WT/L/1000  
 
12 December 2016  
(16-6766) Page: 1/2 
General Council    
 
UNITED STATES – FORMER TRUST TERRITO RY OF THE PACIFIC IS LANDS  
DECISION OF 7 DECEMB ER 2016  
The General Council,  
 
 Taking note  of the request of the Government of the United States for an extension of the 
waiver from its obligations under paragraph  1 of Arti cle I of the General Agreement1 which was 
granted by the CONTRACTING PARTIES of the GATT  1947 on 8  September  1948 for provision of 
preferential treatment for eligible imports into the United States from the Marshall, Caroline and 
Mariana Islands (other tha n Guam) and extended by the Decision of 14  October  1996 
(WT/L/183).2 
 
 Recognizing  that these islands were formerly held by Japan under mandate and by 
agreement with the Security Council of the United Nations approved on 2  April 1947, were placed 
under the  trusteeship system of the United Nations with the United States as the Administering 
Authority;  
 
 Recognizing  further that, with the entry -into-force in 1986 of the Covenant establishing the 
Commonwealth of the Northern Mariana Islands, and the Compacts of Free Association with the 
United States for the Republic of the Marshall Islands, the Federated States of Micronesia, and in 
1994 of the Compact of Free Association with the United States for the Republic of Palau, the 
Trusteeship of the Pacific Islands  was terminated;  
 
 Considering  further that, since the establishment of the trusteeship under the administration 
of the United States, and continuing under the Covenant and Compacts of Free Association, the 
exports of such islands have been entitled to pre ferential treatment in the market of the United 
States, upon which such exports are substantially dependent;  
 
 Considering  also that the preferential treatment provided to these islands is designed to 
promote the expansion of trade and economic development  of the beneficiaries in a manner 
consistent with the objectives of the GATT  1994 and with the trade, financial and development 
needs of the beneficiaries, and not to raise barriers or to create difficulties for trade of other 
Members;  
 
 Considering  furthe r that the system of preferential entry into the market of the United 
States has not, in view of the nature and small volume of the production and trade involved and of 
the underlying economic factors affecting such production and trade, resulted in substa ntial injury 
to the trade of any of the Members and is not likely to do so in the future;  
 
 Noting , furthermore, the assurances given by the United States Government that it will, 
upon request, promptly enter into consultations with any interested Member w ith respect to any 
difficulty or matter that may arise as a result of the implementation of preferential treatment for 
the beneficiaries; and  
 
 Having regard  to the Guiding Principles to be followed in considering applications for waivers 
adopted on 1  November 1956, the Understanding in Respect of Waivers of Obligations under the 
                                                
1 G/L/101.  
2 Adopted in accordance with the Decision -Making Procedures under Articles  IX and XII of the 
WTO Agreement agreed by the General Council (WT/L/93).  WT/L/1000  
 
- 2 - 
 
  General Agreement on Tariffs and Trade  1994, and paragraphs  3 and 4 of Article  IX of the 
Marrakesh Agreement Establishing the World Trade Organization (hereinafter "WTO Agreement") ; 
 
 Members, acting pursuant to the provisions of paragraph  3 of Article  IX of the 
WTO Agreement,  
 
 Decide  that: 
 
1. Subject to the terms and conditions set out hereunder, the provisions of paragraph  1 of 
Article  I of the GATT  1994 shall be waived until 31  December  2026, to the extent necessary to 
permit the United States Government to accord preferential treatment to eligible products of the 
Republic of the Marshall Islands, the Federated States of Micronesia, the Commonwealth of the 
Northern Mariana Islan ds, and the Republic of Palau imported into the customs territory of the 
United States.  
 
2. Such preferential treatment shall be designed not to raise barriers or create undue 
difficulties for the trade of other Members.  
 
3. The Government of the United St ates will submit to the General Council an annual report on 
the operation of these preferences with a view to facilitating the annual review provided for in 
paragraph  4 of Article  IX of the WTO  Agreement.  
 
4. The United States Government will, upon request , promptly enter into consultations with 
any interested Member with respect to any difficulty or matter that may arise as a result of the 
implementation of these preferences; where a Member considers that any benefit accruing to it 
under the GATT  1994 may be or is being impaired unduly as a result of such implementation, such 
consultation shall examine the possibility of action for a satisfactory adjustment of the matter. This 
Decision does not affect Members' rights as set forth in the Understanding in Res pect of Waivers of 
Obligations under the GATT  1994.  
 
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