WORLD TRADE  
ORGANIZATION  WT/GC/87 
18 February 2005 
 (05-0701) 
General Council 
28 February 2005 Original:   
 
 
 
PROPOSED MODIFICATION TO SCHEDULE CXL – EUROPEAN COMMUNITIES:  
PROLONGATION OF RIGHTS UNDER ARTICLE XXVIII OF THE GATT 1994 
 
Request by the United States for a Prolongation of Rights  
under Article XXVIII of the GATT 1994  
 
Communication from the United States 
 
 
 The following communication, dated 17 February 2005, has been received by the 
Chairperson from the delegation of the United States.  
_______________ 
 
 
 My authorities have instructed me to request that a meeting of the General Council be 
convened on 28 February 2005 to consider the following agenda item:   Proposed Modification to Schedule CXL – European Communities:  Prolongation of 
Rights under Article XXVIII of the GATT 1994 
 
_______________ 
 
  Members will recall the notification by the European Communities (EC), circulated in document G/SECRET/18 on 31 July 2003, of its intention to modify certain concessions 
concerning tariff items 1006 20 (husked rice) and 1006 30 (semi-milled and milled rice) in 
Schedule CXL of the EC.  In connection with that notification, the United States notified Members on January 28, 2005, that:    "Unless an agreement can be reached regarding compensation, the United States will 
find it necessary to exercise its rights under Article XXVIII:3 to withdraw substantially 
equivalent tariff concessions on products of interest to the European Union.  Accordingly, the United States hereby notifies Members that it withdraws the concessions in Schedule XX on the tariff items listed in the attachment to this notice.  Unless the United States provides further notice to the Members, the withdrawal of 
these concessions shall take effect at midnight on 1 March 2005." 
  The United States has been negotiating with the European Communities and it is hoped that an agreement will be reached before March 1, 2005, on a solution to this issue.  However, to avoid having the U.S. withdrawal of concessions automatically take effect on March 1, 2005, it would be necessary to extend the deadline for exercising U.S. rights under Article XXVIII.  
Accordingly, the United States proposes that any withdrawal of concessions pursuant to Article 
XXVIII:3 by the United States after March 1, 2005, in connection with the EC modification of WT/GC/87 
Page 2  
 
 its rice concessions shall nevertheless be deemed to have been taken within the six-month period 
for such withdrawals referred to in Article XXVIII:3.   The United States believes that adoption of this proposal would promote the aim of negotiations and agreement under Article XXVIII of the GATT 1994, which is to "endeavour to 
maintain a general level of reciprocal and mutually advantageous concessions not less favorable 
to trade than that provided for in the [GATT 1994] prior to such negotiations."  The United States believes that such an agreement maintaining trade is to be preferred to the withdrawal of concessions.  
 The United States asks that the General Council approve this proposal.  A draft decision 
that the General Council might take in this regard is attached to this proposal.  WT/GC/87 
 Page 3 
 
 
 Proposed Decision of the General Council 
 
  The General Council, recalling  the notification by the European Communities, 
circulated in document G/SECRET/18 on 31 July 2003, of its intention to modify certain 
concessions concerning tariff items 1006 20 (h usked rice) and 1006 30 (semi-milled and milled 
rice) in Schedule CXL of the European Communities, agrees  that any withdrawal of concessions 
by the United States in connection with such notification shall be deemed to have been taken within the six-month period for such withdrawals referred to in Article XXVIII:3.   
__________