. /.  WORLD TRADE  
ORGANIZATION   
WT/L/694 
1 August 2007 
 (07-3293) 
  
   
UNITED STATES - FORMER TRUST TERRITORY OF THE PACIFIC ISLANDS 
 
Decision of 27 July 2007
* 
 
 
The General Council,  
 
 Taking note  of the request of the Government of the Un ited States for an extension of the waiver 
from its obligations under paragraph 1 of  Article I of the General Agreement1 which was granted by the 
CONTRACTING PARTIES of the GATT 1947 on 8 Se ptember 1948 for provision of preferential 
treatment for eligible imports into the United Stat es from the Marshall, Caroline and Mariana Islands 
(other than Guam) and extended by th e 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 Natio ns 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 th e Compacts of Free Association with the United 
States for the Republic of the Mars hall Islands, the Federa ted States of Micronesi a, 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 unde r the Covenant and Compacts of Fr ee Association, the exports of 
such islands have been entitled to preferential trea tment in the market of th e United States, upon which 
such exports are subs tantially dependent; 
 
 Considering  also that the preferential treatment provide d to these islands is designed to promote 
the expansion of trade and economic development of the beneficiaries in a ma nner consistent with the 
objectives of the GATT 1994 and with the trade, fina ncial and development need s of the beneficiaries, 
and not to raise barriers or to create  difficulties for trade of other Members;   
 
 Considering  further that the system of preferential entr y 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 substantial injury to the trade of any of the members and is not likely to do so in the future;  
                                                      
* Secretariat note:  Adopted in accordance with th e Decision-Making Procedur es under Articles IX and 
XII of the WTO Agreement agreed by the Gene ral Council in November 1995 (WT/L/93). 
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/694 
Page 2  
 
   Noting , furthermore, the assurances given by the United States Government that it 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 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 
General Agreement on Tariffs and Tr ade 1994, and paragraphs 3 and 4 of  Article IX of  the Marrakesh 
Agreement Establishing the World Trade Organi zation (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 Decemb er 2016, 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 Islands, 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 crea te undue difficulties for 
the trade of other Members. 
 3. The Government of the United States will subm it 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 Member s’ rights as set forth in the Understanding in 
Respect of Waivers of Obligations under the GATT 1994. 
 
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