RESTRICTED
WORLD TRADE G/C/W/54
4September 1996
ORGANIZATION(96-3472)
COUNCIL FOR TRADE INGOODS
19September 1996
ANDEAN TRADE PREFERENCE ACT
Draft Decision
Taking noteoftherequest oftheGovernment oftheUnited States forarenewal ofthewaiver
from itsobligations under paragraph 1ofArticle IoftheGeneral Agreement1which wasgranted by
theCONTRACTING PARTIES oftheGATT 1947on19March 1992fortheperiod from4December
1991 until4December 2001, forprovision ofduty-free treatment forimports ofeligible products
originating inbeneficiary Andean countries asprovided forintheAndean Trade Preference Act
(hereinafter referred toas"ATPA");
Recognizing that,asprovided forinparagraph 2oftheUnderstanding inRespect ofWaivers
ofObligations under theGeneral Agreement onTariffs andTrade 1994,unless renewed, thiswaiver
willexpire on31December 1996, twoyears afterentry intoforce oftheWTO Agreement;
Bearing inmindthe1979Decision onDifferential andMore Favourable Treatment, Reciprocity
andFuller Participation ofDeveloping Countries;
Considering theexceptional situation ofthedeveloping countries oftheAndean region and
thatthestated objective oftheActistoassist thetrade andeconomic development ofbeneficiary
developing countries situated intheAndean region byencouraging theexpansion oflegitimate products
asanalternative totheproduction andtrafficking ofillicit narcotics inresponse tomore liberal access
andtonewtrading opportunities forAndean countries;
Considering alsothattheduty-free treatment provided under ATPA isdesigned topromote
theexpansion oftrade andeconomic development ofbeneficiaries inamanner consistent withthe
objectives oftheGATT 1994 andwiththetrade, financial anddevelopment needs ofthebeneficiary
countries, andnottoraisebarriers ortocreate difficulties fortrade ofother Members;
Considering ,moreover, thattheduty-free treatment provided under ATPA should notprejudice
theinterests ofother Members notbenefitting from suchtreatment, andthatitisexpected thatthe
continued extension ofsuchduty-free treatment willnotcause asignificant diversion ofUnited States
imports ofproducts eligible under ATPA originating inMembers whoarenotbeneficiary countries;
Considering thatthetariff preferences provided under theATPA bytheGovernment ofthe
United States shallnotconstitute animpediment tothereduction orelimination oftariffs andother
restrictions totrade onamost-favoured-nation basis;
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Considering ,furthermore, thatthetariff preferences provided under theATPA bythe
Government oftheUnited States shallnotadversely affect themaintenance, operation andimprovement
oftheGeneralized System ofPreferences oftheUnited States;
Noting ,furthermore, theassurances given bytheUnited States Government thatitwill,upon
request, promptly enter intoconsultations withanyinterested Member withrespect toanydifficulty
ormatter thatmayariseasaresult oftheimplementation ofthetrade-related provisions ofATPA;
Having regard totheGuiding Principles tobefollowed inconsidering applications forwaivers
adoptedon1November1956,theUnderstandinginRespectofWaiversofObligationsundertheGeneral
Agreement onTariffs andTrade 1994, andparagraphs 3and4ofArticle IXoftheMarrakesh Agreement
Establishing theWorld Trade Organization (hereinafter "WTO Agreement");
Members,actingpursuanttotheprovisionsofparagraph3ofArticleIXoftheWTOAgreement,
Decide that:
1. Subject totheterms andconditions setouthereunder, theprovisions ofparagraph 1ofArticle I
oftheGATT 1994 shall bewaived until4December 2001, totheextent necessary topermit the
United States Government tocontinue toprovide duty-free treatment toeligible products oftheAndean
countries asauthorized bytheprovisions ofATPA asamended, uptothedateofthisDecision, without
being required toextend thesame duty-free treatment tolikeproducts ofanyother Member.
2. Suchduty-free treatment shallbedesigned nottoraisebarriers orcreate undue difficulties for
thetrade ofother Members.
3. TheGovernment oftheUnited States willsubmit totheGeneral Council anannual report on
theimplementation ofthetrade-related provisions oftheATPA withaviewtofacilitating theannual
reviewprovidedforinparagraph4ofArticleIXoftheWTOAgreement.TheUnitedStatesGovernment
shallpromptly notify theGeneral Council ofanytrade-related measure taken under ATPA, inparticular,
anychanges inthedesignation ofbeneficiary countries, aswellasanymodification being considered
inthelistofeligible products andtheduty-free treatment thereof, andshallfurnish them withallthe
information theymaydeem appropriate relating tosuchaction. TheUnited States Government shall
consult withregard toanymodification being considered inthelistofeligible products.
4. TheUnited States Government will,uponrequest, promptly enter intoconsultations withany
interestedMemberwithrespecttoanydifficultyormatterthatmayariseasaresultoftheimplementation
ofthetrade-related provisions ofATPA; where aMember considers thatanybenefit accruing toit
under theGATT 1994 maybeorisbeing impaired unduly asaresult ofsuchimplementation, such
consultation shallexamine thepossibility ofaction forasatisfactory adjustment ofthematter. This
Decision doesnotaffect Members 'rights assetforthintheUnderstanding inRespect ofWaivers of
Obligations under theGATT 1994.