RESTRICTEDWORLD TRADE
ORGANIZATIONWT/MIN(99)/2
8 October 1999
(99-4224)
MINISTERIAL CONFERENCE
Third Session
Seattle, 30 November - 3 December 1999
APPRAISAL OF THE OPERATION OF THE
TRADE POLICY REVIEW MECHANISM
Report to Ministers
Chairman:  H.E. Mr. Jean-Marie Noirfalisse
I. INTRODUCTION
1. The Trade Policy Review Mechanism (TPRM) was established in 1989 on a provisional basis
and confirmed by Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization.
Paragraph F of Annex 3 requires that the Trade Policy Review Body (TPRB) "shall undertake an
appraisal of the operation of the TPRM not more than five years after the entry into force of the
Agreement Establishing the WTO.  The results of the appraisal will be presented to the MinisterialConference.  It may subsequently undertake appraisals of the TPRM at intervals to be determined by
it or as requested by the Ministerial Conference."
2. The TPRB agreed on 27 January 1999 on a procedure to appraise the operation of the TPRM.
Subsequently the TPRB held 12 informal meetings, in the period January to September 1999, and
adopted this Report to Ministers on 5 October 1999.  The meetings considered issues and proposals
brought forward by Members and was assisted by a Secretariat non-paper.
II. TPRM MISSION AND OBJECTIVES
3. The TPRB reaffirmed the relevance of TPRM's mission as defined in Annex 3.  The TPRM
had been conceived as a policy exercise and it was therefore not intended to serve as a basis for the
enforcement of specific WTO obligations or for dispute settlement procedures, or to impose new
policy commitments on Members.  The Mechanism should continue to focus on improved adherence
by all Members to rules, disciplines and commitments made under the Multilateral Trade Agreementsand, where applicable, the Plurilateral Trade Ag reements, and hence contribute to the smoother
functioning of the multilateral trading system, by achieving greater transparency in, and
understanding of, the trade policies and practices of Members.  Accordingly, the Mechanism enables
the regular collective appreciation and evaluation of the full range of individual Members' trade
policies and practices and their impact on the functioning of the multilateral trading system.  Reviewsunder the Mechanism should continue to take place, to the extent relevant, against the background of
the wider economic and development needs, policies and objectives of the Members concerned, as
well as of their external environment.  Greater attention should be given to transparency in
government decision-making on trade policy matters, in line with Paragraph B of Annex 3.
4. The TPRM had functioned effectively and its objectives were generally being achieved,
although not all Members had yet been reviewed.  The Mechanism had demonstrated that it had a
valuable public-good aspect, particularly in its contribution to transparency.  The Mechanism had alsoWT/MIN(99)/2
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been a catalyst for Members to reconsider thei r policies, had served as an input into policy
formulation and had helped identify technical assistance needs.
5. The TPRB welcomed the resource-saving aspects of using, under the authority of Annex 3,
trade-relevant macroeconomic information from other intergovernmental organizations, especially
under the aegis of the Marrakesh Ministerial Declaration on the "Contribution of the World TradeOrganization to Achieving Greater Coherence in  Global Economic Policymaking".  Under the
implementation of this Ministerial Declaration, information from, and cooperation with, other
intergovernmental organizations had been useful to the TPRM and these practices should be pursued.
Nevertheless, the different mandates of the WTO and other organizations required that the TPRM
maintain its capacity for its own analysis, it being the only multilateral mechanism undertaking
comprehensive evaluations of trade policies and their coherence within a given economic setting.
III. PROCESS OF PREPARING REVIEWS
6. The TPRB found that the process of preparing reviews was satisfactory, although it saw room
both for further streamlining and for the review process of developing and least-developed countries
(LDCs) to give greater attention to technical assi stance needs.  The entities associated with the
Integrated Framework for technical assistance to LDCs were encouraged to take into account the
appreciation arrived at by the Trade Policy Reviews for LDCs.  In general, present practices regardingSecretariat visits to capitals, and for the drafting and verification of Secretariat reports were thought
appropriate.  To avoid duplication, and, where rele vant, upon authorization by the Member concerned,
there should be a two-way flow of information be tween the Trade Policies Review Division (TPRD)
and other parts of the WTO Secretariat, including the Integrated Database;  however, this should
safeguard restricted information and not affect Members' rights and obligations.
IV. SECRETARIAT AND GOVERNMENT REPORTS
7. The TPRB saw the Secretariat and Government reports as complementary.  Governments
were free to define the structure and coverage of their own reports, but were encouraged to keep them
short, WTO-relevant and forward-looking, highlighting recent trade policy development and future
policy directions and their impact on trade.
8. The Secretariat should retain its capacity to prepare autonomous, in-depth reports that allowed
the TPRB to arrive at an independent, fully informed evaluation of a Member's trade policies and
practices.  The present structure and coverage of Secretariat reports was generally satisfactory;  care
should continue to be taken that the reports achieve an appropriate balance between the traditional and
relatively new areas of the WTO.  Reports should be WTO-relevant, comprehensive and
self-contained.  The TPRB saw scope for making the Summary Observations of the Secretariat report
more readable and for presenting in relevant parts of the report subsequent developments on issuesraised at the previous review.
V. TPRB MEETINGS
9. The TPRB considered that the current frequency of reviews provided a balance amongst
numerous competing considerations, including TPRM objectives, particularly the smoother
functioning of the multilateral trading system, the need to maintain a realistic workload, and thebenefits of reviewing all Members soon.
10. A solution had been found to past frequent rescheduling and "bunching" of TPRB meetings.
Nevertheless, the TPRB reiterated the importance for Members under review to respect deadlines,
thus avoiding slippages in the overall review pr ogramme, and of scheduling TPRB meetings to avoid
overlaps with other major WTO meetings.  Members should continue to be informed regularly ofprogress in the review programme and of possible delays affecting it.WT/MIN(99)/2
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11. The TPRB judged two half-days as an appropriate time-span for a TPRB review, and a
day-in-between as desirable.  More interactive discussion was encouraged, as was greater
participation in reviews of smaller Members, if possible at a rank reflecting the high-level
representation often sent by Members under review.  Reviews could highlight changes since the
previous review.
12. The TPRB felt it essential to meet the agreed four weeks lead time for document distribution
in all WTO official languages, as active participation in reviews depended on the timely availability
of documents.  The TPRB favoured flexibility on the lead time to submit written questions, as well as
on the role and number of discussants.  Current practice concerning minutes of meetings was seen as
appropriate, as was the inclusion of written questions and answers in minutes.  Members were
encouraged to provide written answers whenever possible during the TPRB meetings.  Questions left
unanswered during the review should be answered in writing, with responses made available to theMembership;  on this there should be a regular follow-up by the WTO Secretariat.
VI. DISSEMINATION
13. The TPRB considered present dissemination practices as satisfactory.  Members noted the
value of building awareness within the wider public of the work of the TPRB.  Taking existing
publication arrangements and budgetary implications into account, the fullest possible disseminationof reviews was encouraged, particularly through the Internet.
VII. RESOURCES
14. The TPRM absorbs some 5% of the WTO's Annual Budget.  By the end of the 1999, the
Mechanism will have conducted reviews of 71 Members, counting the European Union as one.  The
growing WTO Membership and the importance of reviewing all Members, including LDCs, at leastonce as soon as possible meant that all efforts should continue to be made for maximum efficiency in
the use of TPRM resources.
15. Efforts to maximize efficiency might include:  (i) a more considered use of grouped reviews;
(ii) more frequent use of consultants, with financial resources made available by Members on a
voluntary basis, although such bilateral contributio ns should not replace core budgetary funding for
the Mechanism;  and (iii) shorter, more focused reports and meetings.
16. To maximize efficiency, in addition, some Members suggested that a change in the review
cycle should be considered, but no agreement was reached.
VIII.  CONCLUSIONS
• The TPRM is functioning effectively and its mission and objectives remain important.
• All Members, including LDCs, should be re viewed at least once as soon as possible.
• Efforts should continue to be made to achieve maximum efficiency in the use of resources
allocated to the TPRM.
• Greater attention should be given to transparency in government decision-making on trade policy
matters, in line with Paragraph B of Annex 3.
• Reviews should continue to take place, to the extent relevant, against the background of the wider
economic and development needs, policies and objectives of the Member concerned, as well as of
its external environment.WT/MIN(99)/2
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• The Mechanism should maintain its capacity to undertake independent analysis, while continuing
to use, under the authority of Annex 3, trade-relevant macroeconomic information from otherintergovernmental organizations.
• To avoid duplication, and, where relevant, upon authorization by the Member concerned, there
should be a two-way flow of information between the TPRD and other parts of the
WTO Secretariat, including the Integrated Database;  however, this should safeguard restricted
information and not affect Members' rights and obligations.
• Care should continue to be taken that reports achieve an appropriate balance between the
traditional and relatively new areas of the WTO.
• Further improvements in the focus and readability of reports should continue to be sought.
• Deadlines for the review process should be me t and Members should continue to be informed
regularly of progress in the review programme.
• Steps should be taken to make review meetings more interactive, with greater participation by
Members.
• The TPRB should undertake a further appraisal of the operation of the TPRM not more than five
years after the conclusion of the Third WTO Ministerial or as requested by a Ministerial
Conference.
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