WORLD TRADE
ORGANIZATIONG/C/W/433
12 November 2002
(02-6237)
Council for Trade in Goods
22 November 2002
DRAFT
REPORT (2002) OF THE COUNCIL FOR TRADE IN GOODS
In accordance with the "Procedures for an Annual Overview of WTO Activities and for
Reporting under the WTO" (WT/L/105), the Council for Trade in Goods is to report each year to the
General Council on the activities in the Council as well as in the subsidiary bodies. The reports are to
be "factual in nature, containing an indication of actions and decisions taken, with cross references to
reports of subordinate bodies and could follow the model of the GATT 1947 Council reports to theCONTRACTING PARTIES".
During 2002, the Council for Trade in Goods has met seven times in formal session on the
following dates:  22 and 27 March;  2 and 7 May;  23 and 24 May;  13 June;  27 June;  22, 23 and 30
July;  and 1 and 2 October.  The minutes of these meetings are contained in documents G/C/M/59 to65 inclusive
1.  The following subject matters which were raised and/or acted upon in the Council are
included in the report:
1.  Election of Chairperson
2.  Appointment of officers3.  Status of notifications
4.  Periodic reports of the Market Access Committee
5.  Waivers under Article IX of the WTO Agreement
6.  TRIMs
7.  Free Trade Agreements8.  Textiles
9.  Trade facilitation
10.  Notification by Bangladesh
11.  Implementation-related issues
12.  Transit issues
13.  China Transitional Review Mechanism
1. Election of Chairperson for the Council for Trade in Goods  (G/C/M/59)
At its meeting of 27 March, the Council elected  H.E. Ambassador Supperamaniam (Malaysia)
as its Chairman for 2002.
                                                     
1 Minutes of the meeting of 1-2 October 2002 to be circulated in G/C/M/65 are under preparation.G/C/W/433
Page 2
2. Appointment of Officers for the subsidiary bodies of the Council (G/C/M/59)
At its meeting of 27 March,2 the Council took note of the consensus on the following persons
nominated for election as Chairpersons of its subsidiary bodies:
Committee on Agriculture Dr Magdi Farahat (Egypt)3
Committee on Anti-Dumping Mr. Cristian Espinosa Canizares
(Ecuador)
Committee on Customs Valuation Mr. Raimundas Karoblis (Lithuania)
Committee on Import Licensing Mr. Hiromichi Matsushima (Japan)
Committee on Market Access Mr. Joshua Phoho Setipa (Lesotho)
Committee on Rules of Origin Mr. Stefan Moser (Switzerland)Committee on Safeguards Mr. Gustavo Nerio Lunazzi
(Argentina)
Committee on Sanitary and Phytosanitary Measures Mrs. Maria Fe M. Alberto-Chau Huu
(Philippines)
Committee on Subsidies and Countervailing Measures H.E. Mr. Milan Hovorka (Czech
Republic)
Committee on Technical Barriers to Trade Ms. Emily Earl (New Zealand)
Committee on Trade-Related Investment Measures Mr. Vasilli Notis (Greece)Working Party on State Trading Enterprises Mr. Aliyu Muhammed Abubakar
(Nigeria)
At the same meeting, the Council agreed to proceed on the understanding that as concerns Vice-
Chairpersons, it would be for the subsidiary bodies to  decide if they needed a Vice-Chairperson in cases
where the option existed under the respective Agreem ent and/or rules of procedure, and for the
respective Chairperson to hold the necessary consultations.
3. Status of Notifications under the Provisions of the Agreements in Annex 1A of the WTO
Agreement (G/C/M/48)
At its meeting of 13 June, the Council took note of document G/L/223/Rev.8 which updated
the situation with respect to the status of notifications and Members compliance therewith and
included notifications made up to and on 31 December 2001.
4. Periodic Reports of the Committee on Market Access (G/C/M/60 and 65)
At its meetings of 2 May and 2 October , the Council took note of the periodic reports (in
documents G/MA/114 and 116 respectively) of the Market Access Committee on inter alia  the requests
for waiver extensions and/or waivers made in c onnection with the transposition or renegotiation of
                                                     
2 Committee of Participants on the Expansion of Trade in Information Technology Products (ITA):
Mr. Preben Gregersen (Denmark).
3 Appointed prior to Chairman Hovorka's consultations.G/C/W/433
Page 3
schedules of tariff concessions and/or in connecti on with the introduction of harmonized system changes
into schedules of tariff concessions on 1 January 1996.
5. Waivers under Article IX of the WTO Agreement
(a) Zambia – Renegotiation of Schedule LXXVIII (G/C/M/60 and 65)
At its meeting of 2 May the Council consid ered a request by Zambia (G/L/537) for an
extension, until 31 October 2002.  At its meeting on 2 October The Council considered a request for a
further extension until 30 April 2003 (G/L/567).  At each meeting the Council approved the texts of
the draft decisions (G/W/370 and G/C/W/416 respectively), and agreed to transmit them to the
General Council for adoption.
(b) Introduction of Harmonized System (HS) 1996 changes in WTO Schedules of Tariff
Concessions – Requests for a waiver (G/C/M/60 and 65)
At its meeting of 2 May, the Council considered requests from 13 Members for waivers in
connection with the introduction of HS96 changes to their Schedules of Accessions.  The Council
approved the waiver requests and recommended that the draft decisions be forwarded to the General
Council for adoption.  At its meeting of 2 October, the Council considered seven requests for waiver
extensions in connection with the introduction of HS96 changes.  The Council approved the
extensions until 30 April 2003 and recommended that the relevant draft decisions be forwarded to the
General Council for adoption.
(c) Transposition of Schedules into the Harmonized System – Requests for extension of the
waiver from Nicaragua and Sri Lanka (G/C/M/60 and 65)
At its meeting of 2 May, the Council cons idered requests by Nicaragua (G/L/515) and
Sri Lanka (G/L/516) for an extension until 31 October 2002 of waivers already granted in connection
with the transposition of their schedules into the Harmonized System. The Council approved the texts
of the draft decisions on the waiver extension in G/C/W/351 (Nicaragua) and G/C/W/352 (Sri Lanka),and agreed to transmit them to the General Council for adoption.
At its meeting on 2 October, the Council considered a request from Sri Lanka for a further
extension until 30 April 2003 (G/L/565).  The Council approved the text of a draft decision
(G/C/W/415/Rev.1) and agreed to transmit it to the General Council for adoption.
(d) Introduction of Harmonized System 2002 chan ges into WTO Schedules of Concessions
(G/C/M/60 and 63)
At its meeting on 2 May, the Council recommended that the draft decision contained in
document G/C/W/367 be revised along agreed lines and forwarded to the General Council for
adoption as document  G/C/W/367/Rev.1.
At its meeting on 27 June, the Council considered a waiver request by Romania (G/L/553)
and approved a draft decision in document G/C/W/383 and proposed that it be forwarded to the
General Council for adoption.G/C/W/433
Page 4
(e) WTO Agreement on Customs Valuation – Request for a waiver by El Salvador (G/C/M/61
and 63)
At the meeting on 24 May, the Council took note of a request by El Salvador for a waiver
with respect to the application of minimum valu es (G/C/W/372).  At its meeting on 27 June, the
Council considered the relevant draft decision (G/C/W/388) and recommended that the request,
together with the decision, be forwarded to the General Council for adoption.
(f) WTO Agreement on Customs Valuation – Request for a waiver by Côte d'Ivoire (G/C/M/62)
At the meeting on 13 June, the Council considered the request with respect to the application
of minimum values (G/C/W/301/Add.2) and agreed  to forward the request and the draft decision
(G/C/W/385) to the Gene ral Council for adoption.
(g) Request for a WTO waiver – New EC special tariff arrangements to combat drug production
and trafficking (G/C/M/62 and 65)
At the meeting on 13 June, the Chairman recalled that under Other Business at the 24 May
meeting of the Council he made a statement with respect to the report of the CTG to the General
Council on this waiver request.  In view of the lack of agreement on this item, he announced his
intention to hold open-ended consultations.  At the meeting of 2 October, the Chairman noted that the
General Council Chairman had encouraged the CTG to persevere in their efforts to reach agreementon a report of the CTG to the General Council.  The Chairman noted that he would revert to this itemas soon as practicably possible.
6. TRIMs Agreement
(a) Review of the operation of the TRIMs Agreement under Article 9 (G/C/M/59, 60, 62, 64 and
65)
At its meetings on 22 March, 2 May
, 13 June , 23 July  and 2 October , the Council took note of
the statements made regarding, inter alia , the joint WTO/UNCTAD study on trade-related investment
measures and other performance requirements (G/C/W/307 and Add.1).
(b) Implementation issues related to TRIMs (G/C/M/59, 60, 62 and 64)
At the meeting of 22 March, the Council discussed how to handle the outstanding
implementation issues related to the TRIMs Agreement (tirets 37-40 of Job(01)/152/Rev.1).  At the
meeting of the Council on 7 May, the CTG took the following decision:  "Members agree in
accordance with Article 7.2 of the TRIMs Agreement, the CTG will assign to the Committee on
TRIMs the responsibility for conducting the work on the outstanding implementation issues containedin tirets 37-40 of document JOB(01)152/Rev.1.  The TRIMs committee shall report regularly on the
progress of its work to the CTG, which will report to the Trade Negotiating Committee in accordance
with paragraph 12 of the Doha Ministerial Declaration."  At its meetings on 13 June and 23 July, the
Chairman of the TRIMs Committee reported on the progress of its work to the CTG.  The Counciltook note of the reports and the statements made.
7. Free Trade Agreements (G/C/M/59 and 61)
At its meetings on 22 March and 24 May , the Council adopted the terms of reference under
which the CRTA should examine the following agreements:G/C/W/433
Page 5
(a) Free Trade Agreement Between Slovenia And Bosnia And Herzegovina - Notification From
The Republic Of Slovenia (WT/REG131/N/1, WT/REG131/1)
(b) Free Trade Area Between The EFTA States And Croatia - Notification From The Parties To
The Agreement  (WT/RE G132/N/1, WT/REG132/1)
(c) Free Trade Area Between The EFTA States And Jordan - Notification From The Parties To
The Agreement  (WT/RE G133/N/1, WT/REG133/1)
(d) Free Trade Agreement Between Turkey And Slovenia - Notification From The Parties To The
Agreement (WT/REG135/N/1, WT/REG135/1)
(e) Free Trade Area Between The United States And Jordan - Notification From The Parties To
The Agreement (WT/REG134/N /1 And Corr.1, WT/REG134/1)
(f) Free Trade Agreement between Chile and Costa Rica – Notification from the parties to the
Agreement (WT/REG 136/N/1, WT/REG136/1)
8. Textiles
(a) Major review of the implementation of the Agreement on Textiles and Clothing during the
second stage of the integration process pursuant to Article 8.11 of the ATC (G/C/M/59, 60,61, 62 and 64)
The CTG held three formal meetings in September and October 2001 to conduct the major
review, as required by ATC Article 8.11 (G/C/M/51, 52 and 56).  Thereafter a series of informal
consultations were held with a view to preparing a report for consideration by the CTG.  Progress in
these consultations was reported to the Council at its meetings held on 22 March, 2 May
, 24 May  and
13 June.  The Council took note at each of these meetings of the statements made.  At the meeting of
23 July the Council took note of the statements made and adopted the report on the major review.
(b) Doha Ministerial Decision on Implementation-related Issues and Concerns:  Request to the
CTG to examine proposals contained in paragraph 4.4 and 4.5 relating to the Agreement on
Textiles and Clothing (WT/MIN(01)/17) (G/C/M/60, 61, 62 and 64)
The Council conducted an examination of the proposals through a process of formal meetings
combined with informal consultations.  The situation in these consultations was reported to the
Council at its meetings held on 2 May, 24 May , 13 June  and 23 July .  At the Council's meeting on
30 July, the Chairman stated that, due to the fundamental differences of views, he was not in a
position to put a draft report with recommendations before the CTG, and that he would report thissituation to the General Council on 31 July.  The Council took note of the statements made at each
meeting and agreed to the Chairman's proposal.
(c) Request by Costa Rica, India, Indonesia, Pa kistan, Peru and Hong Kong, China:  CTG'S
oversight function pursuant to Article IV of the Agreement establishing the WTO –
transparency regarding new restrictions on textile and clothing products commented upon by
the Textiles Monitoring Body (G/C/W/ 260/Rev.1), (G/C/M/59, 60, 61, 62 and 64)
At its meetings of 22 March, 2 May , 24 May  and 13 June , the Council took note of the
statements made and at its meeting on 23 July, the Council took note of the Chairman's report.G/C/W/433
Page 6
9. Trade Facilitation (G/C/M/59, 61, 64 and 65)
At its meeting on 22 March, the Council agreed on a work programme for 2002 to address the
following three core agenda items:  (i) GATT Articles V, VIII and X each to be addressed in
consecutive meetings;  (ii) as a standing item, trade facilitation needs and priorities of Members,particularly of developing and least-developed countries;  (iii) as a standing item, technical assistance
and capacity-building.
At its meeting on 23 and 24 May, the Council discussed proposals
4 by several delegations on
how to improve and clarify GATT Article X (transparency).  The proposals covered various means to
improve transparency such as the installation of enquiry points, the introduction of an advanced ruling
system, the more systematic consultation between customs administrations and traders and theestablishment of effective appeal procedures.  Some delegations stressed the need for proposed
measures to address issues such as implications for human and financial resources as well as
differences in levels of development and corresponding different needs among Members.  Members
also discussed ways to identify their trade facilita tion needs and priorities and in relation to technical
assistance and capacity-building identified elements – including coherence, coordination and targetingof audience and area covered – essential for the successful execution of assistance activities.  The
Council took note of the proposals and the statements made.
At its meeting on 22 and 23 July, the Council discussed a number of proposals on how to
clarify and improve GATT Article VIII on fees and formalities connected with importation and
exportation.  Among the measures proposed were the simplification, standardization and streamlining
of import/export procedures, the use of international standards and instruments, commitments on fees
and charges, the acceptance of relevant commercially available information, the reduction of data
requirements, the enhanced utilisation of automation and the use of risk-assessment, pre-arrival
processing and post-auditing and the resp ect of the basic GATT/WTO principles of
non-discrimination, transparency and proportionality.  Some Members also made reference to the
mutually reinforcing nature of facilitation and bett er control/security, to attracting investment and
improving overall economic stability.  During the discussion, questions were raised relating to the
implementation of the proposed measures as well as to the challenges faced by many Members in
their efforts to facilitate trade such as the need to safeguard customs revenue, infrastructural
deficiencies and security concerns.  Under the second core agenda item, the Council discussed ways
to advance the identification of Members' trade facilitation needs and priorities.  With respect totechnical assistance and capacity-building, the Council took note of the activities of some Members
and of the Secretariat.  The Council took note of the proposals that were submitted and of the
statements that were made.
At its meeting on 1 and 2 October, the Council discussed several proposals on how to clarify
and improve GATT Article V (transit).  There was broad agreement on the existence of problems in
the area of transit, especially for landlocked countries.  The proposals underlined the necessity of
strengthening and operationalizing Article V provisions by introducing new binding rules.  Some
Members questioned the need for a rule-making exercise and underlined the limited implementation
capacities of a number of Members.  Some Members expressed a preference for trade facilitationmeasures to be undertaken autonomously.  Regardin g the identification of Members' trade facilitation
needs and priorities, some Members referred to the need to complete the harmonization work
programme on non-preferential rules of origin as an important trade facilitation measure.  Regarding
technical assistance and capacity-building, Member s emphasised the importance they attached to this
                                                     
4 For an overview of all proposals by delegations in  the discussion on trade facilitation, see document
"Review, clarification and improvement of GATT Article s V, VIII and X – Proposal s made by Delegations"
(G/C/W/-- forthcoming).G/C/W/433
Page 7
subject and to the work being done by bilateral donors and international organizations in this area, and
underlined the need to link WTO technical assistance to broader programmes through cooperation and
coordination with other international organizations and donors.  It was stressed that work in this area
should progress in parallel with the substantive part of the discussions in the Council, in order to
develop a technical assistance work programme directed both to providing guidance and to buildingcapacity to implement thereafter the actual results.  The Council  took note of the various submissions
that were made and of the statements by delegations.
10. Notification by Bangladesh under Section C of Article XVIII of the General Agreement
on Tariffs and Trade 1994 and the Decision of 28 November 1979 on safeguard action
for development purposes (G/C/M/59 and 60)
At its meetings on 22 March and 2 May , the Council took note  of statements made with
respect to the notification by Bangladesh (G/C/7).
11. Implementation-related issues arising from paragraph 12 of the Doha Ministerial
Declaration (WT/MIN(01)/DEC/1) (G/C/M/59)
The Council took note of the statements made with regard to a number of implementation
issues concerning textiles, TRIMs and tiret 99 in document Job(01)/152/Rev.1.
12. Transit issues (G/C/M/59 and 65)
(a) Request by Slovenia – Consideration of Croatian ban on road transit of crude oil and oil
products
At its meeting on 22 March, the Council took note  of the statements made.
(b) New Panama Canal transit tolls – Communication from Ecuador
At its meeting on 2 October, the Council took note  of the statements made.
13. Preparations in connection with paragraph 18  of the Protocol on the Accession of the
People's Republic of China (G/C/M/61, 61, 64 and 65)
At its meetings on 24 May, 13 June , 23 July  and 2 October , the Council took note of the
statements made with respect to China's transitional review, which was due to take place in the CTG
on 22 November 2002.
[PLEASE NOTE:  THIS REPORT WILL BE UPDATED IN ORDER TO REFLECT
THE WORK DONE BY THE COUNCIL AT ITS MEETING OF 22 NOVEMBER 2002.]
__________