RESTRICTED
WORLD TRADE G/C/W/29
22November 1995
ORGANIZATION(95-3813)
COUNCIL FOR TRADE INGOODS
1December 1995
SRILANKA -ESTABLISHMENT OFANEW SCHEDULE VI
Draft Decision onExtension ofTime-Limit
Considering thattheCONTRACTING PARTIES toGATT 1947, bytheir Decision of
8November 19881,suspended theapplication oftheprovisions ofArticle IIofGATT 1947totheextent
necessary toenable theGovernment ofSriLanka toimplement theHarmonized Commodity Description
andCoding System (Harmonized System) on1January 1989andcarry outnegotiations subsequently;
Taking intoaccount that,bysuccessive Decisions, thetime-limit ofthewaiver granted to
SriLanka hasbeenextended until31December 19952.
Considering thatthefootnote toAnnex IA,Section onGATT 1994, sub-paragraph 1(b)(iii)
oftheAgreement establishing theWorld Trade Organization requires theMinisterial Conference to
establish atitsfirstsession arevised listofwaivers granted under Article XXV ofGATT 1947 and
stillinforce onthedateofentry intoforce oftheWTO Agreement;
Considering thatbyaDecision of31January 19953theGeneral Council established alistof
waivers existing attheentry intoforce oftheWTO Agreement, which included thewaiver granted
toSriLanka fortheestablishment ofanewSchedule VI;
Considering thatparagraph 2oftheUnderstanding inRespect ofWaivers ofObligations under
theGeneral Agreement onTariffs andTrade 1994 provides thatanywaiver ineffect onthedateof
entryintoforceoftheWTOAgreementshallterminateunlessextendedinaccordancewiththeprocedures
setoutinparagraph 1oftheaforementioned Understanding andthose ofArticle IXoftheWTO
Agreement onthedateofitsexpiry ortwoyears from thedateofentry intoforce oftheWTO
Agreement, whichever isearlier;
Taking intoaccount thatthedocumentation relevant tothetransposition ofSriLanka 'sSchedule
intotheHarmonized System wascirculated indocument SECRET/HS/26 on12January 1990;
1BISD 35S/22.
2WT/L/86.
3WT/L/3 +Corr.1.
./.G/C/W/29
Page2
Considering thattheGovernment ofSriLanka hasinitiated Article XXVIII negotiations with
Australia, theEuropean Union, NewZealand andtheUnited States, buthasbeenunable toconclude
them because ofthesevere constraints inobtaining andcoordinating responses from therelevant
SriLankan authorities asaresult ofthesecurity situation inthecountry;
Considering thattheGovernment ofSriLanka hasprovided theassurance ofmaking itsbest
efforts toconclude thenegotiations within theperiod oftherequested extension;
Considering thattheGovernment ofSriLanka, having fulfilled therequirements ofparagraph 1
oftheUnderstanding inRespect ofWaivers ofObligations under theGATT 1994, hasrequested a
further extension oftheexemption ofitsobligations under Article IIofGATT 1994until30June19964;
TheGeneral Council, acting pursuant totheprovisions ofArticle IXoftheWTO Agreement,
Decides, inviewoftheexceptional circumstances outlined above, toextend thewaiver granted
toSriLanka bytheDecision of8November 1988, until30June1996.
4G/L/48.