RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/328/Add.1
23 November 2001
(01-6016)
Council for Trade in Goods Original:  English
REQUEST FOR A WTO WAIVER
New EC Special Tariff Arrangements to Combat Drug Production and Trafficking
Addendum
The following communication, dated 23 November 2001, has been received from the
Permanent Delegation of the European Communities.
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Following the discussions at the meeting of the Council for Trade in Goods on 2 November
2001, the European Communities would like to hereby submit a revised version of the draft decision
contained in Annex II of the request for a GATT Article I waiver, concerning the new EC special
tariff arrangements to combat drug production and trafficking (circulated under document G/C/W/328
of 24 October 2001), whose text is enclosed herewith.
The preferential rules of origin applicable to the products covered by the waiver request are
defined in Commission Regulation (EEC) No 2454/93 laying down provisions for the implementation
of Council Regulation (EEC) No 2913/92 establishing the Community Customs Code, last amended
by Commission Regulation (EC) No 993/2001 of 4 May 2001 (Official Journal of the EuropeanCommunities L 141 of 28 May 2001, page 1).G/C/W/328/Add.1
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ANNEX II
Draft Decision of [date of decision]
The General Council,
HAVING REGARD TO paragraphs 1 and 3 of Article IX of the Marrakech Agreement
Establishing the World Trade Organisation (the "W TO Agreement"), the Guiding Principles to be
followed in considering applications for waiv ers adopted on 1 November 1956 (BISD 5S/25), the
Understanding in Respect to Waivers of Obligations under the General Agreement on Tariffs and
Trade 1994, paragraph 3 of Article IX of the WTO Agreement, and Decision-Making Proceduresunder Articles IX and XII of the WTO Agreement agreed by the General Council (WT/L/93);
CONDUCTING  the function of the Ministerial Conference in the interval between meetings
pursuant to paragraph 2 of Article IV of the WTO Agreement;
TAKING NOTE  of the request of the European Community (the “EC”) for a waiver from the
obligations of the EC under paragraph 1 of Article I of the General Agreement with respect to the
granting of preferential tariff  treatment for eligible products originating in certain Members as
provided under the special GSP arrangements to combat drug production and trafficking described in
document G/C/W/328  (hereinafter also referred to as “the special arrangements”);
CONSIDERING the exceptional situation of the deve loping countries beneficiary of the special
arrangements and that the objective of these arrangements is to assist the trade and economic
development of beneficiary developing countries by  encouraging the expansion of trade in legitimate
products as an alternative to the production and trafficking of illicit narcotics;
CONSIDERING also that the preferential tariff  treatment provided under the special
arrangements is designed to promote the expansion of trade and economic development of beneficiaries
in a manner consistent with the objectives of  the GATT 1994 and with the trade, financial and
development needs of the beneficiary countries, and not to raise barriers or to create difficulties for trade
of other Members;
NOTING the assurances given by the EC that it will, upon request, promptly enter into
consultations with any interested Member with respec t to any difficulty or matter that may arise as a
result of the implementation of the special arrangements;
NOTING  that, in light of the foregoing, the exceptional circumstances justifying a waiver
from paragraph 1 of Article I of the General Agreement exist;
DECIDES as follows:
1. Subject to the terms and conditions set out hereunder, Article I, paragraph 1 of the General
Agreement shall be waived, until 31 December 2004, to the extent necessary to permit the EC
to provide preferential tariff treatment to eligible products originating in certain Members as
provided under the special GSP arrangements to combat drug production described in
document G/C/W/328  and without being required to extend the same preferential tariff
treatment to like products of any other Member.
2. The EC shall promptly notify the General Council  of any changes in the preferential tariff
treatment to eligible products originating in the beneficiary countries of the special
arrangements.G/C/W/328/Add.1
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3. The EC will, upon request, promptly enter into consultations with any interested Member
with respect to any difficulty or matter that may arise as a result of the implementation of the
preferential tariff treatment  covered by this waiver; where a Member considers that any
benefit accruing to it under the General Agreement may be or is being impaired unduly as a
result of such implementation, such consultations shall examine the possibility of action  for a
satisfactory adjustment of the matter.
4. Any Member which considers that the preferential tariff treatment  covered by this waiver
is being applied inconsistently with this waiver or that any benefit accruing to it under the
General Agreement may be or is being impaired unduly as a result of the implementation of
the preferential tariff treatment  covered by this waiver and that consultations have proved
unsatisfactory, may bring the matter before the General Council , which will examine it
promptly and will formulate any recommendations that they judge appropriate.
5. The EC will submit to the General Council an annual report on the implementation of the
preferential tariff treatment  covered by this waiver.
6. This waiver shall not preclude the right of affected members to have recourse to
Articles XXII and XXIII of the General Agreement.
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