RESTRICTEDWORLD TRADE
ORGANIZATIONWT/REG/W/43
21 September 2001
(01-4514)
Committee on Regional Trade Agreements
DRAFT REPORT (2001) OF THE COMMITTEE ON REGIONAL TRADE
AGREEMENTS TO THE GENERAL COUNCIL
Chairperson:  Mrs. Laurence Dubois Destrizais (France)
I. INTRODUCTION
1. The terms of reference of the Committee on Regional Trade Agreements (CRTA) are:
"(a) to carry out the examination of agreements  in accordance with the procedures and terms
of reference adopted by the Council for Trade in Goods, the Council for Trade in
Services or the Committee on Trade and Development, as the case may be, and
thereafter present its report to the relevant body for appropriate action;
(b) to consider how the required reporting on the operation of such agreements should be
carried out and make appropriate recommendations to the relevant body;
(c) to develop, as appropriate, procedures to facilitate and improve the examination
process;
(d) to consider the systemic implications of such agreements and regional initiatives for the
multilateral trading system and the relationship between them, and make appropriaterecommendations to the General Council;  and
(e) to carry out any additional functions assigned to it by the General Council."
1
2. At its first meeting in 2001, the CRTA elected Mrs. Laurence Dubois Destrizais (France) as
Chairperson of the Committee.  Ms. Margaret Liang (Singapore) and Mr. Alberto J. Dumont
(Argentina) were elected as Vice-Chairpersons at the Twenty-Ninth Session of the CRTA.
Dr. Vassili Notis (Greece) retained his position as Vice-Chairman.
3. During 2001, the Committee held three sessions (in February, July and September).  The
minutes of those meetings are listed in Attachment 1.  Informal consultations have also been held, in
an effort to reach convergence on the Committee's reporting on the examination of agreements.
II. OBSERVER STATUS
4. The Committee agreed to grant observer status in the CRTA to the Latin American
Integration Association (LAIA), on an ad hoc  basis.  Definitive decisions on the requests for observer
status listed in document WT/REG/W/11/Add.3 will be made in accordance with the guidelines to bedefined by the General Council.
                                                     
1 Document WT/L/127, paragraph 1.  The footnote attached to that paragraph is not reproduced here.WT/REG/W/43
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III. EXAMINATION OF REGIONAL TRADE AGREEMENTS
5. To date, 238 RTAs have been notified to the GATT/WTO.2  Of these, 205 agreements were
notified under GATT Article XXIV, of which 123 are still in force today; 18 agreements were notified
under the Enabling Clause;3 and 15 were under GATS Article V.
6. The Committee has currently under examination a total of 107 agreements.4  The examination
of 94 of these agreements has been referred to th e Committee by the Council for Trade in Goods, and
13 by the Council for Trade in Services.
7. Examinations of individual RTAs represented a substantive amount of the Committee's work
during 2001.  For twenty RTAs, the Committee has not yet started the factual examination.  Twenty
RTAs are currently undergoing factual examination.  The remaining 67 RTAs have already completed
factual examination and the draft examination reports are in various stages of consultation and
finalization (see Attachment 2).
8. In the attempt to finalize the five model draft reports currently under consideration by the
CRTA, a new format for these reports was employed as from February 2001.  In spite of some
progress made through informal, bilateral and multilateral consultations, this new approach did not
enable Members to overcome fundamental difficulties.  In July 2001, the Chairperson reported to the
General Council on the persistently deadlocked situation in the Committee; the General Council urgedthe Committee to continue its efforts to make progress in its work.
5
IV. REPORTING ON THE OPERATION OF AGREEMENTS
9. At the Twenty-Eighth Session of the CRTA, it was noted that all RTAs for which reports
were due in 1999 were included in the Schedule for the Submission of Biennial Report for 2001, withthe exception of three agreements which had been superseded by more recent ones and which were
currently under examination within the Committee.
6
10. At that same Session, the importance of the biennial reporting process as an element of
transparency was reiterated and all Members were urged to ensure that reports were submitted
according to schedule in order to have the documents distributed in time for their discussion duringthe Autumn session.
11. [At its Thirtieth Session, the Committee co nsidered five reports on the operation of
agreements.  Four of these had been submitted to the WTO in accordance with the schedule for
the submission of biennial reports on RTAs fo r the year 2001.  The additional report fell under
the 1999 schedule, but had not been reviewed during the year 2000, and was thus referred for
consideration to the Committee meeting in Autumn 2001 (see Attachment 3).]
                                                     
2 This figure corresponds to notifications of new RTAs, as well as of accessions to existing RTAs.
3 Differential and More Favourable Treatment, Reciprocity and Fulle r Participation of Developing
Countries , Decision of 28 November 1979.
4 Four RTAs, two notified under GATT Article XXIV and two under GATS Article V have not yet
been transmitted to the Committee for examination.
5 See document WT/GC/M/66, issue 13(a) on the agen da for a detailed account of the deliberations of
that meeting.
6 See document WT/REG/W/42.WT/REG/W/43
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V. SYSTEMIC IMPLICATIONS OF REGIONAL TRADE AGREEMENTS AND
INITIATIVES FOR THE MULTILATERAL TRADING SYSTEM AND THE
RELATIONSHIP BETWEEN THEM
12. On the basis of a document (WT/REG/W/38) entitled Further Work on Systemic Issues ,
presented by the former Chairman of the CRTA, 7 in July 2000 the Secretariat had been instructed to
prepare horizontal, thematic surveys on the treatment of various policy provisions or measures in
RTAs, the first of which would address internal trade liberalization in RTAs.8
13. At the Committee's Twenty-Eighth Session, many delegations stressed the importance they
attached to such horizontal surveys as a means to enhancing the understanding of the impact of RTAs
on the multilateral trading system and agreed that the two crosscutting studies being prepared by the
Secretariat on coverage and exceptions, and rules of origins regimes should be the focal point for the
Committee's further work on systemic issues.  At its Twenty-Ninth Session, a representative of theSecretariat gave an update on progress on the two surveys, indicating that they would be circulated in
time for the Committee's September Session.
14. At the same Session, the Committee considered the proposal of the representative of Hong
Kong, China to organize an educational seminar on the relationship between RTAs and the
multilateral trading system for later this year or early 2002.
15. The two background documents requested from the Secretariat were circulated to Members in
mid-September 2001, for preliminary consideration at the Committee's Thirtieth Session. (to be
completed)
VI. FINAL REMARKS
16. The Committee has pursued its examination work and succeeded in concluding the factual
examination of a number of RTAs, but has been unable to finalize reports on any of the examinations
before it.  As noted in paragraph 8 above, the Committee has discussed the practical difficulties and
broader issues preventing progress and the General Council has been informed of this state of affairs.
                                                     
7 Document WT/REG/W/38 was circulated under the Chairman's sole responsibility, but the
consultations held on it had showed a great degree of support for the approach it set.
8 That includes coverage and exceptions, rules of origin régimes and denial-of-benefits rules, as well as
the liberalization processes and transitional provisions.WT/REG/W/43
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ATTACHMENT 1
Minutes of the Meetings held in 2001
Twenty-Eighth Session – 22 February 2001
WT/REG/M/28
( Accession of the Kyrgyz Republic to the Customs Union
( Kyrgyz Republic and the Russian Federation
( Kyrgyz Republic and Ukraine
WT/REG/GEN/M/6 ( Kyrgyz Republic and Uzbekistan
( Kyrgyz Republic and Moldova
( Kyrgyz Republic and Kazakhstan
( Kyrgyz Republic and Azerbaijan, Armenia, Belarus,
Georgia, Moldova, Kazakhstan, Russian Federation,Ukraine, Uzbekistan, Tajikistan
WT/REG108/M/1 Estonia and Ukraine
WT/REG69/M/4 EC and Tuni sia (Euro-Mediterranean)
WT/REG91/M/2 EFTA and Morocco
WT/REG83/M/2 Hungar y and Lithuania
WT/REG84/M/2 Hungary and Latvia
WT/REG80/M/2 Poland and Latvia
Twenty-Ninth Session – 2-3 July 2001
WT/REG/M/29
( Accession of the Kyrgyz Republic to the Customs Union
( Kyrgyz Republic and the Russian Federation
( Kyrgyz Republic and Ukraine
WT/REG/GEN/M/7 ( Kyrgyz Republic and Uzbekistan
( Kyrgyz Republic and Moldova
( Kyrgyz Republic and Kazakhstan
( Kyrgyz Republic and Azerbaijan, Armenia, Belarus,
Georgia, Moldova, Kazakhstan, Russian Federation,
Ukraine, Uzbekistan, Tajikistan
WT/REG108/M/2 Estonia and Ukraine
WT/REG83/M/3 Hungar y and Lithuania
WT/REG84/M/3 Hungary and Latvia
WT/REG80/M/3 Poland and Latvia
WT/REG64/M/2 Estonia and the Faroe Islands (Government of Denmark)
WT/REG78/M/1 Poland and the Faroe Islands (Government of Denmark)
WT/REG69/M/5 EC and Tuni sia (Euro-Mediterranean)
WT/REG91/M/3 EFTA and Morocco
WT/REG107/M/1 Turkey and PolandWT/REG/W/43
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Thirtieth Session – 26-27 September 2001
WT/REG/M/30
WT/REG78/M/2 Poland and the Faroe Islands (Government of Denmark)
WT/REG64/M/3 Estonia and the Faroe Islands (Government of Denmark)
WT/REG108/M/3 Estonia and Ukraine
WT/REG107/M/2 Turkey and Poland
WT/REG116/M/1 Turkey and Latvia
WT/REG115/M/1 Turk ey and FYROM
WT/REG117/M/1 EF TA and FYROM
WT/REG109/M/1 EC and MexicoWT/REG/W/43
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ATTACHMENT 2
List of RTAs Under Examination9
RTAs for which factual examinations have been completed  and the draft examination reports are in
various stages of consultation and finalization (67):
ANZCERTA (services) EC-Slovenia NAFTA (goods and services)
Bulgaria-FYROM EC-Tunisia Norway-Faroe Islands
Canada-Chile EFTA-Bulgaria Poland-Latvia
Canada-Israel EFTA-Estonia Poland-LithuaniaCEFTA EFTA-Hungary Romania-Moldova
Czech Republic-Estonia EFTA-Israel Slovak Republic-Estonia
Czech Republic-Latvia EFTA-Latvia Slovak Republic-Latvia
Czech Republic-Lithuania EFTA-Lithuania Slovak Republic-Lithuania
Czech Republic-Turkey EFTA-Morocco Slovak Republic-TurkeyEC-P. of Andorra EFTA-Poland Slovenia-Croatia
EC-Bulgaria EFTA-Roma nia Slovenia-Estonia
EC-Czech Republic EFTA-Slovenia Slovenia-FYROM
EC-Enlargement (goods and
services)Estonia-Latvia-Lithuania Slovenia-Latvia
EC-Estonia Hungary-Latvia Slovenia-Lithuania
EC-Hungary (goods and
services)Hungary-Lithuania Switzerland-Faroe Islands
EC-Latvia Iceland-Faroe Islands Turkey-Bulgaria
EC- Lithuania Israel-Czech Republic Turkey-EstoniaEC-Poland (goods and services) Israel-Hungary Turkey-Hungary
EC-Romania Israel-Poland Turkey-Israel
EC-Slovak Republic (goods and
services)Israel-Slovak Republic Turkey-Lithuania
Israel-Slovenia Turkey-Romania
                                                     
9 Unless otherwise indicated, the examinations of RTAs listed below refer to trade in goods only.WT/REG/W/43
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RTAs under factual examination (20):
EC-Faroe Islands Estonia-Ukraine Kyrgyz Republic-
Uzbekistan
EC-Mexico Kyrgyz Republic-Azerbaijan, Armenia,
Belarus, Georgia, Moldova, Kazakhstan,
Russian Federation, Ukraine, Uzbekistan
and TajikistanMERCOSUR
EC-Turkey Kyrgyz Republic-Kazakhstan Poland-Faroe Islands
EFTA-FYROM Kyrgyz Republic-Moldova Turkey-FYROM
Estonia-Ukraine Kyrgyz Republic-Russian Federation Turkey-LatviaEuropean Union
(services)Kyrgyz Republic-Russian Federation,
Belarus, Kazakhstan  and TajikistanTurkey-Poland
Estonia-Faroe Islands Kyrgyz Republic-Ukraine
RTAs for which factual examination has not yet commenced (20):
Canada-Chile (services) EC-Czech Republic (services) EC-Romania (services)
Chile-Mexico (goods and
services)EC-Israel EC-South Africa
EC-Bulgaria (services) EC-Morocco EFTA-Palestinian Authority
European Economic Area
(services)EC-Palestinian Authority Kyrgyz Republic-Armenia
Georgia-Armenia Georgia-Kazakhstan Mexico-Israel
Georgia-Azerbaijan Georgia-Russian Federation
Georgia-Turkmenistan
Georgia-UkraineWT/REG/W/43
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ATTACHMENT 3
2001 Schedule for the Submission of Biennial Reports on RTAs
Reports submitted and considered by the CRTA (5)
European Free Trade Association (EFTA)
EFTA/Czech Rep.
EFTA/Slovak Rep.
EFTA/TurkeyAustralia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA)
10
Reports not submitted to the WTO (16)
ANZCERTA
Australia-Papua New Guinea Agreement (PATCRA)
Caribbean Community and Common Market (CARICOM)
Central American Common Market (CACM)
Czech/Slovak Customs UnionEuropean Communities (EC)/Algeria
EC/Cyprus
EC/Egypt
EC/Iceland
EC/JordanEC/Lebanon
EC/Malta
EC/Norway
EC/Certain Non-European C ountries and Territories II
EC/Syria
EC/Switzerland and Liechtenstein
United States/Israel
__________
                                                     
10 Report submitted under the 1999 schedule for the submission of biennial reports on RTAs