RESTRICTED
WORLD TRADE WT/GC/W/80
10March 1998
ORGANIZATION(98-0940)
General Council
REFERENCES TOTHE INTERNATIONAL MONETARY FUND INTHE
AGREEMENTS, MINISTERIAL DECISIONS AND DECLARATIONS RESULTING FROM
THE URUGUAY ROUND OFMULTILATERAL TRADE NEGOTIATIONS
Note bytheSecretariat
1. Thisdocument hasbeenprepared andcirculated bytheSecretariat attherequest oftheGeneral
Council. Itprovides thetextsofprovisions oftheWTO Agreements andUruguay Round Decisions
andDeclarations thatrefertotheInternational Monetary Fund (IMF orFund). Thereferences inthe
WTO Agreements arepresented first, followed bythereferences intheDecisions andDeclarations,
intheorder theyappear in"The Results oftheUruguay Round ofMultilateral Trade Negotiations:
TheLegal Texts". InthecaseofGATT 1994, theterm "contracting party(ies)" isreplaced by
"Member(s)" andtheterm"CONTRACTING PARTIES" isreplaced by"WTO", perparagraph 2(a)-(b)
ofthedefinition ofGATT 1994.
I. MARRAKESH AGREEMENT ESTABLISHING THEWORLD TRADE ORGANIZATION
2. Article III:5(Functions oftheWTO)
"With aviewtoachieving greater coherence inglobal economic policy-making, the
WTO shall cooperate, asappropriate, withtheInternational Monetary Fund andwiththe
International Bank forReconstruction andDevelopment anditsaffiliated agencies."
II. GENERAL AGREEMENT ONTARIFFS AND TRADE 1994
3. Article II:6(Schedules ofConcessions)
"(a)Thespecific duties andcharges included intheSchedules relating toMembers
members oftheInternational Monetary Fund, andmargins ofpreference inspecific duties and
charges maintained bysuchMembers, areexpressed intheappropriate currency atthepar
value accepted orprovisionally recognized bytheFund atthedateofthisAgreement.
Accordingly, incasethisparvalue isreduced consistently withtheArticles ofAgreement of
theInternational Monetary Fund bymore thantwenty percentum, suchspecific duties and
charges andmargins ofpreference maybeadjusted totakeaccount ofsuchreduction; provided
thattheCONTRACTINGPARTIES(i.e.,theMembersactingjointlyasprovidedforinArticleXXV)
concur thatsuchadjustments willnotimpair thevalue oftheconcessions provided forinthe
appropriate Schedule orelsewhere inthisAgreement, dueaccount being taken ofallfactors
which mayinfluence theneedfor,orurgency of,suchadjustments.
"(b)Similar provisions shallapply toanyMember notamember oftheFund, as
fromthedateonwhich suchMember becomes amember oftheFund orenters intoaspecial
exchange agreement inpursuance ofArticle XV."
4. Article VII:4 (Valuation forCustoms Purposes)WT/GC/W/80
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"(a)Except asotherwise provided forinthisparagraph, where itisnecessary for
thepurposes ofparagraph 2ofthisArticle foraMember toconvert intoitsowncurrency a
priceexpressed inthecurrency ofanother country, theconversion rateofexchange tobeused
shallbebased, foreachcurrency involved, ontheparvalue asestablished pursuant tothe
Articles ofAgreement oftheInternational Monetary Fundorontherateofexchange recognized
bytheFund, orontheparvalue established inaccordance withaspecial exchange agreement
entered intopursuant toArticle XVofthisAgreement.
"(b)Where nosuchestablished parvalue andnosuchrecognized rateofexchange
exist, theconversion rateshall reflect effectively thecurrent value ofsuch currency in
commercial transactions.
"(c)TheCONTRACTINGPARTIES,inagreementwiththeInternationalMonetaryFund,
shallformulate rulesgoverning theconversion byMembers ofanyforeign currency inrespect
ofwhich multiple ratesofexchange aremaintained consistently withtheArticles ofAgreement
oftheInternational Monetary Fund. AnyMember mayapply suchrules inrespect ofsuch
foreign currencies forthepurposes ofparagraph 2ofthisArticle asanalternative totheuse
ofparvalues.UntilsuchrulesareadoptedbytheCONTRACTINGPARTIES,anyMembermayemploy,
inrespect ofanysuchforeign currency, rules ofconversion forthepurposes ofparagraph 2
ofthisArticle which aredesigned toreflect effectively thevalue ofsuchforeign currency in
commercial transactions.
"(d)Nothing inthisparagraph shallbeconstrued torequire anyMember toalter
themethod ofconverting currencies forcustoms purposes which isapplicable initsterritory
onthedateofthisAgreement, ifsuchalteration would havetheeffect ofincreasing generally
theamounts ofdutypayable."
5. Note AdArticle VIII(Fees andFormalities connected withImportation andExportation),
Paragraph 1
"While Article VIIIdoesnotcover theuseofmultiple rates ofexchange assuch,
paragraphs 1and4condemn theuseofexchange taxes orfeesasadevice forimplementing
multiple currency practices; if,however, aMember isusing multiple currency exchange fees
forbalance ofpayments reasons withtheapproval oftheInternational Monetary Fund, the
provisions ofparagraph 9(a)ofArticle XV[Exchange Arrangements] fully safeguard its
position."
6. Note AdArticle XII:4(b) (Restrictions toSafeguard theBalance ofPayments)
"Itisagreed thatthedate[tobedetermined bytheCONTRACTING PARTIES forareview
ofallrestrictions stillapplied under Article XII]shallbewithin ninety daysaftertheentry
intoforce oftheamendments ofthisArticle effected bytheProtocol Amending thePreamble
andParts IIandIIIofthisAgreement. However, should theWTO findthatconditions were
notsuitable fortheapplication oftheprovisions ofthissub-paragraph atthetimeenvisaged,
theymaydetermine alaterdate;Provided thatsuchdateisnotmore thanthirty daysaftersuch
timeastheobligations ofArticle VIII, Sections 2,3and4,oftheArticles ofAgreement of
theInternational Monetary Fund become applicable toMembers, members oftheFund, the
combined foreign trade ofwhich constitutes atleastfiftypercentum oftheaggregate foreign
trade ofallMembers."
7. Article XIV(Exceptions totheRuleofNon-discrimination)WT/GC/W/80
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"1. AMemberwhichappliesrestrictionsunderArticleXII[RestrictionstoSafeguard
theBalance ofPayments] orunder Section BofArticle XVIII [Governmental Assistance to
EconomicDevelopment]may,intheapplicationofsuchrestrictions,deviatefromtheprovisions
ofArticle XIII[Non-discriminatory Administration ofQuantitative Restrictions] inamanner
having equivalent effect torestrictions onpayments andtransfers forcurrent international
transactions which thatMember mayatthattimeapply under Article VIIIorXIVoftheArticles
ofAgreement oftheInternational Monetary Fund, orunder analogous provisions ofaspecial
exchange agreement entered intopursuant toparagraph 6ofArticle XV.
"3. Theprovisions ofArticle XIIIshallnotpreclude agroup ofterritories having
acommon quota intheInternational Monetary Fund fromapplying against imports fromother
countries,butnotamongthemselves,restrictionsinaccordancewiththeprovisionsofArticleXII
orofSection BofArticle XVIII oncondition thatsuchrestrictions areinallother respects
consistent withtheprovisions ofArticle XIII.
"5. AMember shall notbeprecluded byArticles XItoXV,inclusive, orby
Section BofArticle XVIII, ofthisAgreement from applying quantitative restrictions:
(a) having equivalent effect toexchange restrictions authorized under Section 3
(b)ofArticle VIIoftheArticles ofAgreement oftheInternational Monetary
Fund, or
(b) underthepreferentialarrangementsprovidedforinAnnexAofthisAgreement,
pending theoutcome ofthenegotiations referred totherein."
8. Article XV(Exchange Arrangements)
"1. TheWTO shallseekco-operation withtheInternational Monetary Fund to
theendthattheWTO andtheFund maypursue aco-ordinated policy withregard toexchange
questions within thejurisdiction oftheFund andquestions ofquantitative restrictions andother
trade measures within thejurisdiction oftheWTO.
"2. Inallcases inwhich theWTO [is]called upontoconsider ordealwithproblems
concerning monetary reserves, balances ofpayments orforeign exchange arrangements, [it]
shallconsult fullywiththeInternational Monetary Fund. Insuchconsultations, theWTO shall
accept allfindings ofstatistical andother facts presented bytheFund relating toforeign
exchange, monetary reserves andbalances ofpayments, andshallaccept thedetermination
oftheFund astowhether action byaMember inexchange matters isinaccordance withthe
Articles ofAgreement oftheInternational Monetary Fund, orwiththeterms ofaspecial
exchange agreement between thatMember andtheWTO. TheWTO inreaching [its]final
decision incases involving thecriteria setforth inparagraph 2(a)ofArticle XIIorin
paragraph 9ofArticle XVIII, shallaccept thedetermination oftheFund astowhatconstitutes
aserious decline intheMember 'smonetary reserves, averylowlevelofitsmonetary reserves
orareasonable rateofincrease initsmonetary reserves, andastothefinancial aspects ofother
matters covered inconsultation insuchcases.
"3. The[CONTRACTINGPARTIES][WTO]shallseekagreementwiththeFundregarding
procedures forconsultation under paragraph 2ofthisArticle.
"4. Membersshallnot,byexchangeaction,frustrate[seeNoteinparagraph9below]
theintent oftheprovisions ofthisAgreement, nor,bytradeaction, theintent oftheprovisions
oftheArticles ofAgreement oftheInternational Monetary Fund.WT/GC/W/80
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"5. IftheCONTRACTINGPARTIESconsider,atanytime,thatexchangerestrictionson
payments andtransfers inconnection withimports arebeing applied byaMember inamanner
inconsistent withtheexceptions provided forinthisAgreement forquantitative restrictions,
theyshallreport thereon totheFund.
"6. AnyMember which isnotamember oftheFund shall, within atimetobe
determined bytheWTO afterconsultation withtheFund, become amember oftheFund, or,
failing that,enter intoaspecial exchange agreement withtheWTO. AMember which ceases
tobeamember oftheFund shallforthwith enter intoaspecial exchange agreement withthe
WTO. Anyspecial exchange agreement entered intobyaMember under thisparagraph shall
thereupon become partofitsobligations under thisAgreement.
"7. (a) Aspecial exchange agreement between aMember andtheWTO under
paragraph 6ofthisArticle shallprovide tothesatisfaction oftheWTO thattheobjectives of
thisAgreement willnotbefrustrated asaresult ofaction inexchange matters bytheMember
inquestion.
(b) Theterms ofanysuchagreement shallnotimpose obligations onthe
Member inexchange matters generally more restrictive thanthose imposed bytheArticles
ofAgreement oftheInternational Monetary Fund onmembers oftheFund.
"8. AMember which isnotamember oftheFund shallfurnish suchinformation
within thegeneral scope ofsection 5ofArticle VIIIoftheArticles ofAgreement ofthe
International Monetary FundastheWTO mayrequire inorder tocarry out[its]functions under
thisAgreement.
"9. Nothing inthisAgreement shallpreclude:
(a) theusebyaMember ofexchange controls orexchange restrictions in
accordance withtheArticles ofAgreement oftheInternational Monetary Fund
orwiththatMember 'sspecial exchange agreement withtheWTO, or
(b) theusebyaMember ofrestrictions orcontrols inimports orexports, thesole
effect ofwhich, additional totheeffects permitted under Articles XI,XII,XIII
andXIV,istomake effective suchexchange controls orexchange restrictions."
9. Note AdArticle XV:4
"The word 'frustrate 'isintended toindicate, forexample, thatinfringements ofthe
letter ofanyArticle ofthisAgreement byexchange action shallnotberegarded asaviolation
ofthatArticle if,inpractice, there isnoappreciable departure fromtheintent oftheArticle.
Thus, aMember which, aspartofitsexchange control operated inaccordance withtheArticles
ofAgreementoftheInternationalMonetaryFund,requirespaymenttobereceivedforitsexports
initsowncurrency orinthecurrency ofoneormore members oftheInternational Monetary
Fund willnotthereby bedeemed tocontravene Article XIorArticle XIII. Another example
would bethatofaMember which specifies onanimport licence thecountry from which the
goods maybeimported, forthepurpose notofintroducing anyadditional element of
discrimination initsimport licensing system butofenforcing permissible exchange controls."
10. Note AdArticle XVI(Subsidies), Section B,Paragraph 1WT/GC/W/80
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"Nothing inSection B[Additional Provisions onExport Subsidies] shallpreclude the
usebyaMember ofmultiple ratesofexchange inaccordance withtheArticles ofAgreement
oftheInternational Monetary Fund."
III. GENERAL AGREEMENT ONTRADE INSERVICES
11. Article XI(Payments andTransfers)
"1. Except under thecircumstances envisaged inArticle XII,aMember shallnot
apply restrictions oninternational transfers andpayments forcurrent transactions relating to
itsspecific commitments.
"2. Nothing inthisAgreement shallaffect therights andobligations ofthemembers
oftheInternational Monetary Fund under theArticles ofAgreement oftheFund, including
theuseofexchange actions which areinconformity withtheArticles ofAgreement, provided
thataMember shallnotimpose restrictions onanycapital transactions inconsistently withits
specific commitments regarding suchtransactions, except under Article XIIorattherequest
oftheFund."
12. Article XII(Restrictions toSafeguard theBalance ofPayments)
"1. Intheevent ofserious balance-of-payments andexternal financial difficulties
orthreat thereof, aMember mayadopt ormaintain restrictions ontrade inservices onwhich
ithasundertaken specific commitments, including onpayments ortransfers fortransactions
relatedtosuchcommitments.Itisrecognizedthatparticularpressuresonthebalanceofpayments
ofaMember intheprocess ofeconomic development oreconomic transition maynecessitate
theuseofrestrictions toensure, interalia,themaintenance ofalevel offinancial reserves
adequate fortheimplementation ofitsprogramme ofeconomic development oreconomic
transition.
"2. Therestrictions referred toinparagraph 1:
(a) shallnotdiscriminate among Members;
(b) shallbeconsistent withtheArticles ofAgreement oftheInternational Monetary
Fund;
(c) shallavoid unnecessary damage tothecommercial, economic andfinancial
interests ofanyother Member;
(d) shallnotexceed those necessary todealwiththecircumstances described in
paragraph 1;
(e) shallbetemporary andbephased outprogressively asthesituation specified
inparagraph 1improves.
"3. Indetermining theincidence ofsuchrestrictions, Members maygivepriority
tothesupplyofserviceswhicharemoreessentialtotheireconomicordevelopmentprogrammes.
However, suchrestrictions shallnotbeadopted ormaintained forthepurpose ofprotecting
aparticular service sector.WT/GC/W/80
Page6
"4. Anyrestrictions adopted ormaintained under paragraph 1,oranychanges
therein, shallbepromptly notified totheGeneral Council.
"5. (a) Members applying theprovisions ofthisArticle shallconsult promptly
withtheCommittee onBalance-of-Payments Restrictions onrestrictions adopted under this
Article.
(b) TheMinisterial Conference shallestablish procedures [footnote omitted] for
periodic consultations withtheobjective ofenabling suchrecommendations tobemade tothe
Member concerned asitmaydeem appropriate.
(c) Suchconsultations shallassess thebalance-of-payment situation oftheMember
concerned andtherestrictions adopted ormaintained under thisArticle, taking intoaccount,
interalia,suchfactors as:
(i) thenature andextent ofthebalance-of-payments andtheexternal
financial difficulties;
(ii) theexternal economic andtrading environment oftheconsulting
Member;
(iii) alternative corrective measures which maybeavailable.
(d) Theconsultations shall address thecompliance ofanyrestrictions with
paragraph 2,inparticular theprogressive phaseout ofrestrictions inaccordance with
paragraph 2(e).
(e) Insuch consultations, allfindings ofstatistical andother facts presented
bytheInternational Monetary Fundrelating toforeign exchange, monetary reserves andbalance
ofpayments, shallbeaccepted andconclusions shallbebased ontheassessment bytheFund
ofthebalance-of-payments andtheexternal financial situation oftheconsulting Member.
"6. IfaMember which isnotamember oftheInternational Monetary Fund wishes
toapply theprovisions ofthisArticle, theMinisterial Conference shall establish areview
procedure andanyother procedures necessary."
IV. MARRAKESH DECLARATION OF15APRIL 1994
13. Paragraph 3
"Ministers confirm theirresolution tostrive forgreater global coherence ofpolicies
inthefields oftrade, money andfinance, including cooperation between theWTO, theIMF
andtheWorld Bank forthatpurpose. "
V. DECLARATION ONTHECONTRIBUTION OFTHEWORLD TRADE ORGANIZATION
TOACHIEVING GREATER COHERENCE INGLOBAL ECONOMIC POLICYMAKING
14. Paragraph 2
"Successful cooperation ineachareaofeconomic policy contributes toprogress in
other areas. Greater exchange ratestability, based onmore orderly underlying economic and
financial conditions, should contribute towards theexpansion oftrade, sustainable growth andWT/GC/W/80
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development, andthecorrection ofexternal imbalances. There isalsoaneedforanadequate
andtimely flowofconcessional andnon-concessional financial andrealinvestment resources
todeveloping countries andforfurther efforts toaddress debtproblems, tohelpensure economic
growth anddevelopment. Trade liberalization forms anincreasingly important component in
thesuccess oftheadjustment programmes thatmany countries areundertaking, ofteninvolving
significant transitional social costs. Inthisconnection, Ministers notetheroleoftheWorld
Bank andtheIMFinsupporting adjustment totrade liberalization, including support tonet
food-importing developing countries facing short-term costs arising from agricultural trade
reforms."
15. Paragraph 5
"The interlinkages between thedifferent aspects ofeconomic policy require thatthe
internationalinstitutionswithresponsibilitiesineachoftheseareasfollowconsistentandmutually
supportive policies. TheWorld Trade Organization should therefore pursue anddevelop
cooperation withtheinternational organizations responsible formonetary andfinancial matters,
while respecting themandate, theconfidentiality requirements andthenecessary autonomy
indecision-making procedures ofeachinstitution, andavoiding theimposition ongovernments
ofcross-conditionality oradditional conditions. Ministers further invite theDirector-General
oftheWTO toreview withtheManaging Director oftheInternational Monetary Fund and
thePresident oftheWorld Bank, theimplications oftheWTO 'sresponsibilities forits
cooperation withtheBretton Woods institutions, aswellastheforms suchcooperation might
take, withaviewtoachieving greater coherence inglobal economic policymaking."
VI. DECLARATION ONTHERELATIONSHIP OFTHEWORLD TRADE ORGANIZATION
WITH THE INTERNATIONAL MONETARY FUND
16. "Ministers ,
"Noting theclose relationship between theCONTRACTING PARTIES tothe
GATT 1947 andtheInternational Monetary Fund, andtheprovisions oftheGATT 1947
governing thatrelationship, inparticular Article XVoftheGATT 1947;
"Recognizing thedesire ofparticipants tobasetherelationship oftheWorld Trade
Organization withtheInternational Monetary Fund, withregard totheareas covered bythe
Multilateral Trade Agreements inAnnex 1AoftheWTO Agreement, ontheprovisions that
havegoverned therelationship oftheCONTRACTING PARTIES totheGATT 1947 with
theInternational Monetary Fund;
"Hereby reaffirm that,unless otherwise provided forintheFinal Act,therelationship
oftheWTO withtheInternational Monetary Fund, withregard totheareas covered bythe
Multilateral Trade Agreements inAnnex 1AoftheWTO Agreement, willbebased onthe
provisions thathave governed therelationship oftheCONTRACTING PARTIES tothe
GATT 1947 withtheInternational Monetary Fund."WT/GC/W/80
Page8
VII. DECISION ONMEASURES CONCERNING THEPOSSIBLE NEGATIVE EFFECTS OF
THEREFORM PROGRAMME ONLEAST-DEVELOPED AND NETFOOD-IMPORTING
DEVELOPING COUNTRIES
17. Paragraph 5
"Ministers recognize thatasaresult oftheUruguay Round certain developing countries
mayexperience short-term difficulties infinancing normal levels ofcommercial imports and
thatthesecountries maybeeligible todrawontheresources ofinternational financial institutions
under existing facilities, orsuchfacilities asmaybeestablished, inthecontext ofadjustment
programmes, inorder toaddress suchfinancing difficulties. Inthisregard Ministers take
noteofparagraph 37ofthereport oftheDirector-General totheCONTRACTING PARTIES to
GATT 1947 onhisconsultations withtheManaging Director oftheInternational Monetary
Fund andthePresident oftheWorld Bank (MTN.GNG/NG14/W/35) [Ways ofAchieving
GreaterCoherenceinGlobalEconomicPolicyMakingthroughStrengthenedGATTRelationships
withOther Relevant International Organizations]."
VIII. DECISION ONORGANIZATIONAL AND FINANCIAL CONSEQUENCES FLOWING
FROM THEIMPLEMENTATION OFTHEAGREEMENT ESTABLISHING THEWORLD
TRADE ORGANIZATION
18. "Ministers,
"...
"Noting theproposal oftheDirector-General that,insetting WTO staffconditions of
services, including salaries andpensions, dueaccount betaken ofthose oftheInternational
Monetary Fund andtheWorld Bank, ...".
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