Goods Council approves waiver for EC's trade preference scheme for the Western Balkans

The draft decision sent to the General Council noted the “exceptional situation” in Albania, Bosnia and Herzegovina, Croatia, Serbia and Montenegro and the former Yugoslav Republic of Macedonia. It added the EC's duty-free and preferential treatment for their products was intended “to promote economic expansion and recovery” and not to create trade barriers to other WTO members.

The Council also approved the EC's request for the extension of the deadline for its ongoing negotiations with other members in relation to the EC's enlargement. The new deadline is 1 February 2007, with the notification by members negotiating with the EC of their intention to withdraw substantially equivalent concessions by no later than 2 January 2007.

The Council agreed to forward the Free Trade Agreement between El Salvador and Mexico to the Committee on Regional Trade Agreements for examination. This FTA was signed on 29 June 2000 and entered into force on 15 March 2001.

Canada requested a five-year extension of the waiver for its Caribbean Initiative (CARIBCAN), which is set to expire at the end of the year. Under this programme, Canada grants duty-free treatment to imports from the following: Anguilla, Antigua and Barbuda, Bahamas, Barbados, Belize, Bermuda, the British Virgin Islands, the Cayman Islands, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago, and the Turks and Caicos Islands.

The Council agreed to revert to Canadian request and to the following items at its next meeting:

• United States' request for waivers for the African Growth and Opportunity Act, the Caribbean Basin Economic Recovery Act and the Andean Trade Preference Act. Many beneficiaries of these programmes again urged immediate approval but some other members maintained their opposition to the US request.

• EC's request for an extension of waiver for the tariff rate quota for bananas of ACP (Africa, Caribbean and the Pacific) countries. The Chairman, Amb. Yonov Frederick Agah (Nigeria), concluded there were clearly diverging views on this issue.

• Panama's concerns about Colombia's indicative prices and minimum values for certain products, including footwear and textiles. Panama expressed concern that Colombia had adopted further restrictions. Colombia maintained that customs measures were part of its fight against the narcotics trade, and were consistent with the WTO Customs Valuation Agreement.

• Turkey's proposal for a work programme on the textiles and clothing sector. Many delegations again expressed support for the proposal but some members maintained their opposition. Turkey objected to Pakistan's proposal to delete this item from the Council's agenda.

Brazil reiterated its joint proposal with India for a WTO Secretariat study on the Agreement on Trade-Related Investment Measures (TRIMs). The Council agreed to revert to the proposal at a future meeting.

Under “Other Business”, the United States said that the WTO waiver on the Kimberly Process aimed at halting trade in conflict diamonds was set to expire, and that it would work for the presentation of a draft waiver decision at the next Council meeting (scheduled for 7 November 2006).