RESTRICTED
WORLD TRADE G/C/W/27
22November 1995
ORGANIZATION(95-3816)
COUNCIL FOR TRADE INGOODS
1December 1995
NICARAGUA -ESTABLISHMENT OFANEW SCHEDULE XXIX
Draft Decision onExtension ofTime-Limit
Considering thattheCONTRACTING PARTIES, byDecisions of26January 19941and
9December 19942,suspended until30June1995theapplication oftheprovisions ofArticle IIofthe
GATT 1947toenable theGovernment ofNicaragua toimplement theCentral American Tariff System
(SAC) which isbased ontheHarmonized Commodity Description andCoding System (Harmonized
System);
Considering thatNicaragua onlybecame aMember oftheWTO on3September 1995 and,
asaresult, thetime-limit ofthewaiver, which expired on30June1995, wasnotextended on
1July1995.
Considering thatthefootnote toAnnex IA,Section onGATT 1994, subparagraph 1(b)(iii)
oftheAgreement Establishing theWorld Trade Organization requires theMinisterial conference to
establish atitsfirstsession arevised listofwaivers granted under Article XXV ofGATT 1947 and
stillinforce onthedateofentry intoforce oftheWTO Agreement;
Considering thatbyaDecision of31January 19953theGeneral Council established alistof
waivers existing attheentry intoforce oftheWTO Agreement, which included thewaiver granted
Nicaragua fortheestablishment ofanewSchedule LXXXVIII.
Considering thatparagraph 2oftheUnderstanding inRespect ofWaivers ofObligations under
theGeneral Agreement onTariffs andTrade 1994 provides thatanywaiver ineffect onthedateof
entryintoforceoftheWTOAgreementshallterminateunlessextendedinaccordancewiththeprocedures
setoutinparagraph 1oftheaforementioned Understanding andthose ofArticle IXoftheWTO
Agreement onthedateofitsexpiry ortwoyears from thedateofentry intoforce oftheWTO
Agreement, whichever isearlier;
Taking intoaccount thattheGovernment ofNicaragua hassubmitted thenecessary factual
documentation fortheinitiation ofnegotiations4;
1L/7406.
2L/7600.
3WT/L/3 andCorr.1.
4G/SECRET/HS/3.
./.G/C/W/27
Page2
Taking notethattwoMembers havereserved theirrighttoenterintonegotiations inaccordance
withArticle XXVIII, buthavenotyetsubmitted anyrequest inthisrespect, which hasdelayed the
process;
Considering thatinorder tofulfil theprocedures established bytheCouncil Decision of
12July1983 forrectification andrenegotiation oftheschedules ofconcessions negotiated inGATT
under theHarmonized System andinorder toholdconsultations inconformity withtheprovisions
ofArticle XXVIII, theGovernment ofNicaragua, having fulfilled therequirements oftheUnderstanding
inRespect ofWaivers ofObligations under theGATT 1994, hasrequested afurther extension ofthe
waiver ofitsobligations under Article IIofGATT 1994 until30June19965;
TheGeneral Council, acting pursuant totheprovisions ofArticle IXoftheWTO Agreement,
Decides, inviewoftheexceptional circumstances, toextend until30June1996thetime-limit
provided forinthedecision of26January 1994.
5G/L/46.