13 June 1989

Negotiating Group on Functioningof the GATT System

INFORMAL MEETING OF THE TECHNICAL GROUP ON THE

DRAFT FORMAT FOR COUNTRY REPORTS - 15 JUNE 1989

Note by the Secretariat

An informal meeting of the technical group will be held at 3 p.m. on Thursday, 15 June 1989 in Room D. The meeting is open to all participants in the Negotiating Group. The purpose of the meeting is to continue discussion of the draft format for country reports under the Trade Policy Review Mechanism.

A revised draft by the Secretariat is being circulated to all participants. It replaces the previous draft dated 19 May 1989.

Let/1637

DRAFT 13 June 1989

Draft Outline Format for Country Reports (revised)

The following outline format for country reports has been agreed in pursuance of the Decision (L/6490) of the CONTRACTING PARTIES of 12 April 1989 establishing a Trade Policy Review Mechanism. This outline format shall be reviewed, and modified as appropriate, in the light of the experience gained from its application.

The purpose of the outline format is to provide guidelines that will permit all governments to supply, on a systematic basis, the information required to meet the objectives¹ of the Trade Policy Review Mechanism:

"(i) The purpose of the mechanism is to contribute to improved adherence by all contracting parties to GATT rules, disciplines and commitments, and hence to the smoother functioning of the multilateral trading system, by achieving greater transparency in, and understanding of, the trade policies and practices of contracting parties. Accordingly, the review mechanism will enable the regular collective appreciation and evaluation by the CONTRACTING PARTIES of the full range of individual contracting parties, 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 GATT obligations or for dispute settlement procedures, or to impose new policy commitments on contracting parties.

(ii) The assessment to be carried out under the review mechanism will, to the extent relevant, take place against the background of the wider economic and developmental needs, policies and objectives of the contracting party concerned, as well as of its external environment. However, the function of the review mechanism is to examine the impact of a contracting party's trade policies and practices on the multilateral trading system.'

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1_{L/6490, paragraphs A(i) and (ii)}

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The outline format aims to secure, in relation to each country, a level of essential detail which is both meaningful and readily achievable and which makes use of information provided under present notification obligations. The listing is not meant to exclude the provision by the contracting party concerned of such additional information (including relevant published studies if available) as it may consider appropriate.

Initial reports should focus on the previous three years, but should provide sufficient information regarding earlier years to put recent developments into context.

It is recognized that it may be burdensome for least-developed countries to adhere fully to the outline format. A simplified reporting format for reviews of trade policies and practices of the least-developed contracting parties should therefore be considered.

On request, the secretariat shall make available technical assistance in preparing reports to less-developed contracting parties, and in particular to the least-developed contracting parties.

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OUTLINE FORMAT

Governments are encouraged to add a brief "executive summary" to their reports.

A. TRADE POLICIES AND PRACTICES

(i) Objectives of trade policies

Objectives of national trade policies. Where particular sectoral trade policies have evolved, an explanation should be provided of their economic goals and significance.

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(ii) Description of the import and export system

Summary description of the system, and its relationship to the general and sectoral objectives indicated in A(i).

(iii) The trade policy framework

(a) Domestic laws and regulations governing the application of trade policies.

(b) Summary description of the process of trade policy formulation and review, as well as responsibilities and institutional functioning of bodies primarily involved in this process and with the administration of trade policies.

(iv) The implementation of trade policies

(a) Trade policy measures¹ used by the contracting party, their implementation during the period under review, including developments in different sectors, and comparison with their use in earlier periods. [Relevant domestic policy measures that are product-specific and directly affect trade should be included]. Where possible, quantitative estimates of the trade coverage of each policy instrument should be provided.

(b) Developments during the period under review in the agreements referred to in A(iii)(c) above.

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1_{Annex I provides an illustrative listing of types of measures affecting trade on which information could be supplied, as appropriate.}

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(c) Programmes in existence for trade liberalization, including those agreed in the context of structural adjustment and/or debt negotiations.

(d) Prospective changes in trade policies and practices to the extent these changes are already announced or can be made known.

[B. TRADE POLICY ENVIRONMENT: WIDER NEEDS AND EXTERNAL FACTORS AFFECTING TRADE POLICY]

[B. DESCRIPTION OF RELEVANT BACKGROUND AGAINST WHICH THE ASSESSMENT OF TRADE POLICIES WILL BE CARRIED OUT]

[This section might include, inter alia, the following elements:]

(i) Wider economic and developmental needs, policies and objectives

of the contracting party concerned

(ii) The external economic environment

(a) Major trends in imports and exports.

(b) Developments in the terms of trade and commodity prices.

debt, exchange and interest rates, and other such issues.

[(d) International macroeconomic situation affecting the external sector of the contracting party concerned.]

(iii) Problems in external markets

Problems of market access facing exports: existing significant barriers to trade (including VERs and OMAs) as well as developments since the last review.

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APPENDIX: STATISTICAL AND TABULAR INFORMATION

(i) Trade flows by product and country/geographic area

Total exports and imports in value and volume, their commodity composition¹, and the principal countries/geographic areas of origin and destination.

(ii) Macro-economic indicators and other information considered

relevant

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1_{For example, at the 2-digit SITC level.}

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ANNEX

Illustrative listing¹ of measures

Trade measures applying to

imports and exports and

other measures directly

affecting trade

- 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
- QRs, including VERs and OMAs 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 VERs and OMAs

- other government assistance, including subsidies, tax exemptions

- rôle of state-trading enterprises

- foreign exchange controls related to imports and exports

- government-mandated countertrade

- any other measure covered by the General Agreement, its annexes and its protocols.

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1The measures listed are included with a view to information being made available on "the full range of individual contracting parties, trade policies and practices" (L/6490, A(i)) and not to defining the obligations of contracting parties with respect to any measure.

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