WORLD TRADE  
ORGANIZATION  WT/GC/W/582 
7 December 2007 
 (07-5408) 
General Council 
18-19 December 2007  
 
 
 
GENERAL COUNCIL 
 
Draft Annual Report (2007 )1 
 
 
 The present report has been prepared in pursu ance of the Procedures for an Annual Overview 
of WTO Activities and for Reporting under the WT O (WT/L/105), and sets out the actions taken by 
the General Council in the period since its previous annual report.2 
 
 In carrying out its tasks, the General Council has held [...] meetings and since the period 
covered by the previous report.  The minutes of these meetings, which remain the record of the 
General Council's work, are containe d in documents WT/GC/M/107 - […]. 
  The following subjects are included in the report:  
1.
 Work under the Doha Work Programme...............................................................................2  
(a) Trade Negotiations Committee – Reports...................................................................................2  
(b) Work Programme on Small Economies – Reports .....................................................................4  
(c) Work Programme on Special and Differential Treatment ..........................................................6  
(i) Reports by the Chairman of the Special Session of the Committee on Trade and 
Development .................................................................................................................... ...........6  
(ii) Reports by Chairpersons of other WTO bodies to whom special and differential 
treatment proposals ha ve been ref erred .....................................................................................6  
(d) Rules of Origin – Harmonization Work Programme – Statement by the Chairman...................7  
(e) Aid for Trade .................................................................................................................. ............7  
(i) Regional Reviews on Aid for Trade ............................................................................................7  
(ii) Annual Debate on Aid for Trade................................................................................................. 8 
2. Non-recognition of rights under Article XXIV:6 and Article XXVIII of GATT 
1994 – Communications from Honduras and Guatemala.....................................................8  
3. Review of the Exemption Provided un der Paragraph 3 of the GATT 1994........................9  
4. Article 27.4 of the Agreement on Subsidies and Countervailing Measures.......................10  
5. Transparency for Preferent ial Trade Arrangements ..........................................................10  
                                                      
1 The final version of this report will also reflect the discussion at the General Council meeting on 18-
19 December 2007 and the points w ill be renumbered as necessary. 
2 The annual report of the General Council for 2006 was circulated in WT/GC/110. WT/GC/W/582 
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  6.
 Committee on Budget, Finance and Administration – Reports and 
recommendations ................................................................................................................ ....11  
7. Accession matters.............................................................................................................. ......12  
(a) Comoros........................................................................................................................ ............12  
8. Waivers ........................................................................................................................ ............12  
(a) Introduction of Harmonized System 1996 Changes into WTO Schedules of Tariff 
Concessions – Argentina and Panama ......................................................................................12  
(b) United States – Former Trust Territory of the Pacific Islands – Request for extension 
of waiver ...................................................................................................................... .............13  
(c) Mongolia – Accession Commitment on Export of Raw Cashmere – Request for a 
Waiver......................................................................................................................... ..............13  
(d) Review of Waivers Pursuant to Artic le IX:4 of the WTO Agreement .....................................13  
9. Statements by Paraguay on behalf of the Informal Group of Developing 
Countries...................................................................................................................... ............14  
10. United States' proposed measures affecting the importation of cigars – 
Statement by the Dominican Republic, Honduras and Nicaragua.....................................14  
11. Seventh Session of the Ministerial Conference.....................................................................14  
12. Administrative Measures fo r Members in Arrears .............................................................15  
13. Appointment of Officer s to WTO bodies..............................................................................16  
14. Election of Chairperson........................................................................................................ ..17 
 
 
1. Work under the Doha Work Programme 
(a) Trade Negotiations Committee – Reports (WT/GC/M/107, 108, 109, 110) 
 Ministers at Doha established a Trade Negotiations Committee under the authority of the 
General Council to supervise th e overall conduct of the negotiati ons (WT/MIN(01)/DEC/1).  In 
accordance with the Principles and Practices endor sed by the Trade Negotiations Committee at its 
first meeting on 28 January and 1 February 2002, the TNC reports to each regular meeting of the 
General Council (TN/C/M/1).   At the General Council m eeting on 7 February 2007
, the Director-General, as Chairman of 
the Trade Negotiations Committee, reporting on the TNC's activities, said inter alia  that Members had 
resumed negotiations fully across the board and that  political conditions were more favourable for the 
conclusion of the Round than they had been for a long time.  The process would continue to be 
bottom-up, inclusive and transparent, and led by  the negotiating group Chairs.  The multilateral 
process would continue to be the main process in the negotiations and the only one where decisions 
could be taken.  As to timing, Members should not attempt to set any false deadlines: all were aware 
of the urgency of the task, but it was also important  to reach a substantive outcome acceptable to all.  
With regard to cotton, he announced on the basis of consultations that a High-Level Session of the 
Consultative Framework on Cotton would be  held in Geneva on 15-16 March.  
  The representatives of Benin (on behalf of th e African Group); Australia (on behalf of the 
CAIRNS Group); Australia; Brazil (on behalf of th e G20); Barbados (on behalf of the small, 
vulnerable economies); Chad (on behalf of the co-sponsors of the Sectoral Initiative on Cotton);  WT/GC/W/582 
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  Philippines (on behalf of the ASEAN Members) ; South Africa (on behalf of the NAMA-11); 
Argentina; Indonesia (on behalf of the G33); Indone sia; Jamaica (on behalf of the ACP Group); Hong 
Kong, China; Bolivarian Republic of Venezuela; Paraguay; Nicaragua; Nigeria; Cuba; European 
Communities; Japan; Zambia; United States; China; Colombia and India, and the Chairman spoke. 
 
 The General Council took note of the Direct or-General's report and of the statements.3 
  At the General Council meeting on 9 May 2007
, the Director-General, as Chairman of the 
Trade Negotiations Committee, reporting on the TNC's activities, said inter alia  that a number of 
major players had recently affirmed their commit ment to a successful outcome of the negotiations 
around the end of 2007, and had also  committed themselves to intensifying their efforts to finding 
common ground as a contribution to the conclusion of the Round.  An informal meeting of the TNC on 20 April had signalled wide convergence on the sh ape of the multilateral process needed in the 
coming weeks as outlined by him in his opening re marks (JOB(07)/51), and through their different 
processes the Chairs of the negotiating groups we re working towards revised texts which could 
become a basis for agreement.  It was his belief that a successful outcome to the Round was possible 
even in the small amount of time remaining until the end of the year, and he urged all to put their 
energy and commitment into concluding the Round.   Before concluding, he also reported on 
preparations for three regional Aid-for-Tra de reviews to be held in the autumn. 
  The representatives of Singapore, Australia (on behalf of the CAIRNS Group), Paraguay (on 
behalf of the Informal Group of Developing C ountries), Chinese Taipei, Nicaragua, Uganda (on 
behalf of the African Group), Solomon Islands, Zambia  (on behalf of LDCs), Nigeria and Cuba spoke. 
  The General Council took note of the Direct or-General's report and of the statements.
 4 
 
 At the General Council meeting on 27 July 2007 , the Director-General, as Chairman of the 
Trade Negotiations Committee, reporting on the TNC's activities, recalled his statement to the TNC on 26 July (JOB(07)/130) and said  inter alia  that the major recent development in the negotiations 
had been the circulation of draft modalities text s by the Chairs of the Agriculture and NAMA 
negotiating groups which, as the Chairs had underlined , were draft texts, not negotiated or agreed 
texts, and only another step in  the process and would have to be  revised in light of the views 
expressed by participants.  Delegati ons had the month of August to refl ect fully, and should then be in 
a position to return to the process prepared to engage  in an intensive negotiation as from 3 September.  
The immediate aim was not only to establish full modalities in Agriculture and NAMA, but also to make commensurate progress in other negotiating ar eas in line with the full Doha mandates, the 
July 2004 Decision and the Hong Kong Ministerial D eclaration.  While it was clear there were some 
significant differences that remained to be resolv ed, convergence was within reach if Members were 
all ready to show the necessary will and flexibility to close the gaps.  Having listened carefully to all 
the statements at the TNC meeting, he remain ed of the view that a deal could be done. 
  The representatives of Chinese Taipei, Ecuador, Lesotho (on behalf of the LDCs), and Benin 
(on behalf of the co-sponsors of the Sectoral Initiative on Cotton), and the Chairman spoke. 
 
                                                     
 
3 At their request, statements by the following delegations at the informal TNC meeting on 31 January 
were also included in the records of this meeting (WT/GC/M/107): the Philippines (on behalf of the ASEAN 
Members), Indonesia (on behalf of the G33) and the Bolivarian Republic of Venezuela. 
4 At their request, statements by the following dele gations at the informal TNC meeting on 20 April 
were also included in the records of this meeting (WT/ GC/M/108): Australia (on behalf of the CAIRNS Group), 
Australia, Barbados (on behalf of the small, vulnerable economies), Benin (on behalf of the co-sponsors of the Sectoral Initiative on Cotton), Brazil, China, India, Ja maica (on behalf of the ACP Group), Mexico, Nigeria, 
Rwanda, Singapore, Switzerland (on behalf of the G10) and Uganda (on behalf of the African Group). WT/GC/W/582 
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   The General Council took note of the Direct or-General's report and of the statements.
 5  
  At the General Council meeting on 9 October 2007
, the Director-General, as Chairman of the 
Trade Negotiations Committee, reporting on the TNC's activities, said inter alia  that the negotiations 
had started again to move ahead in earnest and that , starting with the work on agriculture, participants 
were demonstrating the kind of e ngagement and readiness to look for compromises that the Chair and 
he had been urging for some time.  Completing the Round was now not only technically possible, but also a political must.  Over the past few weeks, one had continue d to hear this message from the 
highest levels, reflecting a strong commitment to a successful and ambitious outcome to the Round.  
The only possible path to an ambitious, balanced and development-oriented outcome to the Round 
was not only to establish full modalities in Agricultu re and NAMA, which were needed to start the 
scheduling phase, but also to make commensurate pr ogress in other areas of the negotiations in line 
with the full Doha mandates, the July 2004 Decisi on and the Hong Kong Ministerial Declaration.   
  The representatives of South Africa (on behalf  of the ACP Group, the African Group, the 
NAMA-11, and the small, vulnerable economies), Boliv arian Republic of Venezuela, Jamaica, Benin, 
Barbados, China, Nicaragua, Brazil, Chinese Taipei , Bolivia, European Communities, Cuba, Zambia, 
Argentina, India, Japan, Switzerland, Burkina Faso, Norway, United States, Côte d'Ivoire, Mexico and 
Congo, and the Chairman spoke.   The General Council took note of the Direct or-General's report and of the statements. 
 
(b) Work Programme on Small Economies – Reports (WT/GC/M/107, 108, 109, 110) 
 Ministers at Doha agreed to a work programme , under the auspices of the General Council, to 
examine issues relating to the trade of small econom ies, with a mandate to frame responses to the 
trade-related issues identified for the fuller inte gration of small, vulnerable economies into the 
multilateral trading system and not to create a sub-category of WTO Members (WT/MIN(01)/DEC/1, 
paragraph 35).  At its meeting in February and March 2002, the General Council took note of a 
framework and procedures for the conduct of th e Work Programme on Small Economies, under which 
this Work Programme would be a standing item on the General Council's agenda.  The framework 
and procedures also provided that the Committee on  Trade and Development would report regularly 
to the General Council on the progress of work in its Dedicated Sessions on this subject.  Ministers at 
Hong Kong instructed the CTD, under the overall res ponsibility of the General Council, to continue 
the work in the Dedicated Session and to monito r progress of the small economies' proposals in the 
negotiating and other bodies, with the aim of providi ng responses to the trade-related issues of small 
economies as soon as possible but no later than 31 D ecember 2006.  In December 2006, on the basis 
of a report by the Chair of the CTD in Dedicated Session the General Council took note that Members 
would be pursuing the substantive work under this work programme.   
  At the General Council meeting on 7 February 2007
, the Chairman of the Dedicated Session 
of the CTD reported inter alia  that while there had been no formal meetings of the Dedicated Session 
since December 2006, the proponents had met a number  of times to discuss their proposals in the 
various negotiating groups and other WTO bodies, and had also e ngaged in a number of bilateral and 
plurilateral meetings on issues concerning agri culture, NAMA, services, trade facilitation and 
subsidies. 
                                                      
5 At the Chairman's suggestion, statements by all delegations at the meeting of the TNC on 26 July, 
reflected in the records of that mee ting in document TN/C/M/27, were incorp orated by reference into the records 
of this meeting (WT/GC/M/109).  Also at the Chairman's suggestion, statements by the following delegations at 
the meetings of the Special Session of the Committee on Agriculture and the Negotiating Group on NAMA held during the week of 23 July were also included in th e records of this meeting at  their request:  European 
Communities, Ecuador, Lesotho (on behalf  of the LDCs), and Sri Lanka.    WT/GC/W/582 
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 The representatives of Barbados (on behalf of the small, vulnerable economies) and Nicaragua, and the Chairman spoke.   The General Council took note of the report by the Chairman of the Dedicated Session of the 
CTD and of the statements.  
  At the General Council meeting on 9 May 2007
, the Chairman of the Dedicated Session of the 
CTD reported inter alia  that the proponents had been using the pa st few months to concentrate efforts 
on revising past proposals and preparing new submissions. The new submissions as well as main 
points of earlier proposals were being compiled by the Secretariat into a single document which he 
intended to take up in informal discussi on with Members in the coming weeks. 
  The representatives of Barbados (on behalf of the small, vulnerable economies), Fiji, 
Solomon Islands, Nicaragua, Zambia, and St. Vincent and the Grenadines spoke. 
 
 The General Council took note of the report by the Chairman of the Dedicated Session of the CTD and of the statements.   At the General Council meeting on 27 July 2007
, in the absence of the Chairman of the 
Dedicated Session of the CTD and on the latter's requ est and behalf, the previous Chair of the CTD  
reported inter alia  that at an informal meeting convened on 24 May to continue monitoring progress 
on the proposals submitted by the proponents, the Secretariat had presented a compilation paper to assist the Dedicated Session with its monitoring ro le, which the Secretariat intended to keep updating 
to reflect future proposals and developments. 
 The representatives of Barbados (on behalf of the small, vulnerable economies) and 
Nicaragua, and the Chairman spoke. 
  The General Council took note of the report by the Chairman of the Dedicated Session of the CTD and of the statements.    At the General Council meeting on 9 October 2007
, the Chairman of the Dedicated Session of 
the CTD reported inter alia  that since July the proponents, like other delegations, had been occupied 
with meetings on the two draft texts on agriculture and NAMA modalities.  They had also been pursuing issues of interest to the small, vulne rable economies in other areas of the DDA, such as 
rules, trade facilitation and services.  The compilation document prepared by the Secretariat was being, and would continue to be, updated to reflect the current state of play and to monitor issues of 
concern to small economies as discussed in the negotiating groups and other bodies.  
  The representative of Barbados (on behalf of the small, vulnerable economies), and the 
Chairman spoke.   The General Council took note of the report by the Chairman of the Dedicated Session of the 
CTD and of the statements. 
 WT/GC/W/582 
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  (c) Work Programme on Special and Differential Treatment 
(i) Reports by the Chairman of the Special S ession of the Committee on Trade and Development 
(WT/GC/M/108, 109) 
(ii) Reports by Chairpersons of other WTO bodies to whom special and differential treatment 
proposals have been referred (WT/GC/M/108, 109) 
 Ministers at Hong Kong instructed the Co mmittee on Trade and Deve lopment in Special 
Session to expeditiously complete the review of all the outstanding Agreement-specific proposals and 
report to the General Council, with clear recomm endations for a decision, by December 2006.  
Regarding the Category II proposals that had b een referred to other WTO bodies and negotiating 
groups, Ministers instructed these bodies to exped itiously complete the consideration of these 
proposals and report periodically to the General Counc il, with the objective of ensuring that clear 
recommendations for a decision were made no later than December 2006.  They also instructed the 
Special Session to continue to coordinate its effo rts with these bodies to ensure that this work was 
completed on time.  Ministers further instructed th e Special Session, within the parameters of the 
Doha mandate, to resume work on all other outstanding issues – including cross-cutting issues, the 
monitoring mechanism, and the incorporation of S& D treatment into the architecture of WTO rules – 
and to report on a regular basis to the General C ouncil.  In December 2006, the General Council took 
note that Members would be pursuing their consid eration of the outstanding Agreement-specific 
proposals both in the Special Session and in the ot her WTO bodies to whom such proposals had been 
referred.  
 At the General Council meeting on 9 May 2007
, the Chairman of the Special Session of the 
CTD, reporting on the status of work in the Speci al Session since December, drew on a detailed report 
that had been circulated in document TN/CTD/19.  Following the report by the Chairman of the Special Session, the Council received reports from the Chairs of the negotiating groups and other 
WTO bodies to whom certain Agreement-specific S&D tr eatment proposals had been referred.  In this 
connection, the Council Chairman recalled the statement by the TRIPS Council Chair at the 
May 2006 General Council meeting regarding the consideration of these issues in that body. 
  The representatives of Cuba and Kenya, and the Chairman spoke.   The General Council took note of the reports by the Chairpersons and of the statements. 
 
 At the General Council meeting on 27 July 2007
, the Chairman of the Special Session of the 
CTD, reporting on the status of work in that body since May, drew attention to his detailed written 
report circulated in document TN/CTD/20.  Follow ing the report by the Chairman of the Special 
Session, the Council received reports from the Chai rs of the negotiating groups and other WTO 
bodies to whom certain Agreement-specific S&D treat ment proposals had been referred.  In this 
connection, the Council Chairman recalled the statement by the TRIPS Council Chair at the May 2006 General Council meeting regarding the consideration of these issues in that body. 
  The representatives of Bangladesh, Lesotho (on be half of the LDCs), Uganda (on behalf of 
the African Group), Kenya, Jamaica (on behalf of the ACP Group), Zambia and China, and the 
Chairman spoke. 
  The General Council took note of the reports by the Chairpersons and of the statements. 
  WT/GC/W/582 
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  (d) Rules of Origin – Harmonization Work Programme – Statement by the Chairman 
(WT/GC/M/109) 
 The Harmonization Work Programme for non-pr eferential rules of origin was launched in 
July 1995 in the Committee on Rules of Origin. Si nce July 2002, when the CRO forwarded 94 core 
policy issues to the General Council for discussion and decision, this matter has been taken up at the 
General Council level, with the substantive work being pursued in informal  consultations conducted 
by the Chair of the CRO at the request and on be half of the Chair of the General Council.  In 
July 2006, on the basis of a report from the Chair of the CRO, the General Council agreed to further 
extend to July 2007 the deadline for completion of ne gotiations on the core policy issues identified in 
a report by the Chair of the CRO to the General C ouncil in July 2002 and also agreed that, following 
resolution of these core policy issues, the Commi ttee on Rules of Origin complete its remaining 
technical work concerning the overall architecture and technical issues by 31 December 2007.  
 At the General Council meeting on 27 July 2007 , the Chairperson of the CRO reported on the 
consultations she had been holding on the request a nd behalf of the General Council Chair on the core 
policy issues.   
 
 The representatives of Mexico, Australia, Philippi nes, India, New Zealand, Japan, Korea, 
Switzerland and Hong Kong, China, and the Chairman spoke.   The Chairman proposed – in th e light of the report and recommendations of the Chair of the 
CRO, and the views expressed in the Council – that Me mbers take some time to  reflect on this matter 
and consider ways to take forward the work on the two core policy issues referred to the Council, 
namely the implications issue and dual-rule for machinery, and that in the meantime the Committee 
on Rules of Origin continue its work with a view  to resolving all technical issues, including the 
technical aspects of the overall architecture, as soon as possible.  He noted in this connection that, in 
terms of next steps, delegations had requested  the CRO Chair to continue the technical and 
architecture discussions in the regular business of th e CRO.  He also proposed that the Council revert 
to this matter at a future meeting.  He was prepar ed to consult with Members, as had been suggested 
in the discussion.   The General Council took note of the statemen t by the CRO Chair and of other statements, 
and agreed to the Chairman's proposals. 
 (e) Aid for Trade 
(i) Regional Reviews on Aid for Trade (WT/GC/M/109) 
 At the General Council meeting on 27 July 2007
, the Director-General provided Members 
with an update on the Aid-for-Trade roadmap, noting inter alia  that the OECD had presented to the 
CTD in April a preliminary picture of Aid-for-Tra de flows that would be refined for the Global 
Review in the General Council in November;  that   the CTD had been holding a series of periodic 
reviews to give Members an opportunity to discuss va rious aspects of Aid for Trade;  and that the 
organization of three regional reviews in the autu mn in Peru, the Philippines and Tanzania, were well 
advanced.  All of these activities would feed in to the Global Review in the General Council 
in November. 
 The representatives of Haiti and Tanzania, and the Director-General spoke. 
  The General Council took note of the statements.  WT/GC/W/582 
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  (ii) Annual Debate on Aid for Trade (WT/GC/M/111
6) 
 The Task Force on Aid for Trade established in  2006 pursuant to the instruction of Ministers 
at Hong Kong recommended, inter alia , that an annual debate on Aid for Trade be convened in the 
General Council in order to provide political guidance on Aid for Trade (WT/AFT/1).  The 
recommendations of the Task Force were endor sed by the General Council in October 2006. 
 
 At its meeting on 21 November 2007 , the General Council held it s first annual debate on Aid 
for Trade, which served as the final segment of a glob al review of aid for trade held at the WTO from 
19-21 November with the aim of taking stock of what was happening on Aid for Trade, identifying what should happen next, and improving WTO mon itoring and evaluation.  The Council meeting 
provided an opportunity for Members to discuss the results of the WTO monitoring process to date, 
and to provide political guidance on future directions.   As an aid to the discussion, the Council heard a report from the Chairman of the Committee 
on Trade and Development on the periodic reviews of  Aid for Trade held in the CTD, followed by a 
summary report presented by DDG Mrs Rugwabiza on behalf of the Director-General.   
  The representatives of the European Commun ities; Turkey; Uganda; Jamaica; Lesotho; 
Paraguay; Benin; Brazil; Mexico; Korea; Canada; Australia; United States; Pakistan; Saudi Arabia; 
New Zealand; Honduras; China; Switzerland; Jap an; Suriname; Sri Lanka; Hong Kong, China; 
Chinese Taipei; Singapore; Ecuador; Mongolia; Qa tar; Rwanda; Norway; Antigua and Barbuda; 
Philippines; India; Barbados; Nicaragua; Bolivia n Republic of Venezuela; Bangladesh; Solomon 
Islands; and the Chairman and the Director-General spoke.   The General Council took note of the statements.  2. Non-recognition of rights under Article XXIV:6 and Article XXVIII of GATT 1994 – 
Communications from Honduras and Guat emala (WT/GC/M/107, 108, 109, 110) 
 In December 2004, at the request of Honduras and Guatemala, the General Council 
considered the question of non-recognition of rights for the processes under Articles XXIV:6 and 
XXVIII of GATT 1994 in connection with the enlarg ement of the EC from 15 to 25 members and its 
move to a tariff-only regime on bananas from 1 January 2006.  This matter was subsequently 
considered by the General Council at each regular meeting since then without resolution, and in 
December 2006 the Council agreed to revert to it at  its next meeting, and that the Chair would hold 
further consultations in the meantime in the hope of moving it forward.   At the General Council meeting on 7 February 2007
, the Chairman, reporting on his recent 
consultations, said they had resulted in a clear unders tanding that the parties directly concerned would 
be engaging, in the next few weeks, in direct a nd substantive dialogue and in good faith on the issues 
and concerns raised by Honduras and Guatemala.   The representatives of Honduras, Guatemala, Nicaragua, Paraguay, Mexico, Philippines, 
European Communities, Ecuador, Colombia, Costa Rica and Panama spoke. 
 
 The General Council took note of the statements a nd agreed to revert to this matter at its next 
meeting.   At its meeting on 9 May 2007
, the General Council again considered this matter. 
 
                                                      
6 To be issued .  WT/GC/W/582 
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   The representatives of Guatemala, Honduras,  Nicaragua, Jamaica, Ecuador, Salvador, 
Mexico, St. Vincent and the Grenadines, Paragua y, Cameroon and the European Communities spoke. 
  The General Council took note of the statements, and agreed to revert to this matter at its next 
meeting, and that the Chairman would consider holding consultations in the meantime as far as he 
judged to be useful. 
  At its meeting on 27 July 2007
, the General Council again consid ered this matter, and heard a 
report from the Chairman on his consultations.  
 The representatives of Guatemala (on behalf of Honduras), Guatemala, Jamaica, Nicaragua, 
European Communities, Ecuador, Paragua y, Philippines and Colombia spoke. 
  The General Council took note of the statements, and agreed to revert to this matter at its next 
meeting, and that the Chairman would make himself available for further consultations if Members so 
wished. 
  At its meeting on 9 October 2007
, the General Council again c onsidered this matter, and 
heard a report from the Chairman on his further consultations.   The representatives of Honduras, Guatemala,  Paraguay, Côte d'Ivoire and European 
Communities spoke. 
  The General Council took note of the statements, and agreed to revert to this matter at its next 
meeting.  3. Review of the Exemption Provided under Paragraph 3 of the GATT 1994 
(WT/GC/M/107) 
 Paragraph 3(a) of the GATT 1994 provides an exemption from Part II of the GATT 1994 for 
measures under specific mandatory legislation – enacte d by a Member before it became a contracting 
party to the GATT 1947 – which prohibits the use,  sale or lease of foreign-built or foreign-
reconstructed vessels in commercial applications betw een points in national waters or waters of an 
exclusive economic zone.  On 20 December 1994, the United States invoked the provisions of 
paragraph 3(a) with respect to specific legislati on that met the requirements of that paragraph.  
Paragraph 3(b) of the GATT 1994 calls for a review of  this exemption five years after the date of 
entry into force of the WTO Agreement, and thereaf ter every two years for as long as the exemption is 
in force, in order to examine whether the conditio ns which created the need for the exemption still 
prevail.  The General Council last considered this matter at its meeting in December 2005, at which it 
took note that under the two-yearly cycle provided for in paragraph 3(b) of the GATT 1994, the next 
review would normally be held in 2007.   At the General Council m eeting on 7 February 2007
, the Chairman proposed that for the 
purposes of the conduct of the review in 2007 Member s proceed in a manner similar to that in 2005.  
He would accordingly invite all inte rested delegations to speak for the record with regard to the 
review under the current cycle.  He would also invi te interested delegations to submit comments and 
questions to the United States regarding the operation of the legislation under the exemption, to which 
the United States would be invited to respond.  Th ese statements, questions and responses, together 
with the annual statistical report provided by the US under paragraph 3(c) of the GATT 1994 
(WT/L/680), would form the basis for the present year's review.  For the purposes of the review, this 
matter would be on the agenda of subsequent General Council meeti ngs in the course of 2007 as the 
Chairman deemed appropriate, or at the request  of any Member.  The General Council would, 
furthermore, consider this matter again at its last meeting of this year at which it would take note of WT/GC/W/582 
Page 10  
 
  the discussions held in the course of the review until then, and take any other action it might agree on.  
It would also take note that the subsequent  review would normally be held in 2009. 
  The representatives of the United States; H ong Kong, China; Norway; Japan; European 
Communities; Australia; Chile and Korea spoke. 
 
 The General Council took note of the statements and agreed to revert to this item at a future 
meeting.  
4. Article 27.4 of the Agreement on Subsidies and Countervailing Measures 
(WT/GC/M/109) 
 At its meeting on 27 July 2007
, the General Council considered a draft Decision on 
procedures for the continuation of extensions of the transition period under Article 27.4 of the 
Agreement on Subsidies and Countervailing Measur es for certain developing-country Members, 
forwarded to it from the SCM Committee (G/SCM/120). 
 
 The Chairman of the SCM Committee introduced the draft Decision.   The representatives of Bolivia, Barbados (als o on behalf of the Dominican Republic, El 
Salvador, Guatemala, Jamaica, Mauritius, Antigua  and Barbuda, Belize, Dominica, Fiji, Grenada, 
Papua New Guinea, St. Lucia, St. Kitts and Nevis,  and St. Vincent and the Grenadines), Nicaragua, 
Panama (also on behalf of Jordan and Uruguay), Jap an, Chile, Sri Lanka (also on behalf of Bolivia, 
Honduras and Kenya), United States, Dominican Re public, El Salvador, Gu atemala, Jamaica, 
Mauritius, European Communities, Jordan and Costa Rica, and the Chairman spoke. 
  The Chairman proposed that the General C ouncil adopt the draft Decision in G/SCM/120 on 
the understanding that a rectification would be made to paragraph 5(a) of the Spanish-language 
version of the text.   The representative of Chile and the Chairman spoke.   The General Council took note of the statements and agreed to the Chairman's proposal.
7 
  The representative of  Nicaragua spoke.   The General Council took note of the statement.  5. Transparency for Preferential Tr ade Arrangements (WT/GC/M/109) 
 In December 2006, the General Council adopted a Decision on Transparency for Preferential 
Trade Arrangements (WT/L/672) inviting the Co mmittee on Trade and Development to consider 
transparency for preferential trad e arrangements under paragraph 2 of the Enabling Clause, other than 
RTAs, and to report back within six months for appropriate action by the General Council. 
 
 At the General Council meeting on 27 July 2007
, in the absence of the Chairman of the 
Committee on Trade and Development and on the latter's request and behalf, the previous Chair of the 
CTD reported inter alia  that at the CTD meeting in July it ha d been agreed that a request for more 
time to deal with this matter should be made to the General Council, and requested accordingly that 
the CTD be allowed until December 2007 to cons ider the matter and report back for appropriate 
action.  
                                                      
7 The Decision was subsequently circulated in document WT/L/691.  WT/GC/W/582 
 Page 11 
 
 
   
 The representatives of Brazil and India spoke.   The General Council took note of the report of the Chairman of the CTD and of the statements, and agreed that the deadline for the CTD to consider this matter and report back for 
appropriate action be extended to December 2007. 
 
6. Committee on Budget, Finance and Admini stration – Reports and recommendations 
(WT/GC/M/107, 108, 109, 110) 
 At its meeting on 7 February 2007
, the General Council considered a report by the Budget 
Committee on its meetings of Septem ber and October 2006 (WT/BFA/91). 
  The Chairman of the Committee introduced the report.   The General Council took note of the statemen t and adopted the Budget Committee's report in 
WT/BFA/91. 
  At its meeting on 9 May 2007
, the General Council considered a report by the Budget 
Committee on its meetings of November and December 2006 (WT/BFA/94).     The Chairman of the Committee introduced the report. 
 
 The General Council took note of the statemen t and adopted the Budget Committee's report in 
WT/BFA/94.   The General Council then considered the Budget Committee's report on its meeting of 
March 2007 (WT/BFA/95). 
  The Chairman of the Committee introduced the report.   The representative of the United States and the Director-General spoke.  
 The General Council took note of the statem ents, approved the Budget Committee's specific 
recommendations in paragraphs 23, 25, 33 and 35 of its report in WT/BFA/95, and adopted the report. 
  At its meeting on 27 July 2007
, the General Council considered a report by the Budget 
Committee on its meeting of May 2007 (WT/BFA/96). 
 
 The Chairman of the Committee introduced the report.   The General Council took note of the statemen t and adopted the Budget Committee's report in 
WT/BFA/96.  
 The General Council then considered reco mmendations of the Budget Committee resulting 
from the Committee's meeting of July 2007 (WT/BFA/97).   The Chairman of the Committee introduced the recommendations.  
 The General Council took note of the stat ement and approved the Budget Committee's 
recommendations in WT/BFA/97.  WT/GC/W/582 
Page 12  
 
   At its meeting on 9 October 2007
, the General Council considered a report by the Budget 
Committee on its meeting of June 2007 (WT/BFA/98).   The Chairman of the Committee introduced the report.  
 The General Council took note of the statemen t and adopted the Budget Committee's report in 
WT/BFA/98.   The General Council then considered a repor t by the Budget Committee on its meeting of 
July 2007 (WT/BFA/99 and Corr.1). 
 
 The Chairman of the Committee introduced the report.   The General Council took note of the statemen t and adopted the Budget Committee's report in 
WT/BFA/99 and Corr.1. 
 
7. Accession matters 
(a) Comoros (WT/GC/M/110) 
 At its meeting on 9 October 2007
, the General Council considered a communication from the 
Comoros requesting accession to the WTO Agreem ent pursuant to Article XII of the WTO 
Agreement (WT/ACC/COM/1). 
 
 The Chairman proposed that the General Counc il agree to establish a Working Party with 
standard terms of reference and membership, which he read out. 
  The General Council so agreed. 
 
The Chairman then invited the representative of  the Comoros to consult with the Accessions 
Division of the Secretariat as to further procedur es, in particular with regard to the basic 
documentation to be considered by the Working Party.   He also invited the Comoros, on behalf of the 
General Council, to attend meetings of the Gene ral Council and, as appropria te, meetings of other 
WTO bodies as an observer during the period when the Working Party was carrying out its work. 
The representatives of the Comoro s (as an observer), Mauritius, Lesotho (on behalf of the 
LDCs), Jamaica (on behalf of the ACP Group), Paraguay (on behalf of the Informal Group of 
Developing Countries), India, Switzerland, Norway, United States, Côte d'Ivoire, Mexico, Congo, 
Benin, Zambia, Argentina and Burkina Faso, and the Chairman spoke. 
The General Council took note of the statements. 
8. Waivers 
(a) Introduction of Harmonized System 1996 Changes into WTO Schedules of Tariff 
Concessions – Argentina and Panama (WT/GC/M/109) 
 At its meeting on 27 July 2007
, the General Council considered requests for extension of 
waivers from Argentina (G/L/815) and Panama (G/L /816) for the introduction of Harmonized System 
1996 changes into Schedules of Concessions and rela ted draft Decisions in documents G/C/W/576 
and G/C/W/575 respectively. 
  WT/GC/W/582 
 Page 13 
 
 
   The Chairman of the Council for Trade in G oods reported on the consid eration of the draft 
Decisions by that Council.   The General Council took note of the report a nd, in accordance with the Decision-Making 
Procedures under Articles IX and XII of the WTO Agreement agreed in November 1995 (WT/L/93), 
adopted the Decisions (WT/L/692 – Argentina and WT/L/693 – Panama). 
 (b) United States – Former Trust Territory of th e Pacific Islands – Request for extension of 
waiver (WT/GC/M/109) 
 At its meeting on 27 July 2007
, the General Council considered a request from the United 
States for an extension of a waiver from the pr ovisions of paragraph 1 Article I of GATT 1994 until 
31 December 2016 and a related draft Decision (G/C/W/570/Rev.1).   The Chairman of the Council for Trade in G oods reported on the consid eration of the draft 
Decision by that Council. 
 
 The General Council took note of the report a nd, in accordance with the Decision-Making 
Procedures under Articles IX and XII of the WTO Agreement agreed in November 1995 (WT/L/93), 
adopted the Decision (WT/L/694).  (c) Mongolia – Accession Commitment on Export of Raw Cashmere – Requ est for a Waiver 
(WT/GC/M/109) 
 At its meeting on 27 July 2007
, the General Council considered a request from Mongolia for a 
waiver from its obligation in paragraph 2 of its Protocol of Accession to the WTO Agreement – to 
phase out and eliminate export duties on raw cashmere within ten years of the date of its accession – 
for a period of an additional five years until 29  January 2012 (G/C/W/571), and a related draft 
Decision (G/C/W/580). 
  The Chairman of the Council for Trade in G oods reported on the consid eration of the draft 
Decision by that Council.   The General Council took note of the report a nd, in accordance with the Decision-Making 
Procedures under Articles IX and XII of the WTO Agreement agreed in November 1995 (WT/L/93), 
adopted the Decision (WT/L/695).  (d) Review of Waivers Pursuant to Article IX:4 of the WTO Agreement (WT/GC/M/109) 
 Under Article IX.4 of the WTO Agreement "[a]ny  waiver granted for a period of more than 
one year shall be reviewed by the Ministerial Conf erence not later than one year after it is granted, 
and thereafter annually until the waiver terminates."   At its meeting on 27 July 2007
, the General Council considered the following waivers for 
review under Article IX.4:  
 (i) Preferential tariff treatment for least-developed countries (WT/L/304); 
 (ii) LDCs – Article 70.9 of the TRIPS Agreement with respect to pharmaceutical 
products (WT/L/478); 
 (iii) Albania – Implementation of specific concessions (WT/L/610); 
(iv) EC – European Communities' preferen ces for Albania, Bosnia and Herzegovina, 
Croatia, Serbia and Montenegro, and th e Former Yugoslav Republic of Macedonia 
(WT/L/654, WT/L/688). WT/GC/W/582 
Page 14  
 
   
 In so doing, the General Council considered a report on the implementation of its waiver 
submitted by the European Communities (WT/L/688). 
 The Chairman recalled, with regard to the wa iver in sub-item (ii) for LDCs under the TRIPS 
Agreement, that in connection with the approval of  this draft waiver at the meeting of the TRIPS 
Council in June 2002, the Chairman of the TRIPS C ouncil had noted that it was understood, in regard 
to the review foreseen in paragraph 2 of that waiv er, that the exceptional circumstances justifying the 
waiver would continue to exist for least-devel oped country Members until its expiry date of 
1 January 2016.  
 The representative of Lesotho (on behalf of the LDCs) spoke. 
  The General Council took note of the statements and of the report in WT/L/688, and agreed to 
revert to the review of multi-year waivers under Ar ticle IX:4 of the WTO Agreement at its meeting in 
December. 
 
9. Statements by Paraguay on behalf of the Informal Group of Developing Countries 
(WT/GC/M/108, 110) 
 At the General Council meeting on 9 May 2007
, the representative of Paraguay, on behalf of 
the Informal Group of Developing Countries, made a statement regarding the process of accession of developing countries to the WTO. 
  
 The General Council took note of the statement.   At the General Council meeting on 9 October 2007
, the representative of Paraguay, on behalf 
of the Informal Group of Developing Countries, made a further statement regarding the process of 
accession of developing countries to the WTO. 
  The General Council took note of the statement.  
10. United States' proposed measures affecting th e importation of cigars – Statement by the 
Dominican Republic, Honduras and Nicaragua (WT/GC/M/110) 
At the General Council meeting on 9 October 2007
, the representative of Nicaragua, also on 
behalf of the Dominican Republic and Honduras, ex pressed concern at legislation recently approved 
by the US Congress which, if signed into law, woul d significantly raise excise tax rates applicable to 
their exports of hand-rolled cigars into the United States. 
 
The representatives of Brazil and the United States spoke. 
 The General Council took note of the statements.  
11. Seventh Session of the Ministerial Conference (WT/GC/M/110) 
 At the General Council meeting on 9 October 2007
, the Chairman – updating a report by the 
previous Council Chair in December 2006 with re gard to the next Ministerial Conference – said inter 
alia that in the light of consultations he had had r ecently with a wide range of the Membership, it was 
clear that the factors which had prevented Members from taking a decision on the timing and location of the next Ministerial Conference before conti nued to apply.  All Memb ers with whom he had 
spoken had accepted that as a practical consequence it would not be possible to hold the Conference 
before the end of  2007, which in turn meant that  it would not be possible to implement the provisions  WT/GC/W/582 
 Page 15 
 
 
  of Article IV.1 of the WTO Agreement this year.  This last point had been a matter of particular 
concern for some delegations in his consultations , and he knew that all shared a commitment to 
uphold all the legal agreements on which this rules- based organization was founded.  No one wished 
to see them weakened or undercut.  Members to wh om he had spoken had agreed that while one had 
to face the reality of the current situation, this should in no way be seen as calling into question the 
provisions of Article IV.1 of the WTO Agreement or as establishing a precedent for the future.  He 
suggested that the General Council return to this que stion as soon as the situation could be clarified.  
In the meantime he remained at Members'  disposal for any further consultations. 
  The General Council took note of the statement. 
 
12. Administrative Measures for Members in Arrears (WT/GC/M/107, 108, 109, 110) 
 At its meeting in May 2006, the Genera l Council approved a recommendation from the 
Committee on Budget, Finance and Administration w ith regard to revised Administrative Measures 
for Members in Arrears (WT/BFA/86) under which, inter alia , at each meeting of the General Council 
the Chairman of the Budget Committee would provide information with regard to which Members 
were under Administrative Measures in Categories II through IV, and the General Council Chairman 
would request Members in Categories III and IV to inform him before the next Council meeting as to 
when the payment of arrears might be expected a nd report on Members' replies at each subsequent 
meeting.  
 At the General Council meeting on 7 February 2007
, in pursuance of the revised 
Administrative Measures, the Chairman of the Budge t Committee provided information with regard to 
which Members were under Administrative Measures in Categories II through IV.  Also in pursuance 
of the revised Administrative Measures, the Counc il Chairman requested Members in Categories III 
and IV to inform him before the next meeting of th e Council as to when their payment of arrears might 
be expected.  He informed the Council that since its December meeting he had not received any replies 
from the Members concerned.    The General Council took note of the statements.   At the General Council meeting on 9 May 2007
, in pursuance of the revised Administrative 
Measures, the Chairman of the Budget Committe e provided information with regard to which 
Members were under Administrative Measures in Cate gories II through IV.  Also in pursuance of the 
revised Administrative Measures, the Council Chairm an requested Members in Categories III and IV 
to inform him before the next meeting of the Coun cil as to when their payment of arrears might be 
expected.  He informed the Council that since its February meeting he  had not received any replies from 
the Members concerned. 
  The representative of Paraguay spoke.   The General Council took note of the statements.  
 At the General Council meeting on 27 July 2007
, in pursuance of the revised Administrative 
Measures, the Chairman of the Budget Committe e provided information with regard to which 
Members were under Administrative Measures in  Categories II through IV and announced that 
Paraguay – a Category IV Member – had undertaken  discussions with the Secretariat on establishing 
an instalment plan aimed at liquidating its arrears.   Also in pursuance of the revised Administrative 
Measures, the Council Chairman requested Members in Categories III and IV to inform him before 
the next meeting of the Council as to when their paym ent of arrears might be expected.  He informed the 
Council that since its May meeting he had not rece ived any replies from the Members concerned. 
 WT/GC/W/582 
Page 16  
 
   The General Council took note of the statements. 
  At the General Council meeting on 9 October 2007
, in pursuance of the revised 
Administrative Measures, the Chairman of the Committee on Budget, Finance and Administration 
provided information with rega rd to which Members were under Administrative Measures in 
Categories II through IV.  Also in pursuance of  the revised Administrative Measures, the Council 
Chairman requested Members in Categories III and IV to inform him before the next meeting of the Council as to when their payment of  arrears might be expected.  He informed the Council that since its 
July meeting he had not received any replies from the Members concerned. 
 
 The General Council took note of the statements. 
 
13. Appointment of Officers to  WTO bodies (WT/GC/M/107) 
 At the General Council m eeting on 7 February 2007
, the Chairman said that in accordance 
with the Guidelines for Appointment of Officers to WTO bodies approved by the General Council in 
December 2002 (WT/L/510), he and his colleague, Mr Muhamad Noor (Malaysia), the serving Chair 
of the Dispute Settlement Body, had conducted consu ltations with delegations on a slate of names for 
the appointment of Chairs to the bodies listed in Groups  1, 2, 4 and 5 in the Annex to the Guidelines.  
In view of the departure of the Chair of the Ne gotiating Group on Trade Facilitation, and in keeping 
with the provisions of the structure adopted by th e Trade Negotiations Committ ee at its first meeting – 
namely that the General Council Chair should consult on the chairmanships of the individual 
negotiating bodies under the TNC, Mr Muhamad Noor and he had used this opportunity also to 
consult with delegations re garding this appointment. 
  On the basis of the consultations, he consider ed that there was a con sensus on the following 
slate of names with respect to the appointmen ts to WTO bodies other than the Negotiating Group on 
Trade Facilitation: 
 
General Council  Mr Muhamad NOOR (Malaysia) 
Dispute Settlement Body 
 Mr Bruce GOSPER (Australia) 
Trade Policy Review Body 
 Mr Vesa HIMANEN (Finland) 
Council for Trade in Goods 
 Mr Karsten Vagn NIELSEN (Denmark) 
Council for Trade in Services 
 Mr C. Trevor CLARKE (Barbados) 
Council for TRIPS 
 Mr Yonov Frederick AGAH (Nigeria) 
Committee on Trade and 
  Development  Mr Shree Baboo Chekitan SERVANSING (Mauritius) 
Committee on Balance-of- 
  Payments Restrictions  Mr Chitsaka CHIPAZIWA (Zimbabwe) 
Committee on Budget, Finance  
  and  Administration 
 Mr Tony LYNCH (New Zealand) 
Committee on Trade and  
  Environment  Mr Manuel A.J. TEEHANKEE (Philippines)  WT/GC/W/582 
 Page 17 
 
 
  Committee on Regional Trade  
  Agreements  Mr Julian METCALFE (United Kingdom) 
Working Group on Trade, Debt and  
  Finance 
 Mr Ravi BANGAR (India) 
Working Group on Trade and  
  Transfer of Technology  Mr Kwabena BAAH-DUODU (Ghana) 
 
 As regards the Negotiating Group on Trade Fac ilitation, the Chairman said that on the basis 
of consultations there was consensus on the a ppointment of Mr Eduar do Ernesto SPERISEN-YURT 
(Guatemala).  With regard to the duration of this appointment, he proposed that in keeping with the 
terms of office for appointments to other negotia ting groups agreed by the General Council in 
February 2005, Mr Sperisen-Yur t be invited to serve until the next Session of the Ministerial 
Conference. 
  The General Council took note of the statement a nd of the consensus on the slate of names for 
the appointment of officers.   The Chairman of the Council for Trade in G oods, the Chairman of the Council for Trade in 
Services and the Chairman spoke. 
  The General Council took note of the statements.  
14. Election of Chairperson (WT/GC/M/107) 
 At the General Council meeting on 7 February 2007
, the Chairman, as the outgoing presiding 
officer of the General Council, made a brief statement.   The General Council then unanimously elected Mr Muhamad Noor (Malaysia) to the Chair. 
  The representatives of the Philippines (on behalf  of the ASEAN Members), Benin (on behalf 
of the African Group), Former Yugoslav Republic of  Macedonia (on behalf of the CEFTA Members), 
Chile (on behalf of GRULAC), Jamaica (on beha lf of the ACP Group), Viet Nam, United States, 
European Communities, Colombia and Korea, a nd the Director-General and the newly-elected 
Chairman spoke.  
 The General Council took note of the statements. 
 
__________