KOMVIISSION DER EUROPÄISCHEN GEMEINSCHAFTEN 
K0M(94) 143 endg. 
Brüssel, den 15.04.1994 
94/0114 (AVC) 
Vorschlag für einen 
8ESCHIUSS PES RATES 
Ober die Annahme der Ergebnisse 
der multilateralen Handelsverhandlungen im 
Rahmen der Uruguay-Runde (1986-199.tl) 
(von der Kommission vorgelegt) 
BEGRÜNDUNG 
Auf seiner 1726. Tagung vom 13. bis 15. Dezember 1993 stimmte der Rat dem 
vom Ausschuß fUr die Handelsverhandlungen in Genf vereinbarten Gesamtpaket 
mit den Ergebnissen der Uruguay-Runde bereits grundsätzlich zu (PV/CONS89). 
Der Beschluß des Rates erging auf der Grundlage einer Reihe schriftlicher 
Berichte, die Sir Leon Brittan im Namen der Kommission vorlegte und die eine 
allgemeine, positive Bewertung der Ergebnisse aus der Sicht der Gemeinschaft 
enthielten, sowie aufgrund mündlicher Diskussionsbeiträge. 
Nach der Unterzeichnung der endgültigen Fassungen der Obereinkommen, 
Abkommen und Obereinkünfte, die Teil der Schlußakte sind, in Marrakesch muß 
der Rat die Ergebnisse der Uruguay-Runde Jetzt förmlich annehmen. 
Vorbehaltlich der Zustimmung des Europäischen Parlaments könnte die 
Gemeinschaft damit in Genf erklären, daß sie bereit ist, diese 
Übereinkommen, Abkommen und Übereinkünfte anzunehmen. 
Die Verhandlungen waren bereits im Dezember letzten Jahres im wesentlichen 
abgeschlossen, und der damalige Bericht der Kommission befaßte sich mit dem 
größten Teil der Verhandlungsergebnisse. Was die damals noch offenen Fragen 
anbetrifft, so wurden einige von Ihnen (z.B. bestimmte 
Dienstleistungssektoren, der Handel mit Zivi Iluftfahrzeugen und das 
Beschaffungswesen) im Hinblick auf weitere Verhandlungen in den Jahren 1994 
und 1995 ausdrücklich ausgeklammert; andere Fragen (z.B. die Listen mit 
tariflichen Verpflichtungen - Marktzugang - und mit ersten spezifischen 
Verpflichtungen im Bereich des Dienstleistungsverkehrs) sollten in engerem 
Rahmen weiter erörtert und in der Zelt vor der Tagung in Marrakesch 
überprüft werden. 
Über das Ergebnis dieser Arbeiten im Zusammenhang mit dem Marktzugang und 
den Verpflichtungen Im Dienst le Istungsverkehr wurde den Mitgliedstaaten 
bereits auf der 1735. Tagung des Rates am 7./8. März berichtet; eine weitere 
Analyse wird in dem zusätzlichen Bericht, der dem Rat demnächst übermittelt 
wird, vorgenommen. Insgesamt gesehen hat sich die Situation beim Marktzugang 
nicht wesentlich geändert, auch wenn in einigen Sektoren Details modifiziert 
wurden (zumeist im Sinne von Anpassungen der Angebote nach unten). In bezug 
auf Bananen stellt die Zoll liste die Vereinbarung dar, die mit den meisten 
GATT-Ausfuhr1 ändern im Rahmen der Uruguay Runde erreicht werden konnte. Sie 
schließt die Verhandlungen und Konsultationen über Bananen mit dieser. 
Ländern ab. Im Dienstleistungssektor wurden die Listen mit spezifischen 
Verpflichtungen und die Listen mit Ausnahmen von der 
Meistbegünstigungsklausel überprüft und klar gestellt, wodurch ein höheres 
Konsolidierungsniveau erreicht wurde. Im wesentlichen blieb es beim 
ursprünglichen Ergebnis, auch wenn einzelne Teilnehmer hier und da eins 
weitergehende Liberalisierung anboten, indem sie Beschränkungen aufhoben und 
weitere Sektoren einbezogen. 
Inzwischen wurde der Bericht der Kommission vom Dezember letzten Jahres dem 
Europäischen Parlament zugeleitet und wurden Beratungen mit den zuständigen 
EP-Ausschüssen aufgenommen, um das förmliche Zustimmungsverfahren für den 
Zeltpunkt vorzubereiten, zu dem die endgültigen Texte vorliegen. Es ist 
jetzt äußerst dringend, daß dem Rat ein Kommissionsvorschlag für die Annahme 
der Verhandlungsergebnisse zur Weiter leltung an das Parlament übermittelt 
wird, damit dieses Verfahren auf der Mai-Sitzung abgeschlossen werden kann. 
S°-
Ferner muß sich der Rat mit einer noch offenen Frage befassen. Oben wurde bereits auf 
die Tatsache hingewiesen, daß über den Handel mit Zivilluftfahrzeugen weiter verhandelt 
werden muß und daß spezifische Vereinbarungen zur Verbesserung der 
Liberalisierungsverpflichtungen in einigen Dienstleistungssektoren getroffen werden 
müssen. Nach Auffassung der Kommission sind diese Fragen, die entweder unter das 
Mandat für die Verhandlungen über Zivilluftfahrzeuge mit den USA oder unter die 
Erklärung von Punta del Este aus dem Jahr 1986 fallen, weiterhin als Bestandteil der 
Uruguay-Runde anzusehen, auch wenn die endgültigen Lösungen noch ausstehen. 
Folglich beabsichtigt die Kommission, an diesen sektoralen Verhandlungen auf der 
Grundlage der bestehenden Direktiven des Rates teilzunehmen, über den Fortgang dieser 
Verhandlungen Bericht zu erstatten und gegebenenfalls um zusätzliche Direktiven 
nachzusuchen. 
In dem beigefügten Vorschlag werden die Gründe für die Wahl der Rechtsgrundlage für 
die Annahme der Ergebnisse der Uruguay-Runde dargelegt; ferner wird ein Entwurf für 
einen Ratsbeschluß beigefügt. Dieser Entwurf entspricht dem Standardmodell fur den 
Abschluß von Handelsabkommen und benennt die Person(en), die die Annahmeurkunden 
unterzeichnet/unterzeichnen oder hinterlegt/hinterlegen. 
Dieser Vorschlag entspricht in der Substanz dem Standpunkt, den die Kommission in 
ihrem Antrag auf ein Gutachten des Gerichtshofs gemäß Artikel 228 Absatz 6 EG 
vertreten hat. Folglich behält sich die Kommission das Recht vor, ihren Vorschlag im 
Lichte des Gutachtens des Gerichtshofs zu ändern, um auf jeden Fall die Kohärenz des 
Vorgehens der Gemeinschaft im Rahmen der WTO zu gewährleisten. 
Z<K, -
ABSCHLUSS DER ÜBEREINKOMMEN. ABKOMMEN UND ÜBEREINKÜNFTE 
UND BEDINGUNGEN FÜR DIE TEILNAHME 
A. Rechtsgrundlage der vom Rat zu fassenden Beschlüsse 
Nach Auffassung der Kommission verfügt die Gemeinschaft insgesamt in 
ausreichendem Maße über die notwendigen Befugnisse, um die internationalen 
Verpflichtungen einzugehen, die in den dem Rat zur Annahme vorgeschlagenen 
Instrumenten enthalten sind. 
Diese Befugnisse ergeben sich aus Artikel 113 des EG-Vertrags sowie, im Falle 
der EGKS-Erzeugnisse, aus Artikel 95 des EGKS-Vertrags. 
Auch wenn einige der Instrumente sich auf andere Bereiche auswirken können, 
so bestehen doch ihr eigentliches Ziel wie auch ihr Inhalt darin, unter 
verschiedenen Aspekten den internationalen Handel zu regeln, also einen 
Bereich, der im Rahmen der Handelspolitik eindeutig in die ausschließliche 
Zuständigkeit der Gemeinschaft fällt. 
Was die unter den EGKS-Vertrag fallenden Waren anbetrifft, so hält die 
Kommission Artikel 95 für die geeignete Rechtsgrundlage für die Annahme der 
die EGKS betreffenden Verhandlungsergebnisse. 
Die gleiche Überlegung gilt für den Abschluß der bilateralen Vereinbarung mit 
Australien betreffend Kohle. 
Dieser Artikel wurde auch als Rechtsgrundlage für den Abschluß der 
Stahlvereinbarungen mit den Vereinigten Staaten in den Jahren 1982 und 1989 
sowie für die vorzeitige Durchführung der EGKS-Waren betreffenden 
handelspolitischen Bestimmungen der mit den Ländern Mittel- und Osteuropas 
geschlossenen Interimsabkommen gewählt. 
Der Abschluß erfolgt durch einen Beschluß der Kommission, die auf der 
Grundlage der Zustimmung des Rates und nach Stellungnahme des Beratenden 
Ausschusses als Hohe Behörde handelt. Dieses Verfahren ist Gegenstand des 
beigefügten Vorschlags für eine in das Protokoll des Rates aufzunehmende 
Feststellung. 
B. Empfehlung der Kommission für einen vom Rat zu fassenden Beschluß 
Die Kommission empfiehlt dem Rat, den nachstehenden, im Anhang beigefügten 
Beschluß zu fassen: 
Beschluß über die Annahme der Ergebnisse der 
multilateralen Handelsverhandlungen im Rahmen der 
Uruguay-Runde. 
Die Annahme bezieht sich auf 
J>^-
1. die in der Schlußakte enthaltenen multilateralen Rechtsakte: 
das Abkommen zur Errichtung der Welthandelsorganisation (WTO-
Abkommen); 
die Anhänge 1,2 und 3 zu diesem Abkommen; 
die Ministererklärungen und -beschlüsse sowie die Übereinkunft über die 
Verpflichtungen bezüglich der Finanzdienstleistungen; 
2. die plurilateralen Übereinkommen in Anhang 4 zum WTO-Abkommen; 
3. die am Rande der Uruguay-Runde ausgehandelten bilateralen Abkommen und 
Vereinbarungen, d.h. das mit Uruguay geschlossene Abkommen über Rindfleisch. 
Die förmliche Annahme sämtlicher in der Schlußakte enthaltener 
Ministererklärungen und -beschlüsse sowie die Übereinkunft über die 
Verpflichtungen bezüglich der Finanzdienstleistungen erscheint wünschenswert. 
Trotz ihrer identischen Aufmachung unterscheiden sich diese Texte hinsichtlich 
ihrer Rechtswirkung. Einige sind rechtsverbindlich, während andere nur politische 
Verpflichtungen enthalten. Da nicht rechtsverbindliche Texte durch ihre 
förmliche Annahme keine Rechtswirkung erhalten, empfiehlt es sich, daß das 
Parlament und der Rat all diese Texte "en bloc" annehmen, um gegenüber den 
Drittländern die Form der "Single Undertaking" zu wahren. 
C. Modalitäten der Teilnahme an den Übereinkommen. Abkommen und 
Übereinkünften 
Mit der Welthandelsorganisation (WTO) wird eine Institution mit drei Räten und 
verschiedenen Ausschüssen und anderen Organen geschaffen. Im übrigen werden 
die in Anhang IV der Schlußakte genannten plurilateralen Übereinkommen 
innerhalb der WTO von Ausschüssen verwaltet. 
Die Kommission schlägt vor, daß sowohl die Gemeinschaft als auch deren 
Mitgliedstaaten Mitglieder der WTO sowie ihrer Organe werden. 
Nach Ansicht der Kommission sollte jedoch die Teilnahme der Gemeinschaft und 
ihrer Mitgliedstaaten an der WTO und deren Organen im Einklang mit der 
bisherigen Praxis im Rahmen des GATT erfolgen, d.h.: 
Die Mitgliedstaaten nehmen an den Arbeiten der WTO-Organe unter 
Bedingungen teil, die es ermöglichen, ihre Anwesenheit in der Delegation der 
Gemeinschaft festzustellen. 
Die von der Gemeinschaft in den WTO-Organen zu vertretenden Standpunkte 
werden nach den üblichen Verfahren in vorangehenden Koordinierungssitzungen 
festgelegt. Falls sich während der Koordinierungssitzungen unüberwindliche 
Meinungsverschiedenheiten ergeben, nehmen die Vertreter der Gemeinschaft in 
den WTO-Organen eine abwartende Haltung ein, bis im besonderen Ausschuß 
nach Artikel 113, im Ausschuß der Ständigen Vertreter oder gegebenenfalls im 
Rat eine Lösung gefunden ist. 
In den WTO-Organen trägt die Kommission den Standpunkt der Gemeinschaft 
vor. Die Mitgliedstaaten, die von einem Beratungsthema unmittelbar und 
besonders betroffen sind, können in den entsprechenden Fällen mit Genehmigung 
OA~ 
der Gemeinschaft intervenieren, wobei sie sich im Rahmen des zuvor 
festgelegten Standpunkts der Gemeinschaft bewegen und diesen Standpunkt 
unterstützen und entwickeln müssen. 
Bei Abstimmungen gibt die Kommission alle zwölf Stimmen der Gemeinschaft 
für den Vorschlag ab, der dem Standpunkt der Gemeinschaft entspricht. 
Es gilt als vereinbart, daß die Teilnahme der Mitgliedstaaten an der WTO neben 
der Gemeinschaft zwischen ihnen keine Verpflichtungen aufgrund der Schlußakte 
begründet. Es empfiehlt sich sehr, unsere Handelspartner von dieser Auslegung 
durch eine förmliche Erklärung in Kenntnis zu setzen. 
Im übrigen kommt es darauf an auszuschließen, daß die Bestimmungen des 
WTO-Abkommens und seiner Anhänge eine direkte Wirkung haben, dergestalt, 
daß sie von natürlichen oder juristischen Personen des privaten Rechts bei den 
Gerichten ihrer Länder in Anspruch genommen werden können. Bereits jetzt ist 
bekannt, daß die Vereinigten Staaten ebenso wie eine ganze Reihe unserer 
Handelspartner eine solche direkte Wirkung ausdrücklich ausschließen. Ohne 
einen entsprechenden ausdrücklichen Ausschluß in dem Rechtsakt der 
Gemeinschaft über die Annahme der Ergebnisse könnte es zu einem erheblichen 
Ungleichgewicht bei der tatsächlichen Umsetzung der Verpflichtungen der 
Gemeinschaft einerseits und der der genannten Drittländer andererseits kommen. 
D. Fortsetzung der Verhandlungen 
Eines der wichtigen Ergebnisse, die die Gemeinschaft im Dezember 1993 in 
Genf erzielte, ist die in die Schlußakte aufgenommene förmliche Verpflichtung 
unserer Handelspartner, nach einem vereinbarten Zeit- und Arbeitsplan die 
Verhandlungen über folgende Themen fortzusetzen: 
konkrete Liberalisierungsverpflichtungen in mehreren wichtigen 
Dienstleistungssektoren, nämlich klassische Telekommunikationsdienste, 
Finanzdienstleistungen, Seeverkehr und Aufenthalsrecht; 
Zivilluftfahrt. 
Diese Verpflichtung war unerläßlich, da die Ergebnisse, die in den betreffenden 
Bereichen bis zum 15. Dezember erreicht werden konnten, für die Gemeinschaft 
unannehmbar waren. 
Die Berufung auf diese Verpflichtung setzt jedoch voraus, daß die Gemeinschaft 
sich an die vereinbarten Grundlagen hält. Daher wäre es wünschenswert, diese 
Kontinuität, insbesondere bezüglich der Ziele und Modalitäten dieser 
Verhandlungen, in der im Anhang vorgeschlagenen Form in das Protokoll des 
Rates aufzunehmen. 
* o. 
BESCHLUSS DES RATES 
von 
über die Annahme der Ergebnisse 
der multilateralen Handelsverhandlungen im 
Rahmen der Uruguay-Runde (1986-199,4 ) 
DER RAT DER EUROPÄISCHEN UNION -
gestützt auf den Vertrag zur Gründung der Europäischen Gemeinschaft, 
insbesondere auf Artikel 113 und Artikel 228 Absatz 3 zweiter 
Gedankenstrich, 
gestützt auf den Vertrag über die Gründung der Europäischen Gemeinschaft 
für Kohle und Stahl, insbesondere auf Artikel 95, 
auf Empfehlung der Kommission, 
nach Zustimmung des Europäischen Parlaments, 
in Erwägung nachstehender Gründe: 
Die multilateralen Handelsverhandlungen, die im Rahmen des GATT im 
Anschluß an die am 20. September 1986 in Punta de! Este angenommene 
Ministererklärung eröffnet worden waren, haben zur Abfassung der 
Schlußakte mit den Ergebnissen der multilateralen Handelsverhandlungen 
im Rahmen der Uruguay-Runde geführt. 
Die von der Gemeinschaft und den an den Verhandlungen beteiligten Ländern 
ausgehandelten Zugeständnisse und Verpflichtungen bilden in der Form, wie 
sie in vorgenannten multilateralen Übereinkommen, Abkommen und 
Übereinkünften festgehalten sind, im ganzen genommen ein befriedigendes 
und ausgewogenes Ergebnis. 
Ein Teil der betreffenden Zugeständnisse und Verpflichtungen, die die 
Gemeinschaft und einige an den Verhandlungen beteiligte Länder 
ausgehandelt haben, sind in den plurilateralen Übereinkommen im Anhang 
4 zum Abkommen zur Errichtung der Welthandelsorganisation enthalten. 
Einige dieser Zugeständnisse und Verpflichtungen wurden am Rande der 
Uruguay-Runde bilateral ausgehandelt. 
Es handelt sich um Übereinkommen, Abkommen und Übereinkünfte zwischen den 
Regierungen, so daß ausgeschlossen werden muß, daß natürliche oder 
t o<-
juristische Personen des privaten Rechts sich vor den Gerichten der 
Mitgliedstaaten und der Gemeinschaft unmittelbar auf die Bestimmungen der 
vorgenannten Übereinkommen, Abkommen und Übereinkünfte berufen können -
BESCHLIESST: 
Artikel 1 
1. Im Namen der Europäischen Gemeinschaft werden die folgenden 
multilateralen Übereinkommen, Abkommen und Übereinkünfte sowie 
Rechtsakte genehmigt: 
die Übereinkommen, Abkommen und Übereinkünfte in den Anhängen 1, 
2 und 3 zum Abkommen zur Gründung der Welthandelsorganisation, 
die in der Schlußakte der Uruguay:Runde enthaltenen 
Ministererklärungen und -beschlüsse sowie die Übereinkunft über die 
Verpflichtungen bezüglich der Finanzdienstleistungen. 
2. Der Wortlaut der in diesem Artikel genannten Übereinkommen, 
Abkommen und Übereinkünfte sowie Rechtsakte ist diesem Beschluß 
beigefügt. 
3. Der Präsident des Rates wird ermächtigt, die Person zu bestellen, 
die befugt ist, in der in Artikel XXIV des Abkommens zur Errichtung 
der Welthandelsorganisation vorgesehenen Form für die Gemeinschaft 
rechtsverbindlich zu handeln. 
Artikel 2 
1. Die plurilateralen Übereinkommen und Vereinbarungen in Anhang 4 zum 
Abkommen zur Errichtung der Welthandelsorganisation werden im Namen 
der Europäischen Gemeinschaft genehmigt. 
2. Der Wortlaut der in diesem Artikel genannten Übereinkommen ist 
diesem Beschluß beigefügt. 
3. Der Präsident des Rates wird ermächtigt, die Person zu bestellen, 
die befugt ist, in der in den vorgenannten Übereinkommen 
vorgesehenen Form für die Gemeinschaft rechtsverbindlich zu 
handeln. 
Artikel 3 
1. Das mit Uruguay geschlossene Abkommen über Rindfleisch wird im 
Namen der Gemeinschaft genehmigt. 
2. Der Wortlaut dieses Abkommens ist diesem Beschluß beigefügt. 
3. Der Präsident des Rates wird ermächtigt, die Person zu bestellen, 
die befugt ist, das Abkommen für die Gemeinschaft rechtsverbindlich 
zu unterzeichnen. 
Geschehen zu Brüssel am Im Namen des Rates 
Der Präsident 
? o^ 
Entwurf 
Ins Ratsprotokoll aufzunehmende Feststellungen 
EGKS-Waren 
"Der Rat nimmt zur Kenntnis, daß die Kommission nach Stellungnahme des 
Beratenden EGKS-Ausschusses und nach Zustimmung des Rates beabsichtigt, 
im Namen der Gemeinschaft die in den Geltungsbereich des EGKS-Vertrags 
fallenden Ergebnisse der Uruguay-Runde sowie die bilaterale Vereinbarung 
mit Australien betreffend Kohle anzunehmen." 
Fortsetzung der Verhandlungen 
"Der Rat stellt fest, daß die Kommission im Namen der Gemeinschaft die 
Verhandlungen über die Liberalisierungsverpflichtungen in bestimmten 
Dienstleistungssektoren sowie im Bereich der Zivilluftfahrt mit 
unveränderten Zielen und nach unveränderten Modalitäten fortsetzt." 
a -
MULTILATERAL TRADE 
NEGOTIATIONS 
THE URUGUAY ROUND 
Trade Negotiations Committee 
FINAL ACT EMBODYING THE RESULTS OF THE 
URUGUAY ROUND OF MULTILATERAL TRADE NEGOTIATIONS 
MARRAKESH, 15 APRIL 1994 
Page 2 
Page 3 
TABLE OF CONTENTS 
FINAL ACT 5 
AGREEMENT ESTABLISHING THE WORLD TRADE ORGANIZATION 9 
ANNEX 1 21 
ANNEX 1A: MULTILATERAL AGREEMENTS ON TRADE IN GOODS 21 
• General Agreement on Tariffs and Trade 1994 23 
Understanding on the Interpretation of Anicle D:i(b) of the General Agreement on 
Tariffs and Trade 1994 25 
Understanding on the Interpretation of Article XVTJ of the General Agreement on 
Tariffs and Trade 1994 27 
Understanding on Balance-of-Payments Provisions of the General Agreement on 
Tariffs and Trade 1994 29 
Understanding on the Interpretation of Article XXTV of the General Agreement on 
Tariffs and Trade 1994 33 
Understanding in Respect of Waivers of Obligations under the General Agreement 
on Tariffs and Trade 1994 37 
Understanding on the Interpretation of Article xxvm of the General Agreement on 
Tariffs and Trade 1994 39 
Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994 41 
Agreement on Agriculture 43 
Agreement on the Application of Sanitary and Phytosanitary Measures 69 
Agreement on Textiles and Clothing 85 
Agreement on Technical Barriers to Trade 117 
Agreement on Trade-Related Investment Measures 139 
Agreement on Implementation of Anicle vi of the General Agreement on Tariffs and 
Trade 1994 145 
Agreement on Implementation of Anicle vn of the General Agreement on Tariffs and 
Trade 1994 171 
Agreement on Preshipment Inspection 199 
Agreement on Rules of Origin 209 
Agreement on Impon Licensing Procedures 221 
Agreement on Subsidies and Countervailing Measures 229 
Agreement on Safeguards 273 
ANNEX IB General Agreement on Trade in Services 283 
ANNEX ic Agreement on Trade-Related Aspects of Intellectual Property Rights .... 319 
ANNEX 2 Understanding on Rules and Procedures Governing the Settlement of Disputes 353 
ANNEX 3 Trade Policy Review Mechanism 379 
ANNEX 4 Plurilateral Trade Agreements 383 
Agreement on Trade in Civil Aircraft 383 
Agreement on Government Procurement 383 
International Dairy Agreement 383 
International Bovine Meat Agreement 383 
Page 4 
MINISTERIAL DECISIONS AND DECLARATIONS 
Decision on Measures in Favour of Least-Developed Countries 385 
Declaration on the Contribution of the World Trade Organization to Achieving Greater 
Coherence- in Global Economic Policymaking 387 
Decision on Notification Procedures 389 
Declaration on the Relationship of the World Trade Organization with the International 
Monetary Fund 393 
Decision on Measures Concerning the Possible Negative Effects of the Reform Programme 
on Least-Developed and Net Food-Importing Developing Countries 395 
Decision on Notification of First Integration under Article 2.6 of the Agreement on Textiles 
and Clothing 397 
Decisions Relating to the Agreement on Technical Barriers to Trade 
Decision on Proposed Understanding on WTO-ISO Standards Information System : . . 399 
Decision on Review of the 1SO/IEC Information Centre Publication 400 
Decisions and Declaration Relating to the Agreement on'Implementation of Article vi of 
the General Agreement on Tariffs and Trade 1994 
Decision on Anti-Circumvention 401 
Decision on Review of Article 17.6 of the Agreement on Implementation of Article vi 
of the General Agreement on Tariffs and Trade 1994 402 
Declaration on Dispute Settlement Pursuant to the Agreement on Implementation of 
Article VI of the General Agreement on Tariffs and Trade 1994 or Part v of the 
Agreement on Subsidies and Countervailing Measures 403 
Decisions Relating to the Agreement on Implementation of Article VII of the General 
Agreement on Tariffs and Trade 1994 
Decision Regarding Cases where Customs Administrations Have Reasons to Doubt 
the Truth or Accuracy of the Declared Value . . . 405 
Decision on Texts Relating to Minimum Values and Imports by Sole Agents. Sole 
Distributors and Sole Concessionaires 406 
Decisions Relating to the General Agreement on Trade in Services 
Decision on Institutional Arrangements for the General Agreement on Trade in 
Services 407 
Decision on Certain Dispute Settlement Procedures for the General Agreement on Trade 
in Services 408 
Decision on Trade in Services and the Environment 409 
Decision on Negotiations on Movement of Natural Persons 410 
Decision on Financial Services 411 
Decision on Negotiations on Maritime Transport Services 412 
Decision on Negotiations on Basic Telecommunications 414 
Decision on Professional Services 415 
Decision on Accession to the Agreement on Government Procurement 417 
Decision on the Application and Review of the Understanding on Rules and Procedures 
Governing the Settlement of Disputes 419 
UNDERSTANDING ON COMMITMENTS IN FINANCIAL SERVICES 421 
r-
FINAL ACT EMBODYING THE RESULTS OF THE 
URUGUAY ROUND OF MULTILATERAL TRADE NEGOTIATIONS 
Marrakesh, 15 April 1994 
Page 6 
Page 7 
FINAL ACT EMBODYING THE RESULTS OF THE 
URUGUAY ROUND OF MULTILATERAL TRADE NEGOTIATIONS 
1. Having met in order to conclude the Uruguay Round of Multilateral Trade Negotiations, 
representatives of the governments and of the European Communities, members of the Trade Negotiations 
Committee, agree that the Agreement Establishing the World Trade Organization (referred to in this 
Final Act as the "WTO Agreement"), the Ministerial Declarations and Decisions, and the Understanding 
on Commitments in Financial Services, as annexed hereto, embody the results of their negotiations 
and form an integral part of this Final Act. 
2. By signing the present Final Act, the representatives agree 
(a) to submit, as appropriate, the WTO Agreement for the consideration of their respective 
competent authorities with a view to seeking approval of the Agreement in accordance 
' with their procedures; and 
(b) to adopt the Ministerial Declarations and Decisions. 
3. The representatives agree on the desirability of acceptance of the WTO Agreement by all 
participants in the Uruguay Round of Multilateral Trade Negotiations (hereinafter referred to as 
" participants" ) with a view to its entry into force by 1 January 1995, or as early as possible thereafter. 
Not later than late 1994. Ministers will meet, in accordance with the final paragraph of the Punta del 
Este Ministerial Declaration, to decide on the international implementation of the results, including 
the timing of their entry into force. 
4 The representatives agree that the WTO Agreement shall be open for acceptance as a whole, 
by signature or otherwise, by all participants pursuant to Article XIV thereof. The acceptance and 
entry into force of a Plurilateral Trade Agreement included in Annex 4 of the WTO Agreement shall 
be governed by the provisions of that Plurilateral Trade Agreement. 
5 Before accepting the WTO Agreement, participants which are not contracting parties to the 
General Agreement on Tariffs and Trade must first have concluded negotiations for their accession 
to the General Agreement and become contracting parties thereto. For participants which are not 
contracting parties to the General Agreement as of the date of the Final Act, the Schedules are not 
definitive and shall be subsequently completed for the purpose of their accession to the General 
Agreement and acceptance of the WTO Agreement. 
6 This Final Act and the texts annexed hereto shall be deposited with the Director-General to 
the CONTRACTING PARTIES to the General Agreement on Tariffs and Trade who shall promptly, 
furnish to each participant a certified copy thereof. 
DONE at Marrakesh this fifteenth day of April one thousand nine hundred and ninety-four, 
in a single copy, in the English, French and Spanish languages, each text being authentic. 
[List of signatures to be included in the treaty copy of the Final Act for signature] 
Page 8 
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AGREEMENT ESTABLISHING THE 
WORLD TRADE ORGANIZATION 
The Parties to this Agreement, 
Recognizing that their relations in the field of trade and economic endeavour should be conducted 
with a view to raising standards of living, ensuring full employment and a large and steadily growing 
volume of real income and effective demand, and expanding the production of and trade in goods and 
services, while allowing for the optimal use of the world's resources in accordance with the objective 
of sustainable development, seeking both to protect and preserve the environment and to enhance the 
means for doing so in a manner consistent with their respective needs and concerns at different levels 
of economic development. 
Recognizing further that there is need for positive efforts designed to ensure that developing 
countries, and especially the least developed among them, secure a share in the growth in international 
trade commensurate with the needs of their economic development, 
Being desirous of contributing to these objectives by entering into reciprocal and mutually-
advantageous arrangements directed to the substantial reduction of tariffs and other barriers to trade 
and to the elimination of discriminatory treatment in international trade relations. 
Resolved..therefore, to develop an integrated, more viable and durable multilateral trading system 
encompassing the General Agreement on Tariffs and Trade, the results of past trade liberalization efforts, 
and all of the results of the Uruguay Round of Multilateral Trade Negotiations, 
Determined to. preserve the basic principles and to further the objectives underlying this 
multilateral trading system. 
Agree as follows: 
Article I 
Establishment of the Organization 
The World Trade Organization (hereinafter referred to as "the WTO") is hereby established. 
Article II 
Scope of the WTO 
1. The WTO shall provide the common institutional framework for the conduct of trade relations 
among its Members in matters related to the agreements and associated legal instruments included in 
the Annexes to this Agreement. 
2. The agreements and associated legal instruments included in Annexes 1, 2 and 3 (hereinafter 
referred to as "Multilateral Trade Agreements") are integral parts of this Agreement, binding on all 
Members. 
3. The agreements and associated legal instruments included in Annex 4 (hereinafter referred 
to as "Plurilateral Trade Agreements") are also part of this Agreement for those Members that have 
Page 10 
accepted them, and are binding on those Members. The Plurilateral Trade Agreements do not create 
either obligations or rights for Members that have not accepted them. 
4. The General Agreement on Tariffs and Trade 1994 as specified in Annex 1A (hereinafter referred 
to as "GATT 1994") is legally distinct from the General Agreement on Tariffs and Trade, dated 
30 October 1947, annexed to the Final Act Adopted at the Conclusion of the Second Session of the 
Preparatory Committee of the United Nations Conference on Trade and Employment, as subsequently 
rectified, amended or modified (hereinafter referred to as "GATT 1947"). 
Article III 
Functions of the WTO 
1. The WTO shall facilitate the implementation, administration and operation, and further the 
objectives, of this Agreement and of the Multilateral Trade Agreements, and shall also provide the 
framework for the implementation, administration and operation of the Plurilateral Trade Agreements. 
2. The WTO shall provide the forum for negotiations among its Members concerning their 
multilateral trade relations in matters dealt with under the agreements in the Annexes to this Agreement. 
The WTO may also provide a forum for further negotiations among its Members concerning their 
multilateral .trade relations, and a framework for the implementation of the results of such negotiations, 
as may be decided by the Ministerial Conference. 
3. The WTO shall administer the Understanding on Rules and Procedures Governing the Settlement 
of Disputes (hereinafter referred to as the "Dispute Settlement Understanding" or "DSU") in Annex 
2 to this Agreement. 
4. The WTO shall administer the Trade Policy Review Mechanism (hereinafter referred to as 
the "TPRM") provided for in Annex 3 to this Agreement. 
5. With a view to achieving greater coherence in global economic policy-making, the WTO shall 
cooperate, as appropriate, with the International Monetär}' Fund and with the International Bank for 
Reconstruction and Development and its affiliated agencies. 
Article IV 
Structure of the WTO 
1. There shall be a Ministerial Conference composed of representatives of all the Members, which 
shall meet at least once every two years The Ministerial Conference shall carry out the functions 
of the WTO and take actions necessary to this effect. The Ministerial Conference shall have the authority 
to take decisions on all matters under any of the Multilateral Trade Agreements, * if -so requested by 
a Member, in accordance with the specific requirements for decision-making in this Agreement and 
in the relevant Multilateral Trade Agreement. 
2. There shall be a General Council composed of representatives of all the Members; which shall 
meet as appropriate. In the intervals between meetings of the Ministerial Conference, its functions 
shall be conducted by the General Council. The General Council shall also carry out the functions 
assigned to it by this Agreement. The General Council shall establish its rules of procedure and approve 
the rules of procedure for the Committees provided for in paragraph 7. 
Page 11 
3. The General Council shall convene as appropriate to discharge the responsibilities of the Dispute 
Settlement Body provided for in the Dispute Settlement Understanding. The Dispute Settlement Body 
may have its own chairman and shall establish such rules of procedure as it deems necessary for the 
fulfilment of those responsibilities. 
4. The General Council shall convene as appropriate to discharge the responsibilities of the Trade 
Policy Review Body provided for in the TPRM. The Trade Policy Review Body may have its own 
chairman and shall establish such rules of procedure as it deems necessary for the fulfilment of those 
responsibilities. 
5. There shall be a Council for Trade in Goods, a Council for Trade in Services and a Council 
for Trade-Related Aspects of Intellectual Property Rights (hereinafter referred to as the "Council for 
TRIPS"), which shall operate under the general guidance of the General Council. The Council for 
Trade in Goods shall oversee the functioning of the Multilateral Trade Agreements in Annex 1A. The 
Council for Trade in Services shall oversee the functioning of the General Agreement on Trade in 
Services (hereinafter referred to as "GATS"). The Council for TRIPS shall oversee the functioning 
of the Agreement on Trade-Related Aspects of Intellectual Property Rights (hereinafter referred to 
as the "Agreement on TRIPS"). These Councils shall carry out the functions assigned to them by their 
respective agreements and by the General Council. They shall establish their respective rules of 
procedure subject to the approval of the General Council. Membership in these Councils shall be open 
to representatives of all "Members. These Councils shall meet as necessary to carry out their functions. 
6 The Council for Trade in Goods, the Council for Trade in Services and the Council for TRIPS 
shall establish subsidiary bodies as required. These subsidiary bodies shall establish their respective 
rules of procedure subject to the approval of their respective Councils. 
7. The Ministerial Conference shall establish a Committee on Trade and Development, a Committee 
on Balance-of-Payments Restrictions and a Committee on Budget, Finance and Administration, which 
shall carry out the functions assigned to them by this Agreement and by the Multilateral Trade 
Agreements, and any additional functions assigned to them by the General Council, and may establish 
such additional Committees with such functions as it may deem appropriate. As part of its functions, 
the Committee on Trade and Development shall periodically review the special provisions in the 
Multilateral Trade Agreements in favour of the least-developed country Members and report to the 
General Council for appropriate action. Membership in these Committees shall be open to representatives 
of all Members. 
8. The bodies provided for under the Plurilateral Trade Agreements shall carry out the functions 
assigned to them under those Agreements and shall operate within the institutional framework of the 
WTO. These bodies shall keep the General Council informed of their activities on a regular basis. 
Article V 
Relations with Other Organizations 
1. The General Council shall make appropriate arrangements for effective cooperation with other 
intergovernmental organizations that have responsibilities related to those of the WTO. 
2. The General Council may make appropriate arrangements for consultation and cooperation 
with non-governmental organizations concerned with matters related to those of the WTO. 
Page 12 
Article VI 
The Secretariat 
1. • There shall be a Secretariat of the WTO (hereinafter referred to as "the Secretariat") headed 
by a Director-General. 
2. The Ministerial Conference shall appoint the Director-General and adopt regulations setting 
out the powers, duties, conditions of service and term of office of the Director-General. 
3. The Director-General shall appoint the members of the staff of the Secretariat and determine 
their duties and conditions of service in accordance with regulations adopted by the Ministerial 
Conference. 
4. The responsibilities of the Director-General and of the staff of the Secretariat shall be exclusively 
international in character. In the discharge of their duties, the Director-General and the staff of the 
Secretariat shall not seek or accept instructions from any government or any other authority external 
to the WTO. They shall refrain from any action which might adversely reflect on their position as 
international officials. The Members of the WTO shall respect the international character of the respon­
sibilities of the Director-General and of the staff of the Secretariat and shall not seek to influence them 
in the discharge of their duties. 
Article VII 
Budget and Contributions 
1. The Director-General shall present to the Committee on Budget, Finance and Administration 
the annual budget estimate and financial statement of the WTO. The Committee on Budget, Finance 
and Administration shall review the annual budget estimate and the financial statement presented by 
the Director-General and make recommendations thereon to the General Council. The annual budget 
estimate shall be subject to approval by the General Council. 
2. The Committee on Budget, Finance and Administration shall propose to the General Council 
financial regulations which shall include provisions setting out: 
(a) the scale of contributions apportioning the expenses of the WTO among its Members; 
and 
(b) the measures to be taken in respect of Members in arrears. 
The financial regulations shall be based, as far as practicable, on the regulations and practices of 
GATT 1947. 
3. The General Council shall adopt the financial regulations and the annual budget estimate by 
a two-thirds majority comprising more than half of the Members of the WTO. 
4. Each Member shall promptly contribute to the WTO its share in the expenses of the WTO 
in accordance with the financial regulations adopted by the General Council. 
Page 13 
Article VIII 
Status of the WTO 
1. The WTO shall have legal personality, and shall be accorded by each of its Members such 
legal capacity as may be necessary for the exercise of its functions. 
2. The WTO shall be accorded by each of its Members such privileges and immunities as are 
necessary for the exercise of its functions. 
3. The officials of the WTO and the representatives of the Members shall similarly be accorded 
by each of its Members such privileges and immunities as are necessary for the independent exercise 
of their functions in connection with the WTO. 
4. The privileges and immunities to be accorded by a Member to the WTO, its officials, and the 
representatives of its Members shall be similar to the privileges and immunities stipulated in the 
Convention on the Privileges and Immunities of the Specialized Agencies, approved by the General 
Assembly of the United Nations on 21 November 1947. 
5. The WTO may conclude a headquarters agreement. 
Article IX 
Decision-Making 
1. The WTO shall continue the practice of decision-making by consensus followed under 
GATT 1947.' Except as otherwise provided, where a decision cannot be arrived at by consensus, the 
matter at issue shall be decided by voting. At meetings of the Ministerial Conference and the General 
Council, each Member of the WTO shall have one vote. Where the European Communities exercise 
their right to vote, they shall have a number of votes equal to the number of their member States2 which 
are Members of the WTO. Decisions of the Ministerial Conference and the General Council shall 
be taken by a majority of the votes cast, unless otherwise provided in this Agreement or in the relevant 
Multilateral Trade Agreement.3 
2. The Ministerial Conference and the General Council shall have the exclusive authority to adopt 
interpretations of this Agreement and of the Multilateral Trade Agreements. In the case of an 
interpretation of a Multilateral Trade Agreement in Annex 1, they shall exercise their authority on 
the basis of a recommendation by the Council overseeing the functioning of that Agreement. The 
decision to adopt an interpretation shall be taken by a three-fourths majority of the Members. This 
paragraph shall not be used in a manner that would undermine the amendment provisions in Article X. 
3. In exceptional circumstances, the Ministerial Conference may decide to waive an obligation 
imposed on a Member by this Agreement or any of the Multilateral Trade Agreements, provided that 
'The body concerned shall be deemed to have decided by consensus on a matter submitted for its consideration, if no 
Member, present at the meeting when the decision is taken, formally objects to the proposed decision. 
The number of votes of the European Communities and their member States shall in no case exceed the number of the 
member States of the European Communities. 
decisions by the General Council when convened as the Dispute Settlement Body shall be taken only in accordance 
with the provisions of paragraph 4 of Article 2 of the Dispute Settlement Understanding. 
Page 14 
any such decision shall be taken by three fourths4 of the Members unless otherwise provided for in 
this paragraph. 
(a) A request for a waiver concerning this Agreement shall be submitted to the Ministerial 
Conference for consideration pursuant to the practice of decision-making by consensus. 
The Ministerial Conference shall establish a time-period, which shall not exceed 90 
days, to consider the request. If consensus is not reached during the time-period, any 
decision to grant a waiver shall be taken by three fourths4 of the Members. 
(b) A request for a waiver concerning the Multilateral Trade Agreements in Annexes 1A 
or IB or 1C and their annexes shall be submitted initially to the Council for Trade 
in Goods, the Council for Trade in Services or the Council for TRIPS, respectively, 
for consideration during a time-period which shall not exceed 90 days. At the end 
of the time-period, the relevant Council shall submit a report to the Ministerial 
Conference. 
4. A decision by the Ministerial Conference granting a waiver shall state the exceptional 
circumstances justifying the decision, the terms and conditions governing the application of the waiver, 
and the date on which the waiver shall terminate. vAny waiver granted for a period of more than one 
year shall be reviewed by the Ministerial Conference not later than one year after it is granted, and 
thereafter annually until the waiver terminates. In each review, the Ministerial Conference shall examine 
whether the exceptional circumstances justifying the waiver still exist and whether the terms and 
conditions attached to the waiver have been met. The Ministerial Conference, on the basis of the annual 
review, may extend, modify or terminate the waiver. 
5. Decisions under a Plurilateral Trade Agreement, including any decisions on interpretations 
and waivers, shall be governed by the provisions of that Agreement. 
Article X 
Amendments 
1 Any Member of the WTO may initiate a proposal to amend the provisions of this Agreement 
or the Multilateral Trade Agreements in Annex I by submitting such proposal to the Ministerial 
Conference. The Councils listed in paragraph 5 of Article IV may also submit to the Ministerial 
Conference proposals to amend the provisions of the corresponding Multilateral Trade Agreements 
in Annex 1 the functioning of which they oversee. Unless the Ministerial Conference decides on a 
longer period, for a period of 90 days after the proposal has been tabled formally at the Ministerial 
Conference any decision by the Ministerial Conference to submit the proposed amendment to the 
Members for acceptance shall he taken by consensus. Unless the provisions of paragraphs 2, 5 or 
6 appl>. that decision shall specify whether the provisions of paragraphs 3 or 4 shall apply. If consensus 
is reached, the Ministerial Conference shall forthwith submit the proposed amendment to the Members 
for acceptance. If consensus is not reached at a meeting of the Ministerial Conference within the 
established period, the Ministerial Conference shall decide by a two-thirds majority of the Members 
whether to submit the proposed amendment to the Members for acceptance. Except as provided in 
paragraphs 2. 5 and 6. the provisions of paragraph 3 shall apply to the proposed amendment, unless 
the Ministerial Conference decides by a three-fourths majority of the Members that the provisions of 
paragraph 4 shall apply. 
4 A decision to grant a waiver in respect of any obligation subject to a transition period or a period for staged implementation 
thai the requesting Member has not performed by the end of the relevant period shall be taken only by consensus. 
Page 15 
2. Amendments to the provisions of this Article and to the provisions of the following Articles 
shall take effect only upon acceptance by all Members: 
Article IX of this Agreement; 
Articles I and II of GATT 1994; 
Anicle II. 1 of GATS; 
Article 4 of the Agreement on TRIPS. 
3. Amendments to provisions of this Agreement, or of the Multilateral Trade Agreements in 
Annexes 1A and 1C, other than those listed in paragraphs 2 and 6, of a nature that would alter the 
rights and obligations of the Members, shall take effect for the Members that have accepted them upon 
acceptance by two thirds of the Members and thereafter for each other Member upon acceptance by 
it. The Ministerial Conference may decide by a three-fourths majority of the Members that any 
amendment made effective under this paragraph is of such a nature that any Member which has not 
accepted it within a period specified by the Ministerial Conference in each case shall be free to withdraw 
from the WTO or to remain a Member with the consent of the Ministerial Conference. 
4 Amendments to provisions of this Agreement or of the Multilateral Trade Agreements in 
Annexes 1A and 1C. other than those listed in paragraphs 2 and 6, of a nature that would not alter 
the rights and obligations of the Members, shall take effect for all Members upon acceptance by two 
thirds of the Members. 
5. Except as provided in paragraph 2 above, amendments to Parts I, II and III of GATS and the 
respective annexes shall take effect for the Members that have accepted them upon acceptance by two 
thirds of the Members and thereafter for each Member upon acceptance by it. The Ministerial 
Conference may decide by a three-fourths majority of the Members that any amendment made effective 
under the preceding provision is of such a nature that any Member which has not accepted it within 
a period specified by the Ministerial Conference in each case shall be free to withdraw from the WTO 
or to remain a Member with the consent of the Ministerial Conference. Amendments to Parts IV, 
Y and VI of GATS and the respective annexes shall take effect for all Members upon acceptance by 
two thirds of the Members. 
6 Notwithstanding the other provisions of this Article, amendments to the Agreement on TRIPS 
meeting the requirements of paragraph 2 of Article 71 thereof may be adopted by the Ministerial 
Conference without further formal acceptance process. 
7 Any Member accepting an amendment to this Agreement or to a Multilateral Trade Agreement 
in Annex 1 shall deposit an instrument of acceptance with the Director-General of the WTO within 
the period of acceptance specified by the Ministerial Conference. 
8. Any Member of the WTO may initiate a proposal to amend the provisions of the Multilateral 
Trade Agreements in Annexes 2 and 3 by submitting such proposal to the Ministerial Conference. 
The decision to approve amendments to the Multilateral Trade Agreement in Annex 2 shall be made 
by consensus and these amendments shall take effect for all Members upon approval by the Ministerial 
Conference. Decisions to approve amendments to the Multilateral Trade Agreement in Annex 3 shall 
take effect for all Members upon approval by the Ministerial Conference. 
9. The Ministerial Conference, upon the request of the Members parties to a trade agreement, 
may decide exclusively by consensus to add that agreement to Annex 4. The Ministerial Conference, 
upon the request of the Members parties to a Plurilateral Trade Agreement, may decide to delete that 
Agreement from Annex 4. 
Page 16 
10. Amendments to a Plurilateral Trade Agreement shall be governed by the provisions of that 
Agreement. 
Article XI 
Original Membership 
1. The contracting parties to GATT 1947 as of the date of entry into force of this Agreement, 
and the European Communities, which accept this Agreement and the Multilateral Trade Agreements 
and for which Schedules of Concessions and Commitments are annexed to GATT 1994 and for which 
Schedules of Specific Commitments are annexed to GATS shall become original Members of the WTO. 
2. The least-developed countries recognized as such by the United Nations will only be required 
to undertake commitments and concessions to the extent consistent with their individual development, 
financial and trade needs or their administrative and institutional capabilities. 
Article XII 
Accession 
1. Any State or separate customs territory possessing full autonomy in the conduct of its external 
commercial relations and of the other matters provided for in this Agreement and the Multilateral Trade 
Agreements may accede to this Agreement, on terms to be agreed between it and the WTO. Such 
accession shall apply to this Agreement and the Multilateral Trade Agreements annexed thereto. 
2. Decisions on accession shall be taken by the Ministerial Conference. The Ministerial Conference 
shall approve the agreement on the terms of accession by a two-thirds majority of the Members of 
the WTO. 
3. Accession to a Plurilateral Trade Agreement shall be governed by the provisions ofthat Agree­
ment. • 
Article XIII 
Non-Application of Multilateral Trade Agreements 
berween Particular Members 
1. This Agreement and the Multilateral Trade Agreements in Annexes 1 and 2 shall not apply 
as between any Member and any other Member if either of the Members, at the time either becomes 
a Member, does not consent to such application. 
2. Paragraph 1 may be invoked between original Members of the WTO which were contracting 
parties to GATT 1947 only where Article XXXV ofthat Agreement had been invoked earlier and was 
effective as between those contracting parties at the time of entry into force for them of this Agreement. 
3. Paragraph 1 shall apply between a Member and another Member which has acceded under 
Article XII only if the Member not consenting to the application has so notified the Ministerial 
Conference before the approval of the agreement on the terms of accession by the Ministerial Conference. 
Page 17 
4. The Ministerial Conference may review the operation of this Article in particular cases at the 
request of any Member and make appropriate recommendations. 
5. Non-application of a Plurilateral Trade Agreement between parties to that Agreement shall 
be governed by the provisions of that Agreement. 
Article XIV 
Acceptance, Entry- into Force and Deposit 
1. This Agreement shall be open for acceptance, by signature or otherwise, by contracting parties 
to GATT 1947, and the European Communities, which are eligible to become original Members of 
the WTO in accordance with Article XI of this Agreement. Such acceptance shall apply to this 
Agreement and the Multilateral Trade Agreements annexed hereto. This Agreement and the Multilateral 
Trade Agreements annexed hereto shall enter into force on the date determined by Ministers in 
accordance with paragraph 3 of the Final Act Embodying the Results of the Uruguay Round of 
Multilateral Trade Negotiations and shall remain open for acceptance for a period of two years following 
that date unless the Ministers decide otherwise. An acceptance following the entry into force of this 
Agreement shall enter into force on the 30th day following the date of such acceptance. 
2. A Member which accepts this Agreement after its entry into force shall implement those con­
cessions and obligations in the Multilateral Trade Agreements that are to be implemented over a period 
of time starting with the entry into force of this Agreement as if it had accepted this Agreement on 
the date of its entry into force. 
3. Until the entry into force of this Agreement, the text of this Agreement and the Multilateral 
Trade Agreements shall be deposited with the Director-General to the CONTRACTING PARTIES 
to GATT 1947. The Director-General shall promptly furnish a certified true copy of this Agreement 
and the Multilateral Trade Agreements, and a notification of each acceptance thereof, to each government 
and the European Communities having accepted this Agreement. This Agreement and the Multilateral 
Trade Agreements, and any amendments thereto, shall, upon the entry into force of this Agreement, 
be deposited with the Director-General of the WTO 
4. The acceptance and entry into force of a Plurilateral Trade Agreement shall be governed by 
the provisions of that Agreement. Such Agreements shall be deposited with the Director-General to 
the CONTRACTING PARTIES to GATT 1947. Upon the entry into force of this Agreement, such 
Agreements shall be deposited with the Director-General of the WTO. 
Article XV 
Withdrawal 
1. Any Member may withdraw from this Agreement. Such withdrawal shall apply both to this 
Agreement and the Multilateral Trade Agreements and shall take effect upon the expiration of six months 
from the date on which written notice of withdrawal is received by the Director-General of the WTO. 
2. Withdrawal from a Plurilateral Trade Agreement shall be governed by the provisions of that 
Agreement. 
Article XVI 
Page 18 
Miscellaneous Provisions 
1. Except as otherwise provided under this Agreement or the Multilateral Trade Agreements, 
the WTO shall be guided by the decisions, procedures and customary practices followed by the 
CONTRACTING PARTIES to GATT 1947 and the bodies established in the framework of GATT 1947. 
2. To the extent practicable, the Secretariat of GATT 1947 shall become the Secretariat of the 
WTO, and the Director-General to the CONTRACTING PARTIES to GATT 1947, until such time 
as the Ministerial Conference has appointed a Director-General in accordance with paragraph 2 of 
Article VI of this Agreement, shall serve as Director-General of the WTO. 
3. In the event of a conflict between a provision of this Agreement and a provision of any of the 
Multilateral Trade Agreements, the provision of this Agreement shall prevail to the extent of the conilict. 
4. Each Member shall ensure the conformity of its laws, regulations and administrative procedures 
with its obligations as provided in the annexed Agreements. 
5. No reservations may be made in respect of any provision of this Agreement. Reservations 
in respect of any of the provisions of the Multilateral Trade Agreements may only be made to the extent 
provided for in those Agreements. Reservations in respect of a provision of a Plurilateral Trade 
Agreement shall be governed by the provisions of that Agreement. 
6. This Agreement shall be registered in accordance with the provisions of Article 102 of the 
Charter of the United Nations. 
DONE at Marrakesh this fifteenth day of April one thousand nine hundred and ninety-four, 
in a single copy, in the English. French and Spanish languages, each text being authentic. 
Explanatory Notes: 
The terms "count r\ " or "countries" as used in this Agreement and the Multilateral Trade Agreements are to be understood 
to include any separate customs territory Member of the WTO. 
In the case ol a separate customs territory Member of the WTO, where an expression in this Agreement and the 
Multilateral Trade Agreements is qualified by the term "national", such expression shall be read as pertaining to that customs 
territory, unless »>thcruise specified 
Page 19 
LIST OF ANNEXES 
ANNEX 1 
ANNEX 1A: Multilateral Agreements on Trade in Goods 
General Agreement on Tariffs and Trade 1994 
Agreement on Agriculture 
Agreement on the Application of Sanitary and Phytosanitary Measures 
Agreement on Textiles and Clothing 
Agreement on Technical Barriers to Trade 
Agreement on Trade-Related Investment Measures 
Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994 
Agreement on Preshipment Inspection 
Agreement on Rules of Origin 
Agreement on Import Licensing Procedures 
Agreement on Subsidies and Countervailing Measures 
Agreement on Safeguards 
ANNEX IB: General Agreement on Trade in Services and Annexes 
ANNEX IC: Agreement on Trade-Related Aspects of Intellectual Property Rights 
ANNEX 2 
Understanding on Rules and Procedures Governing the Settlement of Disputes 
ANNEX 3 
Trade Polic> Review Mechanism 
ANNEX 4 
Plurilateral Trade Agreements 
Agreement on Trade in Civil Aircraft 
Agreement on Government Procurement 
International Dairy Agreement 
International Bovine Meat Agreement 
Page 20 
Page 21 
ANNEX 1 
ANNEX 1A 
MULTILATERAL AGREEMENTS ON TRADE IN GOODS 
General interpretative note to Annex I A: 
In the event of conflict between a provision of the General Agreement on Tariffs and Trade 1994 
and a provision of another agreement in Annex 1A to the Agreement Establishing the World Trade 
Organization (referred to in the agreements in Annex 1A as the "WTO Agreement"), the provision 
of the other agreement shall prevail to the extent of the conflict. 
Page 22 
Page 23 
GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
1. The General Agreement on Tariffs and Trade 1994 ("GATT 1994") shall consist of: 
(a) the provisions in the General Agreement on Tariffs and Trade, dated 30 October 1947. 
annexed to the Final Act Adopted at the Conclusion of the Second Session of the Preparatory Committee 
of the United Nations Conference on Trade and Employment (excluding the Protocol of Provisional 
Application), as rectified, amended or modified by the terms of legal instruments which have entered 
into force before the date of entry' into force of the WTO Agreement; 
(b) the provisions of the legal instruments set forth below that have entered into force under 
the GATT 1947 before the date of entry into force of the WTO Agreement: 
(i) protocols and certifications relating to tariff concessions; 
(ii) protocols of accession (excluding the provisions (a) concerning provisional 
application and withdrawal of provisional application and (b) providing that 
Part II of GATT 1947 shall be applied provisionally to the fullest extent not 
inconsistent with legislation existing on the date of the Protocol); 
(iii) -decisions on waivers granted under Article XXV of GATT 1947 and still in 
force on the date of entry into force of the WTO Agreement1; 
(iv) other decisions of the CONTRACTING PARTIES to GATT 1947; 
(c) the Understandings set forth below: 
(i) Understanding on the Interpretation of Article II: 1(b) of the General Agreement 
on Tariffs and Trade 1994; 
(ii) Understanding on the Interpretation of Anicle XVII of the General Agreement 
on Tariffs and Trade 1994; 
(iii ) Understanding on Balance-of-Payments Provisions of the General Agreement 
on Tariffs and Trade 1994; 
(iv) Understanding on the Interpretation of Article XXIV of the General Agreement 
on Tariffs and Trade 1994; 
(vi Understanding in Respect of Waivers of Obligations under the General 
Agreement on Tariffs and Trade 1994; 
(vi) Understanding on the Interpretation of Article XXVIII of the General Agreement 
on Tariffs and Trade 1994; and 
'The waivers covered by this provision are listed in footnote 7 on pages 11 and 12 in Part II of document MTN/FA of 
15 December 1993 and in MTN/FA/COIT.6 of 21 March 1994. The Ministerial Conference shall esublish at its first session 
a revised list of waivers covered by this provision that adds any waivers granted under GATT 1947 after 15 December 1993 
and before the date of entry into force of the WTO Agreement, and deletes the waivers which will have expired by that time 
Page 24. 
(d) the Marrakesh Protocol to GATT 1994. 
2. Explanatory Notes 
(a) The references to "contracting party " in the provisions of GATT 1994 shall be deemed 
to read "Member". The references to "less-developed contracting party" and "developed contracting 
party" shall be deemed to read "developing country Member" and "developed country Member". The 
references to "Executive Secretary" shall be deemed to read "Director-General of the WTO". 
(b) The references to the CONTRACTING PARTIES acting jointly in Articles XV : 1, XV : 2. 
XV:8, XXXVIII and the Notes Ad Article XII and XVIII; and in the provisions on special exchange 
agreements in Articles XV:2, XV:3, XV:6, XV:7 and XV:9 of GATT 1994 shall be deemed to be 
references to the WTO. The other functions that the provisions of GATT 1994 assign to the 
CONTRACTING PARTIES acting jointly shall be allocated by the Ministerial Conference. 
(c). (i) The text of GATT 1994 shall be authentic in English, French and Spanish. 
(ii) The text of GATT 1994 in the French language shall be subject to the 
rectifications of terms indicated in Annex A to document MTN.TNC/41. 
(iii) The authentic text of GATT 1994 in the Spanish language shall be the text 
in Volume IV of the Basic Instruments and Selected Documents series, subject to the rectifications 
of terms indicated in Annex B ro document MTN.TNC/41. 
3. (a) The provisions of Part II of G ATT 1994 shall not apply to measures taken by a Member 
under specific mandatory legislation, enacted by that Member before it became a contracting party 
to GATT 1947, that prohibits the use, sale or lease of foreign-built or foreign-reconstructed vessels 
in commercial applications between points in national waters or the waters of an exclusive economic 
zone. This exemption applies to: (a) the continuation or prompt renewal of a non-conforming provision 
of such legislation; and (b) the amendment to a non-conforming provision of such legislation to the 
extent that the amendment does not decrease the conformity of the provision with Pan II of GATT 1947. 
This exemption is limited to measures taken under legislation described above that is notified and 
specified prior to the date of entry into force of the WTO Agreement. If such legislation is subsequently 
modified to decrease its conformity with Part II of GATT 1994, it will no longer qualify for coverage 
under this paragraph 
(b) The Ministerial Conference shall review this exemption not later than five years after 
the date of entry into force of the WTO Agreement and thereafter every two years for as long as the 
exemption is in force for the purpose of examining whether the conditions which created the need for 
the exemption still prevail 
(c) A Member whose measures are covered by this exemption shall annually submit a detailed 
statistical notification consisting of a five-year moving average of actual and expected deliveries of 
relevant vessels as well as additional information on the use. sale, lease or repair of relevant vessels 
covered by this exemption. 
(d) A Member that considers that this exemption operates in such a manner as to justify 
a reciprocal and proportionate limitation on the use, sale, lease or repair of vessels constructed in the 
territory of the Member invoking the exemption shall be free to introduce such a limitation subject 
to prior notification to the Ministerial Conference. 
(e) This exemption is without prejudice to solutions concerning specific aspects of the 
legislation covered by this exemption negotiated in sectoral agreements or in other fora. 
Page 25 
UNDERSTANDING ON THE INTERPRETATION OF ARTICLE H:l(b) 
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
Members hereby agree as follows: 
1. In order to ensure transparency of the legal rights and obligations deriving from paragraph 1(b) 
of Article II, the nature and level of any "other duties or charges" levied on bound tariff items, as 
referred to in that provision, shall be recorded in the Schedules of concessions annexed to GATT 1994 
against the tariff item to which they apply. It is understood that such recording does not change the 
legal character of "other duties or charges". 
2. The date as of which "other duties or charges" are bound, for the purposes of Article II. shall 
be 15 April 1994. "Other duties or charges" shall therefore be recorded in the Schedules ai the levels 
applying on this date. At each subsequent renegotiation of a concession or negotiation of a new 
concession the applicable date for the tariff item in question shall become the date of the incorporation 
of the new concession in the appropriate Schedule. However, the date of the instrument by which 
a concession on any particular tariff item was first incorporated into GATT 1947 or GATT 1994 shall 
also continue to be recorded in column 6 of the Loose-Leaf Schedules. 
3. "Other duties or charges" shall be recorded in respect of all tariff bindings. 
4. Where a tariff item has previously been the subject of a concession, the level of "other duties 
or charges" recorded in the appropriate Schedule shall not be higher than the level obtaining at the 
time of the first incorporation of the concession in that Schedule. It will be open to any Member to 
challenge the existence of an "other duty or charge", on the ground that no such "other duty or charge" 
existed at the time of the original binding of the item in question, as well as the consistency of the 
recorded level of any. "other duty or charge" with the previously bound level, for a period of three 
years after the date of entry into force of the WTO Agreement or three years after the date of deposit 
with the Director-General of the WTO of the instrument incorporating the Schedule in question into 
GATT 1994, if that is a later date. 
5. ' The recording of "other duties or charges" in the Schedules is without prejudice to their 
consistency with rights and obligations under GATT 1994 other than those affected by paragraph 4. 
All Members retain the right to challenge, at any time, the consistency of any "other duty or charge*' 
with such obligations. 
6. For the purposes of this Understanding, the provisions of Articles XXII and XXIII of GATT 1994 
as elaborated and applied by the Dispute Settlement Understanding shall apply. 
7. "Other duties or charges" omitted from a Schedule at the time of deposit of the instrument 
incorporating the Schedule in question into GATT 1994 with, until the date of entry into force of the 
WTO Agreement, the Director-General to the CONTRACTING PARTIES to GATT 1947 or, thereafter, 
with the Director-General of the WTO. shall not subsequently be added to it and any "other duty or 
charge" recorded at a level lower than that prevailing on the applicable date shall not be restored to 
that level unless such additions or changes are made within six months of the date of deposit of .the 
instrument. 
8. The decision in paragraph 2 regarding the date applicable to each concession for the purposes 
of paragraph 1(b) of Article II of GATT 1994 supersedes the decision regarding the applicable date 
taken on 26 March 1980 (BISD 27S/24). 
Page 26 
Page 27 
UNDERSTANDING ON THE INTERPRETATION OF ARTICLE XVII 
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
Members, 
Noting that Anicle XVII provides for obligations on Members in respect of the activities of 
the state trading enterprises referred to in paragraph 1 of Article XVII, which.are required to be 
consistent with the general principles of non-discriminatory treatment prescribed in GATT 1994 for 
governmental measures affecting imports or exports by private traders; 
Noting further that Members are subject to their GATT 1994 obligations in respect of those 
governmental measures affecting state trading enterprises; 
Recognizing that this Understanding is without prejudice to the substantive disciplines prescribed 
in Anicle XVII; 
Hereby agree as follows: 
1 In order to ensure the transparency of the activities of state trading enterprises, Members shall 
notify such enterprises to the Council for Trade in Goods, for review by the working party to be set 
up under paragraph 5. in accordance with the following working definition: 
"Governmental and non-governmental enterprises, including marketing boards, which have 
been granted exclusive or special rights or privileges, including statutory or constitutional 
powers, in the exercise of which they influence through their purchases or sales the level or 
direction of imports or exports." 
This notification requirement does not apply to imports of products for immediate or ultimate 
consumption in governmental use or in use by an enterprise as specified above and not otherwise for 
resale or use in the production of goods for sale. 
2 Each Member shall conduct a review of its policy with regard to the submission of notifications 
on state trading enterprises to the Council for Trade in Goods, taking account of the provisions of this 
Inderstanding. In carrying out such a review, each Member should have regard to the need to ensure 
the maximum transparency possible in its notifications so as to permit a clear appreciation of the manner 
of operation of the enterprises notified and the effect of their operations on international trade. 
3. . Notifications shall be made in accordance with the questionnaire on state trading adopted on 
24 May 1960(BISD 9S/184-185), it being understood that Members shall notify the enterprises referred, 
to in paragraph 1 whether or not imports or exports have in fact taken place. 
4. Any Member which has reason to believe that another Member has not adequately met its 
notification obligation may raise the maner with the Member concerned. If the matter is not satisfactorily 
resolved it may make a counter-notification to the Council for Trade in Goods, for consideration by 
the working party set up under paragraph 5, simultaneously informing the Member concerned. 
5. A working party shall be set up, on behalf of the Council for Trade in Goods, to review 
notifications and counter-notifications. In the light of this review and without prejudice to paragraph 4(c) 
of Article XVTI, the Council for Trade in Goods may make recommendations with regard to the adequacy 
of notifications and the need for further information. The working party shall also review, in the light 
of the notifications received, the adequacy of the above-mentioned questionnaire on state trading and 
the coverage of sute trading enterprises notified under paragraph 1. It shall also develop an illustrative 
Page 28 
list showing the kinds of relationships between governments and enterprises, and the kinds of activities, 
engaged in by these enterprises, which may be relevant for the purposes of Article XVTJ.. It is understood 
that the Secretariat will provide a general background paper for the working party on the operations 
of state trading enterprises as they relate to international trade. Membership of the working party shall 
be open to all Members indicating their wish to serve on it. It shall meet within a year of the date 
of entry into force of the WTO Agreement and thereafter at least once a year. It shall report annually 
to the Council for Trade in Goods.1 
•The activities of this working party shall be coordinated with those of the working group provided for in Section III 
of the Ministerial Decision on Notification Procedures adopted on 15 April 1994. 
Page 29 
UNDERSTANDING ON THE BALANCE-OF-PAYMENTS PROVISIONS 
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
Members, 
Recognizing the provisions of Articles XII and XVIII:B of GATT 1994 and of the Declaration 
on Trade Measures Taken for Balance-of-Payments Purposes adopted on 28 November 1979 
(BISD 26S/205-209, referred to in this Understanding as the "1979 Declaration") and in order to clarify 
such provisions'; 
Hereby agree as follows: 
Application of Measures 
1. Members confirm their commitment to announce publicly, as soon as possible, time-schedules 
for the removal of restrictive import measures taken for balance-of-payments purposes. It is understood 
that such time-schedules may be modified as appropriate to take into account changes in the balance-of-
payments situation. Whenever a time-schedule is not publicly announced by a Member, that Member 
shall provide justification as to the reasons therefor. 
2. Members confirm their commitment to give preference to those measures which have the least 
disruptive effect.on trade. Such measures (referred to in this Understanding as "price-based measures" ) 
shall be understood to include import surcharges, import deposit requirements or other equivalent trade 
measures with an impact on the price of imported goods. It is understood that, notwithstanding the 
provisions of Article II, price-based measures taken for balance-of-payments purposes may be applied 
by a Member in excess of the duties inscribed in the Schedule of that Member. Furthermore, that 
Member shall indicate the amount by which the price-based measure exceeds the bound duty clearly 
and separately under the notification procedures of this Understanding. 
3. Members shall seek to avoid the imposition of new quantitative restrictions for balance-of-
payments purposes unless, because of a critical balance-of-payments situation, price-based measures 
cannot arrest a sharp deterioration in the external payments position. In those cases in which a Member 
applies quantitative restrictions, it shall provide justification as to the reasons why price-based measures 
are not an adequate instrument to deal with the balance-of-payments situation. A Member maintaining 
quantitative restrictions shall indicate in successive consultations the progress made in significantly 
reducing the incidence and restrictive effect of such measures. It is understood that not more than 
one type of restrictive import measure taken for balance-of-payments purposes may be applied on the 
same product. 
4. Members confirm that restrictive import measures taken for balance-of-payments purposes may 
only be applied to control the general level of imports and may not exceed what is necessary to address 
the balance-of-payments situation. In order to minimize any incidental protective effects, a Member 
shall administer restrictions in a transparent manner: The authorities of the importing Member shall 
provide adequate justification as to the criteria used to determine which products are subject to restriction. 
As provided in paragraph 3 of Article XII and paragraph 10 of Article XVIII, Members may, in the 
case of certain essential products, exclude or limit the application of surcharges applied across the board 
'Nothing in this Understanding is intended to modify the rights and obligations of Members under Articles XII or XVrfl:B 
of GATT 1994. The provisions of Articles XXII and XXIIl of GATT 1994 as elaborated and applied by the Dispute Settlement 
Undersunding may be invoked with respect to any matters arising from the application of restrictive impon measures uken 
for balance-of-payments purposes. 
Page 30 
or other measures applied for balance-of-payments purposes. The term "essential products" shall be 
understood to mean products which meet basic consumption needs or which contribute to the Member's 
effort to improve its balance-of-payments situation, such as capital goods or inputs needed for production. 
In the administration of quantitative restrictions, a Member shall use discretionary licensing only when 
unavoidable and shall phase it out progressively. Appropriate justification shall be provided as to the 
criteria used to determine allowable import quantities or values. 
Procedures for Balance-of-Payments Consultations 
5. The Committee on Balance-of-Payments Restrictions (referred to in this Understanding as the 
"Committee") shall carry out consultations in order to review all restrictive import measures taken 
for balance-of-payments purposes. The membership of the Committee is open to all Members indicating 
their wish to serve on it. The Committee shall follow the procedures for consultations on balance-of-
payments restrictions approved on 28 April 1970 (BISD 18S/48-53, referred to in this Understanding 
as "full consultation procedures"), subject to the provisions set out below. 
6. A Member applying new restrictions or raising the general level of its existing restrictions by 
a substantia] intensification of the measures shall enter into consultations with the Committee within 
four months of the adoption of such measures. The Member adopting such measures may request 
that a consultation be held under paragraph 4(a) of Article XII or paragraph 12(a) of Article XVIII 
as appropriate. If no such request has been made, the Chairman of the Committee shall invite the 
Member to hold such a consultation. Factors that may be examined in the consultation would include, 
inter alia, the introduction of new types of restrictive measures for balance-of-payments purposes, 
or an increase in the level or product coverage of restrictions. 
7. All restrictions applied for balance-of-payments purposes shall be subject to periodic review 
in the Committee under paragraph 4(b) of Article XII or under paragraph 12(b) of Article XVIII,subject 
to the possibility of altering the periodicity of consultations in agreement with the consulting Member 
or pursuant to any specific review procedure that may be recommended by the General Council. 
8. Consultations may be held under the simplified procedures approved on 19 December 1972 
(BISD 20S/47-49. referred to in this Understanding as "simplified consultation procedures") in the 
case of least-developed country Members or in the case of developing country Members which are 
pursuing liberalization efforts in conformity with the schedule presented to the Committee in previous 
consultations. Simplified consultation procedures may also be used when the Trade Policy Review 
of a developing country Member is scheduled for the same calendar year as the date fixed for the 
consultations. In such cases the decision as to whether full consultation procedures should be used 
will be made on the basis of the factors enumerated in paragraph 8 of the 1979 Declaration. Except 
in the case of least-developed country Members, no more than two successive consultations may be 
held under simplified consultation procedures. 
Notification and Documentation 
9. A Member shall notify to the General Council the introduction of or any changes in the 
application of restrictive import measures taken for balance-of-payments purposes,'as well as any 
modifications in time-schedules for the removal of such measures as announced under paragraph 1. 
Significant changes shall be notified to the General Council prior to or not later than 30 days after 
their announcement. On a yearly basis, each Member shall make available to the Secretariat a 
consolidated notification, including all changes in laws, regulations, policy statements or public notices, 
for examination by Members. Notifications shall include full information, as far as possible, at the 
tariff-line level, on the type of measures applied, the criteria used for their administration, product 
coverage and trade flows affected. 
Page 31 
10. At the request of any Member, notifications may be reviewed by the Committee. Such reviews 
would be limited to the clarification of specific issues raised by a notification or examination of whether 
a consultation under paragraph 4(a) of Article XII or paragraph 12(a) of Article XVIII is required. 
Members which have reasons to believe that a restrictive import measure applied by another Member 
was taken for balance-of-payments purposes may bring the matter to the attention of the Committee. 
The Chairman of the Committee shall request information on the measure and make it available to 
all Members. Without prejudice to the right of any member of the Committee to seek appropriate 
clarifications in the course of consultations, questions may be submitted in advance for consideration 
by the consulting Member. 
11. The consulting Member shall prepare a Basic Document for the consultations which, in addition 
to any other information considered to be relevant, should include: (a) an overview of the balance-of-
payments situation and prospects, including a consideration of the internal and external factors having 
a bearing on the balance-of-payments situation and the domestic policy measures taken in order to restore 
equilibrium on a sound and lasting basis; (b) a full description of the restrictions applied for balance-of-
payments purposes, their legal basis and steps taken to reduce incidental protective effects; (c) measures 
taken since the last consultation to liberalize import restrictions, in the light of the conclusions of the 
Committee; id) a plan for the elimination and progressive relaxation of remaining restrictions. 
References may be made, when relevant, to the information provided in other notifications or reports 
made to the WTO. Under simplified consultation procedures, the consulting Member shall submit 
a written statement containing essential information on the elements covered by the Basic Document. 
12. The Secretariat shall, with a view to facilitating the consultations in the Committee, prepare 
a factual background paper dealing with the different aspects of the plan for consultations. In the case 
of developing country Members, the Secretariat document shall include relevant background and analytical 
material on the incidence of the external trading environment on the balance-of-payments situation 
and prospects of the consulting Member. The technical assistance services of the Secretariat shall, 
at the request of a developing country Member, assist in preparing the documentation for the 
consultations. 
Conclusions of Balance-of-Payments Consultations 
1? . The Committee shall report on its consultations to the General Council. When full consultation 
procedures have been used, the report should indicate the Committee's conclusions on the different 
elements of the plan for consultations, as well as the facts and reasons on which they are based. The 
Committee shall endeavour to include in its conclusions proposals for recommendations aimed at 
promoting the implementation of Articles XII and XV1ÏI:B, the 1979 Declaration and this Understanding. 
In those cases in which a time-schedule has been presented for the removal of restrictive measures 
taken for balance-of-payments purposes, the General Council may recommend that, in adhering to 
such a time-schedule, a Member shall be deemed to be in compliance with its GATT 1994 obligations. 
Whenever the General Council has made specific recommendations, the rights and obligations of 
Members shall bë assessed in the light of such recommendations. In the absence of specific proposals 
for recommendations by the General Council, the Committee's conclusions should record the different 
views expressed in the Committee When simplified consultation procedures have been used, the report 
shall include a summary of the main elements discussed in the Committee and a decision on whether 
full consultation procedures are required. 
Page 32 
Page 33 
UNDERSTANDING ON THE INTERPRETATION OF ARTICLE XXTV 
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
Members, 
Having regard to the provisions of Article XXIV of GATT 1994; 
Recognizing that customs unions and free trade areas have greatly increased in number and 
importance since the establishment of GATT 1947 and today cover a significant proportion of world 
trade; 
Recognizing the contribution to the expansion of world trade that may be made by closer 
integration between the economies of the parties tö such agreements; 
Recognizing also that such contribution is increased if the elimination between the constituent 
territories of duties and other restrictive regulations of commerce extends to all trade, and diminished 
if any major sector of trade is excluded; 
Reaffirming that the purpose of such agreements should be to facilitate trade between the 
constituent territories and not to raise barriers to the trade of other Members with such territories; 
and that in their formation or enlargement the parties to them should to the greatest possible extent 
avoid creating adverse effects on the trade of other Members; 
Convinced also of the need to reinforce the effectiveness of the role of the Council for Trade 
in Goods in reviewing agreements notified under Article XXIV, by clarifying the criteria and procedures 
for the assessment of new or enlarged agreements, and improving the transparency of all Article XXIV 
agreements; 
Recognizing the need for a common understanding of the obligations of Members under 
paragraph 12 of Article XXIV; 
Hereby agree as follows: 
. i 
1. Customs unions, free-trade areas, and interim agreements leading to the formation of a customs 
union or free-trade area, to be consistent with Article XXIV, must satisfy, inter alia, the provisions 
of paragraphs 5, 6, 7 and 8 of that Article. 
Article XXIV.5 
2. The evaluation under paragraph 5(a) of Article XXIV of the general incidence of the duties 
and other regulations of commerce applicable before and after the formation of a customs union shall 
in respect of duties and charges be based upon an overall assessment of weighted average tariff rates 
and of customs duties collected. This assessment shall be based on import statistics for a previous 
representative period to be supplied by the customs union, on a tariff-line basis and in values and 
quantities, broken down by WTO country of origin. The Secretariat shall compute the weighted average 
tariff rates and customs duties collected in accordance with the methodology used in the assessment 
of tariff offers in the Uruguay Round of Multilateral Trade Negotiations. For this purpose, the duties 
and charges to be taken into consideration shall be the applied rates of duty. It is recognized that for 
the purpose of the overall assessment of the incidence of other regulations of commerce for which 
quantification and aggregation are difficult, the examination of individual measures, regulations, products 
covered and trade flows affected may be required: 
Page 34 
3. The "reasonable length of time" referred to in paragraph 5(c) of Article XXIV should exceed 
10 years only in exceptional cases. In cases where Members parties to an interim agreement believe 
that 10 years would be insufficient they shall provide a full explanation to the Council for Trade in 
Goods of the need for a longer period. 
Article XXIV:6 
4. Paragraph 6 of Article XXIV establishes the procedure to be followed when a Member forming 
a customs union proposes to increase a bound rate of duty. In this regard Members reaffirm that the 
procedure set forth in Article XXVIIl, as elaborated in the guidelines adopted on 10 November 1980 
(BISD 27S/26-28) and in the Understanding on the Interpretation of Article XXVIIl of GATT 1994, 
must be commenced before tariff concessions are modified or withdrawn upon the formation of a customs 
union or an interim agreement leading to the formation of a customs union. 
5. These negotiations will be entered into in good faith with a view to achieving mutually 
satisfactory compensatory adjustment. In such negotiations, as required by paragraph 6 of Article XXTV, 
due account shall be taken of reductions of duties on the same tariff line made by other constituents 
of the customs union upon its formation. Should such reductions not be sufficient to provide the 
necessary compensatory adjustment, the customs union would offer compensation, which may take 
the form of reductions of duties on other tariff lines. Such an offer shall be taken into consideration 
by the Members having negotiating rights in the binding being modified or withdrawn. Should the 
compensatory adjustment remain unacceptable, negotiations should be continued. Where, despite such 
efforts, agreement in negotiations on compensatory adjustment under Article XXVIIl as elaborated 
by the Understanding on the Interpretation of Article XXVIIl of GATT 1994 cannot be reached within 
a reasonable period from the initiation of negotiations, the customs union shall, nevertheless, be free 
to modify or withdraw the concessions; affected Members shall then be free to withdraw substantially 
equivalent concessions in accordance with Article XXVIIl. 
6. GATT 1994 imposes no obligation on Members benefiting from a reduction of duties consequent 
upon the formation of a customs union, or an interim agreement leading to the formation of a customs 
union, to provide compensatory adjustment to its constituents. 
Review of Customs Unions and Free-Trade Areas 
7. All notifications made under paragraph 7(a) of Article XXIV shall be examined by a working 
party in the light of the relevant provisions of GATT 1994 and of paragraph 1 of this Understanding.. 
The working party shall submit a report to the Council for Trade in Goods on its findings in this regard. 
The Council for Trade in Goods may make such recommendations to Members as it deems appropriate. 
8 In regard to interim agreements, the working party may in its report make appropriate 
recommendations on the proposed time-frame and on measures required to complete the formation 
of the customs union or free-trade area It may if necessary provide for further review of the agreement. 
9. Members parties to an interim agreement shall notify' substantial changes in the plan and schedule 
included in that agreement to the Council for Trade in Goods and, if so requested, the Council shall 
examine the changes. 
10. Should an interim agreement notified under paragraph 7(a) of Article XXIV not include a plan 
and schedule, contrary to paragraph 5(c) of Article XXIV. the working party shall in its report 
recommend such a plan and schedule. The parties shall not maintain or put into force, as the case 
may be, such agreement if they are not prepared to modify it in accordance with these recommendations. 
Provision shall be made for subsequent review of the implementation of the recommendations. 
Page 35 
11. Customs unions and constituents of free-trade areas shall report periodically to the Council 
for Trade in Goods, as envisaged by the CONTRACTING PARTIES to GATT 1947 in their instruction 
to the GATT 1947 Council concerning reports on regional agreements (BISD 18S/38), on the operation 
of the relevant agreement. Any significant changes and/or developments in the agreements should 
be reported as they occur. 
Dispute Settlement 
12. The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the 
Dispute Settlement Understanding may be invoked with respect to any matters arising from the application 
of those provisions of Article XXIV relating to customs unions, free-trade areas or interim agreements 
leading to the formation of a customs union or free-trade area. 
Article XXIV.I2 
13. Each Member is fully responsible under GATT 1994 for the observance of all provisions of 
GATT 1994. and shall take such reasonable measures as may be available to it to ensure such observance 
by regional and local governments and authorities within its territory. 
14. The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the 
Dispute Settlement Understanding may be invoked in respect of measures affecting its observance taken 
by regional or local governments or authorities within the territory of a Member. When the Dispute 
Settlement Body has ruled that a provision of GATT 1994 has not been observed, the responsible Member 
shall take such reasonable measures as may be available to it to ensure its observance. The provisions 
relating to compensation and suspension of concessions or other obligations apply in cases where it 
has not been possible to secure such observance. 
15. Each Member undertakes to accord sympathetic consideration to and afford adequate opportunity 
for consultation regarding any representations made by another Member concerning measures affecting 
the operation of GATT 1994 taken within the territory' of the former. 
Page 36 
Page 37 
UNDERSTANDING IN RESPECT OF WAIVERS OF OBLIGATIONS 
UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
Members hereby agree as follows: 
1. A request for a waiver or for an extension of an existing waiver shall describe the measures 
which the Member proposes to take, the specific policy objectives which the Member seeks to pursue 
and the reasons which prevent the Member from achieving its policy objectives by measures consistent 
with its obligations under GATT 1994. 
2. Any waiver in effect on the date of entry into force of the WTO Agreement shall terminate, 
unless extended in accordance with the procedures above and those of Article IX of the WTO Agreement, 
on the date of its expiry or two years from the date of entry into force of the WTO Agreement, 
whichever is earlier. 
3. Any Member considering that a benefit accruing to it under GATT 1994 is being nullified or 
impaired as a result of 
(a) the failure of the Member to whom a waiver was granted to observe the terms or 
conditions of the waiver, or 
(b) the application of a measure consistent with the terms and conditions of the waiver 
may invoke the provisions of Article XXIIl of GATT 1994 as elaborated and applied by the Dispute 
Settlement Understanding. 
Page 38 
Page 39 
UNDERSTANDING ON THE INTERPRETATION OF ARTICLE XXVIIl 
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
Members hereby agree as follows: 
1. For the purposes of modification or withdrawal of a concession, the Member which has the 
highest ratio of exports affected by the concession (i.e. exports of the product to the market of the 
Member modifying or withdrawing the concession) to its total exports shall be deemed to have a principal 
supplying interest if it does not already have an initial negotiating right or a principal supplying interest 
as provided for in paragraph 1 of Article XXVIIl. It is however agreed that this paragraph will be 
reviewed by the Council for Trade in Goods five years from the date of entry into force of the WTO 
Agreement with a view to deciding whether this criterion has worked satisfactorily in securing a 
redistribution of negotiating rights in favour of small and medium-sized exporting Members. If this 
is not the case, consideration will be given to possible improvements, including, in the light of the 
availability of adequate data, the adoption of a criterion based on the ratio of exports affected by the 
concession to exports to all markets of the product in question. 
2. Where a Member considers that it has a principal supplying interest in terms of paragraph 1, 
it should communicate its claim in writing, with supporting evidence, to the Member proposing to 
modify or withdraw a concession, and at the same time inform the Secretariat. Paragraph 4 of the 
"Procedures for Negotiations under Article XXVIIl" adopted on 10 November 1980 (BISD 27S/26-28) 
shall apply in these cases. 
3 In the determination of which Members have a principal supplying interest (whether as provided 
for in paragraph 1 above or in paragraph 1 of Article XXVIIl) or substantial interest, only trade in 
the affected product which has taken place on an MFN basis shall be taken into consideration. However, 
trade in the affected product which has taken place under non-contractual preferences shall also be 
taken into account if the trade in question has ceased to benefit from such preferential treatment, thus 
becoming MFN trade, at the time of the negotiation for the modification or withdrawal of the concession, 
or will do so by the conclusion of that negotiation. 
4 When a tariff concession is modified or withdrawn on a new product (i.e. a product for which 
three years' trade statistics are not available) the Member possessing initial negotiating rights ort the 
tariff line where the product is or was formerly classified shall be deemed to have an initial negotiating 
right in the concession in question. The determination of principal supplying and substantial interests 
and the calculation of compensation shall take into account, inter alia, production capacity and investment 
in the affected product in the exporting Member and estimates of export growth, as well as forecasts 
of demand for the product in the importing Member. For the purposes of this paragraph, "new product" 
is understood to include a tariff item created by means of a breakout from an existing tariff line. 
5 Where a Member considers that it has a principal supplying or a substantial interest in. terms 
of paragraph 4. it should communicate its claim in writing, with supporting evidence, to the Member 
proposing to modify or withdraw a concession, and at the same time inform the Secretariat. Paragraph 4 
of the above-mentioned "Procedures for Negotiations under Article XXVIIl" shall apply in these cases. 
6. When an unlimited tariff concession is replaced by a tariff rate quota, the amount of compensation 
provided should exceed the amount of the trade actually affected by the modification of the concession. 
The basis for the calculation of compensation should be the amount by which future trade prospects 
Page 40 
exceed the level of the quota. It is understood that the calculation of future trade prospects should 
be based on the greater of: 
(a) the average annual trade in the most recent representative three-year period, increased 
by the average annual growth rate of imports in that same period, or by 10 per cent, 
whichever is the greater; or 
(b) trade in the most recent year increased by 10 per cent. 
In no case shall a Member's liability for compensation exceed that which would be entailed by complete 
withdrawal of the concession. 
7. Any Member having a principal supplying interest, whether as provided for in paragraph 1 
above or in paragraph 1 of Article XXVIIl, in a concession which is modified or withdrawn shall be 
accorded an initial negotiating right in the compensatory concessions, unless another form of 
compensation is agreed by the Members concerned. 
Page 41 
MARRAKESH PROTOCOL TO THE 
GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
Members, 
Having carried out negotiations within the framework of GATT 1947, pursuant to the Ministerial 
Declaration on the Uruguay Round, 
Hereby agree as follows: 
1. The schedule annexed to this Protocol relating to a Member shall become a Schedule to 
GATT 1994 relating to that Member on the day on which the WTO Agreement enters into force for 
that Member. Any schedule submitted in accordance with the Ministerial Decision on measures in 
favour of least-developed countries shall be deemed to be annexed to this Protocol. 
2. The tariff reductions agreed upon by each Member shall be implemented in five equal rate 
reductions, except as may be otherwise specified in a Member's Schedule. The first such reduction 
shall be made effective on the date of entry into force of the WTO Agreement, each successive reduction 
shall be made effective on 1 January of each of the following years, and the final rate shall become 
effective no later than the date four years after the date of entry into force of the WTO Agreement, 
except as may be otherwise specified in that Member's Schedule. Unless otherwise specified in its 
Schedule, a Member that accepts the WTO Agreement after its entry into force shall, on the date that 
Agreement enters into force for it, make effective all rate reductions that have already taken place 
together with the reductions which it would under the preceding sentence have been obligated to make 
effective on 1 January of the year following, and shall make effective all remaining rate reductions 
on the schedule specified in the previous sentence. The reduced rate should in each stage be rounded 
off to the first decimal. For agricultural products, as defined in Article 2 of the Agreement on 
Agriculture, the staging of reductions shall be implemented as specified in the relevant parts of the 
schedules. 
3. The implementation of the concessions and commitments contained in the schedules annexed 
to this Protocol shall, upon request, be subject to multilateral examination by the Members. This would 
be without prejudice to the rights and obligations of Members under Agreements in Annex 1A of the 
WTO Agreement. 
4. After the schedule annexed to this Protocol relating to a Member has become a Schedule to 
GATT 1994 pursuant to the provisions of paragraph 1. such Member shall be free at any time to withhold 
or to withdraw in whole or in part the concession in such Schedule with respect to any product for 
which the principal supplier is any other Uruguay Round participant the schedule of which has not 
yet become a Schedule to GATT 1994. Such action can, however, only be taken after written notice 
of any such withholding or withdrawal of a concession has been given to the Council for Trade in Goods 
and after consultations have been held, upon request, with any Member, the relevant schedule relating 
to which has become a Schedule to GATT 1994 and which has a substantial interest in the product 
involved. Any concessions so withheld or withdrawn shall be applied on and after the day on which 
the schedule of the Member which has the principal supplying interest becomes a Schedule to 
GATT 1994. 
5. (a) Without prejudice to the provisions of paragraph 2 of Article 4 of the Agreement on 
Agriculture, for the purpose of the reference in paragraphs l:(b) and 1(c) of Article 
II of GATT 1994 to the date of that Agreement, the applicable date in respect of each 
product which is the subject of a concession provided for in a schedule of concessions 
annexed to this Protocol shall be the date of this Protocol. 
Page 42 
(b) For the purpose of the reference in paragraph 6(a) of Article II of GATT 1994 to the 
date of that Agreement, the applicable date in respect of a schedule of concessions 
annexed to this Protocol shall be the date of this Protocol. 
6. In cases of modification or withdrawal of concessions relating to non-tariff measures as contained 
in Part III of the schedules, the provisions of Article XXVIIl of GATT 1994 and the "Procedures for 
Negotiations under Article XXVIH" adopted on 10 November 1980 (BISD 27S/26-28) shall apply. 
This would be without prejudice to the rights and obligations of Members under GATT 1994. 
7. In each case in which a schedule annexed to this Protocol results for any product in treatment 
less favourable than was provided for such product in the Schedules of GATT 1947 prior to the entry 
into force of the WTO Agreement, the Member to whom the schedule relates shall be deemed to have 
uken appropriate action as would have been otherwise necessary under the relevant provisions of 
Article XXVIIl of GATT 1947 or 1994. The provisions of this paragraph shall apply only to Egypt, 
Peru, South Africa and Uruguay. 
8. The Schedules annexed hereto are authentic in the English, French or Spanish language as 
specified in each Schedule. 
9. The date of this Protocol is 15 April 1994. 
[The agreed schedules of participants will be annexed to the Marrakesh Protocol in the treaty copy 
of the WTO Agreement] 
Page 43 
AGREEMENT ON AGRICULTURE 
Members, 
Having decided to esublish a basis for initiating a process of reform of trade in agriculture 
in line with the objectives of the negotiations as set out in the Puma del Este Declaration; 
Recalling that their long-term objective as agreed at the Mid-Term Review of the Uruguay 
Round "is to establish a fair and market-oriented agriculturaltrading system and that a reform process 
should be initiated through the negotiation of commitments on support and protection and through the 
establishment of strengthened and more operationally effective GATT rules and disciplines"; 
Recalling further that "the above-mentioned long-term objective is to provide for substantial 
progressive reductions in agricultural support and protection sustained over an agreed period of time, 
resulting in correcting and preventing restrictions and distortions in world agricultural markets"; 
Committed to achieving specific binding commitments in each of the following areas: market 
access; domestic support; export competition; and to reaching an agreement on sanitary and 
phytosanitary issues; 
Having agreed that in implementing their commitments on market access, developed country 
Members would take fully into account the particular needs and conditions of developing country 
Members by providing for a greater improvement of opportunities and terms of access for agricultural 
products of particular interest to these Members, including the fullest liberalization of trade in tropical 
agricultural products as agreed at the Mid-Term Review, and for products of particular importance 
to the diversification of production from the growing of illicit narcotic crops; 
Noting that commitments under the reform programme should be made in an equitable way 
among all Members, having regard to non-trade concerns, including food security and the need to protect 
the environment; having regard to the agreement that special and differential treatment for developing 
countries is an integral element of the negotiations, and taking into account the possible negative effects 
ofthe implementation of the reform programme on least-developed and net food-importing developing 
countries. 
Hereby agree as follows: 
Parti 
Article I 
Definition of Terms 
In this Agreement, unless the context otherwise requires: 
(a) "Aggregate Measurement of Support" and "AMS" mean the annual level of support, 
expressed in monetary terms, provided for an agricultural product in favour of the 
producers of the basic agricultural product or non-product-specific support provided 
in favour of agricultural producers in general, other than support provided under 
programmes that qualify as exempt from reduction under Annex 2 to this Agreement, 
which is: 
Page 44 
(i) with respect to support provided during the base period, specified in the relevant 
tables of supporting material incorporated by reference in Part IV of a Member's 
Schedule; and 
(ii) with respect to support provided during any year of the implemenution period 
and thereafter, calculated in accordance with the provisions of Annex 3 of this 
Agreement and taking into account the constituent dau and methodology used 
in the ubles of supporting material incorporated by reference in Part IV of 
the Member's Schedule; 
(b) "basic agricultural product" in relation to domestic support commitments is defined 
as the product as close as practicable to the point of first sale as specified in a Member's 
Schedule and in the related supporting material; 
(c) "budgeury outlays" or "outlays" includes revenue foregone; 
(d) "Equivalent Measurement of Support" means the annual level of support, expressed 
in monetary terms, provided to producers of a basic agricultural product through the 
application of one or more measures, the calculation of which in accordance with the 
AMS methodology is impracticable, other than support provided under programmes 
that qualify- as exempt from reduction under Annex 2 to this Agreement, and which 
is: 
(i) with respecr to support provided during the base period, specified in the relevant 
ubles of supporting material incorporated by reference in Part IV of a Member's 
Schedule; and 
(ii) with respect to support provided during any year ofthe implementation period 
and thereafter, calculated in accordance with the provisions of Annex 4 of this 
Agreement and taking into account the constituent data and methodology used 
in the tables of supporting material incorporated by reference in Part IV of 
the Member's Schedule: 
(e) "export subsidies" refers to subsidies contingent upon export performance, including 
the export subsidies listed in Article 9 of this Agreement; 
(0 "implemenution period" means the six-year period commencing in the year 1995. except 
that, for the purposes of Article 13, it means the nine-year period commencing in 1995; 
(g) "market access concessions" includes all market access commitments undertaken pursuant 
to this Agreement; 
(h) "Total Aggregate Measurement of Support" and "Total AMS" mean the sum of all 
domestic support provided in favour of agricultural producers, calculated as the sum 
of all aggregate measurements of support for basic agricultural products, all non-product-
specific aggregate measurements of support and all equivalent measurements of support 
for agricultural products, and which is: 
(i) with respect to support provided during the base period (i.e. the "Base Total 
AMS") and the maximum support permitted to be provided during any year 
of the implemenution period or thereafter (i.e. the "Annual and Final Bound 
Commitment Levels"), as specified in Part IV of a Member's Schedule; and 
Page 45 
(ii) with respect to the level of support actually provided during any year of the 
implementation period and thereafter (i.e. the "Current Total AMS"), calculated 
in accordance with the provisions of this Agreement, including Article 6, and 
with thé constituent data and methodology used in the tables of supporting 
material incorporated by reference in Part IV ofthe Member's Schedule; 
(i) "year" in paragraph (f) above and in relation to the specific commitments of a Member 
refers to the calendar, financial or marketing year specified in the Schedule relating 
to that Member. 
Article 2 
Product Coverage 
This Agreement applies to the products listed in Annex 1 to this Agreement, hereinafter referred 
to as agricultural products. 
Part II 
Article 3 
Incorporation of Concessions and Commitments 
1. The domestic support and export subsidy commitments in Part IV of each Member's Schedule 
constitute commitments limiting subsidization and are hereby made an integral part of GATT 1994. 
2. Subject to the provisions of Article 6, a Member shall not provide support in favour of domestic 
producers in excess of the commitment levels specified in Section I of Part IV of its Schedule. 
3. Subject to the provisions of paragraphs 2(b) and 4 of Article 9, a Member shall not provide 
export subsidies listed in paragraph 1 of Article 9 in respect of the agricultural products or groups 
of products specified in Section II pf Part IV of its Schedule in excess of the budgetary outlay and 
quantity commitment levels specified therein and shall not provide such subsidies in respect of any 
agricultural product not specified in that Section of its Schedule. 
Part III 
Article 4 
Market Access 
1. Market access concessions contained in Schedules relate to bindings and reductions of tariffs, 
and to other market access commitments as specified therein. 
Page 46 
2. Members shall not maintain, resort to, or revert to any measures of the kind which have been 
required to be converted into ordinary customs duties', except as otherwise provided for in Article 5 
and Annex 5. 
Article 5 
Special Safeguard Provisions 
1. Notwithstanding the provisions of paragraph 1(b) of Article II of GATT 1994, any Member 
may take recourse to the provisions of paragraphs 4 and 5 below in connection with the importation 
of an agricultural product, in respect of which measures referred to in paragraph 2 of Article 4 of this 
Agreement have been converted into an ordinary customs duty and which is designated in its Schedule 
with the symbol "SSG" as being the subject of a concession in respect of which the provisions of this 
Article may be invoked, if: 
(a) the volume of imports of that product entering the customs territory of the Member 
granting the concession during any year exceeds a trigger level which relates to the 
existing market access opportunity as set out in paragraph 4; or, but not concurrently: 
(b) the price at which imports ofthat product may enter the customs territory ofthe Member 
granting the concession, as determined on the basis of the c.i.f. import price of the 
shipment concerned expressed in terms of its domestic currency, falls below a trigger 
price equal to the average 1986 to 1988 reference price2 for the product concerned. 
2. Imports under current and minimum access commitments established as part of a concession 
referred to in paragraph 1 above shall be counted for the purpose of determining the volume of imports 
required for invoking the provisions of subparagraph) 1(a) and paragraph 4, but imports under such 
commitments shall not be affected by any additional duty imposed under either subparagraph 1(a) and 
paragraph 4 or subparagraph 1(b) and paragraph 5 below. 
3. Any supplies of the product in question which were en route on the basis of a contract settled 
before the additional duty is imposed under subparagraph 1(a) and paragraph 4 shall be exempted from 
any such additional duty, provided that they may be counted in the volume of imports ofthe product 
in question during the following year for the purposes of triggering the provisions of subparagraph 1(a) 
in that year. 
4 Any additional duty imposed under subparagraph 1(a) shall only be maintained until the end 
of the year in which it has been imposed, and may only be levied at a level which shall not exceed 
one third of the level of the ordinary customs duty in effect in the year in which the action is taken. 
The trigger level shall be set according to the following schedule based on market access opportunities 
'These measures include quantitative impon restrictions, variable import levies, minimum import prices, discretionary 
import licensing, non-tariff measures maintained through state-trading enterprises, voluntary export restraints, and similar 
border measures other than ordinary customs duties, whether or not the measures are maintained under country-specific 
derogations from the provisions of GATT 1947. hut not measures maintained under balance-of-payments provisions or under 
other general, non-agnculture-specific provisions of GATT 1994 or of the other Multilateral Trade Agreements in Annex 1A 
to the WTO Agreement. 
'The reference price used to invoke the provisions of this subparagraph shall, in general, be the average c.i.f. unit value 
of the product concerned, or otherwise shall be an appropriate price in terms of the quality of the product and its stage of 
processing. It shall, following its initial use. be publicly specified and available to the extent necessary to allow other Members 
to assess the additional duty that may be levied. 
Page 47 
defined as imports as a percenuge ofthe corresponding domestic consumption3 during the three preceding 
years for which data are available: 
(a) where such market access opportunities for a product are less than or equal to 10 per 
cent, the base trigger level shall equal 125 per cent; 
(b) where such market access opportunities for a product are greater than 10 per cent but 
less than or equal to 30 per cent, the base trigger level shall equal 110 per cent; 
(c) where'such market access opportunities for a product are greater than 30 per cent, 
the base trigger level shall equal 105 per cent. 
In all cases the additional duty may be imposed in any year where the absolute volume of imports 
ofthe product concerned entering the customs territory ofthe Member granting the concession exceeds 
the sum of (.r) the base trigger level set out above multiplied by the average quantity of imports during 
the three preceding years for which data are available and (y) the absolute volume change in domestic 
consumption of the product concerned in the most recent year for which dau are available compared 
to the preceding year, provided that the trigger level shall not be less than 105 per cent ofthe average 
quantity of imports in (x) above. 
5. The additional duty imposed under subparagraph 1(b) shall be set according to the following 
schedule: 
(a) if the difference between the c.i.f. import price of the shipment expressed in terms 
ofthe domestic currency (hereinafter referredto as the "import price") and the trigger 
price as defined under that subparagraph is less than or equal to 10 per cent of the 
trigger price, no additional duty shall be imposed; 
(b) if the difference between the import price and the trigger price (hereinafter referred 
to as the "difference") is greater than 10 per cent but less than or equal to 40 per cent 
of the trigger price, the additional duty shall equal 30 per cent of the amount by which 
the difference exceeds 10 per cent; 
(o if the difference is greater than 40 per cent but less than or equal to 60 per cent of 
the trigger price, the additional duty shall equal 50 per cent of the amount by which 
the difference exceeds 40 per cent, plus the additional duty allowed under (b); 
(d) if the difference is greater than 60 per cent but less than or equal to 75 per cent, the 
additional duty shall equal 70 per cent ofthe amount by which the difference exceeds 
60 per cent of the trigger price, plus the additional duties allowed under (b) and (c); 
ie) if the difference is greater than 75 per cent of the trigger price, the additional duty 
shall equal 90 per cent of the amount by which the difference exceeds 75 per cent, 
plus the additional duties allowed under (b), (c) and (d). 
6. For perishable and seasonal products, the conditions set out above shall be applied in such 
a manner as to take account of the specific characteristics of such products. In particular, shorter time 
periods under subparagraph 1(a) and paragraph 4 may be used in reference to the corresponding periods 
in the base period and different reference prices for different periods may be used under 
subparagraph 1(b). 
'Where domestic consumption is not taken into account, the base trigger level under subparagraph 4(a) shall apply. 
Page 48 
7. The operation of the special safeguard shall be carried out in a transparent manner. Any Member 
taking action under subparagraph 1(a) above shall give notice in writing, including relevant data, to 
the Committee bn Agriculture as far in advance as may be practicable and in any event within 10 days 
ofthe implemenution of such action. In cases where changes in consumption volumes must be allocated 
to individual tariff lines subject to action under paragraph 4, relevant data shall include the information 
and methods used to allocate these changes. A Member taking action under paragraph 4 shall afford 
any interested Members the opportunity to consult with it in respect ofthe conditions of application 
of such action. Any Member taking action under subparagraph 1(b) above shall give notice in writing, 
including relevant dau, to the Committee on Agriculture within 10 days ofthe implementation ofthe 
first such action or, for perishable and seasonal products, the first action in any period. Members 
undertake, as far as practicable, not to take recourse to the provisions of subparagraph 1(b) where 
the volume of imports of the products concerned are declining. In either case a Member taking such 
action shall afford any interested Members the opportunity to consult with it in respect ofthe conditions 
of application of such action. 
8. Where measures are uken in conformity with paragraphs 1 through 7 above, Members undertake 
not to have recourse, in respect of such measures, to the provisions of paragraphs 1(a) and 3 of Article 
XIX of GATT 1994 or paragraph 2 of Article 8 of the Agreement on Safeguards. 
9. The provisions of this Article shall remain in force for the duration ofthe reform process as 
determined under Article 20. 
Part IV 
Article 6 
Domestic Support Commitments 
1. The domestic support reduction commitments of each Member contained in Pan IV of its 
Schedule shall apply to all of its domestic support measures in favour of agricultural producers with 
the exception of domestic measures which are not subject to reduction in terms ofthe criteria set out 
in this Article and in Annex 2 to this Agreement. The commitments are expressed in terms of Total 
Aggregate Measurement of Support and "Annual and Final Bound Commitment Levels". 
2. In accordance with the Mid-Term Review Agreement that government measures of assistance, 
whether direct or indirect, to encourage agricultural and rural development are an integral part of the 
development programmes of developing countries, investment subsidies which are generally available 
to agriculture in developing country Members and agricultural input subsidies generally available to 
low-income or resource-poor producers in developing country Members shall be exempt from domestic 
support reduction commitments that would otherwise be applicable to such measures, as shall domestic 
support to producers in developing country Members to encourage diversification from growing illicit 
narcotic crops Domestic support meeting the criteria of this paragraph shall not be required to bu 
included in a Member's calculation of its Current Total AMS. 
3. A Member shall be considered to be in compliance with its domestic support reduction 
commitments in any year in which its domestic support in favour of agricultural producers expressed 
in terms of Current Total AMS does not exceed the corresponding annual or final bound commitment 
level specified in Part IV of the Member's Schedule. 
4. (a) A Member shall not be required to include in the calculation of its Current Total AMS 
and shall not be required to reduce: 
Page 49 
(i) product-specific domestic support which would otherwise be required to be 
included in a Member's calculation of its Current AMS where such support 
does not exceed 5 per cent of that Member's total value of production of a 
basic agricultural product during the relevant year; and 
(ii) non-product-specific domestic support which would otherwise be required to 
be included in a Member's calculation of its Current AMS where such support 
does not exceed 5 per cent of the value of that Member's total agricultural 
production. 
(b) For developing country Members, the de minimis percenuge under this paragraph shall 
be 10 per cent. 
5. (a) Direct payments under production-limiting programmes shall not be subject to the 
commitment to reduce domestic support if: 
(i) such payments are based on fixed area and yields; or 
(ii) such payments are made on 85 per cent or less ofthe base level of production; 
or 
(iii) livestock payments are made on a fixed number of head. 
(b) The exemption from the reduction commitment for direct payments meeting the above 
criteria shall be reflected by the exclusion of the value of those direct payments in a 
Member's calculation of its Current Total AMS. 
Article 7 
General Disciplines on Domestic Support 
1. Each Member shall ensure that any domestic support measures in favour of agricultural producers 
which are not subject to reduction commitments because they qualify' under the criteria set out in Annex 2 
to this Agreement are maintained in conformity therewith. 
2. (a) Any domestic support measure in favour of agricultural producers, including any 
modification to such measure, and any measure that is subsequently introduced that 
cannot be shown to satisfy the criteria in Annex 2 to this Agreement or to be exempt 
from reduction by reason of any other provision of this Agreement shall.be included 
in the Member's calculation of its Current Total AMS. 
(b) Where no Total AMS commitment exists in Part IV of a Member's Schedule, the 
Member shall not provide support to agricultural producers in excess of the relevant 
de minimis level set out in paragraph 4 of Article 6. 
Page 50 
Part V 
Article 8 
Export Competition Commitments 
Each Member undertakes not to provide export subsidies otherwise than in conformity with 
this Agreement and with the commitments as specified in that Member's Schedule. 
Article 9 
Export Subsidy Commitments 
The following export subsidies are subject to reduction commitments under this Agreement: 
(a) the provision by governments or their agencies of direct subsidies, including payments-
in-kind, to a firm, to an industry, to producers of an agricultural product, to a 
cooperative or other association of such producers, or to a marketing board, contingent 
on export performance; 
(b) the sale or disposal for export by governments or their agencies of non-commercial 
stocks of agricultural products at a price lower than the comparable price charged for 
the like product to buyers in the domestic market; 
(c) payments on the export of an agricultural product that are financed by virtue of 
governmental action, whether or not a charge on the public account is involved, 
including payments that are financed from the proceeds of a levy imposed on the 
agricultural product concerned or on an agricultural product from which the exported 
product is derived; 
(d) the provision of subsidies to reduce the costs of marketing exports of agricultural 
products (other than widely available export promotion and advisory services) including 
handling, upgrading and other processing costs, and the costs of international transport 
and freight; 
(e) internal transport and freight charges on export shipments, provided or mandated by 
governments, on terms more favourable than for domestic shipments; 
(f) subsidies on agricultural products contingent on their incorporation in exported product* 
ta) Except as provided in subparagraph (b). the export subsidy commitment levels for eac 
year of the implementation period, as specified in a Member's Schedule, represer 
with respect to the export subsidies listed in paragraph 1 of this Article: 
(i) in the case of budgetary outlay reduction commitments, the maximum level 
of expenditure for such subsidies that may be allocated or incurred in that year 
in respect of the agricultural product, or group of products, concerned; and 
(ii) in the case of export quantity reduction commitments, the maximum quantity 
of an agricultural product, or group of products, in respect of which such export 
subsidies may be granted in that year. 
Page 51 
(b) In any of the second through fifth years of the implemenution period, a Member may 
provide export subsidies listed in paragraph 1 above in a given year in excess of the 
corresponding annual commitment levels in respect ofthe products or groups of products 
specified in Part IV of the Member's Schedule, provided that: 
(i) the cumulative amounts of budgetary outlays for such subsidies, from the 
beginning ofthe implemenution period through the year in question, does not 
exceed the cumulative amounts that would have resulted from full compliance 
with the relevant annual outlay commitment levels specified in the Member's 
Schedule by more than 3 per cent of the base period level of such budgeury 
outlays; 
(ii) the cumulative quantities exported with the benefit of such export subsidies, 
from the beginning ofthe implemenution period through the year in question, 
does not exceed the cumulative quantities that would have resulted from full 
compliance with the relevant annual quantity commitment levels specified in 
the Member's Schedule by more than 1.75 per cent of the base period quantities; 
(iii) the total cumulative amounts of budgeury outlays for such export subsidies 
and the quantities benefiting from such export subsidies over the entire 
implementation period are no greater than the totals that would have resulted 
from full compliance with the relevant annual commitment levels specified 
in the Member's Schedule; and 
(iv) the Member's budgeury outlays for export subsidies and the quantities 
benefiting from such subsidies, at the conclusion ofthe implementation period, 
are no greater than 64 per cent and 79 percent ofthe 1986-1990 base period 
levels, respectively. For developing country Members these percentages shall 
be 76 and 86 per cent, respectively. 
3 Commitments relating to limiutions on the extension of the scope of export subsidization are 
as specified in Schedules. 
4. During the implementation period, developing country Members shall not be required to 
undertake commitments in respect ofthe export subsidies listed in subparagraphs (d) and (e) of paragraph 
1 above, provided that these are not applied in a manner that would circumvent reduction commitments. 
Article 10 
Prevention of Circumvention of Export Subsidy Commitments 
1. Export subsidies not listed in paragraph 1 of Article 9 shall not be applied in a manner which 
results in. or which threatens to lead to, circumvention of export subsidy commitments; nor shall non­
commercial transactions be used to circumvent such commitments. 
2. Members undertake to work toward the development of internationally agreed disciplines to 
govern the provision of export credits, export credit guarantees or insurance programmes and, after 
agreement on such disciplines, to provide export credits, export credit guarantees or insurance 
programmes only in conformity therewith. 
Page 52 
3. Any Member which claims that any quantity exported in excess of a reduction commitment 
level is not subsidized must esublish that no export subsidy, whether listed in Article 9 or not, has 
been granted in respect of the quantity of exports in question. 
4. Members donors of international food aid shall ensure: 
(a) that the provision of international food aid is not tied directly or indirectly to commercial 
exports of agricultural products to recipient countries; 
(b) that international food aid transactions, including bilateral food aid which is monetized, 
shall be carried out in accordance with the FAO "Principles of Surplus Disposal and 
Consulutive Obligations", including, where appropriate, the system of Usual Marketing 
Requirements (UMRs); and 
(c) that such aid shall be provided to the extent possible in fully grant form or on terms 
no less concessional than those provided for in Article IV of the Food Aid 
Convention 1986. 
Article 11 
Incorporated Products 
In no case may the per-unit subsidy paid on an incorporated agricultural primary product exceed 
the per-unit export subsidy that would be payable on exports ofthe primary product as such. 
Part VI 
Article 12 
Disciplines on Export Prohibitions and Restrictions 
1. Where any Member institutes any new export prohibition or restriction on foodstuffs in 
accordance with paragraph 2(a) of Article XI of GATT 1994, the Member shall observe the following 
provisions: 
(a) the Member instituting the export prohibition or restriction shall give due consideration 
to the effects of such prohibition or restriction on importing Members' food security; 
(b) before any Member institutes an export prohibition or restriction, it shall give notice 
in writing, as far in advance as practicable, to the Committee on Agriculture comprising 
such information as the nature and the duration of such measure, and shall consult. 
upon request, with any other Member having a substantial interest as an importer with 
respect to any matter related to the measure in question. The Member instituting such 
export prohibition or restriction shall provide, upon request, such a Member with 
necessary information. 
2. The provisions of this Article shall not apply to any developing country Member, unless the 
measure is taken by a developing country Member which is a net-food exporter ofthe specific foodstuff 
concerned. 
Page 53 
Part VII 
Article 13 
Due Restraint 
During the implementation period, notwithsunding the provisions of GATT 1994 and the 
Agreement on Subsidies and Countervailing Measures (referred to in this Article as the "Subsidies 
Agreement"): 
(a) domestic support measures that conform fully to the provisions of Annex 2 to this 
Agreement shall be: 
(i) non-actionable subsidies for purposes of countervailing duties4; 
(ii) exempt from actions based on Article XVI of GATT 1994 and Part III of the Subsidies 
Agreement; and 
(iii) exempt from actions based on non-violation nullification or impairment ofthe benefits 
of tariff concessions accruing to another Member under Article II of GATT 1994, in 
the sense of paragraph 1(b) of Article XXIII of GATT 1994; 
(b) domestic support measures that conform fully to the provisions of Article 6 of this 
Agreement including direct payments that conform to the requirements of paragraph 5 thereof, as 
reflected in each Member's Schedule, as well as domestic support within de minimis levels and in 
conformity with paragraph 2 of Article 6. shall be: 
(i) exempt from the imposition of countervailing duties unless a determination of injury 
or threat thereof is made in accordance with Article VI of GATT 1994 and Part V 
of the Subsidies Agreement, and due restraint shall be shown in initiating any 
countervailing duty investigations; 
(ii) exempt from actions based on paragraph 1 of Article XVI of GATT 1994 or Articles 5 
and 6 ofthe Subsidies Agreement, provided that such measures do not grant support 
to a specific commodity in excess of that decided during the 1992 marketing year; 
and 
(iii) exempt from actions based on non-violation nullification or impairment ofthe benefits 
of uriff concessions accruing to another Member under Article II of GATT 1994, in 
the sense of paragraph 1(b) of Article XXIII of GATT 1994, provided that such 
measures do not grant support to a specific commodity in excess of that decided during 
the 1992 marketing year. 
(c) export subsidies that conform fully to the provisions of Part V of this Agreement, as 
reflected in each Member's Schedule, shall be. 
(i) subject to countervailing duties only upon a determination of injury or threat thereof 
based on volume, effect on prices, or consequent impact in accordance with Article VI 
of GATT 1994 and Part V ofthe Subsidies Agreement, and due restraint shall be shown 
in initiating any countervailing duty investigations; and 
"Countervailing duties" where referred to in this Article are those covered by Article VI of GATT 1994 and Part V 
of the Agreement on Subsidies and Countervailing Measures. 
Page 54 
(ii) exempt from actions based on Article XVI of GATT 1994 or Articles 3, 5 and 6 of 
the Subsidies Agreement. 
Part VIII 
Article 14 
Sanitary and Phytosanitary Measures 
Members agree to give effect to the Agreement on the Application of Sanitary and Phytosanitary 
Measures. 
Part DC 
Article 15 
Special and Differential Treatment 
1. In keeping with the recognition that differential and more favourable treatment for developing 
country Members is an integral part of the negotiation, special and differential treatment in respect 
of commitments shall be provided as set out in the relevant provisions of this Agreement and embodied 
in the Schedules of concessions and commitments. 
2. Developing country Members shall have the flexibility to implement reduction commitments 
over a period of up to 10 years. Least-developed country Members shall not be required to undertake 
reduction commitments. 
PartX 
Article 16 
Least-Developed and Net Food-Importing Developing Countries 
1. Developed country Members shall take such action as is provided for within the framework 
ofthe Decision on Measures Concerning the Possible Negative Effects ofthe Reform Programme, on 
Least-Developed and Net Food-Importing Developing Countries. 
2. The Committee on Agriculture shall monitor, as appropriate, the follow-up to this Decision. 
Part XI 
Article 17 
Committee on Agriculture 
A Committee on Agriculture is hereby esublished. 
Page 55 
Article 18 
Review of the Implementation of Commitments 
1. Progress in the implemenution of commitments negotiated under the Uruguay Round reform 
programme shall be reviewed by the Committee on.Agriculture. 
2. The review process shall be undertaken on the basis of notifications submitted by Members 
in relation to such matters and at such intervals as shall be determined, as well as on the basis of such 
documentation as the Secretariat may be requested to prepare in order to faciliute the review process. 
3. In addition to the notifications to be submitted under paragraph 2, any new domestic support 
measure, or modification of an existing measure, for which exemption from reduction is claimed shall 
be notified promptly. This notification shall conuin deuils ofthe new or modified measure and its 
conformity with the agreed criteria as set out either in Article 6 or in Annex 2. 
4 In the review process Members shall give due consideration to the influence of excessive rates 
of inflation on the ability of any Member to abide by its domestic support commitments. 
5 Members agree to consult annually in the Committee on Agriculture with respect to their 
participai ion in the normal growth of world trade in agricultural products within the framework of 
the commitments on export subsidies under this Agreement. 
6 The review process shall provide an opportunity for Members to raise any matter relevant to 
the implementation of commitments under the reform programme as set out in this Agreement. 
Any Member may bring to the attention ofthe Committee on Agriculture any measure which 
it considers ought to have been notified by another Member. 
Article 19 
Consultation and Dispute Settlement 
The provisions of Articles XXII and XXIII of GATT 1994, as elaborated and applied by the 
Dispute Settlement Understanding, shall apply to consultations and the settlement of disputes under 
this Agreement. 
Part XII 
Article 20 
Continuation of the Reform Process 
Recognizing that the long-term objective of substantial progressive reductions in support and 
protection resulting in fundamental reform is an ongoing process. Members agree that negotiations 
for continuing the process will be initiated one year before the end ofthe implementation period, taking 
into account: 
(a) the experience to that date from implementing the reduction commitments; 
(b) the effects of the reduction commitments on world trade in agriculture; 
Page 56 
(c) non-trade concerns, special and differential treatment to developing country Members, 
and the objective to esublish a fair and market-oriented agricultural trading system, 
and the other objectives and cohcerm mentioned in the preamble to this Agreement; 
and 
(d) what further commitments are necessary to achieve the above mentioned long-term 
objectives. 
Part XIII 
Article 21 
Final Provisions 
1. The provisions of GATT 1994 and of other Multilateral Trade Agreements in Annex 1A to 
the WTO Agreement shall apply subject to the provisions of this Agreement. 
2. The Annexes to this Agreement are hereby made an integral part of this Agreement. 
Page 57 
ANNEX 1 
PRODUCT COVERAGE 
1. This Agreement shall cover the following products: 
(i) HS Chapters 1 to 24 less fish and fish products, 
(ii) HS Code 2905.43 
HS Code 2905.44 
HS Heading 33.01 
HS Headings 35.01 to 35.05 
HS Code 
HS Code 
HS Headings 
HS Heading 
HS Headings 
HS Headings 
HS Headings 
HS Heading 
HS Heading 3809.10 
3823.60 
41.01 to 41.03 
43.01 
50.01 to 50.03 
51.01 to 51.03 
52.01 to 52.03 
53.01 
53.02 plus* 
(mannitol) 
(sorbitol) 
(essential oils) 
(albuminoidal substances, modified 
starches, glues) 
(finishing agents) 
(sorbitol n.e.p.) 
(hides and skins) 
(raw furskins) 
(raw silk and silk waste) 
(wool and animal hair) 
(raw cotton, waste and cotton carded 
or combed) 
(raw flax) 
(raw hemp) 
2. The foregoing shall not limit the product coverage of the Agreement on the Application of 
Sanitary and Phytosanitary' Measures. 
•The product descriptions in round brackets are not necessarily exhaustive. 
Page 58 
ANNEX 2 
DOMESTIC SUPPORT: THE BASIS FOR EXEMPTION FROM 
THE REDUCTION COMMITMENTS 
1. Domestic support measures for which exemption from the reduction commitments is claimed 
shall meet the fundamental requirement that they have no, or at most minimal, trade-distorting effects 
or effects on production. Accordingly, all measures for which exemption is claimed shall conform 
to the following basic criteria: 
(a) the support in question shall be provided through a publicly-funded government 
programme (including government revenue foregone) not involving transfers from 
consumers; and, 
(b) the support in question shall not have the effectof providing price support to producers; 
plus policy-specific criteria and conditions as set out below. 
Government Service Programmes 
2. General services 
Policies in this category involve expenditures (or revenue foregone) in relation to programmes 
which provide services or benefits to agriculture or the rural community. They shall not involve direct 
payments to producers or processors. Such programmes, which include but are not restricted to the 
following list, shall meet the general criteria in paragraph 1 above and policy-specific conditions where 
set out below. 
(a) research, including general research, research in connection with environmental 
programmes, and research programmes relating to particular products; 
(b) pest and disease control, including general and product-specific pest and disease control 
measures, such as early-warning systems, quarantine and eradication; 
(c) training services, including both general and specialist training facilities; 
(d) extension and advisory services, including the provision of means to facilitate the 
transfer of information and the results of research to producers and consumers; 
(e) inspection services, including general inspection services and the inspection of particular 
products for health, safety, grading or standardization purposes; 
(0 marketing and promotion services, including market information, advice and promotion 
relating to particular products but excluding expenditure for unspecified purposes that 
could be used by sellers to reduce their selling price or confer a direct economic benefit 
to purchasers; and 
(g) infrastructural services, including: electricity reticulation, roads and other means of 
transport, market and port facilities, water supply facilities, dams and drainage schemes, 
and infrastructural works associated with environmental programmes. In all cases the 
expenditure shall be directed to the provision or construction of capital works only, 
and shall exclude the subsidized provision of on-farm facilities other than for the 
Page 59 
reticulation of generally available public utilities. It shall not include subsidies to inputs 
or operating costs, or preferential user charges. 
3. Public stockholding for food security purposes5 
Expenditures (or revenue foregone) in relation to the accumulation and holding of stocks of 
products which form an integral part of a food security programme identified in national legislation. 
This may include government aid to private storage of products as part of such a programme. 
The volume and accumulation of such stocks shall correspond to predetermined targets 
related solely to food security. The process of stock accumulation and disposal shall 
be financially transparent. Food purchases by the government shall be made at current 
market prices and sales from food security stocks shall be made at no less than the 
current domestic market price for the product and quality in question. 
4. Domestic food aid6 
Expenditures (or revenue foregone) in relation to the provision of domestic food aid to sections 
of the population in need. 
Eligibility to receive the food aid shall be subject to clearly-defined criteria related 
to nutritional objectives. Such aid shall be in the form of direct provision of food to 
those concerned or the provision of means to allow eligible recipients to buy food either 
at market or at subsidized prices. Food purchases by the government shall be made 
at. current market prices and the financing and administration of the aid shall be 
transparent. 
5. Direct payments.to producers 
Support provided through direct payments (or revenue foregone, including payments in kind) 
to producers for which exemption from reduction commitments is claimed shall meet the basic criteria 
set out in paragraph 1 above, plus specific criteria applying to individual types of direct payment as 
set out in paragraphs 6 through 13 below. Where exemption from reduction is claimed for any existing 
or new type of direct payment other than those specified in paragraphs 6 through 13, it shall conform 
to criteria (b) through <e) in paragraph 6, in addition to the general criteria set out in paragraph 1. 
6 Decoupled income support 
(a) Eligibility for such payments shall be determined by clearly-defined criteria such as 
income, sums as a producer or landowner, factor use or production level in a defined 
and fixed base period. 
'For the purposes of paragraph 3 of this Annex, governmental stockholding programmes for food security purposes in 
developing countries whose operation is transparent and conducted in accordance with officially published objective criteria 
or guidelines shall be considered to be in conformity with the provisions of this paragraph, including programmes under 
which stocks of foodstuffs for food security purposes are acquired and released at administered prices, provided that the 
difference between the acquisition price and the external reference price is accounted for in the AMS. 
'"For the purposes of paragraphs 3 and 4 of this Annex, the provision of foodstuffs at subsidized prices with the objective 
of meeting food requirements of urban and rural poor in developing countries on a regular basis at reasonable prices shall 
be considered to be in conformity with the provisions of this paragraph. 
Page 60 
(b) The amount of such payments in any given year shall not be related to, or based on, 
the type or volume of production (including livestock units) undertaken by the producer 
in arty year after the base period. -
(c) The amount of such payments in any given year shall not be related to, or based on, 
the prices, domestic or international, applying to any production undertaken in any 
year after the base period. 
(d) The amount of such payments in any given year shall not be related to, or based on, 
the factors of production employed in any year after the base period. 
(e) No production shall be required in order to receive such payments. 
7. Government financial participation in income insurance and income safety-net programmes 
(a) Eligibility for such paymentsthall be determined by an income loss, taking into account 
only income derived from agriculture, which exceeds 30 per cent of average gross 
income or the equivalent in net income terms (excluding any payments from the same 
or similar schemes) in the preceding three-year period or a three-year average based 
on the preceding five-year period, excluding the highest and the lowest entry. Any 
producer meeting this condition shall be eligible to receive the payments. 
(b) The amount of such payments shall compensate for less than 70 per cent of the 
producer's income loss in the year the producer becomes eligible to receive this 
assistance. 
(c) The amount of any such payments shall relate solely to income; it shall not relate to 
the type or volume of production (including livestock units) undertaken by the producer; 
or to the prices, domestic or international, applying to such production; or to the factors 
of production employed. 
(d) Where a producer receives in the same year payments under this paragraph and under 
paragraph 8 (relief from natural disasters), the total of such payments shall be less than 
100 per cent of the producer's total loss. 
8. Payments (made either directly or by way of government financial participation in crop insurance 
schemes) for relief from natural disasters 
(a) Eligibility for such payments shall arise only following a formal recognition by 
government authorities that a natural or like disaster (including disease outbreaks, pest 
infestations, nuclear accidents, and war on the territory of the Member concerned) 
has occurred or is occurring; and shall be determined by a production loss which 
exceeds 30 per cent of the average of production in the preceding three-year period 
or a three-year average based on the preceding five-year period, excluding the highest 
and the lowest entry. 
(b) Payments made following a disaster shall be applied only in respect of losses of income, 
livestock (including payments in connection with the veterinary treatment pf animals), 
land or other production factors due to the natural disaster in question. 
(c) Payments shall compensate for not more than the total cost of replacing such losses 
and shall not require or specify the type or quantity of future production. 
Page 61 
(d) Payments made during a disaster shall not exceed the level required to prevent or 
alleviate further loss as defined in criterion (b) above. 
(e) Where a producer receives in the same year payments under this paragraph and under 
paragraph 7 (income insurance and income safety-net programmes), the total of such 
payments shall be less than 100 per cent of the producer's total loss. 
9. Structural adjustment assistance provided through producer retirement programmes 
(a) Eligibility for such payments shall be determined by reference to clearly defined criteria 
in programmes designed to faciliute the retirement of persons engaged in marketable 
agricultural production, or their movement to non-agricultural activities. 
(b) Payments shall be conditional upon the total and permanent retirement of the recipients 
from markeuble agricultural production. 
10. Structural adjustment assistance provided through resource retirement programmes 
(a) Eligibility for such payments shall be determined by reference to clearly defined criteria 
in programmes designed to remove land or other resources, including livestock, from 
marketable agricultural production. 
(b) Payments shall be conditional upon the retirement of land from marketable agricultural 
production for a minimum of three years, and in the case of livestock on its slaughter 
or definitive permanent disposal. • 
(c) Payments shall not require or specify any alternative use for such land or other resources 
which involves the production of marketable agricultural products. 
(d) Payments shall not be related to either the type or quantity of production or to the prices, 
domestic or international, applying to production undertaken using the land or other 
resources remaining in production. 
11. Structural adjustment assistance provided through investment aids 
(a) Eligibility for such payments shall be determined by reference to clearly-defined criteria 
in government programmes designed to assist the financial or physical restructuring 
of a producer's operations in response to objectively demonstrated structural 
disadvantages. Eligibility for such programmes may also be based on a clearly-defined 
government programme for the reprivatization of agricultural land. 
(b) The amount of such payments in any given year shall not be related to, or based on, 
the type or volume of production (including livestock units) undertaken by the producer 
in any year after the base period other than as provided for under criterion (e) below. 
(c) The amount of such payments in any given year shall not be related to, or based on, 
the prices, domestic or international, applying to any production undertaken in any 
year after the base period. 
(d) The payments shall be given only for the period of time necessary for the realization 
of the investment in respect of which they are provided. 
Page 62 
(e) The payments shall not mandate or in any way designate the agricultural products to 
be produced by the recipients except to require them not to produce a particular product. 
(f) The payments shall be limited to the amount required to compensate for the structural 
disadvantage. 
12. Payments under environmental programmes 
(a) Eligibility for such payments shall be determined as part of a clearly-defined government 
environmental or conservation programme and be dependent on the fulfilment of specific 
conditions under the government programme, including conditions related to production 
methods or inputs. 
(b) The amount of payment shall be limited to the extra costs or loss of income involved 
in complying with the government programme. 
13. Payments under regional assistance programmes 
(a) Eligibility for such payments shall be limited to producers in disadvantaged regions. 
Each such region must be a clearly designated contiguous geographical area with a 
definable economic and administrative identity, considered as disadvantaged on the 
basis of neutral and objective criteria clearly spelt out in law or regulation and indicating 
that the region's difficulties arise out of more than temporary circumstances. 
(b) The amount of such payments in any given year shall not be related to, or based on, 
the type or volume of production (including livestock units) undertaken by the producer 
in any year after the base period other than to reduce that production. 
(c) The amount of such payments in any given year shall not be related to, or based on, 
the prices, domestic or international, applying to any production undertaken in any 
year after the base period. 
(d ) Payments shall be available only to producers in eligible regions, but generally available 
to all producers within such regions. 
(e) Where related to production factors, payments shall be made at a degressive rate above 
a threshold level of the factor concerned. 
(f) The payments shall be limited to the extra costs or loss of income involved in 
undertaking agricultural production in the prescribed area. 
Page 63 
ANNEX 3 
DOMESTIC SUPPORT: CALCULATION OF AGGREGATE MEASUREMENT OF SUPPORT 
1. Subject to the provisions of Article 6, an Aggregate Measurement of Support (AMS) shall be 
calculated on a product-specific basis for each basic agricultural product receiving market price support, 
non-exempt direct payments, or any other subsidy not exempted from the reduction commitment ("other 
non-exempt policies"). Support which is non-product specific shall be totalled into one non-product-
specific AMS in total monetary terms. 
2. Subsidies under paragraph 1 shall include both budgetary outlays and revenue foregone by 
governments or their agents. 
3. Support at both the national and sub-national level shall be included. 
4. Specific agricultural levies or fees paid by producers shall be deducted from the AMS. 
5. The AMS calculated as outlined below for the base period shall constitute the base level for 
the implementation of the reduction commitment on domestic support. 
6 For each basic agricultural product, a specific AMS shall be established, expressed in total 
monetary value terms. 
7 The AMS shall be calculated as close as practicable to the point of first sale of the basic 
agricultural product concerned. Measures directed at agricultural processors shall be included to the 
extent that such measures benefit the producers of the basic agricultural products. 
8 Market price support: market price support shall be calculated using the gap between a fixed 
external reference price and the applied administered price multiplied by the quantity of production 
eligible to receive the applied administered price. Budgetary payments made to maintain this gap, 
such as buying-in or storage costs, shall not be included in the AMS. 
9 The fixed external reference price shall be based on the years 1986 to 1988 and shall generally 
be the average fob. unit value for the basic agricultural product concerned in a net exporting country 
and the average c.i.f unit value for the basic agricultural product concerned in a net importing country 
in the base period The fixed reference price may be adjusted for quality differences as necessary. 
10 Non-exempt direct payments: non-exempt direct payments which are dependent on a price 
gap shall be calculated either using the gap between the fixed reference price and the applied administered 
price multiplied by the quantity of production eligible to receive the administered price, or using 
budgetary outlays. 
11. The fixed reference price shall be based on the years 1986 to 1988 and shall generally be the 
actual price used for determining payment rates. 
12. Non-exempt direct payments which are based on factors other than price shall be measured 
using budgetary outlays. 
13. Other non-exempt measures, including input subsidies and other measures such as marketing-cost 
reduction measures: the value of such measures shall be measured using government budgetary outlays 
or, where the use of budgeury outlays does not reflect the full extent of the subsidy concerned, the 
basis for calculating the subsidy shall be the gap between the price ofthe subsidized good or service 
Page 64 
and a represenutive market price for a similar good or service multiplied by the quantity of the good 
or service. 
Page 65 
ANNEX 4 
POMESTIC SUPPORT; ,,;. 
CALCULAT ION OF ÉQUIVALENT MEASUREMENT OF SUPPORT 
1. Subject to the provisions of Article 6, equivalent measurements of support shall be calculated 
in respect of all basic agricultural products where market price support as defined in Annex 3 exists 
but for which calculation of this component of the AMS is not practicable. For such products the base 
level for implemenution ofthe domestic support reduction commitments shall consist of a market price 
support component expressed in terms of equivalent measurements of support under paragraph 2 below, 
as well as any non-exempt direct payments and other non-exempt support, which shall be evaluated 
as provided for under paragraph 3 below. Support at both national and sub-national level shall be 
included. 
2. The equivalent measurements of support provided for in paragraph 1 shall be calculated on 
a product-specific basis for all basic agricultural products as close as practicable to the point of first 
sale receiving market price support and for which the calculation ofthe market price support component 
ofthe AMS is not practicable. For those basic agricultural products, equivalent measurements of market 
price support shall be made using the applied administered price and the quantity of production eligible 
to receive that price or, where this is not practicable, on budgetary outlays used to maintain the producer 
price. 
3. Where basic agricultural products fall ing under paragraph 1 are the subject of non-exempt direct 
payments or any other product-specific subsidy not exempted from the reduction commitment, the basis 
for equivalent measurements of support concerning these measures shall be calculations as for the 
corresponding AMS components (specified in paragraphs 10 through 13 of Annex 3). 
4. Equivalent measurements of support shall be calculated on the amount of subsidy as close as 
practicable to the point of first sale of the basic agricultural product concerned. Measures directed 
at agricultural processors shall be included to the extent that such measures benefit the producers of 
the basic agricultural products. Specific agricultural levies or fees paid by producers shall reduce the 
equivalent measurements of support by a corresponding amount. 
Page 66 
ANNEX 5 
SPECIAL TREATMENT WITH RESPECT TO PARAGRAPH 2 OF ARTICLE 4 
Section A 
1. The provisions of paragraph 2 of Article 4 shall not apply with effect from the entry into force 
of the WTO Agreement to any primary agricultural product and its worked and/or prepared products 
("designated products") in respect of which the following conditions are complied with (hereinafter 
referred to as "special treatment"): 
(a) imports of the designated products comprised less than 3 per cent of corresponding 
domestic consumption in the base period 1986-1988 ("the base period"); 
(b) • . no export subsidies have been provided since the beginning of the base period for the 
designated products; 
(c) effective production-restricting measures are applied to the primary agricultural product; 
(d) such products are designated with the symbol "ST-Annex 5" in Section I-B of Part I 
of a Member's Schedule annexed to the Marrakesh Protocol, as being subject to special 
treatment reflecting factors of non-trade concerns, such as food security and 
environmental protection; and 
(e) minimum access opportunities in respect of the designated products correspond, as 
specified in Section I-B of Part I ofthe Schedule ofthe Member concerned, to 4 per cent 
of base period domestic consumption of the designated products from the beginning 
of the first year of the implementation period and, thereafter, are increased by 
0.8 per cent of corresponding domestic consumption in the base period per year for 
the remainder of the implemenution period. 
2. At the beginning of any year of the implementation period a Member may cease to apply special 
treatment in respect of the designated products by complying with the provisions of paragraph 6. In 
such a case, the Member concerned shall maintain the minimum access opportunities already in effect 
at such time and increase the minimum access opportunities by 0.4 per cent of corresponding domestic 
consumption in the base period per year for the remainder ofthe implementation period. Thereafter, 
the level of minimum access opportunities resulting from this formula in the final year of the 
implementation period shall be maintained in the Schedule of the Member concerned. 
3. Any negotiation on the question of whether there can be a continuation ofthe special treatment 
as set out in paragraph 1 after the end ofthe implementation period shall be completed within the time­
frame of the implementation period itself as a part of the negotiations set out in Article 20 of this 
Agreement, taking into account the factors of non-trade concerns. 
4. If it is agreed as a result of the negotiation referred to in paragraph 3 that a Member may 
continue to apply the special treatment, such Member shall confer additional and acceptable concessions 
as determined in that negotiation. 
5. Where the special treatment is not to be continued at the end of the implementation period, 
the Member concerned shall implement the provisions of paragraph 6. In such a case, after the end 
of the implementation period the minimum access opportunities for the designated products shall be 
Page 67 
maintained at the level of 8 per cent of corresponding domestic consumption in the base period in the 
Schedule of the Member concerned. 
6. Border measures other than ordinary customs duties mainuined in respect of the designated 
products shall become subject to the provisions of paragraph 2 of Article 4 with effect from the beginning 
ofthe year in which the special treatment ceases to apply. Such products shall be subject to ordinary 
customs duties, which shall be bound in the Schedule of the Member concerned and applied, from 
the beginning ofthe year in which special treatment ceases and thereafter, at such rates as would have 
been applicable had a reduction of at least 15 per cent been implemented over the implemenution period 
in equal annual instalments. These duties shall be esublished on the basis of tariff equivalents to be 
calculated in accordance with the guidelines prescribed in the atuchment hereto. 
Section B 
7. The provisions of paragraph 2 of Article 4 shall also not apply with effect from the entry into 
force of the WTO Agreement to a primary agricultural product that is the predominant suple in the 
traditional diet of a developing country Member and in respect of which the following conditions, in 
addition to those specified in paragraph 1(a) through 1(d), as they apply to the products concerned, 
are complied with: 
(a) minimum access opportunities in respect ofthe products concerned, as specified in 
Section I-B of Part.I of the Schedule of the developing country Member concerned, 
correspond to 1 per cent of base period domestic consumption ofthe products concerned 
from the beginning of the first year of the implemenution period and are increased 
in equal annual instalments to 2 per cent of corresponding domestic consumption in 
the base period at the beginning of the fifth year of the implemenution period. From 
the beginning of the sixth year of the implemenution period, minimum access 
opportunities in respect of the products concerned correspond to 2 per cent of 
corresponding domestic consumption in the base period and are increased in equal annual 
instalments to 4 per cent of corresponding domestic consumption in the base period 
until the beginning of the 10th year. Thereafter, the level of minimum access 
opportunities resulting from this formula in the 10th year shall be mainuined in the 
Schedule of the developing country Member concerned; 
(b ) appropriate market access opportunities have been provided for in other products under 
this Agreement. 
8 _ Any negotiation on the question of whether there can be a continuation of the special treatment 
as set out in paragraph 7 after the end ofthe 10th year following the beginning ofthe implemenution 
period shall be initiated and completed within the time-frame of the 10th year itself following the 
beginning of the implemenution period. 
9 If it is agreed as a result of the negotiation referred to in paragraph 8 that a Member may 
continue to apply the special treatment, such Member shall confer additional and acceptable concessions 
as determined in that negotiation. 
10. In the event that special treatment under paragraph 7 is not to be continued beyond the 10th 
year following the beginning of the implementation period, the products concerned shall be subject 
to ordinary customs duties, established on the basis of a uriff equivalent to be calculated in accordance 
with the guidelines prescribed in the atuchment hereto, which shall be bound in the Schedule of the 
Member concerned. In other respects, the provisions of paragraph 6 shall apply as modified by the 
relevant special and differential treatment accorded to'developing country Members under this Agreement. 
Page 68 
Atuchment to Annex 5 
Guidelines for the Calculation of Tariff 
Equivalents for the Specific Purpose Specified in 
Paragraphs 6 and 10 of this Annex 
1. The calculation of the uriff equivalents, whether expressed as ad valorem or specific rates, 
shall be made using the actual difference between internal and external prices in a transparent manner. 
Dau used shall be for the years 1986 to 1988. Tariff equivalents: 
(a) shall primarily be esublished at the four-digit level of the HS; 
(b) shall be esublished at the six-digit or a more deuiled level of the HS wherever 
appropriate; 
(c) shall generally be established for worked and/or prepared products by multiplying the 
specific tariff equivalent(s) for the primary agricultural product(s) by the proportion(s) 
in value terms or in physical terms as appropriate ofthe primary agricultural product(s) 
in the worked and/or prepared products, and take account, where necessary, of any 
additional elements currently providing protection to industry. 
2. External prices shall be, in general, actual average c.i.f. unit values for the importing country. 
Where average c.i.f. unit values are not available or appropriate, external prices shall be either: 
(a) appropriate average c.i.f. unit values of a near country; or 
(b) estimated from average f.o.b. unit values of(an) appropriate major exporter(s) adjusted 
by adding an estimate of insurance, freight and other relevant costs to the importing 
country. 
3. The external prices shall generally be converted to domestic currencies using the annual average 
market exchange rate for the same period as the price data. 
4. The internal price shall generally be a representative wholesale price ruling in the domestic 
market or an estimate of that price where adequate data is not available. 
5. The initial tariff equivalents may be adjusted, where necessary, to take account of differences 
in quality or variety using an appropriate coefficient. 
6 Where a tariff equivalent resulting from these guidelines is negative or lower than the current 
bound rate, the initial tariff equivalent may be established at the current bound rate or on the basis 
of national offers for that product. 
7. Where an adjustment is made to the level of a tariff equivalent which would have resulted from 
the above guidelines, the Member concerned shall afford, on request, full opportunities for consultation 
with a view to negotiating appropriate solutions. 
Page 69 
AGREEMENT ON THE APPLICATION OF 
ÇAMTARY AND PHYTOSANITARY MEASURES 
Members, 
Reaffirming that no Member should be prevented from adopting or enforcing measures necessary 
to protect human, animal or plant life or health, subject to the requirement that these measures are 
not applied in a manner which would constitute a means of arbitrary or unjustifiable discrimination 
between Members where the same conditions prevail or a disguised restriction on international trade; 
Desiring to improve the human health, animal health and phytosanitary situation in al I Members ; 
Noting that sanitary and phytosanitary measures are often applied on the basis of bilateral 
agreements or protocols; 
Desiring the establishment of a multilateral framework of rules and disciplines to guide the 
development, adoption and enforcement of sanitary and phytosanitary measures in order to minimize 
their negative effects on trade; 
Recognizing the important contribution that international standards, guidelines and 
recommendations can make in this regard, 
Desiring to further the use of harmonized, sanitary and phytosaniury measures between Members, 
on the basis of international standards, guideline's and recommendations developed by the relevant 
international organizations, including the Codex Alimentarius Commission, the International Office 
of Epizootics, and the relevant international and regional organizations operating within the framework 
ofthe International Plant Protection Convention, without requiring Members to change their appropriate 
level of protection of human, animal or plant life or health; 
Recognizing that developing country Members may encounter special difficulties in complying 
with the sanitary or phytosanitary measures of importing Members, and as a consequence in access 
to markets, and also in the formulation and application of sanitary or phytosanitary measures in their 
own territories, and desiring to assist them in their endeavours in this regard; 
Desiring therefore to elaborate rules for the application ofthe provisions of GATT 1994 which 
relate to the use of saniury or phytosanitary measures, in particular the provisions of Article XX(b)1; 
Hereby agree as follows: 
'In this Agreement, reference to Article XX(b) includes also the chapeau ofthat Article. 
Page 70 
Article 1 
General Provisions 
1. This Agreement applies to all sanitary and phytosaniury measures which may, directly or 
indirectly, affect international trade. Such measures shall be developed and applied in accordance with 
the provisions of this Agreement. 
2. For the purposes of this Agreement, the definitions provided in Annex A shall apply. 
3. The annexes are an integral part of this Agreement. 
4. Nothing in this Agreement shall affect the rights of Members under the Agreement on Technical 
Barriers to Trade with respect to measures not within the scope of this Agreement. 
Article 2 
Basic Rights and Obligations 
1. Members have the right to take sanitary and phytosanitary measures necessary for the protection 
of human, animal or plant life or health, provided that such measures are not inconsistent with the 
provisions of this Agreement. 
2. Members shall ensure that any sanitary or phytosanitary measure is applied only to the extent 
necessary to protect human, animal or plant life or health, is based on scientific principles and is not 
maintained without sufficient scientific evidence, except as provided for in paragraph 7 of Article 5. 
3. Members shall ensure that their sanitary and phytosanitary measures do not arbitrarily or 
•unjustifiably discriminate between Members where identical or similar conditions prevail, including 
between their own territory and that of other Members. Sanitary and phytosanitary measures shall 
not be applied in a manner which would constitute a disguised restriction on international trade. 
4 Sanitary or phytosanitary measures whichconform to the relevant provisions of this Agreement 
shall be presumed to be in accordance with the obligations of the' Members under the provisions of 
GATT 1994 which relate to the use of sanitary or phytosanitary measures, in particular the provisions 
of Article XX(b) 
Article 3 
Harmonization 
I. To harmonize sanitary and phytosanitary measures on as wide a basis as possible. Members 
shall base their sanitary or phytosanitary measures on international standards, guidelines or 
recommendations, where they exist, except as otherwise provided for in this Agreement, and in particular 
in paragraph 3. 
Page 71 
2. Sanitary or phytosanitary measures which conform to international standards, guidelines or 
recommendations shall be deemed to be necessary to protect human, animal or plant life or health, 
and presumed to be consistent with the relevant provisions of this Agreement and of GATT 1994. 
3. Members may introduce or mainuin sanitary or phytosanitary measures which result in a higher 
level of sanitary or phytosanitary protection than would be achieved by measures based on the relevant 
international standards, guidelines or recommendations, if there is a scientific justification, or as a 
consequence ofthe level of sanitary or phytosanitary protection a Member determines to be appropriate 
in accordance with the relevant provisions of paragraphs 1 through 8 of Article 5.2 Notwithstanding 
the above, all measures which result in a level of sanitary or phytosanitary protection different from 
that which would be achieved by measures based on international standards, guidelines or 
recommendations shall not be inconsistent with any other provision of this Agreement. 
4. Members shall play a full part, within the limits of their resources, in the relevant international 
organizations and their subsidiary bodies, in particular the Codex Alimentarius Commission, the 
International Office of Epizootics, and the international and regional organizations operating within 
the framework ofthe International Plant Protection Convention, to promote within these organizations 
the development and periodic review of standards, guidelines and recommendations with respect to 
all aspects of sanitary and phytosanitary measures. 
5. The Committee on Sanitary and Phytosanitary Measures provided for in paragraphs 1 and 4 
of Article 12 (referred to in this Agreement as the "Committee") shall develop a procedure to monitor 
the process of international harmonization and coordinate efforts in this regard with the relevant 
international organizations. 
Article 4 
Equivalence 
1. Members shall accept the sanitary or phytosanitary measures of other Members as equivalent, 
even if these measures differ from their own or from those used by other Members trading in the same 
product, if the exporting Member objectively demonstrates to the importing Member that its measures 
achieve the importing Member's appropriate level of sanitary or phytosaniury protection. For this 
purpose, reasonable access shall be given, upon request, to the importing Member for inspection, testing 
and other relevant procedures. 
2. Members shall, upon request, enter into consultations with the aim of achieving bilateral and 
multilateral agreements on recognition of the equivalence of specified sanitary or phytosaniury measures. 
'For the purposes of paragraph 3 of Anicle 3. there is a scientific justification if, on the basis of an examination and 
evaluation of available scientific information in conformity with the relevant provisions of this Agreement, a Member determines 
that the relevant international standards, guidelines or recommendations are not sufficient to achieve its appropriate level 
of sanitary or phytosanitary protection. 
Page 72 
Article 5 
Assessment of Risk and Determination of the Appropriate Level 
of Sanitary or Phytosanitary Protection 
1. Members shall ensure that their sanitary or phytosaniury measures are based on an assessment, 
as appropriate to the circumstances, of the risks to human, animal or plant life or health, taking into 
account risk assessment techniques developed by the relevant international organizations. 
2. • In the assessment of risks, Members shall take into account available scientific evidence; relevant 
processes and production methods; relevant inspection, sampling and testing methods; prevalence 
of specific diseases or pests; existence of pest- or disease-free areas; relevant ecological and 
environmenul conditions; and quarantine or other treatment. 
3. In assessing the risk to animal or plant life or health and determining the measure to be applied 
for achieving the appropriate level of sanitary or phytosanitary protection from such risk. Members 
shall take into account as relevant economic factors: the potential damage in terms of loss of production 
or sales in the event of the entry, establishment or spread of a pest or disease; the costs of control 
or eradication in the territory ofthe importing Member; and the relative cost-effectiveness of alternative 
approaches to limiting risks. 
4. Members should, when determining the appropriate level of sanitary or phytosanitary protection. 
take into account the objective of minimizing negative trade effects. 
5. With the objective of achieving consistency in the application of the concept of appropriate 
level of sanitary or phytosanitary protection against risks to human life or health, or to animal and 
plant life or health, each Member shall avoid arbitrary or.unjustifiable distinctions in the levels it 
considers to be appropriate in different situations, if such distinctions result in discrimination or a 
disguised restriction on international trade. Members shall cooperate in the Committee, in accordance 
with paragraphs 1, 2 and 3 of Article 12, to develop guidelines to further the practical implementation 
of this provision. In developing the guidelines, the Committee shall take into account all relevant factors. 
including the exceptional character of human health risks to which people voluntarily expose themselves. 
6. Without prejudice to paragraph 2 of Article 3, when establishing or maintaining sanitary or 
phytosanitary measures to achieve the appropriate level of sanitary or phytosaniury protection. Members 
shall ensure that such measures are not more trade-restrictive than required to achieve their appropriate 
level of sanitary or phytosaniury protection, taking into account technical and economic feasibility/ 
7. In cases where relevant scientific evidence is insufficient, a Member may provisionally adopt 
sanitary or phytosanitary measures on the basis of available pertinent information, including that froni 
the relevant international organizations as well as from sanitary or phytosanitary measures applied by 
other Members. In such circumstances. Members shall seek to obtain the additional information 
necessary for a more objective assessment of risk and review the sanitary or phytosanitary measure 
accordingly within a reasonable period of time. 
'For purposes of paragraph 6 of Anicle 5. a measure is not more trade-restrictive than required unless there is another 
measure, reasonably available taking into account technical and economic feasibility, that achieves the appropriate level of 
sanitary or phytosanitary protection and is significantly less restrictive to trade. 
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8. When a Member has reason to believe that a specific sanitary or phytosaniury measure introduced 
or mainuined by another Member is constraining, or has the potential to constrain, its exports and 
the measure is not based on the relevant international standards, guidelines or recommendations, or 
such standards, guidelines or recommendations do not exist, an explanation of the reasons for such 
saniury or phytosaniury measure may be requested and shall be provided by the Member maintaining 
the measure. 
Article 6 
Adaptation to Regional Conditions, Including Pest- or Disease-Free Areas 
and Areas of Low Pest or Disease Prevalence 
1. Members shall ensure that their saniury or phytosanitary measures are adapted to the sanitary 
or phytosaniury characteristics of the area - whether all of a country, part of a country, or all or parts 
of several countries - from which the product originated and to which the product is destined. In 
assessing the sanitary or phytosanitary characteristics of a region, Members shall take into account. 
inter alia, the level of prevalence of specific diseases or pests, the existence of eradication or control 
programmes, and appropriate criteria or guidelines which may be developed by the relevant international 
organizations. 
2. Members shall, in particular, recognize the concepts of pest- or disease-free areas and areas 
of low pest or disease prevalence. Determination of such areas shall be based on factors such as 
geography, ecosystems, epidemiological surveillance, and the effectiveness of sanitary or phytosanitary 
controls. 
3. Exporting Members claiming that areas within their territories are pest- or disease-free areas 
or areas of low pest or disease prevalence shall provide the necessary evidence thereof in order to 
objectively demonstrate to the importing Member that such areas are, and are likely to remain, pest-
or disease-free areas or areas of low pest or disease prevalence, respectively. For this purpose, 
reasonable access shall be given, upon request, to the importing Member for inspection, testing and 
other relevant procedures. 
Article 7 
Transparency 
Members shall notify' changes in their sanitary or phytosanitary measures and shall provide 
information on their sanitary or phytosanitary measures in accordance with the provisions of Annex B. 
Article 8 
Control, Inspection and Approval Procedures 
Members shall observe the provisions of Annex C in the operation of control, inspection and 
approval procedures, including national systems for approving the use of additives or for establishing 
tolerances for contaminants in foods, beverages or feedstuffs, and otherwise ensure that their procedures 
are not inconsistent with the provisions of this Agreement. 
Page 74 
Article 9 
Technical Assistance 
1. Members agree to facilitate the provision of technical assistance to other Members, especially 
developing country Members, either bilaterally or through the appropriate international organizations. 
Such assisunce may be, inter alia, in the areas of processing technologies, research and infrastructure, 
including in the establishment of national regulatory bodies, and may take the form of advice, credits, 
donations and grants, including for the purpose of seeking technical expertise, training and equipment 
to allow such countries to adjust to, and comply with, sanitary or phytosanitary measures necessary 
to achieve the appropriate level of saniury or phytosanitary protection in their export markets. 
'2. Where substantial investments are required in order for an exporting developing country Member 
to fulfil the sanitary or phytosanitary requirements of an importing Member, the latter shall consider 
providing such technical assistance as will permit the developing country Member to maintain and expand 
its market access opportunities for the product involved. 
Article 10 
Special and Differential Treatment 
1. In the preparation and application of sanitary or phytosanitary measures. Members shall take 
account ofthe special needs of developing country Members, and in particular ofthe least-developed 
country Members. 
2 Where the appropriate level of sanitary or phytosanitary protection allows scope for the phased 
introduction of new sanitary or phytosanitary measures, longer time-frames for compliance should be 
accorded on products of interest to developing country Members so as to maintain opportunities for 
their exports 
3. With a view to ensuring that developing country Members are able to comply with the provisions 
of this Agreement, the Committee is enabled to grant to such countries, upon request, specified, time-
limited exceptions in whole or in part from obligations under this Agreement, taking into account their 
financial, trade and development needs. 
4 Members should encourage and facilitate the active participation of developing country Members 
in the relevant international organizations. 
Article 11 
Consultations and Dispute Settlement 
I. The provisions of Articles XXII and XXIIl of GATT 1994 as elaborated and applied by the 
Dispute Settlement Understanding shall apply to consultations.and the settlement of disputes under 
this Agreement, except as otherwise specifically provided herein. 
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2. In a dispute under this Agreement involving scientific or technical issues, a panel should seek 
advice from experts chosen by the panel in consulution with the parties to the dispute. To this end, 
the panel may, when it deems it appropriate, esublish an advisory technical experts group, or consult 
the relevant international organizations, at the request of either party to the dispute or on its own 
initiative. 
3. Nothing in this Agreement shall impair the rights of Members under other international 
agreements, including the right to resort to the good offices or dispute settlement mechanisms of other 
international organizations or established under any international agreement. 
. Article 12 
Administration 
1 A Committee on Sanitary and Phytosanitary Measures is hereby established to provide a regular 
forum for consultations. It shall carry out the functions necessary to implement the provisions of this 
Agreement and the furtherance of its objectives, in particular with respect to harmonization. The 
Committee shall reach its decisions by consensus. 
2. The Committee shall encourage and facilitate ad hoc consultations or negotiations among 
Members on specific sanitary or phytosaniury issues. The Committee shall encourage the use of 
international standards, guidelines or recommendations by all Members and, in this regard, shall sponsor 
technical consultation and study with the objective of increasing coordination and integration between 
international and national systems and approaches for approving the use of food additives or for 
establishing tolerances for contaminants in foods, beverages or feedstuffs. 
3. The Committee shall maintain close contact with the relevant international organizations in 
the field of sanitary and phytosanitary protection, especially with the Codex Alimentarius Commission, 
the International Office of Epizootics, and the Secretariat ofthe International Plant Protection Convention, 
with the objective of securing the best available scientific and technical advice for the administration 
of this Agreement and in order to ensure that unnecessary duplication of effort is avoided. 
4 The Committee shall develop a procedure to monitor the process of international harmonization 
and the use of international standards, guidelines or recommendations. For this purpose, the Committee 
should, in conjunction with the relevant international organizations, establish a list of international 
standards, guidelines or recommendations relating to saniury or phytosaniury measures which the 
Committee determines to have a major trade impact. The list should include an indication by Members 
of those international standards, guidelines or recommendations which they apply as conditions for 
import or on the basis of which imported products conforming to these standards can enjoy access 
to their markets For those cases in which a Member does not apply an international standard, guideline 
or recommendation as a condition for import, the Member should provide an indication of the. reason 
therefor, and. in particular, whether it considers that the standard is not stringent enough to provide 
the appropriate level of sanitary or phytosanitary protection. If a Member revises its position, following 
its indication ofthe use of a standard, guideline or recommendation as a condition for import, it should 
provide an explanation for its change and so inform the Secretariat as well as the relevant international 
organizations, unless such notification and explanation is given according to the procedures of Annex B. 
Page 76 
5. In order to avoid unnecessary duplication, the Committee may decide, as appropriate, to use 
the information generated by the procedures, particularly for notification, which are in operation in 
the relevant international organizations. 
6. The Committee may, on the basis of an initiative from one ofthe Members, through appropriate 
channels invite the relevant international organizations or their subsidiary bodies to examine specific 
matters with respect to a particular standard, guideline or recommendation, including the basis of 
explanations for non-use given according to paragraph 4. 
7. The Committee shall review the operation and implementation of this Agreement three years 
after the date of entry into force of the WTO Agreement, and thereafter as the need arises. Where 
appropriate, the Committee may submit to the Council for Trade in Goods proposals to amend the 
text of this Agreement having regard, inter alia, to the experience gained in its implementation. 
Article 13 
Implementation 
Members are fully responsible under this Agreement for the observance of all obligations set 
forth herein. Members shall formulate and implement positive measures and mechanisms in support 
of the observance of the provisions of this Agreement by other than central government bodies. Members 
shall take such reasonable measures as may be available to them to ensure that non-governmental entities 
within their territories, as well as regional bodies in which relevant entities within their territories are 
members, comply with the relevant provisions of this Agreement. In addition, Members shall not 
take measures which have the effect of, directly or indirectly, requiring or encouraging such regional 
or non-governmental entities, or local governmental bodies, to act in a manner inconsistent with the 
provisions of this Agreement. Members shall ensure that they rely on the services of non-governmental 
entities for implementing sanitary or phytosanitary measures only if these entities comply with the 
provisions of this Agreement. 
Article 14 
Final Provisions 
The least-developed country Members may delay application of the provisions of this Agreement 
for a period of five years following the date of entry into force of the WTO Agreement with respect 
to their sanitary or phytosanitary measures affecting importation or imported products. Other developing 
country Members may delay application ofthe provisions of this Agreement, other than paragraph 8 
of Article 5 and Article 7. for two years following the date of entry into force ofthe WTO Agreement 
with respect to their existing saniury or phytosanitary measures affecting importation or imported 
products, where such application is prevented by a lack of technical expertise, technical infrastructure 
or resources. 
Page 77 
ANNEX A 
DEFINITIONS4 
1. Sanitary or phytosanitary measure - Any measure applied: 
(a) to protect animal or plant life or health within the territory of the Member from risks 
arising .from the entry, establishment or spread of pests, diseases, disease-carrying 
organisms or disease-causing organisms; 
(b) to protect human or animal life or health within the territory of the Member from risks 
arising from additives, contaminants, toxins or disease-causing organisms in foods, 
beverages or feedstuffs; 
(c) to protect human life or health within the territory of the Member from risks arising 
from diseases carried by animals, plants or products thereof, or from the entry, 
esublishment or spread of pests; or 
(d) to prevent or limit other damage within the territory of the Member from the entry, 
establishment or spread of pests. 
Saniury or phytosanitary measures include all relevant laws, decrees, regulations, requirements and 
procedures including, inter alia, end product criteria; processes and production methods; testing, 
inspection, certification and approval procedures; quarantine treatments including relevant requirements 
associated with the transport of animals or plants, or with the materials necessary for their survival 
during transport; provisions on relevant sutistical methods, sampling procedures and methods of risk 
assessment; and packaging and labelling requirements directly related to food safety. 
2. Harmonization - The establishment, recognition and application of common sanitary and 
phytosanitary measures by different Members. 
3. International standards, guidelines and recommendations 
(a) for food safety, the standards, guidelines and recommendations established by the Codex 
Alimentarius Commission relating to food additives, veterinary drug and pesticide 
residues, contaminants, methods of analysis and sampling, and codes and guidelines 
of hygienic practice; 
(b) for animal health and zoonoses, the standards, guidelines and recommendations 
developed under the auspices of the International Office of Epizootics; 
(c) for plant health, the international standards, guidelines and recommendations developed 
under the auspices of the Secretariat of the International Plant Protection Convention 
in cooperation with regional organizations operating within the framework of the 
International Plant Protection Convention; and 
4For the purpose of these definitions, "animal" includes fish and wild fauna; "plant" includes forests and wild flora; 
"pests" include weeds; and "contaminants" include pesticide and veterinary drug residues and extraneous matter. 
Page 78 
(d) for matters not covered by the above organizations, appropriate standards, guidelines 
and recommendations promulgated by other relevant international organizations open 
for membership to all Members, as identified by the Committee. 
4. Risk assessment - The evaluation of the likelihood of entry, esublishment or spread of a pest 
or disease within the territory of an importing Member according to the sanitary or phytosanitary 
measures which might be applied, and ofthe associated potential biological and economic consequences; 
or the evaluation ofthe potential for adverse effects on human or animal health arising from the presence 
of additives, contaminants, toxins or disease-causing organisms in food, beverages or feedstuffs. 
5. Appropriate level of sanitary or phytosanitary protection - The level of protection deemed 
appropriate by the Member establishing a sanitary or phytosanitary measure to protect human, animal 
or plant life or health within its territory. 
NOTE: Many Members otherwise refer to this concept as the "acceptable level of risk". 
6 Pest- or disease-free area - An area, whether all of a country, part of a country, or all or parts 
of several countries, as identified by the competent authorities, in which a specific pest or disease does 
not occur. 
NOTE: A pest- or disease-free area may surround, be surrounded by, or be adjacent to an area - whether 
within pan of a country or in a geographic region which includes parts of or all of several countries -
in which a specific pest or disease is known to occur but is subject to regional control measures such 
as the establishment of protection, surveillance and buffer zones which will confine or eradicate the 
pest or disease in question. 
7 Area of low pest or disease prevalence - An area, whether all of a country, part of a country'. 
or all or parts of several countries, as identified by the competent authorities, in which a specific pest 
or disease occurs at low levels and which is subject to effective surveillance, control or eradication 
measures. 
Page 79 
ANNEX B 
TRANSPARENCY OF SANITARY AND PHYTOSANITARY REGULATIONS 
Publication of regulations 
1. Members shall ensure that all sanitary and phytosanitary regulations5 which have been adopted 
are published promptly in such a manner as to enable interested Members to become acquainted with 
them. 
2. Except in urgent circumstances, Members shall allow a reasonable interval between the 
publication of a sanitary or phytosanitary regulation and its entry into force in order to allow time for 
producers in exporting Members, and particularly in developing country Members, to adapt their products 
and methods of production to the requirements of the importing Member. 
Enquiry points 
3 Each Member shall ensure that one enquiry point exists which is responsible for the provision 
of answers to all reasonable questions from interested Members as well as for the provision of relevant 
documents regarding: 
(a) any sanitary or phytosanitary regulations adopted or proposed within its territory; 
.(b) any control and inspection procedures, production and quarantine treatment, pesticide 
tolerance and food additive approval procedures, which are operated within its territory; 
(c ) risk assessment procedures, factors uken into consideration, as well as the determination 
of the appropriate level of sanitary or phytosanitary protection; 
(di the membership and participation of the Member, or of relevant bodies within its 
territory, in international and regional sanitary and phytosanitary organizations and 
systems, as well as in bilateral and multilateral agreements and arrangements within 
the scope of this Agreement, and the texts of such agreements and arrangements. 
4 Members shall ensure that where copies of documents are requested by interested Members, 
they are supplied at the same price (if any), apart from the cost of delivery, as to the nationals6 ofthe 
Member concerned. 
'Sanitary and phytosanitary measures such as laws, decrees or ordinances which are applicable generally. 
*When "nationals" are referred to in this Agreement, the term shall be deemed, in the case of a separate customs territory 
Member of the WTO. to mean persons, natural or legal, who are domiciled or who have a real and effective industrial or 
commercial establishment in that customs territory. 
Page 80 
Notification procedures 
5. Whenever an international standard, guideline or recommendation does not exist or the content 
of à proposed saniury or phytosaniury regulation is not substantially the same as the content of an 
international standard, guideline or recommendation, and if the regulation may have a significant effect 
on trade of other Members, Members shall: 
(a) publish a notice at an early suge in such a manner as to enable interested Members 
to become acquainted with the proposal to introduce a particular regulation; 
(b) notify other Members, through the Secreuriat, of the products to be covered by the 
regulation together with a brief indication ofthe objective and rationale ofthe proposed 
regulation. Such notifications shall take place at an early stage, when amendments 
can still be introduced and comments uken into account; 
(c) provide upon request to other Members copies of the proposed regulation and, whenever 
possible, identify' the parts which in substance deviate from international standards, 
guidelines or recommendations; 
(d) without discrimination, allow reasonable time for other Members to make comments 
in writing, discuss these comments upon request, and take the comments and the results 
of the discussions into account. 
6. However, where urgent problems of health protection arise or threaten to arise for a Member. 
that Member may omit such ofthe steps enumerated in paragraph 5 of this Annex as it finds necessary, 
provided that the Member: 
(a) immediately notifies other Members, through the Secreuriat, of the particular regulation 
and the products covered, with a brief indication of the objective and the rationale of 
the regulation, including the nature of the urgent problem(s); 
(b) provides, upon request, copies of the regulation to other Members; 
(c) allows other Members to make comments in writing, discusses these comments upon 
request, and takes the comments and the results of the discussions into account. 
7. Notifications to the Secretariat shall be in English, French or Spanish. 
8* Developed country Members shall, if requested by other Members, provide copies of the 
documents or, in case of voluminous documents, summaries ofthe documents covered by a specific 
notification in English, French or Spanish. 
9. The Secreuriat shall promptly circulate copies ofthe notification to all Members and interested 
international organizations and draw the attention of developing country Members to any notifications 
relating to products of particular interest to them. 
10. Members shall designate a single central government authority as responsible for the 
implementation, on the national level, ofthe provisions concerning notification procedures according 
to paragraphs 5, 6, 7 and 8 of this Annex. 
Page 81 
General reservations 
11. Nothing in this Agreement shall be construed as requiring: 
(a) thé provision of particulars or copies of drafts or the publication of texts other than 
in the language of the Member except as stated in paragraph 8 of this Annex; or 
(b) Members to disclose confidential information which would impede enforcement of 
saniury or phytosaniury legislation or which would prejudice the legitimate commercial 
interests of particular enterprises. 
Page 82 
ANNEX C 
CONTROL, INSPECTION AND APPROVAL PROCEDURES7 
1. Members shall ensure, with respect to any procedure to check and ensure the fulfilment of 
sanitary or phytosanitary measures, that: 
(a) such procedures are undertaken and completed without undue delay and in no less 
favourable manner for imported products than for like domestic products; 
(b) the standard processing period of each procedure is published or that the anticipated 
processing period is communicated to the applicant upon request; when receiving an 
application, the competent body promptly examines the completeness of the 
documentation and informs the applicant in a precise and complete manner of all 
deficiencies; the competent body transmits as soon as possible the results of the 
procedure in a precise and complete manner to the applicant so that corrective action 
may be taken if necessary; even when the application has deficiencies, the competent 
body proceeds as far as practicable with the procedure if the applicant so requests; 
and that upon request, the applicant is informed of the suge of the procedure, with 
any delay being explained; 
(c) information requirements are limited to what is necessary for appropriate control, 
inspection and approval procedures, including for approval of the use of additives 
or for the establishment of tolerances for contaminants in food, beverages or feedstuffs; 
(d) the confidentiality of information about imported products arising from or supplied 
in connection with control, inspection and approval is respected in a way no less 
favourable than for domestic products and in such a manner that legitimate commercial 
interests are protected; 
(e) any requirements for control, inspection and approval of individual specimens of a 
product are limited to what is reasonable and necessary; 
(f) any fees imposed for the procedures on imported products are equitable in relation 
to any fees charged on like domestic products or products originating in any other 
Member and should be no higher than the actual cost of the service; 
(g) the same criteria should be used in the siting of facilities used in the procedures and 
the selection of samples of imported products as for domestic products so as to minimize 
the inconvenience to applicants, importers, exporters or their agents; 
(h) whenever specifications of a product are changed subsequent to its control and inspection 
in light ofthe applicable regulations, the procedure for the modified product is limited 
to what is necessary to determine whether adequate confidence exists that the product 
still meets the regulations concerned; and 
'Control, inspection and approval procedures include, inter alia, procedures for sampling, testing and certification. 
Page 83 
(i) a procedure exists to review complaints concerning the operation of such procedures 
and to take corrective action when a complaint is justified. 
Where an importing Member operates ä system for the approval of the use of food additives or for 
the establishment of tolerances for contaminants in food, beverages or feedstuffs which prohibits or 
restricts access to its domestic markets for products based on the absence of an approval, the importing 
Member shall consider the use of a relevant international standard as the basis for access until a final 
determination is made. 
2. Where a sanitary or phytosanitary measure specifies control at the level of production, the 
Member in whose territory the production takes place shall provide the necessary assistance to facilitate 
such control and the work of the controlling authorities. 
3 Nothing in this Agreement shall prevent Members from carrying out reasonable inspection 
within their own territories. 
Page 84 
Page 85 
AGREEMENT ON TEXTILES AND CLOTHING 
Members, 
Recalling that Ministers agreed at Punta del Este that "negotiations in the area of textiles and 
clothing shall aim to formulate modalities that would permit the eventual integration of this sector into 
GATT on the basis of strengthened GATT rules and disciplines, thereby also contributing to the objective 
of further liberalization of trade"; 
Recalling also that in the April 1989 Decision of the Trade Negotiations Committee it was 
agreed that the process of integration should commence following the conclusion ofthe Uruguay Round 
of Multilateral Trade Negotiations and should be progressive in character; 
Recalling further that it was agreed that special treatment should be accorded to the least-
developed country Members; 
Hereby agree as follows: 
Article 1 
1. This Agreement sets out provisions to be applied by Members during a transition period for 
the integration of the textiles and clothing sector into GATT 1994. 
2. Members agree to use the provisions of paragraph 18of Article 2 and paragraph 6(b) of Article 6 
in such a way as to permit meaningful increases in access, possibilities for small suppliers and the 
development of commercially significant trading opportunities for new entrants in the field of textiles 
and clothing trade.1 
3. Members shall have due regard to the situation of those Members which have not accepted 
the Protocols extending the Arrangement Regarding International Trade in Textiles (referred to in this 
Agreement as the "MFA") since 1986 and, to the extent possible, shall afford them special treatment 
in applying the provisions of this Agreement. 
4. Members agree that the particular interests ofthe cotton-producing exporting Members should, 
in consultation with them, be reflected in the implementation of the provisions of this Agreement. 
5. In order to faciliutc the integration ofthe textiles and clothing sector into GATT 1994, Members 
should allow for continuous autonomous industrial adjustment and increased competition in their markets. 
6. Unless otherwise provided in this Agreement, its provisions shall not affect the rights and 
obligations of Members under the provisions of the WTO Agreement and the Multilateral Trade 
Agreements. 
7. The textile and clothing products to which this Agreement applies are set out in the Annex. 
'To the extent possible, exports from a least-developed country Member may also benefit from this provision. 
Page 86 
Article 2 
1. All quantitative restrictions within bilateral agreements, maintained under Article 4 or notified 
under Article 7 or 8 ofthe MFA in force on the day before the entry into force ofthe WTO Agreement 
shall, within 60 days following such entry into force, be notified in detail, including the restraint levels, 
growth rates and flexibility provisions, by the Members mainuining such restrictions to the Textiles 
Monitoring Body provided for in Article 8 (referred to in this Agreement as the "TMB"). Members 
agree that as of the date of entry into force of the WTO Agreement, all such restrictions maintained 
between GATT 1947 contracting parties, and in place on the day before such entry into force, shall 
be governed by the provisions of this Agreement. 
2. The TMB shall circulate these notifications to all Members for their information. It is open 
to any Member to bring to the attention ofthe TMB, within 60 days ofthe circulation ofthe notifications, 
any observations it deems appropriate with regard to such notifications. Such observations shall be 
circulated to the other Members for their information. The TMB may make recommendations, as 
appropriate, to the Members concerned. 
3. When the 12-month period of restrictions to be notified under paragraph 1 does not coincide 
with the 12-month period immediately preceding the date of entry into force ofthe WTO Agreement, 
the Members concerned should mutually agree on arrangements to bring the period of restrictions into 
line with .the agreement year, and to establish notional base levels of such restrictions in order to 
implement the provisions of this Article. Concerned Members agree to enter into consultations promptly 
upon request with a view to reaching such mutual agreement. Any such arrangements shall take into 
account, inter alia, seasonal patterns of shipments in recent years. The results of these consultations 
shall be notified to the TMB, which shall make such recommendations as it deems appropriate to the 
Members concerned. 
4. The restrictions notified under paragraph 1 shall be deemed to constitute the totality of such 
restrictions applied by the respective Members on the day before the entry into force ofthe WTO 
Agreement. No new restrictions in terms of products or Members shall be introduced except under 
the provisions of this Agreement or relevant GATT 1994 provisions.3 Restrictions not notified within 
60 days of the date of entry into force of the WTO Agreement shall be terminated forthwith. 
5. Any unilateral measure uken under Article 3 ofthe MFA prior to the date of entry into force 
ofthe WTO Agreement may remain in effect for the duration specified therein, but not exceeding 12 
months, if it has been reviewed by the Textiles Surveillance Body,(referred to in this Agreement as 
the "TSB") established under the MFA. Should the TSB not have had the opportunity to review any 
such unilateral measure, it shall be reviewed by the TMB in accordance with the rules and procedures 
governing Anicle 3 measures under the MFA. Any measure applied under an MFA Article 4agreement 
prior to the date of entry into force of the WTO Agreement that is the subject of a dispute which the 
TSB has not had the opportunity to review shall also be reviewed by the TMB in accordance with the 
MFA rules and procedures applicable for such a review. 
6. On the date of entry into force ofthe WTO Agreement, each Member shall integrate into GATT 
1994 products which accounted for not less than 16 per cent ofthe total volume ofthe Member's 1990 
imports ofthe products in the Annex, in terms of HS lines or categories. The products to be integrated 
'The "agreement year" is defined to mean a 12-month period beginning from the date of entry into force ofthe WTO 
Agreement and at the subsequent 12-month intervals. 
The relevant GATT 1994 provisions shall not include Anicle XIX in respect of products not yet integrated into GATT 1994. 
except as specifically provided in paragraph 3 of the Annex. 
Page 87 
shall encompass products from each of the following four groups: tops and yarns, fabrics, made-up 
textile products, and clothing. 
7. Full deuils of the actions to be uken pursuant to paragraph 6 shall be notified by the Members 
concerned according to the following: 
(a) Members mainuining restrictions falling under paragraph 1 undertake, notwithstanding 
the date of entry into force ofthe WTO Agreement, to notify such deuils to the GATT 
Secretariat not later than the date determined by the Ministerial Decision of 15 April 
1994. The GATT Secreuriat shall promptly circulate these notifications to the other 
participants for information. These notifications will be made available to the TMB, 
when established, for the purposes of paragraph 21; 
(b) Members which have, pursuant to paragraph 1 of Article 6, reuined the right to use 
the provisions of Article 6, shall notify such details to the TMB not later than 60 days 
following the date of entry into force of the WTO Agreement, or, in the case of those 
Members covered by paragraph 3 of Article 1, not later than at the end of the 12th 
month that the WTO Agreement is in effect. The TMB shall circulate these notifications 
. to the other Members for information and review them as provided in paragraph 21. 
8. The remaining products, i.e. the products not integrated into GATT 1994 under paragraph 6, 
shall be integrated, in terms of HS lines or categories, in three suges, as follows: 
(a) on the first day of the 37th month that the WTO Agreement is in effect, products which 
. accounted for not less than 17 per cent of the total volume of the Member's 1990 
imports of the products in the Annex. The products to be integrated by the Members 
shall encompass products from each of the following four groups: tops and yarns, 
fabrics, made-up textile products, and clothing; 
(b) on the first day of the 85th month that the WTO Agreement is in effect, products which 
accounted for not less than 18 per cent of the total volume of the Member's 1990 
imports of the products in the Annex. The products to be integrated by the Members 
shall encompass products from each of the following four groups: tops and yarns, 
fabrics, made-up textile products, and clothing; 
(c) on the first day of the 121st month that the WTO Agreement is in effect, the textiles 
and clothing sector shall stand integrated into GATT 1994, all restrictions under this 
Agreement having been eliminated. 
9. Members which have notified, pursuant to paragraph 1 of Article 6, their intention not to retain 
the right to use the provisions of Article 6 shall, for the purposes of this Agreement, be deemed to 
have integrated their textiles and clothing products into GATT 1994. Such Members shall, therefore, 
be exempted from complying with the provisions of paragraphs 6 to 8 and 11. 
10. Nothing in this Agreement shall prevent a Member which has submitted an integration programme 
pursuant to paragraph 6 or 8 from integrating products into GATT 1994 earlier than provided for in 
such a programme. However, any such integration of products shall take effect at the beginning of 
an agreement year, and deuils shall be notified to the TMB at least three months prior thereto for 
circulation to all Members. 
11. The respective programmes of integration, in pursuance of paragraph 8, shall be notified in 
detail to the TMB at least 12 months before their coming into effect, and circulated by the TMB to 
all Members. 
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12. The base levels of the restrictions on the remaining products, mentioned in paragraph 8, shall 
be the restraint levels referred to in paragraph 1. 
13. During Stage 1 of this Agreement (from the date of entry into force ofthe WTO Agreement 
to the 36th month that it is in effect, inclusive) the level of each restriction under MFA bilateral 
agreements in force for the 12-month period prior to the date of entry into force ofthe WTO Agreement 
shall be increased annually by not less than the growth rate established for the respective restrictions, 
increased by 16 per cent. 
14. Except where thé Council for Trade in Goods or the Dispute Settlement Body decides otherwise 
under paragraph 12 of Article 8, the level of each remaining restriction shall be increased annually 
during subsequent stages of this Agreement by not less than the following: 
(a) for Suge 2 (from the 37th to the 84th month that the WTO Agreement is in effect. 
inclusive), the growth rate for the respective restrictions during Stage 1, increased by 
25 per cent; 
(b) for Stage 3 (from the 85th to the 120th month that the WTO Agreement is in effect, 
inclusive), the growth rate for the respective restrictions during Stage 2, increased by 
27 per cent. 
15. Nothing in this Agreement shall prevent a Member from eliminating any restriction maintained 
pursuant to this Article, effective at the beginning of any agreement year during the transition period. 
provided the exporting Member concerned and the TMB are notified at least three months prior to 
the elimination coming into effect. The period for prior notification may be shortened to 30 days with 
the agreement of the restrained Member. The TMB shall circulate such notifications to all Members 
In considering the elimination of restrictions as envisaged in this paragraph, the Members concerned 
shall take into account the treatment of similar exports from other Members. 
16. Flexibility provisions, i.e. swing, carryover and carry forward, applicable to all restrictions 
maintained pursuant to this Article, shall be the same as those provided for in MFA bilateral agreements 
for the 12-month period prior to the entry into force of the WTO Agreement. No quantitative limits 
shall be placed or maintained on the combined use of swing, carryover and carry forward. 
17. Administrative arrangements, as deemed necessary in relation to the implementation of any 
provision of this Article, shall be a matter for agreement between the Members concerned. Any such 
arrangements shall be notified to the TMB. 
18. As regards those Members whose exports are subject to restrictions on the day before the entry 
into force of the WTO Agreement and whose restrictions represent 1.2 per cent or less of the total 
volume ofthe restrictions applied by an importing Member as of 31 December 1991 and notified under 
this Article, meaningful improvement in access for their exports shall be provided, at the entry into 
force of the WTO Agreement and for the duration of this Agreement, through advancement by one 
stage of the growth rates set out in paragraphs 13 and 14, or through at least equivalent changes as 
may be mutually agreed with respect to a different mix of base levels, growth and flexibility provisions. 
Such improvements shall be notified to the TMB. 
19. In any case, during the duration of this Agreement, in which a safeguard measure is initiated 
by a Member under Article XIX of GATT 1994 in respect of a particular product during a period of 
one year immediately following the integration ofthat product into GATT 1994 in accordance with 
the provisions of this Article, the provisions of Article XIX, as interpreted by the Agreement on 
Safeguards, will apply, save as set out in paragraph 20. 
Page 89 
20. Where such a measure is applied using non-tariff means, the importing Member concerned 
shall apply the measure in a manner as set forth in paragraph 2(d) of Article XIII of GATT 1994 at 
the request of any exporting Member whose exports of such products were subject to restrictions under 
this Agreement at any time in the one-year period immediately prior to the initiation, of the safeguard 
measure. The exporting Member concerned shall administer such a measure. The applicable level 
shall not reduce the relevant exports below the level of a recent representative period, which shall 
normally be the average of exports from the Member concerned in the last three representative years 
for which statistics are available. Furthermore, when the safeguard measure is applied for more than 
one year, the applicable level shall be progressively liberalized at regular intervals during the period 
of application. In such cases the exporting Member concerned shall not exercise the right of suspending 
substantially equivalent concessions or other obligations under paragraph 3(a) of Article XIX of GATT 
1994. 
21. The TMB shall keep under review the implementation of this Article. It shall, at the request 
of any Member, review any particular matter with reference to the implementation of the provisions 
of this Article. It shall make appropriate recommendations or findings within 30 days to the Member 
or Members concerned, after inviting the participation of such Members. 
Article 3 
1. Within 60 days following the date of entry into force of the WTO Agreement, Members 
maintaining restrictions4 on textile and clothing products (other than restrictions maintained under the 
MFA and covered by the provisions of Article 2), whether consistent with GATT 1994 or not, shall 
(a) notify them in detail to the TMB, or (b) provide to the TMB notifications with respect to them 
which have been submitted to any other WTO body. The notifications should, wherever applicable, 
provide information with respect to any GATT 1994 justification for the restrictions, including GATT 
1994 provisions on which they are based. 
2. Members maimaining restrictions falling under paragraph 1, except those justified under a GATT 
1994 provision, shall either: 
(a) bring them into conformity with GATT 1994 within one year following the entry into 
force of the WTO Agreement, and notify this action to the TMB for its information; 
or 
(b) phase them out progressively according to a programme to be presented to the TMB 
by the Member maintaining the restrictions not later than six months after the date 
of entry into force of the WTO Agreement. This programme shall provide for all 
restrictions to be phased out within a period not exceeding the duration of this 
Agreement The TMB may make recommendations to the Member concerned with 
respect to such a programme. 
3. During the duration of this Agreement, Members shall provide to the TMB, for its information, 
notifications submitted to any other WTO bodies with respect to any new restrictions or changes in 
existing restrictions on textile and clothing products, uken under any GATT 1994 provision, within 
60 days of their coming into effect. 
4. It shall be open to any Member to make reverse notifications to the TMB, for its information, 
in regard to the GATT 1994 justification, or in regard to any restrictions that may not have been notified 
'Restrictions denote all unilateral quantitative restrictions, bilateral arrangements and other measures having a similar 
effect. 
Page 90 
under the provisions of this Article. Actions with respect to such notifications may be pursued by-
any Member under relevant GATT 1994 provisions or procedures in the appropriate WTO body. 
5. The TMB shall circulate the notifications made pursuant to this Article to all Members for 
their information. 
Article 4 
1. Restrictions referred to in Article 2, and those applied under Article 6, shall be administered 
by the exporting Members. Importing Members shall not be obliged to accept shipments in excess 
of the restrictions notified under Article 2, or of restrictions applied pursuant to Article 6. 
2. Members agree that the introduction of changes, such as changes in practices, rules, procedures 
and categorization of textile and clothing products, including those changes relating to the Harmonized 
System, in the implementation or administration of those restrictions notified or applied under this 
Agreement should not: upset the balance of rights and obligations between the Members concerned 
under this Agreement; adversely affect the access available to a Member; impede the full utilization 
of such access; or disrupt trade under this Agreement. 
3. If a product which constitutes only part of a restriction is notified for integration pursuant to 
the provisions of Article 2, Members agree that any change in the level of that restriction shall not 
upset the balance of rights and obligations between the Members concerned under this Agreement. 
4. When changes mentioned in paragraphs 2 and 3 are necessary, however, Members agree that 
the Member initiating such changes shall inform and, wherever possible, initiate consultations with 
the affected Member or Members prior to the implementation of such changes, with a view to reaching 
a mutually acceptable solution regarding appropriate and equitable adjustment. Members further agree 
that where consultation prior to implementation is not feasible, the Member initiating such changes 
will, at the request of the affected Member, consult, within 60 days if possible, with the Members 
concerned with a view to reaching a mutually satisfactory solution regarding appropriate and equitable 
adjustments. If a mutually satisfactory solution is not reached, any Member involved may refer the 
matter to the TMB for recommendations as provided in Article 8. Should the TSB not have had the 
opportunity to review a dispute concerning such changes introduced prior to the entry into force of 
the WTO Agreement, it shall be reviewed by the TMB in accordance with the rules and procedures 
of the MFA applicable for such a review. 
Article 5 
1. Members agree that circumvention by transshipment, re-routing, false declaration concerning 
country or place of origin, and falsification of official documents, frustrates the implementation of 
this Agreement to integrate the textiles and clothing sector into GATT 1994. Accordingly, Members 
should establish the necessary legal provisions and/or administrative procedures to address and take 
action against such circumvention. Members further agree that, consistent with their domestic laws 
and procedures, they will cooperate fully to address problems arising from circumvention. 
2. Should any Member believe that this Agreement is being circumvented by transshipment, re­
routing, false declaration concerning country or place of origin, or falsification of official documents, 
and that no. or inadequate, measures are being applied to address and/or to take action against such 
circumvention, that Member should consult with the Member or Members concerned with a view to 
seeking a mutually satisfactory solution. Such consulutions should be held promptly, and within 30 days 
Page 91 
when possible. If a mutually satisfactory solution is not reached, the matter may be referred by any 
Member involved to the TMB for recommendations. 
3. Members agree to take necessary action, consistent with their domestic laws and procedures, 
to prevent, to investigate and, where appropriate, to take legal and/or administrative action against 
circumvention practices within their territory. Members agree to cooperate fully, consistent with their 
domestic laws and procedures, in instances of circumvention or alleged circumvention of this Agreement, 
to esublish the relevant facts in the places of import, export and, where applicable, transshipment. 
It is agreed that such cooperation, consistent with domestic laws and procedures, will include: 
investigation of circumvention practices which increase restrained exports to the Member mainuining 
such restraints; exchange of documents, correspondence, reports and other relevant information to 
the extent available; and faciliution of plant visits and contacts, upon request and on a case-by-case 
basis. Members should endeavour to clarify the circumstances of any such instances of circumvention 
or alleged circumvention, including the respective roles of the exporters or importers involved. 
4. Where, as a result of investigation, there is sufficient evidence that circumvention has occurred 
(e.g. where evidence is available concerning the country or place of true origin, and the circumstances 
of such circumvention). Members agree that appropriate action, to the extent necessary to address the 
problem, should be taken. Such action may include the denial of entry of goods or, where goods have 
entered, having due regard to the actual circumstances and the involvement of the country or place 
of true origin, the adjustment of charges to restraint levels to reflect the true country or place of origin. 
Also, where there is evidence ofthe involvement ofthe territories ofthe Members through which the 
goods have been transshipped, such action may include the introduction of restraints with respect to 
such Members. Any such actions, together with their timing and scope, may be uken after consulutions 
held with a view to arriving at a mutually satisfactory solution between the concerned Members and 
shall be notified to the TMB with full justification. The Members concerned may agree on other 
remedies in consultation. Any such agreement shall also be notified to the TMB, and the TMB may 
make such recommendations to the Members concerned as if deems appropriate. If a mutually 
satisfactory solution is not reached, any Member concerned may refer the matter to the TMB for prompt 
review and recommendations. 
5 Members note that some cases of circumvention may involve shipments transiting through 
countries or places with no changes or alterations made to the goods conuined in such shipments in 
the places of transit. They note that it may not be generally practicable for such places of transit to 
exercise control over such shipments. 
6 Members agree that false declaration concerning fibre content, quantities, description or 
classification of merchandise also frustrates the objective of this Agreement. Where there is evidence 
that any such false declaration has been made for purposes of circumvention, Members agree that 
appropriate measures, consistent with domestic laws and procedures, should be uken against the exporters 
or importers involved. Should any Member believe that this Agreement is being circumvented by such 
false declaration and that no, or inadequate, administrative measures are being applied to address and/or 
to take action against such circumvention, that Member should consult promptly with the Member 
involved with a view to seeking a mutually satisfactory solution. If such a solution is not reached, 
the matter may be referred by any Member involved to the TMB for recommendations. .This provision 
is not intended to prevent Members from making technical adjustments when inadvertent errors in 
declarations have been made. 
Page 92 
Article 6 
1. Members recognize that during the transition period it may be necessary to apply a specific 
transitional safeguard mechanism (referred to in this Agreement as "transitional safeguard"). The 
transitional safeguard may be applied by any Member to products covered by the Annex, except those 
integrated into GATT 1994 under the provisions of Article 2. Members not mainuining restrictions 
falling under Article 2 shall notify the TMB within 60 days following the date of entry into force of 
the WTO Agreement, as to whether or not they wish to reuin the right to use the provisions of this 
Article. Members which have not accepted the Protocols extending the MFA since 1986 shall make 
such notification within 6 months following the entry into force ofthe WTO Agreement. The transitional 
safeguard should be applied as sparingly as possible, consistently with the provisions of this Article 
and the effective implemenution of the integration process under this Agreement. 
2. Safeguard action may be uken under this Article when, on the basis of a determination by 
a Member5, it is demonstrated that a particular product is being imported into its territory in such 
increased quantities as to cause serious damage, or actual threat thereof, to the domestic industry 
producing like and/or directly competitive products. Serious damage or actual threat thereof must 
demonstrably be caused by such increased quantities in toul imports of that product and not by such 
other factors as technological changes or changes in consumer preference. 
3. In making a determination of serious damage, or actual threat thereof, as referred to in 
paragraph 2, the Member shall examine the effect of those imports on the state ofthe particular industry, 
as reflected in changes in such relevant economic variables as output, productivity, utilization of capacity, 
inventories, market share, exports, wages, employment, domestic prices, profits and investment; none 
of which, either alone or combined with other factors, can necessarily give decisive guidance. 
4. Any measure invoked pursuant to the provisions of this Article shall be applied on a Member-by-
Member basis. The Member or Members to whom serious damage, or actual threat thereof, referred 
to in paragraphs 2 and 3, is attributed, shall be determined on the basis of a sharp and substantial 
increase in imports, actual or imminent6, from such a Member or Members individually, and on the 
basis of the level of imports as compared with imports from other sources, market share, and import 
and domestic prices at a comparable stage of commercial transaction; none of these factors, either 
alone or combined with other factors, can necessarily give decisive guidance. Such safeguard measure 
shall not be applied to the exports of any Member whose exports ofthe particular product are already 
under restraint under this Agreement. 
5. The period of validity of a determination of serious damage or actual threat thereof for the 
purpose of invoking safeguard action shall not exceed 90 days from the date of initial notification as 
set forth in paragraph 7. 
6. In the application ofthe transitional safeguard, particular account shall be taken ofthe interests 
of exporting Members as set out below: 
\\ customs union may apply a safeguard measure as a single unit or on behalf of a member State. When a customs 
union applies a safeguard measure as a single unit, all the requirements for the determination of serious damage or actual 
threat thereof under this Agreement shall be based on the conditions existing in the customs union as a whole. When a safeguard 
measure is applied on behalf of a member State, all the requirements for the determination of serious damage, or actual threat 
thereof, shall be based on the conditions existing in that member State and the measure shall be limited to that member State. 
*Such an imminent increase shall be a measurable one and shall not be determined to exist on the basis of allegation, 
conjecture or mere possibility arising, for example, from the existence of production capacity in the exporting Members. 
Page 93 
(a) least-developed country Members shall be accorded treatment significantly more 
favourable than that provided to the other groups of Members referred to in this 
paragraph, preferably in all its elements but, at least, on overall terms; 
(b) Members whose total volume of textile and clothing exports is small in comparison 
with the toul volume of exports of other Members and who account for only a small 
percenuge of toul imports ofthat product into the importing Member shall be accorded 
differential and more favourable treatment in the fixing ofthe economic terms provided 
in paragraphs 8, 13 and 14. For those suppliers, due account will be taken, pursuant 
to paragraphs 2 and 3 of Article 1, ofthe future possibilities for the development of 
their trade and the need to allow commercial quantities of imports from them; 
(c) with respect to wool products from wool-producing developing country Members whose 
economy and textiles and clothing trade are dependent on the wool sector, whose total 
textile and clothing exports consist almost exclusively of wool products, and whose 
volume of textiles and clothing trade is comparatively small in the markets of the 
importing Members, special consideration shall be given to the export needs of such 
Members when considering quota levels, growth rates and flexibility; 
(d) more favourable treatment shall be accorded to re-imports by a Member of textile and 
clothing products which that Member has exported to another Member for processing 
and subsequent reimportation, as defined by the laws and practices of the importing 
Member, and subject to satisfactory control and certification procedures, when these 
products are imported from a Member for which this type of trade represents a 
significant proportion of its total exports of textiles and clothing. 
7. The Member proposing to take safeguard action shall seek consultations with the Member or 
Members which would be affected by such action. The request for consultations shall be accompanied 
by specific and relevant factual information, as up-to-date as possible, particularly in regard to: {a) the 
factors, referred to in paragraph 3, on which the Member invoking the action has based its determination 
ofthe existence of serious damage or actual threat thereof; and (b) the factors, referred to in paragraph 
4. on the basis of which it proposes to invoke the safeguard action with respect to the Member or 
Members concerned. In respect of requests made under this paragraph, the information shall be related. 
as closely as possible, to identifiable segments of production and to the reference period set out in 
paragraph 8. The Member invoking the action shall also indicate the specific level at which imports 
ofthe product in question from the Member or Members concerned are proposed to be restrained; 
such level shall not be lower than the level referred to in paragraph 8. The Member seeking consultations 
shall, at the same time, communicate to the Chairman of the TMB the request for consulutions, including 
all the relevant factual data outlined in paragraphs 3 and 4, together with the proposed restraint level. 
The Chairman shall inform the members of the TMB of the request for consultations, indicating the 
requesting Member, the product in question and the Member having received the request. The Member 
or Members concerned shall respond to this request promptly and the consultations shall be held without 
delay and normally be completed within 60 days of the date on which the request was received. 
8. If, in the consultations, there is mutual understanding that the situation calls for restraint on 
the exports ofthe particular product from the Member or Members concerned, the level of such restraint 
shall be fixed at a level not lower than the actual level of exports or imports from the Member concerned 
during the 12-month period terminating two months preceding the month in which the request foi 
consultation was made. 
9. Deuils ofthe agreed restraint measure shall be communicated to the TMB within 60 days from 
the date of conclusion of the agreement. The TMB shall determine whether the agreement is justified 
in accordance with the provisions of this Article. In order to make its determination, the TMB shall 
Page 94 
have available to it the factual dau provided to the Chairman ofthe TMB, referred to in paragraph 7, 
as well as any other relevant information provided by the Members concerned. The TMJB may make 
such recommendations as it deems appropriate to the Members concerned. 
10. If, however, after the expiry of the period of 60 days from the date on which the request for 
consulutions was received, there has been no agreement between the Members, the Member which 
proposed to take safeguard action may apply the restraint by date of import or date of export, in 
accordance with the provisions of this Article, within 30 days following the 60-day period for 
consulutions, and at the same time refer the matter to the TMB. It shall be open to either Member 
to refer the matter to the TMB before the expiry ôf the period of 60 days. In either case, the TMB 
shall promptly conduct an examination ofthe matter, including the determination of serious damage, 
or actual threat thereof, and its causes, and make appropriate recommendations to the Members concerned 
within 30 days. In order to conduct such examination, the TMB shall have available to it the factual 
data provided to the Chairman of the TMB, referred to in paragraph 7, as well as any other relevant 
information provided by the Members concerned. 
11. In highly unusual and critical circumstances, where delay would cause damage which would 
be difficult to repair, action under paragraph 10 may be taken provisionally on the condition that the 
request for consultations and notification to the TMB shall be effected within no more than five working 
days after taking the action. In the case that consultations do not produce agreement, the TMB shall 
be notified at the conclusion of consultations, but in any case no later than 60 days from the date of 
the implementation of the action. The TMB shall promptly conduct an examination of the matter, 
and make appropriate recommendations to the Members concerned within 30 days. In the case that 
consultations do produce agreement. Members shall notify the TMB upon conclusion but, in any case, 
no later than 90 days from the date ofthe implementation ofthe action. The TMB may make such 
recommendations as it deems appropriate to the Members concerned. 
12. A Member may maintain measures invoked pursuant to the provisions of this Article: (a) for 
up to three years without extension, or (b) until the product is integrated into GATT 1994, whichever 
comes first. 
13. Should the restraint measure remain in force for a period exceeding one year, the level for 
subsequent years shall be the level specified for the first year increased by a growth rate of not less 
than 6 per cent per annum, unless otherwise justified to the TMB. The restraint level for the product 
concerned may be exceeded in either year of any two subsequent years by carry forward and/or carryover 
of 10 per cent of which carry forward shall not represent more than 5 per cent. No quantitative limits 
shall be placed on the combined use of carryover, carry forward and the provision of paragraph 14. 
14. When more than one product from another Member is placed under restraint under this Article 
by a Member, the level of restraint agreed, pursuant to the provisions of this Article, for each of these 
products may be exceeded by 7 per cent, provided that the total exports subject to restraint do not exceed 
the total of the levels for all products so restrained under this Article, on the basis of agreed common 
units. Where the periods of application of restraints of these products do not coincide with each other, 
this provision shall be applied to any overlapping period on a pro rata basis. 
15. If a safeguard action is applied under this Article to a product for which a restraint was previously 
in place under the MFA during the 12-month period prior to the entry into force ofthe WTO Agreement, 
or pursuant to the provisions of Article 2 or 6. the level ofthe new restraint shall be the level provided 
for in paragraph 8 unless the new restraint comes into force within one year of: 
(a) the date of notification referred to in paragraph 15 of Article 2 for the elimination of 
the previous restraint; or 
Page 95 
(b) the date of removal of the previous restraint put in place pursuant to the provisions 
of this Article or of the MFA 
in which case the level shall not be less than the higher of (i) the level of restraint for the last 12-month 
period during which the product was under restraint, or (ii) the level of restraint provided for in 
paragraph 8. 
16. When a Member which is not mainuining a restraint under Article 2 decides to apply a restraint 
pursuant to the provisions of this Article, it shall esublish appropriate arrangements which: (a) take 
full account of such'factors as esublished tariff classification and quantiutive units based on normal 
commercial practices in export and import transactions, both as regards fibre composition and in terms 
of competing for the same segment of its domestic market, and (b) avoid over-categorization. The 
request for consultations referred to in paragraphs 7 or 11 shall include full information on such 
arrangements. 
Article 7 
1 As part of the integration process and with reference to the specific commitments undertaken 
by the Members as a result of the Uruguay Round, all Members shall take such actions as may be 
necessary to abide by GATT 1994 rules and disciplines so as to: 
(a) achieve improved access to markets for textile and clothing products through such 
measures as uriff reductions and bindings, reduction or elimination of non-tariff barriers, 
and facilitation of customs, administrative and licensing formalities; • 
(b) ensure the application of policies relating to fair and equitable trading conditions as 
regards textiles and clothing in such areas as dumping and anti-dumping rules and 
procedures, subsidies and countervailing measures, and protection of intellectual property 
rights; and 
(c) avoid discrimination against imports in the textiles and clothing sector when taking 
measures for general trade policy reasons. 
Such actions shall be without prejudice to the rights and obligations of Members under GATT 1994. 
2 Members shall notify- to the TMB the actions referred to in paragraph 1 which have a bearing 
on the implementation of this Agreement. To the extent that these have been notified to other WTO 
bodies, a summary. with reference to the original notification, shall be sufficient to fulfil the requirements 
under this paragraph It shall be open to any Member to make reverse notifications to the TMB. 
3 Where any Member considers that another Member has not uken the actions referred to in 
paragraph 1. and that the balance of rights and obligations under this Agreement has been upset, that 
Member may bring the matter before the relevant WTO bodies and inform the TMB. Any subsequent 
findings or conclusions by the WTO bodies concerned shall form a part ofthe TMB's comprehensive 
report. 
Page 96 
Article 8 
1. In order to supervise the implemenution of this Agreement, to examine all measures uken 
under this Agreement and their conformity therewith, and to take the actions specifically required of 
it by this Agreement, the Textiles Monitoring Body ("TMB") is hereby esublished. The TMB shall 
consist of a Chairman and 10 members. Its membership shall be balanced and broadly representative 
ofthe Members and shall provide for roution of its members at appropriate intervals. The members 
shall be appointed by Members designated by the Council for Trade in Goods to serve on the TMB, 
discharging their function on an ad personam basis. 
2. The TMB shall develop its own working procedures. It is understood, however, that consensus 
within the TMB does not require the assent or concurrence of members appointed by Members involved 
in an unresolved issue under review by the TMB. 
3. The TMB shall be considered as a standing body and shall meet as necessary to carry out the 
functions required of it under this Agreement. It shall rely on notifications and information supplied 
by the Members under the relevant Articles of this Agreement, supplemented by any additional 
information or necessary details they may submit or it may decide to seek from them. It may also 
rely on notifications to and reports from other WTO bodies and from such other sources as it may 
deem appropriate. 
4. Members shall afford to each other adequate opportunity for consultations with respect to any 
matters affecting the operation of this Agreement. 
5. In the absence of any mutually agreed solution in the bilateral consultations provided for in 
this Agreement, the TMB shall, at the request of either Member, and following a thorough and prompt 
consideration ofthe matter, make recommendations to the Members concerned. 
6. At the request of any Member, the TMB shall review promptly any particular matter which 
that Member considers to be detrimental to its interests under this Agreement and where consultations 
between it and the Member or Members concerned have failed to produce a mutually satisfactory 
solution. On such maners. the TMB may make such observations as it deems appropriate to the Members 
concerned and for the purposes of the review provided for in paragraph 11. 
7. Before formulating its recommendations or observations, the TMB shall invite participation 
of such Members as may be directly affected by the matter in question. 
8 Whenever the TMB is called upon to make recommendations or findings, it shall do so, 
preferably within a period of 30 days, unless a different time period is specified in this Agreement. 
All such recommendations or findings shall be communicated to the Members directly concerned. 
All such recommendations or findings shall also be communicated to the Council for Trade in Goods 
for its information 
9. The Members shall endeavour to accept in full the recommendations ofthe TMB, which shall 
exercise proper surveillance of the implementation of such recommendations. 
10. If a Member considers itself unable to conform with the recommendations ofthe TMB, it shall 
provide the TMB with the reasons therefor not later than one month after receipt of such 
recommendations. Following thorough consideration ofthe reasons given, the TMB shall issue any 
further recommendations it considers appropriate forthwith. If, after such further recommendations, 
the matter remains unresolved, either Member may bring the matter before the Dispute Settlement 
Body and invoke paragraph 2 of Article XXIII of GATT 1994 and the relevant provisions of the Dispute 
Settlement Understanding. 
Page 97 
11. In order to oversee the implemenution of this Agreement, the Council for Trade in Goods 
shall conduct a major review before the end of each stage of the integration process. To assist in this 
review, the TMB shall, at least five months before the end of each suge, transmit to the Council for 
Trade in Goods a comprehensive report on the implemenution of this Agreement during the suge under 
review, in particular in matters with regard to the integration process, the application ofthe transitional 
safeguard mechanism, and relating to the application of GATT 1994 rules and disciplines as defined 
in Articles 2, 3, 6 and 7 respectively. The TMB's comprehensive report may include any 
recommendation as deemed appropriate by the TMB to the Council for Trade in Goods. 
12. In the light of its review the Council for Trade in Goods shall by consensus take such decisions 
as it deems appropriate to ensure that the balance of rights and obligations embodied in this Agreement 
is not being impaired. For the resolution of any disputes that may arise with respect to matters referred 
to in Article 7, the Dispute Settlement Body may authorize, without prejudice to the final date set out 
under Article 9, an adjustment to paragraph 14 of Article 2, for the stage subsequent to the review, 
with respect to any Member found not to be complying with its obligations under this Agreement. 
Article 9 
This Agreement and all restrictions thereunder shall stand terminated on the first day of the 
121st month that the WTO Agreement is in effect, on which date the textiles and clothing sector shall 
be fully integrated into GATT 1994. There shall be no extension of this Agreement. 
Page 98 
ANNEX 
LIST OF PRODUCTS COVERED BY THIS AGREEMENT 
1. This Annex lists textile and clothing products defined by Harmonized Commodity Description 
and Coding System (HS) codes at the sixndigit level. 
2. Actions under the safeguard provisions in Article 6 will be uken with respect to particular 
textile and clothing products and not on the basis of the HS lines per se. 
3. Actions under the safeguard provisions in Article 6 of this Agreement shall not apply to: 
(a) developing country Members' exports of handloom fabrics of the cottage industry, 
or hand-made cottage industry products made of such handloom fabrics, or traditional 
folklore handicraft textile and clothing products, provided that such products are properly 
certified under arrangements esublished between the Members concerned; 
(b) historically traded textile products which were internationally traded in commercially 
significant quantities prior to 1982, such as bags, sacks, carpetbacking, cordage, 
luggage, mats, mattings and carpets typically made from fibres such as jute, coir, sisal, 
abaca, maguey and henequen: 
(c) products made of pure silk. 
For such products, the provisions of Article XIX of GATT 1994, as interpreted by the Agreement 
on Safeguards, shall be applicable. 
Page 99 
Products within Section XI (Textiles and Textile Articles) of the 
Harmonized Commodity Description and Coding System (HS) Nomenclature 
HS No. Product Description 
Ch. 50 Silk 
5004.00 Silk yarn (other than yarn spun from silk waste) not put up for reuil sale 
5005.00 Yarn spun from silk waste, not put up for retail sale 
5006.00 Silk yarn&yarn spun from silk waste, put up f reuil sale; silk-worm gut 
5007.10 Woven fabrics of noil silk 
5007.20 Woven fabrics of silk/silk waste, other than noil silk, 85%/more of such fibres 
5007.90 Woven fabrics of silk, nes 
Ch. 51 Wool, fine/coarse animal hair, horsehair yarn & fabric 
5105.10 Carded wool 
5105.21 Combed wool in fragments 
5105.29 Wool tops and other combed wool, other than combed wool in fragments 
5105.30 Fine animal hair, carded or combed 
5106.10 Yarn of carded wool, > / = 85% by weight of wool, nt put up for reuil sale 
5106.20 Yarn of carded, wool, < 85% by weight of wool, not put up for reuil sale 
5107.10 Yarn of combed wool, > /=85% by weight of wool, not put up for retail sale 
5107.20 Yarn of combed wool, < 85% by weight of wool, not put up for retail sale 
5108.10 Yarn of carded fine animal hair, not put up for reuil sale 
5108.20 Yarn of combed fine animal hair, not put up for reuil sale 
5109.10 Yarn of wool/of fine animal hair, > /=85% by weight of such fibres, put up 
5109.90 Yarn of wool/of fine animal hair, < 85% by weight of such fibres, put up 
5110.00 Yarn of coarse animal hair or of horsehair 
5111.11 Woven fabrics of carded wool/fine animal hair, >/=85% by weight, </ = 300 g/m2 
5111.19 Woven fabrics of carded wool/fine animal hair, > /=85 % by weight, > 300 g/m2 
5111.20 Woven fabric of carded wool/fine animal hair, > / = 85% by wt, mixd w m-m fi 
5111.30 Woven fabric of carded wool/fine animal hair, >/ = 85% by wt, mixd w m-m fib 
5111.90 Woven fabrics of carded wool/fine animal hair, > /= 85% by weight, nes 
5112.11 Woven fabric of combed wool/fine animal hair, > /=85 % by weight, < /=200 g/m2 
5112.19 Woven fabrics of combed wool/fine animal hair, > /=85 % by weight, > 200 g/m2 
5112.20 Woven fabrics of combed wool/fine animal hair, < 85% by wt, mixd w m-m fil 
5112.30 Woven fabrics of combed wool/fine animal hair, < 85% by wt, mixd w m-m fib 
5112.90 Woven fabrics of combed wool/fine animal hair, <85% by weight, nes 
5113.00 Woven fabrics of coarse animal hair or of horsehair 
Ch. 52 Cotton 
5204.11 Cotton sewing thread > /=85% by weight of cotton, not put up for reuil sale 
5204.19 Cotton sewing thread, < 85 % by weight of cotton, not put up for reuil sale 
5204.20 Cotton sewing thread, put up for retail sale 
5205.11 Cotton yarn, > / = 85%,single, uncombed, >/=714.29 dtex, nt put up 
5205.12 Cotton yarn,>/=85%,single, uncombed, 714.29 >dtex>/=232.56, not put up 
5205.13 Cotton yarn, >/ = 85%,single, uncombed, 232.56>dtex>/=192.31, not put up 
5205.14 Cotton yarn,>/ = 85%,single, uncombed, 192.31 >dtex>/=125, not put up 
5205.15 Cotton yarn, > /-85 % .single, uncombed, < 125 dtex, nt put up f retail sale 
5205.21 Cotton yarn,>/=85%, single, combed, >/=714.29, not put up 
5205.22 Cotton yarn, >/=85%,single, combed, 714.29 >dtex>/=232.56, not put up 
5205.23 Cotton yarn,>/=85%, single, combed, 232.56 >dtex>/= 192.31, not put up 
5205.24 Cotton yarn,>/=85%, single, combed, 192.31 >dtex>/= 125, not put up 
Page 100 
HS No. Product Description 
5205.25 Cotton yarn, >/ = 85%,single, combed, < 125 dtex, not put up for reuil sale 
5205.31 Cotton yarn,>/=85%, multi, uncombed, >/ = 714.29 dtex, not put up, nes 
5205.32 Cotton yarn,>/ = 85%,multi, uncombed, 714.29 >dtex>/=232.56, not put up, nes 
5205.33 Cotton yarn,>/ = 85%,multi, uncombed, 232.56 >dtex>/= 192.31, not put up, nes 
5205.34 Cotton yarn,>/ = 85%,multi, uncombed, 192.31 >dtex>/=*125, nt put up, nes 
5205.35 Cotton yarn,>/ = 85%,multi, uncombed, < 125 dtex, not put up, nes 
5205.41 Cotton yarn,>/=85%, multiple, combed,>/=714.29 dtex, not put up, nes 
5205.42 Cotton yarn; >/ = 85%,multi, combed, 714.29 >dtex>/=232.56, nt put up, nes 
5205.43 Cotton yarn, >/ = 85%,multi, combed, 232.56 >dtex>/= 192.31, nt put up, nes 
5205.44 Cotton yarn, >/ = 85%,multiple, combed, 192.31 >dtex>/-125, not put up, nes 
5205.45 Cotton yarn, > / = 85%, multiple, combed, < 125 dtex, not put up, nes 
5206.11 Cotton yarn, <85%, single, uncombed, >/=714.29, not put up 
5206.12 Cotton yarn, <85%, single, uncombed, 714.29 >dtex>/ = 232.56, nt put up 
5206.13 Cotton yarn, <85%, single, uncombed, 232.56 >dtex>/= 192.31, not put up 
5206.14 Cotton yarn, <85%, single, uncombed, 192.31 >dtex>/= 125, nt put up 
5206.15 Cotton yarn, < 85% .single, uncombed, < 125 dtex, not put up for retail sale 
5206.21 Cotton yarn, <85%, single, combed,>/ = 714.29 dtex, nt put up 
5206.22 Cotton yarn, <85%, single, combed, 714.29 >dtex>/ = 232.56, not put up 
5206.23 Cotton yarn, <85%, single, combed, 232.56 >dtex>/= 192.31, not put up 
5206.24 Cotton yarn/< 85%, single, combed, 192.31 >dtex>/=125, not put up 
5206.25 Cotton yarn, < 85%,single, combed, < 125 dtex, not put up for retail sale 
5206.31 Cotton yarn, <85%, multiple, uncombed,>/ = 714.29, not put up, nes 
5206.32 Cotton yarn, <85%,multiple, uncombed, 714.29 >dtex>/ = 232,56, nt put up, nes 
5206.33 Cotton yarn,<85%,multiple, uncombed, 232.56 >dex>/= 192.31, nt put up, nes 
5206.34 Cotton yarn, <85%,multiple, uncombed, 192.31 >dtex>/=125, nt put up. nes 
5206.35 Cotton yarn, <85%, multiple, uncombed, < 125 dtex, not put up, nes 
5206.41 Cotton yarn, <85%, multiple, combed,>/ = 714.29, nt put up, nes 
5206.42 Cotton yarn.<85%.multiple, combed, 714.29 >dtex>/ = 232.56. nt put up, nes 
5206.43 Cotton yarn.<85%,multiple, combed, 232.56 >dtex>/= 192.31, nt put up, nes 
5206.44 Cotton yarn,<85%,multiple, combed, 192.31 >dtex>/=125, nt put up, nes 
5206 45 Cotton yarn. <85%, multiple, combed, < 125 dtex, not put up, nes 
5207.10 Cotton yarn (other than sewing thread)>/ = 85% by weight of cotton, put up 
5207.90 Cotton yarn (other than sewg thread) <85% by wt of cotton, put up f retl sale 
5208.11 Plain weave cotton fabric, >/ = 85%. not more than 100 g/m2, unbleached 
5208.12 Plain weave cotton fabric, > / = 85 %, > 100 g/m2 to 200 g/m2, unbleached 
5208.13 Twill weave cotton fabric, > /-85%, not more than 200 g/m2, unbleached 
5208.19 Woven fabrics of cotton, > / = 85%, not more than 200 g/m2, unbleached, nes 
5208.21 Plain weave cotton fabrics. >/ = 85%, not more than 100 g/m2, bleached 
5208.22 Plain weave cotton fabric. >/ = 85%. > 100 g/m2 to 200 g/m2, bleached 
5208.23 Twill weave cotton fabric. > / = 85%. not more than 200 g/m2, bleached 
5208.29 Woven fabrics of cotton. > / = 85%. nt more than 200 g/m2, bleached, nes 
5208.31 Plain weave cotton fabric, >/ = 85%, not more than 100 g/m2, dyed 
5208.32 Plain weave cotton fabric,>/ = 85%.> 100g/m= to 200g/m=, dyed 
5208.33 Twill weave cotton fabrics, >/ = 85%. not more than 200 g/m2, dyed 
5208.39 Woven fabrics of cotton. > / = 85%, not more than 200 g/m2, dyed, nes 
5208.41 Plain weave cotton fabric. >/ = 85%, not more than 100 g/m2, yarn dyed 
5208 42 Plain weave conon fabrics, >/ = 85%. > 100 g/m2 to 200 g/m2, yarn dyed 
5208.43 Twill weave cotton fabric,>/-85%, not more than 200 g/m2, yarn dyed 
5208.49 Woven fabrics of cotton. > / = 85%,nt more than 200 g/m2, yarn dyed, nes 
5208.51 Plain weave cotton fabrics,>/ = 85%, not more than 100 g/m2, printed 
5208.52 Plain weave cotton fabric. >/ = 85%, > 100 g/m2 to 200 g/m2, printed 
Page 101 
HS No. Product Description 
5208.53 Twill weave cotton fabric, >/ = 85%, not more than 200 g/m2, printed 
5208.59 Woven fabrics of cotton, > / = 85%, not more than 200 g/m2, printed, nes 
5209.11 Plain weave cotton fabric, > / = 85 %, more than 200 g/m2, unbleached 
5209.12 Twill weave cotton fabric, > / = 85 %,. more than 200 g/m2, unbleached 
5209.19 Woven fabrics of cotton, > / = 85%,more than 200 g/m2, unbleached, nes 
5209.21 Plain weave cotton fabric, >/ = 85%, more than 200 g/m2, bleached 
5209.22 Twill weave cotton fabrics, > / = 85%, more than 200 g/m2, bleached 
5209.29 Woven fabrics of cotton, > / = 85%, more than 200 g/m2, bleached, nes 
5209.31 Plain weave cotton fabrics, > / = 85 %, more than 200 g/m2, dyed 
5209.32 Twill weave cotton fabrics, > / = 85%, more than 200 g/m2, dyed 
5209.39 Woven fabrics of cotton, > / = 85%, more than 200 g/m2, dyed, nes 
5209.41 Plain weave cotton fabrics, >I-85%, more than 200 g/m2, yarn dyed 
5209.42 Denim fabrics of cotton, > / = 85%, more than 200 g/m2 
5209.43 Twill weave cotton fab, other than denim. >/ = 85%,more than 200 g/m2. yarn dyed 
52Q9.49 Woven fabrics of cotton. > / = 85%, more than 200 g/m2, yarn dyed, nes 
5209.51 Plain weave cotton fabrics, >/ = 85%, more than 200 g/m2, printed 
5209.52 Twill weave cotton fabrics, >/ = 85%, more than 200 g/m2, printed 
5209.59 Woven fabrics of cotton, > / = 85%, more than 200 g/m2, printed, nes 
5210.11 Plain weave cotton fab, < 85% mixd w m-m fib, not more than 200 g/m2, unbl 
5210.12 Twill weave cotton fab, < 85% mixd w m-m fib, not more than 200 g/m2, unbl 
5210.19 Woven fab of cotton, < 85% mixd with m-m fib,</ = 200 g/m2, unbl, nes 
5210.21 Plain weave cotton fab, < 85% mixd w m-m fib, not more than 200 g/m2. bl 
5210.22 Twill weave cotton fab, < 85% mixd w m-m fib, not more than 200 g/m2, bl 
5210.29 Woven fabrics of cotton. < 85% mixd with m-m fib,</ = 200 g/m2. bl, nes 
5210.31 Plain weave cotton fab, < 85% mixd w m-m fib, not more than 200 g/m2, dyd 
5210.32 Twill weave cotton fab, < 85% mixd w m-m fib, not more than 200 g/m2, dyd 
5210.39 Woven fabrics of cotton. < 85% mixd with m-m fib,</ = 200 g/m2, dyed, nes 
5210.41 Plain weave cotton fab, < 85% mixd w m-m fib, nt mor thn 200g/m2, yarn dyd 
5210.42 Twill weave cotton fab,<85% mixd w m-m fib, nt mor thn 200g/m2, yarn dyd 
5210.49 Woven fabrics of cotton, < 85% mixed w m-m fib,</ = 200g/m2, yarn dyed, nes 
5210.51 Plain weave cotton fab,<85% mixd w m-m fib, nt more thn 200 g/m2, printd 
5210.52 Twill weave cotton fab, < 85% mixd w m-m fib, nt more thn 200g/m2, printd 
5210.59 Woven fabrics of cotton, < 85% mixed with m-m fib,</ = 200g/m2, printed, nes 
5211.11 Plain weave cotton fab, < 85% mixd w m-m fib, more thn 200 g/m2, unbleachd 
5211.12 Twill weave cotton fab,<85% mixed with m-m fib, more than 200 g/m2, unbl 
5211.19 Woven fabrics of cotton, <85% mixd w m-m fib, more thn 200g/m2, unbl, nes 
5211.21 Plain weave cotton fab, < 85% mixd w m-m fib, more than 200 g/m2, bleachd 
5211.22 Twill weave cotton fab, < 85% mixd w m-m fib, more than 200 g/m2, bleachd 
5211.29 Woven fabrics of cotton, < 85% mixd w m-m fib, more than 200 g/m2, bl, nes 
5211.31 Plain weave cotton fab,<85% mixed with m-m fib, more than 200 g/m2, dyed 
5211.32 Twill weave cotton fab, < 85% mixed with m-m fib, more than 200 g/m2, dyed 
5211.39 Woven fabrics of cotton, < 85% mixd w m-m fib, more than 200 g/m2, dyd, nes 
5211.41 Plain weave cotton fab, < 85% mixd w m-m fib, more than 200 g/m2,*yarn dyd 
5211.42 Denim fabrics of cotton, <85% mixed with m-m fib, more than 200 g/m2 
5211.43 Twill weave cotton fab, other than denim, < 85% mixd w m-m fib,>200g/m2, yarn dyd 
5211.49 Woven fabrics of cotton, < 85% mixd with m-m fib, > 200 g/m2, yarn dyed, nes 
5211.51 Plain weave cotton fab, < 85% mixd w m-m fib, more than 200 g/m2, printd 
5211.52 Twill weave cotton fab, < 85% mixd w m-m fib, more than 200 g/m2, printd 
5211.59 Woven fabrics of cotton, <85% mixd w m-m fib, mor thn 200g/m2, printd, nes 
5212.11 Woven fabrics of cotton, weighing not more than 200 g/m2, unbleached, nes 
5212.12 Woven fabrics of cotton, weighing not more than 200 g/m2, bleached, nes 
Page 102 
HS No. . Product Description 
5212.13 Woven fabrics of cotton, weighing not more than 200 g/m2, dyed, nes 
5212.14 Woven fabrics of cotton, < /=200g/m2, of yarns of different colours, nes 
5212.15 Woven fabrics of cotton, weighing not more than 200 g/m2, printed, nes 
5212.21 Woven fabrics of cotton, weighing more than 200 g/m2, unbleached, nes 
5212.22 Woven fabrics of cotton, weighing more than 200 g/m2, bleached, nes 
5212.23 Woven fabrics of cotton, weighing more than 200 g/m2, dyed, nes 
5212.24 Woven fabrics of cotton, >200 g/m2, of yarns of different colours, nes 
5212.25 Woven fabrics of cotton, weighing more than 200 g/m2, printed, nes 
Ch. 53 Other vegetable textile fibres; paper yarn & woven fab 
5306.10 Flax yarn, single 
5306.20 Flax yarn, multile (folded) or cabled 
5307.10 Yarn of jute or of other textile bast fibres, single 
5307.20 Yarn of jute or of oth textile bast fibres, multiple (folded) or cabled 
5308.20 True hemp yarn 
5308.90 Yarn of other vegetable textile fibres 
5309.11 Woven fabrics, containg 85% or more by weight of flax, unbleached or bl 
5309.19 Woven fabrics, containing 85% or more by weight of flax, other than unbl or bl 
5309.21 Woven fabrics of flax, containg <85% by weight of flax, unbleached or bl 
5309.29 Woven fabrics of flax, containing < 85% by weight of flax, other than unbl or bl 
5310.10 Woven fabrics of jute or of other textile bast fibres, unbleached 
5310.90 Woven fabrics of jute or of other textile bast fibres, other than unbleached 
5311.00 Woven fabrics of oth vegetable textile fibres; woven fab of paper yarn 
Ch. 54 Man-made filaments 
5401.10 Sewing thread of synthetic filaments 
5401.20 Sewing thread of artificial filaments 
5402.10 High tenacity yarn (other than sewg thread),nylon/oth polyamides fi, nt put up 
5402.20 High tenacity yarn (other than sewg thread),of polyester filaments, not put up 
5402.31 Texturd yarn nes. of nylon/oth polyamides fi, </ = 50tex/s.y.,not put up 
5402.32 Texturd yarn nes. of nylon/oth polyamides fi,>50 tex/s.y.,not put up 
5402.33 Textured yarn nes. of polyester filaments, not put up for retail sale 
5402.39 Textured yarn of synthetic filaments, nes, not put up 
5402 41 Yarn of nylon or other polyamides fi, single, untwisted,, nes, not put up 
5402 42 Yarn of polyester filaments, partially oriented, single, nes, not put up 
5402 43 Yarn of polyester filaments, single, untwisted, nes, not put up 
5402.49 Yarn of synthetic filaments, single, untwisted, nes, not put up 
5402.51 Yarn of nylon or other polyamides fi, single, >50 turns/m, not put up 
5402.52 Yarn of polyester filaments, single. >50 turns per metre, not put up 
5402.59 Yarn of synthetic filaments, single, > 50 turns per metre, nes, not put up 
5402 61 Yarn of nylon or other polyamides fi, multiple, nes. not put up 
5402.62 Yarn of polyester filaments, multiple, nes, not put up 
5402.69 Yarn of synthetic filaments, multiple, nes, not put up 
5403.10 High tenacity yarn (other than sewg thread),of viscose rayon filamt, nt put up 
5403.20 Textured yarn nes, of artificial filaments, not put up for retail sale 
5403.31 Yarn of viscose rayon filaments, single, untwisted, nes, not put up 
5403.32 Yarn of viscose rayon filaments, single, > 120 turns per m, nes, nt put up 
5403.33 Yarn of cellulose acetate filaments, single, nes, not put up 
5403.39 Yarn of artificial filaments, single, nes, not put up 
5403.41 Yarn of viscose rayon filaments, multiple, nes, not put up 
5403.42 Yarn of cellulose acetate filaments, multiple, nes, not put up 
Page 1Ö3 
HS No. Product Description 
5403.49 Yarn of artificial filaments, multiple, nes, not put up 
5404.10 Synthetic mono,>/ = 67dtex, no cross sectional dimension exceeds 1 mm 
5404.90 Strip&the like of syn tex material of an apparent width nt exceedg 5mm 
5405.00 Artificial mono, 67 dtex, cross-sect > 1mm; strip of arti tex mat w </=5mm 
5406.10 Yarn of synthetic filament (other than sewing thread), put up for reuil sale 
5406.20 Yarn of artificial filament (other than sewing thread),put up for reuil sale 
5407.10 Woven fab of high tenacity fi yarns of nylon oth polyamides/polyesters 
5407.20 Woven fab obuind from strip/the like of synthetic textile materials 
5407.30 Fabrics specif in Note 9 Section XI (layers of parallel syn tex yarn) 
5407.41 Woven fab,>/ = 85% of nylon/other polyamides filaments, unbl or bl, nes 
5407.42 Woven fabrics, >/ = 85% of nylon/other polyamides filaments, dyed, nes 
5407.43 Woven fab. >/ = 85% of nylon/other polyamides filaments, yarn dyed, nes 
5407.44 Woven fabrics, > / = 85% of nylon/other polyamides filaments, printed, nes 
5407.51 Woven fabrics, > / = 85% of textured polyester filaments, unbl or bl, nes 
5407.52 Woven fabrics, >/ = 85% of textured polyester filaments, dyed, nes 
5407.53 Woven fabrics, > / = 85% of textured polyester filaments, yarn dyed, nes 
5407.54 Woven fabrics, > / = 85% of textured polyester filaments, printed, nes 
5407.60 Woven fabrics, >/ = 85% of non-textured polyester filaments, nes 
5407.71 Woven fab.>/ = 85% of synthetic filaments, unbleached or bleached, nes 
5407.72 Woven fabrics, >/ = 85% of synthetic filaments, dyed, nes 
5407.73 Woven fabrics, >/ = 85% of synthetic filaments, yarn dyed, nes 
5407 74 Woven fabrics, >/ = 85% of synthetic filaments, printed, nes 
5407.81 Woven fabrics of synthetic filaments, < 85% mixd w cotton, unbl o bl, nes 
5407.82 Woven fabrics of synthetic filaments, < 85% mixed with cotton, dyed, nes 
5407.83 Woven fabrics of synthetic filaments, < 85% mixd w cotton, yarn dyd, nes 
5407.84 Woven fabrics of synthetic filaments, < 85% mixd with cotton, printed, nes 
5407.91 Woven fabrics of synthetic filaments, unbleached or bleached, nes 
5407.92 Woven fabrics of synthetic filaments, dyed, nes 
5407 93 Woven fabrics of synthetic filaments, yarn dyed, nes 
5407.94 Woven fabrics of synthetic filaments, printed, nes 
54Q8 10 Woven fabrics of high tenacity filament yarns of viscose rayon 
5408.21 Woven fab. > / = 85% of artificial fi o strip of art tex mat, unbl/bl, nes 
5408.22 Woven fab. > / = 85% of artificial fi or strip of art tex mat, dyed, nes 
5408 23 Woven fab. > / = 85% of artificial fi or strip of art tex mat, y dyed, nes 
5408.24 Woven fab. > / = 85% of artificial fi or strip of art tex mat, printd, nes 
5408 31 Woven fabrics of artificial filaments, unbleached or bleached, nes 
5408.32 Woven fabrics of artificial filaments, dyed, nes 
5408.33 Woven fabrics of artificial filaments, yarn dyed, nes 
5408.34 Woven fabrics of artificial filaments, printed, nes 
Ch. 55 Man-made staple fibres 
5501.10 Filament tow of nylon or other polyamides 
5501.20 Filament tow of polyesters 
5501.30 Filament tow of acrylic or modacrylic 
5501.90 Synthetic filament tow, nes 
5502.00 Artificial filament tow 
5503.10 Staple fibres of nylon or other polyamides, not carded or combed 
5503.20 Staple fibres of polyesters, not carded or combed 
5503.30 Staple fibres of acrylic or modacrylic, not carded or combed 
5503.40 Staple fibres of polypropylene, not carded or combed 
5503.90 Synthetic staple fibres, not carded or combed, nes 
Page 104 
HS No. Product Description 
5504.10 Suple fibres of viscose, not carded or combed . 
5504.90 Artificial suple fibres, other than viscose, not carded or combed 
5505.10 Waste of synthetic fibres 
5505.20 Waste of artificial fibres 
5506.10 Suple fibres of nylon or other polyamides, carded or combed 
5506.20 Suple fibres of polyesters, carded or combed 
5506.30 Staple fibres of acrylic or modacrylic, carded or combed 
5506.90 Synthetic suple fibres, carded or combed, nes 
5507.00 Artificial staple fibres, carded or combed 
5508.10 Sewing thread of synthetic staple fibres 
5508.20 Sewing thread of artificial staple fibres 
£509.11 Yarn, >/ = 85% nylon or other polyamides suple fibres, single, not put up 
5509.12 Yarn,>/ = 85% nylon o oth polyamides suple fibres, multi, not put up, nes 
5509.21 Yarn, >/ = 85% of polyester staple fibres, single, not put up 
5509.22 Yarn, >/ = 85% of polyester suple fibres, multiple, not put up, nes 
5509.31 Yarn, >/ = 85% of acrylic or modacrylic staple fibres, single, not put up 
5509.32 Yarn,>/ = 85% aerylic/modacrylie staple fibres, multiple, not put up, nes 
5509.41 Yarn,>/ = 85% of other synthetic staple fibres, single, not put up . 
5509.42 Yarn, >/=85% of other synthetic suple fibres, multiple, not put up, nes 
5509.51 Yarn of polyester staple fibres mixd w/ arti staple fib, not put up, nes 
5509.52 Yarn of polyester staple fib mixd w wool/fine animal hair, nt put up. nes 
5509.53 Yarn of polyester staple fibres mixed with cotton, not put up, nes 
5509.59 Yarn of polyester staple fibres, not put up, nes 
5509.61 Yarn of acrylic staple fib mixd w wool/fine animal hair, not put up, nes 
5509.62 Yarn of acrylic staple fibres mixed with cotton, not put up, nes 
5509.69 Yarn of acrylic staple fibres, not put up, nes 
5509.91 Yarn of oth synthetic staple fibres mixed w/wool/fine animal hair, nes 
5509.92 Yarn of other synthetic staple fibres mixed with cotton, not put up, nes 
5509.99 Yarn of other synthetic staple fibres, not put up. nes 
5510.11 Yarn.>/ = 85% of artificial staple fibres, single, not put up 
5510.12 Yarn,>/ = 85% of artificial staple fibres, multiple, not put up. nes 
5510.20 Yarn of artificl staple fib mixd w wool/fine animal hair, not put up, nes 
5510.30 Yarn of artificial staple fibres mixed with cotton, not put up, nes 
5510.90 Yarn of artificial staple fibres, not put up, nes 
5511.10 Yarn, >/= 85% of synthetic staple fibres, other than sewing thread, put up 
5511.20 Yarn. <85% of synthetic staple fibres, put up for retail sale, nes 
5511.30 Yarn of artificial fibres (other than sewing thread), put up for retail sale 
5512.11 Woven fabrics, containing >/ = 85% of polyester staple fibres, unbl or bl 
5512.19 Woven fabrics, containg >/ = 85% of polyester staple fibres, other than unbl or bl 
5512.21 Woven fabrics, containg >/ = 85% of acrylic staple fibres, unbleached or bl 
5512.29 Woven fabrics, containing >/ = 85% of acrylic staple fibres, other than unbl or bl 
5512.91 Woven fabrics, containing >/ = 85% of oth synthetic staple fibres, unbl/bl 
5512.99 Woven fabrics, containg >/ = 85% of other synthetic staple fib, other than unbl/bl 
5513.11 Plain weave polyest stapl fib fab,<85%,mixd w/cottn, </=170g/m2, unbl/bl 
5513.12 Twill weave polyest stapl fib fab,<85%,mixd w/cottn,</=170g/m2, unbl/bl 
5513.13 Woven fab of polyest staple fib. < 85% mixd w/cot,</=170g/m2, unbl/bl. nes 
5513.19 Woven fabrics of oth syn staple fib,<85%,mixd w/cot,</=170g/m2, unbl/bl 
5513.21 Plain weave polyester staple fib fab,<85%,mixd w/cotton, </=170g/m2. dyd 
5513.22 Twill weave polyest staple fib fab, <85%,mixd w/cotton, </= 170g/m2, dyd 
5513.23 Woven fab of polyester staple fib,<85%,mixd w/cot,</=170 g/m2, dyd, nes 
5513.29 Woven fabrics of oth syn staple fib, < 85% mixd w/cotton, < /= 170g/m2, dyed 
Page 105 
HS No. Product Description 
5513.31 Plain weave polyest stapl fib fab,< 85% mixd w/cot, </ = 170g/m2, yarn dyd 
5513.32 Twill weave polyest stapl fib fab,<85% mixd w/cot,</= 170g/m2, yarn dyd 
5513.33 Woven fab of polyest suple fib, <85% mixd w/cot, </= 170 g/ml', dyd nes 
5513.39 Woven fab of oth syn staple fib, < 85% mixd w/cot, </= 170g/m2. yarn dyd 
5513.41 Plain weave polyester supl fib fab,<85%,mixd w/cot, </= 170g/m2, printd 
5513.42 Twill weave polyest suple fib fab,<85%,mixd w/cot, <=/170g/m2, printd 
5513.43 Woven fab of polyester suple fib, < 85%,mixd w/cot, </=170g/m2, ptd, nes 
5513.49 Woven fab of oth syn suple fib, < 85%,mixed w/cot, </= 170g/m2, printed 
5514.11 Plain weave polyest suple fib fab, <85%,mixd w/cotton, > 1.70g/m2, unbl/bl 
5514.12 Twill weave polyest stapl fib fab,<85%.mixd w/cotton,> 170g/m2, unbl/bl 
5514.13 Woven fab of polyester staple fib, < 85% mixd w/cot, > 170g/m2, unbl/bl. nes 
5514.19 Woven fabrics of oth syn suple fib, < 85%,mixed w/cot, > 170 g/m2, unbl/bl 
5514.21 Plain weave polyester suple fibre fab, < 85%,mixd w/cotton, > 170g/m2, dyd 
5514.22 Twill weave polyester staple fibre fab,<85%,mixd w/cotton, > 170g/m2, dyd 
5514.23 Woven fabrics of polyester staple fib, < 85%,mixed w/cot, > 170 g/m2, dyed 
5514.29 Woven fabrics of oth synthetic suple fib, <85%,mixd w/cot, > 170g/m2. dyd 
5514.31 Plain weave polyester staple fib fab,<85% mixd w/cot, > 170g/m2. yarn dyd 
5514.32 Twill weave polyester staple fib fab, < 85% mixd w/cot, > 170g/m2. yarn dyd 
5514.33 Woven fab of polyester stapl fib, < 85% mixd w/cot, > 170g/m2, yarn dyd nes 
5514.39 Woveji fabrics of oth syn staple fib, < 85% mixd w/cot, > 170 g/m2, yarn dyd 
5514.41 Plain weave polyester staple fibre fab,<85%,mixd w/cot,> 170g/m2, printd 
5514 42 Twill weave polyester staple fibre fab.<85%.mixd w/cot, > 170g/m2, printd 
5514.43 Woven fab of polyester staple fibres < 85%.mixd w/cot, > 170g/m2, ptd. nes 
5514.49 Woven fabrics of oth syn staple fib. < 85%,mixed w/cot,> 170 g/m2, printed 
5515.11 Woven fab of polyester staple fib mixd w viscose rayon staple fib, nes 
5515.12 Woven fabrics of polyester staple fibres mixd w man-made filaments, nes 
5515.13 Woven fab of polyester staple fibres mixd w/wool/fine animal hair, nes 
5515.19 Woven fabrics of polyester staple fibres, nes 
5515.21 Woven fabrics of acrylic staple fibres, mixd w man-made filaments, nes 
5515.22 Woven fab of acrylic staple fibres, mixd w/wool/fine animal hair, nes 
5515.29 Woven fabrics of acrylic or modacrylic staple fibres, nes 
5515.91 Woven fabrics of oth syn staple fib, mixed with man-made filaments, nes 
5515.92 Woven fabrics of oth syn staple fib, mixd w/wool o fine animal hair, nes 
5515.99 Woven fabrics of synthetic suple fibres, nes 
5516.11 Woven fabrics, containg >/ = 85% of artificial staple fibres, unbleached/bl 
5516.12 Woven fabrics, containing >/ = 85% of artificial staple fibres, dyed 
5516.13 Woven fabrics, containing >/= 85% of artificial staple fib, yarn dyed 
5516.14 Woven fabrics, containing >/ = 85% of artificial staple fibres, printed 
5516.21 Woven fabrics of artificial staple fib.<85%.mixd w man-made fi, unbl/bl 
5516.22 Woven fabrics of artificial staple fib,<85%,mixd with man-made fi, dyd 
5516.23 Woven fabrics of artificial staple fib. < 85%.mixd with m-m fi, yarn dyd 
5516.24 Woven fabrics of artificial staple fib,<85%,mixd w man-made fi, printd 
5516.31 Woven fab of arti suple fib.<85% mixd w/wool/fine animal hair, unbl/bl 
5516.32 Woven fabrics of arti staple fib, < 85% mixd w/wool/fine animal hair, dyd 
5516.33 Woven fab of arti suple fib, < 85% mixd w/wool/fine animal hair, yarn dyd 
5516.34 Woven fab of arti staple fib. < 85% mixd w/wool/fine animal hair, printd 
5516.41 Woven fabrics of artificial staple fib,<85% mixd with cotton, unbl o bl 
5516.42 Woven fabrics of artificial suple fib, <85% mixed with cotton, dyed 
5516.43 Woven fabrics of artificial staple fib, < 85% mixd with cotton, yarn dyd 
5516.44 Woven fabrics of artificial suple fib, < 85% mixed with cotton, printed 
5516.91 Woven fabrics of artificial suple fibres, unbleached or bleached, nes 
Page 106 
HS No. Product Description 
5516*92 Woven fabrics of artificial staple fibres, dyed, nes 
5516.93 Woven fabrics of artificial suple fibres, £arn dyed, nes 
5516.94 Woven fabrics of artificial staple fibres, printed, nes 
Ch. 56 Wadding, felt & nonwoven; yarns; twine, cordage, etc. 
5601.10 Saniury articles of waddg of textile mat i.e. saniury towels, tampons 
5601.21 Wadding of cotton and articles thereof, other than sanitary articles 
5601.22 Wadding of man-made fibres and articles thereof, other than sanitary articles 
5601.29 Waddg of oth textile materials&articles thereof, other than sanitary: articles 
5601.30 Textile flock and dust and mill neps 
5602.10 Needleloom felt and stitch-bonded fibre fabrics 
5602.21 Felt other than needleloom, of wool or fine animal hair, not impreg, ctd, cov etc 
5602.29 Felt other than needleloom, of other textile materials, not impreg, ctd, cov etc 
5602.90 Felt of textile materials, nes 
5603.00 Nonwovens, whether or not impregnated, coated, covered or laminated 
5604.10 Rubber thread and cord, textile covered 
5604.20 High tenacity yarn of polyest, nylon oth polyamid, viscose rayon, ctd etc 
5604.90 Textile yarn, strips&the like, impreg ctd/cov with rubber o plastics, nes 
5605.00 Metallisd yarn, beg textile yarn combind w metal thread, strip/powder 
5606.00 Gimped yarn nes; chenille yarn; loop wale-yarn 
5607.10 Twine, cordage, ropes and cables, of jute or other textile bast fibres 
5607.21 Binder o baler twine, of sisal o oth textile fibres of the genus Agave 
5607.29 Twine nes. cordage, ropes and cables, of sisal textile fibres 
5607.30 Twine, cordage, ropes and cables, of abaca or other hard (leaf) fibres 
5607.41 Binder or baler twine, of polyethylene or polypropylene 
5607 49 Twine nes, cordage, ropes and cables, of polyethylene or polypropylene 
5607.50 Twine, cordage, ropes and cables, of other synthetic fibres 
5607.90 Twine, cordage, ropes and cables, of other materials 
5608.11 Made up fishing nets, of man-made textile materials 
5608.19 Knottd nettg of twine/cordage/rope, and oth made up nets of m-m tex mat 
5608.90 Knottd nettg of twine/cordage/rope, nes, and made up nets of oth tex mat 
5609.(K) Articles of yarn, strip, twine, cordage, rope and cables, nes 
Ch. 57 Carpets and other textile floor coverings 
5701.10 Carpets of wool or fine animal hair, knotted 
5701.90 Carpets of other textile materials, knotted 
5702.10 Kelem. Schumacks. Karamanie and similar textile hand-woven rugs 
5702.20 Floor coverings of coconut fibres (coir) 
5702.31 Carpets of wool/fine animl hair, of wovn pile constructn, nt made up nes 
5702.32 Carpets of man-made textile mat, of wovn pile construct, nt made up, nes 
5702.39 Carpets of oth textile mat, of woven pile constructn, nt made up, nes 
5702.41 Carpets of wool/fine animal hair, of wovn pile construction, made up, nes 
5702.42 Carpets of man-made textile mat, of woven pile construction, made up, nes 
5702.49 Carpets of oth textile materials, of wovn pile construction, made up, nes 
5702.51 Carpets of wool or fine animal hair, woven, not made up, nes 
5702.52 Carpets of man-made textile materials, woven, not made up, nes 
5702.59 Carpets of other textile materials, woven, not made up, nes 
5702.91 Carpets of wool or fine animal hair, woven, made up, nes 
5702.92 Carpets of man-made textile materials, woven, made up, nes 
5702.99 Carpets of other textile materials, woven, made up, nes 
5703.10 Carpets of wool or fine animal hair, tufted 
Page 107 
HS No. Product Description 
5703.20 Carpets of nylon or other polyamides, tufted 
5703.30 Carpets of other man-made textile materials, tufted 
5703.90 Carpets of other textile materials, tufted 
5704.1Q Tiles of felt of textile materials, havg a max surface area of 0.3 m2 
5704.90 Carpets of felt of textile materials, nes 
5705.00 Carpets and other textile floor coverings, nes 
Ch. 58 Special woven fab; tufted tex fab; lace; tapestries etc. 
5801.10 Woven pile fabrics of wool/fine animal hair, other than terry&narrow fabrics 
5801.21 Woven uncut weft pile fabrics of cotton, other than terry and narrow fabrics 
5801.22 Cut corduroy fabrics of cotton, other than narrow fabrics 
5801.23 Woven weft pile fabrics of cotton, nes 
5801.24 Woven warp pile fab of cotton, pingl (uncut),other than terry&narrow fab 
5801.25 Woven warp pile fabrics of cotton, cut, other than terry and narrow fabrics 
5801.26 Chenille fabrics of cotton, other than narrow fabrics 
5801.31 Woven uncut weft pile fabrics of manmade fibres, other than terry&narrow fab. 
5801.32 Cut corduroy fabrics of man-made fibres, other than narrow fabrics 
5801.33 Woven weft pile fabrics of man-made fibres, nes 
5801.34 Woven warp pile fab of man-made fib, pingl (uncut),other than terry&nar fab 
5801.35 Woven warp pile fabrics of man-made fib, cut, other than terry & narrow fabrics 
5801.36 Chenille fabrics of man-made fibres, other than narrow fabrics 
5801.90 Woven pile fab&chenille fab of other tex mat, other than terry&narrow fabrics 
5802.11 Terry towellg & similar woven terry fab of cotton, other than narrow fab, unbl 
5802.19 Terry towellg&similar woven terry fab of cotton, other than unbl&other than nar fab 
5802.20 Terry towellg&sim woven terry fab of oth tex mat, other than narrow fabrics 
5802.30 Tufted textile fabrics, other than products, of heading No 57.03 
5803.10 Gauze of cotton, other than narrow fabrics 
5803.90 Gauze of other textile material, other than narrow fabrics 
5804.10 Tulles & other net fabrics, not incl woven, knitted or crocheted fabrics 
5804.21 Mechanically made lace of man-made fib, in the piece, in strips/motifs 
5804.29 Mechanically made lace of oth tex mat, in the piece, in strips/in motifs 
•5804.30 Hand-made lace, in the piece, in strips or in motifs 
5805 00 Hand-woven tapestries&needle-worked tapestries, whether or not made up 
5806.10 Narrow woven pile fabrics and narrow chenille fabrics 
5806.20 Narrow woven fab, cntg by wt>/ = 5% elastomeric yarn/rubber thread nes 
5806.31 Narrow woven fabrics of cotton, nes 
5806 32 Narrow woven fabrics of man-made fibres, nes 
5806.39 Narrow woven fabrics of other textile materials, nes 
5806 40 Fabrics consisting of warp w/o weft assembled by means of an adhesive 
5807.10 Labels, badges and similar woven articles of textile materials 
5807 90 Labels, badges and similar articles, not woven, of textile materials, nes 
5808.10 Braids in the piece 
5808 90 Ornamental trimmings in the piece, other than knit; tassels, pompons&similar art 
5809.00 Woven fabrics of metal thread/of meullisd yarn, for apparel, etc, nes 
5810.10 Embroidery without visible ground, in the piece, in strips or in motifs 
5810.91 Embroidery of cotton, in the piece, in strips or in motifs, nes 
5810.92 Embroidery of man-made fibres, in the piece, in strips or in motifs, nes 
5810.99 Embroidery of oth textile materials, in the piece, in strips/motifs, nes 
5811.00 Quilted textile products in the piece 
Page 108 
HS No. Product Description 
Ch. 59 Impregnated, coated, cover/laminated textile fabric etc. 
5901.10 Textile fabrics coatd with gum, of a kind usd for outer covers of books 
5901.90 Tracg cloth; prepared paintg canvas; stiffened textile fab; for hats etc 
5902.10 Tire cord fabric made of nylon or other polyamides high tenacity yarns 
5902.20 Tire cord fabric made of polyester high tenacity yarns 
5902.90 Tire cord fabric made of viscose rayon high tenacity yarns 
5903.10 Textile fab impregnatd, ctd, cov, or laminatd w polyvinyl chloride, nes 
5903.20 Textile fabrics impregnated, ctd, cov, or laminated with polyurethane, nes 
5903.90 Textile fabrics impregnated, ctd, cov, or laminated with plastics, nes 
5904.10 Lineoleum, whether or not cut to shape 
5904.91 Floor coverings, other than linoleum, with a base of needleloom felt/nonwovens 
.5904.92 Floor coverings, other than linoleum, with other textile base 
5905.00 Textile wall coverings 
5906.10 Rubberised textile adhesive tape of a width not exceeding 20 cm 
5906.91 Rubberised textile knitted or crocheted fabrics, nes 
5906.99 Rubberised textile fabrics, nes 
5907.00 Textile fab impreg, ctd, cov nes; paintd canvas (e.g.threatrical scenery) 
5908.00 Textile wicks f lamps, stoves, etc; gas mantles&knittd gas mantle fabric 
5909.00 Textile hosepiping and similar textile tubing 
5910.00 Transmission or conveyor belts or belting of textile material 
5911.10 Textile fabrics usd f card clothing, and sim fabric f technical uses 
5911.20 Textile bolting cloth, whether or not made up 
5911.31 Textile fabrics used in paper-making or similar machines, <650 g/m2 
5911.32 Textile fabrics usd in paper-makg or similar mach, weighg >/ = 650 g/m2 
5911.40 Textile straing cloth usd in oil presses o the like, incl of human hair 
5911.90 Textile products and articles for technical uses, nes 
Ch. 60 Knitted or crocheted fabrics 
6001.10 Long pile knitted or crocheted textile fabrics 
6001.21 Looped pile knitted or crocheted fabrics, of cotton 
6001.22 Looped pile knitted or crocheted fabrics, of man-made fibres 
6001.29 Looped pile knitted or crocheted fabrics, of other textile materials 
6001.91 Pile knitted or crocheted fabrics, of cotton, nes 
6001.92 Pile knitted or crocheted fabrics, of man-made fibres, nes 
6001.99 Pile knitted or crocheted fabrics, of other textile materials, nes 
6002.10 Knittd or crochetd tex fab, w</ = 30 cm, >/ = 5% of elastomeric/rubber. nes 
6002.20 Knitted or crocheted textile fabrics, of a width not exceedg 30 cm, nes 
6002.30 Knittd/crochetd tex fab, width > 30 cm, >/ = 5% of elastomeric/rubber. nes 
6002 41 Warp knitted fabrics, of wool or fine animal hair, nes 
6002 42 Warp knitted fabrics, of cotton, nes 
6002.43 Warp knitted fabrics, of man-made fibres, nes 
6002.49 Warp knitted fabrics, of other materials, nes 
6002.91 Knitted or crocheted fabrics, of wool or of fine animal hair, nes 
6002.92 Knitted or crocheted fabrics, of cotton, nes 
6002.93 Knitted or crocheted fabrics, of manmade fibres, nes. 
6002.99 Knitted or crocheted fabrics, of other materials, nes 
Ch. 61 Art of apparel & clothing access, knitted or crocheted 
6101.10 Mens/boys overcoats, anoraks etc, of wool or fine animal hair, knitted 
6101.20 Mens/boys overcoats, anoraks etc, of cotton, knitted 
6101.30 Mens/boys overcoats, anoraks etc, of man-made fibres, knitted 
Page 109 
HS No. Product Description 
6101.90 Mens/boys overcoats, anoraks etc, of other textile materials, knitted 
6102.10 Womens/girls overcoats, anoraks etc, of wool or fine animal hair, knitted 
6102.20 Womens/girls overcoats, anoraks etc, of cotton, knitted 
6102.30 Womens/girls overcoats, anoraks etc, of man-made fibres, knitted 
6102.90 Womens/girls overcoats, anoraks etc, of other textile materials, knitted 
6103.11 Mens/boys suits, of wool or fine animal hair, knitted 
6103.12 Mens/boys suits, of synthetic fibres, knitted 
6103.19 Mens/boys suits, of other textile materials, knitted 
6103.21 Mens/boys ensembles, of wool or fine animal hair, knitted 
6103.22 Mens/boys ensembles, of cotton, knitted 
6103.23 Mens/boys ensembles, of synthetic fibres, knitted 
6103.29 Mens/boys ensembles, of other textile materials, knitted 
6103.31 Mens/boys jackets and blazers, of wool or fine animal hair, knitted 
6103.32 Mens/boys jackets and blazers, of cotton, knitted 
6103.33 Mens/boys jackets and blazers, of synthetic fibres, knitted 
6103.39 Mens/boys jackets and blazers, of other textile materials, knitted 
6103.41 Mens/boys trousers and shorts, of wool or fine animal hair, knitted 
6103.42 Mens/boys trousers and shorts, of cotton, knitted 
6103.43 Mens/boys trousers and shorts, of synthetic fibres, knitted 
6103 49 Mens/boys trousers and shorts, of other textile materials, knitted 
6104.11 Womens/girls suits, of wool or fine animal hair, knitted 
6104.12 Womens/girls suits, of cotton, knitted 
6104.13 Womens/girls suits, of synthetic fibres, knitted 
6104.19 Womens/girls suits, of other textile materials, knitted 
6104.21 Womens/girls ensembles, of wool or fine animal hair, knitted 
6104.22 Womens/girls ensembles, of cotton, knitted 
6104.23 Womens/girls ensembles, of synthetic fibres, knitted 
6104.29 Womens/girls ensembies. of other textile materials, knitted 
6104.31 Womens/girls jackets, of wool or fine animal hair, knitted 
6104.32 Womens/girls jackets, of cotton, knitted 
6104.33 Womens/girls jackets, of synthetic fibres, knitted 
6104.39 Womens/girls jackets, of other textile materials, knitted 
6104.41 Womens/girls dresses, of wool or fine animal hair, knitted 
6104.42 Womens/girls dresses, of cotton, knitted 
6104.43 Womens/girls dresses, of synthetic fibres, knitted 
6104.44 Womens/girls dresses, of artificial fibres, knitted 
6104.49 Womens/girls dresses, of other textile materials, knitted 
6104.51 Womens/girls skirts, of wool or fine animal hair, knitted 
6104.52 Womens/girls skirts, of cotton, knitted 
6104.53 Womens/girls skirts, of synthetic fibres, knitted 
6104.59 Womens/girls skirts, of other textile materials, knitted 
6104.61 Womens/girls trousers and shorts, of wool or fine animal hair, knitted 
6104.62 Womens/girls trousers and shorts, of cotton, knitted 
6104.63 Womens/girls trousers and shorts, of synthetic fibres, knitted 
6104.69 Womens/girls trousers and shorts, of other textile materials, knitted 
6105.10 Mens/boys shirts, of cotton, knitted 
6105.20 Mens/boys shirts, of man-made fibres, knitted 
6105.90 Mens/boys shirts, of other textile materials, knitted 
6106.10 Womens/girls blouses and shirts, of cotton, knitted 
6106.20 Womens/girls blouses and shirts, of man-made fibres, knitted 
6106.90 Womens/girls blouses and shins, of other materials, knitted 
Page 110 
HS No. Product Description 
6107.11 Mens/boys underpants and briefs, of cotton, knitted 
6107.12 Mens/boys underpants and briefs, of man-made fibres, knitted 
6107.19 Mens/boys underpants and briefs, of other textile materials, knitted 
6107.21 Mens/boys nightshirts and pyjamas, of cotton, knitted 
6107.22 Mens/boys nightshirts and pyjamas, of man-made fibres, knitted 
6107.29 Mens/boys nightshirts and pyjamas, of other textile materials, knitted 
6107.91 Mens/boys bathrobes, dressing gowns etc of cotton, knitted 
6107.92 Mens/boys bathrobes, dressing gowns, etc of man-made fibres, knitted 
6107.99 Mens/boys bathrobes, dressg gowns, etc of oth textile materials, knitted 
6108.11 Womens/girls slips and petticoats, of man-made fibres, knitted 
6108.19 Womens/girls slips and petticoats, of other textile materials, knitted 
6108.21 Womens/girls briefs and panties, of cotton, knitted 
6108.22 Womens/girls briefs and panties, of man-made fibres, knitted 
6108.29 Womens/girls briefs and panties, of other textile materials, knitted 
6108.31 Womens/girls nightdresses and pyjamas, of cotton, knitted 
6108.32 Womens/girls nightdresses and pyjamas, of man-made fibres, knitted 
6108.39 Womens/girls nightdresses & pyjamas, of other textile materials, knitted 
6108 91 Womens/girls bathrobes, dressing gowns, etc, of cotton, knitted 
6108.92 Womens/girls bathrobes, dressing gowns, etc, of man-made fibres, knitted 
6108.99 Women/girls bathrobes, dressg gowns, etc. of oth textile materials, knittd 
6109.10 T-shirts, singlets and other vests, of cotton, knitted 
6109.90 T-shirts, singlets and other vests, of other textile materials, knitted 
6110.10 Pullovers, cardigans&similar article of wool or fine animal hair, knittd 
6110.20 Pullovers, cardigans and similar articles of cotton, knitted 
6110.30 Pullovers, cardigans and similar articles of man-made fibres, knitted 
6110.90 Pullovers, cardigans&similar articles of oth textile materials, knittd 
611110 Babies garments&clothg accessories of wool or fine animal hair, knitted 
6111.20 Babies garments and clothing accessories of cotton, knitted 
6111.30 Babies garments and clothing accessories of synthetic fibres, knitted 
6111.90 Babies garments&clothg accessories of other textile materials, knitted 
6112.11 Track suits, of cotton, knitted 
6112.12 Track suits, of synthetic fibres, knitted 
6112 19 Track suits, of other textile materials, knitted 
6112.20 Ski suits, of textile materials, knitted 
6112.31 Mens/boys swimwear. of synthetic fibres, knitted 
6112 39 Mens/boys swimwear. of other textile materials, knitted 
6112 41 Womens/girls swimwear. of synthetic fibres, knitted 
6112 49 Womens'girls swimwear. of other textile materials, knitted 
6113.00 Garments made up of impreg, coatd. coverd or laminatd textile knittd fab 
6114 10 Garments nes. of wool or fine animal hair, knitted 
6114.20 Garments nes. of cotton, knitted 
6114 30 Garments nes. of man-made fibres, knitted 
6114.90 Garments nes, of other textile materials, knitted 
6115.11 Panty hose&tights. of synthetic fibre yarns <67 dtex/single yarn knittd 
6115.12 Panty hose&tights. of synthetic fib yarns >/=67 dtex/single yarn knittd 
6115 19 Panty hose and tights, of other textile materials, knitted 
6115.20 Women full-l/knee-l hosiery, of textile yarn < 67 dtex/single yarn knittd 
6115 91 Hosiery nes, of wool or fine animal hair, knitted 
6115.92 Hosiery nes, of cotton, knitted 
6115.93 Hosiery nes. of synthetic fibres, knitted 
6115.99 Hosiery nes, of other textile materials, knitted 
Page 111 
HS No. Product Description 
6116.10 Gloves impregnated, coated or covered with plastics or rubber, knitted 
6116.91 Gloves, mittens and mitts, nes, of wool or fine animal hair, knitted 
6i 16.92 Gloves, mittens and mitts, nes, of cotton, knitted 
6116.93 Gloves, mittens and mitts, nes, of synthetic fibres, knitted 
6116.99 Gloves, mittens and mitts, nes, of other textile materials, knitted 
6117.10 Shawls, scarves, veils and the like, of textile materials, knitted 
6117.20 Ties, bow ties and cravats, of textile materials, knitted 
6117.80 Clothing accessories nes, of textile materials, knitted 
6117.90 Pans of garments/of clothg accessories, of textile materials, knittd 
Ch. 62 Art of apparel & clothing access, not knitted/crocheted 
6201.11 Mens/boys overcoats&similar articles of wool/fine animal hair, not knit 
6201.12 Mens/boys overcoats and similar articles of cotton, not knitted 
6201.13 Mens/boys overcoats & similar articles of man-made fibres, not knitted 
6201.19 Mens/boys overcoats&sim articles of oth textile materials, not knittd 
6201.91 Mens/boys anoraks&similar articles, of wool/fine animal hair, not knittd 
6201.92 Mens/boys anoraks and similar articles, of cotton, not knitted 
6201.93 Mens/boys anoraks and similar articles, of man-made fibres, not knitted 
6201.99 Mens/boys anoraks&similar articles, of oth textile materials, not knittd 
6202.11 Womens/gjrls overcoats&sim articles of wool/fine animal hair nt knit 
6202.12 Womens/girls overcoats and similar articles of cotton, not knitted 
6202.13 Womens/girls overcoats&sim articles of man-made fibres, not knittd 
6202.19 Womens/girls overcoats&similar articles of other textile mat, not knit 
6202.91 Womens/girls anoraks&similar anicle of wool/fine animal hair, not knit 
6202.92 Womens/girls anoraks and similar article of cotton, not knitted 
6202.93 Womens/girls anoraks & similar anicle of man-made fibres, not knitted 
6202.99 Womens/girls anoraks&similar anicle of oth textile materials, not knit 
6203.11 Mens/boys suits, of wool or fine animal hair, not knitted 
6203.12 Mens/boys suits, of synthetic fibres, not knitted 
6203.19 Mens/boys suits, of other textile materials, not knitted 
6203.21 Mens/boys ensembles, of wool or fine animal hair, not knitted 
6203.22 Mens/boys ensembles, of cotton, not knitted 
6203.23 Mens/boys ensembles, of synthetic fibres, not knitted 
6203.29 Mens/boys ensembles, of other textile materials, not knitted 
6203.31 Mens/boys jackets and blazers, of wool or fine animal hair, not knitted 
6203.32 Mens/boys jackets and blazers, of cotton, not knitted 
6203.33 Mens/boys jackets and blazers, of synthetic fibres, not knitted 
6203.39 Mens/boys jackets and blazers, of other textile materials, not knitted 
6203.41 Mens/boys trousers and shorts, of wool or fine animal hair, not knitted 
6203.42 Mens/boys trousers and shorts, of cotton, not knitted 
6203.43 Mens/boys trousers and shorts, of synthetic fibres, not knitted 
6203.49 Mens/boys trousers and shorts, of other textile materials, not knitted 
6204.11 Womens/girls suits, of wool or fine animal hair, not knitted 
6204.12 Womens/girls suits, of cotton, not knitted 
6204.13 Womens/girls suits, of synthetic fibres, not knitted 
6204.19 Womens/girls suits, of other textile materials, not knitted 
6204.21 Womens/girls ensembles, of wool or fine animal hair, not knitted 
6204.22 Womens/girls ensembles, of cotton, not knitted 
6204.23 Womens/girls ensembles, of synthetic fibres, not knitted 
6204.29 Womens/girls ensembles, of other textile materials, not knitted 
6204.31 Womens/girls jackets, of wool or fine animal hair, not knitted 
Page 112 
HS No. Product Description 
6204.32 
6204.33 
6204.39 
6204.41 
6204.42 
6204.43 
6204.44 
6204.49 
6204.51 
6204.52 
6204.53 
6204.59 
6204.61 
6204.62 
6204.63 
6204.69 
6205.10 
6205.20 
6205.30 
6205.90 
6206.10 
6206.20 
6206.30 
6206.40 
6206.90 
6207.11 
6207.19 
6207.21 
6207.22 
6207.29 
6207.91 
6207.92 
6207.99 
6208 11 
6208.19 
6208.21 
6208.22 
6208 29 
6208 91 
6208 92 
6208 99 
6209.10 
6209.20 
6209.30 
6209.90 
6210.10 
6210.20 
6210.30 
6210.40 
6210.50 
6211.11 Womens/girls jackets, of cotton, not knitted 
Womens/girls jackets, of synthetic fibres, not knitted 
Womens/girls jackets, of other textile materials, not knitted 
Womens/girls dresses, of wool or fine animal hair, not knitted 
Womens/girls dresses, of cotton, not knitted 
Womens/girls dresses, of synthetic fibres, not knitted 
Womens/girls dresses, of artificial fibres, not knitted 
Womens/girls dresses, of other textile materials, not knitted 
Womens/girls skirts, of wool or fine animal hair, not knitted 
Womens/girls skirts, of cotton, not knitted 
Womens/girls skirts, of synthetic fibres, not knitted 
Womens/girls skirts, of other textile materials, not knitted 
Womens/girls trousers & shorts, of wool or fine animal hair, not knitted 
Womens/girls trousers and shorts, of cotton, not knitted 
Womens/girls trousers and shons, of synthetic fibres, not knitted 
Womens/girls trousers & shorts, of other textile materials, not knitted 
Mens/boys shirts, of wool or fine animal hair, not knitted 
Mens/boys shirts, of cotton, not knitted 
Mens/boys shirts, of man-made fibres, not knitted 
Mens/boys shins, of other textile materials, not knitted 
Womens/girls blouses and shirts, of silk or silk waste, not knitted 
Womens/girls blouses & shirts, of wool or fine animal hair, not knitted 
Womens/girls blouses and shirts, of cotton, not knitted 
Womens/girls blouses and shirts, of man-made fibres, not knitted 
Womens/girls blouses and shirts, of other textile materials, not knitted 
Mens/boys underpants and briefs, of cotton, not knitted 
Mens/boys underpants and briefs, of other textile materials, not knitted 
Mens/boys nightshirts and pyjamas, of cotton, not knitted 
Mens/boys nightshirts and pyjamas, of man-made fibres, not knitted 
Mens/boys nightshirts & pyjamas, of other textile materials, not knitted 
Mens/boys bathrobes, dressing gowns, etc of cotton, not knitted 
Mens/boys bathrobes, dressing gowns, etc of man-made fibres, not knitted 
Mens/boys bathrobes, dressg gowns, etc of oth textile materials, not knit 
Womens/girls slips and petticoats, of man-made fibres, not knitted 
Womens/girls slips & petticoats, of other textile materials, not knitted 
Womens/girls nightdresses and pyjamas, of cotton, not knitted 
Womens/girls nightdresses and pyjamas, of man-made fibres, not knitted 
Womens/girls nightdresses&pyjamas, of oth textile materials, not knitted 
Womens/girls panties, bathrobes, etc, of cotton, not knitted 
Womens/girls panties, bathrobes, etc, of man-made fibres, not knitted 
Womens/girls panties, bathrobes, etc, of oth textile materials, not knittd 
Babies garments&clothg accessories of wool o fine animal hair, not knit 
Babies garments and clothing accessories of cotton, not knitted 
Babies garments & clothing accessories of synthetic fibres, not knitted 
Babies garments&clothg accessories of oth textile materials, not knittd 
Garments made up of textile felts and of nonwoven textile fabrics 
Mens/boys overcoats&similar articles of impreg, ctd, cov etc, tex wov fab 
Womens/girls overcoats&sim articles, of impreg, ctd, etc, tex wov fab 
Mens/boys garments nes, made up of impreg, ctd, cov, etc, textile woven fab 
Womens/girls garments nes, of impregnatd, ctd, cov, etc, textile woven fab 
Mens/boys swimwear. of textile materials not knitted 
Page 113 
HS No. Product Description 
6211.12 Womens/girls swimwear, of textile materials, not knitted 
6211.20 Ski suits, of textile materials, not knitted 
6211.31 Mens/boys garments nes, of wool or fine animal hair, not knitted 
6211.32 Mens/boys.garments nes, of cotton, not knitted 
6211.33 Mens/boys garments nes, of man-made fibres, not knitted 
6211.39 Mens/boys garments nes, of other textile materials, not knitted 
6211.41 Womens/girls garments nes, of wool or fine animal hair, not knitted 
6211.42 Womens/girls garments nes, of cotton, not knitted 
6211.43 Womens/girls garments nes, of man-made fibres, not knitted 
6211.49 Womens/girls garments nes, of other textile materials, not knitted 
6212.10 Brassieres and parts thereof, of textile materials 
6212.20 Girdles, panty girdles and parts thereof, of textile materials 
6212.30 Corselettes and parts thereof, of textile materials 
6212.90 Corsets, braces & similar articles & parts thereof, of textile materials 
6213.10 Handkerchiefs, of silk or silk waste, not knitted 
6213.20 Handkerchiefs, of cotton, not knitted 
6213.90 Handkerchiefs, of other textile materials, not knitted 
6214.10 Shawls, scarves, veils and the like, of silk or silk waste, not knitted 
6214.20 Shawls, scarves, veils&the like, of wool or fine animal hair, not knitted 
6214.30 Shawls, scarves, veils and the like, of synthetic fibres, not knitted 
6214.40 Shawls, scarves, veils and the like, of artificial fibres, not knitted 
6214.90 Shawls, scarves, veils & the like, of other textile materials, not knitted 
6215.10 Ties, bow ties and cravats, of silk or silk waste, not knitted 
6215.20 Ties, bow ties and cravats, of man-made fibres, not knitted 
6215.90 Ties, bow ties and cravats, of other textile materials, not knitted 
6216.00 Gloves, mittens and mitts, of textile materials, not knitted 
6217.10 Clothing accessories nes, of textile materials, not knitted 
6217.90 Parts of garments or of clothg accessories nes, of tex mat, not knittd. 
Ch. 63 Other made up textile articles; sets; worn clothing etc. 
6301.10 Electric blankets, of textile materials 
6301.20 Blankets (other than electric) & travelling rugs, of wool or fine animal hair 
6301.30 Blankets (other than electric) and travelling rugs, of cotton 
6301.40 Blankets (other than electric) and travelling rugs, of synthetic fibres 
6301.90 Blankets (other than electric) and travelling rugs, of other textile materials 
6302.10 Bed linen, of textile knitted or crocheted materials 
6302.21 Bed linen, of cotton, printed, not knitted 
6302.22 Bed linen, of man-made fibres, printed, not knitted 
6302.29 Bed linen, of other textile materials, printed, not knitted 
6302.31 Bed linen, of cotton, nes 
6302.32 Bed linen, of man-made fibres, nes 
6302.39 Bed linen, of other textile materials, nes 
6302.40 Table linen, of textile knitted or crocheted materials 
6302.51 Table linen, of cotton, not knitted 
6302.52 Table linen, of flax, not knitted 
6302.53 Table linen, of man-made fibres, not knitted 
6302.59 Table linen, of other textile materials, not knitted 
6302.60 Toilet&kitchen linen, of terry towellg or similar terry fab, of cotton 
6302.91 Toilet and kitchen linen, of cotton, nes 
6302.92 Toilet and kitchen linen, of flax 
6302.93 Toilet and kitchen linen, of man-made fibres 
Page 114 
HS No. Product Description 
6302.99 Toilet and kitchen linen, of other textile materials 
6303.11 Curtains, drapes, interior blinds&curtairi or bed valances, of cotton, knit 
6303.12 Curtains, drapes, interior blinds&curtain/bd valances, of syn fib, knittd 
6303.19 Curtains, drapes, interior blinds&curtain/bd valances, oth tex mat, knit 
6303.91 Curtains/drapes/interior blinds&curtain/bd valances, of cotton, not knit 
6303.92 Curtains/drapes/interior blinds curtain/bd valances, of syn fib, nt knit 
6303.99 Curtain/drape/interior blind curtain/bd valance, of oth tex mat, nt knit 
6304.11 Bedspreads, of textile materials, nes, knitted or crocheted 
6304.19 Bedspreads of textile materials, nes, not knitted or crocheted 
6304.91 Furnishing articles nes, of textile materials, knitted or crocheted 
6304.92 Furnishing articles nes, of cotton, not knitted or crocheted 
6304.93 Furnishing articles nes, of synthetic fibres, not knitted or crocheted 
6304.99 Furnishg articles nes, of oth textile materials, not knittd o crochetd 
6305.10 Sacks&bags, for packg of goods, of jute or of other textile bast fibres 
6305.20 Sacks and bags, for packing of goods, of cotton 
6305.31 Sacks&bags, for packg of goods, of polyethylene or polypropylene strips 
6305.39 Sacks & bags, for packing of goods, of other man-made textile materials 
6305.90 Sacks and bags, for packing of goods, of other textile materials 
6306.1 i Tarpaulins, awnings and sunblinds, of cotton 
6306. |2 Tarpaulins..awnings and sunblinds, of synthetic fibres 
6306.19 Tarpaulins, awnings and sunblinds, of other textile materials 
6306.21 Tents, of cotton 
6306.22 Tents, of synthetic fibres 
6306.29 Tents, of other textile materials 
6306.31 Sails, of synthetic fibres 
6306.39 Sails, of other textile materials 
6306.41 Pneumatic mattresses, of cotton 
6306 49 Pneumatic mattresses, of other textile materials 
6306.91 Camping goods nes. of cotton 
6306.99 Camping goods nes. of other textile materials 
6307.10 Floor-cloths, dish-cloths, dusters & similar cleaning cloths, of tex mat 
6307.20 Life jackets and life belts, of textile materials 
6307.90 Made up articles, of textile materials, nes, including dress patterns 
630K (X) Sets consistg of woven fab & yarn, for makg up into rugs, tapestries etc 
6309.(XI Worn clothing and other worn articles 
Textile and clothing products in Chapters 30-49, 64-96 
IIS No. Product Description 
3005.90 Wadding, gauze, bandages and the .like 
ex 3921.12} { 
ex 3921.13} { Woven, knitted or non-woven fabrics coated, covered or laminated with plastics 
ex 3921.90} { 
Page 115 
HS No. Product Description 
ex 4202.12} { 
ex 4202.22} {Luggage, handbags and flatgoods with an outer surface predominantly of textile 
ex 4202.32} {materials 
ex 4202.92} { 
ex 6405.20 Footwear with soles and uppers of wool felt 
ex 6406.10 Footwear uppers of which 50% or more of the external surface area is textile 
material 
ex 6406.99 Leg warmers and gaiters of textile material 
6501.00 Hat-forms, hat bodies and hoods of felt; plateaux and manchons of felt 
6502.00 Hat-shapes, plaited or made by assembling strips of any material 
6503.00 Felt hats and other felt headgear 
6504.00 Hats & other headgear, plaited or made by assembling strips of any material 
6505.90 Hats & other headgear, knitted or made up from lace, or other textile material 
6601.10 Umbrellas and sun umbrellas, garden type 
6601.91 Other umbrella types, telescopic shaft 
660199 Other umbrellas 
ex 7019.10 Yarns of fibre glass 
ex 7019.20 Woven fabrics of fibre glass 
8708.21 Safety seat belts for motor vehicles 
8804.00 Parachutes; their parts and accessories 
9113.90 Watch straps, bands and bracelets of textile materials 
ex 9404.90 Pillow and cushions of cotton: quilts; eiderdownss comforters and similar articles 
of textile materials 
9502.91 Garments for dolls 
ex 9612.10 Woven ribbons, of man-made fibres, other than those measuring less than 30 mm 
in width and permanently put up in cartridges 
Page 116 
Page 117 
AGREEMENT ON TECHNICAL BARRIERS TO TRADE 
Members, 
Having regard to the Uruguay Round of Multilateral Trade Negotiations; 
Desiring to further the objectives of GATT 1994; 
Recognizing the important contribution that international standards and conformity assessment 
systems can make in this regard by improving efficiency of production and facilitating the conduct 
of international trade; 
Desiring therefore to encourage the development of such international standards and conformity 
assessment systems; 
Desiring however to ensure that technical regulations and standards, including packaging, marking 
and labelling requirements, and procedures for assessment of conformity with technical regulations 
and standards do not create unnecessary obstacles to international trade: 
Recognizing that no country should be prevented from taking measures necessary to ensure 
the quality of its exports, or for the protection of human, animal or plant life or health, of the 
environment, or for the prevention of deceptive practices, at the levels it considers appropriate, subject 
to the requirement that they are not applied in a manner which would constitute a means of arbitrary 
or unjustifiable discrimination between countries where the same conditions prevail or a disguised 
restriction on international trade, and are otherwise in accordance with the provisions of this Agreement; 
Recognizing that no country should be prevented from taking measures necessary for the 
protection of its essential security interest; 
Recognizing the contribution which international standardization can make to the transfer of 
technology from developed to developing countries; 
Recognizing that developing countries may encounter special difficulties in the formulation 
and application of technical regulations and standards and procedures for assessment of conformity 
with technical regulations and standards, and desiring to assist them in their endeavours in this regard; 
Hereby agree as follows: 
Article 1 
General Provisions 
1.1 General terms for standardization and procedures for assessment of conformity shall normally 
have the meaning given to them by definitions adopted within the United Nations system and by 
international standardizing bodies taking into account their context and in the light of the object and 
purpose of this Agreement. 
1.2 However, for the purposes of this Agreement the meaning ofthe terms given in Annex 1 applies. 
1.3 All products, including industrial and agricultural products, shall be subject to the provisions 
of this Agreement. 
Page 118 
1.4 Purchasing specifications prepared by governmental bodies for production or consumption 
requirements of governmental bodies are not subject to the provisions of this Agreement but are addressed 
in the Agreement on Government Procurement, according to its coverage. 
1.5 The provisions of this Agreement do not apply to sanitary and phytosaniury measures as defined 
in Annex A of the Agreement on the Application of Saniury and Phytosanitary Measures. 
1.6 All references in this Agreement to technical regulations, standards and conformity assessment 
procedures shall be construed to include any amendments thereto and any additions to the rules or the 
product coverage thereof, except amendments and additions of an insignificant nature. 
TECHNICAL REGULATIONS AND STANDARDS 
Article 2 
Preparation, Adoption and Application of Technical Regulations 
by Central Government Bodies 
With respect to their central government bodies: 
2.1 Members shall ensure that in respect of technical regulations, products imported from the territory 
of any Member shall be accorded treatment no less favourable than that accorded to like products of 
national origin and to like products originating in any other country. 
2.2 Members shall ensure that technical regulations are not prepared, adopted or applied with a 
view to or with the effect of creating unnecessary obstacles to international trade. For this purpose, 
technical regulations shall not be more trade-restrictive than necessary to fulfil a legitimate objective, 
taking account of the risks non-fulfilment would create. Such legitimate objectives are, inter alia: 
national security requirements; the prevention of deceptive practices; protection of human health or 
safety, animal or plant life or health, or the environment. In assessing such risks, relevant elements 
of consideration are. inter alia: available scientific and technical information, related processing 
technology or intended end-uses of products. 
2.3 Technical regulations shall not be maintained if the circumstances or objectives giving rise 
to their adoption no longer exist or if the changed circumstances or objectives can be addressed in 
a less trade-restrictive manner. 
2.4 Where technical regulations are required and relevant international standards exist or their 
completion is imminent. Members shall use them, or the relevant parts of them, as a basis for their 
technical regulations except when such international standards or relevant parts would be an ineffective 
or inappropriate means for the fulfilment of the legitimate objectives pursued, for instance because 
of fundamental climatic or geographical factors or fundamental technological problems. 
2.5 A Member preparing, adopting or applying a technical regulation which may have a significant. 
effect on trade of other Members shall, upon the request of another Member, explain the justification 
for that technical regulation in terms of the provisions of paragraphs 2 to 4. Whenever a technical 
regulation is prepared, adopted or applied for one of the legitimate objectives explicitly mentioned 
in paragraph 2, and is in accordance with relevant international standards, it shall be rebuttably presumed 
not to create an unnecessary obstacle to international trade. 
Page 119 
2.6 With a view to harmonizing technical regulations on as wide a basis as possible, Members 
shall play a full part, within the limits of their resources, in the preparation by appropriate international 
standardizing bodies of international standards for products for which they either have adopted, or 
expect to adopt, technical regulations. 
2.7 Members shall give positive consideration to accepting as equivalent technical regulations of 
other Members, even if these regulations differ from their own, provided they are satisfied that these 
regulations adequately fulfil the objectives of their own regulations. 
2.8 Wherever appropriate. Members shall specify technical regulations based on product requirements 
in terms of performance rather than design or descriptive characteristics. 
2.9 Whenever a relevant international standard does not exist or the technical content of a proposed 
technical regulation is not in accordance with the technical content of relevant international standards, 
and if the technical regulation may have a significant effect on trade of other Members, Members shall: 
2.9.1 publish a notice in a publication at an early appropriate stage, in such a manner as 
to enable interested parties in other Members to become acquainted with it, that they 
propose to introduce a particular technical regulation; 
2.9.2 notify other Members through the Secretariat of the products to be covered by the 
proposed technical regulation, together with a brief indication of its objective and 
rationale. Such notifications shall take place at an early appropriate stage, when 
amendments can still be introduced and comments taken into account; 
2.9.3 upon request, provide to other Members particulars or copies of the proposed technical 
regulation and. whenever possible, identify the parts which in subsunce deviate from 
relevant international standards; 
2 9.4 without discrimination, allow reasonable time for other Members to make comments 
in writing, discuss these comments upon request, and take these written comments 
and the results of these discussions into account. 
2 10* Subject to the provisions in the lead-in to paragraph 9, where urgent problems of safety, health, 
environmental protection or national security arise or threaten to arise for a Member, that Member 
may omit such ofthe steps enumerated in paragraph 9 as it finds necessary, provided that the Member, 
upon adoption of a technical regulation, shall: 
2.10.1 notify immediately other Members through the Secretariat of the particular technical 
regulation and the products covered, with a brief indication of the objective and the 
rationale of the technical regulation, including the nature ofthe urgent problems; 
2.10.2 upon request, provide other Members with copies ofthe technical regulation; 
2.10.3 without discrimination, allow other Members to present their comments in writing, 
discuss these comments upon request, and uke these written comments and the results 
of these discussions into account. 
2.11 Members shall ensure that all technical regulations which have been adopted are published 
promptly or otherwise made available in such a manner as to enable interested parties in other Members 
to become acquainted with them. 
Page 120 
2.12 Except in those urgent circumstances referred to in paragraph 10, Members shall allow a 
reasonable interval between the publication of technical regulations and their entry into force in order 
to allow time for producers in exporting Members, and particularly in developing country Members, 
to adapt their products or methods of production to the requirements of the importing Member. 
Article 3 
Preparation, Adoption and Application of Technical Regulations 
by Local Government Bodies and Non-Governmental Bodies 
With respect to their local government and non-governmenul bodies within their territories: 
3.1 Members shall take such reasonable measures as may be available to them to ensure compliance 
by such bodies with the provisions of Article 2, with the exception ofthe obligation to notify as referred 
to in paragraphs 9.2 and 10.1 of Article 2. 
3.2 Members shall ensure that the technical regulations of local governments on the level directly 
below that of the central government in Members are notified in accordance with the provisions of 
paragraphs 9.2 and 10.1 of Article 2, noting that notification shall not be required for technical 
regulations the technical content of which is substantially the same as that of previously notified technical 
regulations "of central government bodies of the Member concerned. 
3.3 Members may require contact with other Members, including the notifications, provision of 
information, comments and discussions referred to in paragraphs 9 and 10 of Anicle 2, to take place 
through the central government. 
3.4 Members shall not take measures which require or encourage local government bodies or non­
governmental bodies within their territories to act in a manner inconsistent with the provisions of 
Article 2. 
3.5 Members are fully responsible under this Agreement for the observance of all provisions of 
Article 2. Members shall formulate and implement positive measures and mechanisms in support of 
the observance of the provisions of Article 2 by other than central government bodies. 
Article 4 
Preparation, Adoption and Application 
of Standards 
4.1 Members shall ensure that their central government standardizing bodies accept and comply 
with the Code of Good Practice for the Preparation, Adoption and Application of Standards in Annex 3 
to this Agreement (referred to in this Agreement as the "Code of Good Practice"). They shall take 
such reasonable measures as may be available to them to ensure that local government and non­
governmental standardizing bodies within their territories, as well as regional standardizing bodies 
of which they or one or more bodies within their territories are members, accept and comply with 
this Code of Good Practice. In addition. Members shall not take measures which have the effect of, 
directly or indirectly, requiring or encouraging such standardizing bodies to act in a manner inconsistent 
with the Code of Good Practice. The obligations of Members with respect to compliance of standardizing 
bodies with the provisions of the Code of Good Practice shall apply irrespective of whether or not 
a standardizing body has accepted the Code of Good Practice. 
Page 121 
4.2 Standardizing'bodies that have accepted and are complying with the Code of Good Practice 
shall be acknowledged by the Members as complying with the principles of this Agreement. 
CONFORMITY WITH TECHNICAL REGULATIONS AND STANDARDS 
Article 5 
Procedures for Assessment of Conformity by Central Government Bodies 
5.1 Members shall ensure that, in cases where a positive assurance of conformity with technical 
regulations or standards is required, their central government bodies apply the following provisions 
to products originating in the territories of other Members: 
5.1.1 conformity assessment procedures are prepared, adopted and applied so as to grant 
access for suppliers of like products originating in the territories of other Members 
. under conditions no less favourable than those accorded to suppliers of like products 
of national origin or originating in any other country, in a comparable situation; access 
entails suppliers' right to an assessment of conformity under the rules ofthe procedure, 
including, when foreseen by this procedure, the possibility to have conformity 
assessment activities undertaken at the site of facilities and to receive the mark of the 
system; 
5.1.2' conformity assessment procedures are not prepared, adopted or applied with a view 
to or with the effect of creating unnecessary obsucles to international trade. This means. 
inter alia, that conformity assessment procedures shall not be more strict or be applied 
more strictly than is necessary to give the importing Member adequate confidence that 
products conform with the applicable technical regulations or standards, taking account 
of the risks non-conformity would create. 
5.2 When implementing the provisions of paragraph 1, Members shall ensure that: 
5.2.1 conformity assessment procedures are undertaken and completed as expeditiously as 
possible and in a no less favourable order for products originating in the territories 
of other Members than for like domestic products; 
5.2.2 the standard processing period of each conformity assessment procedure is published 
or that the anticipated processing period is communicated to the applicant upon request; 
when receiving an application, the competent body promptly examines the completeness 
of the documentation and informs the applicant in a precise and complete manner of 
all deficiencies; the competent body transmits as soon as possible the results of the 
assessment in a precise and complete manner to the applicant so that corrective action 
may be taken if necessary; even when the application has deficiencies, the competent 
body proceeds as far as practicable with the conformity assessment if the applicant 
so requests; and that, upon request, the applicant is informed of the stage of the 
procedure, with any delay being explained; 
5.2.3 information requirements are limited to what is necessary to assess conformity and 
determine fees; 
5.2.4 the confidentiality of information about products originating in the territories of other 
Members arising from or supplied in connection with such conformity assessment 
Page 122 
procedures is respected in the same way as for domestic products and in such a manner 
that legitimate commercial interests are protected; 
5.2.5 any fees imposed for assessing the conformity of products originating in the territories 
of other Members are equiuble in relation to any fees chargeable for assessing the 
conformity of like products of national origin or originating in any other country, taking 
into account communication, transportation and other costs arising from differences 
between location of facilities of the applicant and the conformity assessment body; 
5.2.6 the siting of facilities used in conformity assessment procedures and the selection of 
samples are not such as to cause unnecessary inconvenience to applicants or their agents; 
5.2.7 whenever specifications of a product are changed subsequent to the determination of 
its conformity to the applicable technical regulations or standards, the conformity 
assessment procedure for the modified product is limited to what is necessary to 
determine whether adequate confidence exists that the product still meets the technical 
regulations or standards concerned; 
5.2.8 a procedure exists to review complaints concerning the operation of a conformity 
assessment procedure and to take corrective action when a complaint is justified. 
5.3 Nothing in paragraphs 1 and 2 shall prevent Members from carrying out reasonable spot checks 
within their territories. 
5 4 In cases where a positive assurance is required that products conform with technical regulations 
or standards, and relevant guides or recommendations issued by international standardizing bodies exist 
or their completion is imminent. Members shall ensure that central government bodies use them, or 
the relevant parts of them, as a basis for their conformity assessment procedures, except Where, as 
duly explained upon request, such guides or recommendations or relevant parts are inappropriate for 
the Members concerned, for. inter alia, such reasons as: national security requirements; the prevention 
of deceptive practices; protection of human health or safety, animal or plant life or health, or the 
environment; fundamental climatic or other geographical factors; fundamental technological or 
infrastructural problems. 
5.5 With a view to harmonizing conformity assessment procedures on as wide a basis as possible. 
Members shall play a full part, within the limits of their resources, in the preparation by appropriate 
international standardizing bodies of guides and recommendations for conformity assessment procedures. 
5 6 Whenever a relevant guide or recommendation issued by an international standardizing body 
does not exist or the technical content of a proposed conformity assessment procedure is not in accordance 
with relevant guides and recommendations issued by international standardizing bodies, and if the 
conformity assessment procedure may have a significant effect on trade of other Members, Members 
shall: 
5.6.1 publish a notice in a publication at an early appropriate stage; in "such a manner as 
to enable interested parties in other Members to become acquainted with it, that they 
propose to introduce a particular conformity assessment procedure; 
5.6.2 notify* other Members through the Secretariat of the products to be covered by the 
proposed conformity assessment procedure, together with a brief indication of its 
objective and rationale. Such notifications shall take place at an early appropriate stage, 
when amendments can still be introduced and comments taken into account; 
Page 123 
5.6.3 upon request, provide to other Members particulars or copies ofthe proposed procedure 
and, whenever possible, identify the parts which in substance deviate from relevant 
guides or recommendations issued by international standardizing bodies; 
5.6.4 without discrimination, allow reasonable time for other Members to make comments 
in writing, discuss these comments upon request, and take these written comments 
and the results of these discussions into account. 
5.7 Subject to the provisions in the lead-in to paragraph 6, where urgent problems of safety, health, 
environmental protection or national security arise or threaten to arise for a Member, that Member 
may omit such ofthe steps enumerated in paragraph 6 as it finds necessary, provided that the Member, 
upon adoption of the procedure, shall: 
5.7.1 notify' immediately other Members through the Secreuriat of the particular procedure 
and the products covered, with a brief indication of the objective and the rationale of 
the procedure, including the nature of the urgent problems; 
5.7.2 upon request, provide other Members with copies of the rules of the procedure; 
5.7.3 without discrimination, allow other Members to present their comments in writing, 
discuss these comments upon request, and take these written comments and the results 
of these discussions into account. 
5.8 Members shall ensure that all conformity assessment procedures which have been adopted are 
published promptly or otherwise made available in such a manner as to enable interested parties in 
other Members to become acquainted with them. 
5.9 Except in those urgent circumstances referred to in paragraph 7, Members shall allow a 
reasonable interval between the publication of requirements concerning conformity assessment procedures 
and their entry into force in order to allow time for producers in exporting Members, and particularly 
in developing country Members, to adapt their products or methods of production to the requirements 
ofthe importing Member. 
Article 6 
Recognition of Conformity Assessment by Central Government Bodies 
With respect to their central government bodies: 
6 1 Without prejudice to the provisions of paragraphs 3 and 4, Members shall ensure, whenever 
possible, that results of conformity assessment procedures in other Members are accepted, even when 
those procedures differ from their own, provided they are satisfied that those procedures offer an 
assurance of conformity with applicable technical regulations or standards equivalent to their own 
procedures. It is recognized that prior consulutions may be necessary in order to arrive at a mutually 
satisfactory understanding regarding, in particular: 
6.1.1 adequate and enduring technical competence of the relevant conformity assessment 
bodies in the exporting Member, so that confidence in the continued reliability of their 
conformity assessment results can exist; in this regard, verified compliance, for instance 
through accreditation, with relevant guides or recommendations issued by international 
standardizing bodies shall be uken into account as an indication of adequate technical 
competence; 
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6.1.2 limitation of the acceptance of conformity assessment results to those produced by 
designated bodies in the exporting Member. 
6.2 Members shall ensure that their conformity assessment procedures permit, as far as practicable, 
the implementation of the provisions in paragraph 1. 
6.3 Members are encouraged, at the request of other Members, to be willing to enter into negotiations 
for the conclusion of agreements for the mutual recognition of results of each other's conformity 
assessment procedures. Members may require that such agreements fulfil the criteria of paragraph 1 
and give mutual satisfaction regarding their potential for facilitating trade in the products concerned. 
6.4 ' Members are encouraged to permit participation of conformity assessment bodies located in 
the territories of other Members in their conformity assessment procedures under conditions no less 
favourable than those accorded to bodies located within their territory or the territory of any other 
country. 
Article 7 
Procedures for Assessment of Conformity by Local Government Bodies 
With respect to their local government bodies within their territories: 
7.1 Members shall take such reasonable measures as may be available to them to ensure compliance 
by such bodies with the provisions of Articles 5 and 6, with the exception of the obligation to notify-
as referred to in paragraphs 6.2 and 7.1 of Article 5. 
7.2 Members shall ensure that the conformity assessment procedures of local governments on the 
level directly below that of the central government in Members are notified in accordance with the 
provisions of paragraphs 6.2 and 7.1 of Article 5, noting that notifications shall not be required for 
conformity assessment procedures the technical content of which is substantially the same as that of 
previously notified conformity assessment procedures of central government bodies of the Members 
concerned. 
7.3 Members may require contact with other Members, including the notifications, provision of 
information, comments and discussions referred to in paragraphs 6 and 7 of Article 5, to take place 
through the central government. 
7.4 Members shall not take measures which require or encourage local government bodies within 
their territories to act in a manner inconsistent with the provisions of Articles 5 and 6. 
7.5 Members are fully responsible under this Agreement for the observance of all provisions of 
Articles 5 and 6. Members shall formulate and implement positive measures and mechanisms in support 
of the observance of the provisions of Articles 5 and 6 by other than central government bodies. 
Article 8 
Procedures for Assessment of Conformity by Non-Governmental Bodies 
8.1 Members shall take such reasonable measures as may be available to them to ensure that non­
governmental bodies within their territories which operate conformity assessment procedures comply 
with the provisions of Articles 5 and 6. with the exception ofthe obligation to notify proposed conformity 
Page 125 
assessment procedures. In addition, Members shall not take measures which have the effect of, directly 
or indirectly, requiring or encouraging such bodies to act in a manner inconsistent with the provisions 
of Articles 5 and 6. 
8.2 Members shall ensure that their central government bodies rely on conformity assessment 
procedures operated by non-governmenul bodies only if these latter bodies comply with the provisions 
of Articles 5 and 6, with the exception of the obligation to notify proposed conformity assessment 
procedures. 
Article'9 
International and Regional Systems 
9.1 Where a positive assurance of conformity with a technical regulation or standard is required. 
Members shall, wherever practicable, formulate and adopt international systems for conformity 
assessment and become members thereof or participate therein. 
9.2 Members shall take such reasonable measures as may be available to them to ensure that 
international and regional systems for conformity assessment in which relevant bodies within their 
territories are members or participants comply with the provisions of Articles 5 and 6. In addition. 
Members shall.not take any measures which have the effect of, directly or indirectly, requiring or 
encouraging such systems to act in a manner inconsistent with any ofthe provisions of Articles 5 and 6. 
9.3 Members shall ensure that their central government bodies rely on international or regional 
conformity assessment systems only to the extent that these systems comply with the provisions of 
Articles 5 and 6, as applicable. 
INFORMATION AND ASSISTANCE 
Article 10 
Information About Technical Regulations, Standards and 
Conformity Assessment Procedures 
10.1 Each Member shall ensure that an enquiry point exists which is able to answer all reasonable 
enquiries from other Members and interested parties in other Members as well as to provide the relevant 
documents regarding: 
10.1.1 any technical regulations adopted or proposed within its territory by central or local 
government bodies, by non-governmenul bodies which have legal power to enforce 
a technical regulation, or by regional standardizing bodies of which such bodies are 
members or participants; 
10.1.2 any standards adopted or proposed within its territory by central or local government 
bodies, or by regional standardizing bodies of which such bodies are members or 
participants; 
10.1.3 any conformity assessment procedures, or proposed conformity assessment procedures, 
which are operated within its territory by central or local government bodies, or by 
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non-governmental bodies which have legal power to enforce a technical regulation, 
or by regional bodies of which such bodies are members or participants; 
10.1.4 the membership and participation of the Member, or of relevant central or local 
government bodies within its territory, in international and regional standardizing bodies 
and conformity assessment systems, as well as in bilateral and multilateral arrangements 
within the scope of this Agreement; it shall also be able to provide reasonable 
information on the provisions of such systems and arrangements; 
10.1.5 the location of notices published pursuant to this Agreement, or the provision of 
information as to where such information can be obtained; and 
10.1.6 the location of the enquiry points mentioned in paragraph 3. 
10.2 If, however, for legal or administrative reasons more than one enquiry point is established 
by a Member, that Member shall provide to the other Members complete and unambiguous information 
on the scope of responsibility of each of these enquiry points. In addition, that Member shall ensure 
that any enquiries addressed to an incorrect enquiry point shall promptly be conveyed to the correct 
enquiry point. 
10.3 Each Member shall take such reasonable measures as may be available to it to ensure that one 
or more enquiry points exist which are able to answer all reasonable enquiries from other Members 
and interested parties in other Members as well as to provide the relevant documents or information 
as to where they can be obtained regarding: 
10 3.1 any standards adopted or proposed within its territory by non-governmenul standardizing 
bodies, or by regional standardizing bodies of which such bodies are members or 
participants; and 
10 3.2 any conformity assessment procedures, or proposed conformity assessment procedures. 
which are operated within its territory by non-governmental bodies, or by regional 
bodies of which such bodies are members or participants; 
10.33 the membership and participation of relevant non-governmenul bodies within its territory 
in international and regional standardizing bodies and conformity assessment systems, 
as well as in bilateral and multilateral arrangements within the scope of this Agreement; 
they shall also be able to provide reasonable information on the provisions of such 
systems and arrangements. 
10 4 Members shall take such reasonable measures as may be available to them to ensure that where 
copies of documents are requested by other Members or by interested parties in other Members, in 
accordance with the provisions of this Agreement, they are supplied at an equitable price (if any) which 
shall, apart from the real cost of delivery. be the same for the nationals1 of the Member concerned 
or of any other Member. 
10 5 Developed country Members shall, if requested by other Members, provide, in English, French 
or Spanish, translations of the documents covered by a specific notification or, in case of voluminous 
documents, of summaries of such documents. 
"Nationals" here shall be deemed, in the case of a separate customs territory Member ofthe WTO, to mean persons. 
natural or legal, who are domiciled or who have a real and effective industrial or commercial establishment in that customs 
territory 
Page 127 
10.6 The Secreuriat shall, when it receives notifications in accordance with the provisions of this 
Agreement, circulate copies ofthe notifications to all Members and interested international standardizing 
and conformity assessment bodies, and draw the attention of developing country Members to any 
notifications relating to products of particular interest to them. 
10.7 Whenever a Member has reached an agreement with any other country or countries on issues 
related to technical regulations, standards or conformity assessment procedures which may have a 
significant effect on trade, at least one Member party to the agreement shall notify other Members 
through the Secretariat ofthe products to be covered by the agreement and include a brief description 
of the agreement. Members concerned are encouraged to enter, upon request, into consultations with 
other Members foi the purposes of concluding similar agreements or of arranging for their participation 
in such agreements. 
10.8 Nothing in this Agreement shall be construed as requiring: 
10.8.1 the publication of texts other than in the language of the Member; 
10.8.2 the provision of particulars or copies of drafts other than in the language ofthe Member 
except as stated in paragraph 5; or 
10.8.3 Members to furnish any information, the disclosure of which they consider contrary 
to their essential security interests. 
10.9 Notifications to the Secretariat shall be in English, French or Spanish. 
10 10 Members shall designate a single central government authority that is responsible for the 
implementation on the national level of the provisions concerning notification procedures under this 
Agreement except those included in Annex 3. 
10.11 If. however, for legal or administrative reasons the responsibility for notification procedures 
is divided among two or more central government authorities, the Member concerned shall provide 
to the other Members complete and unambiguous information on the scope of responsibility of each 
of these authorities. 
Article 11 
Technical Assistance to Other Members 
111 Members shall, if requested, advise other Members, especially the developing country Members, 
on the preparation of technical regulations. 
11.2 Members shall, if requested, advise other Members, especially the developing country Members, 
and shall grant them technical assistance on mutually agreed terms and conditions regarding the 
establishment of national standardizing bodies, and participation in the international standardizing bodies, 
and shall encourage their national standardizing bodies to do likewise. 
11.3 Members shall, if requested, take such reasonable measures as may be available to them to 
arrange for the regulatory bodies within their territories, to advise other Members, especially the 
developing country Members, and shall grant them technical assistance on mutually agreed terms and 
conditions regarding: 
Page 128 
11.3.1 the esublishment of regulatory bodies, or bodies for the assessment of conformity with 
technical regulations; and 
11.3.2 the methods by which their technical regulations can best be met. 
11.4 Members shall, if requested, take such reasonable measures as may be available to them to 
arrange for advice to be given to other Members, especially the developing country Members, and 
shall grant them technical assistance on mutually agreed terms and conditions regarding the esublishment 
of bodies for the assessment of conformity with standards adopted within the territory ofthe requesting 
Member. 
11.5 Members shall, if requested, advise other Members, especially the developing country Members, 
and shall grant them technical assistance on mutually agreed terms and conditions regarding the steps 
that should be uken by their producers if they wish to have access to systems for conformity assessment 
operated by governmental or non-governmental bodies within the territory of the Member receiving 
the request. 
11.6 Members which are members or participants of international or regional systems for conformity 
assessment shall, if requested, advise other Members, especially the developing country Members, 
and shall grant them technical assistance on mutually agreed terms and conditions regarding the 
establishment ofthe institutions and legal framework which would enable them to fulfil the obligations 
of membership or participation in such systems.-
11.7 Members shall, if so requested, encourage bodies within their territories which are members 
or participants of international or regional systems for conformity assessment to advise other Members, 
especially the developing country Members, and should consider requests for technical assistance from 
them regarding the establishment ofthe institutions which would enable the relevant bodies within their 
territories to fulfil the obligations of membership or participation. 
11.8 In providing advice and technical assistance to other Members in terms of paragraphs 1 to 7. 
Members shall give priority to the needs ofthe least-developed country Members. 
Article 12 
Special and Differential Treatment of Developing Country Members 
12.1 Members shall provide differential and more favourable treatment to developing country Members 
to this Agreement, through the following provisions as well as through the relevant provisions of other 
Articles of this Agreement. 
12.2 Members shall give particular attention to the provisions of this Agreement concerning developing 
country Members' rights and obligations and shall uke into account the special development, financial 
and trade needs of developing country Members in the implemenution of this Agreement, both nationally 
and in the operation of this Agreement's institutional arrangements. 
12.3 Members shall, in the preparation and application of technical regulations, standards and 
conformity assessment procedures, uke account ofthe special development, financial and trade needs 
of developing country Members, with a view to ensuring that such technical regulations, standards 
and conformity assessment procedures do not create unnecessary obstacles to exports from developing 
country Members. 
Page 129 
12.4 Members recognize that, although international standards, guides or recommendations may 
exist, in their particular technological and socio-economic conditions, developing country Members 
adopt certain technical regulations, standards or conformity assessment procedures aimed at preserving 
indigenous technology and production methods and processes compatible with their development needs. 
Members therefore recognize that developing country Members should not be expected to use 
international standards as a basis for their technical regulations or standards, including test methods, 
which are not appropriate to their development, financial and trade needs. 
12.5 Members shall take such reasonable measures as may be available to them to ensure that 
international standardizing bodies and international systems for conformity assessment are organized 
and operated in a way which facilitates active and representative participation of relevant bodies in 
all Members, taking into'account the special problems of developing country Members. 
12.6 Members shall take such reasonable measures as may be available to them to ensure that 
international standardizing bodies, upon request of developing country Members, examine the possibility 
of, and, if practicable, prepare international standards concerning products of special interest to 
developing country Members. 
12.7 Members shall, in accordance with the provisions of Article 11. provide technical assistance 
to developing country Members to ensure that the preparation and application of technical regulations, 
standards and conformity assessment procedures do not create unnecessary obstacles to the expansion 
and diversification of" exports from developing country Members. In determining the terms and 
conditions ofthe technical assistance, account shall be taken ofthe stage of development ofthe requesting 
Members and in particular of the least-developed country Members. 
12.8 It is recognized that developing country Members may face special problems, including 
institutional and infrastructural problems, in the field of preparation and application of technical 
regulations, standards and conformity assessment procedures. It is further recognized that the special 
development and trade needs of developing country Members, as well as their stage of technological 
development, may hinder their ability to discharge fully their obligations under this Agreement 
Members, therefore, shall take this fact fully into account Accordingly, with a view to ensuring that 
developing country Members are able to comply with this Agreement, the Committee on Technical 
Barriers to Trade provided for in Article 13 (referred to in this Agreement as the "Committee") is 
enabled to grant, upon request, specified, time-limited exceptions in whole or in part from obligations 
under this Agreement. When considering such requests the Committee shall take into account the special 
problems, irt the field of preparation and application of technical regulations, standards and conformity 
assessment procedures, and the special development and trade needs ofthe developing country Member, 
as well as its stage of technological development, which may hinder its ability to discharge fully its 
obligations under this Agreement. The Committee shall, in particular, take into account the special 
problems ofthe least-developed country Members. 
12.9 During consultations, developed country Members shall bear in mind the special difficulties 
experienced by developing country Members in formulating and implementing standards and technical 
regulations and conformity assessment procedures, and in their desire to assist developing country 
Members with their efforts in this direction, developed country Members shall take account ofthe special 
needs ofthe former in regard to financing, trade and development. 
12.10 The Committee shall examine periodically the special and differential treatment, as laid down 
in this Agreement, granted to developing country Members on national and international levels. 
Page 130 
INSTITUTIONS, CONSULTATION AND DISPUTE SETTLEMENT 
Article 13 
The Committee on Technical Barriers to Trade 
13.1 A Committee on Technical Barriers to Trade is hereby established, and shall be composed 
of representatives from each ofthe Members. The Committee shall elect its own Chairman and shall 
meet as necessary, but no less than once a year, for the purpose of affording Members the opportunity 
of consulting on any matters relating to the operation of this Agreement or the furtherance of its 
objectives, and shall carry out such responsibilities as assigned to it under this Agreement or by the 
Members. 
13.2 The Committee shall establish working parties or other bodies as may be appropriate, which 
shall carry out such responsibilities as may be assigned to them by the Committee in accordance with 
the relevant provisions of this Agreement. 
13.3 It is understood that unnecessary duplication should be avoided between the work under this 
Agreement and that of governments in other technical bodies. The Committee shall examine this problem 
with a view to minimizing such duplication. 
Article 14 
Consultation and Dispute Settlement 
14.1 Consultations and the settlement of disputes with respect to any matter affecting the operation 
of this Agreement shall take place under the auspices ofthe Dispute Settlement Body and shall follow, 
mutatis mutandis, the provisions of Articles XXII and XXIII of GATT 1994, as elaborated and applied 
by the Dispute Settlement Understanding. 
14.2 At the request of a party to a dispute, or at its own initiative, a panel may establish a technical 
expert group to assist in questions of a technical nature, requiring detailed consideration by experts. 
14.3 Technical expert groups shall be governed by the procedures of Annex 2. 
14.4 The dispute settlement provisions set out above can be invoked in cases where a Member 
considers that another Member has not achieved satisfactory results under Articles 3, 4, 7, 8 and 9 
and its trade interests are significantly affected. In this respect, such results shall be equivalent to those 
as if the body in question were a Member. 
Page 131 
FINAL PROVISIONS 
Article 15 
Final Provisions 
Reservations 
15.1 Reservations may not be entered in respect of any of the provisions of this Agreement without 
the consent of the other Members. 
Review 
15.2 Each Member shall, promptly after the date on which the WTO Agreement enters into force 
for it. inform the Committee of measures in existence or taken to ensure the implementation and 
administration of this Agreement. Any changes of such measures thereafter shall also be notified to 
the Committee. 
15.3 The Committee shall review annually the implemenution and operation of this Agreement taking 
into account the objectives thereof. 
15.4 Not later than the end of the third year from the date of entry into force of the WTO Agreement 
and at the end of each three-year period thereafter, the Committee shall review the operation and 
implementation of this Agreement, including the provisions relating to transparency, with a view to 
recommending an adjustment ofthe rights and obligations of this Agreement where necessary to ensure 
mutual economic advantage and balance of rights and obligations^without prejudice to the provisions 
of Article 12. Having regard, inter alia, to the experience gained in the implementation of the 
Agreement, the Committee shall, where appropriate, submit proposals for amendments to the text of 
this Agreement to the Council for Trade in Goods. 
Annexes 
15.'5 The annexes to this Agreement constitute an integral part thereof. 
Page 132 
ANNEX 1 
TERMS AND THEIR DEFINITIONS FOR THE 
PURPOSE OF THIS AGREEMENT 
The terms presented in the sixth edition of the ISO/IEC Guide 2: 1991, General Terms and 
Their Definitions Concerning Standardization and Related Activities, shall, when used in this Agreement, 
have the same meaning as given in the definitions in the said Guide taking into account that services 
are excluded from the coverage of this Agreement. 
For the purpose of this Agreement, however, the following definitions shall apply: 
1. Technical regulation 
Document which lays down product characteristics or their related processes and production 
methods, including the applicable administrative provisions, with which compliance is mandatory. 
It may also include or deal exclusively with terminology, symbols, packaging, marking or labelling 
requirements as they apply to a product, process or production method. 
Explanatory note 
The definition in ISO/IEC Guide 2 is not self-contained, but based on the so-called "building 
block" system. 
2. Standard 
Document approved by a recognized body, that provides, for common and repeated use. rules, 
guidelines or characteristics for products or related processes and production methods, with which 
compliance is not mandatory. It may also include or deal exclusively with terminology, symbols, 
packaging, marking or labelling requirements as they apply to a product, process or production method. 
Explanatory note 
The terms as defined in ISO/IEC Guide 2 cover products, processes and services. This 
Agreement deals only with technical regulations, standards and conformity assessment procedures 
related to products or processes and production methods. Standards as defined by ISO TEC 
Guide 2 may be mandatory or voluntary. For the purpose of this Agreement standards are 
defined as voluntary and technical regulations as mandatory documents. Standards prepared 
by the international standardization community are based on consensus. This Agreement covers 
also documents that are not based on consensus. 
3. Conformity assessment procedures 
Any procedure used, directly or indirectly, to determine that relevant requirements in technical 
regulations or standards are fulfilled. 
Explanatory note 
Conformity assessment procedures include, inter alia, procedures for sampling, testing and 
inspection; evaluation, verification and assurance of conformity; registration, accreditation 
and approval as well as their combinations. 
Page 133 
4. International body or system 
Body or system whose membership is open to the relevant bodies of at least all Members. 
5. Regional body or system 
Body or system whose membership is open to the relevant bodies of only some ofthe Members. 
6. Central government body 
Central government, its ministries and departments or any body subject to the control of the 
central government in respect of the activity in question. 
Explanatory note: 
In the case ofthe European Communities the provisions governing central government bodies 
apply. However, regional bodies or conformity assessment systems may be established within 
the European Communities, and in such cases would be subject to the provisions of this 
Agreement on regional bodies or conformity assessment systems. 
7. Local government body 
Government other than a central government (e.g. states, provinces. Länder, cantons, 
municipalities, etc.), its ministries or departments or any body subject to the control of such a government 
in respect of the activity in question. 
8. Non-governmental body-
Body other than a central government body or a local government body, including a non­
governmental body which has legal power to enforce a technical regulation. 
Page 134 
ANNEX 2 
TECHNICAL EXPERT GROUPS 
The following procedures shall apply to technical expert groups established in accordance with 
the provisions of Article 14. 
1. Technical expert groups are under the panel's authority. Their terms of reference and detailed 
working procedures shall be decided by the panel, and they shall report to the panel. 
2. Participation in technical expert groups shall be restricted to persons of professional standing 
and experience in the field in question. 
3. Citizens of parties to the dispute shall not serve on a technical expert group without the joint 
agreement ofthe parties to the dispute, except in exceptional circumstances when the panel considers 
that the need for.specialized scientific expertise cannot be fulfilled otherwise. Government officials 
of parties to the dispute shall not serve on a technical expert group. Members of technical expert groups 
shall serve in their individual capacities and not as government representatives, nor as representatives 
of any organization. Governments or organizations shall therefore not give them instructions with 
regard to matters before a technical expert group. 
4. Technical expert groups may consult and seek information and technical advice from any source 
they deem appropriate. Before a technical expert group seeks such information or advice from a source 
withm the jurisdiction of a Member, it shall inform the government ofthat Member. Any Member 
shall respond promptly and fully to any request by a technical expert group for such information as 
the technical expert group considers necessary and appropriate. 
5. The parties to a dispute shall have access to all relevant information provided to a technical 
expert group, unless it is of a confidential nature Confidential information provided to the technical 
expert group shall not be.released without formal authorization from the government, organization 
or person providing the information. Where such information is requested from the technical expert 
group but release of such information by the technical expert group is not authorized, a non-confidential 
summary of the information will be provided by the government, organization or person supplying 
the information 
6. The technical expert group shall submit a draft report to the Members concerned with a view-
to obtaining their comments, and taking them into account, as appropriate, in the final report, which 
shall also be circulated to the Members concerned when it is submitted to the panel. 
Page 135 
ANNEX 3 
CODE OF GOOD PRACTICE FOR THE PREPARATION, ADOPTION AND 
APPLICATION OF STANDARDS 
General Provisions 
A. For the purposes of this Code the definitions in Annex 1 of this Agreement shall apply. 
B. This Code is open to acceptance by any standardizing body within the territory of a Member 
of the WTO. whether a central government body, a local government body, or a non-governmental 
body; to any governmental regional standardizing body one or more members of which are Members 
ofthe WTO; and to any non-governmental regional standardizing body one or more members of which 
are situated within the territory of a Member of the WTO (referred to in this Code collectively as 
"standardizing bodies" and individually as "the standardizing body"). 
C. . Standardizing bodies that have accepted or withdrawn from this Code shall notify this fact to 
the ISO/IEC Information Centre in Geneva. The notification shall include the name and address of 
the body concerned and the scope of its current and expected standardization activities. The notification 
may be sent either directly to the ISO/IEC Information Centre, or through the national member body 
of ISO/IEC or. preferably, through the relevant national member or international affiliate of ISONET, 
as appropriate. 
SUBSTANTIVE PROVISIONS 
D. In respect of standards, the standardizing body shall accord treatment to products originating 
in the territory of any other Member ofthe WTO no less favourable than that accorded to like products 
of national origin and to like products originating in any other country. 
E. The standardizing body shall ensure that standards are not prepared, adopted or applied with 
a view to, or with the effect of, creating unnecessary obstacles to international trade. 
F. Where international standards exist or their completion is imminent, the standardizing body 
shall use them, or the relevant parts of them, as a basis for the standards it develops, except where 
such international standards or relevant parts would be ineffective or inappropriate, for instance, because 
of an insufficient level of protection or fundamental climatic or geographical factors or fundamental 
technological problems. 
G. With a view to harmonizing standards on as wide a basis as possible, the standardizing body 
shall, in an appropriate way, play a full part, within the limits of its resources, in the preparation by 
relevant international standardizing bodies of international standards regarding subject matter for which 
it either has adopted, or expects to adopt, standards. For standardizing bodies within the territory 
of a Member, participation in a particular international standardization activity shall, whenever possible, 
take place through one delegation representing all standardizing bodies in the territory that have adopted, 
or expect to adopt, standards for the subject matter to which the international standardization activity 
relates. 
H. The standardizing body within the territory of a Member shall make every effort to avoid 
duplication of, or overlap with, the work of other standardizing bodies in the national territory or with 
the work of relevant international or regional standardizing bodies. They shall also make every effort 
to achieve a national consensus on the standards they develop. Likewise the regional standardizing 
Page 136 
body shall make every effort to avoid duplication of, or overlap with, the work of relevant international 
standardizing bodies. 
I. Wherever appropriate, the standardizing body shall specify standards based on product 
requirements in terms of performance rather than design or descriptive characteristics. 
J. At least once every six months, the standardizing body shall publish a work programme 
containing its name and address, the standards it is currently preparing and the standards which it has 
adopted in the preceding period. A standard is under preparation from the moment a decision has 
been taken to develop a standard until that standard has been adopted. The titles of specific draft 
standards shall, upon request, be provided in English, French or Spanish. A notice of the existence 
ofthe work programme shall be published in a national or, as the case may be, regional publication 
of standardization activities. 
The work programme shall for each standard indicate, in accordance with any ISONET rules, 
the classification relevant to the subject matter, the stage attained in the standard's development, and 
the references of any international standards taken as a basis. No later than at the time of publication 
of its work programme, the standardizing body shall notify' the existence thereof to the ISO/IEC 
Information Centre in Geneva. 
The notification shall contain the name and address ofthe standardizing body, the name and 
issue of the publication in which the work programme is published, the period to which the work 
programme applies, its price (if any), and how and where it can be obtained. The notification may 
be sent directly to the ISO/IEC Information Centre, or, preferably, through the relevant national member 
or international affiliate of ISONET, as appropriate. 
K. The national member of ISO/IEC shall make every effort to become a member of ISONET 
or to appoint another body to become a member as well as to acquire the most advanced membership 
type possible for the ISONET member. Other standardizing bodies shall make every effort to associate 
themselves with the ISONET member. 
L. Before adopting a standard, the standardizing body shall allow a period of at least 60 days 
for the submission of comments on the draft standard by interested parties within the territory of a 
Member of the WTO. This period may, however, be shortened in cases where urgent problems of 
safety, health or environment arise or threaten to arise. No later than at the start ofthe comment period. 
the standardizing body shall publish a notice announcing the period for commenting in the publication 
referred to in paragraph J. Such notification shall include, as far as practicable, whether the draft 
standard deviates from relevant international standards. 
M. On the request of any interested party within the territory of a Member of the WTO. the 
standardizing body shall promptly provide, or arrange to provide, a copy of a draft standard which 
it has submitted for comments. Any fees charged for this service shall, apart from the real cost of 
delivery, be the same for foreign and domestic parties. 
N. The standardizing body shall take into account, in the further processing of the standard, the 
comments received during the period for commenting. Comments received through standardizing bodies 
that have accepted this Code of Good Practice shall, if so requested, be replied to as promptly as possible. 
The reply shall include an explanation why a deviation from relevant international standards is necessary. 
O. Once the standard has been adopted, it shall be promptly published. 
P. On the request of any interested party within the territory of a Member of the WTO, the 
standardizing body shall promptly provide, or arrange to provide, a copy of its most recent work 
Page 137 
programme or of a standard which it produced. Any fees charged for this service shall, apart from 
the real cost of delivery, be the same for foreign and domestic parties. 
Q. The standardizing body shall afford sympathetic consideration to, and adequate opportunity 
for, consulution regarding representations with respect to the operation of this Code presented by 
standardizing bodies that have accepted this Code of Good Practice. It shall make an objective effort 
to solve any complaints. 
Page 138 
Page 139 
AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES 
Members, 
Considering that Ministers agreed in the Puma del Este Declaration that "Following an 
examination of the operation of GATT Articles related to the trade restrictive and distorting effects 
of investment measures, negotiations should elaborate, as appropriate, further provisions that may be 
necessary to avoid such adverse effects on trade"; 
Desiring to promote the expansion and progressive liberalisation of world trade and to facilitate 
investment across international frontiers so as to increase the economic growth of all trading partners, 
particularly developing country Members, while ensuring free competition; 
Taking into account the particular trade, development and financial needs of developing country 
Members, particularly those of the least-developed country Members; 
Recognizing that certain investment measures can cause trade-restrictive and distorting effects; 
Hereby agree as follows: 
Article 1 
Coverage 
This Agreement applies to investment measures related to trade in goods only (referred to in 
this Agreement as TRIMs"). 
Article 2 
National Treatment and Quantitative Restrictions 
1. Without prejudice to other rights and obligations under GATT 1994, no Member shall apply 
any TRIM that is inconsistent with the provisions of Article III or Article XI of GATT 1994. 
2. An illustrative list of TRIMs that are inconsistent with the obligation of national treatment 
provided for in paragraph 4 of Article III of GATT 1994 and the obligation of general elimination 
of quantitative restrictions provided for in paragraph 1 of Article XI of GATT 1994 js contained in 
the Annex to this Agreement. 
Article 3 
Exceptions 
All exceptions under GATT 1994 shall apply, as appropriate, to the provisions of this Agreement. 
Page 140 
Article 4 
Developing Country Members 
A developing country Member shall be free to deviate temporarily from the provisions of 
Article 2 to the extent and in such a manner as Article XVIII of GATT 1994, the Understanding on 
the Balance-of-Payments Provisions of GATT 1994, and the Declaration on Trade Measures Taken 
for Balance-of-Payments Purposes adopted on 28 November 1979 (BISD 26S/205-209) permit the 
Member to deviate from the provisions of Articles III and XI of GATT 1994. 
Article 5 
Notification and Transitional Arrangements 
1. Members, within 90 days of the date of entry into force of the WTO Agreement, shall notify 
the Council for Trade in Goods of all TRIMs they are applying that are not in conformity with the 
provisions of this Agreement. Such TRIMs of general or specific application shall be notified, along 
with their principal features.1 
2. Each Member shall eliminate all TRIMs which are notified under paragraph 1 within two years 
of the date of entry into force of the WTO Agreement in the case of a developed country Member. 
within five years in the case of a developing country Member, and within seven years in the case of 
a least-developed country Member. 
3. On request, the Council for Trade in Goods may extend the transition period for the elimination 
of TRIMs notified under paragraph 1 for a developing country Member, including a least-developed 
country Member, which demonstrates particular difficulties in implementing the provisions of this 
Agreement. In considering such a request, the Council for Trade in Goods shall take into account 
the individual development, financial and trade needs ofthe Member in question. 
4. During the transition period, a Member shall not modify the terms of any TRIM which it notifies 
under paragraph 1 from those prevailing at the date of entry into force of the WTO Agreement so as 
to increase the degree of inconsistency with the provisions of Anicle 2. TRIMs introduced less than 
180 days before the date of entry into force ofthe WTO Agreement shall not benefit from the transitional 
arrangements provided in paragraph 2. 
5. Notwithstanding the provisions of Article 2, a Member, in order not to disadvantage established 
enterprises which are subject to a TRIM notified under paragraph 1, may apply during the transition 
period the same TRIM to a new investment (i) where the products of such investment are like products 
to those of the esublished enterprises, and (ii) where necessary to avoid distorting the conditions of 
competition between the new investment and the established enterprises. Any TRIM so applied to 
a new investment shall be notified to the Council for Trade in Goods. The terms of such a TRIM 
shall be equivalent in their competitive effect to those applicable to the established enterprises, and 
it shall be terminated at the same time. 
'In the case of TRIMs applied under discretionary authority, each specific application shall be notified. Information 
that would prejudice the legitimate commercial interests of particular enterprises need not be disclosed. 
Page 141 
Article 6 
Transparency 
1. Members reaffirm, with respect to TRIMs, their commitment to obligations on transparency 
and notification in Article X of GATT 1994, in the undertaking on "Notification" contained in the 
Understanding Regarding Notification, Consultation, Dispute Settlement and Surveillance adopted on 
28 November 1979 and in the Ministerial Decision on Notification Procedures adopted on 15 April 
1994. 
2. Each Member shall notify the Secretariat ofthe publications in which TRIMs may be found, 
including those applied by regional and local governments and authorities within their territories. 
3. Each Member shall accord sympathetic consideration to requests for information, and afford 
adequate opportunity for consultation, on any matter arising from this Agreement raised by another 
Member. In conformity with Article X of GATT 1994 no Member is required to disclose information 
the disclosure of which would impede law enforcement or otherwise be contrary to the public interest 
or would prejudice the legitimate commercial interests of particular enterprises, public or private. 
Article 7 
Committee on Trade-Related Investment Measures 
1. A Committee on Trade-Related Investment Measures (referred to in this Agreement as the 
"Committee") is hereby esublished, and shall be open to all Members. The Committee shall elect 
its own Chairman and Vice-Chairman, and shall meet not less than once a year and otherwise at the 
request of any Member. 
2. The Committee shall carry out responsibilities assigned to it by the Council for Trade in Goods 
and shall afford Members the opportunity to consult on any matters relating to the operation and 
implementation of this Agreement. 
3. The Committee shall monitor the operation and implementation of this Agreement and shall 
report thereon annually to the Council for Trade in Goods. 
Article 8 
Consultation and Dispute Settlement 
The provisions of Articles XXII and XXIII of GATT 1994, as elaborated and applied by the 
Dispute Settlement Undersunding, shall apply to consultations and the settlement of disputes under 
this Agreement. 
Article 9 
Review by the Council for Trade in Goods 
Not later than f\vt years after the date of entry into force ofthe WTO Agreement, the Council 
for Trade in Goods shall review the operation of this Agreement and, as appropriate, propose to the 
Ministerial Conference amendments to its text. In the course of this review, the Council for Trade 
Page 142 
in Goods shall consider whether the Agreement should be complemented with provisions on investment 
policy and competition policy. 
Page 143 
ANNEX 
Illustrative List 
1. TRIMs that are inconsistent with the obligation of national treatment provided for in paragraph 4 
of Article III of GATT 1994 include those which are mandatory or enforceable under domestic law 
or under administrative rulings, or compliance with which is necessary to obtain an advanuge, and 
which require: 
(a) . . the purchase or use by an enterprise of products of domestic origin or from any domestic 
source, whether specified in terms of particular products, in terms of volume or value 
of products, or in terms of a proportion of volume or value of its local production; 
or 
(b) that an enterprise's purchases or use of imported products be limited to an amount 
related to the volume or value of local products that it exports. 
2. TRIMs that are inconsistent with the obligation of general elimination of quantitative restrictions 
provided for in paragraph 1 of Article XI of GATT 1994 include those which are mandatory or 
enforceable under domestic law or under administrative rulings, or compliance with which is necessary 
to obtain an advantage, and which restrict: 
(a) the importation by an enterprise of products used in or related to its local production, 
generally or to an amount related to the volume or value of local production that it 
exports; 
(b> the importation by an enterprise of products used in or related to its local production 
by restricting its access to foreign exchange to an amount related to the foreign exchange 
inflows attributable to the enterprise; or 
(c) the exportation or sale for export by an enterprise of products, whether specified in 
terms of particular products, in terms of volume or value of products, or in terms of 
a proportion of volume or value of its local production. 
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Page 145 
AGREEMENT ON IMPLEMENTATION OF ARTICLE VI 
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
Members hereby agree as follows: 
PART I 
Article] 
Principles 
An anti-dumping measure shall be applied only under the circumstances provided for in Article VI 
of GATT 1994 and pursuant to investigations initiated1 and conducted in accordance with the provisions 
of this Agreement. The following provisions govern the application of Article VI of GATT 1994 in 
so far as action is taken under anti-dumping legislation or regulations. 
Article 2 
Determination of Dumping 
2.1 For the purpose of this Agreement, a-product is to be considered as being dumped, i.e 
introduced into the commerce of another country at less than its normal value, if the export price of 
the product exported from one country to another is less than the comparable price, in the ordinary 
course of trade, for the like product when destined for consumption in the exporting country. 
2.2 When there are no sales of the like product in the ordinary course of trade in the domestic 
market ofthe exporting country or when, because ofthe particular market situation or the low volume 
of the sales in the domestic market of the exporting country'2, such sales do not permit a proper 
comparison, the margin of dumping shall be determined by comparison with a comparable price of 
the like product when exported to an appropriate third country, provided that this price is representative, 
or with the cost of production in the country of origin plus a reasonable amount for administrative, 
selling and general costs and for profits. 
2.2.1 Sales of the like product in the domestic market of the exporting country or sales to 
a third country at prices below per unit (fixed and variable) costs of production plus 
administrative, selling and general costs may be treated as not being in the ordinary 
course of trade by reason of price and may be disregarded in determining normal value 
'The term 'initiated* as used in this Agreement means the procedural action by which a Member fofmally commences 
an investigation as provided in Article 5. 
'Sales of the like product destined for consumption in the domestic market of the exporting country shall normally be 
considered a sufficient quantity for the determination of the normal value if such sales constitute 5 per cent or more of the 
sales of the product under consideration to the importing Member, provided that a lower ratio should be acceptable where 
the evidence demonstrates that domestic sales at such lower ratio are nonetheless of sufficient magnitude to provide for a 
proper comparison. 
Page 146 
-»•>*> only if the authorities3 determine that such sales are made within an extended period 
of time4 in substantial quantities5 and are at prices which do not provide for the recovery 
of all costs within a reasonable period of time. If prices which are below per unit costs 
at the time of sale are above weighted average per unit costs for the period of 
investigation, such prices shall be considered to provide for recovery of costs within 
a reasonable period of time. 
2.2.1.1 For the purpose of paragraph 2, costs shall normally be calculated on 
the basis of records kept by the exporter or producer under 
investigation, provided that such records are in accordance with the 
generally accepted accounting principles ofthe exporting country and 
reasonably reflect the costs associated with the production and sale 
of the product under consideration. Authorities shall consider all 
available evidence on the proper allocation of costs, including that 
which is made available by the exporter or producer in the course of 
the investigation provided that such allocations have been historically 
utilized by the exporter or producer, in particular in relation to 
establishing appropriate amortization and depreciation periods and 
allowances for capital expenditures and other development costs. 
Unless already reflected in the cost allocations under this sub-paragraph, 
costs shall be adjusted appropriately for those non-recurring items of 
cost which benefit future and/or current production, or for 
circumstances in which costs during the period of investigation are 
affected by start-up operations.6 
For the purpose of paragraph 2. the amounts for administrative, selling and general 
costs and for profits shall be based on actual data pertaining to production and sales 
in the ordinary course of trade of the like product by the exporter or producer under 
investigation. When such amounts cannot be determined on this basis, the amounts 
may be determined on the basis of: 
( i ) the actual amounts incurred and realized by theexporter or producer in question 
in respect of production and sales in the domestic market ofthe country of 
origin of the same general category of products; 
'When in this Agreement the term "authorities" is used, u shall be interpreted as meaning authorities at an appropriate 
senior level. 
4The extended period of time should normal!) be one year but shall in no case be less than six months. 
*Sales below per unit costs are made in substantial quantities when the authorities establish that tue weighted average 
selling price of the transactions under consideration for the determination of the normal value is below the weighted average 
per unit costs, or that the volume of sales below per unit costs represents not less than 20 per cent ofthe volume sold in 
transactions under consideration for the determination of the normal value. 
The adjustment made for start-up operations shall reflect the costs at the end of the sun-up period or, if that period 
extends beyond the period of investigation, the most recent costs which can reasonably be taken into account by the authorities 
during the investigation. 
Page 147 
(ii) the weighted average of the actual amounts incurred and realized by other 
exporters or producers subject to investigation in respect of production and 
sales of the like product in the domestic market of the country of origin; 
(iii) any other reasonable method, provided that the amount for profit so esublished 
shall not exceed the profit normally realized by other exporters or producers 
on sales of products of the same general category in the domestic market of 
the country of origin. 
2.3 In cases where there is no export price or where it appears to the authorities concerned that 
the export price is unreliable because of association or a compensatory arrangement between the exporter 
and the importer or a third party, the export price may be constructed on the basis ofthe price at which 
the imported products are first resold to an independent buyer, or if the products are not resold to an 
independent buyer, or not resold in the condition as imported, on such reasonable basis as the authorities 
may determine. 
2.4 A fair comparison shall be made between the export price and the normal value. This comparison 
shall be made at the same level of trade, normally at the ex-factory level, and in respect of sales made 
at as nearly as possible the same time. Due allowance shall be made in each case, on its merits, for 
differences which affect price comparability, including differences in conditions and terms of sale, 
taxation, levels of trade, quantities, physical characteristics, and any other differences which are also 
demonstrated to affect price comparability.7 In the cases referred to in paragraph 3, allowances for 
costs, including duties and taxes, incurred between importation and resale, and for profits accruing, 
should also be made. If in these cases price comparability has been affected, the authorities shall 
establish the normal value at a level of trade equivalent to the level of trade ofthe constructed export 
price, or shall make due allowance as warranted under this paragraph. The authorities shall indicate 
to the parties in question what information is necessary to ensure a fair comparison and shall not impose 
an unreasonable burden of proof on those parties. 
2.4.1 When the comparison under paragraph 4 requires a conversion of currencies, such 
conversion should be made using the rate of exchange on the date of sale8, provided 
that when a sale of foreign currency on forward markets is directly linked to the export 
sale involved, the rate of exchange in the forward sale shall be used. Fluctuations 
in exchange rates shall be ignored and in an investigation the authorities shall allow 
exporters at least 60 days to have adjusted their export prices to reflect sustained 
movements in exchange rates during the period of investigation. 
2.4.2 Subject to the provisions governing fair comparison in paragraph 4, the existence of 
margins of dumping during the investigation phase shall normally be esublished on 
the basis of a comparison of a weighted average normal value with a weighted average 
of prices of all comparable export transactions or by a comparison of normal value 
and export prices on a transaction-to-transaction basis. A normal value esublished 
on a weighted average basis may be compared to prices of individual export transactions 
if the authorities find a pattern of export prices which differ significantly among different 
'It is understood that some of the above factors may overlap, and authorities shall ensure that they do not duplicate 
adjustments that have been already made under this provision. 
•Normally, the date of sale would be the date of contract, purchase order, order confirmation, or invoice, whichever 
establishes the material terms of sale. 
Page 148 
purchasers, regions or time periods, and if an explanation is provided as to why such 
differences cannot be uken into account appropriately by the use of a weighted 
average-to-weighted average or transaction-to-transaction comparison. 
2.5 In the case where products are not imported directly from the country of origin but are exported 
to the importing Member from an intermediate country, the price at which the products are sold from 
the country of export to the importing Member shall normally be compared with the comparable price 
in the country of export. However, comparison may be made with the price in the country of origin, 
if, for example, the products are merely transshipped through the country of export, or such products 
are not produced in the country of export, or there is no comparable price for them in the country 
of export. 
2.6 Throughout this Agreement the term "like product" ("produit similaire") shall be interpreted 
to mean a product which is identical, i.e. alike in all respects to the product under consideration, or 
in the absence of such a product, another product which, although not alike in all respects, has 
characteristics closely resembling those of the product under consideration. 
2.7 This Article is without prejudice to the second Supplementary Provision to paragraph 1 of 
Article VI in Annex I to GATT 1994. 
Article 3 
Determination of Injury9 
3.1 A determination of injury for purposes of Article VI of GATT 1994 shall be based on positive 
evidence and involve an objective examination of both (a) the volume ofthe dumped imports and the 
effect ofthe dumped imports on prices in the domestic market for like products, and (b) the consequent 
impact of these imports on domestic producers of such products. 
3.2 With regard to the volume ofthe dumped imports, the investigating authorities shall consider 
whether there has been a significant increase in dumped imports, either in absolute terms or relative 
to production or consumption in the importing Member. With regard to the effect of the dumped 
imports on prices, the investigating authorities shall consider whether there has been a significant price 
undercutting by the dumped imports as compared with the price of a like product of the importing 
Member, or whether the effect of such imports is otherwise to depress prices to a significant degree 
or prevent price increases, which otherwise would have occurred, to a significant degree. No one 
or several of these factors can necessarily give decisive guidance. 
3.3 Where imports of a product from more than one country are simultaneously subject to 
anti-dumping investigations, the investigating authorities may cumulatively assess the effects of such 
imports only if they determine that (a) the margin of dumping established in relation to the imports 
from each country is more than de minimis as defined in paragraph 8 of Article 5 and the volume of 
imports from each country is not negligible and (b) a cumulative assessment ofthe effects ofthe imports 
is appropriate in light ofthe conditions of competition between the imported products and the conditions 
of competition between the imported products and the like domestic product. 
•Under this Agreement the term 'injury" shall, unless otherwise specified, be uken to mean material injury to a domestic 
industry, threat of material injury to a domestic industry or material retardation of the establishment of such an industry 
and shall be interpreted in accordance with the provisions of this Article. 
Page 149 
3.4 The examination ofthe impact ofthe dumped imports on the domestic industry concerned shall 
include an evaluation of all relevant economic factors and indices having a bearing on the sute of the 
industry, including actual and potential decline in sales, profits, output, market share, productivity, 
return on investments, or utilization of capacity; factors affecting domestic prices; the magnitude 
ofthe margin of dumping; actual and potential negative effects on cash flow, inventories, employment, 
wages, growth, ability to raise capiul or investments. This list is not exhaustive, nor can one or several 
of these factors necessarily give decisive guidance. 
3.5 It must be demonstrated that the dumped imports are, through the effects of dumping, as set 
forth in paragraphs 2 and 4, causing injury within the meaning of this Agreement. The demonstration 
of a causal relationship between the dumped imports and the injury to the domestic industry shall be 
based on an examination of all relevant evidence before the authorities. The authorities shall also 
examine any known factors other than the dumped imports which at the same time are injuring the 
domestic industry, and the injuries caused by these other factors must not be attributed to the dumped 
imports. Factors which may be relevant in this respect include, inter alia, the volume and prices 
of imports not sold at dumping prices, contraction in demand or changes in the patterns of consumption, 
trade restrictive practices of and competition between the foreign and domestic producers. developments 
in technology and the export performance and productivity ofthe domestic industry. 
3.6 The effect of the dumped imports shall be assessed in relation to the domestic production of 
the like product when available data permit the separate identification ofthat production on the basis 
of such criteria as the production process, producers' sales and profits. If such separate identification 
ofthat production is not possible, the effects ofthe dumped imports shall be assessed by the examination 
of the production of the narrowest group or range of products, which includes the like product, for 
which the necessary information can be provided. 
3.7 A determination of a threat of material injury shall be based on facts and not merely on allegation, 
conjecture or remote possibility. The change in circumstances which would create a situation in which 
the dumping would cause injury must be clearly foreseen and imminent.10 In making a determination 
regarding the existence of a threat of material injury, the authorities should consider, inter alia, such 
factors as: 
(i) a significant rate of increase of dumped imports into the domestic market indicating 
the likelihood of substantially* increased importation; 
(ii) sufficient freely disposable, or an imminent, substantial increase in. capacity of the 
exporter indicating the likelihood of substantially increased dumped exports to the 
importing Member's market, uking into account the availability of other export markets 
to absorb any additional exports; 
(iii) whether imports are entering at prices that will have a significant depressing or 
suppressing effect on domestic prices, and would likely increase demand for further 
imports; and 
(iv) inventories of the product being investigated. 
No one of these factors by itself can necessarily give decisive guidance but the totality ofthe factors 
l0One example, though not an exclusive one. is that there is convincing reason to believe that there will be, in the near 
future, substantially increased importation of the product at dumped prices. 
Page 150 
considered must lead to the conclusion that further dumped exports are imminent and that, unless 
protective action is taken, material injury would occur. 
3.8 With respect to cases where injury is threatened by dumped imports, the application of 
anti-dumping measures shall be considered and decided with special care. 
Article 4 
Definition of Domestic Industry 
4.1 For the purposes of this Agreement, the term "domestic industry" shall be interpreted as referring 
to the domestic producers as a whole of the like products or to those of them whose collective output 
ofthe products constitutes a major proportion ofthe toul domestic production of those products, except 
that 
(i) when producers are related" to the exporters or importers or are themselves importers 
ofthe allegedly dumped product, the term "domestic industry" may be interpreted as 
referring to the rest of the producers; 
(ii) in exceptional circumstances the territory of a Member may. for the production in 
question, be divided into two or more competitive markets and the producers within 
each market may be regarded as a separate industry if (a) the producers within such 
market sell all or almost all of their production ofthe product in question in that market, 
and (b) the demand in that market is not to any substantial degree supplied by producers 
of the product in question located elsewhere in the territory. In such circumstances, 
injury may be found to exist even where a major portion ofthe total domestic industry 
is not injured, provided there is a concentration of dumped imports into such an isolated 
market and provided further that the dumped imports are causing injury to the producers 
of all or almost all of the production within such market. 
4 2 When the domestic industry has been interpreted as referring to the producers in a certain area, 
i.e a market as defined in paragraph l(ii). anti-dumping duties shall be levied12 only on the products 
in question consigned for final consumption to that area. When the constitutional law ofthe importing 
Member does not permit the levying of anti-dumping duties on such a basis, the importing Member 
may levy the anti-dumping duties without limitation only if (a) the exporters shall have been given 
an opportunity to cease exporting at dumped prices to the area concerned or otherwise give assurances 
pursuant to Article 8 and adequate assurances in this regard have not been promptly given, and (b) such 
duties cannot be levied only on products of specific producers which supply the area in question. 
4.3 Where two or more countries have reached under the provisions of paragraph 8(a) of 
Article XXIV of GATT 1994 such a level of integration that they have the characteristics of a single, 
unified market, the industry in the entire area of integration shall be taken to be the domestic industry 
"For the purpose of this paragraph, producers shall be deemed to be related to exporters or importers only if (a) one 
of them directly or indirectly controls the other; or (h) both of them are directly or indirectly controlled by a third person; 
or (c) together they directly or indirectly control a third person, provided that there are grounds for believing or suspecting 
that the effect ofthe relationship is such as to cause the producer concerned to behave differently from non-related producers. 
For the purpose of this paragraph, one shall be deemed to control another when the former is legally or operationally in 
a position to exercise restraint or direction over the latter. 
"As used in this Agreement "levy" shall mean the definitive or final legal assessment or collection of a duty or tax. 
Page 151 
referred to in paragraph 1. 
4.4 The provisions of paragraph 6 of Article 3 shall be applicable to this Article. 
Article 5 
Initiation and Subsequent Investigation 
5.1 Except as provided for in paragraph 6, an investigation to determine the existence, degree and 
effect of any alleged dumping shall be initiated upon a written application by or on behalf of the domestic 
industry. 
5.2 An application under paragraph 1 shall include evidence of (a) dumping, (b) injury within the 
meaning of Article VI of GATT 1994 as interpreted by this Agreement and (c) a causal link between 
the dumped imports and the alleged injury. Simple assertion, unsubstantiated by relevant evidence, 
cannot be considered sufficient to meet the requirements of this paragraph. The application shall contain 
such information as is reasonably available to the applicant on the following: 
(i) the identity of the applicant and a description of the volume and value of the domestic 
production of the like product by the applicant. Where a written application is made 
on behalf of the domestic industry, the application shall identify the industry on behalf 
of which the application is made by a list of all known domestic producers of the like 
product (or associations of domestic producers of the like product) and, to the extent 
possible, a description of the .volume and value of domestic production of the like 
product accounted for by such producers; 
(ii) a complete description of the allegedly dumped product, the names of the country or 
countries of origin or export in question, the identity of each known exporter or foreign 
producer and a list of known persons importing the product in question; 
(iii) information on prices at which the product in question is sold when destined for 
consumption in the domestic markets of the country or countries of origin or export 
(or, where appropriate, information on the prices at which the product is sold from 
the country or countries of origin or export to a third country or countries, or on the 
constructed value of the product) and information on export prices or, where appropriate, 
on the prices at which the product is first resold to an independent buyer in the territory 
of the importing Member; 
(iv) information on the evolution ofthe volume ofthe allegedly dumped imports, the effect 
of these imports on prices ofthe like product in the domestic market and the consequent 
impact of the imports on the domestic industry, as demonstrated by relevant factors 
and indices having a bearing on the state ofthe domestic industry, such as those listed 
in paragraphs 2 and 4 of Article 3. 
5.3 The authorities shall examine the accuracy and adequacy of the evidence provided in the 
application to determine whether there is sufficient evidence to justify the initiation of an investigation. 
5.4 An investigation shall not be initiated pursuant to paragraph 1 unless the authorities have 
determined, on the basis of an examination ofthe degree of support for, or opposition to, the application 
Page 152 
expressed13 .by domestic producers ofthe like product, that the application has been made by or on 
behalf of the domestic industry.14 The application shall be considered to have been made "by or on 
behalf of the domestic industry" if it is suppqrted by those domestic producers whose collective output 
constitutes more than 50 per cent of the total production of the like product produced by that portion 
of the domestic industry expressing either support for or opposition to the application. However, no 
investigation shall be initiated when domestic producers expressly supporting the application account 
for less than 25 per cent of toul production of the like product produced by the domestic industry. 
5.5 The authorities shall avoid, unless a decision has been made to initiate an investigation, any 
publicizing ofthe application for the initiation of an investigation. However, after receipt of a properly 
documented application and before proceeding to initiate an investigation, the authorities shall notify' 
the government of the exporting Member concerned. 
5.6 If, in special circumstances, the authorities concerned decide to initiate an investigation without 
having received a written application by or on behalf of a domestic industry for the initiation of such 
investigation, they shall proceed only if they have sufficient evidence of dumping, injury and a causal 
link, as described in paragraph 2, to justify the initiation of an investigation. 
5.7 The evidence of both dumping and injury shall be considered simultaneously (a) in the decision 
whether or not to initiate an investigation, and (b) thereafter, during the course of the investigation, 
starting on a date not later than the earliest date on which in accordance with the provisions of this 
Agreement provisional measures may be applied. 
5.8 An application under paragraph 1 shall be rejected and an investigation shall be terminated 
promptly as soon as the authorities concerned are satisfied that there is not sufficient evidence of either 
dumping or of injury to justify' proceeding with the case. There shall be immediate termination in 
cases where the authorities determine that the margin of dumping is de minimis, or that the volume 
of dumped imports, actual or potential, or the injury, is negligible. The margin of dumping shall be 
considered to be de minimis if this margin is less than 2 per cent, expressed as a percentage of the 
export price. The volume of dumped imports shall normally be regarded as negligible if the volume 
of dumped imports from a particular country is found to account for less than 3 per cent of imports 
ofthe like product in the importing Member, unless countries which individually account for less than 
3 per cent of the imports of the like product in the importing Member collectively account.for more 
than 7 per cent of imports of the like product in the importing Member. 
5.9 An anti-dumping proceeding shall not hinder the procedures of customs clearance. 
5.10 Investigations shall, except in special circumstances, be concluded within one year, and in no 
case more than 18 months, after their initiation. 
,JIn the case of fragmented industries involving an exceptionally large number of producers, authorities may determine 
support and opposition by using statistically valid sampling techniques. 
"Members are aware that in the territory of certain Members employees of domestic producers of the like product or 
representatives of those employees may make or support an application for an investigation under paragraph 1. 
Page 153 
Article 6 
Evidence 
6.1 - All interested parties in an anti-dumping investigation shall be given notice ofthe information 
which the authorities require and ample opportunity to present in writing all evidence which they consider 
relevant in respect of the investigation in question. 
6.1.1 Exporters or foreign producers receiving questionnaires used in an anti-dumping 
investigation shall be given at least 30 days for reply.15 Due consideration should be 
given to any request for an extension of the 30-day period and, upon cause shown, 
such an-extension should be granted whenever practicable. 
6.1.2 Subject to the requirement to protect confidential information, evidence presented in 
writing by one interested party shall be made available promptly to other interested 
parties participating in the investigation. 
6.1.3 As soon as an investigation has been initiated, the authorities shall provide the full 
text ofthe written application received under paragraph 1 of Article 5 to the known 
exporters16 and to the authorities ofthe exporting Member and shall make it available, 
upon request, to other interested parties involved. Due regard shall be paid to the 
requirement for the protection of confidential information, as provided for in 
paragraph 5. 
6.2 Throughout the anti-dumping investigation all interested parties shall have a full opportunity 
for the defence of their interests. To this end, the authorities shall, on request, provide opportunities 
for all interested parties to meet those parties with adverse interests, so that opposing views may be 
presented and rebuttal arguments offered. Provision of such opportunities must take account of the 
need to preserve confidentiality and of the convenience to the parties. There shall be no obligation 
on any party to attend a meeting, and failure to do so shall not be prejudicial to that party's case. 
Interested parties shall also have the right, on justification, to present other information orally. 
6.3 Oral information provided under paragraph 2 shall be taken into account by the authorities 
only in so far as it is subsequently reproduced in writing and made available to other interested parties, 
as provided for in subparagraph 1.2. 
6.4 The authorities shall whenever practicable provide timely opportunities for all interested parties 
to see all information that is relevant to the presentation of their cases, that is not confidential as defined 
in paragraph 5, and that is used by the authorities in an anti-dumping investigation, and to prepare 
presentations on the basis of this information. 
6.5 Any information which is by nature confidential (for example, because its disclosure would 
be of significant competitive advanuge to a competitor or because its disclosure would have a 
"As a general rule, the time-limit for exporters shall be counted from the date of receipt of the questionnaire, which 
for this purpose shall be deemed to have been received one week from the date on which it was sent to the respondent or 
transmitted to the appropriate diplomatic representative ofthe exporting Member or, in the case of a separate customs territory 
Member of the WTO, an official represenutive of the exporting territory. 
'*lt being understood that, where the number of exporters involved is particularly high, the full text of the written application 
should instead be provided only to the authorities of the exporting Member or to the relevant trade association. 
Page 154 
significantly adverse effect upon a person supplying the information or upon a person from whom that 
person acquired the information), or which is provided on a confidential basis by parties to an 
investigation shall, upon good cause shown, be treated as such by the authorities. Such information 
shall not be disclosed without specific permission of the party submitting it.17 
6.5.1 The authorities shall require interested parties providing confidential information to 
furnish non-confidential summaries thereof. These summaries shall be in sufficient 
deuil to permit a reasonable undersunding of the substance of the information submitted 
in confidence. In exceptional circumstances, such parties may indicate that such 
information is not susceptible of summary. In such exceptional circumstances, a 
statement of the reasons why summarization is not possible must be provided. 
6.5.2 If the authorities find that a request for confidentiality is not warranted and if the 
supplier of the information is either unwilling to make the information public or to 
authorize its disclosure in generalized or summary form, the authorities may disregard 
• such information unless it can.be demonstrated to their satisfaction from appropriate 
sources that the information is correct.18 
6.6 Except iii circumstances provided for in paragraph 8, the authorities shall during the course 
of an investigation satisfy themselves as to the accuracy ofthe information supplied by interested parties 
upon which their findings are based. 
6.7 In order to verify information provided or to obtain further details, the authorities may carry 
out investigations in the territory of other Members as required, provided they obtain the agreement 
of the firms concerned and notify the representatives of the government ofthe Member in question, 
and unless that Member objects to the investigation. The procedures described in Annex I shall apply 
to investigations carried out in the territory of other Members. Subject to the requirement to protect 
confidential information, the authorities shall make the results of any such investigations available, 
or shall provide disclosure thereof pursuant to paragraph 9, to the firms to which they pertain and may 
make such results available to the applicants. 
6.8 In cases in which any interested party refuses access to, or otherwise does not provide, necessary 
information within a reasonable period or significantly impedes the investigation, preliminary and final 
determinations, affirmative or negative, may be made on the basis ofthe facts available. The provisions 
of Annex II shall be observed in the application of this paragraph. 
6.9 The authorities shall, before a final determination is made, inform all interested parties ofthe 
essential facts under consideration which form the basis for the decision whether to apply definitive 
measures. Such disclosure should take place in sufficient time for the parties to defend their interests. 
6.10 The authorities shall, as a rule, determine an individual margin of dumping for each known 
exporter or producer concerned of the product under investigation. In cases where the number of 
exporters, producers, importers or types of products involved is so large as to make such a determination 
impracticable, the authorities may limit their examination either to a reasonable number of interested 
parties or products by using samples which are statistically valid on the basis of information available 
"Members are aware that in the territory of certain Members disclosure pursuant to a narrowly-drawn protective order 
may be required. 
"Members agree that requests for confidentiality should not be arbitrarily rejected. 
Page 155 
to the authorities at the time of the selection, or to the largest percentage of the volume of the exports 
from the country in question which can reasonably be investigated. 
6.10.1 Any selection of exporters, producers, importers or types of products made under this 
paragraph shall preferably be chosen in consulution with and with the consent of the 
exporters, producers or importers concerned. 
6.10.2 In cases where the authorities have limited their examination, as provided for in this 
paragraph, they shall nevertheless determine an individual margin of dumping for any 
exporter or producer not initially selected who submits the necessary information in 
time for that information to be considered during the course ofthe investigation, except 
where the number of exporters or producers is so large that individual examinations 
would be unduly burdensome to the authorities and prevent the timely completion of 
the investigation. Voluntary responses shall not be discouraged. 
6.11 For the purposes of this Agreement, "interested parties" shall include: 
(i) an exporter or foreign producer or the importer of a product subject to investigation, 
or a trade or business association a majority ofthe members of which are producers, 
exporters or importers of such product; 
(ii) . the government of the exporting Member; and 
(iii) a producer of the like product in the importing Member or a trade and business 
association a majority of the members of which produce the like product in the territory 
of the importing Member. 
This list shall not preclude Members from allowing domestic or foreign parties other than those 
mentioned above to be included as interested parties. 
6.12 The authorities shall provide opportunities for industrial users of the product under investigation, 
and for representative consumer organizations in cases where the product is commonly sold at the retail 
level, to provide information which is relevant to the investigation regarding dumping, injury and 
causality. 
6.13 The authorities shall take due account of any difficulties experienced by interested parties, in 
particular small companies, in supplying information requested, and shall provide any assistance 
practicable. 
6.14 The procedures set out above are not intended to prevent the authorities of a Member from 
proceeding expeditiously with regard to initiating an investigation, reaching preliminary or final 
determinations, whether affirmative or negative, or from applying provisional or final measures, in 
accordance with relevant provisions of this Agreement. 
Page 156 
. . Article 7 
Provisional Measures 
7.1 Provisional measures may be applied only if: 
(i) an investigation has been initiated in accordance with the provisions of Article 5, a 
public notice has been given to that effect and interested parties have been given 
adequate opportunities to submit information and make comments; 
(ii) a preliminary affirmative determination has been made of dumping and consequent 
injury to a domestic industry; and 
(iii) the authorities concerned judge such measures necessary to prevent injury being caused 
during the investigation. 
7.2 Provisional measures may take the form of a provisional duty or, preferably, a security - by 
cash deposit or bond - equal to the amount ofthe anti-dumping duty provisionally estimated, being 
not greater than the provisionally estimated margin of dumping. Withholding of appraisement is an 
appropriate provisional measure, provided that the normal duty and the estimated amount of the 
anti-dumping duty be indicated and as long as the withholding of appraisement is subject to the same 
conditions'as other provisional measures. 
7.3 Provisional measures shall not be applied sooner than 60 days from the date of initiation of 
the investigation. 
7.4 The application of provisional measures shall be limited to as short a period as possible, not 
exceeding four months or, on decision of the authorities concerned, upon request by exporters 
representing a significant percentage ofthe trade involved, to a period not exceeding six months. When 
authorities, in the course of an investigation, examine whether a duty lower than the margin of dumping 
would be sufficient to remove injury, these periods may be six and nine months, respectively. 
7.5 The relevant provisions of Article 9 shall be followed in the application of provisional measures. 
Article 8 
Price Undertakings 
8.1 Proceedings may" be suspended or terminated without the imposition of provisional measures 
or anti-dumping duties upon receipt of satisfactory voluntary undertakings from any exporter to revise 
its prices or to cease exports to the area in question at dumped prices so that the authorities are satisfied 
that the injurious effect of the dumping is eliminated. Price increases under such undertakings shall 
not be higher than necessary to eliminate the margin of dumping. It is desirable that the price increases 
be less than the margin of dumping if such increases would be adequate to remove the injury to the 
domestic industry. 
"The word "may* shall not be interpreted to allow the simultaneous continuation of proceedings with the implemenution 
of price undertakings except as provided in paragraph 4. 
Page 157 
8.2 Price undertakings shall not be sought or accepted from exporters unless the authorities of the 
importing Member have made a preliminary affirmative determination of dumping and injury caused 
by such dumping. 
8.3 Undertakings offered need not be accepted if the authorities consider their acceptance impractical, 
for example, if the number of actual or potential exporters is too great, or for other reasons, including 
reasons of general policy. Should the case arise and where practicable, the authorities shall provide 
to the exporter the reasons which have led them to consider acceptance of an undertaking as 
inappropriate, and shall, to the extent possible, give the exporter an opportunity,to make comments 
thereon. 
8.4 If an undertaking is accepted, the investigation of dumping and injury shall nevertheless be 
completed if the exporter so desires or the authorities so decide. In such a case, if a negative 
determination of dumping or injury is made, the undertaking shall automatically lapse, except in cases 
where such a determination is due in large part to the existence of a price undertaking. In such cases. 
the authorities may require that an undertaking be maintained for a reasonable period consistent with 
the provisions of this Agreement. In the event that an affirmative determination of dumping and injury 
is made, the undertaking shall continue consistent with its terms and the provisions of this Agreement. 
8.5 Price undertakings may be suggested by the authorities ofthe importing Member, but no exporter 
shall be forced to enter into such undertakings. The fact that exporters do not offer such undertakings, 
or do not accept an invitation to do so, shall in no way prejudice the consideration ofthe case. However, 
the authorities are free to determine that a threat of injur}' is more likely to be realized if the dumped 
imports continue. 
8.6 Authorities of an importing Member may require any exporter from whom an undertaking 
has been accepted to provide periodically information relevant to the fulfilment of such an undertaking 
and to permit verification of pertinent data. In case of violation of an undertaking, the authorities of 
the importing Member may take, under this Agreement in conformity with its provisions, expeditious 
actions which may constitute immediate application of provisional measures using the best information 
available. In such cases, definitive duties may be levied in accordance with this Agreement on products 
entered for consumption not more than 90 days before the application of such provisional measures, 
except that any such retroactive assessment shall not apply to imports entered before the violation of 
the undertaking. 
Article 9 
Imposition and Collection of Anti-Dumping Duties 
9.1 The decision whether or not to impose an anti-dumping duty in cases where all requirements 
for the imposition have been fulfilled, and the decision whether the amount ofthe anti-dumping duty 
to be imposed shall be the full margin of dumping or less, are decisions to be made by the authorities 
of the importing Member. It is desirable that the imposition be permissive in the territory of all 
Members, and that the duty be less than the margin if such lesser duty would be adequate to remove 
the injury to the domestic industry. 
9.2 When an anti-dumping duty is imposed in respect of any product, such anti-dumping duty shall 
be collected in the appropriate amounts in each case, on a non-discriminatory basis on imports of such 
product from all sources found to be dumped and causing injury, except as to imports from those sources 
Page 158 
from which price undertakings under the terms of this Agreement have been accepted. The authorities 
shall name the supplier or suppliers of the product concerned. If, however, several suppliers from 
the same country are involved, and it is impracticable to name all these suppliers, the authorities may 
name the supplying country concerned. If several suppliers from more than one country are involved, 
the authorities may name either all the suppliers involved, or, if this is impracticable, all the supplying 
countries involved. 
9.3 The amount of the anti-dumping duty shall not exceed the margin of dumping as esublished 
under Article 2. 
9.3.1 When the amount of the anti-dumping duty is assessed on a retrospective basis, the 
determination ofthe final liability for payment of anti-dumping duties shall take place 
as soon as possible, normally within 12 months, and in no case more than 18 months, 
after the date on which a request for a final assessment of the amount of the 
anti-dumping duty has been made.20 Any refund shall be made promptly and normally 
in not more than 90 days following the determination of final liability made pursuant 
to this sub-paragraph. In any case, where a refund is not made within 90 days, the 
authorities shall provide an explanation if so requested. 
9.3.2 When the amount of the anti-dumping duty is assessed on a prospective basis, provision 
shall be made for a prompt refund, upon request, of any duty paid in excess of the 
margin of dumping. A refund of any such duty paid in excess of the actual margin 
.of dumping shall normally take place within 12 months, and in no case more than 
18 months, after the date on which a request for a refund, duly supported by evidence, 
has been made by an importer of the product subject to the anti-dumping duty. The 
refund authorized should normally be made within 90 days of the above-noted decision. 
9.3.3 In determining whether and to what extent a reimbursement should be made when the 
export price is constructed in accordance with paragraph 3 of Article 2, authorities 
should uke account of any change in normal value, any change in costs incurred between 
importation and resale, and any movement in the resale price which is duly reflected 
in subsequent selling prices, and should calculate the export price with no deduction 
for the amount of anti-dumping duties paid when conclusive evidence of the above 
is provided. 
9.4 When the authorities have limited their examination in accordance with the second sentence 
of paragraph 10 of Article 6. any anti-dumping duty applied to imports from exporters or producers 
not included in the examination shall not exceed: 
(i) the weighted average margin of dumping esublished with respect to the selected 
exporters or producers or. 
(ii) where the liability for payment of anti-dumping duties is calculated on the basis of 
a prospective normal value, the difference between the weighted average normal value 
of the selected exporters or producers and the export prices of exporters or producers 
not individually examined. 
"It is understood that the observance of the time-limits mentioned in this subparagraph and in subparagraph 3.2 may 
not be possible where the product in question is subject to judicial review proceedings. 
Page 159 
provided that the authorities shall disregard for the purpose of this paragraph any zero and de minimis 
margins and margins esublished under the circumstances referred to in paragraph 8 of Article 6. The 
authorities shall apply individual duties or normal values to imports from any exporter or producer 
not included in the examination who has provided the necessary information during the course of the 
investigation, as provided for in subparagraph 10.2 of Article 6. 
9.5 If a product is subject to anti-dumping duties in an importing Member, the authorities shall 
promptly carry out a review for the purpose of determining individual margins of dumping for any 
exporters or producers in the exporting country in question who have not exported the product to the 
importing Member during the period of investigation, provided that these exporters or producers can 
show that they are not related to any of the exporters or producers in the exporting country who are 
subject to the anti-dumping duties on the product. Such a review shall be initiated and carried out 
on an accelerated basis, compared to normal duty assessment and review proceedings in the importing 
Member. No anti-dumping duties shall be levied on imports from such exporters or producers while 
the review is being carried out. The authorities may, however, withhold appraisement and/or request 
guarantees to ensure that, should such a review result in a determination of dumping in respect of such 
producers or exporters, anti-dumping duties can be levied retroactively to the date of the initiation 
ofthe review. 
Article 10 
Retroactivity 
10.1 Provisional measures and anti-dumping duties shall only be applied to products.which enter 
for consumption after the time when the decision taken under paragraph 1 of Article 7 and paragraph 1 
of Article 9, respectively, enters into force, subject to the exceptions set out in this Article. 
10.2 Where a final determination of injury (but not of a threat thereof or of a material retardation 
ofthe establishment of an industry) is made or, in the case of a final determination of a threat of injury, 
where the effect of the dumped imports would, in the absence ofthe provisional measures, have led 
to a determination of injury, anti-dumping duties may be levied retroactively for the period for which 
provisional measures, if any, have been applied. 
10.3 If the definitive anti-dumping duty is higher than the provisional duty paid or payable, or the 
amount estimated for the purpose ofthe security, the difference shall not be collected. If the definitive 
duty is lower than the provisional duty paid or payable, or the amount estimated for the purpose of 
the security, the difference shall be reimbursed or the duty recalculated, as the case may be. 
10.4 Except as provided in paragraph 2, where a determination of threat of injury or material 
retardation is made (but no injury has yet occurred) a definitive anti-dumping duty may be imposed 
only from the date of the determination of threat of injury or material retardation, and any cash deposit 
made during the period of the application of provisional measures shall be refunded and any bonds 
released in an expeditious manner. 
10.5 Where a final determination is negative, any cash deposit made during the period of the 
application of provisional measures shall be refunded and any bonds released in an expeditious manner. 
10.6 A definitive anti-dumping duty may be levied on products which were entered for consumption 
not more than 90 days prior to the date of application of provisional measures, when the authorities 
Page 160 
determine for the dumped product in question that: 
(i) there is a history of dumping which caused injury or that the importer was, or should 
have been, aware that the exporter practises dumping and that such dumping would 
cause injury, and 
(ii) the injury is caused by massive dumped imports of a product in a relatively short time 
which in light of the timing and the volume of the dumped imports and other 
circumstances (such as a rapid build-up of inventories ofthe imported product) is likely 
to seriously undermine the remedial effect of the definitive anti-dumping duty to be 
applied, provided that the importers concerned have been given an opportunity to 
comment. 
10.7 The authorities may, after initiating an investigation, uke such measures as the withholding 
of appraisement or assessment as may be necessary to collect anti-dumping duties retroactively, as 
provided for in paragraph 6, once they have sufficient evidence that the conditions set forth in that 
paragraph are satisfied. 
10.8 No duties shall be levied retroactively pursuant to paragraph 6 on products entered for 
consumption prior to the date of initiation of the investigation. 
Article 11 
Duration and Review of Anti-Dumping Duties and Price Undertakings 
11.1 An anti-dumping duty shall remain in force only as long as and to the extent necessary to 
counteract dumping which is causing injury. 
11.2 The authorities shall review the need for the continued imposition ofthe duty, where warranted. 
on their own initiative or, provided that a reasonable period of time has elapsed since the imposition 
of the definitive anti-dumping duty, upon request by any interested party which submits positive 
information substantiating the need for a review.21 Interested parties shall have the right to request 
the authorities to examine whether the continued imposition ofthe duty is necessary to offset dumping, 
whether the injury would be likely to continue or recur if the duty were removed or varied, or both. 
If, as a result ofthe review under this paragraph, the authorities determine that the anti-dumping duty-
is no longer warranted, it shall be terminated immediately. 
11.3 Notwithstanding the provisions of paragraphs 1 and 2, any definitive anti-dumping duty shall 
be terminated on a date not later than five years from its imposition (or from the date ofthe most recent 
review under paragraph 2 if that review has covered both dumping and injury, or under this paragraph), 
unless the authorities determine, in a review initiated before that date on their own initiative or upon 
a duly substantiated request made by or on behalf ofthe domestic industry within a reasonable period 
of time prior to that date, that the expiry ofthe duty would be likely to lead to continuation or recurrence 
*'A determination of final liability for payment of anti-dumping duties, as provided for in paragraph 3 of Article 9. does 
not by itself constitute a review within the meaning of this Article. 
Page 161 
of dumping and injury.22 The duty may remain in force pending the outcome of such a review. 
11.4 The provisions of Article 6 regarding evidence and procedure shall apply to any review carried 
out under this Article. Any such review shall be carried out expeditiously and shall normally be 
concluded within 12 months of the date of initiation of the review. 
11.5 The provisions of this Article shall apply mutatis mutandis to price undertakings accepted under 
Article 8. 
Article 12 
Public Notice and Explanation of Determinations 
12.1 When the authorities are satisfied that there is sufficient evidence to justify the initiation of 
an anti-dumping investigation pursuant to Article 5, the Member or Members the products of which 
are subject to such investigation and other interested parties known to the investigating authorities to 
have an interest therein shall be notified and a public notice shall be given. 
12.1.1 A public notice of the initiation of an investigation shall contain, or otherwise make 
available through a separate report1', adequate information on the following: 
(i) the nameof the exporting country' or countries and the product involved; 
(ii) the date of initiation of the investigation; 
(iii) the basis on which dumping is alleged in the application; 
(iv) a summary of the factors on which the allegation of injury is based; 
(v) the address to which representations by interested parties should be directed; 
(vi) the time-limits allowed to interested parties for making their views known. 
12.2 Public notice shall be given of any preliminary or final determination, whether affirmative 
or negative, of any decision to accept an undertaking pursuant to Article 8, of the termination of such 
an undertaking, and of the termination of a definitive anti-dumping duty. Each such notice shall set 
forth, or otherwise make available through a separate report, in sufficient detail the findings and 
conclusions reached on all issues of fact and law considered material by the investigating authorities. 
All such notices and reports shall be forwarded to the Member or Members the products of which 
are subject to such determination or undertaking and to other interested parties known to have an interest 
therein. 
aWhen the amount ofthe anti-dumping duty is assessed on a retrospective basis, a finding in the most recent assessment 
proceeding under subparagraph 3.1 of Anicle 9 that no duty is to be levied shall not by itself require the authorities to terminate 
the definitive duty. 
"Where authorities provide information and explanations under the provisions of this Article in a separate report, they 
shall ensure that such report is readily available to the public. 
Page 162 
12.2.1 A public notice of the imposition of provisional measures shall set forth, or otherwise 
make available through a separate report, sufficiently detailed explanations for the 
preliminary determinations on dumping and injury and shall refer to the matters of 
fact and law which have led to arguments being accepted or rejected. Such a notice 
or report shall, due regard being paid to the requirement for the protection of 
confidential information, contain in particular: 
(i) the names of the suppliers, or when this is impracticable, the supplying countries 
involved; 
(ii) a description of the product which is sufficient for customs purposes; 
(iii) the margins of dumping established and a full explanation of the reasons for 
the methodology used in the esublishment and comparison ofthe export price 
and the normal value under Article 2; 
(iv) considerations relevant to the injury determination as set out in Article 3; 
(v) the main reasons leading to the determination. 
i2.2.2 A public notice of conclusion or suspension of an investigation in the case of an 
affirma:ive determination providing for the imposition of a definitive duty or the 
acceptance of a price undertaking shall contain, or otherwise make available through 
a separate report, all relevant information on the matters of fact and law and reasons 
which have led to the imposition of final measures or the acceptance of a price 
undertaking, due regard being paid to the requirement for the protection of confidential 
information. In particular, the notice or report shall contain the information described 
in subparagraph 2.1. as well as the reasons for the acceptance or rejection of relevant 
arguments or claims made by the exporters and importers, and the basis for any decision 
made under subparagraph 10.2 of Article 6. 
12.2.3 A public notice of the termination or suspension of an investigation following the 
acceptance of an undertaking pursuant to Anicle 8 shall include, or otherwise make 
available through a separate report, the non-confidential part of this undertaking. 
12.3 The provisions of this Article shall apply mutatis mutandis to the initiation and completion 
of reviews pursuant to Article 11 and to decisions under Article 10 to apply duties retroactively. 
Article 13 
Judicial Review 
Each Member whose national legislation contains provisions on anti-dumping measures shall 
maintain judicial, arbitral or administrative tribunals or procedures for the purpose, inter alia, of the 
prompt review of administrative actions relating to final determinations and reviews of determinations 
within the meaning of Article 11. Such tribunals or procedures shall be independent ofthe authorities 
responsible for the determination or review in question. 
Page 163 
Article 14 
Anti-Dumping Action on Behalf of a Third Country 
14.1 An application for anti-dumping action on behalf of a third country shall be made by the 
authorities of the third country requesting action. 
14.2 Such an application shall be supported by price information to show that the imports are being 
dumped and by detailed information to show that the alleged dumping is causing injury to the domestic 
industry concerned in the third country. The government ofthe third country shall afford all assistance 
to the authorities ofthe importing country to obuin any further information which the latter may require. 
14.3 In considering such an application, the authorities ofthe importing country shall consider the 
effects of the alleged dumping on the industry concerned as a whole in the third country; that is to 
say. the injury shall not be assessed in relation only to the effect ofthe alleged dumping on the industry's 
exports to the importing country or even on the industry's toul exports. 
14.4 The decision whether or not to proceed with a case shall rest with the importing country. If 
the importing country decides that it is prepared to take action, the initiation of the approach to the 
Council for Trade in Goods seeking its approval for such action shall rest with the importing country. 
Article 15 
Developing Country Members 
It is recognized that special regard must be given by developed country Members to the special 
situation of developing country Members when considering the application of anti-dumping measures 
under this Agreement. Possibilities of constructive remedies provided for by this Agreement shall 
be explored before applying anti-dumping duties where they would affect the essential interests of 
developing country Members. 
PART II 
Article 16 
Committee on Anti-Dumping Practices 
16.1 There is hereby esublished a Committee on Anti-Dumping Practices (referred to in this 
Agreement as the "Committee") composed of represenutives from each ofthe Members. The Committee 
shall elect its own Chairman and shall meet not less than twice a year and otherwise as envisaged by 
relevant provisions of this Agreement at the request of any Member. The Committee shall carry out 
responsibilities as assigned to it under this Agreement or by the Members and it shall afford Members 
the opportunity of consulting on any matters relating to the operation ofthe Agreement or the furtherance 
of its objectives. The WTO Secreuriat shall act as the secreuriat to the Committee. 
16.2 The Committee may set up subsidiary bodies as appropriate. 
Page 164 
16.3 In carrying out their functions, the Committee and any s.;>sidiary bodies may consult with 
and seek information from any source they deem appropriate. However, before the Committee or 
a subsidiary body seeks such information from a source within the jurisdiction of a Member, it shall 
inform the Member involved. It shall obuin the consent ofthe Member and any firm to be consulted. 
16.4 Members shall report without delay to the Committee all preliminary or final anti-dumping 
actions uken. Such reports shall be available in the Secreuriat for inspection by other Members. 
Members shall also submit, on a semi-annual basis, reports of any anti-dumping actions uken within 
the preceding six months. The semi-annual reports shall be submitted on an agreed standard form. 
16.5 Each Member shall notify the Committee, (a) which of its authorities are competent to initiate 
and conduct investigations referred to in Article 5 and (b) its domestic procedures governing the initiation 
and conduct of such investigations. 
Article 17 
Consultation and Dispute Settlement 
17.1 Except as otherwise provided herein, the Dispute Settlement Understanding is applicable to 
consultations and the settlement of disputes under this Agreement. 
17.2 Each Member shall afford sympathetic consideration to, and shall afford adequate opportunity 
for consultation regarding, representations made by another Member with respect to any matter affecting 
the operation of this Agreement. 
17.3 If any Member considers that any benefit accruing to it, directly or indirectly, under this 
Agreement is being nullified or impaired, or that the achievement of any objective is being impeded, 
by another Member or Members, it may, with a view to reaching a mutually satisfactory resolution 
ofthe matter, request in writing consultations with the Member or Members in question. Each Member 
shall afford sympathetic consideration to any request from another Member for consultation. 
17.4 If the Member that requested consulutions considers that the consulutions pursuant to paragraph 3 
have failed to achieve a mutually agreed solution, and if final action has been taken by the administering 
authorities of the importing Member to levy definitive anti-dumping duties or to accept price 
undertakings, it may refer the matter to the Dispute Settlement Body ("DSB"). When a provisional 
measure has a significant impact and the Member that requested consultations considers that the measure 
was uken contrary to the provisions of paragraph 1 of Article 7, that Member may also refer such 
matter to the DSB. 
17.5 The DSB shall, at the request ofthe complaining party, establish a panel to examine the matter 
based upon: 
(i) a written sutement ofthe Member making the request indicating how a benefit accruing 
to it. directly or indirectly, under this Agreement has been nullified or impaired, or 
that the achieving of the objectives of the Agreement is being impeded, and 
(ii) the facts made available in conformity with appropriate domestic procedures to the 
authorities of the importing Member. 
Page 165 
17.6 In examining the matter referred to in paragraph 5: 
(i) in its assessment of the facts of the matter, the panel shall determine whether the 
authorities' establishment ofthe facts was proper and whether their evaluation of those 
facts was unbiased and objective. If the establishment ofthe facts was proper and the 
evaluation was unbiased and objective, even though the panel might have reached a 
different conclusion, the evaluation shall not be overturned; 
(ii) the panel shall interpret the relevant provisions of the Agreement in accordance with 
customary rules of interpreution of public international law. Where the panel finds 
that a relevant provision of the Agreement admits of more than one permissible 
interpretation, the panel shall find the authorities' measure to be in conformity with 
the Agreement if it rests upon one of those permissible interpretations. 
17.7 Confidential information provided to the panel shall not be disclosed without formal authorization 
from the person, body or authority providing such information. Where such information is requested 
from the panel but release of such information by the panel is not authorized, a non-confidential summary 
of the information, authorized by the person, body or authority providing the information, shall be 
provided. 
PART III 
Article 18 
Final Provisions 
18.1 No specific action against dumping of exports from another Member can be taken except in 
accordance with the provisions of GATT 1994. as interpreted by this Agreement.24 
18.2 Reservations may not be entered in respect of any ofthe provisions of this Agreement without 
the consent of the other Members. 
18.3 Subject to subparagraphs 3.1 and 3.2. the provisions of this Agreement shall apply to 
investigations, and reviews of existing measures, initiated pursuant to applications which have been 
made on or after the date of entry' into force for a Member of the WTO Agreement. 
18.3.1 With respect to the calculation of margins of dumping in refund procedures under 
paragraph 3 of Article 9, the rules used in the most recent determination or review 
of dumping shall apply. 
18.3.2 For the purposes of paragraph 3 of Article 11, existing anti-dumping measures shall 
be deemed to be imposed on a date not later than the date of entry into force for a 
Member of the WTO Agreement, except in cases in which the domestic legislation 
of a Member in force on that date already included a clause of the type provided for 
in that paragraph. 
24This is not intended to preclude action under other relevant provisions of GATT 1994, as appropriate. 
Page 166 
18.4 Each Member shall uke all necessary steps, of a general or particular character, to ensure, 
not later than the date of entry into force of the WTO Agreement for it, the conformity of its laws, 
regulations and administrative procedures with the provisions of this Agreement as they may apply 
for the Member in question. 
18.5 Each Member shall inform the Committee of any changes in its laws and regulations relevant 
to this Agreement and in the administration of such laws and regulations. 
18.6 The Committee shall review annually the implemenution and operation of this Agreement taking 
into account the objectives thereof. The Committee shall inform annually the Council for Trade in 
Goods of developments during the period covered by such reviews. 
18.7 The Annexes to this Agreement constitute an integral part thereof. 
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ANNEX I 
PROCEDURES FOR ON-THE-SPOT INVESTIGATIONS PURSUANT 
TO PARAGRAPH 7 OF ARTICLE 6 
1. Upon initiation of an investigation, the authorities ofthe exporting Member and the firms known 
to be concerned should be informed of the intention to carry out on-the-spot investigations. 
2. If in exceptional circumstances it is intended to include non-governmental experts in the 
investigating team, the firms and the authorities ofthe exporting Member should be so informed. Such 
non-governmental experts should be subject to effective sanctions for breach of confidentiality-
requirements. 
3. It should be standard practice to obtain explicit agreement of the firms concemed in the exporting 
Member before the visit is finally scheduled. 
4. As soon as the agreement of the firms concerned has been obuined, the investigating authorities 
should notify the authorities of the exporting Member of the names and addresses of the firms to be 
visited and the dates agreed. 
5 Sufficient advance notice should be given to the firms in question before the visit is made. 
6 Visits to explain the questionnaire should only be made at the request of an exporting firm. 
Such a visit may only be made if (a) the authorities ofthe importing Member notify the representatives 
of the Member in question and (b) the latter do not object to the visit. 
7 As the main purpose of the on-the-spot investigation is to verify information provided or to 
obtain further details, it should be carried out after the response to the questionnaire has been received 
unless the firm agrees to the contrary and the government of the exporting Member is informed by 
the investigating authorities ofthe anticipated visit and does not object to it; further, it should be standard 
practice prior to the visit to advise the firms concerned ofthe general nature ofthe information to be 
verified and of any further information which needs to be provided, though this should not preclude 
requests to be made on the spot for further details to be provided in the light of information obtained. 
8 Enquiries or questions put by the authorities or firms ofthe exporting Members and essential 
to a successful on-the-spot investigation should, whenever possible, be answered before the visit is 
made 
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ANNEXn 
BEST INFORMATION AVAILABLE IN TERMS OF PARAGRAPH 8 OF ARTICLE 6 
1. As soon as possible after the initiation of the investigation, the investigating authorities should 
specify in detail the information required from any interested party, and the manner in which that 
information should be structured by the interested party in its response. The authorities should also 
ensure that the party is aware that if information is not supplied within a reasonable time, the authorities 
will be free to make determinations on the basis of the facts available, including those contained in 
the application for the initiation of the investigation by the domestic industry. 
2. The authorities may also request that an interested party provide its response in a particular 
.medium (e.g. computer upe) or computer language. Where such a request is made, the authorities 
should consider the reasonable ability of the interested party to respond in the preferred medium or 
computer language, and should not request the party to use for its response a computer system other 
than that used by the party. The authority should not maintain a request for a computerized response 
if the interested party does not maintain computerized accounts and if presenting the response as requested 
would result in an unreasonable extra burden on the interested party, e.g. it would entail unreasonable 
additional cost and trouble. The authorities should not maintain a request for a response in a particular 
medium or computer language if the interested party does not maintain its computerized accounts in 
such medium or computer language and if presenting the response as requested would result in an 
unreasonable extra burden on the interested party, e.g. it would entail unreasonable additional cost 
and trouble. 
3. All information which is verifiable, which is appropriately submitted so that it can be used 
in the investigation without undue difficulties, which is supplied in a timely fashion, and. where 
applicable, which is supplied in a medium or computer language requested by the authorities, should 
be taken into account when determinations are made. If a party does not respond in the preferred 
medium or computer language but the authorities find that the circumstances set out in paragraph 2 
have been satisfied, the failure to respond in the preferred medium or computer language should not 
be considered to significantly impede the investigation. 
4 Where the authorities do not have the ability to process information if provided in a particular 
medium (e.g. computer upe), the information should be supplied in the form of written material or 
any other form acceptable to the authorities. ' 
5. Even though the information provided may not be ideal in all respects, this should not justify' 
the authorities from disregarding it, provided the interested party has acted to the best of its ability. 
6 If evidence or information is not accepted, the supplying party should be informed forthwith 
of the reasons therefor, and should have an opportunity to provide further explanations within a 
reasonable period, due account being taken of the time-limits of the investigation. If the explanations 
are considered by the authorities as not being satisfactory, the reasons for the rejection of such evidence 
or information should be given in any published determinations. 
7. If the authorities have to base their findings, including those with respect to normal value, on 
information from a secondary source, including the information supplied in the application for the 
initiation of the investigation, they should do so with special circumspection. In such cases, the 
authorities should, where practicable, check the information from other independent sources at their 
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disposal, such as published price lists, official import statistics and customs returns, and from the 
information obuined from other interested parties during the investigation. It is clear, however, that 
if an interested party does not cooperate and thus relevant information is being withheld from the 
authorities, this situation could lead to a result which is less favourable to the party than if the party-
did cooperate. 
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Page 171 
AGREEMENT ON IMPLEMENTATION OF ARTICLE VII 
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
GENERAL INTRODUCTORY COMMENTARY 
1. The primary basis for customs value under this Agreement is "transaction value" as defined 
in Article 1. Article 1 is to be read together with Article 8 which provides, inter alia, for adjustments 
to the price actually paid or payable in cases where certain specific elements which are considered 
to form a part of the value for customs purposes are incurred by the buyer but are not included in the 
price actually paid or payable for the imported goods. Article 8 also provides for the inclusion in the 
transaction value of certain considerations which may pass from the buyer to the seller in the form 
of specified goods or services rather than in the form of money. Articles 2 through 7 provide methods 
of determining the customs value whenever it cannot be determined under the provisions of Article 1. 
2. Where the customs value cannot be determined under the provisions of Article 1 there should 
normally be a process of consulution between the customs administration and importer with a view 
to arriving at a basis of value under the provisions of Article 2 or 3. It may occur, for example, that 
the importer has information about the customs value of identical or similar imported goods which 
is not immediately available to the customs administration in the port of importation. On the other 
hand, the customs administration may have information about the customs value of identical or similar 
imported goods which is not readily available to the importer. A process of consultation between the 
two parties will enable information to be exchanged, subject to the requirements of commercial 
confidentiality, with a view to determining a proper basis of value for customs purposes. 
3. Articles 5 and 6 provide two bases for determining the customs value where it cannot be 
determined on the basis ofthe transaction value ofthe imported goods or of identical or similar imported 
goods. Under paragraph 1 of Article 5 the customs value is determined on the basis of the price at 
which the goods are sold in the condition as imported to an unrelated buyer in the country of importation. 
The importer also has the right to have goods which are further processed after importation valued 
under the provisions of Article 5 if the importer so requests. Under Article 6 the customs value is 
determined on the basis of the computed value. Both these methods present certain difficulties and 
because of this the importer is given the right, under the provisions of Article 4, to choose the order 
of application of the two methods. 
4. Anicle 7 sets out how to determine the customs value in cases where it cannot be determined 
under the provisions of any of the preceding Articles. 
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Members, 
Having regard to the Multilateral Trade Negotiations; 
. Desiring to further the objectives of GATT 1994 and to secure additional benefits for the 
international trade of developing countries; 
Recognizing the importance of the provisions of Anicle VII of GATT 1994 and desiring to 
elaborate rules for their application in order to provide greater uniformity and certainty in their 
implemenution; 
Recognizing the need for a fair, uniform and neutral system for the valuation of goods for customs 
purposes that precludes the use of arbitrary or fictitious customs values; 
Recognizing that the basis for valuation of goods for customs purposes should, to the greatest 
extent possible, be the transaction value of the goods being valued; 
Recognizing that customs value should be based on simple and equiuble criteria consistent 
with commercial practices and that valuation procedures should be of general application without 
distinction between sources of supply; 
Recognizing that valuation procedures should not be used to combat dumping; 
Hereby agree as follows: 
PARTI 
RULES ON CUSTOMS VALUATION 
Article 1 
1. The customs value of imported goods shall be the transaction value, that is the price actually 
paid or payable for the goods when sold for export to the country of importation adjusted in accordance 
with the provisions of Article 8, provided: 
(a) that there are no restrictions as to the disposition or use ofthe goods by the buyer other 
than restrictions which: 
(ij are imposed or required by law or by the public authorities in the country of 
importation; 
(ii) limit the geographical area in which the goods may be resold; or 
(iii) do not substantially affect the value of the goods; 
(b) that the sale or price is not subject to some condition or consideration for which a value 
cannot be determined with respect to the goods being valued; 
(c) that no part of the proceeds of any subsequent resale, disposal or use of the goods by 
the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment 
can be made in accordance with the provisions of Article 8; and 
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(d) that the buyer and seller are not related, or where the buyer and seller are related, 
that the transaction value is accepuble for customs purposes under the provisions of 
paragraph 2. 
2. (a) In determining whether the transaction value is accepuble for the purposes of 
paragraph 1, the fact that the buyer and the seller are related within the meaning of 
Article 15 shall not in itself be grounds for regarding the transaction value as 
unaccepuble. In such case the circumstances surrounding the sale shall be examined 
and the transaction value shall be accepted provided that the relationship did not 
influence the price. If, in the light of information provided by the importer or 
otherwise, the customs administration has grounds for considering that the relationship 
influenced the price, it shall communicate its grounds to the importer and the importer 
shall be given a reasonable opportunity to respond. If the importer so requests, the 
communication of the grounds shall be in writing. 
(b) In a sale between related persons, the transaction value shall be accepted and the goods 
valued in accordance with the provisions of paragraph 1 whenever the importer 
demonstrates that such value closely approximates to one of the following occurring 
at or about the same time: 
(i) the transaction value in sales to unrelated buyers of identical or similar goods 
for export to the same country of importation; 
(ii) the customs value of identical or similar goods as determined under the 
provisions of Article 5; 
(iii) the customs value of identical or similar goods as determined under the 
provisions of Article 6; 
In applying the foregoing tests, due account shall be taken of demonstrated 
differences in commercial levels, quantity levels, the elements enumerated in Article 8 
and costs incurred by the seller in sales in which the seller and the buyer are not related 
that are not incurred by the seller in sales in which the seller and the buyer are related. 
(c) The tests set forth in paragraph 2(b) are to be used at the initiative of the importer 
and only for comparison purposes. Substitute values may not be established under 
the provisions of paragraph 2(b). 
Article 2 
(a) If the customs value of the imported goods cannot be determined under the provisions 
of Article 1, the customs value shall be the transaction value of identical goods sold 
for export to the same country of importation and exported at or about the same time 
as the goods being valued. 
(b) In applying this Article, the transaction value of identical goods in a sale at the same 
commercial level and in substantially the same quantity as the goods being valued shall 
be used to determine the customs value. Where no such sale is found, the transaction 
value of identical goods sold at a different commercial level and/or in different 
quantities, adjusted to uke account of differences attribuuble to commercial level and/or 
to quantity, shall be used, provided that such adjustments can be made on the basis 
of demonstrated evidence which clearly establishes the reasonableness and accuracy 
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of the adjustment, whether the adjustment leads to an increase or a decrease in the 
value. 
2. Where the costs and charges referred to in paragraph 2 of Article 8 are included in the transaction 
value, an adjustment shall be made to uke account of significant differences in such costs and charges 
between the imported goods and the identical goods in question arising from differences in distances 
and modes of transport. 
3. If, in applying this Article, more than one transaction value of identical goods is found, the 
lowest such value shall be used to determine the customs value of the imported goods. 
Article 3 
1. (a) If the customs value of the imported goods cannot be determined under the provisions 
of Articles 1 and 2, the customs value shall be the transaction value of similar goods 
sold for export to the same country of importation and exported at or about the same 
time as the goods being valued. 
(b) In applying this Article, the transaction value of similar goods in a sale at the same 
commercial level and in substantially the same quantity as the goods being valued shall 
be usee to determine the customs value. Where no such sale is found, the transaction 
value of similar goods sold at a different commercial level and/or in different quantities, 
adjusted to take account of differences attributable to commercial level and/or to 
quantity, shall be used, provided that such adjustments can be made on the basis of 
demonstrated evidence which clearly establishes the reasonableness and accuracy of 
the adjustment, whether the adjustment leads to an increase or a decrease in the value. 
2. Where the costs and charges referred to in paragraph 2 of Article 8 are included in the transaction 
value, an adjustment shall be made to take account of significant differences in such costs and charges 
between the imported goods and the similar goods in question arising from differences in distances 
and modes of transport. 
3 If. in applying this Article, more than one transaction value of similar goods is found, the lowest 
such value shall be used to determine the customs value ofthe imported goods. 
Article 4 
If the customs value ofthe imported goods cannot be determined under the provisions of Articles 
1. 2 and 3. the customs value shall be determined under the provisions of Article 5 or, when the customs 
value cannot be determined under that Anicle. under the provisions of Article 6 except that, at the 
request of the importer, the order of application of Articles 5 and 6 shall be reversed. 
Article 5 
(a) If the imported goods or identical or similar imported goods are sold in the country 
of importation in the condition as imported, the customs value ofthe imported goods 
under the provisions of this Article shall be based on the unit price at which the imported 
goods or identical or similar imported goods are so sold in the greatest aggregate 
quantity, at or about the time ofthe importation ofthe goods being valued, to persons 
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who are not related to the persons from whom they buy such goods, subject to 
deductions for the following: 
(i) either the commissions usually paid or agreed to be paid or the additions usually 
made for profit and general expenses in connection with sales in such country 
of imported goods of the same class or kind; 
(ii) the usual costs of transport and insurance and associated costs incurred within 
the country of importation; 
(iii) where appropriate, the costs and charges referred to in paragraph 2 of Article 8; 
and 
(iv) the customs duties and other national taxes payable in the country of importation 
by reason of the importation or sale of the goods. 
(b) If neither the imported goods nor identical nor similar imported goods are sold at or 
about the time of importation ofthe goods being valued, the customs value shall, subject 
otherwise to the provisions of paragraph 1(a), be based on the unit price at which the 
imported goods or identical or similar imported goods are sold in the country of 
importation in the condition as imported at the earliest date after the importation of 
the goods being valued but before the expiration of 90 days after such importation. 
2 If neither the imported goods nor identical nor similar imported goods are sold in the country 
of importation in.the condition as imported, then, if the importer so requests, the customs value shall 
be based on the unit price at which the imported goods, after further processing, are sold in the greatest 
aggregate quantity to persons in the country of importation who are not related to the persons from 
whom they buy such goods, due allowance being made for the value added by such processing and 
the deductions provided for in paragraph 1(a). 
Article 6 
1. The customs value of imported goods under the provisions of this Article shall be based on 
a computed value Computed value shall consist ofthe sum of: 
( a ) the cost or value of materials and fabrication or other processing employed in producing 
the imported goods; 
(b) an amount for profit and general expenses equal to that usually reflected in sales of 
goods of the same class or kind as the goods being valued which are made by producers 
in the country of exportation for export to the country of importation; 
(c ) the cost or value of all other expenses necessary to reflect the valuation option chosen 
by the Member under paragraphe of Article 8. 
2. No Member may require or compel any person not resident in its own territory to produce 
for examination, or to allow access to, any account or other record for the purposes of determining 
a computed value. However, information supplied by the producer ofthe goods for the purposes of 
determining the customs value under the provisions of this Article may be verified in another country 
by the authorities of the country of importation with the agreement of the producer and provided they 
give sufficient advance notice to the government ofthe country in question and the latter does not object 
to the investigation. 
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Article 7 
1. If the customs value of the imported goods cannot be determined under the provisions of 
Articles 1 through 6, inclusive, the customs value shall be determined using reasonable means consistent 
with the principles and general provisions, of this Agreement and of Article VII of GATT 1994 and 
on the basis of dau available in the country of importation. . 
2. No customs value shall be determined under the provisions of this Article on the basis of. 
(a) the selling price in the country of importation of goods produced in such country; 
(b) a system which provides for the acceptance for customs purposes of the higher pf two 
alternative values; 
(c) the price of goods on the domestic market of the country of exportation; 
(d) the cost of production other than computed values which have been determined for 
identical or similar goods in accordance with the provisions of Article 6; 
(e) the price of the goods for export to a country other than the country of importation; 
(f) minimum customs values; or 
(g) arbitrary or fictitious values. 
3. If the importer so requests, the importer shall be informed in writing of the customs value 
determined under the provisions of this Article and the method used to determine such value. 
Article 8 
1. In determining the customs value under the provisions of Article 1, there shall be added to 
the price actually paid or payable for the imported goods: 
(a) the following, to the extent that they are incurred by the buyer but are not included 
in the price actually paid or payable for the goods: 
(i) commissions and brokerage, except buying commissions; 
(ii) the cost of containers which are treated as being one for customs purposes with 
the goods in question; 
(iii) the cost of packing whether for labour or materials; 
(b) the value, apportioned as appropriate, of the following goods and services where 
supplied directly or indirectly by the buyer free of charge or at reduced cost for use 
in connection with the production and sale for export of the imported goods, to the 
extent that such value has not been included in the price actually paid or payable: 
(i) materials, components, parts and similar items incorporated in the imported 
goods; 
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(ii) tools, dies, moulds and similar items used in the production of the imported 
goods; 
(iii) materials consumed in the production of the imported goods; 
(iv) engineering, development, artwork, design work, and plans and sketches 
undertaken elsewhere than in the country of importation and necessary for the 
production of the imported goods; 
(c) royalties and licence fees related to the goods being valued that the buyer must pay. 
either directly or indirectly, as a condition of sale of the goods being valued, to the 
extent that such royalties and fees are not included in the price actually paid or payable; 
(d) the value of any part of the proceeds of any subsequent resale, disposal or use of the 
imported goods that accrues directly or indirectly to the seller. 
2. In framing its legislation, each Member shall provide for the inclusion in or the exclusion from 
the customs value, in whole or in part, of the following: 
(a) the cost of transport of the imported goods to the port or place of importation; 
(b) loading, unloading and handling charges associated with the transport of the imported 
goods to the port or place of importation; and 
(c) the cost of insurance. 
3. Additions to the price actually paid or payable shall be made under this Article only on the 
basis of objective and quantifiable data. 
4. No additions shall be made to the price actually paid or payable in determining the customs 
value except as provided in this Article. 
Article 9 
1. Where the conversion of currency is necessary for the determination of the customs value, 
the rate of exchange to be used shall be that duly published by the competent authorities ofthe country 
of importation concerned and shall reflect as effectively as possible, in respect ofthe period covered 
by each such document of publication, the current value of such currency in commercial transactions 
in terms of the currency of the country of importation. 
2. The conversion rate to be used shall be that in effect at the time of exportation or the time 
of importation, as provided by each Member. 
Article 10 
All information which is by nature confidential or which is provided on a confidential basis 
for the purposes of customs valuation shall be treated as strictly confidential by the authorities concerned 
who shall not disclose it without the specific permission of the person or government providing such 
information, except to the extent that it may be required to be disclosed in the context of judicial 
proceedings. 
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Article 11 
1. The legislation of each Member shall provide in regard to a determination of customs value 
for the right of appeal, without penalty, by the importer or any other person liable for the payment 
of the duty. 
•2. An initial right of appeal without penalty may be to an authority within the customs administration 
or to an independent body, but the legislation of each Member shall provide for the right of appeal 
without penalty to a judicial authority. 
3. Notice ofthe decision on appeal shall be given to the appellant and the reasons for such decision 
shall be provided in writing. The appellant shall also be informed of any rights of further appeal. 
Article 12 
Laws, regulations, judicial decisions and administrative rulings of general application giving 
effect to this Agreement shall be published in conformity with Article X of GATT 1994 by the country 
of importation concerned. 
Article 13 
If, in the course of determining the customs value of imported goods, it becomes necessary 
to delay the final determination of such customs value, the importer of the goods shall nevertheless 
be able to withdraw them from customs if, where so required, the importer provides sufficient guarantee 
in the form of a surety, a deposit or some other appropriate instrument, covering the ultimate payment 
of customs duties for which the goods may be liable. The legislation of each Member shall make 
provisions for such circumstances. 
Article 14 
The notes at Annex I to this Agreement form an integral part of this Agreement and the Articles 
of this Agreement are to be read and applied in conjunction with their respective notes. Annexes II 
and III also form an integral part of this Agreement. 
Article 15 
In this Agreement: 
(a) "customs value of imported goods" means the value of goods for the purposes of levying 
ad valorem duties of customs on imported goods; 
(b) "country of importation" means country or customs territory of importation; and 
(c) "produced" includes grown, manufactured and mined. 
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2. In this Agreement: 
(a) "identical goods" means goods which are the same in all respects, including physical 
characteristics, quality and repuution. Minor differences in appearance would not 
preclude goods otherwise conforming to the definition from being regarded as identical ; 
(b) "similar goods" means goods which, although not alike in all respects, have like 
characteristics and like component materials which enable them to perform the same 
functions and to be commercially interchangeable. The quality of the goods, their 
reputation and the existence of a trademark are among the factors to be considered 
' in determining whether goods are similar; 
(c) the terms "identical goods" and "similar goods" do not include, as the case may be, 
goods which incorporate or reflect engineering, development, artwork, design work, 
and plans and sketches for which no adjustment has been made under paragraph l(b)(iv) 
of Article 8 because such elements were undertaken in the country of importation; 
• . (d) goods shall not be regarded as "identical goods" or "similar goods" unless they were 
produced in the same country as the goods being valued; 
(e) goods produced by a different person shall be taken into account only when there are 
no identical goods or similar goods, as the case may be, produced by the same person 
as the goods being valued. 
3. In this Agreement "goods of the same class or kind" means goods which fall within a group 
or range of goods produced by a particular industry or industry sector, and includes identical or similar 
goods. 
4. For the purposes of this Agreement, persons shall bé deemed to be related only if: 
(a) they are officers or directors of one another's businesses; 
(b) they are legally recognized partners in business; 
(c) they are employer and employee; 
(d) any person directly or indirectly owns, controls or holds 5 per cent or more of the 
outstanding voting stock or shares of both of them; 
<e) one of them directly or indirectly controls the other; 
(f) both of them are directly or indirectly controlled by a third person; 
(g) together they directly or indirectly control a third person; or 
(h) they are members of the same family. 
5. Persons who are associated in business with one another in that one is the sole agent, sole 
distributor or sole concessionaire, however described, of the other shall be deemed to be related for 
the purposes of this Agreement if they fall within the criteria of paragraph 4. 
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Article 16 
Upon written request, the importer shall have the right to an explanation in writing from the 
customs administration of the country of imporution as to how the customs value of the importer's 
goods was determined. 
Article 17 
Nothing in this Agreement shall be construed as restricting or calling into question the rights 
of customs administrations to satisfy themselves as to the truth or accuracy of any statement, document 
or declaration presented for customs valuation purposes. 
PART II 
ADMINISTRATION, CONSULTATIONS AND DISPUTE SETTLEMENT 
Article 18 
Institutions 
1. There is hereby established a Committee on Customs Valuation (referred to in this Agreement 
as "the Committee") composed of representatives from each ofthe Members. The Committee shall 
elect its own Chairman and shall normally meet once a year, or as is otherwise envisaged by the relevant 
provisions of this Agreement, for the purpose of affording Members the opportunity to consult on matters 
relating to the administration of the customs valuation system by any Member as it might affect the 
operation of this Agreement or the furtherance of its objectives and carrying out such other 
responsibilities as may be assigned to it by the Members. The WTO Secreuriat shall act as the secreuriat 
to the Committee. 
2. There shall be established a Technical Committee on Customs Valuation (referred to in this 
Agreement as "the Technical Committee") under the auspices ofthe Customs Co-operation Council 
(referred to in this Agreement as "the CCC"), which shall carry out the responsibilities described in 
Annex II to this Agreement and shall operate in accordance with the rules of procedure contained therein. 
Article 19 
Consultations and Dispute Settlement 
1. Except as otherwise provided herein, the Dispute Settlement Understanding is applicable to 
consultations and the settlement of disputes under this Agreement. 
2. If any Member considers that any benefit accruing to it, directly or indirectly, under this 
Agreement is being nullified or impaired, or that the achievement of any objective of this Agreement 
is being impeded, as a result of the actions of another Member or of other Members, it may, with 
a view to reaching a mutually satisfactory solution of this matter, request consultations with the Member 
or Members in question. Each Member shall afford sympathetic consideration to any request from 
another Member for consultations. 
Page 181 
3. The Technical Committee shall provide, upon request, advice and assistance to Members engaged 
in consulutions. 
*...'.•• 
4. At the request 6f a party to the dispute, or on its own initiative, a panel established to examine 
a dispute relating to the provisions of this Agreement may request the Technical Committee to carry 
out an examination of any questions requiring technical consideration. The panel shall determine the 
terms of reference ofthe Technical Committee for the particular dispute and set a time period for receipt 
of the report of the Technical Committee. The panel shall uke into consideration the report of the 
Technical Committee. In the event that the Technical Committee is unable to reach consensus on a 
matter referred to it pursuant to this paragraph, the panel should afford the parties to the dispute an 
opportunity to present their views on the matter to the panel. 
5. Confidential information provided to the panel shall not be disclosed without formal authorizanon 
from the person, body or authority providing such information. Where such information is requested 
from the panel but release of such information by the panel is not authorized, a non-confidential summary 
of this information, authorized by the person, body or authority providing the information, shall be 
provided. 
PART III 
SPECIAL AND DIFFERENTIAL TREATMENT 
Article 20 
1. Developing country Members not party to the Agreement on Implementation of Article VII 
of the General Agreement on Tariffs and Trade done on 12 April 1979 may delay application of the 
provisions of this Agreement for a period not exceeding five years from the date of entry into force 
of the WTO Agreement for such Members. Developing country Members who choose to delay 
application of this Agreement shall notify the Director-General ofthe WTO accordingly. 
2. In addition to paragraph 1. developing country Members not party to the Agreement on 
Implementation of Anicle VII ofthe General Agreement on Tariffs and Trade done on 12 April 1979 
may delay application of paragraph 2(b)(iii) of Article 1 and Article 6 for a period not exceeding three 
years following their application of all other provisions of this Agreement. Developing country Members 
that choose to delay application ofthe provisions specified in this paragraph shall notify the Director-
General of the WTO accordingly. 
3. Developed country Members shall furnish, on mutually agreed terms, technical assistance to 
developing country Members that so request. On this basis developed country Members shall draw-
up programmes of technical assistance which may include, inter alia, training of personnel, assistance 
in preparing implementation measures, access to sources of information regarding customs valuation 
methodology, and advice on the application of the provisions of this Agreement. 
Page 182 
PART IV 
FINAL PROVISIONS 
Article 21 
Reservations 
Reservations may not be entered in respect of any ofthe provisions of this Agreement without 
the consent of the other Members. 
Article 22 
National Legislation 
1. Each Member shall ensure, not later than the date of application of the provisions of this 
Agreement for it. the conformity of its laws, regulations and administrative procedures with the 
provisions of this Agreement. 
2. Each Member shall inform the Committee of any changes in its laws and regulations relevant 
to this Agreement and in the administration of such laws and regulations. 
Article 23 
Review 
The Committee shall review annually die implemenution and operation of this Agreement taking 
into account the objectives thereof. The Committee shall annually inform the Council for Trade in 
Goods of developments during the period covered by such reviews. 
Article 24 
Secretariat 
This Agreement shall be serviced by the WTO Secretariat except in regard to those 
responsibilities specifically assigned to the Technical Committee, which will be serviced by the CCC 
Secretariat. 
Page 183 
ANNEX I 
INTERPRETATIVE NOTES 
General Note 
Sequential Application of Valuation Methods 
1. Articles 1 through 7 define how the customs value of imported goods is to be determined under 
the provisions of this Agreement. The methods of valuation are set out in a sequential order of 
application. The primary method for customs valuation is defined in Article 1 and imported goods 
are to be valued in accordance with the provisions of this Article whenever the conditions prescribed 
therein are fulfilled. 
2. Where the customs value cannot be determined under the provisions of Article 1, it is to be. 
determined by proceeding sequentially through the succeeding Articles to the first such Article under 
which the customs value can be determined. Except as provided in Article 4, it is only when the customs 
value cannot be determined under the provisions of a particular Article that the provisions ofthe next 
Anicle in the sequence can be used. 
3. If the importer does not request that the order of Articles 5 and 6 be reversed, the normal order 
of the sequence is to. be followed. If the importer does so request but it then proves impossible to 
determine the customs value under the provisions of Article 6, the customs value is to be determined 
under the provisions of Article 5, if it can be so determined. 
4. * Where the customs value cannot be determined under the provisions of Articles 1 through 6 
it is to be determined under the provisions of Article 7. 
Use of Generally Accepted Accounting Principles 
1. "Generally accepted accounting principles" refers to the recognized consensus or substantial 
authoritative support within a country at a particular time as to which economic resources and obligations 
should be recorded as assets and liabilities, which changes in assets and liabilities should be recorded, 
how the assets and liabilities and changes in them should be measured, what information should be 
disclosed and how it should be disclosed, and which financial statements should be prepared. These 
standards may be broad guidelines of general application as well as detailed practices and procedures. 
2. For the purposes of this Agreement, the customs administration of each Member shall utilize 
information prepared in a manner consistent with generally accepted accounting principles in the country 
which is appropriate for the Article in question. For example, the determination of usual profit and 
general expenses under the provisions of Article 5 would be carried out utilizing information prepared 
in a manner consistent with generally accepted accounting principles of the country of importation. 
On the other hand, the determination of usual profit and general expenses under the provisions of 
Article 6 would be carried out utilizing information prepared in a manner consistent with generally 
accepted accounting principles ofthe country of production. As a further example, the determination 
of an element provided for in paragraph l(b)(ii) of Article 8 undertaken in the country of importation 
would be carried put utilizing information in a manner consistent with the generally accepted accounting 
principles ofthat country. 
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Note to Article 1 
Price Actually Paid or Payable 
1. The price actually paid or payable is the toul payment made or to be made by the buyer to 
or for the benefit ofthe seller for the imported goods. The payment need not necessarily uke the form 
of a transfer of money. Payment may be made by way of letters of credit or negotiable instruments. 
Payment may be made directly or indirectly. An example of an indirect payment would be the settlement 
by the buyer, whether in whole or in part, of a debt owed by the seller. 
2. • Activities undertaken by the buyer on the buyer's own account, other than those for which 
an adjustment is provided in Article 8, are not considered to be an indirect payment to the seller, even 
though they might be regarded as of benefit to the seller. The costs of such activities shall not, therefore, 
be" added to the price actually paid or payable in determining the customs value. 
3. The customs value shall not include the following charges or costs, provided that they are 
distinguished from the price actually paid or payable for the imported goods: 
(a) charges for construction, erection, assembly, maintenance or technical assistance, 
undertaken after importation on imported goods such as industrial plant, machinery 
or equipment; 
(b) the cost of transport after importation; 
(c) duties and taxes of the country of importation. 
4. The price actually paid or payable refers to the price for the imported goods. Thus the flow 
of dividends or other payments from the buyer to the seller that do not relate to the imported goods 
are not part of the customs value. 
Paragraph 1(a) (iii) 
Among restrictions which would not render a price actually paid or payable unacceptable are 
restrictions which do not substantially affect the value of the goods. An example of such restrictions 
would be the case where a seller requires a buyer of automobiles not to sell or exhibit them prior to 
a fixed date which represents the beginning of a model year. ' 
Paragraph 1(b) 
1. If the sale or price is subject to some condition or consideration for which a value cannot be 
determined with respect to the goods being valued, the transaction value shall not be acceptable for 
customs purposes. Some examples of this include: 
(a) the seller establishes the price of the imported goods on condition that the buyer will 
also buy other goods in specified quantities; 
(b) the price of the imported goods is dependent upon the price or prices at which the buyer 
of the imported goods sells other goods to the seller of the imported goods; 
(c) the price is established on the basis of a form of payment extraneous to the imported 
goods, such as where the imported goods are semi-finished goods which have been 
provided by the seller on condition that the seller will receive a specified quantity of 
the finished goods. 
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2. However, conditions or considerations relating to the production or marketing of the imported 
goods shall not result in rejection of the transaction value. For example, the fact that the buyer furnishes 
the seller with engineering and plans undertaken in the country of imporution shall not result in rejection 
of the transaction value for the purposes of Article 1. Likewise, if the buyer undertakes on the buyer's 
own account, even though by agreement with the seller, activities relating to the marketing of the 
imported goods, the value of these activities is not part of the customs value nor shall such activities 
result in rejection of the transaction value. 
Paragraph 2 
1. Paragraphs 2(a) and 2(b) provide different means of esublishing the accepubility of a transaction 
value. 
2. Paragraph 2(a) provides that where the buyer and the seller are related, the circumstances 
surrounding the sale shall be examined and the transaction value shall be accepted as the customs value 
provided that the relationship did not influence the price. It is not intended that there should be an 
examination of the circumstances in all cases where the buyer-and the seller are related. Such 
examination will only be required where there are doubts about the acceptability of the price. Where 
the customs administration have no doubts about the acceptability ofthe price, it should be accepted 
without requesting further information from the importer. For example, the customs administration 
may have previously examined the relationship, or it may already have detailed information concerning 
the buyer and the seller, and may already be satisfied from such examination or information that the 
relationship did not influence the price. 
3. Where the customs administration is unable to accept the transaction value without further inquiry, 
it should give the importer an opportunity to supply such further deuiled information as may be necessary 
to enable it to examine the circumstances surrounding the sale. In this context, the customs 
administration should be prepared to examine relevant aspects of the transaction, including the way 
in which the buyer and seller organize their commercial relations and the way in which the price in 
question was arrived at, in order to determine whether the relationship influenced the price. Where 
it can be shown that the buyer and seller, although related under the provisions of Article 15, buy from 
and sell to each other as if they were not related, this would demonstrate that the price had not been 
influenced by the relationship. As an example of this, if the price had been settled in a manner consistent 
with the normal pricing practices of the industry in question or with the way the seller settles prices 
for sales to buyers who are not related to the seller, this would demonstrate that the price had not been 
influenced by the relationship. As a further example, where it is shown that the price is adequate to 
ensure recovery of all costs plus a profit which is representative ofthe firm's overall profit realized 
over a representative period of time (e.g. on an annual basis) in sales of goods of the same class or 
kind, this would demonstrate that the price had not been influenced. 
4. Paragraph 2(b) provides an opportunity for the importer to demonstrate that the transaction 
value closely approximates to a "test" value previously accepted by the customs administration and 
is therefore acceptable under the provisions of Article 1. Where a test under paragraph 2(b) is met, 
it is not necessary to examine the question of influence under paragraph 2(a). If the customs 
administration has already sufficient information to be satisfied, without further detailed inquiries, that 
one of the tests provided in paragraph 2(b) has been met, there is no reason for it to require the importer 
to demonstrate that the test can be met. In paragraph 2(b) the term "unrelated buyers" means buyers 
who are not related to the seller in any particular case. 
Paragraph 2(b) 
A number of factors must be taken into consideration in determining whether one value "closely 
approximates" to another value. These factors include the nature of the imported goods, the nature 
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ofthe industry itself, the season in which the goods are imported, and, whether the difference in values 
is commercially significant. Since these factors may vary from case to case, it would be impossible 
to apply a uniform standard such as a fixed percentage, in each case. For example, a small difference 
in value in a case involving one type of goods could be unacceptable while a large difference in a case 
involving another type of goods might be accepuble in determining whether the transaction value closely 
approximates to the "test" values set forth in paragraph 2(b) of Article 1. 
Note to Article 2 
1. In applying Article 2, the customs administration shall, wherever possible, use a sale of identical 
goods at the same commercial level and in substantially the same quantities as the goods being valued. 
Where no such sale is found, a sale of identical goods that takes place under any one of the following 
three conditions may be used: 
(a) . a sale at the same commercial level but in different quantities; 
(b) a sale at a different commercial level but in substantially the same quantities; or 
(c) a sale at a different commercial level and in different quantities. 
2. Having found a sale under any one of these three conditions adjustments will then be made, 
as the case may be, for: 
(a) quantity factors only; 
(b) commercial level factors only; or 
(c) both commercial level and quantity factors. 
3. The expression "and/or" allows the flexibility to use the sales and make the necessary adjustments 
in any one of the three conditions described above. 
4. For the purposes of Article 2, the transaction value of identical imported goods means a customs 
value, adjusted as provided for in paragraphs 1(b) and 2, which has already been accepted under 
Article 1. 
5. A condition for adjustment because of different commercial levels or different quantities is 
that such adjustment, whether it leads to an increase or a decrease in the value, be made only on the 
basis of demonstrated evidence that clearly esublishes the reasonableness and accuracy ofthe adjustments, 
eg. valid price lists containing prices referring to different levels or different quantities. As an example 
of this, if the imported goods being valued consist of a shipment of 10 units and the only identical 
imported goods for which a transaction value exists involved a sale of 500 units, and it is recognized 
that the seller grants quantity discounts, the required adjustment may be accomplished by resorting 
to the seller's price list and using that price applicable to a sale of 10 units. This does not require 
that a sale had to have been made in quantities of 10 as long as the price list has been esublished as 
being bona fide through sales at other quantities. In the absence of such an objective measure, however, 
the determination of a customs value under the provisions of Article 2 is not appropriate. 
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Note to Article 3 
1. In applying Article 3, the customs administration shall, wherever possible, use a sale of similar 
goods at the same commercial level and in substantially the same quantities as the goods being valued. 
Where no such sale is found, a sale of similar goods that takes place under any one of the following 
three conditions may be used: 
(a) a sale at the same commercial level but in different quantities; 
(b) a sale at a different commercial level but in substantially the same quantities; or 
(c) a sale at a different commercial level and in different quantities. 
2. Having found a sale under any one of these three conditions adjustments will then be made, 
as the case may be, for: 
(a) quantity factors only; 
(b) commercial level factors only; or 
(c) both commercial level and quantity factors. 
3. The expression "and/or" allows the flexibility to use the sales and make the necessary adjustments 
in any one of the three conditions described above. 
4 For the purpose of Anicle 3, the transaction value of similar imported goods means a customs 
value, adjusted as provided for in paragraphs 1(b) and 2, which has already been accepted under 
Article 1. 
5. A condition for adjustment because of different commercial levels or different quantities is 
that such adjustment, whether it leads to an increase or a decrease in the value, be made only on the 
basis of demonstrated evidence that clearly esublishes the reasonableness and accuracy of the adjustment, 
eg valid price lists containing prices referring to different levels or different quantities. As an example 
of this. if the imported goods being valued consist of a shipment of 10 units and the only similar imported 
goods for which a transaction value exists involved a sale of 500 units, and it is recognized that the 
seller grants quantity discounts, the required adjustment may be accomplished by resorting to the seller's 
price list and using that price applicable to a sale of 10 units. This does not require that a sale had 
to have been made in quantities of 10 as long as the price list has been esublished as being bona fide 
through sales at other quantities. In the absence of such an objective measure, however, the 
determination of a customs value under the provisions of Article 3 is not appropriate. 
Note to Article 5 
1. The term "unit price at which ... goods are sold in the greatest aggregate quantity" means the 
price at which the greatest number of units is sold in sales to persons who are not related to the persons 
from whom they buy such goods at the first commercial level after importation at which such sales 
take place. 
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2. As an example of this, goods are sold from a price list which grants favourable unit prices 
for purchases made in larger quantities. 
Total quantity 
Sale quantity Unit price Number of sales sold at each price 
1-10 units 100 10 sales of 5 units 65 
5 sales of 3 units 
11-25 units 95 5 sales of 11 units 55 
over 25 units 90 1 sale of 30 units 80 
1 sale of 50 units 
The greatest number of units sold at a price is 80; therefore, the unit price in the greatest 
aggregate quantity is 90. 
3. As another example of this, two sales occur. In the first sale 500 units are sold at a price of 
95 currency units each. In the second sale 400 units are sold at a price of 90 currency units each. 
In this example, the greatest number of units sold at a particular price is 500; therefore, the unit price 
in the greatest aggregate quantity is 95. 
4. A third example would be the following situation where various quantities are sold at various 
prices. 
(a) Sales 
Sale quantity Unit price 
40 units 100 
30 units 90 
15 units 100 
50 units 95 
25 units 105 
35 units 90 
5 units 100 
(b) Totals 
Total quantity sold Unit price 
65 90 
50 95 
60 100 
25 105 
In this example, the greatest number of units sold at a particular price is 65; therefore, the 
unit price in the greatest aggregate quantity is 90. 
Page 189 
5. Any sale in the importing country, as described in paragraph 1 above, to a person who supplies 
directly or indirectly free of charge or at reduced cost for use in connection with the production and 
sale for export of the imported goods any of the elements specified in paragraph 1(b) of Article 8, 
should not be uken into account in esublishing the unit price for the purposes of Article 5. 
6. It should be noted that "profit and general expenses" referred to in paragraph 1 of Article 5 
should be uken as a whole. The figure for the purposes of this.deduction should be determined on 
the basis of information supplied by or on behalf of the importer unless the importer's figures are 
inconsistent with those obuined in sales in the country of importation of imported goods of the same 
class or kind. Where the importer's figures are inconsistent with such figures, the amount for profit 
and general expenses may be based upon relevant information other than that supplied by or on behalf 
of the importer. 
7. The "general expenses" include the direct and indirect costs of marketing the goods in question. 
8. Local taxes payable by reason ofthe sale ofthe goods for which a deduction is not made under 
the provisions of paragraph l(a)(iv) of Article 5 shall be deducted under the provisions of 
paragraph l(a)(i) of Article 5. 
9. In determining either the commissions or the usual profits and general expenses under the 
provisions of paragraph 1 of Article 5, the question whether certain goods are "of the same class or 
kind" as other goods.must be determined on a case-by-case basis by reference to the circumstances 
involved. Sales in the country of importation of the narrowest group or range of imported goods of 
the same class or kind, which includes the goods being valued, for which the necessary information 
can be provided, should be examined. For the purposes of Article 5, "goods ofthe same class or kind" 
includes goods imported from the same country as the goods being valued as well as goods imported 
from other countries. 
10. For the purposes of paragraph 1(b) of Article 5. the "earliest date" shall be the date by which 
sales ofthe imported goods or of identical or similar imported goods are made in sufficient quantity 
to establish the unit price. 
11. Where the method in paragraph 2 of Article 5 is used, deductions made for the value added 
by further processing shall be based on objective and quantifiable data relating to the cost of such work. 
Accepted industry formulas, recipes, methods of construction, and other industry practices would form 
the basis ofthe calculations. 
12. It is recognized that the method of valuation provided for in paragraph 2 of Article 5 would 
normally not be applicable when, as a result ofthe further processing, the imported goods lose their 
identity. However, there can be instances where, although the identity ofthe imported goods is lost, 
the value added by the processing can be determined accurately without unreasonable difficulty. On 
the other hand, there can also be insunces where the imported goods maintain their identity but form 
such a minor element in the goods sold in the country of importation that the use of this valuation method 
would be unjustified. In view ofthe above, each situation of this type must be considered on a case-by-
case basis. 
Note to Article 6 
1. As a general rule, customs value is determined under this Agreement on the basis of information 
readily available in the country of importation. In order to determine a computed value, however, 
it may be necessary to examine the costs of producing the goods being valued and other information 
which has to be obtained from outside the couniry of importation. Furthermore, ir most cases the 
Page 190 
producer of the goods will be outside the jurisdiction of the authorities of the country of imporution. 
The use of the computed value method will generally be limited to those cases where the buyer and 
seller are related, and the producer is prepared to supply to the authorities ofthe country of importation 
the necessary costings and to provide facilities for any subsequent verification which may be necessary. 
2. . The "cost or value" referred to in paragraph 1(a) of Article 6 is to be determined on the basis 
of information relating to the production of the goods being valued supplied by or on behalf of the 
producer. It is to be based upon the commercial accounts of the producer, provided that such accounts 
are consistent with the generally accepted accounting principles applied in the country where the goods 
are produced. 
3. The "cost or value" shall include the cost of elements specified in paragraphs l(a)(ii) and (iii) 
of Article 8. It shall also include the value, apportioned as appropriate under the provisions ofthe 
relevant note to Article 8, of any element specified in paragraph 1(b) of Article 8 which has been supplied 
directly or indirectly by the buyer for use in connection with the production of the imported goods. 
The value ofthè. elements specified in paragraph 1 (b)(iv) of Article 8 which are undertaken in the country 
of importation shall be included only to the extent that such elements are charged to the producer. 
It is to be understood that no cost or value of the elements referred to in this paragraph shall be counted 
twice in determining the computed value. 
4. The "amount for profit and general expenses" referred to in paragraph 1(b) of Article 6 is to 
be determined on the basis of information supplied by or on behalf of the producer unless the producer's 
figures are inconsistent with those usually reflected in sales of goods ofthe same class or kind as the 
goods being valued which are made by producers in the country of exportation for export to the country 
of importation. 
5. It should be noted in this context that the "amount for profit and general expenses" has to be 
taken as a whole. It follows that if, in any particular case, the producer's profit figure is low and the 
producer's general expenses are high, the producer's profit and general expenses taken together may 
nevertheless be consistent with that usually reflected in sales of goods ofthe same class or kind. Such 
a situation might occur, for example, if a product were being launched in the country of importation 
and the producer accepted a nil or low profit to offset high general expenses associated with the launch. 
Where the producer can demonstrate a low profit on sales ofthe imported goods because of particular 
commercial circumstances, the producer's actual profit figures should be uken into account provided 
that the producer has valid commercial reasons to justify them and the producer's pricing policy reflects 
usual pricing policies in the branch of industry concerned. Such a situation might occur, for example, 
where producers have been forced to lower prices temporarily because of an unforeseeable drop in 
demand, or where they sell goods to complement a range of goods being produced in the country of 
importation and accept a low profit to maintain competitivity. Where the producer's own figures for 
profit and general expenses are not consistent with those usually reflected in sales of goods ofthe same. 
class or kind as the goods being valued which are made by producers in the country of exportation 
for export to the country of importation, the amount for profit and general expenses may be based 
upon relevant information other than that supplied by or on behalf of the producer of the goods. 
6. Where information other than that supplied by or on behalf of the producer is used for the 
purposes of determining a computed value, the authorities ofthe importing country shall inform the 
importer, if the latter so requests, ofthe source of such information, the data used and the calculations 
based upon such data, subject to the provisions of Article 10. 
7 The "general expenses" referred to in paragraph 1 (b) of Article 6 covers the direct and indirect 
costs of producing and selling the goods for export which are not included under paragraph 1(a) of 
Article 6. 
Page 191 
8. Whether certain goods are "of the same class or kind" as other goods must be determined on 
a case-by-case basis with reference to the circumstances involved. In determining the usual profits 
and general expenses under the provisions of Article 6, sales for export to the country of imporution 
of the narrowest group or range, of goods; which includes the goods being valued, for which the necessary 
information can be provided, should be examined. For the purposes of Article 6, "goods of the same 
class or kind" must be from the same country as the goods being valued. 
Note to Article 7 
1. Customs values determined under the provisions of Article 7 should, to the greatest extent 
possible, be based on previously determined customs values. 
2. The methods of valuation to be employed under Article 7 should be those laid down in Articles 1 
through 6 but a reasonable flexibility in the application of such methods would be in conformity with 
the aims and provisions of Article 7. 
3 Some examples of reasonable flexibility are as follows: 
(a) Identical goods - the requirement that the identical goods should be exported at or about 
the same time as the goods being valued could be flexibly interpreted; identical imported 
goods produced in a country other than the country of exportation of the goods being 
valued could be-the basis for customs valuation; customs values of identical imported 
goods already determined under the provisions of Articles 5 and 6 could be used. 
(b) Similar goods - the requirement that the similar goods should be exported at or about 
the same time as the goods being valued could be flexibly interpreted; similar imported 
goods produced in a country other than tbe country of exportation of the goods being 
valued could be the basis for customs valuation; customs values of similar imported 
goods already determined under the provisions of Articles 5 and 6 could be used. 
(c) Deductive method- the requirement that the goods shall have been sold in the "condition 
as imported" in paragraph 1(a) of Article 5 could be flexibly interpreted; the "90 days" 
requirement could be administered flexibly. 
Note to Article 8 
Paragraph l(a)(i) 
The term "buying commissions" means fees paid by an importer to the importer's agent for 
the service of representing the importer abroad in the purchase of the goods being valued. 
Paragraph 1(b) (ii) 
1. There are two factors involved in the apportionment of the elements specified in 
paragraph l(b)(ii) of Article 8 to the imported goods - the value of the element itself and the way in 
which that value is to be apportioned to the imported goods. The apportionment of these elements 
should be made in a reasonable manner appropriate to the circumstances and in accordance with generally 
accepted accounting principles. 
2. Concerning the value of the element, if the importer acquires the element from a seller not 
related to the importer at a given cost, the value ofthe element is that cost. If the element was produced 
Page 192 
by the importer or by a person related to the importer, its value would be the cost of producing it. 
If the element had been previously used by the importer, regardless of whether it had been acquired 
or produced by such importer, the original cost of acquisition or production would have to be adjusted 
downward to reflect its use in order to arrive at the value of the element. 
3. Once a value has been determined "for the element, it is necessary to apportion that value to 
the imported goods. Various possibilities exist. For example, the value might be apportioned to the 
first shipment if the importer wishes to pay duty on the entire value at one time. As another example, 
the importer may request that the value be apportioned over the number of units produced up to the 
time ofthe first shipment. As a further example, the importer may request that the value be apportioned 
over the entire anticipated production where contracts or firm commitments exist for that production. 
The method of apportionment used will depend upon the documenution provided by the importer. 
4*. As an illustration of the above, an importer provides the producer with a mould to be used 
in the production of the imported goods and contracts with the producer to buy 10,000 units. By the 
time of arrival of the first shipment of 1,000 units, the producer has already produced 4,000 units. 
The importer may request the customs administration to apportion the value of the mould over 
1.000 units, 4,000 units or 10,000 units. 
Paragraph 1(b) (iv) 
1. "Additions for the elements specified in paragraph l(b)(iv) of Article 8 should be based on 
objective and quantifiable data. In order to minimize the burden for both the importer and customs 
administration in determining the values to be added, data readily available in the buyer's commercial 
record system should be used in so far as possible. 
2. For those elements supplied by the buyer which were purchased or leased by the buyer, the 
addition would be the cost of the purchase or the lease. No addition shall be made for those elements 
available in the public domain, other than the cost of obtaining copies of them. 
3. The ease with which it may be possible to calculate the values to be added will depend on a 
particular firm's structure and management practice, as well as its accounting methods. 
4. For example, it is possible that a firm which imports a variety of products from several countries 
maintains the records of its design centre outside the country of importation in such a way as to show 
accurately the costs attributable to a given product. In such cases, a direct adjustment may appropriately 
be made under the provisions of Anicle 8. 
5. In another case, a firm may carry the cost ofthe design centre outside the country of importation 
as a general overhead expense without allocation to specific products. In this instance, an appropriate 
adjustment could be made under the provisions of Article 8 with respect to the imported goods by 
apportioning total design centre costs over total production benefiting from the design centre and adding 
such apportioned cost on a unit basis to imports. 
6. Variations in the above circumstances will, of course, require different factors to be considered 
in determining the proper method of allocation. 
7. In cases where the production of the element in question involves a number of countries and 
over a period of time, the adjustment should be limited to the value actually added to that element outside 
the country of importation. 
Page 193 
Paragraph 1(c) 
1. The royalties and licence fees referred to in paragraph 1(c) of Article 8 may include, among 
other things, payments in respect to patents, trade marks and copyrights. However, the charges for 
the right to reproduce the imported goods in the country of importation shall not be added to the price 
actually paid or payable for the imported goods in determining the customs value. 
^. " • • 
2. Payments made by the buyer for the right to distribute or resell the imported goods shall not 
be added to the price actually paid or payable for the imported goods if such payments are not a condition 
of the sale for export to the country of imporution of the imported goods. 
Paragraph 3 
Where objective and quantifiable data do not exist with regard to the additions required to'be 
made under the provisions of Article 8, the transaction value cannot be determined under the provisions 
of Article 1. As an illustration of this, a royalty is paid on the basis of the price in a sale in the 
importing country of a litre of a particular product that was imported by the kilogram and made up 
into a solution after importation. If the royalty is based partially on the imported goods and partially 
on other factors which have nothing to do with the imported goods (such as when the imported goods 
are mixed with domestic ingredients and are no longer separately identifiable, or when the royalty cannot 
be distinguished from special financial arrangements between the buyer and the seller), it would be 
inappropriate to attempt to make an addition for the royalty. However, if the amount of this royalty 
is based only on the imported goods and can be readily quantified, an addition to the price actually 
paid or payable can be made. 
Note to Article 9 
For the purposes of Article 9. "time of importation" may include the time of entry for customs 
purposes. 
Note to Article 11 
1. Article 11 provides the importer with the right to appeal against a valuation determination made 
by the customs administration for the goods being valued. Appeal may first be to a higher level in 
the customs administration, but the importer shall have the right in the final instance to appeal to the 
judiciary. 
2. "Without penalty" means that the importer shall not be subject to a fine or threat of fine merely 
because the importer chose to exercise the right of appeal. Payment of normal court costs and lawyers' 
fees shall not be considered to be a fine. 
3. 
customs However, nothing in Article 11 shall prevent a Member from requiring full payment of assessed 
; duties prior to an appeal. 
Note to Article 15 
Paragraph 4 
For the purposes of Article 15, the term "persons" includes a legal person, where appropriate. 
Page 194 
Paragraph 4(e) 
For the purposes of this Agreement, one person shall be deemed to control another when the 
former is legally or operationally in a position to exercise restraint or direction over the latter. 
Page 195 
ANNEX II 
TECHNICAL COMMITTEE ON CUSTOMS VALUATION 
1. '•" In accordance with Article 18 of this Agreement, the Technical Committee shall be esublished 
under the auspices ofthe CCC with a view to ensuring, at the technical level, uniformity in interpreution 
and application of this Agreement. 
2. The responsibilities of the Technical Committee shall include the following: 
(a) to examine specific technical problems arising in the day-to-day administration ofthe 
customs valuation system of Members and to give advisory opinions on appropriate 
solutions based upon the facts presented; 
(b) to study, as requested, valuation laws, procedures and practices as they relate to this 
Agreement and to prepare reports on the results of such studies; 
(c) to prepare and circulate annual reports on the technical aspects of the operation and 
status of this Agreement; 
(d) to furnish such information and advice on any matters concerning the valuation of 
imported goods for customs purposes as may be requested by any Member or the 
Committee. Such information and advice may take the form of advisory opinions, 
commentaries or explanatory notes; 
(e) to facilitate, as requested, technical assistance to Members with a view to furthering 
the international acceptance of this Agreement; 
(f) to carry out an examination of a matter referred to it by a panel under Article 19 of 
this Agreement; and 
(g) to exercise such other responsibilities as the Committee may assign to it. 
General 
3. The Technical Committee shall attempt to conclude its work on specific matters, especially 
those referred to it by Members, the Committee or a panel, in a reasonably short period of time. 
As provided in paragraph 4 of Article 19. a panel shall set a specific time period for receipt of a report 
ofthe Technical Committee and the Technical Committee shall provide its report within that period. 
4. The Technical Committee shall be assisted as appropriate in its activities by the CCC Secreuriat. 
Representation 
5. Each Member shall have the right to be represented on the Technical Committee. Each Member 
may nominate one delegate and one or more alternates to be its representatives on the Technical 
Committee. Such a Member so represented on the Technical Committee is referred to in this Annex 
as a "member ofthe Technical Committee". Representatives of members ofthe Technical Committee 
may be assisted by advisers. The WTO Secretariat may also attend such meetings with observer status. 
Page 196 
6. Members of the CCC which are not Members of the WTO may be represented at meetings 
of the Technical Committee by one delegate and one ôr more alternates. Such represenutives shall 
attend meetings ofthe Technical Committee as observers. 
7. Subject to the approval of the Chairman of the Technical Committee, the Secretary-General 
of the CCC (referred to in this Annex as "the Secreury-General") may invite representatives of 
governments which are neither Members of the WTO nor members of the CCC and represenutives 
of international governmental and trade organizations to attend meetings of the Technical Committee 
as observers. 
8. Nominations of delegates, alternates and advisers to meetings ofthe Technical Committee shall 
be made to the Secreury-General. 
Technical Committee Meetings 
9. The Technical Committee shall meet as necessary but at least two times a year. The date of 
each meeting shall be fixed by the Technical Committee at its preceding session. The date ofthe meeting 
may be varied either at the request of any member ofthe Technical Committee concurred in by a simple 
majority of the members of the Technical Committee or, in cases requiring urgent attention, at the 
request of the Chairman. Notwithstanding the provisions in sentence 1 of this paragraph, the Technical 
Committee shall meet as necessary to consider matters referred to it by a panel under the provisions 
of Article 19 of this Agreement. 
10. The meetings ofthe Technical Committee shall be held at the headquarters ofthe CCC unless 
otherwise decided. 
11. The Secretary-General shall inform all members ofthe Technical Committee and those included 
under paragraphs 6 and 7 at least 30 days in advance, except in urgent cases, ofthe opening date of 
each session of the Technical Committee. 
Agenda 
12. A provisional agenda for each session shall be drawn up by the Secretary-General and circulated 
to the members of the Technical Committee and to those included under paragraphs 6 and 7 at least 
30 days in advance ofthe session, except in urgent cases. This agenda shall comprise all items whose 
inclusion has been approved by the Technical Committee during its preceding session, all items included 
by the Chairman on the Chairman's own initiative, and all items whose inclusion has been requested 
by the Secreury-General, by the Committee or by any member of the Technical Committee. 
13. The Technical Committee shall determine its agenda at the opening of each session. During 
the session the agenda may be altered at any time by the Technical Committee. 
Officers and Conduct of Business 
14 The Technical Committee shall elect from among the delegates of its members a Chairman 
and one or more Vice-Chairmen. The Chairman and Vice-Chairmen shall each hold office for a period 
of one year. The retiring Chairman and Vice-Chairmen are eligible for re-election. The mandate of 
a Chairman or Vice-Chairman who no longer represents a member ofthe Technical Committee shall 
terminate automatically. 
15. If the Chairman is absent from any meeting or part thereof, a Vice-Chairman shall preside. 
In that event, the latter shall have the same powers and duties as the Chairman. 
Page 197 
16. The Chairman ofthe meeting shall participate in the proceedings ofthe Technical Committee 
as such and not as the representative of a member of the Technical Committee. 
17. In addition to exercising the other powers conferred upon the Chairman by these rules, the 
Chairman shall declare the opening and closing of each meeting, direct the discussion, accord the right 
to speak, and, pursuant to these rules, have control,of the proceedings. The Chairman may also call 
a speaker to order if the speaker's remarks are not relevant. 
18. During discussion of any matter a delegation may raise a point of order. In this event, the 
Chairman shall immediately sute a ruling. If this ruling is challenged, the Chairman shall submit it 
to the meeting for decision and it shall stand unless overruled. 
19. The Secretary-General, or officers ofthe CCC Secretariat designated by the Secretary-General, 
shall perform the secretarial work of meetings of the Technical Committee. 
Quorum and Voting 
20. Representatives of a simple majority ofthe members ofthe Technical Committee shall constitute 
a quorum. 
21. Each member of the Technical Committee shall have one vote. A decision of the Technical 
Committee shall be taken by a majority comprising at least two thirds of the members present. 
Regardless of the outcome of trie vote on a particular matter, the Technical Committee shall be free 
to make a full report to the Committee and to the CCC on that matter indicating the different views 
expressed in the relevant discussions. Notwithstanding the above provisions of this paragraph, on matters 
referred to it by a panel, the Technical Committee shall take decisions by consensus. Where no 
agreement is reached in the Technical Committee on the question referred to it by a panel, the Technical 
Committee shall provide a report detailing the facts of the matter and indicating the views of the 
members. 
Languages and Records 
22. The official languages of the Technical Committee shall be English, French and Spanish. 
Speeches or statements made in any of these three languages shall be immediately translated into "the 
other official languages unless all delegations agree to dispense with translation. Speeches or statements 
made in any other language shall be translated into English, French and Spanish, subject to the same 
conditions, but in that event the delegation concerned shall provide the translation into English, French 
or Spanish. Only English, French and Spanish shall be used for the official documents ofthe Technical 
Committee. Memoranda and correspondence for the consideration ofthe Technical Committee must 
be presented in one of the official languages. 
23. The Technical Committee shall draw up a report of all its sessions and, if the Chairman considers 
it necessary, minutes or summary records of its meetings. The Chairman or a designee ofthe Chairman 
shall report on the work of the Technical Committee at each meeting of the Committee and at each 
meeting ofthe CCC. 
Page 198 
ANNEX III 
1. • The five-year delay in the application of the provisions of the Agreement by developing country 
Members provided for in paragraph 1 of Article 20 may, in practice, be insufficient for certain 
developing country Members. In such cases a developing country Member may request before the 
end ofthe period referred to in paragraph 1 of Article 20 an extension of such period, it being understood 
that the Members will give sympathetic consideration to such a request in cases where the developing 
country Member in question can show good cause. 
2. Developing countries which currently value goods on the basis of officially esublished minimum 
values may wish to make a reservation to enable them to reuin such values on a limited and transitional 
basis under such terms and conditions as may be agreed to by the Members. 
3. Developing countries which consider that the reversal of the sequential order at the request 
of the importer provided for in Article 4 of the Agreement may give rise to real difficulties for them 
may wish to make a reservation to Article 4 in the following terms: 
"The Government of reserves the right to provide that the relevant provision of 
Article 4 ofthe Agreement shall apply only when the customs authorities agree to the request 
to reverse the order of Articles 5 and 6." 
If developing countries make such a reservation, the Members shall consent to it under Article 21 
of the Agreement. 
4. Developing countries may wish to make a reservation with respect to paragraph 2 of Article 5 
of the Agreement in the following terms: 
"The Government of reserves the right to provide that paragraph 2 of Article 5 of 
the Agreement shall be applied in accordance with the provisions ofthe relevant note thereto 
whether or not the importer so requests." 
If developing countries make such a reservation, the Members shall consent to it under Article 21 
of the Agreement. 
5. Certain developing countries may have problems in the implementation of Article 1 of the 
Agreement insofar as it relates to importations into their countries by sole agents, sole distributors 
and sole concessionaires. If such problems arise in practice in developing country Members applying 
the Agreement, a study of this question shall be made, at the request of such Members, with a view 
to finding appropriate solutions. 
6. Anicle 17 recognizes that in applying the Agreement, customs administrations may need to 
make enquiries concerning the truth or accuracy of any statement, document or declaration presented 
to them for customs valuation purposes. The Anicle thus acknowledges that enquiries may be made 
which are. for example, aimed at verifying that the elements of value declared or presented to customs 
in connection with a determination of customs value are complete and correct. Members, subject to 
their national laws and procedures, have the right to expect the full cooperation of importers in these 
enquiries. 
7. The price actually paid or payable includes all payments actually made or to be made as a 
condition of sale of the imported goods, by the buyer to the seller, or by the buyer to a third party 
to satisfy an obligation of the seller. 
Page 199 
AGREEMENT ON PRESHIPMENT INSPECTION 
Members, 
Noting that Ministers on 20 September 1986 agreed that the Uruguay Round of Multilateral 
Trade Negotiations shall aim to "bring about further liberalization and expansion of world trade", 
"strengthen the role of GATT" and "increase the responsiveness ofthe GATT system to the evolving 
international economic environment"; 
Noting that a number of developing country Members have recourse to preshipment inspection; 
Recognizing the need of developing countries to do so for as long and in so far as it is necessary 
to verify' the quality, quantity or price of imported goods; 
Mindful that such programmes must be carried out without giving rise to unnecessary delays 
or unequal treatment: 
Noting that this inspection is by definition carried out on the territory of exporter Members; 
Recognizing the need to establish an agreed international framework of rights and obligations 
of both user Members and exporter Members; 
Recognizing that the principles and obligations of GATT 1994 apply to those activities of 
preshipment inspection entities that are mandated by governments that are Members of the WTO; 
Recognizing that it is desirable to provide transparency of the operation of preshipment inspection 
entities and of laws and regulations relating to preshipment inspection; 
Desiring to provide for the speedy, effective and equitable resolution of disputes between 
exporters and preshipment inspection entities arising under this Agreement; 
Hereby agree as follows: 
Article 1 
Coverage - Definitions 
1. This Agreement shall apply to all preshipment inspection activities carried out on the territory 
of Members, whether such activities are contracted or mandated by the government, or any government 
body, of a Member. 
2. The term "user Member" means a Member of which the government or any government body 
contracts for or mandates the use of preshipment inspection activities. 
3. Preshipment inspection activities are all activities relating to the verification ofthe quality, 
the quantity, the price, including currency exchange rate and financial terms, and/or the customs 
classification of goods to be exported to the territory of the user Member. 
Page 200 
4. The term "preshipment inspection entity" is any entity contracted or mandated by a Member 
to carry out preshipment inspection activities.1 
Article 2 
Obligations of User Members 
Non-discrimination 
1. User Members shall ensure that preshipment inspection activities are carried out in a non­
discriminatory manner, and that the procedures and criteria employed in the conduct of these activities 
are objective and are applied on an equal basis to all exporters affected by such activities. They shall 
ensure uniform performance of inspection by all the inspectors of the preshipment inspection entities 
contracted or mandated by them. 
Governmental Requirements 
2. User Members shall ensure that in the course of preshipment inspection activities relating to 
their laws, regulations and requirements, the provisions of paragraph 4 of Article III of GATT 1994 
are respected to the extent that these are relevant. 
Site of Inspection 
3. User Members shall ensure that all preshipment inspection activities, including the issuance 
of a Clean Report of Findings or a note of non-issuance, are performed in the customs territory from 
which the goods are exported or, if the inspection cannot be carried out in that customs territory given 
the complex nature ofthe products involved, or if both parties agree, in the customs territory in which 
the goods are manufactured. 
Standards 
4. User Members shall ensure that quantity and quality inspections are performed in accordance 
with the standards defined by the seller and the buyer in the purchase agreement and that, in the absence 
of such standards, relevant international standards2 apply. 
Transparency 
5. User Members shall ensure that preshipment inspection activities are conducted in a transparent 
manner. 
6. User Members shall ensure that, when initially contacted by exporters, preshipment inspection 
entities provide to the exporters a list of all the information which is necessary for the exporters to 
comply with inspection requirements. The preshipment inspection entities shall provide the actual 
information when so requested by exporters. This information shall include a reference to the laws 
and regulations of user Members relating to preshipment inspection activities, and shall also include 
the procedures and criteria used for inspection and for price and currency exchange-rate verification 
'It is understood that this provision docs riot obligate Members to allow government entities of other Members to conduct 
preshipment inspection activities on their territory. 
'An international standard is a standard adopted by a governmental or non-governmenul body whose membership is 
open to all Members, one of whose recognized activities is in the field of standardization. 
Page 201 
purposes, the exporters' rights vis-à-vis the inspection entities, and the appeals procedures set up under 
paragraph 21. Additional procedural requirements or changes in existing procedures shall not be applied 
to a shipment unless the exporter concerned is informed of these changes at the time the inspection 
date is arranged. However, in emergency situations of the types addressed by Articles XX and XXI 
of GATT 1994, such additional requirements or changes may be applied to a shipment before the exporter 
has been informed. This assistance shall not, however, relieve exporters from their obligations in respect 
of compliance with the import regulations of the user Members. 
7. User Members shall ensure that the information referred to in paragraph 6 is made available 
to exporters in a convenient manner, and that the preshipment inspection offices mainuined by 
preshipment inspection entities serve as information points where this information is available. 
8. User Members shall publish promptly all applicable laws and regulations relating to preshipment 
inspection activities in such a manner as to enable other governments and traders to become acquainted 
with them. 
Protection of Confidential Business Information 
9. User Members shall ensure that preshipment inspection entities treat all information received 
in the course of the preshipment inspection as business confidential to the extent that such information 
is not already published, generally available to third parties, or otherwise in the public domain. User 
Members shall ensure that preshipment inspection entities maintain procedures to this end. 
10. User Members shall provide information to Members on request on the measures they are taking 
to give effect to paragraph 9. The provisions of this paragraph shall not require any Member to disclose 
confidential information the disclosure of which would jeopardize the effectiveness ofthe preshipment 
inspection programmes or would prejudice the legitimate commercial interest of particular enterprises, 
public or private. 
11. User Members shall ensure that preshipment inspection entities do not divulge confidential 
business information to any third party, except that preshipment inspection entities may share this 
information with the government entities that have contracted or mandated them. User Members shall 
ensure that confidential business information which they receive from preshipment inspection entities 
contracted or mandated by them is adequately safeguarded. Preshipment inspection entities shall share 
confidential business information with the governments contracting or mandating them only to the extent 
that such information is customarily required for letters of credit or other forms of payment or for 
customs, import licensing or exchange control purposes. 
12. User Members shall ensure that preshipment inspection entities do not request exporters to 
provide information regarding: 
(a) manufacturing data related to patented, licensed or undisclosed processes, or to processes 
for which a patent is pending; 
(b) unpublished technical data other than data necessary to demonstrate compliance with 
technical regulations or standards, 
(c) internal pricing, including manufacturing costs; 
(d) profit levels; 
Page 202 
(e). the terms of contracts between exporters and their suppliers unless it is not otherwise 
possible for the entity to conduct the inspection in question. In such cases, the entity 
shall only request the information necessary for this purpose. 
13. The information referred to in paragraph 12, which preshipment inspection entities shall not 
otherwise request, may be released voluntarily by the exporter to illustrate a specific case. 
Conflicts of Interest 
14. User Members shall ensure that preshipment inspection entities, bearing in mind also the 
provisions on protection of confidential business information in paragraphs 9 through 13, mainuin 
procedures to avoid conflicts of interest: 
(a) between preshipment inspection entities and any related entities of the preshipment 
inspection entities in question, including any entities in which the latter have a financial 
or commercial interest or any entities which have a financial interest in the preshipment 
inspection entities in question, and whose shipments the preshipment inspection entities 
are to inspect; 
(b) between preshipment inspection entities and any other entities, including other entities 
subject to preshipment inspection, with the exception of the government entities 
contracting or mandating the inspections; 
(c) with divisions of preshipment inspection entities engaged in activities other than those 
required to carry out the inspection process. 
Delays 
15. User Members shall ensure that preshipment inspection entities avoid unreasonable delays 
in inspection of shipments. User Members shall ensure that, once a preshipment inspection entity and 
an exporter agree on an inspection date, the preshipment inspection entity conducts the inspection on 
that date unless it is rescheduled on a mutually agreed basis between the exporter and the preshipment 
inspection entity, or the preshipment inspection entity is prevented from doing so by the exporter or 
by force majeure.^ 
16. User Members shall ensure that, following receipt ofthe final documents and completion of 
the inspection, preshipment inspection entities, within five working days, either issue a Clean Report 
of Findings or provide a detailed written explanation specifying the reasons for non-issuance. User 
Members shall ensure that, in the latter case, preshipment inspection entities give exporters the 
opportunity to present their views in writing and, if exporters so request, arrange for re-inspection 
at the earliest mutually convenient date. 
17. User Members shall ensure that, whenever so requested by the exporters, preshipment inspection 
entities undertake, prior to the date of physical inspection, a preliminary verification of price and, where 
applicable, of currency exchange rate, on the basis of the contract between exporter and importer, 
the pro forma invoice and, where applicable, the application for import authorization. User Members 
shall ensure that a price or currency exchange rate that has been accepted by a preshipment inspection 
entity on the basis of such preliminary verification is not withdrawn, providing the goods conform 
to the import documentation and/or import licence. They shall ensure that, after a preliminary 
verification has taken place, preshipment inspection entities immediately inform exporters in writing 
'It is understood that, for the purposes of this Agreement, 'force majeure " shall mean " irresistible compulsion or coercion. 
unforeseeable course of events excusing from fulfilment of contract'. 
Page 203 
either of their acceptance or of their deuiled reasons for non-acceptance of the price and/or currency 
exchange rate. 
18. User Members shall ensure that, in order to avoid delays in payment, preshipment inspection 
entities send to exporters or to designated represenutives of the exporters a Clean Report of Findings 
as expeditiously as possible. 
19. User Members shall ensure that, in the event of a clerical error in the Clean Report of Findings, 
preshipment inspection entities correct the error and forward the corrected information to the appropriate 
parties as expeditiously as possible. 
Price Verification 
20. User Members shall ensure that, in order to prevent over- and under-invoicing and fraud, 
preshipment inspection entities conduct price verification4 according to the following guidelines: 
(a) preshipment inspection entities shall only reject a contract price agreed between an 
exporter and an importer if they can demonstrate that their findings of an unsatisfactory 
price are based on a verification process which is in conformity with the criteria set 
out in subparagraphs (b) through (e); 
(b) the preshipment inspection entity shall base its price comparison for the verification 
of the export price on the price(s) of identical or similar goods offered for export from 
the same country of exportation at or about the same time, under competitive and 
. comparable conditions of sale, in conformity with customary commercial practices 
and net of any applicable standard discounts. Such comparison shall be based on the 
following: 
(i) only prices providing a valid basis of comparison shall be used, taking into 
account the relevant economic factors pertaining to the country of importation 
and a country or countries used for price comparison; 
(ii) the preshipment inspection entity shall not rely upon the price of goods offered 
for export to different countries of importation to arbitrarily impose the lowest 
price upon the shipment; 
(iii) the preshipment inspection entity shall uke into account the specific elements 
listed in subparagraph (c); 
(iv) at any suge in the process described above, the preshipment inspection entity 
shall provide the exporter with an opportunity to explain the price; 
(c) when conducting price verification, preshipment inspection entities shall make 
appropriate allowances for the terms of the sales contract and generally applicable 
adjusting factors pertaining to the transaction; these factors shall include but not be 
limited to the commercial level and quantity ofthe sale, delivery periods and conditions, 
price escalation clauses, quality specifications, special design features, special shipping 
or packing specifications, order size, spot sales, seasonal influences, licence or other 
intellectual property fees, and services rendered as part of the contract if these are not 
The obligations of user Members with respect to the services of preshipment inspection entities in connection with customs 
valuation shall be the obligations which they have accepted in GATT 1994 and the other Multilateral Trade Agreements 
included in Annex 1A of the WTO Agreement. 
Page 204 
customarily invoiced separately; they shall also include certain elements relating to 
the exporter's price, such as the contractual relationship between the exporter and 
importer; 
(d) the verification of transportation charges shall relate only to the agreed price of the 
mode of transport in the country of exportation as indicated in the sales contract; 
(e) the following shall not be used for price verification purposes: 
(i) the selling price in the country of imporution of goods produced in such 
country; 
(ii) the price of goods for export from a country other than the country of 
exportation; 
(iii) the cost of production; 
(iv) arbitrary or fictitious prices or values. 
Appeals Procedures 
21. User Members shall ensure that preshipment inspection entities establish procedures to receive. 
consider and render decisions concerning grievances raised by exporters, and that information concerning 
such procedures is made available to exporters in accordance with the provisions of paragraphs 6 and 7. 
User Members shall ensure that the procedures are developed and maintained in accordance with the 
following guidelines: 
(a) preshipment inspection entities shall designate one or more officials who shall be 
available during normal business hours in each city or port in which they maintain 
a preshipment inspection administrative office to receive, consider and render decisions 
on exporters' appeals or grievances; 
(b) exporters shall provide in writing to the designated official(s) the facts concerning the 
specific transaction in question, the nature ofthe grievance and a suggested solution; 
(c) the designated official(s) shall afford sympathetic consideration to exporters ' grievances 
and shall render a decision as soon as possible after receipt of the documenution referred 
to in subparagraph (b). 
Derogation 
22. By derogation to the provisions of Article 2, user Members shall provide that, with the exception 
of part shipments, shipments whose value is less than a minimum value applicable to such shipments 
as defined by the user Member shall not be inspected, except in exceptional circumstances. This 
minimum value shall form part of the information furnished to exporters under the provisions of 
paragraph 6. 
Page 205 
Article 3 
Obligations of Exporter Members 
Non-discrimination 
1. Exporter Members shall ensure that their laws and regulations relating to preshipment inspection 
activities are applied in a non-discriminatory manner. 
Transparency 
2. Exporter Members shall publish promptly all applicable laws and regulations relating to 
preshipment inspection activities in such a manner as to enable other governments and traders to become 
acquainted with them. 
Technical Assistance 
3. Exporter Members shall offer to provide to user Members, if requested, technical assistance 
directed towards the achievement ofthe objectives of this Agreement on mutually agreed terms.5 
Article 4 
Independent Review Procedures 
Members shall encourage preshipment inspection entities and exporters mutually to resolve 
their disputes. However, two working days after submission ofthe grievance in accordance with the 
provisions of paragraph 21 of Article 2, either party may refer the dispute to independent review. 
Members shall take such reasonable measures as may be available to them to ensure that the following 
procedures are established and maintained to this end: 
(a) these procedures shall be administered by an independent entity constituted jointly by 
an organization representing preshipment inspection entities and an organization 
representing exporters for the purposes of this Agreement; 
(b) the independent entity referred to in subparagraph (a) shall establish a list of experts 
as follows: 
(i) a section of members nominated by an organization representing preshipment 
inspection entities; 
(ii) a section of members nominated by an organization representing exporters; 
(iii) a section of independent trade experts, nominated by the independent entity 
referred to in subparagraph (a). 
The geographical distribution ofthe experts on this list shall be such as to enable any 
disputes raised under these procedures to be dealt with expeditiously. This list shall 
be drawn up within two months of the entry into force of the WTO Agreement and 
5lt is understood that such technical assistance may be given on a bilateral, plurilateral or multilateral basis 
Page 206 
shall be updated annually. The list shall be publicly available. It shall be notified 
to the Secretariat and circulated to all Members; 
(c) an exporter or preshipment inspection entity wishing to raise a dispute shall contact 
the independent entity referred to in subparagraph (a) and request the formation of 
a panel. The independent entity shall be responsible for esublishing a panel. This 
panel shall consist of three members. The members of the panel shall be chosen so 
as to avoid unnecessary costs and delays. The first member shall be chosen from 
section (i) ofthe above list by the preshipment inspection entity concerned, provided 
that this member is not affiliated to that entity. The second member shall be chosen 
from section (ii) ofthe above list by the exporter concerned, provided that this member 
is not affiliated to that exporter. The third member shall be chosen from section (iii) 
of the above list by the independent entity referred to in subparagraph (a). No objections 
shall be made to any independent trade expert drawn from section (iii) of the above 
list; 
(d) the independent trade expert drawn from section (iii) of the above list shall serve as 
the chairman of the panel. The independent trade expert shall take the necessary 
decisions to ensure an expeditious settlement ofthe dispute by the panel, for instance, 
whether the facts of the case require the panelists to meet andt if so, where such a 
meeting shall take place, taking into account the site ofthe inspection in question; 
(e) if the parties to the dispute so agree, one independent trade expert could be selected 
from section (iii) of the above list by the independent entity referred to in 
subparagraph (a) to review the dispute in question. This expert shall take the necessary 
decisions to ensure an expeditious settlement of the dispute, for instance taking into 
account the site of the inspection in question; 
(f) the object of the review shall be to establish whether, in the course of the inspection 
in dispute, the parties to the dispute have complied with the provisions of this 
Agreement. The procedures shall be expeditious and provide the opportunity for both 
parties to present their views in person or in writing; 
(g) decisions by a three-member panel shall be taken by majority vote. The decision on 
the dispute shall be rendered within eight working days ofthe request for independent 
review and be communicated to the parties to the dispute. This time-limit could be 
extended upon agreement by the parties to the dispute. The panel or independent trade 
expert shall apportion the costs, based on the merits of the case; 
(h) the decision of the panel shall be binding upon the preshipment inspection entity and 
the exporter which are parties to the dispute. 
Article 5 
Notification 
Members shall submit to the Secretariat copies of the laws and regulations by which they put 
this Agreement into force, as well as copies of any other laws and regulations relating to preshipment 
inspection, when the WTO Agreement enters into force with respect to the Member concerned. No 
changes in the laws and regulations relating to preshipment inspection shall be enforced before such 
changes have been officially published. They shall be notified to the Secretariat immediately after 
their publication. The Secretariat shall inform the Members ofthe availability of this information. 
Page 207 
Article 6 
Review 
At the end of the second year from the date of entry into force of the WTO Agreement and 
every three years thereafter, the Ministerial Conference shall review the provisions, implemenution 
and operation of this Agreement, taking into account the objectives thereof and experience gained in 
its operation. As a result of such review, the Ministerial Conference may amend the provisions of 
the Agreement. 
Article 7 
Consultation 
Members shall consult with other Members upon request with respect to any matter affecting 
the operation of this Agreement. In such cases, the provisions of Article XXII of GATT 1994, as 
elaborated and applied by the Dispute Settlement Understanding, are applicable to this Agreement. 
Article 8 
Dispute Settlement 
Any disputes among Members regarding the operation of this Agreement shall be subject to 
the provisions of Article XXIII of GATT 1994, as elaborated and applied by the Dispute Settlement 
Understanding. 
Article 9 
Final Provisions 
1. Members shall uke the necessary measures for the implementation of the present Agreement. 
2. Members shall ensure that their laws and regulations shall not be contrary to the provisions 
of this Agreement. 
Page 208 
Page 209 
AGREEMENT ON RULES OF ORIGIN 
Members, 
Noting that Ministers on 20 September 1986 agreed that the Uruguay Round of Multilateral 
Trade Negotiations shall aim to "bring about further liberalization and expansion of world trade", 
"strengthen the role of GATT" and "increase the responsiveness of the GATT system to the evolving 
international economic environment"; 
Desiring to further the objectives of GATT 1994; 
Recognizing that clear and predictable rules of origin and their application facilitate the flow 
of international trade; 
Desiring to ensure that rules of origin themselves do not create unnecessary obstacles to trade; 
Desiring to ensure that rules of origin do not nullify or impair the rights of Members under 
GATT 1994: 
Recognizing that it is desirable to provide transparency of laws, regulations, and practices 
regarding rules of origin; 
Desiring to ensure that rules of origin are prepared and applied in an impartial, transparent, 
predictable, consistent and neutral manner; 
Recognizing the availability of a consulution mechanism and procedures for the speedy, effective 
and equitable resolution of disputes arising under this Agreement; 
Desiring to harmonize and clarify rules of origin; 
Hereby agree as follows: 
PART I 
DEFINITIONS AND COVERAGE 
Article 1 
Rules of Origin 
1. For the purposes of Parts I to IV of this Agreement, rules of origin shall be defined as those 
laws, regulations and administrative determinations of general application applied by any Member to 
determine the country of origin of goods provided such rules of origin are not related to contractual 
or autonomous trade régimes leading to the granting of uriff preferences going beyond the application 
of paragraph 1 of Article I of GATT 1994. 
2. Rules of origin referred to in paragraph 1 shall include all rules of origin used in non-preferential 
commercial policy instruments, such as in the application of: most-favoured-nation treatment under 
Articles I, II, III, XI and XIII of GATT 1994; anti-dumping and countervailing duties under Article VI 
of GATT 1994; safeguard measures under Article XIX of G ATT 1994; origin marking requirements 
Page 210 
under Article IX of GATT 1994; and any discriminatory quantitative restrictions or tariff quotas. 
They shall also include rules of origin used for government procurement and trade statistics.1 
PART II 
DISCIPLINES TO GOVERN THE APPLICATION QF RULES OF ORIGIN 
Article 2 
Disciplines During the Transition Period 
Until the work programme for the harmonization of rules of origin set out in Part IV is 
completed. Members shall ensure that: 
(a) when they issue administrative determinations of general application, the requirements 
to be fulfilled are clearly defined. In particular: 
(i) in cases where the criterion of change of tariff classification is applied, such 
a rule of origin, and any exceptions to the rule, must clearly specify' the 
subheadings or headings within the tariff nomenclature that are addressed by 
the rule; 
(ii) in cases where the ad valorem percentage criterion is applied, the method for 
calculating this percentage shall also be indicated in the rules of origin; 
(iii) in cases where the criterion of manufacturing or processing operation is 
prescribed, the operation that confers origin on the good concerned shall be 
precisely specified: 
(b) notwithstanding the measure or instrument of commercial policy to which they are 
linked, their rules of origin are not used as instruments to pursue trade objectives 
directly or indirectly: 
(c) rules of origin shall not themselves create restrictive, distorting, or disruptive effects 
on international trade. They shall not pose unduly strict requirements or require the 
fulfilment of a certain condition not related to manufacturing or processing, as a 
prerequisite for the determination ofthe country of origin. However, costs not directly 
related to manufacturing or processing may be included for the purposes of the 
application of an ad valorem percentage criterion consistent with subparagraph (a); 
(d) the rules of origin that they apply to imports and exports are not more stringent than 
the rules of origin they apply to determine whether or not a good is domestic and shall 
not discriminate between other Members, irrespective of the affiliation of the 
manufacturers of the good concerned2; 
'It is understood that this provision is without prejudice to those determinations made for purposes of defining "domestic 
industry" or "like products of domestic industry" or similar terms wherever they apply. 
*With respect to rules of origin applied for the purposes of government procurement, this provision shall not create 
obligations additional to those already assumed by Members under GATT 1994. 
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(e) their rules of origin are administered in a consistent, uniform, impartial and reasonable 
manner; 
(0 their rules of origin are based on a positive standard. Rules of origin that sute what 
does not confer origin (negative standard) are permissible as part of a clarification of 
a positive standard or in individual cases where a positive determination of origin is 
not necessary; 
(g) their laws, regulations, judicial decisions and administrative rulings of general 
application relating to rules of origin are published as if they were subject to, and in 
accordance with, the provisions of paragraph 1 of Article X of GATT 1994; 
(h) upon the request of an exporter, importer or any person with a justifiable cause, 
assessments of the origin they would accord to a good are issued as soon as possible 
but no later than 150 days* after a request for such an assessment provided that all 
necessary elements have been submitted. Requests for such assessments shall be 
accepted before trade in the good concerned begins and may be accepted at any later 
point in time. Such assessments shall remain valid for three years provided that the 
facts and conditions, including the rules of origin, under which they have been made 
remain comparable. Provided that the parties concerned are informed in advance, such 
assessments will no longer be valid when a decision contrary to the assessment is made 
in a review as referred to in subparagraph (j). Such assessments shall be made publicly 
available subject to the provisions of subparagraph (k); 
(i) when introducing changes to their rules of origin or new rules of origin, they shall 
not apply such changes retroactively as defined in, and without prejudice to, their laws 
or regulations; 
(j) any administrative action which they take in relation to the determination of origin 
is reviewable promptly by judicial, arbitral or administrative tribunals or procedures, 
independent ofthe authority issuing the determination, which can effect the modification 
or reversal of the determination; 
(k ) all information that is by nature confidential or that is provided on a confidential basis 
for the purpose of the application of rules of origin is treated as strictly confidential 
by the authorities concerned, which shall not disclose it without the specific permission 
of the person or government providing such information, except to the extent that it 
ma\ be required to be disclosed in the context of judicial proceedings. 
Article 3 
Disciplines after the Transition Period 
Taking into account the aim of all Members to achieve, as a result ofthe harmonization work 
programme set out in Part IV, the establishment of harmonized rules of origin, Members shall ensure, 
upon the implementation of the results of the harmonization work programme, that: 
(a) they apply rules of origin equally for all purposes as set out in Article 1 ; 
'In respect of requests made during the first year from the date of entry into force of the WTO Agreement, Members 
shall only be required to issue these assessments as soon as possible. 
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(b) under their rules of origin, the country to be determined as the origin of a particular 
good is either the country where the good has been wholly obuined or, when more 
than one country is concerned in the production of the good, the country where the 
last substantial transformation £as been carried out; 
(c) the rules of origin that they apply to imports and exports are not more stringent than 
the rules of origin they apply to determine whether or not a good is domestic and shall 
not discriminate between other Members, irrespective of the affiliation of the 
manufacturers of the good concerned; 
(d) the rules of origin are administered in a consistent, uniform, impartial and reasonable 
manner; . 
(e) their laws, regulations, judicial decisions and administrative rulings of general 
application relating to rules of origin are published as if they were subject to, and in 
accordance with, the provisions of paragraph 1 of Article X of GATT 1994; 
(0 upon the request of an exporter, importer or any person with a justifiable cause, 
assessments of the origin they would accord to a good are issued as soon as possible 
but no later than 150 days after a request for such an assessment provided that all 
necessary elements have been submitted. Requests for such assessments shall be 
accepted before trade in the good concerned begins and may be accepted at any later 
point in time. Such assessments shall remain valid for three years provided that the 
facts and conditions, including the rules of origin, under which they have been made 
. remain comparable. Provided that the parties concerned are informed in advance, such 
assessments will no longer be valid when a decision contrary to the assessment is made 
in a review as referred to in subparagraph (h). Such assessments shall be made publicly 
available subject to the provisions of subparagraph (i); 
(g) when introducing changes to their rules of origin or new rules of origin, they shall 
not apply such changes retroactively as defined in, and without prejudice to, their laws 
or regulations; 
(h) any administrative action which they take in relation to the determination of origin 
is reviewable promptly by judicial, arbitral or administrative tribunals or procedures, 
independent ofthe authority issuing the determination, which can effect the modification 
or reversal of the determination; 
(i) all information which is by nature confidential or which is provided on a confidential 
basis for the purpose ofthe application of rules of origin is treated as strictly confidential 
by the authorities concerned, which shall not disclose it without the specific permission 
of the person or government providing such information, except to the extent that it 
may be required to be disclosed in the context of judicial proceedings. 
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PART III 
PROCEDURAL ARRANGEMENTS ON NOTIFICATION, REVIEW, 
CONSULTATION AND DISPUTE SETTLEMENT 
Article 4 
Institutions 
1. There is hereby esublished a Committee on Rules of Origin (referred to in this Agreement 
as "the Committee ") composed ofthe represenutives from each ofthe Members. The Committee shall 
elect its own Chairman and shall meet as necessary, but not less than once a year, for the purpose 
of affording Members the opportunity to consult on matters relating to the operation of Parts 1. II, III 
and IV or the furtherance of the objectives set out in these Parts and to carry out such other 
responsibilities assigned to it under this Agreement or by the Council for Trade in Goods. Where 
appropriate, the Committee shall request information and advice from the Technical Committee referred 
to in paragraph 2 on matters related to this Agreement. The Committee may also request such other 
work from the Technical Committee as it considers appropriate for the furtherance of the above-
mentioned objectives of this Agreement. The WTO Secretariat shall act as the secretariat to the 
Committee. 
2. There shall be established a Technical Committee on Rules of Origin (referred to in this 
Agreement as "the Technical Committee") under the auspices of the Customs Co-operation Council 
.(CCC) as set out in Annex I. The Technical Committee shall carry out the technical work called for 
in Part IV and prescribed in Annex I. Where appropriate, the Technical Committee shall request 
information and advice from the Committee on matters related to this Agreement. The Technical 
Committee may also request such other work from the Committee as it considers appropriate for the 
furtherance ofthe above-mentioned objectives ofthe Agreement. The CCC Secretariat shall act as 
the secretariat to the Technical Committee. 
Article 5 
Information and Procedures for Modification 
and Introduction of New Rules of Origin 
1. Each Member shall provide to the Secretariat, within 90 days after the date of entry into force 
ofthe WTO Agreement for it, its rules of origin, judicial decisions, and administrative rulings of general 
application relating to rules of origin in effect on that date If by inadvertence a rule of origin has 
not been provided, the Member concerned shall provide it immediately after this fact becomes known. 
Lists of information received and available with the Secretariat shall be circulated to the Members by 
the Secretariat. 
2. During the period referred to in Article 2, Members introducing modifications, other than 
de minimis modifications, to their rules of origin or introducing new rules of origin, which, for the 
purpose of this Article, shall include any rule of origin referred to in paragraph 1 and not provided 
to the Secretariat, shall publish a notice to that effect at least 60 days before the entry into force of 
the modified or new rule in such a manner as to enable interested parties to become acquainted with 
the intention to modify a rule of origin or to introduce a new rule of origin, unless exceptional 
circumstances arise or threaten to arise for a Member. In these exceptional cases, the Member shall 
publish the modified or new rule as soon as possible. 
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Article 6 
Review 
1. The Committee shall review annually the implementation and operation of Parts II and III of 
this Agreement having regard to its objeaives. The Committee shall annually inform the Council for 
Trade in Goods of developments during the period covered by such reviews. 
2. The Committee shall review the provisions of Parts I, II and III and propose amendments as 
necessary to reflect the results of the harmonization work programme. 
3. The Committee, in cooperation with the Technical Committee, shall set up a mechanism to 
consider and propose amendments to the results of the harmonization work programme, taking into 
.account the objectives and principles set out in Article 9. This may include instances where the rules 
need to be made more operational or need to be updated to uke into account new production processes 
as affected by any technological change. 
Article 7 
Consultation 
The provisions of Article XXII of GATT 1994, as elaborated and applied by the Dispute 
Settlement Understanding, are applicable to this Agreement. 
Article 8 
Dispute Settlement 
The provisions of Article XXIII of GATT 1994, as elaborated and applied by the Dispute 
Settlement Understanding, are applicable to this Agreement. 
PART IV 
HARMONIZATION OF RULES OF ORIGIN 
Article 9 
Objectives and Principles 
1. With the objectives of harmonizing rules of origin and, inter alia, providing more certainty 
in the conduct of world trade, the Ministerial Conference shall undertake the work programme set 
out below in conjunction with the CCC, on the basis of the following principles: 
(a) rules of origin should be applied equally for all purposes as set out in Article 1 ; 
(b) rules of origin should provide for the country to be determined as the origin of a 
particular good to be either the country where the good has been wholly obuined or, 
when more than one country' is concerned in the production of the good, the country 
where the last substantial transformation has been carried out; 
Page 215 
(c) rules of origin should be objective, understandable and predicuble; 
(d) notwithstanding the measure or instrument to which they may be linked, rules of origin 
should not be used as instruments to pursue trade objectives directly or indirectly. 
They, should not themselves create restrictive, distorting or disruptive effects on 
international trade. They should hot pose unduly strict requirements or require the 
fulfilment of a certain condition not relating to manufacturing or processing as a 
prerequisite for the determination of the country of origin. However, costs not directly 
related to manufacturing or processing may be included for purposes ofthe application 
of an ad valorem percenuge criterion; 
(e) rules of origin should be administrable in a consistent, uniform, impartial and reasonable 
manner; 
(f) rules of origin should be coherent; 
(g) rules of origin should be based on a positive standard. Negative standards may be 
used to clarify a positive standard. 
Work Programme 
(a) The work programme shall be initiated as soon after the entry into force of the WTO 
Agreement as possible and will be completed within three years of initiation. 
(b) The Committee and the Technical Committee provided for in Article 4 shall be the 
appropriate bodies to conduct this work. 
(c) To provide for detailed input by the CCC, the Committee shall request the Technical 
Committee to provide its interpretations and opinions resulting from the work described 
below on the basis ofthe principles listed in paragraph 1. To ensure timely completion 
of the work programme for harmonization, such work shall be conducted on a product 
sector basis, as represented by various chapters or sections ofthe Harmonized System 
(HS) nomenclature. 
(i) Wholly Obtained and Minimal Operations or Processes 
The Technical Committee shall develop harmonized definitions of: 
the goods that are to be considered as being wholly obuined in one country. 
This work shall be as detailed as possible; 
minimal operations or processes that do not by themselves confer origin to 
a good. 
The results of this work shall be submitted to the Committee within three months of 
receipt of the request from the Committee. 
(ii) Substantial Transformation - Change in Tariff Classification 
The Technical Committee shall consider and elaborate upon, on the basis of 
the criterion of substantial transformation, the use of change in tariff subheading 
or heading when developing rules of origin for particular products or a product 
Page 216 
sector and, if appropriate, the minimum change within the nomenclature that 
meets this criterion. 
The Technical Committee shall divide the above work on a product basis taking 
into account the chapters or sections of the HS nomenclature, so as to submit 
results of its work to the Committee at least on a quarterly basis. The Technical 
Committee shall complete the above work within one year and three months 
from receipt of the request of the Committee. 
(iii) Substantial Transformation - Supplementary Criteria 
Upon completion of the work under subparagraph (ii) for each product sector or 
individual product category where the exclusive use ofthe HS nomenclature does not 
allow for the expression of substantial transformation, the Technical Committee: 
shall consider and elaborate upon, on the basis ofthe criterion of substantial 
transformation, the use, in a supplementary or exclusive manner, of other 
requirements, including ad valorem percentages4 and/or manufacturing or 
processing operations5, when developing rules of origin for particular products 
or a product sector; 
may provide explanations for its proposals; 
shall divide the above work on a product basis taking into account the chapters 
or sections of the HS nomenclature, so as to submit results of its work to the 
Committee at least on a quarterly basis. The Technical Committee shall 
complete the above work within two years and three months of receipt of the 
request from the Committee. 
Role of the Committee 
3. On the basis of the principles listed in paragraph 1: 
(a) the Committee shall consider the interpreutions and opinions of the Technical Committee 
periodically in accordance with the time-frames provided in subparagraphs (i). (ii) 
and (iii) of paragraph 2(c) with a view to endorsing such interpretations and opinions. 
The Committee may request the Technical Committee to refine or elaborate its work 
and/or to develop new approaches. To assist the Technical Committee, the Committee 
should provide its reasons for requests for additional work and, as appropriate, suggest 
alternative approaches; 
(b) upon completion of all the work identified in subparagraphs (i), (ii) and (iii) of 
paragraph 2(c), the Committee shall consider the results in terms of their overall 
coherence. 
4If the ad valorem criterion is prescribed, the method for calculating this percenuge shall also be indicated in the rules 
of origin. 
*If the criterion of manufacturing or processing operation is prescribed, the operation that confers origin on the product 
concerned shall be precisely specified. 
Page 217 
Results of the Harmonization Work Programme and Subsequent Work 
4. The Ministerial Conference shall establish the results of the harmonization work programme 
in an annex as an integral part of this Agreement.6 The Ministerial Conference shall esublish a time­
frame for the entry into force of this annex. 
ANNEX I 
TECHNICAL COMMITTEE ON RULES OF ORIGIN 
Responsibilities 
1. The ongoing responsibilities of the Technical Committee shall include the following: 
(a) at the request of any member ofthe Technical Committee, to examine specific technical 
problems arising in the day-to-day administration ofthe rules of origin of Members 
and to give advisory opinions on appropriate solutions based upon the facts presented: 
(b) to furnish information and advice on any matters concerning the origin determination 
of goods as may be requested by any Member or the Committee; 
(c) to prepare and circulate periodic reports on the technical aspects of the. operation and 
status of this Agreement; and 
(d) to review annually the technical aspects ofthe implementation and operation of Parts II 
and III. 
2. The Technical Committee shall exercise such other responsibilities as the Committee may request 
of it. 
3. The Technical Committee shall attempt to conclude its work on specific matters, especially 
those referred to it by Members or the Committee, in a reasonably short period of time. 
Representation 
4. Each Member shall have the right to be represented on the Technical Committee. Each Member 
may nominate one delegate and one or more alternates to be its representatives on the Technical 
Committee. Such a Member so represented on the Technical Committee is hereinafter referred to as 
a "member" of the Technical Committee. Representatives of members of the Technical Committee 
may be assisted by advisers at meetings of the Technical Committee. The WTO Secretariat may also 
attend such meetings with observer sutus. 
5. Members of the CCC which are not Members of the WTO may be represented at meetings 
of the Technical Committee by one delegate and one or more alternates. Such represenutives shall 
attend meetings of the Technical Committee as observers. 
6At the same time, consideration shall be given to arrangements concerning the settlement of disputes relating to customs 
classification. 
Page 218 
6. Subject to the approval of the Chairman of the Technical Committee, the Secreury-General 
of the CCC (referred to in this Annex as "the Secretary-General") may invite representatives of 
governments which are neither Members of the WTO nor members of the CCC and representatives 
of international governmenul and trade organizations to attend meetings of the Technical Committee 
as observers. 
7. Nominations of delegates, alternates and advisers to meetings ofthe Technical Committee shall 
be made to the Secretary-General. 
Meetings . 
8. The Technical Committee shall meet as necessary, but not less than once a year. 
Procedures 
9. The Technical Committee shall elect its own Chairman and shall establish its own procedures. 
ANNEX II 
COMMON DECLARATION WITH REGARD TO PREFERENTIAL RULES OF ORIGIN 
1. Recognizing that some Members apply preferential rules.of origin, distinct from non-preferential 
rules of origin, the Members hereby agree as follows. 
2. For the purposes of this Common Declaration, preferential rules of origin shall be defined 
as those laws, regulations and administrative determinations of general application applied by any Member 
to determine whether goods qualify for preferential treatment under contractual or autonomous trade 
régimes leading to the granting of tariff preferences going beyond the application of paragraph 1 of 
Article I of GATT 1994. 
3. The Members agree to ensure that: 
(a) when they issue administrative determinations of general application, the requirements 
to be fulfilled are clearly defined. In particular: 
(i) in cases where the criterion of change of tariff classification is applied, such 
a preferential rule of origin, and any exceptions to the rule, must clearly specify 
the subheadings or headings within the tariff nomenclature that are addressed 
by the rule; 
(ii) in cases where the ad valorem percentage criterion is applied, the method for 
calculating this percentage shall also be indicated in the preferential rules of 
origin; 
(iii) in cases where the criterion of manufacturing or processing operation is 
prescribed, the operation that confers preferential origin shall be precisely 
specified; 
(b) their preferential rules of origin are based on a positive standard. Preferential rules 
of origin that state what does not confer preferential origin (negative standard) are 
Page 219 
permissible as part of a clarification of a positive standard or in individual cases where 
a positive determination of preferential origin is not necessary; 
(c) their laws, regulations, judicial decisions and administrative rulings of general 
application relating to preferential rules of origin are published as if they were subject 
to, and in accordance with, the provisions of paragraph 1 of Article X of GATT 1994; 
(d) upon request of an exporter, importer or any person with a justifiable cause, assessments 
ofthe preferential origin they would accord to a good are issued as soon as possible 
but no later than 150 days7 after a request for such an assessment provided that all 
necessary elements have been submitted. Requests for such assessments shall be 
accepted before trade in the good concerned begins and may be accepted at any later 
point in time. Such assessments shall remain valid for three years provided that the 
facts and conditions, including the preferential rules of origin, under which they have 
been made remain comparable. Provided that the parties concerned are informed in 
advance, such assessments will no longer be valid when a decision contrary to the 
assessment is made in a review as referred to in subparagraph (0- Such assessments 
shall be made publicly available subject to the provisions of subparagraph (g); 
(e) when introducing changes to their preferential rules of origin or new preferential rules 
of origin, they shall not apply such changes retroactively as defined in, and without 
prejudice to. their laws or regulations; 
(fi any administrative action which they take in relation to the determination of preferential 
origin is reviewable promptly by judicial, arbitral or administrative tribunals or 
procedures, independent ofthe authority issuing the determination, which can effect 
the modification or reversal of the determination; 
(g) all information that is by nature confidential or that is provided on a confidential basis 
for the purpose of the application of preferential rules of origin is treated as strictly 
confidential by the authorities concerned, which shall not disclose it without the specific 
permission of the person or government providing such information, except to the extent 
that it may be required to be disclosed in the context of judicial proceedings. 
4. Members agree to provide to the Secreuriat promptly their preferential rules of origin, including 
a listing of the preferential arrangements to which they apply, judicial decisions, and administrative 
rulings of general application relating to their preferential rules of origin in effect on the date of entry 
into force of the WTO Agreement for the Member concerned. Furthermore, Members agree to provide 
any modifications to their preferential rules of origin or new preferential rules of origin as soon as 
possible to the Secreuriat. Lists of information received and available with the Secreuriat shall be 
circulated to the Members by the Secreuriat. 
'In respect of requests made during the first year from entry into force of the WTO Agreement, Members shall only 
be required to issue these assessments as soon as possible. 
Page 220 
Page 221 
AGREEMENT ON IMPORT LICENSING PROCEDURES 
Members, 
Having regard to the Multilateral Trade Negotiations; 
Desiring to further the objectives of GATT 1994; 
Taking into account the particular trade, development and financial needs of developing country 
Members; 
Recognizing the usefulness of automatic import licensing for certain purposes and that such 
licensing should not be used to restrict trade; 
Recognizing that import licensing may be employed to administer measures such as those adopted 
pursuant to the relevant provisions of GATT 1994; 
Recognizing the provisions of GATT 1994 as they apply to import licensing procedures; 
Desiring to ensure that import licensing procedures are not utilized in a manner contrary to 
the principles and obligations of GATT 1994; 
Recognizing that the flow of international trade could be impeded by the inappropriate use of 
import licensing procedures; 
Convinced that import licensing, particularly non-automatic import licensing, should be 
implemented in a transparent and predictable manner; 
Recognizing that non-automatic licensing procedures should be no more administratively 
burdensome than absolutely necessary to administer the relevant measure; 
Desiring to simplify, and bring transparency to, the administrative procedures and practices 
used in international trade, and to ensure the fair and equitable application and administration of such 
procedures and practices; 
Desiring to provide for a consultative mechanism and the speedy, effective and equitable 
resolution of disputes arising under this Agreement; 
Hereby agree as follows: 
Article 1 
General Provisions 
1. For the purpose of this Agreement, import licensing is defined as administrative procedures' 
used for the operation of import licensing régimes requiring the submission of an application or other 
documentation (other than that required for customs purposes) to the relevant administrative body as 
a prior condition for importation into the customs territory of the importing Member. 
'Those procedures referred to as "licensing" as well as other similar administrative procedures. 
Page 222 
2. Members shall ensure that the administrative procedures used to implement import licensing 
regimes are in conformity with the relevant provisions of GATT 1994 including its annexes and protocols, 
as interpreted by this Agreement, with a view to preventing trade distortions that may arise from an 
inappropriate operation of those procedures, taking into account the economic development purposes 
and financial and trade needs of developing country Members.2 
3. The rules for import licensing procedures shall be neutral in .application and administered in 
a fair and equitable manner. 
4. (a) The rules and all information concerning procedures for the submission of applications, 
including the eligibility of persons, firms and institutions to make such applications, the administrative 
body(ies) to be approached, and the lists of products subject to the licensing requirement shall be 
published, in the sources notified to the Committee on Import Licensing provided for in Article 4 
(referred to in this Agreement as "the Committee"), in such a manner as to enable governments3 and 
traders to become acquainted with them. Such publication shall uke place, whenever practicable. 21 
days prior to the effective date of the requirement but in all events not later than such effective date. 
Any exception, derogations or changes in or from the rules concerning licensing procedures or the 
list of products subject to import licensing shall also be published in the same manner and within the 
same time periods as specified above. Copies of these publications shall also be made available to 
the Secretariat. 
(h) Members which wish to make comments in writing shall be provided the opportunity 
to discuss these comments upon request. The concerned Member shall give due consideration to these 
comments and results of discussion. 
5. Application forms and, where applicable, renewal forms shall be as simple as possible. Such 
documents and information as are considered strictly necessary for the proper functioning ofthe licensing 
régime may be required on application. 
6 Application procedures and. where applicable, renewal procedures shall be as simple as possible. 
Applicants shall be allowed a reasonable period for the submission of licence applications. Where 
there is a closing date. this period should be at least 21 days with provision for extension in circumstances 
where insufficient applications have been received within this period. Applicants shall have to approach 
only one administrative body in connection with an application. Where it is strictly indispensable to 
approach more than one administrative body, applicants shall not need to approach more than three 
administrative bodies 
7 No application shall be refused for minor documentation errors which do not alter basic data 
contained therein. No penalty greater than necessary to serve merely as a warning shall be imposed 
in respect of any omission or mistake in documentation or procedures which is obviously made without 
fraudulent intent or gross negligence. 
8 Licensed imports shall not be refused for minor variations in value, quantity or weight from 
the amount designated on the licence due to differences occurring during shipment, differences incidental 
to bulk loading and other minor differences consistent with normal commercial practice.. 
•Nothing in this Agreement shall he taken as implying that the basis, scope or duration of a measure being implemented 
h> a licensing procedure is subject to question under this Agreement. 
'For the purpose of this Agreement, the term "governments" is deemed to include the competent authorities ofthe European 
Communities 
Page 223 
9. The foreign exchange necessary to pay for licensed imports shall be made available to licence 
holders on the same basis as to importers of goods not requiring import licences. 
10. With regard to security exceptions, the provisions of Article XXI of GATT 1994 apply. 
11. The provisions of this Agreement shall not require any Member to disclose confidential 
information which would impede law enforcement or otherwise .be contrary to the public interest or 
would prejudice the legitimate commercial interests of particular enterprises, public or private. 
Article 2 
Automatic Import Licensing4 
1. Automatic import licensing is defined as import licensing where approval of the application 
is granted in all cases, and which is in accordance with the requirements of paragraph 2(a). 
2. The following provisions5, in addition to those in paragraphs 1 through 11 of Article 1 and 
paragraph 1 of this Article, shall apply to automatic import licensing procedures: 
(a) automatic licensing procedures shall not be administered in such a manner as to have 
restricting effects on imports subject to automatic licensing. Automatic licensing 
procedures shall be deemed to have trade-restricting effects unless, inter alia: 
(i) any person, firm or institution which fulfils the legal requirements of the 
importing Member for engaging in import operations involving products subject 
to automatic licensing is equally eligible to apply for and to obtain import 
licences; 
(ii) applications for licences may be submitted on any working day prior to the 
customs clearance of the goods; 
(iii ) applications for licences when submitted in appropriate and complete form are 
approved immediately on receipt, to the extent administratively feasible, but 
within a maximum of 10 working days; 
(b) Members recognize that automatic import licensing may be necessary whenever other 
appropriate procedures are not available. Automatic import licensing may be mainuined 
as long as the circumstances which gave rise to its introduction prevail and as long 
as its underlying administrative purposes cannot be achieved in a more appropriate 
wav 
Those impon licensing procedures requiring a security which have no restrictive effects on imports are to be considered 
as failing within the scope of paragraphs 1 and 2. 
'A developing country Member, other than a developing country Member which was a Party to the Agreement on Impon 
Licensing Procedures done on 12 April 1979. which has specific difficulties with the requirements of subparagraphs (a)(ii) 
and (a)(iii) may. upon notification to the Committee, delay the application of these subparagraphs by not more than two years 
from the date of entry into force of the WTO Agreement for such Member. 
Page 224 
Article 3 
Non-Automatic Import Licensing 
1. The following provisions, in addition to those in paragraphs 1 through 11 of Anicle 1, shall 
apply to non-automatic import licensing procedures. Non-automatic import licensing procedures are 
defined as import licensing not falling within the definition contained in paragraph 1 of Article 2. 
2. Non-automatic licensing shall not have trade-restrictive or -distortive effects on imports additional 
to those caused by the imposition of the restriction. Non-automatic licensing procedures shall correspond 
in scope and duration to the measure they are used to implement, and shall be no more administratively 
burdensome than absolutely necessary to administer the measure. 
3. In the case of licensing requirements for purposes other than the implementation of quantitative 
restrictions, Members shall publish sufficient, information for other Members and traders to know the 
basis for granting and/or allocating licences. 
4. Where a Member provides the possibility for persons, firms or institutions to request exceptions 
or derogations from a licensing requirement, it shall include this fact in the information published under 
paragraph 4 of Article 1 as well as information on how to make such a request and, to the extent possible. 
an indication of the circumstances under which requests would be considered. 
5. (a) • Members shall provide, upon the request of any Member having an interest in the trade 
in the product concerned, all relevant information concerning: 
(i) the administration ofthe restrictions; 
(ii) the import licences granted over a recent period; 
(iii) the distribution of such licences among supplying countries; 
(iv) where practicable, import statistics (i.e. value and/or volume) with respect 
to the products subject to import licensing. Developing country Members would 
not be expected to take additional administrative or financial burdens on this 
account; 
(b) Members administering quotas by means of licensing shall publish the overall amount 
of quotas to be applied by quantity and/or value, the opening and closing dates of quotas. 
and any change thereof, within the time periods specified in paragraph 4 of Article 1 
and in such a manner as to enable governments and traders to become acquainted with 
them; 
(c) in the case of quotas allocated among supplying countries, the Member applying the 
restrictions shall promptly inform all other Members having an interest in supplying 
the product concerned of the shares in the quota currently allocated, by quantity or 
value, to the various supplying countries and shall publish this information within the 
time periods specified in paragraph 4 of Article 1 and in such a manner as to enable 
governments and traders to become acquainted with them; 
(d) where situations arise which make it necessary to provide for an early opening date 
of quotas, the information referred to in paragraph 4 of Article 1 should be published 
Page 225 
within the time periods specified in paragraph 4 of Article 1 and in such a manner 
as to enable governments and traders to become acquainted with them; 
(e) any person, firm or institution which fulfils the legal and administrative requirements 
pf the importing Member shall be equally eligible to apply and to be considered for 
a licence. If the licence application is not approved, the applicant shall, on request, 
be given the reason therefor and shall have a right of appeal or review in accordance 
with the domestic legislation or procedures of the importing Member; 
(f) the period for processing applications shall, except when not possible for reasons outside 
the control of the Member, not be longer than 30 days if applications are considered 
as and when received, i.e. on a first-come first-served basis, and no longer than 60 
days if all applications are considered simultaneously. In the latter case, the period 
for processing applications shall be considered to begin on the day following the closing 
date of the announced application period; 
(g) the period of licence validity shall be of reasonable duration and not be so short as 
to preclude imports. The period of licence validity shall not preclude imports from 
distant sources, except in special cases where imports are necessary to meet unforeseen 
short-term requirements; 
(h) . when administering quotas. Members shall not prevent importation from being effected 
in accordance with the issued licences, and shall not discourage the full utilization of 
quotas; 
(i) when issuing licences. Members shall uke into account the desirability of issuing 
licences for products in economic quantities; 
(j) in allocating licences, the Member should consider the import performance of the 
applicant. In this regard, consideration should be given as to whether licences issued 
to applicants in the past have been fully utilized during a recent representative period. 
In cases where licences have not been fully utilized, the Member shall examine the 
reasons for this and take these reasons into consideration when allocating new licences. 
Consideration shall also be given to ensuring a reasonable distribution of licences to 
new importers, taking into account the desirability of issuing licences for products in 
economic quantities. In this regard, special consideration should be given to those 
importers importing products originating in developing country Members and. in 
particular, the least-developed country Members; 
(k) in the case of quotas administered through licences which are not allocated among 
supplying countries, licence holders" shall be free to choose the sources of imports. 
In the case of quotas allocated among supplying countries, the licence shall clearly 
stipulate the country or countries; 
(1) in applying paragraph 8 of Article 1, compensating adjustments may be made in future 
licence allocations where imports exceeded a previous licence level. 
•Sometimes referred to as "quota holders". 
Page 226 
Article 4 
Institutions 
There is hereby established a Committee on Import Licensing composed of representatives 
from each ofthe Members. The Committee shall elect its own Chairman and Vice-Chairman and shall 
meet as necessary for the purpose of affording Members the opportunity of consulting on any matters 
relating to the operation of this Agreement or the furtherance of its objectives. 
Article 5 
Notification 
1. Members which institute licensing procedures or changes in these procedures shall notify the 
Committee of such within 60 days of publication. 
2. Notifications of the institution of import licensing procedures shall include the following 
information: 
(a) list of products subject to licensing procedures; 
(b) contact point for information on eligibility; 
(c) administrative body(ies) for submission of applications; 
(d) date and name of publication where licensing procedures are published; 
(e) indication of whether the licensing procedure is automatic or non-automatic according 
to definitions contained in Articles 2 and 3; 
(0 in the case of automatic import licensing procedures, their administrative purpose; 
(g) in the case of non-automatic import licensing procedures, indication of the measure 
being implemented through the licensing procedure; and 
(h) expected duration of the licensing procedure if this can be estimated with some 
probability, and if not. reason why this information cannot be provided. 
3. Notifications of changes in import licensing procedures shall indicate the elements mentioned 
above, if changes in such occur. 
4. Members shall notify the Committee of the publication(s) in which the information required 
in paragraph 4 of Article 1 will be published. 
5. Any interested Member which considers that another Member has not notified the institution 
of a licensing procedure or changes therein in accordance with the provisions of paragraphs 1 through 3 
may bring the matter to the attention of such other Member. If notification is not made promptly 
thereafter, such Member may itself notify the licensing procedure or changes therein, including all 
relevant and available information. 
Page 227 
Article 6 
Consultation and Dispute Settlement 
Consulutions and the settlement of disputes with respect to any matter affecting the operation 
of this Agreement shall be subject to the provisions of Articles XXII and XXIII of GATT 1994, as 
elaborated and applied by the Dispute Settlement Understanding. 
Article 7 
Review 
1. The Committee shal 1 review as necessary, but at least once every two years, the implementation 
and operation of this Agreement, taking into account the objectives thereof, and the rights and obligations 
contained therein. 
2. As a basis for the Committee review, the Secretariat shall prepare a factual report based on 
information provided under Article 5, responses to the annual questionnaire on import licensing 
procedures* and other relevant reliable information which is available to it. This report shall provide 
a synopsis of the aforementioned information, in particular indicating any changes or developments 
during the period under review, and including any other information as agreed by the Committee. 
3 Members undertake to complete the annual questionnaire on import licensing procedures promptly 
and in full. 
4 The Committee shall inform the Council for Trade in Goods of developments during the period 
covered bv such reviews. 
Article 8 
Final Provisions 
Reservations 
1 Reservations may not be entered in respect of any ofthe provisions of this Agreement without 
the consent of the other Members. 
Domestic Legislation 
2. (a) Each Member shall ensure, not later than the date of entry into force of the WTO 
Agreement for it, the conformity of its laws, regulations and administrative procedures 
. with the provisions of this Agreement. 
(b) Each Member shall inform the Committee of any changes in its laws and regulations 
relevant to this Agreement and in the administration of such laws and regulations. 
'Originally circulated as GATT 1947 document L/3515 of 23 March 1971. 
Page 228 
Page 229 
AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES 
Members hereby agree as follows: 
PART I: GENERAL PROVISIONS 
Article 1 
Definition of a Subsidy 
1.1 For the purpose of this Agreement, a subsidy shall be deemed to exist if: 
(a)(1) there is a financial contribution by a government or any public body within the territory 
of a Member (referred to in this Agreement as "government"), i.e. where: 
(i) a government practice involves a direct transfer of funds (e.g. grants, loans, 
and equity infusion), potential direct transfers of funds or liabilities (e.g. loan 
guarantees); 
(ii) "government revenue that is otherwise due is foregone or not collected (e.g. 
fiscal incentives such as tax credits)1; 
(iii) a government provides goods or services other than general infrastructure, 
or purchases goods; 
(iv) a government makes payments to a funding mechanism, or entrusts or directs 
a private body to carry out one or more of the type of functions illustrated 
in (i) to (iii) above which would normally be vested in the government and 
the practice, in no real sense, differs from practices normally followed by 
governments; 
or 
(a)(2) thereisany form ofincome or price support in the sense of Article XVIofGATT 1994; 
and 
(b) a benefit is thereby conferred. 
1.2 A subsidy as defined in paragraph 1 shall be subject to the provisions of Part II or shall be 
subject to the provisions of Part III or V only if such a subsidy is specific in accordance with the 
provisions of Article 2. 
'In accordance with the provisions of Article XVI of GATT 1994 (Note to Article XVI) and the provisions of Annexes 
I through m of this Agreement, the exemption of an exponed product from duties or taxes borne by the like product when 
destined for domestic consumption, or the remission of such duties or taxes in amounts not in excess of those which have 
accrued, shall not be deemed to be a subsidy. 
Page 230 
Article 2 
Specificity 
2.1 In order to determine whether a subsidy, as defined in paragraph 1 of Article 1, is specific 
to an enterprise or industry or group of enterprises or industries (referred to in this Agreement as "certain 
enterprises") within the jurisdiction ofthe granting authority, the following principles shall apply: 
(a) Where the granting authority, or the legislation pursuant to which the granting authority 
operates, explicitly limits access to a subsidy to certain enterprises, such subsidy shall 
be specific. 
(b j Where the granting authority, or the legislation pursuant to which the granting authority 
operates, establishes objective criteria or conditions2 governing the eligibility for, and 
the amount of, a subsidy, specificity shall not exist, provided that the eligibility is 
automatic and that such criteria and conditions are strictly adhered to. The criteria 
or conditions must be clearly spelled out in law, regulation, or other official document, 
so as to be capable of verification. 
(c) If, notwithstanding any appearance of non-specificity resulting from the application 
of the principles laid down in subparagraphs (a) and (b), there are reasons to believe 
that the subsidy may in fact be specific, other factors may be considered. Such factors 
are. use of a subsidy programme by a limited number of certain enterprises, 
predominant use by certain enterprises, the granting of disproportionately large amounts 
of subsidy to certain enterprises, and the manner in which discretion has been exercised 
by the granting authority in the decision to grant a subsidy.3 In applying this 
subparagraph, account shall be taken of the extent of diversification of economic 
activities within the jurisdiction ofthe granting authority, as well as ofthe length of 
time during which the subsidy programme has been in operation. 
2.2 A subsidy which is limited to certain enterprises located within a designated geographical region 
within the jurisdiction of the granting authority shall be specific. It is understood that the setting or 
change of generally applicable tax rates by all levels of government entitled to do so shall not be deemed 
to be a specific subsidy for the purposes of this Agreement. 
2.3 Any subsidy falling under the provisions of Article 3 shall be deemed to be specific. 
2.4 Any determination of specificity under the provisions of mis Article shall be clearly substantiated 
on the basis of positive evidence. 
:Objective criteria or conditions, as used herein, mean criteria or conditions which are neutral, which do not favour certain 
enterprises over others, and which are economic in nature and horizonui in application, such as number of employees or 
size of enterprise. 
'In this regard, in particular, information on the frequency with which applications for a subsidy are refused or approved 
and the reasons for such decisions shall be considered. 
Page 231 
PART II: PROHIBITED SUBSIDIES 
Article 3 . 
Prohibition 
3.1 Except as provided in the Agreement on Agriculture, the following subsidies, within the meaning 
of Article 1, shall be prohibited: 
(a) subsidies contingent, in law or in fact4, whether solely or as one of several other 
conditions, upon export performance, including those illustrated in Annex I5; 
(b) subsidies contingent, whether solely or as one of several other conditions, upon the 
use of domestic over imported goods. 
3.2 A Member shall neither grant nor maintain subsidies referred to in paragraph 1. 
Article 4 
Remedies 
4.1 Whenever a Member has reason to believe that a prohibited subsidy is being granted or 
maintained by another Member, such Member may request consultations with such other Member. 
4.2 A request for consultations under paragraph 1 shall include a statement of available evidence 
with regard to the existence and nature of the subsidy in question. 
4.3 Upon request for consulutions under paragraph 1, the Member believed to be granting or 
maintaining the subsidy in question shall enter into such consultations as quickly as possible. The 
purpose of the consultations shall be to clarify the facts of the simation and to arrive at a mutually 
agreed solution. 
4.4 If no mutually agreed solution has been reached within 30 days6 ofthe request for consulutions, 
any Member party to such consulutions may refer the matter to the Dispute Settlement Body ("DSB") 
for the immediate establishment of a panel, unless the DSB decides by consensus not to establish a 
panel. 
4.5 Upon its establishment, the panel may request the assistance ofthe Permanent Group of Experts7 
(referred to in this Agreement as the "PGE") with regard to whether the measure in question is a 
prohibited subsidy. If so requested, the PGE shall immediately review the evidence with regard to 
This standard is met when the facts demonstrate that the granting of a subsidy, without having been made legally contingent 
upon export performance, is in fact tied to actual or anticipated exportation or export earnings. The mere fact that a subsidy 
is granted to enterprises which export shall not for that reason alone be considered to be an export subsidy within the meaning 
of this provision. 
'Measures referred to in Annex I as not constituting export subsidies shall not be prohibited under this or any other provision 
of this Agreement. 
'Any time-periods mentioned in this Article may be extended by mutual agreement. 
'As established in Article 24. 
Page 232 
the existence and nature of the measure in question and shall provide an opportunity for the Member 
applying or mainuining the measure to demonstrate that the measure in question is not a prohibited 
subsidy. The PGE shall report its conclusions to the panel within a time-limit determined by the panel. 
The PGE's conclusions on the issue of whether or not the measure in question is a prohibited subsidy 
shall be accepted by the panel without modification. 
4.6 The panel shall submit its final report to the parties to the dispute. The report shall be circulated 
to all Members within 90 days ofthe date ofthe composition and the esublishment ofthe panel's terms 
of reference. 
4.7 If the measure in question is found to be a prohibited subsidy, the panel shall recommend that 
the subsidizing Member withdraw the subsidy without delay. In this regard, the panel shall specify' 
in*its recommendation the time-period within which the measure must be withdrawn. 
4.8 Within 30 days ofthe issuance ofthe panel's report to all Members, the report shall be adopted 
by the DSB unless one of the parties to the dispute formally notifies the DSB of its decision to appeal 
or the DSB decides by consensus not to adopt the report. 
4.9 Where a panel report is appealed, the Appellate Body shall issue its decision within 30 days 
from the date when the party to the dispute formally notifies its intention to appeal. When the Appellate 
Body considers that it cannot provide its report within 30 days, it shall inform the DSB in writing of 
the reasons for the delay together with an estimate ofthe period within which it will submit its report. 
In no case shall the proceedings exceed 60 days. The appellate report shall be adopted by the DSB 
and unconditionally accepted by the parties to the dispute unless the DSB decides by consensus not 
to adopt the appellate report within 20 days following its issuance to the Members.8 
4.10 In the event the recommendation ofthe DSB is not followed within the time-period specified 
by the panel, which shall commence from the date of adoption ofthe panel's report or the Appellate 
Body's report, the DSB shall grant authorization to the complaining Member to take appropriate* 
countermeasures, unless the DSB decides by consensus to reject the request. 
4.11 In the event a party to the dispute requests arbitration under paragraph 6 of Article 22 of the 
Dispute Settlement Understanding ("DSU"), the arbitrator shall determine whether the countermeasures 
are appropriate.1" 
4.12 For purposes of disputes conducted pursuant to this Article,^except for time-periods specifically 
prescribed in this Article, time-periods applicable under the DSU for the conduct of such disputes shall 
be half the time prescribed therein. 
'If a meeting of the DSB is not scheduled during this period, such a meeting shall be held for this purpose. 
This expression is not meant to allow countermeasures that are disproportionate in light of the fact that the subsidies 
dealt with under these provisions are prohibited. 
"This expression is not meant to allow countermeasures that are disproportionate in light of the fact that the subsidies 
dealt with under these provisions are prohibited. 
Page 233 
PART HI: ACTIONABLE SUBSIDIES 
Article 5 
Adverse Effects 
No Member should cause, through the use of any subsidy referred to in paragraphs 1 and 2 
of Article 1, adverse effects to the interests of other Members, i.e.: 
(a) injury to the domestic industry of another Member11; 
(b) nullification or impairment of benefits accruing directly or indirectly to other Members 
under GATT 1994 in particular the benefits of concessions bound under Article II of 
GATT 1994'2; 
(c) serious prejudice to the interests of another Member.13 
This Article does not apply to subsidies maintained on agricultural products as provided in Article 13 
of the Agreement on Agriculture. 
Article 6 
Serious Prejudice 
6.1 Serious prejudice in the sense of paragraph (c) of Article 5 shall be deemed to exist in the case 
of: 
(a) the total ad valorem subsidization14 of a product exceeding 5 per cent15; 
(b) subsidies to cover operating losses sustained by an industry; 
(c) subsidies to cover operating losses sustained by an enterprise, other than one-time 
measures which are non-recurrent and cannot be repeated for that enterprise and which 
are given merely to provide time for the development of long-term solutions and to 
avoid acute social problems; 
"The term 'injury to the domestic industry* is used here in the same sense as it is used in Part V. 
,2The term 'nullification or impairment" is used in this Agreement in the same sense as it is used in the relevant provisions 
of GATT 1994. and the existence of such nullification or impairment shall be established in accordance with the practice 
of application of these provisions. 
l,The term "serious prejudice to the interests of another Member" is used in this Agreement in the same sense as it is 
used in paragraph 1 of Article XVI of GATT 1994. and includes threat, of serious prejudice. 
'•The toul ad valorem subsidization shall be calculated in accordance with the provisions of Annex IV. 
"Since it is anticipated that civil aircraft will be subject to specific multilateral rules, the threshold in this subparagraph 
does not apply to civil aircraft. 
Page 234 
(d) direct forgiveness of debt, i.e. forgiveness of government-held debt, and grants to cover 
debt repayment.16 
6.2 Notwithstanding the provisions of paragraph 1, serious prejudice shall not be found if the 
subsidizing Member demonstrates that the subsidy in question has not resulted in any of the effects 
enumerated in paragraph 3. 
6.3 Serious prejudice in the sense of paragraph (c) of Article 5 may arise in any case where one 
or several of the following apply: 
(a) the effect ofthe subsidy is to displace or impede the imports of a like product of another 
Member into the market of the subsidizing Member; 
(b) the effect of the subsidy is to displace or impede the exports of a like product of another 
Member from a third country market; 
(c) the effect of the subsidy is a significant price undercutting by the subsidized product 
as compared with the price of a like product of another Member in the same market 
or significant price suppression, price depression or lost sales in the same market: 
(d> the effect of the subsidy is an increase in the world market share of the subsidizing 
Member in a particular subsidized primary product or commodity17 as compared to 
the average share it had during the previous period of three years and this increase 
follows a consistent trend over a period when subsidies have been granted. 
6.4 For the purpose of paragraph 3(b). the displacement or impeding of exports shall include any 
case in which, subject to the provisions of paragraph 7, it has been demonstrated that there has been 
a change in relative shares of the market to the disadvantage of the non-subsidized like product (over 
an appropriately representative period sufficient to demonstrate clear trends in the development ofthe 
market for the product concerned, which, in normal circumstances, shall be at least one year). "Change 
in relative shares of the market" shall include any ofthe following situations: (a) there is an increase 
in the market share of the subsidized product; (b) the market share of the subsidized product remains 
constant in circumstances in which, in the absence of the subsidy, it would have declined: (c) the 
market share of the subsidized product declines, but at a slower rate than would have been the case 
in the absence of the subsidy 
6.5 For the purpose of paragraph 3(c), price undercutting shall include any case in which such 
price undercutting has been demonstrated through a comparison of prices of the subsidized product 
with prices of a non-subsidized like product supplied to the same market. The comparison shall be 
made at the same level of trade and at comparable times, due account being taken of any other factor 
affecting price comparability. However, if such a direct comparison is not possible, the existence of 
price undercutting may be demonstrated on the basis of export unit values. 
6.6 Each Member in the market of which serious prejudice is alleged to have arisen shall, subject 
to the provisions of paragraph 3 of Annex V, make available to the parties to a dispute arising under 
Article 7. and to the panel established pursuant to paragraph 4 of Article 7, all relevant information 
l6Members recognize that where royalty-based financing for a civil aircraft programme is not being fully repaid due 
to the level of actual sales falling below the level of forecast sales, this does not in itself constitute serious prejudice for the 
purposes of this subparagraph. 
"Unless other multilaterally agreed specific rules apply to the trade in the product or commodity in question. 
Page 235 
that can be obuined as to the changes in market shares ofthe parties to the dispute as well as concerning 
prices of the products involved. 
6.7 Displacement or impediment resulting in serious prejudice shall not arise under paragraph 3 
where any of the following circumstances exist18 during the relevant period: 
(a) prohibition or restriction on exports of the like product from the complaining Member 
or on imports from the complaining Member into the third country market concerned; 
(b) decision by an importing government operating a monopoly of trade or sute trading 
in the product concerned to shift, for non-commercial reasons, imports from the 
complaining Member to another country or countries; 
(c) natural disasters, strikes, transport disruptions or other force majeure substantially 
affecting production, qualities, quantities or prices ofthe product available for export 
from the complaining Member; 
(d) existence of arrangements limiting exports from the complaining Member; 
(e) voluntary decrease in the availability for export of the product concerned from the 
complaining Member (including, inter alia, a situation where firms in the complaining 
Member have been autonomously reallocating exports of this product to new markets); 
(f) failure to conform to standards and other regulatory requirements in the importing 
country. 
6.8 In the absence of circumstances referred to in paragraph 7, the existence of serious prejudice 
should be determined on the basis of the information submined to or obuined by the panel, including 
information submitted in accordance with the provisions of Annex V. 
6.9 This Article does not apply to subsidies mainuined on agricultural products as provided in 
Anicle 13 of the Agreement on Agriculture. 
Article 7 
Remedies 
7.1 Except as provided in Article 13 of the Agreement on Agriculture, whenever a Member has 
reason to believe that any subsidy referred to in Article 1, granted or mainuined by another Member, 
results in injury to its domestic industry, nullification or impairment or serious prejudice, such Member 
may request consultations with such other Member. 
7.2 A request for consultations under paragraph 1 shall include a sutement of available evidence 
with regard to (a) the existence and nature of the subsidy in question, and (b) the injury caused to the 
'•The fact that certain circumstances are referred to in this paragraph does not, in itself, confer upon them any legal 
sutus in terms of either GATT 1994 or this Agreement. These circumstances must not be isolated, sporadic or otherwise 
insignificant. 
Page 236 
domestic industry, or the nullification or impairment, or serious prejudice19 caused to the interests of 
the Member requesting consulutions. 
7.3 Upon request for consulutions under paragraph 1, the Member believed to be granting or 
mainuining the subsidy practice in question shall enter into such consulutions as quickly as possible. 
Trie purpose of the consultations shall be to clarify the facts ofthe simation and to arrive at a mutually 
agreed solution. 
7.4 If consulutions do not result in a mutually agreed solution within 60 days20, any Member party 
to such consultations may refer the matter to the DSB for the establishment of a panel, unless the DSB 
decides by consensus not to establish a panel. The composition ofthe panel and its terms of reference 
shall be esublished within 15 days from the date when it is established. 
7.5 The panel shall review the matter and shall submit its final report to the parties to the dispute. 
The report shall be circulated to all Members within 120 days of the date of the composition and 
establishment of the panel's terms of reference. 
7.6 Within 30 days ofthe issuance ofthe panel's report to all Members, the report shall be adopted 
by the DSB21 unless one ofthe parties to the dispute formally notifies the DSB of its decision to appeal 
or the DSB decides by consensus not to adopt the report. 
7.7 Where a panel report is appealed, the Appellate Body shall issue its decision within 60 days 
from the date when the party to the dispute formally notifies its intention to appeal. When the Appellate 
Body considers that it cannot provide its report within 60 days, it shall inform the DSB in writing of 
the reasons for the delay together with an estimate ofthe period within which it will submit its report. 
In no case shall the proceedings exceed 90 days. The appellate report shall be adopted by the DSB 
and unconditionally accepted by the parties to the dispute unless the DSB decides by consensus not 
to adopt the appellate report within 20 days following its issuance to the Members.22 
7.8 Where a panel report or an Appellate Body report is adopted in which it is determined that 
any subsidy has resulted in adverse effects to the interests of another Member within the meaning of 
Anicle 5, the Member granting or maintaining such subsidy shall take appropriate steps to remove 
the adverse effects or shall withdraw the subsidy. 
7.9 In the event the Member has not taken appropriate steps to remove the adverse effects of the 
subsidy or withdraw the subsidy within six months from the date when the DSB adopts the panel report 
or the Appellate Body report, and in the absence of agreement on compensation, the DSB shall grant 
authorization to the complaining Member to take countermeasures, commensurate with the degree and 
nature ofthe adverse effects determined to exist, unless the DSB decides by consensus to reject the 
request. 
l9In the event that the request relates to a subsidy deemed to result in serious prejudice in terms of paragraph 1 of Anicle 6. 
the available evidence of serious prejudice may be limited to the available evidence as to whether the conditions of paragraph 1 
of Article 6 have been met or not. 
"Any time-periods mentioned in this Article may be extended by mutual agreement. 
"If a meeting of the DSB is not scheduled during this period, such a meeting shall be held for this purpose. 
•aIf a meeting of the DSB is not scheduled during this period, such a meeting shall be held for this purpose. 
Page 237 
7.10 In the event that a party to the dispute requests arbitration under paragraph 6 of Article 22 
of the DSU, the arbitrator shall determine whether the countermeasures are commensurate with the 
degree and nature of the adverse effects determined to exist. 
PART IV: NON-ACTIONABLE SUBSIDIES 
Article 8 
Identification of Non-Actionable Subsidies 
8.1 The following subsidies shall be considered as non-actionable23: 
(a) subsidies which are not specific within the meaning of Article 2; 
(b) subsidies which are specific within the meaning of Article 2 but which meet all of the 
conditions provided for in paragraphs 2(a), 2(b) or 2(c) below. 
8.2 Notwithstanding the provisions of Parts III and V. the following subsidies shall be non-actionable: 
(a) assistance for research activities conducted by firms or by higher education or research 
esublishments" on a contract basis with firms if:24 ^• 2b 
the assistance covers27 not more than 75 per cent of the costs of industrial research2" 
or 50 per cent of the costs of pre-competitive development activity2"-30; 
:,h is recognized that government assistance for various purposes is widely provided by Members and that the mere 
fact that such assistance may not qualify for non-actionable treatment under the provisions of this Article does not in itself 
restrict the ability of Members to provide such assistance. 
:*Since it is anticipated that civil aircraft will be subject to specific multilateral rules, the provisions of this subparagraph 
do not apply to that product 
"Not later than 18 months after the date of entry into force ofthe WTO Agreement, the Committee on Subsidies and 
Countervailing Measures provided for in Anicle 24 (referred to in this Agreement as "the Committee") shall review the 
operation of the provisions of subparagraph 2(a) with a view to making all necessary modifications to improve the operation 
of these provisions. In its consideration of possible modifications, the Committee shall carefully review the definitions of 
the categories set forth in this subparagraph in the light of the experience of Members in the operation of research programmes 
and the work in other relevant international institutions 
*The provisions of this Agreement do not apply to fundamental research activities independently conducted by higher 
education or research establishments. The term 'fundamental research" means an enlargement of general scientific and technical 
knowledge not linked to industrial or commercial objectives. 
rThe allowable levels of non-actionable assistance referred to in this subparagraph shall be established by reference to 
the toul eligible costs incurred over the duration of an individual project. 
MThe term "industrial research" means planned search or critical investigation aimed at discovery of new knowledge, 
with the objective that such knowledge may be useful in developing new products, processes or services, or in bringing about 
a significant improvement to existing products, processes or services. 
'The term "pre-compethive development activity" means the translation of industrial research findings into a plan, blueprint 
or design for new, modified or improved products, processes or services whether intended for sale or use, including the 
creation of a first prototype which would not be capable of commercial use. It may further include the conceptual formulation 
and design of products, processes or services alternatives and initial demonstration or pilot projects, provided that these same 
Page 238 
and provided that such assistance is limited exclusively to: 
(i) costs of personnel (researchers, technicians and other supporting suff employed 
exclusively in the research activity); 
(ii) costs of instruments, equipment, land and buildings used exclusively and 
permanently (except when disposed of on a commercial basis) for the research 
activity; 
(iii) costs of consultancy and equivalent services used exclusively for the research 
activity, including bought-in research, technical knowledge, patents, etc.; 
(iv) additional overhead costs incurred directly as a result ofthe research activity; 
(v) other running costs (such as those of materials, supplies and the like), incurred 
directly as a result of the research activity. 
(b) assistance to disadvantaged regions within the territory of a Member given pursuant 
to a general framework of regional development31 and non-specific (within the meaning 
of Article 2) within eligible regions provided that: 
(i) each disadvantaged region must be a clearly designated contiguous geographical 
area with a definable economic and administrative identity; 
(ii) the region is considered as disadvantaged on the basis of neutral and objective 
criteria32, indicating that the region's difficulties arise out of more than 
temporary circumstances; such criteria must be clearly spelled out in law, 
regulation, or other official document, so as to be capable of verification; 
(iii) the criteria shall include a measurement of economic development which shall 
be based on at least one of the following factors: 
one of either income per capita or household income per capita, or 
GDP per capita, which must not be above 85 per cent ofthe average 
for the territory concerned; 
projects cannot be converted or used for industrial application or commercial exploitation. It does not include routine or 
periodic alterations to existing products, production lines, manufacturing processes, services, and other on-going operations 
even though those alterations may represent improvements. 
"In the case of programmes which span industrial research and pre-competitive development activity, the allowable level 
of non-actionable assistance shall not exceed the simple average ofthe allowable levels of non-actionable assistance applicable 
to the above two categories, calculated on the basis of all eligible costs as set forth in items (i) to (v) of mis subparagraph. 
•'A "general framework of regional development* means that regional subsidy programmes are part of an internally 
consistent and generally applicable regional development policy and that regional development subsidies are not granted in 
isolated geographical points having no. or virtually no. influence on the development of a region. 
B"Neutral and objective criteria" means criteria which do not favour certain regions beyond what is appropriate for the 
elimination or reduction of regional disparities within the framework of the regional development policy. In mis regard, 
regional subsidy programmes shall include ceilings on the amount of assistance which can be granted to each subsidized 
project. Such ceilings must be differentiated according to the different levels of development of assisted regions and must 
be expressed in terms of investment costs or cost of job creation. Within such ceilings, the distribution of assisunce shall 
be sufficiently broad and even to avoid the predominant use of a subsidy by, or the granting of disproportionately large amounts 
of subsidy to. certain enterprises as provided for in Article 2. 
Page 239 
unemployment rate, which must be at least 110 per cent ofthe average 
for the territory concerned; 
as measured over a three-year period; such measurement, however, may be 
a composite one and may include other factors. 
(c) assistance to promote adapution of existing facilities33 to new environmental 
requirements imposed by law and/or regulations which result in greater constraints 
and financial burden on firms, provided that the assisunce: 
(i) is a one-time non-recurring measure; and 
(ii) is limited to 20 per cent of the cost of adapution; and 
(iii) does not cover the cost of replacing and operating the assisted investment, which 
must be fully borne by firms; and 
(iv) is directly linked to and proportionate to a firm's planned reduction of nuisances 
and pollution, and does not cover any manufacturing cost savings which may­
be achieved: and 
(v) is available to all firms which can adopt the new equipment and/or production 
processes. 
8.3 A subsidy programme for which the provisions of paragraph 2 are invoked shall be notified 
in advance of its implementation to the Committee in accordance with the provisions of Part VII. Any 
such notification shall be sufficiently precise to enable other Members to evaluate the consistency of 
the programme with the conditions and criteria provided for in the relevant provisions of paragraph 2. 
Members shall also provide the Committee with yearly updates of such notifications, in particular by 
supplying information on global expenditure for each programme, and on any modification of the 
programme. Other Members shall have the right to request information about individual cases of 
subsidization under a notified programme.34 
8 4 Upon request of a Member, the Secretariat shall review a notification made pursuant to 
paragraph 3 and. where necessary, may require additional information from the subsidizing Member 
concerning the notified programme under review. The Secretariat shall report its findings to the 
Committee. The Committee shall, upon request, promptly review the findings ofthe Secretariat (or, 
if a review by the Secretariat has not been requested, the notification itself), with a view to determining 
whether the conditions and criteria laid down in paragraph 2 have not been met. The procedure provided 
for in this paragraph shall be completed at the latest at the first regular meeting of the Committee 
following the notification of a subsidy programme, provided that at least two months" have elapsed 
between such notification and the regular meeting of the Committee. The review procedure described 
in this paragraph shall also apply, upon request, to substantial modifications of a programme notified 
in the yearly updates referred to in paragraph 3. 
8.5 Upon the request of a Member, the determination by the Committee referred to in paragraph 4, 
or a failure by the Committee to make such a determination, as well as the violation, in individual 
"The term "existing facilities" means facilities which have been in operation for at least two years at the time when new 
environmental requirements are imposed. 
MIt is recognized that nothing in this notification provision requires the provision of confidential information, including 
confidential business information. 
Page 240 
cases, of the conditions set out in a notified programme, shall be submined to binding arbitration. 
The arbitration body shall present its conclusions to the Members within 120 days from the date when 
the matter was referred to the arbitration body. Except as otherwise provided in this paragraph, the 
DSU shall apply to arbitrations conducted under this paragraph. 
Article 9 
Consultations and Authorized Remedies 
9.1 If, in the course of implemenution of a programme referred to in paragraph 2 of Article 8, 
notwithstanding the fact that the programme is consistent with the criteria laid down in that paragraph, 
a Member has reasons to believe that this programme has resulted in serious adverse effects ro the 
domestic industry of that Member, such as to cause damage which would be difficult to repair, such 
Member may request consultations with the Member granting or maintaining the subsidy. 
9.2 Upon request for consultations under paragraph 1, the Member granting or maintaining the 
subsidy programme in question shall enter into such consulutions as quickly as possible. The purpose 
of the consultations shall be to clarify the facts of the situation and to arrive at a mutually acceptable 
solution. 
9.3 If no mutually acceptable solution has been reached in consultations under paragraph 2 within 
60 days of the request for such consulutions, the requesting Member may refer the matter to the 
Committee. 
9.4 Where a matter is referred to the Committee, the Committee shall immediately review the facts 
involved and the evidence ofthe effects referred to in paragraph 1. If the Committee determines that 
such effects exist, it may recommend to the subsidizing Member to modify this programme in such 
a way as to remove these effects. The Committee shall present its conclusions within 120 days from 
the date when the matter is referred to it under paragraph 3. In the event the recommendation is not 
followed within six months, the Committee shall authorize the requesting Member to take appropriate 
countermeasures commensurate with the nature and degree ofthe effects determined to exist. 
Page 241 
PART V: COUNTERVAILING MEASURES 
Article 10 
Application of Article VI of GATT 1994* 
Members shall uke all necessary steps to ensure that the imposition of a countervailing duty36 
on any product of the territory of any Member imported into the territory of another Member is in 
accordance with the .provisions of Article VI of GATT 1994 and the terms of this Agreement. 
Countervailing duties may only be imposed pursuant to investigations initiated37 and conducted in 
accordance with the provisions of this Agreement and the Agreement on Agriculture. 
Article 11 
Initiation and Subsequent Investigation 
11.1 Except as provided in paragraph 6, an investigation to determine the existence, degree and 
effect of any alleged subsidy shall be initiated upon a written application by or on behalf of the domestic 
industry. 
11.2 An application under paragraph 1 shall include sufficient evidence of the existence of (a) a 
subsidy and, if possible, its amount, (b) injury within the meaning of Article VI of GATT 1994 as 
interpreted by this Agreement, and (c) a causal link between the subsidized imports and the alleged 
injury. Simple assertion, unsubstantiated by relevant evidence, cannot be considered sufficient to meet 
the requirements of this paragraph. The application shall contain such information as is reasonably 
available to the applicant on the following: 
(i) the identity ofthe applicant and a description ofthe volume and value ofthe domestic 
production of the like product by the applicant. Where a written application is made 
on behalf of the domestic industry, the application shall identify the industry on behalf 
of which the application is made by a list of all known domestic producers of the like 
product (or associations of domestic producers of the like product) and, to the extent 
possible, a description of the volume and value of domestic production of the like 
product accounted for by such producers; 
**The provisions of Pan II or III may be invoked in parallel with the provisions of Part V; however, with regard to 
the effects of a particular subsidy in the domestic market of the importing Member, only one form of relief (either a 
countervailing duty, if the requirements of Part V are met, or a countermeasure under Articles 4 or 7) shall be available. 
The provisions of Parts III and V shall not be invoked regarding measures considered non-actionable in accordance with 
the provisions of Part IV. However, measures referred to in paragraph 1(a) of Article 8 may be investigated in order to 
determine whether or not they are specific within the meaning of Anicle 2. In addition, in the case of a subsidy referred 
to in paragraph 2 of Article 8 conferred pursuant to a programme which has not been notified in accordance with paragraph 
3 of Article 8, the provisions of Part III or V may be invoked, but such subsidy shall be treated as non-actionable if it is 
found to conform to the standards set forth in paragraph 2 of Anicle 8. 
*The term "countervailing duty" shall be understood to mean a special duty levied for the purpose of offsetting any subsidy 
bestoweddirectlyor indirectly upon the manufacnjre. production or export of any merchandise, as provided for in paragraph 3 
of Article VI of GATT 1994. 
y>Thc term "initiated" as used hereinafter means procedural action by which a Member formally commences an investigation 
as provided in Article 11. 
Page 242 
(ii) a complete description of the allegedly subsidized product, the names of the country 
or countries of origin or export in question, the identity of each known exporter or 
foreign producer and a list of known persons importing the product in question; 
(iii) evidence with regard to the existence, amount and nature of the subsidy in question; 
(iv) evidence that alleged injury to a domestic industry is caused by subsidized imports 
through the effects ofthe subsidies; this evidence includes information on the evolution 
ofthe volume ofthe allegedly subsidized imports, the effect of these imports on prices 
of the like product in the domestic market and the consequent impact of the imports 
on the domestic industry, as demonstrated by relevant factors and indices having a 
bearing on the state of the domestic industry, such as those listed in paragraphs 2 and 
4 of Article 15. 
11.3 The authorities shall review the accuracy and adequacy of the evidence provided in the 
application to determine whether the evidence is sufficient to justify the initiation of an investigation. 
11.4 An investigation shall not be initiated pursuant to paragraph 1 unless the authorities have 
determined, on the basis of an examination ofthe degree of support for, or opposition to, the application 
expressed38 by domestic producers of the like product, that the application has been made by or on 
behalf of the domestic industry.39 The application shall be considered to have been made "by or on 
behalf of the domestic industry•" if it is supported by those domestic producers whose collective output 
constitutes more than 50 per cent ofthe total production ofthe like product produced by that portion 
of the domestic industry expressing either support for or opposition to the application. However, no 
investigation shall be initiated when domestic producers expressly supporting the application account 
for less than 25 per cent of total production of the like product produced by the domestic industry. 
11.5 The authorities shall avoid, unless a decision has been made to initiate an investigation, any 
publicizing of the application for the initiation of an investigation. 
11.6 If. in special circumstances, the authorities concerned decide to initiate an investigation without 
having received a written application by or on behalf of a domestic industry for the initiation of such 
investigation, they shall proceed only if they have sufficient evidence ofthe existence of a subsidy, 
injury and causal link, as described in paragraph 2, to justify the initiation of an investigation. 
11.7 The evidence of both subsidy and injury shall be considered simultaneously (a) in the decision 
whether or not to initiate an investigation and (b) thereafter, during the course of the investigation, 
starting on a date not later than the earliest date on which in accordance with the provisions of this 
Agreement provisional measures may be applied. 
11.8 In cases where products are not imported directly from the country of origin but are exported 
to the importing Member from an intermediate country, the provisions of this Agreement shall be fully 
applicable and the transaction or transactions shall, for the purposes of this Agreement, be regarded 
as having taken place between the country of origin and the importing Member. 
11.9 An application under paragraph 1 shall be rejected and an investigation shall be terminated 
promptly as soon as the authorities concerned are satisfied that there is not sufficient evidence of either 
MIn the case of fragmented industries involving an exceptionally large number of producers, authorities may determine 
support and opposition by using statistically valid sampling techniques. 
''Members are aware that in the territory of certain Members employees of domestic producers of the like product or 
representatives of those employees may make or support an application for an investigation under paragraph 1. 
Page 243 
subsidization or of injury to justify proceeding with the case. There shall be immediate termination 
in cases where the amount of a subsidy is de minimis, or where the volume of subsidized imports, 
actual or potential, or the injury, is negligible. For the purpose of this paragraph, the amount of the 
subsidy shall be considered to be de minimis if the subsidy is less than 1 per cent ad valorem. 
11.10 An investigation shall not hinder the procedures of customs clearance. 
11.11 Investigations shall, except in special circumstances, be concluded within one year, and in no 
case more than 18 months, after their initiation. 
Article 12 
Evidence 
12.1 Interested Members and all interested parties in a countervailing duty investigation shall be 
given notice ofthe information which the authorities require and ample opportunity to present in writing 
all evidence which they consider relevant in respect of the investigation in question. 
12.1.1 Exporters, foreign producers or interested Members receiving questionnaires used in 
a countervailing duty investigation shall be given at least 30 days for reply.40 Due 
consideration should be given to any request for an extension of the 30-day period 
•and. upon cause shown, such an extension should be granted whenever practicable. 
12.1.2 Subject to the requirement to protect confidential information, evidence presented in 
writing by one interested Member or interested party shall be made available promptly 
to other interested Members or interested parties participating in the investigation. 
12.1.3 As soon as an investigation has been initiated, the authorities shall provide the full 
text of the written application received under paragraph 1 of Article 11 to the known 
exporters4' and to the authorities ofthe exporting Member and shall make it available, 
upon request, to other interested parties involved. Due regard shall be paid to the 
protection of confidential information, as provided for in paragraph 4. 
12.2. Interested Members and interested parties also shall have the right, upon justification, to present 
information orally. Where such information is provided orally, the interested Members and interested 
parties subsequently shall be required to reduce such submissions to writing. Any decision of the 
investigating authorities can only be based on such information and arguments as were on the written 
record of this authority and which were available to interested Members and interested parties 
participating in the investigation, due account having been given to the need to protect confidential 
information. 
12.3 The authorities shall whenever practicable provide timely opportunities for all interested Members 
and interested parties to see all information that is relevant to the presentation of their cases, that is 
*°As a general rule, the time-limit for exporters shall be counted from the date of receipt of the questionnaire, which 
for this purpose shall be deemed to have been received one week from the date on which it was sent to the respondent or 
transmined to the appropriate diplomatic representatives of the exporting Member or, in the case of a separate customs territory 
Member of the WTO, an official representative of the exponing territory. 
4lIt being understood that where the number of exponers involved is particularly high, the full text of the application 
should instead be provided only to the authorities of the exponing Member or to the relevant trade association who then 
should forward copies to the exporters concerned. 
Page 244 
not confidential as defined in paragraph 4, and that is used by the authorities in a countervailing duty 
investigation, and to prepare presenutions on the basis of this information. 
12.4 Any information which is by nature confidential (for example, because its disclosure would 
be of significant competitive advantage to a competitor or because its disclosure would have a 
significantly adverse effect upon a person supplying the information or upon a person from whom the 
supplier acquired the information), or which is provided on a confidential basis by parties to an 
investigation shall, upon good cause shown, be treated as such by the authorities. Such information 
shall not be disclosed without specific permission of the party submitting it.42 
12.4.1 The authorities shall require interested Members or interested parties providing 
confidential information to furnish non-confidential summaries thereof. These summaries 
shall be in sufficient detail to permit a reasonable undersunding of the substance of 
the information submitted in confidence. In exceptional circumstances, such Members 
or parties may indicate that such information is not susceptible of summary. In such 
exceptional circumstances, a sutement ofthe reasons why summarization is not possible 
must be provided. 
12.4.2 If the authorities find that a request for confidentiality is not warranted and if the 
supplier of the information is either unwilling to make the information public or to 
authorize its disclosure in generalized or summary form, the authorities may disregard 
such information unless it can be demonstrated to their satisfaction from appropriate 
sources that the information is correct.43 
12.5 Except in circumstances provided for in paragraph 7, the authorities shall during the course 
of an investigation satisfy themselves as to the accuracy of the information supplied by interested 
Members or interested parties upon which their findings are based. 
12.6 The investigating authorities may carry out investigations in the territory of other Members 
as required, provided that they have notified in good time the Member in question and unless that 
Member objects to the investigation. Further, the investigating authorities may carry out investigations 
on the premises of a firm and may examine the records of a firm if (a) the firm so agrees and (b) the 
Member in question is notified and does not object. The procedures set forth in Annex VI shall apply 
to investigations on the premises of a firm. Subject to the requirement to protect confidential information. 
the authorities shall make the results of any such investigations available, or shall provide disclosure 
thereof pursuant to paragraph 8, to the firms to which they pertain and may make such results available 
to the applicants. 
12.7 In cases in which any interested Member or interested party refuses access to, or otherwise 
does not provide, necessary information within a reasonable period or significantly impedes the 
investigation, preliminary and final determinations, affirmative or negative, may be made on the basis 
ofthe facts available. 
12.8 The authorities shall, before a final determination is made, inform all interested Members and 
interested parties ofthe essential facts under consideration which form the basis for the decision whether 
to apply definitive measures. Such disclosure should take place in sufficient time for the parties to 
defend their interests. 
4:Members are aware that in the territory of certain Members disclosure pursuant to a narrowly-drawn protective order 
may be required. 
''Members agree that requests for confidentiality should not be arbitrarily rejected. Members further agree that the 
investigating authority may request the waiving of confidentiality only regarding information relevant to the proceedings. 
Page 245 
12.9 For the purposes of this Agreement, "interested parties" shall include: 
(i) an exporter or foreign producer or the importer of a product subject to investigation, 
or a trade or business association a majority of the members of which are producers, 
exporters or importers of such product; and 
(ii) a producer of the like product in the importing Member or a trade and business 
association a majority ofthe members of which produce the like product in the territory 
of the importing Member. 
This list shall not preclude Members from allowing domestic or foreign parties other than those 
mentioned above to be included as interested parties. 
12.10 The authorities shall provide opportunities for industrial users of the product under investigation, 
and for represenutive consumer organizations in cases where the product is commonly sold at the retail 
level, to provide information which is relevant to the investigation regarding subsidization, injury and 
causality. 
12.11 The authorities shall take due account of any difficulties experienced by interested parties, in 
particular small companies, in supplying information requested, and shall provide any assistance 
practicable. 
12.12 The procedures set out above are not intended to prevent the authorities of a Member from 
proceeding expeditiously with regard to initiating an investigation, reaching preliminary or final 
determinations, whether affirmative or negative, or from applying provisional or final measures, in 
accordance with relevant provisions of this Agreement. 
Article 13 
Consultations 
13.1 -As soon as possible after an application under Article 11 is accepted, and in any event before 
the initiation of any investigation. Members the products of which may be subject to such investigation 
shall be invited for consultations with the aim of clarifying the situation as to the matters referred to 
in paragraph 2 of Article 11 and arriving at a mutually agreed solution. 
13.2 Furthermore, throughout the period of investigation. Members the products of which are the 
subject ofthe investigation shall be afforded a reasonable opportunity to continue consultations, with 
a view to clarifying the factual situation and to arriving at a mutually agreed solution.44 
13.3 Without prejudice to the obligation to afford reasonable opportunity for consultation, these 
provisions regarding consultations are not intended to prevent the authorities of a Member from 
proceeding expeditiously with regard to initiating the investigation, reaching preliminary or final 
determinations, whether affirmative or negative, or from applying provisional or final measures, in 
accordance with the provisions of this Agreement. 
13.4 The Member which intends to initiate any investigation or is conducting such an investigation 
shall permit, upon request, the Member or Members the products of which are subject to such 
**It is particularly important, in accordance with the provisions of this paragraph, that no affirmative determination whether 
preliminary or final be made without reasonable opportunity for consulutions having been given. Such consulutions may 
esublish the basis for proceeding under the provisions of Part II. Ill or X. 
Page 246 
investigation access to non-confidential evidence, including the non-confidential summary of confidential 
dau being used for initiating or conducting the investigation. 
Article 14 
Calculation ofthe Amount of a Subsidy in Terms 
of the Benefit to the Recipient 
For the purpose of Part V, any method used by the investigating authority to calculate the benefit 
to the recipient conferred pursuant to paragraph 1 of Article 1 shall be provided for in the national 
legislation or implementing regulations ofthe Member concerned and its application to each particular 
case shall be transparent and adequately explained. Furthermore, any such method shall be consistent 
with the following guidelines: 
(a) government provision of equity capital shall not.be considered as conferring a benefit, 
unless the investment decision can be regarded as inconsistent with the usual investment 
practice (including for the provision of risk capital) of private investors in the territory 
of that Member: 
(b) a loan by a government shall not be considered as conferring a benefit, unless there 
is a difference between the amount that the firm receiving the loan pays on the 
. government loan and the amount the firm would pay on a comparable commercial loan 
which the firm could actually obtain on the market. In this case the benefit shall be 
the difference between these two amounts; 
( c ) a loan guarantee by a government shall not be considered as conferring a benefit, unless 
there is a difference between the amount that the firm receiving the guarantee pays 
on a loan guaranteed by the government and the amount that the firm would pay on 
a comparable commercial loan absent the government guarantee. In this case the benefit 
shall be the difference between these two amounts adjusted for any differences in fees; 
(d) the provision of goods or services or purchase of goods by a government shall not 
be considered as conferring a benefit unless the provision is made for less than adequate 
remuneration, or the purchase is made for more than adequate remuneration. The 
adequacy of remuneration shall be determined in relation to prevailing market conditions 
for the good or service in question in the country of provision or purchase (including 
price, quality, availability, marketability, transportation and other conditions of purchase 
or sale). 
Article 15 
Determination of Injury45 
15.1 A determination of injury for purposes of Article VI of GATT 1994 shall be based on positive 
evidence and involve an objective examination of both (a) the volume of the subsidized imports and 
45Under this Agreement the term * injury " shall, unless otherwise specified, be uken to mean material injury to a domestic 
industry, threat of material injury to a domestic industry or material reurdation of the esublishment of such an industry 
and shall be interpreted in accordance with the provisions of this Article. 
Page 247 
the effect of the subsidized imports on prices in the domestic market for like products46 and (b) the 
consequent impact of these imports on the domestic producers of such products. 
15.2 With regard to the volume ofthe subsidized imports, the investigating authorities shall consider 
whether there has been a significant increase in subsidized imports, either in absolute terms or relative 
to production or consumption in the importing Member. With regard to the effect ofthe subsidized 
imports on prices, the investigating authorities shall consider whether there has been a significant price 
undercutting by the subsidized imports as compared with the price of a like product of the importing 
Member, or whether the effect of such imports is otherwise to depress prices to a significant degree 
or to prevent price increases, which otherwise would have occurred, to a significant degree. No one 
or several of these factors can necessarily give decisive guidance. 
15.3 Where imports of a product from more than one country are simultaneously subject to 
countervailing duty investigations, the investigating authorities may cumulatively assess the effects 
of such imports only if they determine that (a) the amount of subsidization established in relation to 
the imports from each country is more than de minimis as defined in paragraph 9 of Article 11 and 
the volume of imports from each country is not negligible and (b) a cumulative assessment ofthe effects 
ofthe imports is appropriate in light ofthe conditions of competition between the imported products 
and the conditions of competition between the imported products and the like domestic product. 
15 4 The examination of the impact of the subsidized imports on the domestic industry shall include 
an evaluation of all relevant economic factors and indices having a bearing on the state ofthe industry. 
including actual and potential decline in output, sales, market share, profits, productivity, return on 
investments, or utilization of capacity: factors affecting domestic prices; actual and potential negative 
effects on cash flow, inventories, employment, wages, growth, ability to raise capital or. investments 
and. in the case of agriculture, whether there has been an increased burden on government support 
programmes. This list is not exhaustive, nor can one or several of these factors necessarily give decisive 
guidance. 
15.5 It must be demonstrated that the subsidized imports are, through the effects47 of subsidies, 
causing injury within the meaning of this Agreement. The demonstration of a causal relationship between 
the subsidized imports and the injury to the domestic industry shall be based on an examination of 
all relevant evidence before the authorities. The authorities shall also examine any known factors other 
than the subsidized imports which at the same time are injuring the domestic industry, and the injuries 
caused by these other factors must not be attributed to the subsidized imports. Factors which may 
be relevant in this respect include, inter alia, the volumes and prices of non-subsidized imports of the 
product in question, contraction in demand or changes in the patterns of consumption, trade restrictive 
practices of and competition between the foreign and domestic producers, developments in technology 
and the export performance and productivity ofthe domestic industry. 
15.6 The effect of the subsidized imports shall be assessed in relation to the domestic production 
of the like product when available data permit the separate identification ofthat production on the basis 
of such criteria as the production process, producers* sales and profits. If such separate identification 
of that production is not possible, the effects of the subsidized imports shall be assessed by the 
examination of the production of the narrowest group or range of products, which includes the like 
product, for which the necessary information can be provided. 
^Throughout this Agreement the term "like product" ("produit similaire") shall be interpreted to mean a product which 
is identical, i.e. alike in all respects to the product under consideration, or in the absence of such a product, another product 
which, although not alike in all respects, has characteristics closely resembling those of the product under consideration. 
47As set forth in paragraphs 2 and 4. 
Page 248 
15.7 A determination of a threat of material injury shall be based on facts and not merely on allegation, 
conjecture or remote possibility. The change in circumstances which would create a situation in which 
the subsidy would cause injury must be clearly foreseen and imminent. In making a determination 
regarding the existence of a threat of material injury, the investigating authorities should consider, 
inter alia, such factors as: 
(t) nature of the subsidy or subsidies in question and the trade effects likely to arise 
therefrom; 
(ii) a significant rate of increase of subsidized imports into the domestic market indicating 
the likelihood of substantially increased imporution; 
(iii) sufficient freely disposable, or an imminent, substantial increase in, capacity of the 
exporter indicating the likelihood of substantially increased subsidized exports to the 
importing Member's market, taking into account the availability of other export markets 
'.to absorb any additional exports; 
(iv) whether imports are entering at prices that will have a significant depressing or 
suppressing effect on domestic prices, and would likely increase demand for further 
imports: and 
(v) inventories of the product being investigated. 
No one of these factors by itself can necessarily give decisive guidance but the totality of the factors 
considered must lead to the conclusion that further subsidized exports are imminent and that, unless 
protective action is taken, material injury' would occur. 
15.8 With respect to cases where injury is threatened by subsidized imports, the application of 
countervailing measures shall be considered and decided with special care. 
Article 16 
Definition of Domestic Industry 
16.1 For the purposes of this Agreement, the term "domestic industry" shall, except as provided 
in paragraph 2, be interpreted as referring to the domestic producers as a whole of the like products 
or to those of them whose collective output of the products constitutes a major proportion of the total 
domestic production of those products, except that when producers are related48 to the exporters or 
importers or are themselves importers ofthe allegedly subsidized product or a like product from other 
countries, the term "domestic industry" may be interpreted as referring to the rest of the producers. 
16.2. In exceptional circumstances, the territory of a Member may, for the production in question, 
be divided into two or more competitive markets and the producers within each market may be regarded 
as a separate industry if (a) the producers within such market sell all or almost all of their production 
ofthe product in question in that market, and (b) the demand in that market is not to any substantial 
''For the purpose of this paragraph, producers shall be deemed to be related to exporters or importers only if (a) one 
of them directly or indirectly controls the other: or (b) both of them are directly or indirectly controlled by a third person; 
or (c) together they directly or indirectly control a third person, provided that there are grounds for believing or suspecting 
that the effect ofthe relationship is such as to cause the producer concerned to behave differently from non-related producers. 
For the purpose of this paragraph, one shall be deemed to control another when the former is legally or operationally in 
a position to exercise restraint or direction over the latter. 
Page 249 
degree supplied by producers of the product in question located elsewhere in the territory. In such 
circumstances, injury may be found to exist even where a major portion of the total domestic industry 
is not injured, provided there is a concentration of subsidized imports into such an isolated market 
and provided further that the subsidized imports are causing injury to the producers of all or almost 
all of the production within such market. 
16.3 When the domestic industry has been interpreted as referring to the producers in a certain area, 
i.e. a market as defined in paragraph 2, countervailing duties shall be levied only on the products in 
question consigned for final consumption to that area. When the constitutional law of the importing 
Member does not permit the levying of countervailing duties on such a basis, the importing Member 
may levy the countervailing duties without limitation only if (a) the exporters shall have been given 
an opportunity to cease exporting at subsidized prices to the area concerned or otherwise give assurances 
pursuant to Article 18, and adequate assurances in this regard have not been promptly given, and (b) such 
duties cannot be levied only on products of specific producers which supply the area in question. 
16.4 Where two or more countries have reached under the provisions of paragraph 8(a) of 
Article XXIV of GATT 1994 such a level of integration that they have the characteristics of a single, 
unified market, the industry in the entire area of integration shall be taken to be the domestic industry 
referred to in paragraphs 1 and 2. 
16.5 The provisions of paragraph 6 of Article 15 shall be applicable to this Article. 
Article 17 
Provisional Measures 
17.1 Provisional measures may be applied only if: 
(a) an investigation has been initiated in accordance with the provisions of Article 11. 
a public notice has been given to that effect and interested Members and interested 
parties have been given adequate opportunities to submit information and make 
comments; 
(b) a preliminary affirmative determination has been made that a subsidy exists and that 
there is injury to a domestic industry caused by subsidized imports; and 
(c) the authorities concerned judge such measures necessary to prevent injury being caused 
during the investigation. 
17.2 Provisional measures may Uke the form of provisional countervailing duties guaranteed by-
cash deposits or bonds equal to the amount of the provisionally calculated amount of subsidization. 
17.3 Provisional measures shall not be applied sooner than 60 days from the date of initiation of 
the investigation. 
17.4 The application of provisional measures shall be limited to as short a period as possible, not 
exceeding four months. 
17.5 The relevant provisions of Article 19 shall be followed in the application of provisional measures. 
Page 250 
Article 18 
Undertakings 
18.1 Proceedings may49 be suspended or terminated without the imposition of provisional measures 
or countervailing duties upon receipt of satisfactory voluntary undertakings under which: 
(a) the government of the exporting Member agrees to eliminate or limit the subsidy 
or take other measures concerning its effects; or 
(b) the exporter agrees to revise its prices so that the investigating authorities are 
satisfied that the injurious effect ofthe subsidy is eliminated. Price increases 
under such undertakings shall not be higher than necessary to eliminate the 
amount ofthe subsidy. It is desirable that the price increases be less than 
the amount of the subsidy if such increases would be adequate to remove the 
injury to the domestic industry. 
18.2 Undertakings shall not be sought or accepted unless the authorities ofthe importing Member 
have made a preliminary affirmative determination of subsidization and injury caused by such 
subsidization and, in case of undertakings from exporters, have obtained the consent of the exporting 
Member. 
18.3 Undertakings offered need not be accepted if the authorities ofthe importing Member consider 
their acceptance impractical, for example if the number of actual or potential exporters is too great, 
or for other reasons, including reasons of general policy. Should the case arise and where practicable, 
the authorities shall provide to the exporter the reasons which have led them to consider acceptance 
of an undertaking as inappropriate, and shall, to the extent possible, give the exporter an opportunity 
to make comments thereon. 
18.4 If an undertaking is accepted, the investigation of subsidization and injury shall nevertheless 
be completed if the exporting Member so desires or the importing Member so decides. In such a case, 
if a negative determination of subsidization or injury is made, the undertaking shall automatically lapse, 
except in cases where such a determination is due in large part to the existence of an undertaking. 
In such cases, the authorities concerned may require that an undertaking be maintained for a reasonable 
period consistent with the provisions of this Agreement. In the event that an affirmative determination 
of subsidization and injury is made, the undertaking shall continue consistent with its terms and the 
provisions of this Agreement. 
18.5 Price undertakings may be suggested by the authorities ofthe importing Member, but no exporter 
shall be forced to enter into such undertakings. The fact that governments or exporters do not offer 
such undertakings, or do not accept an invitation to do so, shall in no way prejudice the consideration 
of the case However, the authorities are free to determine that a threat of injury is more likely to 
be realized if the subsidized imports continue. 
18.6 Authorities of an importing Member may require any government or exporter from whom an 
undertaking has been accepted to provide periodically information relevant to the fulfilment of such 
an undertaking, and to permit verification of pertinent data. In case of violation of an undertaking, 
the authorities of the importing Member may take, under this Agreement in conformity with its 
provisions, expeditious actions which may constitute immediate application of provisional measures 
using the best information available. In such cases, definitive duties may be levied in accordance with 
*The word "may" shall noi be interpreted to allow the simultaneous continuation of proceedings with the implemenution 
of undertakings, except as provided in paragraph 4. 
Page 251 
this Agreement on products entered for consumption not more than 90 days before the application of 
such provisional measures, except that any such retroactive assessment shall not apply to imports entered 
before the violation of the undertaking. 
Article 19 
Imposition and Collection of Countervailing Duties 
19.1 If. after reasonable efforts have been made to complete consulutions, a Member makes a final 
determination of the existence and amount of the subsidy and that, through the effects of the subsidy, 
the subsidized imports are causing injury, it may impose a countervailing duty in accordance with the 
provisions of this Article unless the subsidy or subsidies are withdrawn. 
19.2 The decision whether or not to impose a countervailing duty in cases where all requirements 
for the imposition have been fulfilled, and the decision whether the amount of the countervailing duty 
to be imposed shall be the full amount ofthe subsidy or less, are decisions to be made by the authorities 
of the importing Member. It is desirable that the imposition should be permissive in the territory 
of all Members, that the duty should be less than the toul amount of the subsidy if such lesser duty 
would be adequate to remove the injury to the domestic industry, and that procedures should be 
established which would allow the authorities concerned to uke due account of representations made, 
by domestic interested parties50 whose interests might be adversely affected by the imposition of a 
countervailing duty. 
19.3 When a countervailing duty is imposed in respect of any product, such countervailing duty 
shall be levied, in the appropriate amounts in each case, on a non-discriminatory basis on imports of 
such product from all sources found to be subsidized and causing injury, except as to imports from 
those sources which have renounced any subsidies in question or from which undertakings under the 
terms of this Agreement have been accepted. Any exporter whose exports are subject to a definitive 
countervailing duty but who was not actually investigated for reasons other than a refusal to cooperate, 
shall be entitled to an expedited review in order that the investigating authorities promptly establish 
an individual countervailing duty rate for that exporter. 
19.4 No countervailing duty shall be levied51 on any imported product in excess of the amount of 
the subsidy found to exist, calculated m terms of subsidization per unit ofthe subsidized and exported 
product. 
Article 20 
Retroactivity 
20.1 Provisional measures and countervailing duties shall only be applied to products which enter 
for consumption after the time when the decision under paragraph 1 of Article 17 and paragraph 1 
of Article 19, respectively, enters into force, subject to the exceptions set out in thfs Article. 
20.2 Where a final determination of injury (but not of a threat thereof or of a material reurdation 
ofthe esublishment of an industry) is made or, in the case of a final determination of a threat of injury, 
"For the purpose of mis paragraph, the term "domestic interested parties" shall include consumers and industrial users 
of the imported product subject to investigation. 
"As used in this Agreement "levy" shall mean the definitive or final legal assessment or collection of a duty or ttx. 
Page 252 
where the effect of the subsidized imports would, in the absence of the provisional measures, have 
led to a determination of injury, countervailing duties may be levied retroactively for the period for 
which provisional measures, if any, have been applied. 
20.3 If the definitive countervailing duty is higher than the amount guaranteed by the cash deposit 
or bond, the difference shall not be collected. If the definitive duty is less than the amount guaranteed 
by the cash deposit or bond, the excess amount shall be reimbursed or the bond released in an expeditious 
manner. 
20.4 Except as provided in paragraph 2, where a determination of threat of injury or material 
reurdation is made (but no injury has yet occurred) a definitive countervailing duty may be imposed 
only from the date ofthe determination of threat of injury or material reurdation, and any cash deposit 
made during the period of the application of provisional measures shall be refunded and any bonds 
released in an expeditious manner. 
20.5 Where a final determination is negative, any cash deposit made during the period of the 
application of provisional measures shall be refunded and any bonds released in an expeditious manner. 
20.6 In critical circumstances where for the subsidized product in question the authorities find that 
injury which is difficult to repair is caused by massive imports in a relatively short period of a product 
benefiting from subsidies paid or bestowed inconsistently with the provisions of GATT 1994 and of 
this Agreement and where it is deemed necessary, in order to preclude the recurrence of such injury. 
to assess countervailing duties retroactively on those imports, the definitive countervailing duties may 
be assessed on imports which were entered for consumption not more than 90 days prior to the date 
of application of provisional measures. 
Article 21 
Duration and Revie*' of Countervailing Duties and Undertakings 
21.1 A countervailing duty shall remain in force only as long as and to the extent necessary to 
counteract subsidization which is causing injury. 
21.2 The authorities shall review the need for the continued imposition ofthe duty, where warranted. 
on their own initiative or, provided that a reasonable period of time has elapsed since the imposition 
of the definitive countervailing duty, upon request by any interested party which submits positive 
information substantiating the need for a review. Interested parties shall have the right to request the 
authorities to examine whether the continued imposition ofthe duty is necessary to offset subsidization, 
whether the injury would be likely to continue or recur if the duty were removed or varied, or both. 
If. as a result ofthe review under this paragraph, the authorities determine that the countervailing duty 
is no longer warranted, it shall be terminated immediately. 
21.3 Notwithstanding the provisions of paragraphs 1 and 2, any definitive countervailing duty shall 
be terminated on a date not later than five years from its imposition (or from the date ofthe most recent 
review under paragraph 2 if that review has covered both subsidization and injury, or under this 
paragraph), unless the authorities determine, in a review initiated before that date on their own initiative 
or upon a duly substantiated request made by or on behalf of the domestic industry within a reasonable 
period of time prior to that date, that the expiry of the duty would be likely to lead to continuation 
Page 253 
or recurrence of subsidization and injury.52 The duty may remain in force pending.the outcome of 
such a review. 
21.4 The provisions of Article 12 regarding evidence and procedure shall apply to any review carried 
out under this Article. Any such review shall be carried out expeditiously and shall, normally be 
concluded within 12 months of the date of initiation of the review. 
21.5 The provisions of this Article shall apply mutatis mutandis to undertakings accepted under 
Article 18. 
Article 22 
Public Notice and Explanation of 
Determinations 
22.1 When the authorities are satisfied that there is sufficient evidence to justify the initiation of 
an investigation pursuant to Article 11, the Member or Members the products of which are subject 
to such investigation and other interested parties known to the investigating authorities to have an interest 
therein shall be notified and a public notice shall be given. 
22.2 A public notice of the initiation of an investigation shall contain, or otherwise make available 
through a separate report53, adequate information on the following: 
(i) the name of the exporting country or countries and the product involved; 
(ii) the date of initiation of the investigation; 
(iii) a description of the subsidy practice or practices to be investigated; 
(iv) a summary of the factors on which the allegation of injury is based; 
(v) the address to which representations by interested Members and interested 
parties should be directed; and 
(vi) the time-limits allowed to interested Members and interested parties for making 
their views known. 
22.3 Public notice shall be given of any preliminary or final determination, whether affirmative 
or negative, of any decision to accept an undertaking pursuant to Article 18, ofthe termination of such 
an undertaking, and of the termination of a definitive countervailing duty. Each such notice shall set 
forth, or otherwise make available through a separate report, in sufficient detail the findings and 
conclusions reached on all issues of fact and law considered material by the investigating authorities. 
All such notices and reports shall be forwarded to the Member or Members the products of which 
are subject to such determination or undertaking and to other interested parties known to have an interest 
therein. 
"When the amount ofthe countervailing duty is assessed on a retrospective basis, a finding in the most recent assessment 
proceeding that no duty is to be levied shall not by itself require the authorities to terminate the definitive duty. 
"Where authorities provide information and explanations under the provisions of this Anicle in a separate report, they 
shall ensure that such report is readily available to the public. 
Page 254 
22.4 A public notice of the imposition of provisional measures shall set forth, or otherwise make 
available through a separate report, sufficiently detailed explanations for the preliminary determinations 
on the existence of a subsidy and injury and shall refer to the matters of fact and law which have led 
to arguments being accepted or rejected. Such a notice or report shall, due regard being paid to the 
requirement for the protection of confidential information, conuin in particular: 
(i) the names of the suppliers or, when this is impracticable, the supplying countries 
involved; 
(ii) a description of the product which is sufficient for customs purposes; 
(iii) the amount of subsidy established and the basis on which the existence of a 
subsidy has been determined; 
(iv) considerations relevant to the injury determination as set out in Article 15; 
(v) the main reasons leading to the determination. 
22.5 A public notice of conclusion or suspension of an investigation in the case of an affirmative 
détermina:ion providing for the imposition of a definitive duty or the acceptance of an undertaking 
shall contain, or otherwise make available through a separate report, all relevant information on the 
matters of fact and law and reasons which have led to the imposition of final measures or the acceptance 
of an undertaking, due regard being paid to the requirement for the protection of confidential information. 
In particular, the notice or report shall contain the information described in paragraph 4. as well as 
the reasons for the acceptance or rejection of relevant arguments or claims made by interested Members 
and by the exporters and importers. 
22.6 A public notice of the termination or suspension of an investigation following the acceptance 
of an undertaking pursuant to Article 18 shall include, or otherwise make available through a separate 
report, the non-confidential part of this undertaking. 
22.7 The provisions of this Article shall apply mutatis mutandis to the initiation and completion 
of reviews pursuant to Article 21 and to decisions under Article 20 to apply duties retroactively. 
Article 23 
Judicial Review 
Each Member whose national legislation contains provisions on countervailing duty measures 
shall maintain judicial, arbitral or administrative tribunals or procedures for the purpose, inter alia, 
of the prompt review of administrative actions relating to final determinations and reviews of 
determinations within the meaning of Article 21. Such tribunals or procedures shall be independent 
of the authorities responsible for the determination or review in question, and shall provide all interested 
parties who participated in the administrative proceeding and are directly and individually affected 
bv the administrative actions with access to review. 
Page 255 
PART VI: INSTITUTIONS 
Article 24 
Committee on Subsidies and Countervailing Measures 
and Subsidiary Bodies 
24.1 There is hereby established a Committee on Subsidies and Countervailing Measures composed 
of representatives from each ofthe Members. The Committee shall elect its own Chairman and shall 
meet not less than twice a year and otherwise as envisaged by relevant provisions of this Agreement 
at the request of any Member. The Committee shall carry out responsibilities as assigned to it under 
this Agreement orby the Members and it shall afford Members the opportunity of consulting on any 
matter relating to the operation of the Agreement or the furtherance of its objectives. The WTO 
Secretariat shall act as the secretariat to the Committee. 
2.4.2 The Committee may set up subsidiary bodies as appropriate. 
24.3 The Committee shall establish a Permanent Group of Experts composed of five independent 
persons, highly qualified in the fields of subsidies and trade relations. The experts will be elected 
by the Committee and one of them will be replaced every year. The PGE may be requested to assist 
a panel, as provided for in paragraph 5 of Article 4. The Committee may also seek an advisory opinion 
on the existence and nature of any subsidy. 
24 4 The PGE may be consulted by any Member and may give advisory opinions on the nature 
of any subsidy proposed to be introduced or currently maintained by that Member. Such advisory 
opinions will be confidential and may not be invoked in proceedings under Article 7. 
24.5 In carrying out their functions, the Committee and any subsidiary bodies may consult with 
and seek information from any source they deem appropriate. However, before the Committee or 
a subsidiary body seeks such information from a source within the jurisdiction of a Member, it shall 
inform the Member involved. 
PART VII: NOTIFICATION AND SURVEILLANCE 
Article 25 
Notifications 
25 1 Members agree that, without prejudice to the provisions of paragraph 1 of Article XVI of 
GATT 1994, their notifications of subsidies shall be submitted not later than 30 June of each year and 
shall conform to the provisions of paragraphs 2 through 6. 
25.2 Members shall notify any subsidy as defined in paragraph 1 of Article 1, which is specific 
within the meaning of Article 2, granted or maintained within their territories. 
25.3 The content of notifications should be sufficiently specific to enable other Members to evaluate 
the trade effects and to understand the operation of notified subsidy programmes. In this connection, 
Page 256 
and without prejudice to the contents and form ofthe questionnaire on subsidies54, Members shall ensure 
that their notifications conuin the following information: 
(i) form of a subsidy (i.e. grant, loan, tax concession, etc.); 
(ii) subsidy per unit or, in cases where this is not possible, the total amount or 
the annual amount budgeted for that subsidy (indicating, if possible, the average 
subsidy per unit in the previous year); 
(iii) policy objective and/or purpose of a subsidy; 
(iv) duration of a subsidy and/or any other time-limits attached to it; 
(v) sutistical data permitting an assessment of the trade effects of a subsidy. 
25.4 Where specific points in paragraph 3 have not been addressed in a notification, an explanation 
shall be provided in the notification itself. 
25.5 If subsidies are granted to specific products or sectors, the notifications should be organized 
by product or sector. 
25.6 Members which consider that there are ho measures in their territories requiring notification 
under paragraph 1 of Article XVI of GATT 1994 and this Agreement shall so inform the Secretariat 
in writing. 
25.7 Members recognize that notification of a measure does not prejudge either its legal status under 
GATT 1994 and this Agreement, the effects under this Agreement, or the nature ofthe measure itself. 
25.8 Any Member may, at any time, make a written request for information on the nature and extent 
of any subsidy granted or maintained by another Member (including any subsidy referred to in Part IV j. 
or for an explanation of the reasons for which a specific measure has been considered as not subject 
to the requirement of notification. 
25.9 Members so requested shall provide such information as quickly as possible and in a 
comprehensive manner, and shall be ready, upon request, to provide additional information to the 
requesting Member In particular, they shall provide sufficient details to enable the other Member 
to assess their compliance with the terms of this Agreement. Any Member which considers that such 
information has not been provided may bring the matter to the attention of the Committee. 
25.10 Any Member which considers that any measure of another Member having the effects of a 
subsidy has not been notified in accordance with the provisions of paragraph 1 of Anicle XVI of 
GATT 1994 and this Article may bring the matter to the attention of such other Member. If the alleged 
subsidy is not thereafter notified promptly, such Member may itself bring the alleged subsidy in question 
to the notice of the Committee. 
25.11 Members shall report without delay to the Committee all preliminary or final actions taken 
with respect to countervailing duties. Such reports shall be available in the Secretariat for inspection 
by other Members. Members shall also submit, on a semi-annual basis, reports on any countervailing 
duty actions uken within the preceding six months. The semi-annual reports shall be submitted on 
an agreed standard form. 
^Thc Committee shall esublish a Working Party to review the contents and form ofthe questionnaire as contained in 
BISD 9S/193-194 
Page 257 
25.12 Each Member shall notify the Committee (a) which of its authorities are competent to initiate 
and conduct investigations referred to in Article 11 and (b) its domestic procedures governing the 
initiation and conduct of such investigations. 
Article 26 
Surveillance 
26.1 The Committee shall examine new and full notifications submitted under paragraph 1 of 
Article XVI of GATT 1994 and paragraph 1 of Article 25 of this Agreement at special sessions held 
every third year. Notifications submitted in the intervening years (updating notifications) shall be 
examined at each regular meeting of the Committee. 
26.2 The Committee shall examine reports submitted under paragraph 11 of Article 25 at each regular 
meeting of the Committee. 
PART VIII: DEVELOPING COUNTRY MEMBERS 
Article 27 
Special and Differential Treatment of Developing Country Members • 
27.1 Members recognize that subsidies may play an important role in economic development 
programmes of developing country Members. 
27.2 The prohibition of paragraph 1(a) of Article 3 shall not apply to: 
(a) developing country Members referred to in Annex VII. 
.(b) other developing country Members for a period of eight years from the date of entry 
into force of the WTO Agreement, subject to compliance with the provisions in 
paragraph 4. 
27.3 The prohibition of paragraph Kb) of Article 3 shall not apply to developing country Members 
for a period of five years, and shall not apply to least developed country Members for a period of eight 
years, from the date of entry into force of the WTO Agreement. 
27.4 Any developing country Member referred to in paragraph 2(b) shall phase out its export subsidies 
within the eight-year period, preferably in a progressive manner. However, a developing country 
Member shall not increase the level of its export subsidies55, and shall eliminate them within a period 
shorter than that provided for in this paragraph when the use of such export subsidies is inconsistent 
with its development needs. If a developing country Member deems it necessary to apply such subsidies 
beyond the 8-year period, it shall not later than one year before the expiry of this period enter into 
consultation with the Committee, which will determine whether an extension of this period is justified, 
after examining all the relevant economic, financial and development needs ofthe developing country 
Member in question. If the Committee determines that the extension is justified, the developing country 
Member concerned shall hold annual consultations with the Committee to determine the necessity of 
55For a developing country Member not granting export subsidies as ofthe date of entry into force ofthe WTO Agreement, 
this paragraph shall apply on the basis of the level of export subsidies granted in 1986. 
Page 258 
mainuining the subsidies. If no such determination is made by the Committee, the developing country 
Member shall phase out the remaining export subsidies within two years from the end of the last 
authorized period. 
27.5 A developing country Member which has reached export competitiveness in any given product 
shall phase out its export subsidies for such product(s) over a period of two years. However, for a 
developing country Member which is referred to in Annex VII and which has reached export 
competitiveness in one or more products, export subsidies on such products shall be gradually phased 
out over a period of eight years. 
27.6 Export competitiveness in a product exists if a developing country Member's exports ofthat 
product have reached a share of at least 3.25 per cent in world trade ofthat product for two consecutive 
calendar years. Export competitiveness shall exist either (a) on the basis of notification by the developing 
country Member having reached export competitiveness, or (b) on the basis of a computation undertaken 
by the Secretariat at the request of any Member. For the purpose of this paragraph, a product is defined 
as a section heading ofthe Harmonized System Nomenclature. The Committee shall review the operation 
of this provision five years from the date of the entry into force of the WTO Agreement. 
27.7 The provisions of Article 4 shall not apply to a developing country Member in the case of export 
subsidies which are in conformity with the provisions of paragraphs 2 through 5. The relevant provisions 
in such a case shall be those of Article 7. 
27.8 There shall-be no presumption in terms of paragraph 1 of Article 6 that a subsidy granted by 
a developing country Member results in serious prejudice, as defined in this Agreement. Such serious 
prejudice, where applicable under the terms of paragraph 9, shall be demonstrated by positive evidence, 
in accordance with the provisions of paragraphs 3 through 8 of Article 6. 
27.9 Regarding actionable subsidies granted or maintained by a developing country Member other 
than those referred to in paragraph 1 of Article 6, action may not be authorized or taken under Article 7 
unless nullification or impairment of tariff concessions or other obligations under GATT 1994 is found 
to exist as a result of such a subsidy, in such a way as to displace or impede imports of a like product 
of another Member into the market of the subsidizing developing country Member or unless injury 
to a domestic industry in the market of an importing Member occurs. 
27.10 Any countervailing duty investigation of a product originating in a developing country Member 
shall be terminated as soon as the authorities concerned determine that: 
(a) the overall level of subsidies granted upon the product in question does not 
exceed 2 per cent of its value calculated on a per unit basis; or 
(b) the volume ofthe subsidized imports represents less than 4 per cent ofthe total 
imports of the like product in the importing Member, unless imports from 
developing country Members whose individual shares of total imports represent 
less than 4 per cent collectively account for more than 9 per cent ofthe total 
imports of the like product in the importing Member. 
27.11 For those developing country Members within the scope of paragraph 2(b) which have eliminated 
export subsidies prior to the expiry of the period of eight years from the date of entry into force of 
the WTO Agreement, and for those developing country Members referred to in Annex VII, the number 
in paragraph 10(a) shall be 3 per cent rather than 2 per cent. This provision shall apply from the 
date that the elimination of export subsidies is notified to the Committee, and for so long as export 
subsidies are not granted by the notifying developing country Member. This provision shall expire 
eight years from the date of entry into force of the WTO Agreement. 
Page 259 
27.12 The provisions of paragraphs 10 and 11 shall govern any determination of de minimis under 
paragraph 3 of Article 15. 
27.13 The provisions of Part III shall not apply to direct forgiveness of debts, subsidies to cover social 
costs, in whatever form, including relinquishment of government revenue and other transfer of liabilities 
when such subsidies are granted within and directly linked to a privatization programme of a developing 
country' Member, provided that both such programme and the subsidies involved are granted for a 
limited period and notified to the Committee and that the programme results in eventual privatization 
of the enterprise concerned. 
27.14 The Committee shall, upon request by an interested Member, undertake a review of a specific 
export subsidy practice of a developing country Member to examine whether the practice is in conformity' 
with its development needs. 
27.15 The Committee shall, upon request by an interested developing country Member, undertake 
a review of a specific countervailing measure to examine whether it is consistent with the provisions 
of paragraphs 10 and 11 as applicable to the developing country Member in question. 
PART IX: TRANSITIONAL ARRANGEMENTS 
Article 28 
Existing Programmes 
28.1 Subsidy programmes which have been established within the territory' of any Member before 
Page 260 
(a) Subsidy programmes falling within the scope of paragraph 1(d) of Article 6 shall not 
be actionable under Article 7; 
(b) With respect to other actionable subsidies, the provisions of paragraph 9 of Article 27 
shall apply. 
29.3 Subsidy programmes falling within the scope of Article 3 shall be notified to the Committee 
by the earliest practicable date after the date of entry into force of the WTO Agreement. Further 
notifications of such subsidies may be made up to two years after the date of entry into force of the 
WTO Agreement. 
29.4 In exceptional circumstances Members referred to in paragraph 1 may be given departures 
from their notified programmes and measures and their time-frame by the Committee if such departures 
are deemed necessary for the process of transformation. 
PART X: DISPUTE SETTLEMENT 
Article 30 
The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the 
Dispute Settlement Understanding shall apply to consultations and the settlement of disputes under 
this Agreement, except as otherwise specifically provided herein. 
PART XI: FINAL PROVISIONS 
Article 31 
Proxisional Application 
The provisions of paragraph 1 of Article 6 and the provisions of Article 8 and Article 9 shall 
apply for a period of five years, beginning with the date of entry into force of the WTO Agreement. 
Not later than 180 days before the end of this period, the Committee shall review the operation of 
those provisions, with a view to determining whether to extend their application, either as presently 
drafted or in a modified form, for a further period. 
Article 32 
Other Final Provisions 
32.1 No specific action against a subsidy of another Member can be taken except in accordance 
with the provisions of GATT 1994. as interpreted by this Agreement.56 
32.2 Reservations may not be entered in respect of any ofthe provisions of this Agreement without 
the consent of the other Members. 
*This paragraph is not intended to preclude action under other relevant provisions of GATT 1994. where appropriate. 
Page 261 
32.3 Subject to paragraph 4, the provisions of this Agreement shall apply to investigations, and reviews 
of existing measures, initiated pursuant to applications which have been made on or after the date of 
entry into force for a Member of the WTO Agreement. 
32.4 For the purposes of paragraph 3 of Article 21, existing countervailing measures shall be deemed 
to be imposed on a date not later than the date of entry into force for a Member of the WTO Agreement, 
except in cases in which the domestic legislation of a Member in force at that date already included 
a clause of the type provided for in that paragraph. 
32.5 Each Member shall take all necessary steps, of a general or particular character, to ensure, 
not later than the date of entry into force of the WTO Agreement for it. the conformity of its laws, 
regulations and administrative procedures with the provisions of this Agreement as they may apply 
to the Member in question. 
32.6 Each Member shall inform the Committee of any changes in its laws and regulations relevant 
to this Agreement and in the administration of such laws and regulations. 
32.7 The Committee shall review annually the implemenution and operation of this Agreement, 
taking into account the objectives thereof. The Committee shall inform annually the Council for Trade 
in Goods of developments during the period covered by such reviews. 
32.8 The Annexes to this Agreement constitute an integral part thereof. 
Page 262 
ANNEX I 
ILLUSTRATIVE LIST OF EXPORT SUBSIDIES 
(a) The provision by governments of direct subsidies to a firm or an industry contingent upon 
export performance. 
(b) Currency retention schemes or any similar practices which involve a bonus on exports. 
(c) Internal transport and freight charges on export shipments, provided or mandated by 
governments, on terms more favourable than for domestic shipments. 
•(d) The provision by governments or their agencies either directly or indirectly through 
government-mandated schemes, of imported or domestic products or services for use in the 
production of exported goods, on terms or conditions more favourable than for provision of 
like or directly competitive products or services for use in the production of goods for domestic 
consumption, if (in the case of products) such terms or conditions are more favourable than 
those commercially available57 on world markets to their exporters. 
(e) The full or partial exemption remission, or deferral specifically related to exports, of direct 
taxes** or social welfare charges paid or payable by industrial or commercial enterprises.59 
(f) The allowance of special deductions directly related to exports or export performance, over 
and above those granted in respect to production for domestic consumption, in the calculation 
of the base on which direct taxes are charged. 
'"The term "commercially available" means that the choice between domestic and imported products is unrestricted and 
depend»« only on commercial considerations. 
**lor the purpose ol this Agreement: 
The term "direct taxes" shall mean taxes on wages, profits, interests, renfs, royalties, and all other forms of income, 
and taxes on the ownership of real property: 
The term "impon charges" shall mean tariffs, duties, and other fiscal charges not elsewhere enumerated in this 
note that arc levied on imports: 
The term "indirect taxes" shall mean sales, excise, turnover, value added, franchise, stamp, transfer, inventory 
and equipment taxes, border taxes and all taxes other than direct taxes and import charges; 
"Prior-stage" indirect taxes are those levied on goods or services used directly or indirectly in making the product: 
"Cumulative* indirect taxes are multi-staged taxes levied where there is no mechanism for subsequent crediting 
of the tax if the goods or services subject to tax at one suge of production are used in a succeeding stage of production; 
"Remission" of taxes includes the refund or rebate of taxes; 
"Remission or drawback" includes the full or partial exemption or deferral of import charges. 
*Thc Members recognize that deferral need not amount to an export subsidy where, for example, appropriate interest 
charges are collected. The Members reaffirm the principle that prices for goods in transactions between exporting enterprises 
and foreign buyers under their or under the same control should for tax purposes be the prices which would be charged between 
independent enterprises acting at arm's length. Any Member may draw the attention of another Member to administrative 
or other practices which may contravene this principle and which result in a significant saving of direct taxes in export 
transactions. In such circumstances the Members shall normally anempt to resolve their differences using the facilities of 
existing bilateral tax treaties or other specific international mechanisms, without prejudice to the rights and obligations of 
Members under GATT 1994. including the right of consultation created in the preceding sentence. 
Paragraph (e) is not intended to limit a Member from taking measures to avoid the double taxation of foreign-source 
income earned by its enterprises or the enterprises of another Member. 
Page 263 
(g) The exemption or remission, in respect ofthe production and distribution of exported products, 
of indirect taxes58 in excess of those levied in respect ofthe production and distribution of like 
products when sold for domestic consumption. 
(h) The exemption, remission or deferral of prior-stage cumulative indirect taxes58 on goods or 
services used in the production of exported products in excess of the exemption, remission 
or deferral of like prior-stage cumulative indirect taxes on goods or services used in the 
production of like products when sold for domestic consumption; provided, however, that 
prior-stage cumulative indirect taxes may be exempted, remitted or deferred on exported products 
even when not exempted, remitted or deferred on like products when sold for domestic 
consumption, if the prior-stage cumulative indirect taxes are levied on inputs that are consumed 
in the production ofthe exported product (making normal allowance for waste).60 This item 
shall be interpreted in accordance with the guidelines on consumption of inputs in the production 
process contained in Annex II. 
(i) The remission or drawback of import charges58 in excess of those levied on imported inputs 
that are consumed in the production of the exported product (making normal allowance for 
waste); provided, however, that in particular cases a firm may use a quantity of home market 
inputs equal to, and having the same quality and characteristics as, the imported inputs as a 
substitute for them in order to benefit from this provision if the import and the corresponding 
export operations both occur within a reasonable time period, not to exceed two years. This 
item shall be interpreted in accordance with the guidelines on consumption of inputs in the 
production process contained in Annex II and the guidelines in the determination of substitution 
drawback systems as export subsidies contained in Annex III. 
(j) The provision by governments (or special instimtions controlled by governments) of export 
credit guarantee or insurance programmes, of insurance or guarantee programmes against 
increases in the cost of exported products or of exchange risk programmes, at premium rates 
which are inadequate to cover the long-term operating costs and losses ofthe programmes. 
(k) The grant by governments (or special instimtions controlled by and/or acting under the authority 
of governments) of export credits at rates below those which they actually have to pay for the 
funds so employed (or would have to pay if they borrowed on international capital markets 
in order to obtain funds of the same maturity and other credit terms and denominated in the 
same currency as the export credit), or the payment by them of all or part of the costs incurred 
by exporters or financial institutions in obtaining credits, in so far as they are used to secure 
a material advantage in the field of export credit terms. 
Provided, however, that if a Member is a party to an international undertaking on official export 
credits to which at least twelve original Members to this Agreement are parties as of 
1 January 1979 (or a successor undertaking which has been adopted by those original Members), 
or if in practice a Member applies the interest rates provisions of the relevant undertaking, 
an export credit practice which is in conformity with those provisions shall not be considered 
an export subsidy prohibited by this Agreement. 
(I) Any other charge on the public account constituting an export subsidy in the sense of Article XVI 
of G ATT 1994. 
"Paragraph (h) does not apply to value-added tax systems and border-ux adjustment in lieu thereof; the problem of 
the excessive remission of value-added uxes is exclusively covered by paragraph (g). 
Page 264 
ANNEX II 
GUIDELINES ON CONSUMPTION OF INPUTS IN THE PRODUCTION PROCESS61 
I 
1. Indirect tax rebate schemes can allow for exemption, remission or deferral of prior-stage 
cumulative indirect taxes levied on inputs that are consumed in the production of the exported product 
(making normal allowance for waste). Similarly, drawback schemes can allow for the remission or 
drawback of import charges levied on inputs that are consumed in the production ofthe exported product 
(making normal allowance'for waste). 
2. The Illustrative List of Export Subsidies in Annex I of this Agreement makes reference to the 
term "inputs that are consumed in the production ofthe exported product" in paragraphs (h) and (i). 
Pursuant to paragraph (h), indirect tax rebate schemes can constitute an export subsidy to the extent 
that they result in exemption, remission or deferral of prior-stage cumulative indirect taxes in excess 
ofthe amount of such taxes actually levied on inputs that are consumed in the production ofthe exported 
product. Pursuant to paragraph (i), drawback schemes can constitute an export subsidy to the extent 
that they result in a remission or drawback of import charges in excess of those actually levied on inputs 
that are consumed in the production of the exported product. Both paragraphs stipulate that normal 
allowance for waste must be made in findings regarding consumption of inputs in the production of 
the exported product. Paragraph (i) also provides for substitution, where appropriate. 
II 
In examining whether inputs are consumed in the production of the exported product, as part 
of a countervailing duty investigation pursuant to this Agreement, investigating authorities should proceed 
on the following basis: 
1. Where it is alleged that an indirect tax rebate scheme, or a drawback scheme, conveys a subsidy 
by reason of over-rebate or excess drawback of indirect taxes or import charges on inputs consumed 
in the production ofthe exported product, the investigating authorities should first determine whether 
the government of the exporting Member has in place and applies a system or procedure to confirm 
which inputs are consumed in the production of the exported product and in what amounts. Where 
such a system or procedure is determined to be applied, the investigating authorities should then examine 
the system or procedure to see whether it is reasonable, effective for the purpose intended, and based 
on generally accepted commercial practices in the country of export. The investigating authorities 
may deem it necessary to carry out, in accordance with paragraph 6 of Article 12, certain practical 
tests in order to verify1 information or to satisfy themselves that the system or procedure is being 
effectively applied. 
2. Where there is no such system or procedure, where it is not reasonable, or where it is instituted 
and considered reasonable but is found not to be applied or not to be applied effeaively, a further 
examination by the exporting Member based on the actual inputs involved would need to be carried 
out in the context of determining whether an excess payment occurred. If the investigating authorities 
deemed it necessary, a further examination would be carried out in accordance with paragraph 1. 
''Inputs consumed in the production process are inputs physically incorporated, energy. fuels and oil used in the production 
process and caulysts which are consumed in the course of their use to obuin the exported product. 
Page 265 
3. Investigating authorities should treat inputs as physically incorporated if such inputs are used 
in the production process and are physically present in the product exported. The Members note that 
an input need not be present in the final product in the .same form in which it entered the production 
process. 
•4. In determining the amount of a particular input that is consumed in the production of the exported 
product, a "normal allowance for waste" should be taken into account, and such waste should be treated 
as consumed in the production of the exported product. The term "waste" refers to that portion of 
a given input which does not serve an independent function in the production process, is not consumed 
in the production of the exported product (for reasons such as inefficiencies) and is not recovered, 
used or sold by the same manufacturer. 
5. The investigating authority's determination of whether the claimed allowance for waste is 
"normal" should take into account the production process, the average experience of the industry in 
the country of export, and other technical factors, as appropriate. The investigating authority should 
bear in mind that an important question is whether the authorities in the exporting Member have 
reasonably calculated the amount of waste, when such an amount is intended to be included in the tax 
or duty rebate or remission. 
Page 266 
ANNEX III 
GUIDELINES IN THE DETERMINATION OF SUBSTITUTION 
DRAWBACK SYSTEMS AS EXPORT SUBSIDIES 
I 
Drawback systems can allow for the refund or drawback of import charges on inputs which 
are consumed in the production process of another product and where the export of this latter product 
contains domestic inputs having the same quality and characteristics as those substituted for the imported 
inputs. Pursuant to paragraph (i) of the Illustrative List of Export Subsidies in Annex I, substitution 
drawback systems can constitute an export subsidy to the extent that they result in an excess drawback 
ofthe import charges levied initially on the imported inputs for which drawback is being claimed. 
II 
In examining any substitution drawback system as part of a countervailing duty investigation 
pursuant to this Agreement, investigating authorities should proceed on the following basis: 
1. Paragraph (i) of the Illustrative List stipulates that home market inputs may be substituted for 
imported inputs in the production of a product for export provided such inputs are equal in quantity 
to. and have the same quality and characteristics as. the imported inputs being substituted. The existence 
of a verification system or procedure is important because it enables the government ofthe exporting 
Member to ensure and demonstrate that the quantity of inputs for which drawback is claimed does 
not exceed the quantity of similar products exported, in whatever form, and that there is not drawback 
of import charges in excess of those originally levied on the imported inputs in question. 
2. Where it is alleged that a substitution drawback system conveys a subsidy, the investigating 
authorities should first proceed to determine whether the government of the exporting Member has 
in place and applies a verification system or procedure. Where such a system or procedure is determined 
to be applied, the investigating authorities should then examine the verification procedures to see whether 
they are reasonable, effective for the purpose intended, and based on generally accepted commercial 
practices in the country of export. To the extent that the procedures are determined to meet this test 
and are effectively applied, no subsidy should be presumed to exist. It may be deemed necessary 
by the investigating authorities to carry out. in accordance with paragraph 6 of Article 12, certain 
practical tests in order to verify information or to satisfy themselves that the verification procedures 
are being effectively applied 
3. Where there are no verification procedures, where they are not reasonable, or where such 
procedures are instituted and considered reasonable but are found not to be actually applied or not 
applied effectively, there may be a subsidy In such cases a further examination by the exporting 
Member based on the actual transactions involved would need to be carried out to determine whether 
an excess payment occurred. If the investigating authorities deemed it necessary, a further examination 
would be carried out in accordance with paragraph 2. 
4. The existence of a substitution drawback provision under which exporters are allowed to select 
particular import shipments on which drawback is claimed should not of itself be considered to convey 
a subsidy. 
Page 267 
5. An excess drawback of import charges in the sense of paragraph (i) would be deemed to exist 
where governments paid interest on any monies refunded under their drawback schemes, to the extent 
of the interest actually paid or payable. 
Page 268 
ANNEX IV 
CALCULATION OF THE TOTAL AD VALOREM SUBSIDIZATION 
(PARAGRAPH 1(A) OF ARTICLE ô)62 
1. Any calculation of the amount of a subsidy for the purpose of paragraph 1(a) of Article 6 shall 
be done in terms of the cost to the granting government. 
2. Except as provided in paragraphs 3 through 5, in determining whether the overall rate of 
subsidization exceeds 5 per cent ofthe value ofthe product, the value ofthe product shall be calculated 
as the total value ofthe recipient firm's63 sales in the most recent 12-month period, for which sales 
.data is available, preceding the period in which the subsidy is granted.64 
3. Where the subsidy is tied to the production or sale of a given product, the value of the product 
shall be calculated as the total value of the recipient firm's sales of that product in the most recent 
12-month period, for which sales data is available, preceding the period in which the subsidy is granted 
4. Where the recipient firm is in a start-up situation, serious prejudice shall be deemed to exist 
if the overall rate of subsidization exceeds 15 per cent of the total funds invested. For purposes of 
this paragraph, a start-up period will not extend beyond the first year of production.65 
5. Where the recipient firm is located in an inflationary economy country, the value ofthe product 
shall be calculated as the recipient firm's total sales (or sales ofthe relevant product, if the subsidy 
is tied) in the preceding calendar year indexed by the rate of inflation experienced in the 12 months 
preceding the month in which the subsidy is to be given. 
6. In determining the overall rate of subsidization in a given year, subsidies given under different 
programmes and by different authorities in the territory of a Member shall be aggregated. 
7. Subsidies granted prior to the date of entry into force of the WTO Agreement, the benefits 
of which are allocated to future production, shall be included in the overall rate of subsidization. 
8. Subsidies which are non-actionable under relevant provisions of this Agreement shall not be 
included in the calculation ofthe amount of a subsidy for the purpose of paragraph 1(a) of Article 6. 
^'An understanding among Members should be developed, as necessary, on matters which are not specified in this Annex 
or which need further clarification for the purposes of paragraph 1(a) of Anicle 6. 
^The recipient firm is a firm in the territory of the subsidizing Member. 
"In the case of tax-related subsidies the value of the product shall be calculated as the toul value of the recipient firms 
sales in the fiscal year in which the tax-related measure was earned. 
^Start-up situations include instances where financial commitments for product development or construction of facilities 
to manufacture products benefiting from thé subsidy have been made, even though production has not begun. 
Page 269 
ANNEX V 
PROCEDURES FOR DEVELOPING INFORMATION CONCERNING SERIOUS PREJUDICE 
1. Every Member shall cooperate in the development of evidence to be examined by a panel in 
procedures under paragraphs 4 through 6 of Article 7. The parties to the dispute and any third-country 
Member concerned shall notify1 to the DSB, as soon as the provisions of paragraph 4 of Article 7 have 
been invoked, the organization responsible for administration of this provision within its territory and 
the procedures to be used to comply with requests for information. 
2. In cases where matters are referred to the DSB under paragraph 4 of Article 7, the DSB shall, 
upon request, initiate the procedure to obtain such information from the government ofthe subsidizing 
Member as necessary to establish the existence and amount of subsidization, the value of total sales 
ofthe subsidized firms, as well as information necessary to analyze the adverse effects caused by the 
subsidized product.66 This process may include, where appropriate, presentation of questions to the 
government ofthe subsidizing Member and ofthe complaining Member to collect information, as well 
as to clarify and obtain elaboration of information available to the parties to a dispute through the 
notification procedures set forth in Part VII.6" 
3. In the case of effects in third-country markets, a party to a dispute may collect information, 
including through the use of questions to the government of the third-country Member, necessary to 
analyse adverse effects, which is not otherwise reasonably available from the complaining Member 
or the subsidizing Member. This requirement should be administered in such a way as not to impose 
an unreasonable burden on the third-country Member. In particular, such a Member is not expected 
to make a market or price analysis specially for that purpose. The information to be supplied is that 
which is already available or can be readily obtained by this Member (e.g. most recent statistics which 
have already been gathered by relevant statistical sen-ices but which have not yet been published, customs 
data concerning imports and declared values ofthe products concerned, etc.). However, if a party 
to a dispute undertakes a detailed market analysis at its own expense, the task of the person or firm 
conducting such an analysis shall be facilitated by the authorities of the third-country Member and 
such a person or firm shall be given access to all information which is not normally maintained 
confidential by the government. 
4. The DSB shall designate a representative to serve the function of facilitating the 
information-gathering process. The sole purpose of the representative shall be to ensure the timely 
development of the information necessary to facilitate expeditious subsequent multilateral review of 
the dispute. In particular, the representative may suggest ways to most efficiently solicit necessary 
information as well as encourage the cooperation of the parties. 
5. The information-gathering process outlined in paragraphs 2 through4 shall be completed within 
60 days of the date on which the matter has been referred to the DSB under paragraph 4 of Article 7. 
The information obtained during this process shall be submitted to the panel established by the DSB 
in accordance with the provisions of Pan X. This information should include, inter alia, data concerning 
the amount ofthe subsidy in question (and. where appropriate, the value of total sales ofthe subsidized 
firms), prices ofthe subsidized product, prices ofthe non-subsidized product, prices of other suppliers 
to the market, changes in the supply ofthe subsidized product to the market in question and changes 
^In cases where the existence of serious prejudice has to be demonstrated. 
'The information-gathering process by the DSB shall take into account the need to protect information which is by nature 
confidential or which is provided on a confidential basis by any Member involved in this process. 
Page 270 
in market shares. It should also include rebuttal evidence, as well as such supplemental information 
as the panel deems relevant in the course of reaching its conclusions. 
6. If the subsidizing and/or third-country Member fail to cooperate in the information-gathering 
process, the complaining Member will present its case of serious prejudice, based on evidence available 
to it, together with facts and circumstances ofthe non-cooperation ofthe subsidizing and/or third-country 
Member. Where information is unavailable due to non-cooperation by the subsidizing and/or 
third-country Member, the panel may complete the record as necessary relying on best information 
otherwise available. 
7. In making its determination, the panel should'draw adverse inferences from instances of non-
cooperation by any party involved in the information-gathering process. 
8. In making a determination to use either best information available or adverse inferences, the 
panel shall consider the advice of the DSB representative nominated under paragraph 4 as to the 
reasonableness of any requests for information and the efforts made by parties to comply with these 
requests in a cooperative and timely manner. 
9. Nothing in the information-gathering process shall limit the ability ofthe panel to seek such 
additional information it deems essential to a proper resolution to the dispute, and which was not 
adequately sought or developed during that process. However, ordinarily the panel should not request 
additional information to complete the record where the information would support a particular party's 
position and the absence ofthat information in the record is the result of unreasonable non-cooperation 
by that party in the information-gathering process. 
Page 271 
ANNEX VI 
PROCEDURES FOR ON-THE-SPOT INVESTIGATIONS PURSUANT TO 
PARAGRAPH 6 OF ARTICLE 12 
1. Upon initiation of an investigation, the authorities ofthe exporting Member and the firms known 
to be concerned should be informed of the intention to carry out on-the-spot investigations. 
2. If in exceptional circumstances it is intended to include non-governmental experts in the 
investigating team, the firms and the authorities ofthe exporting Member should be so informed. Such 
non-governmental experts should be subject to effective sanctions for breach of confidentiality 
requirements. 
3. It should be standard practice to obtain explicit agreement of the firms concerned in the exporting 
Member before the visit is finally scheduled. 
4. As soon as the agreement ofthe firms concerned has been obtained, the investigating authorities 
should notify the authorities of the exporting Member of the names and addresses of the firms to be 
visited and the dates agreed. 
5. Sufficient advance notice should be given to the firms in question before the visit is made. 
6 Visits to explain the questionnaire should only be made at the request of an exporting firm. 
In case of such a request the investigating authorities may place themselves at the disposal ofthe firm; 
such a visit may only be made if (a) the authorities ofthe importing Member notify the representatives 
of the government of the Member in question and (b) the latter do not object to the visit. 
As the main purpose of the on-the-spot investigation is to verify information provided or to 
obtain further details, it should be carried out after the response to the questionnaire has been received 
unless the firm agrees to the contrary and the government of the exponing Member is informed by 
the investigating authorities ofthe anticipated visit and does not object to it; further, it should be standard 
practice prior to the visit to advise the firms concerned ofthe general nature ofthe information to be 
verified and of any further information which needs to be provided, though this should not preclude 
requests to be made on the spot for further details to be provided in the light of information obtained. 
8. Enquiries or questions put by the authorities or firms ofthe exporting Members and essential 
to a successful on-the-spot investigation should, whenever possible, be answered before the visit is 
made 
Page 272 
ANNEX VII 
DEVELOPING COUNTRY MEMBERS REFERRED TO 
IN PARAGRAPH 2(A) OF ARTICLE 27 
The developing country Members not subject to the provisions of paragraph 1(a) of Article 3 
under the terms of paragraph 2(a) of Article 27 are: 
(a) Least-developed countries designated as such by the United Nations which are Members of 
• the WTO. 
(b) Each of the following developing countries which are Members of the WTO shall be subject 
to the provisions which are applicable to other developing country Members according to 
paragraph 2(b) of Article 27 when GNP per capita has reached $1,000 per annum68: Bolivia, 
Cameroon, Congo, Côte d'Ivoire, Dominican Republic, Egypt, Ghana, Guatemala, Guyana, 
India, Indonesia, Kenya, Morocco, Nicaragua, Nigeria, Pakistan, Philippines, Senegal, Sri Lanka 
and Zimbabwe. 
**The inclusion of developing country Members in the list in paragraph (b) is based on the most recent data from the 
World Bank on GNP per capita. 
Page 273 
AGREEMENT ON SAFEGUARDS 
Members, 
Having in mind the overall objective ofthe Members to improve and strengthen the international 
trading system based on GATT 1994; 
Recognizing the need to clarify and reinforce the disciplines of GATT 1994, and specifically 
those of its Article XDC (Emergency Action on Imports of Particular Products), to re-establish multilateral 
control over safeguards and eliminate measures that escape such control; 
Recognizing the importance of structural adjustment and the need to enhance rather than limit 
competition in international markets; and 
Recognizing further that, for these purposes, a comprehensive agreement, applicable to all 
Members and based on the basic principles of GATT 1994, is called for; 
Hereby agree as follows: 
Article 1 
General Provision 
This Agreement establishes rules for the application of safeguard measures which shall be 
understood to mean those measures provided for in Article XlX^of GATT 1994. 
Article 2 
Conditions 
1. A Member1 may apply a safeguard measure to a product only if that Member has determined, 
pursuant to the provisions set out below, that such product is being imported into its territory in such 
increased quantities, absolute or relative to domestic production, and under such conditions as to cause 
or threaten to cause serious injury to the domestic industry that produces like or directly competitive 
products. 
2. Safeguard measures shall be applied to a product being imported irrespective of its source. 
'A customs union may apply a safeguard measure as a single unit or on behalf of a member State. When a customs 
union applies a safeguard measure as a single unit, all the requirements for the determination of serious injury or threat thereof 
under this Agreement shall be based on the conditions existing in the customs union as a whole. When a safeguard measure 
is applied on behalf of a member Sute. all the requirements for the determination of serious injury or threat thereof shall 
be based on the conditions existing in that member Sute and'the measure shall be limited to that member Sute. Nothing 
in this Agreement prejudges the interpreution of the relationship between Article XDC and paragraph 8 of Article XXIV 
of GATT 1994. 
Page 274 
Article 3 
Investigation 
1. A Member may apply a safeguard measure only following an investigation by the competent 
authorities ofthat Member pursuant to procedures previously established and made public in consonance 
with Article X of GATT 1994. This investigation shall include reasonable public notice to all interested 
parties and public hearings or other appropriate means in which importers, exporters and other interested 
parties could present evidence and their views, including the opportunity to respond to the presentations 
of other parties and to submit their views, inter alia, as to whether or not the application of a safeguard 
measure would be in the public interest. The competent authorities shall publish a report setting forth 
their findings and reasoned conclusions reached on all pertinent issues of fact and law. 
2- Any information which is by nature confidential or which is provided on a confidential basis 
shall, upon cause being shown, be treated as such by the competent authorities. Such information shall 
not be disclosed without permission ofthe party submitting it. Parties providing confidential information 
may be requested to furnish non-confidential summaries thereof or, if such parties indicate that such 
information cannot be summarized, the reasons why a summary cannot be provided. However, if the 
competent authorities find that a request for confidentiality is not warranted and if the party concerned 
is either unwilling to make the information public or to authorize its disclosure in generalized or summary 
form, the authorities may disregard such information unless it can be demonstrated to their satisfaction 
from appropriate sources that the information is correct. 
Article 4 
Determination of Serious Injury or Threat Thereof 
1. For the purposes of this Agreement: 
(a) "serious injury'" shall be understood to mean a significant overall impairment in the 
position of a domestic industry; 
(b) "threat of serious injury" shall be understood to mean serious injury that is clearly 
imminent, in accordance with the provisions of paragraph 2. A determination of the 
existence of a threat of serious injury shall be based on facts and not merely on 
allegation, conjecture or remote possibility; and 
(c) in determining injury or threat thereof, a "domestic industry" shall be understood to 
mean the producers as a whole of the like or directly competitive products operating 
within the territory of a Member, or those whose collective output ofthe like or directly 
competitive products constitutes a major proportion of the total domestic production 
of those products. 
2. (a) In the investigation to determine whether increased imports have caused or are 
threatening to cause serious injury to a domestic industry under the terms of this Agreement, the 
competent authorities shall evaluate all relevant factors of an objective and quantifiable nature having 
a bearing on the situation ofthat industry, in particular, the rate and amount ofthe increase in imports 
of the product concerned in absolute and relative terms, the share of the domestic market taken by 
increased imports, changes in the level of sales, production, productivity, capacity utilization, profits 
and losses, and employment. 
Page 275 
(b) The determination referred to in subparagraph (a) shall not be made unless this 
investigation demonstrates, on the basis of objective evidence, the existence ofthe causal link between 
increased imports of the product concerned and serious injury or threat thereof. When factors other 
than increased imports are causing injury to the domestic industry at the same time, such injury shall 
not be attributed to increased imports. 
(c) The competent authorities shall publish promptly, in accordance with the provisions 
of Article 3, a detailed analysis of the case under investigation as well as a demonstration of the relevance 
of the factors examined. 
Article 5 
Application of Safeguard Measures 
1. A Member shall apply safeguard measures only to the extent necessary to prevent or remedy 
serious injury and to facilitate adjustment. If a quantitative restriction is used, such a measure shall 
not reduce the quantity of imports below the level of a recent period which shall be the average of 
imports in the last three representative years for which statistics are available, unless clear justification 
is given that a different level is necessary to prevent or remedy serious injury. Members should choose 
measures most suitable for the achievement of these objectives. 
2. (a) In cases in which a quota is allocated among supplying countries, the Member applying 
the restrictions may seek agreement with respect to the allocation of shares in the quota with all other 
Members having a substantial interest in supplying the product concerned. In cases in which this method 
is not reasonably practicable, the Member concerned shall allot to Members having a substantial interest 
in supplying the product shares based upon the proportions, supplied by such Members during a previous 
representative period, of'the total quantity or value of imports ofthe product, due account being taken 
of any special factors which may have affected or may be affecting the trade in the product. 
(b) A Member may depart from the provisions in subparagraph (a) provided that consultations 
under paragraph 3 of Article 12 are conducted under the auspices of the Committee on Safeguards 
provided for in paragraph 1 of Article 13 and that clear demonstration is provided to the Committee 
that (/') imports from certain Members have increased in disproportionate percentage in relation to the 
total increase of imports of the product concerned in the representative period, (ii) the reasons for 
the departure from the provisions in subparagraph (a) are justified, and (iii) the conditions of such 
departure are equitable to all suppliers of the product concerned. The duration of any such measure 
shall not be extended beyond the initial period under paragraph 1 of Article 7. The departure referred 
to above shall not be permitted in the case of threat of serious injury. 
Article 6 
Provisional Safeguard Measures 
In critical circumstances where delay would cause damage which it would be difficult to repair, 
a Member may take a provisional safeguard measure pursuant to a preliminary determination that there 
is clear evidence that increased imports have caused or are threatening to cause serious injury. The 
duration of the provisional measure shall not exceed 200 days, during which period the pertinent 
requirements of Articles 2 through 7 and 12 shall be met. Such measures should take the form of 
tariff increases to be promptly refunded if the subsequent investigation referred to in paragraph 2 of 
Article 4 does not determine that increased imports have caused or threatened to cause serious injury 
Page 276 
to a domestic industry. The duration of any such provisional measure shall be counted as a part of 
the initial period and any extension referred to in paragraphs 1, 2 and 3 of Article !.. 
Article 7 
Duration and Review of Safeguard Measures 
1. A Member shall apply safeguard measures only for such period of time as may be necessary 
to prevent or remedy serious injury and to facilitate adjustment. The period shall not exceed four years, 
unless it is extended under paragraph 2. 
2. The period mentioned in paragraph 1 may be extended provided that the competent authorities 
of the importing Member have determined, in conformity with the procedures set out in Articles 2, 
3. 4 and 5, that the safeguard measure continues to be necessary to prevent or remedy serious injury 
and that there is evidence that the industry is adjusting, and provided that the pertinent provisions 
of Articles 8 and 12 are observed. 
3. The total period of application of a safeguard measure including the period of application of 
any provisional measure, the period of initial application and any extension thereof, shall not exceed 
eight years. 
4. In order to facilitate adjustment in a situation where the expected duration of a safeguard measure 
as notified under the provisions of paragraph 1 of Article 12 is over one year, the Member applying 
the measure shall progressively liberalize it at regular intervals during the period of application. If 
the duration ofthe measure exceeds three years, the Member applying such a measure shall review 
the situation not later than the mid-term of the measure and, if appropriate, withdraw it or increase 
the pace of liberalization. A measure extended under paragraph 2 shall not be more restrictive than 
it was at the end of the initial period, and should continue to be liberalized. 
5. No safeguard measure shall be applied again to the import of a product which has been subject 
to such a measure, taken after the date of entry into force of the WTO Agreement, for a period of 
time equal to that during which such measure had been previously applied, provided that the period 
of non-application is at least two years. 
6. Notwithstanding the provisions of paragraph 5, a safeguard measure with a duration of 180 days 
or less may be applied again to the import of a product if: 
(a) at least one year has elapsed since the date of introduction of a safeguard measure on 
the import of that product; and 
(b) such a safeguard measure has not been applied on the same product more than twice 
in the five-year period immediately preceding the date of introduction of the measure. 
Article 8 
Level of Concessions and Other Obligations 
1. A Member proposing to apply a safeguard measure or seeking an extension of a safeguard 
measure shall endeavour to maintain à substantially equivalent level of concessions and other obligations 
to that existing under GATT 1994 between it and the exporting Members which would be affected 
by such a measure, in accordance with the provisions of paragraph 3 of Article 12. To achieve this 
Page 277 
objective, the Members concerned may agree on any adequate means of trade compensation for the 
adverse effects pf the measure on their trade. 
2. If no agreement is reached within 30 days in the consultations under paragraph 3 of Article 12, 
then the affected exporting Members shall be free, not later than 90 days after the measure is applied, 
to suspend, upon the expiration of 30 days from the day on which written notice of such suspension 
is received by the Council for Trade in Goods, the application of substantially equivalent concessions 
or other obligations under GATT 1994, to the trade ofthe Member applying the safeguard measure, 
the suspension of which the Council for Trade in Goods does not disapprove. 
3. The right of suspension referred to in paragraph 2 shall not be exercised for the first three 
years that a safeguard measure is in effect, provided that the safeguard measure has been taken as a 
result of an absolute increase in imports and that such a measure conforms to the provisions of this 
Agreement. 
Article 9 
Developing Country Members 
1. Safeguard measures shall not be applied against a product originating in a developing country-
Member as long as its share of imports of the product concerned in the importing Member does not 
exceed 3 per cent, provided that developing country Members with less than 3 per cent import share 
collectively account for not more than 9 per cent of total imports of the product concerned.2 
2. A developing country Member shall have the right to extend the period of application of a 
safeguard measure for a period of up to two years beyond the maximum period provided for in 
paragraph 3 of Article 7. Notwithstanding the provisions of paragraph 5 of Article 7, a developing 
country Member shall have the right to apply a safeguard measure again to the import of a product 
which has been subject to such a measure, taken after the date of entry into force of the WTO Agreement. 
after a period of time equal to half that during which such a measure has been previously applied, 
provided that the period of non-application is at least two years. 
Article 10 
Pre-existing Article XDC Measures 
Members shall terminate all safeguard measures taken pursuant to Article XIX of GATT 1947 
that were in existence on the date of entry into force ofthe WTO Agreement not later than eight years 
after the date on which they were first applied or five years after the date of entry into force of the 
WTO Agreement, whichever comes later. 
2A Member shall immediately notify an action uken under paragraph 1 of Article 9 to the Committee on Safeguards. 
Page 278 
Article 11 
Prohibition and Elimination of Certain Measures 
1. (a) A Member shal 1 not take or seek any emergency action on imports of particular products 
as set forth in Article XIX of GATT 1994- unless such action conforms with the provisions of that 
Article applied in accordance with this Agreement. 
(b) Furthermore, a Member shall not seek, take or maintain any voluntary export restraints, 
orderly marketing arrangements or any other similar measures on the export or the import side.3,4 
These include actions taken by a single Member as well as actions under agreements, arrangements 
and understandings entered into by two or more Members. Any such measure in effect on the date 
of entry into force of the WTO Agreement shall be brought into conformity with this Agreement or 
phased out in accordance with paragraph 2. 
(c) • This Agreement does not apply to measures sought, taken or maintained by a Member 
pursuant to provisions of GATT 1994 other than Article XIX, and Multilateral Trade Agreements in 
Annex 1A other than this Agreement, or pursuant to protocols and agreements or arrangements concluded 
within the framework of GATT 1994. 
2. The phasing out of measures referred to in paragraph 1(b) shall be carried out according to 
timetables to be presented to the Committee on Safeguards by the Members concerned not later than 
180 days after the date of entry into force of the WTO Agreement. These timetables shall provide 
for all measures referred to in paragraph 1 to be phased out or brought into conformity with this 
Agreement within a period not exceeding four years after the date of entry into force of the 
WTO Agreement, subject to not more than one specific measure per importing Member5, the duration 
of which shall not extend beyond 31 December 1999. Any such exception must be mutually agreed 
between the Members directly concerned and notified to the Committee on Safeguards for its review 
and acceptance within 90 days of the entry into force of the WTO Agreement. The Annex to this 
Agreement indicates a measure which has been agreed as falling under this exception. 
3. Members shall not encourage or support the adoption or maintenance by public and private 
enterprises of non-governmental measures equivalent to those referred to in paragraph 1. 
Article 12 
Notification and Consultation 
1. A Member shall immediately notify' the Committee on Safeguards upon: 
(a) initiating an investigatory process relating to serious injury or threat thereof and the 
reasons for it; 
'An impon quou applied as a safeguard measure in conformity with the relevant provisions of GATT 1994 and this 
Agreement may. by mutual agreement, be administered by the exponing Member. 
'Examples of similar measures include expon moderation, expon-price or import-price monitoring systems, export or 
import surveillance, compulsory import cartels and discretionary export or import licensing schemes, any of which afford 
protection. 
The only such exception to which the European Communities is entitled is indicated in the Annex to this Agreement. 
Page 279 
(b) making a finding of serious injury or threat thereof caused by increased imports; and 
(c) taking a decision to apply or extend a safeguard measure. 
2. In making the notifications referred to in paragraphs 1(b) and 1(c), the Member proposing 
to apply or extend a safeguard measure shall provide the Committee on Safeguards with all pertinent 
information, which shall include evidence of serious injury or threat thereof caused by increased imports, 
precise description ofthe product involved and the proposed measure, proposed date of introduction, 
expected duration and timetable for progressive liberalization. In the case of an extension of a measure, 
evidence that the industry concerned is adjusting shall also be provided. The Council for Trade in 
Goods or the Committee on Safeguards may request such additional information as they may consider 
necessary from the Member proposing to apply or extend the measure. 
3 A Member proposing to apply or extend a safeguard measure shall provide adequate opportunity 
for prior consultations with those Members having a substantial interest as exporters of the product 
concerned, with a view to, inter alia, reviewing the information provided under paragraph 2, exchanging 
views on the measure and reaching an understanding on ways to achieve the objective set out in 
paragraph 1 of Article 8. 
4. A Member shall make a notification to the Committee on Safeguards before taking a provisional 
safeguard measure referred to in Article 6. Consultations shall be initiated immediately after the measure 
is taken. 
5 The results of the consultations referred to in this Article, as well as the results of mid-term 
reviews referred to in paragraph 4 of Article 7, any form of compensation referred to in paragraph 1 
of Article 8. and proposed suspensions of concessions and other obligations referred to in paragraph 2 
of Article 8. shall be notified immediately to the Council for Trade in Goods by the Members concerned. 
6 Members shall notify promptly the Committee on Safeguards of their laws, regulations and 
administrative procedures relating to safeguard measures as well as any modifications made to them. 
7. Members maintaining measures described in Article 10 and paragraph 1 of Article 11 which 
exist on the date of entry into force ofthe WTO Agreement shall notify' such measures to the Committee 
on Safeguards not later than 60 days after the date of entry into force of the WTO Agreement. ' 
8 Any Member may notify the Committee on Safeguards of all laws, regulations, administrative 
procedures and any measures or actions dealt with in this Agreement that have not been notified by 
other Members that are required by this Agreement to make such notifications. 
9 Any Member may notify the Committee on Safeguards of any non-governmental measures 
referred to in paragraph 3 of Anicle 11. 
10. All notifications to the Council for Trade in Goods referred to in this Agreement shall normally 
be made through the Committee on Safeguards. 
11. The provisions on notification in this Agreement shall not require any Member to disclose 
confidential information the disclosure of which would impede law enforcement or otherwise be contrary 
to the public interest or would prejudice the legitimate commercial interests of particular enterprises, 
public or private. 
Page 280 
Article 13 
Surveillance 
1. A Committee on Safeguards is hereby established, under the authority ofthe Council for Trade 
in Goods, which shall be open to the participation of any Member indicating its wish to serve on it. 
The Committee will have the following functions: 
(a) to monitor, and report annually to the Council for Trade in Goods on, the general 
implementation of this Agreement and make recommendations towards its improvement; 
(b) to find, upon request of an affected Member, whether or not the procedural requirements 
of this Agreement have been complied with in connection with a safeguard measure, 
and report its findings to the Council for Trade in Goods; 
(c) ' to assist Members, if they so request, in their consultations under the provisions of 
this Agreement; 
(d) to examine measures covered by Article 10 and paragraph 1 of Article 11, monitor 
the phase-out of such measures and report as appropriate to the Council for Trade in 
Goods; 
(e) to review, at the request ofthe Member taking a safeguard measure, whether proposals 
to suspend concessions or other obligations are "substantially equivalent", and report 
as appropriate to the Council for Trade in Goods; 
(0 to receive and review all notifications provided for in this Agreement and report as 
appropriate to the Council for Trade in Goods; and 
(g) to perform any other function connected with this Agreement that the Council for Trade 
in Goods may determine. 
2. To assist the Committee in carrying out its surveillance function, the Secretariat shall prepare 
annually a factual report on the operation of this Agreement based on notifications and other reliable 
information available to it. 
Article 14 
Dispute Settlement 
The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the 
Dispute Settlement Understanding shall apply to consultations and the settlement of disputes arising 
under this Agreement. 
Page 281 
ANNEX 
EXCEPTION REFERRED TO IN PARAGRAPH 2 OF ARTICLE 11 
•^^^•^•^^^^^^^^^^^^^^^^^WM^^^BF====B™^•^-- ' ' • ———— " ' ' ' ' ———•~—*——•—-
Members concerned Product Termination 
EC/Japan Passenger cars, off road 31 December 1999 
vehicles, light commercial 
vehicles, light trucks (up 
to 5 tonnes), and the same 
vehicles in wholly 
knocked-down form (CKD 
sets). 
Page 282 
Page 283 
ANNEX IB 
GENERAL AGREEMENT ON TRADE IN SERVICES 
PART 1 SCOPE AND DEFINITION 
Article I . Scope and Definition 
PART II GENERAL OBLIGATIONS AND DISCIPLINES 
Article II Most-Favoured-Nation Treatment 
Article III Transparency 
Article III bis Disclosure of Confidential Information 
Article IV Increasing Participation of Developing Countries 
Article V Economic Integration 
Article V .bis Labour Markets Integration Agreements 
Anicle VI Domestic Regulation 
Article VII Recognition 
Article VIII " Monopolies and Exclusive Service Suppliers 
Article IX Business Practices 
Article X Emergency Safeguard Measures 
Anicle XI Payments and Transfers 
Anicle XII Restrictions to Safeguard the Balance of Payments 
Anicle XIII Government Procurement 
Article XIV General Exceptions 
Anicle XIV bis Security Exceptions 
Anicle XV Subsidies 
PART III SPECIFIC COMMITMENTS 
Anicle XVI 
Anicle XVII 
Article XVIII Market Access 
National Treatment 
Additional Commitments 
PART IV PROGRESSIVE LIBERALIZATION 
Article XIX Negotiation of Specific Commitments 
Article XX Schedules of Specific Commitments 
Article XXI Modification of Schedules 
PART V INSTITUTIONAL PROVISIONS 
Article XXII Consultation 
Article XXIII Dispute Settlement and Enforcement 
Article XXIV Council for Trade in Services 
Article XXV Technical Cooperation 
Article XXVI Relationship with Other International Organizations 
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PART VI FINAL PROVISIONS 
Article XXVII Denial of Benefits 
Article XXVIIl Definitions 
Article XXIX Annexes 
Annex on Article II Exemptions 
Annex on Movement of Natural Persons Supplying Services under the Agreement 
Annex on Air Transport Services 
Annex on Financial Services 
Second Annex on Financial Services 
Annex on Negotiations on Maritime Transport Services 
Annex on Telecommunications 
Annex on Negotiations on Basic Telecommunications 
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GENERAL AGREEMENT ON TRADE IN SERVICES 
Members, 
Recognizing the growing importance of trade in services for the growth and development of 
the world economy; 
Wishing to establish a multilateral framework of principles and rules for trade in services with 
a view to the expansion of such trade under conditions of transparency and progressive liberalization 
and as a means of promoting the economic growth of all trading partners and the development of 
developing countries; 
Desiring the early achievement of progressively higher levels of liberalization of trade in.services 
through successive rounds of multilateral negotiations aimed at promoting the interests of all participants 
on a mutually advantageous basis and at securing an overall balance of rights and obligations, while 
giving due respect to national poP.cy objectives; 
Recognizing the right of Members to regulate, and to introduce new regulations, on the supply 
of services within their territories in order to meet national policy objectives and, given asymmetries 
existing with respect to the degree of development of services regulations in different countries, the 
particular need of developing countries to exercise this right; 
Desiring to facilitate the increasing participation of developing countries in trade in services 
and the expansion of their service exports including, inter alia, through the strengthening of their 
domestic services capacity and its efficiency and competitiveness; 
Taking particular account ofthe serious difficulty ofthe least-developed countries in view of 
their special economic situation and their development, trade and financial needs; 
Hereby agree as follows: 
PART I 
SCOPE AND DEFINITION 
Article I 
Scope and Definition 
1. This Agreement applies to measures by Members affecting trade in services. 
2. For the purposes of this Agreement, trade in services is defined as the supply of a service: 
(a) from the territory of one Member into the territory of any other Member; 
(b) in the territory of one Member to the service consumer of any other Member; 
(c) by a service supplier of one Member, through commercial presence in the territory 
of any other Member; 
Page 286 
(d) by a service supplier of one Member, through presence of natural persons of a Member 
in the territory of any other Member. 
3. For the purposes of this Agreement: 
(a) "measures by Members" means measures taken by: 
(i) central, regional or local governments and authorities; and 
(ii) non-governmental bodies in the exercise of powers delegated by central, 
regional or local governments or authorities; 
In fulfilling its obligations and commitments under the Agreement, each Member shall take 
such reasonable measures as may be available to it to ensure their observance by regional and 
local governments and authorities and non-governmental bodies within its territory; 
(b) "services" includes any service in any sector except services supplied in the exercise 
of governmental authority; 
(c) "a service supplied in the exercise of governmental authority" means any service, which 
is supplied neither on a commercial basis, nor in competition with one or more service suppliers. 
PART II 
GENERAL OBLIGATIONS AND DISCIPLINES 
Article II 
Most-Favoured-Nation Treatment 
1. With respect to any measure covered by this Agreement, each Member shall accordimmediately 
and unconditionally to services and service suppliers of any other Member treatment no less favourable 
than that it accords to like services and service suppliers of any other country. 
2. A Member may maintain a measure inconsistent with paragraph 1 provided that such a measure 
is listed in, and meets the conditions of. the Annex on Article II Exemptions. 
3. The provisions of this Agreement shall not be so construed as to prevent any Member from 
conferring or according advantages to adjacent countries in order to facilitate exchanges limited to 
contiguous frontier zones of services that are both locally produced and consumed. 
Article III 
Transparency 
1. Each Member shall publish promptly and, except in emergency situations, at the latest by the 
time of their entry into force, all relevant measures of general application which pertain to or affect 
the operation of this Agreement. International agreements pertaining to or affecting trade in services 
to which a Member is a signatory shall also be published. 
Page 287 
2. Where publication as referred to in paragraph 1 is not practicable, such information shall be 
made otherwise publicly available. 
3. Each Member shall promptly and at least annually inform the Council for Trade in Services 
ofthe introduction of any new, or any changes to existing, laws, regulations or administrative guidelines 
which significantly affect trade in services covered by its specific commitments under this Agreement. 
4. Each Member shall respond promptly to all requests by any other Member for specific 
information on any of its measures of general application or international agreements within the meaning 
of paragraph 1. Each Member shall also establish one or more enquiry points to provide specific 
information to other Members, upon request, on all such matters as well as those subject to the 
notification requirement in paragraph 3. Such enquiry points shall be established within two years 
from the date of entry into force ofthe Agreement Establishing the WTO (referred to in this Agreement 
as the "WTO Agreement"). Appropriate flexibility with respect to the time-limit within which such 
enquiry points are to be established may be agreed upon for individual developing country Members. 
Enquiry points need not be depositories of laws and regulations. 
5. Any Member may notify' to the Council for Trade in Services any measure, taken by any other 
Member, which it considers affects the operation of this Agreement. 
Article III bis 
Disclosure of Confidential Information 
Nothing in this Agreement shall require any Member to provide confidential information, the 
disclosure of which would impede law enforcement, or otherwise be contrary to the public interest, 
or which would prejudice legitimate commercial interests of particular enterprises, public or private. 
Article IV 
Increasing Participation of Developing Countries 
1. The increasing participation of developing country Members in world trade shall be facilitated 
through negotiated specific commitments, by different Members pursuant to Parts III and IV of this 
Agreement, relating to: 
(a) the strengthening of their domestic services capacity and its efficiency and 
competitiveness, inter alia through access to technology on a commercial basis; 
(b) the improvement of their access to distribution channels and information networks; 
and 
(c) the liberalization of market access in sectors and modes of supply of export interest 
to them. 
2. Developed country Members, and to the extent possible other Members, shall establish contact 
points within two years from the date of entry into force ofthe WTO Agreement to facilitate the access 
of developing country Members' service suppliers to information, related to their respective markets, 
concerning: 
(a) commercial and technical aspects of the supply of services; 
Page 288 
(b) registration, recognition and obtaining of professional qualifications; and 
(c) the availability of services technology. 
3. Special priority shall be given to the least-developed country Members in the implementation 
of paragraphs 1 and 2. Particular account shall be taken ofthe serious difficulty ofthe least-developed 
countries in accepting negotiated specific commitments in view of their special economic situation and 
their development, trade and financial needs. 
Article V 
Economic Integration 
1. This Agreement shall not prevent any of its Members from being a party to or entering into 
an agreement liberalizing trade in services between or among the parties to such an agreement, provided 
that such an agreement. 
(a) has substantial sectoral coverage1, and 
(b) provides for the absence or elimination of substantially all discrimination, in the sense 
of Article XVII, between or among the parties, in the sectors covered under subparagraph (a), 
through: 
(i) elimination of existing discriminatory measures, and/or 
(ii) prohibition of new or more discriminatory measures, 
either at the entry into force ofthat agreement or on the basis of a reasonable time-frame, except 
for measures permitted under Articles XI, XII, XIV and XIV bis. 
2. In evaluating whether the conditions under paragraph 1(b) are met, consideration may be given 
to the relationship of the agreement to a wider process of economic integration or trade liberalization 
among the countries concerned. 
3. (a) Where developing countries are parties to an agreement of the type referred to in 
paragraph 1. flexibility shall be provided for regarding the conditions set out in paragraph 1, particularly • 
with reference to subparagraph (b) thereof, in accordance with the level of development ofthe countries 
concerned, both overall and in individual sectors and subsectors. 
(b) Notwithstanding paragraph 6, in the case of an agreement of the type referred to in 
paragraph 1 involving only developing countries, more favourable treatment may be granted to juridical 
persons owned or controlled by natural persons of the parties to such an agreement. 
4. Any agreement referred to in paragraph 1 shall be designed to facilitate trade between the parties 
to the agreement and shall not in respect of any Member outside the agreement raise the overall level 
of barriers to trade in services within the respective sectors or subsectors compared to the level applicable 
prior to such an agreement. 
'This condition is understood in terms of number of sectors, volume of trade affected and modes of supply. In order 
to meet this condition, agreements should not provide for the a priori exclusion of any mode of supply. 
Page 289 
5. If, in the conclusion, enlargement or any significant modification of any* agreement under 
paragraph 1, a Member intends to withdraw or modify a specific commitment inconsistently with the 
terms and conditions set out in its Schedule, it shall provide at least 90 days advance notice of such 
modification or withdrawal and the procedure set forth in paragraphs 2, 3 and 4 of Article XXI shall 
apply. 
6. A service supplier of any other Member that is a juridical person constituted under the laws 
of a party to an agreement referred to in paragraph 1 shall be entitled to treatment granted under such 
agreement, provided that it engages in substantive business operations in the territory of the parties 
to such agreement. • 
7. (a) Members which are parties to any agreement referred to in paragraph 1 shall promptly 
notify any such agreement and any enlargement or any significant modification of that agreement to 
the Council for Trade in Services. They shall also make available to the Council such relevant information 
as may be requested by it. The Council may establish a working party to examine such an agreement 
or enlargement or modification of that agreement and to report to the Council on its consistency with 
this Article. 
(b) Members which are parties to any agreement referred to in paragraph 1 which is 
implemented on the basis of a time-frame shall report periodically to the Council for Trade in Services 
on its implementation. The Council may establish a working party to examine such reports if it deems 
such a working party necessary.. 
(c) Based on the reports of the working parties referred to in subparagraphs (a) and (b). 
the Council may make recommendations to the parties as it deems appropriate. 
8. A Member which is a party to any agreement referrecl to in paragraph 1 may not seek 
compensation for trade benefits that may accrue to any other Member from such agreement. 
Article V bis 
Labour Markets Integration Agreements 
This Agreement shall not prevent any of its Members from being a party to an agreement 
establishing full integration2 ofthe labour markets between or among the parties to such an agreement, 
provided that such an agreement: 
(a) exempts citizens of parties to the agreement from requirements concerning residency 
and work permits; 
(b) is notified to the Council for Trade in Services. 
Article VI 
Domestic Regulation 
1. In sectors where specific commitments are undertaken, each Member shall ensure that all 
measures of general application affecting trade in services are administered in a reasonable, objective 
and impartial manner. 
2Typically, such integration provides citizens ofthe parties concerne J - -: '.t of free entry to the employment markets 
of the parties and includes measures concerning conditions of pay, other conuiuons of employment and social benefits. 
Page 290 
2. (a) " Each Member shall maintain or institute as soon as practicable judicial, arbitral or 
administrative tribunals or procedures which provide, at the request of an affected service supplier, 
for the prompt review of, and where justified, appropriate remedies for, admiiiistrative decisions affecting 
trade in services. Where such procedures are not independent of the agency entrusted with the 
administrative decision concerned, the Member shall ensure that the procedures in fact provide for 
an objective and impartial review. 
(b) The provisions of subparagraph (a) shall not be construed to require a Member to institute 
such tribunals or procedures where this would be inconsistent with its constitutional structure or the 
nature of its legal system. 
3. Where authorization is required for the supply of a service on which a specific commitment 
has been made, the competent authorities of a Member shall, within a reasonable period of time after 
thesubmission of an application considered complete under domestic laws and regulations, inform 
the applicant ofthe decision concerning the application. At the request ofthe applicant, the competent 
authorities of the Member shall provide, without undue delay, information concerning the status of 
the application. 
4. With a view to ensuring that measures relating to qualification requirements and procedures, 
technical standards and licensing requirements do not constitute unnecessary barriers to trade in services, 
the Council for Trade in Services shall, through appropriate bodies it may establish, develop any 
necessary disciplines. Such disciplines, shall aim to ensure that such requirements are, inter alia: 
(a) " based on objective and transparent criteria, such as competence and the ability to supply 
the service; 
(b) not more burdensome than necessary to ensure the quality of the service; 
(c) in the case of licensing procedures, not in themselves a restriction on the supply of 
the service. 
5. (a) In sectors in which a Member has undertaken specific commitments, pending the entry 
into force of disciplines developed in these sectors pursuant to paragraph 4, the Member shall not 
apply licensing and qualification requirements and technical standards that nullify or impair such specific 
commitments in a manner which: 
(i) does not comply with the criteria outlined in subparagraphs 4(a), (b) or (c); 
and 
(ii) could not reasonably have been expected of that Member at the time the 
specific commitments in those sectors were made. 
(b) In determining whether a Member is in conformity with the obligation under 
paragraph 5(a). account shall be taken of international standards of relevant international organizations3 
applied by that Member. 
6. In sectors where specific commitments regarding professional services are undertaken, each 
Member shall provide for adequate procedures to verify the competence of professionals of any other 
Member. 
The term "relevant international organizations" refers to international bodies whose membership is open to the relevant 
bodies of at least all Members of the WTO. 
Page 291 
Article VII 
Recognition 
1. For. the purposes of the fulfilment, in whole or in part, of its standards or criteria for the 
authorization, licensing or certification of services suppliers, and subject to the requirements of 
paragraph 3, a Member may recognize the education or experience obtained, requirements met, or 
licenses or certifications granted in a particular country. Such recognition, which may be achieved 
through harmonization or otherwise, may be based upon an agreement or arrangement with the country 
concemed or may be accorded autonomously. 
2. A Member that is a party to an agreement or arrangement of the type referred to in paragraph 1, 
whether existing or future, shall afford adequate opportunity for other interested Members to negotiate 
their accession to such an agreement or arrangement or to negotiate comparable ones with it. Where 
a Member accords recognition autonomously, it shall afford adequate opportunity for any other Member 
to demonstrate that education, experience, licenses, or certifications obtained or requirements met in 
that other Member's territory should be recognized. 
3. A Member shall not accord recognition in a manner which would constitute a means of 
discrimination between countries in the application of its standards or criteria for the authorization, 
licensing or certification of services suppliers, or a disguised restriction on trade in services. 
4. Each Member shall: 
(a) within 12 months from the date on which the WTO Agreement takes effect for it, inform 
the Council for Trade in Services of its existing recognition measures and state whether 
such measures are based on agreements or arrangements of the type referred to in 
paragraph 1; 
(b) promptly inform the Council for Trade in Services as far in advance as possible of 
the opening of negotiations on an agreement or arrangement of the type referred to 
in paragraph 1 in order to provide adequate opportunity to any other Member to indicate 
their interest in participating in the negotiations before they enter a substantive phase; 
(c) promptly inform the Council for Trade in Services when it adopts new recognition 
measures or significantly modifies existing ones and state whether the measures are 
based on an agreement or arrangement of the type referred to in paragraph 1. 
5. Wherever appropriate, recognition should be based on multilaterally agreed criteria. In 
appropriate cases. Members shall work in cooperation with relevant intergovernmental and non­
governmental organizations towards the establishment and adoption of common international standards 
and criteria for recognition and common international standards for the practice of relevant services 
trades and professions. 
Article VIII 
Monopolies and Exclusive Service Suppliers 
1. Each Member shall ensure that any monopoly supplier of a service in its territory does not, 
in the supply of the monopoly service in the relevant market, act in a manner inconsistent with that 
Member's obligations under Article II and specific commitments. 
2. Where a Member's monopoly supplier competes, either directly or through an affiliated company, 
in the supply of a service outside the scope of its monopoly rights and which is subject to that Member's 
Page 292 
specific commitments, the Member shall ensure that such a supplier does not abuse its monopoly position 
to act in its territory in a manner inconsistent with such commitments. 
3. The Council for Trade in Services may, at the request of a Member which has a reason to 
believe that a monopoly supplier of a service of any other Member is acting in a manner inconsistent 
with paragraph 1 or 2, request the Member establishing, maintaining or authorizing such supplier to 
provide specific information concerning the relevant operations. 
4. If, after the date of entry into force ofthe WTO Agreement, a Member grants monopoly rights 
regarding the supply of a service covered by its specific commitments, that Member shall notify the 
•Council for Trade in Services no later than three months before the intended implementation of the 
grant of monopoly rights and the provisions of paragraphs 2, 3 and 4 of Article XXI shall apply. 
5. The provisions of this Article shall also apply to cases of exclusive service suppliers, where 
a Member, formally or in effect, (a) authorizes or establishes a small number of service suppliers and 
(b) substantially prevents competition among those suppliers in its territory. 
Article IX 
Business Practices 
1. Members recognize that certain business practices of service suppliers, other than those falling 
under Article VIII. may restrain competition and thereby restrict trade in services. 
2. Each Member shall, at the request of any other Member, enter into consultations with a view 
to eliminating practices referred to in paragraph 1. The Member addressed shall accord full and 
sympathetic consideration to such a request and shall cooperate through the supply of publicly available 
non-confidential information of relevance to the matter in question. The Member addressed shall also 
provide other information available to the requesting Member, subject to its domestic law and to the 
conclusion of satisfactory agreement concerning the safeguarding of its confidentiality by the requesting 
Member. 
Article X 
Emergency Safeguard Measures 
1. There shall be multilateral negotiations on the question of emergency safeguard measures based 
on the principle of non-discrimination. The results of such negotiations shall enter into effect on a 
date not later than three years from the date of entry into force of the WTO Agreement. 
2. In the period before the entry into effect of the results of the negotiations referred to in 
paragraph 1, any Member may. notwithstanding the provisions of paragraph 1 of Article XXI, notify 
the Council on Trade in Services of its intention to modify or withdraw a specific commitment after 
a period of one year from the date on which the commitment enters into force; provided that the Member 
shows cause to the Council that the modification or withdrawal cannot await the lapse ofthe three-year 
period provided for in paragraph 1 of Article XXI. 
3. The provisions of paragraph 2 shall cease to apply three years after the date of entry into force 
of the WTO Agreement. 
Page 293 
Article XI 
Payments and Transfers 
1. , Except under the circumstances envisaged in Article XII, a Member shall not apply restrictions 
on international transfers and payments for current transactions relating to its specific commitments. 
2. Nothing in this Agreement shall affect the rights and obligations of the members of the 
International Monetary Fund under the Articles of Agreement ofthe Fund, including the use of exchange 
actions which .are in conformity with the Articles of Agreement, provided that a Member shall not 
impose restrictions on any capital transactions inconsistently with its specific commitments regarding 
such transactions, except under Article XII or at the request of the Fund. 
Article Xll 
Restrictions to Safeguard the Balance of Payments 
1. In the event of serious balance-of-payments and external financial difficulties or threat thereof, 
a Member may adopt or maintain restrictions on trade in services on which it has undertaken specific 
commitments, including on payments or transfers for transactions related to such commitments. It 
is recognized that particular pressures on the balance of payments of a Member in the process of 
economic development or economic transition may necessitate the use of restrictions to ensure, inter 
alia, the maintenance of a level of financial reserves adequate for the implementation of its programme 
of economic development or economic transition.. 
2. The restrictions referred to in paragraph 1: 
(a) shall not discriminate among Members: 
(b) shall be consistent with the Articles of Agreement ofthe International Monetary Fund; 
(c) shall avoid unnecessary damage to the commercial, economic and financial interests 
of any other Member; 
(d) shall not exceed those necessary to deal with the circumstances described in paragraph 1 ; 
(e) shall be temporary and be phased out progressively as the situation specified in 
paragraph 1 improves. 
3. In determining the incidence of such restrictions, Members may give priority to'the supply 
of services which are more essential to their economic or development programmes. However, such 
restrictions shall not be adopted or maintained for the purpose of protecting a particular service sector. 
4. Any restrictions adopted or maintained under paragraph 1, or any changes therein, shall be 
promptly notified to the General Council. 
5. (a) Members applying the provisions of this Article shall consult promptly with the 
Committee on Balance-of-Payments Restrictions on restrictions adopted under this Article. 
Page 294 
(b) The Ministerial Conference shall establish procedures4 for periodic consultations with 
the objective of enabling such recommendations to be made to the Member concerned as it may deem 
appropriate. 
(c) Such consultations shall assess the balance-of-payment situation of the Member concerned 
and the restrictions adopted or maintained under this Article, taking into account, inter alia, such factors 
as: 
(i) the nature and extent of the balance-of-payments and the external financial 
difficulties; 
(ii) the external economic and trading environment of the consulting Member; 
(iii) alternative corrective measures which may be available. 
(d) . The consultations shall address the compliance of any restrictions with paragraph 2, 
in particular the progressive phaseout of restrictions in accordance with paragraph 2(e). 
(e) In such consultations, all findings of statistical and other facts presented by the 
International Monetary Fund relating to foreign exchange, monetary reserves and balance of payments, 
shall be accepted and conclusions shall be based on the assessment by the Fund of the balance-of-
payments and the external financial situation ofthe consulting Member. 
6. If a Member which is not a member of the International Monetary Fund wishes to apply the 
provisions of this Article, the Ministerial Conference shall establish a review procedure and any other 
procedures necessary. 
Article XIII 
Government Procurement 
1. Articles II. XVI and XVII shall not apply to laws, regulations or requirements governing the 
procurement by governmental agencies of services purchased for governmental purposes and not with 
a view to commercial resale or with a view to use in the supply of services for commercial sale. 
2. There shall be multilateral negotiations on government procurement in services under this-
Agreement within two years from the date of entry into force ofthe WTO Agreement. 
Article XIV 
General Exceptions 
Subject to the requirement that such measures are not applied in a manner which would constitute 
a means of arbitrary or unjustifiable discrimination between countries where like conditions prevail, 
or a disguised restriction on trade in services, nothing in this Agreement shall be construed to prevent 
the adoption or enforcement by any Member of measures: 
(a) necessary to protect public morals or to maintain public order;5 
4It is understood that the procedures under paragraph 5 shall be the same as the GATT 1994 procedures. 
The public order exception may be invoked only where a genuine and sufficiently serious threat is posed to one of the 
fundamental interests of society. 
Page 295 
(b) necessary to protect human, animal or plant life or health; 
(c) necessary to secure compliance with laws or regulations which are not inconsistent 
with the provisions of this Agreement including those relating to:. 
(i) the prevention of deceptive and fraudulent practices or to deal with the effects 
of a default on services contracts; 
(ii) the protection of the privacy of individuals in relation to the processing and 
dissemination of personal data and the protection of confidentiality of 
individual records and accounts; 
(iii) safety; 
(d) inconsistent with Article XVII, provided that the difference in treatment is aimed at 
ensuring the equitable or effective6 imposition or collection of direct taxes in respect 
of services or service suppliers of other Members; 
(e) inconsistent with Article II, provided that the difference in treatment is the result of 
an agreement on the avoidance of double taxation or provisions on the avoidance of 
double taxation in any other international agreement or arrangement by which the 
Member is bound. 
'Measures that are aimed at ensuring the equitable or effective imposition or collection of direct taxes include measures 
uken by a Member under iu> taxation system which: 
(n apply <° non-resident service suppliers in recognition of the fact that the tax obligation of non-residents 
is determined with respect to taxable items sourced or located in the Member's territory; or 
ru » apply to non-residents in order to ensure the imposition or collection of taxes in the Member's territory; 
or 
(mi apply to non-residents or residents in order to prevent the avoidance or evasion of taxes, including 
compliance measures; or 
(iv) apply to consumers of services supplied in or from the territory of another Member in order to ensure 
the imposition or collection of taxes on such consumers derived from sources in the Member's territory; 
or 
(v; distinguish service suppliers subject to tax on worldwide taxable items from other service suppliers, in 
recognition of the difference in the nature of the tax base between them; or 
(vi) determine, allocate or apportion income, profit, gain, loss, deduction or credit of resident persons or 
branches, or between related persons or branches ofthe same person, in order to safeguard the Member's 
ux base. 
Tax terms or concepts in paragraph (d) of Article XIV and in this footnote are determined according to ux definitions 
and concepts, or equivalent or similar definitions and concepts, under the domestic law of the Member uking the measure. 
Page 296 
Article XIV bis 
Security Exceptions 
1. Nothing in this Agreement shall be construed: 
(a) to require any Member to furnish any information, the disclosure of which it considers 
contrary to its essential security interests; or 
(b) to prevent any Member from taking any action which it considers necessary for the 
protection of its essential security interests: 
(i) relating to the supply of services as carried out directly or indirectly for the 
purpose of provisioning a military establishment; 
(ii) relating to fissionable and fusionable materials or the materials from which 
they are derived; 
(iii) taken in time of war or other emergency in international relations; or 
(c) to prevent any Member from taking any action in pursuance of its obligations under 
the United Nations Charter for the maintenance of international peace and security. 
2, The Council for Trade in Services shall be informed to the fullest extent possible of measures 
taken under paragraphs 1(b) and (c) and of their termination. 
Article XV 
Subsidies 
1. Members recognize that, in certain circumstances, subsidies may have distortive effects on 
trade in services. Members shall enter into negotiations with a view to developing the necessary 
multilateral disciplines to avoid such trade-distortive effects.7 The negotiations shall also address the 
appropriateness of countervailing procedures. Such negotiations shall recognize the role of subsidies 
in relation to the development programmes of developing countries and take into account the needs 
of Members, particularly developing country Members, for flexibility in this area. For the purpose 
of such negotiations. Members shall exchange information concerning all subsidies related to trade 
in services that they provide to their domestic service suppliers. 
2. Any Member which considers that it is adversely affected by a subsidy of another Member 
may request consultations with that Member on such matters. Such requests shall be accorded 
sympathetic consideration. 
'A future work programme shall determine how. and in what time-frame, negotiations on such multilateral disciplines 
will be conducted. 
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PART III 
SPECIFIC COMMITMENTS 
Article XVI 
Market Access 
1. With respect to market access through the modes of supply identified in Article I, each Member 
shall accord services and service suppliers of any other Member treatment no less favourable than that 
provided for under the terms, limitations and conditions agreed and specified in its Schedule.8 
2. In sectors where market-access commitments are undertaken, the measures which a Member 
shall not maintain or adopt either on the basis of a regional subdivision or on the basis of its entire 
territory, unless otherwise specified in its Schedule, are defined as: 
(a) limitations on the number of service suppliers whether in the form of numerical quotas, 
monopolies, exclusive service suppliers or the requirements of an economic needs test: 
(b) limitations on the total value of service transactions or assets in the form of numerical 
quotas or the requirement of an economic needs test; 
(c) limitations on the total number of service operations or on the total quantity of service 
output expressed in terms of designated numerical units in the form of quotas or the 
requirement of an economic needs test;9 
(d) limitations on the total number of natural persons that may be employed in a particular 
service sector or that a service supplier may employ and who are necessary for, and 
directly related to, the supply of a specific service in the form of numerical quotas 
or the requirement of an economic needs test; 
(e) measures which restrict or require specific types of legal entity or joint venture through 
which a service supplier may supply a service; and 
(0 limitations on the participation of foreign capital in terms of maximum percentage limit 
on foreign shareholding or the total value of individual or aggregate foreign investment. 
•if a Member undertakes a market-access commitment in relation to the supply of a service through the mode of supply 
referred to in subparagraph 2(a) of Article 1 and if the cross-border movement of capital is an essential pan of the service 
itself, that Member is thereby commined to allow such movement of capiul. If a Member undertakes a market-access 
commitment in relation to the supply of a service through the mode of supply referred to in subparagraph 2(c) of Article I, 
it is thereby committed to allow related transfers of capiul into its territory. 
•Subparagraph 2(c) does not cover measures of a Member which limit inputs fer the suppiy of services. 
Page 298 
Article XVII 
National Treatment 
1. In the sectors inscribed in its Schedule, and subject to any conditions and qualifications set 
out therein, each Member shall accord to services and service suppliers of any other Member, in respect 
of all measures affecting the supply of services, treatment no less favourable than that it accords to 
its own like services and service suppliers.10 
2. A Member may meet the requirement of paragraph 1 by according to services and service 
suppliers of any other Member, either formally identical treatment or formally different treatment to 
that it accords to its own like services and service suppliers. 
.3.' Formally identical or formally different treatment shall be considered to be less favourable 
if it modifies the conditions of competition in favour of services or service suppliers of the Member 
compared to like services or service suppliers of any other Member. 
Article XVIII 
Additional Commitments 
Members may negotiate commitments with respect to measures affecting trade in services not 
subject to scheduling under Articles XVI or XVII, including those regarding qualifications, standards 
or licensing matters. Such commitments shall be inscribed in a Member's Schedule. 
PART IV 
PROGRESSIVE LIBERALIZATION 
Article XDC 
Negotiation of Specific Commitments 
1. In pursuance ofthe objectives of this Agreement, Members shall enter into successive rounds 
of negotiations, beginning not later than five years from the date of entry into force of the WTO 
Agreement and periodically thereafter, with a view to achieving a progressively higher level of 
liberalization. Such negotiations shall be directed to the reduction or elimination of the adverse effects 
on trade in services of measures as a means of providing effective market access. This process shall 
take place with a view to promoting the interests of all participants on a mutually advantageous basis 
and to securing an overall balance of rights and obligations. 
2. The process of liberalization shall take place with due respect for national policy objectives 
and the level of development of individual Members, both overall and in individual sectors. There 
shall be appropriate flexibility for individual developing country.Members for opening fewer sectors, 
liberalizing fewer types of transactions, progressively extending market access in line with their 
development situation and, when making access to their markets available to foreign service suppliers, 
attaching to such access conditions aimed at achieving the objectives referred to in Article IV. 
"•Specific commitments assumed under this Article shall not be cony!-— . .«ire any Member to compensate for any 
inherent competitive disadvanuges which result from the foreign character ot uic relevant services or service suppliers. 
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3. For each round, negotiating guidelines and procedures shall be established. For the purposes 
of establishing such guidelines, the Council for Trade in Services shall carry out an assessment of trade 
in services in overall terms and on a sectoral basis with reference to the objectives of this Agreement, 
including those set out in paragraph 1 of Article IV. Negotiating guidelines shall establish modalities 
for the treatment of liberalization undertaken autonomously by Members since previous negotiations, 
as well as for the special treatment for least-developed country Members under the provisions of 
paragraph 3 of Article IV. 
4. The process of progressive liberalization shall be advanced in each such round through bilateral, 
plurilateral or multilateral negotiations directed towards increasing the general level of specific 
commitments undertaken by Members under this Agreement. 
Article XX 
Schedules of Specific Commitments 
1. Each Member shall set out in a schedule the specific commitments it undertakes under Part III 
of this Agreement. With respect to sectors where such commitments are undertaken, each Schedule 
shall specify: 
(a) terms, limitations and conditions on market access; 
(b) conditions and qualifications on national treatment; 
(c) undertakings relating to additional commitments; 
(d) where appropriate the time-frame for implementation of such commitments; and 
(e) the date of entry into force of such commitments. 
2. Measures inconsistent with both Articles XVI and XVII shall be inscribed in the column relating 
to Anicle XVI. In this case the inscription will be considered to provide a condition or qualification 
to Article XVII as well. 
3. Schedules of specific commitments shall be annexed to this Agreement and shall form an integral 
pan thereof. 
Article XXI 
Modification of Schedules 
1. (a) A Member (referred to in this Article as the "modifying Member") may modify or 
withdraw any commitment in its Schedule, at any time after three years have elapsed from the date 
on which that commitment entered into force, in accordance with the provisions of this Article. 
(b) A modifying Member shall notify its intent to modify or withdraw a commitment pursuant 
to this Article to the Council for Trade in Services no later than three months before the intended date 
of implementation of the modification or withdrawal. 
2. (a) At the request of any Member the benefits of which under this Agreement may be afTected 
(referred to in this Article as an "affected Member") by a proposed modification or withdrawal notified 
under subparagraph 1(b), the modifying Member shall enter into negotiations with a view to reaching 
agreement on any necessary compensatory adjustment. In such negotiations and agreement, the Members 
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concerned shall endeavour to maintain a general level of mutually advantageous commitments not less 
favourable to trade than that provided for in Schedules of specific commitments prior to such negotiations. 
(b) Compensatory adjustments shall be made on a most-favoured-nation basis. 
3. (a) If agreement is not reached between the modifying Member and any affected Member 
before the end of the period provided for negotiations, such affected Member may refer the matter 
to arbitration. Any affected Member that wishes to enforce a right that it may have to compensation 
must participate in the arbitration. 
(b) If no affected Member has requested arbitration, the modifying Member shall be free 
to implement the proposed modification or withdrawal. 
4. (a) The modifying Member may not modify or withdraw its commitment until it has made 
compensatory adjustments in conformity with the findings of the arbitration. 
(b) If the modifying Member implements its proposed modification or withdrawal and does 
not comply with the findings ofthe arbitration, any affected Member that participated in the arbitration 
may modify or withdraw substantially equivalent benefits in conformity with those findings.. 
Notwithstanding Article II, such a modification or withdrawal may be implemented solely with respect 
to the modifying Member. 
5. The Council for Trade in Services shall establish procedures for rectification or modification 
of Schedules. Any Member which has modified or withdrawn scheduled commitments under this Article 
shall modify its Schedule according to such procedures. 
PART V 
INSTITUTIONAL PROVISIONS 
Article XXII 
Consultation 
1. Each Member shall accord sympathetic consideration to, and shall afford adequate opportunity 
for. consultation regarding such representations as may be made by any other Member with respect 
to any matter affecting the operation of this Agreement. The Dispute Settlement Understanding (DSU) 
shall apply to such consultations. 
2. The Council for Trade in Services or the Dispute Settlement Body (DSB) may. at the request 
of a Member, consult with any Member or Members in respect of any matter for which it has not been 
possible to find a satisfactory solution through consultation under paragraph 1. 
3. A Member may not invoke Article XVII, either under this Article or Article XXIIl. with respect 
to a measure of another Member that falls within the scope of an international agreement between them 
relating to the avoidance of double taxation. In case of disagreement between Members as to whether 
a measure falls within the scope of such an agreement between them, it shall be open to either Member 
to bring this matter before the Council for Trade in Services." The Council shall refer the matter 
to arbitration. The decision of the arbitrator shall be final and binding on the Members. 
"With respect to agreements on the avoidance of double uxation which exist on the date of entry into force ofthe WTO 
Agreement, such a maner may be brought before the Council for Trade in Services only with the consent of both parties 
to such an agreement. 
Page 301 
Article XXIII 
Dispute Settlement and Enforcement 
1. If any Member should consider that any other Member fails to carry out its obligations or specific 
commitments under this Agreement, it may with a view to reaching a mutually satisfactory resolution 
of the matter have recourse to the DSU. 
2. If the DSB considers that the circumstances are serious enough to justify such action, it may 
authorize a Member or Members to suspend the application to any other Member or Members of 
obligations and specific commitments in accordance with Article 22 of the DSU. 
3. If any Member considers that any benefit it could reasonably have expected to accrue fo it under 
a specific commitment of another Member under Part III of this Agreement is being nullified or impaired 
as a result of the application of any measure which does not conflict with the provisions of this 
Agreement, it may have recourse to the DSU. If the measure is determined by the DSB to have nullified 
or impaired such a benefit, the Member affected shall be entitled to a mutually satisfactory adjustment 
on the basis of paragraph 2 of Article XXI. which may include the modification or withdrawal ofthe 
measure. In the event an agreement cannot be reached between the Members concerned. Article 22 
ofthe DSU shall apply 
Article XXIV 
Council for Trade in Senices 
1. The Council for Trade in Services shall carry out such functions as may be assigned to it to 
facilitate the operation of this Agreement and further its objectives. The Council may establish such 
subsidiary bodies as it considers appropriate for the effective discharge of its functions. 
2. The Council and, unless the Council decides otherwise, its subsidiary bodies shall be open 
to participation by representatives of all Members. 
3. The Chairman of the Council shall be elected bv the Members. 
Article XXV 
Technical Cooperation 
1. Service suppliers of Members which are in need of such assistance shall have access to the 
services of contact points referred to in paragraph 2 of Article IV. 
2. Technical assistance to developing countries shall be provided at the multilateral level by the 
Secretariat and shall be decided upon by the Council for Trade in Services. 
Article XXVI 
Relationship with Other International Organizations 
The General Council shall make appropriate arrangements for consultation and cooperation 
with the United Nations and its specialized agencies as well as with other intergovernmental organizations 
concerned with services. 
Page 302 
PART VI 
FINAL PROVISIONS 
Article XXVII 
Denial of Benefits 
A Member may deny the benefits of this Agreement: 
(a) to the supply of a service, if it establishes that the service is supplied from or in the 
territory of a non-Member or of a Member to which the denying Member does not 
apply the WTO Agreement: 
(b) in the case of the supply of a maritime transport service, if it establishes that the service 
is supplied: 
(i) by a vessel registered under the laws of a non-Member or of a Member to 
which the denying Member does not apply the WTO Agreement, and 
(ii) by a person which operates and/or uses the vessel in whole or in part but 
which is of a non-Member or of a Member to which the denying Member 
does not apply the WTO Agreement; 
(c) to a service supplier that is a juridical person, if it establishes that it is not a service 
supplier of another Member, or that it is a service supplier of a Member to which the 
denying Member does not apply the WTO Agreement. 
Article XXVIIl 
Definitions 
For the purpose of this Agreement: 
(a) "measure" means any measure by a Member, whether in the form of a law, regulation, 
rule, procedure, decision, administrative action, or any other form; 
(b) "supply of a service" includes the production, distribution, marketing, sale and delivery 
of a service: 
(c) "measures by Members affecting trade in services" include measures in respect of 
(i) the purchase, payment or use of a service; 
(ii) the access to and use of. in connection with the supply of a service, services 
which are required by those Members to be offered to the public generally; 
(iii) the presence, including commercial presence, of persons of a Member for 
the supply of a service in the territory of another Member; 
(d) "commercial presence" means any type of business or professional establishment, 
including through 
Page 303 
(i) the constitution, acquisition or maintenance of a juridical person, or 
(ii) the creation or maintenance of a branch or a representative office, 
within the territory of a Member for the purpose of supplying a service; 
(e) "sector" of a service means, 
(i) with reference to a specific commitment, one or more, or all, subsectors of 
that service, as specified in a Member's Schedule, 
(ii) otherwise, the whole of that service sector, including all of its subsectors; 
(0 "service of another Member" means a service which is supplied, 
(i) from or in the territory of that other Member, or in the case of maritime 
transport, by a vessel registered under the laws of that other Member, or 
by a person of that other Member which supplies the service through the 
operation of a vessel and/or its use in whole or in part; or 
( i i ) in the case of the supply of a service through commercial presence or through 
the presence of natural persons, by a service supplier ofthat other Member; 
(g) "service supplier" means any person that supplies a service;12 
(h) "monopoly supplier of a service" means any person, public or private, which in the 
relevant market of the territory of a Member is authorized or established formally or 
in effect by that Member as the sole supplier of that service; 
(i) "service consumer" means any person that receives or uses a service; 
(j) "person" means either a natural person or a juridical person; 
(k) "natural person of another Member" means a natural person who resides in the territory 
of that other Member or any other Member, and who under the law of that other 
Member: 
(i) is a national of that other Member; or 
(ii) has the right of permanent residence in that other Member, in the case of 
a Member which 
1. does not have nationals; or 
2. accords substantially the same treatment to its permanent residents 
as it does to its nationals in respect of measures affecting trade in 
services, as notified in its acceptance of or accession to the WTO 
Agreement, provided that no Member is obligated to accord to such 
permanent residents treatment more favourable than would be 
^Where the service is not supplied directly by a juridical person but through other forms of commercial presence such 
as a branch or a represenutive office, the service supplier (i.e. the juridical person) shall, nonetheless, through such presence 
be accorded the treatment provided for service suppliers under the Agreement. Such treatment shall be extended to the presence 
through which the service is supplied and need not be extended to any other parts ofthe supplier located outside the territory 
where the service is supplied. 
Page 304 
accorded by that other Member to such permanent residents. Such 
notification shall include the assurance to assume, with respect to 
those permanent residents, in accordance with its laws and 
regulations, the same responsibilities that other Member bears with 
respect to its nationals; 
(1) "juridical person" means any legal entity duly constituted or otherwise organized under 
applicable law, whether for profit or otherwise, and whether privately-owned or 
governmentally-owned, including any corporation, trust, partnership, joint venture, 
sole proprietorship or association; 
(m) "juridical person of another Member" means a juridical person which is either:, 
(i) constituted or otherwise organized under the law of that other Member, and 
is engaged in substantive business operations in the territory ofthat Member 
or any other Member; or 
(ii) in the case of the supply of a service through commercial presence, owned 
or controlled by: 
1. natural persons of that Member; or 
2. juridical persons of that other Member identified under 
subparagraph (i); 
(n) a juridical person is 
(i) "owned" by persons of a Member if more than 50 per cent of the equity 
interest in it is beneficially owned by persons of that Member: 
(ii) "controlled" by persons of a Member if such persons have the power to name 
a majority of its directors or otherwise to legally direct its actions: 
(iii) "affiliated" with another person when it controls, or is controlled by. that 
other person; or when it and the other person are both controlled by the same 
person; 
(o) "direct taxes" comprise all taxes on total income, on total capital or on elements of 
income or of capital, including taxes on gains from the alienation of property, taxes 
on estates, inheritances and gifts, and taxes on the total amounts of wages or salaries 
paid by enterprises, as well as taxes on capital appreciation. 
Article XXDC 
Annexes 
The Annexes to this Agreement are an integral part of this Agreement. 
Page 305 
ANNEX ON ARTICLE II EXEMPTIONS 
Scope 
1. This Annex specifies the conditions under which a Member, at the entry into force of this 
Agreement, is exempted from its obligations under paragraph 1 of Article II. 
2. Any new exemptions applied for after the date of entry into force of the WTO Agreement shall 
be dealt with under paragraph 3 of Article IX ofthat Agreement. 
Review 
3. The Council for Trade in Services shall review all exemptions granted for a period of more 
than 5 years. The first such review shall take place no more than 5 years after the entry into force 
of the WTO Agreement. 
4. The Council for Trade in Services in a review shall: 
(a) examine whether the conditions which created the need for the exemption still prevail; 
and • ' 
(b) determine the date of any further review. 
Termination 
5. The exemption of a Member from its obligations under paragraph 1 of Article II ofthe Agreement 
with respect to a particular measure terminates on the date provided for in the exemption. 
6. In principle, such exemptions should not exceed a period of 10 years. In any event, they shall 
be subject to negotiation in subsequent trade liberalizing rounds. 
7. A Member shall notify" the Council for Trade in Services at the termination of the exemption 
period that the inconsistent measure has been brought into conformity with paragraph I of Article II 
of the Agreement. 
Lists of Article II Exemptions 
[The agreed lists of exemptions under paragraph 2 of Article II will be annexed here in the treaty copy 
ofthe WTO Agreement! 
Page 306 
ANNEX ON MOVEMENT OF NATURAL PERSONS 
SUPPLYING SERVICES UNDER THE AGREEMENT 
1. This Annex applies to measures affecting natural persons who are service suppliers of a Member, 
and natural persons of a Member who are employed by a service supplier of a Member, in respect 
of the supply of a service. 
2. The Agreement shall not apply to measures affecting natural persons seeking access to the 
employment market of a Member, nor shall it apply to measures regarding citizenship, residence or 
employment on a permanent basis. 
3. In accordance with Parts III and IV of the Agreement, Members may negotiate specific 
commitments applying to the movement of all categories of natural persons supplying services under 
the Agreement. Natural persons covered by a specific commitment shall be allowed to supply the service 
in accordance with the terms of that commitment. 
4. The Agreement shall not prevent a Member from applying measures to regulate the entry of 
natural persons into, or their temporary stay in, its territory, including those measures necessary to 
protect the integrity of. and to ensure the orderly movement of natural persons across, its borders, 
provided that such measures are not applied in such a manner as to nullify or impair the benefits accruing 
to any Member under the terms of a specific commitment.1 
'The sole fact of requiring a visa for natural persons of certain Members and not for those of others shall not be regarded 
as nullifying or impairing benefits under a specific commitment. 
Page 307-
ANNEX ON AIR TRANSPORT SERVICES 
1. This Annex applies to measures affecting trade in air transport services, whether scheduled 
or non-scheduled, and ancillary services. It is confirmed that any specific commitment or obligation 
assumed under this Agreement shall not reduce or affect a Member's obligations under bilateral or 
multilateral agreements that are in effect on the date of entry into force of the WTO Agreement. . 
2. The Agreement, including its dispute settlement procedures, shall not apply to measures affecting: 
(a) traffic rights, however granted; or 
(b) services directly related to the exercise of traffic rights, 
except as provided in paragraph 3 of this Annex. 
3. The Agreement shall apply to measures affecting: 
(a) aircraft repair and maintenance services; 
(b) the selling and marketing of air transport services; 
to computer reservation system (CRS) services. 
4 The dispute settlement procedures of the Agreement may be invoked only where obligations 
or specific commitments have been assumed by the concerned Members and where dispute settlement 
procedures in bilateral and other multilateral agreements or arrangements have been exhausted. 
5 The Council for Trade in Services shall review periodically, and at least every five years, 
developments in the air transport sector and the operation of this Annex with a view to considering 
the possible further application of the Agreement in this sector. 
6 Definitions 
(a) "Aircraft repair and maintenance services" mean such activities when undertaken on 
an aircraft or a part thereof while it is withdrawn from service and do not include so-called line 
maintenance 
(b) "Selling and marketing of air transport services" mean opportunities for the air carrier 
concerned to sell and market freely its air transport services including all aspects of marketing such 
as market research, advertising and distribution. These activities do not include the pricing of air 
transport services nor the applicable conditions. 
(c) "Computer reservation system (CRS) services" mean services provided by computerised 
systems that contain information about air carriers' schedules, availability, fares and fare rules, through 
which reservations can be made or tickets may be issued. 
(d) "Traffic rights" mean the right for scheduled and non-scheduled services to operate 
and/or to carry passengers, cargo and mail for remuneration or hire from, to, within, or over the territory 
of a Member, including points to be served, routes to be operated, types of traffic to be carried, capacity 
to be provided, tariffs to be charged and their conditions, and criteria for designation of airlines, 
including such criteria as number, ownership, and control. 
Page 308 
ANNEX ON FINANCIAL SERVICES 
1. Scope and Definition 
(a) This Annex applies to measures affecting the supply of financial services. Reference 
to the supply of a financial service in this Annex shall mean the supply of a service as defined in 
paragraph 2 of Article I of the Agreement. 
(b) For the purposes of subparagraph 3(b) of Article I ofthe Agreement, "services supplied 
in the exercise of governmental authority" means the following: 
(i) activities conducted by a central bank or monetary authority or by any other 
public entity in pursuit of monetary or exchange rate policies; 
(ii) activities forming part of a statutory system of social security or public 
retirement plans; and 
(iii) other activities conducted by a public entity for the account or with the 
guarantee or using the financial resources of the Government. 
•(c) For the purposes of subparagraph 3(b) of Article I of the Agreement, if a Member 
allows any ofthe activities referred to in subparagraphs (b)(ii) or (b)(iii) of this paragraph to be conducted 
by its financial service suppliers in competition with a public entity or a financial service supplier, 
"services" shall include such activities. 
(d) Subparagraph 3(c) of Article I of the Agreement shall not apply to services covered 
by this Annex. 
2. Domestic Regulation 
(a) Notwithstanding any other provisions of the Agreement, a Member shall not be prevented 
from taking measures for prudential reasons, including for the protection of investors, depositors, policy 
holders or persons to whom a fiduciary duty is owed by a financial service supplier, or to ensure the 
integrity and stability of the financial system. Where such measures do not conform with the provisions 
of the Agreement, they shall not be used as a means of avoiding the Member's commitments or 
obligations under the Agreement. 
(b) Nothing in the Agreement shall be construed to require a Member to disclose information 
relating to the affairs and accounts of individual customers or any confidential or proprietary information 
in the possession of public entities. 
3. Recognition 
(a) A Member may recognize prudential measures of any other country in determining 
how the Member's measures relating to financial services shall be applied. Such recognition, which 
may be achieved through harmonization or otherwise, may be based upon an agreement or arrangement 
with the country concerned or may be accorded autonomously. 
(b) A Member that is a party to such an agreement or arrangement referred to in 
subparagraph (a), whether future or existing, shall afford adequate opportunity for other interested 
Members to negotiate their accession to such agreements or arrangements, or to negotiate comparable 
ones with it, under circumstances in which there would be equivalent regulation, oversight, 
implementation of such regulation, and. if appropriate, procedures concerning the sharing of information 
between the parties to the agreement or arrangement. Where a Member accords recognition 
Page 309 
autonomously, it shall afford adequate opportunity for any other Member to demonstrate that such 
circumstances exist. 
(c) Where a Member is contemplating according recognition to prudential measures of 
any other country, paragraph 4(b) of Article VII shall not apply. 
4. Dispute Settlement 
Panels for disputes on prudential issues and other financial matters shall have the necessary 
expertise relevant to the specific financial service under dispute. 
5. Definitions 
For the purposes of this Annex: 
(a) . A financial service is any service of a financial nature offered by a financial service 
supplier of a Member. Financial services include all insurance and insurance-related services, and 
all banking and other financial services (excluding insurance). Financial services include the following 
activities: 
Insurance and insurance-related services 
(i) Direct insurance (including co-insurance): 
(A) life 
(B) non-life 
(ii) Reinsurance and retrocession; 
(iii) Insurance intermediation, such as brokerage and agency: 
(iv) Services auxiliary to insurance, such as consultancy, actuarial, risk assessment 
and claim settlement services. 
Banking and other financial services (excluding insurance) 
(v) Acceptance of deposits and other repayable funds from the public; 
(vi) Lending of all types, including consumer credit, mortgage credit, factoring 
and financing of commercial transaction; 
(vii) Financial leasing; 
(viii) All payment and money transmission services, including credit, charge and 
debit cards, travellers cheques and bankers drafts; 
(ix) Guarantees and commitments; 
(x) Trading for own account or for account of customers, whether on an 
exchange, in an over-the-counter market or otherwise, the following: 
(A) money market instruments (including cheques, bilis, certificates of 
deposits); 
(B) foreign exchange; 
(C) derivative products including, but ncihmiteci i;. v.:-. ,.-.••>. Ô; .0 O^MB; 
Page 310 
(D) exchange rate and interest rate instruments, including products such 
as swaps, forward rate agreements; 
(E) transferable securities; 
(F) other negotiable instruments and financial assets, including bullion. 
(xi) Participation in issues of all kinds of securities, including underwriting and 
placement as agent (whether publicly or privately) and provision of services 
related to such issues; 
(xii) Money broking; 
(xiii) Asset management, such as cash or portfolio management, all forms of 
collective investment management, pension fund management, custodial, 
depository and trust services; 
. (xiv) Settlement and clearing services for financial assets, including securities, 
derivative products, and other negotiable instruments; 
(xv) Provision and transfer of financial information, and financial data processing 
and related software by suppliers of other financial services; 
(xvi) Advisory, intermediation and other auxiliary financial services on all the 
activities listed in subparagraphs (v) through (xv), including credit reference 
and analysis, investment and portfolio research and advice, advice on 
acquisitions and on corporate restructuring and strategy. 
(b) A financial service supplier means any natural or juridical person of a Member wishing 
to supply or supplying financial services but the term "financial service supplier" does not include a 
public entity. 
(c) "Public entity" means: 
(i) a government, a central bank or a monetary authority, of a Member, or an 
entity owned or controlled by a Member, that is principally engaged in 
carrying out governmental functions or activities for governmental purposes, 
not including an entity principally engaged in supplying financial services 
on commercial terms; or 
(ii) a private entity, performing functions normally performed by a central bank 
or monetary authority, when exercising those functions. 
Page 311 
SECOND ANNEX ON FINANCIAL SERVICES 
1. Notwithstanding Article IT ofthe Agreerhent and paragraphs 1 and 2 ofthe Annex on Article II 
Exemptions, a Member may, during a period of 60 days beginning four months after the date of entry 
into force of the WTO Agreement, list in that Annex measures relating to financial services which 
are inconsistent with paragraph 1 of Article II of the Agreement. 
2. Notwithstanding Article XXI of the Agreement, a Member may, during a period of 60 days 
beginning four months after the date of entry into force of the WTO Agreement, improve, modify' 
or withdraw all or part of the specific commitments on financial services inscribed in its Schedule. 
3. The Council for Trade in Services shall establish any procedures necessary for the application 
pf paragraphs 1 and 2. 
Page 312 
ANNEX ON NEGOTIATIONS ON MARITIME TRANSPORT SERVICES 
1. Article II and the Annex on Article II Exemptions, including the requirement to list in the Annex 
any measure inconsistent with most-favoured-nation treatment that a Member will maintain, shall enter 
into force for international shipping, auxiliary services and access to and use of port facilities only 
on: 
(a) the implementation date to be determined under paragraph 4 ofthe Ministerial Decision 
on Negotiations on Maritime Transport Services; or, 
' (b) should the negotiations not succeed, the date ofthe final report ofthe Negotiating Group 
on Maritime Transport Services provided for in that Decision. 
2. Paragraph 1 shall not apply to any specific commitment on maritime transport services which 
is inscribed in a Member's Schedule. 
3. From the conclusion of the negotiations referred to in paragraph 1, and before the implementation 
date, a Member may* improve, modify or withdraw all or part of its specific commitments in this sector 
without offering compensation, notwithstanding the provisions of Article XXI. 
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ANNEX ON TELECOMMUNICATIONS 
1. Objectives 
Recognizing the specificities ofthe telecommunications services sector and, in particular, its 
dual role as a distinct sector of economic activity and as the underlying transport means for other 
economic activities, the Members have agreed to the following Annex with the objective of elaborating 
upon the provisions of the Agreement with respect to measures affecting access to and use of public 
telecommunications transport networks and services. Accordingly, this Annex provides notes and 
supplementary provisions to the Agreement. 
2. Scope 
(a) This Annex shall apply to all measures of a Member that affect access to and use of 
public telecommunications transport networks and services.1 
(b) This Annex shall not apply to measures affecting the cable or broadcast distribution 
of radio or television programming. 
(c) Nothing in this Annex shall be construed: 
(i) to require a Member to authorize a service supplier of any other Member 
to establish, construct, acquire, lease, operate, or supply telecommunications 
transport networks or services, other than as provided for in its Schedule; 
or 
(ii) to require a Member (or to require a Member to oblige service suppliers under 
its jurisdiction) to establish, construct, acquire, lease, operate or supply 
telecommunications transport networks or services not offered to the public 
generally. 
3. • Definitions 
For the purposes of this Annex: 
(a) "Telecommunications" means the transmission and reception of signals by any 
electromagnetic means. 
(b) "Public telecommunications transport service" means any telecommunications transport 
service required, explicitly or in effect, by a Member to be offered to the public generally. Such services 
may include, inter alia, telegraph, telephone, telex, and data transmission typically involving the real-time 
transmission of customer-supplied information between two or more points without any end-to-end 
change in the form or content of the customer's information. 
(c) "Public telecommunications transport network" means the public telecommunications 
infrastructure which permits telecommunications between and among defined network termination points. 
(d) "Intra-corporate communications" means telecommunications through which a company 
communicates within the company or with or among its subsidiaries, branches and, subject to a 
Member's domestic laws and regulations, affiliates. For these purposes, "subsidiaries", "branches" 
'This paragraph is understood to mean that each Member shall ensur* <!•• •• ». ^ligations of this Annex are applied with 
respect to suppliers of public telecommunications transport networks anu serwcs by whatever measures are necessary: 
Page 314 
and, where applicable, "affiliates" shall be as defined by each Member. "Intra-corporate 
communications" in this Annex excludes commercial or non-commercial services that are supplied 
to companies that are not related subsidiaries, branches or affiliates, or that are offered to.customers 
or potential customers. 
(e) Any reference to a paragraph or subparagraph of this Annex includes all subdivisions 
thereof. 
4. Transparency 
Ih the application of Article III of the Agreement, each Member shall ensure that relevant 
information on conditions affecting access to and use of public telecommunications transport networks 
. and services is publicly available, including: tariffs and other terms and conditions of service; 
.specifications of technical interfaces with such networks and services; information on bodies responsible 
for the preparation and adoption of standards affecting such access and use; conditions applying to 
attachment of terminal or other equipment; and notifications, registration or licensing requirements, 
if any. 
5. Access to and use of Public Telecommunications Transport Networks and Services 
(a) Each Member shall ensure that any service supplier of any other Member is accorded 
access toand use of public telecommunications transport networks and services on reasonable and non­
discriminatory terms and conditions, for the supply of a service included in its Schedule. This obligation 
shall be applied, inter alia, through paragraphs (b) through (f)-2 
(b) Each Member shall ensure that service suppliers of any other Member have access 
to and use of any public telecommunications transport network or service offered within or across the 
border of that Member, including private leased circuits, and to this end shall ensure, subject to 
paragraphs (e) and (0. that such suppliers are permitted. 
( i ) to purchase or lease and attach terminal or other equipment which interfaces 
with the network and which is necessary to supply a supplier's services; 
(ii) to interconnect private leased or owned circuits with public telecommunications 
transport networks and services or with circuits leased or owned by another 
service supplier; and 
(iii) to use operating protocols of the service supplier's choice in the supply of 
any service, other than as necessary to ensure the availability of 
telecommunications transport networks and services to the public generally. 
(c) Each Member shall ensure that service suppliers of any other Member may use public 
telecommunications transport networks and services for the movement of information within and across 
borders, including for intra-corporate communications of such service suppliers, and for access to 
information contained in data bases or otherwise stored in machine-readable form in the territory of 
any Member. Any new or amended measures of a Member significantly affecting such use shall be 
notified and shall be subject to consultation, in accordance with relevant provisions ofthe Agreement. 
(d) Notwithstanding the preceding paragraph, a Member may take such measures as are 
necessary to ensure the security and confidentiality of messages, subject to the requirement that such 
'The term "non-discriminatory" is understood to refer to most-favoured-nation and national treatment as defined in the 
Agreement, as well as to reflect sector-specific usage of the term to mean "terms and conditions no less favourable than 
those accorded to any other user of like public telecommunications transport networks or services under like circumsunces". 
Page 315 
measures are not applied in a manner which would constimte a means of arbitrary or unjustifiable 
discrimination or a disguised restriction on trade in services. 
(e) Each Member shall ensure that no condition is imposed on access to and use of public 
telecommunications transport networks and services other than as necessary: 
(i) to safeguard the public service responsibilities of suppliers of public 
telecommunications transport networks and services, in particular their ability 
to make their networks or services available to the public generally; 
(ii) to protect the technical integrity of public telecommunications transport 
networks or services; or 
(iii) to ensure that service suppliers of any other Member do not supply services 
unless permitted pursuant to commitments in the Member's Schedule. 
(f) Provided that they satisfy1 the criteria set out in paragraph (e), conditions for access 
to and use of public telecommunications transport networks and services may include: 
(i) restrictions on resale or shared use of such services; 
(ii) a requirement to use specified technical interfaces, including interface 
protocols, for inter-connection with such networks and services; 
(iii) requirements, where necessary, for the inter-operability of such services and 
to encourage the achievement of the goals set out in paragraph 7(a); 
(iv) type approval of terminal or other equipment which interfaces with the 
network and technical requirements relating to the attachment of such 
equipment to such networks; 
( v ) restrictions on inter-connection of private leased or owned circuits with such 
networks or services or with circuits leased or owned by another service 
supplier; or 
(vi) notification, registration and licensing. 
(g ) Notwithstanding the preceding paragraphs of this section, a developing country Member 
may. consistent with its level of development, place reasonable conditions on access to and use of public 
telecommunications transport networks and services necessary to strengthen, its domestic 
telecommunications infrastructure and service capacity and to increase its participation in international 
trade in telecommunications services. Such conditions shall be specified in the Member's Schedule. 
6 Technical Cooperation 
(a) Members recognize that an efficient, advanced telecommunications infrastructure in 
countries, particularly developing countries, is essential to the expansion of their trade in services. 
To this end. Members endorse and encourage the participation, to the fullest extent practicable, of 
developed and developing countries and their suppliers of public telecommunications transport networks 
and services and other entities in the development programmes of international and regional organizations, 
including the International Telecommunication Union, the United Nations Development Programme, 
and the International Bank for Reconstruction and Development. 
(b) Members shall encourage and support telecommunications cooperation among developing 
countries at the international, regional and sub-regional levels. 
Page 316 
(c) In co-operation with relevant international organization/. Members shall make available, 
where practicable, to developing countries information with respect to telecommunications services 
and developments in telecommunications and information technology to assist in strengthening their 
domestic telecommunications services sector. 
(d) Members shall give special consideration to opportunities for the least-developed countries 
to encourage foreign suppliers of telecommunications services to assist in the transfer of technology, 
training and other activities that support the development of their telecommunications infrastructure 
and expansion of their telecommunications services trade. 
7. Relation to International Organizations and Agreements 
(a) Members recognize the importance of international standards for global compatibility 
and inter-operabiliry of telecommunication networks and services and undertake to promote such standards 
through the work of relevant international bodies, including the International Telecommunication Union 
and the International Organization for Standardization. 
(b) Members recognize the role played by intergovernmental and non-governmental 
organizations and agreements in ensuring the efficient operation of. domestic and global 
telecommunications services, in particular the International Telecommunication Union. Members shall 
make appropriate arrangements, where relevant, for consultation with such organizations on matters 
arising from the implementation of this Annex. 
Page 317 
ANNEX ON NEGOTIATIONS ON BASIC TELECOMMUNICATIONS 
1. Article II and the Annex on Article II Exemptions, including the requirement to list in the Annex 
any measure inconsistent with most-favoured-nation treatment that a Member will maintain, shall enter 
into force for basic telecommunications only on: 
(a) the implementation date to be determined under paragraph 5 ofthe Ministerial Decision 
on Negotiations on Basic Telecommunications; or, 
(b) should the negotiations not succeed, the date ofthe final report ofthe Negotiating Group 
on Basic Telecommunications provided for in that Decision. 
2. Paragraph 1 shall not apply to any specific commitment on basic telecommunications which 
is inscribed in a Member's Schedule. 
Page 318 
Page 319 
ANNEX IC 
AGREEMENT ON TRADE-RELATED ASPECTS OF 
INTELLECTUAL PROPERTY RIGHTS 
PART I GENERAL PROVISIONS AND BASIC PRINCIPLES 
PART II STANDARDS CONCERNING THE AVAILABILITY, SCOPE AND USE OF 
INTELLECTUAL PROPERTY RIGHTS 
1. Copyright and Related Rights 
2. Trademarks 
3. Geographical Indications 
4. Industrial Designs 
5. Patents 
6. Layout-Designs (Topographies) of Integrated Circuits 
7. Protection of Undisclosed Information 
8. Control of Anti-Competitive Practices in Contractual Licences * 
PART III ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS 
1. General Obligations 
2. Civil and Administrative Procedures and Remedies 
3. Provisional Measures 
4. Special Requirements Related to Border Measures 
5. Criminal Procedures 
PART IV ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS 
AND RELATED INTER-PARTES PROCEDURES 
PART V DISPUTE PREVENTION AND SETTLEMENT 
PART VI TRANSITIONAL ARRANGEMENTS 
PART VII INSTITUTIONAL ARRANGEMENTS; FINAL PROVISIONS 
Page 320 
AGREEMENT ON TRADE-RELATED ASPECTS OF 
INTELLECTUAL PROPERTY RIGHTS 
Members, 
Desiring to reduce distortions and impediments to international trade, and taking into account 
the need to promote effective and adequate protection of intellectual property rights, and to ensure 
that measures and procedures to enforce intellectual property rights do not themselves become barriers 
to legitimate trade; 
Recognizing, to this end, the need for new rules and disciplines concerning: 
(a) the applicability of the basic principles of GATT 1994 and of relevant international 
intellectual property agreements or conventions; 
(b) the provision of adequate standards and principles concerning the availability, scope 
and use of trade-related intellectual property rights; 
(c) the provision of effective and appropriate means for the enforcement of trade-related 
intellectual property rights, taking into account differences in national legal systems; 
(d) the provision of effective and expeditious procedures for the multilateral prevention 
and settlement of disputes between governments; and 
(e) transitional arrangements aiming at the fullest participation in the results of the 
negotiations; 
Recognizing the need for a multilateral framework of principles, rules and disciplines dealing 
with international trade in counterfeit goods; 
Recognizing that intellectual property rights are private rights; 
Recognizing the underlying public policy objectives of national systems for the protection of 
intellectual property, including developmental and technological objectives; 
Recognizing also the special needs of the least-developed country Members in respect of maximum 
flexibility in the domestic implementation of laws and regulations in order to enable them to create 
a sound and viable technological base; 
Emphasizing the importance of reducing tensions by reaching strengthened commitments to 
resolve disputes on trade-related intellectual property issues through multilateral procedures; 
Desiring to establish a mutually supportive relationship between the WTO and the World 
Intellectual Property Organization (referred to in this Agreement as "WIPO") as well as other relevant 
international organizations; 
Hereby agree as follows: 
Page 321 
PARTI 
GENERAL PROVISIONS AND BASIC PRINCIPLES 
Article 1 
Nature and Scope of Obligations 
1. Members shallgive effect to the provisions of this Agreement. Members may, but shall not 
be obliged to, implement in their law more extensive protection than is required by this Agreement; 
provided that such protection does not contravene the provisions of this Agreement. Members shall 
be free to determine the appropriate method of implementing the provisions of this Agreement within 
their own legal system and practice. 
2. For the purposes of this Agreement, the term "intellectual property" refers to all categories 
of intellectual property that are the subject of Sections 1 through 7 of Part II. 
3. Members shall accord the treatment provided for in this Agreement to the nationals of other 
Members.1 In respect ofthe relevant intellectual property right, the nationals of other Members shall 
be understood as those natural or legal persons that would meet the criteria for eligibility for protection 
provided for in the Pari? Convention (1967), the Berne Convention (1971), the Rome Convention and 
the Treaty on Intellectual Property in Respect of Integrated Circuits, were all Members of the WTO 
members of those conventions.1 Any Member availing itself of the possibilities provided in paragraph 3 
of Article 5 or paragraph 2 of Article 6 of the Rome Convention shall make a notification as foreseen 
in those provisions to the Council for Trade-Related Aspects of Intellectual Property Rights (the "Council 
forTRIPS"). 
Article 2 
Intellectual Property Conventions 
1. In respect of Parts II. Ill and IV of this Agreement, Members shall comply with Articles 1 
through 12, and Article 19. of the Paris Convention (1967). 
2. Nothing in Parts I to IV of this Agreement shall derogate from existing obligations that Members 
may have to each other under the Paris Convention, the Berne Convention, the Rome Convention and 
the Treaty on Intellectual Property in Respect of Integrated Circuits. 
'When "nationals" are referred to in this Agreement, they shall be deemed, in the case of a separate customs territory 
Member of the WTO. to mean persons, natural or legal, who are domiciled or who have a real and effective industrial or 
commercial esublishment in that customs territory. 
'In this Agreement. "Paris Convention" refers to the Paris Convention for the Protection of Industrial Property; "Paris 
Convention (1967)" refers to the Stockholm Act of this Convention of 14 July 1967. "Berne Convention" refers to the Berne 
Convention for the Protection of Literary and Artistic Works: "Berne Convention (1971)" refers to the Paris Act of this 
Convention of 24 July 1971. "Rome Convention" refers to the International Convention for the Protection of Performers. 
Producers of Phonograms and Broadcasting Organizations, adopted at Rome on 26 October 1961. "Treaty on Intellectual 
Property in Respect of Integrated Circuits" (IPIC Treaty) refers to the Treaty on Intellectual Property in Respect of Integrated 
Circuits, adopted at Washington on 26 May 1989. "WTO Agreement" refers to the Agreement Esublishmg the WTO. 
Page 322 
Article 3 
National Treatment 
1. Each Member shall accord to the nationals of other Members treatment no less favourable than 
that it accords to its'own nationals with regard to the protection3 of intellectual property, subject to 
the exceptions already provided in, respectively, the Paris Convention (1967), the Berne 
Convention (1971), the Rome Convention or the Treaty on Intellectual Property in Respect of Integrated 
Circuits. In respect of performers, producers of phonograms and broadcasting organizations, this 
obligation only applies in respect ofthe rights provided under this Agreement. Any Member availing 
itself of the possibilities provided in Article 6 of the Berne Convention (1971) or paragraph 1(b) of 
Article 16 of the Rome Convention shall make a notification as foreseen in those provisions to the 
Council for TRIPS. 
2. Members may avail themselves of the exceptions permitted under paragraph 1 in relation to 
judicial and administrative procedures, including the designation of an address for service or the 
appointment of an agent within the jurisdiction of a Member, only where such exceptions are necessary 
to secure compliance with laws and regulations which are not inconsistent with the provisions of this 
Agreement and where such practices are not applied in a manner which would constitute a disguised 
restriction on trade. 
Article 4 
Most-Favoured-Nation Treatment 
With regard to the protection of intellectual property, any advantage, favour, privilege or 
immunity granted by a Member to the nationals of any other country shall be accorded immediately 
and unconditionally to the nationals of all other Members. Exempted from this obligation are any 
advantage, favour, privilege or immunity accorded by a Member: 
(a) deriving from international agreements on judicial assistance or law enforcement of 
a general nature and not particularly confined to the protection of intellectual property; 
(b) granted in accordance with the provisions ofthe Berne Convention (1971) or the Rome 
Convention authorizing that the treatment accorded be a function not of national 
treatment but of the treatment accorded in another country; 
(c) in respect of the rights of performers, producers of phonograms and broadcasting 
organizations not provided under this Agreement; 
(d ) deriving from international agreements related to the protection of intellectual property 
which entered into force prior to the entry into force ofthe WTO Agreement, provided 
that such agreements are notified to the Council for TRIPS and do not constitute an 
arbitrary or unjustifiable discrimination against nationals of other Members. 
JFor the purposes of Articles 3 and 4. "protection" shall include matters affecting the availability, acquisition, scope, 
maintenance and enforcement of intellectual property rights as well as those maaers affecting the use of intellectual property 
rights specifically addressed in this Agreement. 
Page 323 
Article 5 
Multilateral Agreements on Acquisition or 
Maintenance of Protection 
The obligations under Articles 3 and 4 do not apply to procedures provided in multilateral 
agreements concluded under the auspices of WIPO relating to the acquisition or maintenance of 
intellectual property rights. 
Article 6 
Exhaustion 
For the purposes of dispute settlement under this Agreement, subject to the provisions of 
Articles 3 and 4 nothing in this Agreement shall be used to address the issue of the exhaustion of 
intellectual property rights. 
Article 7 
Objectives 
The protection and enforcement of intellectual property rights should contribute to the promotion 
of technological innovation and to the transfer and dissemination of technology, to the mutual advantage 
of producers and users of technological knowledge and in a manner conducive to social and economic 
welfare, and to a balance of rights and obligations. \ 
Article 8 
Principles 
1. Members may. in formulating or amending their laws and regulations, adopt measures necessary 
to protect public health and nutrition, and to promote the public interest in sectors of vital importance 
to their socio-economic and technological development, provided that such measures are consistent 
with the provisions of this Agreement. 
2. Appropriate measures, provided that they are consistent with the provisions of this Agreement, 
may be needed to prevent the abuse of intellectual property rights by right holders or the resort to 
practices which unreasonably restrain trade or adversely affect the international transfer of technology. 
Page 324 
PART II 
STANDARDS CONCERNING THE AVAILABILITY, SCOPE 
AND USE OF INTELLECTUAL PROPERTY RIGHTS 
SECTION 1: COPYRIGHT AND RELATED RIGHTS 
Article 9 
Relation to the Berne Convention 
1. Members shall comply with Articles 1 through 21 of the Berne Convention (1971) and the 
Appendix thereto. However, Members shall not have rights or obligations under this Agreement in 
respect ofthe rights conferred under Article 6bis ofthat Convention or ofthe rights derived therefrom. 
2. Copyright protection shall extend to expressions and not to ideas, procedures, methods of 
operation or mathematical concepts as such. 
Article 10 
Computer Programs and Compilations of Data 
1. Computer programs, whether in source or object code, shall be protected as literary works 
under the Berne Convention (1971). 
2. Compilations of data or other material, whether in machine readable or other form, which by 
reason ofthe selection or arrangement of their contents constitute intellectual creations shall be protected 
as such. Such protection, which shall not extend to the data or material itself, shall be without prejudice 
to any copyright subsisting in the data or material itself. 
Article 11 
Rental Rights 
In respect of at least computer programs and cinematographic works, a Member shall provide 
authors and their successors in title the right to authorize or to prohibit the commercial rental to the. 
public of originals or copies of their copyright works. A Member shall be excepted from this obligation 
in respect of cinematographic works unless such rental has led to widespread copying of such works 
which is materially impairing the exclusive right of reproduction conferred in that Member on authors 
and their successors in title. In respect of computer programs, this obligation does not apply to rentals 
where the program itself is not the essential object of the rental. 
Article 12 
Term of Protection 
Whenever the term of protection of a work, other than a photographic work or a work of applied 
art, is calculated on a basis other than the life of a natural person, such term shall be no less than 50 
Page 325 
years from the end ofthe calendar year of authorized publication, or, failing such authorized publication 
within 50 years from the making of the work, 50 years from the end of the calendar year of making. 
Article 13 
Limitations and Exceptions 
Members shall confine limitations or exceptions to exclusive rights to certain special cases which 
do not conflict with a normal exploitation ofthe work and do not unreasonably prejudice the legitimate 
interests of the right holder. 
Article 14 
Protection of Performers, Producers of Phonograms 
(Sound Recordings) and Broadcasting Organizations 
1. In respect of a fixation of their performance on a phonogram, performers shall have the 
possibility of preventing the following acts when undertaken without their authorization: the fixation 
of their unfixed performance and the reproduction of such fixation. Performers shall also have the 
possibility of preventing the following acts when undertaken without their authorization: the broadcasting 
by wireless means and the communication to the public of their live performance. 
2. Producers of phonograms shall enjoy the right to authorize or prohibit the direct or indirect 
reproduction of their phonograms. 
3. Broadcasting organizations shall have the right to prohibit the following acts when undertaken 
without their authorization: the fixation, the reproduction of fixations, and the rebroadcasting by wireless 
means of broadcasts, as well as the communication to the public of television broadcasts of the same. 
Where Members do not grant such rights to broadcasting organizations, they shall provide owners 
of copyright in the subject matter of broadcasts with the possibility of preventing the above acts, subject 
to the provisions of the Berne Convention (1971). 
4. The provisions of Article 11 in respect of computer programs shall apply mutatis mutandis 
to producers of phonograms and any other right holders in phonograms as determined in a Member's 
law. If on 15 April 1994 a Member has in force a system of equitable remuneration of right holders 
in respect ofthe rental of phonograms, it may maintain such system provided that the commercial rental 
of phonograms is not giving rise to the material impairment of the exclusive rights of reproduction 
of right holders. 
5. The term of the protection available under this Agreement to performers and producers of 
phonograms shall last at least until the end of a period of 50 years computed from the end ofthe calendar 
year in which the fixation was made or the performance took place. The term of protection granted 
pursuant to paragraph 3 shall last for at least 20 years from the end ofthe calendar year in which the 
broadcast took place. 
6. Any Member may, in relation to the rights conferred under paragraphs 1, 2 and 3, provide 
for conditions, limitations, exceptions and reservations to the extent permitted by the Rome Convention. 
However, the provisions of Anicle 18 ofthe Berne Convention (1971) shall also apply, mutatis mutandis, 
to the rights of performers and producers of phonograms in phonograms. 
Page 326 
SECTION 2: TRADEMARKS 
Article 15 
Protectable Subject Matter 
1. Any sign, or any combination of signs, capable of distinguishing the goods or services of one 
undertaking from those of other undertakings, shall be capable of constituting a trademark. Such signs, 
in particular words including personal names, letters, numerals, figurative elements and combinations 
of colours as well as any combination of such signs, shall be eligible for registration as trademarks. 
Where signs are not inherently capable of distinguishing the relevant goods or services, Members may 
make registrability depend on distinctiveness acquired through use. Members may require, as a condition 
of registration, that signs be visually perceptible. 
2. Paragraph 1 shall not be understood to "prevent a Member from denying registration of a 
trademark on other grounds, provided that they do not derogate from the provisions of the Paris 
Convention (1967). 
3. Members may make registrability depend on use. However, actual use of a trademark shall 
not be a condition for filing an application for registration. An application shall not be refused solely 
on the ground that intended use has not taken place before the expiry of a period of three years from 
the date of application. 
4. The nature of the goods or services to which a trademark is to be applied shall in no case form 
an obstacle to registration of the trademark. 
5. Members shall publish each trademark either before it is registered or promptly after it is 
registered and shall afford a reasonable opportunity for petitions to cancel the registration. In addition. 
Members may afford an opportunity for the registration of a trademark to be opposed. 
Article 16 
Rights Conferred 
1. The owner of a registered trademark shall have the exclusive right to prevent all third parties 
not having the owner's consent from using in the course of trade identical or similar signs for goods 
or services which are identical or similar to those in respect of which the trademark is registered where 
such use would result in a likelihood of confusion. In case of the use of an identical sign for identical 
goods or services, a likelihood of confusion shall be presumed. The rights described above shall not 
prejudice any existing prior rights, nor shall they affect the possibility of Members making rights 
available on the basis of use. 
2. Article 6bis of the Paris Convention (1967) shall apply, mutatis mutandis, to services. In 
determining whether a trademark is well-known. Members shall take account ofthe knowledge ofthe 
trademark in the relevant sector of the public, including knowledge in the Member concerned which 
has been obtained as a result of the promotion of the trademark. 
3. Article 6bis ofthe Paris Convention (1967) shall apply, mutatis mutandis, to goods or services 
which are not similar to those in respect of which a trademark is registered, provided that use of that 
trademark in relation to those goods or services would indicate a connection between those goods or 
Page 327 
services and the owner of the registered trademark and provided that the interests of the owner of the 
registered trademark are likely to be damaged by such use. 
Article 17 
Exceptions 
Members may provide limited exceptions to the rights conferred by a trademark, such as fair 
use of descriptive terms, provided that such exceptions take account ofthe legitimate interests ofthe 
owner of the trademark and of third parties. 
Article 18 
Term of Protection 
Initial registration, and each renewal of registration, of a trademark shall be for a term of no 
less than seven years. The registration of a trademark shall be renewable indefinitely. 
Article 19 
Requirement of Use 
1 If use is required to maintain a registration, the registration may be cancelled only after an 
uninterrupted period of at least three years of non-use, unless valid reasons based on the existence 
of obstacles to such use are shown by the trademark owner. Circumstances arising independently of 
the will of the owner of the trademark which constitute an obstacle to the use of the trademark, such 
as import restrictions on or other government requirements for goods or services protected by the 
trademark, shall be recognized as valid reasons for non-use. 
2. When subject to the control of its owner, use of a trademark by another person shall be 
recognized as use of the trademark for the purpose of maintaining the registration. 
Article 20 
Other Requirements 
The use of a trademark in the course of trade shall not be unjustifiably encumbered by special 
requirements, such as use with another trademark, use in a special form or use in a manner detrimental 
to its capability to distinguish the goods or services of one undertaking from those of other undertakings. 
This will not preclude a requirement prescribing the use ofthe trademark identifying the undertaking 
producing the goods or services along with, but without linking it to, the trademark distinguishing 
the specific goods or services in question of that undertaking. 
Page 328 
Article 21 
Licensing and Assignment 
Members may determine conditions on the licensing and assignment of trademarks, it being 
understood that the compulsory licensing of trademarks shall not be permitted and that the owner of 
a registered trademark shall have the right to assign the trademark with or without the transfer of the 
business to which the trademark belongs. 
SECTION 3: GEOGRAPHICAL INDICATIONS 
Article 22 
Protection of Geographical Indications 
1. Geographical indications are, for the purposes of this Agreement, indications which identify 
a good as originating in the territory of a Member, or a region or locality in that territory, where a. 
given quality, reputation or other characteristic ofthe good is essentially attributable to its geographical 
origin. 
2. In respect of geographical indications. Members shall provide the legal means for interested 
parties to prevent: 
(a) the use of any means in the designation or presentation of a good that indicates or 
suggests that the good in question originates in a geographical area other than the true 
place'of origin in a manner which misleads the public as to the geographical origin 
ofthe good; 
(b) any use which constitutes an act of unfair competition within the meaning of 
Article \0bis ofthe Paris Convention (1967). 
3. A Member shall, er officio if its legislation so permits or at the request of an interested party. 
refuse or invalidate the registration of a trademark which contains or consists of a geographical indication 
with respect to goods not originating in the territory indicated, if use ofthe indication in the trademark 
for such goods in that Member is of such a nature as to mislead the public as to the true place of origin. 
4. The protection under paragraphs 1,2 and 3 shall be applicable against a geographical indication 
which, although literally true as to the territory*, region or locality in which the goods originate, falsely 
represents to the public that the goods originate in another territory. 
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Article 23 
Additional Protection for Geographical Indications 
for Wines and Spirits 
1. Each Member shall provide the legal means for interested parties to prevent use of a geographical 
indication identifying wines for wines not originating in the place indicated by the geographical indication 
in question or identifying spirits for spirits not originating in the place indicated by the geographical 
indication in question, even where the true origin ofthe goods is indicated or the geographical indication 
is used in translation or accompanied by expressions such as "kind", "type", "style", "imitation" or 
the like.4 
2. The registration of a trademark for wines which contains or consists of a geographical indication 
identifying wines or for spirits which contains or consists of a geographical indication identifying spirits 
shall be refused or invalidated, ex officio if a Member's legislation so permits or at the request of an 
interested party, with respect to such wines or spirits not having this origin. 
3. In the case of homonymous geographical indications for wines, protection shall be accorded 
to each indication, subject to the provisions of paragraph 4 of Article 22. Each Member shall determine 
the practical conditions under which the homonymous indications in question will be differentiated 
from each other, taking into account the need to ensure equitable treatment ofthe producers concerned 
and that consumers are not misled. 
4. In order to facilitate the protection of geographical indications for wines, negotiations shall 
be undertaken in the Council for TRIPS concerning the establishment of a multilateral .system of 
notification and registration of geographical indications for wines eligible for protection in those Members 
participating in the system. 
Article 24 
International Negotiations; Exceptions 
1. Members agree to enter into negotiations aimed at increasing the protection of individual 
geographical indications under Article 23. The provisions of paragraphs 4 through 8 below shall not 
be used by a Member to refuse to conduct negotiations or to conclude bilateral or multilateral agreements. 
In the context of such negotiations. Members shall be willing to consider the continued applicability 
of these provisions to individual geographical indications whose use was the subject of such negotiations. 
2. The Council for TRIPS shall keep under review the application ofthe provisions of this Section; 
the first such review shall take place within two years ofthe entry into force of the WTO Agreement. 
Any matter affecting the compliance with the obligations under these provisions may be drawn to the 
attention of the Council, which, at the request of a Member, shall consult with any Member or Members 
in respect of such matter in respect of which it has not been possible to find a satisfactory solution 
through bilateral or plurilateral consultations between the Members concerned. The Council shall take 
such action as may be agreed to facilitate the operation and further the objectives of this Section. 
3. In implementing this Section, a Member shall not diminish the protection of geographical 
indications that existed in that Member immediately prior to the date of entry into force of the WTO 
Agreement. 
'Notwithstanding the first sentence of Article 42. Members may. with respect to these obligations, instead provide for 
enforcement by administrative action. 
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4. Nothing in this Section shall require a Member to prevent continued and similar use of a 
particular geographical indication of another Member identifying wines or spirits in connection with 
goods or services by any of its nationals or domiciliaries who have used that geographical indication 
in a continuous manner with regard to the same or related goods or services in the territory of that 
Member either (a) for at least 10 years preceding 15 April 1994 or (b) in good faith preceding that 
date. 
5. Where a trademark has been applied for or registered in good faith, or where rights to a 
trademark have been acquired through use in good faith either: 
(a) before the date of application of these provisions in that Member as defined in Part VI; 
or 
(b) before the geographical indication is protected in its country of origin; 
measures adopted to implement this Section shalf not prejudice eligibility for or the validity of the 
registration of a trademark, or the right to use a trademark, on the basis that such a trademark is identical 
with, or similar to, a geographical indication. 
6. Nothing in this Section shall require a Member to apply its provisions in respect of a geographical 
indication of any other Member with respect to goods or services for which the relevant indication 
is identical with the term customary in common language as the common name for such goods or services 
in the territory of that Member. Nothing in this Section shall require a Member to apply its provisions 
in respect of a geographical indication of any other Member with respect to products of the vine for 
which the relevant indication is identical with the customary name of a grape variety existing in the 
territory of that Member as of the date of entry into force of the WTO Agreement. 
7. A Member may provide that any request made under this Section in connection with the use 
or registration of a trademark must be presented within five years after the adverse use ofthe protected 
indication has become generally known in that Member or after the date of registration ofthe trademark 
in that Member provided that the trademark has been published by that date, if such date is earlier 
than the date on which the adverse use became generally known in that Member, provided that the 
geographical indication is not used or registered in bad faith. 
8. The provisions of this Section shall in no way prejudice the right of any person to use, in the 
course of trade, that person's name or the name ofthat person's predecessor in business, except where 
such name is used in such a manner as to mislead the public. 
9. There shall be no obligation under this Agreement to protect geographical indications which 
are not or cease to be protected in their country of origin, or which have fallen into disuse in that 
count rv. 
SECTION 4: INDUSTRIAL DESIGNS 
Article 25 
Requirements for Protection 
1. Members shall provide for the protection of independently created industrial designs that are 
new or original. Members may provide that designs are not new or original if they do not significantly 
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differ from known designs or combinations of known design features. Members may provide that 
such protection shall not extend to designs dictated essentially by technical or functional considerations. 
2. Each Member shall ensure that requirements for securing protection for textile designs, in 
particular in regard to any cost, examination or publication, do not unreasonably impair the opportunity 
to seek and obtain such protection. Members shall be free to meet this obligation through industrial 
design law or through copyright law. 
Article 26 
Protection 
1 j The owner of a protected industrial design shall have the right to prevent third parties not having 
the owner's consent from making, selling or importing articles bearing or embodying a design which 
is a copy, or substantially a copy, ofthe protected design, when such acts are undertaken for commercial 
purposes. 
2. Members may provide limited exceptions to the protection of industrial designs, provided that 
such exceptions do not unreasonably conflict with the normal exploitation of protected industrial designs 
and do not unreasonably prejudice the legitimate interests ofthe owner ofthe protected design, taking 
account of .the legitimate interests of third parties. 
3. The duration of protection available shall amount to at least 10 years. 
SECTION 5: PATENTS 
Article 27 
Patentable Subject Matter 
1. Subject to the provisions of paragraphs 2 and 3, patents shall be available for any inventions, 
whether products or processes, in all fields of technology, provided that they are new, involve an 
inventive step and are capable of industrial application.5 Subject to paragraph 4 of Article 65, 
paragraph 8 of Article 70 and paragraph 3 of this Article, patents shall be available and patent rights 
enjoyable without discrimination as to the place of invention, the field of technology and whether products 
are imported or locally produced. 
2 Members may exclude from patentability inventions, the prevention within their territory of 
the commercial exploitation of which is necessary to protect ordre public or morality, including to 
protect human, animal or plant life or health or to avoid serious prejudice to the environment, provided 
that such exclusion is not made merely because the exploitation is prohibited by their law. 
3. Members may also exclude from patentability: 
(a) diagnostic, therapeutic and surgical methods for the treatment of humans or animals; 
5For the purposes of this Article, the terms "inventive step" and "capable of industrial application" may be deemed by 
a Member to be synonymous with the terms "non-obvious" and "useful" respectively. 
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(b) plants and animals other than micro-organisms, and essentially biological processes 
for the production of plants or animals other than non-biological and microbiological 
processes. However, Members shall provide for the protection of plant varieties either 
by patents or by an effective sui generis system or by any combination thereof. The 
provisions of this subparagraph shall be reviewed four years after the date of entry 
into force of the WTO Agreement. 
Article 28 
Rights Conferred 
1. A patent shall confer on its owner the following exclusive rights: 
(a) where the subject matter of a patent is a product, to prevent third parties not having 
the owner's consent from the acts of: making, using, offering for sale, selling, or 
. importing6 for these purposes that product; 
(b) where the subject matter of a patent is a process, to prevent third parties not having 
the owner's consent from the act of using the process, and from the acts of: using, 
offering for sale, selling, or importing for these purposes at least the produci obtained 
directly by that process. 
2. Patent owners shall also have the right to assign, or transfer by succession, the patent and to 
conclude licensing contracts. 
Article 29 
Conditions on Patent Applicants 
1. Members shall require that an applicant for a patent shall disclose the invention in a manner 
sufficiently clear and complete for the invention to be carried out by a person skilled in the art and 
may require the applicant to indicate the best mode for carrying out the invention known to the inventor 
at the filing date or, where priority is claimed, at the priority date of the application. 
2. Members may require an applicant for a patent to provide information concerning the applicant's 
corresponding foreign applications and grants. 
Article 30 
Exceptions to Rights Conferred 
Members may provide limited exceptions to the exclusive rights conferred by a patent, provided 
that such exceptions do not unreasonably conflict with a normal exploitation ofthe patent and do not 
unreasonably prejudice the legitimate interests of the patent owner, taking account of the legitimate 
interests of third parties. 
This right, like all other rights conferred under this Agreement in respect ofthe use, sale, importation or other distribution 
of goods, is subject to the provisions of Article 6. 
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Article 31 
Other Use Without Authorization of the Right Holder 
Where the law of a Member allows for other use7 of the subject matter of a patent without 
the authorization of the right holder, including use by the government or third parties authorized by 
the government, the following provisions shall be respected: 
(a) authorization of such use shall be considered on its individual merits: 
(b) such use may only be permitted if, prior to such use, the proposed user has made efforts 
to obtain authorization from the right holder on reasonable commercial terms and 
conditions and that such efforts have not been successful within a reasonable period 
of time. This requirement may be waived by a Member in the case of a national 
emergency or other circumstances of extreme urgency or in cases of public non­
commercial use. In situations of national emergency or other circumstances of extreme 
urgency, the right holder shall, nevertheless, be notified as soon as reasonably 
practicable. In the case of public non-commercial use, where the government or 
. contractor, without making a patent search, knows or has demonstrable grounds to 
know that a valid patent is or will be used by or for the government, the right holder 
shall be informed promptly; 
(c) the scope and duration of such use shall be limited to the purpose for which it was 
authorized, and in the case of semi-conductor technology shall only be for public non-
. commercial use or to remedy a practice determined after judicial or administrative 
process to be anti-competitive; 
(d) such use shall be non-exclusive; 
(e) such use shall be non-assignable, except with that part of the enterprise or goodwill 
which enjoys such use; 
(f) any such use shall be authorized predominantly for the supply of the domestic market 
of the Member authorizing such use; 
(g) authorization for such use shall be liable, subject to adequate protection ofthe legitimate 
interests ofthe persons so authorized, to be terminated if and when the circumstances 
which led to it cease to exist and are unlikely to recur. The competent authority shall 
have the authority to review, upon motivated request, the continued existence of these 
circumstances; 
(h) the right holder shall be paid adequate remuneration in the circumstances of each case, 
taking into account the economic value of the authorization; 
(i) the legal validity of any decision relating to the authorization of such use shall be subject 
to judicial review or other independent review by a distinct higher authority in that 
Member; 
7"Other use" refers to use other than that allowed under Anicle 30. 
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(j) any decision relating to the remuneration provided in respect of such use shall be subject 
to judicial review or other independent review by a distinct higher authority in that 
Member; 
(k) Members are not obliged to apply the conditions set forth in subparagraphs (b) and (f) 
where such use is permitted to remedy a practice determined after judicial or 
administrative process to be anti-competitive. The need to correct anti-competitive 
practices may be taken into account in determining the amount of remuneration in such 
cases. Competent authorities shall have the authority to refuse termination of 
authorization if and when the conditions which led to such authorization are likely to 
recur; 
(1) where such use is authorized to permit the exploitation of a patent ("the second patent") 
which cannot be exploited without infringing another patent ("the first patent"), the 
following additional conditions shall apply: 
(i) the invention claimed in the second patent shall involve an important technical 
advance of considerable economic significance in relation to the invention 
claimed in the first patent; 
(ii) the owner of the first patent shall be entitled to a cross-licence on reasonable 
terms to use the invention claimed in the second patent; and 
(iii) the use authorized in respect ofthe first patent shall be non-assignable except 
with the assignment of the second patent. 
Article 32 
Revocation/Forfeiture 
An opportunity for judicial review of any decision to revoke or forfeit a patent shall be available. 
Article 33 
Term of Protection 
The term of protection available shall not end before the expiration of a period of twenty years 
counted from the filing date." 
'It is understood that those Members which do not have a system of original grant may provide that the term of protection 
shall be computed from the filing date in the system of original grant. 
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Article 34 
Process Patents: Burden of Proof 
1. For the purposes of civil proceedings in respect of the infringement of the rights of the owner 
referred to in paragraph 1(b) of Article 28,* if the subject matter of a patent is a process for obtaining 
a product, the judicial authorities shall have the authority to order the defendant to prove that the process 
to obtain an identical product is different from the patented process. Therefore, Members shall provide, 
in at least one of the following circumstances, that any identical product when produced without the 
consent of the patent owner shall, in the absence of proof to the contrary, be deemed to have been 
obtained by the patented process: 
(a) if the product obtained by the patented process is new; 
(b) if there is a substantial likelihood that the identical product was made by the process 
and the owner of the patent has been unable through reasonable efforts to determine 
the process actually used. 
2. Any Member shall be free to provide that the burden of proof indicated in paragraph 1 shall 
be on the alleged infringer only if the condition referred to in subparagraph (a) .is fulfilled or only if 
the condition referred to in subparagraph (b) is fulfilled. 
3. In the adduction of proof to the contrary, the legitimate interests of defendants in protecting 
their manufacturing and business secrets shall be taken into account. 
SECTION 6: LAYOUT-DESIGNS (TOPOGRAPHIES) OF INTEGRATED CIRCUITS 
Article 35 
Relation to the IPIC Treaty 
Members agree to provide protection to the layout-designs (topographies) of integrated circuits 
(referred to in this Agreement as "layout-designs") in accordance with Articles 2 through 7 (other than 
paragraph 3of Article 6), Article 12 and paragraph 3of Article 16 of the Treaty on Intellectual Property 
in Respect of Integrated Circuits and, in addition, to comply with the following provisions. 
Article 36 
Scope of the Protection 
Subject to the provisions of paragraph 1 of Article 37, Members shall consider unlawful the 
following acts if performed without the authorization of the right holder:9 importing, selling, or otherwise 
distributing for commercial purposes a protected layout-design, an integrated circuit in which a protected 
layout-design is incorporated, or an article incorporating such an integrated circuit only in so far as 
it continues to contain an unlawfully reproduced layout-design. 
•The term "right holder" in this Section shall be understood as having the same meaning as the term "holder of the right* 
in the IPIC Treaty. 
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Article 37 
Acts Not Requiring the Authorization ofthe Right Holder 
1. Notwithstanding Article 36, no Member shall consider unlawful the performance of any of 
the acts referred to in that Article in respect of ah integrated circuit incorporating an unlawfully 
reproduced layout-design or any article incorporating such an integrated circuit where the person 
performing or ordering such acts did not know and had no reasonable ground to know, when acquiring 
the integrated circuit or article incorporating such an integrated circuit, that it incorporated an unlawfully 
reproduced layout-design. Members shall provide that, after the time that such person has received 
sufficient notice that the layout-design was unlawfully reproduced, that person may perform any of 
the acts with respect to the stock on hand or ordered before such time, but shall be liable to pay to 
the right holder a sum equivalent to a reasonable royalty such as would be payable under a freely 
negotiated licence in respect of such a layout-design. 
2. The conditions set out in subparagraphs (a) through (k) of Article 31 shall apply mutatis mutandis 
in the event of any non-voluntary licensing of a layout-design or of its use by or for the government 
without the authorization of the right holder. 
Article 38 
Term of Protection 
1. In Members requiring registration as a condition of protection, the term of protection of layout-
designs shall not end before the expiration of a period of 10 years counted from the date of filing an 
application for registration or from the first commercial exploitation wherever in the world it occurs. 
2. In Members not requiring registration as a condition for protection, layout-designs shall be 
protected for a term of no less than 10 years from the date ofthe first commercial exploitation wherever 
in the world it occurs. 
3. Notwithstanding paragraphs 1 and 2, a Member may provide that protection shall lapse 15 
years after the creation of the layout-design. 
SECTION 7: PROTECTION OF UNDISCLOSED INFORMATION 
Article 39 
1. In the course of ensuring effective protection against unfair competition as provided in 
Article lObis of the Paris Convention (1967), Members shall protect undisclosed information in 
accordance with paragraph 2 and data submitted to governments or governmental agencies in accordance 
with paragraph 3. 
2. Natural and legal persons shall have the possibility of preventing information lawfully within 
their control from being disclosed to, acquired by, or used by others without their consent in a manner 
contrary to honest commercial practices10 so long as such information: 
,0For the purpose of this provision, "a manner contrary to honest commercial practices" shall mean at least practices 
such as breach of contract, breach of confidence and inducement to breach, and includes the acquisition of undisclosed 
information by third parties who knew, or were grossly negligent in failing to know, that such practices were involved in 
Page 337 " 
(a) is secret in the sense that it is not, as a body or in the precise configuration and assembly 
of its components, generally known among or readily accessible to persons within the 
circles that normally deal with the kind of information in question; 
(b) has commercial value because it is secret; and 
(c) has been subject to reasonable steps under the circumstances, by the person lawfully 
in control of the information, to keep it secret. 
3. Members, when; requiring, as a condition of approving the marketing of pharmaceutical of 
of agricultural chemical products which utilize new chemical entities, the submission of undisclosed 
test or other data, the origination of which involves a considerable effort, shall protect such data against 
unfair commercial use. In addition. Members shall protect such data against disclosure, except where 
necessary to protect the public, or unless steps are taken to ensure that the data are protected against 
unfair commercial use. 
SECTION 8: CONTROL OF ANTI-COMPETITIVE PRACTICES 
IN CONTRACTUAL LICENCES 
Article 40 
1. Members agree that some licensing practices or conditions pertaining to intellectual property 
rights which restrain competition may have adverse effects on trade and may impede the transfer and 
dissemination of technology. 
2. Nothing in this Agreement shall prevent Members from specifying in their legislation licensing 
practices or conditions that may in particular cases constitute an abuse of intellectual property rights 
having an adverse effect on competition in the relevant market. As provided above, a Member may 
adopt, consistently with the other provisions of this Agreement, appropriate measures to prevent or 
control such practices, which may include for example exclusive grantback conditions, conditions 
preventing challenges to validity and coercive package licensing, in the light ofthe relevant laws and 
regulations of that Member. 
3. Each Member shall enter, upon request, into consultations with any other Member which has 
cause to believe that an intellectual property right owner that is a national or domiciliary ofthe Member 
to which the request for consultations has been addressed is undertaking practices in violation of the 
requesting Member's laws and regulations on the subject matter of this Section, and which wishes to 
secure compliance with such legislation, without prejudice to any action under the law and to the full 
freedom of an ultimate decision of either Member. The Member addressed shall accord full and 
sympathetic consideration to. and shall afford adequate opportunity for, consultations with the requesting 
Member, and shall cooperate through supply of publicly available non-confidential information of 
relevance to the matter in question and of other information available to the Member, subject to domestic 
law and to the conclusion of mumally satisfactory agreements concerning the safeguarding of its 
confidentiality by the requesting Member. 
4. A Member whose nationals or domiciliaries are subject to proceedings in another Member 
concerning alleged violation of that other Member's laws and regulations on the subject matter of this 
the acquisition. 
Page 338 
Section shall, upon request, be granted an opportunity for consultations by the other Member under 
the same conditions as those foreseen in paragraph 3. 
PART III 
ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS 
SECTION 1: GENERAL OBLIGATIONS 
Article 41 
1. Members shall ensure that enforcement procedures as specified in this Part are available under 
their law so as to permit effective action against any act of infringement of intellectual property rights 
covered by this Agreement, including expeditious remedies to prevent infringements and remedies which 
constitute a deterrent to further infringements. These procedures shall be applied in such a manner 
as to avoid the creation of barriers to legitimate trade and to provide for safeguards against their abuse. 
2. Procedures concerning the enforcement of intellectual property rights shall be fair and equitable. 
They shall not be unnecessarily complicated or costly, or entail unreasonable time-limits or unwarranted 
delays. 
3. Decisions on the merits of a case shall preferably be in writing and reasoned. They shall be 
made available at least to the parties to the proceeding without undue delay. Decisions on the merits 
of a case shall be based only on evidence in respect of which parties were offered the opportunity to 
be heard. 
4. Parties to a proceeding shall have an opportunity for review by a judicial authority of final 
administrative decisions and, subject to jurisdictional provisions in a Member's law concerning the 
importance of a case, of at least the legal aspects of initial judicial decisions on the merits of a case. 
However, there shall be no obligation to provide an opportunity for review of acquittals in criminal 
cases. 
5. It is understood that this Part does not create any obligation to put in place a judicial system 
for the enforcement of intellectual property rights distinct from that for the enforcement of law in general, 
nor does it affect the capacity of Members to enforce their law in general. Nothing in this Part creates 
any obligation with respect to the distribution of resources as between enforcement of intellectual property 
rights and the enforcement of law in general. 
Page 339 
SECTION 2: CIVIL AND ADMINISTRATIVE PROCEDURES AND REMEDIES 
Article 42 
Fair and.Equitable Procedures 
Members shall make available to right holders" civil judicial procedures concerning the 
enforcement of any intellectual property right covered by this Agreement. Defendants shall have the 
right to written notice which is timely and contains sufficient detail, including the basis of the claims. 
Parties shall be allowed to be represented by independent legal counsel, and procedures shall not impose 
overly burdensome requirements concerning mandatory personal appearances. All parties to such 
procedures shall be duly entitled to substantiate their claims and to present all relevant evidence. The 
procedure shall provide a means to identify and protect confidential information, unless this would 
be contrary to existing constitutional requirements. 
Article 43 
Evidence 
1. The judicial authorities shall have the authority, where a parry has presented reasonably available 
evidence sufficient to support its claims and has specified evidence relevant to substantiation of its claims 
which lies in the control ofthe opposing party, to order that this evidence be produced by the opposing 
party, subject in appropriate cases to conditions which ensure the protection of confidential information. 
2 In cases in which a party to a proceeding voluntarily and-without good reason refuses access 
to. or otherwise does not provide necessary information within a reasonable period, or significantly 
impedes a procedure relating to an enforcement action, a Member may accord judicial authorities the 
authority to make preliminary and final determinations, affirmative or negative, on the basis of the 
information presented to them, including the complaint or the allegation presented by the party adversely-
affected by the denial of access to information, subject to providing the parties an opportunity to be 
heard on the allegations or evidence. 
Article 44 
Injunctions 
1 The judicial authorities shall have the authority to order a party to desist from an infringement, 
inter alia to prevent the entry into the channels of commerce in their jurisdiction of imported goods 
that involve the infringement of an intellectual property right, immediately after customs clearance 
of such goods. Members arc not obliged to accord such authority in respect of protected subject matter 
acquired or ordered by a person prior to knowing or having reasonable grounds to know that dealing 
in such subject matter would entail the infringement of an intellectual property right. 
2. Notwithstanding the other provisions of this Part and provided that the provisions of Part II 
specifically addressing use by governments, or by third parties authorized by a government, without 
the authorization of the right holder are complied with, Members may limit the remedies available 
against such use to payment of remuneration in accordance with subparagraph (h) of Article 31. In 
"For the purpose of this Part, the term "right holder" includes federations and associations having legal standing to assert 
such rights. 
Page 340 
other cases, the remedies under this Part shall apply or, where th'^se remedies are inconsistent with 
a Member's law, declaratory judgments and adequate compensation shall be available. 
Article 45 
Damages 
1. The judicial authorities shall have the authority to order the infringer to pay the right holder 
damages adequate to compensate for the injury the right holder has suffered because of an infringement 
ofthat person's intellectual property right by an infringer who knowingly, or with reasonable grounds 
to know, engaged in infringing activity. 
2. The judicial authorities shall also have the authority to order the infringer to pay the right holder 
expenses, which may include appropriate attorney's fees. In appropriate cases, Members may authorize 
the judicial authorities to order recovery of profits and/or payment of pre-established damages even 
where the infringer did not knowingly, or with reasonable grounds to know, engage in infringing activity. 
Article 46 
Other Remedies 
In order to create an effective deterrent to infringement, the judicial authorities shall have the 
authority to order that goods that they have found to be infringing be, without compensation of any 
sort, disposed of outside the channels of commerce in such a manner as to avoid any harm caused to 
the right holder, or, unless this would be contrary to existing constitutional requirements, destroyed. 
The judicial authorities shall also have the authority to order that materials and implements the 
predominant use of which has been in the creation ofthe infringing goods be, without compensation 
of any sort, disposed of outside the channels of commerce in such a manner as to minimize the risks 
of further infringements. In considering such requests, the need for proportionality between the 
seriousness ofthe infringement and the remedies ordered as well as the interests of third parties shall 
be taken into account. In regard to counterfeit trademark goods, the simple removal ofthe trademark 
unlawfully affixed shall not be sufficient, other than in exceptional cases, to permit release of the goods 
into the channels of commerce. 
Article 47 
Right of Information 
Members may provide that the judicial authorities shall have the authority, unless this would 
be out of proportion to the seriousness ofthe infringement, to order the infringer to inform the right 
holder ofthe identity of third persons involved in the production and distribution ofthe infringing goods 
or services and of their channels of distribution. 
(2; 
Page 341 
Article 48 
Indemnification of the Defendant 
1. The judicial authorities shall have the authority to order a party at whose request measures 
were taken and who has abused enforcement procedures to provide to a party wrongfully enjoined 
or restrained adequate compensation for the injury suffered because of such abuse. The judicial 
authorities shall also have the authority to order the applicant to pay the defendant expenses, which 
may include appropriate attorney's fees. 
2. In respect of the administration of any law pertaining to the protection or enforcement of 
intellectual property rights. Members shall only exempt both public authorities and officials from liability 
to appropriate remedial measures where actions are taken or intended in good faith in the course of 
the administration of that law. 
Article 49 
Administrative Procedures 
To the extent that any civil remedy can be ordered as a result of administrative procedures 
oh the merits of a case, such procedures shall conform to principles equivalent in substance to those 
set forth in this Section. 
SECTION 3: PROVISIONAL MEASURES 
Article 50 
The judicial authorities shall have the authority to order prompt and effective provisional 
measures: 
(a) to prevent an infringement of any intellectual property right from occurring, and in 
particular to prevent the entry into the channels of commerce in their jurisdiction of 
goods, including imported goods immediately after customs clearance; 
(b) to preserve relevant evidence in regard to the alleged infringement. 
2. The judicial authorities shall have the authority to adopt provisional measures inaudita altera 
parte where appropriate, in particular where any delay is likely to cause irreparable harm to the right 
holder, or where there is a demonstrable risk of evidence being destroyed. 
3. The judicial authorities shall have the authority to require the applicant to provide any reasonably 
available evidence in order to satisfy themselves with a sufficient degree of certainty that the applicant 
is the right holder and that the applicant's right is being infringed or that such infringement is imminent, 
and to order the applicant to provide a security or equivalent assurance sufficient to protect the defendant 
and to prevent abuse. 
4. Where provisional measures have been adopted inaudita altera parte, the parties affected shall 
be given notice, without delay after the execution of the measures at the latest. A review, including 
a right to be heard, shall uke place upon request of the defendant with a view to deciding, within a 
Page 342 
reasonable period after the notification of the measures, whether these measures shall be modified, 
revoked or confirmed. 
5. The applicant may be required to supply other information necessary for the identification oif 
the goods concerned by the authority that will execute the provisional measures. 
6. Without préjudice to paragraph 4, provisional measures uken on the basis of paragraphs 1 
and 2 shall, upon request by the defendant, be revoked or otherwise cease to have effect, if proceedings 
leading to a decision on the merits of the case are not initiated within a reasonable period, to be 
determined by the judicial authority ordering the measures where a Member's law so permits or, in 
the absence of such a determination, not to exceed 20 working days or 31 calendar days, whichever 
is the longer. 
7. Where the provisional measures are revoked or where they lapse due to any act or omission 
by the applicant, or where it is subsequently found that there has been no infringement or threat of 
infringement of an intellectual property right, the judicial authorities shall have the authority to order 
the applicant, upon request of the defendant, to provide the defendant appropriate compensation for 
any injury caused by these measures. 
8. To the extent that any provisional measure can be ordered as a result of administrative 
procedures, such procedures shall conform to principles equivalent in substance to those set forth in 
this Section. 
SECTION 4. SPECIAL REQUIREMENTS RELATED TO BORDER MEASURES12 
Article 51 
Suspension of Release by Customs Authorities 
Members shall, in conformity with the provisions set out below, adopt procedures13 to enable 
a rieht holder, who has valid grounds for suspecting that the importation of counterfeit trademark or 
pirated copyright goods'4 may take place, to lodge an application in writing with competent authorities, 
administrative or jud icial. for the suspension by the customs authorities ofthe release into free circulation 
of such goods. Members may enable such an application to be made in respect of goods which involve 
other infringements of intellectual property rights, provided that the requirements of this Section are 
'•'Where a Member has dismantled substantially all controls over movement of goods across its border with another Member 
with which it forms part of a customs union, it shall not be required to apply the provisions of this Section at that border. 
"It i> understood that there shall be no obligation to apply such procedures to imports of goods put on the market in 
another country by or with the consent of the right holder, or to goods in transit. 
"P For the purposes of this Agreement: 
(a) "counterfeit trademark goods" shall mean any goods, including packaging, bearing without authorization 
a trademark which is identical to the trademark validly registered in respect of such goods, or which 
cannot be distinguished in its essential aspects from such a trademark, and which thereby infringes the 
rights of the owner of the trademark in question under the law of the country of imporution; 
(b) "pirated copyright goods" shall mean any goods which are copies made without the consent of the right 
holder or person duly authorized by the right holder in the country of production and which are made 
directly or indirectly from an article where the making ofthat copy would have constituted an infringement 
of a copyright or a related right under the law of the country of importation. 
Page 343 
met. Members may also provide for corresponding procedures concerning the suspension by the customs 
authorities of the release of infringing goods destined for exportation from their territories. 
Article 52 
Application 
Any right holder initiating the procedures under Article 51 shall be required to provide adequate 
evidence to satisfy the competent authorities that, under the laws of the country of importation, there 
is prima facie an infringement ofthe right holder's intellectual property right and to supply a sufficiently 
detailed description of the goods to make them readily recognizable by the customs authorities. The 
competent authorities shall inform the applicant within a reasonable period whether they have accepted 
the application and, where determined by the competent authorities, the period for which the customs 
authorities will take action. 
Article 53 
Security or Equivalent Assurance 
1. The competent authorities shall have the authority to require an applicant to provide a security 
or equivalent assurance sufficient to protect the defendant and the competent authorities and to prevent 
abuse. Such security or equivalent assurance shall not unreasonably deter recourse to these procedures. 
2. Where pursuant to an application under this Section the release of goods involving industrial 
designs, patents, layout-designs or undisclosed information into free circulation has been suspended 
by customs authorities on the basis of a decision other than by a judicial or other independent authority, 
and the period provided for in Article 55 has expired without the granting of provisional relief by the 
duly empowered authority, and provided that all other conditions for importation have been complied 
with, the owner, importer, or consignee of such goods shall be entitled to their release on the posting 
of a security in an amount sufficient to protect the right holder for any infringement. Payment of such 
security shall not prejudice any other remedy available to the right holder, it being understood that 
the security shall be released if the right holder fails to pursue the right of action within a reasonable 
period of time. 
Article 54 
Notice of Suspension 
The importer and the applicant shall be promptly notified of the suspension of the release of 
goods according to Article 51. 
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Article 55 
Duration of Suspension 
If, within a period not exceeding 10 working days after the applicant has been served notice 
ofthe suspension, the customs authorities have not been informed that proceedings leading to a decision 
on the merits of the case have been initiated by a party other than the defendant, or that the duly 
empowered authority has taken provisional measures prolonging the suspension of the release of the 
goods, the goods shall be released, provided that all other conditions for importation or exportation 
have been complied with; in appropriate cases, this time-limit may be extended by another 10 working 
days. If proceedings leading to a decision on the merits of the case have been initiated, a review, 
including a right to be heard, shall take place upon request ofthe defendant with a view to deciding, 
within a reasonable period, whether these measures shall be modified, revoked or confirmed. 
Notwithstanding the above, where the suspension ofthe release of goods is carried out or continued 
in accordance with a provisional judicial measure, the provisions of paragraph 6 of Article 50 shall 
apply. 
Article 56 
Indemnification of the Importer 
and ofthe Owner ofthe Goods 
Relevant authorities shall have the authority to order the applicant to pay the importer, the 
consignee and the owner ofthe goods appropriate compensation for any injury caused to them through 
the wrongful detention of goods or through the detention of goods released pursuant to Article 55. 
Article 57 
Right of Inspection and Information 
Without prejudice to the protection of confidential information. Members shall provide the 
competent authorities the authority to give the right holder sufficient opportunity to have any goods 
detained by the customs authorities inspected in order to substantiate the right holder's claims. The 
competent authorities shall also have authority to give the importer' an equivalent opportunity to have 
any such goods inspected. Where a positive determination has been made on the merits of a case. 
Members may provide the competent authorities the authority to inform the right holder of the names 
and addresses of the consignor, the importer and the consignee and of the quantity of the goods in 
question. 
Article 58 
Ex Officio Action 
Where Members require competent authorities to act upon their own initiative and to suspend 
the release of goods in respect of which they have acquired prima facie evidence that an intellectual 
property right is being infringed: 
(a) the competent authorities may at any time seek from the right holder any information 
that may assist them to exercise these powers; 
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(b) the importer and the right holder shall be promptly notified of the suspension. Where 
the importer has lodged an appeal against the suspension with the competent authorities, 
the suspension shall be subject to the conditions, mutatis mutandis, set out at Anicle 55 ; 
(c) Members shall only exempt both public authorities and officials from liability, to 
appropriate remedial measures where actions are taken or intended in good faith. 
Article 59 
Remedies 
Without prejudice to other rights of action open to the right holder and subject to the right 
ofthe defendant to seek review by a judicial authority, competent authorities shall have the authority 
to order the destruction or disposal of infringing goods in accordance with the principles set out in 
Article 46. In regard to counterfeit trademark goods, the authorities shall not allow the re-exportation 
of the infringing goods in an unaltered state or subject them to a different customs procedure, other 
than in exceptional circumstances. 
Article 60 
De Minimis Imports 
Members may exclude from the application ofthe above provisions small quantities of goods 
of a non-commercial nature contained in travellers' personal luggage or sent in small consignments. 
SECTION 5: CRIMINAL PROCEDURES 
Article 61 
Members shall provide for criminal procedures and penalties to be applied at least in cases 
of wilful trademark counterfeiting or copyright piracy on a commercial scale. Remedies available shall 
include imprisonment and/or monetary fines sufficient to provide a deterrent, consistently with the 
level of penalties applied for crimes of a corresponding gravity. In appropriate cases, remedies available 
shall also include the seizure, forfeiture and destruction of the infringing goods and of any materials 
and implements the predominant use of which has been in the commission of the offence. Members 
may provide for criminal procedures and penalties to be applied in other cases of infringement of 
intellectual property rights, in particular where they are committed wilfully and on a commercial scale. 
Page 346 
PART IV 
ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS AND RELATED INTER-PARTES PROCEDURES 
Article 62 
1. Members may require, as a condition of the acquisition or maintenance of the intellectual property 
rights provided for under Sections 2 through 6 of Part II, compliance with reasonable procedures and 
formalities. Such procedures and formalities shall be consistent with the provisions of this Agreement. 
2. Where the acquisition of an intellectual property right is subject to the right being granted or 
registered, Members shall ensure that the procedures for grant or registration, subject to compliance 
with the substantive conditions for acquisition of the right, permit the granting or registration of the 
right within a reasonable period of time so as'to avoid unwarranted curtailment of the period of 
protection. 
3. Article 4 of the Paris Convention (1967) shall apply mutatis mutandis to service marks. 
4. Procedures concerning the acquisition or maintenance of intellectual property rights and, where 
a Member's law provides for such procedures, administrative revocation and inter partes procedures 
such as opposition, revocation and cancellation, shall be governed by the general principles set out 
in paragraphs 2 and 3 of Article 41. 
5. Final administrative decisions in any of the procedures referred to under paragraph 4 shall 
be subject to review by a judicial or quasi-judicial authority. However, there shall be no obligation 
to provide an opportunity for such review of decisions in cases of unsuccessful opposition or 
administrative revocation, provided that the grounds for such procedures can be the subject of invalidation 
procedures. 
PART V 
DISPUTE PREVENTION AND SETTLEMENT 
Article 63 
Transparency 
1. Laws and regulations, and final judicial decisions and administrative rulings of general 
application, made effective by a Member pertaining to the subject matter of this Agreement (the 
availability, scope, acquisition, enforcement and prevention ofthe abuse of intellectual property rights) 
shall be published, or where such publication is not practicable made publicly available, in a national 
language, in such a manner as to enable governments and right holders to become acquainted with 
them. Agreements concerning the subject matter of this Agreement which are in force between the 
government or a governmental agency of a Member and the government or a governmental agency 
of another Member shall also be published. 
2. Members shall notify the laws and regulations referred to in paragraph 1 to the Council for 
TRIPS in order to assist that Council in its review ofthe operation of this Agreement. The Council 
shall attempt to minimize the burden on Members in carrying out this obligation and may decide to 
waive the obligation to notify such laws and regulations directly to the Council if consultations with 
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WIPO on the esublishment of a common register conuining these laws and regulations are successful. 
The Council shall also consider in this connection any action required regarding notifications pursuant 
to the obligations under this Agreement stemming from the provisions of Article 6ter of the Paris 
Convention (1967). 
3. Each Member shall be prepared to supply, in response to a written request from another Member, 
information of the sort referred to in paragraph 1. A Member, having reason to believe that a specific 
judicial decision or administrative ruling or bilateral agreement in the area of intellectual property rights 
affects its rights under this Agreement, may also request in writing to be given access to or be informed 
in sufficient detail of such specific judicial decisions or administrative rulings or bilateral agreements. 
4. Nothing in paragraphs 1, 2 and 3 shall require Members to disclose confidential information 
which would impede law enforcement or otherwise be contrary to the public interest or would prejudice 
the legitimate commercial interests of particular enterprises, public or private. 
Article 64 
Dispute Settlement 
1. The provisions of Articles XXII and XXIII of GATT 1994 as elaborated and applied by the 
Dispute Settlement Understanding shall apply to consultations and the settlement of disputes under 
this Agreement except as otherwise specifically provided herein. 
2. Subparagraphs 1(b) and 1(c) of Article XXIII of GATT 1994 shall not apply to the settlement 
of disputes under this Agreement for a period of five years from the date of entry into force of the 
WTO Agreement. 
3. During the time period referred to in paragraph 2, the Council for TRIPS shall examine the 
scope and modalities for complaints of the type provided for under subparagraphs 1(b) and 1(c) of 
Anicle XXIII of GATT 1994 made pursuant to this Agreement, and submit its recommendations to 
the Ministerial Conference for approval. Any decision ofthe Ministerial Conference to approve such 
recommendations or to extend the period in paragraph 2 shall be made only by consensus, and approved 
recommendations shall be effective for all Members without further formal acceptance process. 
PART VI 
TRANSITIONAL ARRANGEMENTS 
Article 65 
Transitional Arrangements 
1. Subject to the provisions of paragraphs 2, 3 and 4, no Member shall be obliged to apply the 
provisions of this Agreement before the expiry of a general period of one year following the date of 
entry into force of the WTO Agreement. 
2. A developing country Member is entitled to delay for a further period of four years the date 
of application, as defined in paragraph 1, of the provisions of this Agreement other than Articles 3, 
4 and 5. 
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3. Any other Member which is in the process of transformation from a centrally-planned into 
a market, free-enterprise economy and which is undertaking structural reform of its intellectual property 
system and facing special problems in the preparation and implemenution of intellectual property laws 
and regulations, may also benefit from a period of delay as foreseen in paragraph 2. 
4. To the extent that a developing country Member is obliged by this Agreement to extend product 
patent protection to areas of technology not so protecuble in its territory on the general date of 
application of this Agreement for that Member, as defined in paragraph 2, it may delay the application 
ofthe provisions on product patents of Section 5 of Part II to such areas of technology for an additional 
period of five years. 
5. A Member availing itself of a transitional period under paragraphs 1, 2, 3 or 4 shall ensure 
that any changes in its laws, regulations and practice made during that period do not result in a lesser 
degree of consistency with the provisions of this Agreement. 
Article 66 
Least-Developed Country Members 
1. In view of the special needs and requirements of least-developed country Members, their 
economic, financial and administrative constraints, and their need for flexibility to create a viable 
technological base, such Members shall not be required to apply the provisions of this Agreement, 
other than Articles 3, 4 and 5. for a period öf 10 years from the date of application as defined under 
paragraph 1 of Article 65. The Council for TRIPS shall,, upon duly motivated request by a least-
developed country Member, accord extensions of this period. 
2. Developed country Members shall provide incentives to enterprises and institutions in their 
territories for the purpose of promoting and encouraging technology transfer to least-developed country 
Members in order to enable them to create a sound and viable technological base. 
Article 67 
Technical Cooperation 
In order to facilitate the implementation of this Agreement, developed country Members shall 
provide, on request and on mutually agreed terms and conditions, technical and financial cooperation 
in favour of developing and least-developed country Members. Such cooperation shall include assistance 
in the preparation of laws and regulations on the protection and enforcement of intellectual property 
rights as well as on the prevention of their abuse, and shall include support regarding the establishment 
or reinforcement of domestic offices and agencies relevant to these matters, including the training of 
personnel. 
Page 349 
PART VII 
INSTITUTIONAL ARRANGEMENTS; FINAL PROVISIONS 
Article 68 
Council for Trade-Related Aspects of 
Intellectual Property Rights 
The Council for TRIPS shall monitor the operation of this Agreement and, in particular, 
Members' compliance with-their obligations hereunder, and shall afford Members the opportunity of 
consulting on matters relating to the trade-related aspects of intellectual property rights. It shall carry 
out such other responsibilities as assigned to it by the Members, and it shall, in particular, provide 
any assistance requested by them in the context of dispute settlement procedures. In carrying out its 
functions, the Council for TRIPS may consult with and seek information from any source it deems 
appropriate. In consultation with WIPO, the Council shall seek to establish, within one year of its 
first meeting, appropriate arrangements for cooperation with bodies of that Organization. 
Article 69 
International Cooperation 
Members agree to cooperate with each other with a view to eliminating international trade in 
goods infringing intellectual property rights. For this purpose, they shall establish and notify contact 
points in their administrations and be ready to exchange information on trade in infringing goods. 
They shall, in particular, promote the exchange of information and cooperation between customs 
authorities with regard to trade in counterfeit trademark goods and pirated copyright goods. 
Article 70 
Protection of Existing Subject Matter 
1. This Agreement does not give rise to obligations in respect of acts which occurred before the 
date of application of the Agreement for the Member in question. 
2. Except as otherwise provided for in this Agreement, this Agreement gives rise to obligations 
in respect of all subject matter existing at the date of application of this Agreement for the Member 
in question, and which is protected in that Member on the said date, or which meets or comes 
subsequently to meet the criteria for protection under the terms of this Agreement. In respect of this 
paragraph and paragraphs 3 and 4, copyright obligations with respect to existing works shall be solely 
determined under Article 18 of the Berne Convention (1971), and obligations with respect to the rights 
of producers of phonograms and performers in existing phonograms shall be determined solely under 
Article 18 ofthe Berne Convention (1971) as made applicable under paragraph 6 of Article 14 of this 
Agreement. 
3. There shall be no obligation to restore protection to subject matter which on the date of 
application of this Agreement for the Member in question has fallen into the public domain. 
4. In respect of any acts in respect of specific objects embodying protected subject matter which 
become infringing under the terms of legislation in conformity with this Agreement, and which were 
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commenced, or in respect of which a significant investment was made, before the date of acceptance 
of the WTO Agreement by that Member, any Member may provide for a limiution of the remedies 
available to the right holder as to the continued performance of such acts after the date of application 
of this Agreement for that Member. In such cases the Member shall, however, at least provide for 
the payment of equitable remuneration., 
5. A Member is not obliged to apply the provisions of Article 11 and of paragraph 4 of Article 14 
with respect to originals or copies purchased prior to the date of application of this Agreement for 
that Member. 
6. Members shall not be required to apply Article 31, or the requirement in paragraph 1 of 
Article 27 that patent rights shall be enjoyable without discrimination as to the field of technology, 
to use without the authorization of the right holder where authorization for such use was granted by 
the government before the date this Agreement became known. 
7. In the case of intellectual property rights for which protection is conditional upon registration, 
applications for protection which are pending on the date of application of this Agreement for the Member 
in question shall be permitted to be amended to claim any enhanced protection provided under the 
provisions of this Agreement. Such amendments shall not include new matter. 
8. Where a Member does not make available as of the date of entry'into force of the WTO 
Agreement patent protection for pharmaceutical and agricultural chemical products commensurate with 
its obligations under Article 27, that Member shall: 
(a) notwithstanding the provisions of Part VI, provide as from the date of entry into force 
of the WTO Agreement a means by which applications for patents for such inventions 
can be filed; 
(b) apply to these applications, as of the date of application of this Agreement, the criteria 
for patentability as laid down in this Agreement as if those criteria were being applied 
on the date of filing in that Member or, where priority is available and claimed, the 
priority date of the application; and 
(c) provide patent protection in accordance with this Agreement as from the grant of the 
patent and for the remainder of the patent term, counted from the filing date in 
accordance with Article 33 of this Agreement, for those of these applications that meet 
the criteria for protection referred to in subparagraph (b). 
9. Where a product is the subject of a patent application in a Member in accordance with 
paragraph 8(a). exclusive marketing rights shall be granted, notwithstanding the provisions of Part VI, 
for a period of five years after obtaining marketing approval in that Member or until a product patent 
is granted or rejected in that Member, whichever period is shorter, provided that, subsequent to the 
entry into force of the WTO Agreement, a patent application has been filed and a patent granted for 
that product in another Member and marketing approval obtained in such other Member. 
Article 71 
RevieM' and Amendment 
1 The Council for TRIPS shall review the implementation of this Agreement after the expiration 
of the transitional period referred to in paragraph 2 of Article 65. The Council shall, having regard 
to the experience gained in its implementation, review it two years after that date, and at identical 
Page 351 
intervals thereafter. The Council may also undertake reviews in the light of any relevant new 
developments which might warrant modification or amendment of this Agreement. 
2. Amendments merely serving the purpose of adjusting to higher levels of protection of intellectual 
property rights achieved, and in force, in,other multilateral agreements and accepted under those 
agreements by all Members of the WTO may be referred to the Ministerial Conference for action in 
accordance with paragraph 6 of Article X of the WTO Agreement on the basis of a consensus proposal 
from the Council for TRIPS. 
Article 72 
Reservations 
Reservations may not be entered in respect of any ofthe provisions of this Agreement without 
the consent of the other Members. 
Article 73 
Security Exceptions 
Nothing in this Agreement shall be construed: 
(a) to require a Member to furnish any information the disclosure of which it considers 
contrary to its essential security interests; or 
(b) to prevent a Member from taking any action which it considers necessary for the 
protection of its essential security interests; 
(i ) relating to fissionable materials or the materials from which they are derived; 
( ii ) relating to the traffic in arms, ammunition and implements of war and to such 
traffic in other goods and materials as is carried on directly or indirectly for 
the purpose of supplying a military establishment; 
(iii) taken in time of war or other emergency in international relations; or 
(c) to prevent a Member from taking any action in pursuance of its obligations under the 
United Nations Charter for the maintenance of international peace and security. 
Page 352 
Page 353 
ANNEX 2 
UNDERSTANDING ON RULES AND PROCEDURES 
GOVERNING THE SETTLEMENT OF DISPUTES 
Members hereby agree as follows: 
• • Article 1 
Coverage and Application 
1. The rules and procedures of this Understanding shall apply to disputes brought pursuant to 
the consultation and dispute settlement provisions of the agreements listed in Appendix 1 to this 
Understanding (referred to in this Understanding as die "covered agreements"). The rules and procedures 
of this Understanding shall also apply to consultations and the settlement of disputes between Members 
concerning their rights and obligations under the provisions of the Agreement Establishing the World 
Trade Organization (referred to in this Understanding as the "WTO Agreement") and of this 
Understanding taken-in isolation or in combination with any other covered agreement. 
2. The rules and procedures of this Understanding shall apply subject to such special or additional 
rules and procedures on dispute settlement contained in the covered agreements as are.identified in 
Appendix 2 to this Understanding. To the extent that there is a difference between the rules and 
procedures of this Understanding and the special or additional rules and procedures set forth in 
Appendix 2, the special or additional rules and procedures in Appendix 2 shall prevail. In disputes 
involving rules and procedures under more than one covered agreement, if there is a conflict between 
special or additional rules and procedures of such agreements under review, and where the parties to 
the dispute cannot agree on rules and procedures within 20 days ofthe establishment of the panel, the 
Chairman ofthe Dispute Settlement Body provided for in paragraph 1 of Article 2 (referred to in this 
Understanding as the "DSB"), in consultation with the parties to the dispute, shall determine the rules 
and procedures to be followed within 10 days after a request by either Member. The Chairman shall 
be guided by the principle that special or additional rules and procedures should be used where possible, 
and the rules and procedures set out in this Understanding should be used to the extent necessary to 
avoid conflict. 
Article 2 
Administration 
1. The Dispute Settlement Body is hereby established to administer these rules and procedures 
and, except as otherwise provided in a covered agreement, the consultation and dispute settlement 
provisions ofthe covered agreements. Accordingly, the DSB shall have the authority to establish panels, 
adopt panel and Appellate Body reports, maintain surveillance of implementation of rulings and 
recommendations, and authorize suspension of concessions and other obligations under the covered 
agreements. With respect to disputes arising under a covered agreement which is a Plurilateral Trade 
Agreement, the te'rm "Member" as used herein shall refer only to those Members that are parties to 
the relevant Plurilateral Trade Agreement. Where the DSB administers the dispute settlement provisions 
of a Plurilateral Trade Agreement, only those Members that are parties to that Agreement may participate 
in decisions or actions taken by the DSB with respect to that dispute. 
Page 354 
2. The DSB shall inform the relevant WTO Councils and Committees of any developments in 
disputes related to provisions of the respective covered agreements. 
3. The DSB shall meet as often as necessary to carry out its functions within the time-frames 
provided in this Understanding. 
4. Where the rules and procedures of this Understanding provide for the DSB to take a decision, 
it shall do so by consensus.' 
Article 3 
General Provisions 
1. Members affirm their adherence to the principles for the management of disputes heretofore 
applied under Articles XXII and XXIII of GATT 1947, and .the rules and procedures as further elaborated 
and modified herein. 
2. The dispute settlement system of the WTO is a central element in providing security and 
predictability to the multilateral trading system. The Members recognize that it serves to preserve 
the rights and obligations of Members under the covered agreements, and to clarify the existing provisions 
of those agreements in accordance with customary rules of interpretation of public international law. 
Recommendations and rulings ofthe DSB cannot add to or diminish the rights and obligations provided 
in the covered agreements. 
3. The prompt settlement of situations in which a Member considers that any benefits accruing 
to it directly or indirectly under the covered agreements are being impaired by measures taken by another 
Member is essential to the effective functioning of the WTO and the maintenance of a proper balance 
between the rights and obligations of Members. 
4. Recommendations or rulings made by the DSB shall be aimed at achieving a satisfactory 
settlement of the matter in accordance with the rights and obligations under this Understanding and 
under the covered agreements. 
5 All solutions to matters formally raised under the consultation and dispute settlement provisions 
of the covered agreements, including arbitration awards, shall be consistent with those agreements 
and shall not nullify or impair benefits accruing to any Member under those agreements, nor impede 
the attainment of any objective of those agreements. 
6 Mutually agreed solutions to matters formally raised under the consulution and dispute settlement 
provisions of the covered agreements shall be notified to the DSB and the relevant Councils and 
Committees, where any Member may raise any point relating thereto. 
7. Before bringing a case, a Member shall exercise its judgement as to whether action under these 
procedures would be fruitful. The aim ofthe dispute settlement mechanism is to secure a positive 
solution to a dispute. A solution mutually acceptable to the parties to a dispute and consistent with 
the covered agreements is clearly to be preferred. In the absence of a mutually agreed solution, the 
first objective ofthe dispute settlement mechanism is usually to secure the withdrawal ofthe measures 
concerned if these are found to be inconsistent with the provisions of any of the covered agreements. 
The provision of compensation should be resorted to only if the immediate withdrawal ofthe measure 
'The DSB shall be deemed to have decided by consensus on a matter submitted for its consideration, if no Member, 
present at the meeting of the DSB when the decision is taken, formally objects to the proposed decision. 
Page 355 
is impracticable and as a temporary measure pending the withdrawal of the measure which is inconsistent 
with a covered agreement. The last resort which this Undersunding provides to the Member invoking 
the dispute settlement procedures is the possibility of suspending the application of concessions or other 
obligations under the covered agreements on a discriminatory basis vis-à-vis the other Member, subject 
to authorization by the DSB of such measures. 
8. In cases where there is an infringement ofthe obligations assumed under a covered agreement, 
the action is considered prima facie to constitute a case of nullification or impairment. This means 
that there is normally a presumption that a breach ofthe rules has an adverse impact on other Members 
parties to that covered agreement, and in such cases, it shall be up to the Member against whom the 
complaint has been brought to rebut the charge. 
9. The provisions of this Understanding are without prejudice to the rights of Members to seek 
.authoritative interpretation of provisions of a covered agreement through decision-making under the 
WTO Agreement or a covered agreement which is a Plurilateral Trade Agreement. 
10. It is understood that requests for conciliation and the use of the dispute settlement procedures 
should not be intended or considered as contentious acts and that, if a dispute arises, all Members will 
engage in these procedures in good faith in an effort to resolve the dispute. It is also understood that 
complaints and counter-complaints in regard to distinct matters should not be linked. 
11. This Understanding shall be applied only with respect to new requests for consultations under 
the consultation provisions of the covered agreements made on or after the date of entry into force 
of the WTO Agreement. With respect to disputes for which the request for consultations was made 
under GATT 1947 or under any other predecessor agreement to the covered agreements before the 
date of entry into force of the WTO Agreement, the relevant dispute settlement rules and procedures 
in effect immediately prior to the date of entry into force of the "WTO Agreement shall continue to 
apply.: 
12. Notwithstanding paragraph 11. if a complaint based on any ofthe covered agreements is brought 
by a developing country Member against a developed country Member, the complaining party shall 
have the right to invoke, as an alternative to the provisions contained in Articles 4, 5, 6 and 12 of 
this Understanding, the corresponding provisions ofthe Decision of 5 April 1966 (BISD 14S/18), except 
that where the Panel considers that the time-frame provided for in paragraph 7 of that Decision is 
insufficient to provide its report and with the agreement ofthe complaining party, that time-frame may 
be extended. To the extent that there is a difference between the rules and procedures of Articles 4, 
5. 6 and 12 and the corresponding rules and procedures ofthe Decision, the latter shall prevail. 
Article 4 
Consultations 
1. Members affirm their resolve to strengthen and improve the effectiveness of the consultation 
procedures employed by Members. 
This paragraph shall also be applied to disputes on which panel reports have not been adopted or fully implemented. 
Page 356 
2. Each Member undertakes to accord sympathetic consideration to and afford adequate opportunity 
for consulution regarding any representations made by another Member concerning measures affecting 
the operation of any covered agreement uken within the territory of the former.3 
3. If a request for consultations is made pursuant to a covered agreement, the Member to which 
the request is made shall, unless otherwise .mutually agreed, reply to the request within 10 days after 
the date of its receipt and shall enter into consulutions in good faith within a period of no more than 
30 days after the date of receipt of the request, with a view to reaching a mutually satisfactory solution. 
If the Member does not respond within 10 days after the date of receipt of the request, or does not 
enter into consultations within a period of no more than 30 days, or a period otherwise mutually agreed, 
after the date of receipt of the request, then the Member that requested the holding of consultations 
may proceed directly to request the establishment of a panel. 
4. All such requests for consulutions shall be notified to the DSB and the relevant Councils and 
Committees by the Member which requests consulutions. Any request for consultations shall be 
submitted in writing and shall give the reasons for the request, including identification ofthe measures 
at issue and an indication of the legal basis for the complaint. 
5. In the course of consultations in accordance with the provisions of a covered agreement, before 
resorting to further action under this Understanding, Members should attempt to obtain satisfactory 
adjustment of the matter. 
6. Consultations shall be confidential, and without prejudice to the rights of any Member in any 
further proceedings. 
7. If the consultations fail to settle a dispute within 60 days after the date of receipt of the request 
for consultations, the complaining party may request the establishment of a panel. The complaining 
party may request a panel during the 60-day period if the consulting parties jointly consider that 
consultations have failed to settle the dispute. 
8. In cases of urgency, including those which concern perishable goods. Members shall enter 
into consultations within a period of no more than 10 days after the date of receipt of the request. 
If the consultations have failed to settle the dispute within a period of 20 days after the date of receipt 
ofthe request, the complaining party may request the establishment of a panel. 
9. In cases of urgency, including those which concern perishable goods, the parties to the dispute, 
panels and the Appellate Body shall make every effort to accelerate the proceedings to the greatest 
extent possible. 
10. During consultations Members should give special attention to the particular problems and 
interests of developing country Members. 
11. Whenever a Member other than the consulting Members considers that it has a substantial trade 
interest in consultations being held pursuant to paragraph 1 of Article XXII of GATT 1994, paragraph 1 
of Article XXII of GATS, or the corresponding provisions in other covered agreements4, such Member 
JWhere the provisions of any other covered agreement concerning measures taken by regional or local governments or 
authorities within the territory of a Member contain provisions different from the provisions of this paragraph, the provisions 
of such other covered agreement shall prevail. 
*The corresponding consulution provisions in the covered agreements are listed hereunder: Agreement on Agriculture. 
Article 19. Agreement on the Application of Saniury and Phytosaniury Measures, paragraph 1 of Article 11: Agreement 
on Textiles and Clothing, paragraph 4 of Article 8: Agreement on Technical Barriers to Trade, paragraph 1 of Anicle 14: 
Page 357 
may notify the consulting Members and the DSB, within 10 days after the date of the circulation ot 
the request for consulutions under said Article, of its desire to be joined in the consultations. Such 
Member shall be joined in the consultations, provided that the Member to which the request for 
consulutions was addressed agrees that the claim of substantial interest is well-founded. In that event 
they shall so inform the DSB. If the request to be joined in the consultations is not accepted, the 
applicant Member shall be free to request consulutions under paragraph 1 of Article XXII or paragraph 1 
of Article XXIII of GATT 1994, paragraph 1 of Article XXII or paragraph 1 of Article XXIII of GATS, 
or the corresponding provisions in other covered agreements. 
Article 5 
Good Offices, Conciliation and Mediation 
1. Good offices, conciliation and mediation are procedures that are undertaken voluntarily if the 
parties to the dispute so agree. 
2. Proceedings involving good offices, conciliation and mediation, and in particular positions taken 
by the parties to the dispute during these proceedings, shall be confidential, and without prejudice to 
the rights of either party in any further proceedings under these procedures. 
3. Good offices, conciliation or mediation may be requested at any time by any party to a dispute. 
They may begin at any time and be terminated at any time. Once procedures for good offices, 
conciliation or mediation are terminated, a complaining party may then proceed with a request for 
the establishment of a panel. 
4. When good offices, conciliation or mediation are entered into within 60 days after the date 
of receipt of a request for consultations, the complaining party must allow a period of 60 days after 
the date of receipt of the request for consultations before requesting the establishment of a panel. The 
complaining party may request the establishment of a panel during the 60-day period if the parties to 
the dispute jointly consider that the good offices, conciliation or mediation process has failed to settle 
the dispute. 
5. If the parties to a dispute agree, procedures for good offices, conciliation or mediation may-
continue while the panel process proceeds. 
6. The Director-General may. acting in an ex officio capacity, offer good offices, conciliation 
or mediation with the view to assisting Members to settle a dispute. 
Agreement on Trade-Related Investment Measures. Article 8; Agreement on Implemenution of Article VI of GATT 1994, 
paragraph 2 of Article 17; Agreement on Implemenution of Article VII of G ATT 1994, paragraph 2 of Anicle 19; Agreement 
on Preshipment Inspection. Anicle 7; Agreement on Rules of Origin, Article 7; Agreement on Impon Licensing Procedures, 
Anicle 6; Agreement on Subsidies and Countervailing Measures, Anicle 30; Agreement on Safeguards, Article 14; Agreement 
on Trade-Related Aspects of Intellectual Property Rights. Article 64.1; and any corresponding consulution provisions in 
Plurilateral Trade Agreements as determined by the competent bodies of each Agreement and as notified to the DSB. 
Page 358 
Article 6 
Establishment of Panels 
1. If the complaining party so requests, a panel shall be esublished at the latest at the DSB meeting 
following that at which the request first appears as an item on the DSB's agenda, unless at that meeting 
the DSB decides by consensus not to esublish a panel.5 
2. The request for the establishment of a panel shall be made in writing. It shall indicate whether 
consultations were held, identify the specific measures at issue and provide a brief summary of the 
legal basis of the complaint sufficient to present the problem clearly. In case the applicant requests 
the establishment of a panel with other than standard terms of reference, the written request shall include 
the proposed text of special terms of reference. 
Article 7 
Terms of Reference of Panels 
1. Panels shall have the following terms of reference unless the parties to the dispute agree otherwise 
within 20 days from the establishment of the panel: 
. "To examine, in the light ofthe relevant provisions in (name ofthe covered agreement(s) 
cited by the parties to the dispute), the matter referred to the DSB by (name of party) in 
document... and to make such findings as will assist the DSB in making the recommendations 
or in giving the rulings provided for in that/those agreement(s)." 
2. Panels shall address the relevant provisions in any covered agreement or agreements cited by 
the parties to the dispute. 
3. In establishing a panel, the DSB may authorize its Chairman to draw up the terms of reference 
ofthe panel in consultation with the parties to the dispute, subject to the provisions of paragraph 1. 
The terms of reference thus drawn up shall be circulated to all Members. If other than standard terms 
of reference are agreed upon, any Member may raise any point relating thereto in the DSB. 
Article 8 
Composition of Panels 
1. Panels shall be composed of well-qualified governmental and/or non-governmental individuals, 
including persons who have served on or presented a case to a panel, served as a representative of 
a Member or of a contracting party to GATT 1947 or as a representative to the Council or Committee 
of any covered agreement or its predecessor agreement, or in the Secretariat, taught or published on 
international trade law or policy, or served as a senior trade policy official of a Member. 
2. Panel members should be selected with a view to ensuring the independence of the members, 
a sufficiently diverse background and a wide spectrum of experience. 
*If the complaining party so requests, a meeting of the DSB shall be convened for this purpose within IS days of the 
request, provided that at least 10 days' advance notice of the meeting is given. 
Page 359 
3. Citizens of Members whose governments6 are parties to the dispute or third parties as defined 
in paragraph 2 of Article 10 shall not serve on a panel concerned with that dispute, unless the parties 
to the dispute agree otherwise. 
4. To assist in the selection of panelists, the Secreuriat shall maintain an indicative list of 
governmental and non-governmenul individuals possessing the qualifications outlined in paragraph 
1, from which panelists may be drawn as appropriate. That list shall include the roster of non­
governmental panelists established on 30 November 1984 (BISD 31S/9), and other rosters and indicative 
lists esublished under any ofthe covered agreements, and shall retain the names of persons on those 
rosters and indicative lists at the time of entry into force of the WTO Agreement. Members may 
periodically suggest names of governmental and non-governmental individuals for inclusion on the 
indicative list, providing relevant information on their knowledge of international trade and ofthe sectors 
•or subject matter ofthe covered agreements, and those names shall be added to the list upon approval 
by the DSB. For each of the individuals on the list, the list shall indicate specific areas of experience 
or expertise of the individuals in the sectors or subject matter of the covered agreements. 
5. Panels shall be composed of three panelists unless the parties to the dispute agree, within 10 
days from the establishment of the panel, to a panel composed of five panelists. Members shall be 
informed promptly of the composition of the panel. 
6. The Secretariat shall propose nominations for the panel to the parties to the dispute. The parties 
to the dispute shall not oppose nominations except for compelling reasons. 
7. If there is no agreement on the panelists within 20 days after the date of the establishment of 
a panel, at the request of either party, the Director-General, in consultation with the Chairman ofthe 
DSB and the Chairman of the relevant Council or Committee, shall determine the composition of the 
panel by appointing the panelists whom the Director-General considers most appropriate in accordance 
with any relevant special or additional rules or procedures of the covered agreement or covered 
agreements which are at issue in the dispute, after consulting with the parties to the dispute. The 
Chairman ofthe DSB shall inform the Members ofthe composition ofthe panel thus formed no later 
than 10 days after the date the Chairman receives such a request. 
8. Members shall undertake, as a general rule, to permit their officials to serve as panelists. 
9. Panelists shall serve in their individual capacities and not as government representatives, nor 
as representatives of any organization. Members shall therefore not give them instructions nor seek 
to influence them as individuals with regard to matters before a panel. 
10. When a dispute is between a developing country Member and a developed country Member 
the panel shall, if the developing country Member so requests, include at least one panelist from a 
developing country Member. 
11. Panelists' expenses, including travel and subsistence allowance, shall be met from the WTO 
budget in accordance with criteria to be adopted by the General Council, based on recommendations 
of the Committee on Budget, Finance and Administration. 
*In the case where customs unions or common markets are parties to a dispute, this provision applies to citizens of all 
member countries of the customs unions or common markets. 
Page 360 
Article 9 
Procedures for Multiple Complainants 
1. Where more than one Member requests the esublishment of a panel related to the same matter, 
a single panel may be esublished to examine these complaints taking into account the rights of all 
Members concerned. A single panel should be esublished to examine such complaints whenever feasible. 
2. The single panel shall organize its examination and present its findings to the DSB in such 
a manner that the rights which die parties to the dispute would have enjoyed had separate panels examined 
the complaints are in no way impaired. If one of the parties to the dispute so requests, the panel shall 
submit separate reports on the dispute concerned. The written submissions by each of the complainants 
shall be made available to the other complainants, and each complainant shall have the right to be present 
when any one of the other complainants presents its views to the panel. 
3. If more than one panel is established to examine the complaints related to the same matter, 
to the greatest extent possible the same persons shall serve as panelists on each of the separate panels 
and the timetable for the panel process in such disputes shall be harmonized. 
Article 10 
Third Parties 
1. The interests ofthe parties to a dispute and ihose of other Members under a covered agreement 
at issue in the dispute shall be fully uken into account during the panel process. 
2. Any Member having a substantial interest in a matter before a panel and having notified its 
interest to the DSB (referred to in this Understanding as a "third party") shall have an opportunity 
to be heard by the panel and to make written submissions to the panel. These submissions shall also 
be given to the parties to the dispute and shall be reflected in the panel report. 
3. Third parties shall receive the submissions ofthe parties to the dispute to the first meeting of 
the panel. 
4. If a third party considers that a measure already the subject of a panel proceeding nullifies 
or impairs benefits accruing to it under any covered agreement, that Member may have recourse to 
normal dispute settlement procedures under this Understanding. Such a dispute shall be referred to 
the original panel wherever possible. 
Article 11 
Function of Panels 
The function of panels is to assist the DSB in discharging its responsibilities under this 
Understanding and the covered agreements. Accordingly, a panel should make an objective assessment 
ofthe matter before it, including an objective assessment ofthe facts ofthe case and the applicability 
of and conformity with the relevant covered agreements, and make such other findings as will assist 
the DSB in making the recommendations or in giving the rulings provided for in the covered agreements. 
Panels should consult regularly with the parties to the dispute and give them adequate opportunity to 
develop a mutually satisfactory solution. 
Page 361 
Article 12 
Panel Procedures 
1. Panels shall follow the Working Procedures in Appendix 3 unless the panel decides otherwise 
after consulting the parties to the dispute. 
2. Panel procedures should provide sufficient flexibility so as to ensure high-quality panel reports, 
while not unduly delaying the panel process. 
3? After consulting the parties to the dispute, the panelists shall, as soon as practicable and whenever 
possible within one week after the composition and terms of reference of the panel have been agreed 
upon, fix the timetable for the panel process, taking into account the provisions of paragraph 9 of 
Article 4, if relevant. 
4. In determining the timetable for the panel process, the panel shall provide sufficient time for 
the parties to the dispute to prepare their submissions. 
5. Panels should set precise deadlines for written submissions by the parties and the parties should 
respect those deadlines. 
6. Each party to the dispute shall deposit its written submissions with the Secretariat for immediate 
transmission to the panel and to the other party or parties to the dispute. The complaining party shall 
submit its first submission in advance ofthe responding party's first submission unless the panel decides, 
in fixing the timetable referred to in paragraph 3 and after consultations with the parties to the dispute, 
that the parties should submit their first submissions simultaneously. When there are sequential 
arrangements for the deposit of first submissions, the panel shall establish a firm time-period for receipt 
of the responding party's submission. Any subsequent written submissions shall be submitted 
simultaneously. 
7. Where the parties to the dispute have failed to develop a mutually satisfactory solution, the 
panel shall submit its findings in the form of a written report to the DSB. In such cases, the report 
of a panel shall set out the findings of fact, the applicability of relevant provisions and the basic rationale 
behind any findings and recommendations that it makes. Where a settlement ofthe matter among the 
parties to the dispute has been found, the report ofthe panel shall be confined to a brief description 
of the case and to reporting that a solution has been reached. 
8. In order to make the procedures more efficient, the period in which the panel shall conduct 
its examination, from the date that the composition and terms of reference ofthe panel have been agreed 
upon until the date the final report is issued to the parties to the dispute, shall, as a general rule, not 
exceed six months. In cases of urgency, including those relating to perishable goods, the panel shall 
aim to issue its report to the parties to the dispute within three months. 
9. When the panel considers that it cannot issue its report within six months, or within three months 
in cases of urgency, it shall inform the DSB in writing of the reasons for the delay together with an 
estimate of the period within which it will issue its report. In no case should the period from the 
establishment of the panel to the circulation of the report to the Members exceed nine months. 
10. In the context of consultations involving a measure taken by a developing country Member, 
the parties may agree to extend the periods established in paragraphs 7 and 8 of Article 4. If, after 
the relevant period has elapsed, the consulting parties cannot agree that the consultations have concluded, 
the Chairman ofthe DSB shall decide, after consulution with the parties, whether to extend the relevant 
period and, if so, for how long. In addition, in examining a complaint against a developing country 
Page 362 
Member, the panel shall accord sufficient time for the developing country Member to prepare and present 
its argumenution. The provisions of paragraph 1 of Article 20 and paragraph 4 of Article 21 are not 
affected by any action pursuant to this paragraph. 
11. Where one or more of the parties is a developing country Member, the panel's report shall 
explicitly indicate the form in which account has been uken of relevant provisions on differential and 
more-favourable treatment for developing country Members that form part of the covered agreements 
which have been raised by the developing country Member in the course of the dispute settlement 
procedures. 
12. The panel may suspend its work at any time at the request ofthe complaining party for a period 
not to exceed 12 months. In the event of such a suspension, the time-frames set out in paragraphs 
8 and 9 of this Article, paragraph 1 of Article 20, and paragraph 4 of Article 21 shall be extended 
by the amount of time that the work was suspended. If the work of the panel has been suspended for 
more than 12 months, the authority for establishment of the panel shall lapse. 
Article 13 
Right to Seek Information 
1. ' Each panel shall have the right to seek information and technical advice from any individual 
or body which it deems appropriate. However, before a panel seeks such information or advice from 
any individual or body within the jurisdiction of a Member it shall inform the authorities ofthat Member. 
A Member should respond promptly and fully to any request by a panel for such information as the 
panel considers necessary and appropriate. Confidential information which is provided shall not be 
revealed without formal authorization from the individual, body, or authorities ofthe Member providing 
the information. 
2. Panels may seek information from any relevant source and may consult experts to obtain their 
opinion on certain aspects of the matter. With respect to a factual issue concerning a scientific or other 
technical matter raised by a party to a dispute, a panel may request an advisory report in writing from 
an expert review group. Rules for the establishment of such a group and its procedures are set forth 
in Appendix 4. 
Article 14 
Confidentiality 
1. Panel deliberations shall be confidential. 
2. The reports of panels shall be drafted without the presence of the parties to the dispute in the 
light of the information provided and the statements made. 
3. Opinions expressed in the panel report by individual panelists shall be anonymous. 
Page 363 
Article 15 
Interim Review Stage 
1. Following the consideration of rebutul submissions and oral arguments, the panel shall issue 
the descriptive (factual and argument) sections of its draft report to the parties to the dispute. Within 
a period of time set by the panel, the.parties shall submit their comments in writing. 
2. Following the expiration of the set period of time for receipt of comments from the parties 
to the dispute, the panel shall issue an interim report to the parties, including both the descriptive sections 
and the panel's findings and conclusions. Within a period of time set by the panel, a party may submit 
a written request for the panel to review precise aspects of the interim report prior to circulation of 
the final report to the Members. At the request of a party, the panel shall hold a further meeting with 
the parties on the issues identified in the written comments. If no comments are received from any 
party within the comment period, the interim report shall be considered the final panel report and 
circulated promptly to the Members. 
3. The findings of the final panel report shall include a discussion of the arguments made at the 
interim review stage. The interim review stage shall be conducted within the time-period set out in 
paragraph 8 of Article 12. 
Article 16 
Adoption of Panel Reports 
1. In order to provide sufficient time for the Members to consider panel reports, the reports shall 
not be considered for adoption by the DSB until 20 days after the date they have been circulated to 
the Members. 
2. Members having objections to a panel report shall give written reasons to explain their objections 
for circulation at least 10 days prior to the DSB meeting at which the panel report will be considered. 
3. The parties to a dispute shall have the right to participate fully in the consideration ofthe panel 
report by the DSB. and their views shall be fully recorded. 
4. Within 60 days after the date of circulation of a panel report to the Members, the report shall 
be adopted at a DSB meeting7 unless a party to the dispute formally notifies the DSB of its decision 
to appeal or the DSB decides by consensus not to adopt the report. If a party has notified its decision 
to appeal, the report by the panel shall not be considered for adoption by the DSB until after completion 
of the appeal. This adoption procedure is without prejudice to the right of Members to express their 
views on a panel report. 
7If a meeting of the DSB is not scheduled within this period at a time that enables the requirements of paragraphs 1 and 4 
of Anicle 16 to be met, a meeting of the DSB shall be held for this purpose. 
Page 364 
Article 17 
Appellate Review 
Standing Appellate Body 
1. A standing Appellate Body shall be esublished by the DSB. The Appellate Body shall hear 
appeals from panel cases. It shall be composed of seven persons, three of whom shall serve on any 
one case. Persons serving on the Appellate Body shall serve in rotation. Such rotation shall be 
determined in the working procedures ofthe Appellate Body. 
2. The DSB shall appoint persons to serve on the Appellate Body for a four-year term, and each 
person may be reappointed once. However, the terms of three of the seven persons appointed 
immediately after the entry into force of the WTO Agreement shall expire at the end of two years, 
to be determined by lot. Vacancies shall be filled as they arise. A person appointed to replace a person 
whose term of office has not expired shall hold office for the remainder of the predecessor's term. 
3. The Appellate Body shall comprise persons of recognized authority, with demonstrated expertise 
in law, international trade and the subject matter ofthe covered agreements generally. They shall be 
unaffiliated with any government. The Appellate Body membership shall be broadly representative 
of membership in the WTO. All persons serving on the Appellate Body shall be available at all times 
and on short notice, and shall stay abreast of dispute settlement activities and other relevant activities 
of the WTO, They shall not participate in the consideration of any disputes that would create a direct 
or indirect conflict of interest. 
4. Only parties to the dispute, not third parties, may appeal a panel report. Third parties which 
have notified the DSB of a substantial interest in the matter pursuant to paragraph 2 of Anicle 10 may 
make written submissions to, and be given an opportunity to be heard by, the Appellate Body. 
5. As a general rule, the proceedings shall not exceed 60 days from the date a party to the dispute 
formally notifies its decision to appeal to the date the Appellate Body circulates its report. In fixing 
its timetable the Appellate Body shall take into account the provisions of paragraph 9 of Article 4. 
if relevant. When the Appellate Body considers that it cannot provide its report within 60 days, it 
shall inform the DSB in writing of the reasons for the delay together with an estimate of the period 
within which it will submit its report. In no case shall the proceedings exceed 90 days. 
6. An appeal shall be limited to issues of law covered in the panel report and legal interpretations-
developed by the panel. 
7. The Appellate Body shall be provided with appropriate administrative and legal support as 
it requires. 
8. The expenses of persons serving on the Appellate Body, including travel and subsistence 
allowance, shall be met from the WTO budget in accordance with criteria to be adopted by the General 
Council, based on recommendations ofthe Committee on Budget, Finance and Administration. 
Procedures for Appellate Review 
9. Working procedures shall be drawn up by the Appellate Body in consultation with the Chairman 
of the DSB and the Director-General, and communicated to the Members for their information. 
Page 365 
10. The proceedings of the Appellate Body shall be confidential. The reports of the Appellate 
Body shall be drafted without the presence ofthe parties to the dispute and in the light ofthe information 
provided and the statements made. 
11. Opinions expressed in the Appellate Body report by individuals serving on the Appellate Body 
shall be anonymous. 
12. The Appellate Body shall address each of the issues raised in accordance with paragraph 6 
during the appellate proceeding. 
13. The Appellate Body may uphold, modify or reverse the legal findings-and conclusions of the 
panel. 
Adoption of Appellate Body Reports 
14. An Appellate Body report shall be adopted by the DSB and unconditionally accepted by the 
parties to the dispute unless the DSB decides by consensus not to adopt the Appellate Body report within 
30 days following its circulation to the Members.8 This adoption procedure is without prejudice to 
the right of Members to express their views on an Appellate Body report. 
* * Article 18 
Communications with the Panel or Appellate Body 
1. There shall be no ex parte communications with the panel or Appellate Body concerning matters 
under consideration by the panel or Appellate Body; 
2. Written submissions to the panel or the Appellate Body shall be treated as confidential, but 
shall be made available to the parties to the dispute. Nothing in this Understanding shall preclude 
a party to a dispute from disclosing statements of its own positions to the public. Members shall treat 
as confidential information submitted by another Member to the panel or the Appellate Body which 
that Member has designated as confidential. A party to a dispute shall also, upon request of a Member. 
provide a non-confidential summary ofthe information contained in its written submissions that could 
be disclosed to the public. 
Article 19 
Panel and Appellate Body Recommendations 
1. Where a panel or the Appellate Body concludes that a measure is inconsistent with a covered 
agreement, it shall recommend that the Member concerned" bring the measure into conformity with 
that agreement.10 In addition to its recommendations, the panel or Appellate Body may suggest ways 
in which the Member concerned could implement the recommendations. 
'If a meeting of the DSB is not scheduled during this period, such a meeting of the DSB shall be held for this purpose. 
*The "Member concerned" is the party to the dispute to which the panel or Appellate Body recommendations are directed. 
l(>With respect to recommendations in cases not involving a violation of GATT 1994 or any other cohered agreement. 
see Article 26. 
Page 366 
2. In accordance with paragraph 2 of Article 3, in their findings and recommendations, the panel 
and Appellate Body cannot add to or diminish the rights and obligations provided in the covered 
agreements. 
Article 20 
Time-frame for DSB Decisions 
Unless otherwise agreed to by the parties to the dispute, the period from the date of esublishment 
of the panel by the DSB until the date the DSB considers the panel or appellate report for adoption 
shall as a general rule not exceed nine months where the panel report is not appealed or 12 months 
where the report is appealed. Where either the panel or the Appellate Body has acted, pursuant to 
paragraph 9 of Article 12 or paragraph 5 of Article 17, to extend the time for providing its report, 
the additional time uken shall be added to the above periods. 
Article 21 
Surveillance of Implementation of Recommendations and Rulings 
1. Prompt compliance with recommendations or rulings ofthe DSB is essential in order to ensure 
effective resolution of disputes to the benefit of all Members. 
2. Particular attention should be paid to matters affecting the interests of developing country 
Members with respect to measures which have been subject to dispute settlement. 
3. At a DSB meeting held within 30 days" after the date of adoption of the panel or Appellate 
Body report, the Member concerned shall inform the DSB of its intentions in respect of implementation 
of the recommendations and rulings of the DSB. If it is impracticable to comply immediately with 
the recommendations and rulings, the Member concerned shall have a reasonable period of time in 
which to do so. The reasonable period of time shall be: 
(a) the period of time proposed by the Member concerned, provided that such period is 
approved by the DSB; or. in the absence of such approval, 
(b) a period of time mutually agreed by the parties to the dispute within 45 days after the 
date of adoption of the recommendations and rulings; or, in the absence of such 
agreement, 
(c) a period of time determined through binding arbitration within 90 days after the date 
of adoption of the recommendations and rulings.12 In such arbitration, a guideline for 
the arbitrator0 should be that the reasonable period of time to implement panel or 
Appellate Body recommendations should not exceed 15 months from the date of adoption 
of a panel or Appellate Body report. However, that time may be shorter or longer, 
depending upon the particular circumstances. 
"If a meeting of the DSB is not scheduled during this period, such a meeting of the DSB shall be held for this purpose. 
"If the parties cannot agree on an arbitrator within ten days after referring the matter to arbitration, the arbitrator shall 
be appointed by the Director-General within ten days, after consulting the parties. 
"The expression "arbitrator" shall be interpreted as referring either to an individual or a group. 
Page 367 
4. Except where the panel or the Appellate Body has extended, pursuant to paragraph 9 of Article 12 
or paragraph 5 of Article 17, the time of providing its report, the period from the date of establishment 
ofthe panel by the DSB until the date of determination ofthe reasonable period of time shall not exceed 
15 months unless the parties to the dispute agree otherwise. Where either the panel or the Appellate 
Body has acted to extend the time of providing its report, the additional time taken shall be added to 
the 15-month period; provided that unless-the parties to the dispute agree that there are exceptional 
circumstances, the total time shall not exceed 18 months. 
5. Where there is disagreement as to the existence or consistency with a covered agreement of 
measures taken to comply with the recommendations and rulings such dispute shall be decided through 
recourse to these dispute settlement procedures, including wherever possible resort to the original panel. 
The panel shall circulate its report within 90 days after the date of referral ofthe matter to it. When 
•the panel considers that it cannot provide its report within this time frame, it shall inform the DSB 
m writing ofthe reasons for the delay together with an estimate ofthe period within which it will submit 
its report. 
6. The DSB shall keep under surveillance the implemenution of adopted recommendations or 
rulings. The issue of implementation of the recommendations or rulings may be raised at the DSB 
by any Member at any time following their adoption. Unless the DSB decides otherwise, the issue 
of implementation of the recommendations or rulings shall be placed on the agenda ofthe DSB meeting 
after six months following the date of establishment of the reasonable period of time pursuant to 
paragraph 3 and shall remain on the DSB's agenda until the issue is resolved. At least 10 days prior 
to each such DSB meeting, the Member concerned shall provide the DSB with a status report in writing 
of its progress in the implementation of the recommendations or rulings. 
7. If the matter is one which has been raised by a developing country Member, the DSB shall 
consider what further action it might take which would be appropriate to the circumstances. 
8. If the case is one brought by a developing country Member, in considering what appropriate 
action might be taken, the DSB shall take into account not only the trade coverage of measures 
complained of. but also their impact on the economy of developing country Members concerned. 
Article 22 
Compensation and the Suspension of Concessions 
1. Compensation and the suspension of concessions or other obligations are temporary measures 
available in the event that the recommendations and rulings are not implemented within a reasonable 
period of time. However, neither compensation nor the suspension of concessions or other obligations 
is preferred to full implementation of a recommendation to bring a measure into conformity with the 
covered agreements. Compensation is voluntary and, if granted, shall be consistent with the covered 
agreements. 
2. If the Member concerned fails to bring the measure found to be inconsistent with a covered 
agreement into compliance therewith or otherwise comply with the recommendations and rulings within 
the reasonable period of time determined pursuant to paragraph 3 of Article 21, such Member shall, 
if so requested, and no later than the expiry of the reasonable period of time, enter into negotiations 
with any party having invoked the dispute settlement procedures, with a view to developing mutually 
acceptable compensation. If no satisfactory compensation has been agreed within 20 days after the 
date of expiry of the reasonable period of time, any party having invoked the dispute settlement 
procedures may request authorization from the DSB to suspend the application to the Member concerned 
of concessions or other obligations under the covered agreements. 
Page 368 
3. In considering what concessions or other obligations to suspend, the complaining party shall 
apply the following principles and procedures: 
(a) the general principle is that the complaining party should first seek to suspend 
concessions or other obligations with respect to the same sector(s) as that in which 
the panel or Appellate Body has found a violation or other nullification or impairment; 
(b) if that party considers that it is not practicable or effective to suspend concessions or 
other obiigations with respect to the same sector(s), it may seek to suspend concess ions 
or other obligations in other sectors under the same agreement; 
(c) if that party considers that it is not practicable or effective to suspend concessions or 
other obligations with respect to other sectors under the same agreement, and that the 
circumstances are serious enough, it may seek to suspend concessions or other 
obligations under another covered agreement; 
(d) in applying the above principles, that party shall take into account: 
(i) the trade in the sector or under the agreement under which the panel or 
Appellate Body has found a violation or other nullification or impairment, and 
the importance of such trade to that party; 
(ii) the broader economic elements related to the nullification or impairment and 
the broader economic consequences of the suspension of concessions or other 
obligations; 
(e) if that party decides to request authorization to suspend concessions or other obligations 
pursuant to subparagraphs (b) or (c), it shall state the reasons therefor in its request. 
At the same time as the request is forwarded to the DSB, it also shall be forwarded 
to the relevant Councils and also, in the case of a request pursuant to subparagraph (b). 
the relevant sectoral bodies; 
(f) for purposes of this paragraph, "sector" means: 
(i) with respect to goods, all goods; 
(ii) with respect to services, a principal sector as identified in the current "Services 
Sectoral Classification List" which identifies such sectors:14 
(iii) with respect to trade-related intellectual property rights, each of the categories 
of intellectual property rights covered in Section 1, or Section 2. or Section 3. 
or Section 4, or Section 5, or Section 6, or Section 7 of Part II. or the 
obligations under Part III, or Part IV of the Agreement on TRIPS;. 
(g) for purposes of this paragraph, "agreement" means: 
(i) with respect to goods, the agreements listed in Annex 1A of the WTO 
Agreement, taken as a whole as well as the Plurilateral Trade Agreements in 
so far as the relevant parties to the dispute are parties to these agreements; 
(ii) with respect to services, the GATS; 
"The lisi in document MTN.GNS/W/J20 identifies eleven sectors. 
Page 369 
(iii) with respect to intellectual property rights, the Agreement on TRIPS. 
4. The level of the suspension of concessions or other obligations authorized by the DSB shall 
be equivalent to the level of the nullification or impairment. 
5. The DSB shall not authorize suspension of concessions or other obligations if a covered agreement 
prohibits such suspension. 
6. When the situation described in paragraph 2 occurs, the DSB, upon.request, shall grant 
authorization to suspend concessions or other obligations within 30 days of the expiry' of the reasonable 
period of time unless the DSB decides by consensus to reject the request. However, if the. Member 
concerned objects to the level of suspension proposed, or claims that the principles and procedures 
set forth in paragraph 3 have not been followed where a complaining party has requested authorization 
to suspend concessions or other obligations pursuant to paragraph 3(b) or (c), the matter shall be referred 
to arbitration. Such arbitration shall be carried out by the original panel, if members are available, 
or by an arbitrator15 appointed by the Director-General and shall be completed within 60 days after 
the date of expiry of the reasonable period of time. Concessions or other obligations shall not be 
suspended during the course of the arbitration. 
7. The arbitrator16 acting pursuant to paragraph 6 shall not examine the nature of the concessions 
or other obligations to be suspended but shall determine whether the level of such suspension is equivalent 
to the level of nullification or impairment. The arbitrator may also determine if the proposed suspension 
of concessions or other obligations is allowed under the covered agreement. However, if the matter 
referred to arbitration includes a claim that the principles and procedures set forth in paragraph 3 have 
not been followed, the arbitrator shall examine that claim. In the event the arbitrator determines that 
those principles and procedures have not been followed, the complaining party shall apply them consistent 
with paragraph 3. The parties shall accept the arbitrator's decision as final and the parties concerned 
shall not seek a second arbitration. The DSB shall be informed promptly ofthe decision ofthe arbitrator 
and shall upon request, grant authorization to suspend concessions or other obligations where the request 
is consistent with the decision ofthe arbitrator, unless the DSB decides by consensus to reject the request. 
8. The suspension of concessions or other obligations shall be temporary and shall only be applied 
until such time as the measure found to be inconsistent with a covered agreement has been removed, 
or the Member that must implement recommendations or rulings provides a solution to the nullification 
or impairment of benefits, or a mutually satisfactory solution is reached. In accordance with paragraph 6 
of Article 21, the DSB shall continue to keep under surveillance the implementation of adopted 
recommendations or rulings, including those cases where compensation has been provided or concessions 
or other obligations have been suspended but the recommendations to bring a measure into conformity 
with the covered agreements have not been implemented. 
9. The dispute settlement provisions of the covered agreements may be invoked in respect of 
measures affecting their observance taken by regional or local governments or authorities within the 
territory of a Member. When the DSB has ruled that a provision of a covered agreement has not been 
observed, the responsible Member shall take such reasonable measures as may be available to it to 
ensure its observance. The provisions of the covered agreements and this Understanding relating to 
"The expression "arbitrator" shall be interpreted as referring either to an individual or a group. 
,6The expression "arbitrator" shall be interpreted as referring either to an individual or a group or to the members of 
the original panel when serving in the capacity of arbitrator. 
Page 370 
compensation and suspension of concessions or other obligations appls "in cases where it has not been 
possible to secure such observance.17 
Article 23 
Strengthening of the Multilateral System 
1. When Members seek the redress of a violation of obligations or other nullification or impairment 
of benefits under the covered agreements or an impediment to the attainment of any objective of the 
covered agreements, they shall have recourse to, and abide by, the rules and procedures of this 
Understanding. 
2. In such cases, Members shall: 
(a) not make a determination to the effect that a violation has occurred, that benefits have 
been nullified or impaired or that the attainment of any objective of the covered 
agreements has been impeded, except through recourse to dispute settlement in 
accordance with the rules and procedures of this Understanding, and shall make any 
such determination consistent with the findings contained in the panel or Appellate 
Body report adopted by the DSB or an arbitration award rendered under this 
Understanding; 
(b) follow the procedures set forth in Article 21 to determine the reasonable period of time 
for the Member concerned to implement the recommendations and rulings; and 
(c) follow the procedures set forth in Article 22 to determine the level of suspension of 
concessions or other obligations and obtain DSB authorization in accordance with those 
procedures before suspending concessions or other obligations under the covered 
agreements in response to the failure of the Member concerned to implement the 
recommendations and rulings within that reasonable period of time. 
Article 24 
Special Procedures Involving Least-Developed Country Members 
1. At all stages of the determination ofthe causes of a dispute and of dispute settlement procedures 
involving a least-developed country Member, particular consideration shall be given to the special 
situation of least-developed country Members. In this regard, Members shall exercise due restraint 
in raising matters under these procedures involving a least-developed country Member. If nullification 
or impairment is found to result from a measure taken by a least-developed country Member, complaining 
parties shall exercise due restraint in asking for compensation or seeking authorization to suspend the 
application of concessions or other obligations pursuant to these procedures. 
2. In dispute settlement cases involving a least-developed country Member, where a satisfactory 
solution has not been found in the course of consultations the Director-General or the Chairman of 
the DSB shall, upon request by a least-developed country Member offer their good offices, conciliation 
and mediation with a view to assisting the parties to settle the dispute, before a request for a panel 
,TWhere the provisions of any covered agreement concerning measures taken by regional or local governments or authorities 
within the territory of a Member conuin provisions different from the provisions of this paragraph, the provisions of such 
covered agreement shall prevail. 
Page 371 
is made. The Director-General or the Chairman ofthe DSB, in providing the above assisunce, may 
consult any source which either deems appropriate. 
Article 25 
Arbitration 
1. Expeditious arbitration within the WTO as an alternative means of dispute settlement can facilitate 
the solution of certain disputes that concern issues that are clearly defined by both parties. 
2. Except as otherwise provided in this Undersunding, resort to arbitration shall be subject to 
mutual agreement of the parties which shall agree on the procedures to be followed. Agreements to 
•resort to arbitration shall be notified to all Members sufficiently in advance ofthe actual commencement 
of the arbitration process. 
3. Other Members may become party to an arbitration proceeding only upon the agreement of 
the parties which have agreed to have recourse to arbitration. The parties to the proceeding shall agree 
to abide by the arbitration award. Arbitration awards shall be notified to the DSB and the Council 
or Committee of any relevant agreement where any Member may raise any point relating thereto. 
4. Articles 21 and 22 of this Understanding shall apply mutatis mutandis to arbitration awards. 
Article 26 
1. Son-Violation Complaints of the Type Described in Paragraph 1(b) of Article XXIII of 
GATT 1994 
Where the provisions of paragraph 1(b) of Article XXIII of GATT 1994 are applicable to a 
covered agreement, a panel or the Appellate Body may only make rulings and recommendations where 
a party to the dispute considers that any benefit accruing to it directly or indirectly under the relevant 
covered agreement is being nullified or impaired or the attainment of any objective ofthat Agreement 
is being impeded as a result ofthe application by a Member of any measure, whether or not it conflicts 
with the provisions of that Agreement. Where and to the extent that such party considers and a panel 
or the Appellate Body determines that a case concerns a measure that does not conflict with the provisions 
of a covered agreement to which the provisions of paragraph 1(b) of Article XXIII of GATT 1994 
are applicable, the procedures in this Understanding shall apply, subject to the following: 
(a) the complaining party shall present a detailed justification in support of any complaint 
relating to a measure which does not conflict with the relevant covered agreement; 
(b) where a measure has been found to nullify or impair benefits under, or impede the 
attainment of objectives, ofthe relevant covered agreement without violation thereof, 
there is no obligation to withdraw the measure. However, in such cases, the panel 
or the Appellate Body shall recommend that the Member concerned make a mutually 
satisfactory adjustment; 
(c) notwithstanding the provisions of Article 21, the arbitration provided for in paragraph 3 
of Article 21, upon request of either party, may include a determination of the level 
of benefits which have been nullified or impaired, and may also suggest ways and means 
of reaching a mutually satisfactory adjustment; such suggestions shall not be binding 
upon the parties to the dispute; 
Page 372 
(d) notwithsunding the provisions of paragraph 1 of Article 22, compensation may be 
part of a mutually satisfactory adjustment as final settlement of the dispute. 
2. Complaints of the Type Described in Paragraph 1 (c) of Article XXIII of GATT 1994 
Where the provisions of paragraph 1(c) of Article XXIII of GATT 1994 are applicable to a 
covered agreement, a panel may only make rulings and recommendations where a party considers that 
any benefit accruing to it directly or indirectly under the relevant covered agreement is being nullified 
or impaired or the attainment of any objective of that Agreement is being impeded as a result of the 
existence of any situation other than those to which the provisions of paragraphs 1(a) and 1(b) of 
Article XXIII of GATT 1994 are applicable. Where and to the extent that such party considers and 
a panel determines that the matter is covered by this paragraph, the procedures of this Understanding 
shall apply only up to and including the point in the proceedings where the panel report has been 
circulated to the Members. The dispute settlement rules and procedures conuined in the Decision 
of 12 April 1989 (BISD 36S/61-67) shall apply to consideration for adoption, and surveillance and 
implementation of recommendations and rulings. The following shall also apply: 
(a) the complaining party shall present a detailed justification in support of any argument 
made with respect to issues covered under this paragraph; 
(b) in cases involving matters covered by this paragraph, if a panel finds that cases also 
involve dispute settlement matters other than those covered by this paragraph, the panel 
shall circulate a report to the DSB addressing any such matters and a separate report 
.on matters falling under this paragraph. 
Article 27 
Responsibilities of the Secretariat 
1. The Secretariat shall have the responsibility of assisting panels, especially on the legal. historical 
and procedural aspects of the matters dealt with, and of providing secretarial and technical support. 
2. While the Secretariat assists Members in respect of dispute settlement at their request, there 
may also be a need to provide additional legal advice and assistance in respect of dispute settlement 
to developing country Members. To this end, the Secretariat shall make available a qualified legal 
expert from the WTO technical cooperation services to any developing country Member which so 
requests. This expert shall assist the developing country Member in a manner ensuring the continued 
impartiality of the Secretariat. 
3. The Secretariat shall conduct special training courses for interested Members concerning these 
dispute settlement procedures and practices so as to enable Members' experts to be better informed 
in this regard. 
Page 373 • 
APPENDIX 1 
AGREEMENTS COVERED BY THE UNDERSTANDING 
(A) Agreement Establishing the World Trade Organization 
(B) Multilateral Trade Agreements 
Annex 1A: -Multilateral Agreements on Trade in Goods 
Annex IB: General Agreement on Trade in Services 
Annex IC: Agreement on Trade-Related Aspects of Intellectual Property Rights 
Annex 2: Understanding on Rules and Procedures Governing the Settlement of. Disputes 
(C) Plurilateral Trade Agreements 
Annex 4: Agreement on Trade in Civil Aircraft 
Agreement on Government Procurement 
International Dairy Agreement 
International Bovine Meat Agreement 
The applicability of this Understanding to the Plurilateral Trade Agreements shall be subject 
to the adoption of a decision by the parties to each agreement setting out the terms for the application 
ofthe Understanding to the individual agreement, including any special or additional rules or procedures 
for inclusion in Appendix 2, as notified to the DSB. 
Page 374 
APPENDIX 2 
SPECIAL OR ADDITIONAL RULES AND PROCEDURES 
CONTAINED IN THE COVERED AGREEMENTS 
Agreement 
Agreement on the Application of Sanitary 
and Phytosaniury Measures 
Agreement on Textiles and Clothing 
Agreement on Technical Barriers to Trade 
Agreement on Implementation of Article VI 
of GATT 1994 
Agreement on Implementation of Article VII 
of GATT 1994 Rules and Procedures 
11.2 
2.14,2.21,4.4,5.2,5.4,5.6,6.9, 
6.10,6.11, 8.1 through 8.12 
14.2 through 14.4, Annex 2 
17.4 through 17.7 
19.3 through 19.5, Annex 11.2(f), 3, 9, 21 
Agreement on Subsidies and Countervailing Measures 4.2 through4.12, 6.6,7.2 through 7.10, 8.5, 
footnote 35, 24.4, 27.7, Annex V 
General Agreement on Trade in Services 
Annex on Financial Services 
Annex on Air Transport Services 
Decision on Certain Dispute Settlement 
Procedures for the GATS XXII.3, XXIII:3 
4 
4 
1 through 5 
The list of rules and procedures in this Appendix includes provisions where only a part ofthe 
provision may be relevant in this context. 
Any special or additional rules or procedures in the Plurilateral Trade Agreements as determined 
by the competent bodies of each agreement and as notified to the DSB. 
Page 375 
APPENDIX 3 
WORKING PROCEDURES 
1. In its proceedings the panel shall follow the relevant provisions of this Undersunding. In addition, 
the following working procedures shall apply. 
2. The panel shall meet in closed session. The parties to the dispute, and interested parties, shall 
be present at the meetings only when invited by the panel to appear before it. 
3. The deliberations of the panel and the documents submitted to it shall be kept confidential. 
Nothing in this Understanding shall preclude a party to a dispute from disclosing statements of its own 
positions to the public. Members shall treat as confidential information submitted by another Member 
to the panel which that Member has designated as confidential. Where a party to a dispute submits 
a confidential version of its written submissions to the panel, it shall also, upon request of a Member, 
provide a non-confidential summary of the information conuined in its submissions that could be 
disclosed to the public. 
4. Before the first substantive meeting of the panel with the parties, the parties to the dispute shall 
transmit to the panel written submissions in which they present the facts ofthe casé and their arguments. 
5 At its first substantive meeting with the parties, the panel shall ask the party which has brought 
the complaint to present its case. Subsequently, and still at the same meeting, the party.against which 
the complaint has been brought shall be asked to present its point of view. 
6 All third parties which have notified their interest in the dispute to the DSB shall be invited in 
writing to present their views during a session of the first substantive meeting of the panel set aside 
for that purpose. All such third parties may be present during the entirety of this session. 
?. Formal rebuttals shall be made at a second substantive meeting of the panel. The party complained 
against shall have the right to take the floor first to be followed by the complaining party. The parties 
shall submit, prior to that meeting, written rebuttals to the panel. 
8 The panel may at any time put questions to the parties and ask them for explanations either in 
the course of a meeting with the parties or in writing. 
9 The parties to the dispute and any third party invited to present its views in accordance with 
Article 10 shall make available to the panel a written version of their oral statements. 
10 In the interest of full transparency, the presentations, rebuttals and statements referred to in 
paragraphs 5 to 9 shall be made in the presence of the parties. Moreover, each party's written 
submissions, including any comments on the descriptive part ofthe report and responses to questions 
put by the panel, shall be made available to the other party or parties. 
11. Any additional procedures specific to the panel. 
Page 376 
12. Proposed timeuble for panel work: 
(a) Receipt of first written submissions of the parties: 
(1) complaining Party: 
(2) "Party complained against: 3-6 weeks 
2-3 weeks 
(b) Date, time and place of first substantive meeting 
with the parties; third party session: 
(c) Receipt of written rebuttals of the parties: 
(d) Date, time and place of second substantive 
meeting with the parties: 
(e) Issuance of descriptive part of the report to the parties: 
(f) Receipt of comments by the parties on the 
descriptive part of the report: 
(g) Issuance ofthe interim report, including the 
findings and conclusions, to the parties: 
(h) Deadline for party to request review of part(s) of report: 
(i) Period of review by panel, including possible 
additional meeting with parties: 
(j) Issuance of final report to parties to dispute: 
(k) Circulation of the final report to the Members: 1-2 weeks 
2-3 weeks 
1-2 weeks 
2-4 weeks 
2 weeks 
2-4 weeks 
1 week 
2 weeks 
2 weeks 
3 weeks 
The above calendar may be changed in the light of unforeseen developments. Additional meetings 
with the parties shall be scheduled if required. 
Page 377 
APPENDIX 4 
EXPERT REVIEW GROUPS 
The following rules and procedures shall apply to expert review groups established in accordance 
with the provisions of paragraph 2 of Article 13. 
1. Expert review groups are under the panel's authority. Their terms of reference and detailed 
working procedures shall be decided by the panel, and they shall report to the panel. 
2. Participation in expert review groups shall be restricted to persons of professional standing and 
experience in the field in question. 
3. Citizens of parties to the dispute shall not serve on an expert review group without the joint 
agreement ofthe parties to the dispute, except in exceptional circumstances when the panel considers 
that the need for specialized scientific expertise cannot be fulfilled otherwise. Government officials 
of parties to the dispute shall not serve on an expert review group. Members of expert review groups 
shall serve in their individual capacities and not as government representatives, nor as representatives 
of any organization. Governments or organizations shall therefore not give them instructions with 
regard to matters before an expert review group. 
4. Expert review groups may consult and seek information and technical advice from any source 
they deem appropriate. Before an expert review group seeks such information or advice from a source 
within the jurisdiction of a Member, it shall inform the government ofthat Member. Any Member 
shall respond promptly and fully to any request by an expert review group for such information as 
the expert review group considers necessary and appropriate. 
5. The parties to a dispute shall have access to all relevant information provided to an expert review 
group, unless it is of a confidential nature. Confidential information provided to the expert review 
group shall not be released without formal authorization from the government, organization or person 
providing the information. Where such information is requested from the expert review group but 
release of such information by the expert review group is not authorized, a non-confidential summary 
ofthe information will be provided by the government, organization or person supplying the information. 
6. The expert review group shall submit a draft report to the parties to the dispute with a view 
to obtaining their comments, and taking them into account, as appropriate, in the final report, which 
shall also be issued to the parties to the dispute when it is submitted to the panel. The final report 
of the expert review group shall be advisory only. 
Page 378 
Page 379 
ANNEX 3 
TRADE POLICY REVIEW MECHANISM 
Members hereby agree as follows: 
A. Objectives 
(i) The purpose of the Trade Policy Review Mechanism (TPRM") is to contribute to 
•improved adherence by all Members to rules, disciplines and commitments made under the Multilateral 
Trade Agreements and, where applicable, the Plurilateral Trade Agreements, and hence to the smoother 
functioning ofthe multilateral trading system, by achieving greater transparency in, and understanding 
of. the trade policies and practices of Members. Accordingly, the review mechanism enables the regular 
collective appreciation and evaluation of the full range of individual Members' trade policies and practices 
and their impact on the functioning of the multilateral trading system. It is not, however, intended 
to serve as a basis for the enforcement of specific obligations under the Agreements or for dispute 
settlement procedures, or to impose new policy commitments on Members. 
(ii) . The assessment carried out under the review mechanism takes place, to the extent 
relevant, against the background ofthe wider economic and developmental needs, policies and objeaives 
of the Member concerned, as well as of its external environment. However, the function ofthe review 
mechanism is to examine the impact of a Member's trade policies and practices on the multilateral 
trading system! 
B Domestic transparency 
Members recognize the inherent value of domestic transparency of government decision-making 
on trade policy matters for both Members' economies and the multilateral trading system, and agree 
to encourage and promote greater transparency within their own systems, acknowledging that the 
implementation of domestic transparency must be on a voluntary basis and uke account of each Member's 
legal and political systems. 
C. Procedures for review 
(i ) The Trade Policy Review Body (referred to herein as the "TPRB") is hereby esublished 
to carry out trade policy reviews. 
(ii) The trade policies and practices of all Members shall be subject to periodic review. 
The impact of individual Members on the functioning of the multilateral trading system, defined in 
terms of their share of world trade in a recent representative period, will be the determining factor 
in deciding on the frequency of reviews. The first four trading entities so identified (counting the 
European Communities as one) shall be subject to review every two years. The next 16 shall be reviewed 
every four years. Other Members shall be reviewed every six years, except that a longer period may 
be fixed for least-developed country Members. It is understood that the review of entities having a 
common external policy covering more than one Member shall cover all components of policy affecting 
trade including relevant policies and practices ofthe individual Members. Exceptionally, in the event 
of changes in a Member's trade policies or practices that may have a significant impact on its trading 
partners, the Member concerned may be requested by the TPRB, after consultation, to bring forward 
its next review. 
Page 380 
(iii) Discussions in the meetings ofthe TPRB shall be governed by the objectives set forth 
in paragraph A. The focus of these discussions shall be on the Member's trade policies and practices,, 
which are the subject of the assessment under the review mechanism. 
(iv) The TPRB shall establish a basic plan for the conduct ofthe reviews. It may also discuss 
and uke note of update reports from Members. The TPRB shall esublish a programme of reviews 
for each year in consulution with the Members directly concerned. In consulution with the Member" 
or Members under review, the Chairman may choose discussants who, acting in their personal capacity, 
shall introduce the discussions in the TPRB. 
(v) The TPRB shall base its work on the following documentation: 
(a) a full report, referred to in paragraph D, supplied by the Member or Members 
under review; 
(b) a report, to be drawn up by the Secretariat on its own responsibility, based 
on the information available to it and that provided by the Member or Members 
concerned. The Secretariat should seek clarification from the Member or 
Members concerned of their trade policies and practices. 
(vi) The reports by the Member under review and by the Secreuriat, together with the minutes 
ofthe respective meeting of the TPRB, shall be published promptly after the review. 
(vii) These documents will be forwarded to the Ministerial Conference, which shall take 
note of them. 
D. . Reporting 
In order to achieve the fullest possible degree of transparency, each Member shall report regularly 
to the TPRB. Full reports shall describe the trade policies and practices pursued by the Member or 
Members concerned, based on an agreed format to be decided upon by the TPRB. This format shall 
initially be based onthe Outline Format for Country Reports established by the Decision of 19 July 1989 
(BISD 36S/406-409). amended as necessary to extend the coverage of reports to all aspects of trade 
policies covered by the Multilateral Trade Agreements in Annex 1 and, where applicable, the Plurilateral 
Trade Agreements. This format may be revised by the TPRB in the light of experience. Between 
reviews. Members shall provide brief reports when there are any significant changes in their trade 
policies; an annual update of statistical information will be provided according to the agreed format. 
Particular account shall be taken of difficulties presented to least-developed country Members in 
compiling their reports. The Secreuriat shall make available technical assisunce on request to developing 
country Members, and in particular to the least-developed country Members. Information contained 
in reports should to the greatest extent possible be coordinated with notifications made under provisions 
ofthe Multilateral Trade Agreements and, where applicable, the Plurilateral Trade Agreements. 
E. Relationship with the balance-of-payments provisions of GATT 1994 and GATS 
Members recognize the need to minimize the burden for governments also subject to full 
consultations under the balance-of-payments provisions of GATT 1994 or GATS. To this end, the 
Chairman ofthe TPRB shall, in consultation with the Member or Members concerned, and with the 
Chairman ofthe Committee on Balance-of-Payments Restrictions, devise administrative arrangements 
that harmonize the normal rhythm ofthe trade policy reviews with the timetable for balance-of-payments 
consultations but do not postpone the trade policy review by more than 12 months. 
Page 381 
F. Appraisal ofthe Mechanism 
The TPRB shall undertake an appraisal ofthe operation ofthe TPRM not more than five years 
after the entry into force of the Agreement Establishing the WTO. The results of the appraisal will 
be presented to the Ministerial Conference. It may subsequently undertake appraisals of the TPRM 
at intervals to be determined by it or as requested by the Ministerial Conference. 
G. Overview of Developments in the International Trading Environment 
An annual overview of developments in the international trading environment which are having 
an impact on the multilateral trading system shall also be undertaken by the TPRB. The overview 
is to be assisted by an annual report by the Director-General setting out major activities of the WTO 
and highlighting significant policy issues affecting the trading system. 
Page 382 
Page 383 
ANNEX 4 
PLURILATERAL TRADE AGREEMENTS 
AGREEMENT ON TRADE IN CIVIL AIRCRAFT 
The Agreement on Trade in Civil Aircraft, done at Geneva on 12 April 1979 (BISD 26S/162), 
as subsequently modified, rectified or amended. 
AGREEMENT ON GOVERNMENT PROCUREMENT 
The Agreement on Government Procurement done at Marrakesh on 15 April 1994. 
INTERNATIONAL DAIRY AGREEMENT 
The International Dairy' Agreement done at Marrakesh on 15 April 1994. 
INTERNATIONAL BOVINE MEAT AGREEMENT 
The International Bovine Meat Agreement done at Marrakesh on 15 April 1994. 
Page 384 
Page 385 
DECISION ON MEASURES IN FAVOUR OF LEAST-DEVELOPED COUNTRIES 
Ministers, 
Recognizing the plight of the least-developed countries and the need to ensure their effective 
participation in the world trading system, and to uke further measures to improve their trading 
opportunities; 
Recognizing the specific needs of the least-developed countries in the area of market access 
where continued preferential access remains an essential means for improving their trading opportunities; 
Reaffirming their commitment to implement fully the provisions concerning the least-developed 
countries contained in paragraphs 2(d), 6 and 8 ofthe Decision of 28 November 1979 on Differential 
and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries; 
Having regard to the commitment of the participants as set out in Section B (vii) of Part I of 
the Puma del Este Ministerial Declaration; 
1. Decide that, if not already provided for in the instruments negotiated in the course of the Uruguay 
Round, notwithstanding their acceptance of these instruments, the least-developed countries, and for 
so long as they remain in that category, while complying with the general rules set out in the aforesaid 
instruments, will only be-required to undertake commitments and concessions to the extent consistent 
with their individual development, financial and trade needs, or their administrative and institutional 
capabilities. The least-developed countries shall be given additional time ofone year from 15 April 1994 
to submit their schedules as required in Article XI of the Agreement Establishing the World Trade 
Organization. 
2. Agree that: 
(i) Expeditious implementation of all special and differential measures taken in favour 
of least-developed countries including those taken within the context of the Uruguay 
Round shall be ensured through, inter alia, regular reviews. 
(ii) To the extent possible, MFN concessions on tariffand non-tariff measures agreed in 
the Uruguay Round on products of export interest to the least-developed countries may 
be implemented autonomously, in advance and without staging. Consideration shall 
be given to further improve GSP and other schemes for products of particular export 
interest to least-developed countries. 
(iii) The rules set out in the various agreements and instruments and the transitional 
provisions in the Uruguay Round should be applied in a flexible and supportive manner 
for the least-developed countries. To this effect, sympathetic consideration shall be 
given to specific and motivated concerns raised by the least-developed countries in 
the appropriate Councils and Committees. 
(iv) In the application of import relief measures and other measures referred to in 
paragraph 3(c) of Article XXXVII of GATT 1947 and the corresponding provision 
of GATT 1994, special consideration shall be given to the export interests of least-
developed countries. 
(v) Least-developed countries shall be accorded substantially increased technical assistance 
in the development, strengthening-and diversification of their production and export 
Page 386 
bases including those of services, as well as in trade promotion, to enable them to 
maximize the benefits from liberalized access to markets. 
3. Agree to keep under review the specific needs of the least-developed countries and to continue 
to seek the adoption of positive measures which facilitate the expansion of trading opportunities in 
favour of these countries. 
Page 387 
DECLARATION ON THE CONTRIBUTION OF THE 
WORLD TRADE ORGANIZATION TO ACHIEVING GREATER 
COHERENCE IN GLOBAL ECONOMIC POLICYMAKING 
1. Ministers recognize that the globalization of the world economy has led to ever-growing 
interactions between the economic policies pursued by individual countries, including interactions between 
the structural, macroeconomic, trade, financial and development aspects of economic policymaking. 
The task of achieving harmony between these policies falls primarily on governments at the national 
level, but their coherence internationally is an important and valuable element in increasing the 
effectiveness of these policies at national level. The Agreements reached in the Uruguay Round show 
that all the participating governments recognize the contribution that liberal trading policies can make 
t.o the healthy growth and development of their own economies and ofthe world economy as a whole. 
2. Successful cooperation in each area of economic policy contributes to progress in other areas. 
Greater exchange rate stability, based on more orderly underlying economic and financial conditions, 
should contribute towards the expansion of trade, sustainable growth and development, and the correction 
of external imbalances. There is also a need for an adequate and timely flow of concessional and non-
concessional financial and real investment resources to developing countries and for further efforts 
to address debt problems, to help ensure economic growth and development. Trade liberalization forms 
an increasingly important component in the success ofthe adjustment programmes that many countries 
are undertaking, often involving significant transitional social costs. In this connection, Ministers note 
the rôle of the World Bank and the IMF in supporting adjustment to trade liberalization, including 
support to net food-importing developing countries facing short-term costs arising from agricultural 
trade reforms. 
3 The positive outcome ofthe Uruguay Round is a major contribution towards more coherent 
and complementary international economic policies. The results of the Uruguay Round ensure an 
expansion of market access to the benefit of all countries, as well as a framework of strengthened 
multilateral disciplines for trade. They also guarantee that trade policy will be conducted in a more 
transparent manner and with greater awareness ofthe benefits for domestic competitiveness of an open 
trading environment. The strengthened multilateral trading system emerging from the Uruguay Round 
has the capacity to provide an improved forum for liberalization, to contribute to more effective 
surveillance, and to ensure strict observance of multilaterally agreed rules and disciplines. These 
improvements mean that trade policy can in the future play a more substantial rôle in ensuring the 
coherence of global economic policymaking. 
4 Ministers recognize, however, that difficulties the origins of which lie outside the trade field 
cannot be redressed through measures taken in the trade field alone. This underscores the importance 
of efforts to improve other elements of global economic policymaking to complement the effective 
implementation of the results achieved in the Uruguay Round. 
5. The interlinkages between the different aspects of economic policy require that the international 
institutions with responsibilities ineach of these areas follow consistent and mutually supportive policies. 
The World Trade Organization should therefore pursue and develop cooperation with the international 
organizations responsible for monetary and financial matters, while respecting the mandate, the 
confidentiality requirements and the necessary autonomy in decision-making procedures of each 
institution, and avoiding the imposition on governments of cross-conditional ity or additional conditions. 
Ministers further invite the Director-General of the WTO to review with the Managing Director of 
the International Monetary Fund and the President ofthe World Bank, the implications ofthe WTO's 
responsibilities for its cooperation with the Bretton Woods institutions, as well as the forms such 
cooperation might uke, with a view to achieving greater coherence in global economic policymaking. 
Page 388 
(21 
Page 389 
DECISION ON NOTIFICATION PROCEDURES 
Ministers decide to recommend adoption by the Ministerial Conference of the decision on 
improvement and review of notification procedures set out below. 
Members, 
Desiring to improve the operation of notification procedures under the Agreement Establishing 
the World Trade Organization (hereinafter referred to as the "WTO Agreement"), and thereby to 
contribute to the transparency of Members' trade policies and to the effectiveness of surveillance 
arrangements esublished to that end; 
Recalling obligations under the WTO Agreement to publish and notify, including obligations 
assumed under the terms of specific protocols of accession, waivers, and other agreements entered 
into by Members; 
Agree as follows: 
I. General obligation to notify 
Members affirm their commitment to obligations under the Multilateral Trade Agreements and, 
where applicable, the Plurilateral Trade Agreements,-regarding publication and notification. 
Members recall their undertakings set out in the Understanding Regarding Notification. 
Consultation, Dispute Settlement and Surveillance adopted on 28 November 1979 (BISD 26S/210). 
With regard to their undertaking therein to notify, to the maximum extent possible, their adoption of 
trade measures affecting the operation of GATT 1994. such notification itself being without prejudice 
to views on the consistency of measures with or their relevance to rights and obligations under the 
Multilateral Trade Agreements and, where applicable, the Plurilateral Trade Agreements. Members 
agree to be guided, as appropriate, by the annexed list of measures. Members therefore agree that 
the introduction or modification of such measures is subject to the notification requirements of the 1979 
Understanding. 
II. Central registry of notifications 
A central registry of notifications shall be established under the responsibility ofthe Secretariat. 
While Members will continue to follow existing notification procedures, the Secretariat shall ensure 
that the central registry records such elements ofthe information provided on the measure by the Member 
concerned as its purpose, its trade coverage, and the requirement under which it has been notified. 
The central registry shall cross-reference its records of notifications by Member and obligation. 
The central registry shall inform each Member annually ofthe regular notification obligations 
to which that Member will be expected to respond in the course of the following year. . . 
The central registry shall draw the attention of individual Members to regular notification 
requirements which remain unfulfilled. 
Information in the central registry regarding individual notifications shall be made available 
on request to any Member entitled to receive the notification concerned. 
Page 390 
EI. Review of notification obligations and procedures 
The Council for Trade in Goods will undertake a review of notification obligations and procedures 
under the Agreements in Annex 1A of the WTO Agreement. The review will be carried out by a 
working group, membership in which will be open to all Members. The group will be esublished 
immediately after the date of entry into force of the WTO Agreement. 
The terms of reference of the working group will be: 
— to undertake a thorough review of all existing notification obligations of Members 
established under the Agreements in Annex 1A of the WTO Agreement, with a view 
to simplifying, standardizing and consolidating these obligations to the greatest extent 
practicable, as well as to improving compliance with these obligations, bearing in mind 
the overall objective of improving the transparency of the trade policies of Members 
and the effectiveness of surveillance arrangements esublished to this end, and also 
bearing in mind the possible need of some developing country Members for assisunce 
in meeting their notification obligations; 
— to make recommendations to the Council for Trade in Goods not later than two years 
after the entry into force of the WTO Agreement. 
Page 391 
ANNEX 
INDICATIVE LIST1 OF NOTIFIABLE MEASURES 
Tariffs (including range and scope of bindings, GSP provisions, rates applied to members of free-trade 
areas/customs unions, other preferences) 
Tariff quotas and surcharges 
Quantitative restrictions, including voluntary export restraints and orderly marketing arrangements 
affecting imports 
Other non-tariff measures such as licensing and mixing requirements; variable levies 
Customs valuation 
Rules of origin 
Government procurement 
Technical-barriers 
Safeguard actions 
Anti-dumping actions 
Countervailing actions 
Export taxes 
Export subsidies, tax exemptions and concessionary export financing 
Free-trade zones, including in-bond manufacturing 
Export restrictions, including voluntary export restraints and orderly marketing arrangements 
Other government assistance, including subsidies, tax exemptions 
Role of state-trading enterprises 
Foreign exchange controls related to imports and exports 
Government-mandated countertrade 
Any other measure covered by the Multilateral Trade Agreements in Annex 1A to the WTO Agreement 
'This list does not alter existing notification requirements in the Multilateral Trade Agreements in Annex 1A to the 
WTO Agreement or, where applicable, the Plurilateral Trade Agreements in Annex 4 öfthe WTO Agreement. 
Page 392 
Page 393 
DECLARATION ON THE RELATIONSHIP OF THE 
WORLD TRADE ORGANIZATION WITH THE 
INTERNATIONAL MONETARY FUND 
Ministers, 
Noting the close relationship between the CONTRACTING PARTIES to the GATT 1947 and 
the International Monetary Fund, and the provisions of the GATT 1947 governing that relationship, 
in particular Article XV of the GATT 1947; 
Recognizing the desire of participants to base the relationship ofthe World Trade Organization 
with the International Monetary Fund, with regard to the areas covered by the Multilateral Trade 
Agreements in Annex 1A of the WTO Agreement, on the provisions that have governed the relationship 
ofthe CONTRACTING PARTIES to the GATT 1947 with the International Monetary Fund; 
Hereby reaffirm that, unless otherwise provided for in the Final Act, the relationship of the 
WTO with the International Monetary Fund, with regard to the areas covered by the Multilateral Trade 
Agreements in Annex 1A ofthe WTO Agreement, will be based on the provisions that have governed 
the relationship of the CONTRACTING PARTIES to the GATT 1947 with the International Monetary 
Fund. 
Page 394 
Page 395 
DECISION ON MEASURES CONCERNING 
THE POSSIBLE NEGATIVE EFFECTS OF THE 
REFORM PROGRAMME ON LEAST-DEVELOPED AND 
NET FOOD-IMPORTING DEVELOPING COUNTRIES 
1. Ministers recognize that the progressive implementation of the results of the Uruguay Round 
as a whole will generate increasing opportunities for trade expansion and economic growth to the benefit 
of all participants. 
2. Ministers recognize that during the reform programme leading to greater liberalization of trade 
in agriculture least-developed and net food-importing developing countries may experience negative 
effects in terms of the availability of adequate supplies of basic foodstuffs from external sources on 
reasonable terms and conditions, including short-term difficulties in financing normal levels of commercial 
imports of basic foodstuffs. 
3. Ministers accordingly agree to esublish appropriate mechanisms to ensure that the implemenution 
of the results of the Uruguay Round on trade in agriculture does not adversely affect the availability 
of food aid at a level which is sufficient to continue to provide assistance in meeting the food needs 
of developing countries, especially least-developed and net food-importing developing countries. To 
this end Ministers agree: 
(i) to review the level of food aid established periodically by the Committee on Food Aid 
under the Food Aid Convention 1986 and to initiate negotiations in the appropriate 
forum to establish a level of food aid commitments sufficient to meet the legitimate 
needs of developing countries during the reform programme; 
( ii ) to adopt guidelines to ensure that an increasing proportion of basic foodstuffs is provided 
to least-developed and net food-importing developing countries in fully grant form and/or 
on appropriate concessional terms in line with Article IV of the Food Aid 
Convention 1986; 
(iii) to give full consideration in the context of their aid programmes to requests for the 
provision of technical and financial assistance to least-developed and net food-importing 
developing countries to improve their agricultural productivity and infrastructure. 
4. Ministers further agree to ensure that any agreement relating to agricultural export credits makes 
appropriate provision for differential treatment in favour of least-developed and net food-importing 
developing countries. 
5. Ministers recognize that as a result of the Uruguay Round certain developing countries may 
experience short-term difficulties in financing normal levels of commercial imports and that these 
countries may be eligible to draw on the resources of international financial institutions under existing 
facilities, or such facilities as may be established, in the context of adjustment programmes, in order 
to address such financing difficulties. In this regard Ministers uke note of paragraph 37 ofthe report 
of the Director-General to the CONTRACTING PARTIES to GATT 1947 on his consultations with the 
Managing Director of the International Monetary Fund and the President of the World Bank 
(MTN.GNG/NG14/W/35). 
6. The provisions of this Decision will be subject to regular review by the Ministerial Conference, 
and the follow-up to this Decision shall be monitored, as appropriate, by the Committee on Agriculture. 
Page 396 
Page 397 
DECISION ON NOTIFICATION OF FIRST INTEGRATION UNDER 
ARTICLE 2.6 OF THE AGREEMENT ON TEXTILES AND CLOTHING 
Ministers agree that the participants mainuining restrictions falling under paragraph 1 of Article 2 
ofthe Agreement on Textiles and Clothing shall notify full deuils ofthe actions to be taken pursuant 
to paragraph 6 of Article 2 ofthat Agreement to the GATT Secretariat not later than 1 October 1994. 
The GATT Secreuriat shall promptly circulate these notifications to the other participants for information. 
These notifications will be made available to the Textiles Monitoring Body, when established, for the 
purposes of paragraph 21 of Article 2 of the Agreement on Textiles and Clothing. 
Page 398 
Page 399 
DECISION ON PROPOSED UNDERSTANDING 
ON WTO-ISO STANDARDS INFORMATION SYSTEM 
Ministers decide to recommend that the Secreuriat of the World Trade Organization reach 
an understanding with the International Organization for Standardization ("ISO") to esublish an 
information system under which: 
1. ISONET members shall transmit to the ISO/IEC Information Centre in Geneva the 
notifications referred to in paragraphs C and J of the Code of Good Practice for the 
Preparation, Adoption and Application of Standards in Annex 3 to the Agreement on 
Technical Barriers to Trade, in the manner indicated there; 
"> the following (alpha)numeric classification systems shall be used in the work 
programmes referred to in paragraph J: 
(a) a standards classification system which would allow standardizing bodies to 
give for each standard mentioned in the work programme an (alpha)numeric 
indication of the subject matter; 
(b) a stage code system which would allow standardizing bodies to give for each 
standard mentioned in the work programme an (alpha)numeric indication of 
the stage of development ofthe standard; for this purpose, at least five sUges 
of development should be distinguished: (/) the stage at which the decision 
to develop a standard has been taken, but technical work has not yet begun; 
(2) the stage at which technical work has begun, but the period for the 
submission of comments has not yet started; (3) the stage at which the period 
for the submission of comments has started, but has not yet been completed; 
(4) the stage at which the period for the submission of comments has been 
completed, but the standard has not yet been adopted; and (5) the stage at 
which the standard has been adopted; 
(c ) an identification system covering all international standards which would allow 
standardizing bodies to give for each sundard mentioned in the work 
programme an (alpha)numeric indication of the international standard(s) used 
as a basis; 
the ISO/IEC Information Centre shall promptly convey to the Secretariat copies of 
any notifications referred to in paragraph C of the Code of Good Practice; 
the ISO/IEC Information Centre shall regularly publish the information received in 
the notifications made to it under paragraphs C and J ofthe Code of Good Practice; 
this publication, for which a reasonable fee may be charged, shall be available to 
ISONET members and through the Secreuriat to the Members of the WTO. 
Page 400 
DECISION ON REVIEW OF THE ISO-IEC 
INFORMATION CENTRE PUBLICATION 
Ministers decide that in conformiry with paragraph 1 of Article 13 of the Agreement on Technical 
Barriers to Trade in Annex 1A of the Agreement Esublishing the World Trade Organization, the 
Committee on Technical Barriers to Trade esublished thereunder shall, without prejudice to provisions 
on consulution and dispute settlement, at least once a year review the publication provided by the 
ISO/IEC Information Centre on information received according to the Code of Good Practice for the 
Preparation, Adoption and Application of Standards in Annex 3 of the Agreement, for the purpose 
of affording Members opportunity of discussing any matters relating to the operation of that Code. 
In order to facilitate this discussion, the Secretariat shall provide a list by Member of all 
standardizing bodies that have accepted the Code, as well as a list of those standardizing bodies that 
have accepted or withdrawn from the Code since the previous review. 
The Secreuriat shall also distribute promptly to the Members copies ofthe notifications it receives 
from the ISO/IEC Information Centre. 
Page 401 
DECISION ON ANTI-CIRCUMVENTION 
Ministers, 
Noting that while the problem of circumvention of anti-dumping duty measures formed pan 
ofthe negotiations which preceded the Agreement on Implementation of Article VI of GATT 1994, 
negotiators were unable to agree on specific text. 
Mindful ofthe desirability ofthe applicability of uniform rules in this area as soon as possible. 
Decide to refer this matter to the Committee on Anti-Dumping Practices established under that 
Agreement for resolution. 
Page 402 
DECISION ON REVIEW OF ARTICLE 17.6 OF THE 
AGREEMENT ON IMPLEMENTATION OF ARTICLE VI OF THE 
GENERAL AGREEMENT ON TARIFFS AND TRADE 1994 
Ministers decide as follows: 
The standard of review in paragraph 6 of Article 17 ofthe Agreement on Implementation of 
Article VI of GATT 1994 shall be reviewed after a period of three years with a view to considering 
the question of whether it is capable of general application. 
Page 403 
DECLARATION ON DISPUTE SETTLEMENT PURSUANT TO THE AGREEMENT 
ON IMPLEMENTATION OF ARTICLE VI OF THE GENERAL AGREEMENT ON 
TARIFFS AND TRADE 1994 OR PART V OF THE AGREEMENT 
ON SUBSIDIES AND COUNTERVAILING MEASURES 
Ministers recognize, with respect to dispute settlement pursuant to the Agreement on 
Implemenution of Anicle VI of GATT 1994 or Part V of the Agreement on Subsidies and Countervailing 
Measures, the need for the consistent resolution of disputes arising from anti-dumping and countervailing 
dutv measures. 
Page 404 
Page 405 
DECISION REGARDING CASES WHERE CUSTOMS 
ADMINISTRATIONS HAVE REASONS TO DOUBT THE TRUTH 
OR ACCURACY OF THE DECLARED VALUE 
Ministers invite the Committee on Customs Valuation established under the Agreement on 
Implemenution of Article VII of GATT 1994 to take the following decision: 
The Committee on Customs Valuation, 
Reaffirming that the transaction value is the primary basis of valuation under the Agreement 
on Implementation of Article VII of GATT 1994 (hereinafter referred to as the "Agreement"); 
Recognizing that the customs administration may have to address cases where it has reason 
to doubt the truth or accuracy of the particulars or of documents produced by traders in support of 
a declared value; 
Emphasizing that in so doing the customs administration should not prejudice the legitimate 
commercial interests of traders: 
Taking into account Article 17 ofthe Agreement, paragraph 6 of Annex III to the Agreement, 
and the relevant decisions of the Technical Committee on Customs Valuation: 
Decides as follows: 
1. When a declaration has been presented and where the customs administration has reason to 
doubt the truth or accuracy ofthe particulars or of documents produced in support of this declaration, 
the customs administration may ask the importer to provide further explanation, including documents 
or other evidence, that the declared value represents the total amount actually paid or payable for the 
imported goods, adjusted in accordance with the provisions of Article 8. If. after receiving further 
information, or in the absence of a response, the customs administration still has reasonable doubts 
about the truth or accuracy ofthe declared value, it may. bearing in mind the provisions of Article 11. 
be deemed that the customs value of the imported goods cannot be determined under the provisions 
of Article 1. Before taking a final decision, the customs administration shall communicate to the 
importer, in writing if requested, its grounds for doubting the truth or accuracy ofthe particulars or 
documents produced and the importer shall be given a reasonable opportunity to respond. When a 
final decision is made, the customs administration shall communicate to the importer in writing its 
decision and the grounds therefor. 
2 It is entirely appropriate in applying the Agreement for one Member to assist another Member 
on mutually agreed terms. 
Page 406 
DECISION ON TEXTS RELATING TO MINIMUM VALUES AND IMPORTS 
BY SOLE AGENTS, SOLE DISTRIBUTORS AND SOLE CONCESSIONAIRES 
Ministers decide to refer the following texts to the Committee on Customs Valuation established 
under the Agreement on Implementation of Article VII of GATT 1994, for adoption. 
Where a developing country makes a reservation to reuin officially established minimum values 
within the terms of paragraph 2 of Annex III and shows good cause, the Committee shall give the request 
for the reservation sympathetic consideration. 
Where a reservation is consented to, the terms and conditions referred to in paragraph 2 of 
Annex III shall take full account ofthe development, financial and trade needs ofthe developing country 
concerned 
II 
1. A number of developing countries have a concern that problems may exist in the valuation 
of imports by sole agents, sole distributors and sole'concessionaires. Under paragraph 1 of Article 20, 
developing country Members have a period of delay of up to five years prior to the application of the 
Agreement. In this context, developing country Members availing themselves of this provision could 
use the period to conduct appropriate studies and to take such other actions as are necessary to facilitate 
application. 
2. In consideration of this, the Committee recommends that the Customs Co-operation Council 
assist developing country Members, in accordance with the provisions of Annex II, to formulate and 
conduct studies in areas identified as being of potential concern, including those relating to importations 
by sole agents, sole distributors and sole concessionaires. 
Page 407 
DECISION ON INSTITUTIONAL ARRANGEMENTS 
FOR THE GENERAL AGREEMENT ON TRADE IN SERVICES 
Ministers decide to recommend that the Council for Trade in Services at its first meeting adopt 
the decision on subsidiary bodies set out below. 
The Council for Trade in Services, 
Acting pursuant to Article XXIV with a view to facilitating the operation and furthering the 
objectives of the General Agreement on Trade in Services, 
Decides as follows: 
1. Any subsidiary bodies that the Council may establish shall report to the Council annually or 
more often as necessary. Each such body shall establish its own rules of procedure, and may set up 
its own subsidiary bodies as appropriate. 
2. Any sectoral committee shall cam1 out responsibilities as assigned to it by the Council, and 
shall afford Members the opportunity to consult on any matters relating to trade in services in the sector 
concerned andthe operaiion ofthe sectoral annex to which it may pertain. Such responsibilities shall 
include: 
(a) to keep under continuous review and surveillance the application of the Agreement 
with respect to the sector concerned; 
(b) to formulate proposals or recommendations for consideration by the Council in 
connection with am matter relating to trade in the sector concerned; 
(c) if there is an annex pertaining to the sector, to consider proposals for amendment of 
that sectoral annex, and to make appropriate recommendations to the Council; 
(d ) to provide a forum for technical discussions, to conduct studies on measures of Members 
and to conduct examinations of any other technical matters affecting trade in services 
in the sector concerned: 
(e) to provide technical assistance to developing country Members and developing countries 
negotiating accession to the Agreement Establishing the World Trade Organization 
in respect ofthe application of obligations or other matters affecting trade in services 
in the sector concerned; and 
(0 to cooperate with any other subsidiary bodies established under the General Agreement 
on Trade in Services or any international organizations active in any sector concerned. 
3. There is hereby established a Committee on Trade in Financial Services which will have the 
responsibilities listed in paragraph 2. 
Page 408 
DECISION ON CERTAIN DISPUTE SETTLEMENT PROCEDURES 
FOR THE GENERAL AGREEMENT ON TRADE IN SERVICES 
Ministers decide to recommend that the Council for Trade in Services at its first meeting adopt 
the decision set out below. 
The Council for Trade in Services, 
Taking into account the specific nature of the obligations and specific commitments of the 
Agreement, and of trade in services, with respect to dispute settlement under Articles XXII and XXIIl, 
Decides as follows. 
1. A roster of panelists shall be established to assist in the selection of panelists. 
2. To this end, Members may suggest names of individuals possessing the qualifications referred 
to in paragraph 3 for inclusion on the roster, and shall provide a curriculum vitae of their qualifications 
including, if applicable, indication of sector-specific expertise. 
3. Panels shall be composed of well-qualified governmenul and/or non-governmental individuals 
who have experience in issues related to the General Agreement on Trade in Services and/or trade 
in services, including associated regulatory matters. Panelists shall serve in their individual capacities 
and not as representatives of any government or organisation. 
4. Panels for disputes regarding sectoral matters shall have the necessary expertise relevant to 
the specific services sectors which the dispute concerns. 
5. The Secretariat shall maintain the roster and shall develop procedures for its administration 
in consultation with the Chairman of the Council. 
Page 409 
DECISION ON TRADE IN SERVICES AND THE ENVIRONMENT 
Ministers decide to recommend that the Council for Trade in Services at its first meeting adopt 
the decision set out below. 
The Council for Trade in Services, 
Acknowledging that measures necessary to protect the environment may conflict with the 
provisions of the Agreement; and 
Noting that since measures necessary to protect the environment typically have as their objective 
the protection of human, animal or plant life or health, it is not clear that there is a need to provide 
for more than is contained in paragraph (b) of Article XIV; 
Decides as follows: 
1. In order to determine whether any modification of Article XIV of the Agreement is required 
to take account of such measures, to request the Committee on Trade and Environment to examine 
and report, with recommendations if any, on the relationship between services trade and the environment 
including the issue of sustainable development. The Committee shall also examine the relevance of 
inter-governmental agreements on the environment and their relationship to the Agreement. 
2. The Committee shall report the results of its work to the first biennial meeting ofthe Ministerial 
Conference after the entry into force ofthe Agreement Establishing the World Trade Organization. 
Page 410 
DECISION ON NEGOTIATIONS ON MOVEMENT OF NATURAL PERSONS 
Ministers, 
Noting the commitments resulting from the Uruguay Round negotiations on the movement of 
natural persons for the purpose of supplying services; 
Mindful ofthe objectives ofthe General Agreement on Trade in Services, including the increasing 
participation of developing countries in trade in services and the expansion of their service exports; 
Recognizing the importance of achieving higher levels of commitments on the movement of 
natural persons, in order to provide for a balance of benefits under the General Agreement on Trade 
in Services; 
Decide as follows: 
1. Negotiations on further liberalization of movement of natural persons for the purpose of supplying 
services shall continue beyond the conclusion of the Uruguay Round, with a view to allowing the 
achievement of higher levels of commitments by participants under the General Agreement on Trade 
in Services. 
2. A Negotiating Group on Movement of Natural Persons is esublished to carry out the negotiations. 
The group shall establish its own procedures and shall report periodically to the Council on Trade in 
Services. 
3. The negotiating group shall hold its first negotiating session no later than 16 May 1994. It 
shall conclude these negotiations and produce a final report no later than six months after the entry 
into force of the Agreement Establishing the World Trade Organization. 
4. Commitments resulting from these negotiations shall be inscribed in Members' Schedules of 
specific commitments. 
Page 411 
DECISION ON FINANCIAL SERVICES 
Ministers, 
Noting that commitments scheduled by participants on financial services at the conclusion of 
the Uruguay Round shall enter into force on an MFN basis at the same time as the Agreement 
Establishing the World Trade Organization (hereinafter referred to as the "WTO Agreement"), 
Decide as follows: 
1. At the conclusion of a period ending no later than six months after the' date of entry into force 
of the WTO Agreement, Members shall be free to improve, modify or withdraw all or part of their 
commitments in this sector without offering compensation, notwithstanding the provisions of Article XXI 
of the General Agreement on Trade in Services. At the same time Members shall finalize their positions 
relating to MFN exemptions in this sector, notwithstanding the provisions of the Annex on Article II 
Exemptions. From the date of entry into force of the WTO Agreement and until the end of the period 
referred to above, exemptions listed in the Annex on Article II Exemptions which are conditional upon 
the level of commitments undertaken by other participants or upon exemptions by other participants 
will not be applied. 
2. The Committee on Trade in Financial Services shall monitor the progress of any negotiations 
undertaken under the rer- .s of this Decision and shall report thereon to the Council for Trade in Services 
no later than four months after the date of entry into force of the WTO Agreement. 
Page 412 
DECISION ON NEGOTIATIONS ON MARITIME TRANSPORT SERVICES 
Ministers, 
Noting that commitments scheduled by participants on maritime transport services at the 
conclusion of the Uruguay Round shall enter into force on an MFN basis at the same time as the 
Agreement Esublishing the World Trade Organization (hereinafter referred to as the "WTO Agreement"), 
Decide as follows: 
1. Negotiations shall be entered into on a voluntary basis in the sector of maritime transport services 
within the framework of the General Agreement on Trade in Services. The negotiations shall be 
comprehensive in scope, aiming at commitments in international shipping, auxiliary services and access 
to and use of port facilities, leading to the elimination of restrictions within a fixed time scale. 
2. A Negotiating Group on Maritime Transport Services (hereinafter referred to as the " NGMTS " ) 
is established to carry out this mandate. The NGMTS shall report periodically on the progress of these 
negotiations. 
3. The negotiations in the NGMTS shall be open to all governments and the European Communities 
which announce their intention to participate. To date, the following have announced their intention 
to take part in the negotiations: 
Argentina, Canada, European Communities and their member States, Finland. Hong Kong. 
Iceland. Indonesia, Korea. Malaysia, Mexico, New Zealand. Norway, Philippines. Poland. 
Romania, Singapore, Sweden. Switzerland, Thailand. Turkey, United States. 
Further notifications of intention to participate shall be addressed to the depositary of the WTO 
Agreement. 
4. The NGMTS shall hold its first negotiating session no later than 16 May 1994. It shall conclude 
these negotiations and make a final report no later than June 1996. The final report of the NGMTS 
shall include a date for the implementation of results of these negotiations. 
5. Until the conclusion of the negotiations Article II and paragraphs 1 and 2 of the Annex on 
Article II Exemptions are suspended in their application to this sector, and it is not necessary to list 
MFN exemptions. At the conclusion of the negotiations, Members shall be free to improve, modify 
or withdraw any commitments made in this sector during the Uruguay Round without offering 
compensation, notwithstanding the provisions of Article XXI of the Agreement. At the same time 
Members shall finalize their positions relating to MFN exemptions in this sector, notwithstanding the 
provisions ofthe Annex on Article II Exemptions. Should negotiations not succeed, the Council for 
Trade in Services shall decide whether to continue the negotiations in accordance with this mandate. 
6. Any commitments resulting from the negotiations, including the date of their entry into force. 
shall be inscribed in the Schedules annexed to the General Agreement on Trade in Services and be 
subject to all the provisions of the Agreement. 
7. Commencing immediately and continuing until the implementation date to be determined under 
paragraph 4, it is understood that participants shall not apply any measure affecting trade in maritime 
transport services except in response to measures applied by other countries and with a view to 
maintaining or improving the freedom of provision of maritime transport services, nor in such a manner 
as would improve their negotiating position and leverage. 
(27) 
Page 413 
8. The implementation of paragraph 7 shall be subject to surveillance in the NGMTS. Any 
participant may bring to the attention of the NGMTS any action or omission which it believes to be 
relevant to the fulfilment of paragraph 7. Such notifications shall be deemed to have been submitted 
to the NGMTS upon their receipt by the Secretariat. 
Page 414 
DECISION ON NEGOTIATIONS ON BASIC TELECOMMUNICATIONS 
Ministers decide as follows: 
1. Negotiations shall be entered into on a voluntary basis with a view to the progressive 
liberalization of trade in telecommunications transport networks and services (hereinafter referred to 
as "basic telecommunications") within the framework ofthe General Agreement on Trade in Services. 
2. Without prejudice to their outcome, the negotiations shall be comprehensive in scope, with 
no basic telecommunications excluded a priori. 
•3. A Negotiating Group on Basic Telecommunications (hereinafter referred to as the "NGBT") 
is established to carry out this mandate. The NGBT shall report periodically on the progress of these 
negotiations. 
4. The negotiations in the NGBT shall be open to all governments and the European Communities 
which announce their intention to participate. To date, the following have announced their intention 
to take part in the negotiations: 
Australia. Austria. Canada, Chile, Cyprus, European Communities and their member States, 
Finland. Hong Kong. Hungary. Japan. Korea, Mexico, New Zealand, Norway, Slovak Republic. 
Sweden, Switzerland. Turkey, United States. 
Further notifications of intention to participate shall be addressed to the depositary ofthe Agreement 
Establishing the World Trade Organization. 
5. The NGBT shall hold its first negotiating session no later than 16 May 1994. It shall conclude 
these negotiations and make a final report no later than 30 April 1996. The final report ofthe NGBT 
shall include a date for the implementation of results of these negotiations. 
6. Any commitments resulting from the negotiations, including the date of their entry into force, 
shall be inscribed in the Schedules annexed to the General Agreement on Trade in Services and shall 
be subject to all the provisions of the Agreement. 
7. Commencing immediately and continuing until the implementation date to be determined under 
paragraph 5. it is understood that no participant shall apply any measure affecting trade in basic 
telecommunications in such a manner as would improve its negotiating position and leverage. It is 
understood that this provision shall not prevent the pursuit of commercial and governmental arrangements 
regarding the provision of basic telecommunications services. 
8. The implemenution of paragraph 7 shall be subject to surveillance in the NGBT. Any participant 
may bring to the attention of the NGBT any action or omission which it believes to be relevant to the 
fulfilment of paragraph 7. Such notifications shall be deemed to have been submitted to the NGBT 
upon their receipt by the Secretariat. 
Page 415 
DECISION ON PROFESSIONAL SERVICES 
Ministers decide to recommend that the Council for Trade in Services at its first meeting adopt 
the decision set out below. 
The Council for Trade in Sennces, 
Recognizing the impact of regulatory measures relating to professional qualifications, technical 
standards and licensing on the expansion of trade in professional services; 
Desiring to establish multilateral disciplines with a view to ensuring that, when specific 
commitments are undertaken, such regulatory measures do not constitute unnecessary barriers to the 
supply of professional services; 
Decides as follows: 
1. The work programme foreseen in paragraph 4 of Article VI on Domestic Regulation should 
be put into effect immediately. To this end, a Working Party on Professional Services shall be 
established to examine zpd report, with recommendations, on the disciplines necessary to ensure that 
measures relating to qualification requirements and procedures, technical standards and licensing 
requirements in the field of professional services do not constitute unnecessary barriers to trade. 
2 As a matter of priority, the Working Party shall make recommendations for the elaboration 
of multilateral disciplines in the accountancy sector, so as to give operational effect to specific 
commitments. In making these recommendations, the Working Party shall concentrate on: 
(a) developing multilateral disciplines relating to market access so as to ensure that domestic 
regulatory requirements are: (/') based on objective and transparent criteria, such as 
competence and the ability to supply the service; (ii) not more burdensome than 
necessary to ensure the quality of the service, thereby facilitating the effective 
liberalization of accountancy services; 
(b) the use of international standards and, in doing so, it shall encourage the cooperation 
with the relevant international organizations as defined under paragraph 5(b) of 
Anicle VI. so as to give full effect to paragraph 5 of Article VII; 
(c) facilitating the effective application of paragraph 6 of Article VI ofthe Agreement by 
establishing guidelines for the recognition of qualifications. 
In elaborating these disciplines, the Working Party shall take account of the importance of the 
governmental and non-governmental bodies regulating professional services. 
Page 416 
Page 417 
DECISION ON ACCESSION TO THE 
AGREEMENT ON GO\TRNMENT PROCUREMENT 
1. Ministers invite the Committee on Government Procurement established under the Agreement 
on Government Procurement in Annex 4(b) ofthe Agreement Esublishing the World Trade Organization 
to clarify' that: 
(a) a Member interested in accession according to paragraph 2 of Article XXIV of the 
Agreement on Government Procurement would communicate its interest to the Director-
General of .the WTO, submitting relevant information, including a coverage offer for 
incorporation in Appendix I having regard to the relevant provisions ofthe Agreement, 
in particular Article I and. where appropriate. Article V; 
(b) . the communication would be circulated to Parties to the Agreement; 
(c) the Member interested in accession would hold consultations with the Parties on the 
terms for its accession to the Agreement: 
(d) with a view to facilitating accession, the Committee would establish a working party 
if the Member in question, or any of the Parties to the Agreement, so requests. The 
working party should examine: (/) the coverage offer made by the applicant Member; 
and (//) relevant information pertaining to export opportunities in the markets ofthe 
Parties, taking into account the existing and potential export capabilities ofthe applicant 
Member and export opportunities for the Parties in the market ofthe applicant Member; 
(e) upon a decision by the Committee agreeing to the terms of accession including the 
coverage lists ofthe acceding Member, the acceding Member would deposit with the 
Director-General of the WTO an instrument of accession which states the terms so 
agreed. The acceding Member's coverage lists in English. French and Spanish would 
be appended to the Agreement; 
(0 prior to the date of entry into force of the WTO Agreement, the above procedures 
would apply mutatis mutandis to contracting parties to the GATT 1947 interested in 
accession, and the tasks assigned to the Director-General ofthe WTO would be carried 
out by the Director-General to the CONTRACTING PARTIES to the GATT 1947. 
2. It is noted that Committee decisions are arrived at on the basis of consensus. It is also noted 
that the non-application clause of paragraph 11 of Article XXIV is available to any Party. 
Page 418 
Page 419 
DECISION ON THE APPLICATION AND REVIEW OF THE UNDERSTANDING 
ON RULES AND PROCEDURES GOVERNING THE SETTLEMENT OF DISPUTES 
Ministers, 
Recalling the Decision of 22 February 1994 that existing rules and procedures of GATT 1947 
in the field of dispute settlement shall remain in effect until the date of entry into force ofthe Agreement 
Establishing the World Trade Organization, 
Invite the relevant Councils and Committees to decide that they shall remain in operation for 
the purpose of dealing with any dispute for which the request for consulution was made before that 
date: 
Invite the Ministerial Conference to complete a full review of dispute settlement rules and 
procedures under the World Trade Organization within four years after the entry into force of the 
Agreement Establishing the World Trade Organization, and to take a decision on the occasion of its 
first meeting after the completion ofthe review, whether to continue, modify or terminate such dispute 
settlement rules and procedures. 
Page 420 
Page 421 
UNDERSTANDING ON COMMITMENTS IN FINANCIAL SERVICES 
Participants in the Uruguay Round have been enabled to uke on specific commitments with 
respect to financial services under the General Agreement on Trade in Services (hereinafter referred 
to as the "Agreement") on the basis of an alternative approach to that covered by the provisions of 
Part III of the Agreement. It was agreed that this approach could be applied subject to the following 
undersunding: 
(i) it does not conflict with the provisions of the Agreement; 
(ii) it does not prejudice the right of any Member to schedule its specific commitments 
in accordance with the approach under Part III of the Agreement; 
(iii) resulting specific commitments shall apply on a most-favoured-nation basis: 
(iv) no presumption has been created as to the degree of liberalization to which a Member 
is committing itself under the Agreement. 
Interested Members, on the basis of negotiations, and subject to conditions and qualifications 
where specified, have inscribed in their schedule specific commitments conforming to the approach 
set out below. 
A. Standstill 
Any conditions, limitations and qualifications to the commitments noted below shall be limited 
to existing non-conforming measures. 
B. Market Access 
Monopoly Rights 
1. In addition to Article VIII ofthe Agreement, the following shall apply: 
Each Member shall list in its schedule pertaining to financial services existing monopoly rights 
and shall endeavour to eliminate them or reduce their scope. Notwithstanding subparagraph 1(b) 
of the Annex on Financial Services, this paragraph applies to the activities referred to in 
subparagraph l(b)(iii) ofthe Annex. 
Financial Services purchased by Public Entities 
2. Notwithstanding Article XIII ofthe Agreement, each Member shall ensure that financial service 
suppliers of any other Member established in its territory are accorded most-favoured-nation treatment 
and national treatment as regards the purchase or acquisition of financial services by public entities 
of the Member in its territory. 
Cross-border Trade 
3. Each Member shall permit non-resident suppliers of financial services to supply, as a principal, 
through an intermediary or as an intermediary, and under terms and conditions that accord national 
treatment, the following services: 
Page 422 
(a) insurance of risks relating to: 
(i) maritime shipping and commercial aviation and space launching and freight 
(including satellites), with such insurance to cover any or all of the following: 
the goods being transported, the vehicle transporting the goods and any liability 
arising therefrom; and 
(ii) goods in international transit; 
(b) reinsurance and retrocession and the services auxiliary to insurance as referred to in 
subparagraph 5(a)(iv) of the Annex; 
(c) provision and transfer of financial information and financial data processing as referred 
to in subparagraph 5(a)(xv) ofthe Annex and advisory and other auxiliary services. 
excluding intermediation, relating to banking and other financial services as referred 
to in subparagraph 5(a)(xvi) of the Annex. 
4. Each Member shall permit its residents to purchase in the territory of any other Member the 
financial services indicated in: 
(a) subparagraph 3(a); 
(b) ' subparagraph 3(b); and 
(c) subparagraphs 5(a)(v) to (xvi) of the Annex. 
Commercial Presence 
5. Each Member shall grant financial service suppliers of any other Member the right to establish 
or expand within its territory, including through the acquisition of existing enterprises, a commercial 
presence. 
6 A Member may impose terms, conditions and procedures for authorization ofthe esublishment 
and expansion of a commercial presence in so far as they do not circumvent the Member's obligation 
under paragraph 5 and they are consistent with the other obligations ofthe Agreement. 
New Financial Services 
7 A Member shall permit financial service suppliers of any other Member esublished in its territory 
to offer in its territory any new financial service. 
Transfers of Information and Processing of Information 
8 No Member shall take measures that prevent transfers of information or trie processing of 
financial information, including transfers of data by electronic means, or that, subject to importation 
rules consistent with international agreements, prevent transfers of equipment, where such transfers 
of information, processing of financial information or transfers of equipment are necessary for the 
conduct of the ordinary business of a financial service supplier. Nothing in this paragraph restricts 
the right of a Member to protect personal data, personal privacy and the confidentiality of individual 
records and accounts so long as such right is not used to circumvent the provisions ofthe Agreement. 
Page 423 
Temporary Entry of Personnel 
9. (a) Each Member shall permit temporary entry into its territory of the fol lowing personnel 
of a financial service supplier of any other Member that is esublishing or has established 
a commercial presence in the territory of the Member: 
(i) senior managerial personnel possessing proprietary information essential to 
the establishment, control and operation ofthe services ofthe financial service 
supplier; and 
(ii) specialists in the operation of the financial service supplier. 
(b) Each Member shall permit, subject to the availability of qualified personnel in its 
territory, temporary entry into its territory ofthe following personnel associated with 
a commercial presence of a financial service supplier of any other Member: 
(i) specialists in computer services, telecommunication services and accounts of 
the financial service supplier; and 
(ii) actuarial and legal specialists. 
Non-discrimin^iory Measures 
10. Each Member shall endeavour to remove or to limit any significant adverse effects on financial 
service suppliers of any other Member of: 
(a) non-discriminatory measures that prevent financial service suppliers from offering in 
the Member's territory, in the form determined by the Member, all the financial services 
permitted by the Member; 
(b) non-discriminatory measures that limit the expansion of the activities of financial service 
suppliers into the entire territory of the Member; 
(c) measures of a Member, when such a Member applies the same measures to the supply 
of both banking and securities services, and a financial service supplier of any other 
Member concentrates its activities in the provision of securities services; and 
(d) other measures that, although respecting the provisions of the Agreement, affect 
adversely the ability of financial service suppliers of any other Member to operate, 
compete or enter the Member's market; 
provided that any action taken under this paragraph would not unfairly discriminate against 
financial service suppliers of the Member uking such action. 
11. With respect to the non-discriminatory measures referred to in subparagraphs 10(a) and (b), 
a Member shall endeavour not to limit or restrict the present degree of market opportunities nor the 
benefits already enjoyed by financial service suppliers of all other Members as a class in the territory 
ofthe Member, provided that this commitment does not result in unfair discrimination against financial 
service suppliers of the Member applying such measures. 
Page 424 
C. National Treatment 
1. Under terms and conditions that accord national treatment, each Member shall grant to financial 
service suppliers of any other Member esublished in its territory access to payment and clearing systems 
operated by public entities, and to official funding and refinancing facilities available in the normal 
course of ordinary business. This paragraph is not intended to confer access to the Member's lender 
of last resort facilities. 
2. When membership or participation in, or access to, any self-regulatory body, securities or futures 
exchange or market, clearing agency, or any other organization or association, is required by a Member 
in order for financial service suppliers of any other Member to supply financial services on an equal 
basis with financial service suppliers ofthe Member, or when the Member provides directly or indirectly 
such entities, privileges or advantages in supplying financial services, the Member shall ensure that 
such entities accord national treatment to financial service suppliers of any other Member resident in 
the territory' of the Member. 
D. Definitions 
For the purposes of this approach: 
1. A non-resident supplier of financial services is a financial service supplier of a Member which 
supplies a financial service into the territory of another Member from an establishment located in the 
territory of another Member, regardless of whether such a financial service supplier has or has not 
a commercial presence in the territory of the Member in which the financial service is supplied. 
2. "Commercial presence" means an enterprise within a Member's territory for the supply of 
financial services and includes wholly- or partly-owned subsidiaries, joint ventures, partnerships, sole 
proprietorships, franchising operations, branches, agencies, represenutive offices or other organizations 
3. A new financial service is a service of a financial nature, including services related to existing 
and new products or the manner in which a product is delivered, that is not supplied by any financial 
service supplier in the territory of a particular Member but which is supplied in the territory of another 
Member. 

ISSN 0254-1467 
KOM(94)143endg. 
DOKUMENTE 
DE 11 
Katalognummer : CB-CO-94-153-DE-C 
ISBN 92-77-67673-6 
Ann für amtliche Veröffentlichungen der Europäischen Gemeinschaften 
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