WORLD TRADE G/L//213
9December 1997
ORGANIZATION(97-5407)
Council forTrade inGoods
REPORT (1997) OFTHE COUNCIL FOR TRADE INGOODS
Inaccordancewiththe"ProceduresforanAnnualOverviewofWTOActivitiesandforReporting
under theWTO" (WT/L/105), theCouncil forTrade inGoods istoreport "inNovember eachyear
totheGeneral Council ontheactivities intheCouncil aswellasinthesubsidiary bodies". Thereports
aretobe"factual innature, containing anindication ofactions anddecisions taken, withcrossreferences
toreports ofsubordinate bodies andcould follow themodel oftheGATT 1947 Council reports to
theCONTRACTING PARTIES".
Since thelastannual report, theCouncil forTrade inGoods meton29November 1996,
27January,12February,11March,14April,11June,14and21July,6,16and20October,7,13and
19November and8December 1997. Theminutes ofthese meetings arecontained indocuments
G/C/M/16 to28.
Thefollowing subject matters which wereraised and/or acted uponintheCouncil areincluded
inthereport:
Page
1. Chairperson oftheCommittee onAgriculture ...................... 4
2. Election ofChairperson fortheCouncil forTrade inGoods ............. 4
3. Appointment ofOfficers forthesubsidiary bodies oftheCouncil .......... 4
4. Chairperson oftheWorking Party onState Trading Enterprises ........... 4
5. Observer status forInternational Intergovernmental Organizations .......... 4
6. Rules ofprocedure oftheCommittee onSanitary andPhytosanitary
Measures ............................................. 5
7. Recommendations from theWorking Group onNotification Obligations
andProcedures (Paragraphs 65and76ofG/L/112) ................... 5
(a) GATT 1947 CONTRACTING PARTIES Resolution onLiquidation
ofStrategic Stocks (BISD 3S/51) ......................... 5
(b) Preparation ofgeneral guidelines forthebodies under the
Council 'spurview, providing fortheregular review of
questionnaires andformats andofthesituation asregards
compliance withnotification obligations .................... 5G/L//213
Page2
8. Status ofnotifications under theprovisions oftheAgreements in
Annex 1AoftheWTO Agreement ............................. 5
9. Decision onEstablishment ofConsolidated Loose-Leaf Schedules .......... 5
10. Decision ontheAdPersonam Status ofTMB members ................ 5
11. Decision onSupply ofInformation totheIntegrated DataBasefor
Personal Computers ...................................... 6
12. Draft Agreement between theWTO andtheOffice International
desEpizooties (OIE) ..................................... 6
13. Implementation oftheMinisterial Declaration onTrade in
Information Technology Products ............................. 6
14. Trade Facilitation (paragraph 21oftheSingapore Ministerial
Declaration (WT/MIN(96)Dec) ............................... 6
15. Periodic Reports oftheCommittee onMarket Access ................. 7
16. Waivers under Article IXoftheWTO Agreement ................... 7
(a) Harmonized System -Requests forextensions of
waivers from Bangladesh, Bolivia, Guatemala, Nicaragua
andSriLanka ..................................... 7
(b) Senegal -Renegotiation ofSchedule XLIX ................... 8
(c) Zambia -Renegotiation ofSchedule LXXVIII ................. 8
(d) Decision ontheIntroduction ofHarmonized System
(HS)changes intoWTO schedules oftariff concessions
on1January 1996 -Extension ofthetime-limit ................ 8
(e) Hungary -Agricultural Export Subsidies .................... 8
(f) France -Trading Arrangements withMorocco ................. 9
17. HS96 Changes andArticle IIofGATT 1994 -Rectifications
andModifications toSchedules ofTariff Concessions and
theirCertification ........................................ 9
18. Major review oftheimplementation oftheAgreement on
Textiles andClothing (ATC) during thefirststage oftheintegration
process pursuant toparagraph 11ofArticle 8oftheATC ............... 9
19. Customs Unions andFree-Trade Areas: regional agreements ............ 11
(a) FreeTrade Agreement between theGovernment
ofCanada andtheGovernment oftheState ofIsrael ........ 11
(b) FreeTrade Agreement between Slovenia andEstonia ........ 11
(c) Notification ofFreeTrade Agreements between the
Czech Republic andtheSlovak Republic ontheoneside
andBulgaria, Estonia, Latvia, Lithuania andtheState
ofIsrael ontheother ............................ 11G/L//213
Page3
(d) Agreement between European Community andthe
Faroe Islands (Government ofDenmark) ............... 11
(e) Free-Trade Agreement between theCzech Republic and
theRepublic ofBulgaria .......................... 11
(f) Free-Trade Agreement between theSlovak Republic and
theRepublic ofBulgaria ......................... 11
(g) Israel-Turkey FreeTrade Area Agreement .............. 12
(h) Euro-Mediterranean Interim Association Agreement on
Trade andCo-operation between theEuropean Community
andthePalestine Liberation Organization forthebenefit
ofthePalestinian Authority oftheWest Bank ............ 12
(i) FreeTrade Agreement between Canada andChile ......... 12
(j) FreeTrade Agreement between Romania andthe
Republic ofMoldova ........................... 12
(k) Interim Agreement between theEuropean Communities
andtheRepublic ofSlovenia ....................... 12
(l) FreeTrade Agreement between theRepublic ofSlovenia
andtheRepublic ofBulgaria ....................... 12
(m) FreeTrade Agreement between theCzech Republic
andtheRepublic ofLatvia ........................ 12
(n) FreeTrade Agreement between theCzech Republic
andtheRepublic ofLithuania ...................... 13
(o) FreeTrade Agreements between theSlovak Republic onthe
onesideandtheRepublics ofLatvia andLithuania
ontheother ................................. 13
20. Issues raised under "other business" concerning Members 'trade practices .... 13
(a) Korea -Tariff Measures byEcuador against certain suppliers ....... 13
(b) EC-Korea 's"Frugality Campaign" ....................... 13
(c) United States -USRequest forConsultations concerning
Restrictive Business Practices intheJapanese Photographic
FilmandPaper Market ............................... 13
(d) United States -Brazil Import Financing Restrictions ............. 13
(e) Korea -Price Range orRange ofValue System applied
byArgentina ..................................... 13
(f) Korea -USidentification ofKorea 's"barriers" toimported
automobiles asaPriority Foreign Country Practice .............. 14
(g) United States -Mercosur Common External Tariff .............. 14
21. Consideration ofannual reports ofsubsidiary bodies ofthe
Council forTrade inGoods ................................. 14
22. Adoption oftheannual report oftheCouncil forTrade inGoods
totheGeneral Council ..................................... 14G/L//213
Page4
1. Chairperson oftheCommittee onAgriculture (G/C/M/16)
1.1 Atitsmeeting of29November 1996, theCouncil took note oftheresignation of
Ambassador D.Tulalamba asChairman oftheCommittee onAgriculture, andoftheelection of
Mrs. Tantraporn asinterim Chairperson ofthatCommittee toperform thefunctions oftheChairperson,
pending theelection ofanewChairperson for1997.
2. Election ofChairperson fortheCouncil forTrade inGoods (G/C/M/17)
2.1 Atitsresumed meeting of12February 1997, theCouncil elected Ambassador Johannessen
(Norway) asitsChairman for1997.
3. Appointment ofOfficers forthesubsidiary bodies oftheCouncil (G/C/M/17)
3.1 Atitsresumed meeting of12February 1997, theCouncil tooknoteoftheconsensus onthe
following persons nominated forelection asChairpersons ofitssubsidiary bodies: Committee on
Agriculture: H.E. Mr.Nestor Osorio Londoño (Colombia); Committee onAnti-Dumping Practices:
Mr.Kajit Sukhum (Thailand); Committee onCustoms Valuation: Mr.Tullio DiPietro (Italy);
Committee onImport Licensing Procedures: Mr.Tomasz Jodko (Poland); Committee onMarket
Access: Mr.Moha Ouali Tagma (Morocco); Committee onRules ofOrigin: Mrs. Lourdes A.Berrig
(Philippines); Committee onSafeguards: Mr.Seiichi Nagatsuka (Japan); Committee onSubsidies
andCountervailing Measures: Mr.Gilles Gauthier (Canada); Committee onTechnical Barriers to
Trade(TBT):Mr.TimothyH.M.Tong(HongKong,China);CommitteeonTrade-RelatedInvestment
Measures: Mr.Javier Paulinich (Peru). TheCouncil appointed thefollowing nominated persons
asChairpersons: Mr.AlexThiermann (United States) fortheCommittee onSanitary andPhytosanitary
Measures; MsVibeke Roosen (Denmark) fortheWorking Party onState Trading Enterprises;
Mr.Chiedu Osakwe (Nigeria) fortheWorking Party onPreshipment Inspection.
4. Chairperson oftheWorking Party onState Trading Enterprises (G/C/M/19 and20)
4.1 Atitsmeeting of14April 1997, theCouncil wasinformed thattheChairperson oftheWorking
Party would beunable tocontinue asChairperson ofthatbody. TheCouncil Chairman hadinitiated
consultations concerning anewChairperson, andinthemeantime toallow continuation ofwork the
Council agreed thattheWorking Party's1996Chairman should continue tochairtheinformal meetings
oftheWorking Party untilanewChairperson wasappointed bytheCouncil.
4.2 Atitsmeeting of11June1997, theCouncil appointed Mr.Jacques Teyssier D'Orfeuil (France)
asChairman oftheWorking Party onState-Trading Enterprises.
5. Observer status forInternational Intergovernmental Organizations (G/C/M/17 and18)
5.1 Atitsmeeting of27January 1997, theCouncil tooknotethatbyvirtue oftheAgreements
between theWTO andtheInternational Monetary Fund (IMF) andtheWorld Bank, observer status
hadbeen granted tothese organizations. TheCouncil alsogranted observer status toFood and
Agriculture Organization (FAO), International Textiles andClothing Bureau (ITCB), Organization
forEconomicCooperationandDevelopment(OECD),UnitedNations(UN),UnitedNationsConference
onTrade andDevelopment (UNCTAD) andtheWorld Customs Organization (WCO). TheCouncil
agreed thatthese Organizations benotified onthebasis onwhich observer status wasbeing granted
andofthefactthattheWTO reserved theright toexpect reciprocal observer rights inthese
Organizations. Asconcerned theinternational intergovernmental organizations whose requests for
observer status werepending (category IIindocument G/L/140), itwasagreed thattheChairman should
holdconsultations onthose requests.G/L//213
Page5
5.2 Atthatmeeting, theCouncil noted theChairman 'sunderstanding thatitwould beforthe
subsidiary bodies oftheCouncil todecide iftheyneeded aVice-Chairperson incases where theoption
existed, andfortherespective Chairperson toholdconsultations ifthatwasfound tobethecase.
5.3 Atitsmeeting of11March 1997, theCouncil agreed thattheChairman continue theseinformal
consultations andreport backtotheCouncil when thematter wassufficiently advanced totakedecisions.
6. RulesofprocedureoftheCommitteeonSanitaryandPhytosanitaryMeasures(G/C/M/19and20)
6.1 Atitsmeeting of14April 1997, theCouncil considered therulesofprocedure oftheCommittee
onSanitary andPhytosanitary Measures (G/SPS/W/48 andCorr.1), which weresubsequently circulated
indocument G/SPS/W/48/Rev.1, andapproved bytheCouncil atitsmeeting of11June1997.
7. Recommendations from theWorking Group onNotification Obligations andProcedures
(Paragraphs 65and76ofG/L/112)
(a) GATT 1947 CONTRACTING PARTIES Resolution onLiquidation ofStrategic Stocks
(G/C/M/18)
7.1 Atitsmeeting of11March 1997, theCouncil agreed tomaintain theResolution onLiquidation
ofStrategic Stocks (BISD 3S/51) which hadbeenreferred bytheWorking Group onNotification
Obligations andProcedures totheGoods Council (paragraph 65ofG/L/112) inorder todetermine
whether itwasredundant inthecurrent situation.
(b) Preparation ofgeneral guidelines forthebodies under theCouncil 'spurview, providing for
theregular review ofquestionnaires andformats andofthesituation asregards compliance
withnotification obligations (G/C/M/18)
7.2 After having considered therecommendation bytheWorking Group onNotification Obligations
andProcedures onthepreparation ofgeneral guidelines (paragraph 76ofG/L/112) atitsmeeting of
11March 1997, theCouncil agreed thattheSecretariat prepare forconsideration atafuture meeting,
anon-paper identifying elements which might beincluded ingeneral guidelines relating toquestionnaires
orformats fornotifications pertaining tothevarious Committees, andwhich could havetheeffect of
improving compliance withnotification obligations.
8. Status ofnotifications under theprovisions oftheAgreements inAnnex 1AoftheWTO
Agreement (G/C/M/22)
8.1 Atitsmeeting of21July1997, theCouncil tooknoteoftheinformation provided indocument
G/L/112/Add.2concerningthestatusofnotificationsundertheprovisionsoftheAgreementsinAnnex1A
oftheWTO Agreement.
9. Decision onEstablishment ofConsolidated Loose-Leaf Schedules (G/C/M/16)
9.1 Atitsmeeting of29November 1996, theCouncil adopted theDecision onthe"Establishment
ofConsolidated Loose-Leaf Schedules" (G/C/W/63).
10. Decision ontheAdPersonam Status ofTMB members (G/C/M/17)
10.1 Atitsmeeting of27January 1997, theCouncil adopted theDecision onthe"AdPersonam
Status ofTMB members" (G/C/W/20/Rev.1).G/L//213
Page6
11. Decision onSupply ofInformation totheIntegrated Data Base forPersonal Computers
(G/C/M/21)
11.1 Atitsmeeting 14July1997, theCouncil approved theDecision onthe"Supply ofInformation
totheIntegrated DataBaseforPersonal Computers" (G/C/W/82).
12. DraftAgreementbetweentheWTOandtheOfficeInternationaldesEpizooties(OIE)(G/C/M/22)
12.1 Atitsmeeting of21July1997, theCouncil approved thedraftAgreement between theWTO
andtheOffice International desEpizooties (OIE) (G/SPS/W/61), andagreed totransmit itforapproval
totheGeneral Council.
13. Implementation oftheMinisterial Declaration onTrade inInformation Technology Products
(G/C/M/19)
13.1 Atitsmeeting of14April 1997, theCouncil tooknoteofthecommunications (G/L/159 and
169)forwarded bytheparticipants totheDeclaration onTrade inInformation Technology Products
(ITA).
14. Trade Facilitation (paragraph 21oftheSingapore Ministerial Declaration) (WT/MIN(96)Dec)
(G/C/M/16, 17,18,20,22,23and28)
14.1 Atitsmeeting of29November 1996, theCouncil tooknoteofacommunication from the
European Communities on"Elements oftheWTO Programme onTrade Facilitation" (G/C/W/67).
14.2 Pursuant tothedirective byMinisters inparagraph 21oftheSingapore Ministerial Declaration,
theCouncil, atitsmeeting of27January 1997, agreed thatfirstly theSecretariat should startan
information gathering exercise inrespect ofthework done orbeing done onthesubject oftrade
facilitation invarious organizations. Secondly, atitsnextformal meeting, theSecretariat would inform
theCouncil oftheorganizations from which information hadbeengathered untilthatpoint intime
aswellasareas oftrade facilitation inrespect ofwhich those organizations hadundertaken orwere
undertaking work. Thirdly, theSecretariat should present theresults oftheinformation gathering
exercise totheCouncil inMay1997.
14.3 Atitsmeeting of11March 1997, theCouncil tooknoteoftheSecretariat document G/C/W/70
which contained preliminary information onthoseorganizations having undertaken orundertaking work
ontrade facilitation.
14.4 Atitsmeeting of11June1997, theCouncil tooknoteofdocument G/C/W/80 which contained
acompilation bytheSecretariat ofthework already doneonthesubject oftrade facilitation inother
international organizations, including certain non-governmental organizations.
14.5 Atitsmeeting of21July1997, theCouncil tooknoteoftheChairman 'sstatement thatoral
statements andwritten contributions bydelegations, aswellastheSecretariat document (G/C/W/80)
would provide agood basis fordiscussions attheCouncil 'snextmeeting tobuilding upaconsensus
onhowtheCouncil should handle thismatter.
14.6 Atitsmeeting of6October 1997, theCouncil took noteofcommunications from the
European Communities (G/C/W/85) andfromSwitzerland (G/C/W/92) onthesubject andagreed that
theChairman undertake informal consultations inorder todetermine thenextstepintheprocess.G/L//213
Page7
14.7 Atthemeeting of19November andtheresumed meeting of8December 1997, theCouncil
agreed totheChairman 'sproposal tohaveaWTO Symposium onTrade Facilitation early in1998.
Theobjective ofthesymposium would betohelpidentify themainareas where traders faceobstacles
when moving goods across borders, andinthisrespect toprovide adirect interface between thepractical
level(traders) andthetradepolicy level(officials incapitals andinGeneva). Participants would involve
trade policy officials andtechnical experts from Members, aswellasrelevant intergovernmental
organizations, including UN/ECE, ITC, UNCTAD andtheWCO; inconsultation withdelegations
andtheInternational Chamber ofCommerce (ICC), theSecretariat would coordinate input fromthe
private sector andother nongovernmental organizations.
15. Periodic Reports oftheCommittee onMarket Access (G/C/M/19 and23)
15.1 Atitsmeetings of14April and6October 1997, theCouncil tooknoteoftheoralreports
made bytheChairman oftheMarket Access Committee onthesituation withrespect torequests for
waiver extensions and/or waivers made inconnection withthetransposition orrenegotiation ofschedules
oftariff concessions and/or inconnection withtheintroduction ofharmonized system changes into
schedules oftariff concessions on1January 1996. TheCouncil alsotooknoteofthewritten reports
summarizing theactivities oftheCommittee in1997 (G/MA/57 and58).
16. Waivers under Article IXoftheWTO Agreement
(a) Harmonized System -Requests forextensions ofwaivers fromBangladesh, Bolivia, Guatemala,
Nicaragua andSriLanka (G/C/M/19, 20,21,23and28)
16.1 Atitsmeeting of14April 1997, theCouncil considered requests byBangladesh (G/L/163),
Bolivia(G/L/161),Nicaragua(G/L/166)andSriLanka(G/L/164)foranextensionuntil31October1997
ofwaivers already granted inconnection withthetransposition oftheirschedules intotheHarmonized
System.
16.2 TheCouncil approved thetextsofthedraftdecisions onthewaiver extensions inG/C/W/74
(Bangladesh),G/C/W/72(Bolivia)andG/C/W/77(Nicaragua)andagreedtotransmitthemtotheGeneral
Council foradoption. TheCouncil agreed torevert toSriLanka 'srequest atitsnextmeeting inlight
ofNewZealand 'sstatement.
16.3 Atitsmeeting of11June1997, theCouncil agreed torevert toSriLanka 'srequest forawaiver
extension atitsnextmeeting.
16.4 Atitsmeeting of14July1997, theCouncil approved thetextofthedraftdecision contained
indocument G/C/W/73/Rev.1 granting SriLanka awaiver extension until31October 1997, andagreed
totransmit ittotheGeneral Council foradoption.
16.5 Atitsmeeting of6October 1997, theCouncil considered requests byBangladesh (G/L/186),
Guatemala(G/L/185),Nicaragua(G/L/187)andSriLanka(G/L/188)foranextensionuntil30April1998
ofwaivers already granted inconnection withthetransposition oftheirschedules intotheHarmonized
System.
16.6 TheCouncil approved thetextsofthedraftdecisions onthewaiver extensions inG/C/W/89
(Bangladesh), G/C/W/87 (Nicaragua) andG/C/W/90 (SriLanka), andagreed totransmit themtothe
General Council foradoption. TheCouncil tooknotethatGuatemala nolonger needed torequest a
waiver extension having reached agreement with thetrading partner maintaining areservation.
NewZealand reserved itsposition onthefinaldecision onSriLanka 'srequest forawaiver extension.G/L//213
Page8
(b) Senegal -Renegotiation ofSchedule XLIX (G/C/M/19)
16.7 Atitsmeeting of14April 1997, theCouncil considered arequest bySenegal (G/L/165) for
anextension, until31October 1997, ofthewaiver granted toitinconnection withtherenegotiation
ofitsSchedule. TheCouncil approved thetextofthedraftdecision (G/C/W/76) andagreed totransmit
ittotheGeneral Council foradoption. Atthesametime, theCouncil wasinformed thatSenegal might
notneedthewaiver extension ifagreement wasreached withatrading partner withwhom negotiations
were pending1.
(c) Zambia -Renegotiation ofSchedule LXXVIII (G/C/M/19 and23)
16.8 Atitsmeeting of14April 1997, theCouncil considered arequest byZambia (G/L/162) for
anextension, until31October 1997, ofthewaiver granted toitinconnection withtherenegotiation
ofitsSchedule. TheCouncil approved thetextofthedraftdecision (G/C/W/75), andagreed totransmit
ittotheGeneral Council foradoption.
16.9 Atitsmeeting of6October 1997, theCouncil considered arequest byZambia (G/L/189) for
anextension, until30April 1998, ofthewaiver granted toitinconnection withtherenegotiation of
itsSchedule. TheCouncil approved thetextofthedraftdecision (G/C/W/91), andagreed totransmit
ittotheGeneral Council foradoption.
(d) Decision ontheIntroduction ofHarmonized System (HS)Changes intoWTO Schedules of
Tariff Concessions on1January 1996 -Extension ofthetime-limit (G/C/M/19 and23)
16.10 Atitsmeetingof14April1997,theCouncilapprovedthetextofthedraftdecision(G/MA/W/12
andCorr.1) granting anextension ofindividual waivers toMembers listed intheannex tothatdocument
until31October 1997, andagreed totransmit ittotheGeneral Council foradoption. These waivers
hadbeenrequested bythose Members finding itnecessary toconsult ornegotiate under Article XXVIII
ofGATT 1994asaresult oftheHS96 changes introduced intheirschedules. TheCouncil alsotook
note oftheSwiss communication contained indocument G/C/W/79-WT/GC/W/56 identifying
Switzerland 'sconcerns onthequestion of"general reservations" and"delays inthetransposition of
schedules". TheCouncil agreed thattheChairman should holdconsultations ontheSwiss proposal2.
16.11 Atitsmeeting of6October 1997, theCouncil approved thetextofthedraft decision
(G/C/W/93/Rev.1) granting anextension oftheindividual waivers toMembers listed intheannex3
tothatdocument until30April 1998, andagreed totransmit ittotheGeneral Council foradoption.
(e) Hungary -Agricultural Export Subsidies (G/C/M/23)
16.12 Atitsmeeting of6October 1997, theCouncil considered Hungary 'srequest forawaiver
(G/L/183) fromitsobligations under paragraph 3ofArticle 3,under Article 8,andunder paragraph
2ofArticle 9oftheAgreement onAgriculture foraperiod ending on31December 2001. TheCouncil
approved thetextofthedraftdecision (G/C/W/86) granting thewaiver, andagreed totransmit itto
theGeneral Council foradoption subject toconsultations being carried outbetween Hungary andEgypt.
1Thewaiver extension wasnotrequired asSenegal reached agreement withthetrading partner concerned
beforetheGeneralCouncilmeetingwhenthefinaldecisionontherequestforwaiverextensionwastobeadopted.
2Seealsosection 17ofthisdocument.
3Cuba requested toberemoved from theannexed listfollowing theconclusion ofnegotiations withitstrading
partners.G/L//213
Page9
f) France -Trading Arrangements withMorocco (G/C/M/28)
16.13 Atitsmeeting of19November 1997, theCouncil considered therequest forawaiver extension
from theEuropean Communities (G/L/196). Thiswaiver applied totheprovisions ofparagraph 1
ofArticle IoftheGATT totheextent necessary topermit France toapply duty-free tariff quotas to
anumber ofproducts originating inparts oftheterritory ofMorocco notcovered byparagraphs 2
and4ofArticle IofGATT 1994. TheCouncil approved thetextofthedraftdecision (G/C/W/96)
granting thiswaiver extension andagreed totransmit ittotheGeneral Council foradoption.
17. HS96 Changes andArticle IIofGATT 1994 -Rectifications andModifications toSchedules
ofTariff Concessions andtheirCertification (G/C/M/20, 22and23)
17.1 Atitsmeeting of11June1997, theCouncil agreed thattheChairman continue hisconsultations
onapaper submitted bySwitzerland on"HS96 changes andArticle IIofGATT 1994" (WT/GC/W/56 -
G/C/W/79), andsubmit aproposal forasolution totheCouncil inthenearfuture.
17.2 Atitsmeeting of21July1997, theCouncil tooknoteoftheoverview provided bytheChairman
ofthesituation asitstood withrespect tohisongoing informal consultations onthesubject of
rectifications andmodifications toschedules ofconcessions andtheircertification. TheCouncil agreed
thattheChairman carry oninformal consultations withaviewtoclarifying asmany legal, technical
andother matters before itsnextmeeting.
17.3 Atitsmeeting of6October 1997, theCouncil tooknoteofthereport made bytheChairman
onthesituation andtheprogress made inthecontext ofinformal consultations onthesubject of
rectifications andmodifications toschedules ofconcessions andtheircertification. TheCouncil took
noteofastatement bytheChairman concerning theissue of"general reservations" andagreed that
theChairman should continue informal consultations. TheCouncil alsotooknoteoftheChairman 's
plantoaddress thelong-term elements ofthissubject ingreater depth inapaper hewould havecirculated
bytheSecretariat.
18. Major review oftheimplementation oftheAgreement onTextiles andClothing (ATC) during
thefirststage oftheintegration process pursuant toparagraph 11ofArticle 8oftheATC
(G/C/M/23, 24,25,26,27and28)
18.1 Atitsmeeting of6October 1997, theCouncil began itsmajor review oftheimplementation
oftheATC during thefirststage oftheintegration process pursuant toparagraph 11ofArticle 8of
theATC. TheCouncil tooknoteofthestatement made bytheChairman oftheTextiles Monitoring
Body (TMB) onbehalf ofthatbody, introducing thecomprehensive report oftheTMB (G/L/179)4
which hadbeenprepared inaccordance withArticle 8.11oftheATC inorder toassist theCouncil
initsmajor review. Therepresentative ofHong Kong, China, introduced anon-paper5,onelements
forconsideration inthereview. Anumber ofdelegations presented theiroverall views andperspective
onthereview process.
4TheSecretariat hadalsocirculated acompilation oftextiles andclothing trade statistics indocument G/L/184,
setting outinformation onrecent trends inworld trade ofthese products, prepared attherequest oftheTMB,
asabackground paper.
5Subsequently circulated indocument G/C/W/95.G/L//213
Page10
18.2 Atitsmeeting of16October 1997, theCouncil continued itsmajor review. Therepresentative
ofColombia, onbehalf ofWTO Members which arealsoITCB members, introduced anon-paper6
ofatechnical nature which analysed thedifferent integration programmes. Anumber ofdelegations
expressed theirviews withrespect totheprocess ofintegration ofproducts intoGATT 1994rulesand
disciplines.
18.3 Atitsmeeting of20October 1997, theCouncil continued itsmajor review. Therepresentative
ofColombia, onbehalf ofWTO Members which arealsoITCB members, introduced anon-paper7
concerning theapplication ofthetransitional safeguard mechanism inArticle 6oftheATC. Anumber
ofdelegations gavetheirviews ontheapplication ofthesafeguard mechanism inthefirstphase of
theATC.
18.4 Atitsmeeting of7November 1997, theCouncil continued itsmajor review. Therepresentative
ofColombia, onbehalf ofWTO members which arealsoITCB members, introduced anon-paper8
which assessed theapplication ofstrengthened GATT rulesanddisciplines. Anumber ofdelegations
expressed views ontradepolicy measures suchasanti-dumping actions and/or administrative formalities
andtheireffect onmarket access.
18.5 Atitsmeeting of13November 1997, theCouncil discussed otheraspects oftheimplementation
oftheATC. Some Members provided summaries andoverall comments andthere wasanexchange
ofviews onhowtheCouncil might conclude itsreview.
18.6 Atitsmeeting of19November 1997, theCouncil agreed totheChairman 'sproposal tohold
further informal consultations inorder toarrive atagenerally acceptable wayforconcluding thereview.
TheCouncil alsoagreed totheChairman 'sproposal tosuspend themeeting, andresume iton
4December 19979.
18.7 Atitsresumed meeting of8December 1997, theChairman reported thathehadheldaseries
ofinformal meetings withalargenumber ofdelegations toexamine theoutcome oftheformal meetings
withaviewtodeveloping abroadly acceptable summary ofthemain points raised inthediscussions
andasetofconclusions flowing fromthereview. However, inspiteofthelengthy consultations and
determined efforts bymany delegations, theviews ofMembers remained farapart ontheprogress
made intheATC implementation process inthefirststage. Itwas,therefore, notpossible toarrive
atsufficient common ground todevelop suchasummary ofdiscussions orconclusions thatwould attract
theconsensus ofMembers. Inthediscussions thatfollowed, thereweredivergent views astowhether
therequirement intheATC toconduct areview hadbeenmet. Accordingly, itwasdecided thatthis
outcome would beincluded intheCouncil 'sreport totheGeneral Council.
18.8 Asregards thecomposition oftheTextiles Monitoring Body, itwasnoted thattheGeneral
Council 'sDecision settheinitial period as1January 1995to31December 1997.10Accordingly, the
Chairman hadbeenconducting consultations withaviewtoestablishing thecomposition forthenext
period, beginning on1January 1998. Heinformed theCouncil thattheseconsultations werecontinuing
6Subsequently circulated indocument G/C/W/99.
7Subsequently circulated indocument G/C/W/100.
8Subsequently circulated indocument G/C/W/101.
9Astheconsultations required additional time, themeeting wasresumed onlyon8December 1997.
10Document WT/L/26.G/L//213
Page11
andwere nearing conclusion. TheCouncil agreed thattheChairman would report ontheoutcome
ofthese consultations directly totheGeneral Council.
18.9 Dr.C.Kim,DeputyDirector-General,informedtheCouncilthathewasconductingconsultations
onthechairmanship oftheTMB onbehalf oftheDirector-General. These consultations werecontinuing
andwere close toconclusion. TheGeneral Council would beinformed oftheoutcome.
19. Customs Unions andFree-Trade Areas: regional agreements
(a) FreeTrade Agreement between theGovernment ofCanada andtheGovernment oftheState
ofIsrael (G/C/M/17)
19.1 Atitsmeeting of27January 1997, theCouncil tooknoteofthenotification (WT/REG31/N/1)
from theparties totheAgreement. TheCouncil adopted theterms ofreference under which the
Committee onRegional Trade Agreements should examine thisAgreement (WT/REG31/2).
(b) FreeTrade Agreement between Slovenia andEstonia (G/C/M/18)
19.2 Atitsmeeting of11March 1997, TheCouncil tooknoteofthenotification (WT/REG37/N/1)
from theparties totheAgreement. TheCouncil adopted theterms ofreference under which the
Committee onRegional Trade Agreements should examine thisAgreement (WT/REG37/2).
(c) Notification ofFreeTrade Agreements between theCzech Republic andtheSlovak Republic
ontheonesideandBulgaria, Estonia, Latvia, Lithuania andtheState ofIsrael ontheother
(G/C/M/19)
19.3 Atitsmeeting of14April 1997, theCouncil tooknoteoftheinformation provided onthese
Agreements bytherepresentative oftheCzech Republic speaking alsoonbehalf oftheother parties
totheAgreements.
(d) Agreement between European Community andtheFaroe Islands (Government ofDenmark)
(G/C/M/20)
19.4 Atitsmeeting of11June1997, theCouncil tooknoteofthenotification (WT/REG21/N/2)
from theparties totheAgreement. TheCouncil adopted theterms ofreference under which the
Committee onRegional Trade Agreements should examine thisAgreement (WT/REG21/1/Rev.1).
(e) Free-Trade Agreement between theCzech Republic andtheRepublic ofBulgaria (G/C/M/20)
19.5 Atitsmeeting of11June1997, theCouncil tooknoteofthenotification (WT/REG41/N/1)
from theparties totheAgreement. TheCouncil adopted theterms ofreference under which the
Committee onRegional Trade Agreements should examine thisAgreement (WT/REG41/1).
(f) Free-Trade Agreement between theSlovak Republic andtheRepublic ofBulgaria (G/C/M/20)
19.6 Atitsmeeting of11June1997, theCouncil tooknoteofthenotification (WT/REG42/N/1)
from theparties totheAgreement. TheCouncil adopted theterms ofreference under which the
Committee onRegional Trade Agreements should examine thisAgreement (WT/REG42/1).G/L//213
Page12
(g) Israel-Turkey FreeTrade Area Agreement (G/C/M/20)
19.7 Atitsmeeting of11June1997, theCouncil wasinformed thatthenotification ontheIsrael-
Turkey FreeTrade AreaAgreement would besubmitted bytheparties totheAgreement inthenear
future.
(h) Euro-Mediterranean Interim Association Agreement onTrade andCo-operation between the
European Community andthePalestine Liberation Organization forthebenefit ofthePalestinian
Authority oftheWest Bank (G/C/M/22)
19.8 Atitsmeeting of21July1997, theCouncil tooknoteofthenotification (WT/REG43/N/1 and
Corr.1) fromtheparties totheAgreement. TheCouncil adopted theterms ofreference under which
theCommittee onRegional Trade Agreements should examine thisAgreement (WT/REG43/1). The
representative ofIsrael expressed reservations withthesubstance oftheAgreement itself aswellas
itsinclusion intheCouncil 'sagenda. Therepresentative ofEgypt stated thattherewasnoinconsistency
between thisinterim Agreement andobligations deriving from other Agreements.
(i) FreeTrade Agreement between Canada andChile (G/C/M/23)
19.9 Atitsmeeting of6October 1997, theCouncil tooknoteofthenotification (WT/REG38/N/1
andAdd.1) fromtheparties totheAgreement. TheCouncil adopted theterms ofreference under which
theCommittee onRegional Trade Agreements should examine thisAgreement (WT/REG38/1).
(j) FreeTrade Agreement between Romania andtheRepublic ofMoldova (G/C/M/23)
19.10 Atitsmeeting of6October 1997, theCouncil tooknoteofthenotification (WT/REG44/N/1)
from theparties totheAgreement. TheCouncil adopted theterms ofreference under which the
Committee onRegional Trade Agreements should examine thisAgreement (WT/REG44/1 and2).
(k) InterimAgreementbetweentheEuropeanCommunitiesandtheRepublicofSlovenia(G/C/M/28)
19.11 Atitsmeetingof19November1997,theCounciltooknoteofthenotification(WT/REG32/N/1)
from theparties totheAgreement. TheCouncil adopted theterms ofreference under which the
Committee onRegional Trade Agreements should examine thisAgreement (WT/REG32/1).
(l) Free Trade Agreement between theRepublic ofSlovenia andtheRepublic ofBulgaria
(G/C/M/28)
19.12 Atitsmeetingof19November1997,theCounciltooknoteofthenotification(WT/REG33/N/1)
from theparties totheAgreement. TheCouncil adopted theterms ofreference under which the
Committee onRegional Trade Agreements should examine thisAgreement (WT/REG33/1).
(m) FreeTrade Agreement between theCzech Republic andtheRepublic ofLatvia (G/C/M/28)
19.13 Atitsmeeting of19November 1997, theCouncil tooknoteofthenotification made bythe
Czech Republic (WT/REG45/N/1) onthisAgreement. TheCouncil adopted theterms ofreference
under which theCommittee onRegional Trade Agreements should examine thisAgreement
(WT/REG45/1).G/L//213
Page13
(n) FreeTrade Agreement between theCzech Republic andtheRepublic ofLithuania (G/C/M/28)
19.14 Atitsmeeting of19November 1997, theCouncil tooknoteofthenotification made bythe
Czech Republic (WT/REG46/N/1) onthisAgreement. TheCouncil adopted theterms ofreference
under which theCommittee onRegional Trade Agreements should examine thisAgreement
((WT/REG46/1).
(o) FreeTrade Agreements between theSlovak Republic ontheonesideandtheRepublics of
Latvia andLithuania ontheother (G/C/M/28)
19.15 Atitsmeeting of19November 1997, theCouncil wasinformed thatthetexts ofthese
Agreements hadbeennotified totheSecretariat.
20. Issues raised under "other business" concerning Members 'trade practices
(a) Korea -Tariff Measures byEcuador against certain suppliers (G/C/M/16)
20.1 AttheCouncil meeting of29November 1996, therepresentative ofKorea expressed concern
atthetariffincrease byEcuador onarange oftextile products imported fromKorea andotherMembers.
TheCouncil tooknoteofthisstatement andofthestatements made bytherepresentatives ofHong Kong,
China andEcuador.
(b) EC-Korea 's"Frugality Campaign" (G/C/M/18)
20.2 AttheCouncil meeting of11March 1997, therepresentative oftheEuropean Communities
expressed concern thatthe"frugality campaign" which hadbeenrunning inKorea since mid-1996 had
intensified. TheCouncil tooknoteofthisstatement andofthestatements made bytherepresentatives
oftheUnited States, India andKorea.
(c) United States -USRequest forConsultations concerning Restrictive Business Practices inthe
Japanese Photographic FilmandPaper Market (G/C/M/20)
20.3 AttheCouncil meeting of11June1997, therepresentative oftheUnited States urged Japan
toenterintoconsultations without further delay pursuant totheCONTRACTING PARTIES Decision
on"Restrictive Business Practices: Arrangements forConsultations" (BISD 9S/38). TheCouncil took
noteofthisstatement andofthestatements made bytherepresentatives oftheEuropean Communities
andJapan.
(d) United States -Brazil Import Financing Restrictions (G/C/M/20)
20.4 AttheCouncilmeetingof11June1997,therepresentativeoftheUnitedStatesexpressedconcern
atBrazil 'simport financing restrictions. TheCouncil tooknoteofthisstatement andofthestatements
made bytherepresentatives ofSwitzerland, theEuropean Communities andBrazil.
(e) Korea -Price Range orRange ofValue System applied byArgentina (G/C/M/20)
20.5 AttheCouncil meeting of11June1997, therepresentative ofKorea expressed concern atthe
"Price Range orRange ofValue System" which hadrecently beenintroduced byArgentina. TheCouncil
tooknoteofthisstatement andofthestatement made bytherepresentative ofArgentina.G/L//213
Page14
(f) Korea -USidentification ofKorea 's"barriers" toimported automobiles asaPriority Foreign
Country Practice (G/C/M/23)
20.6 AttheCouncil meeting of6October 1997, therepresentative ofKorea expressed concern at
theUSGovernment 'sdecision toidentify Korea 's"barriers" toimported automobiles asaPriority
Foreign Country Practice under theso-called "super 301"procedures. TheCouncil tooknoteofthis
statement.
(g) United States -Mercosur Common External Tariff (G/C/M/28)
20.7 AttheCouncil meeting of19November 1997, therepresentative oftheUnited States expressed
concern atMercosur 'sreported intention toincrease itscommon external tariff by3percent. The
Council tooknoteofthisstatement andofthestatement made bytherepresentative ofUruguay.
21. Consideration ofannual reports ofsubsidiary bodies oftheCouncil forTrade inGoods
(G/C/M/28)
21.1 Atitsmeeting of19November 1997, theCouncil tooknoteofthereports fromthefollowing
subsidiary bodies: Committees onAnti-Dumping Practices (G/L/204), Customs Valuation (G/L/205),
Import Licensing (G/L/203), Safeguards (G/L/200), Sanitary andPhytosantiary Measures (G/L/197),
SubsidiesandCountervailingMeasures(G/L/201),TechnicalBarrierstoTrade(G/L/207),Trade-Related
Investment Measures (G/L/193), theIndependent Entity (G/L/208), theTextiles Monitoring Body
(G/L/206), theWorking Party onState Trading Enterprises (G/L/198).
21.2 Atitsresumed meeting of8December 1997, theCouncil tooknoteofthereports from the
Committees onAgriculture (G/L/211), Market Access (G/L/215), Rules ofOrigin (G/L/210), the
Committee ofParticipants ontheExpansion ofTrade inInformation Technology Products (G/L/216).
TheCouncil alsotooknoteofthereport oftheWorking Party onPreshipment Inspection (G/L/214),
approvedtherecommendationscontainedtherein,andagreedtoforwardthereporttotheGeneralCouncil
foradoption.
22. Adoption oftheannual report oftheCouncil forTrade inGoods totheGeneral Council
(G/C/M/28)
22.1 Atitsmeeting of19November 1997, theCouncil examined theannual report (1997) ofthe
Council forTrade inGoods (G/C/W/98) totheGeneral Council, andagreed toconsider itforadoption
atitsresumed meeting of8December 1997when anupdated version ofthereport11would beavailable
reflecting thework done bytheCouncil atits7and13November 1997 meetings, andthepresent
meeting.
22.2 Atitsresumed meeting of8December 1997, theCouncil adopted theannual report contained
indocument G/C/W/98/Rev.1 subject totheupdating thatneeded tobedoneinorder toreflect the
work oftheCouncil atthatmeeting12.
11Circulated indocument G/C/W/98/Rev.1.
12Subsequently circulated indocument G/L/213.