./.WORLD TRADE
ORGANIZATIONG/C/W/437
20 November 2002
(02-6448)
Council for Trade in Goods Original:  English
TRANSITIONAL REVIEW MECHANISM
PURSUANT TO PARAGRAPH 18 OF THE PROTOCOL ON THE ACCESSION
OF THE PEOPLE'S REPUBLIC OF CHINA
EC communication to the Council for Trade in Goods
The following communication, dated 19 October 2002, has been received from the Permanent
Mission of the European Communities.
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The EC will not reiterate the questions tabled in the subsidiary bodies of the Council for
Trade in Goods, since these will be included in the reports made by the Chairmen of these bodies.
The EC would like to indicate that, while the year’s TRM in those bodies is for all practical purposesover, the set of questions remains a good indication of issues where the EC will continue to pursue
better understanding through the usual channels with China, not least where a response and a solution
by the Chinese authorities is still pending.
The EC would, nevertheless, like to transmit in advance of the Council for Trade in Goods the
questions listed below and related to issues not covered by the subsidiary bodies under the Council for
Trade in Goods, or to new developments taking place after the meeting of the concerned subsidiarybodies.
Transparency
Publication of quotas and tariff-rate quotas for 2003
The EC is still waiting for replies and solution s to the problems indicated at the meeting of
Committee on Market Access on 23 September 2002.  The representative of the China gave
assurances that the circulars concerning quotas (e.g. machinery and electrical products, fertilisers) and
TRQ allocation for 2003 would be published by mid-October 2002, in order to avoid the delaysexperienced in 2002.
• Could China indicate whether such publication has taken place?  Could China explain how
unused quotas 2002 have been redistributed?
Moreover, as regards the latest published regulation on quota management, i.e. on processed
oil (HS Chapter 27) and vehicle tyres (HS Chapter 40), the considerations on lack of transparency and
other problems related to quota management and tariff quota allocation (s. our submission contained
in document G/MA/W/33) do equally apply.G/C/W/437
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Transposition into domestic legislation
Non-discrimination
According to information obtained through bilateral contacts, the Chinese authorities are
envisaging the establishment of a dual distribution system for automobiles, respectively for
domestically-produced vehicles and for imported vehicles.
• Could China provide clarification on the status of such project, if currently considered?  The EC
would like to draw China’s attention to the lik ely inconsistency of such schemes with WTO and
GATT provisions concerning national treatment.
Government procurement
China stated at the Working Party for WTO accession that they would initiate negotiations for
membership in the GPA as soon as possible and, until such a time, all government entities  would
conduct their procurement in a transparent manner, and provide all foreign suppliers with equal
opportunity to participate in that procurement pursuant to the principle of MFN.
• Could China confirm that all government procurement is conducted in a transparent manner and
how the MFN principles are ensured in practise?
• Could China indicate a date to request GPA membership and start negotiations?
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