WORLD TRADE
ORGANIZATIONWT/GC/30
19 November 1999
(99-5004)
Original:  English/
French/
Spanish
FREE TRADE AREA OF THE AMERICAS
DECLARATION OF MINISTERS
FIFTH TRADE MINISTERIAL MEETING
TORONTO, CANADA
4 NOVEMBER 1999
Communication from Canada
The following communication, dated 15 November 1999, addressed to the Chairman of the
General Council, has been received from Canada with the request that it be circulated to Members.
_______________
I am pleased to enclose the Ministerial Declaration from the Fifth Trade Ministerial Meeting
of the Free Trade Area of the Americas (FTAA).  As you know, FTAA Ministers met in Toronto on3-4 November 1999.
I would draw your attention in particular to paragraphs 20-24 of the Declaration, dealing with
the Relationship between the FTAA and the WTO.
Paragraph 24 of the Declaration includes the decision of FTAA Ministers to "communicate
the substance of these agreements to the WTO General Council at the earliest opportunity."
_______________
1. We the Ministers Responsible for Trade of the 34 countries participating in the Free Trade
Area of the Americas (FTAA) negotiations held our Fifth Ministerial Meeting in Toronto,
Canada on 3-4 November 1999.
2. We welcome the considerable progress that has been made in the FTAA negotiations during
the initial eighteen-month stage under Canada’s chairmanship -- a goal we had set for
ourselves at our last meeting in San José. We reaffirm the principles and objectives that have
guided our work since Miami, including inter alia  that the agreement will be balanced,
comprehensive, WTO-consistent, and will constitute a single undertaking. We agree that we
are on our way to completing our work by 2005.
3. We believe in the importance of trade liberalization, both globally and regionally, in
generating economic growth and prosperity in the Hemisphere, and we welcome the impetus
being provided by the FTAA negotiations to fu rther liberalization.  We strongly support the
widening and deepening process of economic integration in our Hemisphere, including sub-
regionally, bilaterally and through the adoption of unilateral liberalization measures in some
of our economies . Underlining the objective of the FTAA to eliminate progressively  barriersWT/GC/30
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to trade and investment and thereby stimulate world trade, we reiterate our commitment to
avoid to the greatest extent possible the adoption of policies or measures that adversely affect
trade and investment in the Hemisphere. We acknowledge the progress being achieved in
implementing the commitments assumed by our governments in the Uruguay Round of
multilateral trade negotiations, and the ongoing preparatory work in the run-up to the ThirdMinisterial Conference of the World Trade Organization in Seattle in December.
4. Notwithstanding the many challenges that have confronted regional economies since our last
meeting, including financial turbulence, economic downturns and natural disasters in a
number of our countries, we are pleased that trade and investment flows across the
Hemisphere have in general been maintained. We are convinced that the commitment of our
countries to open economies, market-based principles and rules-based trading systems willcontribute to a rapid recovery and growth in the most-affected economies.
5. We reiterate that the negotiations of the FTAA shall take into account the broad social and
economic agenda contained in the Santiago and Miami Declarations of Principles and Plans
of Action with a view to contributing to rais ing living standards, to improving the working
conditions of all peoples in the Americas, and to better protecting the environment. We
reiterate that in designing the FTAA we shall take into account differences in the levels of
development and size of the economies in our Hemisphere, to create opportunities for the full
participation of the smaller economies and to increase their level of development. We
recognize the broad differences in the levels of development and size of the economies in ourHemisphere, and we will remain cognizant of those differences in our negotiations so as to
ensure that they receive the treatment that they require to ensure the full participation of all
the countries in the construction and benefits of the FTAA.  In order to comply with this, we
instruct the Trade Negotiations Committee (TNC ) to begin immediately to examine the ways
in which these differences could be treated in the negotiations, taking into account thetreatment given to them in other fora, and provide continuing guidance to Negotiating Groups
and report to us at our next meeting.
6. We welcome the benefits accruing from the FTAA process as a result of our early preparatory
work.  In addition to contributing to further economic integration, the FTAA process serves to
strengthen cooperation among the principal international institutions in the Hemisphere.  It
has promoted the creation of many partnerships and networks amongst our businesscommunities and other segments of civil society and, as a result, has brought about extensive
information-sharing and knowledge-transfer between our governments.  Looking ahead, we
are confident that the FTAA will not only strengthen our community of the Americas but, by
reducing and eliminating impediments to the free flow of goods, services and capital across
our borders, will substantially improve the well-being of the citizens of all of our countries.
Progress and Next Steps in the Negotiations
7. Over the past eighteen months the TNC has established the initial institutional foundation
necessary to launch effective negotiations. In particular we welcome: the agreement on andprogress being made in the implementation of work programs for each of the nine Negotiating
Groups, the Consultative Group on Smaller Economies, the Committee of Government
Representatives on the Participation of Civil Society, and the Joint Government-Private
Sector Committee of Experts on Electronic Commerce; the establishment and functioning of
the Administrative Secretariat in Miami – the initial site of the negotiations; progress towardsthe development of rules and procedures to govern the negotiations; and the creation of a
TNC Subcommittee on Budget and Administration to strengthen financial management of the
negotiations.WT/GC/30
Page 3
8. We reviewed and took note of the work done to date by the Negotiating Groups, including the
preparation of annotated outlines of their respective chapters in an FTAA agreement.  We
welcome the progress made by each of the nine Negotiating Groups in carrying out their work
programs as identified in their reports.  In lig ht of this progress, we instruct the Negotiating
Groups to prepare a draft text of their respective chapters, taking into account the progressmade in the preparation of the annotated outlines for each area, recognizing that they should
be viewed as frames of reference to facilitate the work of the Negotiating Groups and not as
definitive or exclusive outlines of an agreement.  The drafts should be remitted to the TNC no
later than 12 weeks prior to our next Ministerial meeting to be held in Argentina in
April 2001. The Negotiating Groups will have the objective of preparing a text that is
comprehensive in scope and that contains the texts on which consensus was reached and
places the texts on which consensus could not be reached between brackets. We also instructall Negotiating Groups that have responsibility over issues of access to markets for goods and
services to discuss the modalities and procedures for negotiations in their respective areas and
report to the TNC.
9. We instruct the TNC to assemble the texts provided by the Negotiating Groups and to prepare
a report for our consideration at the April 2001 Ministerial meeting indicating the areas in
which our guidance is needed in light of the draft texts of an FTAA agreement prepared by
the Negotiating Groups.  Further, we instruct the TNC to begin discussions of the overall
architecture of an FTAA agreement, e.g., general and/or institutional aspects of the
Agreement, and include in its report for our consideration a summary of that discussion.
10. To carry out the work that we have requested, we agree that the TNC should hold at least
three meetings during the next eighteen-months ending on 30 April 2001.  The first meeting
will be held in Guatemala by the end of April 2000.  The second meeting is to be held in
Barbados and the third meeting is to be held in Peru.
Structure and Organization
11. We reaffirm the TNC’s central role in managing the FTAA negotiations, including guiding
the work of the Negotiating Groups, the Committee of Government Representatives on the
Participation of Civil Society, the Consultative Group on Smaller Economies and the Joint
Government-Private Sector Committee of Experts on Electronic Commerce; ensuringtransparency in the negotiations; overseeing the Administrative Secretariat; overseeing the
implementation of approved business facilitation measures and identifying new business
facilitation measures; addressing issues unresolved after due diligence at the level of the
Negotiating Groups; and ensuring that progress is made in all of the Negotiating Groups and
areas of negotiation in carrying out their objectives and mandates.
12. With respect to inter-relationships among the Negotiating Groups, in particular the instruction
given to study the interaction between the Groups on Market Access and Agriculture and
trade and competition policy, including antidumping measures, we reiterate the obligation of
reporting to the TNC no later than December 2000.
Rotation of Chairs and Vice Chairs
13. We acknowledge and appreciate the work of the Chairmen and Vice-Chairmen of the FTAA
Negotiating Groups, Committees, and Consultative Group during the initial eighteen-monthstage of the negotiations.  Their efforts and professional dedication contributed significantly
to the progress achieved to date.  A new roster of the countries which will serve as the Chairs
and Vice-Chairs for the next eighteen-month period, which reflects the general guidelines on
the rotation and selection of Chairs and Vice-Chairs that we set in San José, is attached asWT/GC/30
Page 4
Annex I to this Declaration.
Business Facilitation
14. We agree to a number of specific business facilitation measures as part of our continuing
efforts to achieve progress in creating an FTAA. These measures reflect the substantive work
that has emanated from the FTAA process to date. We have adopted a thematic approach to
business facilitation and have concentrated our initial work in the areas of customs procedures
and enhanced transparency in response to the priorities identified by our business
communities.
15. We are pleased that resources have been identified in the Inter-American Development Bank
for technical assistance to facilitate implementation of these measures, particularly in smaller
economies.  In particular we appreciate the willingness of the Multilateral Investment Fund to
consider financial support for the implementation of these measures.
16. In the area of customs, we agree to im plement, beginning on 1 January 2000, the eight
specific measures set out in Annex II to this Declaration.  These measures will contribute
significantly to the conduct of business in the hemisphere by reducing transaction costs and
creating a more consistent and predictable business environment.
17. The transparency measures outlined in Annex III will make our procedures and regulations
better known and more accessible to the public.   The information cont ained in Annex III will
be kept current and relevant to our business communities and other interested parties, taking
advantage of new technologies.
18. We agree that business facilitation is an ongoing process and we have directed the TNC:
a) to supervise the full implementation of these measures by the target date of our next
Ministerial meeting;
b) to facilitate the provision of technical assistance for implementing the measures, in
particular for the smaller economies;
c) to review progress and report to us at our next meeting; and
d) to identify, consider and recommend additional business facilitation measures, calling on
experts as appropriate, and report to us at our next meeting.
19. We note that in addition to our work, initiatives that improve the business climate are
proceeding in the hemisphere in other fora as part of the broader effort being made on trade
and economic integration.
Relationship between the FTAA and the WTO
20. We reaffirm our commitment to the global, rules-based, trading system under the WTO, and
our support for the launch of new, multilateral negotiations at the Third MinisterialConference of the WTO in Seattle in December.  While acknowledging that the FTAA and
WTO processes are related, we stress the distinct aim of the FTAA negotiations – which is to
create a Free Trade Area in a manner that is consistent with the relevant WTO provisions. We
therefore reiterate our intention to pursue the FTAA negotiations with intensity and in
accordance with our established timelines.WT/GC/30
Page 5
21. With respect to the future multilateral negotiations on agriculture, we agree:
1) To work towards the objective of reaching an agreement, during the next WTO
Multilateral Negotiations on Agriculture, on the elimination of export subsidies onagricultural products and on the prohibition of their reintroduction in any form;
2) To work towards the earliest compliance of all commitments under the Uruguay
Round Agreement on Agriculture; and
3) To work towards having disciplines on other trade distorting practices and measures
in the next WTO Multilateral Negotiations on Agriculture.
22. Moreover, we are of the view that the agenda for the forthcoming WTO negotiations should
be balanced to respond to the interests of all economies.  It should also be sufficiently broad-
based to allow for meaningful negotiations.
23. We also agree that the interests of developing economies, including the smaller economies of
the FTAA, should be addressed through enhanced attention to the effective implementation of
special and differential treatment and other WTO provisions affecting developing countries
and increased support for capacity building and technical assistance, so as to facilitate their
ability to participate fully in and benefit from the WTO.
24. We further agree to communicate the substance of these agreements to the WTO General
Council at the earliest opportunity.
Other Issues
25. We reaffirm our commitment to the principle of transparency in the negotiating process and
to conducting our negotiations in such a manner as to broaden public understanding and
support for the FTAA. We established the Committee of Government Representatives on the
Participation of Civil Society as a mechanism to  fulfill this commitment, and we welcome the
report presenting the range of views received by the Committee from individuals and
organizations in the hemisphere. We have discussed the submissions and directed theCommittee to obtain ongoing input from Civil Society on trade matters relevant to the FTAA
through written submissions, using the San José  Declaration as the frame of reference, and to
provide a report outlining the full range of views received for our consideration at our next
meeting.
26. We take note of the recommendations from the Fifth Americas Business Forum (ABF).  The
recommendations we have received from previous ABFs, as well as those received here in
Toronto, serve as valuable input into the FTAA process.  The proposals received from our
business communities have been particularly helpful in shaping our work on business
facilitation within the FTAA.
27. We thank the Joint Government-Private Sector Committee of Experts on Electronic
Commerce for its detailed report and we note its many recommendations on broadening the
benefits of electronic commerce.  This report will be shared with other relevant authorities
within our governments, and with the public at large. We agree that the Joint Committee
should continue to meet over the next eighteen-month period as a non-negotiating group.  The
focus of its work should be to develop recommendations in time for our next meeting in
compliance with the Committee’s mandate.WT/GC/30
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28. With respect to the smaller economies, we take note of the report of the Consultative Group
on Smaller Economies, and agree with the recommendations of the Consultative Group that
have been accepted by the TNC concerning further work during the next stage of the
negotiations. We reiterate the importance we attach to the effective operation of theConsultative Group and call upon the TNC to take into account, in its deliberations, including
in the drafting of the Negotiating Group texts, and in its report to us in April 2001, its findings
and recommendations in order to create the opportunities for the full participation of the
smaller economies and to increase their level of development.
29. We request that the Tripartite Committee:
a) disseminate through the FTAA Home Page an inventory of training opportunities
available in FTAA-relevant areas of trade policy and negotiation for both government
officials and the private sector in the region in order to facilitate access to technical
assistance;
b) explore opportunities for technical assistance to facilitate the organization of an
inventory of measures which affect trade in services; and the establishment of a workprogram to improve statistics on trade in services;
c) explore opportunities for technical assistance to help countries, where necessary,
establish national contact points that could provide information on national legislation
and other measures affecting trade in services in the hemisphere;
d) maintain on an ongoing basis a calendar of deadlines established by the Negotiating
Groups for inputs from delegations; and
e) assist FTAA governments through the mechanism of the Consultative Group on
Smaller Economies to identify possible sources of technical assistance based on the
existing database prepared by the Tripartite Committee and the needs as identified by
countries.
30. We recognize and appreciate the analytical, technical and financial support that continues to
be provided by the institutions comprising  the Tripartite Committee -- namely the Inter-
American Development Bank, the Organization of American States and the United Nations
Economic Commission for Latin America and the Caribbean.  This support has been essential
to the conduct of the negotiations to date, and we ask the institutions of the Tripartite
Committee to continue to provide such assistance for FTAA-related matters.
31. We acknowledge the logistical support to the negotiations provided by the Administrative
Secretariat.  We appreciate the support of the various levels of government and the citizens of
Florida for the Administrative Secretariat during this first phase of the negotiations and look
forward to their continuing support during the period in which the Secretariat remains in
Miami. We also acknowledge the financial support of the institutions of the TripartiteCommittee, in particular the Inter-American Development Bank, to the Administrative
Secretariat.  We instruct the Chairman of th e TNC to make the necessary requests to the
Tripartite Committee institutions in order to obtain the support for the operations of the
Administrative Secretariat in Panama. Furtherm ore, we request a favourable response from
the Tripartite Committee institutions to such a pe tition in order to facilitate the relocation, as
well as to ensure the continuation of the negotiations in the new site.WT/GC/30
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Acknowledgement
32. We thank Argentina, Suriname, Bolivia and the United States for hosting meetings of the
TNC and Canada for its chairmanship of the FTAA negotiations during the first phase of the
negotiations and its hosting of  the Toronto Ministerial Meeting.  We look forward to our next
Ministerial meeting in Argentina in 2001.WT/GC/30
Page 8
ANNEX I
ROTATION OF CHAIRS AND VICE-CHAIRS FOR FTAA NEGOTIATING GROUPS,
COMMITTEES AND CONSULTATIVE GROUP
November 1999-March/April 2001
FTAA N EGOTIATING GROUPS CHAIR VICE-CHAIR
1 Market Access Chile Barbados
2 Investment Trinidad &
TobagoColombia
3 Services U.S.A. Peru
4 Government Procurement Canada Chile
5 Dispute Settlement Costa Rica Peru
6 Agriculture Brazil Ecuador
7 Intellectual Property Rights Mexico Paraguay
8 Subsidies, Anti-Dumping and Countervailing
DutiesVenezuela Uruguay
9 Competition Policy Colombia Canada
OTHER FTAA ENTITIES CHAIR VICE-CHAIR
1 Consultative Group on Smaller Economies Guatemala Bahamas
2 Committee of Government Representatives on the
Participation of Civil SocietyBolivia
3 Joint Government-Private Sector Committee of
Experts on Electronic CommerceUruguay CanadaWT/GC/30
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ANNEX II
CUSTOMS-RELATED MEASURES
1.  Temporary Importation / Temporary Admission of Certain Goods Related to Business
Travellers:
Establish new or streamline existing customs procedures for the entry of, and suspension of duties on,
promotional documents and other goods related to business travel, whether or not these goods
accompany the business traveller.
Primary Elements:
i. Provide for suspension of customs duties
ii. Identify promotional documents and other goods that do not require guarantees upon entry
iii. Establish streamlined procedures for promotional documents and other goods that remain in
the country
iv. Establish an allowable time period for temporary importation/temporary admission
v. Where possible, minimize the cost and administrative complexity of obtaining guarantees for
temporary importation/temporary admission.  Where possible, the amount of guarantees
required should not exceed the amount of duties otherwise payable
vi. Under normal circumstances, documentation and approval should be provided upon entry of
the business traveller
2.  Express Shipments:
Develop and implement procedures to expedite express shipments, taking into account the WCO
Customs Guidelines for Express Consignments Clearance  and the Cancun Memorandum, while
maintaining the appropriate control and customs selection.
Primary Elements:
i. Provide for separate expedited customs processing for express shipments
ii. Provide for pre-arrival processing of information and data related to express shipments
iii. Permit submission of a single manifest covering all of the goods in the shipment by the
express service company, through electronic or other means
iv. Where possible, and with the appropriate guarantees, provide for the release of certain goods
through submission of minimal documentation and/or deferred payment
v. In normal circumstances, express shipments should be released by customs authorities within
6 hours of the submission of necessary customs documentation provided the goods have
arrived
vi. In response to requests from express shipment companies, consideration could be given to
providing extended hours of service and/or customs processing at premises under the control
of the customs authority, at the discretion of customs authorities
3.  Simplified Procedures for Low Value Shipments:
Establish simplified, streamlined and expedited procedures for low value shipment transactions while
maintaining the appropriate customs control and selection.WT/GC/30
Page 10
Primary Elements:
i. Establish minimal documentation, data and procedural requirements based on value of goods
while maintaining the appropriate customs control and selection
ii. Develop procedures to permit the electronic submission of information
4.  Compatible Electronic Data Interchange (EDI) Systems and Common Data Elements:
Establish compatible electronic data interchange systems between traders and customs administrations
that foster expedited clearance procedures. Develop a core set of data elements required for the
administration of national customs regulations and requirements associated with the customs
clearance of goods.
Encourage the establishment of compatible electronic data interchange systems between customs
administrations that foster increased cooperation and information exchange. Develop parameters for
the bilateral or plurilateral exchange of information related to compliance with customs regulations
and requirements.
Primary Elements:
i. Develop electronic systems accessible to the trading community
ii. Develop capacity for electronic submission and processing of information and data prior to
arrival of the shipment
iii. Develop capacity for customs electronic/automated systems to work in conjunction with risk
analysis and targeting
iv. Work towards developing compatible electronic systems among customs administrations
v. As an initial phase, identify current data elements used in electronic systems established per
elements (i) to (iv) required by each customs administration, including, if feasible, those data
elements required to determine admissibility of entries or those required by other agencies
vi. Work towards developing a set of common data elements for customs clearance of goods
5.  Harmonized Commodity Description and Coding System:
Apply the 1996 Harmonized Commodity Description and Coding System, at the six digit level.
6.  Customs Information Dissemination/Hemispheric Guide on Customs Procedures:
Disseminate widely in the most user-friendly manner, basic up-to-date information on customs
procedures, laws, regulations, guidelines, and administrative rulings, taking intoaccount the Hemispheric Guide on Customs Procedures prepared by the Working Group on Customs
Procedures and Rules of Origin.
Primary Elements:
i. Update the Hemispheric Guide on Customs Procedures
ii. Disseminate the updated Hemispheric Guid e on Customs Procedures through the FTAA
Home Page
iii. Establish hyperlinks from the FTAA Home Page to national customs administrations’
homepages for future updates to the country-specific information contained in theHemispheric Guide on Customs ProceduresWT/GC/30
Page 11
7.  Codes of Conduct for Customs Officials:
Elaborate and implement national codes of conduct applicable to customs officials, taking into
account the Arusha Declaration.
Primary Elements:
i. Introduction of, or amendment to, national codes of conduct, legislation, policies or
regulatory instruments applicable to customs officials with provisions on standards of
conduct, conflict of interest, and possible sanctions and disciplinary action
ii. Review of the 12 elements contained in the WCO Arusha Declaration for assessment of
current practices and development of national implementation programs
8.  Risk Analysis/ Targeting Methodology:
Encourage risk management systems used as criteria for required verification activities, while
respecting the confidentiality of information.  Th e objective would be to allow for focusing of
customs enforcement activities on high-risk goods and travellers while facilitating clearance and
movement of low-risk goods.
Primary Elements:
i. Develop processing and release customs procedures and systems that include risk analysis
and targeting to identify high-risk goods, shipments and travellers
ii. Risk analysis through pre-arrival processing of information and data to identify or target high
risk-goods, shipments and travellers that will be subject to inspection and/or other customs
proceduresWT/GC/30
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ANNEX III
Transparency-Related Measures
1. Disseminate and periodically update information on tariffs and trade flows prepared in the
context of the Negotiating Group on Market Access through the FTAA Home Page.
 
2. Publish and disseminate the document “National Practices on Standards, Technical
Regulations and Conformity Assessment in the Western Hemisphere” prepared by the FTAA
Working Group on Standards and Technical Barriers to Trade.
 
3. Disseminate and periodically update the list of national contact points that provide
information on national legislation and other measures affecting trade in services.  This
information will include name, title, office, address, telephone, fax and e-mail.
 
4. Disseminate through the FTAA Home Page the existing procedures and requirements for
temporary entry of business persons in each of the FTAA countries.
 
5. Periodic dissemination of the statistical “Report on Foreign Investment in Latin America and
the Caribbean” prepared by ECLAC by linking it to the FTAA Home Page.
 
6. Disseminate through the FTAA Home Page and periodically update information on
commercial arbitration regimes existing in the countries of the Hemisphere, including the
institutions that provide commercial arbitration services.
 
7. Disseminate through the FTAA Home Page and periodically update the “Compendium on
Antidumping and Countervailing Duties Laws in the Western Hemisphere”, which includesinformation on national legislation and contact points.
 
8. Disseminate through the FTAA Home Page and periodically update the “Inventory of
Domestic Laws and Regulations Referring to Competition Policies in the Western
Hemisphere.”
9. Disseminate through the FTAA Home Page and periodically update the “Inventory of Dispute
Settlement Mechanisms, Procedures and Legal Texts Established in Existing Trade and
Integration Agreements, Treaties and Arrangements in the Hemisphere and in the WTO.”
 
10. Make information on government regulations, procedures, and competent authorities more
accessible, including via the use of Internet links to the FTAA Home Page, in the followingareas:
a) government procurement;
b) subsidies, antidumping and countervailing duties;
c) competition policy;
d) services;
e) intellectual property rights;
f) investment;
g) market access, which includes standards;
h) agriculture, which includes sanitary and phytosanitary measures; and
i) dispute settlement.
In addition to the above, a number of related inventories are also included on the official FTAA Home
Page.  New documents and inventories will be posted on the FTAA Home Page as they becomeWT/GC/30
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available.  Existing information will be updated periodically to ensure that they are kept current and
relevant to our business communities and other interested stakeholders.
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