RESTRICTED
WORLD TRADE WT/CTE/W/32
30May1996
ORGANIZATION(96-2049)
Original: English Committee onTrade andEnvironment
DOMESTICALLY PROHIBITED GOODS
Proposal byNigeria
1. Thiscommunication complements theproposal made byNigeria andcirculated in
document W/CTE/W/14 on27November 1995. Italsoaddresses points andquestions raised by
other delegations attheDecember meeting oftheCommittee onTrade andEnvironment in
relation withtheproposal anditspresentation made bythedelegation ofEgypt onbehalf ofthe
African Group.
2. Nigeria considers thatWTO hasauseful contribution tomake toincreasing the
transparency oftrade inDPGs. Aswasunderlined byseveral delegations inDecember, the
coverage ofaWTO instrument onDPGs willbethemost crucial parttodefine. Though intensive
technical work willbeneeded inthatregard, Nigeria wants atthisstage toputforward the
following considerations.
3. Nigeria noted thatseveral delegations expressed doubts astowhether suchproducts as
foodadditives, cosmetics orconsumer products fallwithin themandate ofthisCommittee since
theywould notbedirectly related tothe"environment". Nigeria considers thatthisistoonarrow
areading oftheCTE mandate. Theissue ofDPGs hasbeenunder consideration inGATT/WTO
formore thantenyears, without anyagreements being reached onthematter. When entrusting
theCTE withtheresponsibility toreach anagreement onthelongstanding issue ofDPGs, WTO
Members certainly didnotmean tonarrow itsscope. Furthermore, products suchasthose listed
above areofconcern intheprotection ofhuman, animal andplant lifeorhealth inimporting
countries.
4. Although thenetwork ofinternational agreements andinstruments dealing withtrade in
DPGs isrelatively comprehensive, Nigeria notes thatapreliminary survey indicates thatcertain
cosmetics andcertain other consumer products, which areofimportance toAfrican countries, are
notsubject tointernational notification disciplines. Nigeria underlined onvarious occasions that
these products were ofparticular concern. Inaddition togapsinproduct coverage, Nigeria notes
thatthemembership ofthese various international agreements andinstruments canrange from 5to
150countries1.Thisundoubtedly hasconsequences ontheflows ofinformation available.
5. Some ofthese international agreements andinstruments areofavoluntary nature, which
alsoimpacts ontheexchange ofinformation amongst parties. Forexample, theAmended London
Guidelines fortheExchange ofInformation onChemicals inInternational Trade, theCode of
Conduct ontheDistribution andUseofPesticides, andtheCertification Scheme ontheQuality of
Pharmaceutical Products Moving inInternational Commerce, dealwithproducts which are
important from thepoint ofviewofNigeria, butarestillapplied onavoluntary basis.
1SeeAppendix IIofDoc. W/CTE/W/6, dated 31March 1995.WT/CTE/W/32
Page2
6. Nigeria isoftheviewthatthere isroom foranotification scheme within WTO which
would "fillthegaps" without duplicating existing mechanisms. Moreover, anotification scheme
inWTO would notundermine theimplementation ordevelopment oftheother specific
international instruments, which areandwillremain asource oftechnical expertise inaddition to
providing theirownnotification schemes. TheGATT 1991 draftdecision encouraged GATT
contracting parties tojointheexisting international instruments andstipulated thatexports ofa
product concerned didnotneedtobenotified under GATT iftheexporting contracting party
already notified theproduct concerned under theinternational instruments enumerated inthe
Annex ofthedraftdecision. These important principles should becarried over.
7. Nigeria considers thatduplication hastobeavoided between WTO andother international
instruments, butalsowithin WTO. Thus, indesigning notification procedures fortrade inDPGs,
theCTE willhavetocarefully consider thetransparency mechanisms implemented under the
WTO andbuild upon them when possible.
8. AttheDecember meeting oftheCTE, itwassaidthatconsumer goods, totheextent they
aresubject totechnical regulations, andrestrictions onfoodstuffs, might already becovered
under, respectively, theTBTandSPSAgreements. Itistruethatthese twoinstruments provide
some information inthisregard. However, totheextent thatboththese agreements address the
issue ofstandards which aretoberespected byimported goods, theTBTandSPSAgreements do
notnecessarily helpindetermining whatisthestatus ofaproduct inanexporting country,
especially ifthatcountry doesnotsellthegood inquestion onitsdomestic market (which is,by
definition, theproblem atstake withdomestically prohibited goods).
9. Regarding technical assistance, Nigeria isoftheviewthatitshould takeplace in
cooperation withother relevant international organizations.WT/CTE/W/32
Page3
Draft Decision
Decision onCertain Products Whose SaleisBanned orSeverely Restricted intheDomestic
Market
Preamble
TheMembers oftheWorld Trade Organization
Having regard totheprovisions oftheGeneral Agreement onTariffs andTrade 1994
(hereinafter referred toas"General Agreement" or"GATT"), oftheAgreement onTechnical
Barriers toTrade (hereinafter referred toas"TBT Agreement"), andoftheAgreement onthe
Application ofSanitary andPhytosanitary Measures (hereinafter referred toas"SPS Agreement");
Recognizing thatevery Member must assume fullresponsibility fordecisions regarding its
ownimports, butthatimporting Members mayrequest theco-operation ofexporting Members in
cases where theimporting Member 'simport control procedures arenotyetfullydeveloped;
Recognizing theimportance offurnishing technical assistance todeveloping country
Members, incollaboration withtheWTO Secretariat andrelevant international organizations, in
order toassist these Members tocontrol effectively trade intheproducts concerned;
Noting theimportance ofnotification, information exchange systems, prior informed
consent procedures andcertification systems developed byother international organizations in
exchanging information andinassisting Members indeciding whether topermit importation ofthe
products concerned;
Desiring tofacilitate exchange ofinformation intrade inproducts thatarebanned or
severely restricted inthedomestic market ofaMember, aswellashazardous wastes, onthe
grounds thattheyaredangerous tohuman, animal orplant lifeorhealth, ortheenvironment;
Recognizing theneedtoensure thatsuchexchange ofinformation doesnotcreate
unnecessary obstacles tointernational trade norduplicate thework ofother international
organizations;
Hereby decide asfollows:
Article 1
Product Coverage
1.1 ThisDecision applies toproducts andwastes (hereinafter referred toas"theproducts
concerned"), asdefined inparagraphs (i)and(ii),andAnnex Ibelow:
(i) Products which aredetermined byaMember topresent serious anddirect danger
tohuman, animal orplant lifeorhealth ortheenvironment within itsterritory,
andwhich forthatreason arebanned orseverely restricted inthedomestic market
ofthatMember bygovernmental regulatory action, butwhich maybeexported,
except:
(a) fissionable andradioactive material; andWT/CTE/W/32
Page4
(b) arms, ammunition andimplements ofwarsupplied directly orindirectly to
amilitary establishment; or
(ii) Wastes which aredetermined byaMember tobehazardous andwhich forthat
reason arerequired tobedisposed ofinaccordance withgovernmental regulatory
action, butwhich maybeexported, except:
(a) suchwastes which, asaresult ofbeing fissionable orradioactive, are
subject tointernational control systems, including international
instruments, applying specifically tofissionable orradioactive materials;
and
(b) suchwastes which derive from thenormal operations ofaship, the
discharge ofwhich iscovered byanother international instrument.
1.2 Theinstruments adopted bytherelevant international organizations relating totheproducts
concerned areenumerated inAnnex II.
Article 2
Technical Assistance
2.1 Members agree tofacilitate theprovision oftechnical assistance toother Members,
especially developing country Members, either bilaterally orthrough theappropriate international
organizations, suchasFAO, UNEP andWHO. Such technical assistance would aimatassisting
countries which request ittoupgrade theirtechnical capacity formonitoring andcontrolling trade
inproducts subject tothisDecision, including thedevelopment andimplementation ofnational
legislation relating totheproducts concerned.
2.2 Members which aremembers orparticipants ofinternational instruments listed inAnnex II
shall, onrequest, advise other Members, especially thedeveloping country Members, andshall
grant them technical assistance onmutually agreed terms andconditions regarding the
establishment oftheinstitutions andlegalframework which would enable them tofulfil the
obligations ofmembership orparticipation insuchinternational instruments.
2.3 Members decide toestablish within thecontext oftheregular technical assistance budget
ofWTO aspecial trustfundfacility dedicated totheprovision oftechnical assistance inpursuance
ofthisDecision.
Article 3
Notification
3.1 AMember exporting aproduct falling under Article 1.1shallpromptly notify theother
Members through theWTO Secretariat oftheproduct concerned, themeasures related toitand
thereasons forwhich theywere adopted.WT/CTE/W/32
Page5
3.2 Theprovisions ofArticle 3.1shallnotapply iftheproduct concerned iscovered byan
international instrument enumerated inAnnex IIandtheexporting Member isasignatory ora
participant thereof.
3.3 Members shallensure thatanenquiry point exists which isabletoanswer allreasonable
enquiries from other Members andprovide therelevant information relating totheproducts
notified under paragraph 3.1above, soastoenable importing Members tomake aninformed
decision onimports.
Article 4
Measures tobeTaken byMembers
4.1 AnyMember adopting measures tobanorseverely restrict initsdomestic market anyof
theproducts concerned should examine whether thereasons forsuchmeasures would alsorequire
theadoption ofequivalent measures foralldomestic production ofthesame products.
4.2 Forthepurpose ofthisDecision, animport restriction applied onaproduct concerned
which isinconformity withtheGeneral Agreement andother relevant instruments may, by
mutual agreement, beadministered bytheexporting Member.
Article 5
General Provisions
5.1 Allmeasures taken forthepurpose ofthisDecision shall:
(i) beapplied inaccordance withtheprovisions oftheGeneral Agreement onTariffs
andTrade andother relevant WTO instruments, suchastheAgreement on
Technical Barriers toTrade andtheAgreement ontheApplication ofSanitary and
Phytosanitary Measures, and
(ii) notduplicate existing provisions contained intheinternational instruments listed in
Annex I,norundermine ongoing developments ofthese instruments.
5.2 Each Member shallensure thattheprovisions ofthisDecision shallnotbeapplied insuch
awayastocreate unnecessary obstacles tointernational trade.
5.3 Members which aremembers orparticipants oftheinternational instruments listed in
Annex Ishould sustain andmake more effective suchinternational co-operation, interalia,by
participating tothefullest extent possible intheactivities undertaken inpursuance ofthese
instruments. Other Members should, where possible, become members orparticipants ofsuch
instruments.
5.4 Nothing inthisDecision shallaffect therights andobligations ofmembers orparticipants
under theinternational instruments listed inAnnex I.
5.5 Thequestion whether aMember, which isamember orparticipant ofaninternational
instrument listed inAnnex I,isapplying theprocedures therein, shallbedetermined bythebody
which, under thatinstrument, iscompetent todoso.WT/CTE/W/32
Page6
Article 6
Final Provisions
6.1 TheCouncil forTrade inGoods shallmonitor theimplementation ofthisDecision.
6.2 ThisDecision shallbereviewed 2years afteritsimplementation.WT/CTE/W/32
Page7
Annex I
1. Banned product
Abanned product means anyproduct which has,forhealth orenvironmental reasons,
beenprohibited nationally forallusesbyfinalgovernment regulatory action.
2. Severely restricted product
Aseverely restricted product means anyproduct forwhich, forhealth orenvironmental
reasons, virtually alluseshavebeenprohibited nationally byfinalgovernment regulatory action,
butforwhich certain specific useorusesremain authorized.
3. Hazardous waste
Ahazardous waste means anywaste thatisdefined as,orconsidered tobe,hazardous by
thedomestic legislation oftheexporting country.
4. Disposal operations
Disposal operations include both(i)those operations which donotleadtothepossibility
ofresource recovery, recycling, reclamation, direct re-use oralternative usesofthehazardous
wastes, and(ii)those operations which mayleadtoresource recovery, recycling reclamation,
direct re-use oralternative usesofthehazardous wastes.WT/CTE/W/32
Page8
Annex II
International Instruments andTheir Administering Organizations
1. Montreal Protocol onSubstances thatDeplete theOzone Layer, (United Nations
Environment Programme).
2. Basel Convention ontheControl ofTransboundary Movements ofHazardous Wastes and
Their Disposal, (United Nations Environment Programme).
3. London Guidelines fortheExchange ofInformation onChemicals inInternational Trade,
Amended 1989, (United Nations Environment Programme).
4. International Code ofConduct ontheDistribution andUseofPesticides, (Food and
Agriculture Organization).
5. Certification Scheme ontheQuality ofPharmaceutical Products Moving inInternational
Trade, (World Health Organization).
6. Convention Concerning Safety intheUseofChemicals atWork, (International Labour
Office).
7. 1971 Convention onPsychotropic Substances, (United Nations Secretariat).
8. Single Convention onNarcotics, 1961, asAmended by1972 Protocol, (United Nations
Secretariat).
9. Convention Against Illicit Traffic inNarcotic Drugs andPsychotropic Substances, (United
Nations Secretariat).
10. Code ofEthics onInternational Trade inChemicals, (United Nations Environment
Programme).
11. TheUnited Nations Consolidated ListofProducts Whose Consumption and/or SaleHave
Been Banned, Severely Restricted and/or NotApproved byGovernments, (United Nations
Secretariat).
12. Codex Alimentarius, (Food andAgriculture Organization).
13. International Register ofPotentially Toxic Chemicals (IRPTC), (United Nations
Environment Programme).