RESTRICTED
WORLD TRADE G/MA/M/4
17January 1996
ORGANIZATION(96-0167)
Committee onMarket Access
MINUTES OFTHE MEETING OF22NOVEMBER 1995
Chairman: Mr.Jean Saint-Jacques (Canada)
Agenda oftheMeeting Page
1. Tariff Matters: 1
1.1 Introduction ofHS96 changes on1January 1996 1
1.2 Establishment ofconsolidated loose-leaf schedules 2
1.3 Factual information oncurrent waivers 4
2. Report oftheCommittee totheCouncil forTrade inGoods 5
3. Other Business 5
3.1 Dateofthenextmeeting oftheCommittee 5
Introduction
Beforeproceedingtotheadoptionoftheagenda,theChairmanstatedthatasconcernedobservers,
inaddition tothecountries which were acceding totheWTO and,asagreed atthelastmeeting of
theCommittee, thesame international organizations plusITCB hadbeeninvited tothismeeting. He
welcomed therepresentatives present oftheFAO, IMF, ITCB, UNCTAD, WCO andtheWorld Bank.
Hesuggested that, until thecriteria andconditions forobserver status were agreed, these same
international organizations would beinvited toattend thenextmeeting oftheCommittee inthecapacity
ofobservers.
TheCommittee soagreed.
Theabove agenda, which wascontained inWTO/AIR/219 dated 10November 1995, was
adopted.
1. Tariff Matters
1.1 Introduction ofHS96 changes on1January 1996.
1.1.1 TheChairmanreportedtotheCommitteethat,followinginformalconsultationsonthesituation
arising from theintroduction andimplementation ofHS96 changes innational tariffs on1January
1996andtheimplication ofthose changes onWTO schedules ofconcessions, Members hadindicated
thattheywould beinfavour ofacollective waiver which would begranted upon request tothose
Members thatmight finditnecessary toconsult ornegotiate asaresult ofthose changes underG/MA/M/4
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ArticleXXVIIIofGATT1994.Todate28MembersplustheEuropeanCommunities(i.e.43Members)
hadnotified totheSecretariat theirrequest tobeconsidered under acollective waiver inorder tobe
temporarily exempted from theirobligations under Article IIoftheGATT 1994, inaccordance with
Article IXoftheWTO Agreement. TheSecretariat hadprepared adraftdecision contained indocument
G/MA/W/4 dated 16November 1995. AnAnnex containing thenames oftheMembers concerned
hadalsobeendistributed during themeeting. TheChairman alsomentioned thattheSecretariat would
circulate adocument indicating thedocumentation thatwould havebeensubmitted bytheMembers
concerned, attheendofDecember 1995 andattheendofMarch 1996.
1.1..2 Therepresentative ofJapan informed theCommittee thathiscountry hadrequested tobeunder
thewaiver butthatitmight stillbepossible forJapan towithdraw itsrequest before theendofthe
year.
1.1.3 Therepresentative ofSwitzerland saidthathiscountry would alsorequest tobeconsidered
under thewaiver withthesame comments made byJapan.
1.1.4 Therepresentatives ofEgypt andofMorocco pointed outthattheirdelegations were notin
aposition forthemoment toindicate whether andwhen theircountries would implement theHS96
changes, buttheywished toreserve theirrights intheframework ofthesuggested collective waiver
tosubmit sucharequest when theywould decide tointroduce those changes.
1.1.5 Toaquestion raised bytherepresentative ofPoland concerning thesubmission bymembers
oftheir1996 national tariffs "with theHSchanges clearly indicated" theChairman explained that
itwould besufficient toindicate inthemargin ofthe1996 national tariffs which headings hadbeen
subject toHS96 changes.
1.1.6 ThetextofthedraftdecisioncontainedindocumentG/MA/W/4wasadoptedbytheCommittee
anditwasagreed thatitwould beforwarded totheGeneral Council foritsformal approval atitsmeeting
of13December 1995.
1.1.7 Following theadoption ofthedraftdecision onacollective waiver, theChairman made the
following statement:
"Ithasbeenbrought totheattention oftheChair thatanumber ofMembers would implement
theHSchanges in1996buttheywerenotinaposition atpresent tojoininacollective waiver.
TheChair would hopethatthese Members would usetheintervening period tocomplete the
required procedures prior totheimplementation ofthose changes andthusavoid theneedfor
anywaiver. Nevertheless, theChair would beprepared toundertake consultations thatmay
berequired inthisrespect, withaviewtoensuring equitable treatment among WTO Members
withrespect tothismatter."
1.2 Establishment ofconsolidated loose-leaf schedules
1.2.1 TheChairman reported thathehadcarried outfurther consultations withrespect tothe
preparationofconsolidatedschedulesinloose-leafformatandthatarevisedversionofhisNotecontained
indocument G/MA/TAR/W/4/Rev.2 dated 13November 1996 hadbeencirculated toallmembers
prior tothemeeting.
1.2.2 Therepresentative ofMexico pointed outthatbefore starting theexamination ofthedocument
andinconnection withtheprocess ofestablishing newconsolidated loose-leaf schedules, hisdelegation
wished tomake thefollowing general statement: "Inviewofthefactthatthenewloose-leaf schedules
ofconcessions would belegally binding instruments which would substitute fortheexisting schedulesG/MA/M/4
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ofconcessions, hisdelegation wished toplaceonrecord thatthelegallinkbetween thenewconsolidated
loose-leaf schedules withtheProtocol ofAccession ofMexico should beidentical tothelinkthatexisted
between Mexico 'sProtocol ofAccession andtheMexican schedule ofconcessions annexed tothat
Protocol (i.e.inthecaseofMexico, Schedule LXXVII). Inother words, thesubstitution ofthepresent
schedules ofconcessions bytheconsolidated loose-leaf schedules would innowaychange thelegal
relationship between theProtocols ofAccession withtheirschedules ofconcessions, which were in
factpartthereof. Itwastherefore aquestion ofsubstituting theschedules, butwithout changing their
legalrelationship withtheGATT instruments."
1.2.3 TherepresentativeofEgyptreiteratedhisconcernregardingtheworkinvolvedinthepreparation
ofEgypt 'sconsolidated LLSandexpected toobtain technical assistance from theSecretariat inthis
respect.
1.2.4 Therepresentative ofArgentina regretted that,intheconsolidated loose-leaf schedules, there
would benoreference tohistorical negotiating rights andthat,therefore, theexpected fulltransparency
wasnotprovided .
1.2.5 TheCommittee proceeded tothedetailed examination oftheChairman 'sproposals contained
indocument G/MA/TAR/W/4/Rev.2 andthefollowing comments were made:
Paragraph 7(Rates andstaging)
1.2.6 Therepresentative ofVenezuela referred tothecaseofaceiling binding offered byacountry
intheUruguayRoundandwaswonderinghowtoreflectthestagingofsuchcommitmentintheloose-leaf
schedules. Heasked whether every staging would havetobedescribed indetail orwhether itwould
besufficient tohaveageneral noteindicating thatthefinaltariff ceiling would beachieved aftera
given number ofyears?
1.2.7 Therepresentative ofRomania referred tothefactthat,according totheChairman 'snote,
unbound baseratesforproducts thathadbeenbound inaMember 'sURschedule andwhich would
besubject tostaging should beincluded andasked whatwould happen incases where therewasabase
rate,anunbound rateandafinalrateundergoing astaging; hethought itwould notbelogical toindicate
theunbound ratesespecially incases where theunbound rateswere lower.
1.2.8 TheChairman replied thatUruguay Round schedules should beusedasmodels andrecalled
thatwhen ceiling bindings entered intoforce on1January 1995itwould notbenecessary toindicate
anybaserate. Hesuggested thattechnical issues related totheparticular situation ofcertain countries
would havetobetaken upwiththeSecretariat.
Paragraph 10(INRs):
1.2.9 Inreply toaquestion raised bytherepresentative ofNewZealand concerning thetreatment
tobegiven tohistorical INRs which were below thecurrent bound rateandwhich hadbeensubject
totariffication resulting inhigher rates, theChairman suggested toreplace thesentence reading "INRs
above thecurrent bound rates" with"atratesdifferent fromthecurrent bound rates". Thiswasagreed .
Paragraph 12(Verification):
1.2.10 Therepresentative ofTunisia enquired about theactual dateoftheDecision ontheestablishment
ofconsolidated loose-leaf schedules andsuggested thatinorder toavoid anyambiguity, instead of
saying "oneyearafter", there should beaspecific date, forinstance 1January 1997. Moreover,
thenecessary additional timefortheSecretariat toprovide technical assistance should alsobeenvisaged.G/MA/M/4
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1.2.11 TherepresentativeofMoroccoexpressedconcernwithrespecttothesentencereading"Members
would haveoneyearfrom thedateoftheDecision onthecontent oftheloose-leaf schedule totable
schedules" andpreferred ittoread"Members would haveoneyearfrom thedateoftheDecision to
tabletheirloose-leaf schedules" leaving outthereference tothe"content".
1.2.12 Therepresentative ofRomania stated that,inhisopinion, anyobjection which might beraised
ontheloose-leaf schedules would beonlyfortechnical reasons andnotrelated tothesubstance ofthe
commitments agreed tointheUruguay Round.
1.2.13 Therepresentative ofArgentina ,assuming thattheloose-leaf schedules would replace allthe
commitments contained intherespective national schedules withtheaddition ofthespecific commitment
taken inagriculture, asked whatwould happen ifwithin theforeseen 90dayperiod forverification,
because ofanomission orachange inaconcession, acountry would object toaparticular schedule?
1.2.14 Inreply tothequeries raised bytherepresentatives ofArgentina ,Mexico andTunisia ,the
Chairman explained thatthe90-day period wasprovided forthepurpose ofenabling Members to
verify thattheexisting commitments would becorrectly reflected intheconsolidated loose-leaf schedules
andthatthere would benoexercise ofrenegotiations. Healsoconfirmed thatifaMember would
object toaconsolidated loose-leaf schedule, thatschedule could notbecertified anditwasclearthat
theconcessions reflected intheUruguay Round Schedules orinprevious schedules would remain in
forceuntilsuchtimetheywould bereplaced bynewapproved consolidated schedule inloose-leaf format
including allcommitments.
1.2.15 TheChairman suggested thatifmembers wereinagreement withthesubstance ofhisproposals
contained indocument G/MA/TAR/W/4/Rev.2, theycould beapproved bytheCommittee andthe
Secretariat would prepare adraftdecision modifying theearlier decisions ontheestablishment ofloose-
leafschedules; themembers would havethenanother possibility toreview thetextofthenewdraft
decision.
1.2.16 Therepresentative ofMexico saidthathisdelegation could accept theChairman 'ssuggestion
withtheunderstanding contained inthestatement thathemade under thisagenda item.
Itwassoagreed .
1.2.17 Therepresentative ofMorocco added thatinthecontext ofdrafting thenewdecision itwould
beuseful iftheSecretariat could elaborate awork planwithindicative dates forthesubmission and
theverification oftheconsolidated loose-leaf schedules leaving however thenecessary flexibility to
eachmember toprovide therequired documentation.
1.3 Factual information oncurrent waivers
1.3.1 TheChairman reported totheCommittee thatmembers being under normal orHSwaivers
expiring either on30November or31December 1995 hadbeenrequested, inaccordance withthe
decision oftheCommittee atitsmeeting of25April 1995, toprovide factual information onthestatus
ofwaivers andtherequired information aswellas,where necessary, arequest forextension. The
Members concerned were: Bangladesh, Bolivia, Guatemala, Jamaica, Malawi, Morocco, Nicaragua,
Pakistan, Senegal, SriLanka, Trinidad andTobago andZambia. Theinformation provided bythose
Members wascontained inadocument dated 22November 1995andwould beannexed totheReport
oftheCommittee totheCouncil forTrade inGoods. Headded thatonecountry, Israel, hadconcluded
itsconsultations and/or negotiations andwould thusnotbeseeking anextension; alltheothers would
needafurther extension forthereasons explained intheirrequests.G/MA/M/4
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1.3.2 TheCommittee tooknoteofthefactual information andoftherequests forextension ofthe
waivers which would besubmitted totheCouncil forTrade inGoods fortransmission totheGeneral
Council.
2. Report oftheCommittee totheCouncil forTrade inGoods
2.1 TheChairman reminded theCommittee members thatareport covering theactivities ofthe
Committee during thefirsthalfoftheyearhadalready beencirculated indocument G/MA/1; adraft
report ontheactivities carried outanddecisions taken sincethenwascontained indocument G/MA/W/3
andwasforconsideration bytheCommittee.
2.2 Nocomments were made onthedraftreport andtheCommittee agreed thattheSecretariat
would include thediscussion thattookplace inthemeeting inarevised version tobeconsidered by
theCouncil forTrade inGoods indocument G/L/50 atitsmeeting of1December 1995.
3. Other business
3.1 Dateofthenextmeeting oftheCommittee
3.1.1 TheChairman informed theCommittee members thatthenextmeeting oftheCommittee would
takeplace on14March 1996. Itwassoagreed.