WORLD TRADE
ORGANIZATIONG/L/337
25 October 1999
(99-4631)
REPORT (1999) OF THE COUNCIL FOR TRADE IN GOODS
In accordance with the "Procedures for an Annual Overview of WTO Activities and for
Reporting under the WTO" (WT/L/105), the Council for Trade in Goods is to report each year to theGeneral Council on the activities in the Council as well as in the subsidiary bodies. The reports are tobe "factual in nature, containing an indication of actions and decisions taken, with cross references toreports of subordinate bodies and could follow the model of the GATT 1947 Council reports to theCONTRACTING PARTIES" respectively.
Since the last annual report, the Council for Trade in Goods met on 25 and 30 March,
12 April, 2 July and 15 October1999. The minutes of these meetings are contained in documentsG/C/M/38, 39, 40 and 41 respectively.
The following subject matters which were raised and/or acted upon in the Council are
included in the report:
1. Election of Chairperson for the Counc il for Trade in Good s  (G/C/M/38)..........................3
2. Appointment of Officers for the subsidiary bodies of the Council (G/C/M/38) ..................3
3. Report of the Working Party on Preshipment Inspection (G/C/M/38)................................3
4. Status of Notifications under the Provisions of the Agreements in Annex 1A of
the WTO Agreement (G /C/M/38 and 41) ...............................................................................3
5. Trade Facilitation (paragraph 21 of the Singapore Ministerial Declaration)
(WT/MIN(96)Dec) (G/C/M/40 and 41)....................................................................................4
6. Continuation of the Harmonization Work Programme provided for in Part IV of
the Agreement on Rules of Origin (G/C/M /38 and 40)..........................................................4
7. Periodic Reports of the Committee on Market Access (G/C/M/38, 40 and 41)...................4
8. Waivers under Article IX of the WTO Agreement................................................................4
(a) Harmonized System - Requests for extensions of waivers from Bangladesh,
Nicaragua and Sri Lanka  (G/C/M/38 and 41)............................................................................4
(b) Zambia - Renegotiation of Sche dule LXXVIII (G/C /M/38 and 41)...........................................5
(c) Decision on the Introduction of Harmonized System (HS) Changes into WTO
Schedules of Tariff Concessions on 1 January 1996 - Extension of the time-limit
(G/C/M/38 and 41).............................................................................................................. ........5
(d) Draft decision on waiver for preferential tariff treatment in favour of least-developed
countries (G /C/M/39)........................................................................................................... .......5G/L/337
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(e) Application of the WTO Agreement on Customs Valuation – Request for waiver by
Peru (G/C/M/40)................................................................................................................ .........5
9. Customs Unions and Free-Trade Areas:  regional agreements............................................6
(a) Free Trade Agreement between Cr oatia and Slovenia (G/C/M/38)............................................6
(b) Free Trade Agreement between Estoni a and the Faroe Isla nds (G/C/M /38) ..............................6
(c) Free Trade Agreement between Is rael and Slovenia  (G/C/M/38) ..............................................6
(d) Free Trade Agreement between Turkey  and the Czech Republic (G/C/M/38) ..........................6
(e) Free Trade Agreement between Turkey and the Slovak Republic (G/C/M/38) .........................6
(f) Free Trade Agreement between Tu rkey and Estonia (G/C/M/38)..............................................6
(g) Euro-Mediterranean Agreement between the European Communities and Tunisia
(G/C/M/38) ..................................................................................................................... ............6
(h) Central European Free Trade Agreement – Accession of the Republic of Bulgaria
(G/C/M/38) ..................................................................................................................... ............7
(i) Free Trade Agreement between Israel  and Poland (G/C/M/38 and 41)......................................7
(j) Accession of the Kyrgyz Republic to the Customs Union between the Russian
Federation, Belarus and Ka zakhstan (G /C/M/ 40).......................................................................7
(k) Free Trade Agreement between Tu rkey and Bulgaria  (G/C/M/40)............................................7
(l) Free Trade Agreement between the Kyrgyz Republic and the Russian Federation
(G/C/M/40) ..................................................................................................................... ............7
(m) Free Trade Agreement between the Kyrg yz Republic and Ukraine (G/C/M/40) .......................7
(n) Free Trade Agreement between the Kyrgyz Republic and Uzbekistan (G/C/M/40) ..................7
(o) Free Trade Agreement between the Kyrg yz Republic and Moldova (G/C/M/40)......................8
(p) Agreements between the Republic of Estonia, the Republic of Latvia and the
Republic of Lithuania (G/C/M/40) .............................................................................................8
(q) Agreement between Poland and the Government of Denmark and the Home
Government of the Faro e Islands (G /C/M/ 41)............................................................................8
(r) Free Trade Agreement between Po land and Latvia (G/C/M/41)................................................8
(s) Free Trade Agreement between the Kyrgyz  Republic and Kazakhstan (G/C/W/41) .................8
(t) Free Trade Agreement between Azerbaija n, Armenia, Belarus, Georgia, Moldova,
Kazakhstan, The Russian Federation, Ukraine, Uzbekistan, Tajikistan and the Kyrgyz
Republic (G/C/W/41)............................................................................................................ ......8
(u) Interim Agreement between the EFTA States and the Palestine Liberation
Organization for the benefit of the Palestinian Author ity (G/C/W /41).......................................9
10. Understanding on the int erpretation of Article XVII of GATT 1994 (G/C/W/41) .............9
11. TRIMS Agreement (G/C/W/41)...............................................................................................9
12. Consideration of Annual Reports of subsidiary bodies of the Council for Trade
in Goods G/C/W/41)............................................................................................................. .....9G/L/337
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1. Election of Chairperson for the Council for Trade in Goods  (G/C/M/38)
1.1 At its resumed meeting of 30 March 1999, the Council elected H.E. Ambassador R. Farrell
(New Zealand) as its Chairman for 1999.
2. Appointment of Officers for the subsidiary bodies of the Council (G/C/M/38)
2.1 At its resumed meeting of 30 March 1999, the Council took note of the consensus on the
following persons nominated for el ection as Chairpersons of its  subsidiary bodies: Committee on
Agriculture: H.E. Ambassador Nestor Osorio Londoño (Colombi a);  Committee on Anti-Dumping
Practices:  Mr. Milan Hovorka (Czech Republic);  Committee on Customs Va luation: Mr. Edward
Brown (United Kingdom);  Committ ee on Import Licensing:  Mme Ma rie 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 Sa feguards:  Mr. Hamish McCormick (Australia);
Committee on Sanitary and Phytosanitary Measures:  Mr. Attie Swart (South Africa);  Committee onSubsidies and Countervailing Measures:  Mr. Ja n Söderberg (Sweden);  Committee on Technical
Barriers to Trade:  Mr. Mohan Kumar (India);  Committee on Trade-Related Investment Measures:Mr. Leo Palma (Philippines).   The Council also appointed Mr. Bernard Kutten (the Netherlands) asChairman of the Working Party on State Trading Enterprises (which did not have provisions onelection of Chairpersons).
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2.2 At the same meeting, the Council agreed to proceed on the understanding that in the case ofVice-Chairpersons, it would be for the subsidiary bodies to decide if they needed a Vice-Chairpersonin cases where the option existed under the respective Agreement and/or rules of procedure, and forthe respective Chairperson to hold the necessary consultations.
3. Report of the Working Party on Preshipment Inspection (G/C/M/38)
3.1 At its meeting of 25 March 1999, the Chairman  noted that the Work ing Party had submitted
its report to the General Council (G/L/273), through the CTG, in December 1998, which
recommended that its life be exte nded until 31 Marc h 1999 in order to conclude its work.  The work
had now been concluded and the final report of the Working Party containing its furtherrecommendations was contained in document G/L/300.  The Council took note of the report and
forwarded it to the General Council for adoption.
4. Status of Notifications under the Provisions of the Agreements in Annex 1A of the WTO
Agreement (G/C/M/38 and 41)
4.1 At its meeting of 25 March 1999, the Counc il took note of document G/L/223/Rev.2 which
updated the situation with respect to the status of notifications and Members' compliance therewith
and included notifications made up to and on 31 December 1998.
4.2 At its meeting of 15 October 1999, the Council took note of document G/L/223/Rev.3 which
updated the situation with respect to the status of notifications and Members' compliance therewith
and included notifications made up to and on 30 June 1999.
                                                     
1 The Committee of Participants on the Expansion of Trade in Information Technology Products
elected Mr. Yair Shiran (Israel) as Chairman for 1999.G/L/337
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5. Trade Facilitation (paragraph 21 of th e Singapore Ministerial Declaration)
(WT/MIN(96)Dec) (G/C/M/40 and 41)
5.1 At the Council's meeting on 2 July 1999, the Chairman proposed to delegations to consider
accepting a draft status report on work carried out in four dedicated informal meetings of the CTG.
The report was contained in document G/C/W/156.  As there was no consensus for the adoption of
the report, the Council agreed to the Chairman's proposal that the Council resume the discussion at itsnext meeting.
5.2 At its meeting on 15 October 1999 the Council adopted the draft status report contained in
G/C/W156 following agreement on a number of changes to the text.
6. Continuation of the Harmonization Work Programme provided for in Part IV of the
Agreement on Rules of Origin (G/C/M/38 and 40)
6.1 At its meeting of 25 March 1999, the Council took note of the progress report of the
Committee on Rules of Origin (CRO) (G/RO/33) and of the statement of the CRO Chairman.
6.2 At its meeting of 2 July 1999, the Council took note of the progress report of the CRO
(G/RO/38) and of the statement of the CRO Chairman.
7. Periodic Reports of the Committee on Market Access (G/C/M/38, 40 and 41)
7.1 At its meeting of 25 March 1999 the Council took note of the oral report by the Chairman of
the Market Access Committee on the requests for waiver extensions and/or waivers made in
connection with the transposition or renegotiation of schedules of tariff concessions and/or inconnection with the introduction of harmonized system changes into schedules of tariff concessions on1 January 1996.  The Council was informed of the situation with respect to the operation of theIntegrated Data Base (IDB) and the status of IDB submissions.  The Council also took note of theperiodic report summarizing the activities of the Committee (G/MA/61).
7.2 At its meeting of 2 July 1999, the Council took note of the report of the Chairman of the
Market Access Committee (G/MA/62) that agreement had been reache d on guidelines concerning the
dissemination of the IDB (G/MA/IDB/3 ).
7.3 At its meeting of  15 October 1999 the Council took note of the oral report by the Chairman
of the Market Access Committee on the requests for waiver extens ions and/or waivers made in
connection with the transposition or renegotiation of schedules of tariff concessions and/or inconnection with the introduction of harmonized system changes into schedules of tariff concessions on1 January 1996.  The Council was informed of the situation with respect to the operation of theIntegrated Data Base (IDB) and the status of IDB submissions.  The Council also took note of theperiodic report summarizing the activities of the Committee in 1999 (G/MA/71).
8. Waivers under Article IX of the WTO Agreement
(a) Harmonized System - Requests for extensions of waivers from Bangladesh, Nicaragua and
Sri Lanka  (G/C/M/38 and 41)
8.1 At its meeting of 25 March 1999, the Council considered requests by Bangladesh (G/L/298),
Nicaragua (G/L/297) and Sri Lanka (G/L/296) fo r an extension until 31 October 1999 of waivers
already granted in connection with the transposition of their schedules into the Harmonized System.G/L/337
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The Council approved the texts of the draft decisions on the waiver extensions in G/C/W/142
(Bangladesh),  G/C/W/141 (Nicaragua) and G/C/W/140 (Sri Lanka), and agreed to transmit them tothe General Council for adoption.
8.2 At its meeting of 15 October 1999, the Council considered requests by Bangladesh (G/L/324),
Nicaragua (G/L/320) and Sri Lanka (G/L/321) for an extension until 30 April 2000 of waivers already
granted in connection with the transposition of their schedules into the Harmonized System.   TheCouncil approved the texts of the draft decisions on the waiver extensions in G/C/W/162(Bangladesh),  G/C/W/160 (Nicaragua) and G/C/W/161 (Sri Lanka), and agreed to transmit them tothe General Council for adoption.
(b) Zambia - Renegotiation of Schedule LXXVIII (G/C/M/38 and 41)
8.3 At its meeting of 25 March 1999, the Council considered a request by Zambia (G/L/295) for
an extension, until 31 Oct ober 1999, of the waiver granted to it in connection with the renegotiation of
its schedule.  The Council approved the text of the draft decision (G/C/W/139), and agreed totransmit it to the General Council for adoption.
8.4 At its meeting of 15 October 1999, the Council considered a request by Zambia (G/L/329) for
an extension, until 30 April 2000,  of the waiver gr anted to it in connecti on with the renegotiation of
its schedule.  The Council approved the text of the draft decision (G/C/W/163), and agreed totransmit it to the General Council for adoption.
(c) Decision on the Introduction of Harmonized Sy stem (HS) Changes into WTO Schedules of
Tariff Concessions on 1 January 1996 - Extension of the time-limit (G/C/M/38 and 41)
8.5 At its meeting of 25 March 1999, the Council approved the text of the draft decision
(G/MA/W/19/Rev.1) granting an extension of individual waivers to Members listed in the annex to
that document until 31 October 1999 with an amendment proposed by Canada, and agreed to transmit
it to the General Council for adoption.  These waivers had been requested by those Members finding
it necessary to consult or negotiate under Article XXVIII of GATT 1994 as a result of the HS96
changes introduced in their schedules.
8.6 At its meeting of 15 October 1999, the Council approved the text of the draft decision
(G/MA/W/21/Rev.1) granting an extension of individual waivers to Members listed in the annex to
that document until 30 April 2000 with a revision to include Bolivia in the  list  and agreed to transmit
it to the General Council for adoption.  These waivers had been requested by those Members finding
it necessary to consult or negotiate under Article XXVIII of GATT 1994 as a result of the HS96
changes introduced in their schedules.
(d) Draft decision on waiver for preferential tariff treatment in favour of least-developed
countries (G/C/M/39)
8.7 At its meeting on 12 April 1999, the Council approved the text of the draft decision
(G/C/W/35/Rev.1) and agreed to forwar d it to the General Council for adoption.
(e) Application of the WTO Agreement on Custom s Valuation – Request for waiver by Peru
(G/C/M/40)
8.8 At its meeting of 2 July 1999, the Council considered a request by Peru (G/L/311) for an
extension of the delay until 1 April 2000 in implementing the Customs Valuation Agreement.  TheG/L/337
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Council approved the request and agreed that the draft decision granting this waiver (G/C/W/155) be
transmitted to the General Council for adoption.
9. Customs Unions and Free-Trade Areas:  regional agreements
(a) Free Trade Agreement between Croatia and Slovenia (G/C/M/38)
9.1 At its meeting of 25 March 1999, the Council took note of the communication
(WT/REG55/N/1) from the parties to the Agreement.  The Council adopted the terms of reference
under which the Committee on Regional Trade Agreements should examine this Agreement, which
was circulated in document WT/REG55/1.
(b) Free Trade Agreement between Estonia and the Faroe Islands (G/C/M/38)
9.2 At its meeting of 25 March 1999, the Council took note of the communication
(WT/REG64/N/1) from the parties to the Agreement.  The Council adopted the terms of reference
under which the Committee on Regional Trade Agreements should examine this Agreement, which
was circulated in document WT/REG64/1.
(c) Free Trade Agreement between Israel and Slovenia (G/C/M/38)
9.3 At its meeting of 25 March 1999, the Council took note of the communication
(WT/REG66/N/1) from the parties to the Agreement.  The Council adopted the terms of reference
under which the Committee on Regional Trade Agreements should examine this Agreement, which
was circulated in document WT/REG66/1.
(d) Free Trade Agreement between Turkey and the Czech Republic (G/C/M/38)
9.4 At its meeting of 25 March 1999, the Council took note of the communication
(WT/REG67/N/1) from the parties to the Agreement.  The Council adopted the terms of reference
under which the Committee on Regional Trade Agreements should examine this Agreement, which
was circulated in document WT/REG67/1.
(e) Free Trade Agreement between Turkey and the Slovak Republic (G/C/M/38)
9.5 At its meeting of 25 March 1999, the Council took note of the communication
(WT/REG68/N/1) from the parties to the Agreement.  The Council adopted the terms of reference
under which the Committee on Regional Trade Agreements should examine this Agreement, which
was circulated in document WT/REG68/1.
(f) Free Trade Agreement between Turkey and Estonia (G/C/M/38)
9.6 At its meeting of 25 March 1999, the Council took note of the communication
(WT/REG70/N/1) from the parties to the Agreement.  The Council adopted the terms of reference
under which the Committee on Regional Trade Agreements should examine this Agreement, which
was circulated in document WT/REG70/1.
(g) Euro-Mediterranean Agreement between the European Communities and Tunisia (G/C/M/38)
9.7 At its meeting of 25 March 1999, the Council took note of the communication
(WT/REG69/N/1) from the parties to the Agreement.  The Council adopted the terms of reference
under which the Committee on Regional Trade Agreements should examine this Agreement, which
was circulated in document WT/REG69/1.G/L/337
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(h) Central European Free Trade Agreement – Accession of the Republic of Bulgaria (G/C/M/38)
9.8 At its meeting of 25 March 1999, the Council took note of the communication
(WT/REG11/N/5) from the parties to the Agreement.  The Council adopted the terms of reference
under which the Committee on Regional Trade Agreements should examine this Agreement, which
was circulated in document WT/REG11/10.
(i) Free Trade Agreement between Israel  and Poland (G/C/M/38 and 41)
9.9 At its meeting of 25 March 1999, the Council t ook note of the notification (WT/REG/65/N/1)
from the parties to the Agreement and of the information provided by the representative of Poland that
a Free Trade Agreement between Israel and Poland was awaiting its entry into force and that the text
of the Agreement had been made available for circulation (WT/REG65/1).
9.10 At its meeting of 15 October1999, the Council took note of the notification (WT/REG65/N/1)
from the parties to the Agreement. The Council adopted the terms of reference under which the
Committee on Regional Trade Agreements should examine this Agreement, which was circulated in
document WT/REG65/1.
(j) Accession of the Kyrgyz Republic to the Customs Union between the Russian Federation,
Belarus and Kazakhstan (G/C/M/40)
9.11 At its meeting of 2 July 1999, the Council t ook note of the communication (WT/REG71/N/1)
from the Kyrgyz Republic.  The Council adopted the terms of reference under which the Committee
on Regional Trade Agreements should examine this Agreement, which was circulated in document
WT/REG71/2.
(k) Free Trade Agreement between Turkey and Bulgaria (G/C/M/40)
9.12 At its meeting of 2 July 1999, the Council t ook note of the communication (WT/REG72/N/1)
from the parties to the Agreement.  The Council adopted the terms of reference under which the
Committee on Regional Trade Agreements should examine this Agreement, which was circulated indocument WT/REG72/1.
(l) Free Trade Agreement between the Kyrgyz Republic and the Russian Federation (G/C/M/40)
9.13 At its meeting of 2 July 1999, the Council took  note of the notification (WT/REG73/N/1) by
the Kyrgyz Republic.  The Council adopted the terms of reference under which the Committee on
Regional Trade Agreements should examine this Agreement, which was circulated in document
WT/REG73/1.
(m) Free Trade Agreement between the Kyrgyz Republic and Ukraine (G/C/M/40)
9.14 At its meeting of 2 July 1999, the Council took  note of the notification (WT/REG74/N/1) by
the Kyrgyz Republic.  The Council adopted the terms of reference under which the Committee on
Regional Trade Agreements should examine this Agreement, which was circulated in documentWT/REG74/1.
(n) Free Trade Agreement between the Kyrgyz Republic and Uzbekistan (G/C/M/40)
9.15 At its meeting of 2 July 1999, the Council took  note of the notification (WT/REG75/N/1) by
the Kyrgyz Republic.  The Council adopted the terms of reference under which the Committee onG/L/337
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Regional Trade Agreements should examine this Agreement, which was circulated in document
WT/REG75/1.
(o) Free Trade Agreement between the Kyrg yz Republic and Moldova (G/C/M/40)
9.16 At its meeting of 2 July 1999, the Council took  note of the notification (WT/REG76/N/1) by
the Kyrgyz Republic.  The Council adopted the terms of reference under which the Committee on
Regional Trade Agreements should examine this Agreement, which was circulated in document
WT/REG76/1.
(p) Agreements between the Republic of Estonia, the Republic of Latvia and the Republic of
Lithuania (G/C/M/40)
9.17 At its meeting of 2 July 1999, the Council took note of the notification (WT/REG77/N/1)
from Latvia.  The Council adopted the terms of reference under which the Committee on Regional
Trade Agreements should examine this Agreement, which was circulated in document WT/REG77/1.
(q) Agreement between Poland and the Government  of Denmark and the Home Government of
the Faroe Islands (G/C/M/41)
9.18 At its meeting of 15 October 1999, the Council took note of the notification (WT/REG78/N/1
and WT/REG78/1)from the parties to the Agreement. The Council adopted the terms of reference
under which the Committee on Regional Trade Agreements should examine this Agreement, which
was circulated in document WT/REG78/1.
(r) Free Trade Agreement between Poland and Latvia (G/C/M/41)
9.19 At its meeting of 15 October 1999, the Council took note of the notification
(WT/REG80/N/1) from the parties to the Agreemen t. The Council adopted the terms of reference
under which the Committee on Regional Trade Agreements should examine this Agreement, which
was circulated in document WT/REG80/1.
(s) Free Trade Agreement between the Kyrgyz Republic and Kazakhstan (G/C/W/41)
9.20 At its meeting of 15 October 1999, the Council took note of the notification
(WT/REG81/N/1) by the Kyrgyz Republic.  The Council adopted the terms of reference under which
the Committee on Regional Trade Agreements should examine this Agreement, which was circulated
in document WT/REG81/1.
(t) Free Trade Agreement between Azerbaijan, Armenia, Belarus, Georgia, Moldova,
Kazakhstan, The Russian Federation, Ukraine, Uzbekistan, Tajikistan and the Kyrgyz
Republic (G/C/W/41)
9.21 At its meeting of 15 October 1999, the Council took note of the notification
(WT/REG82/N/1) by the Kyrgyz Republic.  The Council adopted the terms of reference under which
the Committee on Regional Trade Agreements should examine this Agreement, which was circulatedin document WT/REG82/1.G/L/337
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(u) Interim Agreement between the EFTA States and the Palestine Liberation Organization for
the benefit of the Palestinian Authority (G/C/W/41)
 9.22 At its meeting of 15 October 1999, the Chairman postponed consideration of this Agreement,
notified by the EFTA States in WT/REG79/N/1, to a future meeting of the Council following informal
consultations with the EFTA States.
10. Understanding on the int erpretation of Article XVII of GATT 1994 (G/C/W/41)
10.1 At its meeting of 15 October 1999, the Council adopted an Illustrative List of Relationships
between Governments and State-trading Enterprises and the kinds of activities engaged in by these
enterprises (G/STR/4).
11. TRIMS Agreement (G/C/W/41)
11.1 At its meeting of 15 October 1999, the Council considered a request by the Philippines for
extension of the transition period pursuant to Article 5.3 (G/L/325) and agreed to hold informal
consultations on the matter.  At the same meetin g, the Council began the review of the operation of
the TRIMS Agreement provided for in Article 9 and agr eed to revert to the matter at its next meeting.
12. Consideration of Annual Reports of subsidiary bodies of the Council for Trade in Goods
G/C/W/41)
12.1 At its meeting on 15 October 1999, the Council took note of the reports of the following
bodies:  Committees on Agriculture (G/L/322), Customs Valuation (G/L/323), Market Access
(G/L/331), Rules of Origin (G/L/326), Sanitary and  Phytosanitary Measures PS (G/L/315), Technical
Barriers to Trade (G/L/327), TRIMS (G/L/319), Participants on the Expansion of Trade inInformation Technology Products (G/L/332); Text iles Monitoring Body (G/L/318), Independent
Entity (G/L/330), Working Party on State Trading Enterprises (G/STR/W/36); and the interim reports
of the Committees on Import Licensing (G/LIC/W/12), Anti-Dumping Practices (Job. no. 5970),
Safeguards (Job no. 5969) and Subsidies and Countervailing Measures (Job no. 5972).
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