RESTRICTED
WORLD TRADE WT/L/90
8November 1995
ORGANIZATION(95-3459)
INTERNATIONAL DAIRY COUNCIL
Report totheGeneral Council
Thepresent report bytheChairperson oftheInternational Dairy Council issubmitted in
accordance withArticle IV:8oftheWTO Agreement. Thisreport provides aresumé oftheactivities
andconsiderations oftheCouncil inthefirstyearofoperation oftheInternational Dairy Agreement.
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TheInternational Dairy Agreement came intooperation on1January 1995. Asof
31October 1995, thefollowing were parties totheAgreement: Argentina, Bulgaria, theEuropean
Community (15),Japan, NewZealand, Norway, Romania, Switzerland andUruguay. Other Members
andintergovernmental organizations havebeenrepresented atmeetings byobservers.
TheCouncil heldregular sessions inMarch andinOctober 1995. Itssubsidiary body, the
Committee onCertain MilkProducts, metinMarch, JuneandOctober 1995. AtitsMarch meeting,
theInternational Dairy Council elected Ms.B.Cannon (Ireland) asChairperson oftheCouncil and
Mr.M.Ito(Japan) asChairperson oftheCommittee.
Thesuspension oftheminimum export prices forbutter andanhydrous milkfat(butter oil),
effective since 4May1994 foraperiod ofuptooneyear, wasapplied onadefacto basis following
entry intoforce oftheInternational Dairy Agreement. Thesuspension expired on3May1995.
AttheOctober meeting, theCouncil noted thatthelimited membership intheAgreement, and
inparticular thenon-participation ofsome major dairy exporting countries, made theoperation ofthe
minimum price provisions untenable. Inlightofthissituation, theCouncil decided tosuspend the
operation oftheAnnex totheAgreement thussuspending minimum prices foralldairyproducts therein.
NotingthatthetaskoftheCommitteeonCertainMilkProductswasdirectlyrelatedtotheimplementation
oftheprovisions oftheAnnex, theCommittee wasalsosuspended until31December 1997.
Atitssecond session heldinOctober 1995, theCouncil agreed thatitsevaluation ofthesituation
inandoutlook fortheworld market fordairy products should bereleased forgeneral distribution as
thefirstannual report oftheInternational Dairy Agreement.
Thereports ofthemeetings oftheCouncil canbefound indocuments IDA/2 and5andthose
oftheCommittee inIDA/CMP/1, 3and4.