./.   WORLD TRADE  
ORGANIZATION  G/C/W/558 
22 September 2006 
 
 (06-4539) 
Council for Trade in Goods  
  
 
CARIBCAN
 
 
Draft Decision of....2006  1 
 
 
 The General Council, 
  Having regard to paragraphs 3 and 4 of Article IX of the Marrakesh Agreement Establishing 
the World Trade Organization ("WTO Agreement");   
 Conducting the function of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement;   Taking note  of the request of the Government of Ca nada for a renewal of the waiver from its 
obligations under paragraph 1 of Ar ticle I of the General Agreement
2 for provision of duty-free 
treatment for imports of eligible products origin ating in beneficiary Caribbean countries as provided 
for in Section 41 of the Customs Tariff , S.C., 1997 c. 36, in accordance with the CARIBCAN 
initiative (hereinafter referred to  as "CARIBCAN"); such waiver having been initially granted by the 
CONTRACTING PARTIES of the GATT 1947 on 28 November 1986 for the period from 
15 June 1986 until 31 December 1996, and renewed by the Genera l Council on 14 October 1996 for a 
period from 1 January 1997 until 31 December 2006; 
 
 Bearing in mind  the 1979 Decision on Differential and More Favourable Treatment, 
Reciprocity and Fuller Participation of Developing Countries;   Considering  that the objective of granting prefer ential tariff treatment under CARIBCAN is 
to enhance the Commonwealth Caribbean's existi ng trade and export earnings and thereby promote 
economic development as well as to promote new investment opportunities and encourage enhanced 
economic integration and co- operation within the region; 
  Considering also that the duty-free treatment pr ovided under CARIBCAN is designed to 
promote the expansion of trade and economic devel opment of beneficiaries in a manner consistent 
with the objectives of the GATT 1994 and with the tr ade, financial and development needs of the 
beneficiaries and not to raise barriers or to create difficulties for the trade of other Members;   Considering,  moreover, that the duty-free treatment provided under CARIBCAN should not 
prejudice the interests of other Members not benef iting from such treatment and that it is expected 
that the extension of such duty-free treatment w ill not cause a significant diversion of Canada's 
imports of products eligible for duty-free treat ment under CARIBCAN originating in Members who 
are not beneficiaries;  
                                                     
 
1Adopted in accordance with the D ecision-Making Procedures under Articles IX and XII of the WTO 
Agreement agreed by the General Council (WT/L/93).  
2 G/C/W/555 . G/C/W/558 
Page 2  
 
   Having regard  to the assurances that the Governme nt of Canada does not envisage the 
introduction of any discriminatory non-tariff meas ure, in pursuance of CARIBCAN, which would 
adversely affect the trade of Members who are not beneficiary countries;               Considering  that the duty-free treatment provided under CARIBCAN by the Government of 
Canada shall not constitute an im pediment to the reduction or e limination of tariffs and other 
restrictions to trade on a most-favoured-nation basis;   Considering , furthermore, that the duty-free tr eatment provided under CARIBCAN by the 
Government of Canada shall not adversely affect the maintenance, operation and improvement of the 
General Preferential Tariff (GPT) of Canada; 
  Noting , furthermore, the assurances given by the Government of Canada that it will, upon 
request, promptly enter into consultations with  any Members on matters falling under the provisions 
of the GATT 1994 and related to the applications of this Decision; 
 
 Having regard  to the Guiding Principles to be followed in considering applications for 
waivers adopted on 1 November 1956, the Understa nding in Respect of Waivers of Obligations under 
the General Agreement on Tariffs and Trade 1994, and paragraphs 3 and 4 of Article IX of the 
Marrakesh Agreement Establishing the World Trade Organization (hereinafter "WTO Agreement"); 
 
 Decides , in view of the exceptional circumstances set out above, that : 
 1. Subject to the terms and c onditions set out hereunder, the provisions of paragraph 1 of 
Article I of the GATT 1994 shall be waived until 31  December 2011, to the extent necessary to permit 
the Government of Canada to provide duty-free treatment to eligible imports of Commonwealth 
Caribbean countries benefiting from the provision of  CARIBCAN, without being required to extend 
the same duty-free treatment to like products of any other Member.  2. Such duty-free treatment shall be designed not to raise barriers or create undue difficulties for the trade of other Members and provides no basis for establishing rights of access to the Canadian market on the basis of discriminatory non-tariff measures. 
 
3. The Government of Canada will submit to  the General Council an annual report on the 
implementation of the trade-rela ted provisions of CARIBCAN with a view to facilitating the annual 
review provided for in paragraph 4 of Article IX  of the WTO Agreement.  The Government of 
Canada shall promptly notify Members of any chang es in the legislation covered by this waiver and 
any trade-related measure taken under CARIBCAN, in particular any modifications in the status of 
eligible imports and the duty-free treatment thereof,  and shall furnish them with all the information 
they may deem appropriate relating to such action.  4. The Government of Canada will, upon request, promptly ente r into consultations with any 
interested Member with respect to any difficulty or  matter that may arise as a result of implementation 
of the trade related provisions of CARIBCAN; 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 fo r a satisfactory adjustment of the matter.  This 
Decision does not affect Members' rights as set forth in the Understanding in Respect of Waivers of Obligations under the GATT 1994.  
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