PREPARATORY COMMITTEE PC/16 
FOR THE L/7587 
WORLD TRADE ORGANIZATION 13 December 1994 
(94-2774) 
IMPLEMENTATION CONFERENCE 
8 DECEMBER 1994 
TRANSITIONAL ARRANGEMENTS 
COMMITTEE ON SUBSIDIES AND COUNTERVAILING MEASURES 
Decision of 8 December 1994 adopted by the Preparatory Committee for the WTO and 
the CONTRACTING PARTIES to GATT 1947 and transmitted to the Signatories to 
the Agreement on Interpretation and Application of Articles VI. XVI and XXIII of 
the General Agreement on Tariffs and Trade1 
The PREPARATORY COMMITTEE FOR THE WORLD TRADE ORGANIZATION 
invites the Signatories to the Agreement on Interpretation and Application of Articles VI, XVI and 
XXIII of the General Agreement on Tariffs and Trade to take the following decision: 
The signatories to the Agreement on Interpretation and Application of Articles VI, XVI and XXIII 
of the General Agreement on Tariffs and Trade (hereinafter "the Agreement"), 
Recalling the Ministerial Decision of 15 April 1994 on the Application and Review of the Understanding 
on Rules and Procedures Governing the Settlement of Disputes, 
Further recalling that signatories to the Agreement have the right to withdraw from the Agreement 
at any time, said withdrawal to take effect upon the expiration of sixty days from the day on which 
written notice is received by the Director-General to the CONTRACTING PARTIES to GATT 1947; 
Agree that, in the event of withdrawal by any signatory from the Agreement taking effect on or after 
the date of entry into force for it of the Marrakesh Agreement Establishing the World Trade Organization 
(hereinafter "WTO Agreement"), or in case of termination of the Agreement while this Decision is 
in effect: 
(a) the Agreement shall continue to apply with respect to any countervailing duty 
investigation or review which is not subject to application of the WTO 
Agreement on Subsidies and Countervailing Measures pursuant to the terms 
of Article 32.3 of that Agreement. 
(b) Signatories that withdraw from the Agreement shall remain Members of the 
Committee on Subsidies and Countervailing Measures exclusively for the 
purpose of dealing with any dispute arising out of any countervailing duty 
investigation or review identified in paragraph (a). 
./. 
The Tokyo Round Committee on Subsidies and Countervailing Measures met on 8 December 1994 and adopted the 
Decision in document SCM/187. PC/16 
L/7587 
Page 2 
(c) In case of termination of the Agreement during the period of validity of this 
Decision the Committee on Subsidies and Countervailing Measures shall remain 
in operation for the purpose of dealing with any dispute arising out of any 
countervailing duty investigation or review identified in paragraph (a). 
(d) The rules and procedures for the settlement of disputes arising under the 
Agreement applicable immediately prior to the date of entry into force of the 
WTO Agreement shall apply to disputes arising out of any investigation or 
review identified in paragraph (a). With respect to such disputes for which 
consultations are requested after the date of this Decision, signatories and panels 
will be guided by Article 19 of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes in Annex 2 of the WTO Agreement. 
(e) Signatories will make their best efforts to expedite to the extent possible under 
their domestic legislation investigations and reviews referred to in paragraph (a), 
and to expedite procedures for the settlement of disputes so as to permit 
Committee consideration of such disputes within the period of validity of this 
Decision. 
This Decision shall remain in effect for a period of two years after the date of entry into force of the 
WTO Agreement. Any signatory to the Agreement as of the date of this Decision may renounce this 
Decision. The renunciation shall take effect upon the expiration of sixty days from the day on which 
written notice of renunciation is received by the person who performs the depository function of the 
Director-General to the CONTRACTING PARTIES to GATT 1947. 