RESTRICTED
GENERAL AGREEMENT PC/W/14/Rev.1
W.50/21/Rev.1
ONTARIFFS AND TRADE 8December 1994
Limited Distribution
WORLD TRADE ORGANIZATION
(94-2705)
IMPLEMENTATION CONFERENCE
8DECEMBER 1994
FINANCIAL OBLIGATIONS OFSTATES ORSEPARATE CUSTOMS
TERRITORIES WHO ARE OBSERVERS TOTHE WTO1
Revision
1. Chapter IVoftheRules ofProcedure forbothSessions oftheMinisterial Conference and
Meetings oftheGeneral Council stipulate theterms under which aStateorseparate customs territory
mayhaveaccess tothese bodies asanobserver, inorder tobetter acquaint itself withtheWTO and
itsactivities, andtoprepare andinitiate negotiations foraccession totheWTO Agreement. Annex 2
ofthese Rules contains guidelines forobservers. Guideline 11states:
"Observer governments shallberequired tomake financial contributions forservices provided
tothem inconnection withtheirobserver status intheWTO, subject tofinancial regulations
established pursuant toArticle VII:2 oftheWTO Agreement."
2. Atpresent, under theGATT, contributions fromgovernment observers aresetat50%ofthe
minimum assessment forCPs, butareoptional. Under theWTO, itisconsidered appropriate that
inreturn foraccess tomeetings, thereceipt ofthemain WTO series ofdocuments andtechnical
cooperation, thiscontribution should bemandatory (i.e.assessed foracontribution).
3. Itisrelevant thatArticle VII:4 oftheWTO Agreement states that:
"Each Member should promptly contribute totheWTO itsshare intheexpenses oftheWTO
inaccordance withthefinancial regulations adopted bytheGeneral Council".
Itisconsidered thatobservers should demonstrate their commitment toArticle VII:4 byfully
discharging theirfinancial obligations. Inparticular, before considering arequest foranextension
ofobserver status under Annex 2,Guideline 8(b)oranapplication foraccession under WTO
Article XII.2, thefinancial standing oftheobserver should betaken intoaccount.
Recommendation
4. Inrespect ofStates orseparate customs territories accorded observer status intheMinisterial
Conference and/or General Council, itisrecommended that:
- theybeassessed foracontribution attherateof50%oftheminimum assessment;
1These financial obligations willnotapply totheStates orseparate customs territories which are
GATT 1947 contracting parties, intheprocess ofratification oftheWTO Agreement, buthavenotyetbecome
Members.
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W.50/21/Rev.1
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- theGeneral Council shall takeadecision under Guideline 8(b)ofAnnex 2tothe
Rules ofProcedure forMeetings oftheGeneral Council inrespect oftheextension
ofobserver status onlyifthefinancial obligations asanobserver havebeen fully
discharged;
- theMinisterial Conference shalltakeadecision under Article XII:2 oftheWTO in
respect ofaccession onlyifthefinancial obligations asanobserver havebeenfully
discharged.