WORLD TRADE
ORGANIZATIONWT/L/433
23 November 2001
(01-5986)
ACCESSION OF THE SEPARATE CUSTOMS TERRITORY OF
TAIWAN, PENGHU, KINMEN AND MATSU
Decision of 11 November 2001
The Ministerial Conference,
Having regard to  paragraph 2 of Article XII and paragraph 1 of Article IX of the Marrakesh
Agreement Establishing the World Trade Organi zation, and the Decision-Making Procedures under
Articles IX and XII of the Marrakesh Agreement Establishing the World Trade Organization agreed
by the General Council (WT/L/93),
Taking note  of the application of the Separate Customs Territory of Taiwan, Penghu, Kinmen
and Matsu for accession to the Marrakesh Agreement Establishing the World Trade Organization
dated 7 December 1995,
Noting  the results of the negotiations directed toward the establishment of the terms of
accession of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu to the Marrakesh
Agreement Establishing the World Trade Organi zation and having prepared a Protocol on the
Accession of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu,
Decides  as follows:
The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu may accede to the
Marrakesh Agreement Establishing the World Trade Organization on the terms and
conditions set out in the Protocol annexed to this Decision.
_______________WT/L/433
Page 2
PROTOCOL OF ACCESSION OF THE SEPARATE CUSTOMS
TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU
The World Trade Organization (hereinafter referred to as the "WTO "), pursuant to the approval
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement
Establishing the World Trade Organization (hereinafter referred to as the "WTO Agreement "), and the
Separate Customs Territory of Taiwan, Penghu, Ki nmen and Matsu (hereinafter referred to as "Chinese
Taipei "),
Taking note of the Report of the Working Party on the Accession of Chinese Taipei to the WTO
Agreement reproduced in document WT/ACC/TPKM/ 18, dated 5 October 2001 (hereinafter referred to
as the "Working Party Report"),
Having regard to the results of the negotiatio ns on the accession of Chinese Taipei to the WTO
Agreement,
Agree as follows:
PART I -  GENERAL
1. Upon entry into force of this Protocol pursuant to paragraph 10, Chinese Taipei accedes to the
WTO Agreement pursuant to Article XII of that Agreement and thereby becomes a Member of the
WTO.
2. The WTO Agreement to which Chinese Taipei accedes shall be the WTO Agreement, including
the Explanatory Notes to that Agreement, as rectif ied, amended or otherwise modified by such legal
instruments as may have entered into force before th e date of entry into force of this Protocol.  This
Protocol, which shall include the commitments referred to in paragraph 224 of the Working Party
Report, shall be an integral part of the WTO Agreement.
3. Except as otherwise provided for in para graph 224 of the Working Party Report, those
obligations in the Multilateral Trade Agreements  annexed to the WTO Agreement that are to be
implemented over a period of time starting with the entry into force of that Agreement shall be
implemented by Chinese Taipei as if it had accepted that Agreement on the date of its entry into force.
4. The Special Exchange Agreement between the WTO and Chinese Taipei reproduced in
Annex II to this Protocol forms an integral part of this Protocol.
5. Chinese Taipei shall at the time of its accessi on to the Marrakesh Agreement Establishing the
World Trade Organization (WTO Agreement) accept the Plurilateral Trade Agreement on Trade in Civil
Aircraft listed in Annex 4 of the WTO Agreement.
6. Chinese Taipei may maintain a measure inconsistent with paragraph 1 of Article II of the GATS
provided that such a measure was recorded in the li st of Article II Exemptions  annexed to this Protocol
and meets the conditions of the Annex to the GATS on Article II Exemptions.
PART II - SCHEDULES
7. The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of
Concessions and Commitments annexed to th e General Agreement on Tariffs and Trade 1994
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Commitments annexed to the
General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to Chinese Taipei.
The staging of the concessions and commitments listed in the Schedules shall be implemented as
specified in the relevant parts of the respective Schedules.WT/L/433
Page 3
8. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date of
that Agreement, the applicable date in respect of the Schedules of Concessions and Commitments
annexed to this Protocol shall be the date of entry into force of this Protocol.
PART III - FINAL PROVISIONS
9. This Protocol shall be open for acceptance, by signature or otherwise, by Chinese Taipei until
31 March 2002.
10. This Protocol shall enter into force on the thirtieth day following the day upon which it shall
have been accepted by Chinese Taipei.
11. This Protocol shall be deposited with the Dire ctor-General of the WTO.  The Director-General
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by
Chinese Taipei thereto pursuant to paragraph 9 to  each Member of the WTO and to Chinese Taipei.
This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter
of the United Nations.
Done at Doha  this eleventh day of November  two thousand and one, in a single copy in the
English, French and Spanish languages, each text being authentic, except that a Scheduleannexed hereto may specify that it its authentic in only one of these languages.
__________WT/L/433
Page 4
ANNEX I
SCHEDULE CLIII - SEPARATE CUSTOMS TERRITORY
OF TAIWAN, PENGHU, KINMEN AND MATSU
Authentic only in the English language.
(Circulated in documents WT/ACC/TPKM/18/Add.1 and WT/MIN(01)/4/Add.1.)
_______________
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES
LIST OF ARTICLE II EXEMPTIONS
Authentic only in the English language.
(Circulated in documents WT/ACC/TPKM/18/Add.2 and WT/MIN(01)/4/Add.2.)WT/L/433
Page 5
ANNEX II
SPECIAL EXCHANGE AGREEMENT
BETWEEN
THE SEPARATE CUSTOMS TERRITORY OF
TAIWAN, PENGHU, KINMEN AND MATSU
AND
THE WORLD TRADE ORGANIZATION
(HEREINAFTER REFERRED TO AS THE "WTO ")
Whereas paragraph 6 of Article XV of the General Agreement on Tariffs and Trade 1994
(hereinafter referred to as the General Agreemen t 1994), provides that any WTO Member which was not
a member of the International Monetary Fund (hereinafter referred to as the "Fund ") shall, within a time
to be determined by the WTO after consultation with the Fund, become a member of the Fund, or,
failing that, enter into a special exchange agreement with the WTO;
Whereas paragraph 7 of the said Article provides  that such special exchange agreement shall
provide to the satisfaction of the WTO  that the objective of the General Agreement 1994 will not be
frustrated as a result of action in exchange matters by the Member in question, and taking into account
that the terms of such an agreement shall not impose obligations inconsistent with those imposed by the
Fund;
Whereas the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (hereinafter
referred to as "Chinese Taipei ") desires to accede to the Marrakesh Agreement Establishing the World
Trade Organization (hereinafter referred to as the "WTO Agreement ") in pursuance of Article XII
thereof;
The World Trade Organization
and
Chinese Taipei, acting through its representative duly authorized for this purpose,Hereby agree as follows:
ARTICLE IOrderly Exchange Arrangements
1. Chinese Taipei shall collaborate with the WTO to promote exchange rates which reflect
underlying economic fundamentals, to maintain orde rly exchange arrangements with other Members of
the WTO, to avoid competitive exchange alterations, a nd to assist, in accordance with Articles II and III
of this Special Exchange Agreement,  in the elimination of restrictions on the making of international
payments and transfers within the multilateral sy stem, and to promote international trade and
investment.
2. Recognizing that the essential purpose of the in ternational monetary system is to provide a
framework that facilitates the exchange of goods, services, and capital among countries, and that helps
sustain non-inflationary economic growth, Chinese Taipei undertakes to assure orderly exchange
arrangements and to promote a stable system of exch ange rates.  In particular, Chinese Taipei shall:
(i) Endeavour to direct its economic and financial policies toward the objective of
fostering sustained, non-inflationary economic growth with macroeconomic stability;
(ii) Permit exchange rates to reflect underlying economic and financial conditions;WT/L/433
Page 6
(iii) Avoid manipulating exchange rates or th e international monetary system in order to
prevent effective balance-of-payments adju stment or to gain an unfair competitive
advantage over other members; and
(iv) Follow exchange policies compatible with the undertakings under this Article.
ARTICLE IIAvoidance of Restrictions on Current Payments and Multiple Currency Practices
1. Chinese Taipei shall not, without the approval  of the WTO, impose restrictions on the making
of payments and transfers related to current account transactions.
2. Chinese Taipei shall not engage in, nor pe rmit its Ministry of Finance, Central Bank,
Stabilization Fund, or other agency, to engage in an y discriminatory currency arrangements or multiple
currency practices except as approved by the WTO.
3. Exchange contracts which involve the currency of any Member or Chinese Taipei and which
are contrary to the exchange control regulations of that Member or Chinese Taipei maintained or
imposed consistently with the Articles of Agreemen t of the Fund or with the provisions of a special
exchange agreement entered into pursuant to paragr aph 6 of Article XV of the General Agreement 1994
or this Special Exchange Agreement, shall be unenforceab le in the territories of Chinese Taipei or in the
territories of any Member.
ARTICLE III
Controls of Capital Transfers
1. Chinese Taipei undertakes that it shall seek to avoid the imposition of capital controls to address
balance-of-payments and macroeconomic objectives.  However, Chinese Taipei may exercise such
controls as are necessary to regulate internat ional capital movements, if these movements are
destabilizing to the balance of payments or jeopa rdize macroeconomic stability, so long as Chinese
Taipei does not exercise these controls in a manner which will restrict payments for current transactions
or which will unduly delay transfers of funds in settlement of commitments.
2. Chinese Taipei undertakes that measures affec ting capital flows will be in accordance with this
Special Exchange Agreement, the General Agreement 1994, and the WTO Agreement.
3. If Chinese Taipei institutes new capital contro ls or tightens existing capital controls, it shall
immediately after instituting or tightenin g such controls consult with the WTO.
ARTICLE IV
Restrictions on Payments - General
1. In the event that Chinese Taipei, with the approval of the WTO, as provided in Article II, or
consistent with consultations with the WTO, as provided in Article III, as the case may be, imposes a
measure to restrict payments and transfers fo r balance-of-payments and macroeconomic stability
purposes, it shall:
(a) initiate good faith consultations with the WTO on economic adjustment measures to address the
fundamental underlying economic problems giving rise to the measures; andWT/L/433
Page 7
(b) adopt or maintain economic policies consistent with such consultations.
2. A measure adopted or maintained under Article II of this Special Exchange Agreement shall:
(a) avoid unnecessary damage to the commercial, economic or financial interests of another
Member;
(b) be temporary and be phased out within a clearly-specified time-frame;(c) be the least burdensome type of action available;(d) be consistent with this Special Exchange Agreement and the economic policies adopted
pursuant to paragraph 1(b) of this Article; and
(e) be applied on a most-favoured-nation treatment basis.3. A measure adopted or maintained under Article III of this Special Exchange Agreement shall to
the extent practicable conform to the provisions set forth in sub-paragraphs (a) through (e) of paragraph
2 of this Article.
ARTICLE V
Furnishing of Information
1. Chinese Taipei shall furnish th e WTO with such information with in the general scope of section
5 of Article VIII of the Articles of Agreement of the International Monetary Fund as the WTO may
require in order to carry out its functions under the WTO Agreement.
2. Chinese Taipei shall be under no obligation to furn ish information in such detail that the affairs
of individuals or corporations ar e disclosed.  Chinese Taipei undertakes, however, to furnish the desired
information in as detailed and accurate a manner as is practicable.
ARTICLE VI
Miscellaneous Provisions
1. For purposes of this Special Exchange Agreement, the term "Payments for current
transactions " means payments which are not for the purpose of transferring capital, as defined by the
International Monetary Fund.
2. The WTO shall at all times have the right to  communicate its views informally to  Chinese
Taipei on any matter arising under this Agreement.
3. Whenever the WTO consults with the Fund on exchange matters or in other appropriate cases
particularly affecting Chinese Taipei, the WTO sha ll take measures, as are satisfactory to the Fund, to
ensure effective presentation of Chinese Taipei's  case to the Fund, including, without limitation, the
transmission to the Fund of any views comm unicated by Chinese Taipei to the WTO.
4. The Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO
shall apply to disputes arising under this Agreement.
5. This Agreement shall enter into force on the date of entry into force of the Protocol of
Accession of Chinese Taipei to the WTO.
__________