RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/M/38
19 April 1999
(99-1533)
Council for Trade in Goods
MINUTES OF THE MEETING
Held in the Centre William Rappard
on 25 and 30 March 1999
Chairperson: Ambassador R. Saborío Soto
The meeting was convened by WTO/AIR/1043 and the proposed agenda contained in
document G/C/W/144 was adopted.
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Page
I. HARMONIZATION WORK PROGRAMME PROVIDED FOR IN PART IV
OF THE AGREEMENT ON RULES OF ORIGIN;  PROGRESS REPORT OF
THE COMMITTEE ON RULES OF  ORIGIN (G/RO/33) ..............................................2
II. STATUS OF NOTIFICATIONS UNDER THE PROVISIONS OF THE
AGREEMENT IN ANNEX 1 A OF THE WT O AGREEMENT (G/L/223/Rev.2).........3
III. REPORT OF THE WORKING PARTY ON PRESHIPMENT INSPECTION
(G/L/300)...................................................................................................................... ..........3
IV. FREE TRADE AGREEMEN TS..........................................................................................4
A. F REE TRADE AGREEMENT BETWEEN  CROATIA AND SLOVENIA (WT/REG55/N/1 AND
WT/REG55/1).................................................................................................................... .....4
B. F REE TRADE AGREEMENT  BETWEEN ESTONIA AND THE FAROE ISLANDS
(GOVERNMENT OF DENMARK ) (WT/REG64/N/1 AND WT/REG64/1) ..................................4
C. F REE TRADE AGREEMENT BETWEEN ISRAEL AND POLAND (WT/REG65/N/1 AND
WT/REG65/1).................................................................................................................... .....5
D. F REE TRADE AGREEMENT BETWEEN ISRAEL AND SLOVENIA (WT/REG66/N/1 AND
WT/REG66/1).................................................................................................................... .....5
E. F REE TRADE AGREEMENT BETWEEN TURKEY  AND THE CZECH REPUBLIC
(WT/REG67/N/1 AND WT/REG67/1) ....................................................................................5G/C/M/38
Page 2
F. F REE TRADE AGREEMENT BETWEEN TURKEY AND THE SLOVAK REPUBLIC
(WT/REG68/N/1 AND WT/REG68/1) ....................................................................................6
G. F REE TRADE AGREEMENT BETWEEN TURKEY AND ESTONIA (WT/REG70/N/1 AND
WT/REG70/1).................................................................................................................... .....6
H. E URO-MEDITERRANEAN AGREEMENT BETWEEN THE EUROPEAN COMMUNITIES AND
TUNISIA (WT/REG69/N/1 AND WT/REG69/1)......................................................................6
I. C ENTRAL EUROPEAN FREE TRADE AGREEMENT – ACCESSION OF THE REPUBLIC OF
BULGARIA (WT/REG11/N/5 AND WT/REG11/10)................................................................7
V. MARKET ACCESS MATTERS .........................................................................................7
A. C OMMITTEE ON MARKET ACCESS ..........................................................................................7
B. H ARMONIZED SYSTEM – REQUESTS FOR EXTENSIONS OF WAIVERS .....................................8
C. Z AMBIA - RENEGOTIATION OF SCHEDULE  XXVIII ................................................................9
D. D ECISION ON THE INTRODUCTION OF HARMONIZED SYSTEM CHANGES INTO WTO
SCHEDULES OF TARIFF CONCESSIONS ON 1 JANUARY  1996 ..................................................9
VI. APPOINTMENT OF OFFICERS FOR SUBSIDIARY BODIES OF THE
COUNCI L........................................................................................................................ ....10
VII. ELECTION OF CHAIRPERSON OF THE COUNCIL FOR TRADE IN
GOODS.......................................................................................................................... ......11
VIII. OTHER BUSINESS............................................................................................................ 11
The meeting was suspended on 25 March 1999 and items 6 and 7 were considered by the
Council at its resumed meeting on 30 March 1999.
I. HARMONIZATION WORK PROGRAMME PROVIDED FOR IN PART IV OF THE
AGREEMENT ON RULES OF ORIGIN;  PROGRESS REPORT OF THE
COMMITTEE ON RULES OF ORIGIN (G/RO/33)
1.1 In presenting the report, the Chairman of the Committee, Mr R. Wells, noted that one of  the
objectives of the Agreement on Rules of Origin was to harmonize non-preferential rules of origin.
The Harmonization Work Programme, which was launched in July 1995, was scheduled for
completion, pursuant to Article 9.2(a) of the Agreement, within three years of its initiation, i.e. by
July 1998. However, while the Committee on Rules of Origin and the Technical Committee on Rulesof Origin made substantial progress during this three-year period, the work, due to the complexity of
issues, had not been completed as scheduled.
1.2 While recognizing that the Committee was mandated to complete the Harmonization Work
Programme within three years of its initiation and the importance of concluding its Work Programmeforthwith so as to provide more certainty in the conduct of world trade and to ensure that rules of
origin did not themselves create restrictive, distorti ng or disruptive effects on international trade, the
Council for Trade in Goods and the General Counc il, in July 1998, approved the recommendations ofG/C/M/38
Page 3
the Committee that: (i) it, in cooperation with th e Technical Committee, should continue the work
identified in Articles 9.2(c) and 9.3 of the Agreement;  (ii) Members commit themselves to make their
best endeavours to complete the Harmonization Work Programme by November 1999; (iii) the
Technical Committee should  submit the final result of its work to the Committee by the end of
May 1999; and (iv) the Committee should report to the Council for Trade in Goods on the progress of
work in February, June and October 1999.
1.3 Since its meeting in July 1998, the Committee ha d held three formal meetings, in October and
November 1998 and February 1999, and endorsed about 270 Basket 1 Decisions, i.e. the
product-specific rules of origin on which consensus had been reached by the Technical Committee.
The Committee confirmed that these basket 1 items should not be reopened at the level of the
Committee, keeping in mind however that, in accord ance with Article 9.3(b) of the Agreement, the
Committee would finally consider the results of the Harmonization Work Programme in terms of theiroverall coherence.  The total number of product-specific rules submitted by the Technical Committee
and endorsed by the Committee since the start of the Harmonization Work Programme amounted now
to about 1750 at the level of HS subheadings (the total number of HS subheadings is 5113).
1.4 Following the future work programme ag reed in July 1998, the Technical Committee
discussed the overall architecture of the harmonized rules of origin at its two sessions in October and
December 1998.  Measurable progress had been made, particularly in respect of the general rules.
Nevertheless, the Technical Committee was unable to complete the work, as scheduled.  The next
progress report would be made in June 1999.
1.5 The representative of India expressed concern about the lack of progress being made on some
of the issues and took the view that there would be a lack of credibility if the deadline of
November 1999 was allowed to slip.
1.6 The Council took note of the report and of the statement.
II. STATUS OF NOTIFICATIONS UNDER THE PROVISIONS OF THE AGREEMENT
IN ANNEX 1 A OF THE WTO AGREEMENT (G/L/223/REV.2)
2.1 The Chairman stated that as indicated in the cover page to document G/L/223/Rev.1, the
Council had adopted, at its meeting of 15 October 1996, a recommendation by the Working Group on
Notification Obligations and Procedures to maintain on an ongoing basis the comprehensive listing of
notification obligations under the provisions of Ag reements in Annex 1A of the WTO Agreement and
the compliance therewith.  It was also agreed to update and circulate this listing semi-annually.   The
fifth  update was contained in document G/L/223/Rev.2 and included all notifications made up to  and
on 31 December 1998.
2.2 The Council took note of the informati on provided in document G/L/223/Rev.2
III. REPORT OF THE WORKING PARTY ON PRESHIPMENT INSP ECTION (G/L/300)
3.1 In presenting the report, the Chairman noted that the Working Party on Preshipment
Inspection was established by the General Council at its meeting of 7, 8 and 13 November 1996, “to
conduct the review provided for under Article 6 of the Agreement on Preshipment Inspection and to
report to the General Council through the Counc il for Trade in Goods in December 1997”. The
Working Party had presented its report (G/L/214) to the General Council at its meeting in December
1997.  The General Council had adopted the report, thereby agreeing, based on the recommendations
made by the Working Party, that the life of the Working Party be extended until the end of 1998.G/C/M/38
Page 4
3.2 During 1998, the exchange of views had focused on seven issues contained in the 1997 report
as well as on the relationship between PSI and trade facilitation and technical assistance.  The
Working Party submitted its report to the General Council (G/L/273), through the CTG, in
December 1998, which recommended that its life be extended until 31 March 1999 in order to
conclude its work.  The work had been concluded and the final report of the Working Party containingits further recommendations was contained in document G/L/300.  In conclusion, the Chairman
proposed that the Council take note of the report and forward
 the report to the General Council for
adoption.
3.3 It was so agreed.
IV. FREE TRADE AGREEMENTS
A. FREE TRADE AGREEMENT BETWEEN  CROATIA AND SLOVENIA (WT/REG55/N/1 AND
WT/REG55/1)
4.1 The Chairman drew  attention to the notif ication from Slovenia circulated in document
WT/REG55/N/1.  The text of the Agreement ha d been circulated in document WT/REG55/1.
4.2 The Chairman proposed that the Committee on Regional Trade Agreements carry out the
examination of the Agreement in accordance with the following terms of reference:
"to examine, in light of the relevant provis ions of the GATT 1994, the Free Trade Agreement
between Croatia and Slovenia and to submit a report to the Council for Trade in Goods".
4.3 It was understood that the understanding read out  by the Chairman of the Council for Trade in
Goods under item 7 of the Agenda of the meeting of the Council on 20 February 1995, as contained in
document WT/REG3/1, would apply mutatis mutandis  to the examination.  It was also understood that,
during the examination, due account would be taken of  the intrinsic differences between customs unions
and free-trade areas.
4.4 The Council so agreed.
B. FREE TRADE AGREEMENT  BETWEEN ESTONIA AND THE FAROE ISLANDS (GOVERNMENT OF
DENMARK ) (WT/REG64/N/1 AND WT/REG64/1)
4.5 The Chairman drew  attention to the notification from the parties circulated in document
WT/REG64/N/1.  The text of the Agreement ha d been circulated in document WT/REG64/1.
4.6 The Chairman proposed that the Committee on Regional Trade Agreements carry out the
examination of the Agreement in accordance with the following terms of reference:
"to examine, in light of the relevant provis ions of the GATT 1994, the Free Trade Agreement
between Estonia and the Faroe Islands  and to submit a report to the Council for Trade in
Goods".
4.7 It was understood that the understanding read out  by the Chairman of the Council for Trade in
Goods under item 7 of the Agenda of the meeting of the Council on 20 February 1995, as contained in
document WT/REG3/1, would apply mutatis mutandis  to the examination.  It was also understood that,
during the examination, due account would be taken of  the intrinsic differences between customs unions
and free-trade areas.G/C/M/38
Page 5
4.8 The Council so agreed.
C. FREE TRADE AGREEMENT BETWEEN ISRAEL AND POLAND (WT/REG65/N/1 AND
WT/REG65/1)
4.9 The Chairman drew  attention to the notification from the parties circulated in document
WT/REG65/N/1.  The text of the Agreement had been circulated in document WT/REG65/1.  The
Council took note of the statement of the representative of Poland   that the Agreement was awaiting its
entry into force and could therefore not yet be subject to examination.
D. FREE TRADE AGREEMENT BETWEEN ISRAEL AND SLOVENIA (WT/REG66/N/1 AND
WT/REG66/1)
4.10 The Chairman drew  attention to the notifi cation from the parties circulated in document
WT/REG66/N/1.  The text of the Agreement ha d been circulated in document WT/REG66/1.
4.11 The Chairman proposed that the Committee on Regional Trade Agreements carry out the
examination of the Agreement in accordance with the following terms of reference:
"to examine, in light of the relevant provis ions of the GATT 1994, the Free Trade Agreement
between Israel and Slovenia and to submit a report to the Council for Trade in Goods".
4.12 It was understood that the understanding read out  by the Chairman of the Council for Trade in
Goods under item 7 of the Agenda of the meeting of the Council on 20 February 1995, as contained in
document WT/REG3/1, would apply mutatis mutandis  to the examination.  It was also understood that,
during the examination, due account would be taken of  the intrinsic differences between customs unions
and free-trade areas.
4.13 The Council so agreed.
E. FREE TRADE AGREEMENT BETWEEN TURKEY  AND THE CZECH REPUBLIC (WT/REG67/N/1
AND WT/REG67/1)
4.14 The Chairman drew  attention to the notifi cation from the parties circulated in document
WT/REG67/N/1.  The text of the Agreement ha d been circulated in document WT/REG67/1.
4.15 The Chairman proposed that the Committee on Regional Trade Agreements carry out the
examination of the Agreement in accordance with the following terms of reference:
"to examine, in light of the relevant provis ions of the GATT 1994, the Free Trade Agreement
between Turkey and the Czech Republic and to  submit a report to the Council for Trade in
Goods".
4.16 It was understood that the understanding read out  by the Chairman of the Council for Trade in
Goods under item 7 of the Agenda of the meeting of the Council on 20 February 1995, as contained in
document WT/REG3/1, would apply mutatis mutandis  to the examination.  It was also understood that,
during the examination, due account would be taken of  the intrinsic differences between customs unions
and free-trade areas.
4.17 The Council so agreed.G/C/M/38
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F. FREE TRADE AGREEMENT BETWEEN TURKEY AND THE SLOVAK REPUBLIC (WT/REG68/N/1
AND WT/REG68/1)
4.18 The Chairman drew  attention to the notifi cation from the parties  circulated in document
WT/REG68/N/1.  The text of the Agreement ha d been circulated in document WT/REG68/1.
4.19 The Chairman proposed that the Committee on Regional Trade Agreements carry out the
examination of the Agreement in accordance with the following terms of reference:
"to examine, in light of the relevant provis ions of the GATT 1994, the Free Trade Agreement
between Turkey and the Slovak Republic and to submit a report to the Council for Trade in
Goods".
4.20 It was understood that the understanding read out  by the Chairman of the Council for Trade in
Goods under item 7 of the Agenda of the meeting of the Council on 20 February 1995, as contained in
document WT/REG3/1, would apply mutatis mutandis  to the examination.  It was also understood that,
during the examination, due account would be taken of  the intrinsic differences between customs unions
and free-trade areas.
4.21 The Council so agreed.
G. FREE TRADE AGREEMENT BETWEEN TURKEY AND ESTONIA (WT/REG70/N/1 AND
WT/REG70/1)
4.22 The Chairman drew  attention to the notifi cation from the parties circulated in document
WT/REG70/N/1.  The text of the Agreement ha d been circulated in document WT/REG70/1.
4.23 The Chairman proposed that the Committee on Regional Trade Agreements carry out the
examination of the Agreement in accordance with the following terms of reference:
"to examine, in light of the relevant prov isions of the GATT 1994, the Free Trade Agreement
between Turkey and Estonia and to submit a report to the Council for Trade in Goods".
4.24 It was understood that the understanding read out  by the Chairman of the Council for Trade in
Goods under item 7 of the Agenda of the meeting of the Council on 20 February 1995, as contained in
document WT/REG3/1, would apply mutatis mutandis  to the examination.  It was also understood that,
during the examination, due account would be taken of  the intrinsic differences between customs unions
and free-trade areas.
4.25 The Council so agreed.
H. EURO-MEDITERRANEAN AGREEMENT BETWEEN THE EUROPEAN COMMUNITIES AND TUNISIA
(WT/REG69/N/1 AND WT/REG69/1)
4.26 The Chairman drew  attention to the notifi cation from the parties circulated in document
WT/REG69/N/1.  The text of the Agreement ha d been circulated in document WT/REG69/1.
4.27 The Chairman proposed that the Committee on Regional Trade Agreements carry out the
examination of the Agreement in accordance with the following terms of reference:
"to examine, in light of the relevant provis ions of the GATT 1994, the Free Trade Agreement
between the European Communities and Tunisia  and to submit a report to the Council for
Trade in Goods".G/C/M/38
Page 7
4.28 It was understood that the understanding read out  by the Chairman of the Council for Trade in
Goods under item 7 of the Agenda of the meeting of the Council on 20 February 1995, as contained in
document WT/REG3/1, would apply mutatis mutandis  to the examination.  It was also understood that,
during the examination, due account would be taken of  the intrinsic differences between customs unions
and free-trade areas.
4.29 The Council so agreed.
I. CENTRAL EUROPEAN FREE TRADE AGREEMENT – A CCESSION OF THE REPUBLIC OF
BULGARIA (WT/REG11/N/5 AND WT/REG11/10)
4.30 The Chairman drew  attention to the notifi cation from the parties  circulated in document
WT/REG11/N/5.  The text of the Agreement ha d been circulated in document WT/REG11/10.
4.31 The Chairman proposed that the Committee on Regional Trade Agreements carry out the
examination of the Agreement in accordance with the following terms of reference:
"to examine, in light of the relevant prov isions of the GATT 1994, the Agreement on Accession
of the Republic of Bulgaria to the Central European Free Trade Agreement and to submit a
report to the Council for Trade in Goods".
4.32 It was understood that the understanding read out  by the Chairman of the Council for Trade in
Goods under item 7 of the Agenda of the meeting of the Council on 20 February 1995, as contained in
document WT/REG3/1, would apply mutatis mutandis  to the examination.  It was also understood that,
during the examination, due account would be taken of  the intrinsic differences between customs unions
and free-trade areas.  For practical reasons the ex amination of this Agreement would be carried out
jointly with the examination of the Central Europ ean Free Trade Agreement itself, which was currently
underway in the Committee on Regional Trade Agreements.
4.33 The Council so agreed.
V. MARKET ACCESS MATTERS
A. COMMITTEE ON MARKET ACCESS
- Periodic Report of the Committee (G/MA/61)
5.1 On behalf of Mr. Lundby, Chairman of the Committee on Market Access, the Chairman
introduced the periodic report of the Committee, contained in document G/MA/61. He said that in
accordance with the agreed procedures of the Committee on Market Access regarding the transmission
of factual data related to requests for extension of waivers, a draft report to this Council had been
circulated in document G/MA/SPEC/10 and was examined by the Market Access Committee at its
meeting of 11 March 1999.  The report was revised taking into account the discussions that took placeat that meeting and issued as document G/MA/61. The report summarized the activities of the
Committee since its last report to the Council, made in October of last year and reflected in Annexes I
and II the reasons why certain Members whose waivers expired on 30 April 1999 had requested a
further extension of their waivers or had requested to be covered by a waiver.  This was  mainly to
conclude ongoing consultations or to finalize the preparation of the required documentation.  To date,out of the 41 Members under waivers (37 in relation to HS96 changes and four with regard to the
transposition or renegotiation of their schedules), only the submissions of five Members had been
finalized. Eight Members had yet to submit the required documentation and the remaining Members
had to finalize pending issues.  In this connection, the Chairman encouraged all the delegations
concerned to pursue their efforts in order to settle any outstanding issues.G/C/M/38
Page 8
5.2  The report also provided a summary of the activities carried out in the context of the
modalities and operation of the Integrated Data Base (IDB) and indicated that as of 3 March 1999,
fifty-two Members and three acceding countries had provided IDB submissions. Information had also
been given on the status of processing of IDB submissions, the status of software development and the
technical assistance activities that had been carried out thus far by the Secretariat.  The report also
reflected the open-ended consultations held by the Chairman of the Market Access Committee on thematter of submission to and dissemination of the IDB.  Additionally, the report summarized the
information given by the Secretariat on the status of the Loose-Leaf Schedule Project concerning the
creation  of a consolidated tariff schedules database.
5.3 The Council took note of the report.
B. HARMONIZED SYSTEM – REQUESTS FOR EXTENSIONS OF WAIVERS
5.4 The Chairman drew attention to the communications from Bangladesh, Nicaragua and
Sri Lanka, containing requests for extension of waivers which were going to expire on 30 April  1999.
These requests for waiver extensions had been made in the context of the transposition of these
Members' schedules into the Harmonized System, and in accordance with paragraph 1 of the
Understanding in respect of Waivers of Obligations under the General Agreement on Tariffs andTrade 1994.
5.5 These requests for waivers were before the Council for Trade in Goods for its consideration
pursuant to Article IX of the WTO Agreement.  Draft decisions had been circulated to assist the
Council in its consideration of these requests.
(a) Bangladesh (G/L/298, G/C/W/142)
5.6 The Chairman stated that the request for a waiver extension from Bangladesh had been
circulated in document G/L/298 and a dr aft decision in document G/C/W/142.
5.7 The Council approved the extension of the waiver granted to Bangladesh until
31 October 1999, and recommended that the draft decision be forwarded to the General Council for
adoption.
(b) Nicaragua (G/L/297, G/C/W/141)
5.8 The Chairman stated that the request for a waiver extension from Nicaragua had been
circulated in document G/L/297 and a dr aft decision in document G/C/W/141).
5.9 The representative of Nicaragua, in clarifying  paragraph 5 of G/C/W/141, said that it should
read as follows: "Noting that one Member has lifted its reservation and that consultations are in
progress with the other Member which has reserved its right to enter into negotiations in accordance
with Article XXVIII".   The representative of Canada  said that since Canada was the other Member
in question, his delegation wanted to indicate its full support  for the proposed amendment. It was alsohis hope and intention to find a solution before the end of April so that the extension would not be
required.
5.10 The Council approved the extension of the waiver granted to Nicaragua until
31 October 1999, and recommended that the amended draft decision to be contained in
G/C/W/141/Rev.1 be forwarded to the General Council for adoption.G/C/M/38
Page 9
(c) Sri Lanka (G/L/296, G/C/W/140)
5.11 The Chairman stated that the request for a waiver extension from Sri Lanka had been
circulated in document G/L/296 and a dr aft decision in document G/C/W/140.
5.12 The Council approved the extension of the waiver granted to Sri Lanka until
31 October 1999, and recommended that the draft decision be forwarded to the General Council for
adoption.
C. ZAMBIA - RENEGOTIATION OF SCHEDULE  XXVIII
- Request for an extension of the waiver (G/L/295, G/C/W/139)
5.13 The Chairman drew attention to the request by Zambia circulated in document G/L/295 for an
extension of a waiver granted to it in connection with the renegotiation of its schedule, and to a draft
decision in document G/C/W/139).
5.14 The Council approved the extension of the waiver granted to Zambia until 31 October 1999,
and recommended that the draft decision be forwarded to the General Council for adoption.
D. DECISION ON THE INTRODUCTION OF HARMONIZED SYSTEM CHANGES INTO WTO
SCHEDULES OF TARIFF CONCESSIONS ON 1 JANUARY  1996
- Extension of the Time-Limit (G/MA/W/19/Rev.1)
5.15 The Chairman recalled that the General Council had adopted successive decisions, thereby
suspending the application of the provisions of Article II of GATT 1994 until 30 April 1999 for the
purpose of enabling Members to implement the 1996 recommended amendments to the Harmonized
System nomenclature.  He drew the Council's attention to the draft decision, contained in documentG/MA/W/19/Rev.1 which now proposed to extend this time-limit until   31 October  1999.  The annex
to this draft decision listed Members who had requested an extension of their waivers.  The purpose
was to give Members more time to proceed with consultations or possible Article XXVIII
negotiations.
5.16 The representative of  Canada stated that on 22 March 1999 Canada had submitted a
communication to the WTO setting out five technical changes to their original HS 96 modifications.
As a result, one Member was lifting its reservation against Canada's HS 96 modifications, thus
making it possible to delete Canada from the annex  in terms of countries seeking an extension.
5.17 The representative of Japan noted that for some time only a few Members had completed the
process for modifications and rectifications to schedules in view of introducing HS96 changes. Now,
however, ten Members had finished the whole process and several more Members were only waiting
for completion of procedures for the issuing of certifications. Japan welcomed this significant
progress and wanted to encourage other Members to actively conduct consultations in order to make
this waiver extension the last.
5.18 The Council took note of the statements, approved the extension of the waiver until
31 October 1999, and recommended that the draft decision, with the amendment proposed by Canada,
be transmitted to the General Council for adoption.G/C/M/38
Page 10
VI. APPOINTMENT OF OFFICERS FOR SUBSIDIARY BODIES OF THE COUNCIL
6.1 The Chairman stated that the "Guidelines fo r the Appointment of Officers to WTO bodies"
contained in document WT/L/31 and approved by the General Council on 31 January 1995, provided
that the Chairperson of the Council for Trade in Goods would conduct consultations on the
appointment of the chairpersons of bodies to Group 6(A) which comprised the subsidiary bodies of
the Council for Trade in Goods.  Accordingly, he had conducted consultations and had a slate of
names to recommend to the Council as Chairpersons of the following bodies.:
Committee on Agriculture H.E. Mr. Nestor Osorio
(Colombia)
Committee on Anti-Dumping Practices Mr. Milan Hovorka
(Czech Republic)
Committee on Customs Valuation Mr. Edward Brown
(United Kingdom)
Committee on Import Licensing Ms. Marie Gosset
(Côte d'Ivoire)
Committee on Rules of Origin Mr. Sandy Moroz
(Canada)
Committee on Market Access Mr. Pedro da Costa e Silva
(Brazil)
Committee on Safeguards Mr. Hamish McCormick
(Australia)
Committee on Sanitary and Phytosanitary Mr. Attie Swart
  Measures (South Africa)
Committee on Subsidies and Mr. Jan Söderberg
  Countervailing Measures (Sweden)
Committee on Technical Barriers to Trade Mr. Mohan Kumar
(India)
Committee on Trade Related Investment Measures Mr. Leo Palma
(Philippines)
Working Party on State Trading Enterprises Mr. Bernard T. Kutten
(The Netherlands)
6.2 The Council so agreed.
6.3 The Chairman pointed out that while all the other subsidiary bodies of the Council had
provisions in the respective agreement or in their rules of procedure requiring them to elect
chairpersons, the Working Parties did not have any procedural rules and did not have provisions on
election of chairpersons.  As a result, in the case of the Working Party on State Trading Enterprises,
he proposed that the Council appoint the nominated Chairperson.G/C/M/38
Page 11
6.4 The Council so agreed and appointed  Mr. Kutten as Chairman of the Working Party on State
Trading Enterprises.
6.5 The Chairman stated furthermore that he had not addressed the question of
Vice-Chairpersons.  It was his understanding that it would be for the subsidiary bodies to decide if
they needed a Vice-Chairperson in cases where the option existed under the respective Agreementand/or rules of procedure, and for the respective Chairperson to hold the necessary consultations. He
proposed to proceed on that understanding.
6.6 The Council took note of the statement and agreed
 to proceed on that understanding.
VII. ELECTION OF CHAIRPERSON OF THE COUNCIL FOR TRADE IN GOODS
7.1 The Chairman stated that the Chairman of the General Council had carried out informal
consultations on a slate of names for appointment as chairpersons to the different WTO standing
bodies in accordance with the established Guidelines for Appointment of Officers.  These proposed
nominations were approved by the General Council at its meeting on 16 February 1999.
7.2 On the basis of the understandings reached, he proposed that the Council elect
H.E. Ambassador R. Farrell (New Zealand) as Chairman of the Council by acclamation.
7.3 The Council unanimously elected Ambassador Farrell  Chairman for the Council for Trade in
Goods for 1999.
VIII.  OTHER BUSINESS
8.1 The representative of Chile declared that as a contribution to the transparency of the WTO,
Chile wished to inform Members that through Law No. 19.589 it had provided for the unilateral
deepening of its trade liberalization that was not subject to bindings under the WTO by uniformly and
progressively reducing the general and single tariff rate between 1999 and 2003.  The general tariff
rate, which was 11 per cent ad valorem , was being modified according to the following timetable: as
from 1 January 1999, 10 per cent ad valorem ;  as from 1 January 2000, 9 per cent ad valorem ;  as
from 1 January 2001, 8 per cent ad valorem ;  as from 1 January 2002, 7 per cent ad valorem ;  and as
from 1 January 2003, 6 per cent ad valorem .
8.2 The further opening up that this Law represented was consistent with the long-term trade
liberalization policy of the Government of Chile, th e priority of which was to promote sustained and
shared growth through the proper allocation of res ources.  This tariff reduction would increase the
country's competitiveness, deepen the process of international economic integration and enable Chile
to safeguard its basic economic and fiscal balances as an efficient means of boosting development.
The decrease in financial resources that this initiative implied would be entirely compensated in order
to maintain the level of tax revenue:  the tariff, which was an indirect tax, would be offset by an
increase in other indirect taxes.  In addition to promoting the country's competitiveness in all of its
productive sectors, this initiative would achieve an important objective of the WTO:  increasing
market access through the substantial reduction of an important barrier to trade, the customs tariff."
8.3 The representative of Hungary noted that since the last meeting of the CTG Hungary had
concluded free trade agreements with the Republics of Estonia and Lithuania which would be
officially notified to the CTG after the ratification procedures had been terminated.
8.4 The representative of Turkey informed the Council that Turkey had concluded a free trade
agreement with Bulgaria, in conformity with the provisions of Article XXIV of GATT 1994, which
came into effect on 1 January 1999. An appropriate  notification would be made.G/C/M/38
Page 12
8.5 The Chairman drew the Council's attention  to the meeting of 10-11 March 1999 of the
Committee on Sanitary and Phytosanitary Measures at which it adopted a report on its review of the
operation and implementation of the Agreement on the Application of Sanitary and Phytosanitary
Measures  as provided for in Article 12.7 of  the SPS Agreement. The report was contained in
document G/SPS/12 of 11 March 1999.   The report recognized the important contribution that the
SPS Agreement had made to facilitating international trade but concerns regarding theimplementation of some provisions were identified and recommendations made to address these
difficulties. In particular, the Committee agreed on new recommended notification procedures which
are contained in the annex to the report.
8.6 He then drew the Council's attention the draf t decision on a waiver for preferential tariff
treatment for least-developed countries contained in document G/C/W/135 dated 9 February 1999.
Such a waiver request needed to be transmitted to the Council for Trade in Goods for consideration.The matter had come to the Chairman's attention after the agenda for this meeting had closed but, as it
could be considered a significant contribution by the WTO to improving market access for
least-developed countries, he proposed that the CTG should agree to recommend to the General
Council for adoption the draft decision as soon as possible.  He therefore suggested that the CTG hold
a special meeting for this purpose before the next meeting of the General Council which wasscheduled for 14 April 1999.
8.7 After the special meeting,  the next meeting of the Council was  scheduled to take place on
Friday, 2 July 1999.  The agenda would  close by close-of-business on Friday, 18 June 1999.
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