WORLD TRADE  
ORGANIZATION   
G/L/978 
16 November 2011 
 (11-5914) 
  
  
 
REPORT (2011) OF THE COUN CIL FOR TRADE IN GOODS 
 
 
 In accordance with the "Procedures for an Annual Overview of WTO Activities and for 
Reporting under the WTO" (WT/L/105), the Council for Trade in Goods is to report each year to the 
General Council on the activities in the Council as well as in the subsidiary bodies.  The reports are to 
be "factual in nature, containing an  indication of actions and decisions  taken, with cross references to 
reports of subordinate bodies and could follow the model of the GATT 1947 Council reports to the 
CONTRACTING PARTIES".  
 Since the CTG 2010 annual report (G/L/947/Rev. 1) was issued, the Council for Trade in 
Goods has met four times in formal session on th e following dates:  31 January 2011 (G/C/M/105);  
21 March 2011 (G/C/M/106);  26 May 2011 (G/C/M/107 and G/C/M/107/Corr.1
1);  and 
7 November 2011 (G/C/M/1082).   
  The subject matters which were raised a nd/or acted upon in the Council are as follows: 
 
1. Election of Chairperson  2. Appointment of officers  
3. Matters of the Committee on Market Access  
 4. Waivers under Article IX of the WTO Agreement  5. European Union enlargement  
6. Notification of regional trade agreements 
 7. Notifications:   
7.1 Status of notifications under the provisi ons of the Agreements in Annex 1A of the 
WTO Agreement 
 8. Ecuador Mixed Tariffs - Questions from th e United States, the European Union, Canada, 
Japan and Panama   
 
9. Import Licensing Measures and Procedures by Argentina - Statements by the United States, 
the European Union, Japan, Canada, Mexico and Peru  
 10. Ukraine's Implementation of Customs Valua tion Legislation - Statement by the European 
Union and Norway  
                                                      
1 In English only. 
2 To be issued. G/L/978 
Page 2  
 
   
11. Ukraine's Export Restrictions for Cereals - Statement by European Union   12. Work Programme on Electronic Commerce    
13. Brazil's Automotive Tax Measures - Statement by Korea 
 14. European Union - Ruling of the European Court of Justice of 6 September 2011, Relating to 
the Detection in Honey of Pollen Contai ning DNA from MON8190 Genetically Modified 
Maize - Statement by Argentina 
 
15. Ecuador Internal Taxation to Alc oholic Beverages - Statement by Chile 
 16. Working Procedures Governing the Notificati on of Regional Trade Agreements Under Article 
XXIV of GATT/94 
 
17. Final Transitional Review unde r Paragraph 18 of the Protocol of Accession of the People's 
Republic of China 
 18. Consideration of Annual Reports of Subsidiary Bodies   
19. Adoption of the Annual Report of the Counc il for Trade in Goods to the General Council 
 
1. Election of Chairperson for the Council for Trade in Goods   
 At its meeting of 21 March the Council elected Ambassador Jüri SEILENTHAL (Estonia) as 
its Chairman for 2011.  
 
2. Appointment of Officers for the subsidiary bodies of the Council  
 At its meeting of 21 March, the Council agr eed on the nominations of the following persons 
for election as Chairpersons of its subsidiary bodies for 2011: 
 
Committee on Market Access Mr Atilla BASTIRMACI (Turkey) 
Agriculture Mr Jonas SKEI (Norway) 
Sanitary and Phytosanitary Measures Mr Deny KURNIA (Indonesia) 
Technical Barriers to Trade Ms  Denise PEREIRA (Singapore) 
TRIMs Mr Patrick VAN GHEEL (Belgium) Anti-Dumping Practices Mr Su bhas GUJADHUR (Mauritius) 
Subsidies and Countervailing Measures  Mr Andreas KRALLMANN (Germany) 
Safeguards  Ms Lillian BWALYA (Zambia) Import Licensing Mr Flavio SOARES DAMICO (Brazil) 
Rules of Origin Mr Daniel OWOKO (Kenya) 
Customs Valuation Mr Masafumi KOBAYASHI (Japan) State Trading Enterprises Mr Christian FRESARD (Chile) 
Committee of Participants on the Expansion of 
Trade in Information Technology Products  Mr Syed Mohd Faizal Bin Syed Mohd DARDIN
3 
(Malaysia) 
 
                                                      
3 At its meeting on 7 November, the Chairperson informed the Council that, following the departure of 
Mr Syed Dardin (Malaysia), the consu ltations he carried out with embers of the Committee of Participants on the 
Expansion of Trade in Information Technology Products (ITA Committee) indicated that there was agreement that 
Mr Zahary MD ALI (Malaysia) be appointed as the new Chairperson of the ITA Committee.  G/L/978 
 Page 3 
 
 
   At the same meeting, the Council agreed to proceed on the understanding that as concerns the 
Vice-Chairpersons, it would be for the subsidiary bodies  to decide if they needed a Vice-Chairperson in 
cases where the option existed under the respective Ag reement and/or rules of procedure, and for the 
respective Chairperson to hold  the necessary consultations. 
 3. Matters of the Committee on Market Access  
 At its meetings on 26 May and 7 November the Council took note of the periodic reports (in 
documents G/MA/245;  G/MA/257 a nd G/MA/257/Corr.1) of the Committee on Market Access.  
  At its meeting on 7 November the Council consid ered the draft decisions on the "Amendment to 
the Procedures Leading to the Certification of HS 2007 Changes" (documen t G/MA/W/108) and on the 
"Procedure for the Introduction of Harmonized System  2012 Changes to the Schedules of Concessions 
using the Consolidated Tariff Schedule Database" (document G/MA/W/109) sent by the Committee on 
Market Access to the General Council through the Good s Council.  The Council agreed to forward these 
draft decisions to the General Council for adoption.  
 
4. Waivers under Article IX of the WTO Agreement  
(a) Introduction of Harmonized System 1996 chang es into WTO Schedules of Tariff Concessions  
 -  Request for Extension of Waiver Argentina – (G/L/956 and G/C/W/ 648) 
  At its meeting on 26 May, the Council consider ed a request from Argentina for an extension 
 of the waiver in connection with the introduc tion of HS96 changes to Argentina's Schedule of 
 Concessions.  The Council approved the waiver request and recommended that the draft  decision contained in document G/C/W/648 be forwarded to the General Council for 
 adoption. Argentina indicated that if the Certif ication of Modification of its Schedule were to 
 be ready in June 2011 as expected, it would not be necessary to forward the extension request 
 to the General Council.
4 
(b) Introduction of Harmonized System 2002 cha nges into WTO Schedules of Tariff Concessions 
- Requests for a waiver extension (G/C/W/653/Rev.1) 
  At its meeting on 7 November, the Council consid ered a collective request for an extension of 
the waiver in connection with the introduc tion of HS2002 changes to the Schedules of 
Concessions.  The Council approved the waiver request and recommended that the draft 
decision contained in document G/C/W/653/Rev. 1 be forwarded to the General Council for 
adoption. 
 
(c) Introduction of Harmonized System 2007 cha nges into WTO Schedules of Tariff Concessions 
  - Requests for a waiver extension (G/C/W/654) 
  At its meeting on 7 November, the Council consid ered a collective request for an extension of 
the waiver in connection with the introduction of HS 2007 changes to the Schedules of 
Concessions.  At this meeting the Dominican Rep ublic requested to be added to the list of 
Members benefiting from the waiver. The Council approved the waiver request and 
recommended that a revised draft decision (G/C/W/654/Rev.1), including the Dominican 
Republic, be forwarded to the General Council for adoption.   
 
                                                      
4 Argentina's certification was circul ated in document WT/Let/763 cont aining the certified true copy of 
the Certification of Modifications and Rectifications to Schedule LXIV - Argentina , effective 28 May 2011 .   G/L/978 
Page 4  
 
  (d) Introduction of Harmonized System 2012 cha nges into WTO Schedules of Tariff Concessions 
-  Request for a waiver (G/C/W/655/Rev.1) 
  At its meeting on 7 November, the Council considered a collective request for a waiver in 
connection with the introduction of HS 2012 changes to the Schedules of Concessions.  At 
this meeting Honduras, the Dominican Republic, Me xico and Pakistan requested to be added 
to the list of Members benefiting from the wa iver. The Council approved the waiver request 
and recommended that a revised  draft d ecision (document G/C/W/655/Rev.2), including 
Honduras, the Dominican Republic, Mexico and Pakistan be forwarded to the General 
Council for adoption.  
 
(e) European Union - Request for a Waiver  on Additional Autonomous Trade Preferences 
Granted by the European Union to Pakistan (G/C/W/640 and G/C/W/640 Rev.1)   
 
At its meetings on 31 January, 21 March and 26 May, the European Union informed the 
Council that a consultation process with some Members was underway.  On 21 March the Council took note of the statements made by th e EU, India, Bangladesh, Peru and Pakistan 
and, on 26 May, it took note of the statements made by the EU, Pakistan, Vietnam and Morocco. At that meeting the Chair also indicated  that since this Council had not completed its 
consideration of the waiver requ est within the 90 days stipulated in Article IX.3(b) of the 
Marrakesh Agreement, at the meeting of the General Council (GC) which took place on 3 May 
2011, he provided a factual report indicating that the Goods Council would need further time to 
consider the request and that it would report back  to the GC once it had completed its work. He 
indicated that the General Council had so agreed. 
At its meeting on 7 November the Counc il considered document G/C/W/640/Rev.1, 
submitted by the EU and containing a revised request and draft decision.   The Council took 
note of statements made by the EU, Morocco, Ba ngladesh, Brazil, Vietnam, Argentina, Peru, 
Indonesia, the United States, Norway and Pakistan; and agreed to revert to this matter at its next meeting. 
(f) Cape Verde – Request for a Waiver related to  the Implementation of Article VII of GAT 1994 
and the Agreement on Implementation of Ar ticle VII of the GATT 1994 (G/C/W/643; 
G/C/W/646) 
 
 At its meeting on 31 January the Council took note of the request made by Cape Verde in 
document G/C/W/643 to extend the implementati on period of Article VII of GATT/94 and 
the Customs Valuation Agreement (CVA).  It also  took note of the statements made by Cape 
Verde, Switzerland, Angola, Mozambique, the US, Nigeria, the EU, Brazil, Senegal and 
China. 
 
At its meeting on 21 March, the Council considered document G/C/W/646 containing the 
draft waiver decision submitted by Cape Verd e.  The Council approved the waiver request 
and recommended that a revised draft deci sion (G/C/W/646/Rev.1), including an interim 
review by the Committee on Customs Valuation,  be forwarded to the General Council for 
adoption.  
 (g) Canada – Request for an Extension of the Waiver for the Caribbean  Initiative (CARIBCAN) 
(G/C/W/657) 
 
 At its meeting on 7 November the Council considered document G/C/W/657 containing a 
request submitted by Canada to extend until 31 December 2013 the duty-free treatment to 
eligible imports of Commonwealth Caribbean  countries benefiting from the provision of  G/L/978 
 Page 5 
 
 
  CARIBCAN.  The Council took note of the stat ements  made by Canada, Barbados, Jamaica 
and Trinidad Tobago, approved the waiver requ est and recommended that the draft decision 
annexed to G/C/W/657 be forwarded to  the General Council for adoption. 
 (h) European Union – Request for an Extens ion of the Waiver for the Application of 
Autonomous Preferential Treatment to the Western Balkans (G/C/W/658; G/C/W/658/Add.1) 
 
At its meeting on 7 November, the Council considered documents G/C/W/658 and Add.1 
containing, respectively, a request and a draft wavier decision by th e European Union to 
provide, until 31 December 2016, preferential treat ment to the Western Balkans. The Council 
approved the waiver request and recommended th at the draft decision be forwarded to the 
General Council for adoption.  
(i) Notifications of Actions taken under the 1999 Waiver for Preferential Tariff Treatment for 
Least-Developed Countries (G/C/W/651; G/C/W/656) 
 
 At its meeting on 7 November the Council took note of the notifications made by India and 
 China in documents G/C/W/651 and G/C/W/656 respectively, concerning their unilateral non-
 reciprocal Duty-Free Quota-Free (DFQF) Sc heme for Least Developed Countries (LDCs). 
 The Council took note of the statements made by India, China and the United States and, 
 agreed that these notifications be referred to the Sub-Committee on Least-developed countries 
 which would report back to the Goods Council.  
 (j)  Mongolia - Implementation of the Waiv er on Accession Commitment on Export of Raw 
Material (G/C/W/652)  
On 7 November the Council considered, under the Agenda item "Other Business", document 
G/C/W/652 containing information from Mongolia on the impact that the maintenance of an 
export tax on raw cashmere had on the overa ll performance of the sector.  Mongolia also 
informed the Council that in view of the ove rall liberalization measures by the Government, 
the export tax on raw cashmere was eliminat ed in June 2009. The Council took note of 
document G/C/W/652 and of the statement made by Mongolia. 
 
5. European Union enlargement:  Procedu res under Article XXVIII:3 of GATT 1994 
(G/L/695/Add.13;  G/L/695/Add.14;  G/L/821/Add.8;  G/L/821/Add.9) 
 At its meetings on 26 May and 7 November, the Council agreed on the extension of the 
deadlines set out in the comm unications from the EU (G/L/695/Add.13; G/L/821/Add.8. and 
G/L/695/Add.14; G/L/821/Add.9, respectively).   
 
6. Notification of Regional Trade Agreements  
 At its meetings on 21 March and 7 November,  the Council was informed of the following 
notifications on regional trade agreements:  
 
A. F REE TRADE AGREEMENT ON GOODS BETWEEN  EFTA AND SERBIA 
(WT/REG290/N/1) 
 
B. F REE TRADE AGREEMENT ON GOODS AND SERVICES BETWEEN  HONG KONG CHINA 
AND NEW ZEALAND (WT/REG291/N/1  AND S/C/N/578) 
 
C. F REE TRADE AGREEMENT ON GOODS BETWEEN EFTA  AND ALBANIA 
(WT/REG292/N/1) G/L/978 
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D. F
REE TRADE AGREEMENT ON GOODS BETWEEN  TURKEY AND CHILE 
(WT/REG293/N/1) 
 
E. F REE TRADE AGREEMENT ON GOODS BETWEEN  TURKEY AND JORDAN 
(WT/REG294/N/1) 
 
F. F REE TRADE AGREEMENT BETWEEN  PERU AND EFTA (WT/REG295/N/1)   
 
G. F REE TRADE AGREEMENT BETWEEN  THE EUROPEAN UNION AND KOREA   
(WT/REG296/N/1) 
 
H. F REE TRADE AGREEMENT BETWEEN GUATEMALA AND THE SEPARATE CUSTOMS 
TERRITORY OF TAIWAN , PENGHU , KINMEN AND MATSU (WT/REG297/N/1) 
 
I. F REE TRADE AGREEMENT BETWEEN PERU AND KOREA (WT/REG298/N/1) 
 
J. F REE TRADE AGREEMENT BETWEEN COLOMBIA AND EFTA  (WT/REG299/N/1) 
 
K. F REE TRADE TREATY BETWEEN INDIA AND JAPAN  (WT/REG300/N/1) 
  
L.  F REE TRADE TREATY BETWEEN CANADA AND COLOMBIA (WT/REG301/N/1) 
 
M. F REE TRADE TREATY BETWEEN EUROPEAN UNION AND PAPUA NEW GUINEA / FIJI  
(WT/REG302/N/1) 
 7. Notifications 
7.1 Status of notifications under the provisi ons of the Agreements in Annex 1A of the 
WTO Agreement  
  At its meeting on 21 March, the Council took note of the latest revision of the status 
of notifications contained in document G/L/223/Rev.18.  
 
8. Ecuador Mixed Tariffs - Questions from the United States, the European Union, 
Canada, Japan and Panama  
  At its meeting on 31 January, the Counc il considered the questions in document 
G/C/W/639 posed to Ecuador by the United States, the European Union , Canada, Japan and Panama 
on the changes it had introduced to its tariff schedul e of concessions which had changed the tariff 
structure from an ad valorem  tariff system to a mixed tariff system and which covered products 
related to  clothing, linen, textiles and footwear. The Council took note of the statement made by the 
US, EU, Canada, Japan, Panama, Ecuador and the Bolivarian Republic of Venezuela.  
  At its meeting on 21 March, the Council considered the written responses provided by 
Ecuador in document G/LIC/W/645 as well as additi onal questions posed by the US, EU, Japan and 
Canada; it took note of the statements made by th ese delegations and by Ecuador and the Bolivarian 
Republic of Venezuela.    On 26 May, the Council took note of the statemen ts made and the add itional questions posed 
by the US, EU, Japan and Panama in  order to clarify their concerns on the mixed tariff system. The 
Council also took note of the statements of Cuba, the Bolivarian Republic of Venezuela and Ecuador. 
   G/L/978 
 Page 7 
 
 
   At its meeting on 7 November the US, the EU, Canada, Japan and Switzerland reiterated their 
questions and concerns on the ad-valorem  equivalent and the methodol ogy used by Ecuador. The 
Council took note of these statements and the statement by Ecuador.  
9. Import Licensing Measures and Procedures by Argentina - Statements by the United 
 States, the European Union, Japan, Canada, Mexico and Peru 
 At its meeting on 21 March, the Council took note of the statements made by the United 
States, the European Union, Canada, Turkey, Pe ru, Switzerland, Japan, Mexico and Argentina  on the 
non-automatic import licensing measures and procedur es adopted by Argentina, covering almost 600 
products and which appeared to use import licen sing as a trade balancing measure to discourage 
imports.  Concerns also referred to the lengthy delays and the unknown requirements for obtaining an 
import licence.     At the meeting on 26 May, the EU, the US, Peru, Mexico, Canada, Japan, Turkey and 
Switzerland reiterated their concerns; Colombia, Pe ru and Mexico echoed these concerns. Argentina 
reiterated that its system was in line with the WTO Agreement on Import Licensing Procedures.  The 
Council took note of the statements made.   On 7 November this issue was brought once ag ain to the Council's attention under the title 
"Argentina's Import Restricting Policies and Prac tices". The EU, the US, Switzerland, Japan and 
Turkey reiterated the concerns expressed at prev ious meetings on the non-automatic import licensing 
system, echoed by Peru, Canada and Colombia. The Council took note of these statements and the 
statement made by Argentina.       
10. Ukraine's Implementation of Customs Valuation Legislation - European Union and 
Norway  
 At its meetings on 31 January, 21 March and 26 May, the Council took note of the joint 
statement made by the European Union and Norw ay regarding the application of the Ukrainian 
customs valuation legislation which posed practical  and systemic problems due to the non-acceptance 
of the declared value and the use of minimum pric es. The Council also took note of the statements 
made by US, Canada and Switzerland who echoe d these concerns and of the statement made by 
Ukraine.    
 
At is meeting on 7 November, the Council took note of the joint statement by the EU and 
Norway on the improvements by Ukraine in ma naging customs practices and customs control 
procedures.  The Council also took note of the stat ements made by the US, Canada and Switzerland 
encouraging Ukraine to bring its customs valuati on practices in compliance with the WTO; and the 
statement made by Ukraine.  
 
11. Ukraine's Export Restrictions for Cereals - European Union  
At its meeting on 26 May, the Council took note of the statements made by the EU, Israel, 
Australia, the United States, Switzerland, Japan and Uk raine on the exports restrictions that the latter 
had been applying to corn and other cereals in th e form of export quotas, a system that would be 
replaced by export duties on exports of wheat, corn and barley.   
12. Work Programme on Electronic Commerce 
At its meeting on 7 November, the Council took  note of the statements made by Cuba, 
Ecuador, Venezuela and Nicaragua on the joint dr aft proposal contained in document G/C/W/650 and 
G/C/W/650/Rev.1 and on the on-going work in the Dedicated Discussion on the Work Programme on G/L/978 
Page 8  
 
  Electronic Commerce (e-commerce) to wards drafting a decision for MC8.  It also took note of the 
statements made by the US, Australia, the EU, Ar gentina, India, El Salvador and the Dominican 
Republic on their support to the reinvigoration of the Work Programme, including  in other WTO bodies and the discussions in the Dedicated Discus sion in seek of a balanced and comprehensive 
proposal for MC8.  
 
13. Brazil's Automotive Tax Measures - Statement by Korea 
On 7 November, the Council took note of the statements made by Korea, Japan, the EU, 
Australia, Hong-Kong China, the US, Canada, Co lombia, Chinese Taipei and of the responses by 
Brazil on the announcement by the Brazilian aut horities to increase industrial tax rates for 
automobiles by 30 per cent and which appeared to sl ow down imports or instead, promote investment 
in Brazil. Concerns also referred to compliance with the National Treatment and MFN principles and 
the Agreements on Subsidies and Trade and Investment Measures. 
14. European Union - Ruling of the European Court of Justice of 6 September 2011 
Relating to the Detection in Honey of Po llen containing DNA from MON810 Genetically 
Modified Maize - Statement by Argentina 
At its meeting on 7 November, the Council took note of  the statements made by Argentina, Uruguay, 
Canada, Mexico, the US and of the responses by the EU on the ruling of the European Court of 
Justice on the detection in honey of pollen containing  genetically modified maize which indicated that 
pollen was now an ingredient of honey and not a na tural component; this raised systemic and trade 
concerns and could adversely affect the trade of honey.  
15. Ecuador Internal Taxation to Alcoholic Beverages - Statement by Chile 
At its meeting on 31 January, under the Agenda  item "Other Business", the Council took note 
of the statements made by Chile and Ecuador on th e taxable basis being applied by Ecuador to some 
imported alcoholic beverag es, including wine.    
16. Working Procedures Governing the Notificati on of Regional Trade Agreements Under 
Article XXIV of GATT/94 
At its meeting on 31 January, the Chairperson indicated, under Agenda item "Other 
Business", that the working procedures concerning the notification of regional trade agreements under 
Article XXIV of GATT 1994 were contained in documents WT/L/671, WT/REG16, and G/C/M/88.  Document WT/L/671, the Transparency Mechanis m for Regional Trade Agreements contained the 
decision adopted by the General Council on 14 December 2006;  document WT/REG/16 contained 
the notification format for regional trade agreem ents agreed by the Committee on Regional Trade 
Agreements (CRTA) at its 44
th Session on 13 October 2006;  and, document G/C/M/88 contained the 
minutes of the  Goods Council meeting where the ab ove mentioned notification format under Article 
XXIV of GATT 1994 had been adopted.  The Council took note of the statement made. 
17. Final Transitional Review under Paragraph 18 of the Protocol of Accession of the 
People's Republic of China 
 At its meeting on 7 November, the Council took note of the reports of the CTG subsidiary 
bodies which had carried out their reviews, and carri ed out the CTG-specific review with respect to 
the information requirements stipulated in Annex 1A of the Protocol of Accession.  The Council  G/L/978 
 Page 9 
 
 
  agreed to send its report G/L/977 together w ith the reports of the subsidiary bodies5, to the General 
Council.  
18. Consideration of annual reports of subsidiary bodies of the CTG  
 At its meeting on 7 November, the Council took note of the annual reports of its subsidiary 
bodies.6 
 
19. Adoption of the Annual Report of the Co uncil for Trade in Goods to the General 
Council 
At its meeting on 7 November, the Council adop ted its Annual Report (2011) to the General 
Council. 
__________  
 
 
                                                      
5 See documents G/MA/258; G/AG/27; G/VAL/66 ; G/LIC/23; G/RO/72; G/ADP/21; G/SG/96; 
G/L/963; G/SPS/57 and, G/SCM/140. The report fro m the Committee on Technical Barriers to Trade 
would be submitted directly to the General Council. 
6 See documents G/L/62; G/L/964; G/L/965; G/L/966; G/L/967; G/L/968 and G/L/968/Corr.1; 
G/L/969; G/L/970; G/L/971; G/L/ 972; G/L/973/Rev.1; G/L/974; G/L/975; G/L/976.