RESTRICTED  WORLD TRADE  
ORGANIZATION  G/C/M/88 
26 April 2007 
 
 (07-1733) 
Council for Trade in Goods  
  
 
MINUTES OF THE MEETING OF THE COUNCIL FOR TRADE IN GOODS 
19 MARCH 2007 
 
Chairperson: H.E. Ambassador Yonov Agah (Nigeria
) 
 
 
 The meeting of the Council for Trade in Goods was convened by airgram WTO/AIR/2979 and the proposed agenda for the meeting was c ontained in document G/C/W/577.  The meeting 
proceeded on the basis of the following agenda.  
 
Table of Contents
 
 
I. NOTIFICATION FORMAT FOR REGI ONAL TRADE AGREEMENTS .......................2  
II. UNITED STATES – REQUEST FOR WAIVERS FOR AFRICAN GROWTH 
AND OPPORTUNITY ACT, CARIBBEAN BASIN ECONOMIC RECOVERY 
ACT, AS AMENDED, AND ANDEAN TRADE PREFERENCE ACT, AS 
AMENDED........................................................................................................................ ........2  
III. EUROPEAN COMMUNITIES – REQUEST FOR AN EXTENSION OF 
ARTICLE XIII WAIVER FOR THE TARIFF RATE QUOTA FOR BANANAS OF ACP ORIGIN.................................................................................................................. ....3
 
IV. UNITED STATES – REQUEST FOR AN EXTENSION OF THE WAIVER 
FOR THE FORMER TRUST TERRITORY OF THE PACIFIC ISLANDS.....................4  
V. THAILAND – CUSTOMS VALUATION  AND DOMESTIC TAXATION 
PRACTICES AFFECTING THE IMPORTATION OF CIGARETTES FROM THE PHILIPPINES ................................................................................................................ .4
 
VI. ISSUES RELATED TO TRADE IN TEXTILES ..................................................................5  
VII. STATUS OF NOTIFICATIONS UNDER THE PROVISIONS OF THE 
AGREEMENTS IN ANNEX IA OF THE WTO AGREEMENT ......................................10  
VIII.  APPOINTMENT OF OFFICERS TO CTG SUBSIDIARY BODIES...............................11  
IX. OTHER BUSINESS................................................................................................................1 2 
A. DATE OF THE NEXT MEETING ....................................................................................................12  
X. ELECTION OF CHAIRPERSON OF THE COUNCIL FOR TRADE IN 
GOODS .......................................................................................................................... ..........12  
 
  
 
 G/C/M/88 
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  I. NOTIFICATION FORMAT FOR REGIONAL TRADE AGREEMENTS  
1.1 The Chairman
 informed Members that, at its 44th Session on 13 October 2006, the Committee 
on Regional Trade Agreements (CRTA) agreed to recommend the introduction of a common and 
simplified format for the notification of regiona l trade agreements (RTAs), including those under 
Article XXIV of the GATT of 1994.  The recommenda tion could be found in the Annex to document 
WT/REG/16.  In forwarding its recommendation, the CRTA indicated that the proposed format would 
facilitate the task of the parties to comply w ith the requirement to notify an RTA while making 
available to other WTO Members the necessary basic el ements in a systematic and coherent way.  He 
recalled that, on 14 December 2006, the General Council adopted a Decision establishing, on a 
provisional basis, a Transparency Mechanism for RTAs.  The Decision was found in document 
WT/L/671.  It was his understanding that the proposed format for RTA notification was in line with 
the overall approach to RTAs that Member s agreed to adopt in that Decision. 
 1.2 In the absence of any comments, he propo sed that the Council adopt the format for 
notification of RTAs, as contained in the Annex of document WT/REG/16. 
 
1.3 The Council so agreed
. 
 
II. UNITED STATES – REQUEST FOR WAIVERS FOR AFRICAN GROWTH AND 
OPPORTUNITY ACT, CARIBBEAN BASIN ECONOMIC RECOVERY ACT, AS AMENDED, AND ANDEAN TRADE PREFERENCE ACT, AS AMENDED  
2.1 The Chairman
 recalled the Council's cons ideration of the three reques ts for the African Growth 
and Opportunity Act, the Caribbean Basin Economi c Recovery Act and the Andean Trade Preference 
Act, contained in documents G/C/W/508 and A dd.1, G/C/W/509 and Add.1, and G/C/W/510 and 
Add.1.  This consideration had not been concluded and it was agreed to revert to this matter at this 
meeting of the Counci l.  He understood that the Un ited States intend ed to submit a new request for each 
of these Programmes following legislative changes to each Programme.   
 2.2 The representative of the United States
 confirmed that the United  States Congress in 2006 had 
adopted changes to all three programmes.  His delega tion thought it would be best to submit information 
that would make it clear what these changes were.  While not intending to pr ess for a decision on these 
waivers, his delegation would circulate this informatio n this week and, before the next CTG meeting, be 
in a position to conduct consultations  with interested Memb ers to explain the changes and answer any 
questions.  He outlined the substance of the change s in all three waiver Programmes.  In AGOA, the 
new legislation extended until 2012 the AGOA third-c ountry fabric provision which provided benefits 
to lesser-developed AGOA beneficiary Members for apparel made with fabric from third countries.  The 
full 3.5% annual cap on such imports from AGOA bene ficiary Members had also been restored and an 
exception had been introduced to the third-country fabric provision if yarn or  fabric introduced by 
AGOA Members was found to be available in commer cial quantities.  This wa s designed to promote the 
use of fabric and yarn produced by AGOA Members.   Finally, duty-free treatment had been extended to 
fabrics and non-apparel textile products made in  lesser-developed AGOA Members from yarn and 
fabric produced by one or more of  these countries.  With respect to  ATPA, the preference programme 
had been extended for 6 months for all four ATPA be neficiary countries.  A further 6 month extension 
was given to any country that conc luded a free-trade arrangement with  the US provided that both sides 
approved the agreement by 30 June 2007.  With resp ect to CBERA, the only changes related to Haïti's 
eligibility to certain benefits.  Duty-free treatmen t was granted to apparel it ems imported directly from 
Haïti, and the applicable percentage of the value of the imports was met by any combination of Haitian, 
US, FTA or regional preference country input.  Du ty-free treatment was also granted to a specified 
quantity of woven apparel imports using fabric from any source.  Duty-free treatment was granted to 
brassieres that were cut and sewn in Haïti from a fa bric from any source.  Finally, duty-free treatment 
was granted to auto-motive harnesse s from Haïti that contained at leas t 50% value of materials produced  G/C/M/88 
 Page 3 
 
 
  in Haïti, US, FTA partners or regi onal preference beneficiary countr ies.  His delegation continued to 
believe that these preference Programmes served  an important development objective and was 
committed to obtain WTO approval for them.  It hoped that Members would review the material it 
intended to submit and was certainly willing to  conduct consultations based on any questions or 
concerns that Members had about this material. 
 
2.3 The representative of Paraguay  stated that his delegation stood ready to examine the US 
documents and partake in whatever pert inent consultations would be held.   
 2.4 The Chairman
 proposed that the Council take note of th e statements made an d revert to this 
matter at the next meeting. 
 2.5 It was so agreed
. 
 
III. EUROPEAN COMMUNITIES – REQUEST FOR AN EXTENSION OF ARTICLE 
XIII WAIVER FOR THE TARIFF RATE QUOTA FOR BANANAS OF ACP ORIGIN  
3.1 The Chairman  recalled that the European Communities had submitted a request for an extension 
of its Article XIII waiver for the TRQ for bananas of ACP origin which was circulated in document 
G/C/W/529, dated 11 October 2005.  In this document, the European Communities requested an 
extension of its GATT Article XIII waiver concerning the tariff rate quota (TRQ) for bananas of ACP 
origin which was contained in doc ument WT/MIN(01)/16 of 14 November 2001.   At the last CTG 
meeting, it had been agreed that he would make a re port to the General Council on this matter and that 
the CTG would revert to it at this meeting.   He made this report at the December 2006 meeting of the 
General Council and it was contained in the minutes  of that meeting in document WT/GC/M/106.   
 3.2 The representative of the European Communities
 re-affirmed his delega tion's argumentation 
which formed the basis for this request.  This reques t was for legal certainty and not for legal necessity, 
as his delegation had said before.  His delegation's main  interest in this matter was to ensure the balance 
between the interests of MFN supplie rs and ACP suppliers of bananas.  The discussions held so far on 
the EC request for an extension of the Article XI II waiver had only confirmed the divergences among 
Members on how to proceed with this request.  Following consultations held on 14 December, on 
23 February 2007 Ecuador proceeded with a request fo r the establishment of a WTO panel on the EC 
import regime for bananas which focussed on the pr eferences granted by the EC to bananas of ACP 
origin.  The eventual panel proceedings would inevit ably touch upon the very issue of whether the EC 
would need an Article XIII waiver for maintaining this  preference.  In this light, the EC maintained its 
proposal to suspend the discussions on the EC's request for the extensi on of the Article XIII waiver at 
this point in time.  While not wanting to avoid di scussion and definitely maintaining its request, his 
delegation did not want to push for an evaluation at this  stage.  It believed that the only option available 
was to delay a debate on the waiver request in lig ht of both the concerns raised by several Latin 
American suppliers, and the recent request for the esta blishment of a WTO panel.  Finally, he reiterated 
that the EC continued to prefer a negotiated solution to the banana probl em because it considered that it 
would be much easier to  satisfy the demands of the differen t parties through a negotiated approach 
rather than litigation. 
 
3.3 The Chairman  proposed that the Council take note of the statement made and agree to suspend 
this item until further notice.  3.4 The Council so agreed
. 
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  IV. UNITED STATES – REQUEST FOR AN EXTENSION OF THE WAIVER FOR THE 
FORMER TRUST TERRITORY OF THE PACIFIC ISLANDS  
 
4.1 The Chairman
 informed the Council that the United States had submitted a request for an 
extension of the waiver for the Former Trust Terr itory of the Pacific Islands in document G/C/W/570, 
dated 3 January 2007.   
 4.2 The representative of the United States
 confirmed that his delegation requested Members to 
consider its request for a waiver for the former tr ust territory, the Pacific Islands, allowing duty-free 
treatment on goods entering the US market.  This  waiver request was submitted in December 2006, 
just prior to the expiration of the previous waiver  which had been granted in 1996.  The preferential 
treatment covered by this waiver ordinarily would have been covere d by Article I:2 and Annex D of 
GATT 1947 but for the timing of the UN decision placing the Islands under trusteeship.  The waiver granted in 1948 under GATT 1947 and continue d under the decision of 14 October 1996 is 
recognition of these exceptional circumstances, circum stances which continue today.  His delegation 
requested Members to give expeditious considerati on to this request and to decide to extend the 
waiver of the provisions of paragraph 1, Article I of GATT 1994 through 31 December 2016. 
 4.3 The representative of Argentina
 stated that his delegation had not yet completed a review of 
the submission from the United States.  It did not oppose the request but simply needed more time to 
examine this issue. 
 
4.4 The Chairman  proposed that the Council take note of th e statements made and revert to this 
matter at its next meeting.  4.5 The Council so agreed
. 
 
V. THAILAND – CUSTOMS VALUATION AND DOMESTIC TAXATION PRACTICES 
AFFECTING THE IMPORTATION OF CI GARETTES FROM THE PHILIPPINES  
5.1 The Chairman  informed Members that th is matter was on the agenda at the request of the 
delegation of the Philippines.  Background documentation had been circ ulated by this delegation in 
document G/C/W/574.   
 
5.2 The representative of the Philippines  informed the Council that a number of actions had been 
taken by Thailand since August 2006 with regard to th e importation of cigarett es manufactured in the 
Philippines.  These measures had severely effect ed the competitiveness of his country's products, 
compared to those produced by the Thai tob acco monopoly.  Since 4 A ugust 2006, Thai customs 
refused to clear cigarettes impor ted from the Philippines at the in voice price, without providing any 
reason or explanation.  On 11 August, Thai cu stoms unilaterally imposed guaranteed values that 
exceeded the invoice price.  On 19 December, customs communicated that  the basis for the investigation 
was the fact that the exporter and the importer were related parties.  However, the importers' declared 
invoice prices had been ac cepted by Thai customs since March 2003 as the appropriate value for levying 
import duties without argument, re fusal or request for additional ba nk guarantees.  The importer had 
annually tested these prices to ensure that they resembled the prof itability of domestic distributors and 
submitted these results to Thai authorities to assure  them that the invoice pr ices were "arms-length" 
transactions.  The importer had no choice but to clea r products under protest by posting bank guarantees 
for the incremental taxes and duties based on the gu aranteed values imposed by Thai customs.  The 
value of these incremental guarantees exceeded US $37 million on an annual basis and thus began to 
endanger the survival of the Thai importer and th e profitability of the Ph ilippine exporter.    
  G/C/M/88 
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  5.3 On 18 September 2006 the Thai Minister of Finance announced new maximum retail selling 
prices for various imported ciga rettes, increasing them by between 10% and 28% depending on the 
brand.  The maximum retail sel ling price for domestic brands re mained unchanged.  As the VAT 
assessment was based on the maximu m retail selling price, this announcement increased the fiscal 
burden for imported cigarettes without  effecting locally-produced cigarett es.  For importers of cigarettes 
from the Philippines, the value of this incremental VAT assessment was over US$8 billion on an annual 
basis.  Again, no explanation ha d been provided to the importer fo r these maximum retail selling price 
increases.  By the end of 2006, a draft amendment to  the tobacco law was prepared.  This draft, if 
accepted, would empower the Finance Ministry, not only to establish the maximum retail selling price, 
but also to establish minimum selling prices.  The draft law would allow signi ficant discretion to the 
Finance Ministry in setting these prices and would provide the possibility that different minimum prices 
could be established for different brands.  In additi on, the draft would empower the Finance Ministry to 
chose from a number of options in the determinatio n of the excise tax base without explaining the 
mechanism for choosing the base to be applied for individual companies or brands.  Such action would 
be tolerable only if it effected all cigarettes, wh ether domestic or imported, in the same way.  
Unfortunately, the draft law did not pr ovide assurances in this respect.  His delegation believed that the 
actions and events described const ituted practices which we re not consistent with the provisions of the 
WTO Customs Valuation Agreement, GATT 1994, and Th ailand's basic obligations with respect to 
transparency.  His delegation requested Thailand to adjust its prices and practices in line with the WTO so that these unjustifiable impediments to  trade in cigarettes would be removed. 
 
5.4 The representative of Thailand
  thanked the Philippines for raising this matter in the WTO and 
for providing the Council with a detailed oral chronology  of this recent situation, as well as their written 
presentation in document G/C/W/574.  He assured th e Council that his delegation would forward this 
information and the concerns expresse d to its capital for detailed consideration.  Both the Philippines 
and Thailand were ASEAN Members and his Government  was willing to discuss this matter with the 
Philippines in any appropriate forum, including in th e context of their common regional trade relations 
and practices under ASEAN, in order to find a mutual ly satisfactory solution.  He understood that there 
had been useful consultations be tween the relevant companies involved as well as the appropriate 
authorities, and that there had been some recent positive developments. 
 5.5 The representative of Switzerland
 confirmed its systemic concerns  related to this issue.  His 
delegation would continue to follow the evolution of th is situation and hoped that a satisfactory solution,  
consistent with the WTO rules, would be found.  5.6 The Chairman 
proposed that the Council take note of the statements made.  
 
5.7 The Council so agreed . 
 
VI. ISSUES RELATED TO TRADE IN TEXTILES 
6.1 The Chairman  recalled that at the CTG meeting on 20 November 2006, the discussion had 
focused on the new proposal submitted by Turkey on 28 April 2006 in document G/C/W/549.   This document contained, in particular, the terms of reference of a work programme as proposed by 
Turkey.   At that meeting, there remained no common understanding among the Members on the item 
as raised by Turkey in G/C/W/549, or on the term s of reference of the work programme contained 
therein.  Turkey expressed the hope that, at the subsequent meeting of the Council, the discussion 
would move to the next stage with a discussion of the terms of reference of the work programme it 
had proposed.  While several dele gations supported Turkey, several others remained unconvinced of 
the need for such a work programme.  In view of this, and since Members continued to be willing to 
continue the discussion on this item, he proposed, inter alia , that the Council revert to this item at its 
next meeting and to hold further cons ultations to continue the discussi on on the issue.  It had been the 
Chairman’s hope that Members would seize any opportunity to meet so as to get a better appreciation G/C/M/88 
Page 6  
 
  of each other’s position, in order for the Council to eventually be in a position to move forward on the 
issue.  Such open-ended consultations had been  held on 12 March 2007.  Prior to that, on 
6 March 2007, Turkey had circulated a new communication, G/C/W/573 and Corr.1.  Only some Members were in a position at the consultati ons to offer preliminary comments on the new 
communication.  Members had a good discussion.  It was apparent, however, that the respective 
positions of Members had not evolved in substan ce.  The Chairman, therefore, had hoped that 
Members would use the time available, before the formal meeting on 19 March, to have a more 
detailed examination of the latest communication circ ulated by Turkey.  He recalled that Turkey had 
clarified, at the open-ended consultations on 8 Ma y 2006, that the focus of the CTG's work was the 
work programme contained in document G/C/W/549.   Turkey had taken an additional step by 
presenting document G/C/W/573. 
6.2 The representative of Turkey
 recalled that his delegation had made its proposal regarding the 
establishment of a work programme for a comprehensiv e review of the textiles and clothing sector in 
the CTG some time ago;  the last step being th e circulation of a communication at the April 2006 
meeting of the Council, where the main features of the terms of reference of the programme had been 
drawn.  Since then, discussions had been more stru ctured and more constructive, the proposal gaining 
the support of a majority of Member s.  In keeping with this spirit,  Turkey had decided to take a 
further step by proposing a more detailed version of the terms of reference of the work programme, 
which it called the "work outline."  This was tabl ed on 9 March 2007 with the hope that it would 
provide a more fertile ground for discussions to proceed , in order to encourage valuable contributions 
as well as to assist in the removal of misconceptions and misinterpretations.   
6.3 His delegation was of the view that the time elapsed since the phase-out of quotas provided 
Members with an adequate amount of reliable da ta on which to base the much-needed study, hence 
the timing of the proposal.  The outline had been prep ared with a view to paving the way for a more 
crosscutting discussion on each and every aspect of  the textiles and clothing sector, such as 
production, consumption, market shares, labour ma rket, technology and innovation.  Moreover, the 
trends in these areas before and after the termina tion of the ATC would lead to comparisons between 
these two periods.  The comparisons would show th e adjustment challenges and bottlenecks faced by 
certain developing countries and thus the key reas ons as to why those countries have had a hard time 
during the adjustment process.   The work programme would also extend to an estimation of 
forthcoming developments relating to production, investment, trade, new factors of investment 
decisions, the possible effects of current negotiatio ns, and the role of technology and innovation in 
trade in the sector.  The programme would also pr ovide predictability upon which future strategies 
could be elaborated.  The analysis of these aspects would in turn lead to policy options, technical 
advice and practical assistance being granted, which w ould be of utmost help to many countries that 
are in need of well-founded adjustment strategies. 
6.4 The representative of Turkey further stated that the work programme was sui generis  in that it 
would compile trade and investment flow data, examine the developments in the labour market, 
provide a firm analysis of possible forthcoming de velopments in the sector,  and finally, suggest 
guidance that could enable countries to tackle ad equately the challenges ahead, including ways to 
cooperate with the relevant intern ational organizations.  To conclude , he re-stated that his delegation 
was willing to receive contributions on the draft outline of the study, which would diagnose the problems, foster a broader understanding of different aspects of the textiles and clothing sector and 
provide guidance in order for affected Members to be able to design more acceptable national policies 
before it was too late.  At this meeting, he wished  to proceed to a higher level by discussing in an in-
depth and concrete manner the provisions of th e work programme in the new communication. 
6.5 The representative of China
 stated that the present meeting was the eleventh time this issue 
appeared on the agenda of a formal CTG meeting, in addition to the various  bilateral consultations 
and small group discussions.  He believed that most  Members were clear about China's position on  G/C/M/88 
 Page 7 
 
 
  the issue.  While some Members might continue to insist on keeping certain items of the CTG agenda, 
China was entitled to continue to repeat its steadfast  position.  First, China would not agree with any 
proposal or work programme that would run the risk of bringing the textiles and clothing sector out of the rules of GATT.  It had taken decades for WTO Members to get rid of the unfair quota system and apply general rules to this sector.  It was not in the interest of WTO Members, especially developing 
Members, for which a significant part of economic growth and job opportunities relied on this sector.  
Second, China reminded Members that such a work programme would constitute a systemic risk for 
the multilateral trading system.  If textiles and clot hing were singled out, what would be the next 
sector?  The domino effect would make the system di sordered and dysfunctional.  That would be a 
disaster for both the system and all Members.  Third, as China had pointed out in the informal 
meeting preceding the present meeting, it was not logical to discuss the new proposal presented by 
Turkey in document G/C/W/573, since Members had not reached consensus on the necessity of 
carrying out such a work programme, let alone how the work programme or study should look like.   
6.6 In the light of China’s general position on the issue, and at the request of the sponsor of the 
proposal, his delegation had the following preliminar y comments to offer.  In paragraph 1 of the 
introduction of the communication, the 5
th line said that "the terms of reference of the proposed Work 
Program was drafted with a view to taking into account the interests of all WTO Members."  But according to the understanding and judgement of his de legation this new proposal failed to take into 
account and consider the interests and views of Memb ers such as China.  In the following paragraph, 
the communication said that "the proposal has ga ined the support of a vast majority of WTO 
Members."  He could not understand how the propone nt had come to such a conclusion without 
saying that many Members, including China, had very different opinions on this  issue.  He had looked 
at some data indicating that the export shares of so me Members such as China;  India;  Pakistan;  
Hong Kong, China;  Indonesia and Thailand exceeded 85%  of the total world exports.  Therefore, the 
work programme was not in the interest of the majority of the World population.  In paragraph 3 the communication by Turkey stated that "time elapse d since the phase-out of the ATC provides us with 
reliable and adequate amount of data which a thorough analysis can be built".  His delegation was of 
the view that, compared to the decades of trade-distorted rules, two years of data could not fully reflect developments of this sector.  World produc tion and trade in this sector was still going through 
fast changes and it was too early to draw conclusi ons.  In addition, the new proposal attempted to 
make some comparisons between the trade data a nd circumstances in the periods before and after 
2005.  He pointed out that this comparison was m eaningless since the rules applied to this sector 
before 2005 were very unfair and trade-distorting.  The trade data from that period could thus not 
present a true picture of what trade should have been .  He had been instructed to reiterate China's 
position on this issue and he would continue to do so in response to the proponents’ hard efforts to 
keep this item alive on the agenda. 
6.7 The representative of El Salvador
 welcomed the new contribution by Turkey on a topic which 
was of utmost importance to her country since more th an half of El Salvador’s industrial exports were 
concentrated in this sector.  El Salvador favoured  the initiative to undertake a study in this area and 
she hoped that other Members would be prepared to go  a step further on this topic.  Turkey’s proposal 
included additional explanations a bout what should be included in this study which her delegation 
could support.  She hoped that through this study the Members would be able to identify ways and means to help other Members facing the challenges in  this sector.  El Salvador remained willing to 
continue to collaborate with other Members in orde r to find a favourable solution to this proposal. 
6.8 The representative of Jordan
 observed that this issue had been on the agenda of this Council 
for a long time.  Jordan was among the large numb er of Members supporting the establishment of a 
work programme on textiles and clothing under the um brella of the CTG to review global textile and 
clothing production and trade and market circumstances after the termination of the ATC.  The goals 
of this work programme were set out clearly in the Turkish proposal in document G/C/W/573.  It 
should present recommendations for those countries experiencing difficulties and challenges in this G/C/M/88 
Page 8  
 
  sector to improve their competitiveness in the sector and, for those heavily relying on the textile and 
clothing sector, to find ways and means to diversif y their economies.  The need might arise, based on 
the recommendations of this work programme, to c onduct studies on individual markets or countries.  
The new terms of reference proposed by Turkey  for the work programme respected the basic 
principles of WTO without affecting rights and ob ligations of Members.  The aim of the work 
programme was not to create challenges for some and propose solutions for others. Rather, it should 
be for the benefit of all Members, in particular  developing countries.  Jordan fully supported the 
elements of the Turkish proposal in G/C/W/573 an d Corr.1 and hoped that the CTG would continue 
its work on the basis of this proposal t ogether with the Members’ contributions. 
6.9 The representative of Morocco
 welcomed the new contribution by Turkey.  The clear and 
precise terms of reference proposed were anot her ambitious and positive step towards the 
materialisation of a work programme.  Her delegati on was looking in detail at the elements of the 
proposal and reserved its right to comment on it further at the next meeting of the CTG. 
6.10 The representative of Tunisia  re-stated the importance his delegation attached to the textiles 
and clothing sector given its contribution to the Tunisi an economy and to the stability of its society.  
His delegation supported the establishment of a work  programme on textiles and clothing in order to 
allow, in particular, developing countries to bette r analyse the situation and developments in this 
sector since the quota system had been eliminated an d to better prepare themselves to face the future 
challenges.  His delegation was awaiting comment s and suggestions from their Capital on the new 
communication in document G/C/W/573 and Corr.1.  As a preliminary comment, he pointed out that the proposal covered several basic elements that should be included in the study so that it would 
establish a comprehensive, neutral and objective analys is of the situation.  This would include areas 
such as the historical background of international trade in this sector, production and international 
trade as well as a description of the present situati on two years after the ATC had expired, and the 
challenges ahead.  The communication also proposed to explore the various options in terms of 
policies available to developing countries in order to be  able to face up to the challenges in the sector.  
His delegation was of the view that the Turkish proposal was an excellent basis for discussing the 
setting up of a work programme in this sector.  He expressed the hope that the discussion would 
continue with a view to finalizing the te rms of reference of the proposed study. 
6.11 The representative of Thailand
 stated that he had had a preliminary look at the document 
proposed by Turkey and, as a general comment, re peated the systemic concern associated with 
singling out the particular sector of textiles and cl othing.  His delegation also supported the general 
comments made by China in this regard. 
6.12 The representative of Hong Kong, China  supported the statements made by China and 
Thailand, in particular regarding the systemic concerns.  The integr ation of textiles and clothing under 
the rules of the GATT was one of the greatest achievements of the Uruguay Round as it marked the 
end of several decades of discriminatory treatment  in this sector and upheld the two fundamental 
principles of liberalization and non-discrimination.   His delegation appreciated that the changes 
involved could induce adjustment issues in some im porting or exporting Members.  Indeed, this had 
been the reason for having a 10-year phasing out period for the quotas applied on textiles and clothing products.  However, he strongly believed that any remaining adju stment issues should not be an 
excuse for singling out the sector again for special tr eatment towards slower liberalization, as this was 
once again an attempt to undermine the cornerstone  of the WTO and was, therefore, a serious 
systemic issue.  His delegation believed that it w ould be more appropriate to address adjustment 
issues arising from trade liberalization throu gh technical or other assistance to improve 
competitiveness, through using relevant preference sc hemes and through the re-training of workers. 
6.13 The representative of India
 appreciated the persistence with which Turkey was pushing this 
issue on the CTG agenda and observed that his delega tion had participated in all the previous formal  G/C/M/88 
 Page 9 
 
 
  and informal meetings to express concerns or views on the proposal.  Having examined the new 
communication made by Turkey in full, his delegation had been unable to fathom any evolution in the 
proposal itself.  The grave systemic concerns expressed by India had not been addressed.  Therefore, there was no change in his delegation's position on  this matter;  that this proposal would push 
Members in a direction which was neither in their best  interest, nor in the best interest of the WTO. 
6.14 The representative of Mauritius
 repeated that her delegation s upported Turkey's proposal for a 
study to be carried out on the textiles sector  which was of prime importance to her country. 
6.15 The representative of Egypt  supported Turkey's proposal in document G/C/W/573 and Corr.1 
and reiterated that his delegation was in favour of adopting a work programme to handle the issue of 
textiles and clothing. 
6.16 The representative of Mexico  expressed appreciation to Turkey for this document giving the 
details of the structure of the terms of reference of the work programme as had been discussed in the 
CTG.  His delegation felt that this document clarif ied the scope of what was intended and that it was 
impartial and balanced.  As hi s delegation had said previously, Mexico supported a study being 
carried out on world trade in textiles reflecting the interests of all WTO Members.  He was of the 
view that Turkey's new submission was a good basi s to follow-up the discussion with those Members 
who had reservations on this initiative. 
6.17 The representative of Japan  stated that there were quite a number of Members which had a 
considerable interest in trade in textiles, a nd it was understandable that conducting a study on the 
situation of trade in textiles would be useful to many Members.  Japan could support such a study if 
the following two conditions were met:  that the study should not lead to any trade distorting 
measures;  and that it should be  conducted without prejudice to the NAMA negotiations.  Having said 
that, the work programme proposed by Turkey included policy options in its last part.  At this stage, 
as Members did not know what technique of data an alysis would be conducted, her delegation was 
slightly sceptical as to whether it was appropriate to  have policy options.  No  policy option would suit 
all Members.  Therefore, it might be better to let each Member formulate its own policies on the basis 
of the study, and focus instead on data analysis. 
6.18 The representative of the United States  repeated that his delegation would be willing to work 
with Turkey and other Members to craft a work programme based on Turkey's proposal which would 
ensure a productive and constructive debate and outcome. 
6.19 The representative of Cote d'Ivoire  stated that, as a result of the High Level Session on Cotton 
organized by the WTO, his delegation could not rema in silent on this proposal because a horizontal 
diversification of cotton had been envisaged as a solution, i.e. the processing of cotton, up to the 
production of textiles and clothing.  At a time when, in Africa, mills were being shut down one after 
another, it would be interesting that this work pr ogramme be validated so that Members would have a 
clearer picture of what was happening. 
6.20 The representative of Vietnam  observed that the textiles and clothing sector was very 
important for Vietnam.  His delegation supported th e statements made by China;  Thailand;  Hong 
Kong, China;  and India on the systemic concerns.  His delegation was not convinced of the need to single out the textiles and clothing sector for specia l treatment and wished to be included in any 
further consultations on this matter. 
6.21 The representative of Turkey
 thanked the Members for their contributions.  He felt that some 
of the comments made required answers.   First, th e work programme had been prepared with a view 
to take into account the interests of all WTO Memb ers.  If there were concerns, he emphasised that 
the draft was open to comments from other Members.  Once clearly put forward, such concerns could G/C/M/88 
Page 10  
 
  be addressed.  One delegation had questioned his stat ement that a majority of the Members supported 
his delegation's proposed study.  So  far, only 4 or 5 Members had opp osed this study, and he assumed 
that the others agreed with such a study, whic h made for a clear majority.  His delegation was 
concerned with, not the share of certain developing countries in trade in textiles but the share of the 
textiles and clothing sectors in the GNP of these Members. 
6.22 The work programme foreseen in his delega tion's proposal aimed at fostering a broader 
understanding of present and future needs of the te xtiles and clothing sector and at providing guidance 
to the developing Members for policies to adjust to  the new global realities.  For Members which had 
systemic concerns, despite statements to the co ntrary, the sector was unique simply because it had 
been newly integrated into the multilateral trading system and had a significance in the economies of 
many developing and, least devel oped, countries.  The work programme outline was only a tool to 
assist in offsetting the negative impact of the integr ation by making it more smooth.  He repeated that 
the proposal was open to constructive contributions of Members.  Last but not least, Turkey, with the support of a majority of Members, was determined to keep the issue on the agenda of the CTG and 
sincerely believed in the necessity of the comprehensive work programme. 
6.23 The Chairman
 concluded that there remained no common understanding among the Members 
on this item, on the terms of reference of the wo rk programme contained in G/C/W/549, nor on the 
outline for the work programme presented in G/C/W/573.   At the same time Members continued to be 
willing to continue the discussion on this item.  He proposed that the Council take note of the 
statements made, and revert to this item at its next  meeting.  He also proposed, in the meantime, that 
he would brief the incoming Chairman and invite him to hold further consultations on the issue as 
proposed by Turkey in G/C/W/549, as well as on the outline as contained in G/C/W/573.  At the next 
meeting, he invited the incoming Chairman to re port on these consultations.  He also encouraged 
Members, in the meantime, to seize any opportunity to  meet so as to get a better appreciation of each 
other’s position, so that the Council would eventually  be in a position to move forward on this issue. 
6.24 The Council so agreed . 
 
VII. STATUS OF NOTIFICATIONS UNDER THE PROVISIONS OF THE 
AGREEMENTS IN ANNEX IA OF THE WTO AGREEMENT  
7.1 The Chairman  drew Members' attention to document G/L/223/Rev.14 containing the status of 
notifications under the provisions of the Agreements  in Annex 1A of the WTO Agreement.  This had 
been recently circulated to Members.  He asked if there were any comments on this document. 
 
7.2 The representative of Hong Kong, China  understood that this delegation had notified in 
document G/AG/N/SKG/19 its export subsidies on page 38 of the docume nt.  He requested clarification 
as to why this was not reflected in the document.  
7.3 The representative of Jordan
 considered that the documents submitted in the course of the 
accession process should constitute the notifications made in the year of  accession.  He did not consider 
that it was the obligation of recently acceding Members to make further notifications for that year.  For 
example, there were blank spaces under the notifica tion obligations for quantitative restrictions and 
import licensing for the year that his delegation acceded to the WTO.  However, his delegation had 
notified these documents during the accession process, in accordance with the requirements of this 
process.    
 7.4 The Chairman
 proposed that the Council take note of the document G/L/223/Rev.14, and 
requested Members that sought  corrections to the document or had ot her issues to raise to take up these  G/C/M/88 
 Page 11 
 
 
  points directly with the Secretariat.  He understood that a co rrigendum to this document would be 
issued.  He asked if the Council could agree to proceed on this basis.  7.5 The Council so agreed
. 
 VIII.  APPOINTMENT OF OFFICERS TO CTG SUBSIDIARY BODIES 
8.1 The Chairman
 informed Members that the Guidelines for the Appointment of Officers to WTO 
bodies contained in document WT/L/510, adopte d by the General Council on 10 December 2002, 
provided that the Chairperson of the Council for Tr ade in Goods would conduct consultations on the 
appointment of the Chairpersons of the subsidiary  bodies of the Council for Trade in Goods.  He had 
carried out consultations over the past three weeks on this matter.  These consultations were carried 
out in a highly transparent and open manner whereby all Members were informed that he would be 
accepting proposals for candidates for these positions.  Based on the proposals and suggestions from 
Members which came forth to respond to his call, he formed a draft slate of names.  This draft was the 
basis for further consultations among those Members,  the coordinators of all the regional groups, and 
some other interested Members.  Finally, on 12 March, he held an ope n-ended consultation on a 
proposed slate of names.  At this informal meeti ng, his proposed slate was agreed by Members.  He, 
therefore, believed that he was in a position to pro pose to this Council an agreed slate of names for the 
Chairs of the subsidiary bodies.  This slate re flected the open, transparent manner in which the 
consultations were carried out, as well as the wide diversity of the WTO Membership.  The proposed 
slate was as followed:  
Committee on Market Access Mohammad SAEED (Pakistan)  
Committee on Agriculture Valeria SUCASSI (Uruguay)  
Committee on Sanitary and Phytosanitary 
Measures  
Marnius HUIGE (Netherlands) 
Committee on Anti-Dumping Practices Gareth MAYER (Australia) 
Committee on Subsidies and Countervailing 
Measures  
Pablo KLEIN (Mexico) 
Committee on Safeguards Jo McKEAGG (New Zealand) 
Committee on Import Licensing Marco J. KASSAJA (Tanzania) 
Committee on Rules of Origin Vera  THORSTENSEN (Brazil)  
Committee on Customs Valuation Joe MCCLINTOCK (United Kingdom)  
Committee on Technical Barriers to Trade R. S. SIDHU (India)  
Committee on TRIMS Mathias BOGAERT (Belgium)  
Committee on State Trading Enterprises Pornvit SILA-ON (Thailand) 
Committee of Participants on the Expansion of 
Trade in Information Technology Products (ITA Committee)  
 Amr ALJOWAILY (Egypt) 
 8.2 He proposed that the Council agreed on these nominations.  8.3 The Council so agreed
. 
 
8.4 The Chairman  informed Members that while all the other subsidiary bodies of the Council 
had provisions in their respective Agreement or  rules of procedure requiring them to elect 
Chairpersons, Working Parties did not have any pr ocedural rules on electing Chairpersons.  As a 
result, in the case of the Working Party on Stat e Trading Enterprises, he proposed that the Council 
appoint the nominated Chairperson.  In the case of a ll the other subsidiary bodies, he proposed that the 
Council take note of his proposals.   G/C/M/88 
Page 12  
 
   
8.5 The Council so agreed
. 
 8.6 The Chairman
 informed Members that, with respect to Vice-Chairpersons, it was his 
understanding that it would be for the subsidiary bo dies to decide if they needed a Vice-Chairperson 
in cases where the option existed under the Agreement or rules of procedure and that it was for the 
respective Chairperson to hold the necessary consulta tions.  He proposed that the Council agree to 
proceed on this basis.  8.7 The Council so agreed
. 
 
8.8 The Chairman  thanked the outgoing Chairpersons of the various subsidiary bodies of the 
Council for Trade in Goods for their hard work and dedication during the year 2006.  
IX. OTHER BUSINESS 
A. D
ATE OF THE NEXT MEETING  
9.1 The Chairman  informed Members that the next mee ting of the Council for Trade in Goods 
was scheduled to take place on Monday, 21 May 2007.  The agenda would close on Friday, 
11 May 2007. 
 
X. ELECTION OF CHAIRPERSON OF TH E COUNCIL FOR TRADE IN GOODS 
10.1 The Chairman  recalled that the Chairman of the Gene ral Council had carried out consultations 
on a slate of names for Chairpersons to the diffe rent WTO standing bodies in accordance with the 
established Guidelines for Appointment of Officers.   These proposed nominations were approved by 
the General Council at its meeting on 7 February 2007.  In line with the nominations, he proposed that 
the Council for Trade in Goods elect H.E. Am bassador Karsten Vagn Nielsen of Denmark as 
Chairperson of this body by acclamation. 
 10.2 The Council so agreed
. 
 10.3 The Chairman
 thanked all delegations and the Secretar iat, the interpreters, and all support 
staff for their untiring efforts and dedication to carrying out the work of the CTG in 2006. 
 
10.4 The meeting was adjourned. 
__________