RESTRICTEDWORLD TRADE
ORGANIZATIONWT/TPR/W/21
11 November 1998
(98-4442)
Trade Policy Review Body
TRADE POLICY REVIEW MECHANISM
DRAFT REPORT OF THE TRADE POLICY REVIEW BODY FOR 1998
Chairman: H.E. Mr Ali Said Mchumo
1. The Trade Policy Review Mechanism was established in the GATT in 1989, following the
Mid-Term Review of the Uruguay Round.  It has thus  been in existence for nine years.  Under the
Marrakesh Agreement, the Mechanism is to be revi ewed at the latest in 1999 ("not more than five
years after the entry into force of the Agreement Establishing the WTO"), and consultations to this
effect will begin soon.  However, Members have kept the Mechanism under frequent review since its
inception and a number of procedural improvements have been introduced.
2. This report by the Trade Policy Review Body seeks to provide the Body's annual assessment
of the extent and manner in which the TPRM is fulfilling its objectives as stated in the Marrakesh
Agreement.  The report discusses the Trade Policy Reviews conducted in 1998 and the main issues
addressed by them.  Tables are annexed showing the Member countries reviewed to the end of 1998,
the geographical coverage of the reviews and the proposed programme of reviews for 1999.
3. The TPRB is grateful to Ambassador Anne Anderson (Ireland) for having chaired the TPRB
Meeting to review the trade practices of the So lomon Islands, in the unavoidable absence of the
Chairperson.
Fulfilling its objectives
4. The objectives of the TPRM are laid out in Annex 3 to the Marrakesh Agreement:
"to contribute to improved adherence by all Members to rules, disciplines and commitments
made under the Multilateral Trade Agreements and, where applicable, the Plurilateral Trade
Agreements, and hence to the smoother functioning of the multilateral trading system, byachieving greater transparency in, and understanding of, the trade policies and practices of
Members."
5. The TPRM is required over time to regularly review the trade policies and practices of all
Members.  By the end of 1998, 109 reviews (102 if gr ouped reviews were counted as single reviews)
have been conducted since the formation of the Mechanism, covering 67 Members, counting theEuropean Union as one.  The members reviewed represent 84% of world merchandise trade and 61%
of the total Membership of the WTO (Annex I).  Of the Members reviewed, eight are least developed
countries.
6. During 1998, the Trade Policy Review Body conducted 15 reviews, covering 20 Members
(Annex II).  Of the corresponding 20 Secretariat reports, 13 were entirely prepared by WTO staff
1,
while seven were prepared with the collaboration of consultants.2  Funding for these consultancies
was provided on a project or trust fund basis by Au stralia, Denmark, and the United Kingdom.  Seven
                                                     
1 Australia;  Canada;  Hong Kong, China;  Hungary;  India;  Indonesia;  Jamaica;  Japan;  Nigeria;
South Africa;  Trinidad and Tobago;  Turkey;  and Uruguay.
2 Botswana, Burkina Faso, Lesotho, Mali, Namibia, Solomon Islands, and Swaziland.WT/TPR/W/21
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of the 1998 reviews, covering 11 countries, were carried over from 1997.3  All reports involved close
collaboration with the authorities of the countr ies under review.  Of the 15 reviews, two were
grouped reviews, with South Africa, Botswana, Lesotho, Namibia, and Swaziland forming the first
group, and Burkina Faso and Mali comprising the second group.  Nine countries were reviewed for
the first time, including four least developed countries.4
7. In general, procedures for the reviews have been smooth.  In most cases, documentation has
been provided and questionnaires answered within, or close to, the appropriate time frames;  visits to
capitals have been productive;  and pertinent comme nts have been provided on Secretariat drafts,
enabling the correction of misunderstandings or inaccuracies.  The result has been that the quality,
content and style of the reviews have been maintained.
8. During the year, a number of reviews have had to be rescheduled for various reasons.  Such
postponements are not desirable and have contributed to a concentration of reviews towards the latterquarter of the year.  Due in great part to software upgrading at the WTO, substantial lags have been
experienced between review meetings and the publication of reviews.  Improved internal
arrangements and a new cooperative publishing agreement, reached with an international publishing
company, should considerably shorten these lags.
9. The document circulated to Members in July 1998 (WT/TPR/W/20) identified 17 countries
for possible review in 1999, of which 10 were to be carried over from 1998.  Reflecting both the
Secretariat's resources and the increased workload on delegations implied by the 1999 Ministerial
Conference and its preparation, the 1999 programme envisages the review of 12 countries
(Annex III).  The programme includes the reviews of Argentina, Bolivia, Guinea, Egypt, Israel,
Nicaragua, Papua New Guinea, Philippines, Romania, Thailand, Togo, and the United States.  It isexpected that the Secretariat reports for the reviews of Guinea, Papua New Guinea, and Togo will be
prepared with the assistance of consultants.  Meeting the 1999 schedule should also allow a more
evenly spaced programme of reviews in 2000, avoiding the concentration of reviews and delays that
have occurred this year.
Utility
10. The clearest value of the Mechanism to Members is the existence of a forum in which
Members openly discuss recent developments in their trade policies, which is separate from the
dispute and compliance related work of the WTO.  The TPRM provides an environment in which
Members seek further information about all aspects of each others' trade policies and practices,
elicit  information and register concerns.  The TPR exercise is also useful to individual Members under
review in that it provides an independent and objective analysis of trade policies and helps
policymakers to develop a better understanding of the impact of different trade policy measures.Members have, in the past, commented on the usefulness of the exercise in improving inter-agency
cooperation in their countries and in providing an overall picture of the effect of various trade
measures across sectors.  In the case of some developing and least developed countries, the TPR has
also been valuable in providing technical assistance.
11. The comprehensive coverage of the TPRM provides a basis for analyses of individual
countries in the context of the wider patterns of international trade and policymaking.  Most recently,
in the financial crisis that has affected some Asian and other countries, such analysis has proved
important in the reports and discussions of trade and related issues and challenges facing countries
affected by the crisis, particularly Australia;  Hong Kong, China;  Indonesia;  and Japan.
                                                     
3 Hungary, India, Jamaica, Japan, Nigeria, SACU (South Africa, Botswana, Lesotho, Namibia,
Swaziland), and Trinidad and Tobago.  Of these seven were carried out by WTO Secretariat Staff.
4 Countries reviewed for the first time were Botswana, Burkina Faso, Jamaica, Lesotho, Mali, Namibia,
Solomon Islands, Swaziland, and Trinidad and Tobago.WT/TPR/W/21
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Principal Themes Emerging from the 1998 Reviews
12. Although each review is country specific and highlights the issues of concern to individual
Members, a number of common themes emerged from the reviews in 1998.
− The momentum of autonomous trade liberalization has been largely maintained, resulting in a
greater openness for most Members;  there continues to be a substantial degree of consensus
about the general direction reforms should follow.  The greater openness has improvedawareness about the importance of strong linkages between trade liberalization and domestic
reforms, and has also increased the integration between national economies.
− Some reviews have provided useful insights into the causes and effects of the financial crisis
as it has unfolded.  They have highlighted the importance of the macroeconomic and
institutional framework within which countrie s conduct their trade policies, have shown that
"going it alone" is not an option for individual countries in an increasingly interdependent
world economy, and that keeping markets open is a vital element in resolving the crisis.
− In terms of specific trade measures, it has been encouraging to note that most of the countries
directly affected by the financial crisis have not resorted to protectionist measures and,
indeed, some have liberalized their trade and related regimes as part of structural measures to
address the crisis;  however, some concern has also been expressed about the possible use of
trade-inhibiting action, particularly given the considerable gap that often exists betweenapplied and bound tariffs.  In the case of countries not directly affected by the crisis, there was
concern that increased exports from the affected countries might lead to growing pressure
from local industry to resort to defensive tr ade instruments such as anti-dumping and
safeguard measures.
− Implementation of the Uruguay Round results remained high on the agenda of Members
reviewed in 1998.  By and large, the repor ts and reviews conducted so far show that
implementation has proceeded relatively smoothly, with a number of developing countries
declaring that they would make use of the transitional period granted to them to complete
implementation.  A number of developing countries have also stressed the importance of
achieving the proper balance of rights and obligations set out in the Uruguay Roundagreements.  In some cases, especially for least developed countries, there have been requests
for technical cooperation to assist in implementation.
− Though the degree of openness has increased for most Members, concerns highlighted in
recent reviews relate to a shift towards regional agreements.  The interaction between
unilateral liberalization, regional agreements and multilateral negotiations has also becomemore complex.
− Although the sectoral elements of the reviews continue to deal with policy developments in
agriculture and manufacturing, service sectors have gained increasing importance, especiallytelecommunications and financial services.  Cross sectoral implications of policies have also
been highlighted in recent reports.
Coverage of Least Developed Countries (LDCs)
13. In its Report to the Singapore Ministerial Conference, the Trade Policy Review Body noted
that, "The question of completing the coverage of TPRs, particularly to the smaller developing and
least-developed countries, is one which will require particular attention in the preparation of the
TPRB timetable".  The High-Level Meeting on Le ast-Developed Countries, held in October 1997,WT/TPR/W/21
Page 4
encouraged LDCs to actively seek trade policy reviews and for the WTO to accommodate such
requests.
14. Of the 27 least developed countries currently members of the WTO, eight have been reviewed
by the TPRB, of which four were reviewed in 1998 (Annex II).5  An additional two are expected to be
reviewed in 1999 (Annex III).
15. The reviews of LDCs have served mainly as a form of technical assistance, enabling a better
understanding of the trade policy structure in place and any shortcomings, as well as its relationship to
WTO Agreements.  The reviews have also provided a framework for several countries to develop
their own mechanisms for examining their trade policies and provides a better understanding of the
WTO Agreements, enabling better compliance.  In addition, the mechanism allows Governments to
identify specific areas where they would require further technical assistance on any of the WTO
Agreements.
16. In addition to assistance from consultants, wider coverage of least developed countries, has
been facilitated by grouping reviews, where feasible, while respecting the individual nature of the
TPR process.  The grouped reviews conducted thus far have been well received and suggestions have
been made by other Members to conduct similar reviews for other regional groupings.
Conclusions
17. The TPR has continued to fulfil its role as an effective exercise in transparency.  The
expansion of the coverage of the reviews to deal effectively with areas such as intellectual property,
services and other matters in the WTO mandate has continued, while maintaining the quality of the
reviews.  The process in 1998 has generally been satisfactory, although a number of reviews have
been delayed.  Postponements are always undesirable and steps are being taken to minimize them.The 1999 programme, in particular, seeks to address this problem and to avoid the concentration of
reviews towards the end of the year.
18. Given the limited resources of the Secretariat and the growing list of countries to be reviewed
annually, it is important that the functioning of the Mechanism be as efficient as possible.  The
smooth functioning of the TPR process and completion of reviews on time should remain a priorityboth of the Secretariat and of individual members under review.  In particular, the continued active
cooperation of the authorities in capitals remains an essential part of the TPR process without which it
would lose a great deal of its authority.
                                                     
5 The remaining LDC members of the WTO yet to be reviewed by the TPRB are:  Angola, Burundi,
Central African Republic, Chad, Democratic Republic of  Congo, Djibouti, The Gambia, Guinea, Guinea-Bissau,
Haiti, Madagascar, Malawi, Maldives, Mauritania, Mozambique, Myanmar, Niger, Rwanda, Sierra Leone,Tanzania, and Togo.WT/TPR/W/21
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Annex I
TRADE POLICY REVIEWS
WTO members reviewed under GATT 1947 and WTO provisions, 1989-1998
Error! Bookmark not
defined.Europe/Middle
EastAsia/Pacific Africa America
Austria1aAustralia (3)cBeninb, dArgentinac
Czech RepublicbBangladesha,dBotswanabBoliviaa
CyprusbFijibBurkina Fasob, dBrazil (2)c
European Union (4)cHong Kong, China (3)cCameroonaCanada (5)c
Finland1aIndia (2)cCôte d'IvoirebChile (2)c
Hungary (2)cIndonesia (3)cEgyptaColombia (2)c
IcelandaJapan (4)cGhanaaCosta Ricab
IsraelaKorea (2)cKenyaaDominican Republicb
Norway (2)cMacauaLesothob,El Salvadorb
PolandaMalaysia (2)cMalib,dJamaicab
RomaniaaNew Zealand (2)cMauritiusbMexico (2)c
SlovakiabPakistanaMorocco (2)cParaguayb
Sweden1 (2)aPhilippinesaNamibiabPerua
Switzerland (2)cSingapore (2)cNigeria (2)cTrinidad and Tobagob
Turkey (2)cSolomon Islandsb,dSenegalaUnited States (4)c
Sri LankabSouth Africa (2)cUruguay (2)c
Thailand (2)cSwazilandbVenezuelab
Tunisiaa
Ugandab, d
Zambiab, d
Zimbabwea
15 17 21 17
 ( ) Figures in brackets show the number of reviews where this is greater than 1.
1Included in EU from 1995.
a Reviewed under GATT 1947.
b Reviewed under the WTO.
c Reviewed under GATT 1947 and the WTO.d Least developed country
Number of reviews conducted at end-1998 = 109
Number of WTO Members reviewed = 81 out of 132 (counting EU as 15)
= 61% of WTO Members (of which, 26 in Europe, 17 in
Asia/Pacific, 21 in Africa and 17 in America)
Number of WTO Members reviewed = 67 out of 118 (counting EU as 1)
Number of least-developed WTO Members (*) = 8Share of world trade of WTO Members reviewed (excluding significant double counting and EU
intra-industry trade) = 84%WT/TPR/W/21
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Annex II
TPR Reviews Conducted in 1998
CountryaMeeting Date
(scheduled)Review Cycle (years)
Japan (4) 27.01.98 2
India (2) 16.04.98 4
SACU (grouped review) 21.04.98
South Africa (2) 4
Botswana 6
Lesotho 6 b
Namibia 6
Swaziland 6
Nigeria (2) 23.06.98 6
Hungary (2) 07.07.98 6
Australia (3) 30.06.98 4
Solomon Islands 21.09.98 6 b
Turkey (2) 12.10.98 4
Jamaica 29.10.98 6
Trinidad & Tobago 12.11.98 6
Burkina Faso (grouped review) 18.11.98 6 b
Mali 6 b
Uruguay (2) 23.11.98 6
Indonesia (3) 3.12.98 4
Hong Kong, China (3) 7.12.98 4
Canada (5) 15.12.98 2
aFigures in parenthesis indicate number of reviews completed
bLeast developed country
Annex III
Proposed programme of reviews for 1999
Two-year cycle United States1
Four-year cycle Israel1 , Thailand
Six-year cycle Argentina1, Egypt1, Romania1, Bolivia, Nicaragua2, Papua New Guinea2,
Philippines
Least-developed countries Guinea1, Togo1
1Brought forward from 1998
2New review requested for 1999
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