RESTRICTED  WORLD TRADE  
ORGANIZATION  G/TRIMS/M/23 
30 May 2006 
 (06-2602) 
Committee on Trade-Related Investment Measures  
  
 
 
MINUTES OF THE MEETING HELD ON 10 APRIL 2006 
  
Note by the Secretariat
 
 
 
1. The Committee on Trade-Related Investment Measures met on 10 April 2006. The meeting 
was opened and conducted under the Chairmanship of Mr. Suren Badral (Mongolia), and then 
adjourned under the Chairmanship of Mr. Alex is Massot (France) (see item D below).  The 
Committee adopted  the agenda contained in WTO/AIR/2793. 
A. QUESTIONS FOR THE EUROPEAN COMMUNITIES ON POLAND 'S IMPLEMENTATION OF COUNCIL 
REGULATION 1257/1999  – COMMUNICATION FROM THE UNITED STATES (G/TRIMS/W/46) 
2. The representative of the United States  referred to its communication in G/TRIMS/W/46 and 
said that his delegation had put this item on the agenda  as the result of an ongoing effort to deal with 
what it saw as a problem involving the Polish re gulations pursuant to Council Regulation 1257/1999 
which the United States had raised both with the Polish authorities and with the European 
Commission in Brussels.  Indeed, the United States  believed that the regul ations were having an 
immediate detrimental effect on a US company that desired to do business in Poland but, as a 
requirement for doing that business, as other busines ses did it was required to use local inputs rather 
than bringing inputs in from the United States.  Sin ce, so far, the United States had not received any 
response to the issues they had raised either with  the Poles or with the European Commission in 
Brussels, the United States was specifically request ing an answer and explanation as to how what 
appeared to them to be a violation of the TRIM s agreement could be justified.  The United States 
therefore requested that the Eur opean Union took action to ensure  that its regulations and the 
implementation of those regulations were  consistent with its WTO obligations. 
3. The representative of the European Communities  said that the questions put by the         
United States were still being reviewed in detail in Br ussels.  He added that, in any case, the questions 
that the United States had referred to concerned a regulation that was due to expire.  The new 
regulations that would be put in place would alleviat e any concerns that the United States or any other 
Member might have about the WTO compatibility of the agreed related provision.  The United States 
had made particular reference to one type of EC  payment which was for the processing and marketing 
of agricultural products and, as had been noted by  the United States, this funding was excluded if 
third-country products had been used.  That was the basic criticism ag ainst the way Poland 
implemented the regulation.  He pointed out that th e practice by EU member States had, in the past, 
allowed funding when third-country products had be en used.  Therefore this practice had been, and 
was, in full compatibility with th eir trade commitments.  As alread y mentioned, this piece of EU 
legislation would expire at th e end of 2006 and the implementati on of the regulation by member 
States would be repealed accordingly.  As from 1 January 2007 a new regulation, namely, Regulation 
1698/2005, which was in full compliance with WTO commitments, and in particular with TRIMs 
Article 2.1, would be put in place.  This new legisl ation would alleviate any kind of concerns such as G/TRIMS/M/23 
Page 2  
 
  those raised by the United States and would be im plemented accordingly by all of the EU member 
States.   
4. The representative of the United States
 said that the reply given by the European Commission 
sounded very positive and that the new legislatio n – which the United States would obviously be 
looking at – took care of the problem.  This was a good example of a member State being responsive 
on short notice to concerns that had been raised  and also an example of how the World Trade 
Organization could in fact produce results.  
5. The Chairman  thanked the United States and the Eu ropean Communities for their positive 
attitude which would enable th em to consult bilaterally on this issue, if necessary. 
6. The Committee took note of the statements made. 
B. OBSERVER STATUS FOR INTERGOVERNMENTAL ORGANIZATIONS :  REQUEST FROM THE 
ENERGY CHARTER CONFERENCE  
7. The Chairman recalled that the Committee had already received requests for observer status 
from a number of intergovernmental organizations, namely the African Caribbean and Pacific Group of States, the Common Market for Eastern and Sout hern Africa, the Gulf Organization for Industrial 
Consulting, the Inter-American Development Ba nk, the Inter-Arab Investment Guarantee Co-
operation, the Islamic Development Bank and the Latin American Economic System.  He also 
recalled that in light of the ongoing consultations  in the framework of the General Council on the 
issue of observer status for international inte rgovernmental organizations in WTO bodies, the 
Committee had agreed to defer consideration of such  requests until a final decision on this matter had 
been adopted by the General Council. 
8. He informed the Committee that an application for observer status had recently been received 
from the Energy Charter Conference.  In his comm unication, the Chairman of the Energy Charter 
Conference had requested the TRIMs Committee to cons ider the possibility for his organization to be 
invited, on an ad hoc basis, to attend relevant meetings of the Committee, pending a decision by the 
General Council on the overall issue of observership for international intergovernmental organizations 
in the WTO.   
9. The Chairman proposed that, pending a decision by the General Council on this issue in 
general, and unless any Member wished to take th e floor at the present meeting, the Committee agree 
to revert to this matter at a future meeting.
1   
10. The Committee so agreed . 
C. OTHER BUSINESS  
11. The Chairman announced that the next re gular meeting of the TRIMs Committee was 
scheduled to take place on Friday, 9 June 2006.   At this meeting the Committee would consider the 
Special and Differential (S&D) Treatment propo sals submitted by the African Group and these 
proposals would be placed on the agenda of that me eting in order to fulfil the mandate given to the 
Committee under paragraph 37 of the Hong Kong Mi nisterial Declaration.  He hoped that the 
representatives of the main interested parties would be able to be present at that meeting so as to allow 
                                                      
1 The Committee was informed that copies of  the request received from the Energy Charter 
Conference were available at the Secretariat for Members' reference.  
  G/TRIMS/M/23 
 Page 3 
 
 
  for a fruitful and substantive discussion on this matter.   In the meantime, he suggested that Members, 
the proponents in particular, con tinue consulting with each other to seek a basis for agreement on how 
to address the S&D proposals in the future.  He also  suggested that his successo r in the Chair remain 
available for any informal consultations  on these issues during this period.   
12. It was so agreed . 
D. ELECTION OF OFFICERS  
13. According to its rules of pr ocedure, the Committee elected by acclamation Mr. Alexis Massot 
(France) as its Chairman for the period 2006-2007. 
14. The newly-elected Chairman  said that he hoped the Committee would be able to meet its 
mandate in the spirit of mutual trust taking into account the diverse opinions represented and 
expressed by Members.  He informed the Committee that he would attach the greatest of importance 
to the contacts he would be having with delegations and said that he would do his best to facilitate 
mutual understanding amongst Members of the Committ ee.  He invited delegations to contact him 
and/or the Secretariat as they deemed necessary. 
15. The meeting was adjourned . 
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