RESTRICTED
WORLD TRADE WT/REG/W/23
5February 1998
ORGANIZATION(98-0428)
Committee onRegional Trade Agreements
REPORTING ONREGIONAL TRADE AGREEMENTS
Note bytheChairman
Inthelight ofviews expressed bydelegations intheCommittee onRegional Trade
Agreements (CRTA), itisproposed thattheCRTA fulfil itsmandate under item1(b)ofitsterms of
reference1byadopting recommendations totheCouncil forTrade inGoods, theCouncil forTrade
inServices andtheCommittee onTrade andDevelopment. Draft recommendations toeachofthe
three bodies appear inAnnexes 1-3tothisnote.
These recommendations aregeared toward thefollowing:
- standardizing, asmuch aspossible, thepresentation ofreports onregional trade
agreements toWTO Members;
- ensuring theprovision ofconsistent information totheCRTA ondevelopments in
regional trade agreements, which maybeuseful totheCommittee 'swork under its
terms ofreference; and
- operationalizing theimplementation ofreporting requirements contained inWTO legal
texts.
Itistobenoted thatthenature ofthese recommendations isessentially procedural andthat
theirimplementation would notentail anychange inMembers 'legalrights andobligations.
1"[T]o consider howtherequired reporting ontheoperation ofsuch[regional trade] agreements should be
carried outandmake appropriate recommendations totherelevant body".WT/REG/W/23
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ANNEX 1
REPORTING ONREGIONAL TRADE AGREEMENTS
Draft Recommendation totheCouncil forTrade inGoods
Regional trade agreements whose parties must report totheCouncil forTrade inGoods are
customs unions, free-trade areas andinterim agreements leading totheformation ofacustoms union
orafree-trade area, notified under Article XXIV:7(a) oftheGATT 1994. After theexamination of
theregional tradeagreements inaccordance withparagraph 7oftheUnderstanding ontheInterpretation
ofArticle XXIV oftheGATT 1994 (theUnderstanding), carried outbytheCommittee onRegional
Trade Agreements, parties totheagreements arerequired toprovide additional information/reports
inthefollowing cases:
Inthecaseofinterim agreements undergoing "substantial changes" intheplanand
schedule, parties should notify those changes (paragraph 9oftheUnderstanding).
Inthecaseofcustoms unions andfree-trade areas, biennial reports aredueonthe
"operation oftherelevant agreement" (first sentence ofparagraph 11ofthe
Understanding).
Inthecaseofcustoms unions andfree-trade areas, "[a]ny significant changes and/or
developments" aretobereported "astheyoccur" (lastsentence ofparagraph 11of
theUnderstanding).
Furthermore, inthecaseofinterim agreements forwhich afurther review isforeseen (under
paragraph 8oftheUnderstanding), parties might alsoberequired tosupply supporting information.
TheCommittee onRegional Trade Agreements recommends, inthecontext ofitem1(b)of
itsterms ofreference, thattheCouncil forTrade inGoods adopt thefollowing procedures, asgeneral
guidelines, withrespect tobiennial reports/information onregional trade agreements submitted toit:
1. Such reports/information willalsobemade available totheCommittee onRegional Trade
Agreements, since theyaredeemed tobeparticularly relevant toitsspecialized tasks. Thiswillserve
toenhance transparency onhowregional trade agreements areproceeding andasaninput tothe
Committee 'swork under item1(d)ofitsterms ofreference.
2. Where appropriate, thereports should include adescription ofdevelopments inregional trade
agreements notcontained intheinformation previously presented totheGATT/WTO1andtradestatistics
covering thelastrepresentative period, forbothtrade among parties totheagreement andtrade with
thirdparties.2,3
1Particular attention should begiven totheinternal process ofliberalization; tochanges introduced with
respect tothetreatment ofthird parties; andtomodifications totherules oftheagreements.
2Incaseparticular products were excluded from, orpartially covered by,theregional liberalization process,
therelevant datashould alsobeprovided.
3Statistical information could bebased onrelevant annual datasubmitted totheSecretariat bytheparties
inaccordance withtheGeneral Council Decision on16July1997 (WT/L/225).WT/REG/W/23
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3. Where appropriate, parties toregional trade agreements maymake use,inthepresentation
ofreports, oftheStandard Format forInformation onRegional Trade Agreements (document
WT/REG/W/6). Thiswould facilitate boththetaskofparties inreporting ontheiragreements and
thetaskofWTO Members inconsidering thereports.
4. TheCouncilforTradeinGoodsandtheCommitteeonRegionalTradeAgreementswillregularly
receive anupdated time-table forthesubmission ofbiennial reports onregional trade agreements, to
beprepared bytheSecretariat incoordination withtheMembers involved.
Theabove procedures willnotinanywayaffect thelegal rights andobligations ofWTO
Members.WT/REG/W/23
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ANNEX 2
REPORTING ONECONOMIC INTEGRATION AGREEMENTS
Draft Recommendation totheCouncil forTrade inServices
Economic integration agreements reporting totheCouncil forTrade inServices areagreements
liberalizing tradeinservices among theparties, notified under Article V:7(a) oftheGATS. Inaddition
toinitial notification andprovision ofrelevant data,asrequested, parties toanagreement arerequired
to"report periodically ...onitsimplementation" inthecaseofanagreement which isimplemented
onthebasis ofatime-frame (GATS Article V:7(b)).
Further, when agreements undergo "anysignificant modifications", parties should notify the
changes and"also make available ...such relevant information asmayberequested" (GATS
Article V:7(a)).
TheCommittee onRegional Trade Agreements recommends, inthecontext ofitem1(b)of
itsterms ofreference, thattheCouncil forTrade inServices adopt thefollowing procedures, asgeneral
guidelines, withrespect toreports/information oneconomic integration agreements submitted toit:
1. Suchreports/informationwillalsobeavailabletotheCommitteeonRegionalTradeAgreements,
asaninput totheCommittee 'swork under item1(d)ofitsterms ofreference.
2. Where appropriate, adescription ofdevelopments ineconomic integration agreements not
contained intheinformation previously presented totheWTO1andtrade statistics covering thelast
representative period, forbothtradeamong parties totheagreement andtradewiththirdparties, should
beprovided.2
3. Where appropriate, parties toeconomic integration agreements maymake use,inpresenting
information, oftheStandard Format forInformation onEconomic Integration Agreements onServices
(document WT/REG/W/14). Thiswould facilitate boththetaskofparties inreporting ontheir
agreements andthetaskofWTO Members inconsidering thereports.
Theabove procedures willnotinanywayaffect thelegal rights andobligations ofWTO
Members.
1Incaseparticular sectors and/or modes ofdelivery were excluded from, oronlypartially covered by,the
regional liberalization process, therelevant datashould alsobeprovided.
2Statistics onthenational product atthecountry level, broken down bythedifferent services sectors orsub-
sectors, would alsobedesirable.WT/REG/W/23
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ANNEX 3
REPORTING ONPREFERENTIAL ARRANGEMENTS
Draft Recommendation totheCommittee onTrade andDevelopment
Regional tradeagreements reporting totheCommittee onTrade andDevelopment areregional
orglobal preferential arrangements entered intoamongst developing countries, notified under
paragraph 4(a)oftheDecision onDifferential andMore Favourable Treatment, Reciprocity andFuller
Participation ofDeveloping Countries (theEnabling Clause). After initial notification andprovision
ofappropriate data, parties tosuch arrangements arerequired tonotify andsubmit appropriate
information when "taking action tointroduce modification orwithdrawal ofthedifferential andmore
favourable treatment soprovided" (paragraph 4(a)oftheEnabling Clause).
TheCommittee onRegional Trade Agreements recommends, inthecontext ofitem1(b)of
itsterms ofreference, thattheCommittee onTrade andDevelopment adopt thefollowing procedures,
asgeneral guidelines, withrespect toinformation onpreferential arrangements submitted toit:
1. Suchinformation willalsobeavailable totheCommittee onRegional Trade Agreements, as
aninput totheCommittee 'swork under item1(d)ofitsterms ofreference.
2. Where appropriate, details ondevelopments inpreferential arrangements notcontained inthe
information previously presented totheGATT/WTO should beprovided. Summary trade statistics
covering thelastrepresentative period, forbothtrade among parties tothearrangements andtrade
withthirdparties, would alsobedesirable.1
3. Where appropriate, parties topreferential arrangements maymake use,inthepresentation of
theinformation, oftheStandard Format forInformation onRegional Trade Agreements (document
WT/REG/W/6). Thiswould facilitate boththetaskofparties inpresenting information ontheir
arrangements andthetaskofWTO Members inconsidering thisinformation.
Theabove procedures willnotinanywayaffect thelegal rights andobligations ofWTO
Members.
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1Statistical information could bebased onrelevant annual datasubmitted totheSecretariat bytheparties
inaccordance withtheGeneral Council Decision on16July1997 (WT/L/225).