. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/C/W/120
18 September 1998
(98-3569)
Council for Trade in Goods
1 October 1998
SRI LANKA - ESTABLISHMENT OF A NEW SCHEDULE VI
Draft Decision on Extension of Time-Limit
Considering that the CONTRACTING PA RTIES to GATT 1947, by their Decision of
8 November 19881, suspended the application of the provisions of Article II of GATT 1947 to the extent
necessary to enable the Government of Sri Lanka to implement the Harmonized Commodity Description
and Coding System (Harmonized System) on 1 Janua ry 1989 and carry out negotiations subsequently;
Taking into account that, by successive Decisi ons, the time-limit of the waiver granted to
Sri Lanka has been extended until 31 October 19982.
Considering that by a Decision of 31 January 19953 the General Council established a list of
waivers existing at the entry into force of the WTO Agreement, which included the waiver granted to Sri
Lanka for the establishment of a new Schedule VI;
Taking into account that the documentation relevant  to the transposition of Sri Lanka's Schedule
into the Harmonized System was circulated  in document SECRET/HS/26 on 12 January 1990;
Considering that the Government of Sri Lanka has initiated Article XXV III negotiations with
four Members, but has been unable to conclude them  because of several constraints in completing the
preparatory work for further negotiations as a result of the security situation in the country which has
consumed vast human and financial resources for safeguarding the territorial integrity of the country;
Considering that, in light of the above, the Government of Sri Lanka will find it difficult to
conclude negotiations before 31 October 1998 and will require some more time to engage in
consultations with all relevant agencies concerne d with regard to the latest proposals received;
Noting that the areas in which counter proposals have been received continue to be politically
sensitive in a climate of economic hardship;
Noting further that the Commission on Trade and Tariff which has been established in Sri
Lanka with the responsibility of looking into any an omalies and changes concerning tariff matters which
impinges directly on the negotiations, has not completed its report on National Tariff Policy in the
context of which negotiations will have to be progressed;
                                                     
     1BISD, 35S/22.
     2WT/L/266.
     3WT/L/3 + Corr.1.G/C/W/120
Page 2
Considering that the Government of Sri Lanka has assured its trading partners in these
negotiations that every effort will be made to conclude the negotiations satisfactorily and in the
mutual interest of all concerned as soon as possible.
Considering that the Government of Sri Lanka, having fulfilled the requirements of paragraph 1
of the Understanding in Respect of Waivers of Obligations under the GATT 1994, has requested a
further extension of the exemption of its obligations under Article II of GATT 19944;
The General Council, acting pursuant to the prov isions of Article IX of the WTO Agreement,
Decides, in view of the exceptional circumstances outlined above, to extend the waiver granted
to Sri Lanka by the Decision of 8 November 1988, until 30 April 1999.
__________
                                                     
     4G/L/257.