RESTRICTED
WORLD TRADE G/C/W/86
18September 1997
ORGANIZATION(97-3722)
Council forTrade inGoods
6October 1997
HUNGARY -AGREEMENT ONAGRICULTURE
Draft Decision onWaiver
Taking noteoftherequest1fromtheGovernment ofHungary forawaiver fromitsobligations
under paragraph 3ofArticle 3,Article 8andparagraph 2ofArticle 9oftheAgreement onAgriculture;
Taking noteoftheexceptional circumstances citedbytheGovernment ofHungary initsrequest
withregard toSection IIofPartIVofitsSchedule totheGATT 1994asprovided forintheAgreement
onAgriculture, withrespect totheprovision ofexport subsidies onagricultural products;
Having regard totheGuiding Principles tobefollowed inconsidering applications forwaivers
adopted on1November 19562andparagraphs 3and4ofArticle IXoftheMarrakesh Agreement
Establishing theWorld Trade Organization ("WTO Agreement");
Members,actingpursuanttotheprovisionsofparagraph3ofArticleIXoftheWTOAgreement,
Decide that:
1. Subject totheterms andconditions setouthereunder, theprovisions ofArticles 3.3,8and
9.2oftheAgreement onAgriculture shallbewaived until31December 2001totheextent necessary
topermit theGovernment ofHungary toprovide export subsidies listed inparagraph 1ofArticle 9
oftheAgreement onAgriculture:
(a) inrespect ofagricultural products specified intheAnnexes tothisdecision, and
(b) notinexcess ofthebudgetary outlay andquantity commitment levels
specified intheAnnexes tothisdecision.
2. TheGovernment ofHungary shallnotuseinthewaiver period export subsidies aslisted in
Article 9.1oftheAgreement onAgriculture totheregion ofitsnon-traditional markets foragricultural
products notcovered byPartIVofitsSchedule totheGATT 1994 where subsidized exports tothis
region didnottakeplace intheperiod of1994-1996 (asspecified inAnnex D).
1G/L/183.
2L/532, BISD 5S/25.G/C/W/86
Page2
3. TheGovernment ofHungary shallsubmit annual reports, ontheanniversary dateofthegranting
ofthewaiver, ontheusethathasbeenmade ofthiswaiver.3Thedataonutilization forthose products
specified intheAnnexes tothisdecision shall beprovided onaproduct-by-product basis inthe
nomenclature oftheHarmonized System atthelevel atwhich thebudgetary outlay orquantity
commitments arespecified intheAnnexes tothisdecision. Inaddition, theGovernment ofHungary
shallpromptly notify theGeneral Council oftheintroduction of,oranychanges in,anyHungarian
measure thatprovides forexport subsidies aslisted inArticle 9.1oftheAgreement onAgriculture
inrespect ofagricultural products specified intheAnnexes tothisdecision ifthenewmeasure orchange
intheexisting measure (a)increases thequantity ofanagricultural product orgroup ofproducts in
respect ofwhich suchexport subsidies maybegranted inthatyearor(b)increases thelevel of
expenditure forsuchsubsidies thatmaybeallocated orincurred inthatyearinrespect oftheagricultural
product orgroup ofproducts.
4. (a) Thiswaiver doesnotaffect Members 'rights under thedispute settlement provisions
ofthecovered agreements, including Article 19oftheAgreement onAgriculture, aselaborated and
applied bytheUnderstanding onRules andProcedures Governing theSettlement ofDisputes ("Dispute
Settlement Understanding").
(b) AnyMemberconsideringthatabenefitaccruingtoitundertheAgreementonAgriculture
isbeing nullified orimpaired asaresult ofthefailure oftheGovernment ofHungary toobserve the
terms orconditions ofthiswaiver mayinvoke theprovisions ofArticle 19oftheAgreement on
Agriculture aselaborated andapplied bytheDispute Settlement Understanding. TheGovernment of
Hungary shallagree, attherequest ofthecomplaining party, thattime-periods applicable under the
Dispute Settlement Understanding fortheconduct ofsuchadispute behalfthetimeprescribed therein.
Ifapanel request issubmitted insuchadispute forconsideration bytheDispute Settlement Body,
thentheGovernment ofHungary shallconsent totheestablishment ofapanel attheDispute Settlement
Body meeting atwhich therequest firstappears asanitemontheDispute Settlement Body'sagenda.
(c) AnyMemberconsideringthatabenefitaccruingtoitundertheAgreementonAgriculture
isbeing nullified orimpaired asaresult oftheapplication ofameasure consistent withtheterms and
conditions ofthewaiver mayinvoke theprovisions ofArticle 19oftheAgreement onAgriculture
aselaborated andapplied bytheDispute Settlement Understanding.
(Annexes Attached)
3Thisreporting requirement isadditional to,andinnowayaffects, Hungary 'sexisting obligation, pursuant toArticle 18
oftheAgreement onAgriculture, toprovide theCommittee onAgriculture withnotifications onimplementation ofits
commitments under thatAgreement.ANNEX A1G/C/W/86
Page3Export subsidies -Quantity commitment
Description Quantity levels asof1January (tons)
Baselevel 1997 1998 1999 2000 2001
Wheat 3,079,800 2,756,421 2,648,628 2,540,835 2,433,042 1,141,000
Corn 595,715 533,165 512,315 491,465 470,615 164,000
Other cereals 40,108 35,897 34,493 33,089 31,685 15,843
Oilseeds 87,000 81,000 77,000 74,000 71,000 71,000
Sunflower oil 179,000 166,000 159,000 153,000 146,000 146,000
Sugar 144,000 99,000 76,000 54,000 32,000 32,000
Dairy products 17,062 15,270 14,673 14,076 13,479 7,739
Beef 103,000 95,000 91,000 88,000 83,000 83,000
Pig 153,000 142,000 137,000 131,000 126,000 126,000
Sheep 31,000 29,000 28,000 26,000 25,000 25,000
Poultry 136,000 126,000 121,000 116,000 111,000 111,000
Other animal and
animal products21,587 19,320 18,565 17,809 17,054 0
Fruits 394,005 352,634 338,844 325,054 311,264 297,632
Vegetables 414,379 370,869 356,366 341,863 327,359 167,180
Wine, beverages 499,000 463,000 445,000 427,000 408,000 408,000
Other products 40,247 36,021 34,612 33,204 31,795 0ANNEX A2G/C/W/86
Page4Export subsidies -Budgetary outlay
Description Budgetary outlay levels asof1January (1,000 HUF)
Baselevel 1997 1998 1999 2000 2001
Wheat 5,169,805 4,239,240 3,929,052 3,618,864 3,308,675 1,315,000
Corn 1,124,259 921,892 854,437 786,981 719,526 148,000
Other cereals 93,135 76,371 70,783 65,195 59,606 29,803
Oilseeds 319,000 278,000 258,000 237,000 217,000 217,000
Sunflower oil 1,076,000 939,000 870,000 801,000 733,000 733,000
Sugar 219,000 191,000 177,000 163,000 149,000 149,000
Dairy products 938,218 769,339 713,046 656,753 600,460 315,730
Beef 2,974,000 2,595,000 2,405,000 2,215,000 2,025,000 2,025,000
Pig 9,179,313 7,527,037 6,976,278 6,425,519 5,874,760 4,840,880
Sheep 931,000 813,000 754,000 693,000 634,000 634,000
Poultry 8,283,601 6,792,553 6,295,537 5,798,521 5,301,505 4,407,752
Other animal and
animal products1,253,158 1,027,590 952,400 877,211 802,021 0
Fruits 6,138,810 5,033,824 4,665,496 4,297,167 3,928,838 2,445,919
Vegetables 8,222,031 6,742,065 6,248,744 5,755,422 5,262,100 2,753,550
Wine, beverages 4,256,872 3,490,635 3,235,223 2,979,810 2,724,398 1,630,699
Other products 812,450 666,209 617,462 568,715 519,968 0G/C/W/86
Page5
ANNEX B
Product coverage ofAnnex A
Description
Wheat 1001, 1101, 1103, 1108, 1902, 1905, 2302
Corn 1005, 1102, 1103, 1108
Other cereals 1002, 1003, 1004, 1007, 1008, 1102, 1901, 1904, 2308
Oilseeds 1204, 1205, 1206, 1207
Sunflower oil 1512
Sugar 1701, 1702, 1806, 2106
Dairy products 0401, 0402, 0404, 0405, 0406
Beef 0102, 0201, 0202, 0206, 0210, 0511, 1602
Pig 0103, 0203, 0206, 0209, 0210, 0504, 1601, 1602
Sheep 0104, 0204, 5101
Poultry 0105, 0207, 0407, 0408, 1602
Other animals and
animal products 0101, 0104, 0106, 0208, 0210, 0409, 0511
Fruits 0807, 0808, 0809, 0810, 0811, 0812, 0813, 2007, 2008, 2009
Vegetables 0702, 0703, 0704, 0705, 0706, 0707, 0708, 0709, 0710, 0711, 0712, 0713,
0904, 2001, 2002, 2003, 2004, 2005, 2006, 2103
Wine, beverages 2201, 2202, 2203, 2204, 2205, 2207, 2208
Other products 0601, 0602, 0603, 0604, 0904, 0909, 0910, 1209, 1211, 1212, 1214, 1403,
1506, 1521, 2102, 2103, 2104, 2105, 2106, 2309G/C/W/86
Page6
ANNEX C4
Volume ceilings
Description HS Tons
Wheat 1001 2,745,900
1101 286,900
1103 27,500
1108 1,000
1902 43,700
1905 6,500
2302 700
Corn 1005 530,000
1102 1,200
1103 27,500
1108 1,000
Other cereals 1002 5,400
1003 1,700
1004 300
1007 2,500
1008 29,600
1102 1,200
1901 100
1904 100
2308 100
Oilseeds 1204 700
1205 9,600
1206 81,000
1207 9,000
Sunflower oil 1512 166,000
Sugar 1701 99,000
1702 500
1806 100
4Commitments referred tointhisAnnex aretobeimplemented from 1January 1998.G/C/W/86
Page7
Description HS Tons
Sugar (cont.) 2106 4,000
Dairy products 0401 1,900
0402 4,300
0404 200
0405 2,700
0406 11,100
0102 63,000
Beef 0201 32,000
0202 3,400
0206 100
0210 12,000
0511 100
1602 38,000
Pig 0103 39,000
0203 103,000
0206 100
0209 100
0210 12,000
0504 100
1602 38,000
Sheep 0104 26,000
0204 3,000
5101 4,900
Poultry 0105 1,200
0207 126,000
0407 2,800
0408 100
1602 38,000
Other animal andanimal products 0101 100
0104 26,000
0106 100
0208 9,000G/C/W/86
Page8
Description HS Tons
Other animal andanimal products
(cont.)0210 12,000
0409 9,750
0511 100
Fruits 0807 49,500
0812 4,300
0813 4,500
2009 220,800
Vegetables 0705 300
0706 7,000
0707 15,700
0708 100
0709 33,400
0711 700
0712 6,700
0713 53,600
0904 5,000
2006 100
2103 5,700
Wine, beverages 2201 100
2202 110,000
2203 13,800
2204 463,000
2205 400
2207 4,200
2208 4,300
Other products 0601 200
0602 4,900
0603 500
0604 300
0904 5,000
0909 2,600
0910 400G/C/W/86
Page9
Description HS Tons
Other products (cont.) 1209 5,000
1211 2,100
1212 100
1214 300
1403 1,900
1506 10,800
1521 200
2102 100
2103 5,700
2104 3,000
2105 100
2106 4,000
2309 900G/C/W/86
Page10
ANNEX D5
Listofproducts referred inparagraph 2ofthisdecision
From wheat 1101, 1103, 1108, 1902, 1905, 2302
From corn 1102, 1103, 1108
From other cereals 1002, 1003, 1004, 1007, 1008, 1102, 1901, 1904, 2308
From oilseeds 1204, 1205, 1207
From sugar 1702, 1806, 2106
From dairy products 0401, 0404, 0405
From beef 0202, 0206
From pig 0206, 0209, 0504
From sheep 5101
From poultry 0407, 0408
From other animal
andanimal products 0104, 0106, 0208
From fruits 0807, 0809, 0810, 0812, 0813
From vegetables 0702, 0703, 0704, 0705, 0707, 0708, 0711, 2002, 2003, 2004, 2103
From wineandbeverages 2201, 2202, 2203, 2205, 2207, 2208
From other products 0601, 0602, 0604, 0910, 1209, 1211, 1212, 1214, 1506, 1521, 2102,
2103, 2104, 2105, 2309
Theregion ofnon-traditional markets referred toinparagraph 2ofthisdecision consists of
thecountries ofNorth andSouth America, thePacific region, EastandSouth EastAsia. Inanyof
theyears 1994-1996 noornegligible (lessthan1percentoftotal) subsidized exports ofthelisted
products tookplace tothisregion.
5Commitments referred tointhisAnnex aretobeimplemented from 1January 1998.