Substance of Accession Negotiations

5.2 Rules

Trade agreements  back to top

These agreements are of three main types: agreements establishing international organizations, plurilateral agreements and bilateral agreements. They are either based on the MFN principle or preferential in nature. The WTO permits agreements in the second category only if they are free trade areas or customs unions as defined in GATT 1994, if they are preferential agreements between or among developing and LDC countries within the scope of the GATT 1994 Enabling Clause, or if they are agreements liberalizing trade in services that meet the requirements of GATS.⁴⁴⁰

Applicants provide a full list of international agreements to which they are party, but members of Working Parties are mainly interested in obtaining information on non-MFN agreements. They have, however, not explored the conformity of these with the relevant WTO provisions in any depth during the accession process.

This is a subject on which there is a clear baseline Protocol commitment: “The representative of [X] confirmed that [X] would observe the provisions of the WTO, including Article XXIV of the GATT 1994 and Article V of the GATS, in its trade agreements, and would ensure that the provisions of these WTO Agreements for notification, consultation and other requirements concerning free trade areas and customs unions of which [it] was a member were met from the date of accession”.⁴⁴¹ Some Reports add a reference to the GATT 1994 Enabling Clause.⁴⁴²

If the applicant is a member of a preferential agreement that has not yet been notified to the WTO, the Working Party will request it to accept a Protocol obligation to supply notifications and copies of its preferential agreements for review by the Committee on Regional Trade Agreements (and the Committee on Trade and Development for Enabling Clause notifications).⁴⁴³

 

Notes:

440. GATT Article XXIV, which also permits interim agreements necessary for the formation of a customs union or of a free trade area; Decision on Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries (Enabling Clause) of 28 November 1979, GATT BISD 16 S/17; GATS Article V. back to text
441. Viet Nam, paras 523 and 526; Saudi Arabia, para 314; Cambodia, para 223; the former Yugoslav Republic of Macedonia, para 254; Armenia, para 212; Moldova, para 232; Lithuania, para 188; Croatia, para 224; Oman, para 156; Albania, para 166; Georgia, para 179; Jordan, para 247; Estonia, para 140; Latvia, para 130; Kyrgyz Republic, para 172; Bulgaria, para 78. back to text
442. Tonga, para 187; Nepal, para 151; Panama, para 80; Mongolia, para 48; Ecuador, para 70. back to text
443. Viet Nam, para 523; Saudi Arabia, para 314; Cambodia, para 223; the former Yugoslav Republic of Macedonia, para 254; Armenia, para 212; Moldova, para 232; Georgia, para 179. back to text