WORLD TRADE WT/L/195
18November 1996
ORGANIZATION(96-4873)
WTO AGREEMENTS WITH THE FUND AND THE BANK
Approved bytheGeneral Council atitsmeeting
onthe7,8and13November 1996
TheDirector-General wasmandated bytheGeneral Council (WT/GC/M/5) todevelop draft
agreementsforcooperationwiththeInternationalMonetaryFund("Fund")andtheWorldBank("Bank").
Inconformity withthismandate, theSecretariat worked withthestaffs oftheFund andtheBank in
thedevelopment oftherequested agreements, which areannexed (Annexes IandII,respectively).
Accompanying thesetwoagreements (asAnnex IAandAnnex IIA,respectively) areside-letters from
theManaging Director oftheFund andthePresident oftheBank. There arealsotwodocuments of
commentary onthecorresponding agreements (Annexes IIIandIV,respectively), which wereprepared
jointly andagreed between theWTO Secretariat andtheFund andBank staffs andwhich explain the
significance ofcertain provisions contained therein. Inaddition, achart (Chart I)isenclosed which
setsoutthemandate received fromtheGeneral Council andindicates themanner inwhich theprovisions
oftheagreements withtheFund andtheBank meetthismandate.
Commensurate withtheimportance attached bytheMinisters atMarrakesh tothestrengthening
ofcooperation between theWTO andtheFund andtheBank, theagreements withthesetwoinstitutions
representasolidstepforwardtothateffect.Theagreementsrecognizetheclosecollaborativerelationship
existing overthepastseveral decades between theGATT/WTO andtheFund andtheBank, andthe
importance ofstrengthening thatrelationship. They alsoprovide aformal inter-institutional basis on
which toimplement theDeclaration ontheContribution oftheWorld Trade Organization toAchieving
Greater Coherence inGlobal Economic Policymaking.
TheagreementssubstantiallystrengthenandgiveformalitytotheWTO'scooperativerelationships
withtheFund andtheBank while fullymaintaining ourrespective independence anddifferent rôles.
Theagreements provide concrete results onobservership andprocedures forconsultations toensure
theadoption ofconsistent andmutually supportive policies, exchange ofdocuments andaccess todata
bases, andoverall, provide forheightened cooperation inallareas ofmutual concern.WT/L/195
Page2
ANNEX I
Agreement between theInternational Monetary Fund
and theWorld Trade Organization
Preamble
CONSIDERINGthegrowinginteractionsbetweeneconomicpoliciespursuedbyindividual
countries arising from theglobalization ofmarkets;
RECOGNIZING theincreasing linkages between thevarious aspects ofeconomic
policymaking thatfallwithin therespective mandates oftheInternational Monetary Fund
("Fund") andtheWorld Trade Organization ("WTO"), andthecallintheMarrakesh Agreement
forgreater coherence among economic policies internationally;
RECOGNIZINGtheclosecollaborativerelationshipexistingoverthepastseveraldecades
between theFund andtheCONTRACTING PARTIES totheGeneral Agreement onTariffs
andTrade, andtheimportance ofcontinuing andstrengthening such arelationship between
theFund andtheWTO;
HAVING REGARD toArticle XoftheFund 'sArticles ofAgreement, which provides
that"theFund shall cooperate within theterms ofthisAgreement with anygeneral international
organization andwith public international organizations having specialized responsibility in
related fields";
HAVINGREGARDtoArticleIII.5oftheMarrakeshAgreementEstablishingtheWorld
Trade Organization, which provides that"with aview toachieving greater coherence inglobal
economicpolicymaking,theWTOshallcooperate,asappropriate,withtheInternationalMonetary
Fund";
HAVINGREGARDtotheDeclarationsintheMarrakeshAgreementontheContribution
oftheWorld Trade Organization toAchieving Greater Coherence inGlobal Economic
Policymaking andontheRelationship oftheWTO with theFund, andtotheprovisions of
Article XV:1, XV:2, XV:3 andArticles XIIandXVIII oftheGeneral Agreement onTariffs
andTrade 1994 (GATT 1994) andofArticles XI,XII,andXXVI oftheGeneral Agreement
onTrade inServices (GATS) concerning cooperation andconsultation, including onexchange
andtrade matters;
TheFund andtheWTO agree asfollows:
Paragraph 1
TheFund andtheWTO shall cooperate inthedischarge oftheir respective
mandates inaccordance with theprovisions ofthisAgreement.WT/L/195
Page3
Paragraph 2
TheFund andtheWTO shall consult with each other with aview toachieving
greater coherence inglobal economic policymaking.
Paragraph 3
TheFund shall inform theWTO ofanydecisions approving restrictions onthe
making ofpayments ortransfers forcurrent international transactions, decisions approving
discriminatory currency arrangements ormultiple currency practices, anddecisions
requesting aFund member toexercise controls toprevent alarge orsustained outflow of
capital.
Paragraph 4
TheFund agrees toparticipate inconsultations carried outbytheWTO Committee
onBalance-of-Payments Restrictions onmeasures taken byaWTO member tosafeguard
itsbalance ofpayments. Forthese consultations, existing procedures forFund
participation shall continue andmay beadapted asappropriate inaccordance with
paragraph 14below.
Paragraph 5
TheFund shall invite theWTO Secretariat tosend anobserver totheordinary
meetings oftheExecutive Board oftheFund ongeneral andregional trade policy issues,
including theformulation ofFund policies ontrade matters, andtodiscussions ofthe
World Economic Outlook (WEO) when there isasignificant trade content. Inaddition,
when consultations between theFund ’sstaff andtheWTO Secretariat lead tothe
conclusion thatmatters ofparticular common interest toboth organizations willbeunder
discussion atother meetings oftheExecutive Board, including country-specific matters, or
atmeetings oftheCommittee onLiaison with theWTO, theManaging Director shall
recommend thattheWTO Secretariat beinvited tosend anobserver tosuch meetings.
Paragraph 6
TheWTO shall invite theFund tosend amember ofitsstaff asanobserver tothe
meetings oftheMinisterial Conference, General Council, Trade Policy Review Body, the
three sectoral councils, Committee onTrade andDevelopment, Committee onRegional
Trade Agreements, Committee onTrade-Related Investment Measures, andCommittee on
Trade andtheEnvironment andtheir subsidiary bodies (excluding theCommittee on
Budget, Finance andAdministration, theDispute Settlement Body, anddispute settlement
panels). TheWTO shall invite theFund tosend amember ofitsstaff asanobserver to
meetings oftheWTO Dispute Settlement Body where matters ofjurisdictional relevance to
theFund aretobeconsidered. TheWTO shall alsoinvite theFund tosend amember ofWT/L/195
Page4
itsstaff toother meetings oftheDispute Settlement Body aswell asofother WTO bodies
forwhich attendance isnotprovided above (excluding theCommittee onBudget, Finance
andAdministration, anddispute settlement panels), when theWTO, after consultation
between theWTO Secretariat andthestaff oftheFund, finds thatsuch apresence would
beofparticular common interest toboth organizations.
Paragraph 7
TheFund andtheWTO shall make available toeach other inadvance theagendas,
andrelevant documents, forthemeetings towhich they areinvited pursuant totheterms
ofthisAgreement. Inaddition, theFund shall make available totheWTO Secretariat the
agendas oftheExecutive Board meetings atthetime oftheir circulation intheFund, and
theWTO shall make available totheFund theagendas oftheDispute Settlement Body at
thetime oftheir circulation intheWTO.
Paragraph 8
Each organization may communicate itsviews inwriting onmatters ofmutual
interest totheother organization oranyofitsorgans orbodies (excluding theWTO ’s
dispute settlement panels) andsuch views shall become partoftheofficial record ofsuch
organs andbodies. TheFund shall inform inwriting therelevant WTO body (including
dispute settlement panels) considering exchange measures within theFund ’sjurisdiction
whether such measures areconsistent with theArticles ofAgreement oftheFund.
Paragraph 9
Forthepurpose ofthisAgreement, theDirector-General oftheWTO andthe
Managing Director oftheFund shall ensure cooperation between thestaffs ofthetwo
institutions and, tothatend, shall agree onappropriate procedures forcollaboration,
including access todatabases, andexchanges ofviews onjurisdictional andpolicy issues.
Paragraph 10
TheFund ’sstaff shall consult with theWTO Secretariat onissues ofpossible
inconsistency between measures under discussion with acommon member andthat
member ’sobligations under theWTO Agreement. TheWTO Secretariat shall consult with
theFund ’sstaff onissues ofpossible inconsistency between measures under discussion
with acommon member andthatmember ’sobligations under theFund ’sArticles of
Agreement.WT/L/195
Page5
Paragraph 11
TheFund shall provide theWTO, promptly after circulation totheExecutive
Board, fortheconfidential useofitsSecretariat, with staff reports andrelated background
staff papers onArticle IVconsultations andonuseofFund resources oncommon
members andonFund members seeking accession totheWTO, subject totheconsent of
themember.
Paragraph 12
TheWTO shall provide theFund, fortheconfidential useofitsmanagement and
staff, with Trade Policy Review Reports, summary records andreports ofCouncils, Bodies
andCommittees, andreports ofWTO Members tothese organs.
Paragraph 13
Each party tothisAgreement shall ensure thatanyinformation communicated
under thisAgreement shall beused only within thelimits specified bytheother party.
Paragraph 14
TheDirector-General oftheWTO andtheManaging Director oftheFund shall be
responsible fortheimplementation ofthisAgreement and, tothateffect, shall make such
arrangements asthey deem appropriate.
Paragraph 15
This Agreement shall bereviewed upon therequest ofeither party andmay be
amended bymutual agreement.
Paragraph 16
This Agreement may beterminated byeither party bywritten notice totheother
and, unless otherwise agreed bytheparties, shall terminate sixmonths after receipt ofsuch
notice.
Paragraph 17
Following approval bytheGeneral Council oftheWTO andtheExecutive Board
oftheFund, thisAgreement shall enter intoforce onthedate ofitssignature.WT/L/195
Page6
Tobeadded attime ofsignature:
Signed at__________on _____________ induplicate
FortheWorld Trade Organization, FortheInternational Monetary Fund,
Director-General Managing DirectorWT/L/195
Page7
ANNEX IA
Draft Accompanying Letter from Mr.Camdessus
Dear Mr.Ruggiero:
Itake great pleasure intransmitting totheWorld Trade Organization theattached
WTO/IMF Cooperation Agreement asapproved bytheFund 'sExecutive Board on
,1996.
Inrespect oftheInterim andDevelopment Committees, andinorder tofoster
closer cooperation between ourinstitutions, Ihave recommended thattheDirector-General
oftheWTO beinvited regularly asanobserver tothese committees 'plenary sessions, as
well astothose restricted sessions where matters ofcommon interest aretobeaddressed.
Very truly yours,
Michel Camdessus
Managing DirectorWT/L/195
Page8
ANNEX II
Agreement between theInternational Bank forReconstruction
and Development, theInternational Development Association
and theWorld Trade Organization
AGREEMENT, dated__________,_____,_____, between theINTERNATIONAL
BANK FOR RECONSTRUCTION AND DEVELOPMENT, theINTERNATIONAL
DEVELOPMENT ASSOCIATION (hereinafter collectively referred toastheWorld Bank)
andtheWORLD TRADE ORGANIZATION (hereinafter referred toasWTO).
Preamble
CONSIDERING thegrowing interactions between economic policies pursued by
individual countries arising from theglobalization ofmarkets;
RECOGNIZING theincreasing interlinkages between various aspects ofeconomic
policymaking thatfallwithin therespective mandates oftheWorld Bank andtheWTO
andthecallintheMarrakesh Agreement forgreater coherence among economic policies
internationally;
RECOGNIZING theclose collaborative relationship existing over thepastseveral
decades between theWorld Bank andtheCONTRACTING PARTIES totheGeneral
Agreement onTariffs andTrade, andtheimportance ofcontinuing andstrengthening such
arelationship between theWorld Bank andtheWTO;
HAVING REGARD toArticle V,Section 8(a) oftheArticles ofAgreement ofthe
International Bank forReconstruction andDevelopment, which provides thattheBank
"shall cooperate with anygeneral international organization andwith public international
organizations having specialized responsibilities inrelated fields",
HAVING REGARD totheDeclaration ontheContribution oftheWorld Trade
Organization toAchieving Greater Coherence inGlobal Economic Policymaking, andto
Article III.5 oftheMarrakesh Agreement Establishing theWorld Trade Organization,
which provides that"with aview toachieving greater coherence inglobal economic
policymaking, theWTO shall cooperate, asappropriate, with theInternational Monetary
Fund andwith theInternational Bank forReconstruction andDevelopment andits
affiliated agencies".
TheWorld Bank andtheWTO agree asfollows:WT/L/195
Page9
Paragraph 1
TheWorld Bank andtheWTO shall cooperate inthedischarge oftheir respective
mandates inaccordance with theprovisions ofthisAgreement.
Paragraph 2
TheWorld Bank andtheWTO shall consult with each other with aview to
achieving greater coherence inglobal economic policymaking.
Paragraph 3
TheWorld Bank agrees thattheWTO begranted observer status attheAnnual
Meetings ofitsBoard ofGovernors. TheWTO agrees thattheWorld Bank begranted
observer status atmeetings ofitsMinisterial Conference.
Paragraph 4
TheWorld Bank shall invite theWTO Secretariat tosend anobserver tothe
meetings oftheExecutive Directors oftheWorld Bank ongeneral andregional trade
policy issues, including theformulation ofWorld Bank policies ontrade matters. In
addition, when consultations between theWorld Bank 'sstaff andtheWTO Secretariat lead
toaconclusion thatmatters ofparticular common interest toboth organizations willbe
under discussion atother meetings oftheExecutive Directors, including country specific
matters, thePresident oftheWorld Bank shall recommend thattheWTO Secretariat be
invited tosend anobserver tosuch meetings.
Paragraph 5
TheWTO shallinvite theWorld Bank tosendamember ofitsstaffasanobserver
tothemeetings oftheGeneral Council, Trade Policy Review Body, thethree sectoral
councils, Committee onTrade andDevelopment, Committee onRegional Trade
Agreements, Committee onTrade-Related Investment Measures, andCommittee onTrade
andEnvironment andtheirsubsidiary bodies (excluding theDispute Settlement Body, the
Committee onBudget, Finance andAdministration anddispute settlement panels). The
WTO shallinvite theWorld Bank tosendamember ofitsstaffasanobserver to
meetings ofother WTO bodies forwhich attendance isnotprovided above (excluding the
Committee onBudget, Finance andAdministration anddispute settlement panels) where
theWorld Bank andtheWTO expect thatparticular matters ofcommon interest toboth
organizations willbeunder discussion.WT/L/195
Page10
Paragraph 6
TheWorld Bank andtheWTO shallmake available toeachother inadvance the
agenda, andrelevant documents, forthemeetings towhich theyareinvited pursuant to
theterms ofthisAgreement. Inaddition, theWorld Bank shallmake available tothe
WTO Secretariat agendas ofmeetings oftheExecutive Directors atthetimeoftheir
circulation intheWorld Bank, andtheWTO shallmake available totheWorld Bank the
agendas ofother bodies atthetimeoftheircirculation intheWTO.
Paragraph 7
Forthepurposes ofthisAgreement, theDirector-General oftheWTO andthe
President oftheWorld Bank shall ensure cooperation between thestaffs ofthetwo
institutions who, tothatend, asappropriate, shall share access todatabases, undertake joint
research andtechnical cooperation activities andexchange views onpolicy issues.
Paragraph 8
TheWTO Secretariat andtheWorld Bank staffshallconsult andexchange views
onallmatters ofmutual interest withtheview toensuring theadoption ofconsistent and
mutually supportive policies. Tothatend,theyshallkeepeachother regularly informed
oftheirprogrammes andactivities inmatters related tointernational trade.
Paragraph 9
Subject tosuchlimitations asmaybenecessary forsafeguarding ofconfidential
material, theWTO andtheWorld Bank shallarrange thetimely exchange ofinformation,
reports andother documents ofmutual interest.
Paragraph 10
Each party tothisAgreement shallensure thatanyinformation communicated
under thisAgreement shallbeusedonlywithin thelimits specified bytheother party.
Paragraph 11
TheDirector-General oftheWTO andthePresident oftheWorld Bank shallbe
responsible fortheimplementation ofthisAgreement and,tothateffect, shallmake such
arrangements astheydeem appropriate.WT/L/195
Page11
Paragraph 12
ThisAgreement shallbereviewed upon therequest ofeither party andmaybe
amended bymutual agreement.
Paragraph 13
ThisAgreement maybeterminated byeither party bywritten notice totheother
andunless otherwise agreed bytheparties, shallterminate sixmonths afterreceipt of
suchnotice.
ThisAgreement shallenter intoforce onthedateofitssignature.
Signed at___________________ on___________________________ induplicate.
FortheWorld Trade Organization, FortheWorld Bank,
Director-General PresidentWT/L/195
Page12
ANNEX IIA
Draft Accompanying Letter from Mr.Wolfensohn
Dear Mr.Ruggiero,
Itakegreat pleasure intransmitting totheWorld Trade Organization theattached
World Bank/WTO Agreement asapproved bytheExecutive Directors on ,
1996.
Inrespect oftheDevelopment Committee, andinorder tofoster closer
cooperation between ourinstitutions, Ihaverecommended thattheDirector-General of
theWTO beinvited regularly asanobserver tothiscommittee 'splenary sessions, aswell
astothose restricted sessions where matters ofcommon interest aretobeaddressed.
Very truly yours,
James D.Wolfensohn
PresidentWT/L/195
Page13
ANNEX III
Agreed Commentary
onthe
Agreement between theInternational Monetary Fund
and theWorld Trade Organization
(NoCommentary onthePreamble)
Paragraph 1
The Fund and theWTO shall cooperate inthedischarge oftheir respective
mandates inaccordance with theprovisions ofthisAgreement.
Comment: Under thisprovision, theAgreement provides thebasis forcooperation
between theFund andtheWTO.
Paragraph 2
The Fund and theWTO shall consult with each other with aview toachieving
greater coherence inglobal economic policymaking.
Comment: Under thisprovision, itisagreed thattheFund andtheWTO will
consult with each other attheinstitutional level with aview toachieving greater
coherence inglobal economic policymaking. Aworking group oncoherence
(comprising senior staff from theFund, theWorld Bank, andtheWTO) hasbeen
established andwillprepare ajoint report fortheexecutive heads oftheir
respective institutions onanapproach toachieving greater coherence inglobal
economic policymaking. Thereport willconsider thescope ofthesubject, identify
thetypes ofissues tobecovered, andsuggest potential mechanisms for
implementation.
Paragraph 3
The Fund shall inform theWTO ofanydecisions approving restrictions onthe
making ofpayments ortransfers forcurrent international transactions, decisions
approving discriminatory currency arrangements ormultiple currency practices, and
decisions requesting aFund member toexercise controls toprevent alarge or
sustained outflow ofcapital.
Comment: This information onFund decisions isrelevant totheimplementation of
GATT andGATS because ofcertain consequences under these Agreements when a
measure isconsistent with theFund ’sArticles (Article XVofGATT 1994 andWT/L/195
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Article XIoftheGATS). Additionally, under theGATS, members areallowed to
impose controls oncapital transactions related totheir scheduled commitments
under certain circumstances, including ifsuch controls areimposed attherequest
oftheFund. Inpractice, theFund ’sauthority torequest capital controls
(Article VI,Section 1(a) oftheFund ’sArticles) hasnever been used.
Non-approval ofexchange measures thatconstitute restrictions under the
Fund ’sArticles (and may besubject toconsultation ontheir trade implications
under WTO balance-of-payments provisions oraction under WTO dispute
settlement) would notbeseparately notified totheWTO. Information onthese
measures, however, iscontained instaff reports onArticle IVConsultations, which
theWTO Secretariat willreceive (seeparagraph 11); additionally, theFund 'sstaff
would beready torespond totheSecretariat ’srequests forclarifications ontheir
status.
Paragraph 4
The Fund agrees toparticipate inconsultations carried outbytheWTO
Committee onBalance-of-Payments Restrictions onmeasures taken byaWTO
member tosafeguard itsbalance ofpayments. Forthese consultations, existing
procedures forFund participation shall continue and may beadapted asappropriate
inaccordance with paragraph 14below.
Comment: Theconsultations would take place asrequested bytheWTO forthe
operation ofitsrules ontrade-related measures taken forbalance ofpayments
reasons. This provision makes permanent theprovisional agreement contained ina
December 1994 exchange ofletters between theFund andtheChairman ofthe
GATT Committee onBalance ofPayments toapply totheWTO theprocedures that
existed vis-à-vistheGATT andtoextend such procedures toservices.
Under existing procedures, theWTO Secretariat andtheFund ’sstaff
coordinate sothatthetiming oftheconsultations willbesuitable totheconsulting
Member andtheinstitutions, with aview toensuring thattheFund isinaposition
toprovide therequisite information. TheFund provides totheWTO Committee on
Balance-of-Payments Restrictions themost recent RED, subject toconsent ofthe
member, andsupplementary background information (incases where theRED may
require updating) andastatement ontheMember 'sbalance ofpayments situation
andexternal reserve position, which areapproved bytheBoard, normally ona
lapse oftime basis. TheFund ’sstaff receives andcomments onabackground
document thattheWTO Secretariat prepares based inpart ontheArticle IV
Consultation Report andbackground papers thatitreceives routinely from the
Fund (seeparagraph 12onprovision ofdocuments). TheFund ’srepresentative
participates inthediscussions andisavailable toanswer questions raised by
Committee members.
Theparagraph also provides thattheprocedures may beadapted (see
below, paragraph 14onimplementation).WT/L/195
Page15
Paragraph 5
The Fund shall invite theWTO Secretariat tosend anobserver tothe
ordinary meetings oftheExecutive Board oftheFund ongeneral and regional trade
policy issues, including theformulation ofFund policies ontrade matters, and to
discussions oftheWorld Economic Outlook (WEO) when there isasignificant trade
content. Inaddition, when consultations between theFund ’sstaff and theWTO
Secretariat lead totheconclusion that matters ofparticular common interest toboth
organizations willbeunder discussion atother meetings oftheExecutive Board,
including country-specific matters, oratmeetings oftheCommittee onLiaison with
theWTO, theManaging Director shall recommend that theWTO Secretariat be
invited tosend anobserver tosuch meetings.
Comment: This paragraph deals with attendance byarepresentative oftheWTO
Secretariat, asanobserver, atthespecified meetings oftheFund ’sExecutive
Board. Adistinction ismade between twotiers ofmeetings. With respect tothe
firsttier, theAgreement provides forastanding invitation toordinary meetings of
theFund ’sExecutive Board when thetopic ofdiscussion isgeneral orregional
trade policy issues (such astheComprehensive Trade Paper) orthatadiscussion
ontheWorld Economic Outlook involves asignificant trade content. Asused in
thisprovision, theterm “trade content ”isunderstood tomean notonly trade in
goods andservices, butalso trade-related matters within thescope ofthe
Agreements annexed totheAgreement Establishing theWTO.1Thereference to
“ordinary ”meetings means thatthestanding invitation does notapply when the
Executive Board exercises itsprerogative tomeet in“restricted ”sessions, which
exclude allobservers andlimit attendance bytheFund ’sstaff.2
Thesecond tierprovides forthepossibility ofadhocinvitations totheWTO
Secretariat tosend anobserver toExecutive Board meetings notincluded inthe
firsttier. Under theprocedure established bytheprovision, either WTO
Secretariat ortheFund ’sstaff may initiate informal consultations onpossible
attendance bytheWTO Secretariat representative attherelevant meeting ofthe
Executive Board ortheCommittee onLiaison with theWTO. When both staffs
conclude thatthematter isofparticular common interest toboth institutions, the
Managing Director oftheFund shall recommend thataninvitation beextended to
1Thefollowing agreements areannexed totheAgreement Establishing theWTO: Annex 1:
GATT 1994 andagreements onagriculture, sanitary andphytosanitary measures, textiles and
clothing, technical barriers totrade, trade-related investment measures, antidumping measures,
customs procedures, preshipment inspection, rules oforigin, import licensing, subsidies and
countervailing measures, safeguards, trade related aspects ofintellectual property andtheGATS;
Annex 2:thedispute settlement understanding; Annex 3:trade policy review mechanism, and
Annex 4:theplurilateral trade agreements ontrade incivilaircraft, government procurement,
dairy, andbovine meat.
2Inpractice, restricted sessions occur infrequently; in1995, forexample, onlyfiveExecutive
Board meetings wererestricted outofatotalof124.WT/L/195
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thatmeeting. Theword “particular ”means thatsuch cases should have sufficient
importance forboth institutions. ItwillbefortheExecutive Board todecide
whether toextend theinvitation inanygiven case, taking intoaccount the
Managing Director ’srecommendation.
Ithasbeen agreed thattheManaging Director willrecommend thatthe
Director-General beinvited toattend, asanobserver, meetings oftheInterim and
Development Committees, aspertheattachment.
Paragraph 6
The WTO shall invite theFund tosend amember ofitsstaff asanobserver to
themeetings oftheMinisterial Conference, General Council, Trade Policy Review
Body, thethree sectoral councils, Committee onTrade and Development, Committee
onRegional Trade Agreements, Committee onTrade-Related Investment Measures,
and Committee onTrade and theEnvironment and their subsidiary bodies
(excluding theCommittee onBudget, Finance and Administration, theDispute
Settlement Body, and dispute settlement panels). The WTO shall invite theFund to
send amember ofitsstaff asanobserver tomeetings oftheWTO Dispute Settlement
Body where matters ofjurisdictional relevance totheFund aretobeconsidered.
The WTO shall also invite theFund tosend amember ofitsstaff toother meetings
oftheDispute Settlement Body aswell asofother WTO bodies forwhich attendance
isnotprovided above (excluding theCommittee onBudget, Finance and
Administration, and dispute settlement panels), when theWTO, after consultation
between theWTO Secretariat and thestaff oftheFund, finds that such apresence
would beofparticular common interest toboth organizations.
Comment: Asinparagraph 5,attendance atthespecified meetings isprovided for
amember oftheFund ’sstaff who would attend asanobserver. Two situations are
also distinguished. First, theprovision provides astanding invitation toall
meetings ofthebodies specified inthefirstsentence, andtotheDispute Settlement
Body where matters ofjurisdictional relevance totheFund aretobeamong those
considered. Second, forother meetings ofWTO bodies (except thetwospecifically
excluded) aninvitation willbeextended incases where therelevant WTO body
finds, after consultation between theWTO Secretariat andtheFund ’sstaff, thatthe
meeting includes amatter ofparticular common interest toboth institutions (asthis
term isexplained inthecomment toparagraph 5).
InthisAgreement, thephrase “dispute settlement panels ”includes panels,
arbitrators andtheAppellate Body established under theWTO Dispute Settlement
Understanding, theTextiles Monitoring Body established under theWTO
Agreement onTextiles andClothing, thePermanent Group ofExperts established
under theWTO Agreement onSubsidies andCountervailing Measures, panels
appointed bytheindependent entity established pursuant totheWTO Agreement on
Preshipment Inspection andanyother bodies with restricted membership
constituted forthesettlement ofdisputes.WT/L/195
Page17
Paragraph 7
The Fund and theWTO shall make available toeach other inadvance the
agendas, and relevant documents, forthemeetings towhich they areinvited pursuant
totheterms ofthisAgreement. Inaddition, theFund shall make available tothe
WTO Secretariat theagendas oftheExecutive Board meetings atthetime oftheir
circulation intheFund, and theWTO shall make available totheFund theagendas
oftheDispute Settlement Body atthetime oftheir circulation intheWTO.
Comment: Formeetings towhich representatives ofeither institution areinvited,
each institution willmake available theagenda andrelevant documents inadvance
ofthemeeting. Theprovision also obliges theFund tosend totheWTO
Secretariat theagendas ofallExecutive Board meetings when they arecirculated
intheFund, (which isnormally thedaybefore themeeting) andobliges theWTO
tosend totheFund theagendas oftheDispute Settlement Body when they are
circulated intheWTO. Inaddition, asaninformal arrangement, theFund ’sstaff
willprovide acopy oftheTentative Schedule ofExecutive Board meetings tothe
WTO Secretariat, foritsconfidential use,shortly after itiscirculated intheFund.
Ingeneral, these measures should permit each institution tobeadequately informed
oftheactivities oftheother inatimely manner.
Paragraph 8
Each organization may communicate itsviews inwriting onmatters ofmutual
interest totheother organization oranyofitsorgans orbodies (excluding theWTO ’s
dispute settlement panels) and such views shall become part oftheofficial record of
such organs and bodies. The Fund shall inform inwriting therelevant WTO body
(including dispute settlement panels) considering exchange measures within the
Fund ’sjurisdiction whether such measures areconsistent with theArticles of
Agreement oftheFund.
Comment: This provision allows each organization tocommunicate itsviews toany
organ orbody oftheother organization (other than thebodies specifically
excluded). While these communications may cover allmatters, inpractice, they are
expected tobeused only forpurposes ofcommunicating views onimportant matters
ofpolicy and/or jurisdiction. Astheviews communicated would beviews ofthe
organization, they would beapproved bytheappropriate institutional body before
their transmittal. Theprovision also requires thatsuch views beincluded inthe
official record oftherelevant body ororgan, which means they must benoted, but
arenotbinding ontheother party.
Also, under thisprovision, theFund isrequired toinform aWTO body
considering exchange measures within theFund ’sjurisdiction (including adispute
settlement panel) whether such measures areconsistent with theFund ’sArticles as
isrelevant fortheapplication ofcertain provisions intherelated agreements
(GATT Article XVandGATS Article XI;seealso comment onparagraph 3above).WT/L/195
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Thescope ofthiscommunication islimited tojurisdictional matters andwould not
include views onpolicy matters. Astheprovision of“information ”willimplement
therequirement ofconsultation with theFund onconsistency ofexchange measures
with theFund ’sArticles, these communications willhave official status inthe
proceedings, which could mean thatthey willberecorded, forinstance, inthe
reports ofthepanels totheDispute Settlement Body.
Paragraph 9
Forthepurpose ofthisAgreement, theDirector-General oftheWTO and the
Managing Director oftheFund shall ensure cooperation between thestaffs ofthetwo
institutions and, tothat end, shall agree onappropriate procedures forcollaboration,
including access todatabases, and exchanges ofviews onjurisdictional and policy
issues.
Comment: This general provision affirms thepractice ofcooperation between the
staffs ofthetwoinstitutions. Thedetails ofstaff contacts canbedetermined bythe
Director-General oftheWTO andtheManaging Director oftheFund pursuant to
their authority toimplement theAgreement (seebelow, paragraph 14on
implementation).
Issues fordiscussions may include thebalance-of-payments implications of
theUruguay Round onleast-developed andnet-food-importing developing countries
andother matters ofinterest toboth organizations thateither may propose for
consideration.
Onaccess todatabases, theFund ’sstaff willmake available totheWTO
Secretariat upon request thepublications files, inprint, tape orother appropriate
form, oftheInternational Financial Statistics (IFS), Balance ofPayments Statistics
(BOPS), Government Financial Statistics (GFS), Direction ofTrade Statistics
(DOTS) onthefollowing understanding: (a)these arethecopyrighted work ofthe
Fund andredistribution beyond theWTO Secretariat isprohibited; and(b)atleast
three copies each willbeprovided onacomplimentary basis. TheFund 'sstaff will
also make available totheWTO Secretariat upon request historical data and
aggregate projections intheWEO. Sympathetic consideration willbegiven to
specific additional requests pertaining totheIFS, BOPS, GFS andDOTS
databases, aswell asrequests forprojections ofindividual country data tobeused
intheWEO andforother statistics, subject toconfidentiality requirements
restricting therelease oftheinformation requested.
TheWTO Secretariat willprovide totheFund ’sstaff access tothe
Integrated Database oftheWTO andtofinal schedules ofcommitments ofWTO
Members ontheunderstanding thatthematerial provided isthecopyrighted work
oftheWTO andredistribution beyond theFund ’sstaff isprohibited. Inaddition,
sixcomplimentary copies oftheWTO annual International Trade report willbe
provided totheFund ’sstaff. TheWTO Secretariat willgive sympathetic
consideration torequests bytheFund ’sstaff forother statistics.WT/L/195
Page19
Itisunderstood thatanyinformation provided under paragraph 9may be
subject toaconfidentiality constraint under paragraph 13.
Paragraph 10
The Fund ’sstaff shall consult with theWTO Secretariat onissues ofpossible
inconsistency between measures under discussion with acommon member and that
member ’sobligations under theWTO Agreement. The WTO Secretariat shall
consult with theFund ’sstaff onissues ofpossible inconsistency between measures
under discussion with acommon member and that member ’sobligations under the
Fund ’sArticles ofAgreement.
Comment: This provision requires theFund ’sstaff andtheWTO Secretariat to
consult each other onaninformal basis about matters thatoneorganization is
discussing with acommon member thatcould raise issues ofpossible
inconsistencies regarding thatmember ’sobligations under thecharter oftheother
organization. Itisunderstood thatthefeedback provided would notconstitute an
authoritative statement oftheviews oftheorganization andthus would notbe
binding.
Paragraph 11
The Fund shall provide theWTO, promptly after circulation totheExecutive
Board, fortheconfidential useofitsSecretariat, with staff reports and related
background staff papers onArticle IVconsultations and onuseofFund resources on
common members and onFund members seeking accession totheWTO, subject to
theconsent ofthemember.
Comment: TheFund documents noted would beprovided totheWTO Secretariat
after asuitable period following circulation toExecutive Directors, toallow
sufficient time fortheDirector concerned toconsent tothetransmittal ofthe
document, butbefore discussion bytheExecutive Board. This provision reflects the
WTO Secretariat 'sexpressed need toreceive thereferenced Fund documents atan
earlier stage than provided forunder theFund ’scurrent policy ontransmittal of
documents toother international organizations, which isnotsooner than fivedays
after consideration ofthedocuments bytheExecutive Board. Approval ofthis
provision thus represents revision oftheFund ’sprocedures ontransmittal of
documents with regard totheWTO. Thedocuments arefortheexclusive useofthe
WTO Secretariat. Intheopinion oftheFund 'sstaff, fiveworking days following
circulation ofthedocuments toExecutive Directors would constitute asuitable
period.
Incases where apolicy framework paper (PFP) isbeing prepared, inthe
context ofdiscussions onrecipients ofthePFP, theFund 'sstaff willsuggest toits
missions toindicate tothecountry concerned theWTO 'sinterest inreceiving such
documents.WT/L/195
Page20
Paragraph 12
The WTO shall provide theFund, fortheconfidential useofitsmanagement
and staff, with Trade Policy Review Reports, summary records and reports of
Councils, Bodies and Committees, and reports ofWTO Members tothese organs.
Comment: TheWTO willpromptly provide allthenoted documents totheFund ’s
staff, aswasthepractice inthepast concerning documents from GATT committees.
Paragraph 13
Each party tothisAgreement shall ensure that anyinformation communicated
under thisAgreement shall beused only within thelimits specified bytheother
party.
Comment: This paragraph commits each institution topreserve theconfidentiality
ofmaterial received from theother organization. Because ofthegeneral wording
oftheparagraph, theobligation extends touseoftheinformation whether within or
outside theinstitution.
Paragraph 14
The Director-General oftheWTO and theManaging Director oftheFund
shall beresponsible fortheimplementation ofthisAgreement and, tothat effect,
shall make such arrangements asthey deem appropriate.
Comment: TheDirector-General oftheWTO andtheManaging Director ofthe
Fund arecharged with implementing theAgreement. They areauthorized tomake
supplementary arrangements within theterms oftheAgreement.
Paragraph 15
This Agreement shall bereviewed upon therequest ofeither party and may be
amended bymutual agreement.
Comment: This provision requires thetwoinstitutions toreview theAgreement if
either onerequests reconsideration ofanymatter intheAgreement; while there is
noobligation toagree toamendments, anyrequest forreview would have tobe
examined ingood faith. Anamendment would require theconsent ofboth parties.WT/L/195
Page21
Paragraph 16
This Agreement may beterminated byeither party bywritten notice tothe
other and, unless otherwise agreed bytheparties, shall terminate sixmonths after
receipt ofsuch notice.
Comment: Itisstandard practice toinclude aparagraph ontermination in
international agreements andsuch provisions have been contained inFund
agreements with other institutions.
Paragraph 17
Following approval bytheGeneral Council oftheWTO and theExecutive
Board oftheFund, thisAgreement shall enter into force onthedate ofitssignature.
Comment: Theagreement requires approval bytheExecutive Board oftheFund
andtheGeneral Council oftheWTO before itbecomes effective. Thedate of
effectiveness willbethedate itissigned bytheDirector-General oftheWTO and
theManaging Director oftheFund.WT/L/195
Page22
ANNEX IV
Agreed Commentary
onthe
Agreement between theInternational Bank forReconstruction
andDevelopment, theInternational Development Association
andtheWorld Trade Organization
(Nocommentary onthePreamble)
Paragraph 1
TheWorld Bank andtheWTO shall cooperate inthedischarge oftheir
respective mandates inaccordance withtheprovisions ofthisAgreement.
Comment: Under thisprovision theAgreement provides thebasis forcooperation
between theWorld Bank andtheWTO.
Paragraph 2
TheWorld Bank andtheWTO shall consult witheach other withaview to
achieving greater coherence inglobal economic policymaking .
Comment: Under thisprovision, itisagreed thattheWorld Bank andtheWTO will
consult with each other attheinstitutional level with aview toachieving greater
coherence inglobal economic policymaking. Aworking group oncoherence
(comprising senior staff from theFund, theWorld Bank, andtheWTO) hasbeen
established andwillprepare ajoint report fortheexecutive heads oftheir
respective institutions onanapproach toachieving greater coherence inglobal
economic policymaking. Thereport willconsider thescope ofthesubject, identify
thetypes ofissues tobecovered, andsuggest potential mechanisms for
implementation.
Paragraph 3
TheWorld Bank agrees thattheWTO begranted observer status atthe
Annual Meetings ofitsBoard ofGovernors. TheWTO agrees thattheWorld Bank
begranted observer status atmeetings ofitsMinisterial Conference.
Comment: Under thisprovision, reciprocal observer status isprovided formeetings
ofthecorresponding topgoverning bodies ofthetwoorganizations.WT/L/195
Page23
Paragraph 4
TheWorld Bank shall invite theWTO Secretariat tosend anobserver tothe
meetings oftheExecutive Directors oftheWorld Bank ongeneral andregional trade
policy issues, including theformulation ofWorld Bank policies ontrade matters. In
addition, when consultations between theWorld Bank 'sstaff andtheWTO
Secretariat leadtoaconclusion thatmatters ofparticular common interest toboth
organizations willbeunder discussion atother meetings oftheExecutive Directors,
including country specific matters, thePresident oftheWorld Bank shall recommend
thattheWTO Secretariat beinvited tosend anobserver tosuch meetings.
Comment: This paragraph deals with attendance byarepresentative oftheWTO
Secretariat, asanobserver, atthespecified meetings oftheExecutive Directors of
theWorld Bank. Adistinction ismade between twotiers ofmeetings. With respect
tothefirsttier, theAgreement provides forastanding invitation tomeetings ofthe
Executive Directors oftheWorld Bank when thetopic ofdiscussion isgeneral or
regional trade policy issues, including Global Economic Prospects and, when
appropriate, theWorld Development Report .Asused inthisprovision, theterm
"trade policy issues" isunderstood tomean notonly trade ingoods andservices,
butalso trade-related matters within thescope oftheAgreements annexed tothe
Agreement Establishing theWTO.3
Thesecond tierprovides forthepossibility ofadhocinvitations totheWTO
Secretariat tosend anobserver toExecutive Directors 'meetings notincluded inthe
firsttier. Under theprocedure established bytheprovision, either theWorld Bank
staff ortheWTO Secretariat may initiate informal consultations onpossible
attendance bytheWTO Secretariat representative attherelevant meeting ofthe
Executive Directors oftheWorld Bank. When both staffs conclude thatthematter
isofparticular common interest toboth institutions, thePresident oftheWorld
Bank shall recommend thataninvitation beextended tothatmeeting. Theword
“particular ”means thatsuch cases should have sufficient importance forboth
institutions. ItwillbefortheExecutive Directors oftheWorld Bank todecide
whether toextend theinvitation inanygiven case, taking intoaccount the
President ’srecommendation.
Ithasbeen separately agreed thatthePresident willrecommend thatthe
Director-General beinvited toattend, asanobserver, meetings oftheDevelopment
Committee, aspertheattachment.
3Thefollowing agreements areannexed totheAgreement Establishing theWTO: Annex 1:GATT 1994 and
agreements onagriculture, sanitary andphytosanitary measures, textiles andclothing, technical barriers totrade,
trade-related investment measures, anti-dumping measures, customs procedures, preshipment inspection, rules
oforigin,importlicensing,subsidiesandcountervailingmeasures,safeguards,traderelatedaspectsofintellectual
property andtheGATS; Annex 2:thedispute settlement understanding; Annex 3:trade policy review mechanism,
andAnnex 4:theplurilateral trade agreements ontrade incivilaircraft, government procurement, dairy, and
bovine meat.WT/L/195
Page24
Paragraph 5
TheWTO shall invite theWorld Bank tosend amember ofitsstaff asan
observer tothemeetings oftheGeneral Council, Trade Policy Review Body, the
three sectoral councils, Committee onTrade andDevelopment, Committee on
Regional Trade Agreements, Committee onTrade-Related Investment Measures, and
Committee onTrade andEnvironment andtheir subsidiary bodies (excluding the
Dispute Settlement Body, theCommittee onBudget, Finance andAdministration and
dispute settlement panels). TheWTO shall invite theWorld Bank tosend amember
ofitsstaff asanobserver tomeetings ofother WTO bodies forwhich attendance is
notprovided above (excluding theCommittee onBudget, Finance andAdministration
anddispute settlement panels) where theWorld Bank andtheWTO expect that
particular matters ofcommon interest toboth organizations willbeunder discussion.
Comment: Asinparagraph 4,attendance atthespecified meetings isprovided for
amember oftheWorld Bank 'sstaff who would attend asanobserver. Two
situations arealso distinguished. First, theprovision provides astanding invitation
toallmeetings ofthebodies specified inthefirstsentence. "Subsidiary bodies"
includes theCommittee onSafeguards, theCommittee onSubsidies and
Countervailing Measures, theCommittee onAgriculture, theCommittee on
Balance-of-Payments Restrictions, theCommittee onMarket Access, theCommittee
onAnti-Dumping Practices, theCommittee onRules ofOrigin, theCommittee on
Import Licensing, theCommittee onCustoms Valuation, theCommittee onSanitary
andPhytosanitary Measures. Second, forother meetings ofWTO bodies (except
thetwospecifically excluded) aninvitation willbeextended incases where the
relevant WTO body finds, after consultation between theWorld Bank 'sstaff andthe
WTO Secretariat, thatthemeeting includes amatter ofparticular common interest
toboth institutions (asthisterm isexplained inthecomment toparagraph 4).
InthisAgreement, thephrase “dispute settlement panels ”includes panels,
arbitrators andtheAppellate Body established under theWTO Dispute Settlement
Understanding, theTextiles Monitoring Body established under theWTO
Agreement onTextiles andClothing, thePermanent Group ofExperts established
under theWTO Agreement onSubsidies andCountervailing Measures, panels
appointed bytheindependent entity established pursuant totheWTO Agreement on
Preshipment Inspection andanyother bodies with restricted membership
constituted forthesettlement ofdisputes.
Paragraph 6
TheWorld Bank andtheWTO shall make available toeach other inadvance
theagenda, andrelevant documents, forthemeetings towhich theyareinvited
pursuant totheterms ofthisAgreement. Inaddition, theWorld Bank shall make
available totheWTO Secretariat agendas ofmeetings oftheExecutive Directors at
thetimeoftheir circulation intheWorld Bank, andtheWTO shall make available
totheWorld Bank theagendas ofother bodies atthetimeoftheir circulation inthe
WTO.WT/L/195
Page25
Comment: Formeetings towhich representatives ofeither institution areinvited,
each institution willmake available theagenda andrelevant documents inadvance
ofthemeeting. Theprovision also obliges theWorld Bank tosend totheWTO
Secretariat theagendas ofallExecutive Director 'smeetings when they are
circulated intheWorld Bank, andobliges theWTO tosend totheWorld Bank the
agendas oftheDispute Settlement Body when they arecirculated intheWTO. In
addition, asaninformal arrangement, theWorld Bank 'sstaff willprovide copies
ofthesemi-annual Executive Directors 'Work Program anditsmonthly updates to
theWTO Secretariat, foritsconfidential use,shortly after itiscirculated inthe
World Bank. Ingeneral, these measures should permit each institution tobe
adequately informed oftheactivities oftheother inatimely manner.
Paragraph 7
Forthepurposes ofthisAgreement, thePresident oftheWorld Bank and the
Director-General oftheWTO shall ensure cooperation between thestaffs ofthetwo
institutions who, tothat end, asappropriate, shall share access todatabases,
undertake joint research and technical cooperation activities and exchange views on
policy issues.
Comment: This general provision affirms thepractice ofcooperation between the
staffs ofthetwoinstitutions. Thedetails ofstaff contacts canbedetermined bythe
President oftheWorld Bank andtheDirector-General oftheWTO pursuant to
their authority toimplement theAgreement (seebelow, paragraph 11on
implementation).
Issues fordiscussion may include theimplications oftheUruguay Round on
least-developed andnet-food-importing developing countries, theroles oftrade and
trade policy inenhancing economic growth inAfrica, andother matters ofcommon
interest thateither organization may propose.
TheWorld Bank willprovide theWTO Secretariat access totheBank
Economic andSocial Database (BESD), aswell asthree complementary copies in
appropriate form (print, diskette orCD-ROM), oftheWorld Debt Tables, World
Bank Atlas, World Development Indicators, Trends inDeveloping Economies and
African Development Indicators. TheWorld Bank staff willalso make available
upon request theStatistical Annex oftheGlobal Economic Prospects andthe
Developing Countries. TheWorld Bank staff willgive sympathetic consideration to
requests bytheWTO Secretariat forother statistics. Anymaterial provided tothe
WTO willbeontheunderstanding thatitisthecopyrighted work oftheWorld
Bank andredistribution beyond theWTO Secretariat isprohibited.
TheWTO Secretariat willcontinue toprovide theWorld Bank staff access
totheIntegrated Database oftheWTO andtofinal schedules ofcommitments of
WTO Members ontheunderstanding thatthematerial provided isthecopyrighted
work oftheWTO andthatitsredistribution beyond theWorld Bank 'sstaff is
prohibited.WT/L/195
Page26
Itisunderstood thatanyinformation provided under paragraph 7may be
subject toaconfidentiality constraint under paragraphs 9and10.
This paragraph also provides fortheinstitutions todevelop joint research
andtechnical assistance projects inareas ofcommon interest.
Paragraph 8
TheWorld Bank staff andtheWTO Secretariat shall consult andexchange
views onallmatters ofmutual interest withtheview toensuring theadoption of
consistent andmutually supportive policies. Tothatend,theyshall keep each other
regularly informed oftheir programmes andactivities inmatters related to
international trade.
Comment: This paragraph provides forconsultations asappropriate atthestaff
level.
Paragraph 9
Subject tosuch limitations asmaybenecessary forsafeguarding of
confidential material, theWorld Bank andtheWTO shall arrange thetimely
exchange ofinformation, reports andother documents ofmutual interest.
Comment: This provision provides foraregular exchange ofdocumentation
between thetwoInstitutions.
TheWTO willprovide theWorld Bank with theTrade Policy Review
Reports, Summary Records andReports ofCouncils, Committees orother bodies,
andreports ofWTO Members tothese organs. Inaddition, sixcomplimentary
copies oftheWTO annual International Trade report willbeprovided totheWorld
Bank 'sstaff. TheWTO Secretariat willgive sympathetic consideration torequests
bytheWorld Bank 'sstaff forother information, publications andstatistics.
TheWorld Bank willprovide theWTO with sixcomplementary copies of
World Development Report, andGlobal Economic Prospects andtheDeveloping
Countries. TheWorld Bank staff willgive sympathetic consideration toother
requests forinformation andpublications bytheWTO Secretariat.
Within thisprovision itisunderstood that, incases where apolicy
framework paper (PFP) isbeing prepared, andinthecontext ofdiscussions on
recipients ofthePFP, theWorld Bank 'sstaff willsuggest toitsmissions toindicate
tothecountry concerned theWTO 'sinterest inreceiving such documents.
Itisunderstood thatanyinformation provided under thisParagraph may be
subject toaconfidentiality constraint under thisParagraph andParagraph 10.WT/L/195
Page27
Paragraph 10
Each party tothisAgreement shall ensure thatanyinformation communicated
under thisAgreement shall beused onlywithin thelimits specified bytheother
party.
Comment: This paragraph commits each institution topreserve theconfidentiality
ofmaterial received from theother organization. Thegeneral wording ofthe
paragraph entails thepossibility thatrestrictions may beplaced ontheuseofthe
information either inside oroutside theinstitution.
Paragraph 11
ThePresident oftheWorld Bank andtheDirector-General oftheWTO shall
beresponsible fortheimplementation ofthisAgreement and, tothateffect, shall
make such arrangements astheydeem appropriate.
Comment: ThePresident oftheWorld Bank andtheDirector-General oftheWTO
arecharged with implementing theAgreement. They areauthorized tomake
supplementary arrangements within theterms oftheAgreement.
Paragraph 12
ThisAgreement shall bereviewed upon therequest ofeither party andmay
beamended bymutual agreement.
Comment: This provision requires thetwoinstitutions toreview theAgreement if
either onerequests reconsideration ofanymatter intheAgreement; while there is
noobligation toagree toamendments, anyrequest forreview would have tobe
examined ingood faith. Anamendment would require theconsent ofboth parties.
Paragraph 13
ThisAgreement maybeterminated byeither party bywritten notice tothe
other andunless otherwise agreed bytheparties, shall terminate sixmonths after
receipt ofsuch notice.
Comment: Itisstandard practice toinclude aparagraph ontermination in
international agreements.WT/L/195
Page28
ThisAgreement shall enter intoforce onthedateofitssignature.
Comment: Theagreement requires approval bytheBoard ofGovernors oftheWorld Bank
andtheGeneral Council oftheWTO before itbecomes effective. Thedateof
effectiveness willbethedateitissigned bytheDirector-General oftheWTO andthe
President oftheWorld Bank.WT/L/195
Page29CHART I
Schematic Comparison ofGeneral Council Mandate
withAgreements withtheFund andtheBank
General Council Mandate Agreement with theFund Agreement with theBank
TheGeneral Council requests theDirector-General to
pursue theinvitation given tohimbyMinisters inthe
Declaration ontheContribution oftheWorld Trade
Organization inAchieving Greater Coherence inGlobal
Economic Policymaking keeping inview paragraph 5of
Article IIIoftheAgreement Establishing theWTO.Theagreement provides aformal basis forthedialogue on
coherence.Theagreement provides aformal basis forthe
dialogue oncoherence.
TheDirector-General, while implementing hismandate in
accordance withthecriteria contained intheDeclaration,
isinvited togivethenecessary attention topossible means
forcooperation inglobal economic policymaking and
specific policies followed byeach international institution
within their respective area ofcompetence.
Astothemeans toachieve greater coherence inglobal
economic policymaking, theGeneral Council recalls that
theinterlinkages between thedifferent aspects ofeconomic
policy require that theinternational institutions with
responsibilities ineach ofthese areas follow consistent
andmutually supportive policies.Preambular language references greater coherence andthe
increasing linkages between various aspects ofeconomic
policymaking thatfallwithin therespective mandates of
theFund andtheWTO. Para. 2mandates consultations
with aview toachieving greater coherence inglobal
economic policymaking. Para. 10mandates staff
consultations onissues ofpossible inconsistency. The
mandate isbeing substantially implemented through the
unprecedented strengthening ofinstitutional cooperation.
Para. 14provides thattheDirector-General oftheWTO
and theManaging Director oftheFund shall be
responsible fortheimplementation ofthisAgreement and,
tothateffect, shall make sucharrangements astheydeem
appropriate. They have already agreed tomeet regularly
andaredoing so.Preambular language references greater
coherence and theincreasing interlinkages
betweenvariousaspectsofeconomic
policymaking that fallwithin therespective
mandates oftheBank andtheWTO. Para. 2
mandates consultations withaview toachieving
greater coherence in global economic
policymaking. Para. 8mandates staff
consultations with theview toensuring the
adoption ofconsistent andmutually supportive
policies. Themandate isbeing substantially
implemented through the unprecedented
strengthening ofinstitutional cooperation.
Para. 11provides thattheDirector-General of
theWTO andthePresident oftheWorld Bank
shall beresponsible fortheimplementation of
thisAgreement and, tothateffect, shall make
such arrangements asthey deem appropriate.
They have already agreed tomeet regularly and
aredoing so.WT/L/195
Page30General Council Mandate Agreement with theFund Agreement with theBank
TheWTO andtheIMF[Bank] willpursue anddevelop the
cooperation maintained inthepastbetween theGATT and
theIMF[Bank]. Inthisrespect, thefollowing should be
taken intoaccount:Preambular language covers thispoint. Preambular language covers thispoint.
Theformalization ofthecurrent provisional arrangement,
andthecontribution oftheIMF tobalance-of-payments
consultations, both ingoods andservices, aswellasthe
IMF participation inmeetings oftheCommittee on
Balance-of-Payments Restrictions. The possibility of
consultations withtheIMFonother finance andexchange
matters should beprovided for.Para. 3provides thattheFund shall inform theWTO of
anydecisions approving restrictions onpayments or
transfers, ordiscriminatory currency arrangements. In
para. 4,theFund agrees toparticipate inconsultations in
theWTO 'sBOP Committee andthatexisting procedures
forFund participation shall continue andmaybeadapted
asappropriate. Para. 8provides forcommunication in
writing from either institution totheother oranyofits
organs orbodies (butexcluding dispute settlement panels)
onmatters ofmutual interest. Itfurther provides thatthe
Fund shall inform inwriting therelevant WTO body
(including dispute settlement panels) "considering
exchange measures within theFund'sjurisdiction whether
such measures areconsistent with theArticles of
Agreement oftheFund". Para. 9indicates thattheheads
ofthetwoinstitutions shall ensure cooperation between
their staffs and, tothatend, shall agree onappropriate
procedures forexchange ofviews onjurisdictional and
policy issues. Finally, para. 10calls forconsultations
between thestaffs onissues ofpossible inconsistency.[Not applicable]
This should include, inter alia, ajoint follow-up of
relevant provisions contained intheDecision onMeasures
Concerning thePossible Negative Effects oftheReform
Programme onLeast-Developed andNetFood-Importing
Developing Countries ....Concerning joint follow-up ontheDecision onMeasures
Concerning thePossible Negative Effects oftheReform
Programme onLeast-Developed andNetFood-Importing
Developing Countries, the agreement provides an
appropriate consultation framework foraddressing the
issue. Itwillbepursued indetail inthedialogue on
coherence.Concerning joint follow-up ontheDecision on
Measures Concerning thePossible Negative
Effects oftheReform Programme onLeast-
Developed andNetFood-Importing Developing
Countries, theagreement provides anappropriate
consultation framework foraddressing theissue.
Itwillbepursued indetail inthedialogue on
coherence.WT/L/195
Page31General Council Mandate Agreement with theFund Agreement with theBank
Thisshould include, inter alia, ...consultations withthe
IMF onmatters related totheestablishment ofspecial
exchange agreements forcountries which areWTO
Members butnotIMFmembers.Asforconsultations with theFund onmatters related to
theestablishment ofspecial exchange agreements for
countries which areWTO Members butnotFund
members, theagreement addresses thisissue byproviding
ageneral consultation procedure such that the
requirements ofGATT Article XV:6 canbeadequately
dealt with ifandwhen such issue arises. Nospecial
exchange agreements have been entered intosince the
1950s andnone have been inforce formany years.[Not applicable]
TheIMF [Bank] would begranted observer status at
meetings oftheMinisterial Conference, General Council,
Dispute Settlement Body, TPRB, thethree sectoral
Councils andother relevant subsidiary bodies ofthefour
Councils. TheWTO would begranted observer status at
meetings oftheExecutive Board; WTO-IMF Liaison
committee; bi-annual Interim Committee Meetings,
IMF/World Bank bi-annual Development Committee
Meetings aswellasIMF/World Bank Annual Meetings.Para. 5provides thattheWTO Secretariat shall beinvited
toordinary meetings oftheExecutive Board ongeneral
andregional trade policy issues, including theformulation
ofFund policies ontrade matters, andtodiscussions of
theWorld Economic Outlook when there isasignificant
trade content. Para. 6provides thattheFund staff shall
beinvited totheMinisterial Conference, General Council,
Trade Policy Review Body, thethree sectoral councils,
Committee onTrade andDevelopment, Committee on
Regional Trading Agreements, Committee onTRIMS, and
Committee onTrade and Environment, and their
subsidiary bodies (excluding theCommittee onBudget,
Finance and Administration, theDSB and dispute
settlement panels). TheFund staffshall alsobeinvited to
send anobserver toDSB meetings where matters of
jurisdictional relevance totheFund areconsidered.Paras. 3provides thattheWTO shall begranted
observer status attheAnnual Meetings ofthe
Bank'sBoard ofGovernors, andthattheBank
shall begranted observer status atmeetings of
theWTO 'sMinisterial Conference. Para. 4then
provides that theWTO Secretariat shall be
invited tomeetings oftheExecutive Directors on
general and regional trade policy issues,
including theformulation ofWorld Bank policies
ontrade matters. Para. 5provides thattheBank
staff shall beinvited totheGeneral Council,
Trade Policy Review Body, thethree sectoral
councils, Committee onTrade andDevelopment,
Committee onRegional Trading Agreements,
Committee onTRIMS, andCommittee onTrade
andEnvironment, andtheir subsidiary bodies
(excluding theCommittee onBudget, Finance
and Administration, theDSB and dispute
settlement panels).WT/L/195
Page32General Council Mandate Agreement with theFund Agreement with theBank
[continued] Under para. 5,when consultations between thestaffs of
theFund andtheWTO leadtotheconclusion thatmatters
ofparticular common interest tobothorganizations willbe
under discussion atother meetings oftheExecutive Board,
including country-specific meetings, oratmeetings ofthe
Fund'sCommittee onLiaison with theWTO, the
Managing Director will recommend that theWTO
Secretariat beinvited tosendanobserver. Under para. 6,
theWTO shall invite theFund tosend amember ofits
staffasobserver toother meetings oftheDSB aswellas
other WTO bodies forwhich attendance isnotprovided
above (excluding theBudget Committee anddispute
settlement panels), where theFund andtheWTO expect
that particular matters ofcommon interest toboth
organizations willbeunder discussion.
WTO observership intheInterim and Development
Committees willbedealt with inanaccompanying letter
addressed totheWTO Director-General from the
Managing Director oftheFund, stating thatinrespect of
theInterim andDevelopment Committees, andinorder to
foster closer cooperation between ourinstitutions, the
Managing Director oftheFund hasrecommended thatthe
Director-General oftheWTO beinvited regularly asan
observer tothese committees 'plenary sessions, aswellas
tothose restricted sessions where matters ofcommon
interest aretobeaddressed.Under para. 4,when consultations between the
staffs oftheBank andtheWTO lead tothe
conclusion thatmatters ofparticular common
interest toboth organizations will beunder
discussion atother meetings oftheExecutive
Directors, including country-specific matters, the
President oftheBank willrecommend thatthe
WTO Secretariat beinvited tosendanobserver.
Under para. 5,theWTO shall invite theBank to
send amember ofitsstaff asobserver to
meetings ofother WTO bodies forwhich
attendance isnotprovided above (excluding the
Budget Committee and dispute settlement
panels), where theBank andtheWTO expect
thatparticular matters ofcommon interest to
bothorganizations willbeunder discussion.
WTOobservershipintheFund/Bank
Development Committee willbedealt withinan
accompanying letter addressed totheWTO
Director-General from thePresident ofthe
World Bank, stating that inrespect ofthe
Development Committee, andinorder tofoster
closer cooperation between ourinstitutions, the
President oftheBank hasrecommended thatthe
Director-General ofthe WTO beinvited
regularly asanobserver tothiscommittee 's
plenary sessions, aswell astothose restricted
sessions where matters ofcommon interest areto
beaddressed.WT/L/195
Page33General Council Mandate Agreement with theFund Agreement with theBank
TheWTO andIMF[Bank] willprovide each other with
access totheir respective documentation anddatabases
(including theIDB).Under para. 7,theWTO andtheFund shall make
available toeach other inadvance theagendas, and
relevant documents, forthemeetings towhich they are
invited pursuant totheterms oftheagreement. TheFund
shall make available totheWTO Secretariat agendas of
meetings oftheExecutive Board atthetime oftheir
circulation intheFund, andtheWTO shall make available
totheFund theagendas oftheDSB atthetime oftheir
circulation intheWTO. Para. 9states thattheDirector-
General and the Managing Director shall ensure
cooperation between thestaffs ofthetwoinstitutions and,
tothatend, shall agree onappropriate procedures for
collaboration, including access todatabases, andexchanges
ofviews onjurisdictional andpolicy issues. According to
para. 11,theFund shall provide theWTO, promptly after
circulation totheExecutive Board, fortheconfidential use
ofitsSecretariat, withstaffreports andrelated background
staff papers onArticle IVconsultations andonuseof
Fund resources oncommon members and onFund
members seeking accession totheWTO, subject tothe
consent ofthemember. Para. 12commits theWTO to
providing theFund, fortheconfidential useofits
management and staff, with TPR reports, summary
records andreports ofCouncils, Bodies andCommittees,
andreports ofWTO Members tothese organs.Under para. 6,theWTO andtheBank shall
make available toeach other inadvance the
agendas, and relevant documents, forthe
meetings towhich theyareinvited pursuant to
theterms oftheagreement. TheBank shall
make available totheWTO Secretariat agendas
ofmeetings oftheExecutive Directors atthe
time oftheir circulation intheBank, andthe
WTO shall make available totheBank the
agendas ofother bodies atthetime oftheir
circulation intheWTO. Para. 7provides that
theDirector-General andtheBank'sPresident
shall ensure cooperation between thestaffs ofthe
twoinstitutions who, tothatend,asappropriate,
shall share access todatabases, undertake joint
research andtechnical cooperation activities and
exchange views onpolicy issues. Para. 8
provides inpart that thestaffs ofthetwo
institutions shall keep each other regularly
informed oftheir programmes andactivities in
matters related tointernational trade. Under
para. 9,subject tosuch limitations asmay be
necessary forsafeguarding ofconfidential
material, theWTO andtheBank shall arrange
thetimely exchange ofinformation, reports and
other documents ofmutual interest.
Thenecessary confidentiality shall berespected. Para. 13provides thateach party totheagreement shall
ensure that anyinformation communicated under the
agreement shall beusedonlywithin thelimits specified by
theother party.Para. 10provides that each party tothe
agreement shall ensure that anyinformation
communicated under theagreement shallbeused
only within thelimits specified bytheother
party.