RESTRICTED
PREPARATORY COMMITTEE PC/IPL/M/9
FOR THE 13December 1994
WORLD TRADE ORGANIZATION
(94-2619)
SUB-COMMITTEE ONINSTITUTIONAL ,
PROCEDURAL AND LEGAL MATTERS
MINUTES OFTHE MEETING HELD ON18NOVEMBER 1994
1. TheSub-Committee onInstitutional, Procedural andLegal Matters helditsninth meeting on
18November 1994 under theChairmanship ofMr.K.Kesavapany (Singapore).
A. Paragraph 8(b)(ii) oftheDecision establishing thePreparatory Committee
(i) Terms ofreference forWTO bodies
2. TheChairman recalled thatatitsmeeting on11November, theSub-Committee hadpostponed
consideration, untilitspresent meeting, oftheterms ofreference proposed fortheWTO Committee
onTrade andDevelopment (document 2736), aswellasofthose fortheCommittee onMarket
Access (document 2626), because ofthelatecirculation ofthesetexts. Hedrewattention tofootnote 4
oftheproposed terms ofreference fortheCommittee onTrade andDevelopment, which referred to
action bytheSub-Committee, andrecalled hissuggestion atthe11November meeting thatparagraphs 6
and7ofthese terms ofreference bedeleted soastobeinconformity withtheapproach followed for
terms ofreference ofother WTO Committees. Drawing attention totheNote onpage2of
document 2736, hesaidthatasaresult oftheagreement onthedraft terms ofreference inthe
consultations, thefollowing words attheendofthefirstsentence oftheNoteshould havebeendeleted:
"andthenetfood-importingdevelopingcountryMembers."HeproposedthattheSub-Committeeapprove
theterms ofreference contained indocument 2736, asamended bythedeletion ofparagraphs 6and7.
3. TheSub-Committee soagreed.
4. TheChairman thenstated thattheprogramme ofwork oftheWTO Committee onTrade and
Development for1995would include asapriority thereview oftheimpact oftheresults oftheUruguay
Round ondeveloping country Members, inparticular theleast-developed country Members. Itwould
alsoinclude consideration ofthequestion ofcredit andrecognition forautonomous tradeliberalization
measures.
5. TheSub-Committee tooknoteofthestatement.
6. TheChairman thendrewattention totheterms ofreference fortheWTO Committee onMarket
Access indocument 2626, andproposed thattheybeapproved.
7. TheSub-Committee soagreed.
8. TheChairman thenstated thattheterms ofreference fortheCommittee onMarket Access
didnotcreate ordiminish anyrights andobligations oftheMembers under GATT 1994, including
those inrespect ofnotification.PC/IPL/M/9
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9. TheSub-Committee tooknoteofthestatement.
10. TheChairman, turning towork under theContact Groups, recalled thatatitsmeeting on
11October, theSub-Committee hadpostponed action onthereport bytheChairman oftheContact
Group onAgriculture (document 2463), regarding theAgreement onSanitary andPhytosanitary
Measures. With regard totheterm"international standard" inbox7oftheproposed format forthe
notification ofsanitary andphytosanitary measures, heclarified thatinthecourse ofitsdiscussions,
theContact Group hadagreed thatbythisterm wasmeant either astandard, guideline or
recommendation. Heproposed thattheSub-Committee approve thereport bytheChairman ofthe
Contact Group indocument 2463, andtherecommendations therein.
11. TheSub-Committee soagreed andtooknoteofthestatement.
12. TheChairman saidthattheContact Group onAgriculture hadmetthedaybefore tofurther
consider notification requirements andformats fortheWTO Committee onAgriculture, aswellas
thereport tobemade totheSub-Committee. Although substantial progress hadbeenmade, withthe
potential forconvergence onmostissues, further informal consultations andwork werenecessary if
substantial agreement onnotification requirements wastobeachieved. Ithadbeenagreed, therefore,
thattheContact Group would holdafurther meeting inthelatter partofthemonth. TheSecretariat
wastoprepare arevised andsimplified version ofthenotification requirements andformats, with
annotations asappropriate, inthenearfuture.
13. TheSub-Committee tooknoteofthestatement.
14. With regard totheContact Group onAnti-Dumping, Subsidies andSafeguards,
Mr.Lundby (Norway), Coordinator oftheContact Group, saidthattheGroup hadheldanumber
ofmeetings andhadbeenworking intensively. Agreement hadbeenreached asregards thenotifications
onnon-actionable subsidies under Article 8:3oftheSubsidies Agreement. Withregard tonotifications
underArticles28:1and29:3,therewasalsoagreementintheContactGroup.Ontwoquestions,namely,
notifications under paragraphs 11and12ofArticle 27,some work remained tobedone, andameeting
would beheldon21November totrytoresolve these matters. Awritten report from theContact
Group would subsequently bemade available on23November. TheContact Group wasalsoworking
onthequestionofarbitrationunderArticle8:5oftheSubsidiesAgreement,andthisworkwasconsidered
important byallparties. Ifagreement were reached oncertain elements considered tobeuseful in
thiscontext, theGroup might wishtomake asecond report totheSub-Committee atalaterstage on
thismatter.
15. TheSub-Committee tooknoteofthestatement.
16. With regard totheContact Group onTRIPS, theChairman recalled thatatitsmeeting on
11November, theSub-Committee hadpostponed action onthereport bytheChairman ofthat
Group (document 2666). Heproposed thattheSub-Committee approve thereport bytheChairman
oftheContact Group indocument 2666, andtherecommendations therein.
17. TheSub-Committee soagreed.
18. With regard tomatters relating toTRIMs, theChairman recalled thatatitsmeeting on
23September, theSub-Committee hadasked theContact Group onTRIPS toundertake anynecessary
preparatory work onnotification procedures fortheTRIMs Agreement. Areport bytheChairman
ofthatContactGroupcontainingarecommendedformatfornotificationsunderArticle5:1oftheTRIMs
Agreement hadbeencirculated indocument 2766. However, some questions regarding theformat
hadsubsequently beenraised. Amendments tothedocument would therefore beneeded, which thePC/IPL/M/9
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Secretariat intended tocirculate assoonaspossible. Hesuggested thattheSub-Committee revert to
thismatter atitsnextmeeting.
19. TheSub-Committee tooknoteofthestatement andsoagreed.
20. TheChairmanaddedthattheContactGroupswhichhadworkoutstandingshouldtrytocomplete
itbythemiddle ofthefollowing week.
21. TheSub-Committee tooknoteofthestatement.
(ii) Rules ofprocedure forWTO Bodies
22. TheChairman recalled thatatitsmeeting on11November, theSub-Committee hadhada
preliminarydiscussionondocument2627/Rev.1,whichwasacompilationoftheSecretariat'snon-papers
concerning draftrules ofprocedure fortheMinisterial Conference, theGeneral Council, theTrade
Policy Review Body andtheDispute Settlement Body (DSB), aswellasdraftguidelines forobserver
status forgovernments andorganizations. Because ofthelatecirculation ofthisdocument, theSub-
Committee hadpostponed action onthese papers untilthepresent meeting.
23. With regard toparagraph 3ofthedraft guidelines forobserver status forinternational
intergovernmentalorganizations,herecalledthatatthe11Novembermeeting,theCommunity,supported
byIndia, hadasked thatthewords "oroftheDispute Settlement Body" attheendoftheparagraph
beretained without square brackets inthefinaltextapproved bytheSub-Committee. Hehadsince
heldconsultations onthismatter, andwasnotinaposition toreport agreement thereon.
24. With regard toRule28oftherulesofprocedure fortheMinisterial Conference andRule36
ofthose fortheGeneral Council, relating todecision-making, thequestion hadbeenraised thatwhen
amember requested, ortheChairman suggested, thatavotebetaken bytheraising ofcards orby
rollcall,howthisshould bedecided upon. Inthisconnection, itwastheunderstanding ofdelegations,
based oncustomary practice, thatifsucharequest orsuggestion weremade, itwould bedecided on
bythemeeting.
25. Onanother matter, andonthebasis ofconsultations, hesuggested thatRule9ofRules for
theMinisterial Conference andRule12ofthose fortheGeneral Council, which dealtwithobserver
status ofsignatories oftheFinal Actwhich hadnotyetbecome WTO members atthetimeoftheWTO 's
entry intoforce, bedeleted fromtheRules onthecondition thatspecific transitional arrangements be
agreed upon regarding thenature oftheparticipation ofthese governments intheWTO. These two
Rules, indeed, addressed anissueofaprovisional andtransitional nature, anddidnothaveanyplace
inrules ofprocedures which weremeant tobeofamore permanent nature. Ittherefore made sense
todealwiththematter referred toinRules 9and12inthecontext oftransitional arrangements.
Consultations onthisissuewereunder way,andonewould alsoaddress inthatcontext theparticipation
ofStates orseparate customs territories thatwere GATT 1947 contracting parties intheprocess of
ratification oftheWTO Agreement andwhich werenotinaposition tobecome members oftheWTO
from dayone.
26. Therepresentative oftheEuropean Communities saidthatwhile hisdelegation could agree
totherules ofprocedure contained indocument 2627/Rev.1, itcould notagree totheguidelines on
observer status forinternational intergovernmental organizations because ofthelackofconsensus on
thelanguage toberetained inparagraph 3,andtowhich theChairman hadreferred. Given thatthis
wasnotanurgent matter thatnecessarily hadtobedecided before theentry intoforce oftheWTO,
andgiven thestageoftheSub-Committee 'swork, itwould bebesttowithdraw thetextoftheproposed
guidelines andtoresume discussion onitatthefirstmeeting oftheWTO 'sGeneral Council. InthePC/IPL/M/9
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meantime, onecould continue thepractice thathadbeenfollowed inthePreparatory Committee on
observers andinvite tomeetings oftheGeneral Council thefourinternational organizations which had
thusfarbeeninvited tomeetings oftheCommittee. Thequestion ofobserver status intheDispute
Settlement Body wasverysensitive fortheCommunity, andsince itwould notbepossible toagree
onthisatthepresent time, theCommunity preferred topostpone thematter untillater.
27. Therepresentative ofIndia saidthathisGovernment believed, liketheCommunity, thatthe
DSBwould bedealing withsensitive matters. India wasreflecting further onwhether international
organizations should beinvited asobservers tomeetings oftheDSB, andsupported theCommunity 's
suggestion thatconsideration ofthismatter bepostponed. Thiswould provide moretimeforreflection,
andadecision thereon wasnotrequired immediately.
28. Therepresentative ofNewZealand saidthathisdelegation would prefer toresolve theissue
raised bytheCommunity andIndia assoon aspossible thisyear. NewZealand could support a
consensus tohavethereference totheDSBreinstated inthetextoftheguidelines, asproposed by
theCommunity, andwished tounderline thatitattached importance totheprinciple ofreciprocity that
hadbeenmentioned earlier byother delegations, andwhich wasalready identified intheguidelines.
OntheChairman 'ssuggestion todelete Rule9oftheRules fortheMinisterial Conference andRule12
ofthose fortheGeneral Council, hisdelegation could support itbutwished tobecareful about the
implications ofpossibly creating various classes ofobservership.
29. Therepresentative ofSwitzerland saidthat,ashisdelegation hadstated onearlier occasions,
asolution hadtobefound concerning transitional arrangements fortheparticipation intheWTO of
States orseparate customs territories thatwere GATT 1947 contracting parties intheprocess of
ratification oftheWTO Agreement, butwhich werenotinaposition tobecome members oftheWTO
from dayone. Thepossibility thattheycould participate intheformal andinformal work ofWTO
bodies should beprovided. Such special arrangements should clearly belimited intimeandshould
notgivethem theright tovoteinWTO bodies. However, itappeared from ongoing consultations
thatanexception tothevoting rulewould existinthejointGATT 1947/WTO Budget Committee.
Such anapproach seemed appropriate because work related tothetextssigned inMarrakesh would
havetobecompleted inthedifferent WTO bodies, suchasthatintheservices sector. Also, oneneeded
torecall thatthere would beacommon budget fortheGATT 1947 andtheWTO. Hisdelegation
believed thatthecontracting parties itwasreferring tocould notbeobservers inthetraditional sense.
Hisdelegation could onlyagree totheapproval oftherulesofprocedures fortheMinisterial Conference
andtheGeneral Council aswellasoftheguidelines forobserver status forgovernments intheWTO
withtheunderstanding thatanadequate solution would befound, intheChairman 'sconsultations,
totheconcerns ithadraised.
30. Therepresentative ofMexico associated hisdelegation withtheCommunity 'sstatement and
saidthatthequestion ofreciprocity inthecontext ofobserver status would havetobeconsidered in
greater detail.
31. Therepresentative ofCanada saidthatsince there wassensitivity oncertain sections ofthe
rulesofprocedure andtheirannexes, itmight beappropriate toallow more timefortheconsideration
oftheissues stillunresolved. Itmight, however, beunfortunate toremove thetextonguidelines for
international organization observers ifthatmeant losing thebenefit ofthework thathadbeendone
thusfar.Analternative might betoputthattextinsquare brackets. Delegations could thenbeallowed
moretimetoconsider thismatter, butwould beabletorevert tothetextasitpresently stood andperhaps
tomodify it.Asregards Rule9oftheRules fortheMinisterial Conference andRule12ofthose for
theGeneral Council, Canada wassatisfied withthepresent text.However, while itwould beagreeable
todeleting thetwoRules andconsidering thematter raised inthem inanother forum, ifthisweresoPC/IPL/M/9
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decided, Canada would bring tothatconsideration thesame underlying philosophy asithadinthe
context oftherules ofprocedure.
32. Therepresentative ofPoland saidthatthematter raised bySwitzerland wasofimportance for
asmooth andfairtransition process, andthathisdelegation wished tobeassociated withthefurther
consultations thatmight beheldonthissubject.
33. Therepresentative ofBrazil supported theCommunity 'sviewthatthesquare brackets around
thewords "oroftheDispute Settlement Body" inparagraph 3oftheguidelines forobserver status
forinternational organizations should beremoved. Hisdelegation would beagreeable topostponing
approval ofthetextontheguidelines asawhole untillatersince there wasnourgent needforitto
beapproved now. Theguidelines aspresently drafted weregood, andwithfurther reflection asolution
acceptable toallcould bereached onthetextofparagraph 3atalaterstage.
34. Therepresentative ofNorway, speaking onbehalf oftheNordic countries, associated their
countries withtheCommunity 'sstatement.
35. TherepresentativeofUruguaysaidthatherdelegationcouldagreetotheCommunity'ssuggestion
withregard toparagraph 3oftheguidelines onobserver status forinternational organizations. Uruguay
alsounderstood Switzerland 'sconcerns, towhich asolution hadtobefound.
36. Therepresentative ofNewZealand supported Canada 'sproposal thatsquare brackets beput
around thetextonguidelines forinternational organization observers asawhole.
37. Therepresentative ofChina associated hisdelegation withSwitzerland 'sstatement withregard
toRule9oftheMinisterial Conference andRule12oftheGeneral Council.
38. Therepresentative ofMorocco saidthathisdelegation hadmade proposals ontheRules of
Procedure, inparticular concerning thestatus ofobservers. Morocco would beflexible initsposition
toenable theChairman tofindasolution acceptable toallparticipants.
39. Therepresentative ofPakistan shared Switzerland 'sconcerns withregard toRule9ofthe
Ministerial Conference andRule12oftheGeneral Council because oftheimportance itattached to
asmooth transition totheWTO. Hisdelegation would agree tothedeletion ofthese rules andthe
discussion ofthematter raised intheminthecontext oftransitional arrangements. Likeothers, Pakistan
hoped tobeassociated withthework onthissubject.
40. Therepresentative oftheUnited States saidthathisdelegation would beunable tojoininany
consensus onthetextonobserver status forinternational organizations ifthetextprohibited observer
status intheDSB, given thatinternational organizations hadformany years observed discussions of
dispute settlement matters intheGATT 1947 Council, aswellasforthereasons hisdelegation had
stated onearlier occasions concerning theperceived benefits ofsuchobservership. AsCanada had
suggested, thetextasawhole could beputinsquare brackets. However, iftheonlyareaofdisagreement
wastherelevant textinparagraph 3,which wasinanyevent reflected insquare brackets, thetextcould
perhaps goforward asitstood. With respect tothedeletion ofRule9oftheMinisterial Conference
andRule12oftheGeneral Council, hisdelegation would reflect ontheramifications. Inthefuture,
anumber ofdelegations would beinspecial situations withrespect toobligations under boththeWTO
Agreement andGATT 1947, andhisdelegation looked forward totheconsultations suggested bythe
Chairman.
41. TheChairman saidthatinlightofthecomments made, hewould suggest thatthewhole text
oftheguidelines onobserver status forinternational organizations beputintosquare brackets, sothatPC/IPL/M/9
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theconsiderable work donethereon would notbelost.Theprocess would befurthered ifallthesquare
brackets could beremoved insubsequent consideration. Henoted thattherewasnodisagreement over
hisproposal thatRule9oftheMinisterial Conference andRule12oftheGeneral Council bedeleted.
However, theideasreflected therein, together withthecomments bySwitzerland, supported byChina,
would betaken intoconsideration intheongoing discussions ontransitional arrangements.
42. Therepresentative oftheEuropean Communities saidhisdelegation recognized thatalarge
amountofworkhadalreadybeendonewithrespecttoguidelinesforinternationalorganizationobservers,
andbelieved thatthiswould notbe"lost". Hisdelegation could not,however, accept thatthesquare
brackets beexpanded toembrace thewhole ofthetext,because thiswasnotamatter which could be
resolved inthetimeleftuntiltheImplementation Conference. TheCommunity believed thiswasa
matter ofsubstance which, inparticular, concerned matters relating toreciprocity withacertain number
ofinternational organizations. Thistextshould therefore betaken upagain intheWTO 'sGeneral
Council. Areference tothismatter could bemade inthereport ofthePreparatory Committee tothe
WTO, andthewhole ofthetextcould betransmitted, asabasisforfuture work, totheGeneral Council.
Inthisway, thetextwould notbelost. Hereiterated thattheCommunity could notagree tothe
guidelines atthisstage, norwithin theveryshortperiod oftimestillleftforthework ofthePreparatory
Committee tobeconcluded.
43. TheChairman proposed thattheSub-Committee agree toproceed assuggested bythe
Community, namely thatthetextonguidelines forinternational organization observers betransmitted,
asabasis forfuture work, totheWTO 'sGeneral Council. Heproposed alsothatRule9ofthe
Ministerial Conference andRule12oftheGeneral Council bedeleted ontheunderstanding thatthe
issues reflected therein would bedealt with inthecontext oftheconsultations ontransitional
arrangements. Hethenproposed thattherules ofprocedure indocument 2627/Rev.1, asamended
atthepresent meeting, beapproved.
44. TheSub-Committee tooknoteofthestatements andsoagreed.
45. Therepresentative ofChina saidthathisdelegation wasconcerned about theissueofcredentials
ofrepresentatives from separate customs territory Members. China 'sunderstanding ofthefootnote
toRule7oftheRules ofProcedure forSessions oftheMinisterial Conference wasthatthecredentials
ofrepresentatives from separate customs territory Members would beissued onlybythecompetent
authority incharge ofitseconomic affairs relating totheWTO, andthatsuchcompetent authority would
notmean theso-called "Ministry offoreign affairs" ofsuchseparate customs territories, oranyother
organs which hadimplication astosovereignty. Thisunderstanding wasconsistent withthestatement
made bytheChairman oftheGATT 1947 Council on29September 1992, which embodied the
understanding reached between China andcontracting parties totheGATT 1947.1
46. Therepresentative ofHong Kong saidhisdelegation wished tomake clearthatalthough the
Sub-CommitteehadapprovedtheRulesofprocedureindocument2627/Rev.1,asamendedatthepresent
meeting, some parts ofthetextstillremained insquare brackets.
47. TheSub-Committee tooknoteofthestatements.
48. Therepresentative oftheUnited States recalled thatearlier drafts oftherules ofprocedure
thattheSub-Committee hadapproved atitspresent meeting, hadcontained language about thetreatment
ofrecords ofmeetings andother documents, intheexpectation thattheresults ofdiscussions inthe
GATT 1947 Council onderestriction procedures would betaken intoaccount bytheSub-Committee
1SeeC/M/259, item2.PC/IPL/M/9
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orthePreparatory Committee inconnection withrulesofprocedure. Hisdelegation, which hadbeen
theproponent ofthisissue, intended nowtopursue itintheWTO, given thetimeconstraints. The
question oftheissuance, circulation andderestriction ofdocuments remained important forthe
United States, andhisdelegation might seekguidance inorder tomake some progress intheframework
ofthePreparatory Committee, sothatthework done could bereflected insome form andthatthe
WTO could thenconsider procedures inthisregard early on.
49. Therepresentative oftheEuropean Communities supported theUnited States 'suggestion to
pursue discussions onderestriction intheWTO context, andbelieved thatonewould beabletomake
more progress inthatframework.
50. TheSub-Committee tooknoteofthestatements.
51. TheChairman, turning torulesofethical conduct forthesettlement ofdisputes, recalled that
atthemeeting oftheSub-Committee on11November, hehadproposed thatherequest amember
oftheSub-Committee toundertake plurilateral consultations onthismatter. Heinformed the
Sub-Committee thatMr.Armstrong (New Zealand), hadaccepted tohelpinthetaskofconsulting
onthismatter. Interested delegations were invited tosubmit preliminary written comments on
document PC/IPL/W/12 totheSecretariat bythemorning of22November. Heunderlined thatthese
comments would bepreliminary, andthathewasattempting tocarry thisprocess asfarandasfast
ashecould, andthathewould leave conclusions from thatprocess tobedrawn byMr.Armstrong.
52. TheSub-Committee tooknoteofthestatement.
B. Paragraph 8(b)(iii) oftheDecision establishing thePreparatory Committee
- Arrangements foreffective cooperation withother intergovernmental organizations
53. TheChairman saidthathehadheldconsultations withdelegations withaviewtodetermining
howtoensure thatthearrangements currently inplace between theGATT 1947 andtheIMFwould
continue intothefollowing year.These arrangements would needtobeextended tobalance-of-payments
matters intheareaofservices. Asaresult ofthese consultations, hewould berequesting, pending
theconclusion ofamore definitive arrangement withtheIMF, thattheChairman oftheGATT 1947
CommitteeonBalance-of-PaymentsRestrictionsproceedtoseektheagreementoftheIMFinthisrespect.
54. Therepresentative ofArgentina saidthatatthemeeting oftheSub-Committee on11November,
ithadbeenindicated thattheChairman, together withtheSecretariat, would prepare adraftletter to
besenttotheManaging Director oftheIMF. Heasked iftheChairman, inhisstatement, wasreferring
toconsultations onthisdraftletter ortosomething else.
55. TheChairman saidthatwasprecisely whathehadbeenreferring to.There would beadraft
letter onwhich consultations would havetobeheld.
56. TheSub-Committee tooknoteofthestatements.
C. Transitional Arrangements
57. TheChairman recalled thatataninformal consultation onthismatter thedaybefore, hehad
announced thathewould bepursuing bilateral andplurilateral consultations inthecoming days. InPC/IPL/M/9
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doing so,hewould takeintoaccount theviews expressed atthepresent meeting bydelegations, including
bySwitzerland andChina, under itemA(ii).
58. TheSub-Committee tooknoteofthestatement.
D. Issues relating totheStanding Appellate Body
59. TheChairmansaidthatinformalconsultationshadbeenheldthedaybeforetodiscussanon-paper
bytheSecretariat (document 2788) containing proposed recommendations totheWTO regarding the
composition andsupport staffoftheAppellate Body. Delegations hadgenerally approved thecontents
oftheproposals. Several hadraised questions concerning thetypeoflegalexpertise required onthe
Appellate Body, andoneachthree-member board. Some hadwanted moreemphasis onlegalexpertise,
although notnecessarily onformal qualifications asalawyer. Forsome, theleveloflegalexpertise
anditsdistribution within theAppellate Body would determine inlarge partwhether theautomatic
rotation ofAppellate Body members would work inpractice. Delegations hadalsocommented on
thebalance between thepersonal qualifications oftheAppellate Body members andtherequirement
thattheAppellate Body be"broadly representative" ofthemembers oftheWTO. Several hadsaid
thatthepersonal qualifications ofthemembers should be"primordial", andothers thattheimportance
ofgeographical factors should notbediminished. Ontheinitial conditions ofemployment ofAppellate
Body members, there hadbeenbroad approval foraretainer andconsultation feepackage thatcould
bereviewed atalaterstage. Onedelegation hadsaidthatadditional flexibility intheterms of
employment should beoffered. Some hadconsidered thattheUS$5,000 figure fortheretainer should
notbespecified atthispoint, butlefttotheselection committee todetermine. Onedelegation had
saidthatthisfigure should beretained asaminimum.
60. With regard totheimpartiality andconduct ofAppellate Body members, several delegations
hadquestioned whether persons whoweregovernment-paid, butnotingovernment service, suchas
certain university professors, should beexcluded frombeing members ontheAppellate Body because
oftherequirement intheDispute Settlement Understanding thatmembers notbe"affiliated" withany
government. Some hadfeltthateligibility fortheAppellate Body should notbedetermined solely
byaformal employment relationship when theperson wasinfactindependent ofagovernment. Other
delegations hadcommented thattherulesofconduct should bedrafted sothattheydidnotleadtoabuse
byparties onthelosing sideofacase. Several delegations hadconsidered thattherules ofconduct
should notbeoverly complex orleadtolitigiousness. Withregard totheselection ofAppellate Body
members, some delegations hadfeltthatthemembership oftheselection committee should bebroadened
toinclude also, forinstance, theChairmen oftheCouncils onGoods, onServices andonTRIPS.
Delegations hadalsofeltitshould bemade clearthattheMembers would choose theAppellate Body,
onthebasis ofaproposal bytheselection committee. Theselection committee would beexpected
toconsult inarriving atitsproposal, putting forward alistofseven names.
61. Onthequestion ofsupport stafffortheAppellate Body, there hadbeenbroad agreement on
thenumbers ofstaffneeded initially. Onedelegation hadfeltthatthesupport staffshould reflect a
mixoflegal andtrade expertise. Some delegations hadconsidered thattheAppellate Body should
bephysically separate fromtheSecretariat, either inanother building orinaseparate partofthebuilding
housing theSecretariat.
62. Heintended tocontinue hisconsultations thefollowing week, andhoped that,attheendof
theprocess, allwould beinagreement ontheissues relating totheestablishment oftheAppellate Body.
Heproposed that,following further consultations, herequest theSecretariat toprepare arevised paper
toaddress theconcerns raised.PC/IPL/M/9
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63. TheSub-Committee tooknoteofthestatement andsoagreed.
E. Paragraph 8(c)(iv) oftheDecision establishing thePreparatory Committee
(Composition oftheTextiles Monitoring Body)
64. TheChairman saidthathehadbeeninformed byMr.Abdel-Fattah, theChairman oftheContact
Group onTextiles, thatconsultations werestillunder wayandthatalittlemore timewould beneeded
tobring theprocess toaclose.
65. TheSub-Committee tooknoteofthestatement.
F. Paragraph 8(b)(iv) oftheDecision establishing thePreparatory Committee
(Report ofthePreparatory Committee totheWTO)
66. TheChairman saidthatthefirstdraftofthePreparatory Committee 'sreport totheWTO had
justbeencirculated todelegations indocument PC/R/W/1. While thedocument wasavailable only
inEnglish atpresent, theFrench andSpanish versions would bemade available veryshortly. Hehad
derogated fromhisownruleofnotcirculating documents untiltheywereavailable inthethreeofficial
languages inorder togivedelegations anadvance ideaofthelayout andthenature ofthereport that
would besubmitted totheChairman ofthePreparatory Committee, aspartofthemandate oftheSub-
Committee. Inaddition tothework donebytheSub-Committee, thedraftreport alsodescribed the
work done bytheother three Sub-Committees, andhadtherefore beenforwarded totherespective
Chairmen fortheircomments. Hehadalsoforwarded thedraftreport totheChairman ofthePreparatory
Committee. Thedraft report would undergo considerable editing asoneprogressed through the
outstanding issues. Hedrew attention toparagraph 2ofthedraftreport, andstressed thattheminutes
ofthePreparatory Committee andthose ofitssubsidiary bodies would remain theofficial record of
thework ofthePreparatory Committee, which meant thatthedraftreport didnotseektorepeat what
wascontained inthose minutes nortosubstitute forthem.
67. While hedidnotintend toinvite discussion onthedraftreport, hewished todraw attention
toparagraphs 29and34,which stated thatthePreparatory Committee hadtaken noteofformal requests
forobserver status, aswellasoftheinterest inconcluding formal cooperation arrangements, from
certain international organizations mentioned therein. These requests hadbeenaddressed either to
himdirectly, ortotheChairman ofthePreparatory Committee, whohadreferred them tohimfor
appropriate action. Since theserequests hadbeenmade inrespect oftheWTO andnotthePreparatory
Committee bodies, hehadbeenwaiting fortherightoccasion tobring themtotheattention oftheSub-
Committee. Hehadhoped todothisinthecontext oftheSub-Committee 'sapproval ofguidelines
forobserver status forinternational organizations. However, inlightofthedevelopments withregard
tothese guidelines atthepresent meeting,2hewould suggest thattheSub-Committee, intaking note
oftheserequests, alsoagree thatthelanguage inparagraphs 29and34ofthePreparatory Committee 's
report bemodified appropriately toreflect thenewsituation.
68. TheSub-Committee tooknoteofthestatement andsoagreed.
2Seeunder Section A(ii) above.