RESTRICTED
WORLD TRADE G/L/2
15February 1995
ORGANIZATION(95-0307)
Original: English
MALAYSIA -NOTIFICATION INPURSUANCE OFARTICLE XVIII:C
AND THE 1979 DECISION ON"SAFEGUARD ACTION
FOR DEVELOPMENT PURPOSES"
Communication bySingapore
Thefollowing communication, dated 9February 1995, hasbeenreceived fromthePermanent
Mission ofSingapore witharequest thatitbecirculated toallWTO members.
_______________
TheGovernmentofSingaporewishestoexpressstrongobjectiontotheWTOdocumentWT/L/32
dated 6February 1995, containing thesubmission bytheGovernment ofMalaysia totheWTO
Director-General, purporting tonotify theWTO, under Article XVIII:C, oftheprohibitions imposed
on7April 1994 bytheGovernment ofMalaysia onimports ofpolyethylene (PE)(HS3901.10.000
and3901.20.000) andpolypropylene (PP)(HS3902.10.300 and3902.30.000).
Singapore requests thatthedocument notbeaccepted asanotification under Article XVIII
inviewoftheundeniable factthatthedocument, onitsface,demonstrates thatMalaysia hasnotcomplied
withtherequirements ofthatArticle. Specifically, inthatdocument, Malaysia admits thattheimport
prohibition wasintroduced from 7April 1994. Paragraph 14ofArticle XVIII requires, without
exception, thatnotification bemade prior totheintroduction ofmeasures. The1979 Decision on
Safeguard Action forDevelopment Purposes, paragraph 2,cited byMalaysia, does notchange
paragraph 14'smandatory requirement thatnotification precede introduction ofthemeasures. Itpermits
less-developed countries tointroduce suchmeasures only"onaprovisional basis immediately after
notification." Measures taken more thanninemonths before notification cannot bethesubject ofan
Article XVIII approval, andanydocument purporting tonotify suchmeasures must berejected.
Singapore believes thatsince Malaysia submitted thisnotification more than9months after
implementation ofitsimport prohibitions onPEandPP,Malaysia isnotentitled tomake anotification
ortobegranted arelease under Article XVIII:C. Furthermore, Singapore isoftheviewthatWTO
members should viewthedocument asanattempt todelay Singapore 'srequest forconsultations on
thesame import prohibitions which wasmade totheGovernment ofMalaysia on10January 1995,
pursuant toArticle XXIII:1 regarding theinconsistency ofthese measures withMalaysia 'sobligations
under, interalia,Articles XIandXandtheWTO Agreement onImport Licensing Procedures.
Singapore requests thatthismatter beinscribed ontheagenda ofthefirstmeeting oftheCouncil
forTrade inGoods on20February 1995.
./.G/L/2
Page2
Additionally, inorder fully toprotect itsrights, pursuant toArticle XVIII:C.15 andAd
Article XVIII paragraphs 15and16,Singapore hereby requests that,within 30daysofreceipt of
Malaysia 'scommunication, theCouncil forTrade inGoods request Malaysia toconsult withtheCouncil
concerning itsaction. Inmaking thisrequest, Singapore innowayconcedes thatMalaysia 'saction
iswithin thescope ofArticle XVIII:C.
Singapore supports theproper useofArticle XVIII asanimportant toolinpromoting economic
development. Here, however, therequirements ofArticle XVIII itself havebeenignored andnot
complied withbyMalaysia.