RESTRICTED
WORLD TRADE G/C/M/16
10December 1996
ORGANIZATION(96-5160)
Council forTrade inGoods
29November 1996
MINUTES OFTHE MEETING
Held intheCentre William Rappard
on29November 1996
Interim Chairperson: Ms.R.L. Bautista (Philippines)
Themeeting wasconvened byWTO/AIR/493. Intheabsence oftheChairman, Ambassador
Narayanan, theCouncil elected Ambassador R.L.Bautista (Philippines) asinterim Chairperson for
thismeeting oftheCouncil, pursuant toRule14ofthe"Rules ofProcedure forMeetings oftheCouncil
forTrade inGoods" (WT/L/79).
Theproposed agenda contained indocument G/C/W/68 wasadopted withtheinclusion ofitems
under "Other Business" asfollows:
Page
1. Establishment ofConsolidated Loose-Leaf Schedules 1
- Draft Decision (G/C/W/63)
2. Elements oftheWTO Programme onTrade Facilitation 2
- Communication from theEuropean Communities (G/C/W/67)
3. Chairperson oftheCommittee onAgriculture 3
- Statement bytheChairman
Thefollowing items were included under "Other Business":
4. Korea -Tariff Measures byEcuador against certain Suppliers 3
5. Dateofthenextmeeting 5
_________________
1. Establishment ofConsolidated Loose-Leaf Schedules
- Draft Decision (G/C/W/63)
1.1 TheChairperson recalled thatthedecision ontheestablishment ofconsolidated loose-leaf
schedules hadbeenunder consideration intheMarket Access Committee forsome timenow. Atits
meeting of18October 1996, theCommittee hadconsidered arevised textofthedecision, which it
hadapproved andwhich ithadagreed should beforwarded tothisCouncil foradoption; thetextof
thedraftdecision wascontained indocument G/C/W/63.G/C/M/16
Page2
1.2 Therepresentative ofNorway stated thathisdelegation wasconcerned thatithadnotbeen
possible toreach consensus onsetting atime-limit forthisexercise. Thelackofadeadline created
anunclear andundesirable situation forthose Members whohadalready submitted theirconsolidated
loose-leaf schedules including theHS96 changes. Therepresentative ofSwitzerland shared theconcerns
expressed byNorway.
2. Elements oftheWTO Programme onTrade Facilitation
- Communication from theEuropean Communities (G/C/W/67)
2.1 TheChairperson drewMembers 'attention toacommunication fromtheEuropean Communities
circulated indocument G/C/W/67 on"Elements oftheWTO Programme onTrade Facilitation".
2.2 Therepresentative oftheEuropean Communities stated thatsince requesting thatthisitembe
placed ontheagenda, thismatter hadbeendiscussed inanother forum inthecontext ofthepreparations
fortheSingapore Ministerial Conference (SMC). Hisdelegation didnotintend tohaveasubstantial
discussion onthisagenda itematthismeeting andwould wishtorevert toitinthenewyearinthe
lightoftheconclusions ordecisions which might bereached ontheissue inSingapore.
2.3 Therepresentative ofMorocco recalled thathisdelegation hadsupported thisinitiative from
theoutset andwould continue todoso.Ofalltheissues raised inthefuture work programme ofthe
WTO, thisissuewasonewhich enjoyed abroad measure ofsupport, virtually aconsensus. Members
should revert tothismatter andgiveitmore detailed consideration, inlightoftheresults oftheSMC.
2.4 Therepresentative ofJapan stated thathisdelegation hadsupported theideainprinciple. His
delegation, however, wished tohavemore details about thisproposal. Forexample, regarding the
coverage andtypeofwork proposed andwhether thework should bedone bytheSecretariat ora
Working Group. Members should alsodraw onthework inthisareaofother relevant international
organizations.
2.5 Therepresentative oftheEuropean Communities stated thatthecoverage would, tosomeextent,
berelated tothenature ofthedecisions thatmight betaken inSingapore ontheissue. However, as
heviewed itatthisstage, theactivities undertaken inexisting WTO Committees andinstitutions might
haveabearing onthequestion ofcoverage. Hisdelegation sawthework inaninitial stageasessentially
exploratory, which would consist inidentifying those organizations which hadalready orwerecarrying
outwork inthisarea,i.etheobjectives, thetypeandcoverage ofthework undertaken, andthegeneral
approach. Inlightofthisinformation, thenextstepwould betoidentify theWTO Committees and
institutions which would berelevant tothatwork. Forexample, theAgreement onImport Licensing
andtherefore theCommittee onImport Licensing would verylikely havetomake aninput tothis
exercise.
2.6 Therepresentative ofSwitzerland stated thathisdelegation supported, inprinciple, theproposal
andapproach suggested bytherepresentative oftheEuropean Communities. Itwasanareawhich
called formore close attention onthepartoftheWTO. Therepresentatives ofNorway andIceland
shared theviews expressed bySwitzerland.
2.7 Therepresentative ofPeru, supporting theECinitiative, pointed outthatother organizations,
notably UNCTAD, hadbeenworking onthisissue. Possibly some oftheelements ofUNCTAD 's
work inthisareacould betaken asreference points fortheWTO work.
2.8 Therepresentative ofEgypt shared theviews expressed byMorocco, Japan andPeru. However,
herdelegation believed thatastarting point forthistypeofexercise, i.e.evenbefore anyexploratory
work, would havetobeanexchange ofinformation withother organizations. Thiswould alsogiveG/C/M/16
Page3
anopportunity toMembers toexamine whatwould betheappropriate course ofaction fortheWTO.
Inparticular, UNCTAD hadasuccessful project inthisarea, known asthe"Special Programme for
Trade Efficiency".
2.9 Therepresentative ofCanada supported theECproposal.
2.10 TheCouncil tooknoteofthestatements.
3. Chairperson oftheCommittee onAgriculture
- Statement bytheChairman
3.1 TheChairperson stated thatAmbassador D.Tulalamba, inhisletter dated 25September 1996
addressed toAmbassador S.Narayanan, theChairman oftheGoods Council, hadexpressed adesire
toresign fromhisfunction asChairman oftheCommittee onAgriculture. Inthisletter, hehadalso
indicatedthathisresignationmaybemadeeffectivefromthedateonwhichtheCommitteeonAgriculture
appointed hisreplacement.
3.2 IntermsoftheguidelinesfortheappointmentofofficerstoWTObodiesapprovedbytheGeneral
Council on31January 1995 (WT/L/31), theChairperson oftheGoods Council hadtoconduct
consultations ontheappointment oftheChairpersons ofthesubsidiary bodies oftheCouncil, including
theCommittee onAgriculture. Onthebasisoftheconsultations thatAmbassador Narayanan hadheld,
hehadfound thattherewasconsensus toappoint Mrs.Tantraporn, Minister intheMission ofThailand,
astheinterim Chairperson toperform thefunctions oftheChairperson inaccordance withRule14
oftheRules ofProcedure oftheCommittee onAgriculture. Theelection ofanewChairperson for
1997 would takeplace atthefirstmeeting oftheCommittee onAgriculture in1997 inaccordance
withRule12oftheCommittee 'sRules ofProcedure.
3.3 Since thepresent Council meeting wasscheduled totakeplace onedayafterthemeeting of
theCommittee onAgriculture, andinorder nottodelay thework oftheCommittee,
Ambassador Narayanan hadsentacommunication toMembers on19November 1996 seeking their
approvalforthenominationofMrs.TantrapornforinterimChairpersonoftheCommitteeonAgriculture.
Hehadreceived noobjections totheproposed nomination. Hehadattended themeeting ofthe
Committee onAgriculture on28November 1996, andinformed theCommittee about thenomination
ofMrs. Tantraporn. Accordingly, theCommittee onAgriculture hadappointed Mrs. Tantraporn as
interim Chairperson.
3.4 TheChairperson proposed thattheCouncil takenoteoftheelection ofMrs. Tantraporn as
interim Chairperson oftheCommittee onAgriculture toperform thefunctions oftheChairperson,
pending theelection ofanewChairperson atthefirstmeeting oftheCommittee onAgriculture in1997.
3.5 TheCouncil tooknoteofthenomination.
3.6 TheChairperson, thanking Ambassador Tulalamba, onherbehalf andonbehalf ofallMembers,
forhisexcellent service asChairman oftheCommittee onAgriculture forthepasttwoyears, said
shewassurethatallMembersofthisCouncilwouldagreethathiswise,matureandpersuasiveleadership
hadenabled theCommittee onAgriculture towork efficiently andtocarry outitsmandate inafully
satisfactory manner.
4. Korea -Tariff Measures byEcuador against certain Suppliers
4.1 Therepresentative ofKorea recalled thatontwooccasions intheCommittee onMarket Access,
on14March 1996(G/MA/M/5) andon13June1996(G/MA/M/6), hisdelegation hadurged EcuadorG/C/M/16
Page4
torescind itstariffincrease onawiderange oftextile products imported fromKorea andotherMembers.
KoreahadappreciatedthewithdrawalofthepreviousEcuadorianmeasurewhichEcuadorhadcommitted
todoatthemeeting oftheMarket Access Committee inJune1996. However, Korea hadbeeninformed
thatasof9August 1996, justafterthewithdrawal oftheprevious measures, theEcuadorian authorities
hadintroducedtransitionalsafeguardmeasuresonseveraltextileproductsimportedfromcertainMembers
including Korea pursuant toArticle 6.11oftheAgreement onTextiles andClothing (ATC). Asfar
ashisdelegation wasaware, theATClimited suchmeasures toquantitative restrictions. Nonetheless,
theEcuadorianGovernmenthadadoptedtariffmeasureswhichimposedanadditionaltariffontheapplied
tariff. Hefurther recalled thatArticle 6.11oftheATC stipulated thatsuchsafeguard measures might
betaken onaprovisional basis onlyonthecondition thatarequest forconsultations andnotification
totheTMB beeffected within nomore thanfiveworking daysaftertaking theaction. However, Korea
hadreceived nosuchrequest forconsultations ornotification through theTMB inthethree months
which hadpassed since theaction tookeffect. Hetherefore sought clarification from thedelegation
ofEcuador regarding thestatus ofthese safeguard measures. Ifsuchmeasures hadbeenadopted, he
urged thatEcuador rescind themimmediately astheywereunjustifiable inviewoftheprocedure and
substance stipulated intheATC. Hisgovernment hoped thattheburden imposed onKorean textile
exporters could bealleviated assoonaspossible. Hisdelegation reserved allitsrights.
4.2 Therepresentative ofHong Kong thanked therepresentative ofKorea forraising thematter,
bearing inmindtheimportant responsibility ofthisCouncil tooversee thefunctioning oftheagreements
inAnnex 1AtotheWTO Agreement. Hong Kong wasoneofthesuppliers affected byEcuador 's
measures. Herecalled thatattheMarket Access Committee meeting of14March 1996, Korea had
brought toMembers 'attention ananti-dumping action byEcuador affecting, interalia,Korea andHong
Kong. Apparently thataction hadbeentaken byEcuador without observing WTO requirements,
including notification requirements. Members might wishtotakenoteofthesimilarity between the
lastandthepresent case. Hewasconcerned thatinthepresent case,Hong Kong hadnotbeenprovided
withdirect andofficial information. Hisdelegation would appreciate aconfirmation byEcuador whether
thesaidmeasures were indeed inexistence andifso,information onthenature anddetails andthe
WTO basis onwhich themeasures hadbeentaken. IfEcuador hadinvoked Article 6oftheATC,
herequested Ecuador toadvise Members ofwhether itintended tofollow theprocedures and
requirements prescribed under theATC. Hisdelegation hadheard thatthemeasures hadbeeninplace
since August 1996, initially forsixmonths. Ifthemeasures hadnotbeentaken inconformity with
WTO rules andprocedures, Hong Kong hoped thatthese measures would beterminated forthwith.
Hisdelegation reserved itsrights onthismatter.
4.3 Therepresentative ofEcuador confirmed thathisgovernment hadtaken themeasures identified
byKorea. Hepointed outthatthismeasure wasputintoforce on9August 1996, andthatthe
government hadchanged on10August 1996. Hisauthorities were prepared toconsult withKorea
andHong Kong onthismatter.
4.4 TheCouncil tooknoteofthestatements.
5. Dateofthenextmeeting
5.1 TheCouncil tooknotethatitsnextmeeting wasscheduled for27January 1997.