./.WORLD TRADE
ORGANIZATIONG/MA/W/30
6 June 2002
(02-3142)
Committee on Market Access Original:  English
IMPLEMENTATION-RELATED ISSUES AND CONCERNS:
MEANING TO BE GIVEN TO THE PHRASE "SUBSTANTIAL INTEREST" IN
PARAGRAPH 2(D) OF ARTICLE XIII OF GATT 1994
Communication from Saint Lucia
The following communication, dated 3 June 2002, has been received from the Permanent
Mission of Saint Lucia.
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We thank the Secretariat for its presentation in JOB(02)/34 of 22 April 2002. The
Secretariat’s empirical paper illustrates – through a two-tiered process – the modus operandi  for
taking "substantial interest" at paragraph 2(d) Article XIII of GATT into account if the Koreanproposal (contained in Annex II to document WT/GC/50)  were to be used: the first step defining the
importance of the product to the exporting Member in ‘absolute’ terms, viz. the percentage share of its
exports; the second, a comparison of the ‘relative’ importance of the product to exporting Members in
terms of export share.
As a first step, the import shares of the suppliers of the chosen product into the designated
market were calculated, followed by a similar exerci se in respect of the export ratio defined as the
total export value of the chosen product over the value of total exports for each of those suppliers.
Averages were calculated for the import and export shares based on the data of the last three years,
depending on availability.  The results of this exercise were set out in tabular form.
The empirical paper clearly establishes that WTO Members with export shares as high as
almost 70 per cent could be excluded from the definition of "substantial interest" in paragraph 2(d)
Article XIII of GATT as interpreted in the jurisp rudence.  Three Members with export shares in
excess of 40 per cent would be excluded.  This woul d also apply to certain other Members with export
shares between 20 and 30 per cent, with the number of Members significantly increasing where
consideration includes export shares falling below 10 per cent.
The initial implementation proposal sought to address the circumstances of small developing
country Members with undiversified markets, generally, mono-crop suppliers – principally defined in
terms of a heavy dependence on two or three major exports.
We believe that the justification for the implementation proposal to supplement the group of
countries falling within the definition of "substantial interest" in paragraph 2(d) Article XIII of GATT(as interpreted in WTO jurisprudence) may be best demonstrated through additional empirical work
by the Secretariat.  It is proposed that the Secretariat repeat the first step of the two-tiered process
undertaken with respect to the Korean proposal for five other products entering a major developed
market(s).  This would facilitate informal consulta tions on an appropriate absolute threshold level in
terms of percentage export share.G/MA/W/30
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We are of the view that our deliberations should focus on the Chairperson’s “Possible Text on
‘Substantial Interest’ in Article XIII of GATT 1994” (contained in Annex III to document
WT/GC/50).  Consultations should be pursued with a view to clarifying the three principal issues
suggested by the Chairperson in her Report to the Chairman of the General Council, prior to the Doha
Ministerial Conference (WT/GC/50), namely
• further clarification of wording that the Decision would apply only to new quota allocations;
• further definition or elaboration on what is meant by “major part of total exports”; and
• amendments to the last sentence of the text to make the notification optional and not
mandatory.
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