Click here to return to homepage
175pxls.gif (78 bytes)
 

home > resources > publications > wto analytical index > table of contents > marrakesh agreement


Analysis, statistics, publications, downloads, links, etc

WTO ANALYTICAL INDEX: MARRAKESH AGREEMENT

Marrakesh Agreement Establishing the World Trade Organization

150pxls.gif (76 bytes)
The texts reproduced here do not have the legal standing of the original documents which are entrusted and kept at the WTO Secretariat in Geneva.

> Preamble
> Article I
> Article II
> Article III
> Article IV
> Article V
> Article VI
> Article VII
> Article VIII
> Article IX
> Article X
> Article XI
> Article XII
> Article XIII
> Article XIV
> Article XV
> Article XVI
> Explanatory notes
> Declaration on the contribution of the World Trade Organization to achieving greater coherence in global economic policymaking
> Declaration on the relationship of the World Trade Organization with the International Monetary Fund
> Decision on the acceptance of and accession to the agreement establishing the World Trade Organization
> Decision on measures in favour of least-developed countries
> Understanding in respect of waivers of obligations under the General Agreement on Tariffs and Trade 1994
> Accessions under Article XXXIII
> Annex A - WTO membership
> Annex B - WTO observers

> Analytical Index main page


V. Article IV    back to top

A. Text of Article IV

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.

 

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.

 
B. Interpretation and Application of Article IV

103.   For a general overview of the WTO structure see the flowchart below.

2. Paragraph 1 - Ministerial Conference

(a) Functions

(i) General

104.   With respect to the functions of the WTO, which the Ministerial Conference shall carry out pursuant to Article IV:1, see paragraphs 119-125 below.

105.    In addition to the broad overall power in Article IV:1, the Ministerial Conference has the specific powers as listed in other Articles of the WTO Agreement, including: the power to appoint a Director-General(127), to adopt an authoritative interpretation of the Multilateral Trade Agreements(128), to grant a waiver(129), to adopt amendments(130), and to decide on accessions.(131) Under Articles XII:5(b) and XII:6 of GATS, the Ministerial Conference has the power to establish certain procedures in connection with balance-of-payments restrictions.(132) Under Article 64.3 of the TRIPS Agreement, the Ministerial Conference has the power to extend the non-applicability of non-violation complaints to the TRIPS Agreement on a recommendation of the Council for TRIPS.(133) Moreover, under paragraph 2(b) of GATT 1994, powers granted to the CONTRACTING PARTIES acting jointly in the GATT may be allocated to the various WTO organs by decision of the Ministerial Conference. Examples of such provisions include Articles VII:4(c), XII:5, XV:5, XV:6, XXXVI:1(f) and XXXVI:6 of GATT. However, no such decision has been taken to date.

(ii) Working parties

106.    The Ministerial Conference and General Council on behalf of the Ministerial Conference have established the following working parties to carry out its functions:

(a)     Working Group on the Relationship between Trade and Investment;

 

(b)     Working Group on the Interaction between Trade and Competition Policy;

 

(c)     Working Group on Transparency in Government Procurement;

 

(d)     Working Parties on Accession; and

 

(e)     Working Party on Preshipment Inspection.

Working Group on the Relationship between Trade and Investment

107.    In Singapore, the Ministerial Conference established the Working Group on the Relationship between Trade and Investment(134), with the following terms of reference: "to examine the relationship between trade and investment".(135) Between 1997 and 2001 the work of this group was based on a Checklist of Issues Suggested for Study which had been discussed at its meeting of 2 and 5 June 1997.(136)

108.    At the 2001 Doha Ministerial Conference the mandate of the Working Group was revised. Members at the Doha Ministerial Conference decided that the focus of the Working Group should be on improving the technical assistance and capacity building of the developing countries in order to enhance their understanding of the implications of a possible investment framework:

"We recognize the needs of developing and least-developed countries for enhanced support for technical assistance and capacity building in this area, including policy analysis and development so that they may better evaluate the implications of closer multilateral cooperation for their development policies and objectives, and human and institutional development. To this end, we shall work in cooperation with other relevant intergovernmental organizations, including UNCTAD, and through appropriate regional and bilateral channels, to provide strengthened and adequately resourced assistance to respond to these needs."(137)

109.    At the 2001 Doha Ministerial Conference Members also decided that the Working Group should clarify a number of issues:

"In the period until the Fifth Session, further work in the Working Group on the Relationship Between Trade and Investment will focus on the clarification of: scope and definition; transparency; non-discrimination; modalities for pre-establishment commitments based on a GATS-type, positive list approach; development provisions; exceptions and balance-of-payments safeguards; consultation and the settlement of disputes between Members. Any framework should reflect in a balanced manner the interests of home and host countries, and take due account of the development policies and objectives of host governments as well as their right to regulate in the public interest. The special development, trade and financial needs of developing and least-developed countries should be taken into account as an integral part of any framework, which should enable Members to undertake obligations and commitments commensurate with their individual needs and circumstances. Due regard should be paid to other relevant WTO provisions. Account should be taken, as appropriate, of existing bilateral and regional arrangements on investment."(138)

110.    The Working Group reports to the General Council on an annual basis.(139)

Working Group on the Interaction between Trade and Competition Policy

111.    In Singapore, the Ministerial Conference established the Working Group on the Interaction between Trade and Competition Policy(140), with the following terms of reference: "to study issues raised by Members relating to the interaction between trade and competition policy, including anti-competitive practices, in order to identify any areas that may merit further consideration in the WTO framework".(141)

112.    With respect to the Working Group on the Interaction between Trade and Competition Policy, at its meeting of 9-11 and 18 December 1998, the General Council decided as follows:

"[T]he Working Group on the Interaction between Trade and Competition Policy shall continue the educative work that it has been undertaking pursuant to paragraph 20 of the Singapore Ministerial Declaration. In the light of the limited number of meetings that the Group will be able to hold in 1999, the Working Group, while continuing at each meeting to base its work on the study of issues raised by Members relating to the interaction between trade and competition policy, including anti-competitive practices, would benefit from a focused discussion on: (i) the relevance of fundamental WTO principles of national treatment, transparency, and most-favoured-nation treatment to competition policy and vice versa; (ii) approaches to promoting cooperation and communication among Members, including in the field of technical cooperation; and (iii) the contribution of competition policy to achieving the objectives of the WTO, including the promotion of international trade. The Working Group will continue to ensure that the development dimension and the relationship with investment are fully taken into account. It is understood that this decision is without prejudice to any future decision that might be taken by the General Council, including in the context of its existing work programme."(142)

113.    At the Doha Ministerial Conference, Members revised the mandate of this Working Group. and decided that its work will focus on enhancing the technical assistance and capacity building for developing countries in order to improve their understanding of the implications of a possible competition policy framework:

"We recognize the needs of developing and least-developed countries for enhanced support for technical assistance and capacity building in this area, including policy analysis and development so that they may better evaluate the implications of closer multilateral cooperation for their development policies and objectives, and human and institutional development. To this end, we shall work in cooperation with other relevant intergovernmental organizations, including UNCTAD, and through appropriate regional and bilateral channels, to provide strengthened and adequately resourced assistance to respond to these needs."(143)

114.    At the Doha Ministerial Conference Members also decided that the Working Group should clarify a number of issues:

"In the period until the Fifth Session, further work in the Working Group on the Interaction between Trade and Competition Policy will focus on the clarification of: core principles, including transparency, non-discrimination and procedural fairness, and provisions on hardcore cartels; modalities for voluntary cooperation; and support for progressive reinforcement of competition institutions in developing countries through capacity building. Full account shall be taken of the needs of developing and least-developed country participants and appropriate flexibility provided to address them."(144)

115.    The Working Group reports to the General Council on an annual basis.(145)

Working Group on Transparency in Government Procurement

116.    In Singapore, the Ministerial Conference established the Working Group on Transparency in Government Procurement.(146) With respect to the establishment and activities of the Working Group on Transparency in Government Procurement, see the Chapter on Agreement on Government Procurement, paragraphs 4-5.

Working parties on accession

117.   With respect to working parties on accession, see paragraphs 311-315 below.

Working Party on Preshipment Inspection

118.   With respect to the Working Party on Preshipment Inspection, see the Chapter on the PSI Agreement, paragraph 8.

(b) "which shall meet at least once every two years"

119.   Since the establishment of the WTO in 1995 and until 31 December 2002, the following Ministerial Conferences have been convened:

(i) 1996 Singapore Ministerial Conference

120.    The First WTO Ministerial Conference was held in Singapore between 9 and 13 December 1996. The main Ministerial Declaration(147) was adopted on 13 December 1996. The Conference also adopted the Ministerial Declaration on Trade in Information Technology Products.(148) The Singapore Ministerial Conference also set up working groups to study the relationship between trade and investment, trade and competition policy, transparency in government procurement, and trade facilitation. The subjects of those working groups became know as the "Singapore issues".

(ii) 1998 Geneva Ministerial Conference

121.    The Second Ministerial Conference was held in Geneva, Switzerland, between 18 and 20 May 1998. The main Ministerial Declaration(149) was adopted on 20 May 1998. Ministers also adopted a Declaration on Global Electronic Commerce.(150)

(iii) 1999 Seattle Ministerial Conference

122.    The Third Ministerial Conference was held in Seattle, United States, between 30 November and 3 December 1999. Despite intense negotiations with a view to launching a new Millennium Round, consensus was not achieved and thus Members could not agree upon a Ministerial Declaration.

(iv) 2001 Doha Ministerial Conference

123.    The Fourth Ministerial Conference was held in Doha, Qatar, from 9 to 14 November 2001, where Members succeeded in launching a new round of negotiations and agreeing upon important decisions. In addition to the main Ministerial Declaration, known as the Doha Declaration(151) and the Declaration on the TRIPS Agreement and Public Health(152) other decisions were adopted in Doha, see paragraph 124 below and paragraph 17 above.

(c) "decisions on all matters under any of the Multilateral Trade Agreements"

124.    Following establishment of the WTO in 1995 and until 31 December 2002, the Ministerial Conference has adopted the following decisions:

(a)     Ministerial Declaration adopted in Singapore(153);

 

(b)     Ministerial Declaration on Trade in Information Technology Products adopted in Singapore(154);

 

(c)     Ministerial Declaration adopted in Geneva(155);

 

(d)     Ministerial Declaration on electronic commerce adopted in Geneva(156);

 

(e)     Ministerial Declarations adopted in Doha(157);

 

(f)     Ministerial Declaration on the TRIPS Agreement and Public Health adopted in Doha(158);

 

(g)     Decision on Implementation-Related Issues and Concerns, adopted in Doha(159);

 

(h)     Decision on Procedures for Extensions under Article 27.4 of the SCM Agreement for Certain Developing Country Members, adopted in Doha(160);

 

(i)      Decision on The ACP-EC Partnership Agreement, adopted in Doha(161);

 

(j)      Decision on Transitional Regime for the EC Autonomous Tariff Rate Quotas on Imports of Bananas, adopted in Doha.(162)

(d) "in accordance with the specific requirements for decision-making in this Agreement and in the relevant Multilateral Trade Agreements"

125.    Such specific requirements can be found in Article IX of the WTO Agreement and throughout the relevant Multilateral Trade Agreements. However, thus far the Ministerial Conference has not taken any decision under any of the Multilateral Trade Agreements.

(e) Rules of procedure

126.    At its meeting of 31 January 1995, the General Council adopted the rules of procedure for the Ministerial Conference.(163)

3. Paragraph 2 - General Council

(a) Functions

(i) General

127.    The General Council is charged with carrying out the specific functions assigned to it by the WTO Agreement, including: the power to form cooperation agreements with intergovernmental organizations and non-governmental organizations(164), to adopt staff and financial regulations(165), and to adopt the budget.(166)

(ii) Circulation and derestriction of documents

128.    At its meeting of 18 July 1996, the General Council adopted the decision on the procedures for the circulation and derestriction of WTO documents.(167)

129.    This decision of the General Council sets forth that "[a] copy of this decision shall be transmitted to the bodies established under the Plurilateral Trade Agreements for their consideration and appropriate action."(168) Accordingly, at its meeting of 17 September 1996, the International Dairy Council adopted the decision on "Derestriction of International Dairy Agreement (IDA) Documents"(169), at its meeting of 24 February 1997, the Committee on Government Procurement adopted the decision on "Circulation and Derestriction of Documents of Committee on Government Procurement(170), and, at its meeting of 19 June 1997, the International Meat Council adopted the decision on "Derestriction of Documents of the International Bovine Meat Agreement".(171)

(b) Adoption of rules of procedure

(i) General Council

130.    At its meeting of 31 January 1995, the General Council adopted its rules of procedure.(172)

131.    At its meeting of 31 January 1995, the General Council approved the guidelines for appointment of officers to WTO bodies, which were proposed by the Chairman of the GATT 1947 CONTRACTING PARTIES and approved by the Preparatory Committee for the World Trade Organization.(173)

(ii) Committees provided for in paragraph 7

132.    Pursuant to Article IV:2, the General Council adopted the rules of procedure for the following Committees at its meetings on the dates set forth below:

(a)     Committee on Trade and Development - 15 November 1995(174);

 

(b)     Committee on Balance-of-Payments Restrictions - 13 and 15 December 1995(175); and

 

(c)     Committee on Regional Trade Agreements(176) - 2 October 1996.(177)

133.    With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

134.    At its meeting of 17 February 1995, the BFA Committee agreed to adopt the rules of procedure of the General Council, with one exception concerning votes.(178)

135.    No rules of procedure for the Committee on Trade and Environment have been adopted by the General Council to date.

4. Paragraph 3 - Dispute Settlement Body

(a) Functions

136.    The General Council, acting as the DSB, discharges the express responsibilities enumerated in Article 2.1 of the DSU(179), including: the authority to establish panels, to adopt Panel and Appellate Body reports, to maintain surveillance of implementation of rulings and recommendations and authorize suspension of concessions and other obligations under the covered agreements.(180) For the activities of the DSB generally, see Chapter on DSU, in particular, Article 2.

137.    With respect to the establishment of the Rules of Conduct for panel members and the members of the Secretariat, see Chapter on DSU, paragraphs 15-17.

138.    With respect to the modification of the time-period for compliance, see the Chapter on DSU, paragraphs 436-439.

139.    With respect to the extension of a time-period for adoption of a panel report on a reverse-consensus basis, see Chapter on DSU, Article 16.4.

(b) Rules of procedure

140.    Pursuant to Article IV:3, at its meeting of 10 February 1995, the DSB adopted its own rules of procedure(181), where the DSB follows, mutatis mutandis, the rules of procedures for the General Council(182) with certain exceptions. At its meeting of 25 April 1995, the DSB adopted Chapter V of the rules of procedure concerning officers.(183)

141.    With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

(c) Special Session of the Dispute Settlement Body

142.    The Trade Negotiations Committee created a Special Session of the Dispute Settlement Body to negotiate improvements and clarifications of the Dispute Settlement Understanding. This negotiation will not be part of the single undertaking. For more information see paragraphs 23 and 82 above.

5. Paragraph 4 - Trade Policy Review Body

(a) Functions

(i) Country reviews

143.    Country reviews are conducted on a rotational basis, with the frequency of review being determined by reference to each Member's share of world trade in a recent representative period. See paragraph C(ii) of the TPRM and paragraph 10 of the Chapter on TPRM.

(b) Rules of procedure for the Trade Policy Review Body

144.    At its meeting of 6 June 1995, the Trade Policy Review Body adopted the rules of procedure for the Trade Policy Review Body,(184) where the Body follows, mutatis mutandis, the rules of procedure for the General Council(185) with certain exceptions.

145.    With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

(184) where the Body follows, mutatis mutandis, the rules of procedures for the General Council(185) with certain exceptions.

145.    With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

(c) "shall convene as appropriate to discharge the responsibilities of the Trade Policy Review Body"

146.    From its formation through 31 December 2002, the TPRB conducted 165 reviews.(186) The reviews have covered 89 Members, counting the European Union as one Member.

6. Paragraph 5 - Councils

(a) Council for Trade in Goods

(i) Functions

147.    The Council for Trade in Goods discharges the task of "oversee[ing] the functioning of the Multilateral Trade Agreements; the Agreements specifically set forth the following:

(a)      Understanding on the Interpretation of Article XVII of the General Agreement on Tariffs and Trade 1994:

 

(i)      To receive notifications of state trading enterprises - Article 1;

 

(ii)     To receive counter-notifications of state trading enterprises - Article 4;

 

(iii)    To recommendations with regard to the adequacy of notifications and the need for further information - Article 5;

 

(iv)    To receive annual reports of the Working Party on State Trading - Article 5;

 

(b)      Agreement on Textiles and Clothing

 

(i) To conduct the review of that agreement before the end of each stage of the integration process - Articles 8.11 and 8.12.

 

(c)      Agreement on Trade-related Investment Measures

 

(i)      To extend the transition period for the elimination of TRIMs notified by developing country Members - Article 5.3;

 

(d)      Customs Valuation Agreement

 

(i)      Points 1 and 2 of Annex III of the Custom Valuation Agreement refers to the "Members". This could be the CTG or the Customs Valuation Committee.

 

(e)      Agreement on Safeguards

 

(i)      To disapprove the suspension of substantially equivalent concessions - Article 8.2;

 

(ii)     Moreover, under paragraph 2(b) of GATT 1994 powers granted to the CONTRACTING PARTIES acting jointly in the GATT may be allocated to the various WTO organs by decision of the Ministerial Conference. Such decision has not been taken to date. Under such a decision, the Council for Trade in Goods may well be charged with most of the powers now allocated to CONTRACTING PARTIES acting jointly in the GATT, in conformity with allocating the overseeing function also with respect to GATT 1994 to the Council for Trade in Goods."(187)

148.    With respect to the activities of the Council for Trade in Goods in the areas enumerated in paragraph 147 above, see Chapters dealing with the relevant Agreements.

(ii) Rules of procedure

149.    At its meeting of 31 July 1995, the General Council approved the rules of procedure and the relevant addendum for meetings of the Council for Trade in Goods, pursuant to the Article IV:5.(188)

150.    With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

(b) Council for Trade in Services(189)

(i) Functions

151.    The Council for Trade in Services discharges the task of "oversee[ing] the functioning of the General Agreement on Trade in Services". The Agreement specifically sets forth the following:

(a)     In Article XXIV of GATS the general powers "to facilitate the operation of this Agreement and further its objectives", including a power to create subsidiary bodies (a specific variant of this last-mentioned power can be found in Article VI:4 of GATS); and

 

(b)     In Article V:7 of GATS a power to make recommendations to parties to economic integration agreements.(190)

152.    With respect to the activities of the Council for Trade in Services in the areas set out in paragraph 151 above, see Chapter on GATS.

(ii) Rules of procedure

153.    At its meeting of 15 November 1995, the General Council approved the rules of procedure for the Council on Trade in Services, pursuant to Article IV:5.(191)

154.    With respect to the guidelines for the appointment of offic⁥rs to WTO bodies approved by the General Council, see paragraph 131 above.

(c) Council for Trade-Related Aspects of Intellectual Property Rights(192)

(i) Functions

155.    The Council for Trade-Related Aspects of Intellectual Property Rights discharges the task of "oversee[ing] the functioning of the Agreement on Trade-Related Aspects of Intellectual Property Rights"; the Agreement specifically sets forth the following:

(a)     a broad power to monitor the operation of the Agreement and Members' compliance thereunder, pursuant to Article 68 of the TRIPS Agreement;

 

(b)     a broadly worded power in respect of the international negotiations on geographical indications under Article 24.2 of the Agreement;

 

(c)     rationalization of the burden of notifications to the WIPO and to the WTO pursuant to Article 63.2; and

 

(d)     the power to grant extensions of their implementation period to least-developed countries under Article 66.1.

156.    With respect to the activities of the Council for Trade-Related Aspects of Intellectual Property Rights in the areas described in paragraph 155 above, see Chapter on the TRIPS Agreement. See also the annual reports of the Council for Trade-Related Aspects of Intellectual Property Rights to the General Council.(193)

(ii) Rules of procedure

157.    On 15 November 1995, the General Council approved the rules of procedure for the Council for Trade-Related Aspects of Intellectual Property Rights, pursuant to Article IV:5.(194)

158.    With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

159.    "shall operate under the general guidance of the General Council"

160.    At its meeting of 7 and 8 February 2000, the General Council directed the Council for Trade in Services to conduct the negotiations mandated in Article XIX of the GATS and to conduct these negotiations in special sessions which would address the impact of the GATS on developing countries.(195)

161.    At its meeting of 3 and 8 May 2000, the General Council agreed to "direct the Council for Trade in Goods to give positive consideration to individual requests presented in accordance with Article 5.3 by developing countries for extension of transition periods for implementation of the TRIMs Agreement."(196)

162.    Also, in its decision of 15 December 2000 on "Implementation-Related Issues and Concerns", which specifically referred to Article IV:5 as one of its legal bases, the General Council gave certain directives to, inter alia, the Committee on Agriculture, the Committee on Rules of Origin and the SCM Committee.(197)

7. Paragraph 6 - subsidiary bodies to the various Councils

(a) Subsidiary bodies of the Council for Trade in Goods

(i) General

163.    Pursuant to Article IV:6, the Council for Trade in Goods has established the following subsidiary bodies to date:

(a)     Working Party on State Trading Enterprises (see paragraphs 165-168 below);

 

(b)     Working Group on Notification Obligations and Procedures (see paragraphs 169-171); and

 

(c)     ten working parties on various regional trade agreements (see paragraphs 172-175).

164.    Further, the following bodies have been established to date as subsidiary bodies of the Council for Trade in Goods (all, except the first one, under specific provisions of the agreements concerned):

(a)     Committee on Market Access;

 

(b)     Committee on Agriculture(198);

 

(c)     Committee on Sanitary and Phytosanitary Measures(199);

 

(d)     Committee on Technical Barriers to Trade(200);

 

(e)     Committee on Subsidies and Countervailing Measures(201);

 

(f)     Committee on Anti-Dumping Practices(202);

 

(g)     Committee on Customs Valuation(203);

 

(h)     Committee on Rules of Origin(204);

 

(i)      Committee on Import Licensing(205);

 

(j)      Committee on Trade-Related Investment Measures(206); and

 

(k)     Committee on Safeguards.(207)

(ii) Working Party on State Trading Enterprises

165.    Pursuant to paragraph 5 of the Understanding on the Interpretation of Article XVII of GATT 1994, at its meeting of 27 March 1995, the Council for Trade in Goods established the Working Party on State Trading Enterprises(208), with the terms of reference set forth in paragraph 5 of the Understanding.

166.    No rules of procedure have been adopted for the Working Party on State Trading Enterprises. With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

167.    The Working Party reports to the Council for Trade in Goods on an annual basis.(209)

168.    With respect to the activities of the Working Party on State Trading Enterprises, see further Chapter on GATT 1994, paragraphs 434-437.

(iii) Working Group on Notification Obligations and Procedures

169.    At its meeting of 20 February 1995, and pursuant to Part III of the Ministerial Decision on Notification Procedures in Marrakesh, which had been adopted by the General Council at its meeting of 31 January 1995(210), the Council for Trade in Goods established the Working Group on Notification Obligations and Procedures(211), with the terms of reference set forth in Part III of the aforementioned Ministerial Decision.(212) With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

170.    The Working Group on Notification Obligations and Procedures reports to the Council for Trade in Goods on an annual basis.(213) After 1996, these reports contain only the mandated updates on notification obligations. The Working Group on Notification Obligations and Procedures completed its work in 1996. The Working Group held its last meeting on 3 July 1996(214) and issued a report to the Council for Trade in Goods.

171.    At its meeting of 15 October 1996, the Council for Trade in Goods examined the recommendations contained in the aforementioned report of the Working Group on Notification Obligations and Procedures, and adopted the recommendations in respect of: (i) the Committee on Agriculture and the SCM Committee on notification formats(215); (ii) the General Council on GATT notification obligations relating to import licensing(216); (iii) the Committee on Market Access on notification obligations relating to quantitative restrictions, non-tariff measures and marks of origin(217); (iv) the Council for Trade in Goods on the maintenance of the comprehensive listing of notification obligations and compliance therewith by all WTO Members(218); and (v) the Committee on Trade and Development on "the development of a special programme of assistance to developing country Members"(219); and General Council on "the establishment ... of a body with a mandate to review the notification obligations and procedures throughout the WTO Agreement."(220) In addition, at the same meeting, the Council for Trade in Goods decided to revert to the preparation of the general guidelines for providing the regular review of questionnaires and formats at a future meeting.(221)

(iv) Working parties regarding regional trade agreements

172.    Pursuant to paragraph 7 of the Understanding on the Interpretation of Article XXIV of the GATT 1994, the Council for Trade in Goods established the ten working parties for the following regional trade agreements:(222)

(a)     Interim Agreement between Bulgaria and the European Communities(223);

 

(b)     Interim Agreement between Romania and the European Communities(224);

 

(c)     Enlargement of the European Union: Accession of Austria, Finland and Sweden to the European Communities(225);

 

(d)     Free Trade Agreement between Latvia and the European Communities(226);

 

(e)     Free Trade Agreement between Estonia and the European Communities(227);

 

(f)     Free Trade Agreement between Lithuania and the European Communities(228);

 

(g)     Free Trade Agreement between the Republic of Hungary and the Republic of Slovenia(229);

 

(h)     EFTA-Slovenia Free Trade Agreement(230);

 

(i)      Agreement between the European Community on the one part and the Government of Denmark and the Home Government of the Faroe Islands on the other part(231); and

 

(j)      Agreement between the Government of Denmark and the Home Government of the Faroe Islands, on the one part, and the Government of Iceland, of the other part, on free trade between the Faroe Islands and Iceland.(232)

173.    All of these working parties have standard terms of reference: "To examine, in light of the relevant provisions of the GATT 1994, (name of the agreement) and to submit a report to the Council for Trade in Goods", which were adopted by the General Council at its meeting of 11 July 1995.(233)

174.    Subsequently, at its meeting of 6 February 1996, the General Council established the RTA Committee(234), which has replaced these working parties. With respect to the activities of the RTA Committee, see Chapter on GATT 1994, paragraph 627-630.

175.    With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

(b) Approval of rules of procedure of subsidiary bodies of the Council for Trade in Goods

176.    The Council for Trade in Goods approved the rules of procedure for the following subsidiary bodies on the meeting dates set forth below:

(a)     Committee on Market Access - 1 December 1995(235);

 

(b)     Committee on Agriculture - 22 May 1996(236);

 

(c)     Committee on Sanitary and Phytosanitary Measures - 11 June 1997(237);

 

(d)     Committee on Technical Barriers to Trade - 1 December 1995(238);

 

(e)     Committee on Subsidies and Countervailing Measures - 22 May 1996(239);

 

(f)      Committee on Anti-Dumping Practices - 22 May 1996(240);

 

(g)     Committee on Customs Valuation - 1 December 1995(241);

 

(h)     Committee on Rules of Origin - 1 December 1995(242);

 

(i)      Committee on Import Licensing - 1 December 1995(243);

 

(j)      Committee on Trade-Related Investment Measures - 1 December 1995(244);

 

(k)     Committee on Safeguards - 22 May 1996.(245)

177.    With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

178.    Pursuant to Article 4(a) of the Agreement on Preshipment Inspection, at its meeting of 13 and 15 December 1995, the General Council established the Independent Entity(246) as a subsidiary body of the Council for Trade in Goods.(247) The Rules of Procedure for the Independent Entity are included in Annex III to the decision by the General Council establishing the Independent Entity.(248)

(c) Subsidiary bodies of the Council for Trade in Services

(i) General

179.    Pursuant to Article IV:6 (and Articles XXIV:1 and IV:6 of GATS), the Council for Trade in Services has established the following 11 subsidiary bodies to date:

(a)     Committee on Trade in Financial Services;

 

(b)     Committee on Specific Commitments;

 

(c)     Working Party on Domestic Regulation;

 

(d)     Working Party on GATS Rules;

 

(e)     Working Party on Professional Services;

 

(f)      Negotiating Group on Basic Telecommunications;

 

(g)     Negotiating Group on Maritime Transport Services;

 

(h)     Group on Basic Telecommunications;

 

(i)      Negotiating Group on Movement of Natural Persons;

 

(j)      Working Party on Enlargement of the European Union; and

 

(k)     Working Party on NAFTA.

180.    With respect to the establishment and activities of the foregoing subsidiary bodies of the Council for Trade in Services, see the Chapter on GATS, paragraphs 82-89. Further, with respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

181.    At its meeting of 30 March 1995, the Council for Trade in Services established two working parties to examine regional service arrangements notified under Article V:7(a) of GATS on (i) the Enlargement of the European Union(249) and (ii) the Working Party on NAFTA.(250) With respect to these working parties, see Chapter on GATS, paragraphs 46 and 38 respectively. These working parties were replaced by the RTA Committee established by the General Council at its meeting of 6 February 1996 (see paragraph 225 below).

182.    In addition, the following bodies were established as subsidiary bodies of the Council for Trade in Services:

(a)     Negotiating Group on Movement of Natural Persons

 

(b)     Negotiating Group on Basic Telecommunications;

 

(c)     Negotiating Group on Maritime Transport Services; and

 

(d)     Group on Basic Telecommunications.

183.    With respect to the establishment and activities of these bodies, see Chapter on GATS, paragraphs 75 and 94.

(d) Subsidiary bodies of the Council for Trade-Related Aspects of Intellectual Property Rights

184.    Under Article IV:6, the Council for Trade in Trade-Related Aspects of Intellectual Property Rights has not established any subsidiary bodies to date.

8. Paragraph 7 - committees established by Ministerial Conference or General Council

(a) General

185.    Pursuant to Article IV:7, the Ministerial Conference and General Council have established the following Committees to date:

(a)     Committee on Trade and Development(251);

 

(b)     Committee on Balance-of-Payments Restrictions;

 

(c)     Committee on Budget, Finance and Administration;

 

(d)     Committee on Market Access(252);

 

(e)     Committee on Trade and Environment(253); and

 

(f)      Committee on Regional Trade Agreements(254).

(b) Committee on Trade and Development

(i) Establishment and terms of reference

186.    Pursuant to Article IV:7, at its meeting of 31 January 1995, the General Council established the Committee on Trade and Development(255), with the following terms of reference:

"1.     To serve as a focal point for consideration and coordination of work on development in the World Trade Organization (WTO) and its relationship to development-related activities in other multilateral agencies.(256)

 

2.      To keep under continuous review the participation of developing country Members in the multilateral trading system and to consider measures and initiatives to assist developing country Members, and in particular the least-developed country Members, in the expansion of their trade and investment opportunities, including support for their measures of trade liberalization.(257)

 

3.      To review periodically, in consultation as appropriate with the relevant bodies of the WTO, the application of special provisions in the Multilateral Trade Agreements and related Ministerial Decisions in favour of developing country Members, and in particular least-developed country Members, and report to the General Council for appropriate action.

 

4.      To consider any questions which may arise with regard to either the application or the use of special provisions in the Multilateral Trade Agreements and related Ministerial Decisions in favour of developing country Members and report to the General Council for appropriate action.

 

5.      To provide guidelines for, and to review periodically, the technical cooperation activities of the WTO(258) as they relate to developing country Members.

 

6.      The Committee will establish a programme of work which may be reviewed as necessary each year."(259)

187.    At the Doha Ministerial Conference, Members decided that the Committee on Trade and Development should act as a forum(260) to identify and debate developmental aspects of the new negotiations.(261)

(ii) Rules of procedure and observer status

188.    At its meeting of 15 November 1995, the General Council approved the rules of procedure for the Committee on Trade and Development(262), which the Committee adopted at its meeting of 5 July 1995.(263)

189.    With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

190.    Several international intergovernmental organizations have been given observer status in the Committee on Trade and Development and the Sub-Committee on Least Developed Countries.(264)

(iii) Reporting

191.    The Committee on Trade and Development reports to the General Council on an annual basis.(265)

(iv) Activities

Establishment of Sub-Committee on Least-Developed Countries

192.    At its meeting of 5 July 1995, the Committee on Trade and Development adopted the decision establishing the Sub-Committee on Least-Developed Countries(266), with the following terms of reference:

"(a)   to give particular attention to the special and specific problems of least-developed countries;

 

(b)     to review periodically the operation of the special provisions in the Multilateral Trade Agreements and related Ministerial Decisions in favour of the least-developed country Members;

 

(c)     to consider specific measures to assist and facilitate the expansion of the least-developed countries' trade and investment opportunities, with a view to enabling them to achieve their development objectives;(267) and,

 

(d)     to report to the Committee on Trade and Development for consideration and appropriate action."(268)

193.    At its meeting of 17 October 1995, the Sub-Committee on Least-Developed Countries adopted its rules of procedure.(269)

194.    Several international intergovernmental organizations have been given observer status in the Committee on Trade and Development and the Sub-Committee on Least-Developed Countries.(270)

Work Programme for Least-Developed Countries

195.    Pursuant to paragraph 42 of the Doha Declaration the Sub-Committee on Least-Developed Countries was mandated to report to the General Council on an agreed work programme for least-developed countries.(271) With respect to the mandate of the Doha Declaration and the negotiations on least-developed countries, see paragraph 65.

196.    The work programme for least-developed countries was adopted by the Sub-Committee on Least-Developed Countries on 12 February 2002.(272) It aims at ensuring effective participation by Members, in light of the limited capacity of least developed countries' delegations:

"To allow for the maximum possible participation of Non-Resident LDC Members and Observers, particularly when items of direct concern to them - such as accession - are on the agenda, meetings of the Sub-Committee will, where possible, be scheduled to coincide with Geneva Week (this year planned for April and October). In view of the limited capacity of LDC delegations, the work programme will focus on areas where it can add value, and shall avoid duplication with the work programmes of other WTO Bodies."(273)

197.    Under the work programme, Members of the Sub-Committee on Least-Developed Countries agreed to concentrate on the following systemic issues:(274)

(i)      "market access for Least-Developed Countries"(275); (see paragraph 65 above)

 

(ii)     Trade-Related Technical Assistance and Capacity Building Initiatives for Least-Developed Countries(276); (see paragraph 202 below)

 

(iii)    providing, as appropriate, support to agencies assisting with the diversification of Least-Developed Countries' production and export base(277);

 

(iv)    mainstreaming, as appropriate, into the WTO's work the trade-related elements of the LDC-III Programme of Action, as relevant to the WTO's mandate(278);

 

(v)     participation of Least-Developed Countries in the Multilateral Trading System(279);

 

(vi)    Accession of Least-Developed Countries to the WTO(280); (See paragraph 316 below);

 

(vii)   follow-up to WTO Ministerial Decisions/Declarations.(281)

 

Technical cooperation

198.    At its meeting of 15 October 1996, the Committee on Trade and Development adopted the Guidelines for WTO Technical Cooperation.(282)

199.    On 13 December 1996, in Singapore, the Ministerial Conference adopted the Comprehensive and Integrated WTO Plan of Action for the Least-Developed Countries(283), which was prepared by the Committee on Trade and Development. The Plan of Action "offers a comprehensive approach and includes measures relating to the implementation of the Decision in Favour of Least-Developed Countries(284), as well as in the areas of capacity-building and market access from a WTO perspective."(285)

200.    Also, based upon a recommendation by the Committee on Trade and Development(286), the Singapore Ministerial Conference agreed to "organize a meeting with UNCTAD and the International Trade Centre as soon as possible in 1997, with the participation of aid agencies, multilateral financial institutions and least-developed countries to foster an integrated approach to assisting these countries in enhancing their trading opportunities."(287) On 27-28 October 1997, the High-Level Meeting on Integrated Initiatives for Least-Developed Countries' Trade Development was organized jointly by the WTO, UNCTAD and ITC, with the participation of the IMF, UNDP and World Bank.(288) At this High-Level Meeting, the Members (i) "endorsed the Integrated Framework for Trade-Related Technical Assistance, including for Human and Institutional Capacity Building, to support Least-Developed Countries in Their Trade and Trade-Related Activities",(289)(290) (ii) recommended "all WTO Members to keep under active review all options for improving market access for least-developed countries presented in the Comprehensive and Integrated WTO Plan of Action for the Least-Developed Countries and to monitor the implementation of the commitments made in this regard" (291), and (iii) "took note of the two reports and the recommendations" produced in the two roundtable discussions.(292)

201.    Pursuant to the mandate provided in the High-Level Meeting on Integrated Initiatives for Least-Developed Countries' Trade Development, referenced in paragraph 199 above(293), in 2000, the Sub-Committee on Least-Developed Countries conducted the review of all options for improving market access for least-developed countries presented in the Comprehensive and Integrated WTO Plan of Action for the Least-Developed Countries, and reported it to the Committee on Trade and Development.(294) Also, pursuant to that mandate, the six core international agencies of the Integrated Framework for Trade-Related Technical Assistance to Least-Developed Countries, i.e. IMF, ITC, UNCTAD, UNDP, World Bank and WTO, conducted the review of the Integrated Framework.(295) In order to implement the decision by the heads of the six core agencies for the Integrated Framework in the Joint Statement which revamped the Intergrated Framework the Sub-Committee on Least-Developed Countries adopted the Integrated Framework Pilot Scheme.(296) The Pilot Scheme includes (i) the recommendation on the establishment of a trust fund(297), and (ii) the proposal on the establishment of the IF Steering Committee and the Inter-Agency Working Group.(298)

202.    At the Doha Ministerial, Members decided to continue work in the area of technical cooperation and established a firm understanding on the important role of technical cooperation and capacity building.(299) The Doha Ministerial Declaration endorsed the Integrated Framework for Trade-Related Technical Assistance as a viable model for least-developed countries' trade development and urged development partners to significantly increase their contributions to the IF Trust Fund.(300) Ministers also urged core IF agencies, in coordination with development partners, to explore IF enhancement, with the objective of addressing least-developed countries' supply-side constraints, and extending the IF to all LDCs. In this regard and pursuant to its work programme(301) the Sub-Committee on Least-Developed Countries was mandated to monitor and make recommendations, as appropriate, on:(302)

(i)      the implementation of the Integrated Framework Pilot Scheme and follow-up action in pilot countries;

 

(ii)     the review of the IF and the appraisal of the ongoing Pilot Scheme in selected Least-Developed Countries;

 

(iii)    the extension of the IF Pilot Scheme to other Least-Developed Countries;

 

(iv)    trade-related technical assistance and capacity-building for Least-Developed Countries undertaken by Geneva-based organizations, other organizations and bilateral donors, to promote information flow and coordination, consistency of approach, and prioritising/sequencing in support of Least-Developed Countries' development strategies. This would include support provided for the diversification of Least-Developed Countries' production and export base; and,

 

(v)     technical assistance support to Least-Developed Countries, in areas of agreed negotiations at Doha.(303)

 

Favourable and more preferential treatment for developing countries

203.   The Comprehensive and Integrated WTO Plan of Action for the Least-Developed Countries referenced in paragraph 199 above, also includes "provision for taking positive measures, for example duty-free access, on an autonomous basis, aimed at improving their overall capacity to respond to the opportunities offered by the trading system."(304) As of 31 December 2002, at, and after, the High-Level Meeting referenced in paragraph 200 above, 28 Members, including developed, developing and transition economies, have announced steps they have taken, or would be taking, to enhance market access for imports from LDCs.(305)

204.   As of 31 December 2002, the WTO maintains, beyond the specific provisions contained in the WTO Agreement, two additional legal instruments concerning favourable and more preferential treatment for developing countries: (i) the Enabling Clause and (ii) the Waiver on Preferential Tariff Treatment for Least-Developed Countries. With respect to the activities of the Committee on Trade and Development, and the Sub-Committee on Least-Developed Countries concerning the Enabling Clause, see Chapter on GATT 1994, paragraph 34. Also, with respect to the activities of the Committee on Trade and Development, and the Sub-Committee on Least-Developed Countries concerning the Waiver on Preferential Tariff Treatment for Least-Developed Countries, see Chapter on GATT 1994, paragraphs 45-47.

205.   In paragraph 42 of the Doha Ministerial Declaration WTO Members further committed themselves "to the objective of duty-free, quota-free market access for products originating from LDCs" and "to consider additional measures for progressive improvements in market access for LDCs."(306)

206.   As part of the Work Programme adopted by the Sub-Committee on Least-Developed Countries on 28 February 2002(307) it was agreed that the focus would be on: (i) the identification and examination of market access barriers to products of least-developed countries in desired markets; (ii) annual reviews in the Sub-Committee on Least-Developed Countries of market access improvements, market access measures taken by Members; and (iii) examination of possible additional measures for improvement of market access, including elimination of barriers to exports and further improvement of preferential access schemes such the GSP schemes.(308)

(v) Reference to GATT practice

207.   With respect to the Committee on Trade and Development under the GATT 1947, see GATT Analytical Index, pages 1045-1050.

(c) Committee on Balance-of-Payments Restrictions

(i) Establishment and terms of reference

208.   Pursuant to Article IV:7, at its meeting on 31 January 1995, the General Council established the BOPs Committee(309), with the following terms of reference:

"(a)     to conduct consultations, pursuant to Article XII:4, Article XVIII:12 and the Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994, on all restrictive import measures taken or maintained for balance-of-payments purposes and, pursuant to Article XII:5 of the General Agreement on Trade in Services, on all restrictions adopted or maintained for balance-of-payments purposes on trade in services on which specific commitments have been undertaken; and,

 

(b)     to carry out any additional functions assigned to it by the General Council."(310)

(ii) Rules of procedure

209.   At its meeting of 13 and 15 December 1995, the General Council approved the rules of procedure for the BOPs Committee.(311)

210.   With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

(iii) Reporting

211.   With respect to the activities of the BOPs Committee, see Chapter on GATT 1994, Article XVIII:C.

(d) Committee on Budget, Finance and Administration

(i) Establishment and terms of reference

212.   At its meeting of 31 January 1995 and pursuant to Article IV:7, the General Council established the BFA Committee(312), with the following the terms of reference:

"(i)    To examine any questions arising in connection with the audited accounts, proposals for the budgets of the WTO and [of the International Trade Centre UNCTAD/WTO, and](313) the financing thereof.

 

(ii)     To study any financial and administrative questions which may be referred to it by the Ministerial Conference or the General Council, or submitted to it by the Director-General, and undertake such other studies as may be assigned to it by the Ministerial Conference or the General Council."(314)

(ii) Rules of procedure

213.   At its meeting of 17 February 1995, the Chairman suggested that the BFA Committee follow the rules of procedure for the General Council, except for votes, where the committee agreed to work by consensus.(315

214.   With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

(iii) Reporting

215.   With respect to the activities of the BFA Committee, see paragraphs 263-271 below.

(e) Committee on Market Access(316)

(i) Establishment and terms of reference

216.   At its meeting of 31 January 1995, and in pursuance of Article IV:7, the General Council established the Committee on Market Access(317), with the following terms of reference:

"(a)     in relation to market access issues not covered by any other WTO body:

 

  • [to] supervise the implementation of concessions relating to tariffs and non-tariff measures;
     
  • [to] provide a forum for consultation on matters relating to tariffs and non-tariff measures;

 

(b)     [to] oversee the application of procedures for modification or withdrawal of tariff concessions;

 

(c)     [to] ensure that GATT Schedules are kept up-to-date, and that modifications, including those resulting from changes in tariff nomenclature, are reflected;

 

(d)     [to] conduct the updating and analysis of the documentation on quantitative restrictions and other non-tariff measures, in accordance with the timetable and procedures agreed by the CONTRACTING PARTIES in 1984 and 1985 (BISD 31S/227 and 228, and BISD 32S/92 and 93).

 

(e)     [to] oversee the content and operation of, and access to, the Integrated Data Base;

 

(f)      [to] report periodically - and in any case not less than once a year - to the Council on Trade in Goods."(318)

(ii) Rules of procedure

217.   On 1 December 1995, the Council for Trade in Goods approved the Rules of Procedure for meetings of the Committee on Market Access adopted by the Committee on Market Access.(319)

(iii) Reporting

218.   The Committee on Market Access reports to the Council for Trade in Goods on an annual basis.(320)

219.   The Committee on Market Access reports to the Council for Trade in Goods on a periodic basis.(321)

(iv) Activities

220.   With respect to the activities of the Committee on Market Access, see Chapter on GATT 1994, paragraphs 51-55, 378 and 650. With regard to the Integrated Data Base (IDB) and the Consolidated Tariff Schedules (CTS) data base, the Committee on Market Access decided that providing broader access to the information in the IDB and the CTS data base would contribute to the effective delivery of market access-related technical assistance to developing and least developed countries. In order to achieve this, it has elaborated a dissemination policy(322) which draws upon the IDB dissemination practices(323) focused on the accessibility of IDB and CTS information via the Internet and on the distribution of CD-ROMs. With respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

(f) Committee on Trade and Environment

(i) Establishment and terms of reference

221.   At its meeting of 31 January 1995, and pursuant to the Marrakesh Ministerial Decision on Trade and Environment, the General Council established the Committee on Trade and Environment, with the following terms of reference set forth by the Marrakesh Ministerial Decision:

"(a)   to identify the relationship between trade measures and environmental measures, in order to promote sustainable development;

 

(b)     to make appropriate recommendations on whether any modifications of the provisions of the multilateral trading system are required, compatible with the open, equitable and non-discriminatory nature of the system, as regards, in particular:

 

  • the need for rules to enhance positive interaction between trade and environmental measures, for the promotion of sustainable development, with special consideration to the needs of developing countries, in particular those of the least developed among them; and
     
  • the avoidance of protectionist trade measures, and the adherence to effective multilateral disciplines to ensure responsiveness of the multilateral trading system to environmental objectives set forth in Agenda 21 and the Rio Declaration, in particular Principle 12; and
     
  • surveillance of trade measures used for environmental purposes, of trade-related aspects of environmental measures which have significant trade effects, and of effective implementation of the multilateral disciplines governing those measures".(324)

222.   At its meeting of 1 March 1995, the Council for Trade in Services, pursuant to the Ministerial Decision on Trade in Services and the Environment, requested the Committee on Trade and Environment to examine and report on the relationship between trade in services and the environment. See also Chapter on GATS, paragraph 56.

(ii) Rules of procedure

223.   In practice, the Committee on Trade and Environment follows the rules of procedure adopted by the General Council for its meetings.(325)

(iii) Reporting

224.   The Committee on Trade and Environment reports to the General Council on an annual basis.(326)

(g) Committee on Regional Trade Agreements

(i) Establishment and terms of reference

225.   At its meeting of 6 February 1996, and in pursuance of Article IV:7 of the WTO Agreement, the General Council decided to establish the RTA Committee.(327) The General Council also decided the following terms of reference of the RTA Committee:

"(a)   to carry out the examination of agreements in accordance with the procedures and terms of reference adopted by the Council for Trade in Goods, the Council for Trade in Services or the Committee on Trade and Development, as the case may be, and thereafter present its report to the relevant body for appropriate action;(328)

 

(b)     to consider how the required reporting on the operation of such agreements should be carried out and make appropriate recommendations to the relevant body;

 

(c)     to develop, as appropriate, procedures to facilitate and improve the examination process;

 

(d)     to consider the systemic implications of such agreements and regional initiatives for the multilateral trading system and the relationship between them, and make appropriate recommendations to the General Council; and

 

(e)     to carry out any additional functions assigned to it by the General Council."(329)

(ii) Rules of procedure

226.   At the meeting of 2-3 July 1996, the RTA Committee adopted its Rules of Procedure, which provide, inter alia, that the Rules of Procedure for Meetings of the General Council shall apply, mutatis mutandis, for meetings of the RTA Committee, with some exceptions.(330) Also, with respect to the guidelines for the appointment of officers to WTO bodies approved by the General Council, see paragraph 131 above.

(iii) Reporting

227.   The RTA Committee reports to the General Council on an annual basis.(331)

228.   At its 28th Session, in accordance with recommendations adopted by the Council for Trade in Goods on how to comply with the reporting requirements on the operation of RTAs(332), the RTA Committee presented a timetable for the submission of the biennial reports of 21 RTAs due in 2001. These reports were to be presented to both the Council of Trade in Goods and the RTA Committee.(333) At its 33rd Session, the RTA Committee decided to postpone biennial reporting obligations for the year 2003, to the following year in 2004, due to the fact that the Committee was still considering reports for 2001 and this would add to the already burdensome workload of delegations who were preparing for the upcoming Ministerial Conference in Cancun.(334)

(iv) Activities

229.   With respect to the coordination of tasks between the RTA Committee and working parties established to examine regional trade agreements, the decision adopted by the General Council on 31 January 1995 on the Avoidance of Procedural and Institutional Duplication states:

"2.     The coordination procedures set out in paragraphs 3 and 4 below shall apply in the relations between the bodies referred to in sub-paragraphs (a) to (d) below:

...

(c)     The Working Parties established under the GATT 1947 to examine a regional agreement or arrangement shall coordinate their activities with Working Parties of the WTO that examine the same regional agreement or arrangement.(335)

...

3.      The bodies established under the GATT 1947 or a Tokyo Round Agreement that are referred to in paragraph 2 above shall hold their meetings jointly or consecutively, as appropriate, with the corresponding WTO bodies. In meetings held jointly the rules of procedure to be applied by the WTO body shall be followed. The reports on joint meetings shall be submitted to the competent bodies established under the GATT 1947, the Tokyo Round Agreements and the WTO Agreement.

 

4.      The coordination of activities in accordance with paragraph 3 above shall be conducted in a manner which ensures that the enjoyment of the rights and the performance of the obligations under the GATT 1947, the Tokyo Round Agreements and the WTO Agreement and the exercise of the competence of the CONTRACTING PARTIES to the GATT 1947, the Committees established under the Tokyo Round Agreements and the bodies of the WTO are unaffected."(336)

230.    Under its terms of reference, the RTA Committee is mandated to examine regional trade agreements referred to it by the Council for Trade in Goods, the Council for Trade in Services or the Committee on Trade and Development, depending on the type of agreement; the Councils or the Committee will adopt separate terms of reference for each regional trade agreement to be followed by the RTA Committee in its examination.(337)

231.    At its meeting of 28 April and 1-2 May 1997, the RTA Committee took note of the "Guidelines on Procedures to Improve and Facilitate the Examination Process", which was prepared by the Chairman of the RTA Committee on his responsibility.(338) Further, in order to address systemic issues as they emerge from the examination of regional trade agreements, at its meeting of 30 September and 1 October 1997, the RTA Committee agreed to the following approach: first, the Secretariat is to compile a and distribute factual information on regional trade agreements; second, the RTA Committee will tackle the systemic issues with a three-pronged approach, encompassing legal analyses of relevant WTO provisions, horizontal comparison of regional trade agreements and debate on the context and economic aspects of regional trade agreements.(339)

232.    In addition, at its meeting of 29-31 July 1996, and in order to facilitate and standardize the provision of information for the examination of regional trade agreements, the RTA Committee took note of the Standard Format for Information on Regional Trade Agreements proposed by certain Members.(340) Further, at its meeting of 28 April and 1-2 May 1997, the RTA Committee also took note of the Standard Format for Information on Economic Integration Agreements on Trade in Services.(341)

233.    The factual examination of 96 of these regional trade agreements was delegated to the RTA Committee by the Council for Trade in Goods and likewise, 12 were delegated to the Council for Trade in Services.

234.    As of 31 December 2002, 259 RTAs have been notified to the GATT/WTO.(342) Of these, 216 agreements were notified under Article XXIV of the GATT, of which 133 are still in force today; 19 agreements were notified under the Enabling Clause;(343) and 24 under Article V of the GATS.

235.    On 31 December 2002, the RTA Committee had under examination a total of 129 agreements. The examination of 105 of these agreements was referred to the RTA Committee by the Committee for Trade in Goods, 23 by the Council for Trade in Services and one by the Committee on Trade and Development. For 23 RTAs, the Committee has not yet started the factual examination; twenty-seven RTAs are currently undergoing factual examination; for the remaining 79 RTAs, the factual examination is already complete.

236.    With respect to the activities of the RTA Committee concerning Article XXIV of GATT 1994, see further the Chapter on GATT 1994, paragraph 611. With respect to the activities of the RTA Committee concerning Article V of GATS, see further the Chapter on GATS, paragraphs 35-40. Also, with respect to the activities of the RTA Committee concerning the Enabling Clause, see further the Chapter on GATT 1994, paragraphs 39-44 and 628.

237.    With respect to negotiations on RTAs conducted under the Negotiating Group on Rules see paragraph 80 above.

9. Paragraph 8 - Bodies under Plurilateral Trade Agreements

(a) International Dairy Council

238.    With respect to the establishment, activities and termination of the International Dairy Council, see Chapter on International Dairy Agreement, Article VII and paragraphs 2-5, 7-8 and 12.

239.    Pursuant to Article IV:8, the International Dairy Council reported to the General Council on an annual basis.(344) The Council also reported to the Ministerial Conference in 1996.(345)

(b) International Meat Council

240.    With respect to the establishment, activities and termination of the International Meat Council, see Chapter on International Bovine Meat Agreement, Article IV and paragraphs 2-6.

241.    Pursuant to Article IV:8, the International Meat Council reported to the General Council on an annual basis.(346) The Council also reported in 1996 to the Ministerial Conference.(347)

(c) Committee on Trade in Civil Aircraft

242.    With respect to the establishment and activities of the Committee on Trade in Civil Aircraft, see Chapter on Agreement on Trade in Civil Aircraft, paragraphs 1, 3-5 and 6-9.

243.    Pursuant to Article IV:8, the Committee on Trade in Civil Aircraft reports to the General Council on an annual basis.(348) The Committee also reported in 1996 to the Ministerial Conference.(349)

(d) Committee on Government Procurement

244.    With respect to the establishment and activities of the Committee on Government Procurement, see Chapter on Agreement on Government Procurement, Article XXI and paragraphs 3, 6-9 and 20-23.

245.    Pursuant to Article IV:8, the Committee on Government Procurement reports to the General Council on an annual basis, from its inception in 1996.(350) The Committee also reported to the Ministerial Conference in 1996.(351)

 

Footnotes:

127. With respect to the appointment of the Director-General, see paras. 257-258 of this Chapter. back to text
128. With respect to the authoritative interpretations of the Multilateral Trade Agreements, see paras. 277-278 of this Chapter. back to text
129. With respect to waivers, see paras. 282-285 of this Chapter. back to text
130. With respect to the adoption of amendments, see the provisions of Article X. back to text
131. With respect to accession, see paras. 306-315 of this Chapter. back to text
132. See Chapter on GATS, Article XII. back to text
133. See Chapter on TRIPS, Article 64.3 (and Chapter on DSU, para. 69). back to text
134. WT/MIN(96)/DEC, para. 20. back to text
135. WT/MIN(96)/DEC, para. 20. back to text
136. WT/WGTI/1, para 3. back to text
137. WT/MIN(01)/DEC/1, para. 21. back to text
138. WT/MIN(01)/DEC/1, para. 22. back to text
139. WT/MIN(96)/DEC, para. 21. The reports can be found on the documents WT/WGTI/1-6. back to text
140. WT/MIN(96)/DEC, para. 20. back to text
141.