RESTRICTED

GENERAL AGREEMENT L/7651

15 November 1995

ON TARIFFS AND TRADE Limited Distribution

(95-3545)

CONTRACTING PARTIES

Fifty-First Session

12 December 1995

 

 

COUNCIL OF REPRESENTATIVES

Report on Work since the Fiftieth Session

 

 

In accordance with the Decision of 4 June 1960 establishing the Council of Representatives, the Council is required to report to the CONTRACTING PARTIES on the matters considered between sessions of the latter.

In carrying out its task, the Council has held two regular meetings and six special meetings since the Fiftieth Session in December 1994 and February 1995. The minutes of these meetings, which remain the record of the Council's work, are contained in documents C/M/277-C/M/278, C/RM/M/50, C/RM/M/54-C/RM/M/57 and Add.1, and C/RM/OV/M/5. Adoption of this report, which summarizes the action taken by the Council, will constitute approval by the CONTRACTING PARTIES of that action.

The following subjects are included in the report:

Page

1. Work Program resulting from the 1982 Ministerial meeting 2

- Dispute settlement procedures 2

- Roster of non-governmental panelists 2

2. Trade Policy Review Mechanism 2

(a) Country reviews 3

(b) Overview of developments in international trade and the trading system 3

3. Committee on Tariff Concessions 3

- Designation of Chairman 3

4. Committee on Balance-of-Payments Restrictions 4

(a) Designation of Chairman 4

(b) Programme of consultations for 1995 4

(c) Consultations 4

5. Recourse to Articles XXII and XXIII 4

(a) European Economic Community 4

(i) Member States' import régimes for bananas 4

(ii) Import régime for bananas 5

(b) United States 5

(i) Restrictions on imports of tuna 5

- Recourse by the European Communities and the Netherlands 5

(ii) Taxes on automobiles 5

6. Monitoring of implementation of panel reports under paragraph I.3 of the April 1989 Decision on improvements to the GATT dispute settlement rules and procedures 6

7. Customs unions and free-trade areas; regional agreements 6

- Interim Agreements between the European Communities and Bulgaria and Romania 6

8. Waivers under Article XXV:5 6

- Reports under waivers 6

- United States Agricultural Adjustment Act 6

9. Switzerland - Review under Paragraph 4 of the Protocol of Accession 7

10. International Trade Centre UNCTAD/GATT 7

- Report of the Joint Advisory Group 7

11. Administrative and financial matters 7

- Committee on Budget, Finance and Administration 7

(i) Designation of Chairman 7

(ii) Reports 7

12. Appointment of presiding officers of standing bodies 8

 

1. Work Program resulting from the 1982 Ministerial meeting

- Dispute settlement procedures

- Roster of non-governmental panelists (C/M/277)

In November 1985, the Council had approved a list of non-governmental panelists (L/5906), and in June 1994, had agreed to extend the roster until the entry into force of the Understanding on Rules and Procedures Governing the Settlement of Disputes contained in Annex 2 of the Agreement Establishing the World Trade Organization.

At the Council meeting on 4 May 1995, the Chairman proposed that for the purposes of the GATT 1947, the Council extend the roster, as set out in L/7493 and Add.1, until 31 December 1995.

The Council so agreed.

 

2. Trade Policy Review Mechanism

Part I of the CONTRACTING PARTIES' Decision of 12 April 1989 (BISD 36S/403), establishing a trade policy review mechanism on a provisional basis, provides that the trade policies of all contracting parties will be subject to periodic review to be carried out by the Council at special meetings. The Decision also provides that country reports under the review mechanism will be based on an agreed format to be decided upon by the Council, and that the Council will establish a basic plan for the conduct of the reviews as well as a programme of reviews for each year in consultation with the contracting parties directly concerned.

Part I.F of the Decision further provides that the Council will undertake an overview of developments in the international trading environment, which will be assisted by an annual report by the Director-General setting out major GATT activities and highlighting significant policy issues affecting the trading system.

(a) Country reviews (C/RM/M/50, 54 and Add.1, 55, 56, 57 and Add.1)

At its special meeting on 15-16 December 1994, the Council conducted a review of the trade policy of Sweden (C/RM/M/54 and Add.1).

At its special meeting on 19-20 December 1994, the Council conducted a review of the trade policy of Israel (C/RM/M/55).

At its special meeting on 13-14 February 1995, the Council conducted a review of the trade policy of Cameroon (C/RM/M/56).

At its special meeting on 15-16 February 1995, the Council conducted a review of the trade policy of Pakistan (C/RM/M/50).

At its special meeting on 4-5 April 1995, the Council conducted a review of the trade policy of Japan (C/RM/M/57 and Add.1).

(b) Overview of developments in international trade and the trading system (C/RM/OV/M/5)

At its special meeting on 15 December 1994, the Council conducted an overview of developments in international trade and the trading system. In doing so, the Council considered an annual report by the Director-General (C/RM/OV/5 and Corr.1).

The representatives of Canada, Australia, Japan, Mexico, the United States, the European Communities, Brazil and Hong Kong, and the Director-General and the Chairman spoke.

The Council took note of the statements and agreed that the overview of developments in international trade and the trading system had been conducted.

3. Committee on Tariff Concessions

- Designation of Chairman (C/M/277)

At their Forty-Fourth Session in November 1988, the CONTRACTING PARTIES had taken note of a suggestion by the Council Chairman concerning the appointment of presiding officers of standing bodies (SR.44/2).

At its meeting on 4 May 1995, the Council approved the appointment of Mr. Saint-Jacques (Canada) as Chairman of the Committee on Tariff Concessions.

 

4. Committee on Balance-of-Payments Restrictions

(a) Designation of Chairman (C/M/277)

At their Forty-Fourth Session in November 1988, the CONTRACTING PARTIES had taken note of a suggestion by the Council Chairman concerning the appointment of presiding officers of standing bodies (SR.44/2).

At its meeting on 4 May 1995, the Council approved the appointment of Mr. Witt (Germany) as Chairman of the Committee on Balance-of-Payments Restrictions.

(b) Programme of consultations for 1995 (C/M/277)

At the Council meeting on 4 May 1995, the Chairman drew attention to the Committee's proposed programme of consultations for 1995 (C/W/824).

The Chairman spoke.

The Council took note of the statement and of the information in C/W/824.

(c) Consultations (C/M/277)

At the Council meeting on 4 May 1995, the Chairman, on behalf of the Chairman of the Committee, introduced the Committee's report on its consultation with Bangladesh (BOP/R/223).

The Council took note of the statement, agreed that Bangladesh be deemed to have fulfilled its obligations under Article XVIII:12(b) of the GATT 1947 for 1995, and adopted the report in BOP/R/223.

 

5. Recourse to Articles XXII and XXIII

(a) European Economic Community

(i) Member States' import régimes for bananas (C/M/277)

In February 1993, the Council had established a panel to examine the Community's member States' import régimes for bananas. The Panel report (DS32/R) had been considered by the Council at its meetings since June 1993, and by the CONTRACTING PARTIES at their Forty-Ninth and Fiftieth Sessions in January and December 1994 respectively.

At its meeting on 4 May 1995, the Council again considered the Panel report.

The representative of Guatemala also on behalf of Ecuador, Honduras, Mexico and Panama, and the Chairman spoke.

The Council took note of the statements and that the positions of delegations that had expressed their views in previous meetings remained unchanged, and agreed to revert to this matter at its next meeting.

(ii) Import régime for bananas (C/M/277)

In June 1993, the Council had established a panel to examine the European Community's common import régime for bananas. The Panel report (DS38/R) had been considered by the Council at its meetings since March 1994, and by the CONTRACTING PARTIES at their Forty-Ninth and Fiftieth Sessions in January and December 1994 respectively.

At its meeting on 4 May 1995, the Council again considered the Panel report.

The representative of Guatemala also on behalf of Ecuador, Honduras, Mexico and Panama, and the Chairman spoke.

The Council took note of the statements and agreed to revert to this matter at its next meeting.

(b) United States

(i) Restrictions on imports of tuna

- Recourse by the European Communities and the Netherlands

(C/M/277)

In July 1992, the Council had established a panel to examine the complaint by the European Communities and the Netherlands as co-complainants. The Council had considered the Panel report (DS29/R) at its meetings July, October and November 1994. At their Fiftieth Session in December 1994, the CONTRACTING PARTIES had referred the report back to the Council for further consideration.

At its meeting on 4 May 1995, the Council again considered the Panel report.

The representatives of the European Communities, Venezuela, Mexico and the United States spoke.

The Council took note of the statements and agreed to revert to this matter at a future meeting.

(ii) Taxes on automobiles (C/M/277)

In May 1993, the Council had established a panel to examine the complaint by the European Communities. At its meeting in November 1994, the Council had considered the Panel report (DS31/R). At their Fiftieth Session in December 1994, the CONTRACTING PARTIES had referred the report back to the Council for further consideration.

At its meeting on 4 May 1995, the Council again considered the Panel report.

The representatives of the United States and the European Communities spoke.

The Council took note of the statements and agreed to revert to this matter at a future meeting.

 

 

6. Monitoring of implementation of panel reports under paragraph I.3 of the April 1989 Decision on improvements to the GATT dispute settlement rules and procedures (C/M/277)

In July 1992, in the course of its discussion on the Director-General's report on status of work in panels and implementation of panel reports, the Council had agreed that its Chairman would hold consultations to see whether and how the question of the Council's monitoring of the implementation of panel reports in accordance with paragraph I.3 of the April 1989 Decision on improvements to the GATT dispute settlements rules and procedures (BISD 36S/61) should be dealt with in Council meetings.

In March 1993, the Chairman announced that his consultations had shown that from a purely procedural point of view, the applicability or scope of the April 1989 Decision did not extend to panel reports which predated it and, consequently, that they should not be listed or considered under this item on the Council's agenda. It had been pointed out, in this connection, that contracting parties retained the right to raise any issues related to those panel reports under separate agenda items. It had therefore been understood that this item would continue to appear on the agenda in its present form.

At its meeting on 4 May 1995, the Council considered this matter. The Chairman noted that since the April 1989 Decision was no longer in effect (L/7416), the monitoring procedures established therein would continue to apply only to those panel reports that had been adopted by the Council during the period in which that Decision had been in force.

The representative of Canada spoke.

The Council took note of the statements.

 

7. Customs unions and free-trade areas; regional agreements

- Interim Agreements between the European Communities and Bulgaria and Romania (C/M/277)

At its meeting on 4 May 1994, the Council considered communications from the European Communities on its Interim Agreements with Bulgaria and Romania (L/7617 and Add.1, and L/7618 and Add.1).

The Council took note of the communications in L/7617 and Add.1 and L/7618 and Add.1.

 

8. Waivers under Article XXV:5

- Reports under waivers

- United States Agricultural Adjustment Act (C/M/277)

Under the Decision of 5 March 1955 (BISD 3S/32), the CONTRACTING PARTIES are required to make an annual review of any action taken by the United States under the Decision on the basis of a report to be furnished by the United States.

At its meeting on 4 May 1995, the Council considered the thirty-sixth and thirty-seventh annual reports submitted by the United States (L/7408 and L/7616).

The Council took note of the thirty-sixth and thirty-seventh annual reports by the United States.

 

9. Switzerland - Review under Paragraph 4 of the Protocol of Accession (C/M/277)

Under paragraph 4 of its Protocol of Accession, Switzerland reserved its position with regard to the application of the provisions of Article XI of the General Agreement to permit the application of certain import restrictions pursuant to existing national legislation. The Protocol calls for an annual report by Switzerland on the measures maintained consistently with this reservation, and requires the CONTRACTING PARTIES to conduct a thorough review of the application of the provisions of paragraph 4 every three years.

At its meeting on 4 May 1995, the Council considered the twenty-fifth, twenty-sixth and twenty-seventh annual reports submitted by Switzerland (L/7251 and L/7563).

The representative of Switzerland spoke.

The Council took note of the statement and of the reports, and agreed to revert to this item at a future meeting if necessary.

 

10. International Trade Centre UNCTAD/GATT

- Report of the Joint Advisory Group (C/M/277)

At its meeting on 4 May 1995, the Council considered the report of the Joint Advisory Group of the International Trade Centre UNCTAD/GATT on its twenty-seventh session (ITC/AG(XXVII)/145).

The Chairman of the Group introduced the report.

The Council took note of the statement and adopted the report.

 

11. Administrative and financial matters

- Committee on Budget, Finance and Administration

(i) Designation of Chairman (C/M/277)

At their Forty-Fourth Session in November 1988, the CONTRACTING PARTIES had taken note of a suggestion by the Council Chairman concerning the appointment of presiding officers of standing bodies (SR.44/2).

At its meeting on 4 May 1995, the Council approved the appointment of Mr. Metzger (France) as Chairman of the Committee on Budget, Finance and Administration.

(ii) Reports (C/M/277)

At the Council meeting on 4 May 1995, the Chairman of the Committee on Budget, Finance and Administration introduced the Committee's report in L/7628-WT/BFA/3.

 

The Council took note of the statement, approved the Committee's specific recommendations in paragraphs 22, 24, 26, 32, 33, 34 and 35 of its report (L/7628-WT/BFA/3), and adopted the report.

 

12. Appointment of presiding officers of standing bodies (C/M/277)

At the Council meeting on 4 May 1995, pursuant to the CONTRACTING PARTIES' action at their Forty-Fourth Session (SR.44/2), the Chairman referred to document C/192 containing the results of his consultations which had been announced at an informal meeting of the Council in March 1995. Mr. Witt (Germany) had been proposed as Chairman of the Committee on Balance-of-Payments Restrictions, Mr. Metzger (France) as Chairman of the Committee on Budget, Finance and Administration, and Mr. Saint-Jacques (Canada) as Chairman of the Committee on Tariff Concessions.

The Council took note of the statement and approved the above-mentioned appointments.