RESTRICTED
WORLD TRADE G/C/M/22
18September 1997
ORGANIZATION(97-3721)
Council forTrade inGoods
21July1997
MINUTES OFTHE MEETING
Held intheCentre William Rappard
on21July1997
Chairperson: Mr.T.Johannessen (Norway)
Themeeting wasconvened byWTO/AIR/644. Theproposed agenda contained indocument
G/C/W/84 wasadopted asfollows, withtheinclusion ofitem6under "Other Business":
Page
1. Rectifications andModifications toSchedules ofTariff Concessions and
theirCertification ........................................ 2
- Statement bytheChairman
2. Trade Facilitation (paragraph 21oftheSingapore Ministerial Declaration
(WT/MIN(96)/DEC) ...................................... 3
- Note bytheSecretariat (G/C/W/80)
3. Draft Agreement between theWTO andtheOffice International
desEpizooties (OIE) (G/SPS/W/61) ............................ 10
4. Euro-Mediterranean Interim Association Agreement onTrade and
Co-operation between theEuropean Community andthePalestine Liberation
Organization forthebenefit ofthePalestinian Authority oftheWest Bank
andGaza Strip .......................................... 10
- Communication from theEuropean Communities (WT/REG43/N/1
andCorr.1 andWT/REG43/1)
5. Status ofnotifications under theprovisions oftheAgreements inAnnex 1A
oftheWTO Agreement (G/L/112/Add.2) ......................... 11
6. Dateofthenextmeeting ................................... 12
_________________G/C/M/22
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1. Rectifications andModifications toSchedules ofTariff Concessions andtheirCertification
- Statement bytheChairman
1.1 TheChairman provided anoverview ofthecurrent situation, asitstood withrespect tohis
ongoing informal consultations onthesubject ofrectifications andmodifications toschedules oftariff
concessions andtheircertification. Herecalled thatthedelegation ofSwitzerland hadinitially raised
theissue, butthatconsensus could notbereached onSwitzerland 'sproposal, ascontained indocument
WT/GC/W/56 -G/C/W/79. However, informal discussions hadcontinued andviews wereexchanged
inorder toarrive atapractical solution.
1.2 Onthebasis ofthese informal consultations, itappeared thatissues hadtobeconsidered in
terms ofashort-term andalong-term approach. Withrespect totheshort-term, thefollowing points
wereemphasized:1.thattheverificationandcertificationofHS96documentationshouldproceedwithout
delay; 2.thattherewasanobligation toactingoodfaithandabide bytheexisting rulesandprocedures;
3.thatMembers should utilize theexisting tools andresources tocomplete thework; 4.thatthe
Secretariat would convert theexisting electronic HS96 documentation toastandard database format;
5.thattheverification ofanumber ofschedules might havetoproceed without electronic assistance;
6.thatinorder tomonitor thesituation, periodic status-taking meetings would beconvened.
1.3 Hewasgladtonotethatattheinformal meeting of18July1997 there wasprogress reported
onanumber offronts. First, ontheshort-term issues, theremaining objections onthesubmission
ofSingapore hadbeenlifted, therefore thecertification ofthisschedule could proceed without delay.
Second, onedelegation hadmade significant progress byspecifying itsobjections oneightschedules.
Itwasnoted thatdelegations werecontinuing theirwork, anditwashoped thattheshort-term aspects
could bebrought toasuccessful conclusion inthenearfuture. Also, theSecretariat would continue
itswork sothattheschedules would beavailable inacommon electronic format, asagreed, bythe
endofJuly1997.
1.4 Atechnical butimportant point hadalsobeenraised attheinformal meeting. TheHS96
submissions were made almost twoyears ago,andthere hadbeenlaterdevelopments inrespect of
ITA, pharmaceuticals anddistilled spirits. Theschedules submitted inthese areas contained insome
cases different details thanthecorresponding entries intheHS96 schedules, andtheformer hadalready
beencertified orwould becertified shortly. Incertifying theHS96 Schedules atalaterpoint intime,
onehadtoensure thattheprevious certifications werenotoverridden. Heproposed todealwiththe
situationinthefollowingway:1.theMemberconcernedwouldnotifytheSecretariatthatthecertification
ofitsHS96 submission should proceed, butintheevent ofaconflict between recently certified schedules
(e.g.ITA, pharmaceuticals, distilled spirits) thelatter would prevail. Thiscommunication would be
circulated toMembers sothatallwould beinformed oftheactual contents ofthecertification; 2.the
certification would contain explicit language thattheattached HS96 schedule would becertified, but
intheevent ofaconflict between therecently certified schedules thelatter would prevail.
1.5 Delegations hadalsodrawn attention tothefactthatasimilar difficulty might ariseinthecontext
ofcertifying pre-Uruguay Round Schedules which were intheprocess ofbeing transposed tothe
HarmonizedSystem.ApointwasmadethatinthiscasetheUruguayRoundcommitmentswouldprevail.
Thiswasamatter which clearly needed tobetaken upwhen thelong-term elements wereaddressed.
1.6 Discussion hadalsotaken place onthelong-term elements anditwasclear thatthere were
anumber ofcomplicated issues thatwould havetobediscussed further. Among those thatemerged
from thediscussion were those related totheestablishment ofanelectronic yardstick forthefuture
verification ofloose-leaf schedules. Also, theissueofconsolidating theDecisions thatcurrently made
uptheprocedures forrectification andmodification ofschedules would needtobeaddressed. Forthe
nextinformal meeting inautumn, itwasagreed thattheSecretariat would provide anoverview oftheG/C/M/22
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situation withrespect tothevarious elements, boththose where there wasconvergence ofviews, and
those where difficulties emerged. Additionally, itwaspointed outthatifdelegations hadspecific points
toraise, thattheseshould becommunicated directly totheSecretariat sothattheycould beincorporated
infuture discussions.
1.7 Therepresentative ofSwitzerland stated thattheChairman 'sproposal concerning theproblem
ofoverriding certified concessions wasanimportant matter which would needcareful consideration.
Hisdelegation would appreciate having clarifications, inthenearfuture, onthewording andimplications
oftheproposal.
1.8 Therepresentative oftheUnited States stated thatherdelegation appreciated theactive effort
taken bytheChairman onthismatter. Inreference totherules andprocedures thatgoverned this
process, shewished tonotethatoneoftheconcerns ofherdelegation wasthelackofarequirement
forconcordance tables which slowed down thework. Shehoped thatthismatter would betaken up
infurther discussions onhowtomake practical progress.
1.9 TheChairman proposed tocarry oninformal consultations withaviewtoclarifying asmany
legal, technical andother matters before thenextmeeting oftheCouncil when thismatter would be
reverted to.
1.10 TheCouncil agreed totheChairman 'sproposal, andtooknoteofthestatements.
2. Trade Facilitation (paragraph 21oftheSingapore Ministerial Declaration (WT/MIN(96)/DEC)
- Note bytheSecretariat (G/C/W/80)
2.1 TheChairman recalled thatthisitemwasontheagenda oftheCouncil following thedirective
ofMinisters atSingapore inparagraph 21oftheSingapore Ministerial Declaration to:
"undertake exploratory andanalytical work, drawing onthework ofother international
organizations, onthesimplification oftrade procedures inorder toassess thescope forWTO
rules inthisarea".
2.2 Onthebasis ofdocument G/C/W/80, thematter wasconsidered bytheCouncil, forthefirst
time, atitsmeeting of11June1997. Thisdocument, contained acompilation bytheSecretariat of
thework already doneonthesubject oftradefacilitation inother international organizations, including
certainnon-governmentalorganizations.Followinganin-depthdiscussionofthissubjectatthatmeeting,
theCouncil agreed, attherequest ofcertain delegations, toputthismatter ontheagenda ofthepresent
meeting. Heatthattime, hadalsoencouraged delegations tomake contributions tobuildontheprocess.
2.3 Therepresentative oftheEuropean Communities recalled thatatthelastmeeting oftheCouncil,
hisdelegation hadindicated thatitmight beinaposition topresent certain ideas ontheissue atthis
meeting. While adocument would besubmitted forcirculation inthenearfuture, hewished torefer
inthemeantime toafewoftheelements contained inthatdocument.
2.4 Hisdelegation believed thatthere wasscope foradded value intheWTO onthesubject of
trade facilitation, essentially, intwoways: firstly, ahigher political profile totheimportance oftrade
facilitation would beadded iftheWTO became more systematically andseriously involved intheissue.
Secondly, further added value would begenerated bythepossibility which theWTO offered forthe
adoption ofbinding instruments. Therefore, hisdelegation believed thatanexamination should be
undertaken ofsome oftheissues involved without complicating thework oftheother organizations
orappearing toencroach onareas inwhich theyhadaprerogative. What hisdelegation hadinmind,G/C/M/22
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morespecifically, wasthepossible acceptance atalaterdatebyWTO Members ofwhatcould bereferred
toasacentral coreofthemore widely accepted recommendations ofother organizations involved in
trade facilitation. Some ofthereasons thatspoke infavour ofsuchwork werethefollowing: itwas
clearthatsuccessive tariff cutsandthevastincrease intrade volume, newsystems oftransportation,
andabove all,theuseofthecomputer, required, andmade itpossible, toapply simplified, harmonized
andstandardized procedures which would betothebenefit oftraders andconsumers inallcountries,
andinparticular alsothesmall andmedium sizedenterprises. Thekeyelement inallthiswerecustoms
procedures, andinthisarea, ofcourse, there wereimportant provisions intheWTO Agreements on
rules oforigin, oncustoms valuation andonpreshipment inspection.
2.5 Afirstgeneral lineofaction toreflect onwould betogothrough existing Agreements, as
identified bytheSecretariat initspaper, withaviewtostreamlining them according totheneeds of
operators, taking intoaccount thework andpractical experience developed intherelevant organizations
involved inthisareaofwork. Asecond linewould betoconsider possible elements andprocedures
notcovered bytheWTO where importers andexporters feltthatmeasures wereneeded tofacilitate
trade. Thiscould include matters suchasinformation standards (likeEDIFACT), drawn upinthe
UNECE, andbasicprinciples related tocustoms procedures. TheKyoto Convention onsimplification
andharmonization ofcustoms procedures could benefit strongly fromawider andfuller implementation.
There was,intheEC'sview, agreat needforfurther alignment inthese matters attheinternational
level, andthiswaswhere hisdelegation believed thattheWTO could induecourse make animportant
contribution. Theobjectives would be,therefore, tostartamodernization process, which inrespect
ofcustoms procedures would bebased onarevised Kyoto Convention, which wasunder review in
theWCO withadeadline of1999. Thiscould besupplemented byrules oftransparency tofight
corruption. Thiswork should alsoinclude theareas ofrules oforigin andcustoms valuation, which
were often subject tocomplaints bytraders. Another major issue inthisrespect would betodefine
adataset.Thiswould besomething along thelinesoftheSingle Administrative Document usedin
theECwhich served avariety ofdifferent purposes involving import, export andalsotransit
requirements, andwhich came inelectronic format. Work onsuchaspects wasalready underway in
theG7context, aswellasintheEC.Thiswasanareaofwork where theEChadveryhighexpectations
andwhere itlooked forward toconcrete results. Hisdelegation believed thattheWTO could help
bygiving theresults ofthiswork awider application thantherather limited context inwhich itwas
being undertaken.
2.6 Itwasclear thattheWTO should notduplicate thework carried outbyother international
organizations, buthisdelegation didseemerit inpursuing theideaofidentifying acentral coreofwidely
accepted recommendations resulting fromthework which hadtaken place inthose organizations which
could beapplied through theWTO inamore binding fashion. Atatimewhen electronic commerce
wasgrowing atafastpaceitappeared ofvitalimportance thatofficial procedures were modernized
andmade transparent, which allowed forvarious procedural andofficial requirements involved ina
transaction tobecome interlinked sotransformation between information media andduplication tomeet
information requirements bydifferent bodies were avoided. Efforts inthisrespect should bemade
toreduce thetimefortherelease ofgoods toaminimum without, obviously, compromising the
effectiveness ofcustoms controls. More fundamentally, perhaps, thegrowth ofelectronic commerce
withitsnewways ofbuying, selling anddelivering ofgoods andservices, should beacknowledged
andgovernments hadtoadapt theircontrols. Technological progress andinnovation offered prospects
ofrationalization andsimplification ofprocedures.
2.7 Therepresentative ofKorea stated thatatthelastCouncil meeting, hisdelegation hadsuggested
thatprovisions ofcertain other WTO Agreements should beincluded inthelistofprovisions whose
impact ontrade facilitation should beanalyzed. Thisconcerned theAgreement onImplementation
ofArticle VIoftheGeneral Agreement onTariffs andTrade 1994(Anti-dumping Agreement) aswellG/C/M/22
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astheAgreements onSubsidies andCountervailing Measures andonSafeguards, buthewished to
focus onthefirst..
2.8 Inthisconnection, hepointed outthatfirstly onceanti-dumping duties werelevied onacertain
import, itwasextremely difficult fortheinterested parties oftheexporting Member toapply fora
review forthetermination oftheduty. Article 11.2oftheAnti-dumping Agreement provided that
theauthorities oftheimporting Member "shall review theneedforthecontinued imposition ofthe
duty, where warranted, ontheirowninitiative or,provided thatareasonable period oftimehaselapsed
since theimposition ofthedefinitive anti-dumping duty, upon request byanyinterested party which
submits positive information substantiating theneedforareview." However, thesituation which could
leadtheauthorities oftheimporting Member toinitiate areview wasveryunclear andthe"reasonable
period oftime" afterwhich theinterested parties could request areview seemed arbitrary. Inmany
cases, applications forreview hadbeendiscouraged, rejected orhadtaken alongtimeforthereason
ofthethreat offuture injury oraminor procedural issue. Secondly, article 9.3oftheAnti-dumping
Agreement provided fortheprocedures forrefund ofpayment when theamount ofanti-dumping duty
paidexceeded themargin ofdumping. Delays inthefinaldetermination oftheanti-dumping duty
andintherefund procedure would undermine thefreeflowoftrade. Hisdelegation wasoftheview
thatitwasnecessary toreview thisprovision inthecontext ofthediscussion ontrade facilitation to
ensure thatthefinaldetermination oftheanti-dumping dutyandtheprocedure fordeposit andrefund
oftheanti-dumping dutypayment beoperated inatransparent, predictable andspeedy way.
2.9 Therepresentative ofMalaysia, speaking onbehalf ofASEAN member states, stated thatan
immense amount ofwork wasbeing undertaken inseveral areas related totradefacilitation, including
rulesoforigin, preshipment inspection andcustoms valuation. Under theWCO, theKyoto Convention
wasundergoing arevision exercise, during which thepossibility ofmaking theprovisions morebinding
oncustoms administrations wasbeing examined. Inlightoftheforegoing, ASEAN Members were
oftheviewthatwork ontrade facilitation should continue toevolve inthevarious international fora
andanydiscussion onassessing thescope ofWTO rulesinthisrespect could bemeaningfully undertaken
onlythereafter.
2.10 Therepresentative ofMorocco stated that,astherepresentative oftheEChadpointed out,
theWTO could addvalue intheareaoftrade facilitation. However, theCouncil when undertaking
thetasksetoutbyMinisters, should becareful tonotduplicate thework being done inother fora,
including inother WTO bodies. AtthelastCouncil meeting, hisdelegation hadsuggested oneortwo
topics which, tohisknowledge, werenotthesubject ofdebate anddiscussion elsewhere, inparticular
"transit", "theabusive useofcustoms procedures" and"customs formalities". Hisdelegation welcomed
theforthcoming paper bytheEC,andoncethispaper aswellasthecontributions byother Members
hadbeenexamined, further decisions could betaken. Hisdelegation intended tomake acontribution
atthatstage oftheexercise.
2.11 Therepresentative oftheUnited States suggested thattheSecretariat document should beshared
withthose whowere preparing fortheHigh-Level Meeting onLeast-developed Countries, because
itwasauseful andready reference document inanimportant area. LiketheEC,herdelegation thought
thattrade facilitation wasaveryimportant issue, butthefactofthematter wasthattrade facilitation
waspart-and-parcel ofsome veryimportant unfinished work intheWTO. Themost significant
contribution thatMembers could make wastothework onpreshipment inspection andonthe
harmonization ofnon-preferential rulesoforigin, which werebothbehind schedule. Forthetrading
community,anotherimportantareaofongoingworkwasrelatedtotheAgreementonCustomsValuation.
Herdelegation noted, inthisconnection, thattheCommittee onCustoms Valuation hadbeenmoving
forward intheareaoftechnical assistance sothatMembers could work together inacoordinated fashion
toensure timely implementation ofthisAgreement. Herdelegation would beveryconcerned ifany
newwork would undermine ortakeaway resources fromcurrent work. There wasalotofeffort takingG/C/M/22
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place inother foraonthesubject oftrade facilitation andduplication should beavoided. Moreover,
intherecently announced White House initiative onglobal electronic commerce attention waspaid
tocustoms procedures. Thesubject oftrade facilitation wasbeing worked oninavariety of
organizations. Theprimary contribution thattheWTO could make intheshorttermwastosuccessfully
complete itswork onrules oforigin, customs valuation andpreshipment inspection.
2.12 Therepresentative ofMexico stated thatoneofthemajor objectives oftheWTO wasthe
liberalization oftradeingoods andservices soastopromote improved allocation ofresources. Faced
withthechallenges ofhighly competitive anddynamic world tradeinaneraofeconomic globalization,
thesimplification, reduction andelimination ofartificial non-tariff barriers wasessential forthetrade
efficiency ofenterprises, especially those indeveloping countries, andtheirsuccess incompeting.
Therefore, itwasrecognized thatliberalization andtrade efficiency weretwowholly interdependent
orcomplementary elements that"should gohandinhand" inorder topromote orderly development
ofinternational trade.
2.13 Henoted thatinmany international forathere wasabroad range oftrade efficiency activities
andefforts aimed atdecreasing costs, thetimespent inprocedures, andthedocuments required, so
astospeed upinternational trade flows. Asthere wasnocoherent linkamong these efforts, itwas
more difficult tomake trade efficient because ofthemany instruments inexistence inthisarea
e.g.,conventions, programmes, guidelines, regulations, procedures, recommendations, voluntary or
binding rules. Although tradefacilitation activities hadexisted foralongtime, inthepastdecade they
hadbeenstepped upandhadunintentionally ledtoadispersal ofinstruments andefforts inareas such
as:customs, transport, electronic datainterchange, standardization ortechnical assistance. Within
theWTO there were alsoCommittees thathadnotyetfinished theirallotted tasks andwhose work
wasrelated totradesimplification issues like,forexample, customs valuation, preshipment inspection,
rulesoforigin, technical barriers, orintheareaofmarket access, withregard tofacilitating information
ontrade andtariffs, modifications ofloose-leaf schedules, andimplementing themodifications tothe
integrated database (IDB) forPCs. Itwould beadvisable toawait theirfindings soastonotduplicate
efforts.
2.14 Regarding theSecretariat 'sbackground note,hisdelegation considered thatintergovernmental
organizations mostly carried outtheirtrade efficiency activities inseven areas: (i)Harmonization of
procedures forthecirculation ofgoods byair,seaandland; (ii)elaboration ofinternational rulesfor
products andservices (i.e.tariff harmonization, rules oforigin, preshipment inspection, recognition
oftitles, recycling obligations, labelling, codes andabbreviations, invoicing, etc.); (iii)contracts for
theinternational buying andselling ofgoods; (iv)arbitration andreconciling interests; (v)guidelines
forexport credits granted withofficial support; (vi)integrated databases; and(vii)technical assistance.
2.15 Themajor trade facilitation activities undertaken bynon-governmental organizations focused
alsoinonewayoranother ontheaforementioned areas. TheSecretariat 'sfactual noteontradeefficiency
constituted afirstpositive stepanditshould beimproved uponandclarified, utilizing thecontributions
ofMembers concerning theirnational experience, aswellasthatoftheobserver organizations which
wereparticipating. Thiswould provide abroader overall viewofwhathadbeendoneorwasbeing
undertaken inotherrelevant foraandwould giveMembers abetter basisonwhich todefine theimportant
wayforward tothenextstep,which wastoundertake athorough, coherent andstructured analysis
onsimplification ofprocedures governing international trade andtoconsider whether itwould be
appropriate fortheWTO toestablish rulesinthisarea. Taking intoconsideration thepoints mentioned,
theexisting lacunae should beidentified, clarified andclassified inorder todetermine: (i)Where the
scope oftrade simplification activities began andended; (ii)where theWTO 'sresponsibility fortrade
efficiency began andended; and(iii)whattheWTO should doinrelation torules.G/C/M/22
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2.16 Nevertheless, hisdelegation considered that,before pursuing theactivities proposed above
andinconformity withtheSingapore Ministerial Declaration onutilizing thework ofother relevant
organizations, thefirstessential stepshould betoutilize thework being carried outintheEconomic
Commission forEurope (ECE) ontheInternational Trade Transaction Model, whose main objective
wastoestablish aframework thatwould allow thestages inforeign trade procedure tobeidentified
andguide action throughout theprocedure. Hisdelegation therefore suggested thattheECEshould
beinvited toexplain themodel tothisCouncil.
2.17 Hisdelegation thought thatthemodel developed would beofgreatassistance toWTO Members
bygiving themapractical understanding oftheprocedure, which would nodoubt make better known
thecomplex chain ofprocedures anddocuments ineffect inthepublic sector, including customs
administrations, andamong independent actors intheprivate sector, including interaliaexporters,
suppliersandtransmittersofinformation,banks,insuranceagents,transporters,distributorsand,finally,
importers. Thewritten contribution which theECintended tomake shortly ontradefacilitation would
undoubtedly provide complementary information.
2.18 Tosummarize, hisdelegation considered thatthefollowing objectives should betaken into
account inthework ontrade efficiency: (i)Tosupport coherence inorder toachieve anopen,
predictable, secure andnon-discriminatory multilateral system, inwhich tradesimplification made more
effective andspeeded upforeign tradetransactions; (ii)toprevent delays, tolower costsandtoeliminate
artificial obstacles thathindered trade facilitation; (iii)topromote orderly development andgreater
participation ininternational trade ingoods andservices; (iv)toassist small-scale participants tobe
more competitive ininternational trade, especially small andmedium sized enterprises forwhom
efficiencywasdeemedtobeanimportantinstrumentwithwhichtocombatexclusionandmarginalization
intheglobal economy; and(v)tocoordinate trade efficiency activities andtodetermine thetechnical
assistance, training andlevelofcooperation withrelevant international organizations.
2.19 Therepresentative ofNigeria stated thatitwasinteresting tonotethatUN/ECE hadstarted
work ontrade facilitation asfarbackasin1960. Theimportance UN/ECE attached tothesubject
oftradefacilitation wasmanifest inthenumber ofdecisions, initiatives andrecommendations thatwere
adopted, allaimed atfacilitating international trade. Thesame applied withrespect towork carried
outbyother international governmental organizations andnon-governmental organizations. Henoted
thattheGATT/WTO hadnotinitiated work inthisareaveryearly. Thereason wasthatnegotiators
were atthetimeprimarily concerned withthePunta delEsteDeclaration andtheconclusion ofthe
Uruguay Round, andtradefacilitation wasnotanitemontheagenda. Heemphasized again themandate
given byMinisters atSingapore fortheGoods Council to"undertake exploratory andanalytical work
drawingontheworkofotherrelevantinternationalorganisationsonthesimplificationoftradeprocedures
inorder toassess thescope forWTO rules inthisarea".
2.20 Some views hadbeenexpressed totheeffect thatpriority should begiven tothecompletion
ofongoing work intheWTO intheareaoftrade facilitation. Nigeria feltthatifthisproposal were
followed, thenitwould bedifficult forthisCouncil tostrike abalance between theanticipated consensus
andthemandate ofMinisters. InMay1998, thesecond WTO Ministerial Conference would beheld
anditwasNigeria 'sbelief thatMinisters should bebriefed onthework undertaken intheCouncil
tocomply withitsmandate. Accordingly, itwasimportant tofindawayofinitiating some concrete
work inthisarea, evenifitwaslimited toclarifying issues. Thiswould sendpositive signals tothe
international trading community thattheWTO wasaware ofitsresponsibilities.
2.21 Hisdelegation believed thatunless work wasundertaken tocomplement andadvance what
hadalready beenaccomplished byotherorganizations, governmental andnon-governmental, thissubject
oftradefacilitation might facethesamefateasthatoftheWorking Group ontheExport ofDomestically
Prohibited Goods. Thework ofthisGroup hadlostsignificance, inlightoftheoverwhelming view
atthetimethattheGATT should notbeseentoduplicate functions already covered inotherinternationalG/C/M/22
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fora.Hespecified thatwork inthisWorking Group hadadvanced asfarastheelaboration ofadraft
decision, which could notbeadopted duetothereservations ofonedelegation.
2.22 TheSecretariat should assist theCouncil andcompile acompendium oftheissues thatshould
betaken upwhile atthesame timeidentifying those areas which would require close co-ordination
withsimilar identical on-going work intheWTO. Hisdelegation looked forward tothepaper from
theECasawayofadvancing theprocess.
2.23 Therepresentative ofCanada stated thathisdelegation hadbeenunclear astowhat exactly
wasmeant bytheterm"trade facilitation". Hisexperience intalking withCanadian businessmen had
beenthattheyweregrateful forallthestructures andagreements andbinding obligations andaccess
commitmentsthatMembershadputinplaceinvarioustradeagreements,notablyintheWTO.However,
theyexhibited acertain amount offrustration atsome oftheproblems theystillencountered atarather
mundane levelastheyapproached acustoms point ortriedtoshipgoods intoanother country. So,
there wasclearly aneedforsome action intheareaoftrade facilitation andthere wasstrong support
foritintheCanadian business community. Buttheproblem remained astoitsdefinition. TheSecretariat
paper wasveryuseful insetting outthetopography ofwhat existed inthisarea, andthediscussion
heldatthismeeting hadbeenuseful interms ofidentifying some oftheissues. Hisdelegation wished
todowork inthisarea,andatthesame timewished toavoid duplication. Members hadtobemindful
ofdealing withissues inthisforum which were notbeing dealt withmore efficiently oraddressed
elsewhere. Moreover, Members should notdetract fromthework currently being undertaken inWTO
bodies onareas oftrade facilitation, e.g.onpreshipment inspection, rules oforigin andcustoms
valuation. Hisdelegation looked forward toreading theECpaper toseewhether itwould helpput
Members onamore concrete andprecise direction regarding pursuance ofthismatter.
2.24 Therepresentative ofJapan stated thathisdelegation placed importance onthesubject oftrade
facilitation. Aswasclearly pointed outintheSingapore Ministerial Declaration, thisCouncil hada
mandate todoexploratory andanalytical work, soitwould bedesirable tomaintain themomentum
ofthediscussions onthismatter. Atthesame time, itshould bekeptinmind thatimportant work in
thisareawasalready being doneinsome oftheWTO Committees, andthatanyduplication ofwork
needed tobeavoided. Hisdelegation looked forward toreceiving theECpaper.
2.25 Therepresentative ofHong Kong, China stated thathisdelegation believed there wasroom
fortheWTO toaddvalue totheareaoftrade facilitation. However, efforts made elsewhere should
notbeduplicated. Important work wasalsoalready being doneintheWTO, some ofwhich hadfallen
behind schedule, forexample intheCommittee onRules ofOrigin. Hisdelegation would bevery
interested toreadthesuggestions from theECandwasgrateful forthisinitiative. Inparticular, his
delegation waspleased withthecomment made bytheECrepresentative ontheroleoftheprivate
sector inthisarea, which hisdelegation believed wasanimportant one.
2.26 Therepresentative ofIndiastated thathisdelegation hadmade anintervention atthelastCouncil
meeting. Inthatstatement, thepoint hadbeenmade thatasfarasdeveloping countries wereconcerned
thatareasliketradeinformation andcustoms procedures werefairly new,andforthisreason exploratory
andanalytical work should beundertaken, asmandated bytheSingapore Ministerial Conference. He
recalled thatduring therun-up totheSingapore Ministerial Conference, hisdelegation hadnotbeen
infavour ofhaving newsubjects discussed intheWTO. However, inlightoftheMinisterial Decision
atSingapore, theCouncil should doitsbesttoimplement aseffectively aspossible themandate given
byministers. Herecalled thatwhen thissubject wasfirstdiscussed inthisCouncil there wasabig
debate about what trade facilitation was. Infact,intheMinisterial Declaration theterm "trade
facilitation" wasonlyusedasamargin heading. Thetextitselfstated thatMinisters agreed to"direct
theCouncil forTrade inGoods toundertake exploratory andanalytical work, drawing onthework
ofother relevant international organizations, onthesimplification oftradeprocedures inorder toassess
thescope forWTO rulesinthisarea." Infact,basing themselves ontheSecretariat paper, MembersG/C/M/22
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hadwanted toobtain some ideaabout whatwasexactly meant bytradefacilitation andtohaveknowledge
about howvarious international organizations perceived trade facilitation. Delegations appeared to
beofdiffering views. Some delegations feltthatthistermshould include onlycustoms procedures,
trade information, etc.,while others feltthatitshould include banking, insurance, transportation,
telecommunications, etc.When, during therun-up totheSingapore Conference thissubject wasbrought
totheforefront bytheEC,itwasclearly mentioned thattheECenvisaged basically work ofan
exploratory andanalytical nature. Even aftertheSingapore Conference, theECdidnothaveany
particular viewabout thescope forWTO rules. Therefore itshould berecognized thattheCouncil
wasinthisphase ofexploratory andanalytical work. Hewelcomed inadvance theECpaper, and
oncehaving studied itscontents, andtaking account ofthecomments made onthissubject, hisdelegation
would make another detailed statement attheCouncil 'snextmeeting.
2.27 Healsowished tomention, inthiscontext, theconcern expressed bysome delegations that
thework relating tothesubject oftradefacilitation inthisbodyshould notduplicate thework inother
WTO bodies specifically, andinother international organizations more generally. Ithadnever been
theintention to"hijack" work taking place inother WTO bodies under theguise oftrade facilitation
intothisCouncil. Thisproposal essentially meant simplification oftrade procedures, andaspointed
outbytheCanadian representative, onecould notbeseentobeopposing something which simplified
trade procedures. Therefore, itwasnecessary forthisbody inthelightofthemandate, without
duplicating thework ofother bodies ortrying totakeoverthework ofother WTO bodies, todofirst
theanalytical andexploratory work, basing itselfontheinformation provided bytheSecretariat, and
onanycontributions made bydelegations. TheCouncil could onlycome toareasonable andwell-
informed decision astowhether there wasneedforrules atallinthisareaoncetheanalytical work
hadbeencompleted. Nothing should beprejudged atthisstage. Also, referring tothepoint raised
bytheKorean delegation, although hehadnospecific views atthemoment, thiswasamatter which
theCouncil should reflect on,i.e.whether thepoint raised byKorea waspartofthebroader concept
oftrade facilitation ornot.Itwasnecessary foralldelegations tovoice theirviews sothatMembers
collectivelycouldcometoaconclusionastowhatexactlytradefacilitationshouldencompassandwhether
there wasanyneedforWTO rules inthisarea.
2.28 Therepresentative ofEgypt stated thathisdelegation looked forward toreceiving theECpaper.
Herecalled thattheagreement toaddress thesubject oftrade facilitation waseasily reached atthe
Singapore Ministerial Conference. However, theCouncil should notdomore thanwhatitwasdirected
todoinconformity withtheSingapore Declaration. Members should notgobeyond thismandate or
infringe uponthecompetence ofother international organizations andinstitutions working inthisfield.
Hewasreferring, inparticular, toUNCTAD, which hadalongexperience inthisregard, since the
beginning ofthe1970s. Thatexperience wasaccentuated following UNCTAD VIIIinCartagena, and
thework which wasdoneunder theExpert Working Group onTrade Efficiency. Alothadalsobeen
gained from theMinisterial Conference inColumbus, Ohio, in1994. Other examples, included the
InternationalTradeCenter(ITC),theUNregionalcommissions,inparticulartheEconomicCommission
forEurope,andregionalorganizationssuchastheOECDwhoseworkonthissubjectwasverybeneficial.
2.29 TheChairman stated thatoralstatements andwritten contributions bydelegations, aswellas
theSecretariat document would provide agoodbasisforanewround ofdiscussions atthefirstmeeting
oftheCouncil intheautumn withaviewtobuilding upaconsensus onhowtheCouncil should handle
thismatter. Inresponse toarequest forclarification bySwitzerland, theChairman stated thatstatements
made bydelegations atprevious meetings onthissubject would alsobetaken intoaccount inthisprocess.
2.30 TheCouncil tooknoteofthestatements, andagreed torevert tothisitematitsnextmeeting.G/C/M/22
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3. Draft Agreement between theWTO andtheOffice International desEpizooties (OIE)
(G/SPS/W/61)
3.1 TheChairman stated thattheAgreement between theWTO andOIE(G/SPS/W/61) originated
fromtheCommittee onSanitary andPhytosanitary Measures (SPS). Itspurpose wastofacilitate the
collaboration between thetwoorganizations onquestions ofmutual interest arising from theSPS
Agreement. Following adoption ofthedraftAgreement bytheOIEatitsAnnual Session inMay1997,
theCommittee onSPSadopted thedraftAgreement atitsmeeting of1-2July1997 andreferred it
forapproval totheGoods Council andtotheGeneral Council.
3.2 TheCouncil approved thedraftAgreement, andagreed totransmit itforapproval totheGeneral
Council.
4. Euro-Mediterranean Interim Association Agreement onTrade andCo-operation between the
European Community andthePalestine Liberation Organization forthebenefit ofthePalestinian
Authority oftheWest Bank andGaza Strip
- Communication from theEuropean Communities (WT/REG43/N/1 andCorr.1 and
WT/REG43/1)
4.1TheChairman drewtheattention oftheCouncil tothenotification fromtheEuropean Communities
indocument WT/REG43/N/1 anditscorrigendum. ThetextofthisnewAgreement hadbeencirculated
indocument WT/REG43/1.
4.2 Therepresentative ofIsrael wished toplace onrecord Israel'sreservations withregard tothis
item. First, concerning thefactthattheEuro-Mediterranean Interim Association Agreement onTrade
andCooperation between theEuropean Community andthePLO(forthebenefit ofthePalestinian
Authority oftheWestBankandtheGazaStrip) hadbeenplaced ontheagenda ofthisCouncil meeting,
and,second, withregard tothesubstance oftheAgreement itself.
4.3 Inbrief, hisdelegation found thisAgreement altogether questionable, inthelightoftheOslo
andotheragreements between Israel andthePalestinians. Furthermore, Israel heldthat,initsparticulars,
thepresent agreement didnotconform withcertain terms oftheIsrael-Palestinian agreements, especially
theProtocol onEconomic Relations, signed inParis inSeptember 1994, which regulated theissues
athand. Finally, Israel wasoftheviewthatdiscussing thepresent agreement herewasnotinthespirit
oftherelevant provisions oftheWTO.
4.4 Article IXoftheInterim Agreement between Israel andthePLO signed inWashington in
September 1995, specified whatkindofinternational agreements thePLOmight signforthebenefit
ofthePalestinian Council or"Authority". Thepresent agreement, signed bythePLOwiththeEU,
wasnotcovered bythatarticle. Furthermore, theWashington Agreement andtheParis Agreement
annexed thereto determined thefreemovement ofgoods, between Israel andtheterritories under
Palestinian Authority 'sjurisdiction. They alsomaintained asingle customs envelope forbothIsrael
andthose territories withafewlimited exceptions, under theoverall responsibility ofIsrael. Against
that,theAgreement between theECandthePLOappeared tobebased onanopposite assumption
-thatthere wasnofreemovement ofgoods between Israel andtheterritories -andevenestablished
aclear distinction between thetwoeconomies forthepurposes ofrules oforigin.
4.5 Indeed thisAgreement seemed tolimitthefreemovement ofgoods andeconomic cooperation
between Israel andthePalestinian economy forthepurposes ofexports totheEC.
4.6 Inviewoftheexisting agreements, including thatbetween theEUandIsrael, more appropriate
andmore satisfactory ways could havebeenfound toprovide fortrade relations between theECandG/C/M/22
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theterritories under thePalestinian Authority 'sjurisdiction, inorder toassure dutyfreetreatment for
Palestinian exports asindeed secured bytheParis Agreement. Other countries hadfound suchways.
4.7 Insum,while Israel welcomed theeconomic assistance oftheEUtothePalestinians, itdeemed
thepresent Agreement unnecessary andoutofplace, ifnotoutoforder. Hisdelegation wasdisappointed
thattheEUfelttheneedtogothrough withthisAgreement andtroubled thattheyhadplaced itbefore
theWTO. Healsowished toindicate thathisdelegation hadmade clear allitsabove reservations
totheEUCommission inBrussels before andafterthesigning ofthepresent Agreement.
4.8 Therepresentative oftheEuropean Communities stated thathehadtaken noteofthestatement
andwould reflect onit.Heconsidered, however, thatthematters raised wereessentially forbilateral
consideration. Hisdelegation expected theAgreement tobereferred intheusual waytotheCommittee
onRegional Trade Agreements, where itsimplications fortherights andobligations ofWTO Members
could beexamined.
4.9 Therepresentative ofEgypt stated thathisdelegation hadtaken noteoftheAgreement which
hadbeenconcluded between theEUandthePalestinian authorities, andofthestatement made bythe
representative ofIsrael. However, hisdelegation didnotseeanyinconsistencies between thisAgreement
andtheobligations which derived fromtheOsloAgreement orfromtheWashington Agreement. An
agreementhadalsobeensignedinCairowhichwenttowardshelpingthePalestinianauthoritiesdischarge
theirresponsibilities deriving from thevarious international instruments referred to.Thiswasalso
consistent withtheBarcelona Declaration, towhich Israel wasaparty. Hisdelegation wasoftheview
thatthisinterim Agreement wasastepintherightdirection ascomprehensive peace intheMiddle
Eastwasbeingaimedfor.HisdelegationwishedtoseethenegotiationsbetweenIsraelandthePalestinian
authorities resume assoonaspossible andthedevelopment offriendly relations forpeace andsecurity
intheMiddle East. Inthemeantime, thisAgreement, asindicated bytherepresentative oftheEC,
should betransmitted totheCommittee onRegional Trade Arrangements forexamination.
4.10 TheChairman proposed thattheCouncil takenoteofthestatements andthattheCommittee
onRegional Trade Agreements carry outtheexamination ofthisAgreement inaccordance withthe
following terms ofreference:
"toexamine, inlightoftherelevant provisions oftheGATT 1994, theEuro-Mediterranean
Interim Association Agreement onTrade andCo-operation between theEuropean Community
andthePalestine Liberation Organization forthebenefit ofthePalestinian Authority ofthe
West Bank andGaza Strip andtosubmit areport totheCouncil forTrade inGoods"
4.11 Itwasunderstood thattheunderstanding readoutbytheChairman oftheCouncil forTrade
inGoods under item 7oftheAgenda ofthemeeting oftheCouncil forTrade inGoods on
20February 1995, ascontained indocument WT/REG3/1, would apply mutatis mutandis tothis
examination. Itwasalsounderstood that,during theexamination, dueaccount would betaken ofthe
intrinsic differences between customs unions andfree-trade areas.
4.12 TheCouncil soagreed.
5. Status ofnotifications under theprovisions oftheAgreements inAnnex 1AoftheWTO
Agreement (G/L/112/Add.2)
5.1 TheChairmanstatedthat,asindicatedinthecoverpagetodocumentG/L/112/Add.2,theCouncil
hadadopted,atitsmeetingof15October1996,arecommendationbytheWorkingGrouponNotification
Obligations andProcedures tomaintain onanongoing basis thecomprehensive listing ofnotification
obligations under theprovisions ofAgreements inAnnex 1AoftheWTO Agreement andthecompliance
therewith. Itwasalsoagreed tocirculate thislisting semi-annually. Thiscomprehensive listing whichG/C/M/22
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wastobefound inAnnex IIIoftheWorking Group 'sreport totheCouncil contained indocument
G/L/112 wasupdated prior toSingapore andcirculated inaddendum 1todocument G/L/112. The
second update ofthatlistwasnowbefore theCouncil inaddendum 2todocument G/L/112 andincluded
allnotifications made uptoandon30June1997. Anynotifications made afterthisdatewould be
included inthenextupdate, which would becirculated atthebeginning of1998.
5.2 TheCouncil tooknoteoftheinformation provided indocument G/L/112/Add.2.
6. Dateofthenextmeeting
6.1 TheCouncil tooknotethatthenextmeeting wasscheduled for6October 1997.