. /.   WORLD TRADE  
ORGANIZATION  G/C/W/580 
2 July 2007 
 
 (07-2785) 
Council for Trade in Goods  
  
 
MONGOLIA – EXPORT DUTIES ON RAW CASHMERE 
 
Draft Decision of ... 2007  
 
The General Council, 
 
 Conducting  the function of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement;   Having regard to  paragraph 1, paragraph 3 (including  its footnote 4), and paragraph 4 of 
Article IX of the Marrakesh Agreement Estab lishing the World Trade Organization (the "WTO 
Agreement"), the Guiding Principles to be followed in considering application for waivers adopted on 
1 November 1956 (BISD 5S/25) and the Understandi ng in Respect to Waivers of Obligations under 
the General Agreement on Tariffs a nd Trade 1994 (the "Understanding"); 
  Recalling that under the terms of paragraph 2 of the Protocol for the Accession of Mongolia 
to the WTO Agreement
1, Mongolia undertook a commitment to phase out and eliminate its export 
duty on raw cashmere within ten (10) years of the date of its accession to the WTO Agreement2; 
  Taking note  of the request
3 of Mongolia for a waiver with respect to the implementation of 
such commitment for a period of an additional five (5) years; 
 
 Noting that Mongolia estimates that preserving th e export duty on raw cashmere would 
ultimately contribute to improving industrial competitiveness;  creating employment;  improving livestock health and quality of raw materials;  en forcing internationally compatible standards;  
ensuring equitable utilization of pasture lands;  and to providing social welfare services to herders; 
 
 Noting Mongolia's advice that its economy is more open than would have been required under 
its WTO commitments as a result of bold reform  measures to develop a market economy and free 
trade;   Decides , in view of these exceptional circumstances, as follows: 
 
1. Subject to the terms and conditions set out  hereunder, Mongolia's commitment to 
phase out and eliminate its export duty on raw cashmere as contained in paragraph 2 of the Protocol 
for the Accession of Mongolia to the WTO Agreement is  waived for a period of an additional five (5) 
years until 29 January 2012. 
2. As a condition of this waiver, Mongolia sh all phase out and eliminate its export duty 
on raw cashmere as follows: 
                                                     
 
1 Document WT/ACC/MNG/11. 
2 See Document WT/ACC/MNG/9, para. 24. 
3 Document G/C/W/571. G/C/W/580 
Page 2  
 
  (a) Until 29 January 2010, such export duty shall not exceed Mongolia's initial 
commitment level of 30 percent ad valorem ; 
(b) After 29 January 2010,  such export duty shall not exceed the lower of: 
(i) 20 percent ad valorem ;  or 
(ii) the applied ad valorem  export duty in effect on that date minus 10 (ten) ad 
valorem  percentage points;  and 
(c) On 29 January 2012, such export duty shall be eliminated. 
3. In accordance with paragraph 3 of the U nderstanding, any Member considering that a 
benefit accruing to it under GATT 1994 is be ing nullified or impaired as a result of: 
(a) the failure of Mongolia to observe the terms or conditions of this waiver, or 
 
(b) the application of a measure consistent with the terms and conditions of the waiver, 
may invoke the provisions of Article XXIII of GAT T 1994 as elaborated and applied by the Dispute 
Settlement Understanding. 
4. This waiver shall be reviewed by the Mi nisterial Conference not later than one year 
after it is granted and thereafter annually until the waiver terminates, in accordance with the 
provisions of paragraph 4 of Article IX of the WTO Agreement. 
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