RESTRICTED
WORLD TRADE G/C/W/73/Rev.1
10April 1997
ORGANIZATION(97-1497)
Original: English Council forTrade inGoods
14April 1997
SRILANKA -ESTABLISHMENT OFANEW SCHEDULE VI
Draft Decision onExtension ofTime-Limit
Revision
Considering thattheCONTRACTING PARTIES toGATT 1947, bytheir Decision of
8November 19881,suspended theapplication oftheprovisions ofArticle IIofGATT 1947totheextent
necessary toenable theGovernment ofSriLanka toimplement theHarmonized Commodity Description
andCoding System (Harmonized System) on1January 1989andcarry outnegotiations subsequently;
Taking intoaccount that,bysuccessive Decisions, thetime-limit ofthewaiver granted to
SriLanka hasbeenextended until30April 19972.
Considering thatthefootnote toAnnex IA,Section onGATT 1994, sub-paragraph 1(b)(iii)
oftheAgreement establishing theWorld Trade Organization requires theMinisterial Conference to
establish atitsfirstsession arevised listofwaivers granted under Article XXV ofGATT 1947 and
stillinforce onthedateofentry intoforce oftheWTO Agreement;
Considering thatbyaDecision of31January 19953theGeneral Council established alistof
waivers existing attheentry intoforce oftheWTO Agreement, which included thewaiver granted
toSriLanka fortheestablishment ofanewSchedule VI;
Considering thatparagraph 2oftheUnderstanding inRespect ofWaivers ofObligations under
theGeneral Agreement onTariffs andTrade 1994 provides thatanywaiver ineffect onthedateof
entryintoforceoftheWTOAgreementshallterminateunlessextendedinaccordancewiththeprocedures
setoutinparagraph 1oftheaforementioned Understanding andthose ofArticle IXoftheWTO
Agreement onthedateofitsexpiry ortwoyears from thedateofentry intoforce oftheWTO
Agreement, whichever isearlier;
Taking intoaccount thatthedocumentation relevant tothetransposition ofSriLanka 'sSchedule
intotheHarmonized System wascirculated indocument SECRET/HS/26 on12January 1990;
1BISD, 35S/22.
2WT/L/170.
3WT/L/3 +Corr.1.
./.G/C/W/73/Rev.1
Page2
Considering thattheGovernment ofSriLanka hasinitiated Article XXVIII negotiations with
fourMembers, buthasbeenunable toconclude them because ofthesevere constraints incompleting
thepreparatory work forfurther negotiations asaresult ofthesecurity situation inthecountry coupled
withtheholding oflocalelections inMarch 1997;
Noting alsothatacounter-offer made byoneMember requires anin-depth study inviewof
itshighly sensitive political nature;
Considering that,inlightoftheabove, theGovernment ofSriLanka willfinditdifficult to
conclude negotiations before 30April 1997, butthattheGovernment ofSriLanka hasprovided the
assurance thatwithin theperiod oftherequested extension thenegotiations willbefinalized tothe
satisfaction ofallMembers concerned;
Considering thattheGovernment ofSriLanka, having fulfilled therequirements ofparagraph 1
oftheUnderstanding inRespect ofWaivers ofObligations under theGATT 1994, hasrequested a
further extension oftheexemption ofitsobligations under Article IIofGATT 19944;
TheGeneral Council, acting pursuant totheprovisions ofArticle IXoftheWTO Agreement,
Decides, inviewoftheexceptional circumstances outlined above, toextend thewaiver granted
toSriLanka bytheDecision of8November 1988, until31October 1997.
4G/L/164.