, theCommittee,
ateachofitsmeetings, hasreviewed progress intheimplementation ofcommitments negotiated under
theUruguay Round reform programme. Thisreview process isundertaken onthebasisofnotifications
submitted byMembers intheareas ofmarket access, domestic support, export subsidies andunder
theprovisions oftheAgreement relating toexport prohibitions andrestrictions. TheCommittee also
addressed arange ofgeneral andspecific matters relevant totheimplementation ofcommitments under
theprovisions oftheAgreement (Article 18:6) which enable Members, asanintegral partofthereview
process,toraiseanymatterrelevanttotheimplementationofcommitmentsunderthereformprogramme.G/L/131
Page2
5. Ingeneral, thenotification requirements established bytheCommittee forthepurpose of
reviewingimplementationofcommitmentsandobligationsundertheUruguayRoundreformprogramme
arebeing satisfactorily complied withbymost Members. However, there havebeenanumber of
instances where notifications havebeenincomplete orhavenotbeensubmitted within thespecified
timeframes. Inalimited number ofcases notifications dueremain outstanding. Theoverall position
withrespecttonotificationobligationsunderArticle18:2andotherrelevantprovisionsoftheAgreement
... issummarized intheattachment tothisreport. Members oftheCommittee agree thatitisessential
tothework oftheCommittee inreviewing progress intheimplementation ofcommitments under the
reform programme, thatthereshould befullandtimely compliance withthesenotification requirements.
6. Theprincipal focus oftheCommittee 'sreview process hasthusfarbeenontheimplementation
ofmarket access commitments, particularly withregard totheadministration oftariffandother quota
commitments andtheoperation ofthespecial safeguard provisions. Inthecourse ofthecurrent year
thescope ofthereview process hasbroadened toinclude awider range ofnotifications, aswellas
matters raised under Article 18:6oftheAgreement, withrespect toexport subsidy anddomestic support
commitments. Members oftheCommittee consider thatgoodprogress hasbeenmade inimplementing
thecommitments negotiated under theUruguay Round reform programme, even though some
implementation issues remain toberesolved.
7. Many ofthematters raised inthecourse oftheCommittee 'ssystematic review ofthe
implementation ofcommitments have been satisfactorily clarified intheCommittee orhave been
subsequently resolved following discussion intheCommittee. However, inanumber ofcases matters
raised inthecourse ofthereview process involving apparent non-compliance withcommitments or
obligations under theAgreement nevertheless remain outstanding. Suchmatters include, forexample,
lateorinadequate implementation, theintroduction ormaintenance ofnon-tariff border measures, and
non-compliance withexport subsidy commitments. Some ofthese matters havebeenpursued through
recourse totheformal consultation anddispute settlement procedures. Inthisgeneral context Members
oftheCommittee stress thedesirability ofallsuchmatters being settled inapositive manner and
underline theimportance which theyattach tofullandtimely compliance withcommitments and
obligations under theAgreement byallMembers.
8. TheCommittee 'sreview process hasalsogenerated issues ofamore general nature relating
tothemanner inwhich commitments areimplemented. These issues include allocation ofaccess under
MFN tariffquotas topreferential suppliers ortonon-Members, theallocation ofimport access tostate-
trading enterprises ortoproducer organizations, theauctioning oftariffquota licences, limitations on
imports ofparticular products under broadly defined tariffquota commitments, making imports under
tariffquotas conditional onabsorption ofdomestic production oftheproduct concerned, therelationship
between theAgreement onAgriculture andtheAgreements onImport Licensing Procedures andon
Trade-Related Investment Measures, andexport restrictions. Some ofthese issues havebeensubject
toinformal consultations undertaken bytheChairman attherequest oftheCommittee withaview
toclarifying therelevant disciplines intheareas concerned. TheCommittee considers thatwork in
theseandotherrelevant areasshould bepursued withaviewtoexploring thescope forfurther improving
thequality ofimplementation generally andtodeveloping guidelines orother solutions asappropriate.
9. Special anddifferential treatment infavour ofdeveloping country Members, asincorporated
inscheduled commitments andintheprovisions oftheAgreement, areintegral elements oftheUruguay
Round reform programme. Implementation ofthesecommitments andtheusemade oftheseprovisions
havebeenfully within thescope oftheCommittee 'sreview process, including Article 18:6. In
establishing thenotification requirements (G/AG/2) account wastaken oftheconcerns ofdeveloping
andleast-developed country Members byalleviating theburden ofcertain notification obligations and
byestablishing notification requirements tofacilitate theimplementation andmonitoring oftheDecision
onLeast-Developed andNetFood-Importing Developing Countries. Inaddition, extensive technicalG/L/131
Page3
assistance andadvice hasbeenprovided bytheSecretariat onrequest todeveloping country Members
onimplementation issues.
10. Overall, Members oftheCommittee agree thatthereview process hasbeenconducted inan
efficient andeffective manner andthatthehighest priority should continue tobeaccorded tothiskey
areaoftheCommittee 'swork.
11. Under Article 10:2oftheAgreement, which relates totheprevention ofcircumvention ofexport
subsidy commitments, Members undertake to"work towards thedevelopment ofinternationally agreed
disciplines togovern theprovision ofexport credits, export credit guarantees orinsurance programmes
and,afteragreement onsuchdisciplines, toprovide export credits, export credit guarantees orinsurance
programmes onlyinconformity therewith". Further work ontheelements ofanoutline understanding
isrequired. Attheappropriate stage theCommittee onAgriculture willneedtoconsider howan
understanding inthisareacould bemultilateralized within theframework oftheAgreement on
Agriculture andhowtheprovisions ofparagraph 4oftheDecision onLeast-Developed andNetFood-
Importing Developing Countries havebeentaken intoaccount.
12. Thenegotiations tocontinue thereform process referred toinArticle 20oftheAgreement
onAgriculture, willbeconducted inconformity withthetimetable andallother provisions contained
inthatArticle. Useful experience willbegained bytheCommittee onAgriculture inreviewing the
implementation ofexisting commitments which willenable theCommittee onAgriculture tofurther
pursue in1997 andthereafter:
(a) theassessment ofthecompliance withthesecommitments, taking intoaccount theneed
forfullandtimely compliance; and
(b) aprocess ofanalysis andinformation exchange, inaccordance withallrelevant
provisions oftheAgreement onAgriculture.
Thiswillallow WTO Members tobetter understand theissues involved andtoidentify their
interests inrespect ofthem before undertaking themandated negotiations laiddown in
Article 201.
1Article 20-Continuation oftheReform Process:
"Recognizing thatthelong-term objective ofsubstantial progressive reductions insupport andprotection resulting
infundamental reform isanongoing process, Members agree thatnegotiations forcontinuing theprocess willbeinitiated
oneyearbefore theendoftheimplementation period, taking intoaccount:
(a) theexperience tothatdatefrom implementing thereduction commitments;
(b) theeffects ofthereduction commitments onworld trade inagriculture;
(c) non-trade concerns, special anddifferential treatment todeveloping country Members, andtheobjective
toestablish afairandmarket-oriented agricultural trading system, andtheother objectives andconcerns
mentioned inthepreamble tothisAgreement; and
(d) what further commitments arenecessary toachieve theabove mentioned long-term objectives."G/L/131
Page4
Attachment
Regular notifications pertaining tothe1995 yearmade under theAgreement onAgriculture
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3
Tariff quota
administrationImports under
tariff quotasSpecial
safeguard -
annualDomestic
supportExport
subsidiesTotal
exportsFood aid
Antigua and Barbuda NA NA NA NA ?
Argentina NA NA NA X X X ?
Australia X X X X X X ?
Bahrain NA NA NA NA ?
Bangladesh NA NA NA (NA) NA ?
Barbados X X X NA ?
Belize NA NA NA NA ?
Benin NA NA NA NA NA NA NA
Bolivia NA NA NA NA ?
Botswana NA NA X X NA ?
Brazil X X NA X X X X
Brunei Darussalam NA NA NA NA ?
Burkina Faso NA NA NA (NA) NA ?
Burundi NA NA NA (NA) NA ?
Cameroon NA NA NA NA ?
Canada X X X ?
Central African Rep. NA NA NA (NA) NA ?
Chad NA NA NA NA NA NA NA
Chile NA NA NA X X X ?
Colombia X X ?
Costa Rica X ?
Côte d'Ivoire NA NA NA NA ?
Cuba NA NA NA X ?
Cyprus NA NA NA X ?
Czech Republic X X X X X X X
Djibouti NA NA NA (NA) NA ?
Dominica NA NA NA NA ?
Dominican Republic NA NA NA X NA ?
Ecuador NA NA NA NA NA NA
Egypt NA NA NA NA ?
ElSalvador NA ?
European Communities X ?
Fiji NA NA NA NA NA NA NA
Gabon NA NA NA NA ?
Gambia NA NA NA NA NA NA NA
Ghana NA NA NA NA ?
Grenada NA NA NA NA NA NA NA
Guatemala X X X X X NA ?
Guinea Bissau NA NA NA (NA) NA ?
Guinea, Republic of NA NA NA (NA) NA ?
Guyana NA NA NA NA ?
Haiti NA NA NA NA NA NA NA
Honduras NA NA NA X X ?
Hong Kong NA NA NA X X NA ?
Hungary X X X ?
Iceland X X X ?G/L/131
Page5
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3
Tariff quota
administrationImports under
tariff quotasSpecial
safeguard -
annualDomestic
supportExport
subsidiesTotal
exportsFood aid
India NA NA NA NA ?
Indonesia X X ?
Israel X X X X X ?
Jamaica NA NA NA NA ?
Japan X X X X NA X
Kenya NA NA NA NA ?
Korea X X X NA ?
Kuwait NA NA NA NA ?
Lesotho NA NA NA (NA) NA ?
Macau NA NA NA X X NA ?
Madagascar NA NA NA (NA) NA ?
Malawi NA NA NA (NA) NA ?
Malaysia X X X X X X ?
Maldives NA NA NA (NA) NA ?
Mali NA NA NA (NA) NA ?
Malta NA NA NA NA ?
Mauritania NA NA NA (NA) NA ?
Mauritius NA NA NA NA ?
Mexico ?
Morocco X X X X X NA ?
Mozambique NA NA NA (NA) NA ?
Myanmar NA NA NA (NA) NA ?
Namibia NA NA NA ?
New Zealand X X X X X X X
Nicaragua X X X X NA ?
Nigeria NA NA NA NA ?
Norway X X X X X ?
Pakistan NA NA NA X X ?
Papua New Guinea NA NA NA NA NA NA NA
Paraguay NA NA NA NA ?
Peru NA NA NA X NA ?
Philippines X X X X ?
Poland X X X X ?
Qatar NA NA NA NA NA NA NA
Romania X X X X ?
Rwanda NA NA NA NA NA NA NA
Saint Kitts and Nevis NA NA NA NA NA NA NA
Saint Lucia NA NA NA NA ?
Saint Vincent &Grenadines NA NA NA NA ?
Senegal NA NA NA NA ?
Sierra Leone NA NA NA (NA) NA ?
Singapore NA NA NA X X NA ?
Slovak Republic X X X X X X X
Slovenia X X NA X X NA ?
Solomon Islands NA NA NA NA NA NA NA
South Africa X X X X ?
SriLanka NA NA NA NA ?
Suriname NA NA NA NA ?
Swaziland NA NA NA ?
Switzerland -Liechtenstein X X X X X ?G/L/131
Page6
Table
MA:1Table
MA:2Table
MA:5Table
DS:1+Table
ES:1+Table
ES:2Table
ES:3
Tariff quota
administrationImports under
tariff quotasSpecial
safeguard -
annualDomestic
supportExport
subsidiesTotal
exportsFood aid
Tanzania NA NA NA (NA) NA ?
Thailand X X X X X X ?
Togo NA NA NA (NA) NA ?
Trinidad and Tobago NA NA NA X NA ?
Tunisia X X X X NA ?
Turkey NA NA NA X X X ?
Uganda NA NA NA (NA) NA ?
United Arab Emirates NA NA NA NA NA NA NA
United States X X X X ?
Uruguay NA NA X X X X X
Venezuela X ?
Zambia NA NA NA (NA) NA ?
Zimbabwe NA NA NA ?
Total required tonotify 34 33 35 75 96 33 NA
Notifications received 31 22 26 25 35 15 6
Percentage
compliance91 - - - - - -
1.Agricultural notification requirements aresetoutindocument G/AG/2 andG/AG/2/Add.1. Reference should bemade
tothisdocument inorder toestablish applicability oftherequirements andtherelevant time limits forthesubmission
ofnotifications.
2.There arecurrently 125 WTO Members. ThelistofWTO Members above, however, comprises only 109 names
astheEuropean Communities andits15member states provide onenotification foreach oftherespective requirements
andSwitzerland 'snotifications aretaken tocover Liechtenstein asthese two Members have ajoint Schedule.
3.Thesymbols used inthetable areasfollows:
(a) Ablank indicates that thisisarequirement applicable totheMember concerned, butthat nonotification was
received uptothecut-off date (6November 1996). Notifications may besubmitted according tovarious bases
(calendar,crop,fiscalyears,etc.).Theabsenceofanotification,therefore,doesnotnecessarilyindicateanoutstanding
obligation asthenotification may bedueonly later in1996. Nopercentage compliance iscalculated inthese cases.
The time limit forthesubmission ofMA:1 notifications hasnow passed forallMembers (including those which
became Members only in1996) andthepercentage compliance iscalculated forthisrequirement.
(b) "X"denotes that anotification hasbeen received intheWTO. Noassessment ofthecompleteness orthe
quality ofthenotification with respect torequirements ismade orimplied.
(c) "NA" indicates that therequirement was notapplicable forthisWTO Member during theperiod covered either
because norelevant measures areinplace (e.g. tariff quotas) orbecause WTO membership didnottake place until
1996 hence there were nonotification requirements pertaining to1995. ForTable DS:1, theleast-developed country
Members maynotify attheendofevery second year (indicated bythesymbol "(NA)") andsuch Members areexcluded
from thetotal number required tonotify.
(d) "?"indicates that nonotification was received from theMember, butthisrequirement (Table ES:3 -total volume
offood aid)isapplicable only tothose Members which arefood aiddonors -itisnotpossible todetermine whether
particular Members aresuch donors andno"nilreturn" isrequired from Members which arenotdonors. Forthis
reason compliance with therequirement cannot bedetermined (and, aswith other requirements, notifications may
besubmitted according tovarious annual bases).SECTION XI
COMMITTEE ONSUBSIDIES AND COUNTERVAILING MEASURESWORLD TRADE G/L/126
28October 1996
ORGANIZATION(96-4486)
Committee onSubsidies andCountervailing Measures
REPORT (1996) OFTHE COMMITTEE ON
SUBSIDIES AND COUNTERVAILING MEASURES
I. Organization ofthework oftheCommittee
1. TheAgreementonSubsidiesandCountervailingMeasures(hereinafter"theAgreement")entered
intoforce on1January 1995. AllMembers oftheWTO areipsofacto members oftheCommittee
onSubsidies andCountervailing Measures established under theAgreement.
2. Observer governments intheGeneral Council oftheWTO have Observer status inthe
Committee. Inaddition, theCommittee invited, onanadhocbasis, representatives oftheWorld Bank,
OECD, IMFandUNCTAD toattend meetings oftheCommittee inanobserver capacity. Atitsregular
meeting on23October 1996, theCommittee tooknoteofthedecision oftheGeneral Council regarding
thestatus ofinternational organizations asObservers totheWTO andauthorized theChairman toconsult
informally regarding onwhich international intergovernmental organizations would begranted observer
status intheCommittee. Pending theoutcome ofsuchconsultations, theCommittee agreed tocontinue
toinvite those organizations which hadbeenfollowing theCommittee 'smeetings onanadhocbasis.
3. ThisReport focuses ontheperiod sincetheCommittee 'slastannual report (G/L/31 andCorr.1),
thatis,November 1995 -October 1996. However, where relevant, information from theprevious
period isreported. During theperiod under review (1November 1995-24October 1996) theCommittee
heldsixmeetings. Regular meetings oftheCommittee were heldon1-2May 1996 and23-
24October 1996 (G/SCM/M/9 andG/SCM/M/12). Special meetings oftheCommittee were held
on6March 1996and22-26 July1996(G/SCM/M/8 andG/SCM/M/11). Additional special meetings
were heldjointly withtheCommittee onAnti-Dumping Practices on4-7December 1995 and24-
26April 1996 (G/SCM/M/7 andG/SCM/M/10).
4. TheCommittee atitsspecial meeting of22February 1995elected Mr.OleLundby (Norway)
asitsChairman. TheCommittee atitsregular meeting of13June1995 elected Mr.Victor doPrado
(Brazil) asitsVice-Chairman. TheCommittee atitsregular meeting of1-2May 1996 elected
Mr.Victor doPrado (Brazil) asitsChairman andMs.Michelle Slade (New Zealand) asitsVice-
Chairwoman. Pursuant totheCommittee 'sRules ofProcedure, theytookoffice attheendofthat
meeting.
5. TheCommittee atitsregular meeting of1-2May1996adopted Rules ofProcedure forMeetings
oftheCommittee onSubsidies andCountervailing Measures (G/SCM/10). TheCouncil forTrade
inGoods subsequently approved theCommittee 'sRules ofProcedure atitsmeeting of22May1996.
II. Permanent Group ofExperts
6. TheCommittee isrequired byArticle 24.3oftheAgreement toestablish aPermanent Group
ofExperts ("PGE"). Thetasks assigned tothePGEbytheAgreement aretoprovide assistance to
aPanel, onrequest, withregard towhether ameasure isaprohibited subsidy; toprovide Members
withconfidential advisory opinions onthenature ofanysubsidy proposed tobeintroduced orcurrentlyG/L/126
Page2
maintained bythatMember; andtoprovide theCommittee withadvisory opinions ontheexistence
andnature ofanysubsidy. Atitsspecial meeting of6March 1996, theCommittee elected asmembers
ofthePermanent Group ofExperts thefollowing persons: Mr.Seung-Wha Chang, Mr.GaryHorlick,
Mr.Friedrich Klein, Mr.Akira Kotera andMr.Robert Martin.
7. Pursuant toaDecision adopted bytheCommittee (G/SCM/4), thePGEshalldevelop rules
ofprocedure, taking intoaccount anyguidance provided bytheCommittee, which rulesshallbesubject
toapproval bytheCommittee. Draft Rules ofProcedure were prepared bythePGEandcirculated
totheCommittee on18April 1996(G/SCM/W/365). These draftRules ofProcedure werediscussed
attheCommittee 'sregular meeting of1-2May1996, andrevised draft Rules ofProcedure were
circulated totheCommittee on24June1996(G/SCM/W/365/Rev.1). However, theCommittee did
notapprove these draftRules ofProcedure atitsspecial meeting of22-26 July1996. Inlightoflikely
requests tothePGEforadvisory opinions fromMembers andofpending disputes regarding prohibited
subsidies, theCommittee atthatmeeting tooknotethatthePGEwould work under thedraftRules
ofProcedure untiltheregular meeting oftheCommittee on23October 1996. Atitsregular meeting
on23October 1996, theCommittee failed toapprove thePGE'sdraftRules ofProcedure ortoauthorize
theirprovisional application.
III. Informal Group ofExperts
8. Annex IVoftheAgreement provides guidance regarding thecalculation ofthetotaladvalorem
subsidization forthepurposes ofdetermining whether there exists apresumption ofserious prejudice
under Article 6.1(a) oftheAgreement. Note 62toAnnex IVoftheAgreement provides that"[a]n
understanding among Members should bedeveloped, asnecessary, onmatters which arenotspecified
inthisAnnex orwhich needfurther clarification forthepurposes ofparagraph 1(a)ofArticle 6."
TheCommittee atitsmeeting of13June1995created anInformal Group ofExperts toexamine such
matters andtoreport totheCommittee suchrecommendations astheGroup considers could assist the
Committee inthedevelopment ofanunderstanding among Members, asnecessary, regarding such
matters. TheInformal Group iscomposed ofexperts whoserve intheirpersonal capacities rather
thanasrepresentatives ofgovernments. TheGroup began itswork on1November 1995andhasmet
onsixoccasions todate. TheGroup on14October 1996 circulated totheCommittee anoutline of
issues thatithaddiscussed todate(G/SCM/W/413).
IV. Notification ofsubsidies
9. Newandfullnotifications. Transparency iscentral totheeffective operation oftheAgreement.
Pursuant toArticle 25.1oftheAgreement andArticle XVI:1 ofGATT 1994, allMembers ofthe
Committee were required tosubmit anewandfullnotification ofsubsidies totheCommittee by
30June1995. Aformat forsuchnotifications wasapproved bytheCommittee on21July1995
(G/SCM/6). While asubstantial number ofMembers havesubmitted notifications ofsubsidies pursuant
tothese provisions, discussions intheCommittee indicate awidely heldviewthatcompliance isnot
fullyadequate, bothinterms ofthenumber ofnotifications andthecontent ofthenotifications received
(G/SCM/M/8, paras. 21-23, G/SCM/M/11, paras. 29-31).
10. Asof24October 1996, 46of125WTO Members1hadnotified subsidies pursuant toArticle 25
oftheAgreement andArticle XVIofGATT 1994. Inaddition, 18Members hadnotified thatthey
maintain nosubsidies notifiable pursuant tothese provisions. These notifications maybefound in
document series G/SCM/N/3/... However, 61Members hadsubmitted nonotification asoftheclose
oftheperiod covered bythisReport. Thus, sixteen months aftertheduedatesetforthintheAgreement,
1TheECiscounted assixteen Members.G/L/126
Page3
nearly halfofWTO Members havenotyetsubmitted anotification ofsubsidies. Ofthese Members,
22areleast-developed countries, while theremainder aredeveloping countries, countries intransition
toamarket economy, and(inafewcases) developed countries. Atableindicating thestatus ofsubsidy
notifications isreproduced inAnnex AtothisReport. TheChairman onseveral occasions expressed
hisserious concerns regarding thenumber ofMembers thathadnotasyetsubmitted anotification.
11. Special session. Article 26.1oftheAgreement requires thatnewandfullnotifications be
examined bytheCommittee atspecial sessions heldevery thirdyear. Because veryfewnewandfull
notifications were received inatimely manner, thefirstspecial session toreview suchnotifications
wasnothelduntiltheweek of22July1996, while asecond session willbeheldintheweek of
28October 1996. Asofthecloseofthesecond session, fifty-four ofthe1995newandfullnotifications
received todatewillhavebeenreviewed. Pursuant toadecision oftheCommittee, thereview sessions
areconducted onthebasisofwritten questions, withwritten answers provided afterthespecial session.
Written questions havebeenposed byapproximately adozen Members (G/SCM/Q2/...), andwith
respect toalmost allofthenotifications reviewed.
12. Attheendofthefirstspecial session inJuly1996, theChairman noted theprogress thathad
beenmade inthereview process. Thereview hadbeenconducted inaspirit ofcooperation andgood
will,andaconsiderable amount ofinformation hadbeenexchanged. However, written questions and
discussions revealed concerns bysomeMembers regarding thecompleteness ofmany ofthenotifications
reviewed. Inmany cases, questions wereraised regarding certain programmes ormeasures notnotified
totheCommittee. Questions were alsoposed regarding thefailure ofsome Members tonotify
agricultural subsidies, andofthevastmajority ofMembers tonotify subsidies atasubnational level
(G/SCM/Q2/...).
13. Updating notifications. Article 25.1oftheAgreement requires thatanupdating notification
besubmitted by30June1996. Asof24October 1996, ninesuchnotifications hadbeenreceived.
Australia, Brazil, Iceland, Japan, Norway, Romania andThailand hadnotified subsidies, while Hong
Kong andNewZealand hadnotified thattheymaintained nonotifiable subsidies. These notifications
maybefound indocument series G/SCM/N/16/.... Theremaining 116Members hadnotyetsubmitted
anupdating notification.
V. Notification ofexisting inconsistent subsidies
14. Article 28.1oftheAgreement provides thatsubsidy programmes established before thedate
aMembersignedtheWTOAgreementandwhichareinconsistentwiththeAgreementweretobenotified
notlaterthan90daysafterthedateofentry intoforce oftheWTO Agreement. Asof24October 1996,
Chile, Malaysia andSouth Africa hadnotified programmes pursuant tothisprovision (thenotification
byChile alsomade reference toArticle 27oftheAgreement). Canada, Cuba andHonduras hadnotified
theyhadnosuchprogrammes (G/SCM/N/2 andCorr.1 andaddenda). TheCommittee alsohadreceived
anotification from Singapore pursuant toArticle 27(G/SCM/N/6).
VI. Notification byMembers intransformation intoamarket economy
15. Article29.3providesthatMembersintransformationintoamarketeconomyshallnotifysubsidy
programmes falling within thescope ofArticle 3bytheearliest practicable dateafterthedateofentry
intoforce oftheWTO Agreement. TheCommittee decided atitsregular meeting of13June1995
onanindicative dateof30June1995forthesenotifications. Asof24October 1996, Hungary, Poland
andRomaniahadnotifiedprogrammespursuanttothisprovision(G/SCM/N/9/HUN,G/SCM/N/9/POL
&Corr.1, andG/SCM/N/9/ROM). TheCzech Republic hadnotified thatithadnosuchsubsidy
programmes (G/SCM/N/9/CZE). Noother Member hadsubmitted anotification.G/L/126
Page4
VII. Non-actionable subsidies
16. Notifications. Article 8.3oftheAgreement provides thatasubsidy programme forwhich non-
actionability isinvoked pursuant toArticle 8.2shallbenotified totheCommittee inadvance ofits
implementation. Arecommendation bytheInformal Contact Group ofaformat forinitial notifications
(PC/IPL/11, Annex 1)wasapproved bytheCommittee atitsmeeting of22February 1995. Asof
24October 1996, nosuchnotifications hadbeenmade. Inaddition, theWorking Party onSubsidies
Notifications wasestablished on22February 1995andhasheldfiveformal meetings todatetodiscuss,
inter alia,aformat forupdates ofnon-actionable subsidies. Adraft format wascirculated tothe
Committee on26April 1996 (G/SCM/W/390). Asoftheendofthereview period, noformat had
yetbeenadopted. However, theChairman attheregular meeting oftheCommittee on23October 1996
indicated thathewould consult regarding thedateforanother meeting oftheWorking Party toconsider
thedraftformat.
17. Arbitration. Article 8.5oftheAgreement provides forbinding arbitration incertain cases
relating tonotifications ofnon-actionable subsidies. Theinformal group onprocedures forarbitration
underArticle8.5oftheAgreementhasmetrepeatedlytodiscussproceduresfortheconductofarbitration
under Article 8.5,andapaper containing proposed procedures (G/SCM/W/5) wascirculated tothe
Committee on11May1995. However, noprocedures haveyetbeenadopted.
18. Review oftheoperation ofArticle 8.2(a). Footnote 25toArticle 8.2(a) oftheAgreement
provides that,"[n]ot laterthan18months afterthedateofentry intoforce oftheWTO Agreement,
theCommittee shallreview theoperation oftheprovisions ofparagraph 2(a)withaviewtomaking
allnecessary modifications toimprove theoperation oftheseprovisions. Initsconsideration ofpossible
modifications theCommittee shallcarefully review thedefinitions ofthecategories setforth inthis
subparagraph inthelightoftheexperience ofMembers intheoperation ofresearch programmes and
thework ofother relevant international organizations." Accordingly, theCommittee reviewed the
operation ofthisprovision atitsregular meeting of1-2May1996(G/SCM/M/9, paras. 50-57). Certain
Members observed thatthere hadbeenlimited activity withrespect tosubparagraph 8.2(a) ofthe
Agreement, andinparticular thatnonotifications ofnon-actionable research subsidies hadbeenmade
pursuant toArticle 8.3. Itwasnoted thatabroader review oftheoperation ofArticles 6.1,8and
9oftheAgreement would berequired notlaterthan5July1999 under Article 31oftheAgreement.
TheCommittee tooknoteofthestatements made andconsidered thatforthepresent ithadconcluded
thereview oftheoperation ofsubparagraph 8.2(a) envisioned byfootnote 25oftheAgreement; if
Members sodesired, theCommittee could revert totheissue atafuture date.
VIII. Notifications ofsubsidies linked toprivatization programmes
19. Article 27.13 oftheAgreement provides thatcertain subsidies thataregranted within andare
directlylinkedtoaprivatizationprogrammeofadevelopingcountryMemberandwhicharedulynotified
totheCommittee arenotsubject totheprovisions ofPartIIIoftheAgreement. Aformat forsuch
notificationswasrecommendedbythePreparatoryCommittee(PC/IPL/11)andadoptedbytheCommittee
(G/SCM/M/1, paras 19-20). Brazil made anotification pursuant tothisprovision (G/SCM/N/13/BRA)
andnoted that,while notalloftheinformation required intheformat wasnecessarily included inthe
notification, thiswasbeing presented withaview toproviding basic information ontheBrazilian
privatization programme. Thenotification wasdiscussed attheregular meeting oftheCommittee on
1-2May1996 (G/SCM/M/9, paras. 40-42).
IX. Notification andexamination ofcountervailing dutylawsand/or regulations
20. Intheareaofcountervailing duties, WTO rulesareimplemented through Members 'national
legislation. Pursuant toArticle 32.6oftheAgreement, asamplified byadecision oftheCommittee,G/L/126
Page5
Members withavailable legislation and/or regulations regarding countervailing dutyinvestigations or
reviews covered bytheAgreement should notify thefullandintegrated textoftherelevant legislation
and/or regulations totheCommittee. Ifsuchlegislation and/or regulations donotexistorarenot
available, theMember should inform theCommittee ofthisfactand,inthecaseofnon-availability,
explain thereasons therefor. Inaddition, theCommittee decided, atitsspecial meeting of
22February 1995, thatObserver governments should provide theCommittee withanyinformation
theObserver government considers relevant tomatters within thepurview oftheAgreement, including
thetextofitslawsandregulations regarding countervailing duties, andinformation regarding any
countervailing measures taken bytheObserver government.
21. Asof24October 1996, 80Members2hadnotified theCommittee regarding theirdomestic
countervailing dutylegislation. These notifications canbefound indocument series G/SCM/N/1/....
Forty-five Members hadnot,asyet,made anynotification under Article 32.6oftheAgreement.
Annex Bsetsoutthestatus ofnotifications oflegislation under Article 32.6oftheAgreement. Of
the80Members submitting notifications, 18notified thattheyhadnospecific legislation relating to
countervailing duties, 29notified newlegislation, and35notified pre-WTO legislation stillinforce.
Ofthe53Members notifying nocountervailing legislation orpre-WTO legislation stillinforce, 36
indicated thatnewlegislation isbeing considered ordrafted. Inaddition, 26Members indicated that
theWTO Agreement hasforce oflawintheterritory oftheMember.
22. During theperiod under review, theCommittee continued thework ofreviewing notifications
ofcountervailing dutylawsand/or regulations begun in1995. Inaddition tothelegislations and
notifications without legislative textreviewed during theprevious period, theCommittee reviewed
thenotifications ofcountervailing dutylegislation ofthefollowing Members intwospecial meetings
heldjointly withtheCommittee onAnti-Dumping Practices: Barbados, Bolivia, Colombia, Costa Rica,
Cuba, Ecuador, Iceland, Israel, Jamaica, Japan, Malawi, Malaysia, Norway, Philippines, Romania,
Saint Lucia, Slovenia, South Africa, Thailand, Trinidad &Tobago, Tunisia, Turkey, andZambia.
TheCommittee alsoreviewed thenotifications without legislative textofthefollowing Members:
Botswana, Cyprus, Dominican Republic, ElSalvador, Guatemala, Republic ofGuinea, Honduras,
Indonesia, Maldives, Malta, Morocco, Nicaragua, Pakistan, Paraguay, Poland, SriLanka, Suriname,
Turkey, Uganda, andZimbabwe. Thesubstance ofthereview isreflected inthewritten questions
puttoMembers, andtheirwritten answers. References tothese questions andanswers canbefound
intheminutes ofthejointspecial meetings toreview legislation, G/SCM/M/6 andG/SCM/M/10.
23. AsoftheendofApril 1996, theCommittee hadconducted aninitial review ofalmost all
notifications received todate,infourspecial meetings heldjointly withtheCommittee onAnti-Dumping
Practices. TheCommittee therefore decided thatfortheimmediate future, jointspecial meetings to
review legislation were nolonger needed, andthecontinued review oflegislation would takeplace
inthecontext ofregular Committee meetings. TheCommittee adopted procedures forthecontinued
review oflegislation (G/SCM/W/293), based onaprocess ofwritten questions andanswers, tofacilitate
productive discussions during thecontinued review oflegislations. Review ofnewandamended
legislationswouldfollowthesameproceduresusedduringthejointspecialmeetingstoreviewlegislation.
References tothequestions andanswers submitted regarding continued review ofnotifications of
legislation canbefound intheminutes oftheregular meeting oftheCommittee (G/SCM/M/12).
24. Asoftheendoftheperiod under review, asignificant number ofthewritten questions put
toMembers during thecourse ofthelegislative review meetings remained unanswered. Nonetheless,
theChairman observed theprogress thathadbeenmade inthereview process (G/SCM/M/7, para.
30).Questions puttoMembers ranged fromthose regarding general, policy matters toveryspecific
2TheECiscounted assixteen Members.G/L/126
Page6
andhighlytechnicalquestionsofnationaladministrationofcountervailingmeasures.Amongtheconcerns
raised byMembers were perceived inconsistencies between theAgreement andbothnewly-enacted
legislation andlegislation enacted priortotheentry intoforceoftheAgreement. Inaddition, Members
expressed concern regarding thepotential foractions inconsistent withtheAgreement ifsuchactions
arebased onlegislation enacted prior totheentry intoforce oftheAgreement. Another concern was
thecomplexity oftheprocedural andsubstantive requirements oftheAgreement, andtheneedfor
significant training andeducation, particularly fornewusersofcountervailing measures anddeveloping
countries, toensure thatactions were taken consistently withtheAgreement.
X. Semi-annual reports oncountervailing actions
25. Article 25.11 oftheAgreement provides thatMembers shallsubmit, onasemi-annual basis,
reports oncountervailing dutyactions taken within thepreceding sixmonths. Pursuant tothe
recommendation oftheInformal Contact Group (PC/IPL/11, Annex 7),which wasadopted bythe
Committee atits22February 1995meeting (G/SCM/M/1, paras. 19-20), thefirstsemi-annual report
submitted byeachWTO Member would cover theperiod July-December orJanuary-June, whichever
wasmore recent, preceding thedateofentry intoforce oftheWTO Agreement forthatMember.
Inaddition, Members taking noaction during agiven period arerequested tosonotify theCommittee.
26. Guidelines forinformation tobeprovided insemi-annual reports submitted pursuant to
Article 25.11 arecontained indocument G/SCM/2. Submission ofsemi-annual reports byMembers
known tobeusers ofcountervailing measures hasimproved since early 1995. Asignificant number
ofMembers havenever filedasemi-annual report, however. While many ifnotmostoftheseMembers
arebelieved nottobeactive users ofcountervailing measures, intheabsence ofsemi-annual reports,
thesituation remains uncertain. TheCommittee reviewed thenotifications ofaction fortheperiods
1July-31December 1995 and1January -30June 1996 atitsregular meetings inMay and
October1996.InadditiontospecificquestionsraisedconcerningtheactionstakenbyMembers,concern
wasexpressed overthelackofnotifications, andthefactthatnotifications often didnotfollow the
format setforthintheguidelines. Thecomments ofMembers arereflected intheminutes oftheregular
meeting of1-2May1996 (G/SCM/M/9, para. 33).
27. Notificationsfor1July-31December1995.Asof24October1996,eightMembershadnotified
actions taken during theperiod 1July-31 December 1995. Forty-six Members hadnotified the
Committee thattheyhadnottaken anycountervailing dutyaction during thisperiod. Approximately
halfofWTO Members hadnotsubmitted anotification. Thesemi-annual reports werecirculated in
document series G/SCM/N/12. Thestatus ofsemi-annual reports issetoutinAnnex C.
28. Notifications for1January -30June1996. Asof24October 1996, nineMembers hadnotified
actions taken during theperiod 1January-30 June1996. Thirty-nine Members hadnotified the
Committee thattheyhadnottaken anycountervailing dutyaction during thisperiod (G/SCM/N/19
andaddenda). Approximately two-thirds ofWTO Members hadnotsubmitted anotification. The
semi-annual reports werecirculated indocument series G/SCM/N/19. Thestatus ofsemi-annual reports
issetoutinAnnex C.
29. Atablesummarising notifications ofcountervailing actions taken byMembers during theperiod
1July1995-30 June1996 isreproduced inAnnex DtothisReport.
XI. Reports onallpreliminary orfinalcountervailing dutyactions
30. Pursuant toArticle 25.11 oftheAgreement, Members aretoreport without delay tothe
Committee allpreliminary andfinalcountervailing actions taken. Guidelines fortheinformation to
becontained inthese reports aresetforthinG/SCM/3. Asof24October 1996, reports ofpreliminaryG/L/126
Page7
andfinalcountervailing actions during theperiod under consideration werereceived fromArgentina,
Australia, Brazil, Canada, CôteD'Ivoire, theEC,Mexico, NewZealand, Peru, andtheUnited States.
(G/SCM/N/14, 15,17,and20).While such reports areregularly submitted bysome users of
countervailing measures, anumber ofMembers known tohavetaken preliminary andfinalactions
have notreported those actions without delay totheCommittee. TheCommittee reviewed the
notifications ofpreliminary andfinalactions atitsregular meetings inMayandOctober 1996. During
these reviews, theChairman expressed theviewthatcompliance withthisnotification hadnotbeen
fullyadequate (G/SCM/M/5, para.7).
XII. Other matters discussed bytheCommittee
31. Notification ofCompetent Authorities. Atitsregular meeting on1-2May1996, theCommittee
decided torequest members tonotify thename, address, telephone andfaxnumber, andelectronic
mailaddress where available, oftheirauthorities competent toinitiate andconduct countervailing duty
investigations. Thisnotification would bemade once, subject toupdating orcorrecting notifications
should therelevant information ofanyMember change. Thelistcontaining theinformation notified
byMembers ismaintained bytheSecretariat andcirculated inaddenda todocument G/SCM/N/18.
Asof24October 1996, thefollowing Members hadnotified relevant information totheSecretariat:
Argentina, Australia, Bolivia, Brazil, Canada, Chile, EC,Guatemala, Hong Kong, Hungary, Iceland,
Israel, Jamaica, Kenya, Korea, Malaysia, Mauritius, Mexico, NewZealand, Norway, Peru, Romania,
Singapore, Slovenia, Switzerland, Thailand, Turkey, Uganda, United States, Venezuela andZambia.
AttheCommittee 'sregular meeting inOctober, itwasproposed thattheCommittee askMembers
tonotify, separately fromtheirnotifications oflegislation and/or regulations, theirdomestic procedures
fortheconduct ofcountervailing dutyinvestigations.
32. Procedures forpreparation andadoption ofAnnual Report. Atitsregular meeting on1-
2May1996, theCommittee considered theprocedures forthepreparation andadoption ofitsAnnual
Report adopted atitsfirstmeeting inFebruary 1995, inlightofsuggestions from theChairman of
theGeneral Council. TheCommittee decided thattheSecretariat should prepare adraftReport in
thesame format ashadbeenusedintheprevious year'sReport, incorporating fromthatReport those
aspects ofimplementation thatwould helpexplain theprogress thattheCommittee hadmade. The
draftReport would becirculated toMembers attheendofSeptember orinearly October, atwhich
timetheCommittee would havetodecide whether itshould meetinformally inadvance oftheregular
October meeting todiscuss anyadditional matters forinclusion intheReport.
33. Status ofMembers inAnnex VII.TheChairman informed theCommittee that,according to
datainthe1996 World Bank Atlas, theGNP percapita perannum ofthree Members identified in
Annex VII(b) oftheAgreement (theDominican Republic, Guatemala, andMorocco) nowexceeded
$1000. Inaddition, theCommittee discussed thestatus ofHonduras, which isnotidentified in
Annex VII.TheChairman noted thatHonduras wasanoriginal Member oftheWTO, having signed
theWTO Agreement atMarrakesh inApril 1994, andhadaGNP percapita perannum ofwellunder
$1000.Nevertheless,HondurashadnotbeenincludedinAnnexVII.AfterdiscussionintheCommittee,
theChairman stated thathewould consult informally regarding thissituation.
XIII. Concluding observations
34. TheCommittee considered that,ingeneral, goodprogress hadbeenmade inthefirsttwoyears
inimplementing theAgreement. However, theCommittee considered thatmuch remained tobedone,
andthatadditional efforts from Members were required inorder toachieve fullimplementation of
theAgreement.G/L/126
Page8
35. TheCommittee observed thatoneareawhere implementation wasinadequate wasnotifications.
Fulltransparency wasessential toensure substantive implementation oftheAgreement. Every effort
wasrequired inorder thatallMembers submitted fullandcomplete notifications onatimely basis.
While theachievement ofthisgoaldepended primarily ontheefforts ofindividual Members, the
Committee could examine steps thatmight betaken toimprove compliance by,interalia,informing
concerned governments ofcompliance problems, examining waystostreamline thenotification process,
andassisting developing country Members tomeettheirnotification obligations.
36. TheCommittee noted thatthere wereanumber ofoutstanding tasks confronting it.Among
thesewerethedevelopment ofaformat forupdate notifications pursuant toArticle 8.3,thefinalization
ofprocedures forarbitration regarding non-actionable subsidies under Article 8.5,theapproval of
rulesofprocedure forthePermanent Group ofExperts, andthecompletion ofthework oftheInformal
Group ofExperts established toexamine thematters referred toinfootnote 62toAnnex IVofthe
Agreement. TheCommittee considered thatcompletion ofthesetaskswasimportant andthatMembers
should make every effort toward thatend. TheCommittee recalled that,while ithadforthepresent
concluded thereview oftheoperation ofArticle 8.2(a) required byfootnote 25oftheAgreement, a
broader review oftheoperation ofArticles 6.1,8and9would berequired notlaterthan5July1999
under Article 31oftheAgreement. TheCommittee alsoobserved thattheprovisions ofArticle 8.3
hadnotbeenusedbyMembers, andthatitmight usefully consider thissituation, taking intoaccount
theobligations oftheAgreement.
37. TheCommittee observed thatamong itsmajor tasksduring thefirsttwoyears oftheAgreement
hadbeen toreview thedomestic countervailing legislations andsubsidy programmes notified by
Members. Thereview exercises indicated thatimplementation inthisregard waslessthancomplete.
NotallMembers thatarecurrent orpotential users ofcountervailing measures hadcompleted the
domestic legislative processes toincorporate therelevant requirements oftheAgreement. Thus, further
efforts were required inorder toensure substantive implementation oftheAgreement. Inaddition,
during thespecial meetings toreview notifications avariety ofissues wereraised regarding theWTO-
consistency ofnotified legislations, programmes andmeasures. Themeetings provided Members with
anopportunity toseekclarification ofissues arising outofother Members 'legislation. Generally,
Members wereabletoclarify theissues raised. BothMembers notifying legislation andthosesubmitting
questions generally found theprocess helpful andwished tocontinue thiswork intheCommittee.
TheCommittee viewed itasextremely important thatMembers carefully consider allquestions posed,
comments made andreplies provided inthecontext ofthese review sessions.
38. TheCommittee noted thattheprocedural andsubstantive provisions ofthenewAgreement
weredetailedandthatitsimplementationrequiredsubstantialexpertiseandthecommitmentofsubstantial
resources byMembers. TheCommittee considered thatmaximum efforts should bemade toassist
Members, andinparticular developing country Members, toachieve fullimplementation ofthe
Agreement.G/L/126
Page9
ANNEX A
SUBSIDY NOTIFICATIONS
(G/SCM/N/3/...)
Member Member Member Member
Antigua &Barbuda Germany X Kuwait Sierra Leone
Argentina X Greece X Lesotho Singapore X
Australia X Ireland X Liechtenstein nil Slovak Republic X
Bahrain Italy X Macau Slovenia X
Bangladesh Luxembourg X Madagascar Solomon Islands
Barbados Netherlands X Malawi South Africa
Belize Portugal X Malaysia X SriLanka X
Benin Spain X Maldives Suriname nil
Bolivia nil Sweden X Mali Swaziland nil
Botswana nil United Kingdom X Malta Switzerland X
Brazil X Ecuador Mauritania Tanzania
Brunei Darussalam Egypt Mauritius nil Thailand X
Burkina Faso ElSalvador Mexico X Togo
Burundi Fiji Morocco nil Trinidad &Tobago nil
Cameroon Gabon Mozambique Tunisia
Canada X Gambia n.a Myanmar Turkey X
Central African R. Ghana nil Namibia Uganda nil
Chad n.a. Grenada NewZealand nil United Arab
Emirates
Chile X Guatemala Nicaragua nil United States X
Colombia X Guinea Bissau Nigeria X Uruguay
Costa Rica X Guinea, Rep. of Norway X Venezuela X
Côted'Ivoire nil Guyana Pakistan X Zambia nil
Cuba Haiti Papua NewGuinea Zimbabwe
Cyprus Honduras nil Paraguay
Czech Republic X Hong Kong nil Peru nil
Djibouti Hungary X Philippines X
Dominica Iceland X Poland
Dominican Rep. nil India X Qatar
EC X Indonesia X Romania X
Austria X Israel Rwanda
Belgium X Jamaica St.Kitts&Nevis
Denmark X Japan X St.Lucia
Finland X Kenya St.Vincent &
Grenadines
France X Korea X Senegal
"Nil" means thattheMember hasindicated thatitmaintains nonotifiable subsidiesG/L/126
Page10
ANNEX B
COUNTERVAILING DUTY LEGISLATION NOTIFICATIONS
MEMBER/OBSERVER NOTIFICATION PROVIDED
Antigua andBarbuda
Argentina G/SCM/N/1/ARG/1 +Suppl.1
Australia G/SCM/N/1/AUS/1 +Suppl.1
Bahrain
Bangladesh
Barbados G/SCM/N/1/BRB/1
Belize
Benin
Bolivia G/SCM/N/1/BOL/1 +Suppl.1
Botswana
Brazil G/SCM/N/1/BRA/1 +Suppl.1
Brunei Darussalam
Burkina Faso
Burundi
Cameroon
Canada G/SCM/N/1/CAN/2
Central African Republic
Chad
Chile G/SCM/N/1/CHL/1
Colombia G/SCM/N/1/COL/1
Costa Rica G/SCM/N/1/CRI/1
Côted'Ivoire
Cuba G/SCM/N/1/CUB/1 +Suppl.1
Cyprus G/SCM/N/1/CYP/2
Czech Republic G/SCM/N/1/CZE/1
Djibouti
Dominica
Dominican Republic G/SCM/N/1/DOM/1
European Communities G/SCM/N/1/EEC/1G/L/126
Page11
MEMBER/OBSERVER NOTIFICATION PROVIDED
Ecuador G/SCM/N/1/ECU/1
Egypt G/SCM/N/1/EGY/1
ElSalvador G/SCM/N/1/SLV/1
Fiji
Gabon
Gambia
Ghana
Grenada
Guatemala G/SCM/N/1/GTM/2
Guinea Bissau
Guinea, Rep.of G/SCM/N/1/GIN/1
Guyana
Haiti
Honduras G/SCM/N/1/HND/2
Hong Kong G/SCM/N/1/HKG/1
Hungary G/SCM/N/1/HUN/1
Iceland G/SCM/N/1/ISL/1
India G/SCM/N/1/IND/2 +Corr.1 +Suppl.1
Indonesia G/SCM/N/1/IDN/2
Israel G/SCM/N/1/ISR/2
Jamaica G/SCM/N/1/JAM/1
Japan G/SCM/N/1/JPN/2 +Corr.1 &2+Suppl.1
Kenya G/SCM/N/1/KEN/1
Korea G/SCM/N/1/KOR/1 +Corr.1 &2
Kuwait
Lesotho
Liechtenstein
Macau
Madagascar
Malawi G/SCM/N/1/MWI/1
Malaysia G/SCM/N/1/MYS/1G/L/126
Page12
MEMBER/OBSERVER NOTIFICATION PROVIDED
Maldives G/SCM/N/1/MDV/1
Mali
Malta G/SCM/N/1/MLT/1
Mauritania
Mauritius G/SCM/N/1MUS/2
Mexico G/SCM/N/1/MEX/1 +Corr.1
Morocco G/SCM/N/1/MAR/1
Mozambique
Myanmar
Namibia
NewZealand G/SCM/N/1/NZL/2
Nicaragua G/SCM/N/1/NIC/1
Nigeria
Norway G/SCM/N/1/NOR/3
Pakistan G/SCM/N/1/PAK/1
Papua NewGuinea
Paraguay G/SCM/N/1/PRY/1
Peru G/SCM/N/1/PER/1 +Corr.1 +Suppl.1
Philippines G/SCM/N/1/PHL/1
Poland G/SCM/N/1/POL/1
Qatar
Romania G/SCM/N/1/ROM/1
Rwanda
Saint Kitts&Nevis
Saint Lucia G/SCM/N/1/LCA/1
Saint Vincent &Grenadines
Senegal G/SCM/N/1/SEN/1
Sierra Leone
Singapore G/SCM/N/1/SGP/1
Slovak Republic G/SCM/N/1/SVK/1
Slovenia G/SCM/N/1/SVN/1G/L/126
Page13
MEMBER/OBSERVER NOTIFICATION PROVIDED
Solomon Islands
South Africa G/SCM/N/1/ZAF/1
SriLanka G/SCM/N/1/LKA/1
Suriname G/SCM/N/1/SUR/1
Swaziland
Switzerland G/SCM/N/1/CHE/1
Tanzania
Thailand G/SCM/N/1/THA/2 +Corr.1
Togo
Trinidad andTobago G/SCM/N/1/TTO/1
Tunisia G/SCM/N/1/TUN/1
Turkey G/SCM/N/1/TUR/2
Uganda G/SCM/N/1/UGA/2
United Arab Emirates
United States G/SCM/N/1/USA/1 +Corr.1 +Suppl.1
Uruguay G/SCM/N/1/URY/1
Venezuela G/SCM/N/1/VEN/1 +Suppl.1 &2
Zambia G/SCM/N/1/ZMB/1
Zimbabwe G/SCM/N/1/ZWE/2G/L/126
Page14
ANNEX C
SEMI-ANNUAL REPORTS
Key: X=Semi-annual report ofactions taken submitted
N=Report ofnoactions taken submitted
notapplicable =obligation didnotapply toMember forthatperiod
blank =Noreport submitted
MEMBER 1July-31 December 1995 1January-30 June 1996
Antigua andBarbuda
Argentina X X
Australia X X
Bahrain
Bangladesh
Barbados N
Belize
Benin
Bolivia N
Botswana N N
Brazil X X
Brunei Darussalam
Burkina Faso
Burundi
Cameroon
Canada X X
Central African Republic
Chad notapplicable
Chile N N
Colombia N N
Costa Rica N
Côted'Ivoire
Cuba N N
Cyprus NG/L/126
Page15
MEMBER 1July-31 December 1995 1January-30 June 1996
Czech Republic N N
Djibouti
Dominica
Dominican Republic N N
European Communities3X X
Ecuador
Egypt N N
ElSalvador
Fiji
Gabon
Gambia notapplicable
Ghana
Grenada
Guatemala
Guinea Bissau
Guinea, Republic of
Guyana
Haiti
Honduras N
Hong Kong N N
Hungary N N
Iceland N N
India N N
Indonesia N N
Israel X N
Jamaica
Japan N N
Kenya
Korea N N
3TheECiscounted as1Member.G/L/126
Page16
MEMBER 1July-31 December 1995 1January-30 June 1996
Kuwait N
Lesotho
Liechtenstein
Macau
Madagascar
Malawi
Malaysia N N
Maldives
Mali
Malta N N
Mauritania
Mauritius N
Mexico X X
Morocco N N
Mozambique
Myanmar
Namibia
NewZealand X X
Nicaragua
Nigeria
Norway N N
Pakistan N N
Papua NewGuinea
Paraguay N N
Peru X N
Philippines N N
Poland N
Qatar
Romania N N
Rwanda
Saint Kitts&NevisG/L/126
Page17
MEMBER 1July-31 December 1995 1January-30 June 1996
Saint Lucia N
Saint Vincent &
Grenadines
Senegal N N
Sierra Leone
Singapore N N
Slovak Republic N N
Slovenia N N
Solomon Islands notapplicable
South Africa N
SriLanka N N
Suriname
Swaziland N
Switzerland N N
Tanzania
Thailand N N
Togo
Trinidad andTobago N
Tunisia N N
Turkey N N
Uganda N
United Arab Emirates N
United States X X
Uruguay N N
Venezuela N N
Zambia N N
Zimbabwe NG/L/126
Page18ANNEX D*
Summary ofCountervailing Duty Actions
(1July1995-30 June1996)
Initiation Provisional
Measures
(negative preliminary determination not
included)Definitive
DutiesPrice
UndertakingsMeasures
inforce on
30June1996
(definitive
duties and
price
undertakings)
No. Countries1involved No. Countries involved No. Countries involved No. Countries involved
ARGENTINA
0 0 1 EEC(1) 0 1
AUSTRALIA
1 GBR (1) 0 0 0 13
BRAZIL
0 6 CIV(1) IDN(1) LKA(2) 0 7
MYS(1) PHL(1)
*Includes actions covered bytheTokyo Round Agreement, theWTO Agreement andArticle VIofGATT 1947.
1"Countries" refer inallcases tocountries orcustoms territories. Alistoftheabbreviations usedinthistable canbefound following thetable.G/L/126
Page19Initiation Provisional
Measures
(negative preliminary determination not
included)Definitive
DutiesPrice
UndertakingsMeasures
inforce on
30June1996
(definitive
duties and
price
undertakings)
No. Countries1involved No. Countries involved No. Countries involved No. Countries involved
CANADA
1 ITA(1) 2 EEC(1) ITA(1) 1 EEC(1) 0 6
EEC
0 0 0 3
ISRAEL
2 EEC(1) ITA(1) 0 0 0 0
MEXICO
0 7 BRA(4) VEN(3) 5 CAN(1) USA(1) VEN(3) 13
NEW ZEALAND
2 ITA(2) 0 0 0 1G/L/126
Page20Initiation Provisional
Measures
(negative preliminary determination not
included)Definitive
DutiesPrice
UndertakingsMeasures
inforce on
30June1996
(definitive
duties and
price
undertakings)
No. Countries1involved No. Countries involved No. Countries involved No. Countries involved
PERU
0 0 1 ARG(1) 0 0
UNITED STATES
1 CAN(1) 2 ITA(1) TUR(1) 2 ITA(1) TUR(1) 0 65
VENEZUELA
0 0 0 0 3G/L/126
Page21
LIST OFABBREVIATIONS USED INANNEX D
AFG AFGHANISTAN
ALB ALBANIA
DZA ALGERIA
ATG ANTIGUA AND
BARBUDA
ARG ARGENTINA
ARM ARMENIA
AUS AUSTRALIA
AUT AUSTRIA
AZE AZERBAIJAN
BHS BAHAMAS
BHR BAHRAIN
BGD BANGLADESH
BRB BARBADOS
BLR BELARUS
BEL BELGIUM
BLZ BELIZE
BEN BENIN
BMU BERMUDA
BOL BOLIVIA
BIH BOSNIA-HERZEGOVINA
BWA BOTSWANA
BRA BRAZIL
BRN BRUNEI DARUSSALAM
BGR BULGARIA
BFA BURKINA FASO
BUR BURUNDI
CMR CAMEROON
CAN CANADA
CAF CENTRAL AFRICAN
REPUBLIC
TCD CHAD
CHL CHILE
CHN CHINA
CHT CHINESE TAIPEI
COG CONGO, REPUBLIC
COL COLOMBIA
CRI COSTA RICA
CIV COTE D'IVOIRE
HRV CROATIA
CUB CUBA
CYP CYPRUS
CZE CZECH REPUBLIC
DNK DENMARK
DJI DJIBOUTI
DMA DOMINICA
DOM DOMINICAN REPUBLIC
EEC EUROPEANCOMMUNITY
ECU ECUADOR
EGY EGYPT
SLV ELSALVADOR
EST ESTONIA
FJI FIJI
FIN FINLAND
FRA FRANCE
MKD FORMER YUGOSLAV
REPUBLIC OF
MACEDONIA
GAB GABON
GMB GAMBIA
GEO GEORGIA
DEU GERMANY
GHA GHANA
GRC GREECEGRD GRENADA
GTM GUATEMALA
GNB GUINEA-BISSAU
GIN GUINEA, REP. OF
GUY GUYANA
HTI HAITI
HND HONDURAS
HKG HONG KONG
HUN HUNGARY
ISL ICELAND
IND INDIA
IDN INDONESIA
IRN IRAN
IRQ IRAQ
IRL IRELAND
ISR ISRAEL
ITA ITALY
JAM JAMAICA
JPN JAPAN
JOR JORDAN
KAZ KAZAKHSTAN
KEN KENYA
KOR KOREA
KWT KUWAIT
KGZ KYRGYZSTAN
LVA LATVIA
LBN LEBANON
LSO LESOTHO
LIE LIECHTENSTEIN
LTU LITHUANIA
LUX LUXEMBOURG
MAC MACAU
MDG MADAGASCAR
MWI MALAWI
MYS MALAYSIA
MDV MALDIVES
MLI MALI
MLT MALTA
MRT MAURITANIA
MUS MAURITIUS
MEX MEXICO
MDA MOLDOVA, REP. OF
MNG MONGOLIA
MAR MOROCCO
MOZ MOZAMBIQUE
NAM NAMIBIA
NLD NETHLANDS
NZL NEW ZEALAND
NIC NICARAGUA
NER NIGER
NGA NIGERIA
NOR NORWAY
OMN OMAN
PAK PAKISTAN
PAN PANAMA
PNG PAPUA NEW GUINEA
PRY PARAGUAY
PER PERU
PHL PHILIPPINES
POL POLAND
PRT PORTUGAL
PRI PUERTO RICO
QUT QATAR
ROM ROMANIARUS RUSSIAN FEDERATION
RWA RWANDA
KNA SAINT KITTS &NEVIS
LCA SAINT LUCIA
SAU SAUDI ARABIA
SEN SENEGAL
SYC SEYCHELLES
SLE SIERRA LEONE
SGP SINGAPORE
SVK SLOVAK REPUBLIC
SVN SLOVENIA
ZAF SOUTH AFRICA
ESP SPAIN
LKA SRILANKA
VCT SAINT VINCENT &
GRENADINES
SDN SUDAN
SUR SURINAME
SWE SWEDEN
CHE SWITZERLAND
TJK TAJIKISTAN
TZA TANZANIA
THA THAILAND
TGO TOGO
TTO TRINIDAD &TOBAGO
TUN TUNISIA
TUR TURKEY
TKM TURKMENISTAN
UGA UGANDA
UKR UKRAINE
ARE UNITEDARABEMIRATES
GBR UNITED KINGDOM
USA UNITED STATES
URY URUGUAY
UZB UZBEKISTAN
VUT VANUATU
VEN VENEZUELA
VNM VIET NAM
ZAR ZAIRE
ZMB ZAMBIA
ZWE ZIMBABWESECTION XII
COMMITTEE ONIMPORT LICENSINGWORLD TRADE G/L/127
30October 1996
ORGANIZATION(96-4564)
Committee onImport Licensing
REPORT OFTHE COMMITTEE ONIMPORT LICENSING
A. Background
1. TheAgreement onImport Licensing Procedures (theAgreement) entered intoforce on
1January 1995. Thisreport, drawn upinaccordance withthestatement made bytheChairman of
theGeneral Council atitsmeeting on16April 1996 withregard to"Reporting Procedures forthe
Singapore Ministerial Conference" (WT/L/145), addresses thework undertaken bytheCommittee on
Import Licensing (theCommittee) during 1995 and1996 inrespect oftheimplementation ofthe
Agreement.
2. TheAgreementestablishesdisciplinesontheusersofimportlicensingsystemswiththeprincipal
objective ofensuring thattheprocedures applied forgranting import licences donotinthemselves
restrict trade. Itaimstosimplify, clarify andminimize theadministrative requirements necessary to
obtain import licences.
3. During theperiod under consideration, theCommittee heldfourmeetings on3Mayand
12October 1995, andon8March and 23October 1996 (G/LIC/M/1-4). Itelected
Mr.Calson Mbegabolawe (Zimbabwe) asChairman andMr.JanMichalek (Poland) asVice-Chairman
for1995, andre-elected them for1996.
4. Participation intheCommittee isopentoallMembers oftheWTO. Governments granted
observer status bytheWTO General Council aswellastherepresentatives oftheIMF, UNCTAD
andtheWorld Bank attended meetings oftheCommittee asobservers.
5. Atitsmeeting on12October 1995, theCommittee adopted itsRules ofProcedure which were
subsequently approved bytheCouncil forTrade inGoods.
B. Implementation oftheAgreement
6. During theperiod covered, theCommittee adopted procedures fornotification andreviews
under theAgreement. Asconcerns theannual notifications provided forinArticle 7.3,itagreed on
revisions totheQuestionnaire onImport Licensing Procedures andestablished atime-limit of
30September tosubmit these notifications (G/LIC/M/2).
7. Todate,30Members (theEuropean Communities anditsmember States counted asone)have
notified theirlegislation and/or publications pursuant toArticles 1.4(a) and/or 8.2(b) oftheAgreement;
29Members havesubmitted replies totheQuestionnaire onImport Licensing Procedures pursuant
toArticle 7.3;eightMembers havenotified theinstitution ofimport licensing procedures orchanges
therein pursuant toArticle 5.TheChairman oftheCommittee repeatedly expressed concern thatmany
Members havenotyetcomplied withthemandatory notification requirements ofArticles 1.4(a), 8.2(b)
and7.3,andurged those Members which havenotyetdonesotosubmit theirnotifications without
further delay. Members which donotapply import licensing procedures orhavenolawsorregulations
relevant totheAgreement werealsorequested tonotify theCommittee ofthisfactsothatacomplete
picture canbeobtained. TheAnnex reflects thecurrent status ofnotifications.G/L/127
Page2
8. Under Articles 1.4(a) and/or 8.2(b) oftheAgreement, theCommittee received notifications
oflawsandregulationsrelevanttoimportlicensingapplicableinArgentina,Australia,Barbados,Canada,
Chile,Colombia,CostaRica,Cuba,Cyprus,theEuropeanCommunities,HongKong,Hungary,Jamaica,
Japan, Malta, Mauritius, Morocco, New Zealand, Nicaragua, Norway, Pakistan, Peru, Romania,
Singapore, Swaziland, Turkey, Uganda, United States, Uruguay andZimbabwe.
9. Under Article 7.3oftheAgreement, theCommittee received replies totheQuestionnaire on
Import Licensing Procedures fromArgentina, Australia, Barbados, Bolivia, Canada, Chile, Colombia,
Costa Rica, Cyprus, Ecuador, Hong Kong, Hungary, India, Japan, Korea, Malta, Mauritius, Morocco,
NewZealand, Nigeria, Norway, Peru, Philippines, Romania, Singapore, Trinidad andTobago, Turkey,
Uruguay andtheUnited States.
10. TheCommittee further received notifications relating totheinstitution ofimport licensing
procedures orchanges inthese procedures submitted byArgentina, theEuropean Communities,
Hong Kong, Japan, Malaysia, Nigeria, Pakistan andRomania.
11. TheCommittee tooknoteoftheinvocation oftheprovisions offootnote 5toArticle 2.2by
24developing country Members. Thisinvocation enables developing countries which werenotParties
totheTokyoRoundAgreementonImportLicensingProcedurestodelaytheapplicationoftheprovisions
ofsubparagraphs 2.2(a)(ii) and(a)(iii) linked toautomatic import licensing bynotmore thantwoyears
from thedateofWTO Membership.
12. Asconcerns substantive issues arising fromnotifications ofimport licensing procedures which
could beraised byMembers, theCommittee reached anunderstanding onreview procedures ingeneral
withaviewtofacilitating andspeeding upthereview ofnotifications andminimizing anydelays in
providing clarifications orresponses tosuchqueries concerning notifications (G/LIC/4).
13. TheCommittee agreed thatallimport licensing procedures thatfallunder thisAgreement should
benotified totheCommittee onImport Licensing (G/LIC/M/2, paragraphs 21-23).
14. TheCommittee tooknoteofarequest bytheUnited States, Guatemala, Honduras andMexico
forconsultations withtheEuropean Communities under, interalia,theAgreement onImport Licensing
Procedures,concerningtheECregimefortheimportation,saleanddistributionofbananas(G/LIC/M/2).
15. TheCommittee alsotooknoteofaDecision bytheGeneral Council onthe"Avoidance of
Procedural andInstitutional Duplication" (WT/L/29).
16. TheCommittee conducted itsfirstbiennial review oftheimplementation andoperation ofthe
Agreement under Article 7.1onthebasisofafactual report prepared bytheSecretariat (G/LIC/5 and
G/LIC/M/4).
C. Conclusions andRecommendations
17. Asregards theimplementation oftheAgreement, theCommittee established itsRules of
Procedure, agreed onprocedures fornotification andbiennial reviews, reached anunderstanding on
review procedures ingeneral todealwithqueries byMembers inrespect ofnotifications, andreceived
notifications oflaws, regulations andimport licensing procedures fromsome Members. Theoverall
compliance withnotification obligations hasnotbeensatisfactory.
18. TheCommittee recognizing theimportance ofnotifications fortheeffective implementation
andfunctioning oftheAgreement, andnoting thepaucity ofmandatory notifications received sofar,
recommends adherence byMembers tothese obligations.G/L/127
Page3
ANNEX
(i) Notifications oflegislation and/or publications (Articles 1.4(a) and/or 8.2(b)) received from:
(30)(G/LIC/N/1/- series)
Argentina
Australia
Barbados
Canada
Chile
Colombia
Costa Rica
Cuba
Cyprus
ECHong Kong
Hungary
Jamaica
Japan
Malta
Mauritius
Morocco
NewZealand
Nicaragua
NorwayPakistan
Peru
Romania
Singapore
Swaziland
Turkey
Uganda
United States
Uruguay
Zimbabwe
(ii) Replies totheQuestionnaire onImport Licensing Procedures (Article 7.3)received from:
(29)(G/LIC/N/3/- series)
Argentina
Australia
Barbados
Bolivia
Canada
Chile
Colombia
Costa Rica
Cyprus
EcuadorHong Kong
Hungary
India
Japan
Korea
Malta
Mauritius
Morocco
NewZealand
NigeriaNorway
Peru
Philippines
Romania
Singapore
Trinidad &Tobago
Turkey
United States
Uruguay
(iii) Notifications ofinstitution ofimport licensing procedures orchanges therein (Article 5)received
from: (8)(G/LIC/N/2/- series)
Argentina
EC
Hong Kong
JapanMalaysia
Nigeria
Pakistan
Romania
(iv) Developingcountrieswhichhaveinvokedthetwo-yeardelayedapplicationprovisions(footnote5
toArticle 2.2): (24)(G/LIC/1 andAdds.1-3)
Bangladesh (asfrom 1.1.95) Dominican Republic (9.3.95) Myanmar (1.1.95)
Bolivia (13.9.95) ElSalvador (7.5.95) SriLanka (1.1.95)
Brazil (1.1.95) Gabon (1.1.95) Thailand (1.1.95)
Burkina Faso(3.6.95) Guatemala (21.7.95) Tunisia (29.3.95)
Cameroon (13.12.95) Honduras (1.1.95) Turkey (26.3.95)
Colombia (30.4.95) Indonesia (1.1.95) UnitedArabEmirates(10.4.96)
Costa Rica(1.1.95) Kenya (1.1.95) Uruguay (1.1.95)
Côted'Ivoire (1.1.95) Malaysia (1.1.95) Venezuela (1.1.95)SECTION XIII
WORKING PARTY ONSTATE TRADING ENTERPRISESWORLD TRADE G/L/128
28October 1996
ORGANIZATION(96-4496)
REPORT (1996) OFTHE WORKING PARTY ON
STATE TRADING ENTERPRISES
I. Organization ofthework oftheWorking Party
1. TheWorking Party onState Trading Enterprises wasestablished bytheCouncil forTrade
inGoods atitsmeeting on20February 1995 pursuant toparagraph 5oftheUnderstanding onthe
Interpretation ofArticle XVII oftheGeneral Agreement onTariffs andTrade 1994 (hereinafter "the
Understanding"). Membership oftheWorking Party isopentoallMembers indicating theirwishto
serve onit.Observer governments intheGeneral Council oftheWTO haveobserver status inthe
Working Party. During theperiod under review, Mr.Peter May(Australia) served asChairman of
theWorking Party.
2. Themandate oftheWorking Party, assetoutinparagraph 5oftheUnderstanding, is:(1)to
review notifications andcounter-notifications onstatetrading; (2)toreview, inthelightofthe
notifications received, theadequacy ofthequestionnaire onstatetrading (BISD 9S/184-185) andthe
coverage ofstatetrading enterprises notified under paragraph 1oftheUnderstanding; and(3)todevelop
anillustrative listshowing thekinds ofrelationships between governments andenterprises, andthe
kinds ofactivities, engaged inbythese enterprises, which mayberelevant forthepurposes of
Article XVII.
3. Thisreport issubmitted under paragraph 5oftheUnderstanding. Itsetsouttheactivities
oftheWorking Party during theperiod under review (December 1995 -October 1996).
4. Participants intheWorking Party'smeetings todateare:Argentina, Australia, Bangladesh,
Brazil, Brunei Darussalam, Canada, Chile, Colombia, Costa Rica, Cuba, Cyprus, Czech Republic,
Egypt, ElSalvador, European Communities andtheirmember States, Hong Kong, Honduras, Hungary,
India, Indonesia, Israel, Japan, Korea, Malaysia, Malta, Mauritius, Mexico, Morocco, NewZealand,
Norway, Pakistan, Peru, Philippines, Poland, Romania, Singapore, Slovak Republic, South Africa,
Switzerland,Thailand,Turkey,UnitedStates,Uruguay,VenezuelaandZambia.China,ChineseTaipei,
Russian Federation andVietnam participated asobservers.
5. TheWorking Party held four formal meetings during theperiod under review: on
20February1996,27June1996,26September1996and24October1996.TheMinutesoftheWorking
Party'smeetings arecontained indocuments G/STR/M/3 to6.Inaddition, theChairman convened
fourinformal meetings withtheobjective ofadvancing work onthetasks mandated totheWorking
Party intheUnderstanding, andoneinformal meeting regarding theWorking Party'sreport tothe
Council forTrade inGoods.
6. Themeeting oftheWorking Party heldon24October 1996 wasforthepurpose ofadopting
itsreport totheCouncil forTrade inGoods.G/L/128
Page2
II. Notification andreview ofMembers 'statetrading activities
7. AllMembers arerequired under Article XVII ofGATT 1994 andparagraph 1ofthe
Understanding tosubmit annually notifications oftheirstatetrading activities. Inthefirstandfourth
years, "new andfull"notifications arerequired, while intheintervening years anupdating notification
istobemade indicating anychanges since thefullnotification. Ateachofthefirstthree meetings,
theChairman made astatement concerning theunsatisfactory record ofcompliance withthenotification
requirements intheareaofstatetrading, andtheneedforgreater transparency inthetrade conducted
bystatetrading enterprises.
8. Since thefirstrequest for"new andfull"notifications ofstatetrading enterprises wascirculated
(inMarch 1995), suchnotifications havebeenreceived from 45Members, counting theEuropean
Communities andtheirmember States asone. Updating notifications for1996 havebeenreceived
from 16Members. (seetheAnnex tothisreport)
9. Atitsmeeting on20February 1996, theWorking Party conducted areview ofnewandfull
notifications fromthefollowing Members: Chile, Colombia, European Communities, India, Norway,
Switzerland, Hungary, Guinea andHonduras. Italsoreverted toseveral earlier notifications. Acentral
issue thatemerged inthecourse ofthereviews waswhether entities thatdidnotengage intrade but
whose activities might haveanimpact ontrade should benotified. Many ofthequestions raised on
specific notifications indicated varying interpretations ofwhatconstituted notifiable statetrading, and
inturnemphasized theneedtoaccelerate work onrevision ofthequestionnaire anddevelopment of
anillustrative list.Theneedformore complete andprecise responses tothequestionnaire wasstressed
asafundamental aspect ofthenotification obligation.
10. Atitsmeeting on27June1996, theWorking Party conducted areview ofnewandfull
notifications from Morocco andPakistan, andreverted tonumerous earlier notifications. Many
delegations raised further questions onnotifications previously reviewed atearlier meetings, witha
continuing emphasis onboththespecifics ofthenotifications andontheunderlying interpretations
ofwhatwasrequired tobenotified.
11. Atitsmeeting on26September 1996, theWorking Party conducted areview ofnewandfull
notifications fromBarbados, Brazil andMalta, andreviewed updating notifications fromthefollowing
Members: Australia, Canada, Chile, European Communities, Hong Kong, NewZealand, Norway,
Singapore, Switzerland andtheUnited States.
III. Mandated work programme oftheWorking Party
12. Regarding itsmandated work programme, theWorking Party decided atitsmeeting on
20February thatsubstantive work ontherevision ofthe1960 questionnaire onstatetrading andthe
development ofanillustrative listwould betaken upininformal consultations opentoanyMember
wishing toparticipate.
13. Atthemeeting on27June, theChairman reported totheWorking Party onthefourinformal
consultations hehadheldonthetwoissues. TheWorking Party considered adrafttextofarevised
questionnaire (G/STR/W/30) -which inpartreflected discussions intheinformal consultations and
which hadbeencirculated asaChairman 'stext-andagreed topursue discussion ofthisdraft text
andtocontinue work onanillustrative list,ininformal consultations. TheChairman encouraged
Members, inthelightofthetimeliness andimportance ofthese twotasks, toredouble theirefforts
forprogress inthese areas. Views wereexpressed concerning theneedtomove rapidly andintandem
onthetwoissues, aseachwasinextricably linked totheother andbothwerefundamental toimproving
transparency intheareaofstatetrading. Theneedtocraftaquestionnaire thatwould elicittherelevantG/L/128
Page3
information while avoiding duplication andunnecessary information wasstressed. Oneproblem facing
theWorking Party infinalizing thequestionnaire wasthedivergent views expressed ontheprovision
ofcommercially sensitive information.
14. Atitsmeeting of26September, theWorking Party discussed written proposals submitted by
NewZealand (G/STR/W/31) andtheUnited States (G/STR/W/32) regarding theillustrative listof
relationships andactivities ofstatetrading enterprises. Thesubmissions were deemed apositive
contribution towork onthisissue andagood basis forfurther progress. Preliminary views were
expressed thataclearer understanding ofwhatshould benotified would assist Members incomplying
withtheirobligations andwould stimulate anincrease intransparency. Itwassuggested thatwork
should beaccelerated ontherevised questionnaire andtheillustrative list.Thelinkbetween these
twotasks, andtheneedforthemtoprogress rapidly andinparallel, wasagain stressed. Itwasagreed
thatwork onthequestionnaire would continue onthebasis ofthetextinG/STR/W/30.
IV. Other Matters
15. Atthemeeting of26September, theEuropean Communities submitted apaper (G/STR/W/33)
outlining suggestions forfuture work tobeundertaken bytheWorking Party, including anexamination
ofwhether Article XVII andtheUnderstanding needed further strengthening. Itwasexplained that
theintentofthepaperwasnottorenegotiateArticleXVII,butsimplytostartadiscussionintheWorking
Party ontheadequacy ofthecurrent WTO disciplines onstatetrading. Thisdelegation suggested that
inthissense, while theWorking Party continued topursue thework mandated intheUnderstanding,
theCouncil forTrade inGoods could assign thistasktotheWorking Party. While anumber of
delegations supported theproposal invarying degrees, several other delegations wereoftheviewthat
whatwassuggested inthepaper wentbeyond themandate oftheWorking Party, andthatgiven the
current stateofwork intheWorking Party, wasforthetimebeing pre-mature. TheEuropean
Communities indicated itsintention toraisethismatter atthenextmeeting oftheCouncil forTrade
inGoods.
V. Recommendations
16. Inlight ofitsdesire tocomplete expeditiously thereview ofthequestionnaire andthe
development ofanillustrative list,theWorking Party recommends totheCouncil forTrade inGoods
thattheCouncil urgeallMembers tofulfil theirnotification obligations under Article XVII andthe
Understanding without delay.G/L/128
Page4
ANNEX
NOTIFICATIONS SUBMITTED BYWTO MEMBERS UNDER
ARTICLE XVII:4(a) OFGATT 1994 AND PARAGRAPH 1OFTHE
WTO UNDERSTANDING ONTHE INTERPRETATION OFARTICLE XVII
Status asof17October 1996
Member NewandFullNotification Updating Notification
Antigua andBarbuda
Argentina X
Australia X X
Bahrain
Bangladesh
Barbados X
Belize
Benin
Bolivia
Botswana
Brazil X
Brunei Darussalam
Burkina Faso
Burundi
Cameroon
Canada X X
Central African Republic
Chile X X
Colombia X X
Costa Rica X
Côted'Ivoire X
Cuba
Cyprus X
Czech Republic X
Djibouti
Dominica
Dominican Republic
European Communities X X
Ecuador
EgyptG/L/128
Page5
Member NewandFullNotification Updating Notification
ElSalvador
Fiji
Gabon
Ghana
Grenada
Guatemala
Guinea Bissau
Guinea, Rep. of X
Guyana
Haiti
Honduras X
Hong Kong X X
Hungary X
Iceland
India X
Indonesia X X
Israel X
Jamaica X
Japan X X
Kenya
Korea X
Kuwait
Lesotho
Liechtenstein
Macau X
Madagascar
Malawi
Malaysia X
Maldives
Mali
Malta X
Mauritania
Mauritius X
Mexico
Morocco X
MozambiqueG/L/128
Page6
Member NewandFullNotification Updating Notification
Myanmar
Namibia
NewZealand X X
Nicaragua
Nigeria
Norway X X
Pakistan X
Pap.NewGuinea
Paraguay
Peru X
Philippines X
Poland X
Qatar
Romania X
Rwanda
Saint Kitts&Nevis
Saint Lucia
Saint Vincent &Grenadines
Senegal
Sierra Leone
Singapore X X
Slovak Republic X X
Slovenia X
Solomon Islands
South Africa X X
SriLanka
Suriname
Swaziland
Switzerland X X
Tanzania
Thailand X X
Togo
Trinidad &Tobago
Tunisia
Turkey X
UgandaG/L/128
Page7
Member NewandFullNotification Updating Notification
United Arab Emirates X
United States X X
Uruguay X
Venezuela X
Zambia
Zimbabwe
Total*45/108 16/108
X=notification submitted
*The denominator used here (108) reflects thefact that foreach obligation, theECsubmits asingle notification that covers all
15member States. The official total membership oftheWTO (123) includes theECplus the15individual member States.SECTION XIV
COMMITTEE ONSAFEGUARDSWORLD TRADE G/L/129
29October 1996
ORGANIZATION(96-4500)
Committee onSafeguards
REPORT (1996) OFTHE COMMITTEE ON
SAFEGUARDS
I. Organization ofthework oftheCommittee
1. TheAgreement onSafeguards entered intoforce on1January 1995. Pursuant toArticle 13.1
oftheAgreement, membership intheCommittee onSafeguards isopen totheparticipation ofany
Member indicating itswishtoserve onit.Pursuant toadecision oftheCouncil forTrade inGoods
atits20February1995meeting,allWTOMemberswouldbeMembersoftheCommitteeonSafeguards,
exceptforthosethathadexplicitlyindicatedtheirwishtothecontraryby22February1995.NoMember
indicated suchawish, andaccordingly, atitsmeeting of24February, theCommittee tooknotethat,
byvirtue oftheCouncil forTrade inGood'sdecision, allMembers oftheWTO areMembers ofthe
Committee.
2. Observer governments intheGeneral Council oftheWTO have Observer status inthe
Committee. Inaddition, atitsspecial meeting of13-14 July1995, theCommittee invited, onanad
hocbasis, representatives oftheWorld Bank, OECD, andIMFtoattend meetings oftheCommittee
inanobserver capacity. Atitsregular meeting on25October 1996, theCommittee tooknoteofthe
decision oftheGeneral Council regarding thestatus ofinternational organizations asObservers tothe
WTO andauthorized theChairman toconsult informally onwhich international intergovernmental
organizations would begranted observer status intheCommittee. Pending theoutcome ofsuch
consultations, theCommittee agreed tocontinue toinvite those organizations which hadbeenfollowing
theCommittee 'smeetings onanadhocbasis.
3. Thefocus ofthisreport isontheperiod since theCommittee 'slastannual report (G/L/32),
thatis,November 1995-October 1996. However, where relevant, information fromtheprevious period
isreported. During theperiod under review theCommittee heldthreemeetings. Theregular meeting
oftheCommittee washeldon25October 1996(G/SG/M/7). Special meetings oftheCommittee were
held11-12December1995and6May1996(G/SG/M/5+Suppls.1and2,andG/SG/M/6,respectively).
4. Mr.Jorge A.Ruiz(Argentina) wasappointed Chairman oftheCommittee for1995-1996.
Atitsmeeting of24February 1995, theCommittee decided toelectitsownofficers, Chairman and
Vice-Chairman. TheCommittee atitsspecial meeting of13-14 July1995elected Mr.Andràs Lakatos
(Hungary) asVice-Chairman for1995-1996. Atitsspecial meeting of6May1996, theCommittee
elected Mr.J.Antonio S.Buencamino (Philippines) asChairman, andMs.Laurence Wiedmer
(Switzerland) asVice-Chairman, for1996-1997. Pursuant totheCommittee 'srules ofprocedure,
Mr.Buencamino andMs.Wiedmer tookoffice attheendofthatmeeting.
5. Atitsspecial meeting of6May1996, theCommittee agreed toaddasecond regular (Spring)
meeting toitsannual meeting schedule. Thismeeting willbescheduled inconjunction withtheSpring
meetings oftheCommittees onAnti-Dumping Practices andSubsidies andCountervailing Measures.
6. Atitsspecial meeting of6May1996, theCommittee adopted Rules ofProcedure forMeetings
oftheCommittee onSafeguards (G/SG/4), based ontheRules oftheGeneral Council andoftheCouncilG/L/129
Page2
forTrade inGoods, andincorporating relevant changes tomake them applicable totheCommittee.
TheCouncil forTrade inGoods subsequently approved theCommittee 'sRules ofProcedure atits
meeting of22May1996.
II. Notification andexamination ofsafeguards lawsand/or regulations ofMembers
7. Intheareaofsafeguards, WTO rulesareimplemented through Members 'national legislation.
Pursuant toArticle 12.6oftheAgreement, asamplified byadecision oftheCommittee, Members
withavailable legislation and/or regulations regarding safeguards investigations orreviews covered
bytheAgreement should notify thefullandintegrated textoftherelevant legislation and/or regulations
totheCommittee. Ifsuchlegislation and/or regulations donotexistorarenotavailable, theMember
should inform theCommittee ofthisfact,andinthecaseofnon-availability, explain thereasons therefor.
These notifications havebeentreated asunrestricted documents from theoutset. Inaddition, the
Committee decided atitsspecial meeting of24February 1995thatObserver governments should provide
theCommittee withanyinformation theObserver governments consider relevant tomatters within
thepurview oftheAgreement, including thetextoftheirlawsandregulations regarding safeguard
actions, andinformation regarding anysafeguard measures taken bytheObserver governments.
8. Asof25October 1996, 65Members1hadnotified theCommittee oftheirdomestic safeguards
legislationormadecommunicationsinthisrespecttotheCommittee(G/SG/N/1andaddenda).Forty-five
Members hadnot,asofthatdate, made notifications under Article 12.6oftheAgreement, although
thedeadline forsuchnotifications was15March 1995. TheAnnex liststhestatus ofnotifications
under Article 12.6oftheAgreement. Theissueoftheextent ofthenon-compliance withthisnotification
obligation, andtheimplications ofthissituation, werediscussed atmeetings oftheCommittee during
thereview period (G/SG/M/6, paras. 29-30; andG/SG/M/7).
9. Ofthe65Members submitting notifications, 36notified thattheyhadnospecific legislation
relating tosafeguards, 9notified newlegislation, and20notified pre-WTO legislation stillinforce.
Ofthe56Members notifying either nosafeguards legislation orpre-WTO legislation stillinforce,
20indicated thatnewlegislation isbeing considered ordrafted. Inaddition, 13Members indicated
thattheWTO Agreement hasforce oflawintheterritory oftheMember.
10. Duringtheperiodunderreview,theCommitteecontinuedtheworkofreviewingthenotifications
ofneworamendedsafeguardslegislationand/orregulationsbegunin1995.Inadditiontothelegislations
andnotifications without legislative textreviewed during theprevious period, theCommittee reviewed
thelegislative notifications ofthefollowing Members: Argentina, Brazil, Cuba, Ecuador, ElSalvador,
Hungary, Israel, Japan, Macau, Mexico, Norway, St.Lucia, South Africa, andTurkey.
11. TheCommittee alsoreviewed thenotifications without legislative textofthefollowing Members
during theperiod: Australia, Bolivia, Côted'Ivoire, Dominican Republic, ElSalvador, Guatemala,
Guinea (Rep. of),Honduras, Iceland, India, Kenya, Malaysia, Maldives, Malta, Mauritius, Morocco,
Myanmar, Nicaragua, Nigeria, Pakistan, Paraguay, Philippines, Poland, Slovak Republic, Slovenia,
SriLanka, Switzerland, Thailand, Trinidad &Tobago, Tunisia, Uruguay, Zambia, andZimbabwe.
12. Thesubstance ofthereview oflegislative notifications isreflected inthewritten questions put
toMembers andthewritten answers tothose questions. References tothequestions andanswers
pertaining toeachnotification canbefound intheminutes ofthemeetings atwhich thenotifications
were reviewed (G/SG/M/5+Suppls.1 and2,G/SG/M/6 andG/SG/M/7).
1Counting theECasasingle Member forpurposes ofthelegislative notification.G/L/129
Page3
13. AsofearlyMay1996, theCommittee hadconducted aninitial review ofalmost allnotifications
received tothatpoint, infourspecial meetings. TheCommittee therefore decided thatfortheimmediate
future, review oflegislative notifications should takeplaceinthecontext ofregular Committee meetings,
rather thaninspecial meetings called forthatpurpose.
14. TheCommitteeadoptedproceduresforfuturereviewsoflegislativenotifications(G/SG/W/116).
Theprocedures forfollow-up review ofpreviously-reviewed legislation would bebased onaprocess
ofwritten questions andanswers, tofacilitate productive discussions during thereview sessions. The
procedures forreview ofnewandamended legislations would bethesame asthose usedduring the
special meetings toreview legislation.
15. Notallwritten questions puttoMembers during thecourse ofthelegislative review meetings
hadbeen answered attheendoftheperiod under review. Nonetheless, theChairman expressed
satisfaction withthereview process. Questions puttoMembers ranged fromthose regarding general,
policy matters toveryspecific andhighly technical questions ofnational administration ofsafeguard
measures. Among theconcerns raised byMembers were perceived inconsistencies between the
Agreement andbothnewly-enacted legislation andlegislation enacted prior totheentry intoforce of
theAgreement. Inaddition, Members expressed concern regarding thepotential foractions inconsistent
withtheAgreement ifsuchactions arebased onlegislation enacted prior totheentry intoforce of
theAgreement. Another concern wasthecomplexity oftheprocedural andsubstantive requirements
oftheAgreement, andtheneedforsignificant training andeducation, particularly fornewusers of
safeguard measures including developing countries, toensure thatactions weretaken consistently with
theAgreement.
III. Notifications ofpre-existing Article XIXmeasures
16. Duringthereviewperiod,theCommitteecontinueditsreviewofmeasurescoveredbyArticle10
oftheAgreement, i.e.pre-existing Article XIXsafeguard measures, which aresubject tonotification
pursuant toArticle 12.7oftheAgreement. These notifications canbefound indocument series
G/SG/N/2. Inparticular, atits11-12 December 1995meeting, theCommittee reverted toitsdiscussion
ofthenotifications ofsuchmeasures thatithadcommenced atits6November 1995 regular meeting.
Thecomments ofMembers withrespect tothesenotifications arereflected intheminutes ofCommittee
meetings (G/SG/M/3, paras. 25-35; andG/SG/M/5, paras. 4-15). Inconnection withthisreview,
itwasnoted thatveryfewpre-existing Article XIXsafeguard measures hadbeennotified. Thequestion
wasraised whether thismeant thatinfactonlyasmall number ofsuchmeasures existed, orwhether
itmight reflect afailure tonotify. Thepossibility ofcounternotification ofsuchmeasures, pursuant
toArticle 12.8oftheAgreement, wasrecalled.
17. Atthe6Mayspecial meeting, therepresentative ofNigeria indicated thatNigeria would notify
totheCommittee itspre-existing Article XIXmeasures which hadbeendiscussed during itsbalance-of-
payments review earlier intheyear(G/SG/M/6, paras. 42-43). Asofthe25October 1996 regular
meeting, thisnotification hadnotbeenreceived.
IV. Notifications under Article 12.7ofmeasures subject totheprohibition andelimination ofcertain
measures under Article 11.1
18. Duringthereviewperiod,theCommitteecontinueditsreviewofso-called"greyarea"measures.
ThesenotificationscanbefoundindocumentseriesG/SG/N/3.Inparticular,atits11-12December1995
meeting, theCommittee reverted toitsdiscussion ofthenotifications ofsuchmeasures thatithad
commenced atits6November 1995regular meeting. Thecomments ofMembers withrespect tothese
notifications arereflected intheminutes ofCommittee meetings (G/SG/M/3, paras. 38-56; andG/L/129
Page4
G/SG/M/5, paras. 4-15). Inconnection withthisreview, itwasnoted thatveryfewgreyareameasures
hadbeennotified. Thequestion wasraised whether thismeant thatinfactonlyasmall number of
such measures existed, orwhether itmight reflect afailure tonotify. Thepossibility of
counternotification ofsuchmeasures, pursuant toArticle 12.8oftheAgreement, wasrecalled.
V. Notifications under Article 11.2 oftimetables forphasing outmeasures referred toin
Article 11.1(b) orforbringing them intoconformity withtheAgreement.
19. During thereview period, theCommittee continued itsreview oftimetables forthephasing
outof"grey area" measures. These notifications canbefound indocument series G/SG/N/5. These
timetables should provide forallsuchmeasures tobephased outorbrought intoconformity withthe
Agreement within fouryears afterthedateofentry intoforce oftheWTO Agreement, subject tonot
more thanoneexception perimporting Member, which mayextend until31December 1999.2At
its11-12 December 1995special meeting, theCommittee reverted toitsdiscussion ofthenotifications
oftimetables thatithadcommenced atits6November 1995regular meeting. Subsequently, Slovenia
andSouth Africa, which hadnotified thattheyhadrelevant measures, submitted notifications oftheir
timetables forphasing outthemeasures orbringing them intoconformity withtheAgreement, and
theECsubmitted asupplement toitspreviously-notified timetables. Thefirstofthese notifications
wasreviewed attheCommittee 's6May1996 special meeting, andthelatter twoatthe25October
1996 regular meeting. Thecomments ofMembers withrespect tothese notifications arereflected
intheminutes ofCommittee meetings (G/SG/M/3, paras. 57-59; G/SG/M/5, paras. 4-15; G/SG/M/6,
paras. 3-6; andG/SG/M/7).
VI. Notifications under Article 12.1ofinitiation ofaninvestigation, making afinding, orapplying
orextending asafeguard measure
20. UnderArticle12.1oftheAgreement,MembersarerequiredtoimmediatelynotifytheCommittee
uponinitiating aninvestigatory process relating toserious injury orthreat thereof andthereasons for
it,upon making afinding ofserious injury orthreat thereof caused byincreased imports, andupon
taking adecision toapply orextend asafeguard measure.
21. Atits11-12December1995specialmeeting,theCommitteerevertedtoitsreviewofnotifications
under Article 12.1(a) ofinitiations ofinvestigations from Korea andtheUnited States thatithad
commenced atitsregular meeting of6November 1995. (G/SG/N/6/KOR+Suppl.1 and
G/SG/N/6/USA.) Subsequently, additional notifications ofinitiations ofinvestigations werereceived,
from Brazil, Korea andtheUnited States. (G/SG/N/6/BRA/1, G/SG/N/6/KOR/2 andKOR/3, and
G/SG/N/6/USA/2 andUSA/3.) These notifications were reviewed attheCommittee 's6May1996
special meeting and25October 1996 regular meeting. Thecomments ofMembers withrespect to
these notifications arereflected intheminutes ofCommittee meetings (G/SG/M/3, paras. 5-24;
G/SG/M/5, paras. 4-15; G/SG/M/6, paras. 7-11; andG/SG/M/7).
22. During thereview period, anotification under Article 12.1(b) ofafinding ofserious injury
orthreat thereof caused byincreased imports wasreceived fromtheUnited States (G/SG/N/8/USA/1).
Thisnotification wasreviewed attheCommittee 's25October 1996 regular meeting. Thecomments
ofMembers withrespect tothisnotification arereflected intheminutes ofthismeeting (G/SG/M/7).
2Onlyonesuchexception exists, i.e.,theEC'smeasure indicated intheAnnex totheAgreement.
Allother Members hadtheopportunity tonotify, within 90daysoftheentry intoforce oftheWTO
Agreement, (i.e., notlaterthan31March 1995), asingle suchexception. Nosuchnotifications were
received.G/L/129
Page5
23. During thereview period, anotification under Article 12.1(c) wasreceived from Brazil
concerning application ofaprovisional safeguard measure (G/SG/N/7/BRA/1). Thisnotification was
reviewed attheCommittee 's25October 1996regular meeting. Thecomments ofMembers withrespect
tothenotification arereflected intheminutes ofthismeeting (G/SG/M/7).
VII. Notifications under Article 12.5Concerning Consultations Pursuant toArticles 12.3and12.4
24. Article 12.5oftheAgreement requires thatMembers notify theCouncil forTrade inGoods
(through theCommittee onSafeguards, perArticle 12.10) oftheresults ofconsultations undertaken
pursuant toArticles 12.3and12.4oftheAgreement, i.e.,pertaining totheimposition ofsafeguard
measures orprovisional safeguard measures, respectively. During thereview period, onesuch
notification wasreceived, fromBrazil, regarding theresults ofitsconsultations withtheEConBrazil 's
provisional safeguard measure (G/SG/5-G/L/110). Thisnotification wasreviewed attheCommittee 's
25October 1996 regular meeting. Thecomments ofMembers withrespect tothenotification are
reflected intheminutes ofthismeeting (G/SG/M/7).
VIII. Formats fornotifications
25. Atits24February 1995special meeting, theCommittee approved aseries ofsuggested formats
forthevarious notification obligations under theAgreement. These formats wereoriginally circulated
indocumentG/SG/W/1.Subsequently,certainoftheformatswererecirculatedindividuallyindocuments
G/SG/N/1-N/6.Duringthereviewperiod,theremainingformatswererecirculatedindocumentG/SG/1.
26. Atits6May1996specialmeeting,theCommitteeadoptedaformatfornotificationoftermination
ofasafeguards investigation where nosafeguard measure isimposed. Although theAgreement does
notrequiresuchnotifications,theCommitteedecidedthatitwouldbedesirablefortransparencypurposes
toestablish amechanism forMembers tocommunicate totheCommittee thattheyhadterminated or
concluded aninvestigation which hadbeeninitiated andnotified totheCommittee under theAgreement,
butwhich hadnotresulted inimposition ofsafeguard measures. Theadopted format wascirculated
indocument G/SG/2.
27. During theperiod under review, anotification oftermination ofasafeguard investigation where
nosafeguard measure isimposed wasreceived from theUnited States (G/SG/N/9/USA/1). This
notification wasreviewed atthe25October 1996 meeting oftheCommittee (G/SG/M/7).
IX. Other matters discussed bytheCommittee
28. Procedures forpreparation andadoption ofAnnual Report: Atits6May1996special meeting,
theCommittee considered theprocedures forthepreparation andadoption ofitsannual report adopted
atitsfirstmeeting inFebruary 1995, inlightofsuggestions fromtheChairman oftheGeneral Council.
TheCommittee decided thattheSecretariat should prepare adraftreport inthesame format ashad
beenusedintheprevious year'sreport, incorporating fromthatreport those aspects ofimplementation
thatwould helpexplain theprogress thattheCommittee hadmade. Thedraftreport would becirculated
toMembers inlateSeptember orearly October, atwhich timetheCommittee would havetodecide
whether itshould meetinformally inadvance oftheregular October meeting todiscuss anyadditional
matters forinclusion inthereport.
29. Progress inphasing outpre-existing measures: Inaccordance withadecision atitsspecial
meeting of24February 1995, Members reported totheCommittee, atthe25October regular meeting,
astotheirprogress inphasing outpre-existing Article XIXmeasures andmeasures subject toprohibition
andelimination under Article 11.1oftheAgreement. Thecomments ofMembers onthissubject are
reflected intheminutes ofthemeeting (G/SG/M/7).G/L/129
Page6
30. Assistance under Article 13.1(b), (c)and(d):Pursuant toadecision oftheCommittee atits
6November 1995 meeting, requests forassistance onmatters referred toinArticle 13.1(b), (c)and
(d)aretobehandled onanadhocbasis. During thereview period, nosuchrequests werereceived
bytheCommittee.
X. Concluding observations
31. TheCommittee considered that,ingeneral, goodprogress hadbeenmade inthefirsttwoyears
inimplementing theAgreement. However, theCommittee considered thatmuch remained tobedone,
andthatadditional efforts from Members were required inorder toachieve fullimplementation of
theAgreement.
32. TheCommittee observed thatoneofitsmajor tasksduring thefirsttwoyears oftheAgreement
hadbeentoreview thedomestic safeguards legislations notified byMembers. Thereview exercise
indicated thatimplementation inthisregard waslessthancomplete. NotallMembers thatarecurrent
orpotential usersofsafeguard measures hadcompleted thedomestic legislative processes toincorporate
therelevant requirements oftheAgreement. Thus, further efforts were required inorder toensure
substantive implementation oftheAgreement. Inaddition, during themeetings toreview notifications
oflegislation, avariety ofissues regarding theWTO-consistency ofnotified legislation wasraised.
Themeetings provided Members withanopportunity toseekclarification ofissues arising outofother
Members 'legislation. Generally, Members were abletoclarify theissues raised. Both Members
notifying legislation andthose submitting questions generally found theprocess helpful andwished
tocontinue thisworkintheCommittee. TheCommittee viewed itasextremely important thatMembers
carefully consider allquestions posed, comments made andreplies provided inthecontext ofthese
review sessions.
33. TheCommittee noted thattheprocedural andsubstantive requirements ofthenewAgreement
weredetailed,andthatitsimplementationrequiredsubstantialexpertiseandthecommitmentofsubstantial
resources byMembers. TheCommittee considered thatmaximum efforts should bemade toassist
Members, andinparticular developing country Members, toachieve fullimplementation ofthe
Agreement.G/L/129
Page7
ANNEX
SAFEGUARDS LEGISLATIVE NOTIFICATIONS
MEMBER NOTIFICATION PROVIDED
Antigua andBarbuda
Argentina G/SG/N/1/ARG/3
Australia G/SG/N/1/AUS/1
Bahrain
Bangladesh
Barbados
Belize
Benin
Bolivia G/SG/N/1/BOL/1
Botswana
Brazil G/SG/N/1/BRA/3
Brunei Darussalam
Burkina Faso
Burundi
Cameroon
Canada G/SG/N/1/CAN/2
Central African Republic
Chad
Chile G/SG/N/1/CHL/1
Colombia G/SG/N/1/COL/1
Costa Rica G/SG/N/1/CRI/1 +Corr.1
Côted'Ivoire G/SG/N/1/CIV/1
Cuba G/SG/N/1/CUB/1
Cyprus
Czech Republic G/SG/N/1/CZE/1
Djibouti
Dominica
Dominican Republic G/SG/N/1/DOM/1
European Community G/SG/N/1/EEC/1G/L/129
Page8
MEMBER NOTIFICATION PROVIDED
Ecuador G/SG/N/1/ECU/1
Egypt G/SG/N/1/EGY/1
ElSalvador G/SG/N/1/SLV/2
Fiji
Gabon
Gambia, The
Ghana G/SG/N/1/GHA/1
Grenada
Guatemala G/SG/N/1/GTM/1
Guinea Bissau
Guinea, Rep.of G/SG/N/1/GIN/1
Guyana
Haiti
Honduras G/SG/N/1/HND/1
Hong Kong G/SG/N/1/HKG/1
Hungary G/SG/N/1/HUN/2 +Add.1 +Suppl. 1&2
Iceland G/SG/N/1/ISL/1
India G/SG/N/1/IND/1
Indonesia G/SG/N/1/IDN/1
Israel G/SG/N/1/ISR/2
Jamaica
Japan G/SG/N/1/JPN/2 +Corr.1
Kenya G/SG/N/1/KEN/1
Korea G/SG/N/1/KOR/2
Kuwait
Lesotho
Liechtenstein
Macau G/SG/N/1/MAC/2
Madagascar
Malawi
Malaysia G/SG/N/1/MYS/1G/L/129
Page9
MEMBER NOTIFICATION PROVIDED
Maldives G/SG/N/1/MDV/1
Mali
Malta G/SG/N/1/MLT/1
Mauritania
Mauritius G/SG/N/1/MUS/1
Mexico G/SG/N/1/MEX/1
Morocco G/SG/N/1/MAR/1
Mozambique
Myanmar G/SG/N/1/MYM/1
Namibia
NewZealand G/SG/N/1/NZL/1
Nicaragua G/SG/N/1/NIC/1
Nigeria G/SG/N/1/NGA/1
Norway G/SG/N/1/NOR/3
Pakistan G/SG/N/1/PAK/1
Papua NewGuinea
Paraguay G/SG/N/1/PRY/1
Peru G/SG/N/1/PER/1
Philippines G/SG/N/1/PHL/1
Poland G/SG/N/1/POL/1
Qatar
Romania G/SG/N/1/ROM/1
Rwanda
Saint Kitts&Nevis
Saint Lucia G/SG/N/1/LCA/1
Saint Vincent &Grenadines
Senegal G/SG/N/1/SEN/1
Sierra Leone
Singapore G/SG/N/1/SGP/1
Slovak Republic G/SG/N/1/SVK/1
Slovenia G/SG/N/1/SVN/1G/L/129
Page10
MEMBER NOTIFICATION PROVIDED
Solomon Islands
South Africa G/SG/N/1/ZAF/1
SriLanka G/SG/N/1/LKA/1
Suriname
Swaziland
Switzerland G/SG/N/1/CHE/1
Tanzania
Thailand G/SG/N/1/THA/1 +Rev.1
Togo
Trinidad andTobago G/SG/N/1/TTO/1
Tunisia G/SG/N/1/TUN/1
Turkey G/SG/N/1/TUR/2
Uganda G/SG/N/1/UGA/1
United Arab Emirates
United States G/SG/N/1/USA/1
Uruguay G/SG/N/1/URY/1
Venezuela G/SG/N/1/VEN/1 +Corr.1
Zambia G/SG/N/1/ZMB/1
Zimbabwe G/SG/N/1/ZWE/2SECTION XV
MARKET ACCESS COMMITTEEWORLD TRADE G/L/132
4November 1996
ORGANIZATION(96-4641)
REPORT OFTHE MARKET ACCESS COMMITTEE
Section A-Background
1. TheCommittee onMarket Access wasestablished under paragraph 7ofArticle IVoftheWTO
Agreement bytheGeneral Council atitsmeeting of30January 1995. Itsmandate (WT/L/47) covers
market access issues related totariffs, non-tariff measures notcovered byanyother WTO body, as
wellasmatters related totheIntegrated DataBase.
2. Mr.JeanSaint-Jacques (Canada) hasbeenelected Chairman, andMrs. Marie Gosset (Côte
d'Ivoire), Vice-Chairperson oftheCommittee. Their mandates wererenewed for1996. Participation
inthemeetings oftheCommittee isopen toallWTO Members, toGovernments granted observer
status bytheGeneral Council andtothefollowing international organizations: FAO, IMF, ITCB,
UNCTAD, WCO andtheWorld Bank.
3. Rules ofProcedure fortheCommittee, based ontheRules ofProcedure adopted bytheCouncil
forTrade inGoods (CTG) andapproved bytheGeneral Council on31July1995, wereadopted by
theCTG on1December 1995 (WT/L/79).
4. TheCommittee heldfourformal meetings eachin1995 andin1996 aswellasanumber of
informal meetings.
Section B-Status report oftheCommittee 'swork
Tariff Matters
Implementation oftheUruguay Round results
5. Theimplementation oftariff concessions contained intheWTO Schedules onGoods began
on1January 1995 according totheprovisions oftheMarrakesh Protocol andtheSchedules annexed
thereto. Beginning on1January 1996, thesecond stage ofreductions started. There isnospecial
notificationprocedurefortheimplementationoftariffreductions.TheCommitteeagreedthatifproblems
arose inthisrespect, itwould relyonreverse notifications. Todate, nosuchreverse notifications
havebeensubmitted.
Implementation ofHarmonized System 1996 changes
6. TheHarmonized Commodity Description andCoding System (Harmonized System orHS),
which isadministered bytheWorld Customs Organization (WCO), isthecustoms nomenclature used
bynearly allWTO Members fortheir schedules oftariff concessions. Special procedures were
establishedfortheintroductionofchangestotheHarmonizedSystemintoWTOschedulesofconcessions.
In1993, theWCO agreed toapproximately 400setsofamendments totheHarmonized System, to
enterintoeffect on1January 1996. These affect bound schedules oftariffconcessions ofalargenumber
ofWTO Members. Members have hadtoimplement thechanges, inkeeping withtheir WCOG/L/132
Page2
obligations, intheircustoms nomenclature on1January 1996. They wereunable, however, tocarry
outtheprocedures related totheintroduction ofHSchanges inWTO schedules prior totheir
implementation. These Members therefore hadtorequest waivers, inaccordance withArticle IXof
theWTO Agreement, from theirobligations under Article IIofGATT 1994. Atitsmeeting of13
December 1995, theGeneral Council approved aDecision granting waivers to33Members, allowing
them toimplement theHS96 changes on1January 1996 andtocarry outthenecessary procedures
subsequently. These waivers were toexpire on30June1996.
7. ByJune1996, 19Members hadsubmitted thenecessary documentation inconnection with
theintroduction oftheHS96 changes andreservations, bothgeneral andspecific, hadbeenmade with
regard tomostofthesubmissions. Onlytwosubmissions ofHS96 changes werefinalized andcertified
during thisperiod. Thus, anextension ofthewaivers appeared necessary. Atthemeeting ofthe
Committee on13June1996, theChairman proposed that-forpractical reasons andbecause there
wasnotalways ameeting oftheGeneral Council inDecember -theperiod forextension ofwaivers
ingeneral, which wasusually sixmonths -fromJanuary toJuneandfromJulytoDecember-, bechanged
fromMaytoOctober andfromNovember toApril ofeachyear.TheCommittee approved thisproposal
andagreed that,inorder tobridge thegapbetween thecurrent situation andthenewproposal, any
extension ofwaivers should beuntil30April 1997. Itwasthendecided torecommend thattheHS96
waivers beexceptionally extended until30April 1997fortheMembers thatindividually hadrequested
anddocumented aneedforanextension orhadnewly requested awaiver inconnection withtheHS96
changes. Thecomplete required documentation wastobesubmitted bytheMembers concerned by
30September 1996 atthelatest. Thedraftdecision ontheextension ofthewaivers wasapproved
bytheCTG atitsmeeting of5July1996 andadopted bytheGeneral Council atitsmeeting of18
July1996. Thesituation with respect tothesubmission ofdocumentation isreproduced in
G/MA/TAR/2/Rev.3.
8. Developingandleast-developedMembercountriesstressedtheneedtoobtaintechnicalassistance
from theSecretariat inconnection withtheintroduction ofHS96 changes andforthepreparation of
consolidated loose-leaf schedules.
Procedures under Article XXVIII
9. Withreference tothesubmission ofdocumentation containing HS96 changes, several Members
expressed concern about reservations ofapurely general character presented byother Members under
Article XXVIII. Twoproblems wereidentified inthisrespect: ontheonehandthere istheneedfor
Members submitting changes toprovide asmuch information aspossible tofacilitate areview ofthese
changes byother Members; ontheother handthere istheneedforMembers making reservations to
specify theexact nature oftheirreservations inorder toenable theMembers concerned toeither supply
missinginformationortoenterintonegotiations.TheChairmanwasrequestedtocarryoutconsultations
regarding theprocedures governing Article XXVIII.
Trade liberalization proposals
10. TheMarketAccessCommitteediscussedseveralfurthertradeliberalizationpapersbydelegations.
Twoproposals focused onthefuture agenda fortariffliberalization: anAustralian proposal onFurther
Industrial Tariff Negotiations (G/L/96) which recommends thatcomprehensive industrial tariff
negotiations begin in2000 andthatpreparatory work beundertaken bytheGoods Council orMarket
Access Committee; andaCanadian proposal onFurther Tariff Liberalization (G/MA/W/9) that
recommends aWTO work programme toaddress, interalia,theacceleration ofUruguay Round tariff
reductions (including existing Uruguay Round zero-for-zero initiatives), expansion ofmembership for
existing zero-for-zero andharmonization initiatives, andidentification ofadditional sectors forzero-for-
zeroandharmonization initiatives. Members expressed divergent views withrespect toboththeG/L/132
Page3
proposals. Thedelegations which haveputforward these proposals requested thattheCommittee
recommendtotheCTGthatMembersconsiderthempositively.WhilesomeMembersexpressedsupport
invarying degrees, other Members expressed theiropposition totheproposals andtotherequests for
recommendations.
11. Additionally, thereweretwoothercommunications submitted which concern plurilateral market
access initiatives: apaper ontheInformation Technology Agreement (G/MA/W/8) submitted bythe
United States which summarizes thebenefits offurther liberalization oninformation technology products
andoutlinestheproductcoverage;andoneonTradeinPharmaceuticalProducts(G/MA/W/10)submitted
bytheEuropean Communities onbehalf oftheWTO Members concerned which outlines thereview
ofpharmaceutical product coverage thathastaken place andresulted intheaddition of465products
forduty-free treatment. Anumber ofMembers noted thatthese plurilateral market access initiatives
could make apositive contribution totrade liberalization astheresults aregranted onanMFN basis.
TheCommittee welcomed theinformation provided andtooknoteofthecommunications.
Waivers granted inconnection withtheintroduction oftheHarmonized System
12. TheCommittee examined thesituation related tothetransposition andrenegotiation ofschedules
ofcertain Members which hadadopted theHarmonized System intheyears following itsintroduction
on1January 1988. These Members wererequested toprovide factual information inrelation torequests
foranextension ofthewaivers; theinformation isreproduced asanAnnex tothesemi-annual reports
oftheCommittee totheCTG (thelatest being G/MA/4). While anumber ofMembers havebeen
abletocomplete thistransposition inrecent years, 11Members requested anextension oftheirwaiver
until30April 1997. These extensions were approved bytheGeneral Council on18July1996.
TechnicalassistanceisbeingprovidedtosomeMemberstoassistinthetranspositionoftheirpre-Uruguay
Round schedules intotheHarmonized System.
Establishment ofconsolidated loose-leaf schedules ongoods
13. During thepasttwoyears, theCommittee examined various issues related totheestablishment
ofconsolidated loose-leaf schedules ongoods. These concern inparticular thelegalimplications of
theestablishment ofsuchschedules andtheircontent (e.g.thecoverage ofunbound items; thetreatment
ofadvalorem ,specific andmixed duties; stages ofimplementation; other duties andcharges (ODCs);
thereflectionofagriculturecommitments;andtheindicationofInitialNegotiatingRights).Atitsmeeting
of22November 1995, theCommittee agreed totheestablishment ofconsolidated loose-leaf schedules
ongoods onthebasisofaproposal bytheChairman. Thequestion ofverification, however, remains
outstanding. Several Members raised thepossibility ofcreating acomputer-assisted verification of
theschedules. TheChairman hasheldinformal consultations withaviewtosolving theproblem.
14. Asaresult ofthese consultations, heproposed thattheCommittee adopt theDraft Decision
ontheEstablishment ofConsolidated Loose-Leaf Schedules onGoods contained indocument G/L/121.
TheCommittee adopted theDecision andagreed toforward ittotheCTGforapproval. TheCommittee,
noting thatasof18October 1996, 15Members hadsubmitted consolidated loose-leaf schedules on
goods inconnection withthesubmission oftheirHS96 documentation using theformat appended to
theDecision, recognized theimportance ofgiving priority consideration totheverification ofthese
schedules.G/L/132
Page4
Non-tariff Matters
Notifications ofquantitative restrictions
15. ADecision onNotification Procedures forQuantitative Restrictions (G/L/59) wasadopted by
theCTG on1December 1995. Inaccordance withthisDecision, Members were tosubmit tothe
Secretariat by31January 1996complete notifications ontheQRstheymaintained. Thesituation with
regard tothose notifications isfarfrom satisfactory asonly22Members have submitted their
notifications.
Reverse notification ofnon-tariff measures
16. Atitsmeeting inDecember 1995, theCouncil forTrade inGoods alsoadopted adecision related
tothereverse notification ofnon-tariff measures (G/L/60). Onesubmission hasbeenreceived todate.
Integrated Data Base
17. InOctober 1995, theCommittee examined several issues concerning thefuture oftheIntegrated
DataBaseandagreed thatMembers should make every effort toprovide thenecessary tradeandtariff
information inorder toestablish areliable database. However, todateveryfewMembers have
submitted therequired information. Since October 1995, theSecretariat hasreceived complete IDB
submissions from10Members andrecent import statistics from14Members. Inaddition, inresponse
tospecific requests, theSecretariat hasbeenabletoupdate thefilesofanumber ofcountries onthe
basisofdatacollected, interalia,fromtheTrade Policy Review Division andfrompublished customs
tariffs.
18. TheCommittee alsoagreed that(1)theSecretariat prepare asimplified format fortheIDB
datasubmissions anddevelop PCapplications forthepreparation ofdataincapitals; (2)theSecretariat
undertake astudy onthe"restructuring" oftheIDBfromamainframe toaPCenvironment; (3)the
IDBbemade operational withbasic information ontariffs andimports before broadening itsscope
toinclude non-tariff measures andother types ofrestrictions; and(4)access totheIDBcould begiven
tointernational organizations. Since then,theSecretariat hasprepared andcirculated simplified formats
forthesubmission andaPCsoftware forthepreparation ofdataincapitals inaformat compatible
forusewiththeIDBmainframe applications. Astudy onthe"restructuring" oftheIDBfrom a
mainframe toaPCenvironment wasinitiated inAugust 1996.
WTO-WCO Coordination
19. Members expressed thedesire forincreased cooperation withtheWCO withrespect tofuture
changestotheHarmonizedSystem.UnderthecurrentWCOagenda,changestotheHarmonizedSystem
aremade every 4years andthenextupdate isbeing prepared fortheyear2000. Thus, theCommittee
suggested thatbetter communication between thetwoorganizations would beadvantageous forthe
implementation ofHarmonized System 2000changes andtheirintroduction, asnecessary, intoWTO
schedules ofconcessions. TheChairman undertook toinitiate consultations onthisissue.
Future work oftheCommittee
20. TheCommittee willfocus onthefollowing issues:
- continue thesupervision oftheimplementation ofUruguay Round concessions relating totariffs
andnon-tariff measures, andofconcessions byacceding countries;G/L/132
Page5
- improving theefficacy ofitswork through ensuring a)thesubmission oftimely notifications
ofQuantitative Restrictions andtimely provision oftradeandtariffinformation byMembers;
b)thecompletion andimplementation oftheloose-leaf schedules ongoods andthedevelopment
ofanelectronic verification process; bothofwhich willprovide Members withthenecessary
information forsuchsupervision;
- complete theestablishment andverification ofthechanges intheHarmonized System approved
bytheWorld Customs Organization;
- review theprocedural issues identified withrespect tomodifications ofschedules;
- establishmentofacloserworkingrelationshipwiththeWorldCustomsOrganization,particularly
withrespect totheintroduction offuture changes intheHarmonized System;
- implement modifications totheIntegrated DataBaseinorder todevelop adatabase thatwill
facilitate theinformation-gathering and-dissemination processes, thusimproving theanalytical
tools atthedisposal oftheWTO anditsMembers.
Section C-Recommendations
21. TheCommittee recommends totheCouncil forTrade inGoods that:
- Given theimportance ofcompleting assoonaspossible thechanges intheHarmonized System
agreed tobytheWorld Customs Organization, Members dotheir utmost tocomplete the
verification ofHS96 changes already submitted soastoprevent requests foradditional waivers.
Also, tourgethose Members whohavenotsubmitted complete documentation todosoassoon
aspossible.
- MembersagreeontheimportanceoftheworkbeingconsideredintheMarketAccessCommittee
todevelop thebasic information andtheanalytical toolsthatwillenable Members toimprove
theefficiency oftariff negotiations. These analytical tools include thedevelopment and
implementation ofloose-leaf schedules ongoods andofaPC-based Integrated DataBase.
- Inorder tofulfil thiswork, Members:
(a) complete theirnotification obligations onquantitative restrictions;
(b) participate fullyinthedevelopment oftheIntegrated DataBaseandsubmit therequired
trade andtariff datatotheWTO Secretariat;
(c) undertake tosubmit assoonaspossible theirloose-leaf schedules ongoods inelectronic
format; and
(d) complete assoonaspossible theverification ofsubmitted loose-leaf schedules ongoods.
- TheCTG takeintoaccount theneed, when necessary, fortechnical assistance fordeveloping
countriesandleastdevelopedcountriestofacilitatetheimplementationoftheserecommendations.SECTION XVI
COMMITTEE ONTRADE-RELATED INVESTMENT MEASURESWORLD TRADE G/L/133
1November 1996
ORGANIZATION(96-4621)
Committee onTrade-Related Investment Measures
REPORT (1996) OFTHE COMMITTEE ON
TRADE-RELATED INVESTMENT MEASURES
I. General
1. ThisReport issubmitted pursuant toArticle 7.3oftheAgreement onTrade-Related Investment
Measures, which requires theCommittee onTrade-Related Investment Measures toreport annually
totheCouncil forTrade inGoods. TheReport covers theperiod November 1995-October 1996 but
inviewoftheSingapore Ministerial Conference italsocontains references towork oftheCommittee
in1995.
2. Since theperiod covered byitsprevious annual report1,theCommittee heldformal meetings
on18March, 30September and1November 1996 under theChairmanship ofMr.Vassili Notis
(Greece). Theminutes ofthese meetings havebeencirculated indocuments G/TRIMS/M/4 and5.
Meetings oftheCommittee wereopentoallWTO Members. Inaddition, governments withobserver
status intheWTO havebeeninvited toattend themeetings oftheCommittee. Pursuant tointerim
procedures agreed uponbytheGeneral Council inApril 1995regarding theparticipation ofinternational
intergovernmental organizations inmeetings ofWTO bodies, representatives ofIMF, OECD, UN,
UNCTAD andtheWorld Bank havealsoattended themeetings oftheCommittee asobservers.
II. Implementation
3. Thework oftheCommittee in1995 and1996 hascentred ontheimplementation ofthe
notification andtransition arrangements provided forinArticle 5oftheAgreement onTrade-Related
Investment Measures withregard toexisting trade-related investment measures ("TRIMs") thatare
inconsistent withtheAgreement. Article 5.1requires Members tonotify anyTRIM inconsistent with
theAgreement within 90daysaftertheentry intoforce oftheWTO Agreement. Article 5.2gives
thebenefit ofatransition period fortheelimination ofmeasures notified under Article 5.1.
4. InMarch 1995, theCommittee endorsed astandard format fornotifications under Article 5.12
andsubmitted totheGeneral Council through theCouncil forTrade inGoods arecommendation in
regard totheoperation ofthedeadline fornotifications under Article 5.1incaseofcountries eligible
tobecome original WTO Members thataccepted theWTO Agreement after1January 1995. This
recommendation, adopted bytheGeneral Council atitsmeeting on3April 1995, provides thatsuch
governments shallhaveaperiod of90daysafterthedateoftheiracceptance oftheWTO Agreement
tomake thenotifications foreseen inArticle 5.1butthattheperiod fortheelimination ofTRIMs notified
1G/L/37
2G/TRIMS/1G/L/133
Page2
under Article 5.1continues tobegoverned byreference tothedateofentry intoforce oftheWTO
Agreement itself.3
5. TheCommittee hasreceived notifications ofmeasures under Article 5.1from Argentina,
Barbados, Chile, Colombia, Costa Rica, Cuba, Cyprus, theDominican Republic, Ecuador, Egypt,
Indonesia, India, Mexico, Malaysia, Nigeria, Pakistan, Peru, Philippines, Poland, Romania, Thailand,
Uruguay, Venezuela andSouth Africa.4Inthecaseofsome Members, notifications weresubmitted
laterthanthe90-day period foreseen forthem. While there isnoobligation todoso,some Members
notified theCommittee thattheydidnotapply anyTRIM inconsistent withtheAgreement.5
6. With respect tocertain notifications, some delegations havesought clarification oradditional
information ofafactual nature, including withrespect toplans forthephase-out andelimination of
notified measures. Inaddition, anumber ofissues havebeenraised atmeetings oftheCommittee
inrespect ofnotified measures aswellascertain other measures; inmany cases divergent views were
expressed, including inrelation toconcerns about certain measures intheautomotive andagricultural
sectors. Theissues raised included:
(1) thetiming ofnotifications inrelation totheprovisions ofArticle 5.1;
(2) theadequacy ofinformation provided innotifications;
(3) therecent introduction ormodification ofcertain measures inrelation totheprovisions
ofArticles 2and5.4; and
(4) therelationship oftheprovisions oftheAgreement tothose ofotherWTO Agreements,
including theAgreement onSubsidies andCountervailing Measures andtheAgreement
onAgriculture.
Some delegations haveexpressed theviewthatthese issues reflect problems ofimplementation ofthe
Agreement, while others haveindicated thattheydidnotshare thisassessment. TheCommittee has
beeninformed thatproceedings havebeeninitiated under theDispute Settlement Understanding in1996
inrelation tomeasures ofthree Members referring, interalia,totheTRIMs Agreement asreflected
inG/TRIMS/4 andG/TRIMS/D/1-5. Details regarding these proceedings canbefound initems 27,
51,52,54,55and59ofSection IoftheAnnex tothereport oftheDispute Settlement Body
(WT/DSB/8).
7. Notifications under Article 5.1circulated in1995 havebeenderestricted asof28May1996.
Following thedecision taken bytheGeneral Council on18July1996onderestriction andcirculation
ofWTO documents, documents containing notifications submitted under Articles 5.1,5.5.and6.2
willbeissued unrestricted, provided thatpursuant toparagraph (g)oftheAppendix tothatdecision
Members mayatthetimeofthesubmission ofadocument indicate totheSecretariat thatthedocument
should beissued asrestricted.
8. TheCommittee adopted astandard format fornotifications under Article 5.5,which dealswith
theconditions under which during thetransition periods stipulated inArticle 5.2Members mayapply
3WT/L/64
4SeeAnnex 1.
5SeeAnnex 2.G/L/133
Page3
TRIMs notified under Article 5.1tonewinvestments.6TheCommittee alsoadopted aproposal for
implementation ofArticle 6.2,which provides fornotification totheSecretariat ofpublications inwhich
information onTRIMs canbefound.7
III. Built-In Agenda
9. Article 9oftheTRIMs Agreement provides thatnotlaterthanfiveyears aftertheentry into
force oftheWTO Agreement, theCouncil forTrade inGoods shallreview theoperation oftheTRIMs
Agreement and,asappropriate, propose amendments toitstext.Inthecourse ofthisreview, theCouncil
shallconsider whether theAgreement needs tobecomplemented withprovisions oninvestment policy
andcompetition policy. Some Members havedrawn attention totheimportance ofwork pursuant to
thismandate.
6G/TRIMS/3
7G/TRIMS/5G/L/133
Page4
ANNEX 1
NOTIFICATIONS RECEIVED UNDER ARTICLE 5.1OFTHE AGREEMENT
ONTRADE-RELATED INVESTMENT MEASURES
Member Document Symbol Date ofCommunication
Argentina G/TRIMS/N/1/ARG/1 30March 1995
Barbados G/TRIMS/N/1/BRB/1 31March 1995
Chile G/TRIMS/N/1/CHL/1 14December 1995
Colombia G/TRIMS/N/1/COL/1 31March 1995
Colombia G/TRIMS/N/1/COL/Add.1 4June1995
Colombia G/TRIMS/N/1/COL/2 31July1995
Costa Rica G/TRIMS/N/1/CRI/1 30March 1995
Cuba G/TRIMS/N/1/CUB/1 18July1995
Cyprus G/TRIMS/N/1/CYP/1 29June1995
Cyprus G/TRIMS/N/1/CYP/2 30October 1995
Dominican Republic G/TRIMS/N/1/DOM/1 26April 1995
Egypt G/TRIMS/N/1/EGY/1 29September 1995
Ecuador G/TRIMS/N/1/ECU/1 20March 1996
Indonesia G/TRIMS/N/1/IDN/1823May1995
India G/TRIMS/N/1/IND/1 31March 1995
India G/TRIMS/N/1/IND/1/Add.1 22December 1995
India G/TRIMS/N/1/IND/1/Add.1/Corr.1 18March 1996
India G/TRIMS/N/1/IND/1/Add.2 11April 1996
Mexico G/TRIMS/N/1/MEX/1 31March 1995
8Inacommunication dated 28October 1996 thePermanent Mission ofIndonesia advised theCommittee thatIndonesia
waswithdrawing theportion ofthenotification made on23May 1995 which concerned motor vehicles.G/L/133
Page5
Member Document Symbol Date ofCommunication
Mexico G/TRIMS/N/1/MEX/1/Rev.1931March 1995
Malaysia G/TRIMS/N/1/MYS/1 31March 1995
Malaysia G/TRIMS/N/1/MYS/1/Rev.1 14March 1996
Nigeria G/TRIMS/N/1/NGA/1 17July1996
Pakistan G/TRIMS/N/1/PAK/1 30March 1995
Peru G/TRIMS/N/1/PER/1 30March 1995
Philippines G/TRIMS/N/1/PHL/1 31March 1995
Poland G/TRIMS/N/1/POL/1 28September 1995
Romania G/TRIMS/N/1/ROM/1 31March 1995
Thailand G/TRIMS/N/1/THA/1 30March 1995
Uruguay G/TRIMS/N/1/URY/1 31March 1995
Uruguay G/TRIMS/N/1/URY/1/Add.1 30August 1995
Venezuela G/TRIMS/N/1/VEN/1 31March 1995
South Africa G/TRIMS/N/1/ZAF/1 19April 1995
9English onlyG/L/133
Page6
ANNEX 2
NOTIFICATIONS INDICATING THAT NOTRIMS INCONSISTENT WITH THE
AGREEMENT ONTRADE-RELATED INVESTMENT MEASURES
ARE MAINTAINED
Member Document Symbol Date ofCommunication
Switzerland G/TRIMS/N/1/CHE/1 8August 1995
Israel G/TRIMS/N/1/ISR/1 24October 1996
Honduras G/TRIMS/N/1/HND/1 7July1995
Saint Lucia G/TRIMS/N/1/LCA/1 14February 1996
Mauritius G/TRIMS/N/1/MUS/1 27March 1995
Nicaragua G/TRIMS/N/1/NIC/1 18July1996
Singapore G/TRIMS/N/1/SGP/1 9October 1996
Slovenia G/TRIMS/N/1/SVN/1 27March 1995
Trinidad &Tobago G/TRIMS/N/1/TTO/1 1April 1996
Zambia G/TRIMS/N/1/ZMB/1 13April 1995