./.WORLD TRADE
ORGANIZATIONWT/GC/W/275
27 July 1999
(99-3162)
General Council Original:  English
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
Extension of the Five-Year Period in Article 64:2 of the Agreement on TRIPS
Communication from the CEFTA countries and Latvia
The following communication, dated 23 July 1999, has been received from the Permanent
Mission of Hungary.
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Issue
1. Paragraph 1 of Article 64 of the Agreement on TRIPS affirms the applicability of
Articles XXII and XXIII of GATT 1994, as elaborated and applied by the Dispute Settlement
Understanding, to the TRIPS Agreement.  Paragraph 2 of Article 64 provides for the non-application
of subparagraphs 1(b) and 1(c) of Article XXIII of GATT 1994 to the settlement of disputes under the
Agreement on TRIPS for a period of five years from the date of entry into force of the
WTO Agreement.  Paragraph 3 of Article 64 calls on the Council for TRIPS to examine, during the
five-year period, the scope and modalities for complaints of the type under subparagraphs 1(b) and
1(c) of Article XXIII of GATT 1994 in the cont ext of the Agreement on TRIPS with a view to
submitting recommendations to the Ministerial Conference for approval.  The five-year period is
going to end on 1 January 2000.
2. The CEFTA countries and Latvia are of the view that the examination of the scope and
modalities provided for in paragraph 3 of Article 64 is at its preliminary stages.  In light of the lack of
clarity regarding even the relevant basic notions with respect to complaints of the type undersubparagraphs 1(b) and 1(c) of Article XXIII of  GATT 1994 made pursuant to the TRIPS Agreement,
the genuine complexity of the issues involved and th e divergence of views as to their applicability and
desirability, the CEFTA countries and Latvia believe that further in-depth analysis is needed.  The
CEFTA countries and Latvia think that the examination in the Council for TRIPS and, on its basis, the
formulation of recommendations will prove to be time-consuming and that the deadline of1 January 2000 fixed in the TRIPS Agreement cannot be met.
3. The CEFTA countries and Latvia believe that for the adoption of the recommendations called
for in paragraph 3 of Article 64 consensus is needed in the Council for TRIPS.  Furthermore, the
approval by the Ministerial Conference of the recommendations on the scope and modalities is a
precondition of the application of subparagraphs 1(b)  and 1(c) of Article XXIII of GATT 1994 in the
TRIPS context.  In other words, irrespective of the expiration of the five-year period provided for by
paragraph 2 of Article 64, complaints of the type of subparagraphs 1(b) and 1(c) of Article XXIII of
GATT 1994 will remain inadmissible under the TRIPS Agreement until a decision is made by
consensus at the Ministerial Conference on the a pproval of the TRIPS Council’s recommendation on
the scope and modalities of those complaints.WT/GC/W/275
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4. The CEFTA countries and Latvia are ready to continue with an open mind the thorough
examination of the scope and modalities in the Council for TRIPS.  However, at this stage the CEFTA
countries and Latvia are not convinced of the need for and applicability of complaints under
subparagraphs 1(b) and 1(c) of Article XXIII of GATT 1994 in the context of the Agreement on
TRIPS.
Proposal
5. In light of the fact that the Council for TRIPS has just started the examination required under
paragraph 3 of Article 64 of the Agreement on TRIPS on the scope and modalities for complaints of
the type provided for under subparagraphs 1(b) and 1(c) of Article XXIII of GATT 1994 made
pursuant to the Agreement on TRIPS, and that clea rly more time is needed in order to fulfil the
requirements of Article 64, paragraph 3 of the Agreement on TRIPS, it is proposed that the period inparagraph 2 of Article 64 of the Agreement on TRIPS be extended until this work, including the
approval by the Ministerial Conference of the recommendations on the scope and modalities by
consensus, is completed.
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