. /.   WORLD TRADE  
ORGANIZATION  G/C/W/543 
1 March 2006 
 
 (06-0871) 
Council for Trade in Goods  
  
UNITED STATES – ANDEAN TRADE PREFERENCE ACT   
 
Renewal of Waiver 
 
 
Draft Decision of ....20061 
  
 The General Council, 
  Conducting  the function of the Ministerial Conference in the interval between meetings 
pursuant to paragraph 2 of Article IV of the WTO Agreement;    
Having  regard to  paragraphs 1, 3 and 4 of Article  IX of the Marrakesh Agreement 
Establishing the World Trade Organization (the "W TO Agreement"), the Guiding Principles to be 
followed in considering applications for waiver s adopted on 1 November 1956 (BISD 5S/25), and the 
Understanding in Respect to Waivers of Obliga tions under the General Agreement on Tariffs and 
Trade 1994 (the "Understanding");   
 
Taking note  of the request of the United States, pursuant to paragraph 3 of Article IX of the 
Marrakesh Agreement Establishing the World Trade Organization (“WTO Agreement”), for a waiver 
of U.S. obligations under paragra ph 1 of Article I and pa ragraphs 1 and 2 of Article XIII of the 
General Agreement on Tariffs and Trade 1994 ( GATT 1994) through 31 December 2006, to the 
extent necessary to permit the United States to  provide duty-free treatment to eligible products 
originating in beneficiary Andean countries (“be neficiary countries”) designated pursuant to the 
provisions of the Andean Trade Preference Act, as amended;  
Bearing in mind  that the CONTRACTING PARTIES of  the GATT 1947 previously granted 
the United States a waiver
2 of its obligations under Article I:1 of  the GATT 1947 on 19 March 1992, 
for the period from 4 December 1991 until 4 December 2001, which was renewed3 in respect of 
GATT 1994 by the Members on 14 October 1996, to the extent necessary to pe rmit the United States 
to provide duty-free treatment to eligible products  originating in beneficiary countries designated 
pursuant to the provisions of the Andean Trade Preference Act (ATPA); 
 
Considering  that the Andean Trade Promotion and Drug Eradication Act (ATPDEA)  renews 
and expands the preferences the United States extended under the ATPA; 
 
Considering  further the exceptional situation of the beneficiary countries, and that the stated 
objective of the ATPA as amended is to assist th e trade and economic development of beneficiary 
countries situated in the Andean region by encouraging the expansion of legitimate products as an 
alternative to the production and trafficking of illicit  narcotics in response to more liberal access and 
to new trading opportunities for Andean countries; 
                                                      
1 Adopted in accordance with th e Decision-Making Procedures under Article IX of the WTO 
Agreement agreed by the General Council in November 1995 (WT/L/93). 
2 BISD (39S/385). 
3 Document WT/L/184. G/C/W/543 
Page 2  
 
   
Considering  further that the preferential treatment provided under the ATPA as amended is 
designed to promote the expansion of trade and ec onomic development of beneficiary countries in a 
manner consistent with the objectives expressed in para graphs 1, 2, and 3 of the Preamble to the WTO 
Agreement;  
 
Considering  further that the preferential treatment  provided under the ATPA as amended will 
not alter benefits provided under the US Generali zed System of Preferences to other developing 
countries;  
Noting  the assurances given by the United States that it will promptly enter into consultations, 
on request, with any interested Member with respect  to any difficulty or matter that may arise as a 
result of the preferential treatment provided under the ATPA as amended; 
 
Decides,  in view of these exceptional circumstances, as follows: 
 
 1. Subject to the terms and conditions set out hereunder, paragraph 1 of Article I and 
paragraphs 1 and 2 of Article XIII shall be waiv ed through 31 December 2006, to the extent necessary 
to permit the United States to provide duty-free tr eatment to eligible products originating in 
beneficiary countries designated pursuant to the provisions of the ATPA as amended.  
 
 2. The United States shall submit to the General Council an annual report on the 
implementation of the preferential treatme nt provided under the ATPA as amended. 
  3. The United States shall promptly notify the General Council of any change in the designation of beneficiary countries, as well as any change that would affect the eligibility of  
products for the preferential treatment  provided under the ATPA as amended. 
  4. The United States shall promptly enter into consultations, on request, with any interested 
Member with respect to any difficulty or matter that  may arise as a result of the preferential treatment 
provided under the ATPA as amended.  If a Member  considers that any be nefit 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 resolution of the matter.   
  5. 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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