RESTRICTED
WORLD TRADE G/C/W/52
4September 1996
ORGANIZATION(96-3470)
COUNCIL FOR TRADE INGOODS
19September 1996
CARIBCAN
Draft Decision
Taking noteoftherequest oftheGovernment ofCanada forarenewal ofthewaiver fromits
obligations under paragraph 1ofArticle IoftheGeneral Agreement1forprovision ofduty-free treatment
forimports ofeligible products originating inbeneficiary Caribbean countries asprovided forinSection
53oftheCustoms Tariff, R.S., c.41(3rdSupp.), inaccordance withtheCARIBCAN initiative
(hereinafter referred toas"CARIBCAN"); such waiver having been initially granted bythe
CONTRACTING PARTIES OFTHE GATT 1947 on28November 1986 fortheperiod from 15
June1986 until15June1998 butnowexpiring on31December 1996 under paragraph 2ofthe
Understanding inRespect ofWaivers ofObligations Under theGeneral Agreement onTariffs andTrade
1994;
Bearing inmindthe1979Decision onDifferential andMore Favourable Treatment, Reciprocity
andFuller Participation ofDeveloping Countries;
Considering thattheobjective ofgranting preferential tariff treatment under CARIBCAN is
toenhance theCommonwealth Caribbean 'sexisting trade andexport earnings andthereby promote
economic development aswellastopromote newinvestment opportunities andencourage enhanced
economic integration andco-operation within theregion;
Consideringalsothattheduty-freetreatmentprovidedunderCARIBCANisdesignedtopromote
theexpansion oftrade andeconomic development ofbeneficiaries inamanner consistent withthe
objectives oftheGATT 1994andwiththetrade, financial anddevelopment needs ofthebeneficiaries
andnottoraisebarriers ortocreate difficulties forthetrade ofother Members;
Considering, moreover, thattheduty-free treatment provided under CARIBCAN should not
prejudice theinterests ofother Members notbenefitting from suchtreatment andthatitisexpected
thattheextension ofsuchduty-free treatment willnotcause asignificant diversion ofCanada 'simports
ofproducts eligible forduty-free treatment under CARIBCAN originating inMembers whoarenot
beneficiaries;
Having regard totheassurances thattheGovernment ofCanada does notenvisage the
introduction ofanydiscriminatory non-tariff measure, inpursuance ofCARIBCAN, which would
adversely affect thetrade ofMembers whoarenotbeneficiary countries;
1G/L/100
./.G/C/W/52
Page2
Considering thattheduty-free treatment provided under CARIBCAN bytheGovernment of
Canada shallnotconstitute animpediment tothereduction orelimination oftariffs andotherrestrictions
totrade onamost-favoured-nation basis;
Considering ,furthermore, thattheduty-free treatment provided under CARIBCAN bythe
Government ofCanada shallnotadversely affect themaintenance, operation andimprovement ofthe
General Preferential Tariff (GPT) ofCanada;
Noting ,furthermore, theassurances given bytheGovernment ofCanada thatitwill,upon
request, promptly enter intoconsultations withanyMembers onmatters falling under theprovisions
oftheGATT 1994 andrelated totheapplications ofthisDecision;
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
IoftheGATT 1994 shallbewaived until31December 2006, totheextent necessary topermit the
Government ofCanada toprovide duty-free treatment toeligible imports ofCommonwealth Caribbean
countries benefiting from theprovision ofCARIBCAN, without being required toextend thesame
duty-free treatment tolikeproducts ofanyother Member.
2. Suchduty-free treatment shallbedesigned nottoraisebarriers orcreate undue difficulties for
thetrade ofother Members andprovides nobasis forestablishing rights ofaccess totheCanadian
market onthebasis ofdiscriminatory non-tariff measures.
3. TheGovernment ofCanada willsubmit totheGeneral Council anannual report onthe
implementation ofthetrade-related provisions ofCARIBCAN withaviewtofacilitating theannual
review provided forinparagraph 4ofArticle IXoftheWTO Agreement. TheGovernment ofCanada
shallpromptly notify Members ofanychanges inthelegislation covered bythiswaiver andanytrade-
related measure taken under CARIBCAN, inparticular anymodifications inthestatus ofeligible imports
andtheduty-free treatment thereof, andshallfurnish them withalltheinformation theymaydeem
appropriate relating tosuchaction.
4. TheGovernment ofCanada will,upon request, promptly enter intoconsultations withany
interested Member withrespect toanydifficulty ormatter thatmayariseasaresult ofimplementation
ofthetrade related provisions ofCARIBCAN; where aMember considers thatanybenefit accruing
toitunder theGATT 1994 maybeorisbeing impaired unduly asaresult ofsuchimplementation,
suchconsultation shallexamine thepossibility ofaction forasatisfactory adjustment ofthematter.
ThisDecision doesnotaffect Members 'rights assetforthintheUnderstanding inRespect ofWaivers
ofObligations under theGATT 1994.