RESTRICTED
WORLD TRADE G/C/W/56
9September 1996
ORGANIZATION(96-3497)
Original: English COUNCIL FOR TRADE INGOODS
19September 1996
SOUTH AFRICA -PARAGRAPH 4OFARTICLE IOFGATT 1994
Draft Decision
Taking noteoftherequest1fromtheGovernment oftheRepublic ofSouth Africa forarenewal
ofthewaiver modifying itsobligations under paragraph 4ofArticle IoftheGeneral Agreement on
Tariffs andTrade (hereinafter referred toas"GATT") 1994, withrespect todatesapplicable toMembers
forpurposes ofparagraph 4ofthatArticle andAnnex GtoGATT 1994, which waiver wasoriginally
granted bytheCONTRACTING PARTIES toGATT 1947 (hereinafter referred toasthe
CONTRACTING PARTIES) on19November 19602;
Considering thatfootnote 1tosubparagraph 1(b)(iii)oftheGeneral Agreement onTariffs
andTrade 1994ascontained intheAgreement Establishing theWorld Trade Organization (hereinafter
referred toas"theWTO Agreement") requires theMinisterial Conference toestablish atitsfirstsession
arevised listofwaivers granted under Article XXV ofGATT 1947 andstillinforce onthedateof
entry intoforce oftheWTO Agreement;
Bearing inmindthatbyaDecision of31January 19953theGeneral Council established alist
ofwaivers existing attheentry intoforce oftheWTO Agreement, which included thewaiver granted
toSouth Africa on19November 1960;
Taking intoaccount thatparagraph 2oftheUnderstanding inRespect ofWaivers ofObligations
under GATT 1994 provides thatanywaiver ineffect onthedateoftheentry intoforce ofthe
WTO Agreement shall terminate, unless extended inaccordance withtheprocedures setoutin
paragraph 1oftheaforementioned understanding andthose ofArticle IXoftheWTO Agreement,
onthedateofitsexpiry ortwoyears from thedateofentry intoforce oftheWTO Agreement,
whichever isearlier;
Considering thatbyaDecision of3December 19554andsubsequent related actions, the
CONTRACTINGPARTIESacceptedtheincreaseinmarginsofpreferenceresultingfromtheapplication
ofthe1955 tariff ofMalawi andZimbabwe andtheir1955 Agreements withSouth Africa asnot
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increasing theoverall levelofpreferences accorded bythethreecountries involved, andmade provision
that,following thecompletion oftheadjustments permitted bythe1955Decision, theCONTRACTING
PARTIES would establish newdates forthepurposes ofparagraph 4ofArticle IofGATT 1994 for
South Africa inrespect ofproducts ofMalawi andZimbabwe;
Bearing inmindthatanumber ofadjustments inmargins ofpreference havebeenmade under
the1955Decision, andthattheperiods thereunder formaking anyfurther adjustments under theterms
ofthatdecision haveexpired;
Having regard totheGuiding Principles tobefollowed inconsidering applications forwaivers
adopted on1November 1956, theUnderstanding inRespect ofWaivers ofObligations under
GATT 1994, andparagraphs 3and4ofArticle IXoftheWTO Agreement;
Members,actingpursuanttotheprovisionsofparagraph3ofArticleIXoftheWTOAgreement,
Decide that
1. Subject totheterms andconditions setouthereunder, theprovisions ofparagraph 4ofArticle I
ofGATT 1994 shall bemodified with respect totheGovernment ofSouth Africa until
31December 1997, totheextent necessary topermit theGovernment ofSouth Africa tomake the
following changes inthedatesapplicable toitforthepurposes ofparagraph 4ofArticle IandAnnex G
toGATT 1994:
inrelation toproducts ofMalawi andZimbabwe: 30June1960, provided thatthetariff
adjustments made effective bySouth Africa on1July1960 pursuant totheDecision of
3December 1995 shallbedeemed, forthispurpose, tohavebeenineffect onthatdate,
provided itsatisfies theGeneral Council bymeans ofsuchconsultations asmaybeheldpursuant to
thisDecision, thatitsactions intheexercise ofthiswaiver areconsistent withtheintent ofGATT 1994.
2. TheGovernment ofSouth Africa shall, upon request, promptly enter intoconsultations with
anyinterested Member withrespect toanydifficulty ormatter thatmayariseasaresult ofthewaiver,
where aMember considers thatanybenefit accruing toitunder GATT 1994maybeorisbeing impaired
unduly asaresult ofthewaiver, andsuchconsultation shallexamine thepossibility ofaction fora
satisfactory resolution oftheproblem ormatter. ThisDecision doesnotaffect Members 'rights as
setforth intheUnderstanding inrespect ofWaivers ofObligations under GATT 1994.