RESTRICTED
WORLD TRADE G/C/M/2
21April 1995
ORGANIZATION(95-0984)
COUNCIL FOR TRADE INGOODS
3April 1995
MINUTES OFMEETING
Held intheCentre William Rappard
on3April 1995
Chairman: Mr.M.Endo
Subjects discussed: Page
1. Rules ofProcedure fortheCouncil forTrade inGoods 2
2. Adhocarrangements fortheparticipation ofInternational Intergovernmental 2
Organizations inmeetings oftheCouncil forTrade inGoods andits
subsidiary bodies
3. Dominican Republic -Renegotiation ofSchedule XXIII 3
- Request forawaiver
4. Finalization ofSchedules ofConcessions onGoods (follow-up oftheinformal 3
verification meeting oftheCommittee onMarket Access on31March 1995)
5. Notification byMalaysia inpursuance ofArticle XVIII:C ofGATT 1994 and 4
the1979 Decision on"Safeguard Action forDevelopment Purposes"
- Report onconsultations
6. Agreement onPreshipment Inspection
- Progress report onthelegalstatus oftheIndependent Review Entity 4
under Article 4oftheAgreement
7. Agreement onTrade-Related Investment Measures
- Recommendation bytheCommittee onTrade-Related Investment 5
Measures
8. FreeTrade Agreements between theCzech Republic andRomania andbetween 5
theSlovak Republic andRomania respectively
9. Working Party ontheEnlargement oftheEuropean Union: Accession of 6
Austria, Finland andSweden totheEuropean Communities
- Working Party ChairmanG/C/M/2
Page2
TheChairman welcomed delegations tothesecond meeting oftheCouncil forTrade inGoods,
which wasconvened byWTO/AIR/54. Henoted thatanumber ofworking parties onaccession of
certain countries totheGATT 1947 hadbeentransformed intoWTO accession working parties. In
accordance withcustomary practice, governments whose accession process hadformally begun, were
invited toattend WTO meetings asobservers. Inthisconnection, hewelcomed Albania, Algeria,
Armenia, Estonia andLatvia asobservers tothemeetings oftheCouncil forTrade inGoods.
Healsonoted that,inaccordance withadhocarrangements fortheparticipation ofinternational
intergovernmental organizations, andasagreed during theinformal meeting oftheCouncil forTrade
inGoods heldon27March 1995, those organizations which hadbeeninvited tothefirstmeeting of
theCouncil forTrade inGoods hadbeeninvited tothismeeting, i.e.theUN,UNCTAD, IMFand
theWorldBank.IthadalsobeenagreedthattheFAO,theOECD,theInternationalTextilesandClothing
Bureau,andtheWorldCustomsOrganizationwhichhadmaderequestsforobserverstatusintheCouncil
forTradeinGoodsbeinvitedtothismeeting.Hewelcomedtheorganizationsmentionedtothismeeting.
1. Rules ofProcedure
1.1 TheChairman recalled thatatthefirstmeeting oftheCouncil forTrade inGoods heldon
20February 1995, theCouncil hadauthorized himtoundertake consultations withthepurpose of
establishing rules ofprocedure asforeseen inArticle IV:5oftheWTO Agreement. These informal
consultationshadresultedintheelaborationofdraftrulesofprocedurewhichwerecontainedindocument
G/C/W/2. Heproposed thattheCouncil adopt those rulesofprocedure. Healsoproposed thatthose
subsidiary bodies oftheCouncil forTrade inGoods which decided thattheyneeded rulesofprocedures
fortheirownpurposes, might consider using therulesofprocedures oftheCouncil forTrade inGoods
withthenecessary adaptations.
1.2 TheCouncil forTrade inGoods soagreed.
2. AdHoc Arrangements fortheParticipation ofInternational Intergovernmental
Organizations inmeetings oftheWTO
2.1 TheChairman referred tothestatement made bytheChairman oftheGeneral Council atthe
informal meeting ofHeads ofDelegations on16March 1995 where adhocarrangements forthe
participation ofinternational intergovernmental organizations wereagreed to.Inthisconnection, the
Council forTrade inGoods wastodecide ateachmeeting which international intergovernmental
organization should beinvited toitsnextmeeting. Inthisregard, heproposed that,pending theadoption
ofcriteria andconditions forobserver status forinternational intergovernmental organizations inthe
WTO andunless adelegation raised anobjection, those organizations invited tothismeeting ofthe
Council forTrade inGoods beinvited toitsnextmeeting. Theorganizations concerned were: UN,
UNCTAD, IMF, World Bank, FAO, OECD, International Textiles andClothing Bureau andWorld
Customs Organization.
2.2 TheCouncil forTrade inGoods soagreed.
2.3 Asconcerned subsidiary bodies oftheCouncil forTrade inGoods, inaccordance withthe
adhocarrangements agreed to,heproposed that,pending theadoption ofcriteria andconditions for
observer status forinternational intergovernmental organizations intheWTO, those subsidiary bodies
shoulddecidewhichinternationalintergovernmentalorganizationshouldbeinvitedtotheirnextmeeting.
2.4 TheCouncil forTrade inGoods soagreed.G/C/M/2
Page3
3. Dominican Republic -Renegotiation ofSchedule XXIII
- Request forawaiver
3.1 TheChairman referred toparagraph 3(b)ofArticle IXoftheWTO Agreement which stated
that:
"Arequest forawaiver concerning theMultilateral Trade Agreements inAnnexes 1Aor1B
or1Candtheirannexes shallbesubmitted initially totheCouncil forTrade inGoods, theCouncil
forTrade inServices ortheCouncil forTRIPS, respectively, forconsideration during atime-period
which shallnotexceed 90days. Attheendofthetime-period, therelevant Council shallsubmit a
report totheMinisterial Conference."
3.2 TheChairman stated that,inaccordance withthisprovision, acommunication from the
Dominican Republic requesting awaiver fromitsobligations under Article IIofGATT 1994 forthe
renegotiation andtransposition ofitspre-Uruguay Round Schedule-XXIII intotheHarmonized System
hadbeensubmittedtotheCouncilforitsconsideration(G/L/4).Inthisconnection,hehadbeeninformed
thatfurther discussions were required regarding thisrequest forawaiver, andheproposed thatthe
Council authorize himtoundertake informal consultations onthismatter.
3.3 TheCouncil forTrade inGoods soagreed.
3.4 TheChairman further noted thattheCouncil hadninety daysinwhich toconsider suchwaiver
requests before submitting areport totheGeneral Council.
4. Finalization ofSchedules ofConcessions onGoods (follow-up oftheinformal verification
meeting oftheCommittee onMarket Access)
4.1 TheChairman stated thataninformal meeting oftheMarket Access Committee washeldon
31March 1995 withthepurpose ofverifying draft finalSchedules ofconcessions. Heinvited the
Chairman oftheMarket Access Committee tomake areport onthatmeeting.
4.2 Mr.Saint-Jacques, theChairman oftheMarket Access Committee stated thatattheinformal
meeting oftheMarket Access Commitee heldon31March 1995 theSchedules ofsixteen countries
were examined ofwhich onlytheSchedules ofChad andTheGambia were deemed verified.
4.3 Ithadbeenproposed atthatmeeting thatthedeadline of31March 1995 forthesubmission
ofnegotiated Schedules totheGeneral Council provided forintheDecision on"Finalization of
Negotiations onSchedules onGoods andServices" adopted bytheGeneral Council on31January 1995
(WT/L/30) should beextended to24April 1995. Thisextension wasdeemed necessary inviewof
theveryrecent circulation ofanumber ofdraftSchedules which didnotgiveMembers sufficient time
toexamine those Schedules and/or undertake negotiations.
4.4 TheChairman proposed thattheCouncil takenoteoftheinformation provided andsubmit
theSchedules ofChad andTheGambia totheGeneral Council andrecommend theirapproval. He
alsosuggested thattheCouncil takenoteoftheproposal made bytheMarket Access Committee on
theextension ofthesubmission deadline andrecommend totheGeneral Council toextend thedeadline
forthesubmission ofnegotiated Schedules setoutintheDecision on"Finalization ofNegotiations
onSchedules onGoods andServices" to24April 1995. Inthisregard, heproposed thattheCouncil
authorize himtomake anoralreport tothemeeting oftheGeneral Council tobeheldimmediately
afterthismeeting oftheCouncil forTrade inGoods regarding thismatter.G/C/M/2
Page4
4.5 TheCouncil forTrade inGoods soagreed .
4.6 TheChairman informed theCouncil thatsimilar action wasbeing proposed asconcerned the
services Schedules.
4.7 TheCouncil forTrade inGoods tooknoteoftheinformation.
5. Notification byMalaysia inpursuance ofArticle XVIII:C ofGATT 1994 andthe1979
Decision on"Safeguard Action forDevelopment Purposes"
5.1 TheChairman stated that,asrequested atthelastmeeting oftheCouncil forTrade inGoods,
hehadcarried outconsultations onMalaysia 'sNotification ofMeasures under Article XVIII:C and
the1979 Decision on"Safeguard Action forDevelopment Purposes". Hehadmetwithrepresentatives
ofthetwocountriesconcernedbothindividuallyandtogether,andhadalsoheldplurilateralconsultations.
5.2 Atthisstage, theconsultations hadproven tobeinconclusive withrespect totheimplications
ofthetiming ofMalaysia 'snotification. However, hehadbeenrecently informed thatMalaysia had
proposed theintroduction ofanalternative measure todealwithitsspecific problem. Thisdevelopment
would clearly haveimportant implications ontheconsultation process. Hewas,however, awaiting
further details withrespect totheMalaysian proposal andwould report totheCouncil more fullyin
duecourse.
5.3 TheCouncil forTrade inGoods tooknoteofthereport ontheconsultations provided bythe
Chairman.
6. Agreement onPreshipment Inspection (PSI)
- Progress report onthelegal status oftheIndependent Review Entity under Article 4ofthe
Agreement
6.1 TheChairman recalled that,atitslastmeeting, theCouncil hadagreed thattheSecretariat
pursue itsconsultations withinterested delegations andwiththeInternational Chamber ofCommerce
(ICC) andtheInternational Federation ofInspection Agencies (IFIA) withaviewtoputting forward
asolution tothequestions ofthestatus oftheIndependent Entity andthelegal liabilities ofthe
Independent Entity, itsstaffandpanellists. TheCouncil hadagreed torevert tothismatter atitsnext
meeting.
6.2 Inthisconnection, hehadbeeninformed bytheSecretariat thatthese consultations werestill
notfinalized, buttherewasgoodhopethatasolution could beputbefore theCouncil inthenearfuture.
6.3 Mr.Shaver, theobserver fromtheWorld Customs Organization (WCO) informed theCouncil
thatintheareaofpreshipment inspection, theWCO hadmade astarttowards assisting itsmembers
toreclaim those responsibilities which hadbeenlosttoPSIentities. Discussions hadbeenundertaken
withtheWorld BankandtheIMFwithaviewtoenlisting theirsupport inimplementing comprehensive
customs reform programmes inPSIusercountries. Apilotproject inoneoftheWCO 'smember
administrations wasabout tocommence intheverynearfuture aimed atthegradual phasing outof
preshipment inspection andthere-instatement tocustoms oftheirfullauthority. Headded thathewould
make available totheSecretariat apaper onthematter sothatMembers could beinformed oftheWCO 's
viewonpreshipment inspection andofitsplans toassist itsmembers whose operations werethreatened
bythewidespread useofpreshipment inspection entities.G/C/M/2
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6.4 TheChairmanproposedthattheCounciltakenoteoftheinformationprovided.Healsoproposed
thattheCouncil request theSecretariat topursue itsconsultations withinterested delegations andwith
theICCandIFIAonthelegalstatus oftheIndependent Entity, andthattheCouncil agree torevert
tothismatter atitsnextmeeting.
6.5 TheCouncil forTrade inGoods soagreed.
7. Agreement onTrade-Related Investment Measures
- Recommendation bytheCommittee onTrade-Related Investment Measures
7.1 TheChairman recalled that,atitsmeeting of20February 1995, theCouncil forTrade inGoods
hadrequested theCommittee onTrade-Related Investment Measures toconsider, andtoprepare
appropriaterecommendationson,thequestionofarrangementsfornotificationoftrade-relatedinvestment
measures bycountries eligible tobecome original Members oftheWTO thataccepted theWTO
Agreement afteritsentry intoforce, i.e.after1January 1995. Asnoted intheContact Group which
hadundertaken preparatory work onnotification procedures under theTRIMs Agreement, theproblem
whicharoseinthisrespectwasthatforsuchcountriestheperiodofninetydayswithinwhichnotifications
pursuant toArticle 5.1oftheTRIMs Agreement weretobemade might haveexpired atthetimethese
countries accepted theWTO Agreement.
7.2 Pursuant tothisrequest oftheCouncil, theCommittee onTrade-Related Investment Measures
hadconsidered thismatter atitsmeeting of3March 1995. Based onthediscussion atthatmeeting,
adraftrecommendation wascirculated indocument G/TRIMS/W/1 of17March 1995, inwhich the
Committee hadrecommended thattheCouncil forTrade inGoods submit foradoption bytheGeneral
Council adecision toallow states andseparate customs territories which accepted theWTO Agreement
afteritsentryintoforceaperiod ofninety daysfromthedateoftheiracceptance oftheWTO Agreement
tomake notifications required under Article 5.1oftheTRIMs Agreement. Since nocomments had
been received onthisdraft recommendation by30March 1995, ithadnowbecome anagreed
recommendation bytheCommittee onTrade-Related Investment Measures totheCouncil forTrade
inGoods circulated indocument G/TRIMS/2. Thetextofthedecision which theCouncil forTrade
inGoods wasrequested tosubmit totheGeneral Council foradoption wasattheendofparagraph 2
ofthatdocument.
7.3 Thismatter wasinscribed inadvance ontheagenda ofthemeeting oftheCouncil forTrade
inGoods because itwasdesirable thatthisdecision became operational assoon aspossible after
31March 1995, without awaiting thenextmeeting oftheGeneral Council. Henoted thatthedecision
inG/TRIMS/2 wasidentical tothedecision inG/TRIMS/W/1.
7.4 TheChairman proposed thattheCouncil forTrade inGoods takenote ofthedraft
recommendation andthedecision contained therein andsubmit ittotheGeneral Council foradoption.
7.5 TheCouncil forTrade inGoods soagreed.
8. FreeTrade Agreements between theCzech Republic andRomania andtheSlovak Republic
andRomania
8.1 Therepresentative oftheCzech Republic, speaking onbehalf oftheSlovak Republic and
Romania, under "Other Business", informed theCouncil forTrade inGoods oftherecent signature
ofFreeTrade Agreements between theCzech Republic andRomania andbetween theSlovak Republic
andRomania, respectively.G/C/M/2
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8.2 TheFreeTrade Agreements werebeing applied provisionally since1January 1995andwould
enter intoforce definitively when therespective ratification processes hadbeen completed. The
Agreements covered products falling within Chapters 1to97oftheHarmonized System andprovided
forthegradual establishment offreetrade areas between theParties inthesense ofArticle XXIV of
theGeneral Agreement. Thefreetradeareas weretobeestablished within atransitional period ending
notlaterthan1January 1998 when duties andother restrictive regulations ofcommerce would have
beenabolished onsubstantially allthetradebetween theParties. TheFreeTrade Agreements contained
alsoprovisions dealing with, interalia,statemonopolies, competition, stateaid,public procurement
andprotection ofintellectual property rights. Inaddition, evolutionary clauses offered thepossibility
ofextending theAgreements toareas notcurrently covered. ThetextsoftheAgreements would be
notified toWTO Members induecourse.
9. Working Party ontheEnlargement oftheEuropean Union: Accession ofAustria, Finland
andSweden totheEuropean Communities
- Working Party Chairman
9.1 TheChairman speaking under "Other Business" recalled thatatitsmeeting inFebruary 1995,
theCouncil hadestablished aWorking Party toexamine theEnlargement oftheEuropean Union:
Accession ofAustria, Finland andSweden totheEuropean Communities. Atthatmeeting, theCouncil
hadauthorized himinconsultation withprincipally interested Members todesignate aChairperson
fortheWorking Party. Heinformed theCouncil thatMr.Armstrong (New Zealand) hadagreed to
serve asChairman oftheWorking Party.
9.2 TheCouncil forTrade inGoods tooknoteofthisinformation.