RESTRICTED
WORLD TRADE G/C/M/6
23October 1995
ORGANIZATION(95-3215)
COUNCIL FOR TRADE INGOODS
26September 1995
MINUTES OFMEETING
Held intheCentre William Rappard
on26September 1995
Chairman: Mr.M.Endo (Japan)
Subjects Discussed Page
1. Harmonized System -request foranextension ofthewaiver under Article IXof 2
theWTO Agreement
2. Approval ofquestionnaire format forsubsidy notifications under Article 25of 3
theAgreement onSubsidies andCountervailing Measures andunder
Article XVIofGATT 1994
3. Caribbean Basin Economic Recovery Act-request forrenewal ofwaiver 3
4. Free-Trade Agreement between Latvia andtheEuropean Communities 6
5. Free-Trade Agreement between Estonia andtheEuropean Communities 7
6. Free-Trade Agreement between Lithuania andtheEuropean Communities 8
7. Cooperation Agreement between theEuropean Communities andthe 9
Republic ofSlovenia
8. Free-Trade Agreement between theRepublic ofHungary andthe 9
Republic ofSlovenia
_______________
TheChairman welcomed delegations tothesixthmeeting oftheCouncil forTrade inGoods
which wasconvened byWTO/AIR/155. Henoted thatinaccordance withtheagreement reached at
thelastmeeting oftheCouncil on31July1995, thefollowing Organizations hadbeeninvited tothis
meetingoftheCouncil,namely:UN,UNCTAD,IMF,WorldBank,FAO,OECD,InternationalTextiles
andClothing Bureau, andtheWorld Customs Organization. Inthisregard, heproposed thatpending
theadoption ofcriteria andconditions forobserver status forInternational Intergovernmental
Organizations intheWTO andunless adelegation raised anobjection, those Organizations invited
tothismeeting oftheCouncil forTrade inGoods beinvited alsotoitsnextmeeting.
TheCouncil forTrade inGoods soagreed.G/C/M/6
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TheChairman proposed thattheCouncil postpone consideration ofagenda item2onthe"Draft
Decision ontheAdPersonam Status ofTMB Members" tothenextmeeting oftheCouncil. Inthe
lightofconsultations hehadheld, ithadappeared thatcertain delegations would needmore timeto
consider thedraftdecision circulated indocument G/C/W/20.
TheCouncil forTrade inGoods adopted theagenda contained indocument G/C/W/22 with
thisamendment.
1. Harmonized System -request foranextension ofthewaiver under Article IXoftheWTO
Agreement
- Pakistan
1.1 TheChairman recalled thatatthelastCouncil meeting heldon31July1995, ithadnotbeen
possible toreach consensus onPakistan 'srequest forasix-months waiver extension and,asaresult,
hehadproposed topursue consultations onthismatter. Consultations hadbeencarried out,andit
appeared thatagreement hadnowbeenreached between theparties concerned toextend thewaiver
requested byPakistan until31December 1995.
1.2 Therepresentative oftheEuropean Communities stated thatatthelastCouncil meeting of
31July1995, hisdelegation hadobjected totheextension ofPakistan 'swaiver bysixmonths. Inthe
meantime, consultations hadtaken placeandsome progress hadbeenmade. Inthelightofthissituation,
theCommunity would notraiseanyobjections totheextension ofthiswaiver untiltheendoftheyear.
Hisdelegation would, however, wishtoseeadditional progress being made, anditwaswiththishope
andunderstanding inmind thatagreement onthiswaiver request could begiven atthismeeting.
1.3 Therepresentative ofPakistan welcomed theCommunity 'sagreement tojointheconsensus
regarding Pakistan 'srequest forawaiver extension.
1.4 TheChairman proposed thattheCouncil approve theextension ofthewaiver granted toPakistan
until31December 1995andrecommend thatthedraftdecision contained indocument G/C/W/7/Rev.1
beforwarded totheGeneral Council foradoption.
1.5 TheCouncil forTrade inGoods soagreed .
- Malawi
1.6 TheChairman stated thatarequest byMalawi foranextension until31December 1995 of
thewaiver, which expired on30June1995, hadbeencirculated indocument G/L/24. Thisrequest
hasbeenmade inthecontext oftherenegotiation andtransposition ofMalawi 'sSchedule intothe
Harmonized System, andinaccordance withparagraph 1oftheUnderstanding inrespect ofWaivers
ofObligations under theGeneral Agreement onTariffs andTrade 1994. Adraftdecision hadbeen
circulated indocument G/C/W/19 toassist theCouncil initsconsideration ofthisrequest.
1.7 There wasnodiscussion onMalawi 'srequest.
1.8 TheChairman proposed thattheCouncil approve theextension ofthewaiver granted toMalawi
until31December 1995 andrecommend thatthedraftdecision contained indocument G/C/W/19 be
forwarded totheGeneral Council foradoption.
1.9 TheCouncil forTrade inGoods soagreed .G/C/M/6
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2. ApprovalofquestionnaireformatforsubsidynotificationsunderArticle25oftheAgreement
onSubsidies andCountervailing measures andunder Article XVIofGATT 1994
2.1 TheChairman stated thatthequestionnaire format forsubsidy notifications under Article 25
oftheAgreement onSubsidies andCountervailing Measures andArticle XVIofGATT 1994(contained
indocument G/SCM/6 dated 9August 1995) hadbeendeveloped bytheWorking Party onSubsidy
Notifications. ThisWorking Party wasestablished bytheCommittee onSubsidies andCountervailing
Measures asrequired bynote54toArticle 25oftheAgreement onSubsidies andCountervailing
Measures. Thequestionnaire format wasadopted bytheCommittee onSubsidies andCountervailing
Measures atitsspecial meeting of21July1995, andwasreferred totheCouncil forapproval because
theformat replaced anexisting format fornotifications under Article XVI:1 ofGATT 1947 which
hadbeenapproved bytheGATT CONTRACTING PARTIES (BISD 9S/193-194).
2.2 TheCouncil forTrade inGoods approved thequestionnaire format contained indocument
G/SCM/6.
2.3 TheChairman added thattheCouncil hadestablished aWorking Group onNotification
ObligationsandProceduresasrequiredbytheMarrakeshMinisterialDecisiononNotificationProcedures
whose terms ofreference were, interalia,toreview existing notification requirements "....with
aviewtosimplifying, standardizing andconsolidating these obligations tothegreatest extent possible
...."Theapproval ofthisquestionnaire format atthismeeting, innorespect, intended toprejudge
theoutcome ofthework ofthatGroup.
2.4 TheChairman alsoexpressed concern regarding thestatus ofnotifications inthesubsidies area.
Article 25.1oftheAgreement onSubsidies andCountervailing Measures stated that"...notifications
ofsubsidies shallbesubmitted notlaterthan30Juneofeachyear...."Thatdatewasnowthree
months passed, yetonlyahandful ofMembers hadcomplied, i.e.only16outof109Members of
theWTOhadmadethisrequirednotification.Thecurrentlowdegreeofcompliancewiththisnotification
obligation wasaveryserious matter. Timely andsubstantively adequate notifications wereanecessary
prerequisitetothereviewofsubsidyprogrammesintheSubsidiesCommittee.Theprocessofnotification
andreview wasessential toensure implementation ofthesubstantive requirements oftheAgreement.
Heurged allMembers whohadnotmade suchnotifications todosopromptly.
3. Caribbean Basin Economic Recovery Act-request forrenewal ofwaiver
3.1 TheChairmandrewattentiontothecommunicationfromtheUnitedStatescontainedindocument
G/L/25 requesting arenewal ofthewaiver relating totheCaribbean Basin Economic Recovery Act.
Adraftdecision hadalsobeencirculated indocument G/C/W/21 toassist theCouncil initsconsideration
ofthismatter.
3.2 TherepresentativeofUnitedStatesstatedthaton13September1995hisdelegationhadrequested
arenewal ofthewaiver fortheCaribbean Basin Initiative (CBI). Enacted in1984, theCBIwasone
ofhisgovernment'smajortradeinitiativestopromoteeconomicgrowthintheCaribbeanBasinsubregion.
TheCBIallowed thePresident toprovide duty-free treatment forimports ofcertain goods from
designated beneficiary countries andterritories intheCaribbean Basin. Theprogramme hadbeen
extremelysuccessful.Thetremendousexpansioninnon-traditionalexportsfromCBIbeneficiarycountries
since theinauguration oftheprogramme hadgreatly cushioned thedeclines intraditional exports,
primarily petroleum, from theregion. Onaregion-wide basis, thisexport diversification hadledto
amore balanced production andexport baseandhadresulted inareduction intheregion 'svulnerability
tofluctuations inmarkets fortraditional products. Asoriginally enacted, CBIwasatemporary
programme, settoexpire in1995. Duetothesuccess oftheprogramme, itwasmade permanentG/C/M/6
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in1990. Theexisting waiver fortheCBIwasduetoexpire attheendofthismonth. Therefore, his
government wasrequesting Members torenew thiswaiver foraperiod oftenyears.
3.3 Tenyears wasareasonable termfortheCBIwaiver, asCBIwasapermanent programme
andthetermwould beconsistent withtheprevious GATT waiver fortheCBIprogramme. Governments
andtraders would benefit fromincreased certainty inthemarket. Ashorter termwould diminish this
certainty. On21September 1995, hisdelegation hadorganized aplurilateral consultation inanattempt
toaddress questions other Members might haveabout thiswaiver request. Thatconsultation was
followed upbythecirculation ofadditional written answers tocertain questions raised .Hisdelegation
believed thatallofthepotential concerns hadbeensatisfactorily addressed andthatitshould nowbe
clearthatarenewal ofthewaiver would beextremely unlikely toadversely affect anyMembers 'trading
interests.
3.4 Hisdelegation waswilling toaccommodate several delegations onpoints theyhadmade in
respect tothedrafting. Inparticular: (a)hisdelegation agreed totheCommunity 'ssuggestion toreplace
thewords "benefitting from" inparagraph 1withthewords "asauthorized by"; thischange should
make itclearthattheproposed waiver wastiedexclusively totheexisting Caribbean Basin Economic
Recovery Act(CBERA) legislation andcould notbeinterpreted tocover possible changes suchasthose
referred toastheNAFTA parity; (b)hisdelegation agreed withboththeECandJapan thatexplicit
reference should bemade (most likely inparagraph 3)tothefactthattheUnited States would submit
anannual report inconnection withthewaiver andthatthisreport would berelated totheannual review
provision found inArticle IXoftheWTO Agreement. Inthisconnection, itmight beworthwhile
forinterested delegations tomeetinformally totrytodevelop some guidelines fortheconduct ofthe
annual reviews required byparagraph 4ofArticle IXoftheWTO Agreement; (c)hisdelegation had
beenasked whythe1995waiver didnotinclude aprovision likethatfound inparagraph 6ofthe1985
waiver; todosowould besuperfluous given thelanguage found inthethirdparagraph oftheUruguay
Round Understanding inrespect ofWaivers.
3.5 Although anumber ofdelegations hadmade drafting suggestions, nodelegation hadcome out
against arenewal ofthewaiver. Inlightofthis,hisgovernment asked forthesupport ofMembers
initsrequest forarenewal ofthewaiver fortheCBI. Itwashisdelegation 'shopethattheCouncil
forTrade inGoods could agree atthismeeting tosendthisrequest forward totheGeneral Council
consistent withtheprovisions ofparagraph 3(b)ofArticle IXoftheWTO Agreement. IftheCouncil
could agree tothisrequest, hisdelegation would work withinterested delegations torefine thetext
oftheDecision overthenextseveral days.
3.6 TherepresentativeofMoroccothankedtherepresentativeoftheUnitedStatesfortheexplanations
provided during theconsultations aswellasatthismeeting regarding therequest forarenewal ofthe
waiver from Article IofGATT 1994 which granted trading preferences tosome countries inthe
Caribbean Basin region. Hisdelegation could support thisinitiative which enabled those countries
todevelop theirexport capabilities. Thetime-period considered appeared tobefullyreasonable insofar
asitmade itpossible tojudge theeffects ofthislegislation ontheeconomic recovery oftheCaribbean
Basin countries. Morocco was, therefore, infavour ofadecision bytheCouncil which would
recommend thatthiswaiver begranted, ofcourse, withtheunderstanding thathisdelegation didhave
some comments concerning thetextofthedecision itself.
3.7 Therepresentative ofPerusupported therenewal ofthewaiver.
3.8 Therepresentative oftheEuropean Communities stated thathisdelegation agreed inprinciple
onthepolitical importance ofthisinitiative and,asaresult, ontheneedtorenew thewaiver. His
delegation could, therefore, joininarecommendation bytheCouncil forTrade inGoods totheGeneral
Council torenew thewaiver, moreparticularly afterhaving heard thestatement oftheUSrepresentativeG/C/M/6
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which recognized thatthesuggestions made bytheCommunity during theconsultations were valid
andwould betaken intoaccount. Arevised draftdecision which tookintoaccount these suggested
modifications should beprepared.
3.9 Therepresentative ofJapan stated thatasaresult oftheamendment oftheCBIin1990, the
traded items covered bythewaiver seemed tohavebeenincreased. Inparticular, duty-free treatment
wasadditionally given totheimports ofproducts made 100percent from UScomponents, which
expanded thescope ofthescheme approved bythe1985 waiver. Hisdelegation would liketohear
thereasons forthese changes. The1985 waiver didnotgivefreediscretion totheUSgovernment
tochange thecoverage ofitems andeligible countries, andtherefore, hisdelegation requested an
assurance thattheUS,henceforth, would notonlynotify anychange butwould alsoprovide Members
withsufficient timeforprior consultations before anychange wasimplemented. Hisdelegation also
asked foranexplanation onthenecessity ofrenewing thewaiver fortenyears. Hisdelegation stated
thatthefactthattheCBIprogramme hadbeenmade permanent, thatthe1985 waiver hadalsobeen
granted fortenyears andthatgovernments andindustries concerned needed atenyearextension, were
notconvincing reasons.
3.10 Therepresentative ofAustralia thanked theUSrepresentative forhisexplanations onthe
importance ofthiswaiver. Hisdelegation alsowelcomed theopportunity forfurther consultations
which theUnited States delegation hadoffered. Inprevious consultations anddiscussions, Australia
hadexpressed some concern regarding trade insugar. Hisdelegation hadstated thatitspreference
would havebeentoincorporate inthedraftDecision asmuch aspossible ofthewording ofparagraph 4
oftheoriginal waiver. TheUnited States delegation hadprovided, during theconsultations heldon
21September 1995, information justifying thewording ofthedraftdecision renewing thewaiver, but
hisdelegation would appreciate more timetoconsider thearguments advanced bytheUnited States.
3.11 Therepresentative ofIndia thanked theUSrepresentative forexplaining thereasons forthe
proposal andalsoforgiving anindication thatasfarasthetextofthedecision wasconcerned theUnited
States waswilling toaccommodate theconcerns ofvarious delegations. Inprinciple, India supported
therequest oftheUSdelegation fortherenewal ofthewaiver.
3.12 TherepresentativeofCanadasupported,inprinciple,theUSrequest.However,itwasimportant
torecognise thatthiswasthefirstrequest intheWTO forawaiver from Article IofGATT 1994.
Itwasimportant thatMembers made surethat,inthisfirstcase, thestricter conditions under which
waivers weretobegranted inthisnewinstitution wererespected. Hisdelegation waspleased tohear
thattheUnited States wereprepared, intheconsultations tobeheld, tobemore precise asconcerned
theactual scope ofthewaiver tobegranted. Assuming asatisfactory outcome ofthose discussions,
hisdelegation would support thiswaiver request attheGeneral Council meeting.
3.13 Therepresentative ofCosta Ricasupported therequest fortherenewal ofthewaiver and
concurred withthereasons advanced bytheUS.
3.14 Therepresentative ofMexico thanked therepresentative oftheUnited States fortheinformation
provided. Thisissuewasofinterest notonlytoMexico butforthemultilateral trading system ascould
beseenfromthestatements made byother delegations. Hisdelegation supported theproposal made
bytheUnited States toforward thematter totheGeneral Council, withthepossibility forMembers
toexpress views regarding therefinement ofthedraftdecision.
3.15 Therepresentative ofVenezuela supported therequest from theUnited States.
3.16 Therepresentative ofNorway, thanking therepresentative oftheUnited States forthe
explanationsprovided,hadnoobjectiontotherequestforawaiverandfullyconcurredwiththeeconomicG/C/M/6
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andpolitical reasons putforward. Asamatter ofprinciple hisdelegation associated itself withthe
comments made byCanada ontheuseofsuchawaiver.
3.17 Therepresentative ofMalaysia, onbehalf ofASEAN member states, supported theUnited
States request. Hisdelegation welcomed thepossibility offurther consultations andlooked forward
toclarifications bytheUnited States onthepoints raised atthismeeting.
3.18 Therepresentative ofColombia supported therenewal ofthewaiver, which hadbeenrequested
withtheaimoffacilitating economic recovery intheCaribbean Basin.
3.19 Therepresentative ofZimbabwe pointed outthatsmall countries werethemain beneficiaries
oftheCBIProgramme. Asimilar decision hadbeentaken lastyearconcerning another group of
countries facing problems. Hisdelegation supported inprinciple therenewal ofthewaiver request,
inparticular astheUSdelegation hadindicated itsreadiness toaccommodate thevarious concerns
thathadbeenraised byanumber ofdelegations.
3.20 Therepresentative oftheCzech Republic indicated hisdelegation 'ssupport fortherenewal
ofthewaiver, especially aftertheclarification provided bytherepresentative oftheUnited States.
3.21 Therepresentative ofPakistan supported therequest bytheUnited States andlooked forward
totheclarifications which hadbeenpromised.
3.22 Therepresentative ofSenegal supported therequest forarenewal ofthewaiver. Senegal was
familiar, through itsexperience, withtheverypositive effects ofsuchawaiver ontheeconomy in
general, andinparticular ontrade ofdeveloping countries.
3.23 Therepresentative ofTrinidad andTobago associated hisdelegation withthestatement made
bythedelegation ofCosta Rica, oneoftheother beneficiary countries oftheCBI, andexpressed
appreciationtoallMemberswhohadindicatedtheirwillingnesstogoalongwiththeproceduresuggested
bytheUnited States.
3.24 TheChairman stated thatthereappeared tobeconsensus inprinciple andinsubstance torenew
thewaiver requested bytheUnited States. Heproposed, therefore, thattheCouncil approve therequest
fromtheUnited States fortherenewal ofthewaiver relating totheCaribbean Basin Economic Recovery
Act,oncondition thatinfurther consultations tobeheldshortly thequestions raised andthedrafting
changes mentioned beclarified. Thedraftdecision withtheagreed changes could thenbeforwarded
asarevision ofdocument G/C/W/21 totheGeneral Council withtherecommendation thatitbeadopted.
3.25 TheCouncil forTrade inGoods soagreed.
4. Free-Trade Agreement between Latvia andtheEuropean Communities
- Communication fromtheEuropean Communities (WT/REG7/N/1 andWT/REG7/1)
4.1 TheChairman drewattention tothecommunication fromtheEuropean Communities contained
indocument WT/REG7/N/1, indicating theentry intoforce on1January 1995 oftheFreeTrade
Agreement between theECandLatvia. ThetextoftheAgreement wascirculated indocument
WT/REG7/1.
4.2 Herecalledthat,sincetheentryintoforceoftheWTO,theCouncilhadestablishedthreeworking
parties toexamine agreements under Article XXIV -i.e.concerning theEnlargement oftheEuropean
Communities, theEC/Romania, andtheEC/Bulgaria Free-Trade Agreements. TheGeneral CouncilG/C/M/6
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hadagreed, atitsmeeting of11July1995, toadapt theterms ofreference ofallGATT 1947working
parties onArticle XXIV agreements sothatthese agreements could beexamined inlightofGATT
1994 obligations. Inallthese cases, common terms ofreference oftheworking parties wereadopted
along with anunderstanding read outatthemeeting oftheCouncil forTrade inGoods on
20February 1995. Thus, allcurrently existing fifteen Article XXIV working parties were working
under common terms ofreference.
4.3 Therefore, inlinewiththatbackground, heproposed thattheCouncil forTrade inGoods agree
toestablish aworking party withthefollowing terms ofreference andmembership:
Terms ofreference:
"toexamine, inlightoftherelevant provisions oftheGATT 1994, theFreeTrade
Agreement between Latvia andtheEuropean Communities andtosubmit areport to
theCouncil forTrade inGoods."
4.4 Headded thathisstatement concerning theunderstanding, made under agenda item7ofthe
meetingoftheCouncilforTradeinGoodson20February1995andcontainedindocumentWT/REG3/1,
applied mutatis mutandis tothisworking party. Itwasalsounderstood that,during theexamination,
dueaccount would betaken oftheintrinsic differences between customs unions andfree-trade areas.
Membership:
"TheWorking Party would beopentoallMembers oftheWTO andother signatories
oftheFinal Actthatwerecontracting parties totheGATT 1947 andwereeligible to
become original Members oftheWTO indicating theirwishtoserve onit."
4.5 TheChairman proposed thathebeauthorized todesignate theChairperson oftheWorking
Party inconsultation withthedelegations principally concerned.
4.6 TheCouncil forTrade inGoods soagreed.
5. Free-Trade Agreement between Estonia andtheEuropean Communities
- Communication from theEuropean Communities (WT/REG8/N/1 andWT/REG8/1)
5.1 TheChairman drewattention tothecommunication fromtheEuropean Communities contained
indocument WT/REG8/N/1, which indicated theentry intoforce on1January 1995oftheFreeTrade
Agreement between theECandEstonia. ThetextoftheAgreement wascirculated indocument
WT/REG8/1.
5.2 TheChairman proposed thattheCouncil forTrade inGoods agree toestablish aworking party
withthefollowing terms ofreference andmembership:
Terms ofreference:
"toexamine, inlightoftherelevant provisions oftheGATT 1994, theFreeTrade
Agreement between Estonia andtheEuropean Communities andtosubmit areport
totheCouncil forTrade inGoods."
5.3 Headded thathisstatement concerning theunderstanding, made under agenda item7ofthe
meetingoftheCouncilforTradeinGoodson20February1995andcontainedindocumentWT/REG3/1,G/C/M/6
Page8
applied mutatis mutandis tothisworking party. Itwasalsounderstood that,during theexamination,
dueaccount would betaken oftheintrinsic differences between customs unions andfree-trade areas.
Membership:
"TheWorking Party would beopentoallMembers oftheWTO andother signatories
oftheFinal Actthatwerecontracting parties totheGATT 1947 andwereeligible to
become original Members oftheWTO indicating theirwishtoserve onit."
5.4 TheChairman proposed thathebeauthorized todesignate theChairperson oftheWorking
Party inconsultation withthedelegations principally concerned.
5.5 TheCouncil forTrade inGoods soagreed.
6. Free-Trade Agreement between Lithuania andtheEuropean Communities
- Communication from theEuropean Communities (WT/REG9/N/1 andWT/REG9/1)
6.1 TheChairman drewattention tothecommunication fromtheEuropean Communities contained
indocument WT/REG9/N/1, which indicated theentry intoforce on1January 1995oftheFreeTrade
Agreement between theECandLithuania. ThetextoftheAgreement wascirculated indocument
WT/REG9/1.
6.2 TheChairman proposed thattheCouncil forTrade inGoods agree toestablish aworking party
withthefollowing terms ofreference andmembership:
Terms ofreference:
"toexamine, inlightoftherelevant provisions oftheGATT 1994, theFreeTrade
Agreement between Lithuania andtheEuropean Communities andtosubmit areport
totheCouncil forTrade inGoods."
6.3 Headded thathisstatement concerning theunderstanding, made under agenda item7ofthe
meetingoftheCouncilforTradeinGoodson20February1995andcontainedindocumentWT/REG3/1,
applied mutatis mutandis tothisworking party. Itwasalsounderstood that,during theexamination,
dueaccount would betaken oftheintrinsic differences between customs unions andfree-trade areas.
Membership:
"TheWorking Party would beopentoallMembers oftheWTO andother signatories
oftheFinal Actthatwerecontracting parties totheGATT 1947 andwereeligible to
become original Members oftheWTO indicating theirwishtoserve onit."
6.4 TheChairman proposed thathebeauthorized todesignate theChairperson oftheWorking
Party inconsultation withthedelegations principally concerned.
6.5 TheCouncil forTrade inGoods soagreed.G/C/M/6
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7. Cooperation Agreement between theEuropean Communities andtheRepublic ofSlovenia
- Notification fromtheParties totheAgreement (WT/REG10/N/1 andWT/REG10/1)
7.1 TheChairmandrewattentiontothenotificationfromtheEuropeanCommunitiesandtheRepublic
ofSlovenia contained indocument WT/REG10/N/1, inwhich theyindicated theentry intoforce on
19July1993oftheCooperation Agreement concluded between themselves. ThetextoftheAgreement
wascirculated indocument WT/REG10/1.
7.2 Therepresentative oftheEuropean Communities stated thatthenotification hadbeenmade
inadesire toensure fulltransparency, butnotwiththeview tocreating aworking group, forthe
following reasons: since thecooperation agreement hadbeenconcluded between Slovenia andthe
European Community, aEurope Agreement hadsubsequently beennegotiated which wasbroader in
scope thanthecooperation agreement. Itwasofthesame nature asother agreements thathadbeen
concluded withcountries inCentral andEastern Europe. Thisagreement would soonbeapproved
bythemember states oftheECandwould thenbenotified totheWTO andatthattimetheexamination
ofthatAgreement could beenvisaged intheframework ofaworking party.
7.3 TheChairman proposed thattheCouncil forTrade inGoods takenoteofthenotification and
thesupplementary information given bytheEC.Action ontheannounced notification oftheEurope
Agreement between theECandSlovenia would betaken induecourse bytheCouncil.
7.4 TheCouncil forTrade inGoods soagreed.
8. Free-Trade Agreement between theRepublic ofHungary andtheRepublic ofSlovenia
- Notification from theParties totheAgreement (WT/REG19/N/1 andWT/REG19/1)
8.1 TheChairman drew attention tothenotification from Hungary andSlovenia contained in
document WT/REG19/N/1, inwhich theyindicated thesignature on6April 1994 ofaFreeTrade
Agreement between themselves. ThetextoftheAgreement wascirculated indocument WT/REG19/1.
8.2 TheChairman proposed thattheCouncil forTrade inGoods agree toestablish aworking party
withthefollowing terms ofreference andmembership:
Terms ofreference:
"toexamine, inlightoftherelevant provisions oftheGATT 1994, theFreeTrade
AgreementbetweentheRepublicofHungaryandtheRepublicofSloveniaandtosubmit
areport totheCouncil forTrade inGoods."
8.3 Headded thathisstatement concerning theunderstanding, made under agenda item7ofthe
meetingoftheCouncilforTradeinGoodson20February1995andcontainedindocumentWT/REG3/1,
applied mutatis mutandis tothisworking party. Itwasalsounderstood that,during theexamination,
dueaccount would betaken oftheintrinsic differences between customs unions andfree-trade areas.
Membership:
"TheWorking Party would beopentoallMembers oftheWTO andother signatories
oftheFinal Actthatwerecontracting parties totheGATT 1947 andwereeligible to
become original Members oftheWTO indicating theirwishtoserve onit."G/C/M/6
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8.4 TheChairman proposed thathebeauthorized todesignate theChairperson oftheWorking
Party inconsultation withthedelegations principally concerned.
8.5 TheCouncil forTrade inGoods soagreed.
8.6 TheChairman noted that,inaccordance withagenda items 4,5,6,and8,fournewworking
parties hadbeenestablished. Asaresult, henowhadtheresponsibility offinding officials tochair
suchmeetings. Itwasincreasingly difficult tofindasufficient number ofofficials tochair thelarge
number ofcommittees andworking parties established under theWTO Agreements. Thisproblem
wascompounded asfewpotential Chairpersons would beavailable forthefullduration oftheworking
party process required toexamine theregional trading arrangements. Inlightofthissituation, he
informed theCouncil thathewould beholding consultations withaviewtofinding howbesttodeal
withthissituation andwould report backonthese consultations induecourse.