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GATT Library | hc956yh0162 | Notification of laws regulations and administrative procedures relating to safeguard measures | World Trade Organization, February 2, 1995 | World Trade Organization and Committee on Safeguards | 02/02/1995 | official documents | G/SG/N/1 and 0172-0197 | https://exhibits.stanford.edu/gatt/catalog/hc956yh0162 | hc956yh0162_90080640.xml | GATT_1 | 354 | 2,514 | RESTRICTED
WORLD TRADE G/SG/N/1
2 February 1995
ORGANIZATION
(95-0185)
Committee on Safeguards
NOTIFICATION OF LAWS REGULATIONS AND ADMINISTRATIVE PROCEDURES
RELATING TO SAFEGUARD MEASURES
1. Under Article 12.6 of the Agreement on Safeguards, Members shall notify promptly the
Committee on Safeguards of their laws, regulations and administrative procedures relating to safeguard
measures as well as any modifications made to them.
2. Members are therefore invited to submit, in a working language of the WTO, their laws,
regulations and administrative procedures relating to safeguard measures. Members which have no
such laws or regulations are invited to notify the Committee accordingly.
3. The laws and regulations received in response to the above request will be circulated in addenda
to this document.
4. A format is suggested below for these notifications under Article 12.6 of the Agreement on
Safeguards in order to assist Members to focus on the type of information to be submitted in the
notifications and to obtain similar responses from different Members.
Suggested format for notifications under Article 12.6 of the Agreement on Safeguards
Prompt notification to the Committee on Safeguards of laws.
regulations and administrative procedures relating to safeguard measures
as well as any modifications made to them
Note: The format is suggested without prejudice to the interpretation of the relevant provisions in
the Agreement on Safeguards by the competent bodies. Members are also reminded of the
provision in Article 12.11 of the Agreement on Safeguards, which reads as follows: "The
provisions on notification in this Agreement shall not require any Member to disclose confidential
information the disclosure of which would impede law enforcement or otherwise be contrary
to the public interest or would prejudice the legitimate commercial interests of particular
enterprises, public or private."
1. In the first notification under Article 12.6, please provide the full texts of the laws and regulations
relating to safeguard measures, and notify the administrative procedures relating to safeguard measures.
2. Specify the authorities competent to initiate and conduct investigations.
3. Provide the text of any modifications made to the laws and regulations relating to safeguard
measures, and notify any modifications to administrative procedures relating to safeguard measures. |
GATT Library | wj779ky0704 | Notification of pre-existing Article XIX measures | World Trade Organization, February 2, 1995 | World Trade Organization and Committee on Safeguards | 02/02/1995 | official documents | G/SG/N/2 and 0172-0197 | https://exhibits.stanford.edu/gatt/catalog/wj779ky0704 | wj779ky0704_90080641.xml | GATT_1 | 328 | 2,176 | RESTRICTED
WORLD TRADE G/SG/N/2
2 February 1995
ORGANIZATION
(95-0186)
Committee on Safeguards
NOTIFICATION OF PRE-EXISTING ARTICLE XIX MEASURES
1. Under Article 12.7 of the Agreement on Safeguards, Members maintaining measures described
in Article 10 which exist on the date of entry into force of the WTO Agreement shall notify such
measures to the Committee on Safeguards not later than 60 days after the date of entry into force of
the WTO Agreement, i.e. not later than 2 March 1995.
2. Members are therefore invited to notify all safeguard measures taken pursuant to Article XIX
of GATT 1947 that were in existence on 1 January 1995. Notifications received in response to this
request will be circulated in addenda to this document.
3. A format is suggested below for these notifications under Article 12.7 of the Agreement on
Safeguards in order to assist Members to focus on the type of information to be submitted in the
notifications and to obtain similar responses from different Members.
Suggested format for notifications under Article 12.7 of the Agreement on Safeguards
Notifications to the Committee on Safeguards of measures
described in Articles 10, existing on 1 January 1995
Note: The format is suggested without prejudice to the interpretation of the relevant provisions in
the Agreement on Safeguards by the competent bodies. Members are also reminded of the
provision in Article 12.11 of the Agreement on Safeguards, which reads as follows: "The
provisions on notification in this Agreement shall not require any Member to disclose confidential
information the disclosure of which would impede law enforcement or otherwise be contrary
to the public interest or would prejudice the legitimate commercial interests of particular
enterprises, public or private."
1. Specify the measure taken under Article XIX of GATT 1947.
2. Specify the product subject to the measure.
3. Specify the date on which the measure was first applied.
4. Provide the reference to the GATT document through which the measure was first notified
to the CONTRACTING PARTIES. |
GATT Library | bq377pw5574 | Notification of the exception under Article 11.2 of the Agreement on Safeguards | World Trade Organization, February 2, 1995 | World Trade Organization and Committee on Safeguards | 02/02/1995 | official documents | G/SG/N/4 and 0172-0197 | https://exhibits.stanford.edu/gatt/catalog/bq377pw5574 | bq377pw5574_90080643.xml | GATT_1 | 435 | 2,814 | RESTRICTED
WORLD TRADE G/SG/N/4
2 February 1995
ORGANIZATION
(95-0188)
Committee on Safeguards
NOTIFICATION OF THE EXCEPTION UNDER ARTICLE 11.2
OF THE AGREEMENT ON SAFEGUARDS
1. Under Article 11.2 of the Agreement on Safeguards, all measures referred to in Article 11. 1(b)
have to be phased out or brought into conformity with the Agreement by the Members within four
years after the date of entry into force of the WTO Agreement, except for one specific measure per
importing Member for which the duration of the period will be more than four years, i.e. it will be
until 31 December 1999. Under Article 11.2 of the Agreement, such an exception must be mutually
agreed between the Members directly concerned and notified to the Committee on Safeguards for its
review and acceptance within 90 days of the entry into force of the WTO Agreement, i.e. not later
than 31 March 1995.
2. Members are therefore invited to notify the exception under Article 11.2 which has been mutually
agreed between the Members directly concerned. Notifications received in response to this request
will be circulated in addenda to this document.
3. A format is suggested below for these notifications under Article 1 1.2 of the Agreement on
Safeguard in order to assist Members to focus on the type of information to be submitted in the
notifications and to obtain similar responses from different Members.
Suggested format for notifications under Article 11.2 of the Agreement on Safeguards
Exception under Article 11.2 which must be mutually agreed between
the Members directly concerned and notified to the Committee on Safeguards
for its review and acceptance within 90 days of the entry into force of the WTO Agreement
Notes: (a) The format is suggested without prejudice to the interpretation ofthe relevant provisions
in the Agreement on Safeguards by the competent bodies.
(b) Members are reminded of the provision in Article 12.11 of the Agreement on
Safeguards, which reads as follows: "The provisions on notification in this Agreement
shall not require any Member to disclose confidential information the disclosure of
which would impede law enforcement or otherwise be contrary to the public interest
or would prejudice the legitimate commercial interests of particular enterprises, public
or private."
(c) This exception is to be notified by the Member that is importing the product which
is subject to the measure described in Article 11.1.
./. G/SG/N/4
Page 2
1. Specify the type of measure (please see Article 11.1(b) and footnote 4 for examples).
2. Specify the Members concerned (please see the ANNEX to the Agreement on Safeguards for
an example)
3. Specify the product subject to the measure. |
GATT Library | cf006vm7547 | Notification pursuant to Article 28.1(A) of subsidies inconsistent with the Agreement | World Trade Organization, January 30, 1995 | World Trade Organization and Committee on Subsidies and Countervailing Measures | 30/01/1995 | official documents | G/SCM/N/2 and 0143-0171 | https://exhibits.stanford.edu/gatt/catalog/cf006vm7547 | cf006vm7547_90080629.xml | GATT_1 | 186 | 1,316 | RESTRICTED
WORLD TRADE G/SCM/N/2
30 January 1995
ORGANIZATION
(95-0166)
Committee on Subsidies and Countervailing Measures
NOTIFICATION PURSUANT TO ARTICLE 28.1(A)
OF SUBSIDIES INCONSISTENT WITH THE AGREEMENT
1. Under Article 28.1(a) of the Agreement on Subsidies and Countervailing Measures, subsidy
programmes which have been established within the territory of a Member before the date on which
such a Member signed the WTO Agreement and which are inconsistent with the provisions of the
Agreement on Subsidies and Countervailing Measures shall be notified to the Committee on Subsidies
and Countervailing Measures not later than 90 days after the date of entry into force of the WTO
Agreement for such Member.
2. For countries and customs territories Members of the WTO Agreement as of its date of entry
into force, such notifications are required by 2 April 1995.
3. The Preparatory Committee for the World Trade Organization approved (PC/R, paragraph 45)
the standard format for notifications pursuant to Article 28.1(a) recommended by the Informal Contact
Group on Anti-Dumping. Subsidies and Safeguards (PC/IPL/11. Annex 4).
4. Notifications received pursuant to the above request will be issued in addenda to this document. |
GATT Library | hc644ts9859 | Notification Pursuant to Article XXVIII(k)(ii) of the General Agreement on Trade in Services | World Trade Organization, February 15, 1995 | World Trade Organization and Council for Trade in Services | 15/02/1995 | official documents | S/C/N/3 and 0283-0327 | https://exhibits.stanford.edu/gatt/catalog/hc644ts9859 | hc644ts9859_90080762.xml | GATT_1 | 277 | 1,907 | WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIóN MUNDIAL DEL COMERCIO
S/C/N/3
15 février 1995
(95-0322)
Council for Trade in Services
Original: English/
anglais/
inglés
NOTIFICATION PURSUANT TO ARTICLE XXVIII(k)(ii) OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES
The following notification has been received from the delegation of Australia.
Australia accords substantially the same treatment to its permanent residents as it accords to
its nationals in respect of measures affecting trade in services. Australia assumes, in accordance with
its laws and regulations, the same responsibilities with respect to its permanent residents as it bears
with respect to its nationals.
Conseil du commerce des services
NOTIFICATION AU TITRE DE L'ARTICLE XXVIII k) ii) DE L'ACCORD
GENERAL SUR LE COMMERCE DES SERVICES
La délégation de l'Australie a fait parvenir au Secrétariat la notification suivante.
L'Australie accorde substantiellement le méme traitement à ses résidents permanents qu'à ses
ressortissants pour ce qui est des mesures affectant le commerce des services. Dans ce contexte, elle
assumera, pour ce qui est de ces résidents permanents, conformément à ses lois et réglementations,
les mêmes responsabilités que celles qu'elle a à l'égard de ses ressortissants.
Consejo del Comercio de Servicios
NOTIFICACIÓN DE CONFORMIDAD CON EL ART-CULO XXVIII k) ii) DEL
ACUERDO GENERAL SOBRE EL COMERCIO DE SERVICIOS
Se ha recibido de la delegación de Australia la siguiente notificación.
Australia otorga en Io sustancial a sus residents permanentes el mismo trato que dispensa a
sus nacionales con respecto a las medidas que afectan al comercio de servicios. En este contexto,
Australia asume con respecto a esos residentes permanentes, de conformidad con sus leyes y reglamentos,
las mismas obligaciones que asume con respecto a sus nacionales.
RESTRICTED |
GATT Library | ty904xn3308 | Notification pursuant to Article XXVIII(k)(ii) of the General Agreement on Trade in services | World Trade Organization, January 23, 1995 | World Trade Organization and Council for Trade in Services | 23/01/1995 | official documents | S/C/N/2 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/ty904xn3308 | ty904xn3308_90080549.xml | GATT_1 | 286 | 1,952 | ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIO
RESTRICTED
S/C/N/2
23 January 1995
WORLD TRADE ORGANIZATION
(95-0079)
Council for Trade in Services
Original: English/anglais/inglés
NOTIFICATION PURSUANT TO ARTICLE XXVIII(k)(ii) OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES
The following notification has been received from the delegation of New Zealand.
New Zealand accords substantially the same treatment to its permanent residents as it accords
to its nationals in respect of measures affecting trade in services. In this context New Zealand assumes,
in accordance with its laws and regulations, the same responsibilities with respect to its permanent
residents as it bears with respect to its nationals.
Conseil du commerce des services
NOTIFICATION AU TITRE DE L'ARTICLE XXVIII k) ii) DE L'ACCORD
GENERAL SUR LE COMMERCE DES SERVICES
La délégation de la Nouvelle-Zélande a fait parvenir au Secrétariat la notification suivante.
La Nouvelle-Zélande accorde substantiellement le même traitement à ses résidents permanents
qu'à ses ressortissants pour ce qui est des mesures affectant le commerce des services. Dans ce contexte,
elle assumera, pour ce qui est de ces résidents permanents, conformément à ses lois et réglementations,
les mêmes responsabilités que celles qu'elle a à l'égard de ses ressortissants.
Consejo del Comercio de Servicios
NOTIFICACION DE CONFORMIDAD CON EL ARTICULO XXVIII k) ii) DEL
ACUERDO GENERAL SOBRE EL COMERCIO DE SERVICIOS
Se ha recibido de la delegacion de Nueva Zelandia la siguiente notificacion.
Nueva Zelandia otorga en Io sustancial a sus residentes permanentes el mismo trato que dispensa
a sus nacionales con respect a las medidas que afectan ai comercio de servicios. En este context,
Nueva Zelandia asume con respect a esos residentes permanentes, de conformidad con sus leyes y
reglamentos, las mismas obligaciones que asume con respect a sus nacionales. |
GATT Library | ss177dx6682 | Notification pursuant to Article XXVIII(k)(ii) of the General Agreement on Trade in services | World Trade Organization, January 23, 1995 | World Trade Organization and Council for Trade in Services | 23/01/1995 | official documents | S/C/N/1 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/ss177dx6682 | ss177dx6682_90080548.xml | GATT_1 | 274 | 1,881 | ORGANISATION MONDIALE DU COMMERCE
ORGANIZACION MUNDIAL DEL COMERCIO
RESTRICTED
S/C/N/1
23 January 1995
WORLD TRADE ORGANIZATION
(95-0078)
Council for Trade in Services
Original: English/French/
anglais/français/
inglés/francés
NOTIFICATION PURSUANT TO ARTICLE XXVIII(k)(ii) OF THE
GENERAL AGREEMENT ON TRADE IN SERVICES
The following notification has been received from the delegation of Canada.
Canada accords substantially the same treatment to its permanent residents as it accords to its
nationals in respect of measures affecting trade in services. Canada assumes, in accordance with its
laws and regulations, the same responsibilities with respect to its permanent residents as it bears with
respect to its nationals.
Conseil du commerce des services
NOTIFICATION AU TITRE DE L'ARTICLE XXVIII k) ii) DE L'ACCORD
GENERAL SUR LE COMMERCE DES SERVICES
La délégation du Canada a fait parvenir au Secrétariat la notification suivante.
Le Canada accorde substantiellement le même traitement à ses résidents permanents qu'à ses
ressortissants pour ce qui est des mesures affectant le commerce des services. Le Canada assumera,
pour ce qui est de ces résidents permanents, conformément à ses lois et réglementations, les mêmes
responsabilités que celles qu'il assumera à l'égard de ses ressortissants.
Consejo del Comercio de Servicios
NOTIFICACION DE CONFORMIDAD CON EL ARTICULO XXVIII k) ii) DEL
ACUERDO GENERAL SOBRE EL COMERCIO DE SERVICIOS
Se ha recibido de la delegacion del Canadà la siguiente notificacion.
El Canadà otorga en Io sustancial a sus residents permanentes el mismo trato que dispensa
a sus nacionales con respecto a medidas que afectan al comercio de servicios. El Canadà asume con
respecto a esos residents permanentes, de conformidad con sus leyes y reglamentos, las mismas
obligaciones que asume con respecto a sus nacionales. |
GATT Library | xx604fj4606 | Notification Requirement with Respect to State Trading Enterprises under Article XVII of GATT 1994 : Note by the Secretariat regarding the Decision to be taken by the Council for Trade in Goods | World Trade Organization, February 17, 1995 | World Trade Organization | 17/02/1995 | official documents | G/STR/1 and 0283-0327 | https://exhibits.stanford.edu/gatt/catalog/xx604fj4606 | xx604fj4606_90080759.xml | GATT_1 | 631 | 4,063 | RESTRICTED
WORLD TRADE G/STR/1
17 February 1995
ORGANIZATION
(95-0319)
NOTIFICATION REQUIREMENT WITH RESPECT TO
STATE TRADING ENTERPRISES
UNDER ARTICLE XVII OF GATT 1994
Note by the Secretariat regarding the Decision
to be taken by the Council for Trade in Goods
Paragraph 1 of the Understanding on the Interpretation of Article XVII of GATT 1994 provides
as follows:
"In order to ensure the transparency of the activities of state trading enterprises,
Members shall notify such enterprises to the Council for Trade in Goods, for review
by the working party to be set up under paragraph 5, in accordance with the following
working definition:
'Governmental and non-governmental enterprises, including marketing
boards, which have been granted exclusive or special rights or
privileges, including statutory or constitutional powers, in the exercise
of which they influence through their purchases or sales the level or
direction of imports or exports.
This notification requirement does not apply to imports of products for immediate or
ultimate consumption in governmental use or in use by an enterprise as specified above
and not otherwise for resale or use in the production of goods for sale."
2. Paragraph 2 of the Understanding states that
"Each Member shall conduct a review of its policy with regard to the submission
of notifications on state trading enterprises to the Council for Trade in Goods. taking
account of the provisions of this Understanding. In carrying out such a review, each
Member should have regard to the need to ensure the maximum transparency possible
in its notifications so as to permit a clear appreciation of the manner of operation of
the enterprises notified and the effect of their operations on international trade."
3. Paragraph 3 of the Understanding provides that
"Notifications shall be made in accordance with the questionnaire on state trading
adopted on 24 May 1960 (BISD 9S/184-185), it being understood that Members shall
notify the enterprises referred to in paragraph 1 whether or not imports or exports have
in fact taken place."
./. G/STR/1
Page 2
4. According to the CONTRACTING PARTIES' Decision of 9 November 1962 (BISD 11S/58),
contracting parties are to submit every three years what are termed "new and full" notifications (i.e.
new and full responses to the questionnaire on state trading), and to submit updating notifications, in
each of the intervening two years, of the changes which have occurred in the contracting party's state
trading activities. The new and full responses are intended to provide a complete picture of the country's
state trading activities at the time the notification is made.
5. It is suggested that in order to start the notification process under the WTO and in order that
the Working Party on State Trading Enterprises be enabled to conduct its work on the basis of complete
information and in a timely manner in 1995, the Council for Trade in Goods decide that the notifications
in 1995 on state trading enterprises under the WTO régime will be "new and full" notifications.
6. With respect to the deadline for submission of notifications, it is suggested that the Council
for Trade in Goods decide that the notifications should be submitted not later than 30 June 1995. It
is noted in this connection that according to the CONTRACTING PARTIES' Decision of
9 November 1962 (BISD 11S/58), contracting parties were invited to submit such notifications by the
end of January of the relevant year. However, this deadline has almost never been observed. Thus,
in order to give delegations sufficient time to prepare their notifications, and to ensure that the necessary
material is before the Working Party as soon as possible, the deadline of 30 June 1995 should be
proposed for the current year's (1995) notification obligation. With respect to future notifications,
it is suggested that the Working Party itself decide what deadlines are appropriate. |
GATT Library | vw792jt8499 | Notification under Article 11.2 of the Agreement on Safeguards on timetables for phasing out measures referred to in Article 11.1(B) or for bringing them into conformity with the Agreement | World Trade Organization, February 7, 1995 | World Trade Organization and Committee on Safeguards | 07/02/1995 | official documents | G/SG/N/5 and 0209-0240 | https://exhibits.stanford.edu/gatt/catalog/vw792jt8499 | vw792jt8499_90080680.xml | GATT_1 | 523 | 3,382 | RESTRICTED
WORLD TRADE G/SG/N/5
7 February 1995
ORGANIZATION
(95-0233)
Committee on Safeguards Original: English
NOTIFICATION UNDER ARTICLE 11.2 OF THE AGREEMENT ON SAFEGUARDS
ON TIMETABLES FOR PHASING OUT MEASURES REFERRED TO IN ARTICLE 11.1(B)
OR FOR BRINGING THEM INTO CONFORMITY WITH THE AGREEMENT
1. Under Article 11 .2 of the Agreement on Safeguards, the phasing out of measures referred to
in Article 11.1(b) shall be carried out according to timetables to be presented to the Committee on
Safeguards by the Members concerned not later than 180 days after the date of entry into force of the
WTO Agreement, i.e. by 30 June 1995. These timetables shall provide for all measures referred to
in Article 11.1 (b) to be phased out or brought into conformity with the Agreement on Safeguards within
a period not exceeding four years after the date of entry into force of the WTO Agreement, subject
to not more than one specific measure per importing Member, the duration of which shall not extend
beyond 31 December 1999.
2. Requests for notifications of measures referred to in Article 11.1(b) and of the exception under
Article 11.2, i.e. "one specific measure per importing Member, the duration of which shall not extend
beyond 31 December 1999", have already been circulated in G/SG/N/3 and 4. For the timetables
to be provided under Article 11 .2, a format is suggested below to assist Members to focus on the type
of information to be submitted in the notifications and to obtain similar responses from different
Members.
Suggested format for notifications under Article 11.2 of the Agreement on Safeguards
Notification of timetables to be presented to the Committee on Safeguards within 180 days
after the entry into force of the WTO Agreement, for phasing out measures referred to in
Article 11. 1(b) or for bringing them into conformity with the Agreement on Safeguards
Note: The format is suggested without prejudice to the interpretation of the relevant provisions in
the Agreement on Safeguards by the competent bodies. Members are also reminded of the
provision in Article 12.11 of the Agreement on Safeguards, which reads as follows: "The
provisions on notification in this Agreement shall not require any Member to disclose confidential
information the disclosure of which would impede law enforcement or otherwise be contrary
to the public interest or would prejudice the legitimate commercial interests of particular
enterprises, public or private."
1. Specify the type of measure (please see Article 11. 1(b) and footnote 4 for examples).
2. Specify the Members concerned (please see the ANNEX to the Agreement on Safeguards for
an example) G/SG/N/5
Page 2
3. Specify the product subject to the measure.
4. Specify timetable for phasing out the measure or for bringing it into conformity with the
Agreement on Safeguards. Such timetables should be presented to the Committee on Safeguards both
for those measures which have to be phased out or brought into conformity with the Agreement on
Safeguards within four years after the date of entry into force of the WTO Agreement and for the "one
specific measure per importing Member, the duration of which shall not extend beyond 31 December
1999" (Article 11.2). |
GATT Library | cz260rc8738 | Notification under Article 12.1(A) of the Agreement on Safeguards on initiation of an investigation and the reasons for it | World Trade Organization, February 7, 1995 | World Trade Organization and Committee on Safeguards | 07/02/1995 | official documents | G/SG/N/6 and 0209-0240 | https://exhibits.stanford.edu/gatt/catalog/cz260rc8738 | cz260rc8738_90080681.xml | GATT_1 | 350 | 2,426 | RESTRICTED
WORLD TRADE G/SG/N/6
7 February 1995
ORGANIZATION
(95-0234)
Committee on Safeguards Original: English
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON SAFEGUARDS
ON INITIATION OF AN INVESTIGATION AND THE REASONS FOR IT
1. Under Article 12. 1(a) of the Agreement on Safeguards, a Member shall immediately notify
the Committee on Safeguards upon initiating an investigatory process relating to serious injury or threat
thereof and the reasons for it.
2. In view of the requirement that a notification has to be provided immediately upon initiating
an investigation. and the possibility that certain Members may need to make such a notification prior
to any discussion on the relevant format by the Committee on Safeguards, a format is suggested below
for these notifications under Article 12. 1 (a) of the Agreement on Safeguards to assist Members to focus
on the type of information to be submitted in the notifications and to obtain similar responses from
different Members.
Suggested format for notifications under Article 12. 1(a) of the Agreement on Safeguards
Notification to the Committee on Safeguards upon initiation of an investigation process
relating to serious injury or threat thereof and the reasons for it
Note: The format is suggested without prejudice to the interpretation of the relevant provisions in
the Agreement on Safeguards by the competent bodies. Members are also reminded of the
provision in Article 12.11 of the Agreement on Safeguards, which reads as follows: "The
provisions on notification in this Agreement shall not require any Member to disclose confidential
information the disclosure of which would impede law enforcement or otherwise be contrary
to the public interest or would prejudice the legitimate commercial interests of particular
enterprises, public or private."
1. Specify the date when the investigation was initiated.
2. Specify the product subject to the investigation.
3. Provide the reasons for the initiation of investigation, for example:
(i) Was the investigation initiated pursuant to a petition from the domestic industry?
(ii) Evidence on the basis of which the investigation was initiated.
(iii) Evidence, if any, on critical circumstances where delay would cause damage
which it would be difficult to repair. |
GATT Library | xd301vw3709 | Notification under Article 12.7 of measures subject to the prohibition and elimination of certain measures under Article 11.1 of the Agreement on Safeguards | World Trade Organization, February 2, 1995 | World Trade Organization and Committee on Safeguards | 02/02/1995 | official documents | G/SG/N/3 and 0172-0197 | https://exhibits.stanford.edu/gatt/catalog/xd301vw3709 | xd301vw3709_90080642.xml | GATT_1 | 358 | 2,369 | RESTRICTED
WORLD TRADE G/SG/N/3
2 February 1995
ORGANIZATION
(95-0187)
Committee on Safeguards
NOTIFICATION UNDER ARTICLE 12.7 OF MEASURES SUBJECT TO
THE PROHIBITION AND ELIMINATION OF CERTAIN MEASURES
UNDER ARTICLE 11.1 OF THE AGREEMENT ON SAFEGUARDS
1 . Under Article 12.7 of the Agreement on Safeguards, Members maintaining measures described
in Article 11. 1 which exist on the date of entry into force of the WTO Agreement shall notify such
measures to the Committee on Safeguards not later than 60 days after the date of entry into force of
the WTO Agreement, i.e. not later than 2 March 1995. These measures are those subject to the
"prohibition and elimination of certain measures" under Article 11, i.e. the measures specified in
Article 11.1(b).
2. Members are therefore invited to notify all measures specified in Article 11.1(b) that were
in existence on 1 January 1995. Notifications received in response to this request will be circulated
in addenda to this document.
3. A format is suggested below for these notifications under Article 12.7 of the Agreement on
Safeguards in order to assist Members to focus on the type of information to be submitted in the
notifications and to obtain similar responses from different Members.
Suggested format for notifications under Article 12.7 of the Agreement on Safeguards
Notifications to the Committee on Safeguards of measures
described in 11. 1 (b), existing on 1 January 1995
Note: The format is suggested without prejudice to the interpretation of the relevant provisions in
the Agreement on Safeguards by the competent bodies. Members are also reminded of the
provision in Article 12.11 of the Agreement on Safeguards, which reads as follows: "The
provisions on notification in this Agreement shall not require any Member to disclose confidential
information the disclosure of which would impede law enforcement or otherwise be contrary
to the public interest or would prejudice the legitimate commercial interests of particular
enterprises, public or private."
1. Specify the type of measure (please see Article 11. 1(b) and footnote 4 for examples).
2. Specify the Members concerned (please see the ANNEX to the Agreement on safeguards for
an example)
3. Specify the product subject to the measure. |
GATT Library | pv659yg0613 | Notification under Article IX :5(a). Finland | General Agreement on Tariffs and Trade, January 13, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Government Procurement | 13/01/1995 | official documents | GPR/W/140 and 0009-0040 | https://exhibits.stanford.edu/gatt/catalog/pv659yg0613 | pv659yg0613_90080445.xml | GATT_1 | 452 | 3,384 | RESTRICTED
GENERAL AGREEMENT GPR/W/140
13 January 1995
ON TARIFFS AND TRADE Special Distribution
(95-0033)
Committee on Government Procurement Original: English
NOTIFICATION UNDER ARTICLE IX :5(a)
Finland
The following communication, dated 22 December 1994, has been received from the delegation
of Finland, with the request that it be circulated to the members of the Committee on Government
Procurement.
The 1981 list of the Finnish procuring entities has undergone certain changes. These are the
following:
1. Government Margarine Factory does not exist any more.
2. The name of Government Nutrition Centre has been changed into Kulinari Ltd. This company
has later been sold to a private enterprise thus disappearing from the Finnish list of procuring entities.
3. A few changes in the names of the procuring entities:
(a) Valtion Painatuskeskus has been changed into Painatuskeskus Oy (Printing Centre Ltd.)
(b) Suomen Rahapaja has been changed into Rahapaja Oy (Mint of Finland Ltd.)
(c) Vesihallitus has been changed into Vesi-ja ympärstöhallitus (National Board of Water
Administration and of the Environment)
(d) Ammattikasvatushallitus has been changed into Opetushallitus (National Board of
Education).
Enclosed is the new updated list of the Finnish procuring entities. The delegation of Finland
requests the GATT Secretariat to distribute it together with this explanation to the other Parties to the
Agreement on Government Procurement.
./. GPR/W/ 140
Page 2
SUOMI
1. Maatalouden tutkimuskeskus
2. Merenkulkuhallitus
3. Ilmatieteen laitos
4 Painatuskeskus Oy
5. Oikeusministeriö
6. Rahapaja Oy
7. Ilmailuhallitus
8. Metsähallitus
9. Vesi- ja ympäristöhallitus
10. Opetushallitus
Il. Maanmittaushallitus
12. (Valtion margariinitehdas)
lakkautettu
13. (Valtion ravitsemiskeskus)
Kulinaari Oy
14. Valtion hankintakeskus
15. Valtion teknillinen tutkimuskeskus
19. Pääesikunta'
FINLAND
1. Agricultural Research Centre
2. National Board of Navigation
3. Institute of Meteorology
4. Printing Centre Ltd.
5. Ministry of Justice
6. Mint of Finland Ltd.
7. National Board of Aviation
8. National Board of Forestry
9. National Board of Water Administration and
of the Environment
10. National Board of Education
Il. National Board of Survey
12. (Government Margarine Factory)
exists no longer
13. (Government Nutrition Centre)
Kulinari Ltd. sold to the private enterprise
14. Government Purchasing Centre
15. Government Technical Research Centre
19. General Headquarters'
'The asterix in the Finnish entity list refers to the following footnote on page 8 of the Practical
Guide to the Agreement on Government Procurement: The Agreement (Article IX:5) has procedural
rules for how to modify or rectify entity lists. The present Guide contains the lists of procuring entities
as these have been notified to the Committee. Lists or parts thereof which have not yet been approved
in the formal sense should not be taken as the official lists for purposes of the legal obligations amongst
the signatory countries under the Agreement. Such lists are identified in this Guide. |
GATT Library | ck292bw3236 | Notification under paragraph 9 of the understanding on the Balance-of-Payments provisions of the General Agreement on Tariffs and Trade 1994 | World Trade Organization, January 20, 1995 | World Trade Organization and Committee on Balance-of-Payments Restrictions | 20/01/1995 | official documents | WT/BOP/N/1 and 0053-0065 | https://exhibits.stanford.edu/gatt/catalog/ck292bw3236 | ck292bw3236_90080467.xml | GATT_1 | 326 | 2,312 | RESTRICTED
WORLD TRADE WT/BOP/N/1
20 January 1995
ORGANIZATION
(95-0061)
Committee on Balance-of-Payments Restrictions
NOTIFICATION UNDER PARAGRAPH 9 OF THE
UNDERSTANDING ON THE BALANCE-OF-PAYMENTS PROVISIONS
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
The following communication, dated 22 December 1994 has been received from the Permanent
Mission of the Slovak Republic.
The Government of the Slovak Republic, acting in conformity with the provisions of the
Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade
1994, wishes hereby to notify its intention to extend the application of the import surcharge adopted
on 3 March, 1994 in order to further stabilize the balance-of-payments position.'
The Slovak Government, despite the considerable effort exerted, is not in a position to remove
this measure on the 31 December 1994 as it had originally declared and as adopted by the Committee
on Balance-of-Payments Restrictions (GATT document BOP/R/218). In this regard, the Decree
introducing the 10 per cent import surcharge will be applied during the year 1995 at the same level.
However, it is intended to reduce its rate gradually during that period as the balance-of-payments situation
and foreign reserves stabilize.
The reason for the decision to apply the import surcharge for 1995 lies, in spite of partial
improvements, in the continued difficulty of achieving long term balance-of-payments stability and,
in particular, in increasing foreign exchange reserves of the National Bank of Slovakia, with respect
to fulfilling the Government's foreign debt service obligations for 1995.
The Government of the Slovak Republic is convinced that it will find understanding for its
decision, since the expected application of this temporary measure will assist Slovakia to stabilize the
balance-of-payments situation and increase foreign exchange reserves.
The Slovak Governnent will proceed in accordance with Article XII of the GATT 1994, the
Understanding on Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade
1994 and the 1979 Declaration and wishes to express its readiness to consult with the Committe on
Balance-of-Payments Restrictions.
'L/7428. |
GATT Library | vv409pz2916 | Notifications made under the Tokyo round TBT Agreement which may be relevant to the WTO Agreement on Sanitary and Phytosanitary Measures : Note by the Secretariat | World Trade Organization, February 8, 1995 | World Trade Organization and Committee on Sanitary and Phytosanitary Measures | 08/02/1995 | official documents | G/SPS/W/1 and 0209-0240 | https://exhibits.stanford.edu/gatt/catalog/vv409pz2916 | vv409pz2916_90080685.xml | GATT_1 | 92 | 630 | RESTRICTED
WORLD TRADE
ORGANIZATION
G/SPS/W/1
8 February 1995
(95-0240)
Committee on Sanitary and Phytosanitary Measures
NOTIFICATIONS MADE UNDER THE TOKYO ROUND
TBT AGREEMENT WHICH MAY BE RELEVANT TO THE
WTO AGREEMENT ON SANITARY AND PHYTOSANITARY MEASURES
Note by the Secretariat
This document reproduces those notifications which were made under the Tokyo Round
Agreement on Technical Barriers to Trade which may be of relevance under the WTO Agreement on
the Application of Sanitary and Phytosanitary Measures. Only those notifications whose final date
for comment is later than 1 January 1995 are included here. |
GATT Library | tp075ds9358 | Notifications under Article 5.1 of the Trims Agreement : Note by the Secretariat | World Trade Organization, January 26, 1995 | World Trade Organization | 26/01/1995 | official documents | G/TRIMS/1 and 0128-0143 | https://exhibits.stanford.edu/gatt/catalog/tp075ds9358 | tp075ds9358_90080604.xml | GATT_1 | 574 | 3,757 | WORLD TRADE
RESTRICTED
G/TRIMS/1
26 January 1995
ORGANIZATION
(95-0141)
NOTIFICATIONS UNDER ARTICLE 5.1 OF THE TRIMS AGREEMENT
Note by the Secretariat
Under Article 5.1 of the Agreement on Trade-Related Investment Measures, WTO Members
commit themselves to notify, within 90 days of the entry into force of the WTO Agreement, the Council
for Trade in Goods of aIl trade-related investment measures they are applying that are not in conformity
with the provisions of that Agreement. Accordingly, Members are invited to notify such measures
no later than 31 March 1995.
Attached is the format for such notifications approved by the Preparatory Committee and
transmitted to the WTO for information and implementation (PC/R, paragraph 45). G/TRIMS/1 Page 2
FORMAT FOR NOTIFICATIONS UNDER ARTICLE 5.1 OF THE AGREEMENT ON TRIMs
This format is without prejudice to the rights and obligations of Members under the TRIMs
Agreement.
(i) Description of the Measure and of its Main Features
The notification should clearly identify the measure that is being notified under Article 5.1
of the Agreement on TRIMs. Any more general information about the programme of which the measure
forms a part and which the notifying Member wishes to communicate should be provided under point (ii)
below. Where such a programme involves more than one TRIM, they should be notified separately.
The measure and its main features should be described in sufficient detail to enable the nature
and scope of the measure to be clearly defined. In particular, along with the measure itself, the following
principal features should be described whenever relevant:
1. The category in the illustrative list under which the measure falls.
2. Whether the TRIM is applied by the government of the Member under discretionary authority
or mandatory legislation. In the former case, each specific application shall be notified and
enterprises subject to the measure identified.
3. Where the TRIM is general in nature, the criteria for determining to which enterprises it applies
in sufficient detail to enable those enterprises to be identified.
4. Where the TRIM is applied pursuant to mandatory legislation, whether the legislation requires
the measure to be applied to new enterprises or new investments of existing enterprises.
5. Whether compliance with the measure by the enterprise is (a) mandatory or enforceable under
domestic law or administrative rulings or (b) necessary to obtain an advantage. In the latter
case, the nature of the advantage should be described.'
6. When the TRIM relates to specific products, sufficient detail on these products to define the
scope of the measure.
7. The date of implementation of the TRIM and the nature of any modification of the TRIM effected
within 180 days prior to the entry into force of the WTO Agreement.
8. Whether the TRIM, as applied under domestic law, includes provision for its phasing-down
and/or elimination. If so, details should be given.
9. The domestic law, regulation or administrative guideline under which the TRIM is applied;
a copy should be submitted to the Secretariat to be available for inspection by interested
Members.
10. The level of government applying the TRIM, the name of the implementing agency and any
information on the procedures governing its application necessary to enable its nature and scope
to be understood.
(ii) General Information on the Programme in Question
Where appropriate, Members should provide more general information about the programme
of which the notified TRIM forms a part.
'Information that would prejudice the legitimate commercial interests of particular enterprises need not be notified. |
GATT Library | pn689kk4698 | Outstanding notifications made under the Tokyo round TBT Agreement for the information of members of the WTO Agreement on Technical Barriers to Trade : Note by the Secretariat | World Trade Organization, January 19, 1995 | World Trade Organization and Committee on Technical Barriers to Trade | 19/01/1995 | official documents | G/TBT/W/1 and 0053-0065 | https://exhibits.stanford.edu/gatt/catalog/pn689kk4698 | pn689kk4698_90080471.xml | GATT_1 | 239 | 1,646 | RESTRICTED
WORLD TRADE G/TBT/W/1
19 January 1995
ORGANIZATION
(95-0065)
Committee on Technical Barriers to Trade
OUTSTANDING NOTIFICATIONS MADE UNDER THE TOKYO ROUND
TBT AGREEMENT FOR THE INFORMATION OF MEMBERS OF THE
WTO AGREEMENT ON TECHNICAL BARRIERS TO TRADE
Note by the Secretariat
1. At its meeting on 22 December 1994, the Preparatory Committee approved
recommendations concerning notification procedures emanating from the GATT 1947 Committee
on Technical Barriers to Trade as contained in document (PC/IPL/10/Rev.1).
2. Recommendation (ii) says that:
"In cases where the final date for comments of a notification made and distributed under
the Tokyo Round Agreement on Technical Barriers to Trade by a Party to the Agreement
which has become a WTO Member falls after the date of entry into force of the WTO
Agreement on Technical Barriers to Trade, the notification shall be distributed without
modification by the Secretariat to Members of the WTO Agreement on Technical Barriers to
Trade who have not already received the notification as a signatory of the Tokyo Round
Agreement."
3. The present document contains the notifications which fall under that Recommendation.
4. In connection with item (iv) (a) of the recommendations, WTO Members are requested to
inform the Secretariat as soon as possible of the address to which they wish notifications sent.
Pending receipt of this information, the Secretariat shall distribute notifications to the addresses of
the delegations of the Members of the WTO Agreement on Technical Barriers to Trade. |
GATT Library | nh931xw3981 | Participation in Meetings of WTO bodies by certain signatories of the final act eligible to become original members of the WTO : Decision adopted by the General Council on 31 January 1995 | World Trade Organization, February 3, 1995 | World Trade Organization | 03/02/1995 | official documents | WT/L/27 and 0209-0240 | https://exhibits.stanford.edu/gatt/catalog/nh931xw3981 | nh931xw3981_90080666.xml | GATT_1 | 293 | 1,866 | WORLD TRADE WT/L/27
3 February 1995
ORGANIZATION
(95-0219)
PARTICIPATION IN MEETINGS OF WTO BODIES BY CERTAIN SIGNATORIES OF
THE FINAL ACT ELIGIBLE TO BECOME ORIGINAL MEMBERS OF THE WTO
Decision adopted by the General Council on 31 January 1995
The General Council,
Noting that some of the Signatories of the Final Act Embodying the Results of the Uruguay Round
of Multilateral Trade Negotiations (hereinafter referred to as "Final Act") that are eligible to become
original Members of the WTO have not been able to complete their domestic procedures for the approval
of the Marrakesh Agreement Establishing the World Trade Organization (hereinafter referred to as
"WTO Agreement") before the date of entry into force of that Agreement;
Noting further that some of the Ministerial Decisions included in the Final Act envisage the participation
of non-Members of the WTO in the negotiations initiated under them;
Desiring to enable certain Signatories of the Final Act that are eligible to become original Members
of the WTO to participate in the deliberations of the bodies of the WTO;
Decides as follows:
During a period of seven months following the date of entry into force of the
WTO Agreement Signatories of the Final Act Embodying the Results of the Uruguay
Round that are contracting parties to the GATT 1947 as of the date of this Decision
and are eligible to become original Members of the WTO
- may be present and speak at formal or informal meetings of the bodies
established under the WTO Agreement other than the Textiles Monitoring Body,
and
- shall have access to all documents made available to Members of the WTO
for such meetings.
Such Signatories shall not have the right to participate in the decision-making of the
bodies established under the WTO Agreement. |
GATT Library | ks828qt3768 | Preparatory Committee for the World Trade Organization report to the WTO : Addendum. List of Documents of the Preparatory Committee and its Subsidiary Bodies | Preparatory Committee for the World Trade Organization, January 18, 1995 | World Trade Organization- Preparatory Committee and World Trade Organization- Preparatory Committee | 18/01/1995 | official documents | PC/R/Add.1 and 0040-0053 | https://exhibits.stanford.edu/gatt/catalog/ks828qt3768 | ks828qt3768_90080460.xml | GATT_1 | 6,939 | 50,278 | RESTRICTED
PREPARATORY COMMITTEE PC/R/Add.1
FOR THE 18 January 1995
WORLD TRADE ORGANIZATION
(95-0053)
PREPARATORY COMMITTEE FOR THE
WORLD TRADE ORGANIZATION
PREPARATORY COMMITTEE FOR THE WORLD TRADE ORGANIZATION
REPORT TO THE WTO
Addendum
List of Documents of the Preparatory Committee and
its Subsidiary Bodies
1. Convening notices for meetings of all bodies
PC/AIR/1 WTO - Preparatory Committee - Sub-Committee on Trade and Environment - Meeting
of 11 May 1994
PC/AIR/2 WTO - Preparatory Committee - Sub-Committee on Budget, Finance and Administration
- Meeting of 16 May 1994
PC/AIR/3 WTO - Preparatory Committee - Sub-Committee on Services - Meeting of 19 May 1994
PC/AIR/4 WTO - Preparatory Committee - Meeting of 31 May 1994
PC/AIR/5 WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 13 June 1994
PC/AIR/6 WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 24 June 1994
PC/AIR/6/Corr.1 WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Cancellation of meeting
PC/AIR/7 WTO - Preparatory Committee - Meeting of 27 June 1994
PC/AIR/8 WTO - Preparatory Committee - Sub-Committee on Trade and Environment - Meeting
on 12 July 1994
PC/AIR/8/Corr.1 WTO - Preparatory Committee - Sub-Committee on Trade and Environment - Adjustment
of timing
PC/AIR/9 WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 4 July 1994
PC/AIR/9/Add.1 WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Amendment to agenda PC/R/Add.1
Page 2
PC/AIR/10 WTO - Preparatory Committee - Negotiating Group on Basic Telecommunications -
Meeting of 11 July 1994
PC/AIR/ 11 WTO - Preparatory Committee - Sub-Committee on Services - Meeting of 15 July 1994
PC/AIR/12 WTO - Preparatory Committee - Negotiating Group on Maritime Transport Services -
Meeting of 13 July 1994
PC/AIR/13 WTO - Preparatory Committee - Negotiating Group on Movement of'Natural Persons -
Postponement of meeting
PC/AIR/14 WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 19 July 1994
PC/AIR/15 WTO - Preparatory Committee - Sub-Committee on Budget, Finance and
Administration - Meeting of 15 July 1994
PC/AIR/16 WTO - Preparatory Committee - Meeting of 22 July 1994
PC/AIR/ 17 WTO - Preparatory Committee - Sub-Committee on Budget, Finance and Administration
- Meeting of 22 July 1994
PC/AIR/18 WTO - Preparatory Committee - Sub-Committee on Trade and Environment - Meeting
of 15 September 1994
PC/AIR/19 WTO - Preparatory Committee - Sub-Committee on Budget, Finance and Administration
- Meeting of 27 July 1994
PC/AIR/20 WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 14 September 1994
PC/AIR/21 WTO - Preparatory Committee - Sub-Committee on Budget, Finance and Administration
- Meeting of 4 August 1994
PC/AIR/22 WTO - Preparatory Committee - Sub-Committee on Services - Meeting of
21 September 1994
PC/AIR/23 WTO - Preparatory Committee - Negotiating Group on Movement of Natural Pcrsons
- Meeting of 22 September 1994
PC/AIR/24 WTO - Preparatory Committee - Sub-Committee on Budget, Finance and Administration
- Meeting of 16 September 1994
PC/AIR/25 WTO - Preparatory Committee - Meeting of 22 September 1994
PC/AIR/26 WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 26 September 1994
PC/AIR/27 WTO - Preparatory Committee - Sub-Committee on Budget, -.nance and Administration
- Meeting of 29 September 1994
PC/AIR/28 WTO - Preparatory Committee - Negotiating Group on Maritime Transport Services
- Meeting of 17 October 1994
PC/AIR/29 WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 7 October 1994 PC/R/Add.1
Page 3
PC/AIR/29/Corr.1
PC/AIR/30
PC/AIR/30/Corr.1
PC/AIR/31
PC/AIR/31/Corr.1
PC/AIR/32
PC/AIR/32/Corr.1
PC/AIR/33
PC/AIR/34
PC/AIR/35
PC/AIR/36
PC/AIR/37
PC/AIR/37/Add.1
PC/AIR/38
PC/AIR/39
PC/AIR/40
PC/AIR/41
PC/AIR/42
PC/AIR/43
PC/AIR/44
WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 7 October 1994
WTO - Preparatory Committee - Interim Group on Financial Services - Meeting of
12 October 1994
WTO - Preparatory Committee - Interim Group on Financial Services - Meeting of
12 October 1994
WTO - Preparatory Committee - Sub-Committee on Services - Meeting of
2 November 1994
WTO - Preparatory Committee - Sub-Committee on Services - Meeting of
2 November 1994
WTO - Preparatory Committee - Negotiating Group on Basic Telecommunications -
Meeting of 24 October 1994
WTO - Preparatory Committee - Negotiating Group on Basic Telecommunications -
Change of Location
WTO - Preparatory Committee - Meeting of 25 October 1994
WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 21 October 1994
WTO - Preparatory Committee - Sub-Committee on Trade and Environment - Meeting
of 26 October 1994
WTO - Preparatory Committee - Negotiating Group on Movement of Natural Persons
- Meeting of 4 November 1994
WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 11November 1994
WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters
WTO - Preparatory Committee - Meeting of 23 November 1994
WTO - Preparatory Committee - Sub-Committee on Trade and Environment - Meeting
of 23 November 1994
IMPLEMENTATION CONFERENCE - Meeting of 8 December 1994
WTO - Preparatory Committee - Sub-Committee on Services - Meeting of
29 November 1994
WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 18 November 1994
WTO - Preparatory Committee - Sub-Committee on Budget, Finance and
Administration - Meeting of 22 November 1994
WTO - Preparatory Committee - Negotiating Group on Basic
Telecommunications - Meeting of 12 December 1994 PC/R/Add.1
Page 4
PC/AIR/45
PC/AIR/46
PC/AIR/46/Corr.1
PC/AIR/47
PC/AIR/48
PC/AIR/49
PC/AIR/50
PC/AIRI51
PC/AIR/52
PC/AIR/53
PC/AIR/54
2. Documents of the
PC/INF/1
PC/INF/1/Rev.1
PC/INF/1/Rev.2
PC/INF/1/Rev.3
PC/INF/2
PC/INF/2/Rev.1
PC/1
PC/2
WTO - Preparatory Committee - Interim Group on Financial Services - Meeting of
1 December 1994
WTO - Preparatory Committee - Sub-Committee on Budget, Finance and Administration -
Meeting of 29 November 1994
WTO - Preparatory Committee - Sub-Committee on Budget, Finance and Administration -
Meeting of 29 November 1994
WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 28 November 1994
WTO - Preparatory Committee - Meeting of 30 November 1994
WTO - Preparatory Committee - Meeting of 7 December 1994
WTO - Preparatory Committee - Sub-Committee on Institutional, Procedural and Legal
Matters - Meeting of 5 December 1994
WTO - Preparatory Committee - Verification of Schedules - Meeting of 15 December 1994
WTO - Preparatory Committee - Sub-Committee on Services - Meeting of
16 December 1994
WTO - Preparatory Committee - Sub-Committee on Budget, Finance and Administration -
Meeting of 19 December 1994
WTO - Preparatory Committee - Meeting of 21 December 1994
2.Documents of the Preparatory Committee
Preparatory Committee for the World Trade Organization - Members and Observers of
the Preparatory Committee and its Sub-Committees
Preparatory Committee for the World Trade Organization - Members and Observers of
the Preparatory Committee and its Sub-Committees
Preparatory Committee for the World Trade Organization - Members and Observers of
the Preparatory Committee and its Sub-Committees
Preparatory Committee for the World Trade Organization - Members and Observers of
the Preparatory Committee and its Sub-Committees
Implementation Conference - Provisional List of Representatives
Implementation Conference - List of Representatives
Preparatory Committee for the World Trade Organization - Working Party on
Slovenia - Membership in the World Trade Organization - Membership and Terms of
Reference
Preparatory Committee for the World Trade Organization Management of Accession
Negotiations - Statement by the Chairman of the Council of Representatives of the
GATT 1947 95-0053 MF E F S PC/R/Add.01
95-0054 MF E F S G/AG/W/0001.
95-0055 MF E F S IMC/W/111
95-0056 MF E F S IMC/W/112
95-0057 MF E F S GW/014
95-0058 MF E F S SCM/188
95-0059 MF E F S SCM/189
95-0060 MF E F S ADP/133
95-0061 MF E F S WT/BOP/N/0001
95-0062 MF E F S S/NGMTS/W/002/Add.02
95-0063 MF E F S S/NGBT/W/003/Add. 18/Rev.01
95-0064 MF S E F DS047/005
95-0065 MF E F S G/TBT/W/0001 PC/R/Add.1
Page 5
PC/3 Preparatory Committee for the World Trade Organization - Status of Additions and
Rectifications of Market Access Final Schedules - Note by the Secretariat
PC/4 Preparatory Committee for the World Trade Organization - Derestriction of Documents
of the Preparatory Committee and its Subsidiary Bodies - Decision of 30 November 1994
PC/5 Preparatory Committee for the World Trade Organization - Administrative Arrangements
for the Period 23 to 31 December 1994
PC/6 Report of the Committee on Budget, Finance and Administration - Adopted at the
Implementation Conference by the Preparatory Committee for the WTO on
8 December 1994 and subsequently the CONTRACTING PARTIES to GATT 1947 on
9 December 1994 at their 50th Session
PC/7 Measures to Deal with Members in Category IV of the Administrative Arrangements
on Arrears - Adoptcd at the Implementation Conference on 8 December 1994 and
subsequently by the CONTRACTING PARTIES to GATT 1947 on 9 December 1994
at their 50th Session
PC/8 Financial Obligations of States or Separate Customs Territories who are Observers to
the WTO - Adoptcd at the Implementation Conference by the Preparatory Committee
for the WTO on 8 December 1994 and subsequently by the CONTRACTING PARTIES
to GATT 1947 on 9 December 1994 at their 50th Session
PC/9 Preparatory Committee for the World Trade Organization - Transitional Arrangements:
Transfer Agreement between GATT 1947, ICITO and the WTO - Decision of 8 December
adopted by the Preparatory Committee for the WTO, the CONTRACTING PARTIES
to GATT 1947 and the Executive Committee of ICITO
PC/10 Preparatory Committee for the World Trade Organization - Transitional Arrangements:
Participation in meetings of WTO Bodies by Certain Signatories of the Final Act Eligible
to become Original Members of the WTO - Decision of 8 December 1994 adopted by
the Preparatory Committee for the WTO and noted by the CONTRACTING PARTIES
to GATT 1947
PC/11 Preraratory Committee for the World Trade Organization - Transitional Arrangements:
Avoidance of Procedural and Institutional Duplication - Decision of 8 December 1994
adopted by the Preparatory Committee for the WTO and the CONTRACTING PARTIES
to GATT 1947
PC/12 Preparatory Committee for the World Trade Organization - Transitional Co-existence
of the GATT 1947 and the WTO Agreement - Decision of 8 December 1994 adopted
by the Preparatory Committee for the WTO and the CONTRACTING PARTIES to
GATT 1947
PC/13 Preparatory Committee for the World Trade Organization - Transitional Arrangements:
Transitional Co-existence of the Agreement on Implementation of Article VI of the General
Agreement on Tariffs and Trade and the Marrakesh Agreement Establishing the World
Trade Organization - Decision 8 December 1994 adopted by the Preparatory Committee
for the WTO and the CONTRACTING PARTIES to GATT 1947 and transmitted to the
Parties to the Agreement on Implementation of Article VI of the General Agreement
on Tariffs and Trade
PC/14 Preparatory Committee for the World Trade Organization - Transitional Arrangements:
Committee on Anti-Dumping Practices - Decision of 8 December 1994 adopted by the
Preparatory Committee for the WTO and the CONTRACTING PARTIES to GATT 1947 PC/R/Add.1
Page 6
and transmitted to the Parties to the Agreement on Implementation of Article VI of the
General Agreement on Tariffs and Trade
Preparatory Committee for the World Trade Organization - Transitional Arrangements:
Transitional Co-Existence of the Agreement on Interpretation and Application of
Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade and the
Marrakesh Agreement Establishing the World Trade Organization - Decision of
8 December 1994 adopted by the Preparatory Committee for the WTO and the
CONTRACTING PARTIES to GATT 1947 and transmitted to the Signatories to the
Agreement on Interpretation and Application of Articles VI, XVI and XXIII of the General
Agreement on Tariffs and Trade
Preparatory Committee for the World Trade Organization - Transitional Arrangements:
Committee on Subsidies and Countervailing Measures - Decision of 8 December 1994
adopted by the Preparatory Committee for the WTO and the CONTRACTING PARTIES
to GATT 1947 and transmitted to the Signatories to the Agreement on Interpretation and
Application of Articles VI, XVI and XXIII of the General Agreement on Tariffs and
Trade
Preparatory Committee for the World Trade Organization - Finalization of Negotiations
on Schedules on Goods and Services - Decision of 21 December 1994
Preparatory Committee
29 April 1994
Preparatory Committee
31 May 1994
Preparatory Committee
27 June 1994
Preparatory Committee
22 July 1994
Preparatory Committee
22 September 1994
Preparatory Committee
25 October 1994
Preparatory Committee
23 November 1994
Preparatory Committee
30 November 1994
Preparatory Committee
7 December 1994
for the World Trade Organization - Minutes of meeting on
for the World Trade Organization - Minutes of meeting on
for the World Trade Organization - Minutes of meeting on
for the World Trade Organization - Minutes of meeting on
for the World Trade Organization - Minutes of meeting on
for the World Trade Organization - Minutes of meeting on
for the World Trade Organization - Minutes of meeting on
for the World Trade Organization - Minutes of meeting on
for the World Trade Organization - Minutes of meeting on
Preparatory Committee for the World Trade Organization - Minutes of meeting on
8 December 1994 on the occasion of the Implementation Conference
Preparatory Committee for the World Trade Organization - Minutes of meeting on
21 December 1994
Preparatory Committee for the World Trade Organization - Draft Report to the WTO
PC/15
PC/16
PC/17
PC/M/1
PC/M/2
PC/M/3
PC/M/4
PC/M/5
PC/M/6
PC/M/7
PC/M/8
PC/M/9
PC/M/10
PC/M/11
PC/R/W/1 PC/R/Add.1
Page 7
PC/R/W/1/Rev.1 Preparatory Committee for the World Trade Organization - Draft Report to the WTO -
Revision
PC/R/W/1/Rev.1/Add.1
Preparatory Committee for the World Trade Organization - Draft Report to the
WTO - Addendum List of Documents of the Preparatory Committee and its Subsidiary
Bodies
PC/R/W/1/Rev.2 Preparatory Committee for the World Trade Organization - Draft Report to the WTO -
Revision
PC/R Preparatory Committee for the World Trade Organization - Report to the WTO
PC/R/Add.1 Preparatory Committee for the World Trade Organization Draft Report to the
WTO - Addendum - List of Documents of the Preparatory Committee and its Subsidiary
Bodies
PC/W/1 Preparatory Committee for the World Trade Organization - Croatia - Accession to the
WTO - Communication from Croatia
PC/W/2 Preparatory Committee for the World Trade Organization - Recent Decisions of the Interim
Committee for the Agreement on Government Procurement (1994) - Communication
from the Chairman of the Interim Committee
PC/W/3 Preparatory Committee for the World Trade Organization - Resolution Adopted by the
Conference of the Organization of African Unity (OAU) at its Thirtieth Session -
Communication from Tunisia
PC/W/4 Preparatory Committee for the World Trade Organization - Sudan - Accession to WTO
- Communication from Sudan.
PC/W/5 Preparatory Committee for the World Trade Organization - Communication from
Saint Christopher and Nevis - General Agreement on Trade in Services - Schedule of
Specific Commitments
PC/W/6 Preparatory Committee for the World Trade Organization - Communication from the
United Arab Emirates - General Agreement on Trade in Services - Schedule of Specific
Commitments and List of Article Il (MFN) Exemptions
PC/W/7 Preparatory Committee for the World Trade Organization - Communication from Mali
- General Agreement on Trade in Services - Schedule of Specific Commitments and List
of Article Il (MFN) Exemptions
PC/W/8 Preparatory Committee for the World Trade Organization - Report of the Committee
on Budget, Finance and Administration
PC/W/8/Corr.1 Preparatory Committee for the World Trade Organization - Report of the Committee
on Budget, Finance and Administration - Corrigendum
PC/W/8/Corr.2 Preparatory Committee for the World Trade Organization - Report of the Committee
on Budget, Finance and Administration - Corrigendum
PC/W/9 Preparatory Committee for the World Trade Organization - Derestriction of Documents
of the Preparatory Committee and its Subsidiary Bodies - Draft Decision PC/R/Add.1
Page 8
PC/W/10 Preparatory Committee for the World Trade Organization - Communication from Angola
- General Agreement on Trade in Services - Schedule of Specific Commitments and List
of Article II (MFN) Exemptions
PC/W/11 Preparatory Committee for the World Trade Organization - Communication from Qatar
- General Agreement on Trade in Services - Schedule of Specific Commitments
PC/W/12 Implementation Conference - Transitional Arrangements: Transfer Agreement between
GATT 1947, ICITO and the WTO
PC/W/13 Implementation Conference - Measures to deal with Members in Category IV of the
Administrative Arrangements on Arrears
PC/W/14 Implementation Conference - Financial Obligations of States or Separate Customs
Territories who are Observers to the WTO
PC/W/14/Rev.1 Implementation Conference - Financial Obligations of States or Separate Customs
Territories who are Observers to the WTO - Revision
PC/W/15 Implementation Conference - Transitional Arrangements: Participation in meetings of
WTO Bodies by Certain Signatories of the Final Act Eligible to become Original Members
of the WTO - Draft Decision
PC/W/16 Implementation Conference -Transitional Arrangements: Avoidance of Procedural and
Institutional Duplication - Draft Decision
PC/W/17 Implementation Conference - Transitional Coexistence of the GATT 1947 and the WTO
Agreement - Draft Decision
PC/W/18 Preparatory Committee for the World Trade Organization - Former Yugoslav Republic
of Macedonia - Accession to the WTO - Communication from the Former Yugoslav
Republic of Macedonia
PC/W/ 19 Preparatory Committee for the World Trade Organization Kingdom of
Cambodia - Accession to the WTO - Communication from the Kingdom of Cambodia
PC/W/20 Preparatory Committee for the World Trade Organization - Republic of
Uzbekistan - Accession to the WTO - Communication from the Republic of Uzbekistan
PC/W/21 Preparatory Committee for the World Trade Organization - Communication from the
Republic of Burundi - General Agreement on Trade in Services - Schedule of Specific
Commitments
PC/W/22 Implementation Conference - Transitional Arrangements: Transitional Coexistence of
the Agreement on Implementation of Article VI of the General Agreement on Tariffs
and Trade and the Marrakesh Agreement Establishing the Worid Trade Organization -
Draft Decision
PC/W/23 Implementation Conference - Transitional Arrangements: Committee on Anti-Dumping
Practices - Draft Decision
PC/W/24 Implementation Conference - Transitional Arrangements: Committee on Subsidies and
Countervailing Measures - Draft Decision
PC/W/25 Implementation Conference - Transitional Arrangements: Transitional Coexistence of
the Agreement on Interpretation and Application of Articles VI, XVI and XXIII of the PC/R/Add.1
Page 9
General Agreement on Tariffs and Trade and the Marrakesh Agreement Establishing
the World Trade Organization - Draft Decision
PC/W/26
PC/W/27
PC/W/28
PC/W/29
PC/W/30
PC/W/31
PC/W/31/Rev.1
3. Documents of the
Preparatory Committee for the World Trade Organization - Russian Federation - Accession
to the WTO - Communication from the Russian Federation
Preparatory Committee for the World Trade Organization - Membership of Slovenia
in the World Trade Organization - Report to the Preparatory Committee
withdrawn
Preparatory Committee for the World Trade Organization - Draft Decision Concerning
the Finalization of Negotiations on Schedules on Goods and Services
Preparatory Committee for the World Trade Organization - Ukraine - Accession to the
WTO - Communication from Ukraine
Preparatory Committee for the World Trade Organization - Republic of Slovenia - General
Agreement on Trade in Services - Schedule of Specific Commitments
Preparatory Committee for the World Trade Organization - Republic of Slovenia - General
Agreement on Trade in Services - Schedule of Specific Commitments - Revision
Sub-Committee on Budget, Finance and Administration
PC/BFA/1
PC/BFA/2
PC/BFA/M/1
PC/BFA/M/2
PC/BFA/W/1
PC/BFA/W/2
PC/BFA/W/3
PC/BFA/W/4
PC/BFA/W/4/Corr. 1
Sub-Committee on Budget, Finance and Administration - Financial Rules and Regulations
for the WTO
Sub-Committee on Budget, Finance and Administration - Transfer of Assets, Liabilities,
Records, Staff and Functions of the Director-General from the ICITO/GATT to the WTO
Sub-Committee on Budget, Finance and Administration - Minutes of Meeting of
4 August 1994
Sub-Committee on Budget, Finance and Administration - Minutes of Meeting of
16 September 1994
Sub-Committee on Budget, Finance and Administration - Seat of the WTO - Draft
Recommendation
Sub-Committee on Budget, Finance and Administration - WTO Headquarters Agreement
- Draft Recommendation - Terms of Reference for the Negotiations between the
Preparatory Committee of the WTO and the Swiss Authorities
Sub-Committee on Budget, Finance and Administration - Relationship between ITC and
the WTO - Note by the Secretariat
Sub-Committee on Budget, Finance and Administration - Transfer of assess, liabilities,
records, staff and functions of the Director-General from the ICITO/GATT to the WTO
Sub-Committee on Budget, Finance and Administration - Transfer of assess, liabilities,
records, staff and functions of the Director-General from the ICITO/GATT to the
WTO - Corrigendum PC/R/Add.1
Page 10
4. Documents of the Sub-Committee on Institutional, Procedural and Legal Matters
3247 Preparatory Committee for the World Trade Organization - Status of Work on Procedures
for Arbitration under Article 8:5 of the Agreement on Subsidies and Countervailing
Measures - Non-paper by the Secretariat (English only)
PC/IPL/1 Sub-Committee on Institutional, Procedural and Legal Matters - Terms of Reference for
the WTO Committee on Agriculture as agreed by the Sub-Committee at its meeting on
7 October 1994
PC/IPL/2 Sub-Committee on Institutional, Procedural and Legal Matters - Terms of Reference and
Membership of the WTO Committee on Budget, Finance and Administration as agreed
by the Sub-Committee at its meeting on 21 October 1994
PC/IPL/3 Sub-Committee on Institutional, Procedural and Legal Matters - Terms of Reference for
the WTO Committee on Balance-of-Payments Restrictions as agreed by the Sub-Committee
at its meeting on 21 October 1994
PC/IPL/4 Sub-Committee on Institutional, Procedural and Legal Matters - Terms of Reference for
the WTO Committee on Trade and Development as agreed by the Sub-Committee at
its meeting on 18 November 1994
PC/IPL/5 Sub-Committee on Institutional, Procedural and Legal Matters - Terms of Reference for
the WTO Committee on Market Access as agreed by the Sub-Committee at its meeting
on 18 November 1994
PC/IPL/6 Sub-Committee on Institutional, Procedural and Legal Matters - Recommended Notification
Procedures under the Agreement on Sanitary and Phytosanitary Measures - Report by
the Chairman of the Informal Contact Group on Agriculture as approved by the
Sub-Committee on 18 November 1994
PC/IPL/7 Sub-Committee on Institutional, Procedural and Legal Matters - Informal Contact Group
on TRIPS - Report by the Chairman as approved by the Sub-Committee on
18 November 1994
PC/IPL/7/Add.1 Sub-Committee on Institutional, Procedural and Legal Matters - Informal Contact Group
on TRIPS - Report by the Chairman as approved by the Sub-Committee on
18 November 1994 - Addendum
PC/IPL/7/Add.2 Sub-Committee on Institutional, Procedural and Legal Matters - Informal Contact Group
on TRIPS - Report by the Chairman as approved by the Sub-Committee on
18 November 1994 - Addendum
PC/IPL/8 Sub-Committee on Institutional, Procedural and Legal Matters - Recommended Format
for Notifications under Article 5:1 of the TRIMs Agreement - Report by the Chairman
of the Informal Contact Group on TRIPS as approved by the Sub-Committee on
28 November
PC/IPL/9 Sub-Committee on Institutional, Procedural and Legal Matters - Rules of Procedure for
Sessions of the Ministerial Conference and meetings of the General Council, Dispute
Settlement Body and Trade Policy Review Body as approved by the Sub-Committee on
18 November 1994
PC/IPL/10 Sub-Committee on Institutional, Procedural and Legal Matters - Notifications under the
WTO Agreement on Technical Barriers to Trade - Communication from the Chairman PC/R/Add.1
Page 11
of the Committee on Technical Barriers to Trade as noted by the Sub-Committee on
11 November
PC/IPL/10/Rev.1
PC/IPL/11
PC/IPL/12
PC/IPL/13
PC/IPL/14
PC/IPL/M/1
PC/IPL/M/2
PC/IPL/M/3
Sub-Committee on Institutional, Procedural and Legal Matters - Notifications under the
WTO Agreement on Technical Barriers to Trade - Communication from the Chairman
of the Committee on Technical Barriers to Trade as noted by the Sub-Committee on
11 November - Revision - English only
Sub-Committee on Institutional, Procedural and Legal Matters - Informal Contact Group
on Anti-Dumping, Subsidies and Safeguards - Report by the Chairman as approved by
the Sub-Committee on 28 November 1994
Sub-Committee on Institutional, Procedural and Legal Matters - Notification Requirements
and Formats under the WTO Agreement on Agriculture - Report by the Chairman of
the Informal Contact Group on Agriculture as approved by the Sub-Committee on
28 November 1994
Sub-Committee on Institutional, Procedural and Legal Matters - Establishment of the
Appellate Body - Recommendations by the Preparatory Committee to the WTO approved
on 6 December 1994
Sub-Committee on Institutional, Procedural and Legal Matters - Guidelines for
Appointment of Officers to WTO Bodies - as approved on 6 December 1994
Sub-Committee on Institutional, Procedural and Legal Matters - Minutes of the meeting
held on 13 June 1994
Sub-Committee on Institutional, Procedural and Legal Matters - Minutes of the meeting
held on 4 July 1994
Sub-Committee on Institutional, Procedural and Legal Matters - Minutes of the meeting
held on 19 July 1994
Sub-Committee on Institutional, Procedural
held on 14 September 1994
Sub-Committee on Institutional, Procedural
held on 26 September 1994
Sub-Committee on Institutional, Procedural
held on 7 October 1994
and Legal Matters - Minutes of the meeting
and Legal Matters - Minutes of the meeting
and Legal Matters - Minutes of the meeting
PC/IPL/M/6/Corr. 1
PC/IPL/M/7
PC/IPL/M/8
PC/IPL/M/9
PC/IPL/M/10
Sub-Committee on Institutional, Procedural and Legal Matters - Minutes of the meeting
held on 7 October 1994 - Corrigendum
Sub-Committee on Institutional, Procedural and Legal Matters - Minutes of the meeting
held on 21 October 1994
Sub-Committee on Institutional, Procedural and Legal Matters - Minutes of the meeting
held on 11 November 1994
Sub-Committee on Institutional, Procedural and Legal Matters - Minutes of the meeting
held on 18 November 1994
Sub-Committee on Institutional, Procedural and Legal Matters - Minutes of the meeting
held on 28 November 1994
PC/IPL/M/4
PC/IPL/M/5
PC/IPL/M/6 PC/R/Add.1
Page 12
PC/IPL/M/11
PC/IPL/W/1
PC/IPL/W/2
PC/IPL/W/3
PC/IPL/W/3/Corr.1
PC/IPL/W/4
PC/IPL/W/5
PC/IPL/W/6
PC/IPL/W/7
Sub-Committee on Institutional, Procedural and Legal Matters - Minutes of the meeting
held on 6 December 1994
Sub-Committee on Institutional, Procedural and Legal Matters - Provisions in the Uruguay
Round Final Act Texts Relevant to Terms of Reference and Rules of Procedure for the
Bodies Established Thereunder - Note, by the Secretariat
Sub-Committee on Institutional, Procedural and Legal Matters - The WTO and Other
Intergovernmental Organizations Note by the Secretariat
Sub-Committee on Institutional, Procedural and Legal Matters - Arrangements Between
the GATT and Uruguay Round Bodies and International Organizations - Note by the
Secretariat
Sub-Committee on Institutional, Procedural and Legal Matters - Arrangements Between
the GATT and Uruguay Round Bodies and International Organizations - Note by the
Secretariat - Corrigendum
Sub-Committee on Institutional, Procedural and Legal Matters - Transitional Arrangements
- Communication from Mexico
Sub-Committee on Institutional, Procedural and Legal Matters - Transitional Arrangements
- Note by the Secretariat
Sub-Committee on Institutional, Procedural and Legal Matters - Transitional Arrangements
- Communication from Austria
Sub-Committee on Institutional, Procedural and Legal Matters - Transitional Arrangements
- Communication from Hong Kong
PC/IPL/W/8
PC/IPL/W/9
PC/IPL/W/10
PC/IPL/W/11
PC/IPL/W/12
PC/IPL/W/13
PC/IPL/W/14
PC/IPL/W/15
Sub-Committee on Institutional, Procedural and Legal Matters - Implementation of
Article 4 of the Agreement on Preshipment Inspection - Background Note by the
Secretariat
Sub-Committee on Institutional, Procedural and Legal Matters - Terms of Reference for
the WTO Committee on Market Access - Proposal by the European Community
Sub-Committee on Institutional, Procedural and Legal Matters - WTO Cooperation with
the IMF and the World Bank and Greater Coherence in Global Economic Policy-Making
- Note by the Secretariat
Sub-Committee on Institutional, Procedural and Legal Matters - Communication from
the Director-General of WIPO
Sub-Committee on Institutional, Procedural and Legal Matters - Rules of Ethical Conduct
for the Settlement of Disputes - Communication from. the United States
Sub-Committee on Institutional, Procedural and Legal Matters - Notifications under the
WTO Agreement on Technical Barriers to Trade - Communication from the Chairman
of the Committee on Technical Barriers to Trade
Sub-Committee on Institutional, Procedural and Legal Matters - Observer Status for
International Intergovernmental Organizations in the WTO - Draft criteria and conditions
Sub-Committee on Institutional, Procedural and Legal Matters - Establishment of the
Appellate Body - Draft recommendations by the Preparatory Committee to the WTO 5. Documents
of the Sub-Committee on Services
PC/SCS/1
PC/SCS/M/1
PC/SCS/M/2
PC/SCS/M/3
PC/SCS/M/4
PC/SCS/M/5
PC/SCS/M/6
PC/SCS/SP/1
PC/SCS/W/1
PC/SCS/W/2
PC/SCS/W/3
PC/SCS/W/4
PC/SCS/W/5
PC/SCS/W/6
PC/SCS/W/7
PC/SCS/W/8
PC/SCS/W/9
PC/SCS/W/10
Sub-Committee on Services - Negotiating Groups on Movement of Natural Persons,
Maritime Transport Services and Basic Telecommunications: Organizational Arrangements
- Note by the Chairman
Sub-Committee on Services - Report of the meeting held on 19 May 1994 - Note by the
Secretariat
Sub-Committee on Services - Report of the meeting held on 15 July 1994 - Note by the
Secretariat
Sub-Committee on Services - Report of the meeting held on 21 September 1994 - Note
by the Secretariat
Sub-Committee on Services - Report of the meeting held on 2 November 1994 - Note
by the Secretariat
Sub-Committee on Services - Report of the meeting held on 29 November 1994 - Note
by the Secretariat
Sub-Committee on Services - Report of the meeting held on 16 December 1994 - Note
by the Secretariat
Sub-Committee on Services - Additions to Schedules Annexed to the General Agreement
on Trade in Services - Schedule 16 - Canada - Measures relating to Subsidies and Taxes
at Sub-Central Level
Sub-Committee on Services - Functions of the Sub-Committee on Services - Note by
the Secretariat
Sub-Committee on Services - Communication from the United States - Subsidies and
Taxes at the Sub-Central Level
Sub-Committee on Services - Communication from Canada - Subsidies and Taxes at the
Sub-Central Level
Sub-Committee on Services - Communication from the United States - Subsidies and
Taxes at the Sub-Federal Level
Sub-Committee on Services - Participation of Observers - Note by the Secretariat
Sub-Committee on Services - Verification of Schedules - Mali, Saint Kitts and Nevis
and the United Arab Emirates
Sub-Committee on Services - Verification of Schedules - Angola
Sub-Committee on Services - Guidelines for Notifications - Note by the Secretariat
Sub-Committee on Services - Verification of Schedules - Qatar
Sub-Committee on Services - Verification of Schedules - Burundi
Sub-Committee on Services - Verification of Schedules - Ecuador
PC/R/Add.1
Page 13
PC/SCS/W/11 PC/R/Add.1
Page 14
PC/SCS/W/12 Sub-Committee on Services - Verification of Schedules - List of Documents
S/IGFS/1 Interim Group on Financial Services - Note on the meeting of 12 October 1994
S/IGFS/2 Interim Group on Financial Services - Note on the meeting of l December 1994
S/IGFS/W/1 Interim Group on Financial Services - Communication from Japan and the United States
- Measures by the Government of the United States and the Govenment of Japan regarding
Insurance
S/IGFS/W/2 Interim Group on Financial Services - Communication from Switzerland - Recent Changes
to Banking and Finance Legislation
S/NGBT/1 Negotiating Group on Basic Telecommunications - Report of the meeting of 6 May 1994
S/NGBT/2 Negotiating Group on Basic Telecommunications - Report of the meeting of 11 July 1994
S/NGBT/3 Negotiating Group on Basic Telecommunications - Report of the meeting of
24-26 October 1994
S/NGBT/4 Negotiating Group on Basic Telecommunications - Report of the meeting
12-13 December 1994
S/NGBT/W/1 Negotiating Group on Basic Telecommunications - Note by the Secretariat
S/NGBT/W/1/Rev.1 Negotiating Group on Basic Telecommunications - Note by the Secretariat - Revision
S/NGBT/W/2 Negotiating Group on Basic Telecommunications - Review of Outstanding Issues - Note
by the Secretariat
S/NGBT/W/3 Negotiating Group on Basic Telecommunications - Questionnaire on Basic
Telecommunications - Note by the Secretariat
S/NGBT/W/3/Add.1 Negotiating Group on Basic Telecommunications - Communication from Switzerland
- Responses to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.2 Negotiating Group on Basic Telecommunications - Communication from New Zealand
- Response to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.2/Corr. 1
Negotiating Group on Basic Telecommunications - Communication from New Zealand
- Response to Questionnaire on Basic Telecommunications - Corrigendum
S/NGBT/W/3/Add.3 Negotiating Group on Basic Telecommunications - Communication from Cyprus -
Response to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.4 Negotiating Group on Basic Telecommunications - Communication from Mexico -
Response to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.5 Negotiating Group on Basic Telecommunications - Communication from Turkey -
Response to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.6 Negotiating Group on Basic Telecommunications - Communication from Argentina -
Response to Questionnaire on Basic Telecommunications PC/R/Add.1
Page 15
S/NGBT/W/3/Add.7 Negotiating Group on Basic Telecommunications - Communication from Chile - Response
to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.8
S/NGBT/W/3/Add.9
Negotiating Group on Basic Telecommunications - Communication from Finland -
Response to Questionnaire on Basic Telecommunications
Negotiating Group on Basic Telecommunications - Communication from Sweden -
Response to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.10 Negotiating Group on Basic Telecommunications - Communication from Norway -
Response to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.11 Negotiating Group on Basic Telecommunications - Communication from the Republic
of Korea - Response to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.11 /Corr.1
Negotiating Group on Basic Telecommunications - Communication from the Republic
of Korea - Response to Questionnaire on Basic Telecommunications - Corrigendum
(English only)
S/NGBT/W/3/Add.12
S/NGBT/W/3/Add.13
S/NGBT/W/3/Add.14
S/NGBT/W/3/Add.15
S/NGBT/W/3/Add.16
S/NGBT/W/3/Add.17
Negotiating Group on Basic Telecommunications - Communication from Canada -
Response to Questionnaire on Basic Telecommunications
Negotiating Group on Basic Telecommunications - Communication from the United States
- Response to Questionnaire on Basic Telecommunications
Negotiating Group on Basic Telecommunications - Communication from Australia -
Response to Questionnaire on Basic Telecommunications
Negotiating Group on Basic Telecommunications - Communication from the European
Community and its Member States - Response to Questionnaire on Basic
Telecommunications
Negotiating Group on Basic Telecommunications - Communication from Hong Kong
- Response to Questionnaire on Basic Telecommunications
Negotiating Group on Basic Telecommunications - Communication from Japan - Response
to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.17/Corr.1
Negotiating Group on Basic Telecommunications - Communication from Japan - Response
to Questionnaire on Basic Telecommunications - Corrigendum
S/NGBT/W/3/Add. 18 Negotiating Group on Basic Telecommunications - Communication from Hungary -
Response to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.18/Rev.1
Negotiating Group on Basic Telecommunications - Communication from Hungary -
Response to Questionnaire on Basic Telecommunications - Revision
S/NGBT/W/3/Add. 19 Negotiating Group on Basic Telecommunications - Communication from Austria -
Response to Questionnaire on Basic Telecommunications
S/NGBT/W/3/Add.20 Negotiating Group on Basic Telecommunications - Communication from the Slovak
Republic - Response to Questionnaire on Basic Telecommunications PC/R/Add.1
Page 16
S/NGBT/W/3/Add.20/Rev.1
S/NGBT/W/4
S/NGMTS/1
S/NGMTS/2
S/NGMTS/3
S/NGMTS/W/1
S/NGMTS/W/2
S/NGNP/1
S/NGNP/2
S/NGNP/3
S/NGNP/W/1
Negotiating Group on Basic Telecommunications - Communication from the Slovak
Republic - Response to Questionnaire on Basic Telecommunications - Revision
Negotiating Group on Basic Telecommunications - Communication from Australia -
Telecommunications: Termination Services
Negotiating Group on Maritime Transport Services - Note on the meeting of 5 May 1994
Negotiating Group on Maritime Transport Services - Note on the meeting of 13 July 1994
Negotiating Group on Maritime Transport Services - Note on the meeting of
17 October 1994
Negotiating Group on Maritime Transport Services - Note by the Secretariat
Negotiating Group on Maritime Transport Services - Questionnaire on Maritime Transport
Services - Note by the Secretariat
Negotiating Group on Movement of Natural Persons - Note on the meeting of 4 May 1994
Negotiating Group on Movement of Natural Persons - Note on the meeting of
22 September 1994
Negotiating Group on Movement of Natural Persons - Note on the meeting of
4 November 1994
Negotiating Group on Movement of Natural Persons - Note by the Secretariat
6. Documents of the Sub-Committee on Trade and Environment
PC/SCTE/INF/1 Sub-Committee on Trade and Environment - List of Representatives
PC/SCTE/INF/1/Corr.1
Sub-Committee on Trade and Environment - List of Representatives
PC/SCTE/M/1 Sub-Committee on Trade and Environment - Report of the meeting held on 11 May 1994
- Note by the Secretariat
PC/SCTE/M/2 Sub-Committee on Trade and Development - Report of the meeting held on 12 July 1994
- Note by the Secretariat
PC/SCTE/M/2/Corr.1 Sub-Committee on Trade and Environment - Report of the meeting held on 12 July 1994
PC/SCTE/M/3 Sub-Committee on Trade and Environment - Report of the meeting held on
15 - 16 September 1994 - Note by the Secretariat
PC/SCTE/M/3/Rev.1 Sub-Committee on Trade and Environment - Report of the meeting held on
15 - 16 September 1994 - Note by the Secretariat - Revision
PC/SCTE/M/3/Rev.1/Add.1
Sub-Committee on Trade and Environment - Report of the meeting held on
15 - 16 September 1994 - Note by the Secretariat - Addendum PC/R/Add.1
Page 17
PC/SCTE/M/4
PC/SCTE/M/5
PC/SCTE/W/1
PC/SCTE/W/2
PC/SCTE/W/3
PC/SCTE/W/4
PC/SCTE/W/5
PC/SCTE/W/6
PC/SCTE/W/7
7. Documents relating to rectifications, modifications, modifications and additions
Sub-Committee on Trade and Environment - Report of the meeting held on
26-27 October 1994 - Note by the Secretariat
Sub-Committee on Trade and Environnment - Report of the meeting held on
23-24 November 1994 - Note by the Secretariat
Sub-Commiittee on Trade and Environment - Environmental Technical Regulations and
Standards Notified under the Agreement on Technical Barriers to Trade - Note by the
Secretariat
Sub-Committee on Trade and Environment - Arrangements for Relations with
Non-governmental Organizations in the United Nations, its Related Bodies and Selected
Other Intergovernmental Organizations - Note by the Secretariat
Sub-Committee on Trade and Environment - Trade Measures for Environmental Purposes
taken Pursuant to Multilateral Environmental Agreements: Recent Developments - Note
by the Secretariat
Sub-Committee on Trade and Environment - Dispute Settlement Provisions in Multilateral
Environmental Agreements - Note by the Secretariat.
Sub-Committee on Trade and Environment - Eco-labelling: Framework and Issues -
Submission by the United States
Sub-Committee on Trade and Environment - NGO Observation of the Work of the
Committee on Trade and Environment - Submission by the United States
Sub-Committee on Trade and Environment - Exports of Domestically Prohibited Goods -
Background note by the Secretariat
relating to rectifications, modifications and additions to Schedules
Rectifications and Modifications
Schedule XIII - New Zealand
Rectifications and Modifications
Schedule XIV - Norway
Rectifications and Modifications
Schedule I - Australia
Rectifications and Modifications
Schedule XXX - Sweden
Rectifications and Modifications
Schedule LXXV - Philippines
Rectifications and Modifications of Schedules
Schedule XXXVIII - Japan
Rectifications and Modifications of Schedules
Schedule XXXVIII - Japan
of Schedules
Annexed to the Marrakesh Protocol -
of Schedules Annexed to the Marrakesh Protocol -
of Schedules Annexed to the Marrakesh Protocol -
of Schedules Annexed to the Marrakesh Protocol -
of Schedules Annexed to the Marrakesh Protocol -
Annexed to the Marrakesh Protocol -
Annexed to the Marrakesh Protocol -
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule LXXIX - Thailand
G/RS/1
G/RS/2
G/RS/3
G/RS/4
G/RS/5
G/RS/6
G/RS/7
G/RS/8 PC/R/Add.1
Page 18
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule IX - Cuba
Rectifications and Modifications of Schedules
Schedule LXXV - Philippines
Annexed to the Marrakesh Protocol -
G/RS/10/Add.1
Rectifications and Modifications of Schedules
Schedule LXXV - Philippines - Addendum
Annexed to the Marrakesh Protocol -
Rectifications and Modifications of Schedules
Schedule LXXXVI - Venezuela
Rectifications and Modifications of Schedules
Schedule LXXIX - Thailand
Rectifications and Modifications of Schedules
Schedule LIX - Switzerland - Liechtenstein
Annexed to the Marrakesh Protocol -
Annexed to the Marrakesh Protocol -
Annexed to the Marrakesh Protocol -
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule LXIX - Romania
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule CXVII - Malta
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule XXXII - Austria
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule LXXIX - Thailand
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule XVIII - South Africa
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule LXXI - Hungary
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule XCII - Czech Republic
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule XXI - Indonesia
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule XXXI - Uruguay
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule CXVII - Malta
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule V - Canada
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule V - Canada
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule XXIII - Dominican Lepublic
G/RS/9
G/RS/10
G/RS/11
G/RS/12
G/RS/13
G/RS/14
G/RS/15
G/RS/16
G/RS/17
G/RS/18
G/RS/19
G/RS/20
G/RS/21
G/RS/22
G/RS/23
G/RS/24
G/RS/25
G/RS/26 PC/R/Add.1
Page 19
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule LXIX - Romania
Rectifications and Modifications of Schedules Annexed to the Marrakesh Protocol -
Schedule XXXVII - Turkey
Additions to Schedules Annexed to the Marrakesh Protocol to the GATT 1994 - Schedule i
- Australia
Additions to Schedules Annexed to the Marrakesh
Schedule LXXX - European Communities
Additions to Schedules Annexed to the Marrakesh
Schedule XXIII - Dominican Republic
Additions to Schedules Annexed to the Marrakesh
Schedule CXVII - Malta
Additions to Schedules Annexed to the Marrakesh
Schedule XXXI - Uruguay
Additions to Schedules Annexed to the Marrakesh
Schedule CVII - Cyprus
Additions to Schedules Annexed to the Marrakesh
Schedule C - Belize
Protocol to the GATT 1994 -
Protocol to the GATT 1994 -
Protocol to the GATT 1994 -
Protocol to the GATT 1994 -
Protocol to the GATT 1994 -
Protocol to the GATT 1994 -
Additions to Schedules Annexed to the Marrakesh Protocol to the GATT 1994 - Schedule I
- Australia
Additions to Schedules Annexed to the Marrakesh Protocol to the GATT 1994 -
Schedule VI - Sri Lanka
G/SP/9/Corr.1
G/SP/10
Additions to Schedules Annexed to the Marrakesh Protocol to the GATT 1994 -
Schedule VI - Sri Lanka - Corrigendum
Additions to Schedules Annexed to the Marrakesh Protocol to the GATT 1994 -
Schedule XV - Pakistan
8. Documents
relating to notifications under Article 2.6 of the Textiles Agreement
G/TMB/W/1
G/TMB/W/1/Corr.1
G/TMB/W/2
Notification of First Integration under Article 2.6 of the Agreement on Text s and
Clothing - Communication from the Commission of the European Communities
Notification of First Integration under Article 2.6 of the Agreement on Textiles and
Clothing - Communication from the Commission of the European Communities -
Corrigendum
Notification of First Integration under Article 2.6 of the Agreement on Textiles and
Clothing - Communication from Canada
G/TMB/W/2/Corr.1 Notification of First Integration under Article 2.6 of the Agreement on Textiles and
Clothing - Communication from Canada - Corrigendum
G/RS/27
G/RS/28
G/SP/1
G/SP/2
G/SP/3
G/SP/4
G/SP/5
G/SP/6
G/SP/7
G/SP/8
G/SP/9 PC/R/Add.1
Page 20
Notification of First Integration under Article 2.6 of the Agreement on Textiles and
Clothing - Communication from Norway
Notification of First Integration under Article 2.6 of the Agreement on Textiles and
Clothing - Communication from Finland
Notification of First Integration under Article 2.6 of the Agreement on Textiles and
Clothing - Communication from the United States
G/TMB/W/3
G/TMB/W/4
G/TMB/W/5 |
GATT Library | yk386dg6120 | Preparatory Committee for the World Trade Organization. Report to the WTO. : Corrigendum | Preparatory Committee for the World Trade Organization, January 30, 1995 | World Trade Organization- Preparatory Committee and World Trade Organization- Preparatory Committee | 30/01/1995 | official documents | PC/R/Corr.1 and 0143-0171 | https://exhibits.stanford.edu/gatt/catalog/yk386dg6120 | yk386dg6120_90080619.xml | GATT_1 | 66 | 460 | PREPARATORY COMMITTEE
FOR THE
WORLD TRADE ORGANIZATION
RESTRICTED
PC/R/Corr.1
30 January 1995
(95-0157)
PREPARATORY COMMITTEE FOR THE
WORLD TRADE ORGANIZATION
PREPARATORY COMMITTEE FOR THE WORLD TRADE ORGANIZATION
REPORT TO THE WTO
Corrigendum
Page 10. paragraph 45
In the third indent, the reference to the Annex should read: "Annexes 6 and 7".
The fourth indent should read: "Subsidies and Countervailing Measures, PC/IPL/1 1, Annexes 1
to 7". |
GATT Library | pk910tv9096 | Projet de Rapport | Organisation Mondiale du Commerce, July 20, 1995 | Organisation Mondiale du Commerce, World Trade Organization, Accord International sur la Viande Bovine, International Bovine Meat Agreement, Conseil International de la Viande, and International Meat Council | 20/07/1995 | official documents | IMA/SPEC/1 and IMA/SPEC/1 + 1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/pk910tv9096 | pk910tv9096_92230070.xml | GATT_1 | 2,967 | 18,923 | RESTRICTED
ORGANISATION MONDIALE IMA/SPEC/1
20 juillet 1995
DU COMMERCE
(95-2063)
Accord international sur la viande bovine
CONSEIL INTERNATIONAL DE LA VIANDE
Projet de rapport
President: M. Arthur Nogueira
1. Le Conseil international de la viande (CIV) a tenu sa premiere reunion dans le cadre de l'Accord
international sur la viande bovine les 21 et 22 juin 1995. L'ordre du jour, figurant dans l'aerogramme
WTO/AIR/99, a et6 adopted avec des modifications. M. Arthur Nogueira, du Br6sil, a et elu President
du CIV.
Fonctionnement de l'Accord
2. Le Conseil a procede a un change de vues general sur le fonctionnement de l'Accord et sur
le role du CIV a la lumiere des resultats du Cycle d'Uruguay. Le representant de l'Australie a rappel
que l'Arrangement relatif a la viande bovine et l'Arrangement international relatif au secteur laitier
avaient e concus a l'issue du Tokyo Round parce qu'il n'avait pas ete possible de definir dans le cadre
du GATT de solides disciplines concernant agriculture, a un moment ou les marches internationaux
de la viande bovine et des produits laitiers etaient en difficult. L'Arrangement relatif a la viande bovine
avait atteint son objectif et les fonctions du nouveau Conseil international de la viande pouvaient etre
reduites, l'environnement commercial etant devenu plus stable et plus previsible a la suite du Cycle
d'Uruguay. Le Groupe intergouvernemental sur la viande de la FAO s'occuperait des interets des
pays en d~veloppement, et la situation des marches de la viande et des animaux sur pied serait suivie
par chaque pays et par d'autres organismes internationaux, dont l'OCDE. Le Comite de l'agriculture
pourrait etre saisi, s'il y a lieu, de tout probleme li6 a un eventuel desequilibre du march international
de la viande, conformement aux dispositions de l'article 18 de l'Accord sur l'agriculture. Le repr6sentant
de l'Australie a ajoute que les informations communiquees au Conseil international de la viande ne IMA/SPEC/1
Page 2
seraient pas d'une grande utility si elles ne concernaient pas un plus grand nombre de pays producteurs
et consommateurs de viande et si elles n'etaient pas presentees dans de meilleurs delais.
3 . Le representanm des Etats-Unis a soulign6 que son pays etait preoccup6 avant tout par la necessity
de repartir les maigres ressources disponibles pour repondre aux nouveaux besoins decoulant de la
mie en oeuvre des accords du Cycle d'Uruguay, en particulier du point de vue des incidences pour
le Secretariat. Or, il etait possible de reduire les ressources necessaires dans le cadre de l'Accord
international sur la viande bovine et de l'Accord international sur le secteur laitier. Les Etats-Unis
qui avaient deja modified leurs priorities et recouraient de plus en plus a d'autres sources d'information
proposeraient en temps utile des changements plus fondamentaux.
4. Le representant de la CE a estime que l'Arrangement relatif a la viande bovine avait donned
satisfaction dans le passe et que les travaux du CIV avaient favorise une meilleure connaissance des
marches internationaux de la viande. II a propose que le Conseil poursuive et renforce ses travaux
dans le domaine de l'information statistique et des mesures de politique generale, notamment en ce
qui concerne les autres types de viande et l'am6lioration de la comparability des donnees statistiques.
5. Plusieurs parties ont souligne qu'elles attachaient toujours de l'importance aux activities menees
dans le cadre de l'Accord international sur la viande bovine, tout en reconnaissant qu'il fallait reduire
les fonctions du Conseil international de la viande, en raison de la priority donnee aux travaux du Comite
de l'agriculture et du Comite des mesures sanitaires et phytosanitaires. Le Conseil a donc decide de
ne pas retablir le Groupe d'analyse des marches de la viande (GAMV) et d'examiner les points de
l'ordre du jour qui etaient traits auparavant par ce dernier.
Prescriptions en matiere de notification
6. Apres cette discussion, le projet de questionnaire sur les politiques interieures et les mesures
comnuerciales (IMA/W/4) et le projet de questionnaire statistique (IMA/W/5) ont ete adopts tels qu'ils
ont ete modifies. Les documents ont ensuite ete distribues sous la cote IMA/2 et IMA/3, respectivement.
Le Conseil a decide que pour eviter les doubles emplois, les informations pertinentes communiquees
au Comit6 de 1'agriculture et au Comite des mesures sanitaires et phytosanitaires devraient etre indiquees
dans le questionnaire du CIV sur les politiques, pour reference. IMA/SPEC/1
Page 3
Reglement int6rieur
7. Le Conseil a examine le reglement interieur de l'Accord international s'ir la viande bovine
(IMA/W/3) et a adopted le texte tel qu'il a ete modified. Le reglement dans sa version definitive a ete
public sous la cote IMA.1. il a et convenus ce qui suit: le CIV tiendrait une seule reunion ordinaire
annuelle, au mois de juin (regle 3); le questionnaire statistique serait soumis deux fois par an, mais
cette frequence pourrait etre modifiee par le President en consultation avec les parties (regle 15); les
discussions du Conseil sur la situation et les perspectives du marched mondial de la viande seraient
consignees dans le rapport de la reunion du Conseil (regle 8), et le Secretariat etablirait tous les ans
un rapport analytioue sur la situation et les perspectives du marched mondial de la viande bovine
(regle 17).
Statut d'observateur
8. Les membres du Conseil ont change des vues sur les conditions du statut d'observateur
(regle 12). Les parties ont fait remarquer que les observateurs devraient Wtre encourages a participer
a l'echange d'informations lors des reunions et sont convenues que les gouvernements ayant le statut
d'observateur seraient invites a repondre, s'ils le souhaitaient, au questionnaire statistique et au
questionnaire sur les politiques interieures. Le Conseil a decide d'adresser une invitation permanent
a la Commission economique pour l'Europe de l'ONU (CEE), a la FAO, au Centre du commerce
international (CCI), a l'OCDE et a la CNUCED.
Evaluation de la situation et des perspectives du marched
Production
9. La production mondiale de viande bovine devrait atteindre environ 53 millions de tones en 1995,
soit 1 pour cent de plus qu'en 1994. Cette augmentation serait due principalement aux pays en
d6veloppement, en particulier la Chine et le Bresil. Parmi les pays developpes, les Etats-Unis, le Canada
et la Nouvelle-Zelande devraient enregistrer des taux de croissance sup6rieurs a la moyenne mondiale.
On s'attend a une baisse de la production en Australie et a une l6gere augmentation dans la Communaute
europeenne par rapport a 1994.
10. La revision recente de l'evaluation du nombre de tetes de betail en Australie donne a penser
que le secteur a survecu mieux que prevu a la secheresse. En effet, d'apres les resultats d'un IMA/SPEC/ 1
Page 4
recensement, le cheptel bovin a augments ces deux dernieres annees. La reconstitution des troupeaux
devrait se poursuivre au cours des annees a venir, ce qui se traduira par une amelioration des prix
a la production. En Nouvelle-Zelande, les producteurs reduiront vraisemblablement leur cheptel cette
annee, face a ia nouvelle baisse des prix a la sortie de l'exploitation, consecutive au flechissement des
prix de la viance de boeuf sur le marched des Etais-Unis et a l'appreciation du dollar nTo6-7iandais par
rapport au dollar des Etats-Unis. Au Japon, la structure des prix de la viande de boeuf continue de
favoriser la production de boeuf Wagyu, phenomene induit dans une large mesure par la concurrence
des importations de viande de boeuf r6frig6ree, qui ont pour effet de faire baisser les prix de la viande
de bovins laitiers produite dans le pays.
11. La reconstitution du cheptel aux Etats-Unis touche a sa fin. La production de viande bovine
devrait encore augmenter cette annee et en 1996, en raison de la faiblesse des prix des animaux sur
pied et de la hausse des prix du mais. La situation evolue de facon analogue au Canada, oui le cheptel
bovin est en augmentation depuis le milieu des annmes 80. La production de viande de boeuf devrait
croitre jusqu'en 1996, puis elle devrait plafonner ou diminuer a partir de 1997. En Argentine, elle
devrait augmenter legerement cette annee par rapport a 1994. En Uruguay, le cheptel bovin s'est accru
ces dernieres annees et devrait se stabiliser aux alentours de 11 millions de tetes en 1996.
12. Dans la Communaute europeenne, le cycle de la production bovine semble avoir atteint son
point bas, avec une production de 7,4 millions de tonnes de viande en 1994. Le nombre de tetes de
betail s'est stabilise, mais il devrait augmenter a partir de 1995. Les stocks d'intervention ont
considerablement diminu6 pour s'etablir entre 10 000 et 20 000 tonnes. Les prix interieurs ont flechi
depuis l'automne 1994. En ce qui concerne la situation de l'offre et de la demande, I'adhesion des
trois nouveaux Etats membres entraine un excedent supplementaire de l'ordre de 50 a 55 000 tonnes
de viande bovine. La production de la Norvege devrait diminuer cette annee de meme que le nombre
de tetes de betail. En Suisse, la production de viande bovine a flechi de 8 a 9 pour cent en 1994.
En Hongrie, la liquidation du troupeau s'est poursuivie en 1994, ce qui a entrained un's baisse de la
production et une augmentation sensible des importations. L'Afrique du Sud est actuellement dans
la phase de reconstitution du cheptel bovin, qui devrait culminer en 1997/98.
Situation sanitaire
13. Cette annee, I'Argentine n'a pas enregistr6 jusqu'a present de flambee de fievre aphteuse.
La region de la Mesopotamie est exempte de cette maladie depuis decembre 1992. L'OIE a declare,
il y a deux ans, que l'Uruguay etait exempt de la fievre aphteuse moyennant vaccination. Au cours IMA/SPEC/1
Page 5
des 18 derniers mois, le pays a applique un programme de non-vaccination et, comme il n'y a. pas
eu de flambee de fievre aphteuse depuis un an, il espere etre bient6t reconnu exempt de la maladie
sans vaccination. Les Etats-Unis ont engage des consultations bilaterales avec l'Uruguay et l'Argentine
pour definir une approche reglementaire en vue de l'application du concept de "zone exempte". Le
rqpresentant des Etats-Unis a indiqa6 que le contingent tarifaire de 20 000 tonnes de viande de boeuf
attributed par son pays a l'Uruguay pourrait etre mis en oeuvre en 1996.
Consommation
14. La consommation de viande de boeuf en Australie devrait rester assez importante dans les
prochaines annees, le prix du boeuf etant plus avantageux que celui du mouton. En Nouvelle-Zelande,
la consommation a repris en 1994, a la faveur de prix peu eleves, de l'augmentation des revenus reels
et d'une campagne de commercialisation pr6sentant la viande rouge come une importance source
de fer. Au Japon, la consommation de viande de boeuf a fortement augmented en 1994, quoique moins
rapidement qu'en 1993. Le representant du Japon a indique que les detaillants pratiquaient des prix
exceptionnellement bas pour attirer la clientele. A son avis, la stagnation de la consommation de viande
de porc et de volaille au Japon 6tait due a la saturation ainsi qu'aux prix competitifs de la viande de
boeuf.
15. La consommation de viande de boeuf aux Etats-Unis a augmented en depit de la concurrence
des autres types de viande dont les prix sont bas. En Argentine, elle a de nouveau diminu6 ces derniers
mois en raison de la disaffection continue des consommateurs au profit de la viande de volaille et du
poisson.
16. Dans la Communaute europerene, la consommation de viande de boeuf a diminue en 1994.
La consommation par habitant devrait rester stable dans les prochaines annees. Ces trois ou quatre
dernieres annees, la consommation de tous les types de viande d'animaux eleves aux grains a augments
d'environ 800 000 tonnes. En Norvege, la consommation de viande de boeuf a tendance a croitre,
ce qui tient a la modification des habitudes alimentaires, notamment aux progres de la restauration
rapide. En revanche, le representant de la Suisse a indique que la consommation comptabilisee de
viande rouge avait diminue dans son pays sous l'effet des campagnes men~es par des defenseurs des
droits des animaux, et en raison de la diminution de la consommation liee au tourisme dans les restaurants
et des achats transfrontaliers non comptabilises. IMA/SPEC/1
Page 6
17. En Afrique du Sud, les prix de la viande de boeuf ont augmented en valeur reelle depuis 1994,
par suite de la conservation du cheptel. En 1995, la consommation devrait chuter de 21 pour cent.
Commerce
18. D'apres les provisions de la FAO, les exportations mondiales de viande de boeuf atteindront
4,4 millions de tonnes en 1995, soit une diminution de 9 pour cent par rapport a 1994. Les exportations
de 1'Australie devraient etre freinees par la reconstitution du cheptel, cette annee et en 1996, mais
reprendre rapidement ensuitejusqu'en I'an 2000. Elles seront probablement stimulees par la demande
soutenue du Japon, par la forte demande de la Coree et par le redressement progressif des prix sur
le marched des Etats-Unis. II n'est pas certain cependant que l'Australie puisse utiliser completement
en 1995 le contingent tarifaire attribu6 par les Etats-Unis pour la viande de boeuf. Ces dernieres annees,
la Nouvelle-Zelande a reduit sa dependance a 1'egard du marched americain en augmentant la part de
ses exportations totales de viande de boeuf destinee au Japon et a la Coree. Elle compte epuiser en 1995
le contingent tarifaire qui lui a et attributed aux Etats-Unis et si l'Australie n'utilise pas completement
le sien, elle engagera des n6gociations en vue d'une redistribution des parts de contingent. Les
importations du Japon ont augments de 3 pour cent pendant l'exercice 1994 et l'on prevoit que leur
croissance s'accelerera legerement pendant l'exercice 1995 (qui a debuted en avril).
19. Les exportations de viande de boeuf des Etats-Unis devraient continuer de croitre sensiblement
en 1995, en particulier celles a destination du Japon, stimulees par la fermet6 du yen. Les importations
de bovins et de veaux d'embouche en provenance du Mexique devraient fortement augmenter par suite
de la devaluation du peso et d'une secheresse dans le nord du pays. D'apres les provisions, les
importations de viande de boeuf en provenance de pays non membres de l'ALENA tomberont aux
niveaux de 1991/1992. Les exportations de I'Argentine, qui ont connu une vigoureuse expansion
en 1994, notamment a destination du Bresil, devraient continuer de s'accroitre sous l'impulsion d'une
forte demande dans ce pays et par suite de la diminution de la consommation interieure. L'Argentine
espere effectuer au deuxieme semestre de 1995 ses premieres livraisons de viande de boeuf aux Etats-Unis
au titre de son contingent tarifaire de 20 000 tonnes negoci6 dans le cadre du Cycle d'Uruguay.
20. L'excedentdes exportations deviandedeboeufde laCE etaitd'environ 700 000 tonnes en 1994.
II devrait diminuer sensiblement en 1995 et 1996, par suite de l'accroissement des importations et de
la faiblesse des stocks d'intervention. Les contingents tarifaires attributes au titre des accords d'association
avec les pays d'Europe centrale et orientale prevoient J'acces au marched communautaire d'environ
17 000 tonnes de viande de boeuf et 70 000 tonnes de viande de porc. Le representant de la IMA/SPEC/1
Page 7
Communaute europeenne a soulign6 que les plafonds fixes pour les exportations subventionnees de
viande de boeuf ne devraient pas poser de problmrnes dans les prochaines annees.
21. Les representants de la Nouvelle-Zelande et de l'Australie ont demands au representant de
la Communaute europeenne des precisions sur les restitutions a l'exportation preetablies pour les
expeditions effcctuees apres le ler juillet 1995, date a laquelle prennent effet les engagements de reduction
des subventions a l'exportation de la CE. Le representant de la CE a fait remarquer que celle-ci avait
delivre, en mai et juin 1995, des certificats pour des exportations subventionnres devant etre effectuees
apres le ler juillet 1995. Ces montants ne seraient pas imputes sur les engagements de reduction des
subventions a 1'exportation de la CE, mais celle-ci ferait en sorte qu'ils n'excedent pas les montants
moyens pour lesquels des certificats avaient 6te delivres aux mois de mai et juin des annees precedentes.
Prix internationaux
22. Les prix de la viande bovine sur les marches asiatiques devraient rester favorables malgr6 la
pression exercee par les livraisons en provenance des Etats-Unis. Les prix sur les marches de
I 'Atlantique se sont considerablement redresses ces derniers mois, atteignant leur plus haut niveau depuis
le milieu de 1993.
Viandes de porc. de volaille et de mouton
23. En Australie, l'offre de viande de mouton devrait etre reduite en 1995 et a moyen terme, les
producteurs reconstituant leurs troupeaux apres plusieurs ann6es de liquidation consecutives a
i'effondrement des prix de la lane et a la secheresse. Cela devrait se traduire cette annee par une
diminution des exportations de viandes d'agneau et de mouton. En Nouvelle-Zelande, le cheptel ovin
devrait se reconstituer dans les annees a venir du fait de la remontee des prix de la lane et de la baisse
des prix de la viande de boeuf. Pendant l'exercice 1994, le Japon a enregistre une croissance a deux
chiffres de ses importations notanmment pour la viande de volaille et la viande de porc refrig6ree destinies
a la consommation directe.
24. Aux Etats-Unis, l'expansion assez vigoureuse de la production de viande de porc et de volaille
devrait se ralentir cette annee et en 1996 par suite de l'augmentation du couit des fourrages. Les
exportations devraient enregistrer une forte croissance ces deux prochaines annees, si la tension sur
les prix interieurs persiste et si le dollar reste faible. La production et les exportations de viande de
porc du Canada augmenteront probablement en 1995, mais la production devrait se contracter l'ann~e IMA/SPEC/ 1
Page 8
prochaine, en raison de la diminution de la remuneration des producteurs et de la hausse du couit des
fourrages.
25. La Communaut6 europeerme prevoit une croissance continue de la production de viande de
volaille, un flechissement cyclique de la production de viande de porc et use 1lgere baisse de la
production de viande de mouton en 1995. Les exportations de viande de volaille et de porc devraient
diminuer a partir de 1996.
Date de la prochaine reunion
26. La prochaine reunion du CIV se tiendra les 11 et 12 juin 1996, sous reserve de confirmation
par le Secretariat. |
GATT Library | nv094vw2215 | Projet de Rapport : Corrigendum | Organisation Mondiale du Commerce, August 28, 1995 | Organisation Mondiale du Commerce, World Trade Organization, Accord International sur la Viande Bovine, International Bovine Meat Agreement, Conseil International de la Viande, and International Meat Council | 28/08/1995 | official documents | IMA/SPEC/1/Corr.1 and IMA/SPEC/1 + 1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/nv094vw2215 | nv094vw2215_92230071.xml | GATT_1 | 73 | 504 | ORGANISATION MONDIALE
DU COMMERCE
RESTRICTED
IMA/SPEC/1/Corr.1
28 aout 1995
(95-2487)
Accord international sur la viande bovine
CONSEIL INTERNATIONAL DE LA VIANDE
Projet de rapport
Corrigendum
Page 7, paragraph 21: remplacer la deuxi6me phrase par le texte suivant:
Le representant de la CE a fait remarquer que celle-ci avait defivr6, en tant que mesure
provisoire, en mai et juin 1995, des certificats pour des exportations subventionnees pouvant 6tre
effectuees apres le ler juillet 1995. |
GATT Library | yr208xq4447 | Projet. Rapport (1995) du Comite des Obstacles Techniques au Commerce | Accord General sur les Tarifs Douaniers et le Commerce, October 2, 1995 | General Agreement on Tariffs and Trade (Organization), Comité des Obstacles Techniques au Commerce, and Committee on Technical Barriers to Trade | 02/10/1995 | official documents | TBT/Spec/28 and TBT/SPEC/23-28 | https://exhibits.stanford.edu/gatt/catalog/yr208xq4447 | yr208xq4447_92210125.xml | GATT_1 | 323 | 2,173 | RESTRICTED
ACCORD GENERAL SUR LES TARIFS TBT/Spec/28
2 octobre 1995
DOUANIIERS ET LE COMMERCE
(95-2916)
Comité des obstacles techniques au commerce
PROJET
RAPPORT (1995) DU COMITE DES OBSTACLES TECHNIQUES
AU COMMERCE
1. Le present rapport, qui est communique au titre de l'article 15.8 de l'Accord relatif aux obstacles
techniques au commerce, indique les faits nouveaux surver.us dans la mise en oeuvre et l'application
de l'accord depuis le dernier rapport du Comite date du 30 novembre 1994 (L/7558).
2. L'Accord relatifaux obstacles techniques au commerce est entree envigueur le 1er janvier 1980.
Au 30 septembre 1995, 43 signataires l'avaient accepted au titre de l'article 15. ' et deux l'avaient accepted
sous reserve de ratification. Le chiffre ci-dessus prend en compte le fait qu'au 30 decembre 1994,
les Etats-Unis ont notified leur denonciation de l'accord (LET/1971), denonciation qui a pris effet le
28 fevrier 1995 conformement aux dispositions de l'article 15. 11 de l'accord. Vingt-trois pays ont
le statut d'observateur au Comite. De plus, sept organisations internationales sont invitees a assister
aux reunions du Comite en quality d'observateur.
3. Le Comite a tenu ses quarante-neuvieme, cinquantieme et cinquante et unieme reunions
conjointement avec le Comite des obstacles techniques au commerce de l'OMC les 21 avril (TBT/M/48),
14 juillet (TBT/M/49) et 20 octobre (TBT/M/50) respectivement. Pendant ces reunions, les membres
du Comite ont entendu des declarations sur la mise en oeuvre et administration de l'accord.
4. A sa cinquante et unieme reunion, le Comite a procede a son seizieme examen annuel de la
mise en oeuvre et de I 'application de l 'accord prevu par l 'article 15.8, en se fondant sur la documen-tation
de base contenue dans le document TBT/39.
5. A sa quarante-neuvieme reunion, le Comite a debattu de l'extinction de I'Accord du Tokyo Round
relatif aux obstacles techniques au commerce.
6. [A complete, en tant que de besoin, apres ia cinquante et unieme reunion.]
'Ce chiffre n'inclut pas l'ex-Republique socialite federative de Yougoslavie. |
GATT Library | rp408yj6239 | Proposed Agenda | World Trade Organization, February 17, 1995 | World Trade Organization and Council for Trade in Goods | 17/02/1995 | official documents | G/C/W/1 and 0327-0342 | https://exhibits.stanford.edu/gatt/catalog/rp408yj6239 | rp408yj6239_90080768.xml | GATT_1 | 319 | 2,281 | RESTRICTED
WORLD TRADE
G/C/W/1
17 February 1995
(95-0329)
ORGANIZATION
COUNCIL FOR TRADE IN GOODS
20 February 1995
PROPOSED AGENDA
1. RULES OF PROCEDURE FOR THE COUNCIL FOR TRADE IN GOODS
2. AGREEMENT ON TRADE RELATED INVESTMENT MEASURES
(A) Notification formats and procedures: notifications under Article 5.1 of the TRIMs
Agreement (PC/IPL/8, paragraphs 2, 4 and 5)
(B) Notifications under Article 5.1 by governments which accept the
1 January 1995 (PC/IPL/8, paragraph 6)
3. AGREEMENT ON PRESHIPMENT INSPECTION
- Legal status of the Independent Review Entity under Article 4
4. AGREEMENT ON SAFEGUARDS
- Membership of the Committee on Safeguards
5. UNDERSTANDING ON THE INTERPRETATION OF ARTICLE XVII OF
1994
Agreement after
THE GATT
(A) Establishment of the Working Party on State Trading Enterprises
(B) Notification requirement with respect to State Trading Enterprises under
of GATT 1994 (G/STR/1)
Article XVII
6. MARRAKESH MINISTERIAL DECISION ON NOTIFICATION PROCEDURES
- Establishment of the Working Group on Notification Obligations and Procedures
7. ENLARGEMENT OF THE EUROPEAN UNION: ACCESSION OF AUSTRIA, FINLAND
AND SWEDEN TO THE EUROPEAN COMMUNITIES
- Communication from the European Communities (L/7614 and Add. 1; WT/L/7;
WT/L/22)
8. INTERIM AGREEMENT BETWEEN BULGARIA AND THE EUROPEAN COMMUNITIES
- Communication from the European Communities (L/76 17 and Add. 1; WT/REG 1 / 1)
9. INTERIM AGREEMENT BETWEEN ROMANIA AND THE EUROPEAN COMMUNITIES
- Communication from the European Communities (L/7618 and Add. 1; WT/REG2/1)
.1. G/C/W/1
Page 2
10. NOTIFICATION BY MALAYSIA IN PURSUANCE OF ARTICLE XVIII:C OFGATT 1994
AND THE 1979 DECISION ON SAFEGUARD ACTION FOR DEVELOPMENT PURPOSES
(WT/L/32)
- Communication from Singapore (G/L/2)
- Communication from Malaysia (G/L/3)
11. USE OF SPANISH AS A WORKING LANGUAGE IN THE TECHNICAL COMMITTEE
ON RULES OF ORIGIN
12. APPOINTMENT OF OFFICERS FOR THE COMMITTEE ON MARKET ACCESS,
COMMITTEE ON AGRICULTURE, COMMITTEE ON SANITARY AND PHYTOSANITARY
MEASURES, COMMITTEE ON SAFEGUARDS, WORKING GROUP ON NOTIFICATION
OBLIGATIONS AND PROCEDURES AND WORKING PARTY ON STATE TRADING
ENTERPRISES
OTHER BUSINESS |
GATT Library | cv410rg1535 | Proposed Agenda | World Trade Organization, February 8, 1995 | World Trade Organization and Dispute Settlement Body | 08/02/1995 | official documents | WT/DSB/W/1 and 0240-0283 | https://exhibits.stanford.edu/gatt/catalog/cv410rg1535 | cv410rg1535_90080730.xml | GATT_1 | 91 | 678 | WORLD
TRADE
RESTRICTED
WT/DSB/W/1
8 February 1995
ORGANIZATION
(95-0266)
DISPUTE SETTLEMENT BODY
10 February 1995
PROPOSED AGENDA
1. RULES OF PROCEDURE
(PC/IPL/9)
FOR MEETINGS OF THE DISPUTE SETTLEMENT BODY
2. ETHICAL CODE OF CONDUCT (PC/R, PARAGRAPH 50)
3. STANDING APPELLATE BODY (PC/IPL/13)
A. Establishment of the Appellate Body
B. Procedures for appointment of Members of the Appellate Body
4. INDICATIVE LIST OF GOVERNMENTAL AND NON-GOVERNMENTAL PANELISTS
5. MALAYSIA - PROHIBITION OF IMPORTS OF POLYETHYLENE AND POLYPROPYLENE
Request for consultations under Article XXIII:1 of the GATT 1994 by Singapore
(WT/DS1/1).
OTHER BUSINESS |
GATT Library | pc443mm6370 | Proposed Programme of Consultations for 1995 | World Trade Organization, January 20, 1995 | World Trade Organization, Committee on Balance-of-Payments Restrictions, and World Trade Organization General Council | 20/01/1995 | official documents | WT/BOP/W/1 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/pc443mm6370 | pc443mm6370_90080547.xml | GATT_1 | 164 | 1,322 | WORLD TRADE
RESTRICTED
WT/BOP/W/1
20 January 1995
ORGANIZATION
(95-0077)
Committee on Balance-of-Payments Restrictions
General Council
31 January 1995
PROPOSED PROGRAMME OF CONSULTATIONS FOR 1995
1. The following programme of consultations is proposed in the Commitee on Balance-of-Payments
Restrictions for 1995:
Bangladesh, simplified consultation (GATT consultation postponed
from 1994).
South Africa, consultation initiated under balance-of-payments
provisions of the GATT (GATT consultation postponed from 1994).
Egypt, simplified consultation (GATT consultation postponed from
1994).
Sri Lanka, full consultation.
Poland
Slovakia
Nigeria, full consultation.
Turkey, simplified consultation.
September/October
The Philippines, simplified consultation.
[Israel1]
November/December
India, full consultation.
2. In fixing the dates for these consultations, account is taken for the dates of previous consultations
with the respective countries, as well as the schedule of consultations of the International Monetary
Fund.
¦The Committee agreed that if Israel eliminated the import restrictions maintained for balance-of-payments
reasons by 1 September 1995, there would be no need for a further meeting of the Committee in autumn 1995
(BOP/R/2 15).
March
April/May
June/July |
GATT Library | rg672kd5043 | Proyecto de Informe (1995) del Comite de Licencias de Importacion de la Ronda de Tokio | Acuerdo General Sobre Aranceles Aduaneros y Comercio, October 2, 1995 | General Agreement on Tariffs and Trade (Organization) | 02/10/1995 | official documents | LIC/Spec/9 and LIC/SPEC/1-9 | https://exhibits.stanford.edu/gatt/catalog/rg672kd5043 | rg672kd5043_92190304.xml | GATT_1 | 669 | 4,627 | RESTRICTED
ACUERDO GENERAL SOBRE ARANCELES LIC/Spec/9
2 de octubre de 1995
ADUANEROS Y COMERCIO Distribución especial
(95-29 19)
PROYECTO DE INFORME (1995) DEL COMITE DE LICENCIAS
DE IMPORTACION DE LA RONDA DE TOKIO
1. En el presente informe, presentado de conformidad con el parrafo 5 del articulo 5 del Acuerdo
sobre Procedimientos para el Tr6mite de Licencias de Importaci6n, se exponen las novedades registradas
en la aplicaci6n y funcionamiento del Acuerdo desde el anterior informe del Comite, de fecha 17 de
noviembre de 1994 (L/7556).
2. El Acuerdo sobre Procedimientos para el Tramite de Licencias de Importaci6n entro en vigor
el 10 de enero de 1980. El 12 de octubre de 1995 eran 29 los signatarios del mismo: Argentina,
Australia, Austria, Bolivia, Canada, las Comunidades Europeas, Chile, Egipto, Eslovenia, Filipinas,
Finlandia, Hong Kong, Hungria, India, Jap6n, Mexico, Nigeria, Noruega, Nueva Zelandia, Pakistan,
Polonia, la Repuiblica Checa, la Repuiblica Eslovaca, Rumania, Singapur, Sudafrica, Suecia, Suiza y
Yugoslavia.' La Argentina y Bolivia han firmado el Acuerdo a reserva de ratificaci6n.
3. Tienen condici6n de observadores en el Comit6 de Licencias de Importaci6n los 31 Gobiernos
siguientes: Bangladesh, Brasil, Bulgaria, Colombia, Cote d'Ivoire, Cuba, China, Ecuador, Estados
Unidos, la Federaci6n de Rusia, Gab6n, Ghana, Indonesia, Israel, Jamaica, Malasia, Malta, Nicaragua,
Peru, la Rep6blica de Corea, la Republica Dominicana, Senegal, Sri Lanka, Tailandia, el Taipei Chino,
Tanzania, Trinidad y Tabago, Tunez, Turquia, Venezuela y Zaire. Asisten a las reuniones del Comite
en calidad de observadores dos organizaciones internacionales: el FMI y la UNCTAD.
Novedades registradas desde el anterior informe del Comite
4. Durante el period abarcado por el presente examen el Comite ha celebrado dos reuniones
los dias 3 de mayo (LIC/M/36) y 12 de octubre de 1995 (LIC/M/37, por publicar). El Comite ha
celebrado en total 37 reuniones ordinaries desde la entrada en vigor del Acuerdo.2
5. En el anexo del presente informe se enumeran las respuestas al cuestionario enviadas por los
signatarios (publicadas como adiciones al documents L/5640).
6. En la reunion que tuvo lugar el 3 de mayo de 1995, el Comite tom6 nota de una comunicaci6n
de los Estados Unidos en la que notificaba su decision de denunciar el Acuerdo sobre Procedimientos
para el Tramite de Licencias de Importaci6n y de asistir a las reuniones de este Comite en calidad de
observador. La denuncia surti6 efecto a partir del 28 de febrero de 1995.
7. En la reunion de 12 de octubre de 1995, [el Comite adopt una Decisi6n por la que el Acuerdo
de la Ronda de Tokio sobre Procedimientos para el Tramite de Licencias de Importaci6n dejard de
surtir efecto el 10 de enero de 1996. La Decisi6n dispone que, en funci6n de circunstancias imprevistas,
las partes podran aplazar la fecha de terminaci6n por un period de un afno como maximo (LIC/25).]
'Se refiere a la antigua Rep6blica Federativa Socialista de Yugoslavia.
2En el documents LIC/8 figura una nota sobre una reuni6n extraordinaria del Comite, celebrada en abril
de 1985, en relaci6n con la aplicaci6n del Acuerdo con respect a los pauses en desarrollo. LIC/Spec/9
Pagina 2
ANEXO
ACUERDO SOBRE PROCEDIMIENTOS PARA EL TRAMITE
DE LICENCIAS DE IMPORTACION
Resnuestas al cuestionario del GATT ;recibidas de
los signatarios hasta la fecha
Signatarios
Argentina
Australia
Austria
Bolivia
Canada
CEE
Chile
Egipto
Eslovenia
Filipinas
Finlandia
Hong Kong
Hungria
India
Jap6n
Meico
Nigeria
Noruega
Nueva Zelandia
Pakistan
Polonia
Republica Checa
Republica Eslovaca
Rumania
Singapur
Sudafrica
Suecia
Suiza
Documento NO
Fecha de la ultima
respuesta recibida
L/5640/Add.27/Rev. 1
Add. 13/Rev.8
Add.35/Rev.2
Add.51 y Corr.I
Add. I0/Rev.5
Add.21/Rev.1 y Suppl.1-3
y Rev.2 y Suppl.1-2
Add.8/Rev.1 y Suppl.4
Add.37 y Corr.1
Add.26/Rev.4
Add.6/Rev. 3
Add. 36/Rev. 8
Add. 12/Rev.1 y Suppl.2
Add.7/Rev.6 y Corr.1
Add.28 y Suppl.1 y Corr.1
Add.41 y Corr.1
Add.2/Rev.4 y Suppl.1
Add. 18/Rev.3
Add.25 y Suppl.1
Add.39/Rev. 1
Add.38/Rev. I
Add.38/Rev. 1
Add.32/Rev.2
Add.33/Rev.2
Add. 17/Rev.4 y Suppl.2
Add. 14/Rev.6
Add. 19/Rev.1 y Suppl.3
14.10.94
12.10.94
6.10.94
25.10.93
10.12.93
30.9.91
25.6.91
24.10.86
19.3.93
20.12.93
4.11.94
27.4.90
16.11.94
16.10.89
20.10.87
30.9.94
16.7.93
13.11.86
23.9.88
27.10.92
27.10.92
30.4.93
31.10.90
15.9.94
11.2.94
25.10.93 |
GATT Library | jp548sq2235 | Proyecto : Informe | Organización Mundial del Comercio, July 20, 1995 | Organización Mundial del Comercio, World Trade Organization, Acuerdo Internacional de la Carne de Bovino, International Bovine Meat Agreement, Consejo Internacional de la Carne, and International Meat Council | 20/07/1995 | official documents | IMA/SPEC/1 and IMA/SPEC/1 + 1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/jp548sq2235 | jp548sq2235_92230072.xml | GATT_1 | 3,283 | 20,134 | RESTRICTED
ORGANIZACION MUNDIAL IMA/SPEC/1
20 de julio de 1995
DEL COMERCIO
(95-2063)
Acuerdo Internacional de la Carne de Bovino
CONSEJO INTERNACIONAL DE LA CARNE
Proyecto
Informe
Presidente: Arthur Nogueira
1. El Consejo Internacional de la Carne (CIC) celebr6 su primera reunion en el marco del Acuerdo
Internacional de la Carne de Bovino los dias 21 y 22 de junio de 1995. Se adopt el orden del dia
(WTO/AIR/99) en su forma enmendada. El Sr. Arthur Nogueira de Brasil fue elegido Presidente
del CIC.
Funcionamiento del Acuerdo
2. El Consejo llev6 a cabo un intercambio general de opiniones sobre el funcionamiento del Acuerdo
y el papel del CIC a la luz de los resultados de la Ronda Uruguay. El representante de Australia record
que el Acuerdo de la Carne de Bovino y el Acuerdo Internacional de los Productos Lacteos habian
sido concebidos como resultado de la Ronda de Tokio debido a que no se habia logrado en esta establecer
disciplines sustanciales del GATT en materia de agricultura, en momentos en que los mercados
internacionales de la care vacuna y de los productos lacteos se encontraban en dificultades. El Acuerdo
de la Carne de Bovino habia cumplido sus prop6sitos, y las funciones del nuevo CIC podian ser ahora
mas reducidas, en vista de que el entorno comercial posterior a la Ronda Uruguay era mds estable
y predecible. Los intereses de los pauses en desarrollo podrian ser atendidos por el Grupo
Intergubernamental sobre la Carne de la FAO, y los mercados de la carne y de los animales vivos serian
vigilados por los distintos pauses y por otros 6rganos internacionales, entre ellos la OCDE. El Comite
de Agricultura podria tratar de conformidad con lo dispuesto en el articulo 18 del Acuerdo sobre la
Agricultura las cuestiones relatives a cualquier desequilibrio que ocurriese en los mercados internacionales
de la care, seguin procediese. El delegado de Australia sefial6 que, a menos que los datos presentados IMA/SPEC/1
Pfgina 2
al CIC fueran mas amplios en lo que respecta a los pauses productores y consumidores de came, y
que su presentaci6n fuera mis puntual, la informacion tendria tan s6lo un valor limitado.
3. El representante de los Estados Unidos subray6 que para su pais la preocupaci6n mds importante
era la asignaci6n de los recursos, que eran escasos, a las nuevas exigencies dimanadas de la aplicaci6n
de los Acuerdos de la Ronda Uruguay, en particular en cuanto afectaria a la Secretaria. Las esferas
en las que existian posibilidades de reducir las exigencies de recursos eran el Acuerdo Internacional
de la Came de Bovino y el Acuerdo Internacional de los Productos Ldcteos. Los Estados Unidos,
que ya habian modificado sus prioridades y recurrian cada vez mas a otras fuentes para la informaci6n,
propondrian a su debido tiempo algunos cambios mis fundamentales.
4. El representante de la CE fue de la opinion de que los resultados obtenidos en el pasado por
el Acuerdo de la Came de Bovino habian sido satisfactorios y que la labor del CIC habia contribuido
a que se comprendieran mejor los mercados internacionales de la came. Propuso que se prosiguiera
y mejorara la labor del Consejo sobre informacion estadistica y medidas de politica, en particular con
respecto a otras cames y a la mejor comparabilidad de la informaci6n estadistica.
5. Varias Partes pusieron de relieve que seguian considerando importante la labor realizada en
el marco del Acuerdo Internacional de la Came de Bovino, pero que convenfan en que debian reducirse
las funciones del Consejo Internacional de la Came a fin de reflejar la prioridad de los trabajos del
Comite de Agricultura y del Comite de Medidas Sanitarias y Fitosanitarias. El Consejo decidi6 no
volver a establecer el Grupo de Analisis del Mercado de la Came (GAMC) y debatir en el CIC los
puntos del orden del dia que anteriormente hlabian sido tratados por el GAMC.
Prescripciones en materia de notificaci6n
6. Despu6s de ser examinados por el Consejo, fueron adoptados en su forma enmendada el proyecto
de cuestionario sobre las political nacionales y las medidas comerciales (IMA/W/4) y el proyecto de
cuestionario relativo a la infomacicn estadistica (IMA/W/5). Estos documentos se distribuyeron luego
con las signatures IMA/2 e IMA/3, respectivamente. El Consejo decidi6 que, a fin de evitar toda
duplicaci6n innecesaria de los trabajos, la informaci6n pertinente presentada al Comitd de Agricultura
y al Comit6 de Medidas Sanitarias y Fitosanitarias debia indicarse en el cuestionario sobre politicas
del CIC mediante referencia. IMA/SPEC/1
Pagina 3
Reelamento
7. El Consejo examine el Reglamento del Acuerdo Intemacional de la Came de Bovino (IMA/W/1)
y adopt el texto en su forma enmendada. La version definitive del Reglamento se public con la
signature IMA/1. Se acord6 que s6lo se celebraria una reunion regular anual del CIC, que deberfa
llevarse a cabo en junio de cada afno (regla 3); el cuestionario estadistico se presentaria dos veces al
anto, pero la frecuencia podria ser modificada por el Presidente en consulta con las Partes (regla 15);
el debate celebrado en el CIC acerca de la situaci6n y las perspectives de los mercados mundiales de
la came seria parte del informe sobre la reunion del Consejo (regla 8); y la Secretaria presentaria
todos los aflos un informe analitico sobre la situaci6n y las perspectives de los mercados mundiales
de la came de bovino (regla 17).
Reconocimiento de la calidad de observador
8. El Consejo llev6 a cabo un intercambio de opiniones acerca de las condiciones para el
reconocimiento de la calidad de observador (regla 12). Las Partes sefialaron que se debia animar a
los observadores a que contribuyeran al intercambio de informaci6n en las reuniones, y convinieron
en pedir a los gobiernos observadores que respondieran voluntariamente a los cuestionarios sobre
estadisticas y sobre politicas. El Consejo decidi6 dirigir una invitacion permanent a la Comisi6n
Econ6mica de las Naciones Unidas para Europa (CEPE), la FAO, el Centro de Comercio
Internacional (CCI), la OCDE y la UNCTAD.
Evaluaci6n de la situaci6n v perspectives de los mercados
Produccion
9. Segudn las previsiones, la producci6n mundial de came de bovino sera de unos 53 millones
de toneladas en 1995, lo cual represents un aumento de un 1 por ciento en relaci6n con 1994. Tambien
se prev6 que el principal estimulo a la producci6n mundial provendrd de los paises en desarrollo, en
particular China y el Brasil. Se calcula que, entre los paises desarrollados, los Estados Unidos, el
CanadA y Nueva Zelandia registrar6n tasas de crecimiento superiores al promedio mundial. Al parecer
la producci6n de Australia sera ligeramente inferior y la de la Comunidad Europea ligeramente superior
a la de 1994. IMA/SPEC/1
Pagina 4
10. La estimaci6n recientemente revisada de la cabafna bovina de Australia parece indicar que el
sector ha sobrevivido a la sequoia en condiciones mucho mejores que las que se habian previsto. Los
datos del censo indican que se ha producido durante los dos ultimos anios un aumento del numero de
cabezas de ganado bovino. Segdn las previsiones, la reconstituci6n de la cabafia continuaria durante
los pr6ximos afios y tendrd por consecuencia un mejoramiento de los precios al productor. En Nueva
Zelandia, se estima que los ganaderos reducirdn la cabafia durante el presente afno respondiendo a una
nueva caida de los precios en la explotaci6n agricola como resultado de los precios mis bajos de la
came vacuna en el mercado de los Estados Unidos y de la apreciaci6n del dMlar de Nueva Zelandia
frente al dMlar de los Estados Unidos. En el Jap6n, la estruciura de los precios de la came vacuna
sigue favoreciendo la producci6n de la came de tipo Wagyu, proceso que esta impulsado en gran medida
por la competencia de las importaciones, puesto que la came vacuna refrigerada de importaci6n hace
bajar los precios de la came nacional de vacunos lecheros.
11. En los Estados Unidos se acerca el final de la expansion de la cabafia. Se espera que la
producci6n de came vacuna siga aumentando durante el presente aflo y en 1996, como resultado de
la baja de precios de los animales vivos y el aumento del precio del maiz. En el Canada la situaci6n
es semejante: y la cabafia bovina viene creciendo desde mediados del decenio de 1980. Se prev6 un
aumento de la producci6n de came vacuna hasta 1996 y una estabilizaci6n o disminuci6n a partir de 1997.
En Argentina la produccion de came vacuna sera, seguin pron6sticos, ligeramente mas elevada este
afio que en 1994. En el Uruguay, el numero de cabezas de ganado bovino ha aumentado en los filtimos
afios y se preve que para 1996 se estabilizarf en alrededor 11 millones de cabezas.
12. En la Comunidad Europea el ciclo bovino parece haber llegado a su punto mas bajo con una
produccifn de 7,4 millones de toneladas de came de bovino en 1994. La cabafna se ha estabilizado
y se preve que aumentarg a partir de 1995. Las existencias de intervencion se redujeron marcadamente
hasta una cifra situada entre 10.000 y 20.000 toneladas. Los precios intemos de la CE vienen
disminuyendo desde el otofno de 1994. Los tres rnuevos Estados miembros de la CE aportan al equilibrio
entre la oferta y la demanda en la CE un excedente del orden de 50.000 a 55.000 toneladas de came
de bovino. Se pronostica que en Noruega la producci6n de came vacuna decrecerd en el presente afno,
junto con una reducci6n de la cabafia. En Suiza la producci6nde care de bovino disminuy6 en alrededor
de un 8-9 por ciento en 1994. En Hungria, continue en 1994 la liquidaci6n de la cabafna con la
consiguiente baja de la producci6n y un aumento considerable de las importaciones. SudAfrica se
encuentra actualmente en la fase ascendente del ciclo del ganado bovino, previendose las cotas mfiximas
para 1997/98. IMA/SPEC/1
Pagina 5
Situaci6n sanitaria
13. En la Argentina no se han registrado brotes de fiebre aftosa durante el presente anto, mientras
que en la region de Mesopotamia no se producen desde diciembre de 1992. Hace dos afios la OIE
reconocio al Uruguay como libre de fiebre aftosa con utilizaci6n de vacunas. Durante el uiltimo afno
y medio, el Uruguay ha aplicado un programa sin utilizaci6n de vacunas y, en vista de que no ha ocurrido
ningun brote durante un afno, espera que se le reconoceri en un futuro pr6ximo la condici6n de libre
de fiebre aftosa sin utilizaci6n de vacunas. Los Estados Unidos, en consultas bilaterales celebradas
con el Uruguay y la Argentina, estan elaborando un enfoque reglamentario para la aplicaci6n del concepto
de "zona libre". El representante de los Estados Unidos observ6 que el contingent arancelario de
came vacuna de 20.000 toneladas asignado al Uruguay para su exportaci6n a los Estados Unidos podria
aplicarse en 1996.
Consumo
14. Seguin las previsiones, el consumo de came de vacuno en Australia se mantendrd a niveles
relativamente elevados durante los pr6ximos afnos, con la ayuda de unos precios favorables en
comparaci6n con los de la came de ovino. En Nueva Zelandia el consumo se recobr6 en 1994, como
resultado de los bajos precios de la came vacuna, el aumento de los ingresos reales y una campafna
de comercializaci6n en la que se puso de relieve la importancia de la came roja como alimento rico
en hierro. En el Jap6n, el consumo de came de vacuno creci6 marcadamente en 1994, si bien a un
ritmo menor al registrado en 1993. El representante del Jap6n indico que los minoristas estaban
vendiendo came vacuna a precios excepcionalmente bajos a fin de atraer clientes. Atribuy6 el
estancamiento del consumo de came de porcino y de aves de corral en el Jap6n a las consecuencias
de la saturaci6n, asi como a la competencia de los precios del sector vacuno.
15. El consumo de came de vacuno ha venido aumentando en los Estados Unidos, a pesar de la
competencia que representan los precios bajos de las demos carnes. En la Argentina el consumno dO
came vacuna ha disminuido nuevamente durante los ultimos meses, debido a que los consumnidores
siguen modificando sus dietas para consumir mfs came de aves de corral y pescado.
16. En la Comunidad Europea, el consumo de came de bovino disminuy6 en 1994. Se preve que
durante los pr6ximos afios el consumo por habitante se mantendra estable. Durante los (iltimos tires
o cuatro afnos, el consumo de todos los tipos de came de animales alimentados con cereales aument6
en unas 800.000 toneladas. El consumo de came vacuna tiende a aumentar en Noruega, lo cual se IMA/SPEC/1
Pigina 6
atribuye a una modificaci6n de las costumbres alimentarias, y en particular a un mayor consumo de
comidas de restauraci6n rdpida. En cambio, el representante de Suiza senial6 que habia disminuido
en su pais el consumo verificado de care roja, como resultado de la propaganda de los movimientos
de defensa de los animales, la disminuci6n del consumo de care vacuna en restaurantes para turistas
y las compras transfronterizas no registradas.
17. En Sudafrica, los precios de la care vacuna han venido aumentando en terminos reales como
resultado de la retenci6n de ganado. Se prev6 que en 1995 el consumo disminuira en un 21 por ciento.
Comercio
18. Segun las previsiones de la FAO las exportaciones mundiales de care vacuna sumardn
4,4 millones de toneladas en 1995, lo cual represents una disminuci6n del 9 por ciento en comparacion
con 1994. Se prevd que las exportaciones de care vacuna de Australia quedaran obstaculizadas por
la reconstituci6n de la cabafna durante el presente afno y parte del 1996, pero que luego se recuperardn
rdpidamente hasta el afno 2000. Es probable que la demanda sostenida del Jap6n, la fuerte demanda
de Corea y el gradual mejoramiento de los precios en el mercado de los Estados Unidos estimulen
las exportaciones australianas. Sin embargo, se duda de que el contingent arancelario de los Estados
Unidos de care de bovino asignado a Australia pueda agotarse en 1995. En los uiltimos aflos Nueva
Zelandia depende cada vez menos del mercado de los Estados Unidos, y una proporcion mayor de
sus exportaciones totales de care vacuna se dirige ahora al Jap6n y a Corea. Nueva Zelandia espera
agotar su contingent arancelario nacional en los Estados Unidos durante 1995 y desea iniciar
negociaciones para reasignar las partes de contingent arancelario en caso de que las exportaciones
australianas sean inferiores a lo asignado. Las importaciones del Jap6n aumentaron un 3 por ciento
en el ejercicio fiscal de 1994 y se preve que aumentardn ligeramente en el ejercicio de 1995 (que empez6
en abril).
19. Se prev6 que las exportaciones de care de bovino de los Estados Unidos seguirdn aumentando
de manera significative en 1995, en particular ias dirigidas al Jap6n, estimuladas por la firmeza del
yen. Segun pron6sticos las importaciones de bovinos mayores y terneros para engordar procedentes
de Mexico aumentaran acusadamente, como resultado de la devaluaci6n del peso y de la sequoia que
afecta al norte de ese pais. Las previsiones indican que las importaciones canadienses de care vacuna
procedente de pauses que no forman parte del TLC disminuiran a los niveles registrados en 1991/1992.
Las exportaciones argentinas se acrecentaron considerablemente en 1994, sobre todo al Brasil, y se
espera que sigan aumentando en el presente afno, impulsadas por la fuerte demanda del Brasil y por IMA/SPEC/1
Pdgina 7
la baja del consumo interno. La Argentina espera efectuar los primeros envios de care de vacuno
a los Estados Unidos durante el segundo semestre de 1995, utilizando su contingent arancelario por
pais de 20.000 toneladas negociado en la Ronda Uruguay.
20. El excedente comercial de care de bovino de la CE fue de alrededor de 700.000 toneladas
en 1994 y, seguin las previsiones, disminuird considerablemente en 1995 y 1996, como resultado del
aumento de las importaciones y del bajo nivel de las existencias de intervencion. En los contingentes
arancelarios fijados con arreglo a los Acuerdos de Asociaci6n con pauses de Europa Central y Oriental
se preven oportunidades de acceso a los mercados de la Comunidad Europea que representan en total
unas 17.000 toneladas de care de bovino y unas 70.000 toneladas de care de porcino. El representante
de la Comunidad Europea observe que no parecia que los limites mdximos fijados a las exportaciones
subvencionadas de care de bovino fueran a plantear dificultades en los pr6ximos afnos.
21. El representante de Nueva Zelandia y el de Australia pidieron que la Comunidad Europea hiciera
una aclaraci6n con respecto a los reembolsos por exportacion predeterminados en el caso de los envios
efectuados despues del 10 de julio de 1995, fecha en que entran en vigor los compromises de la CE
en materia de reducci6n de las subvenciones a la exportaci6n. El representante de la CE observe que
la Comunidad Europea estaba expidiendo certificados de exportaciones subvencionadas durante mayo
y junio de 1995 para envio despu6s del 10 de julio de 1995, que no se imputarian a los compromises
en materia de reducci6n de las subvenciones a la exportaci6n de la CE, pero que la CE se aseguraria
de que no fueran superiores a las cuantias medias expedidas durante los meses de mayo y junio de
afnos anteriores.
Precios internacionales
22. Se prev6 que los precios de la care de bovino en los mercados asiaticos seguirdn siendo
favorables, aunque se encuentren sometidos a la presi6n de los suministros procedentes de los Estados
Unidos. En los mercados del Atlantico los precios han mejorado de manera considerable durante los
ultimos meses, habiendo alcanzado su nivel mas elevado desde mediados de 1993.
Came de porcino, care de aves de corral y care de ovino
23. En Australia, se espera que la oferta de care de ovino sea escasa en 1995 asi como a mediano
plazo, puesto que los granjeros reconstituyen su cabafna ovina despues de varios afios de liquidaci6n
que fueron consecuencia del hundimiento de los precios de la lana y de la sequoia. Es probable que IMA/SPEC/1
Pagina 8
dicha reconstituci6n tenga por resultado durante el presente afno una disminuci6n de las exportaciones
tanto de came de cordero como de came de oveja. En Nueva Zelandia, se preve que la cabafia ovina
se recupere durante los pr6ximos anios, respondiendo al mejoramiento de los precios de la lana y a
una baja de los precios de came vacuna. En el Jap6n aumentaron las importaciones en porcentajes
de 2 digitos durante el ejercicio fiscal de 1994, en particular en el caso de las importaciones de came
de aves de corral y las de came de porcino refrigerada para consumo como came de mesa.
24. En los Estados Unidos, se prev6 que la expansion relativamente considerable de la producci6n
de came de porcino y de came de aves de corral se desacelere durante el presence afno y en 1996 como
resultado de los costos mds elevados de los productos para la alimentaci6n animal. Es probable que
se registre un fuerte crecimiento de las exportaciones durante los pr6ximos dos aflos, siempre que los
precios internos de los Estados Unidos continuen sometidos a presi6n y que persista la debilidad del
d6lar. Es probable que la producci6n y las exportaciones canadienses de came de porcino aumenten
en 1995. Se pronostica que la producci6n se contraera el pr6ximo anio como resultado de los menores
rendimientos obtenidos por los productores y de los costos mas elevados de los piensos.
25. La Comunidad Europea prev6 que para 1995 continue el crecimiento de la producci6n de aves
de corral y se registre, una reducci6n ciclica de la producci6n de came de porcino y una ligera
disminuci6n de la producci6n de came de ovino. Se prev6 asimismo que las exportaciones de came
de aves de corral y de porcino disminuiran a partir de 1996.
Fecha de la pr6xima reunion
26. La pr6xima reuni6n del CIC tendrd lugar el 11 y el 12 de junio de 1996, fechas sujetas a
confirmaci6n por parte de la Secretarfa. |
GATT Library | pb123yr0264 | Proyecto. Informe (1995) del Comité de Obstáculos Técnicos al Comercio | Acuerdo General Sobre Aranceles Aduaneros y Comercio, October 2, 1995 | General Agreement on Tariffs and Trade (Organization), Comité de Obstàculos Técnicos al Comercio, and Committee on Technical Barriers to Trade | 02/10/1995 | official documents | TBT/Spec/28 and TBT/SPEC/23-28 | https://exhibits.stanford.edu/gatt/catalog/pb123yr0264 | pb123yr0264_92210131.xml | GATT_1 | 343 | 2,282 | ACUERDO GENERAL SOBRE RESTRICTED
TBT/Spec/28
ARANCELES ADUANEROS Y COMERCIO 2 de octubre de 1995
(95-2916)
Comité de Obstàculos Técnicos al Comercio
PROYECTO
INFORME (1995) DEL COMITÉ DE OBSTÁCULOS
TÉCNICOS AL COMERCIO
1. En el presente informe, presentado en virtud de lo dispuesto en el pdrrafo 15.8 del articulo 15
del Acuerdo sobre Obstaculos Tecnicos al Comercio, se exponen las novedades registradas en cuanto
a la aplicaci6n y funcionamiento del Acuerdo desde el informe anterior del Comite, de fecha 30 de
noviembre de 1994 (L/7558).
2. El Acuerdo sobre Obstaculos Tecnicos al Comercio entr6 en vigor el 1° de enero de 1980.
Al 30 de septiembre de 1995, 43 signatarios han aceptado el Acuerdo en virtud del parrafo 15.1 del
articulo 15', y dos lo han aceptado a reserva de ratificacion. En esta cifra se tiene en cuenta que,
el 30 de diciembre de 1994 los Estados Unidos notificaron que denunciaban el Acuerdo documentso
LET/197 1), denuncia que, de conformidad con lo dispuesto en el parrafo 15.11 del articulo 15 del
Acuerdo, surti6 efecto el 28 de febrero de 1995. Hay 23 observadores. Ademans, se invita a asistir
a las reuniones del Comite en calidad de observadores a siete organismos internacionales.
3. El Comite celebr6 su cuadragesima novena, quincuagesima y quincuagesima primera reuniones,
conjuntamente con el Comite de Obstaculos Tecnicos al Comercio de la OMC, los dias 21 de abril
(TBT/M/48), 14 de julio !TBT/M/49) y 20 de octubre (TBT/M/50), respectivamente. En esas reuniones
se formularon declaraciones sobre la aplicaci6n y administraci6n del Acuerdo.
4. En la quincuagesima primera reunion, el Comite llev6 a cabo el decimosexto examen anual
de la aplicaci6n y funcionamiento del Acuerdo, de conformidad con el parrafo 15.8 del articulo 15,
sobre la base de la informacion contenida en el documents TBT/39.
5. En su cuadragesima novena reunion, el Comite mantuvo un debate sobre la terminaci6n del
Acuerdo sobre Obstaculos Tecnicos al Comercio de la Ronda de Tokio.
6. [Se completara, segun sea necesario, despu6s de la quincuagesima primera reunion.]
'No se incluye la antigua Repuiblica Federativa Socialista de Yugoslavia. |
GATT Library | wz207vs2891 | Proyecto : Informe. Corrigendum | Organización Mundial del Comercio, August 28, 1995 | Organización Mundial del Comercio, World Trade Organization, Acuerdo Internacional de la Carne de Bovino, International Bovine Meat Agreement, Consejo Internacional de la Carne, and International Meat Council | 28/08/1995 | official documents | IMA/SPEC/1/Corr.1 and IMA/SPEC/1 + 1/CORR.1 | https://exhibits.stanford.edu/gatt/catalog/wz207vs2891 | wz207vs2891_92230073.xml | GATT_1 | 84 | 567 | ORGANIZACION MUNDIAL
RESTRICTED
IMA/SPEC/1/Corr.1
28 de agosto de 1995
DEL COMERCIO
(95-2487)
Acuerdo Internacional de la Came de Bovino
CONSEJO INTERNACIONAL DE LA CARNE
Proyecto
Informe
Corrigendum
Pagina 7, parrafo 21: sustituiyase el comienzo de la segunda frase por el texto que figura a continuaci6n:
"El representante de la CE observe que la Comunidad Europea estaba expidiendo, a titulo de
medida provisional, certificados de exportaciones subvencionadas durante mayo y junio de 1995 para
posible envio despues del 1° de julio de 1995, que ...." |
GATT Library | qh580yb4272 | Rapport (1995) du Comite des Licences d'Importation du Tokyo Round. Projet | Accord General sur les Tarifs Douaniers et le Commerce, October 2, 1995 | General Agreement on Tariffs and Trade (Organization) | 02/10/1995 | official documents | LIC/Spec/9 and LIC/SPEC/1-9 | https://exhibits.stanford.edu/gatt/catalog/qh580yb4272 | qh580yb4272_92190295.xml | GATT_1 | 606 | 4,463 | RESTRICTED
ACCORD GENERAL SUR LES TARIFS LIC/Spec/9
2 octobre 1995
DOUANLERS ET LE COMMERCE Distribution limit66
(95-2919)
RAPPORT (1995) DU COMITE DES LICENCES
D'IMPORTATION DU TOKYO ROUND
PROJET
1. Le present rapport, pr6sent6 au titre de l'article 5:5 de l'Accord relatif aux procedures en mati6re
de licences d'importation, rend compte des faits nouveaux concernant la mise en oeuvre et l'application
de l'accord survenus depuis le dernier rapport du Comit6 en date du 17 novembre 1994 (L/7556).
2. L'Accord relatif aux procedures en mati6re de licences d'importation est entr6 en vigueur le
ler janvier 1980. Au 12 octobre 1995, l'accord comptait 29 signataires: Afrique du Sud, Argentine,
Australie, Autriche, Bolivie, Canada, Chili, Communatit6 6conomique europ6enne, Egypte, Finlande,
Hong Kong, Hongrie, Inde, Japon, Mexique, Nig6ria, Norv6ge, Nouvelle-Z6lande, Pakistan, Philippines,
Pologne, R6publique slovaque, R6publique tch6que, Roumanie, Singapour, Slov6nie, Su6de, Suisse
et Yougoslavie.' L'Argentine et la Bolivie out sign6 l'accord sous reserve de ratification.
3. Les 31 gouvernements ci-apr6s ont le statut d'observateur aupr6s du Comit6 des licences
d'importation: Bangladesh, Br6sil, Bulgarie, Chine, Colombie, Côte d'Ivoire, Cuba, Equateur,
Etats-Unis, F6d6ration de Russie, Gabon, Ghana, Indon6sie, Isra6l, Jamaïque, Malaisie, Malte,
Nicaragua, P6rou, R6publique de Cor6e, R6publique dominicaine, S6n6gal, Sri Lanka, Taipei chinois,
Tanzanie, Thailande, Trinit6-et-Tobago, Tunisie, Turquie, Venezuela et Zaïre. Deux organisations
internationales (la CNUCED et le FMI) participant aux reunions du Comit6 en qualit6 d'observateur.
Faits nouveaux survenus depuis le dernier rapport du Comit6
4. Au cours de la p6riode consid6r6e, le Comit6 a tenu deux reunions, le 3 mai (LIC/M/36) et
le 12 octobre 1995 (LIC/M/37, qui sera distribut6 ult6rieurement). Depuis l'entr6e en vigueur de
l'accord, le Comit6 a tenu au total 37 reunions ordinaires.2
5. L'annexe ci-apr6s indique l'6tat des r6ponses au questionnaire revues des signataires à ce jour
et publi6es sous forme d'addenda au document L/5640.
6. A sa reunion du 3 mai 1995, le Comit6 a pris acte d'une communication des Etats-Unis par
laquelle ce pays notifiait sa decision de d6noncer l'Accord relatif aux procedures en mati6re de licences
d'importation et de suivre les reunions du Comit6 en qualit6 d'observateur. La d6nonciation de l'accord
a pris effet le 28 f6vrier 1995.
'Ancienne R6publique socialist f6d6rative de Yougoslavie.
2Le document LIC/8 rend compte d'une r6union extraordinaire que le Comit6 a tenue en avril 1985 pour
examiner la mise en oeuvre de l'accord en ce qui concerne les pays en d6veloppement. LIC/Spec/9
Page 2
7. A sa reunion du 12 octobre 1995, [le Comit6 a adopts une decision tendant a mettre fin a
l'Accord du Tokyo Round relatif aux procedures en mati6re de licences d'importation le ler janvier 1996.
La decision donnait aux Parties la possibility, en cas de circonstances imprevues, de repousser la date
d'extinction d'un an au plus (LIC/25)]. LIC/Spec/9
Page 3
ANNEXE
ACCORD RELATIF AUX PROCEDURES EN MATIERE
DE LICENCES D'IMPORTATION
Etat des r6ponses des signataires au questionnaire du GATT
Document
Date de la derni6re
r6sponse
Afrique du Sud
Argentine
Australie
Autriche
Bolivie
Canada
CEE
Chili
Egypte
Finlande
Hong Kong
Hongrie
Inde
Japon
Mexique
Nigeria
Norv6ge
Nouvelle-ZMlande
Pakistan
Philippines
Pologne
R6publique slovaque
R6publique tch6que
Roumanie
Singapour
Slov6nie
Suede
Suisse
L/5640/Add. 17/Rev.4 et Suppl.2
Add.27/Rev. 1
Add. 13/Rev.8
Add.35/Rev.2
Add.51 et Corr.1
Add. 10/Rev .5
Add.21/Rev.1 et Suppl.1-3
et Rev.2 et Suppl.1-2
Add.8/Rev.1 et Suppl.4
Add.37 et Corr.1
Add.6/Rev.3
Add.36/Rev.8
Add.12/Rev.1 et Suppl.2
Add.7/Rev.6 et Corr.1
Add.28 et Suppl.1 et Corr.1
Add.41 et Corr.1
Add.2/Rev.4 et Suppl.1
Add. 18/Rev.3
Add.25 et Suppl. 1
Add.26/Rev.4
Add.39/Rev. 1
Add.38/Rev. 1
Add.38/Rev. 1
Add.32/Rev.2
Add.33/Rev.2
Add. 14/Rev.6
Add. 19/Rev.1 et Suppl.3
Signataire
15.09.94
14.10.94
12.10.94
06.10.94
25.10.93
10.12.93
30.09.91
25.06.91
24.10.86
20.12.93
04.11.94
27.04.90
16.11.94
16.10.89
20.10.87
30.09.94
16.07.93
13.11 .86
19.03.93
23.09.88
27.10.92
27.10.92
30.04.93
31.10.90
11.02.94
25.10.93 |
GATT Library | kx870qv5820 | Rectifications and modifications of schedules annexed to the Marrakesh Protocol : Schedule LXIX - Romania | Preparatory Committee for the World Trade Organization, January 6, 1995 | World Trade Organization- Preparatory Committee | 06/01/1995 | official documents | G/RS/27 and 0009-0040 | https://exhibits.stanford.edu/gatt/catalog/kx870qv5820 | kx870qv5820_90080444.xml | GATT_1 | 171 | 1,118 | PREPARATORY COMMITTEE
FOR THE
WORLD TRADE ORGANIZATION
RESTRICTED
G/RS/27
6 January 1995
(95-0032)
Original: French
RECTIFICATIONS AND MODIFICATIONS OF SCHEDULES
ANNEXED TO THE MARRAKESH PROTOCOL
Schedule LXIX - Romania
The following communications, dated 28 December 1994, has been received from the Permanent
Mission of Romania to GATT.
The Permanent Mission of Romania to the United Nations Office and other international
organizations in Switzerland presents its compliments to the Director-General of GATT and has the
honour to inform him that, on instructions from its Government, it wishes to make the following technical
correction in Part I, Section II, Other Products of Schedule LXIX - Romania annexed to the Marrakesh
Protocol:
In column 3 of tariff heading 4016.99.10 ("--- For technical uses, for use in civil aircraft"),
delete "O (U)" and replace by "O (B)".
If no objection is notified to the Secretariat within thirty days from the date of this document,
the rectifications to Schedule LXIX - Romania will be deemed to be approved and will be formally
issued as a procès-verbal. |
GATT Library | jp140ch7080 | Rectifications and modifications to schedules annexed to the Marrakesh Protocol : Schedule XXXVII - Turkey | Preparatory Committee for the World Trade Organization, January 18, 1995 | World Trade Organization- Preparatory Committee | 18/01/1995 | official documents | G/RS/28 and 0040-0053 | https://exhibits.stanford.edu/gatt/catalog/jp140ch7080 | jp140ch7080_90080454.xml | GATT_1 | 2,813 | 22,478 | PREPARATORY COMMITTEE
FOR THE
WORLD TRADE ORGANIZATION
RESTRICTED
G/RS/28
18 January 1995
(95-0046)
RECTIFICATIONS AND MODIFICATIONS TO SCHEDULES
ANNEXED TO THE MARRAKESH PROTOCOL
Schedule XXXVII - Turkey
The following communication, dated 27 December 1994, has been received from the Permanent
Mission of Turkey.
I would like to inform you of certain rectifications to Schedule XXXVII of Turkey annexed
to the Marrakesh Protocol.
The enclosed lists' indicate the corrections of a technical nature and changes due to modifications
in the Tariff Schedule (national tariff).
I would kindly request to circulate the communication of those changes to all the contracting
parties and express my expectation that if no objection is notified within 30 days from the date of the
Secretariat's communication, the rectifications to Schedule XXXVII - Turkey will be deemed to be
approved.
If no objection is notified to the Secretariat within 30 days from the date of this document the
rectifications to Schedule XXXVII - Turkey will be deemed to be approved and will be formally issued
as a Procès-Verbal.
'French only. G/RS/28
Page 2
LIST 1
Delete/Insert due to technical/typing omissions/mistakes:
Delete
Insert
2835.24
2907.29B1
2917.20
2917.34 Col.3:
Col.4:
2918.23 BII
2920.90
2930.90
2932.90E
2934.90
3003.40 )
3003.90 )
3004.90 )
3105.10C
Col. 3:
Col 4:
3702.44
3702.92BI
3702.94BI
3707.10
3809.92
3810.10
3823.90
3823.90H
3823 .9OHIV:
3911.10
3913.90
3915.90
4001. 10
4009.20
4101.30
photossium
15(B)
13
solicy
--B
--B
III
v
---H.
Ministère de la Santé
et de l'Assistance
Sociale
potassium
heptylrésorane
cycléniques
30(B)
23.2
--D
--C
I
III
--I.
Ministère
de la,
Santé
15(B)
12.5
n'excédant 105 mm
et pellicules
et pellicules
surfaces sensibles
poudres
VIII
stéarates
--B
-autres
vulcanisé
--autres
---I
excédant 105 mm
la sensibilisation des surfaces
ou dans les industries similaires:
poudres à souder
--H autres: (between G and I)
IX
esters d'acides gras
résines d'indène
--D
-d'autres matières plastiques:
prévulcanisé
--B .autres
---Il G/RS/28
Page 3
Delete
4802.51BI
4802.52A
4802.53B
4802.60AI.BI
4804.11 B
4804.11 A
4804. 19A
4804.31 BI
4804.39BI
4804.4 1A
4804.42A
4804.49A
4804.51A
4804.52A
4804.59A
5504.10
5701.90A
5702.49BI
6813.90 Col.4:
6814.90 Col.4:
6902. 10A
6902.20 BlIa
7007.11
7007.21
7103.10
7117.19BIIa
7212.50B
Insrert
) (à l'exclusion du papier journal)
"Kraftner"
)
)
)
)
)
)
)
de pâte de bois
résineux au sulfate:
- de viscose
du no. 65.05
Revêtement de sol en coco
14.1
13.4
) Briques contenant
)
)
7302.10
Col.3:
7304.39
aérodynes
aérodynes
clivés ou débrutés
lunettes en cuivre
IV
V
VI
20(B)
----II.autres:
"Kraftliner"
par des fibres de conifères
obtenues par 1e procédé
chimique au sulfate ou à la soude:
- de rayonne viscose
du no. 56.05
Paillassons en jute ou coco
12-14.1
13.4-14.1
Briques réfractaires contenant
véhicules aériens
véhicules aériens
ou degrossies
lunettes et montres en cuivre
V
VI
VII
--A.
22(B)
---B. autres:
----II.autres
8411.22
8415.81
8419.89
8431.41B
8431.49AIII.a:
8433.40
pour l'aviation
du cycle
--B
B3
84.30B
--b
du cycle thermique
--C
no.84.29
8430. 10B
--B Delete
--a
--a
-Machines ...
flexographiques:
(written just before 8443.19)
---a
---b
--a
--a
--a
--a
---b
---b
--b
--a
--a
--b
----III
-----C.
-----C.
--a.
----C.
----C.
--b.
--b.
40.6
---a.
---a.
Col.4: 30 (radios-réveils)
--b
--a
--b
Insert
--A
--A
---A
---B
--A
--A
--A
--A
---B
--B
--B
--A
--A
--B
----IV
-C.
-C.
(pour aéronefs civils)
--A.
----c.
----c.
--B.
--B.
4.6
6 (aéronefs)-8
(pour aéronefs civils)
(pour aéronefs civils)
---A.
A.
30 (radios-réveils)-
35.6 (autres)
--B
--A
--B
G/RS/28
Page 4
8433.90
8438.80
8443.19
8445.19
8448.19
8456.10
8456.20
8456.30
8456.90
8462.91
8462.99
8468.90
8472.20
8474.10
8479.89B
8501.33AII
8501.63
8502.20
8502.30B
8504.90
8510.90
8511.20
8518.21
8518.22
8519.29
8526.92
8527.32
8528.10
8539.10
Col.4:
Col.4:
Col.4:
Col.4:
Col.4: Delete
8539.90
8540.20
8544.59BIII
8547.90
8714.93
9001.20
9006.99
9014.10
9014.20BI
9015.10
9015.20
9015.30
9015.40
9015.90
9017.10
9017.90
9024.10
9024.80
9026.10
9026.90
90.27
9027.10
9027.80
9027.90
9029.10
9029.20
9031.10
9031.20
--a.
--a
B994
--b
Col.4:
--a
---b
Col.4:
Insert
--A
--A
d'autres
--B
29.6
--A
---B
(pour aéronefs civils)
ou électronique
--A
--B
--a
--b
--a
--b
--a
--b
--a
--A
--A
--B
--A
--A
--a
--a
--b
Col.4:
Col.4:
-a
--a
--a.
--b
--a
--b
micromètres
--a
--b
8.9
8.5
--a
--a
--a
--b
--a
--b
--A
--B
--A
--A
--A
--B
--A
--B
microtomes
--A
--B
8.5-8.9
8.5-8.9
--A
--A
--A
--B
--A
--B
G/RS/28
Page 5 Insert
--A.réveils
--A
--A
----e.
----c.
-A
--A
--B
-B
--A
-A
G/RS/28
Page 6
9103.10
9103.90
9204.10
9405.20
9405.40
9501.00
9603.50
Delete
--réveils
--a
--a
----E.
----C,
-a
--a
--b
-b
--a
-a
9605.00
9608.40
9608.50 G/RS/28
Page 7
LIST Il
Rewrite the following items as indicated below, due to
modifications in the Tariff Schedule:
Numéro Désignation des produits Taux de base Taux Droit de Autres
du tarif de droit consolidé négociateur droits et
(NC/C) du droit primitif impositions
2850.00 Hydrures, nitrures, azodures,
silicures et borures, de constitution
chimique définie ou non:
-A. Hydrures 15 (B) 10.8
-B. Nitrures 15 (B) 10.8
-C. Azodures de sodium et de
plomb 15 (B) 11.5
-D. Silicures 15 (B) 12.5
-E. Borures 15 (B) 11.1
2931.00 Autres composés organo-
inorganiques:
-D.autres:
-I. Composés organo-arséniés 15 (B) 9
-II. Composés organo-mercuriques 15 (B) 12
-III. autres 10 (B) 9
2933.69 --autres:
---A. Atrazine (ISO); propazine
(ISO); simazine (ISO);
hexahydro- 1,3,5-trinitro- 1,3,
5-triazine (hecogéné,
triméthylènetrinitramine):
----II. autres 25 (B) 18.2
---B. autres 25 (B) 18.2
2936.10 Provitamines (non mélangées) 5 (B) 4.9
3701.20 Films à développement et tirage
instantanés:
--B. autres:
---I. insérés dans un boitier 25 (B) 18
3702.32 --autres, comportant une émulsion
aux halogénures d'argent:
--A. d'une largeur n'excédant pas
35 mm 35 (B) 23.1
--B. d'une largeur excédant
35 mm:
----I. Microfilms 35 (B) 23.8
----II. Films pour les arts
graphiques 35 (B) 23.8
----III. autres:
-a. d'une longueur n'excédant
pas 30 m 35 (B) 23.8
-b. d'une longueur excédant
30 m 35 (B) 23.8 G/RS/28
Page 8
Numéro
du tarif
Désignation des produits
3702.38 --autres
3702.51 --d'une largeur n'excédant pas
16 mm et d'une longueur
n'excédant pas 14 m:
-----A. d'une longueur n'excédant
pas 5 m
-----B. d'une longueur excédant
5 m
Taux de base
de droit
(NC/C)
35 (B)
35 (B)
35 (B)
3702.52 --d'une largeur n'excédant pas
16 mnn et d'une longueur excédant
14 m:
----A. d'une longueur n'excédant
pas 30 mm
----B. d'une longueur excédant
30 mm
3702.54 --d'une largeur excédant 16 mm
mais n'excédant pas 35 mm et
d'une longueur n'excédant pas
30 m, autres que pour diapositives
3702.55 --d'une largeur excédant 16 mm
mais n'excédant pas 35 mm et
d'une longueur excédant 30 m
3702.91 --d'une largeur n'excédant pas
16 mm et d'une longueur
n'excédant pas 14 m:
----A. Films pour les arts
graphiques
----B. autres
3702.93 --d'une largeur excédant 16 mm
mais n'excédant pas 35 mm et
d'une longueur n'excédant pas
30 m:
---A. Microfilms; films pour les
arts graphiques
---B. autres
3811.21 --contenant des huiles de pétrole
ou de minéraux bitumineux
3811.29 --autres
3811.90
4002.11
-autres
--Latex:
---A. Latex synthétiques, destinés
à la fabrication et au
reconditionnement
(rechappage) des
pneumatiques et des
chambres à air pour ...
Droit de
négociateur
primitif
Autres
droits et
impositions
Taux
consolidé
du droit
23.8
23.1
23.1
35 (B)
35 (B)
35 (B)
35 (B)
35 (B)
35 (B)
35 (B)
35 (B)
25 (B)
25 (B)
25 (B)
23.1
23.1
23.1
23.1
23.8
23.1
23.8
23.1
17.1
17.3
17.3 G/RS/28
Page 9
Numéro Désignation des produits Taux de base Taux Droit de Autres
du tarif de droit consolidé négociateur droits et
(NC/C) du droit primitif impositions
... véhicules à moteur de
toutes sortes (sous réserve des
conditions et qualités à
déterminer par le Ministère de
l'Industrie et du Commerce) 10 (B) 6
---B. autres 20 (B) 12
4802.20 -Papiers et cartons supports pour
papiers ou cartons photosensibles,
sensibles à la chaleur ou
électrosensibles:
--B. Cartons 50 (B) 33.6
4909.00 Cartes postales imprimées; cartes
imprimées comportant des voeux
ou des messages personnels, même
illustrées, avec ou sans
enveloppes, garnitures ou
applications:
-A. Cartes postales imprimées ou
illustrées:
--I. Cartes postales illustrées 40 (B) 26.6
6812.10 -Amiante travaillé, en fibres:
mélangés à base d'amiante et de
carbonate de magnésium 20 (B) 13.8
6812.90 autres:
--A. destinés à des aéronefs civils 20 (B) 12
--B. autres
---Il. autres 20 (B) 14.8
7002.10 -Billes 25 (B) 17
7002.31 -- en quartz ou en autre silice
fondus:
----B. autres 25 (B) 17
7002.32 -- en autres d'un coefficient de
dilatation linéaire n'excédant pas
5X10-6 kelvin entre 0°et 300°:
---B. autres 25 (B) 17
7002.39 -- autres
----B. autres 25 (B) 17
7013.10 -Objets en vitrocérames:
--A. Objets en verre pour le
service de la table ou de la
cuisine 50 (B) 34.8
7211.41 --contenant en poids moins de
0.25% de carbone:
---B. d'une largeur n'excédant pas
500 mm:
----Il. autres G/RS/28
Page 10
Numéro Désignation des produits Taux de base Taux Droit de Autres
du tarif de droit consolidé négociateur droits et
(NC/C) du droit primitif impositions
a. dits "magnétiques":
------1. Feuillards 30 (B) 20.1
-----b. autres:
------1. Feuillards 30 (B) 20.1
7212.40 -peints, vernis ou revêtus de
matières plastiques:
--B. autres:
---I. d'une largeur excédant
500 mm:
----b. autres:
-----2. autres tôles 30 (B) 20
---Il. d'une largeur n'excédant pas
500 mm:
----b. autres:
-----2. autres 30 (B) 20. 1
8433.51 --A. Moissonneuses-batteuses 10 (B) 7.4
8443.11 --alimentés en bobines 5 (B) 4.2
8443.21 --alimentés en bobines 5 (B) 4.2
8443.29 --autres 5 (B) 4.2
8443.30 -Machines et appareils à imprimer,
flexographiques 5 (B) 4.2
8443.50 -autres machines et appareils à
imprimer
--A. Machines rotatives:
---II. autres 5 (B) 4.2
--B. autres:
---II. autres 5 (B) 4.2
8443.90 -Parties:
--B. autres:
---Il. autres 5 (B) 4.2
8474.90 -Parties:
--A. coulées ou moulées en fonte,
fer ou acier:
---I. pour les machines et
appareils à trier, cribler,
séparer ou laver les minerais 5 (B) 4.2
---Il. autres 25 (B) 16.2
--B. autres:
---I. pour les machines et
appareils à trier, cribler,
séparer ou laver les minerais 5 (B) 4.2
---Il. autres 25 (B) 16.2
8503.00 Parties reconnaissables comme
étant exclusivement ou
principalement destinées aux
machines des n's 85.01 ou 85.02: G/RS/28
Page 11
Numéro Désignation des produits Taux de base Taux Droit de Autres
du tarif de droit consolidé négociateur droits et
(NC/C) du droit primitif impositions
-A. Frettes amagnétiques 20 (B) 13.8
-B. autres:
--I. coulées ou moulées en fonte,
fer ou acier:
--a. Parties de moteur pour jouets 50 (B) 31.8
--b. autres 20 (B) 13.8
--II. autres:
---a. Parties de moteur pour jouets 50 (B) 31.8
---b. autres 20 (B) 13.8
8517.90 -Parties:
--B. autres:
---I. d'appareils pour la téléphonie:
----a. Parties électroniques
assemblées:
-1. pour appareils de téléphone 18 (B) 13.8
----b. autres:
-----1. pour appareils de téléphone 18 (B) 13.8
8528.20 -en noir et blanc ou en autres
monochromes 50 (B) 35.6
8544.49 -- autres:
---B. isolés avec d'autres matières:
----1. pour la télécommunication:
----a. Câbles souterrains et sous-
marins (constitués de deux
ou plusieurs câbles isolés
individuellement avec une
matière quelconque et
insérés dans un même tube
ou une même gaine en
métaux communs) 50 (B) 32.6
8607.19 -- autres, y compris les parties:
---B. Bogies, bissels, y compris
les parties de leurs
similaires 5 (B) 4.5
8608.00 Matériel fixe de voies ferrées ou
similaires; appareils mécaniques
(y compris électromécaniques) de
signalisation, de sécurité, de
contrôle ou de commande pour
voies ferrées ou similaires,
routières ou fluviales, aires ou
parcs de stationnement,
installations portuaires ou
aérodromes: leurs parties:
-A. Matériel fixe et appareils pour
voies ferrées:
--I. à moteurs électriques 20 (B) 13.8
-B. autres matériels:
--I. pour appareils à moteurs 20 (B) 13.8 G/RS/28
Page 12
Numéro Désignation dcs produits Taux de base Taux Droit de Autres
du tariff de droit consolidé négociateur droits et
(NC/C) du droit primitif impositions
-C. Parties:
--1. en fonte:
---a. pour appareils à moteurs
électriques 20 (B) 13.8
8703.22 --d'une cylindrée excédant
1,000 cm3 mais n'excédant pas
1,500 cm3:
---A. neufs
----I. caravanes automotrices 25 (B) 19
----Il. autres:
-b. autres 25 (B) 19
---B. usagés:
----Il. autres 25 (B) 19
8703.23 --d'une cylindrée excédant
1,500 cm3 mais n'excédant pas
3,000 cm3:
---A. neufs
----I. caravanes automotrices 25 (B) 19
----II. autres:
-----b. autres 25 (B) 19
---B. usagés:
----Il. autres 25 (B) 19
8703.32 --d'une cylindrée excédant
1,500 cm3 mais n'excédant pas
2,500 cm3:
---A. neufs
----I. caravanes automotrices 25 (B) 19
----Il. autres:
-----b. autres 25 (B) 19
---B. usagés:
----II. autres 25 (B) 19
8703.33 --d'une cylindrée excédant
2,500 cm3:
---A. neufs
----I. caravanes automotrices 25 (B) 19
----II. autres:
-----b. autres 25 (B) 19
---B. usagés:
----II. autres 25 (B) 19
8708.99 --autres:
---A. destinés à l'industrie du
montage: des motoculteurs du
n* 8701.10, des véhicules
automobiles du n' 87.03, des
véhicules automobiles du n' 87.04
à moteur à piston à allumage par
compression (diesel ou semi-
diesel), d'une cylindrée n'excédant
pas 2,500 cm3 ou avec moteur à
piston à allumage par étincelles G/RS/28
Page 13
Numéro Désignation des produits Taux de base Taux Droit de Autres
du tarif de droit consolidé négociateur droits et
(NC/C) du droit primitif impositions
d'une cylindrée n'excédant pas
2,800 cm3, des véhicules
automobiles du n 87.05:
1. des motoculteurs du
n' 8701.10:
-a. Parties de chassis 5 (B) 4.9
----b. autres 25 (B) 17
----Il. autres:
-a. Parties de chassis 10 (B) 8
-b. autres 25 (B) 17
---B. autres:
----I. Barres stabilisatrices 25 (B) 17.8
----Il. Barres de torsion 25 (B) 17.8
----111. autres:
-----a. en acier estampés:
------I. des tracteurs du n'. 87.01:
-------bb. autres 25 (B) 17.8
------2. autres:
-------aa. parties de chassis 10 (B) 8.8
------bb. autres 25 (B) 17.8
-----b. autres:
------1. des tracteurs du n' 87.01:
-------bb. autres 25 (B) 17.8
------2. autres:
-------aa. parties de chassis 10 (B) 8.8
-------bb. autres 25 (B) 17.8
8802.20 -Avions et autres véhicules aériens,
d'un poids à vide n'excédant pas
2,000 kg.:
--A. civils:
---Il. autres
----a. Avions pour le transport des
personnes 5 (B) 3
8802.30 -Avions et autres véhicules aériens,
d'un poids à vide excédant à
2,000 kg. mais n'excédant pas
15,000 kg.:
--A. civils:
---Il. autres
----a. Avions pour le transport des 5 (B) 3
personnes
8802.40 -Avions et autres véhicules aériens,
d'un poids à vide excédant
15,000 kg.:
--A. civils:
----a. Avions pour le transport des
personnes 5 (B) 3
90.08 Projecteurs d'images fixes;
appareils photographiques
d'aggrandissement ou de réduction: G/RS/28
Page 14
Numéro Désignation des produits Taux de base Taux Droit de Autres
du tarif de droit consolidé négociateur droits et
(NC/C) du droit primitif impositions
90.10 Appareils et matériels pour
laboratoires photographiques ou
cinématographiques (y compris les
appareils pour la projection des
tracks de circuits sur les surfaces
sensibilisées des matériaux semi-
conducteurs), non dénommés ni
compris ailleurs dans le présent
chapitre; négatoscopes; écrans
pour projection:
9010.10 Appareils et matériel pour le
développement automatique des
pellicules photographiques, des
films cinématographiques ou du
papier photographique en rouleaux
ou l'impression automatique des
pellicules développées sur des
rouleaux de papier photographique:
A. Appareils et matériel utilisés
dans des laboratoires
photographiques
35 (B) 23
9025.19 -- autres:
---B. autres:
----I. électroniques 10 (B) 8.9
----Il. autres:
-----a. électriques 10 (B) 7.7
-----b. autres:
------1. Pyromètres 5 (B) 4.6
9025.80 -- autres instruments:
.---B. autres:
----I. électroniques 10 (B) 8.9
----Il. autres:
-----a. électriques 10 (B) 7.8
9025.90 -Parties et accessoires:
--A. destinés à des aéronefs civils:
---I. électroniques ou électriques 10 (B) 8.8
----Il. autres 5 (B) 3
---B. autres:
---I. électroniques ou électriques 10 (B) 8.8
9031.80 -autres instruments, appareils et
machines:
-A. destinés à des aéronefs civils:
---I. électriques ou électroniques 10 (B) 6
----II. autres 25 (B) 15
---B. autres:
---I. électroniques 10 (B) 8.9
----Il. autres:
----a. pour la mesure ou le
contrôle de grandeurs
géométriques: G/RS/28
Page 15
Numéro Désignation des produits Taux de base Taux Droit de Autres
du tarif de droit consolidé négociateur droits et
(NC/C) du droit primitif impositions
1. Calibres dépourvus
d'organe réglable:
------aa. électriques 10 (B) 8.3
------bb. autres 25 (B) 17.3
----2. autres:
------aa. électriques 10 (B) 8.3
------bb. autres 25 (B) 17.3
9608.20 -Stylos et marqueurs à mâche
feutre ou à autres pointes poreuses
--A. en matières plastique 40 (B) 26.9 G/RS/28
Page 16
LIST III
Delete/Insert due to modifications in the 'Tariff Schedule:
The following items should be deleted from the offer list:
3809.99 B
4001.30 A
5801.21
5801.31
6217.90 AI,C
7005.10
7005.21
7005.29
7604.10
9113.90 CIIIa
The following additional items should be inserted to the offer list:
Col. 3 Col.4
3809.93 -- des types utilisés dans l'industrie du cuir
ou dans les industries similaires:
---B. autres 20 (B) 14.5
6215.10 - de soie ou de déchets de soie:
--A. Tissus découpés en forme sur patron
pour la confection de cravates 100 (B) 40
6215.20 - de fibres synthétiques ou artificielles:
--A. Tissus découpés en forme sur patron
pour la confection de cravates 100 (B) 40
6215.90 - d'autres matières textiles:
--A. Tissus découpés en forme sur patron
pour la confection de cravates 100 (B) 40 |
GATT Library | sg122yx6986 | Reouest by the Republic of Croatia, for observer status in WTO bodies | World Trade Organization, January 20, 1995 | World Trade Organization and World Trade Organization General Council | 20/01/1995 | official documents | WT/L/18 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/sg122yx6986 | sg122yx6986_90080583.xml | GATT_1 | 140 | 845 | WORLD TRADE
ORGANIZATION
RESTRICTED
WT/L/18
20 January 1995
(95-0113)
GENERAL COUNCIL
31 January 1995
REOUEST BY THE REPUBLIC OF
CROATIA, FOR OBSERVER STATUS IN WTO BODIES
The following communication, dated 19 January 1995, has been received by the permanent
Mission of the Republic of Croatia to the United Nations Office at Geneva.
I have the honour to inform you that the Republic of Croatia requests the observer status at
the Ministerial Conference, General Council of the World Trade Organization and its subsidiary bodies.
Allow me to remind you that the Republic of Croatia is in the process of accession to the WTO
and that it enjoys the observer status to the GATT since May 1993.
I would kindly ask that the General Council examines our request and takes a positive decision
at its next meeting on 31 January 1995.
. |
GATT Library | vv368jm5051 | Report of the Meeting held on 16 December 1994 : Note by the Secretariat | Preparatory Committee for the World Trade Organization, February 22, 1995 | World Trade Organization- Preparatory Committee and Sub-Committee on Services | 22/02/1995 | official documents | PC/SCS/M/6 and 0342-0367 | https://exhibits.stanford.edu/gatt/catalog/vv368jm5051 | vv368jm5051_90080796.xml | GATT_1 | 4,621 | 29,333 | RESTRICTED
PREPARATORY COMMITTEE PC/SCS/M/6
FOR THE 22 February 1995
WORLD TRADE ORGANIZATION
(95-0367)
SUB-COMMITTEE ON SERVICES
REPORT OF THE MEETING HELD ON 16 DECEMBER 1994
Note by the Secretariat
1. The Sub-Committee on Services held its sixth meeting on 16 December 1994. The agenda
for the meeting is contained in Airgram PC/AIR/52. In addition, under Other Business, the Chairman
reported on the meeting of the Negotiating Group on Basic Telecommunications which was held on
12 and 13 December 1994. The Sub-Committee agreed to take up Item A on the Agenda at the end
of the meeting.
Item B: Verification of Schedules
2. The Chairman indicated that an informal meeting of the Sub-Committee had been held on
15 December 1994 for the purpose of verifying schedules of commitments on which negotiations had
been concluded. That exercise had essentially been one of clarification with respect to the technical
accuracy of schedules as a reflection of the agreed results of negotiations as well as their consistency
with the agreed Guidelines for the Scheduling of the Commitments. The meeting was not concerned
with the substance of the commitments. Eight schedules had been examined, namely those of St. Kitts &
Nevis. United Arab Emirates, Mali, Angola, Qatar, Burundi, Ecuador and Slovenia. Of these, the
schedules of Ecuador and Slovenia were verified; in the case of the other six it was made clear that
bilateral negotiations were not completed. The verification of these wilI take place after the negotiations
are concluded.
3. As for individual schedules, the Chairman stated that Ecuador's schedule was verified and would
be submitted to the Preparatory Committee for its approval at its meeting on 21 December 1994.
Similarly, Slovenia's schedule was verified ad referendum to the meeting of its accession Working
Party on 19 December 1994. The schedule would also be submitted to the Preparatory Committee
for approval. In the cases of Burundi and Mali, which are least developed countries, bilateral
negotiations on the substance of their schedules would continue into 1995. The deadline for the
submission for their schedules is 15 April 1995. In the case of the other countries which had become
contracting parties to the GATT in 1947 pursuant to Article XXVI.5(c), namely; St Kitts & Nevis,
Angola, United Arab Emirates and Qatar, substantive negotiations would also continue on their schedules
into 1995. In this context the Chairman referred to ongoing work in the Preparatory Committee
concerning a draft decision to extend the negotiating period until the end of March 1995. The Secretariat
was asked to bring these developments to the attention of those countries which have submitted schedules
for verification but were not present at the meeting.
4. The Sub-Committee took note.
Item C: Other Business
5. The Chairman reported that the Negotiating Group on Basic Telecommunications had held
its fourth meeting on 12 and 13 December 1994. The group had approved a request for observer status PC/SCS/M/6
Page 2
from the Republic of Slovenia. As a result, the number of Governments participating in the negotiations
remained at 25 and the number of Governments participating as observers increased to 28. The group
continued to review participants' responses to the questionnaire on Basic Telecommunications: it had
completed the review of the 20 responses submitted thus far. The group had also discussed outstanding
technical and conceptual issues related to the negotiating and scheduling of commitments. Subsequent
meetings of the group will focus on those issues. It had been agreed that the date of the next meeting
of the group would be 27-28 February 1995 followed by bilateral consultations between delegations
for the remainder of the week.
Item A: Issues relating to the Scope of the GATS
6. The Chairman recalled that at the first meeting of the Sub-Committee held on 15 July 1994,
it was agreed that issues relating to the scope of the GATS should be a matter of priority to the
Sub-Committee and he had been requested to start a process of informal consultations on the subject.
The statement of the Chairman of the GNS of 14 December 1993 had stated that the result of the
consultations would be reported to the Council for Trade in Services for appropriate decision.
Accordingly, the Chairman of the Sub-Committee now submitted a draft report on the consultations
for adoption by the Sub-Committee. The draft report had been subject to informal consultations prior
to its submission at the formal meeting. Those consultations had revealed disagreement over the last
sentence in paragraph 7 which read: "Accordingly, it has not been possible to reach agreement as to
whether they are within or outside the scope of the Agreement". Nevertheless he was submitting the
report as it stood in the hope that after further consideration, delegations would be able to approve
it. The Chairman indicated that he was convinced that the draft report as it stood did not prejudice
the position of any delegation. However, he would welcome any proposed language that would be
acceptable to all Members of the Sub-Committee.
7. The representative of Australia expressed his support for the draft report submitted by the
Chairman. However, in an attempt to facilitate its adoption, he proposed an alternative language to
that of the last sentence of paragraph 7 of the draft report which read: "Accordingly, as far as these
measures are concerned, it has not been possible to reach agreement on the issues which have been
the subject of consultations in the Sub-Committee". The Chairman then invited delegations to comment
on this proposed language.
8. The representative of the European Communities took the view that the draft report submitted
by the Chairman as it stood was an accurate reflection of the situation and should therefore be adopted
by the Sub-Committee. Her delegation was not ready to engage in any redrafting exercise anymore.
9. The representative of Sweden speaking on behalf of the Nordic countries, agreed with the
statement made by the representative of the European Communities. He, as well as the representatives
of Switzerland and Japan, supported the draft report submitted by the Chairman as it stood.
10. The representative of India stated that his delegation had serious problems with the last sentence
of paragraph 7 of the draft report submitted by the Chairman. Therefore, he could not agree to its
adoption by the Sub-Committee as it stood. On the other hand, he expressed support for the alternative
language proposed by the delegation of Australia.
11. The represcntatives of Hungary, Brazil, New Zealand, Canada, Argentina and Korea supported
the adoption of the draft report submitted by the Chairman. They also expressed their willingness
to accept the alternative language proposed by Australia for the last sentence of paragraph 7.
12. The Chairman concluded that it did not seem possible that a consensus could be achieved on
alternative language for the last sentence of paragraph 7. Consequently, the draft report could not PC/SCS/M/6
Page 3
be adopted by the Sub-Committee. He would therefore make a report to the Preparatory Cornmittee
and, eventually, to the Council for trade in services on his own responsibility.
13. The representative of Pakistan stated that the issue of the scope of the GATS had been deliberated
at length for years. It had also been the subject of very spirited discussions during the course of 1994
on the basis of the statements of 10 December and 14 December 1993 by the Chairman of the GNS.
During the entire course of those discussions, delegations had participated in the spirit of accommodation
and cooperation. He expressed satisfaction that an agreement had been reached on measures relating
to judicial administrative assistance and measures relating to the entry and stay of Natural Persons.
His delegation was sorry that it had not been possible to reach a common understanding on the other
three categories of measures. He recalled that the GATS "applies to measures by members affecting
Trade in Services". It followed from this that the Agreement extends to all measures, unless it had
been expressively provided to exclude some from its scope. This was reflected in Document
MTN.GNS/W/177.Rev. 1 where it states that paragraph 1 of Article 1 of the GATS was formulated
in an inclusive sense and not in an exclusive fashion, which could be seen as an indication that the
intent of the negotiations had been to widely cover any measure which affects Trade in Services. The
statement by the Chairman of the GNS on 14 December 1993 was also, in essence, a confirmation
of that understanding,. Therefore, it should be assumed that the coverage of the GATS with respect
the measures affecting trade in services is, and has to be, universal unless otherwise decided or provided
for.
14. The representative of Pakistan also stated that it was essential to preserve the unity and integrity
of the GATS. Any attempt to interpret its provisions before their entry into force would only diminish
its value and the commitment of participants to it. In the absence of an agreed common understanding
on the outstanding issues, the only alternative was to accept the disagreement and reflect it in the report
of the Sub-Committee. That report would not prejudice any position. Any future problems arising
out of the implementation of the Agreement would be dealt with by the mechanism available under
the WTO.
15. The representative of Sweden, speaking on behalf of the Nordic countries, stated that the
unresolved issues relating to the scope of the GATS outlined in Document MTN/GNS/W/177/Rev. 1
had been there for a long time in the services negotiations. The Nordic countries had referred to those
issues on many occasions during the negotiations, and their position had always been that those measures
fell outside the scope of the GATS. Despite the willingness of the Nordic countries to engage in
discussions on the matter, the problem could not be solved in the process leading to the submission
of the draft Final Act in December 1991. Further attempts were made in 1992 and 1993, but the results
were not conclusive. During the negotiations, the Nordic countries had consistently reserved their
position on this matter. The representative of Sweden recalled that the revised MFN Exemption List
submitted by Finland in early December 1993 had stated that: "Over the past years, the Nordic countries
have repeatedly raised questions concerning to what extent MFN exemptions have to be taken for certain
measures, such as those contained in social security agreements. Our initial list of MFN exemptions
reflected this uncertainty. The Nordic countries continue to have questions concerning those measures,
and we believe that they are best dealt with through collective solutions. Due to lack of time, we are
as well ready to seek procedural solutions which would allow us to address these questions properly
at a later stage. However, Finland will not extend benefits contained in e.g. social security agreements
on an MFN basis."
16. The representative of Sweden added that the same, or very similar statements were contained
in corresponding submissions by the other Nordic countries. In addition, the Nordic countries had
reserved the right to revert to the issue of social security measures in their schedules of commitments
in the absence of a collective understanding providing for legal certainty. He then referred to the
statements made in documents MTN.TNC/W/62/Rev.4 for Finland, MTN.TNC/W/74/Rev.3 for Iceland, 95-0367 MF
95-0368 MF
95-0369 MF
95-0370 MF
95-0371 MF
E F S
E F S
E F S
E F S
E F S
PC/SCS/M/006
WT/Let/0008
WT/L/0049
G/TBT/Notif.95.047
G/TBT/Notif.95.048
(Marakesch Agreement) PC/SCS/M/6
Page 4
MTN.TNC/W/63/Add. 1/Rev.4 for Norway and MTN.TNC/W/59/Rev.4 for Sweden. Without prejudice
to the final outcome on the matter, Finland and Sweden had introduced National Treatment reservations
for social security measures in their respective draft schedules. Against that background, it was clear
that the uncertainly regarding the measures referred to in document MTN.GNS/W/177/Rev. I had created
difficulties for the Nordic countries during the negotiations in 1993. Therefore. the Nordic countries
had welcomed the statement of the Chairman of the GNS dated 14 Dece number 1993 (MTN .GNS/W/260),
which provided more time to consider the matter with a view to reaching a comninon understanding
on the issues. After the Chairianli had made that statement in the meeting of the GNS of 14 Decenmber,
the spokesiman for the Nordic countries declared that those of them that had introduced National
Treatimient reservations for social security measures would withdraw their reservations in order not
to prejudge the outcome of the discussions. That action was taken in good faith. In addition, the Nordic
countries had refrained fronm filing MFN exemptions on measures referred to in the Chairman's statement.
He added tlit the discussion [ad clearly shown that most delegations had concluded that the unresolved
measures listed in document MTN.GNS/W/1 77/Rev. I fell outside the scope of the GATS. The Nordic
countries realised that it had not been possible to reach a better comninon understanding of the ways
in which those measures affect trade in services and therefore to agree on whether they fall within
or outside the scope of' the GATS. Against that background the Nordic countries maintained their
position that the measures concerned fell outside the scope ot the GATS.
17. The representative of Switzerland recalled that during the Uruguay Round negotiations it hiad
not been possible to achieve agreement on whether, and if so the extent to which, certain types of
nicasures identified in document MTN.GNS/W/177/Rev. I were within or outside the scope of the GATS.
As a result the Chairman of the GNS had issued a formal statement (MTN.GNS/49) on
10 December 1993 assuming that participants would refrain from taking issues arising in this area to
dispute settlement. The Chairnian had also stated that participants niust assume their owin responsibilities.
Subsequently, at the GNS meeting on 14 December 1993 it was agreed by all participants that an
additional period of tire up to 15 December 1994 would be provided for further consultations with
a view to reaching a better common understanding of the ways in which measures of tcis kind may
affect Trade in Services. The result of this work was to be reported to the Counicil for Trade and
Services for appropriate decision (MTN.GNS/W/260). In view of this decision, and in order not to
prejudge subsequent discussions, Switzerland had refrained from tabling MFN exemptions relating
to social security measures in its final submission on 15 December 1993 (MTN.GNS/W/21 1/Rev.2).
Switzerland's previous submission dated 12 December 1993 (MTN.GNS/W/21 1 /Rev. 1) lhad contained
the following statement: "At present no exemption is submitted for measures taken under statutory
systems of social security. Switzerland reserves the right to examine these measures in light of the
approach taken by other participants". In spite of extensive consultations during 1994, there were
still several categories of measures, in particular those relating to social security, on which it had not
been possible to arrive at a common understanding on whether the; feil within or outside the scope
of the Agreement. In the absence of a common agreed understanding there continued to be no basis
on which participants could exercise responsibilities. The task agreed on 14 December 1993 remained
unfinished. The representativc of Switzerland stressed the willingness of his delegation to continue
work on the outstanding issues with a view to reaching substantive solutions meeting the concerns of
all participaetv.
18. The representative of Japan stated that in spite of his delegation's appreciation for the work
done so far, it was regrettable that it had not been possible to reach a common understanding on the
outstanding issues, including social security, which would have enabled delegations to assume their
responsibilities. He reiterated Japan's position that social security measures should be considered outside
the scope of the GATS since those measures would not substantially affect trade in services. He stated
that there was a need to continue multilateral work on those issues. In the meantime, delegations were
not able to assume their responsibilities concerning their schedules and MFN Exemption lists. PC/SCS/M/6
Page 5
19. The representative of Austria stated that his country had included in its draft MFN Exemptions
on 13 December 1993 a list of "measures relating to the preferential use of social security schemnes
as well as measures relating to investment protection". Subsequently, in the light of the Chairnian's
statement of 14 December 1993, and in order to avoid prejudging the results ofthe consultations, Austria
liad withdrawn those reservations. He expressed the disappointment of his delegation with the outcome
of the consultations, as well as the inability of the Sub-Committee to adopt the draft report submitted
bk the Chairiiian. He also stated that his delegation was still convinced that all five categories of
measures referred to in iie Note by the Secretariat (MTN.GNS/W/177/Rev. 1) were outside the scope
of the GATS and therefore it reserved its rights.
20. Tlhe representative oflthe European Communities stated that lier delegation would like to reserve
its rights to comment on the Chairman's draft report at the meeting of the Preparatory Committee on
2 1 December. She regretted the fact that it was neither possible to achieve a better common
understanding of the issues, nor to agree on the adoption of a report of the Sub-Comnmnittee. What
had struck lier delegation throughout the process of consultations was that it had not been possible
to reach a conclusion or a better comimion understanding despite the fact that tiere had been a large
majority of countries that believed that the measures in question were outside the scope of the GATS.
Her delegation was among those. They had participated seriously in the consultations, presenting
substantive arguments and concrete examples demonstrating how a number of those measures miglit
affect trade in services, rather than approaching the matter from a rhetorical and dogmatic point of
view. As a result of that work, it had been possible to build up a large majority which came to the
samne conclusion that these measures did not affect trade in services and therefore were outside the
scope of the GATS. Since it [ad not been possible to reach an agreed conclusion, the fundamental
question of whetlîer these measures were inside or outside the scope of the GATS remained unsettled;
there was therefore no legal basis to assume that they were inside the scope of the Agreement. It was
on thlat basis that lier delegation had not taken MFN exemptions or reservations fromn National Treatment
at the end of the Round. The legal situation remained unchanged. lier delegation reserved its position
and would take up the matter further in the Preparatory Committee.
2 1. Tlie representative of India stated that it was important to outline the historical background
to the issues relating to the scope of the GATS. This issue had been subject to discussion before 1993,
but it had not then been possible to agree on a common understanding. At a formal meeting of the
GNS on I October 1993, that the Chairman had invited delegations to submit to the Secretariat questions
relating to the scope of the GATS. On the basis of those questions the Secretariat had prepared the
Note in Document MTN.GNS/W/ 177/Rev. I dated 4 November 1993. India had not been a party to
those questions and thought at the time that it was extremely inappropriate to raise questions of such
a kind as to cast doubts on the very scope of the GATS. The delegation of India nevertheless took
note of the document prepared by the Secretariat and participated in the discussions tlhat ensued. On
11 December 1993 the Chairman lhad made a statement, following consultations on the subject, making
it clear that pending further clarifications of issues relating to the scope of the GATS, participants must
assume their own responsibilities in deciding whether any measures that they maintain should be
scheduled or made the subject of MFN exemptions. The only other qualification in the statement was
an encouragement in the form of best endeavours to delegations to show restraint with regard to MFN
exemptions and Dispute Settlement. In so far as the statement of 14 December 1993 was concerned,
the manner in which it had been introduced and adopted could be questioned. Nonetheless, the delegation
of India had accepted the statement in good faith and participated in the discussions that took place
during the period of one year which ended on 15 December 1994. The representative of India did
not agree with those delegations that claimed tîat the statement of 14 December, coming as it did so
soon after that of 1 1 December, somehow caused participants to retlhink and refrain from assuming
their own responsibilities. In any case, the statement of 14 December in no way superseded the statement
of 11 December. It merely gave extra time to participants with a view to reaching a better common PC/SCS/M/6
Page 6
understanding on the ways in which certain measures affect trade in services. He stated that any other
interpretation of those two statements would be inconsistent with both the letter and spirit of the GATS
itself.
22. He added that the delegation of India had approached the consultations in good faith but had
been clear fromt the very beginning that the following fundamental objectives could not be compromised:
(1) that the integrity of the GATS must not be undermined in any way, (2) that MFN and National
Treatmiient are unassailable principles and cannot become a matter of convenience and, (3) that it would
set a dangerous precedent to try to interpret the GATS even before it entered into force. It was against
this background that the Indian authorities had carefully considered the issues relating to the types of
measures referred to in document MTN.GNS/W/177/Rev. 1. After deliberation and reflection, it seemed
clear that it would be impossible to say with any degree of certainty that any of those types of measures
are not measures affecting trade in services. Througliout the consultations some participants liad
persistently sought legal cover for measures they maintained which were inconsistent with the GATS
rather than making a good-faith effort to find ways in which such measures could be brouglht into
contformiiity with it. The GATS, like other Agreements resulting from the Uruguay Round. was a leap
of faitlh for al participants. Members must make their own judgement and assume their own
responsibilities.
23. The representative of India also stated that his delegation could not associate itself with any
statement which gave an impression that there were doubts concerning the scope of the GATS. The
consultations had shown that there were profound divergences on this matter which were more likely
to increase than decrease if this kind of discussion were to continue. The expiry of the deadline of
15 December 1994 exhausted the mandate given by the Chairman's statement of 14 December 1993.
Members were free to raise any issues in the Counicil for Trade in Services under the WTO within
the rights and obligations of the GATS. Even if this should happen, it should be delinked from tne
consultation process which ended on 15 December.
24. The representative of Australia, speaking on behalf of Australia and New Zeptland stated that
towards the end of the Uruguay Round, there had been much uncertainty amongst delegations about
the extent to which certain categories of measures identified in MTN.GNS/W/177/Rev. 1 feil within
the scope of the GATS. As a result, the Chairman of the GNS issued a statement at an informal meeting
on 10 Decembei 1993 in which he noted that the consultations which had been taking place on those
measures had relevance for their scheduling and for the question of MFN exemptions (MTN.GNS/49).
He recalled that there had been a widespread concern at that time that in the absence of some shared
understanding about how such measures related to the scope of the GATS, which could form the basis
for al] participants to take their own responsibilities in respect of all avenues then open to them,
precautionary decisions by some delegations to schedule Article XVII reservations and MFN Exemptions
would have been c.uplicated by others leading to the "telephone book" scenario which most delegations
wished to avoid. It was in this context that the Chairman, in issuing his 10 December 1993 statement,
urged participants to exercise restraint. After consulting with concerned delegations, the Chairman
issued a subsequent statement on 14 December 1993 providing an additional period for further work
to be done to arrive at a clear understanding of the ways iii which the categories of measures identified
in MTN.GNS/W/177/Rev. I may affect trade in services. It had been noted that the results of that
work would be reported to the Services Council for an appropriate decision. That statement had the
intended effect, nearly all delegations either withdrawing their existing draft reservations/exemptions
or withholding such entries which they had intended to table on the final day of the negotiations,
15 december 1993.
25. He added that pursuant to the 14 December 1993 text, the Sub-Committee had engaged in
intensive work, particularly in informal session, in seeking to reach a common understanding whicli
would serve as a basis for participants to assume their responsibilities. While a better understanding PC/SCS/M/6
Page 7
had been achieved on a number of issues, it was regrettable that there remained several categories of
measures, including those relating to social security, on which it had not yet been possible to arrive
at an agreed conimion understanding of the ways in which measures of this kind might affect trade in
services. In the absence of such an understanding, there continued to be no basis on which delegations
could exercise responsibilities. Tlle task set by the GNS Chairmnan in his 14 December 1993 statement,
in order to give effect to the intention of that elernent of' the 10 December 1993 statement on
responsibilities, remained unifulfilled.
26. The representative of Australia concluded that the combination of these r,'.,ents meant that the
sitLlation outliiied in the 10 December statement remained current, pending an agreed outcome of
multilateral work on the scope issues where no consensus had been reached, delegations were not yet
in a position to exercise responsibilities with regard to the scheduling or exemption of measures in
those areas. It was the view of the delegation of Australia that. in order for responsibilities to be
exercised. multilateral work needed to be completed. That would ensure that the rights of all delegations
would not be prejudiced.
27. The representative of Egypt reserved the right of bis delegation to make a full statement at
the meeting of the Preparatory Coommittee on 21 December. Nonetheless, he had some brief comments
to make. He stressed the importance of the rule of consensus in the conduct of work under the WTO
and recalled that the statement of 14 December 1993 had been adopted hastily and in the absence of
some delegations. His delegation believed that the statement was a recipe for confusion since it did
not provide for a clear conclusion to the process of consultation. He appreciated that some participants
had withdrawn measures from their schedules and MFN exemption lists, which was why his delegation
was open minded regarding the question of providing legal coverage for them. In his view, however,
the Chairnian's statement of 14 December 1993 did not represent a sufficient basis for the serious action
of withdrawing such measures from schedules and MFN exemption lists.
28. lTbe representative of Mexico stressed that there must not be any unilateral interpretation of
GATS provisions resulting from the absence of agreed conclusions.
29. The representative of Korea stated that he regretted the fact that no agreement was reached
and reserved the right of his delegation with respect to MFN exemptions and National Treatment
reservations. The representative of Turkey also reserved the rights of his delegation concerning
MFN exemptions.
30. The Chairman expressed his regret that no agreement had been reached in spite of the sincere
efforts by many participants. |
GATT Library | gr484wm4701 | Report of the Meeting of 12 -13 December 1994 | World Trade Organization, January 17, 1995 | World Trade Organization and Negotiating Group on Basic Telecommunications | 17/01/1995 | official documents | S/NGBT/4 and 0040-0053 | https://exhibits.stanford.edu/gatt/catalog/gr484wm4701 | gr484wm4701_90080456.xml | GATT_1 | 1,091 | 7,178 | RESTRICTED
WORLD TRADE S/NGBT/4
17 January 1995
ORGANIZATION
(95-0048)
Negotiating Group on Basic Telecommunications
REPORT OF THE MEETING OF 12 -13 DECEMBER 1994
The Negotiating Group on Basic Telecommunications held its fourth meeting on 12-13
December 1994. The agenda for the meeting was contained in airgram PC/AIR/44 of 17 November 1994.
Under the agenda item on the consideration of requests for observer status, the Group considered
and approved a request for observer status from the Republic of Slovenia. The number of governments
participating in the negotiations remains at 25 (see S/NGBT/3) and the number of governments
participating in the Group as observers increased to 32.
The next agenda item was the review of participants' responses to the questionnaire on basic
telecommunications. The Chairman first invited delegations to ask any questions they might have on
responses reviewed at the last meeting. Questions were directed to the representatives of the European
Communities, Turkey, the United States and Korea. The Group then began the consideration of further
responses for review. These included the responses of Argentina, Australia, Austria, Cyprus,
Hong Kong. Hungary, Japan and the Slovak Republic. The representative of Morocco announced
that his government would be submitting a questionnaire response shortly. The Chairman reminded
delegations that the Secretariat would process written revisions or additions to the information contained
in questionnaire responses. The Chairman noted that the Group had now reviewed the questionnaire
responses of most of the participants in the negotiations and that any additional responses from
participants would be reviewed as soon as they were made available.
Regarding discussion of work on technical and conceptual issues, the Chairman invited delegations
to offer their views on the issues addressed in the Secretariat Note on outstanding issues (S/NGBT/W/2)
or any other outstanding issues of interest to them. In general comments, it was suggested that the
Group keep outstanding issues under continuing discussion and that since work on these issues would
need to coincide with the drafting of schedules, bilateral negotiations should begin as soon as possible
in order to identify the specific problems that would need to be resolved. It was also noted that
participants would need an idea of the rules that would apply once commitments were in place. Issues
related to equal access and competition safeguards were cited as examples of such rules. The following
were among comments made on certain specific issues:
- Regarding technical constraints on number of suppliers, there remained differences
of view on whether or not such measures should be listed as limitations in the schedules
of commitments when imposed for purely technical reasons. While some representatives
stressed the need for a common approach, others suggested that such limitations might
need to be considered on a case-by-case basis wherein each participant would decide
for itself whether or not to schedule. Among problems cited with arriving at a common
approach were that governments' ideas of what constitutes a purely technical constraint
may differ and that technology was evolving so quickly that a technical limitation could
rapidly become a market limitation. S/NGBT/4
Page 2
A concern was expressed that the Group should consider how to avoid scheduling such
limitations that. when technology developed, could have been eliminated were it not
for the level of binding in schedules. The view was also expressed that a restriction
based on what the market could bear was clearly a scheduling matter, but that it might
be difficult to distinguish between technical and market considerations.
On additional commitments, it was noted that even though Article XVIII was open
ended it was unreasonable to try to handle all problems by this means; rather, priorities
should be set for what would be sought as additional commitments. The main objective
should be to obtain valuable commitments, particularly in view of the monopoly heritage
of the sector. Also, it was noted that whether or not it would be useful to employ
Article XVIII commitments might depend on the regime concerned. Examples of areas
where problems common to various regimes may arise were noted including:
interconnection, type approval, pricing, rights of way and universal service. The need
for a conceptual framework within which to set priorities was suggested. In this context,
interconnection, competitive safeguards (how to deal with dominant carriers),
transparency in regulatory processes, and the independence of regulators from the
operators were suggested as broad categories for examination.
On international agreements between operators, the delegation of Australia recalled
its paper on termination services (S/NGBT/W/4) and said that its main objective in
putting forth the proposal was to encourage discussion. Another delegation agreed
that the issue was important, but maintained the position that these were commercial
agreements. It was suggested that these issues could be addressed within the context
of interconnection. Another delegation wondered how the Australian proposal would
work in practice or how quickly it might be overtaken by changes under way in the
accounting rate system. It was also suggested that commitments on voice telephone,
rather than separate commitments on termination services, could address these issues.
Finally, it was noted that the Annex on Telecommunications may apply to accounting
rates.
Regarding Article VI, one delegation said the main question was how to make the
obligations in this Article effective in this sector and that one of the keys was to ensure
the independence of the regulator from the operator. It was noted that commitments
should be used to strengthen, but not to detract from, Article VI. It was also noted
that full application of Article VI with respect to this sector might remove the need
for additional commitments in some areas, and that this should be kept in mind in setting
priorities. A need for more discussion to determine which issues were fully covered
by Article VI was identified. However, it was recalled that Article VI:4 contained
a mandate for future work in this area. It was suggested that there might be a need
for some interim solutions on, for example, licensing problems, until the guidelines
to be established under Article VI:4 were clear.
Moving to the agenda item on organization of future work and dates of future meetings, it
was agreed that the date of the next meeting of the Group would be 27 - 28 February to be followed
by bilateral consultations between delegations for the remainder of that week.
Under the agenda item on other business, the Group considered the derestriction of the
questionnaire and the responses to it (documents S/NGBT/W/3 and S/NGBT/W/3/Adds. 1-20). As
no consensus was achieved, the Chairman took note of a request that the issue be revisited at the next
meeting. |
GATT Library | ry743qm3489 | Reports under Article 14:4. (December 1994) : Note by the Secretariat | General Agreement on Tariffs and Trade, January 12, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Anti-Dumping Practices | 12/01/1995 | official documents | ADP/W/382 and 0009-0040 | https://exhibits.stanford.edu/gatt/catalog/ry743qm3489 | ry743qm3489_90080437.xml | GATT_1 | 203 | 1,544 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
ADP/W/382
12 January 1995
Special Distribution
(95-0024)
Committee on Anti-Dumping Practices
REPORTS UNDER ARTICLE 14:4
(December 1994)
Note by the Secretariat
Listed hereunder are reports under Article 14:4 of the Agreement received in December 1994.
These reports have been received from Mexico, New Zealand and the United States concerning
preliminary and final anti-dumping actions and are available in the GATT Secretariat for inspection
by government representatives.
Reporting Party: MEXICO
Product
Country or Customs
Territory
Steel sheet in rolls
Armenia
Azerbaijan
Belarus
Estonia
Georgia
Kazakhstan
Kyrgystan
Letvia
Lithuania
Moldova
Tadzhikistan
Turkmenistan
Ukraine
Uzbekistan
Russian Federation
Polypropylene homopolymer
Toys
Suitcases and handbags
United States
China, P.R.
China, P.R.
Seamless steel
United States
¦Interested delegations are requested to contact Miss S. Aspinall, Office 1023, Tel. No. 739 51 09. ADP/W/382
Page 2
Country or Customs
Territory
Reporting Party: UNITED STATES
Silicomanganese
Pure magnesium and alloy magnesium
Honey
Glycine
Saccharin
Certain cased pencils
Wheel inserts
Chrome-plated lug nuts
Fishnetting of man-made fibre
Tapered roller bearings, four inches or less in diameter
and components
Carbon steel pipe nipples
Brazil
China, P.R.
Venezuela
China, P.R.
China, P.R.
China, P.R.
China, P.R.
Korea
China, P.R.
Chinese Taipei
Chinese Taipei
Japan
Japan
Mexico
Product |
GATT Library | jd677nd3620 | Reports under Article 14:4 (January 1995) : Note by the Secretariat | General Agreement on Tariffs and Trade, February 10, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Anti-Dumping Practices | 10/02/1995 | official documents | ADP/W/384 and 0283-0327 | https://exhibits.stanford.edu/gatt/catalog/jd677nd3620 | jd677nd3620_90080744.xml | GATT_1 | 209 | 1,613 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
ADP/W/384
10 February 1995
Special Distribution
(95-0286)
Committee on Anti-Dumping Practices
REPORTS UNDER ARTICLE 14:4
(January 1995)
Note by the Secretariat
Listed hereunder are reports under Article 14:4 of the Agreement received in January 1995.
These reports have been received from Canada, the EC and the United States concerning preliminary
and final anti-dumping actions and are available in the GATT Secretariat for inspection by government
representatives.¹
Reporting Party: CANADA
Product
Fresh, whole, Delicious, Red Delicious and Golden Delicious apples
Country or Customs
Territory
United States
Reporting Party: EC
Potassium permanganate
Furazolidone
Urea ammonium nitrate solution
China, P.R.
China, P.R.
Bulgaria
Poland
Reporting Party: UNITED STATES
Disposable pocket lighters
Silicomanganese
Colour television receivers
Chrome-plated lug nuts
Fresh Kiwifruit
China, P.R.
Ukraine
Korea
Chinese Taipei
New Zealand
'Interested delegations are requested to contact Miss S. Aspinall, Office 1023, Tel. No. 739 51 09. ADP/W/384
Page 2
Country or Customs
Territory
Reporting Party: UNITED STATES (Cont'd)
Furfuryl alcohol
Circular welded carbon steel pipes and tubes
Certain drawer slides
Certain cased pencils
Silicomanganese
China, P.R.
South Africa
Thailand
Thailand
China, P.R.
China, P.R.
Brazil
China, P.R.
Ukraine
Venezuela
Russian Federation
China. P.R.
China, P.R.
Mexico
Ferrovanadium and nitrided vanadium
Manganese metal
Saccharin
Porcelain-on-steel cooking ware
Product |
GATT Library | bj040pp7989 | Reports under Article 2:16. (January 1995). : Note by the Secretariat | General Agreement on Tariffs and Trade, February 6, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Subsidies and Countervailing Measures | 06/02/1995 | official documents | SCM/W/319 and 0209-0240 | https://exhibits.stanford.edu/gatt/catalog/bj040pp7989 | bj040pp7989_90080671.xml | GATT_1 | 98 | 768 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
SCM/W/319
6 February 1995
Special Distribution
(95-0224)
Committee on Subsidies and Countervailing Measures
REPORTS UNDER ARTICLE 2:16
(January 1995)
Note by the Secretariat
Listed hereunder are reports under Article 2:16 of the Agreement received in January 1995.
These reports have been received from the United States and are available in the GATT Secretariat
for inspection by government representatives.¹
Reporting Observer: UNITED STATES
Product Country or Customs
Territory
Oil country tubular goods ("OCTG")
Italy
Glycine
China, P.R.
¹Interested delegations are requested to contact Miss S. Aspinall, Office 1023, Tel: 739 51 09. |
GATT Library | yw511pd5550 | Reports under Article 2:16 (January 1995) : Note by the Secretariat. Corrigendum | General Agreement on Tariffs and Trade, February 9, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Subsidies and Countervailing Measures | 09/02/1995 | official documents | SCM/W/319/Corr.1 and 0240-0283 | https://exhibits.stanford.edu/gatt/catalog/yw511pd5550 | yw511pd5550_90080732.xml | GATT_1 | 153 | 1,128 | GENERAL AGREEMENT ON TARIFFS AND TRADE
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
ACUERDO GENERAL SOBRE ARANCELES ADUANEROS Y COMERCIO
RESTRICTED
SCM/W/319/Corr.1
9 February 1995
Special Distribution
(95-0269)
Committee on Subsidies and Countervailing Measures
Original: English/
anglais/
inglés
REPORTS UNDER ARTICLE 2:16
(January 1995)
Note by the Secretariat
Corrigendum
The heading on the report from the United States in document SCM/W/319 should read:
"Reporting Signatory: UNITED STATES"
Comité des subventions et mesures compensatoires
RAPPORTS AU TITRE DE L'ARTICLE 2:16
(Janvier 1995)
Note du secrétariat
Corrigendum
Le titre du rapport des Etats-Unis figurant dans le document SCM/W/3 19 est modifié comme
suit: "Signataire présentant le rapport: ETATS-UNIS".
Comité de Subvenciones y Medidas Compensatorias
INFORMES PRESENTADOS EN VIRTUD DEL
PÁRRAFO 16 DEL ARTÍCULO 2
(Encro de 1995)
Nota de la Secretaría
Corrigendum
El encabezamiento del informe de los Estados Unidos distribuido con la signature SCM/W/319
debe ser el siguiente: "Signatario informante: ESTADOS UNIDOS". |
GATT Library | sv969bq4133 | Republic of Slovenia : Revision | Preparatory Committee for the World Trade Organization, January 6, 1995 | World Trade Organization- Preparatory Committee and World Trade Organization- Preparatory Committee | 06/01/1995 | official documents | PC/W/31/Rev.1 and 0002-0009 | https://exhibits.stanford.edu/gatt/catalog/sv969bq4133 | sv969bq4133_90080426.xml | GATT_1 | 8,557 | 60,395 | PREPARATORY COMMITTEE
FOR THE
WORLD TRADE ORGANIZATION
RESTRICTED
PC/W/31/Rev.1*
6 January 1995
(95-0009)
PREPARATORY COMMITTEE FOR THE
WORLD TRADE ORGANIZATION
Original: English
REPUBLIC OF SLOVENIA
Revision
The attached document contains the Republic of Slovenla's draft schedule of specific commitments
and list of Article Il (MFN) exemptions. The document was verified by the Sub-Committee on Services
on 15 December 1994, as a result of which page 23 of the schedule was amended; the amended page
is included in the present document. The Working Party on the Membership of Slovenia in the World
Trade Organization agreed that the schedule and the list of Article Il exemptions be submitted to the
Preparatory Committee for approval.
*English only. Page 4 of this text was omitted from the English version of PC/W/31. PC/W/31/Rev.1
Page 3
REPUBLIC OF SLOVENIA
Draft Schedule of Specific Commitments
(This is authentic in English only)
Notes:
1) The classification of sectors is based on the 1991 provisional Central Product Classification (CPC)
of the United Nations Statistical Office, while the ordering reflects the Services Sectoral Classification
List (MTN.GNS/W/120 of July 1991). The appearance of ** against individual CPC listings indicates
that the service specified constitutes only a part of the total range of activities covered by the CPC
concordance.
2) The entry "Unbound*" means unbound due to lack of technical feasibility.
(This is authentic in English only) REPUBLIC OF SLOVENIA -- DRAFT SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply:
1) Cross- border supply
2) Consumption abroad
3) Commercial presence
PC/W/31/Rev.1
Page 4
4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
1. HORIZONTAL COMMITMENTS
ALL SECTORS INCLUDED
IN THlS SCHEDULE
Investments:
3)a) Foreign participation in companies in the
privatization process under the Law on
Ownership Transformation, when exceeding
10 per cent of the total value of the company.
is subject to authorization and is limited to
an amount determined by the Government.
b) Prior authorization, by the Government is
required for any foreign purchases exceeding
10 per cent of the capital or voting rights
in an existinig Slovenian company already
privatized under the Law on Ownership
Transformation with a value exceeding
5 million ECU, and for any purchases of
equity of an existing Slovenian company,
when it exceeds 1.25 million ECU, if this
equity is used with respect to an independent
part, division or plant of an enterprise.
An assessment of investments under a) and b)
is made in light of the effect on the
economy of the country.
3) The establishement of branches by
foreign companies is conditioned with
the registration of the parent company in
a court register in the country of origin
for at least one year.
Subsidies:
None, other than for branches established
in the Republic of Slovenia by a foreign
company. Eligibility for subsidies from
the Republic of Slovenia may be limited
to juridical persons established within
the territory of the Republic of Slovenia
or a particular geographical sub-division
thereof. Unbound for subsidies for research
and development. The supply of a service,
or its subsidisation, within the public
sector is not in breach of this
commitment. REPUBLIC OF SLOVENIA (continued)
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Setor or subsector Limitations on market access Limitations on national treatment Additional commitments
An assessment of such investments is made on the
basis of the following criteria:
- the situation of the company on the domestic
and foreign markets from the aspect of monopoly
position and the influence of the foreign
investor on the monopoly position of an existing
company, in accordance with the Law on
Protection of Competition;
- the price of the acquired stake or shares in
relation with the competitive capability of the
company on the domestic and foreign markets;
- the potential threat to fair competition of
incorporating foreign investors;
- the prevention of acquisition or take-over
that may result in the closing down of
otherwise profitable and competitive
production and in the elimination of
competition from and within Republic
of Slovenia for given products or
markets;
- the current ownership structure of the company;
- the effect of the purchase on the development
of the company with respect to the manner and
period of purchase.
At least half of the ordinary members of the
Board of Directors have to be nationals of the
Republic of Slovenia. The managing director
of a limited liability company or at least the
procurator has to be a Slovenian national.
Non-Slovenian national, director of a branch,
established in the Republic of Slovenia by a
foreign juridical person, has to be a resident
in the Repulic of Slovenia. REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons Page 6 PC/W/31/Rev.1
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
In the case of investment under a) the following
additional criteria shall be considered:
- the importance of a trademark;
- the effect of the foreign investment in the
company on the acquisition of new technologies
or modern equipment;
- the effect of the foreign investment in the
company on the acquisition of additional
financial means as working or fixed capital;
- the effect of the foreign investment in the
company on maintaining the current employment
level or the employment of new personnel.
For financial services, authorization
is issued by the authorities indicated
in sector specific commitments and
according to conditions indicated in
sector specific commitments.
There are no limitations on establishment
of a new business establishment ("greenfield"
investments).
Services considered in the Republic of Slovenia
as public utilities at a national or local level
may be subject to public monopolies or to
granting of concessions to private operators,
as indicated in sector specific commitments. REPUBLIC OF SLOVENIA (continued)
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
Real estate:
Juridical persons established in the Republic
of Slovenia with foreign capital participation
may only acquire real estate necessary for the
conduct of the economic activities for which
they are established.
Branches established in the Republic of Slovenia
by foreign persons may only acquire real estate,
except land, necessary for the, conduct of the
economic activities for which they are established.
Ownership of real estate in the border areas
of 10 km by companies in which majority of
capital or voting rights belongs directly or
indirectly to juridical persons or nationals
of another Member is subject to special
permission.
page 7
PC/W/31/Rev.1
* According to the Law on Commercial Companies, a branch established in the Republic of Slovenia is not considered a juridical person, but as regards their
operation, their treatment is equal to a subsidiary, which is in line with Article XXVIII para.(g) of the GATS. REPUBLIC OF SLOVENIA (continued)
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons Page 8 PC/W/31/Rev.1
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
4) Unbound, except for measures concerning the
entry into and temporary slay, without requiring
compliance with an economic need test*, of a
natural person which falls in one of the
following categories:
Business visitors
A natural person, who stays in the Republic
of Slovenia without acquiring remuneration
from or within the Republic of Slovenia
and without engaging in making direct
sales to the general public or supplying
services, for the purpose of participating
in business meetings, business contacts,
including negotiations for the sale of
services or other similar activities,
including those to prepare the establishment
of commercial presence in the Republic of
Slovenia.
4) Unbound except for measures concerning
the categories of natural persons referred
to in the Market Access Column.
To the extent that any subsidy is made
available to natural persons, their
availability may be limited to nationals
of the Republic of Slovenia.
The duration of temporary stay is limited
with a 90 day visa.
* All other requirements of laws and regulations regarding entry, stay, work and social security measures shall continue to apply, including regulations
concerning period of stay, minimum wages as well as collective wage agreements. REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 9
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
Intra-Corporate Transferee*
Natural persons of another Member who have
been employed by juridical persons of another
Member for a period of not less than three, years
immediately preceding the entry or have been
partners in it (other than majority shareholders):
a) Natural persons occupying a senior
position, who primarily direct the management
of the establishment, receiving general
supervision, direction, principally from the
board of directors or stockholders of the
business or their equivalent, including:
- directing the establishment or a department
or sub-division of the establishment;
- supervising and controlling the work of other
supervisory, professional or managerial
employees;
- having the authority personally to hire and
tire or other personnel actions page 9 PC/W/31. Rev.1
* An "intra-corporate transferee" is defined as a natural person working within a juridical person, other than a non-profit making organisation, established
in the territory of a WTO Member, and being temporarily transferred in the context of the provision of a service through commercial presence in the territory
of the Republic of Slovenia; the juridical persons concerned must have their principal place of business in the territory of a WTO Member and the transfer
must be to an establishment of that juridical person, effectively providing like services in the territory of the Republic of Slovenia. REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad
Sector or subseetor Limitations on market access
Page 10
PC/W/31/Rev. 1
3) Commercial presence 4) Presence of natural persons
Limitations on national treatment Additional commitments
b) Natural persons working within a juridical
person who posses special knowledge and
uncommon qualifications essential to the
establishment's service, research equipment,
techniques or management. In assessing such
special knowledge, account will not be taken
only of knowledge specific to the
establishment, but also of whether the
person has a high level of qualifications
referring to a type of work or trade
requiring specifie technical knowledge,
including membership of an accredited
profession.
The duration of temporary slay for
intra-corporate transferees is limited
with a "business visa" and a residence
permit, which may be granted up to 1 year
with extensions. REPUBLIC OF SLOVENIA continuedd)
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitations on market access limitations on national treatment Additional commitments
1. SECTOR-SPECIFIC COMMITMENTS
1. BUSINESS SERVICES
A. Professional Services
a) Legal Services
(CPC 861)
1) Unbound for drafting of legal
documents
2) None
1) Unbound for drafting of legal
documents
2) None
3) Commercial presence is restricted to
sole proprietorship or to a law firm
with unlimited responsibility (partnership)
only. Only lawyers with licence to
practice may be partners. For activities
involving national law acceptance into
the Bar Association ("Odvetni(ka zbornica
Slovenije ) is required. Consent of the
Bar Association is required for the
establishment of any law firm.
Conditions for acceptance into the Bar
Association for lawyers who are not
Slovenian nationals and have a licence
to practice in an another Member, have
to have a certificate of knowledge of
the Slovenian law and must be proficient
in the Slovenian language.
3) Conditions for acceptance into the Bai
Association for lawyers who are, not
Slovenian nationals and have a licence
to practice in an another Member, have
to have a certificate of knowledge of
the Slovenian law and must be proficient
in the Slovenian language.
Notaries Public are persons performing a
public service. Concession rights can be
acquired by license.
PC/W/31/Rev.1 Page 11 REPUBLIC OF SLOVENIA (continued)
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
b) Accounting, Auditing and
Bookkeeping services *
(CPC 862)
1) Unbound
2) None
1) Unbound
2) None
3) Commercial presence should take the
form of a juridical person. The share,
of foreign persons in auditing companies
may not exceed 49 per cent of the equity.
Provision of auditing services through
auditing companies only.
4) Unbound except as indicated in Part I
and subject to limitations on natural
persons employed by juridical persons only.
4) Unbound except as indicated in Part I
and in the Market Access Column
d) Architectural Services
.(CPC 8671)
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
* According to Slovene Law, auditing services are a matter of firms, not natural persons.
.PC/W/31/Rev.1
Page 12
.
.
3) None
1)
Unbound
2) None
3) None
1) None
2) None
3) None REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 13
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
e) Engineering Services
(CPC 8672)
1) None
1 ) None for pure planning services; the
submission of plans for approval by
the competent authorities reqiuires
co-operation with an established
supplier of planning services.
2) None
3) None
2) None
3) None
4) Unbound except as indicated in Part I
f) Integrated Engineering
Services
(CPC 8673)
1) None
2) None
3) None
4) Unbound except as indicated in Part I
1) None for pure planning services; the
submission of plans for approval by
the competent authorities requires
co-operation with an established
supplier of planning services.
2) None
3) None
4) Unbound except as indicated in Part I 4) Unbound except as indicated in Part I REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad
Sector or subsector Limitations on market access
3) Commercial presence
Limitations on national treatment
.PC/W/31/Rev. 1 Page 14
4) Presence of natural persons
Additional commitments
h) Medical and
Dental Services
(CPC 93121,
93122 *)
1) Unbound
2) None
3) Membership of Doctors Association
required. Conditions for acceptance
into Doctors Association for doctors
who are not Slovenian nationals is
licence to practice in an another Member
and have a good command of the Slovenian
language ".
4) Unbound except as indicated in Part I
1)
2)
3)
Unbound
None
None
4) Unbound except as indicated in Part I
excluding the following activities: social medicine, sanitary, epidemiological, medical/ecological services; the supply of blood, blood preparations and transplants; autopsy.
Establishment in the form of legal person is subject to authorization by Ministry of Health. Entry into Publie Health Network is subject to a concession from the Institute
for Health Insurance of the Republic of Slovenia.
. REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence
Sector or subsector Limitations an market access Limitations on national treatment
B. Computer and Relaked
Services
a) Consultancy Services
related to the Installation
of Computer Hardware
(CPC 841)
1) None
4) Prsence of natural persons
Additional commitments
1) None
2) None
2) None
3) Nune
3) None
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
b) Software Implementation
Services
(CPC 842)
4) Unbound except as indicated in Part I
4) Unbunud except as indicated in Part I
c) Data Processing Services
(CPC 843)
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
d) Data Base Services
(CPC 844)
1) None
2) None
3) None
1) None
2) None
1) None
2) None
3) None
3) None
I) None
2) None
I) None
3) None
2) None
3) None
1) None
2) None
3) None
PC/W/31/Rev. 1
Page 15 REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 16
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
e) Other
(CPC 845+849)
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
C. Research
andDevelopment Services*
a) R&D Services on
natural sciences
(CPC 851)
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
b) R&D Services on
social sciences and
humanities
(CPC 852)
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
Public utility exist; concession rights can be granted to the private operators established in the Republic of Siovenia.
1) None
2) None
3) None
1) None
2) None
3) None
1) Noue
2) None
3) None
1) None
2) Noue
1) None
3) None
2) None
3) None
1) None
2) None
3) None REPUBLIC OF SLOVENIA (continued)
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Seetor or subsector
c) Interdisciplinary
R&D Services
(CPC 853)
Limitations on market access
1) None
2) None
3) None
Limitations on national treatment
Additional commitments
1) None
2) None
3) None
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
E. Rental/Leasing Services
without Operators
a) Relating to Ships
(CPC 83103)
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
b) Relating to Aircraft
(CPC 83104)
1) None
2) None
3) To be registered in the aircraft register
of the Republic of Slovenia, the aircraft
must be owned either by a juridical or
natural persons meeting specific nationality
or domicile criteria, which are applied
as weil to he member of the board.
1) None
2) None
3) None
PC/W/13/Rev. 1
Page 17
4) Unbound except as indicated in Part I
1) None
2) None
3) None
1) None
2) None
3) None
4) Presence of natural persons
Additional commitments
4) Unbound except as indicated in Part 1 REPUBLIC OF SLOVENIA continuedd)
Modes of supply - 1) Cross-border supply 2) Consumption abroad
Sector or subsector Limitations on market access
3) Commercial presence
Limitations (in national treatment
4) Presence of natural persons
Additional coumnuiments
c) Relating to Other
Transport Equipment
(CPC 83102, 83105)
I)
2)
3)
4)
1)
2)
3)
4)
d) Relating to Other
Machinery anu
Equipment
(CPC 83106, 83107,
83108, 83109)
F. Other Business Services
a) Advertising Services,
excluding direct mail
advertising, ouldoor
advertising and excluding
for gtxds subject to
import aluihorization and
excluding pharmaceutical
products, alcohol, tobacco,
toxic explosives, weapons
anu ammunition
(871 1 *4 8712**)
1)
2)
3)
4)
Unbound
None
None
Unbound except as indicated in Part I
None
None
None
Unbounid except as indicated in Part I
1)
2)
3)
4)
j)
2)
3)
4)
1)
2)
3)
4)
Nouen
None
None
Unbound except as indicated in Part I
None
None
None
Unhou)und except as indicated in Part I
None
None
None
Unbound except as indicated in Part I
None
None
Nonc
Uubotind except as nîdicated in Part I
PC/W/31/Rev. 1
Page 18
.
.
.
. EPUBLIC OF SLOVENIA (continued)
Modes of supply: I1) Cross-border supply 2) Consumpîion abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additiomial comnnitgnents
) Market Rescarch aid
Opinion Poiling
(CPC 864)
1) None
1) None
2) None
2) None
3) None
3) None
4) Unbound except as indicated in Part I
4) Unhtout dexcelit as indicated in Paci I
c) Management C<nsuiting
Services
(CPC 865)
4) Ur.bound except as indicated in Part I
4) Unbound except as indicated in Part I
d> Services related te
Management Consulting
(CPC 866)
4) Unbound c:xcept as indicated in Part I
4) UJnbound except as indicaaed in Part I
I) None
2) None
3) None
1l Nonu
2) Nonc
I) Nonc
3) None
2) Noenc
3) None
I) None
2) None
3) None
PC/W/31/Rev. 1
Page. 19 REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commerial presence 4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
e) Technical Testing and 1) None 1) None
Analysis Services *
(CPC 8676) 2) None 2) None
3) None 3) None
4) Unbound execpt as indicated in Part I 4) Unbound except as indicted in Part I
1) Services Incidental 1) None 1) Noue
to Energy Distribution
-for gas only 2) None 2) None
(CPC 887**)
3) None 3) None
4) Unbound except as indicated in Part 1 4) Unbound except as indicated in Part 1
n) Maintenance and Repair 1) None 1) None
of Equipment (not inet.
maritime vessels, aircrafi 2) Noue 2) None
or other transport
equipment) 3) None 3) None
(CPC 633 +8861-8866)
4) Unbound except as indicated in Part 1 4) Unbound except as indicated in Part I
* Public utility exist; concession rights can be granted to the private operators established in the Republic of Siovenia. EPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad
Sector subsector Limitations on market access
3) Commercial presence
Limitations on national treatment
4) Presence of natural persons
Additional commitments
) Photographic Services
(CPC 876)
1)
2)
3)
4)
2. COMMUNICATION
SERVICES
a. Courrier services
Special Delivery
Service only
(CPC 7512** )
1)
2)
3)
4)
None
None
None
Unbound except as indicated in Part I
1)
2)
3)
4)
Unbound
None
None
Unbound except as indicated in Part I
1)
2)
3)
4)
None
None
None
Unbound except as indicated in Part I
Unbound
None
Noue
Unbound except as indicated in Part I
PC/W/31/Rev. 1 Page 21
.
.
. REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 22
Modes ot supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national Ireatment Additional commitments
C. Telecommunician
Service
The setting up and operation of telecommunication networks infrastructure as well as the provision of voice lelephone, packet and
circuit switched data services, telegraph, telex, mobile radio telephone, satellne and paging services are excluded (public monopoly).
Value-added services
lnctuding:
h) Electronic Mail
(CPC 75234**)
1) None as from January 1, 1998
2) None
1 ) None as from Jamnuay 1, 1998
2) None
i) Voice Mail
(CPC 7523**)
j) On-line Information
and Data Hase Reirieval
(CPC 7523**)
3) Foreign participation may not exceed
99 per cent of the equity.
Licence for operation granted is subjeet
to obligations of value-added telecommunscation
services providers, to use the basie
telecommunications network.
1) Enhanced/Value-added
Facsimile Services, inel.
store and forward,
store and retrieve
(CPC 7523**)
4) Unbound except as indicated in Part l
4) Unhound except as indicated in Part I
m) Code and Protocol
Conversion
(CPC n.a.)
3) None REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad
Sector or subsector Limitations on market accs
3) Commercial prsenice
Limitations on national treatment
4) Presence of natural persons
Additional commnt
3. CONSTRUCTION AND
RELATED
ENGINEERING
SERVICES
A. General Construction
Work for Building
(CPC 512)
B. General Construction
Work lofr For l
(CPC 513)
1)
2)
3)
4)
1)
2)
3)
41)
C. Installation and
AsscmblveWork
(CPC 5 14, 516)
1)
2)
3)
4)
Unbound*
None
None
Unbound except as idatnNcd in eart 1 and:
commercial prcscnceere:ulreq
Unhound*b
None
None
Unhoundb exc pt as indicaied it Part I and1
commercial presence required
Unbound*
None
None
Unbound except as indicated in Part I and:
commercial presence required
1)
2)
3)
4)
1)
2)
3)
4)
1)
2)
3)
4)
Unhound l
None
None
Unhoxnb uxcelt ap indicatl inted rt I and
cotililmmelplecsruisence ired
Unht)ndbo
None
None
Unb)undoexcept as indicated in Part I and:
comiemcial presCnOeercquîrd
Unx)undbo
None
None
Unbound except as indicated in Part I and:
commercial presence required
.PC/W/31/Rev. 1
Page 23
.
.
. REPUBLIC OF SLOVENIA continuedd) PC/W/31/Rev. 1 Page 24
Modes of supply: 1) Cross-border supply 2) Consumption abroad
Sector or subector Limitations on market access
D. Building Completion 1) Unbound*
and Finishing Work
(CPC 517) 2) None
3) None
4) Unbound except as indicated in Part I and:
commercial presence required
1)
2)
3)
4)
3) Commercial presence 4
Limitations on national treatment
Unbound *
None
None
Unbound except as indicated in Part I and :
commerciall presence required
4) Presence of natural persons
Additional commitments
.
.
.
E. Other:
- Pre-erection work at
construction sites and
Special trade
construction work
(CPC 511, 515)
1)
2)
3)
4n
Uabound
None
None
Unbound except as indicated in Pari I and:
commercial presence required
1)
2)
3)
4)
Unbound
None
None
Unbond except as indicated in Part I and:
commercial presence required
4. DISTRIBUTION
SERVICES
(Excluding distribution of pyrotechnical goods, ignitable articles and blasting devices, firearms, ammuntion and military
equipment, toxic substances and certain medical substances).
A. Commission Agents' 1) None 1) None
Services
(CPC 621) 2) None 2) None
3) None 3) None
4) Unbound except as indicated in Part 1 4) Unbound except as indicated in Part I
.
.
. REPUBLIC OF SLOVENIA continuedd)
Modes of supply: Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector Limitations on market access Limigations on national treatment Additional commitments
B. Wholesale Trade
Services
(CPC 622)
1) None
1) None
2) None
2) None
3) None
3) None
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
C. Retailing Services
(CPC 631. 632**,
61112, 6113, 6121
excluding 63211)
4) Unhound except as indicated in Part I
4) Unbound except as indicated in Part I
D. Franchising
(CPC 8929)
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
1) None
2) None
3) None
1 ) None
2) None
1) None
2) None
3) None
3) None
1) None
2) None
3) None
.PC/W/31/Rev. 1
.Page 25
.
. REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad
Sector or subsector Limitations on market access
5. EDUCATIONAL
SERVICES
B. Secondary Education 1) None
Services
- Privately Funded Only 2) None
(CPC 922**)
3) None
C. Higher Education
Services
Privately Funded Only
(CPC 923**)
D. Aduilt Education
Services
(CPC 924)
4)
1)
2)
3)
4)
1)
2)
3)
4)
3) Commercial presence
Limitations on national treatment
1)
2)
3)
Unbound except as indicated in Part 1
None
None
None
4)
1)
2)
3)
Unbound except as indicated in Part I
None
None
None
Unbound except as indicated in Part l
4)
1)
2)
3)
4)
4) Presence of natural persons
Additional commitments
None
None
None other than: majority of the Board must
be of Slovenian nationality
Unbound excpt as indieated in Part 1
None
None
None other than: majority of the Board must
be of Sloveman nationality
Unbound except as indicated in Part I
None
None
None
Unbound except as indicated in Part I
.PC/W/31/Rev. 1
Page 26 REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad
Sector or subsector Limitations on market access
3) Commercial presence
Limitations on national treatments
4) Presence of natural persons
Additional commitments
Additional commitments
6. ENVIRONMENTAL
SERVICES *
A. Sewage Services
(CPC 9401)
B. Refuse Disposal Services
(CPC 9402)
C Sanitition and
Similar Services
(CPC 9403)
1)
2)
3)
4)
1)
2)
3)
4)
1)
2)
3)
4)
Unbound*
None
None
Unbound except as indicated in Part I
Unbound*
None
None
Unbound except as indicated in Part I
Unbound*
None
None
Unbound except as indicated in Part I
1)
2)
3)
4)
1)
2)
3)
4)
1)
2)
3)
4)
Unbound*
Nonc
None
Unbound except as indicated in Part I
Unbound*
None
Noue
Unbound except as indicated in Part I
Unbound*
None
None
Unbound except as indicated in Part I
Public utility exist; concession rights can be granted to the- private operators estabished in the Republie of Slovenia.
.PC/W/31/Rev. 1
Page 27
. REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 28
Modes of supply: 1) Cross-border supply 2) Consumption abroad
Sector or subsector Limitations on market access
3) Commercial presence
Limitations on national treatment
4) Presence of natural persons
Additional commitments
D. Other:
- Nature and Landscape
Protection Services
(CPC 9406)
None 3)
Unbound except as indicated in Part I
None
4) Unbound except as indicated in Part I
1)
2)
Unbound*
None
1)
2)
3)
4)
Unbound*
None 95-0009 MF
95-0010
95-0011
95-0012
95-0013 MF
95-0014 MF
95-0014 MF
95-0015 MF
95-0016 MF
95-0017 MF
95-0018 MF
95-0019 MF
95-0020
95-0021 MF
95-0022 MF
95-0023 MF
95-0024 MF
95-0025 MF
95-0026 MF
95-0027
95-0028 MF
95-0029 MF
95-0030 MF
95-0031 MF
95-0032 MF
95-0033 MF
95-0034
95-0035
95-0036 MF
95-0037 MF
95-0038
95-0039
95-0040 MF
E
E F S
E
E
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
F E S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
E F S
PC/W/03 1/Rev.01
Administrative Memo
Administrative Memo
868
865
Administrative Memo 866
AIR/M/040/Corr.01
ADP/W/383
SCM/W/318
L/7611
TBT/Notif.95.001
TBT/Notif.95.002
TBT/Notif.95.003
TBT/Notif.95.004
Administrative Memo 867
C/RM/M/049/Add.01
ICITO/001/039
TBT/Notif. 95.005
ADP/W/382
SCM/W/317.
G/SP/010
INT(95)002
WT/L/0001
GPA/IC/W/0013
WT/L/0002
G/TBT/Notif.95.001
G/RS/027
GPR/W/140
WTO/AIR/0001
WTO/AIR/0002
AIR/W/099
WT/DS001/001
OFFICE(95)001
WTO/AIR/0003
PC/M/O 11
not on Microfiche
not on Microfiche
not on Microfiche
not on Microfiche
not on Microfiche
not on Microfiche
not on Microfiche
not on Microfiche REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitmenits
7. FINANCIAL SERVICES
1. The admission to the market of new financial services or products may be subject to the existence of, and consistency with, a regulatory framework aimed at
achieving the objectives indicated in Article 2.(a) of the Annex on Financial Services.
2. As a general rule and in a non-discriminatory manner financial institutions incorporated in the Republic of Slovenia must adopt a specific legal form.
3. Insurance and banking activities should be performed hy legaly separate suppliers of financial services.
4. Investment services can be provided only through banks and investment firms.
A. Insurance and Insurance-
Relaled Services
as defined in the 'Annex on
Financial Services'
(Para. 5.(a)(i)-5 .(a)(iv))
(i) Direct insurance
(including co-insurance)
(A) life
(B) non-life
1),2) Unbound except for maritime shipping and
commercial aviation and freight, with
such insurance to cover any or all of
the following: the goods being transported,
the vehicle transporting the goods and any
liability arising therefrom; and goods in
intermational transit.
1),2) Unbound excepl for maritime shipping and
commercial aviaion- and freight, with
such insurance to cover any or all -of
the following: the goods being transported,
the vehicle transporting the gouds and any
liability arising therefrom; and goods in
intemational transit.
.PC/W/31/Rev. 1
Page 29
.
. REPUBLIC OF SLOVENIA continued)
Modes of supply:
1) Cross-border supply
Sector or subsector
2) Consumption abroad
Limitations on market access
3) Establishment is subject to a licence
issued by the Ministry of Finance.
Foreign persons can establish an insurance
company only as a joint venture with
domestic person, where participation of
foreign persons is limited up to 99 per cent.
A foreign person may acquire or increase
shares in a domestic insurance company
subject to a prior approval of the
Ministry of Finance.
3) Commercial presence
Limitations on national treatment
3) None.
4) Presence of natural persons
Additional commitments
PC/w/31/Rev. 1
Page 30
Ministry of Finance, when issuing a
licence or approval of acquiring shares
in a domestic insurance company, takes
into account the following criteria:
- the dispersion of ownership of shares
and the existance of shareholders from
different countries,
- the supply of new insurance products and
the transfer of related knowhow, if the
foreign investor is an insurance company.
Unbound for foreign participation in
insurance company under privatization.
Unbound with respect to branches,
representative offices and agencies
of insurers.
Insurance activities provided by mutual
insurance institutions are limited to
incorporated companies established in
the Republic of Slovenia.
4) Unbound except as indicated in Part I 4) Unbound except as indicated in Part I REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 31
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national Additional Additional commitments
1) Unbound
2) Reinsurance companies in the Republic
of Slovenia have priority in the collection
of insurance premiums.
In case that these companies are not
able go equalize all risks, these
can be reinsured and retoceded abroad.
3) Foreign participation in reinsurance
company is limited up to a controlling
share of the capital.
1) Unbound
2) None
3) None other than insurance company with a
controlling share of foreign capital may
not be engaged in reinsurance or establish
reinsrance company.
4) Unbound except as indicated in Part 1 4) Unbound except as indicated in Part I
(ii) Reinsurance and
retrocession REPUBLIC OF SLOVENIA (continued)
Modes of supply:
1) Cross-border supply
2)Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsectur Limitations on market access Limitations on national treatment Additional commitments
(iii) Insurance intermediation,
such as brokerage and
agency
(iv) Services auxiliary go
insurance, such as:
- consultancy,
- actuarial,
- risk assessment
- claim settlement services
3) For providing consultancy and claim
settlement services, incorporation
is required as a legal entity by consent
of the Bureau of insurance.
For actuaries and risk assessment activities
provision of services threugh professional
establishment only.
3) For sole proprietors a residence in the
Republic of Slovenia is required.
Operation is limited to activities referred
under 7 A (i) and (ii) of this Schedule.
4) Unbound except as indicated in Part I
and for actuarial and risk assessment
residence is required in addition to
a qualiffying examination, membership
in the Actuarial Association of the
Republic of Siovenia and proficiency
in the Slovene language.
4) Unbound except as indicated in Part I
1)
Unbound
2) None
1) None
2) None
.PC/W/31/Rev. 1
Page 32 REPUBLIC OF SLOVENIA continued)
Modes of supply. 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector Limitations an market access
B. Banking and Other
Financial Services
as defined in the 'Annex
on Finanacial Services,
(v) Acceptance of deposits
and other repayable
funds from the public
(vi) Lending of ail types,
including consumer credit,
mortgage credit, factoring
and financing of
commercial transactions
1).2) Unbound except accepting credits (borrowing
of all types, excluding consumer credit),
and accepting guarantees and commitments
from foreign credit institutions by domestie
legai entities and sole proprietors.
All above mentioned credit arrangements
must be registered with the Bank of Siovenia.
1) None other than foreign persons can only offer
foreign securities through doaiestic banks
and stock brooking company. Members of the
Slovemian Stock Exchange must be incorporated
in the Republic of Slovenia.
2) None other than legal entites stablished in
the Republic of Siovenia can be depositores
of the assets of Invesiments Funds.
(Viii)Allpayment and money
tralsmission services,
including credit, charge
and debit cards, travellers
cheques and bankers drafts
(ix) Guarangees and comtments
(excluding guarantees and
commitments of the State Treasury)
(x) Trading for own account or
for account of customers,
whether on an exchange, in
an over-the-counter market
or otherwise, the following:
.PC/W/31/Rev. 1
Page 33
. REPUBLIC OF SLOVENIA (continued)
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
(A) money market
instruments
(including cheques,
bills, certificate
of deposits)
(B) foreign exchange
(C) derivative products
including, but not
limited go, futures
and options
(D) exchange rate and
interest rate instruments
including products
such as swaps, forward
rate agreements
(E) transferable securities
(F) other negotiable
instruments and
financial assets,
including bullion
3) Establishment of all types of banks are
subeject to a licence of the Bank of Slovenia.
Foreign persons may become shareholders of
banks or acquire additional shares of banks
only subject to prior approval of the Bank
of Slovenia.
When considering issuing a licence to a bank
to set up as a wholly owned or with a majority
of foreign investors or apporval of acquiring
additional shares of banks, the Bank of Stovenia
shall take into account the following
guidelines*:
- the existance of investors from different
countries,
- the opinion of the foreign institution
in charge of banking supervision.
Unbound in relation to foreign participation
in hanks under privatization.
Under licence of the Bank of Slovenia,
banks, subsidiaries and branches of foreign
banks can be permited to provide all or
limited banking services, depending on the
amount of the capital.
Besides the amount of the capital the Bank of Slovenia shah, when considering issuing an unlimited or a limited banking licence also take into account the
following guidelines (for both domestic and foreign applicants):
- the national-economic preferences for certain banking activities;
- the existing regionai coverage of the Republic of Slovenia by banks;
- the actual bank's performance of activities compared to those stipulated by the existing licence.
3) None.
.PC/W/31/Rev. 1
Page 34
. REPUBLIC OF SLOVENIA (continued)
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence ot natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
(xi) Participation in issues
of all kinds of
securities, including
underwriting and
placement as agent
and provision of
services related to
such issues
(excluding treasury bonds)
(xii) Money broking
(xiii) Asset management, such
as cash or portfolio
management, all forms
of collective investment
management ,custodial,
depository and trust
services (excluding
pension fund management)
(xiv) Seulement and clearing
services for financial
assets, including
securities, derivative
produces, and other
negotiable instruments
Branches of foreign banks must be
incorporated in the Republie of Siovenia
and have legal personality.
Unbound with respect to all types of
mortage banks, savings and loans institutions.
Unbound with respect to establishment of
private pension funds (Non compulsory
pension funds).
Management Companies are commercial
companies established solely for the purpose
of managing investment funds.
Foreign persons may directly or indirectly
acquire a maximum up to 20 per cent of
shares or voting rights of management
companies; for a larger percentage an
approval of the Securites Market Agency
is required.
An Authorized (privatization) Investment
Company is an investment company established
solely for the purpose of gathering the
ownership certificates (vouchers) and the
purchase of shares issued in accordance
with regulations on ownership transformation.
An Authorized Management Company is
established solely for the purpose of
managing the authorized investment companies.
.PC/W/31/Rev. 1
Page 35 REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 36
Modes of supply: 1) Cross-border supply 2) Consumnpion abroad 3) Commercial presence 4) Piesence of natural persons
.
Sector or subsector Limitations on market access limitations on national treatment Additional commitments
Foreign persons may directly or indirectly
acquire a maximum up to 10 per cent of
shares or voting rights of Authorized
(privatization) Management Companies;
for a larger percentage an approval
of the Securities Market Agency is
required with the consent of the Ministry
of Economic Relations and Development.
Investments of the lnvestments Funds in to
securities of foreign issuers are limited
to 10 per cent of the investments of the
Investments Funds. Such securities shall be
listed on those stock exchanges previously
determine by the Securities Market Agency.
Foreign persons may become shareholders
or partners in a Stock: Broking Company
up to 24 per cent of the capital of the
Stock Broking Company by prior approval
of the Securities Market Agency.
Securities of a foreign issuer which have
not yet been offered in the territory of
the Republic of Slovenia may only be
offered by a Stock Broking Company or a
bank licensed to carry out such transactions.
Prior to launching the offer the Stock Broking
Company or a bank shall obtain the permission
of Securities Market Agency. REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 37
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional coumilments
The request for this permission tor offer
securities of a foreign issuer in the Republic
ot Slovenia shall be accompained by draht
prospectus, documentation that the guarantor
of the issue of securities of the foreign
issuer is a bank or a stock broking company,
except in the case of the issue of shares of
a foreign issuer.
4) Unbound except as indicated in Part 1 4) UlJnouiid except as indicated it Part t
(av) Provision and transfer I) None j) None
of financial information,
and financial data 2) None 2) None
pressing and related
software by suppliers 3) None 3) Noen
of other financial services
4) Unhound except as indicated in Part 1 4) Unh)und except as indicated in Part I
(xVi) Advistry, intermedialion
and other auxiliary
financial services on ail
the activities listed in
subparagraphs (v) through
(iv), including credit
reference and analysis,
investment md portfolio
reerch and advice, advice
on acquisitions and on
corporate restracturing
and strategy REPUBLIC OF SLOVENIA (continued)
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
8. HEALTH SERVICES AND
SOCIAL SERVICES
A. Hospital Services
- Private Hospital and
Sanatorium Services
(CPC 9311**
excluding services
provided by the
public seetor)
1) Unbound*
2) Public medical insurance programs may not
cover cost of medicare, supplied abroad
1) Unbound*
2) Service consumers may not be entitled to receive
financial support from public resources. Subject
to authorization by Institute for Health Insurance
of the Republic of Slovenia ("Zavod za zdravstveno
zavarovanje").
3) Authorization by health authorities; when
authorizing the establishment of hospitals due
consideration on a case-by-case basis is taken
of the density of population, existing
facilities, transport infrastructure,
specialization and the distance between
hospitals.
3) Foreign private establishment and their service
consumers may not be entitled lo receive financial
support from public resources including usage of
public medical insurance programs.
Entry into public Health network is subject
to concession from Institute for Health
Insurance of the Republic of Slovenia.
4) Unbound except as indicated in Part 1 4) Unbound except as indicated in Part I
PC/W/31/Rev. 1
Page 38
.
.
.
.
.
. REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 39
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitadions on market access Limitalions on national treatment Additional commitments
B. Other Human Health
Services
- Residential Health
Facilities Services
like Health Resort
Hotels and Therapeutic
Bath Services
(CPC 93193)
1) Unbound*
2) None
3) None
4) Unbound except as indicated in Part I
1 ) Unbound*
2) None
3) None
4) Unbound except as indicated in Part I
9. TOURISM AND
TRAVEL RELATED
SERVICES
A. Hotels. Restaurants
and Catering
(CPC 641, 642, 643
excluding catering in
transport services
sector)
1) Unbound*
2) None
3) None other than location in the protected areas
of particular historic and artistic interest
and within national or landscape parks is
subject to authorization which can be denied.
1) Unbound*
2) None
3) None
4) Unbound except as indicated in Part I
4) Unbound except as indicated in Part I
B. Travel Agencies and
Tour Operators Services
(CPC 7471)
1) Commercial presence required
2) None
1) Commercial presence required
2) None
3) None
3) None REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 40
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
4) Unbound except as indicated an Part I
and commercial presence required .
4) Unbound except as indicated in Part I
and commercial presence required
10. RECREATIONAL,
CULTURAL AND
SPORTINC SERVICES
(other than Audio-visual
Services)
D. Sporting and Other
Recreational Services
other than ski school
services, ski and
mountain guide services,
gambling and betting
services
(CPC 9641, 96491)
1) None
1) None
2) None
2) None
3) None
3) None
4) Unbound except as indicated in Part 1
4) Unbound except as indicated in Part I
11. TRANSPORT SERVICES
A. Maritime Transport
Services
d) Maintenance and Repair
of Vessels
(CPC 8868**)
1) Unbound*
1) Unbound*
2) None
2) None
3) None
3) None
4) Unbound except as indicated in Part 1 4) Unbound except as indicated in Part 1 REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 41
Modes of supply:
1) Cross-border supply
2) Consumption abroad
3) Commercial presence
4) Presence of natural persons
Sector or subsector Limitations on market access Limitations on national treatment Additional commitments
C. Air Transport Services
d) Maintenance and Repair
of Aircraft
(CPC 8868**)
1) Unbound*
1) Unbound*
2) None
2) None
3) None
3) None
4) Unbound except as indicated in Part I
- Computer Reservation
System (CRS)
1) None
4) Unbound except as indicated in Part I
1) For obligation of parent or participating
carriers in respect of a Computer Reservation
System controlled by an air carrier of one
or more third Countries: unbound
2) None
2) None
3) For obligations of parent or participating
carriers in respect of a Computer Reservation
System controlled by an air carrier of one or
more third countries: unbound
4) Unbound except as indicated in Part I
- Sales and Marketing
1) None
4) Unbound except as indicated in Part I
1) For distribution through CRS of air transport
services provided by CRS parent carrier:
unbound.
2) None
2) None
3) For distribution through CRS of air transport
services provided by CRS parent carrier:
unbound.
3) None
3) None REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad
Sector or subsector Limitations on market access
4) Unbound except as indicated in Part I
3) Commercial presence
Limitations on national trealment
4) Unbound except as indicated in Part I
4) Presence of natural persons
Additional commitments
E. Rail Transport
Services
d) Maintenance and Repair
of Rail Transport
Equipment
(CPC 8868**)
F. Road Transport
Services
d) Maintenance and Repair
of Road Transport
Equipment
(CPC 6112**)
H. Services auxiliary to all
modes of transport
b) Storage and Warehouse
Services
(CPC 742)
1)
2)
3)
4)
1)
2)
3)
4)
1)
2)
3)
4)
Unbound*
None
None
Unbound except as indicated in Part I
None
None
None
Unbound except as indicated in Pari I
1)
2)
3)
4)
1)
2)
3)
4)
Unbound*
None
None
Unbound except as indicated in Part I
2).
2)
3)
4)
Unbound
None
None
Unbound except as indicated in Part I
None
None
None
Unbound except as indicated in Part I
Unbound*
None
None
Unbound except as indicated in Part I
.PC/W/31/Rev. 1
Page 42 REPUBLIC OF SLOVENIA (continued)
Modes of supply: 1) Cross-border supply 2) Consumption abroad
Sector or subsector Limitations on market access
3) Commercial presence
Limitations on national treatment
4) Presence of natural persons
Additional. commitments
Additional cammitments
c) Freight Transport
Agency Services/Freight
Forwarding Services
(CPC 748)
1) None 1 ) None other than customs clearance is subject
to limitation to juridical person established
in the Republic of Slovenia
2)
3)
None
None
4) Unbound except as indicated in Part I
2) None
3) None other than customs clearance is subject
to limitation to juridical person established
in the Republic of Slovenia
4) Unbound except as indicated in Part I
Pre-Shipment Inspection
(CPC 749**)
None
None
Unbound except as indicated in Part I
2)
3)
4)
None
None
Unbound except as indicated in Part I
1) Nooe
2)
3)
4)
1) None
PC/W/31/Rev. 1 Page 43 REPUBLIC OF SLOVENIA - DRAFT LIST OF ARTICLE Il (MFN) EXEMPTIONS
Sector or subsector Description of measure Countries to which the Intended duration Conditions creating the need
indicating its inconsistency measure applies for the exemption
with Article Il
PC/W/31/Rev. 1 Page 44
Audiovisual Services
Measures applied for the
implementation of and in
conformity wilh existing or
future co-production agreements
and which provide for national
treatment to the works covered
Parties to the agreements
Indefinite
The promotion of cultural
links between the parties
concerned.
Measures applied for the
implementation of and in
conformity with support
programmes such as the Council
of Europe Convention on
Transfrontier Television,
Eureca, Media and Eurimages
to audiovisual programmes and
supplies to these programmes
meeting specific origin criteria
Preferential treatment of
audiovisual works meeting
European origin criteria
regarding screen-time access
European Countries
European countries
Indefinite
Indefinite
The promotion of cultural
exchange among European
countries based on traditional
cultural links
Promoting common cultural
links and protection of
common cultural heritage
.
.
.
.
. REPUBLIC OF SLOVENIA (continued)
Sector or subsetor Description of measure Countries to which the Intended duration Cotiditions creating the need
indicating its inconsistency measure applies for the exemption
with Article Il
Road Transport
Passenger and
Freight
Computer Reservation
System and
marketing of Air
Transport Services
Measures applied under
existing or future agreements
and which reserve or limit
the provision of transport
services and specify operating
conditions, including transit
permits and/or preferential
road taxes of a transport
services into, in, across and
out of the Republic of Siovenia
to the parties concerned.
Provision of Article 1 of
Regulation (EC) No. 2299/89
as amended by Regulation (EC)
No. 3089/93, whereby the
obligations of CRS systems
vendors or of parent and
participating air carriers
shll not apply where equivalent
treatment to that applied under
the Regulation is not accorded
in the, country of origin of the
parent carrier or of the system
vendor
All countries with which
agreements are or will be
in force
All countries where a CRS
system vendor or a parent
air carrier is located
Indefinite
lndefinite
To protect the integrity of
of roadi transport infrastructure
and the environmnent and to
regulate trafic rights in the
territory of the Republic
of SIovenia and between the
the, countries concemet.
The need for the exemption
results from the insufficient
development of multilaterally
agreed rules for the operation
of CRS..
.PC/W/31/Rev. 1
Page 45.
.
.
. REPUBLIC OF SLOVENIA (continued) PC/W/31/Rev. 1 Page 46
Sector or subsector Description of measure Countries to which the lntended duration Conditions creating the need
indicating its inconsistency measure applies for the exemption
with Article Il
Authorization for a service
supplier of another Member
to establish a commercial
presence or conduct new
activities may be denied
in cases when Slovenian
suppliers are dertied such
access and treatment in the
county of origin of the
service concerned
All countries
Conditional upon the level
of commitments undertaken
by other members
To obtain equal market
access possibilities for
Slovenian suppliers
Financial
Services |
GATT Library | rh127px3197 | Request by Bulgaria for observer status in WTO bodies | January 20, 1995 | World Trade Organization General Council | 20/01/1995 | official documents | WT/L/10 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/rh127px3197 | rh127px3197_90080580.xml | GATT_1 | 180 | 1,140 | RESTRICTED
WT/L/10
20 January 1995
(95-0110)
GENERAL COUNCIL
31 January 1995
REQUEST BY BULGARIA FOR OBSERVER STATUS IN WTO BODIES
The following communication, dated 19 January 1995, has been received from the permanent
Mission of the Republic of Bulgaria to the United Nations and the other International Organizations
in Geneva.
The Republic
the Uruguay Round.
party the intention to
of Bulgaria was among the countries associated with the work of the TNC of
Bulgaria also announced on several occasions in its GATT accession Working
negotiate and become a member of the World Trade Organization.
With the present letter, I have the honour to formally apply, on behalf of my Government,
for observer status for the Republic of Bulgaria in the respective bodies of the WTO. It is our deep
understanding that observership status will be essential for the successful and early conclusion of our
accession negotiations.
We would highly appreciate, if this issue could be addressed by the General Council of the
WTO at its meeting scheduled for 31 January 1995 and resolved in a positive manner.
WORLD TRADE
ORGANIZATION |
GATT Library | jc805mv8928 | Request by Ecuador for observer status in WTO bodies | World Trade Organization, January 20, 1995 | World Trade Organization and World Trade Organization General Council | 20/01/1995 | official documents | WT/L/4 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/jc805mv8928 | jc805mv8928_90080584.xml | GATT_1 | 108 | 720 | RESTRICTED
WT/L/4
20 January 1995
ORGANIZATION
(95-O114)
GENERAL COUNCIL
31 January 1995
REQUEST BY ECUADOR FOR OBSERVER STATUS
IN WTO BODIES
The following communication, dated 19 January 1995, has been received from the Permanent
Mission of Ecuador to the United Nations Office and other International Organizations at Geneva.
The Permanent Mission of Ecuador to the United Nations Office and other international
organizations in Geneva presents its compliments to Mr. Peter Sutherland, Director-General of the
WTO, and has the honour to request that Ecuador be invited to participate as an observer in meetings
of the WTO General Council and the other bodies of the World Trade Organization.
WORLD TRADE |
GATT Library | nv960hq3995 | Request by Mongolia for observer status in WTO bodies | World Trade Organization, January 20, 1995 | World Trade Organization and World Trade Organization General Council | 20/01/1995 | official documents | WT/L/12 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/nv960hq3995 | nv960hq3995_90080576.xml | GATT_1 | 85 | 561 | WORLD TRADE
RESTRICTED
WT/L/12
20 January 1995
ORGANIZATION
(95-0106)
GENERAL COUNCIL
31 January 1995
REQUEST BY MONGOLIA FOR OBSERVER STATUS IN WTO BODIES
The following communication, dated 19 January 1995, has been received from the permanent
Mission of Mongolia to the United Nations Office and other International Organizations in Geneva.
The Government of Mongolia, which is in the process of negotiating accession to GATT and
WTO, would like to be accorded observer status at the meetings of the WTO General Council and
its subsidiary bodies. |
GATT Library | dg346bj8438 | Request by Panama for observer status in the General Council | World Trade Organization, January 20, 1995 | World Trade Organization and World Trade Organization General Council | 20/01/1995 | official documents | WT/L/5 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/dg346bj8438 | dg346bj8438_90080585.xml | GATT_1 | 101 | 670 | RESTRICTED
WORLD TRADE
WT/L/5
20 January 1995
ORGANIZATION
(95-O115)
GENERAL COUNCIL
31 January 1995
REQUEST BY
PANAMA FOR OBSERVER
GENERAL COUNCIL
STATUS IN THE
The following communication, dated 19 January 1995, has been received from the Permanent
Mission of Panama to WTO.
The Permanent Mission of Panama to the General Agreement on Tariffs and Trade
(GATT)/WTO presents its compliments to the Secretariat of the World Trade Organization and expresses
its interest in attending meetings of the WTO General Council as an observer since the Government
of the Republic of Panama is at present completing the procedure for accession to the Organization. |
GATT Library | sr759fk1261 | Request by Qatar for observer status in the General Council | World Trade Organization, January 20, 1995 | World Trade Organization and World Trade Organization General Council | 20/01/1995 | official documents | WT/L/8 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/sr759fk1261 | sr759fk1261_90080579.xml | GATT_1 | 112 | 759 | RESTRICTED
WORLD TRADE WT/L/8
20 January 1995
ORGANIZATION
(95-0109)
GENERAL COUNCIL
31 January 1995
REQUEST BY QATAR FOR OBSERVER STATUS IN THE GENERAL COUNCIL
The following communication, dated 19 January 1995, has been received from the permanent
Mission of Qatar to the United Nations Office and other International Organizations in Geneva.
The permanent Mission of the State of Qatar to the United Nations Office and other International
Organizations in Geneva presents its compliments to therecretariat of GATT/WTO and has the honour
to inform that the State of Qatar wishes to participate as an observer in the first meeting of General
Council of the WTO due to be held on 31 January 1995. |
GATT Library | tc016wc4486 | Request by Russian federation for observer status in WTO bodies | World Trade Organization, January 20, 1995 | World Trade Organization and World Trade Organization General Council | 20/01/1995 | official documents | WT/L/17 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/tc016wc4486 | tc016wc4486_90080582.xml | GATT_1 | 139 | 932 | WORLD TRADE
ORGANIZATION
RESTRICTED
WT/L/17
20 January 1995
(95-0112)
GENERAL COUNCIL
31 January 1995
REQUEST BY RUSSIAN FEDERATION FOR OBSERVER STATUS IN WTO BODIES
The following communication, dated 20
Mission of the Russian Federation to the United
at Geneva.
January 1995, has been received from the permanent
Nations Office and other International Organizations
The permanent Mission of the Russian Federation to the United Nations Office and other
International Organizations at Geneva presents its compliments to Mr. Peter D. Sutherland, Director-
General of the World Trade Organization (WTO) and has the honour to inform that the Government
of the Russian Federation would like to obtain the observer status in the General Council and its
subsidiary bodies to be better acquainted with the World Trade Organization (WTO) and its activities
in the process of negotiations on Russia's accession to the WTO. |
GATT Library | tp841gs4068 | Request by Sudan for observer status in WTO bodies | World Trade Organization, January 20, 1995 | World Trade Organization and World Trade Organization General Council | 20/01/1995 | official documents | WT/L/13 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/tp841gs4068 | tp841gs4068_90080577.xml | GATT_1 | 133 | 875 | WORLD TRADE
ORGANIZATION
RESTRICTED
WT/L/13
20 January 1995
(95-0107)
GENERAL COUNCIL
31 January 1995
REQUEST BY SUDAN FOR OBSERVER STATUS IN WTO BODIES
The following communication, dated 19 January 1995, has been received from the permanent
Mission of Sudan to the United Nations Office and other International Organizations in Geneva.
As you are aware, the Sudan Government has applied for accession to the World Trade
Organization. Furthermore, the concerned Sudanese authorities are in the process of finalizing the
Memorandum of Foreign Trade Régime to submit it to the Working Party as soon as possible.
Meanwhile, the Government of the Sudan would like to submit its request for Observer status
in the Ministerial Conference, the General Council and their subsidiary bodies of the WTO, as a
preparatory step towards full membership in the Organization. |
GATT Library | bx069vj7995 | Request by the Arab Monetary Fund for Observer Status in the General Council. The Council for Trade in Goods and the Council for Trade in Services | World Trade Organization, February 10, 1995 | World Trade Organization | 10/02/1995 | official documents | WT/L/35 and 0240-0283 | https://exhibits.stanford.edu/gatt/catalog/bx069vj7995 | bx069vj7995_90080738.xml | GATT_1 | 352 | 2,250 | RESTRICTED
WORLD TRADE WT/L/35
10 February 1995
ORGANIZATION
(95-0275)
Original: English
REQUEST BY THE ARAB MONETARY FUND FOR OBSERVER STATUS
IN THE GENERAL COUNCIL. THE COUNCIL FOR TRADE IN GOODS
AND THE COUNCIL FOR TRADE IN SERVICES
The following communication, dated 2 February 1995, has been received from the
Director-General of the Arab Monetary Fund (AMF).
As you know the GATT Council of Representatives agreed at its meeting on 17 December 1993
to accord observer status to the Arab Monetary Fund (AMF) at the meetings of the GATT Council
and the Sessions of the CONTRACTING PARTIES.
In view of the entry into force of the World Trade Organization (WTO) as a successor to the
GATT as of 1 January 1995 and in the absence of automaticity of transfer of membership and
observership status from the latter to the former, the AMF would like hereby to reapply for its admission
as an observer organization to meetings of the General Council, Council for Trade in Goods and Council
for Trade in Services in the WTO.
In support of this request I should re-emphasize that AMF's basic purposes include beside
assistance to its member countries in the correction of balance-of-payments disequilibria the promotion
of trade, exchange and payments liberalization and open markets at both the regional and international
levels. Since its inception AMF has been endeavouring to promote a greater, active participation of
its members in international efforts aimed at the creation and maintenance of a more balanced world
trade system. AMF continues to firmly believe that the effective discharge of its mission in that respect
requires inter alia following the work of WTO as closely as it did with regard to GATT. In testimony
of this the AMF has recently, among several other related initiatives, organized jointly with the Arab
Fund for Economic and Social Development in Kuwait a specialized seminar on the Uruguay Round
and Arab countries in which WTO was actively represented.
I would therefore appreciate it if, on the strength of the above representation, this matter could
be given favourable consideration at an appropriately timed meeting of the relevant WTO body. |
GATT Library | xr633dh7880 | Request by the former Yugoslav Republic of Macedonia for observer status in WTO bodies | World Trade Organization, January 20, 1995 | World Trade Organization and World Trade Organization General Council | 20/01/1995 | official documents | WT/L/16 and 0128-0143 | https://exhibits.stanford.edu/gatt/catalog/xr633dh7880 | xr633dh7880_90080599.xml | GATT_1 | 1,041 | 7,687 | ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIO
WT/L/16
20 January 1995
WORLD TRADE ORGANIZATION
(95-0134)
GENERAL COUNCIL
31 January 1995
REQUEST BY THE FORMER YUGOSLAV REPUBLIC OF MACEDONIA
FOR OBSERVER STATUS IN WTO BODIES
In a communication received on 20 January 1995, the Government of the Former Yugoslav
Republic of Macedonia requested to take part in the work of the Ministerial Conference, General Council
and other subsidiary bodies of the WTO, as observer.
CONSEIL GENERAL
31 janvier 1995
DEMANDE DE STATUT D'OBSERVATEUR AUPRES DES ORGANES
DE L'OMC PRESENTEE PAR L'EX-REPUBLIQUE YOUGOSLAVE
DE MACEDOINE
Dans une communication que le Secrétariat a reçue le 20 janvier 1995, le gouvernement de
l'ex-République yougoslave de Macédoine demandait à participer aux travaux de la Conférence
ministérielle, du Conseil général et des autres organes subsidiaires de l'OMC en qualité d'observateur.
CONSEJO GENERAL
31 de enero de 1995
ANTIGUA REPÚBLICA YUGOSLAVA DE MACEDONIA - SOLICITUD DE
LA CONDICIÓN DE OBSERVADOR EN LOS ÓRGANOS DE LA OMC
En una comunicación recibida el 20 de enero de 1995, el Gobierno de la antigua República
Yugoslava de Macedonia ha solicitado participar en calidad de observador en los trabajos de la
Conferencia Ministerial, el Consejo General y los órganos subsidiarios de la OMC.
RESTRICTED GW/15
24 January 1995
FIRST WTO TRADE POLICY COURSE OPENS IN GENEVA
Continuing GATT's practice of regularly organizing training courses on trade policy, international
trade law and the multilateral trading system, the WTO inaugurated this week its first trade policy course
for twenty-four officials from as many developing countries. The course, to be held in French, began
on 23 January and will end 28 April 1995.
The aim of the training courses is to provide participants with greater understanding of trade
policy matters and major problems of international trade. With the WTO now in force, courses will
also address the results of the Uruguay Round of multilateral trade negotiations and the rights and
obligations of WTO members. Offered in English, French and Spanish, the courses are open to officials
from developing countries, including countries which are not GATT or WTO members.
The courses have a practical orientation and are designed to help officials prepare themselves
for the tasks awaiting them in their own administrations. The participants already have responsibilities
for the formulation and conduct of foreign trade policy and are nominated by their respective
governments. Apart from a series of lectures on WTO law, the programme includes participation in
seminars and group discussions, a workshop on negotiating techniques and simulated exercises for
conducting trade negotiations and for settling disputes. Participants also attend official meetings.
During the course, participants undertake a study tour in Switzerland and a study tour abroad,
which include visits to institutions and enterprises connected with foreign trade. In addition to WTO
Secretariat officials, many guest lecturers, including senior officials of government delegations and
international organizations, as well as academics, are invited to address the participants.
Since 1955, GATT has organized 78 training courses for 1,389 officials from 124 developing
countries and ten regional organizations. These figures do not include the 97 senior trade officials from
Eastern and Central European and Central Asian countries who participated in the four special courses
organized by GATT since 1991, with the financial support of the Swiss Government, nor the 24 senior
officials from the Russian Federation and Ukraine who attended the special GATT course funded by
the United States in 1994.
95-0135
MORE GW/15
Page 2/3
LISTE DES PARTICIPANTS/LIST OF PARTICIPANTS/LISTA DE PARTICIPANTES
Argentine M. Juan A. MARCHETTI, Sécretaire d'ambassade, Sous-Sécretariat des négociations
économiques internationales, Ministère des affaires étrangères, du commerce
international et du culte, Buenos Aires.
Bénin M. Segnon C.A. QUENUM, Directeur adjoint du commerce extérieur, Ministère
du commerce et du tourisme, Cotonou.
Brésil M. Sarquis J. SARQUIS BUAINAIN, Assistant, Division de politique financière,
Département de politique technologique, financière et de développement, Secrétariat
adjoint général pour les affaires d'intégration, économiques et de commerce
extérieur, Ministère des Affaires étrangères, Brasilia.
Burkina Faso M. Lancina M . KI, Directeur, Ministère de l'industrie, du commerce et des mines,
Ouagadougou.
Burundi M. Emmanuel NKENGURUTSE, Directeur adjoint du commerce extérieur,
Ministère du commerce et de l'industrie, Bujumbura.
Cameroun M. Amédée NGOUANTEU, Assistant technique chargé du secteur de la
libéralisation du commerce, Ministère de l'économie et des finances, Yaoundé.
Chine Mme Bing HU, Chef de section, Département du commerce et des affaires
économiques, MOFTEC, Beijing.
Colombie Mlle Marta O. GALLON AGUDELO, Conseillère du Ministre, Ministère du
commerce extérieur, Bogota.
Congo Mme Jeanne C. NIATY-MOUAMBA, Directrice, Ministère du commerce, de
la consommation et des petites et moyennes entreprises, Brazzaville.
Côte d'Ivoire M. Thomas ATOKRE, Chef de service, Direction de la promotion du commerce
extérieur, Ministère de l'industrie et du commerce, Abidjan.
Guinée M. Mamadou SOUMAH, Chargé d'études, Division des organismes internationaux,
Direction nationale de la coopération internationale, Ministère des affaires
étrangères et de la coopération, Conakry.
Madagascar Mlle Fleurette M. MIANGOZARA, Chef, Service des relations commerciales
multilatérales, Division CNUCED, Ministère du commerce, Antananarivo.
Mali Mme Niamoto SANGARE, Chef, Division du commerce extérieur, Direction
nationale des affaires économiques, Ministère des finances et du commerce,
Bamako.
Maroc M. Elhassan JOUAOUINE, Chargé du dossier GATT, Ministère du commerce
extérieur, Rabat.
MORE GW/15
Page 4
Mauritanie M. Sidaty O. CHEIKH, Chef, Division de l'ONU, Ministère des affaires étrangères
et de la coopération, Nouakchott.
Mexique Mme Carmen BERNAL, Chef, Département des questions institutionnelles du
GATT, Ministère du commerce et du développement industriel, Mexico.
République M. Victor MEIGARI, Directeurdes études, Ministère du commerce, de l'industrie
centrafricaine et des petites et moyennes entreprises, Bangui.
Sénégal M. Amadou H. NDIAYE, Chef, Division des négociations commerciales
internationales, Direction du commerce extérieur, Ministère du commerce et
de l'artisanat, Dakar.
Syrie M. Saffouh SUDKI AL-NABOULSI, Directeur adjoint, Direction du commerce
extérieur, Ministère de l'économie et du commerce extérieur, Damas.
Tchad M. Madibaye DJIMADOUMBAYE, Chef, Service des relations commerciales
et actions promotionnelles, Ministère de l'économie et du tourisme, N 'Djamena.
Togo M. Kueku-Banka M. JOHNSON, Chargé d'études des questions commerciales,
Cabinet du Ministre, Ministère du commerce, des prix et des transports, Lomé.
Tunisie M. Lassaâd BEN HASSINE, Administrateur, Ministère de la coopération
internationale et de l'investissement extérieur, Tunis.
Venezuela Mme Alicia C. CARIAS, Planificateur en chef, Ministère du développement
économique, Caracas.
Viet Nam M. Giam DAO HUY, Chargé du dossier GATT, Ministère du commerce, Hanoi.
END |
GATT Library | yh973df5420 | Request by the People's Democratic Republic of Algeria for Observer Status in WTO Bodies | World Trade Organization, February 21, 1995 | World Trade Organization | 21/02/1995 | official documents | WT/L/34 and 0342-0367 | https://exhibits.stanford.edu/gatt/catalog/yh973df5420 | yh973df5420_90080794.xml | GATT_1 | 1,949 | 13,400 | RESTRICTED
WORLD TRADE WT/L/34
21 February 1995
ORGANIZATION
(95-0361)
Original: French
REQUEST BY THE PEOPLE'S DEMOCRATIC REPUBLIC OF ALGERIA
FOR OBSERVER STATUS IN WTO BODIES
The following communication, dated 30 January 1995, has been received from the permanent
Mission of the People's Democratic Republic of Algeria to the United Nations Office and Other
International Organizations in Switzerland.
The Permanent Mission of the People's Democratic Republic of Algeria to the United Nations
and other International Organizations in Switzerland presents its compliments to the World Trade
Organization (WTO) and, with reference to the forthcoming meeting of the General Council of the
World Trade Organization, to be held on 31 January 1995, has the honour to request that it be granted
observer status to this body and to the other relevant organs of the WTO.
As a participant in the Uruguay Round negotiations, Algeria welcomed the multilateral impetus
stimulated by the successful outcome of the Round and, pending the conclusion of its internal initiatives
with a view to its admission to the WTO, wishes to continue to display its interest in the newly
established multilateral system and its fundamental objectives.
In that respect, Algeria will not fail to honour the obligations inherent in the status which it
is requesting.
In accordance with the guidelines concerning the status of Government Observers to the World
Trade Organization, a brief memorandum describing Algeria's policies in the economic and commercial
fields is attached to this communication.
The Permanent Mission of the People's Democratic Republic of Algeria takes this opportunity
to reiterate the assurances of its highest consideration to the World Trade Organization. WT/L/34
Page 2
TRADE AND INVESTMENT REFORM
Algeria is currently engaged in profound reforms aimed at introducing a market economy and
progressively integrating the country into the multilateral trading system. These reforms, which began
in 1988, have already had the following results:
- Public enterprises becoming autonomous, through their transformation into economic
entities governed by the Trade Code and subject to the rules of financial profitability;
- demonopolization of commercial activities; and
- opening of investment to the private sector.
The pragmatic and progressive approach adopted and the sustained efforts to adapt the institutional
framework have, through the introduction of the stabilization programme, made it possible to set the
framework and conditions for an open economy based on market mules.
More specifically, these reforms have been reflected in changes in organization and in the
legislative and regulatory framework in all areas, particularly trade and investment.
1. TRADE
In trade, the reforms have led to liberalization of foreign trade and prices and the introduction
of a legal framework to promote and protect competition.
1.1 Foreign trade
Foreign trade policy is based on the principle of freedom of trade. The current provisions
do not include any non-tariff barriers to foreign trade operations.
The import and export regime and the tariff regulations applicable to them are summarized
below:
1.1.1 Import and export regime
Access to foreign trade, which for a long time was restricted tc State companies, is now open
to all natural and legal persons acting in the context of their activity and bylaws and in compliance
with trade regulations.
(a) Imports
The new provisions have resulted in the abolition of the prior control and specifications applicable
to products destined for resale in their existing state.
The new arrangements, mainly introduced by Instruction No. 20/94 of 12 April 1994 of the
Bank of Algeria setting the financial conditions for import operations, provide for the free importation
of all products, with the exception of those which are prohibited or suspended:
- Prohibition mainly concerns products which might constitute a threat to security, health
and the environment; WT/L/34
Page 3
- suspension concerns products whose importation might seriously injure an infant
domestic industry. Currently, following abrogation, from 1 January 1995, of the
negative list established by the Decree of 10 April 1994, as amended and supplemented,
no product is on the suspension list. Protection of domestic industry will, in the future,
be ensured essentially by customs tariffs.
The allocation of foreign exchange, previously carried out by the Administration, has now
been devolved to commercial banks, subject to compliance with the foreign exchange regulations and
the prudential standards and rules issued by the Bank of Algeria.
Under the foreign exchange regulations, imports may be settled in cash or be charged to a
credit line. However, with regard to capital goods, importation is subject to the obligation of financing
by foreign credits whose length matches the nature of the equipment and may in no case be less than
three years.
In fact, import operations are now dealt with directly between banks and their customers
essentially on the basis of criteria of solvency and economic and financial profitability.
The role of the Administration, which no longer intervenes at this stage, has been redirected
towards preparation and introduction of instruments for economic regulation and monitoring the market.
(b) Exports
Export operations are also free and thus not subject to any prior administrative authorization.
The list of products whose export has been suspended is restricted to palm plants, breeding
animals and objects of national interest from the standpoint of history, art and archaeology.
For exports, the objective is to achieve development and diversification of non-petroleum exports,
by establishing an effective and stimulating regulatory framework.
Apart from the beneficial effects expected from the devaluation of the Algerian dinar and the
measures for restructuring industry by improving product competitiveness, it is planned to:
- Revive and realize the project for creating an export guarantee and insurance company;
- to introduce an office for promoting foreign trade, which will be responsible in particular
for supporting and assisting exporters.
In addition, considering that trade promotion includes restructuring and simplifying the relevant
procedures throughout the foreign trade chain (banks, customs, transit, transport etc.) procedures which
currently are an important factor in causing hold-uns. delays and excess costs, a committee to facilitate
trade has been set up.
The tasks of this committee, which comprises representatives of the administrations and bodies
concerned as well as traders, are:
- Simplifying procedures for foreign trade operations;
- encouraging economic operators and the administration to adopt the best practices in
organizing, regulating and managing foreign trade; WT/L/34
Page 4
- contributing to upgrading the professional skills of those involved in foreign trade
operations.
Finally, it should be pointed out that a draft law on foreign trade is currently being adopted.
The draft law:
- Enshrines the principle of liberalization of foreign trade;
- sets out safeguard and anti-dumping measures, and establishes the means and conditions
for their implementation;
- defines the framework for foreign trade.
1. 1.2 Tariff regulations
(a) Customs Tariff Nomenclature
The Customs Tariff Nomenclature has been based since 1 January 1992 on the Harmonized
Commodity Description and Coding System.
The Nomenclature includes, in addition to the six digit codes of the Harmonized System, a
seventh digit used in the context of the Maghreb Arab Union and an eighth digit for national use.
Types of duties. Customs duties under the Tariff are duties based on value (ad valorem duties).
General description of the structure of the Customs Tariff. The Tariff consists of the
following customs duties: exempt, 3, 7, 15, 25, 40 and 60 per cent.
The Tariff is composed of eight groups of products totalling 6,108 tariff subheadings.
Distribution of subheadings by product group:
1. Food 656
2. Energy and lubricants 88
3. Raw products 514
4. Semi-finished goods 1988
5. Agricultural equipment 52
6. Industrial capital goods 1113
7. Consumer goods 1690
8. Industrial gold 7
Distribution of customs duties (in 1994):
Exempt 3 7 15 25 40 60%
137 660 1,151 1,263 946 857 1 WT/L/34
Page 5
(b) Import charges and fees
The customs dues are 2 per cent. They are levied on all operations which are subject to customs
declaration on the basis of the value of the goods.
Operations giving rise to a detailed declaration of goods are not subject to this charge:
- Goods admitted free of duties and charges;
- goods admitted under a regime suspending payment of duties;
- goods whose customs value does not exceed 1,000 dinars;
- goods imported or exported by post, parcel post or by travellers; and
- goods reimported after being displayed at an exhibition, fair of other event.
In addition, the fee for customs formalities is 4 per cent.
(c) Other charges under the Customs Code
- Surcharges (supplementary customs duties). These surcharges, in the form of
supplementary customs duties, are provided for in Article 8 bis cf the Customs Code
to prevent a State taking discriminatory measures such as to treat Algerian products
less favourably than those of other States, or taking measures that might hinder Algerian
trade. Surcharges on customs duties are decided by executive decree.
- Countervailing or anti-dumping duties. These duties are provided for in Article
8 ter of the Customs Code to prevent imports causing or threatening injury to an existing
or planned domestic industry.
(d) Exemption from customs duties under specific provisions
Exemptions from customs duties are granted under international agreements or in application
of measures taken under the Finance Law.
(e) Tariff preferences
The customs tariff consists of only a single column of customs duties. Tariff preferences are
provided for in the context of tariff and trade agreements concluded by Algeria. These agreements
provide for freedom from customs duties and equivalent charges for the originating products traded.
1.2. Prices
In 1986, 80 per cent of the prices in the consumer price index basket were controlled and
20 per cent free.
The above proportions have now been reversed, since currently 90 per cent of prices are free. WT/L/34
Page 6
Only the prices of certain products, which are sensitive or for which conditions of competition
have not yet been brought about, are maintained under a system of price or margin ceilings. This
mainly concerns basic food products (corn, milk, seeds) and energy products.
The objective is to phase out the above lists until there is total price liberalization.
1.3. Competition
A law on competition has been adopted and promoted. This law establishes the legal framework
of competition and mechanisms for protection.
A "national competition council", essentially responsible for ensuring compliance with rules
of competition, has been included in the provisions of this law.
2. INVESTMENT
A legislative decree aimed at promoting investment was signed in 1994. It establishes more
open arrangements and includes liberalization of investment for foreign capital and national private
capital by introducing a framework of incentives with a package of guarantees to protect and attract
investors.
The decree on investment provides for freedom to invest in all sectors of activity, except those
expressly reserved by law to the State.
The form of investment (direct investment, in partnership with a local company, participation,
takeover, etc.) is left to the free choice of the investor.
Investment is subject to a simple declaration essentially intended to identify and monitor
investments, particularly those entitled to favourable treatment by the law.
In addition, the decree introduces promotion instruments and incentives consisting of financial,
fiscal or customs advantages.
Two regimes areestablished: ageneral regime applicable to all investments andaspecial regime
applicable to investments in specific zones.
The law also grants a series of guarantees concerning the transfer of income from capital invested
as well as the capital itself in the case of transfer of ownership, and provides for recourse to international
arbitration for settlement of disputes related to the investment.
Finally, it provides for the establishment of an agency responsible for promoting, supporting
and monitoring investments.
In order to facilitate the installation of investors, the agency has organized a single window
at which investors can complete all the necessary formalities (trade register, customs, etc.). |
GATT Library | dv298wd8768 | Request by the separate customs territory of Taiwan, Penghu, Kinmen and Matsu for observer status in WTO bodies | World Trade Organization, January 20, 1995 | World Trade Organization and World Trade Organization General Council | 20/01/1995 | official documents | WT/L/14 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/dv298wd8768 | dv298wd8768_90080581.xml | GATT_1 | 127 | 804 | WORLD TRADE
RESTRICTED
WT/L/14
20 January 1995
ORGANIZATION
(95-0111)
GENERAL COUNCIL
31 January 1995
REQUEST BY THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU,
KINMEN AND MATSU FOR OBSERVER STATUS IN WTO BODIES
The following communication, dated 19 January 1995, has been received from the Representation
of the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu in GATT.
As my Government is in the process of negotiating our accession to the GATT/WTO, we believe
it will be most useful for us to participate as an observer in the activities of the World Trade
Organization. In this connection, I would appreciate it very much if arrangement could be made for
us to attend the meetings of the WTO Ministerial Conference, the WTO General Council and their
subsidiary bodies. |
GATT Library | hq116fq2012 | Request by the Sultanate of Oman for Observer Status in WTO Bodies | World Trade Organization, February 10, 1995 | World Trade Organization | 10/02/1995 | official documents | WT/L/33 and 0240-0283 | https://exhibits.stanford.edu/gatt/catalog/hq116fq2012 | hq116fq2012_90080740.xml | GATT_1 | 1,763 | 11,269 | WORLD TRADE
RESTRICTED
WT/L/33
10 February 1995
ORGANIZATION
(95-0282)
Original: English
REQUEST BY THE SULTANATE OF OMAN FOR
OBSERVER STATUS IN WTO BODIES
The following communication, date 16 January 1995, has been received from the Ministry
of Foreign Affairs of the Sultanate of Oman.
I have the honour to convey to you the request of the Government of the Sultanate of Oman
for observer status in the General of the WTO and its subsidiary bodies.
The Government of Oman intends to initiate negotiations for accession to the WTO Agreement
in the near future. The observer status would enable the Government of Oman to acquaint itself with
the WTO and its rules, procedures, working methods and activities, thus assisting it in its preparations
for and initiation of negotiations for accession to the WTO.
A note on the current economic and trade policies and the foreign trade regime of Oman is
attached.
The Government of Oman would be ready to accept obligations as a observer including the
obligations to make financial contribution to the WTO.
It is requested that this communication may please be placed before the General Council of
WTO at its next meeting. WT/L/33
Page 2
THE ECONOMY AND FOREIGN TRADE REGIME OF THE SULTANATE OF OMAN
Sec. I. General introduction:
The Sultanate of Oman is located in the extreme south-east corner of the Arabian Peninsula.
It has a total land area of 300,000 km.² and a population of roughly 2 million of whom 1.5 million
are omanis. It has a coastline of 1,700 km. extending from the straight of Hormuz on the Gulf of
Oman in the north to the border with Yemen in the south facing the Arabian Sea.
Sec. Il. The economy:
(a) General description
The economy of the Oman has taken a giant leap-forward since the year 1970 when H.M. Sultan
Qaboos assumed the mentle of leadership of his country with the help from the rising revenues from
the sales of crude oil. The economy of the Sultanate of Oman has been transformed from a closed
subsistence economy based on small-scale agriculture, fishing, handicrafts and petty trading into a
complex modern sector with a world-wide international trade.
Since 1976 the Sultanate of Oman has launched a series of five year development plans aimed
at diversification of the economy, improvement of living standards, achieving substantial regional
development within the country, strengthening of the role of the private sector, development of and
sustenance of the physical infrastructure and development and upgrading of human resources.
The main focus of the current, or fourth five-year development plan which commenced on
1 January 1991 is to continue the process of economic diversification by placing emphasis on investment
in income-producing non-oil sectors particularly agriculture, fisheries, manufacturing, tourism and
the service sectors, to continue regional development within the Sultanate, to promote the role of the
private sector and its contribution to various areas of economic activity in a system based on free market
economy and to raise the level of national participation in the labour force and realising the aims of
omanization so as to reduce dependence on foreign labour.
The Sultanate of Oman believes strongly that the diversification of its economy can only be
achieved through broader private sector participation in the economy. The Government has therefore
set a wide range of policies and measures for private sector led growth and diversification during its
fourth five-year plan. These include the pursuit of economic, financial and monetary policies for
encouraging the private-sector and providing a suitable investment climate for attracting local as well
as foreign investment, the revision updating of policies and measures on a regular basis to remove
any bottlenecks of difficulties experienced by the private sector etc.
The Sultanate of Oman intends to increase the focus of its development efforts on educating
its Omani population so as to increase omani participation in the labour force. Particular importance
is given to linking the educational and vocational training systems with the labour force plans so as
to create conformity between graduates of educational training institutes and the skill requirements
of the national economy. Technical education and vocational training will have to be developed and
their curricula developed.
The Sultanate accords considerable attention towards the conservation of the environment and
the prevention of pollution. Its efforts in the field of environment has been honoured internationally WT/L/33
Page 3
when it was selected among the ten top countries of the world by the United Nations Programme for
the environment for its attention to the environment and protection of natural resources.
(b) Current economic situation
The Sultanate of Oman's Gross Domestic Product has increased from RO 104 million (US$270
million) in 1970 to RO 4,493 million (US$11,682 million) in 1993. The average per capita income
increased from RO 133 (US$346) in 1970 to RO 2,247 (US$5,842) in 1993.
The production of crude oil has increased form 332,000 barrels per day in 1970 to 685,000
barrels per day in 1990 and about 800,000 barrels per day in 1994. The capacity of refining the crude
oil has also increased from 34,000 barrels per day in 1982 to 80,000 barrels per day in 1987.
The production of natural gas has increased from 93 billion cubic feet in 1980 to 657 billion
cubic feet in 1993. Exploration efforts have been intensified and the reserves at present are estimated
at 21 trillion cubic feet and are expected to increase to about 34 trillion cubic feet with the completion
of intensive exploratory efforts which are underway.
The total revenues of Government have increased from RO 3,126 million (US$8,128 million)
during the First Five-Year Plan to RO 7,108 million (US$18,481 million) during the Third Five-Year
Plan. Of these total revenues, non-oil revenues increased from RO 266 million (US$692 million) during
the First Five-Year Plan. Government revenues reached RO 1,717 million (US$4,464 million) in 1993.
Of these total revenues, non-oil revenues accounted for RO 414 million (US$1,076 million).
(c) Exchange rate system
The Sultanate of Oman has continued to maintain a liberal exchange system whose currency
since February 1973 has been pegged to the US dollar at RO 1=2.8952. On 25 January 1986, the
Omani Rial was devalued against the US$ whose exchange rate became RO 1 =2.6008 as a result of
a severe drop in oil prices. The devaluation was mainly intended to raise the domestic cost of imported
goods and services in order to counter the falling effects of oil prices on the balance of payments.
(d) Foreign trade
The Sultanate's exports are mainly oil and related products, non-oil commodities of domestic
origin and re-exports. Despite the increase in non-oil exports of Omani origin, oil exports accounted
for 78.6 per cent share in the total exports in 1993.
The present main non-oil exports of the Sultanate of Oman are live animals, vegetable products,
animal or vegetable fat and oils foodstuffs, beverages, tobacco and products thereof, mineral products,
products of chemical and allied industries, plastics, rubber articles thereof, textiles and articles thereof,
base metals and articles thereof etc. The main import items are food and live animals, beverages and
tobacco, crude materials inedible except fuels, mineral fuels, lubricants and related materials, animal
and vegetable oil and fats, chemicals, manufactured goods, machinery and transport equipment etc.
In 1993 non-oil exports amounted to RO 442 million (US$1.149 million) while imports totalled RO 1,652
million (US$4,295 million).
The Sultanate's principal trading suppliers are the UAE, Japan, UK, USA, Germany, Holland,
France, India, Saudi Arabia and Australia. The imports from the UAE are mainly re-exports. The
Sultanate's main exports partners are UAE, Iran, Hongkong, Saudi Arabia, Tanzania, USA, UK,
Singapore, India and Kenya. WT/L/33
Page 4
Sec. III. Foreign trade regime:
(a) General description
The Sultanate of Oman has taken a liberal attitude towards trade in the context of an open
economy. There are virtually no trade or foreign exchange restrictions on payments or transfers for
international current or capital transactions.
(b) Customs tariff and nomenclature
The general rate of import tariff is 5 per cent. However, about half the tariff lines are free
of duty. A few items are subject to items higher than 5 per cent for either social reasons or to assist
infant industries. For example alcoholic beverages, pork products and tobacco products are subject
to import duties of 100 per cent and 50 per cent respectively, and cables and special type of cement
are liable to duties of 25 per cent.
Imports meant for use by the Government Departments and Agencies are free of duty.
Oman uses the Harmonized System to classify goods for customs purposes.
(c) Internal taxes
Oman does not have any internal taxes in the nature of turnover tax, value-added tax, excise
duties or similar taxes.
(d) Quantitative restrictions and licensing
There are very few import restrictions in Oman. The import of petroleum products is prohibited
in circumstances where such products can be supplied by the Oman Oil Refinery in quantities sufficient
to satisfy domestic requirements. Importation of dates and lime is restricted as they are produced in
sufficient quantities to meet domestic demand. There are seasonal restrictions on such items as bananas,
cauliflower, alfalfa and tomatoes during the production season to safeguard the interests of the local
growers.
Oman does not use any system of licensing for a very large part of its imports.
(e) Customs valuation
Oman's customs valuation is based on the price paid or agreed to be paid for the imported
goods at the port of export plus expenses occurred until the goods reach the Sultanate. Such expenses
include transport and freight charges and insurance incurred until the port of discharge.
(f) Export regulations
There are no export duties in Oman. There are no export restrictions on any item. Oman
does not use any export subsidies for any agricultural or industrial items.
(g) Regional integration
Oman is a member of the free-trade area among member states of the Arab Gulf Cooperation
Council (AGCC). Imports from and exports to other AGCC countries are free of duties and restrictions. WT/L/33
Page 5
(h) Laws
The permissible forms of conducting business in Oman for foreign firms and individuals and
the incentives available are contained in the laws cited below:
(1) Foreign Business and Investment Law issued in 1974 and amended by Decree
No. 2/1977 and Decree No. 16/1978;
(2) Commercial Companies Law of 1974;
(3) Commercial Register Law of 1974;
(4) Commercial Agencies Law No. 26/77;
(5) Organization and Encouragement of Industry Law of 1978;
(6) Financial Support to the Private Sector in the Spheres of Agriculture, Fisheries, Industry,
Minerals and Quarries Law No. 85/80;
(7) Companies' Income Tax Law No. 47/81. |
GATT Library | pt776mr1277 | Request by Ukraine for observer status in WTO bodies | World Trade Organization, January 26, 1995 | World Trade Organization and World Trade Organization General Council | 26/01/1995 | official documents | WT/L/19 and 0128-0143 | https://exhibits.stanford.edu/gatt/catalog/pt776mr1277 | pt776mr1277_90080601.xml | GATT_1 | 98 | 651 | RESTRICTED
WORLD TRADE
ORGANIZATION
WT/L/19
26 January 1995
(95-0138)
GENERAL COUNCIL
31 January 1995
REQUEST BY UKRAINE FOR OBSERVER STATUS IN WTO BODIES
The following communication, dated 23 January 1995, has been received from the Governmental
Commission on Ukraine's Accession to GATT.
The Governmental Commission on Ukraine's Accession to GATT has the honour to inform
that the Government of Ukraine would like to obtain the observer status in the General Council and
its subsidiary bodies to be better acquainted with the World Trade Organization and its activities in
the process of negotiations on Ukraine's accession to the WTO. |
GATT Library | ms530km6724 | Request by Vietnam for observer status in WTO bodies | World Trade Organization, January 20, 1995 | World Trade Organization and World Trade Organization General Council | 20/01/1995 | official documents | WT/L/15 and 0128-0143 | https://exhibits.stanford.edu/gatt/catalog/ms530km6724 | ms530km6724_90080598.xml | GATT_1 | 95 | 618 | WORLD TRADE
RESTRICTED
WT/L/15
20 January 1995
ORGANIZATION
(95-0133)
Original: English
GENERAL COUNCIL
31 January 1995
REQUEST BY VIET NAM FOR OBSERVER STATUS IN WTO BODIES
The following communication, dated 20 January 1995, has been received from the permanent
Mission of Viet Nam to the United Nations Office and other International Organizations in Geneva.
In the light of the application for accession to the World Trade Organization, the Government
of the Socialist Republic of Viet Nam would like to be accorded observer status at the meetings of
the WTO General Council and its subsidiary bodies. |
GATT Library | yc824dd4996 | Requests by the Republic of Belarus for accession to the WTO and for observer status in WTO bodies | World Trade Organization, January 27, 1995 | World Trade Organization and World Trade Organization General Council | 27/01/1995 | official documents | WT/L/21 and 0143-0171 | https://exhibits.stanford.edu/gatt/catalog/yc824dd4996 | yc824dd4996_90080621.xml | GATT_1 | 265 | 1,692 | WORLD TRADE
RESTRICTED
WT/L/21
27 January 1995
ORGANIZATION
(95-0159)
GENERAL COUNCIL
31 January 1995
REQUESTS BY THE REPUBLIC OF BELARUS FOR ACCESSION TO THE WTO
AND FOR OBSERVER STATUS IN WTO BODIES
The following two communications, dated 18 January 1995 and 25 January 1995 respectively,
have been received from the Government of the Republic of Belarus and the permanent Mission of
the Republic of Belarus to the United Nations Office and other International Organizations at Geneva,
with the request that they be circulated to all WTO Members.
The Government of the Republic of Belarus presents its compliments to the Director-General
of the World Trade Organization and has the honour to inform him of the following.
The Government of the Republic of Belarus hereby expresses its intention to accede to the
World Trade Organization as its full-fledged member in accordance with Article XII of the Agreement
Establishing the World Trade Organization.
Accordingly, the Government of the Republic of Belarus would like the existing Working Party
on the Accession of the Republic of Belarus to the GATT 1947 to be empowered to examine the relevant
areas which need to be considered in connection with Belarus' accession to the World Trade Organization.
The permanent Mission of the Republic of Belarus to the United Nations Office and other
International Organizations at Geneva presents its compliments to the Director-General of the World
Trade Organization and has the honour to inform him of the following.
The Government of the Republic of Belarus would like to be accorded observer status at the
meetings of the WTO General Council and its subsidiary bodies. |
GATT Library | cw017ky7511 | Rules of procedure for sessions of the Ministerial conference and Meetings of the General Council : Adopted by the General Council on 31 January 1995 | World Trade Organization, February 7, 1995 | World Trade Organization | 07/02/1995 | official documents | WT/L/28 and 0209-0240 | https://exhibits.stanford.edu/gatt/catalog/cw017ky7511 | cw017ky7511_90080677.xml | GATT_1 | 4,274 | 26,359 | WORLD TRADE
WT/L/28
7 February 1995
ORGANIZATION
(95-0230)
RULES OF PROCEDURE FOR SESSIONS OF THE MINISTERIAL CONFERENCE
AND MEETINGS OF THE GENERAL COUNCIL
Adopted by the General Council on 31 January 1995
RULES OF PROCEDURE FOR SESSIONS OF THE MINISTERIAL CONFERENCE
Note: For the purposes ofthese Rules, the term "WTO Agreement" includes the Multilateral
Trade Agreements.
Chapter I - Sessions
Rule 1
Regular sessions of the Ministerial Conference shall be held at least once every two years.
The date of each regular session shall be fixed by the Ministerial Conference at a previous session.
Rule 2
A special session may, however, be held at another date on the initiative of the Chairperson,
at the request of a Member concurred in by the majority of the Members, or by a decision of the General
Council. Notice of the convening of any such session shall be given to Members at least twenty-one
days before the opening of the session. In the event that the twenty-first day falls on a weekend or
a holiday, the notice shall be issued no later than the preceding WTO working day.
Chapter II - Agenda
Rule 3
The provisional agenda for each regular session shall be drawn up by the Secretariat in
consultation with the Chairperson and shall be communicated to Members at least five weeks before
the opening of the session. It shall be open to any Member to propose items for inclusion in this
provisional agenda up to six weeks before the opening of the session. Additional items on the agenda
shall be proposed under "Other Business" at the opening of the session. Inclusion of these items on
the agenda shall depend upon the agreement of the Ministerial Conference.
The General Council adopted the rules as set out in this document with the exception of the provisions in square brackets
(Rule 11 of the Rules of the Ministerial Conference and Rules 11 and 12 of the Rules for the General Council). The General
Council authorized its Chairman to hold informal consultations on these issues with a view to adopting them at a future meeting. WT/L/28
Page 2
Rule 4
The provisional agenda for a special session shall be drawn up by the Secretariat in consultation
with the Chairperson and shall be communicated to Members at least twenty-one days before the opening
of the session. It shall be open to any Member to propose items for inclusion in this provisional agenda
up to twenty-one days before the opening of the session. Additional items on the agenda shall be proposed
under "Other Business" at the opening of the session. Inclusion of these items on the agenda shall
depend upon the agreement of the Ministerial Conference.
Rule 5
The first item of business at each session shall be the consideration and approval of the agenda.
Rule 6
The Ministerial Conference may amend the agenda or give priority to certain
in the course of the Session.
items at any time
Chapter III - Credentials
Rule 7
Each Member shall be represented by an accredited representative.
Rule 8
Each representative may be accompanied by such alternates and advisers as the representative
may require.
Rule 9
The credentials of representatives shall be submitted to the Secretariat at least one week before
the opening of the session. They shall take the form of a communication from or on behalf of the
Minister for Foreign Affairs or the competent authority of the Member authorizing the representative
to perform on behalf of the Member the functions indicated in the WTO Agreement.¹ The Chairperson
after consulting with the Secretariat shall draw attention to any case where a representative has omitted
to present credentials in due time and form.
Chapter IV -- Observers
Rule 10
Representatives of States or separate customs territories may attend the meetings as observers
on the invitation of the Ministerial Conference in accordance with paragraphs 9 to 11 of the guidelines
in Annex 2 to these Rules.
¹It is understood that in the case of a separate customs territory Member the credentials of its representatives shall have
no implication as to sovereignty. WT/L/28
Page 3
Rule 11
Representatives of international intergovernmental organizations may attend the meetings as
observers on the invitation of the Ministerial Conference in accordance with the guidelines in Annex [ ]
to these Rules.
Chapter V - Officers
Rule 12
During the course of each regular session a Chairperson and three Vice-Chairpersons shall
be elected from among the Members. They shall hold office from the end of that session until the
end of the next regular session.
Rule 13
If the Chairperson is absent from any meeting or part thereof, one of the three Vice-Chairpersons
shall perform the functions of the Chairperson. If no Vice-Chairperson is present the Ministerial
Conference shall elect an interim Chairperson for that meeting or that part of the meeting.
Rule 14
If the Chairperson can no longer perform the functions of the office, the Ministerial Conference
shall designate one of the Vice-Chairpersons to perform those functions pending election of a new
Chairperson in accordance with rule 12.
Rule 15
The Chairperson shall normally participate in the proceedings as such and not as the
representative of a Member. The Chairperson may, however, at any time request permission to act
in either capacity.
Chapter VI - Conduct of business
Rule 16
A simple majority of the Members shall constitute a quorum.
Rule 17
In addition to exercising the powers conferred elsewhere by these rules, the Chairperson shall
declare the opening and closing of each meeting, shall direct the discussion, accord the right to speak,
submit questions for decision, announce decisions, rule on points of order and, subject to these rules,
have complete control of the proceedings. The Chairperson may also call a speaker to order if the
remarks of the speaker are not relevant. WT/L/28
Page 4
Rule 18
During the discussion of any matter, a representative may raise a point of order. In this case
the Chairperson shall immediately state the ruling. If the ruling is challenged, the Chairperson shall
immediately submit it for decision and it shall stand unless overruled.
Rule 19
During the discussion of any matter a representative may move the adjournment of the debate.
Any such motion shall have priority. In addition to the proponent of the motion, one representative
may be allowed to speak in favour of, and two representatives against, the motion, after which the
motion shall be submitted for decision immediately.
Rule 20
A representative may at any time move the closure of the debate. In addition to the proponent
of the motion, not more than one representative may be granted permission to speak in favour of the
motion and not more than two representatives may be granted permission to speak against the motion,
after which the motion shall be submitted for decision immediately.
Rule 21
During the course of the debate, the Chairperson may announce the list of speakers and, with
the consent of the meeting, declare the list closed. The Chairperson may, however, accord the right
of reply to any representative if a speech delivered after the list has been declared closed makes this
desirable.
Rule 22
The Chairperson, with the consent of the meeting, may limit the time allowed to each speaker.
Rule 23
Proposals and amendments to proposals shall normally be introduced
to all representatives not later than twelve hours before the commencement
they are to be discussed.
in writing and circulated
of the meeting at which
Rule 24
If two or more proposals are moved relating to the same question, the meeting shall first decide
on the most far-reaching proposal and then on the next most far-reaching proposal and so on.
Rule 25
When an amendment is moved to a proposal, the amendment shall be submitted for decision
first and, if it is adopted, the amended proposal shall then be submitted for decision.
Rule 26
When two or more amendments are moved to a proposal, the meeting shall decide first on
the amendment farthest removed in substance from the original proposal, then, if necessary, on the
amendment next farthest removed, and so on until all the amendments have been submitted for decision. WT/L/28
Page 5
Rule 27
Parts of a proposal may be decided on separately if a representative requests that the proposal
be divided.
Chapter VII - Decision-Making
Rule 28
The Ministerial Conference shall take decisions in accordance with the decision-making provisions
of the WTO Agreement, in particular Article IX thereof entitled "Decision-Making".
Rule 29
When, in accordance with the WTO Agreement, decisions are required to be taken by vote,
such votes shall be taken by ballot. Ballot papers shall be distributed to representatives of Members
present at the session and a ballot box placed in the conference room. However, the representative
of any Member may request, or the Chairperson may suggest, that a vote be taken by the raising of
cards or by roll call. In addition, where in accordance with the WTO Agreement a vote by a qualified
majority of all Members is required to be taken, the Ministerial Conference may decide, upon request
from a Member or the suggestion of the Chairperson, that the vote be taken by airmail ballots or ballots
transmitted by telegraph or telefacsimile in accordance with the procedures described in Annex 1 to
these Rules.
Chapter VIII - Languages
Rule 30
English, French and Spanish shall be the working languages.
Chapter IX - Records
Rule 31
Summary records of the meetings of the Ministerial Conference shall be kept by the Secretariat.²
Chapter X - Publicity of meetings
Rule 32
The meetings of the Ministerial Conference shall ordinarily be held in private. It may be decided
that a particular meeting or meetings should be held in public.
²The customary practice under the GATT 1947, whereby representatives may, upon their request, verify those portions
of the draft records containing their statements, prior to the issuance of such records, shall be continued. WT/L/28
Page 6
Rule 33
After a private meeting has been held, the Chairperson may issue a communiqué to the Press.
Chapter XI - Revision
Rule 34
The Ministerial Conference may decide at any time to revise these rules or any part of them. WT/L/28
Page 7
RULES OF PROCEDURE FOR MEETINGS OF THE GENERAL COUNCIL
Note: For the purposes of these Rules, the term "WTO Agreement" includes the Multilateral
Trade Agreements.
Chapter I - Meetings
Rule 1
The General Council shall meet as appropriate.
Rule 2
Meetings of the General Council shall be convened by the Director-General by a notice issued
not less than ten calendar days prior to the date set for the meeting. In the event that the tenth day
falls on a weekend or a holiday, the notice shall be issued no later than the preceding WTO working
day. Meetings may be convened with shorter notice for matters of significant importance or urgency
at the request of a Member concurred in by the majority of the Members.
Chapter II - Agenda
Rule 3
A list of the items proposed for the agenda of the meeting shall be communicated to Members
together with the convening notice for the meeting. It shall be open to any Member to suggest items
for inclusion in the proposed agenda up to, and not including, the day on which the notice of the meeting
is to be issued.
Rule 4
Requests for items to be placed on the agenda of a forthcoming meeting shall be communicated
to the Secretariat in writing, together with the accompanying documentation to be issued in connection
with that item. Documentation for consideration at a meeting shall be circulated not later than the
day on which the notice of the meeting is to be issued.
Rule 5
A proposed agenda shall be circulated by the Secretariat one or two days before the meeting.
Rule 6
The first item of business at each meeting shall be the consideration and approval of the agenda.
Representatives may suggest amendments to the proposed agenda, or additions to the agenda under
"Other Business". Representatives shall provide the Chairperson or the Secretariat, and the other
Members directly concerned, whenever possible, advance notice of items intended to be raised under
"Other Business". WT/L/28
Page 8
Rule 7
The General Council may amend the agenda or give priority to certain items at any time in
the course of the meeting.
Chapter III - Representation
Rule 8
Each Member shall be represented by an accredited representative.
Rule 9
Each
may require.
representative may be accompanied by such alternates and advisers as the representative
Chapter IV -- Observers
Rule 10
Representatives of States or separate customs territories may attend the meetings as observers
on the invitation of the General Council in accordance with paragraphs 9 to 11 of the guidelines in
Annex 2 to these Rules.
Rule 11
Representatives of international intergovernmental organizations may attend the meetings as
observers on the invitation of the General Council in accordance with the guidelines in Annex [ ] to
these Rules.
Chapter V - Officers
Rule 12
[The General Council shall elect a Chairperson and a Vice-Chairperson from among the
representatives of Members. The election shall take place at the first meeting of the year and shall
take immediate effect. The Chairperson and Vice-Chairperson shall hold office until the end of the
first meeting of the following year.]
Rule 13
If the Chairperson is absent from any meeting or part thereof, the Vice-Chairperson shall perform
the functions of the Chairperson. If the Vice-Chairperson is riot present the General Council shall
elect an interim Chairperson for that meeting or that part of the meeting. WT/L/28
Page 9
Rule 14
If the Chairperson can no longer perform the functions of the office, the General Council shall
designate the Vice-Chairperson referred to in Rule 12 to perform those functions pending the election
of a new Chairperson.
Rule 15
The Chairperson shall normally participate in the proceedings as such and not as the
representative of a Member. The Chairperson may, however, at any time request permission to act
in either capacity.
Chapter VI - Conduct of business
Rule 16
A simple majority of the Members shall constitute a quorum.
Rule 17
In addition to exercising the powers conferred elsewhere by these rules, the Chairperson shall
declare the opening and closing of each meeting, shall direct the discussion, accord the right to speak,
submit questions for decision, announce decisions, rule on points of order and, subject to these rules,
have complete control of the proceedings. The Chairperson may also call a speaker to order if the
remarks of the speaker are not relevant.
Rule 18
During the discussion of any matter, a representative may raise a point of order. In this case
the Chairperson shall immediately state the ruling. If the ruling is challenged, the Chairperson shall
immediately submit it for decision and it shall stand unless overruled.
Rule 19
During the discussion of any matter, a representative may move the adjournment of the debate.
Any such motion shall have priority. In addition to the proponent of the motion, one representative
may be allowed to speak in favour of, and two representatives against, the motion, after which the
motion shall be submitted for decision immediately.
Rule 20
A representative may at any time move the closure of the debate. In addition to the proponent
of the motion, not more than one representative may be granted permission to speak in favour of the
motion and not more than two representatives may be granted permission to speak against the motion,
after which the motion shall be submitted for decision immediately. WT/L/28
Page 10
Rule 21
During the course of the debate, the Chairperson may announce the list of speakers and, with
the consent of the meeting, declare the list closed. The Chairperson may, however, accord the right
of reply to any representative if a speech delivered after the list has been declared closed makes this
desirable.
Rule 22
The Chairperson, with the consent of the meeting, may limit the time allowed to each speaker.
Rule 23
Representatives shall endeavour, to the extent that a situation permits, to keep their oral
statements brief. Representatives wishing to develop their position on a particular matter in fuller detail
may circulate a written statement for distribution to Members, the summary of which, at the
representative's request, may be reflected in the records of the General Council.
Rule 24
In order to expedite the conduct of business, the Chairperson may invite representatives that
wish to express their support for a given proposal to show their hands, in order to be duly recorded
in the records of the General Council as supporting statements; thus, only representatives with dissenting
views or wishing to make explicit points or proposals would actually be invited to make a statement.
This procedure shall only be applied in order to avoid undue repetition of points already made, and
will not preclude any representative who so wishes from taking the floor.
Rule 25
Representatives should avoid unduly long debates under "Other Business". Discussions on
substantive issues under "Other Business" shall be avoided, and the General Council shall limit itself
to taking note of the announcement by the sponsoring delegation, as well as any reactions to such an
announcement by other delegations directly concerned.
Rule 26
While the General Council is not expected to take action in respect of an item introduced as
"Other Business", nothing shall prevent the General Council, if it so decides, to take action in respect
of any such item at a particular meeting, or in respect of any item for which documentation was not
circulated at least ten calendar days in advance.
Rule 27
Representatives should make every effort to avoid the repetition of a full debate at each meeting
on any issue that has already been fully debated in the past and on which there appears to have been
no change in Members' positions already on record.
Rule 28
Proposals and amendments to proposals shall normally be introduced in writing and circulated
to all representatives not later than twelve hours before the commencement of the meeting at which
they are to be discussed. WT/L/28
Page 11
Rule 29
If two or more proposals are moved relating to the same question, the meeting shall first decide
on the most far-reaching proposal and then on the next most far-reaching proposal and so on.
Rule 30
When an amendment is moved to a proposal, the amendment shall be submitted for decision
first and, if it is adopted, the amended proposal shall then be submitted for decision.
Rule 31
When two or more amendments are moved to a proposal, the meeting shall decide first on
the amendment farthest removed in substance from the original proposal, then, if necessary, on the
amendment next farthest removed, and so on until all the amendments have been submitted for decision.
Rule 32
Parts of a proposal may be decided on separately if a representative requests that the proposal
be divided.
Chapter VII - Decision-Making
Rule 33
The General Council shall take decisions in accordance with the decision-making provisions
of the WTO Agreement, in particular Article IX thereof entitled "Decision-Making".
Rule 34
When, in accordance with the WTO Agreement, decisions are required to be taken by vote,
such votes shall be taken by ballot. Ballot papers shall be distributed to representatives of Members
present at the meeting and a ballot box placed in the conference room. However, the representative
of any Member may request, or the Chairperson may suggest, that a vote be taken by the raising of
cards or by roll call. In addition, where in accordance with the WTO Agreement a vote by a qualified
majority of all Members is required to be taken, the General Council may decide, upon request from
a Member or the suggestion of the Chairperson, that the vote be taken by airmail ballots or ballots
transmitted by telegraph or telefacsimile in accordance with the procedures described in Annex 1 to
these Rules.
Chapter VIII - Languages
Rule 35
English, French and Spanish shall be the working languages. WT/L/28
Page 12
Chapter IX - Records
Rule 36
Records of the discussions of the General Council shall be in the form of minutes.³
Chapter X - Publicity of meetings
Rule 37
The meetings of the General Council shall ordinarily be held in private. It may be decided
that a particular meeting or meetings should be held in public.
Rule 38
After a private meeting has been held, the Chairperson may issue a communiqué to the Press.
Chapter XI - Revision
Rule 39
The General Council may decide at any time to revise these rules or any part of them.
³The customary practice under the GATT 1947, whereby representatives may, upon their request, verify those portions
of the draft records containing their statements, prior to the issuance of such records, shall be continued. WT/L/28
Page 13
ANNEX 1
RULES FOR AIRMAIL BALLOTS AND BALLOTS
TRANSMITTED BY TELEGRAPH OR TELEFACSIMILE
In any case where the Ministerial Conference or the General Council decides that a vote be
taken by airmail ballots or ballots transmitted by telegraph or telefacsimile, ballot papers shall be
distributed to representatives of Members present at the meeting and a notice shall be sent to each
Member. The notice shall contain such information as the Chairperson considers necessary and a clear
statement of the question to which each Member shall be requested to answer "yes" or "no".
The Chairperson of the Ministerial Conference or the General Council shall determine the date
and hour by which votes must be received. The time-limit shall be set at no later than 30 days after
the date the notice is sent. Any Member from which a vote has not been received within such time-limit
shall be regarded as not voting.
Members entitled to participate in a vote by airmail ballots or ballots transmitted by telegraph
or telefacsimile are those which are Members at the time of the decision to submit the matter in question
to a vote. WT/L/28
Page 14
ANNEX 2
GUIDELINES FOR OBSERVER STATUS FOR GOVERNMENTS IN THE WTO
1. Governments seeking observer status in the Ministerial Conference shall address a communication
to that body indicating their reasons for seeking such status. Such requests shall be examined on a
case-by-case basis by the Ministerial Conference.
2. Governments accorded observer status at sessions of the Ministerial Conference shall not
automatically have that status at meetings of the General Council or its subsidiary bodies. However,
governments accorded such status in the General Council and its subsidiary bodies in accordance with
the procedures described below, shall be invited to attend sessions of the Ministerial Conference as
observers.
3. The purpose of observer status in the General Council and its subsidiary bodies is to allow
a government to better acquaint itself with the WTO and its activities, and to prepare and initiate
negotiations for accession to the WTO Agreement.
4. Governments wishing to request observer status in the General Council shall address to that
body a communication expressing the intent to initiate negotiations for accession to the WTO Agreement
within a maximum period of five years, and provide a description of their current economic and trade
policies as well as any intended future reforms of these policies.
5. The General Council shall examine requests for observer status by governments on a case-by-case
basis.
6. Observer status in the General Council shall be granted initially for a period of five years.
In addition to being invited to sessions of the Ministerial Conference, governments with observer status
in the General Council may participate as observers at meetings of working parties and other subsidiary
bodies of the General Council as appropriate, with the exception of the Committee on Budget, Finance
and Administration.
7. During its period of observership, an observer government shall provide the Members of the
WTO with any additional information it considers relevant concerning developments in its economic
and trade policies. At the request of any Member or the observer government itself, any matter contained
in such information may be brought to the attention of the General Council after governments have
been allowed sufficient time to examine the information.
8. (a) If, at the end of five years, an observer government has not yet initiated a process of
negotiation with a view to acceding to the WTO Agreement, it may request an extension
of its status as observer. Such a request shall be made in writing and shall be
accompanied by a comprehensive, up-dated description of the requesting government's
current economic and trade policies, as well as an indication of its future plans in
relation to initiating accession negotiations.
(b) Upon receiving such a request, the General Council shall review the situation, and
decide upon the extension of the status of observer and the duration of such extension. WT/L/28
Page 15
9. Observer governments shall have access to the main WTO document series. They may also
request technical assistance from the Secretariat in relation to the operation of the WTO system in
general, as well as to negotiations on accession to the WTO Agreement.
10. Representatives of governments accorded observer status may be invited to speak at meetings
of the bodies to which they are observers normally after Members of that body have spoken. The
right to speak does not include the right to make proposals, unless a government is specifically invited
to do so, nor to participate in decision-making.
11. Observer governments shall be required to make financial contributions for services provided
to them in connection with their observer status in the WTO, subject to financial regulations established
pursuant to Article VII:2 of the WTO Agreement. |
GATT Library | gs995dn5565 | Semi-Annual Reports under Article 14:4 of the Agreement | General Agreement on Tariffs and Trade, January 27, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Anti-Dumping Practices | 27/01/1995 | official documents | ADP/134 and 0143-0171 | https://exhibits.stanford.edu/gatt/catalog/gs995dn5565 | gs995dn5565_90080615.xml | GATT_1 | 363 | 2,397 | RESTRICTED
GENERAL AGREEMENT ADP/134
27 January 1995
ON TARIFFS AND TRADE Special Distribution
(95-0152)
Committee on Anti-Dumping Practices
SEMI-ANNUAL REPORTS UNDER ARTICLE 14:4
OF THE AGREEMENT
1. Under Article 14:4 of the Agreement the Parties shall submit, on a semi-annual basis, reports
of any anti-dumping actions taken within the preceding six months.
2. The Parties are therefore invited to submit their semi-annual reports covering the period 1 July-
31 December 1994 on the agreed standard form (ADP/31 of 5 December 1986) not later than
24 February 1995. Parties which have not taken any action within the reporting period are also invited
to inform the Committee accordingly.
3. Parties are also requested to take into account the decision taken by the Committee at its meeting
held in April 1994 (ADP/122).
4. Pursuant to the decision of the Committee on 27 April 1994 regarding participation of observers
in the work of the Committee observers are encouraged to submit semi-annual reports covering the
same period.
5. Responses to the above request will be issued in addena to this document.
6. The Preparatory Committee for the World Trade Organization approved (PC/R, paragraph 45)
the agreement reached by the Informal Contact Group on Anti-Dumping, Subsidies and Safeguards
that the first semi-annual report submitted by each WTO Member will cover the period July-December
or January-June, whichever is more recent, prior to the date of entry into force of the WTO Agreement
for that Member (PC/IPL/11, dated 2 December 1994). Parties will further recall that the Preparatory
Committee has proposed that the Committee decide that, if a measure is subject to a notification
obligation both under the WTO Agreement and the Agreement, the notification of such a measure to
the WTO shall, unless otherwise indicated in the notification, be deemed to be also a notification of
that measure under the Agreement (PC/11, dated 13 December 1994). It is anticipated that the
Committee will follow the proposal of the Preparatory Committee. In that case, a semi-annual report
to the WTO for the period 1 July-31 December 1994 by a Member of the WTO (as requested in
G/ADP/N/2) would be deemed to be a semi-annual report responding to this request as well. |
GATT Library | tw729xr1777 | Semi-Annual Reports under Article 16.4 of the Agreement | World Trade Organization, January 30, 1995 | World Trade Organization and Committee on Anti-Dumping Practices | 30/01/1995 | official documents | G/ADP/N/2 and 0172-0197 | https://exhibits.stanford.edu/gatt/catalog/tw729xr1777 | tw729xr1777_90080646.xml | GATT_1 | 243 | 1,621 | WORLD TRADE ORGANIZATION
RESTRICTED (95-0191)
Committee on Anti-Dumping Practices
SEMI-ANNUAL REPORTS UNDER ARTICLE 16.4
OF THE AGREEMENT
1. Under Article 16.4 of the Agreement on Implementation of Article VI ofthe General Agreement
on Tariffs and Trade 1994. Members shall submit, on a semi-annual basis, reports of any anti-dumping
actions taken within the preceding six months.
2. The Preparatory Committee for the World Trade Organization approved (PC/R, paragraph 45)
the agreement reached by the Informal Contact Group on Anti-Dumping, Subsidies and Safeguards
that the first semi-annual report submitted by each WTO Member will cover the period July-December
or January-June, whichever is more recent, prior to the date of entry into force of the WTO Agreement
for that Member (PC/IPL/11. Annex 7).
3. Members are therefore invited to submit their semi-annual reports covering the period 1 July-
31 December 1994 not later than 24 February 1995. Members which have not taken any action within
the reporting period are also invited to inform the Committee accordingly.
4. Members will recall that for the purposes of semi-annual reports pursuant to Article 14.4 of
the Tokyo Round Agreement on Implementation of Article VI of the General Agreement on Tariffs
and Trade. Guidelines for Information Provided in the Semi-Annual Reports were adopted by the Tokyo
Round Committee on Anti-Dumping Practices on 27 April 1994 (ADP/122).
5. Reports received in reply to the above request will be issued in addenda to this document.
WORLD TRADE
RESTRICTED
G/ADP/N/2
30 January 1995 |
GATT Library | jh170jp4772 | Semi-Annual Reports under Article 2:16 of the Agreement | General Agreement on Tariffs and Trade, January 27, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Subsidies and Countervailing Measures | 27/01/1995 | official documents | SCM/190 and 0143-0171 | https://exhibits.stanford.edu/gatt/catalog/jh170jp4772 | jh170jp4772_90080616.xml | GATT_1 | 367 | 2,487 | RESTRICTED
GENERAL AGREEMENT SCM/190
27 January 1995
ON TARIFFS AND TRADE Special Distribution
(95-0153)
Committee on Subsidies and Countervailing Meaures
SEMI-ANNUAL REPORTS UNDER ARTICLE 2:16
OF THE AGREEMENT
1. Under Article 2:16 of the Agreement the signatories shall submit, on a semi-annual basis, reports
of any countervailing duty actions taken within the preceding six months.
2. The signatories are therefore invited to submit their semi-annual reports covering the period
1 July-31 December 1994 on the agreed standard form (SCM/79) not later than 24 February 1995.
Signatories which have not taken any action within the reporting period are also invited to inform the
Committee accordingly.
3. Signatories are also requested to take into account the decision taken by the Committee at its
meeting held in October 1986 concerning the notifications of review of countervailing measures
(SCM/M/32, paragraph 125).
4. Pursuant to the decision of the Committee of 27 October 1993 (SCM/M/67, paragraphs 3-16),
observers are encouraged to submit semi-annual reports covering the same period.
5. Reports received in reply to the above request will be issued in addenda to this document.
6. The Preparatory Committee for the World Trade Organization approved (PC/R, paragraph 45)
the agreement reached by the Informal Contact Group on Anti-Dumping, Subsidies and Safeguards
that the first semi-annual report submitted by each WTO Member will cover the period July-December
or January-June. whichever is more recent, prior to the date of entry into force of the WTO Agreement
for that Member (PC/IPL/11, dated 2 December 1994). Signatories will further recall that the
Preparatory Committee has proposed that the Committee decide that, if a measure is subject to a
notification obligation both under the WTO Agreement and the Agreement, the notification of such
a measure to the WTO shall, unless otherwise indicated in the notification, be deemed to be also a
notification of that measure under the Agreement (PC/11, dated 13 December 1994). It is anticipated
that the Committee will follow the proposal of the Preparatory Committee. In that case, a semi-annual
report to the WTO for the period 1 July-31 December 1994 by a Member of the WTO (as requested
in G/SCM/N/4) would be deemed to be a semi-annual report responding to this request as well. |
GATT Library | kr673bp3118 | Semi-Annual Reports under Article 25:11 of the Agreement | World Trade Organization, January 30, 1995 | World Trade Organization and Committee on Subsidies and Countervailing Measures | 30/01/1995 | official documents | G/SCM/N/4 and 0143-0171 | https://exhibits.stanford.edu/gatt/catalog/kr673bp3118 | kr673bp3118_90080631.xml | GATT_1 | 255 | 1,767 | RESTRICTED
WORLD TRADE G/SCM/N/4
30 January 1995
ORGANIZATION
(95-0168)
Committee on Subsidies and Countervailing Measures
SEMI-ANNUAL REPORTS UNDER ARTICLE 25:11
OF THE AGREEMENT
1. Under Article 25:11 of the Agreement on Subsidies and Countervailing Measures, Members
shall submit, on a semi-annual basis, reports of any countervailing duty actions taken within the preceding
six months.
2. The Preparatory Committee for the World Trade Organization approved (PC/R, paragraph 45)
the agreement reached by the Informal Contact Group on Anti-Dumping, Subsidies and Safeguards
that the first semi-annual report submitted by each WTO Member will cover the period July-December
or January-June, whichever is more recent, prior to the date of entry into force of the WTO Agreement
for that Member (PC/IPL/11, Annex 7).
3. Members are therefore invited to submit their semi-annual reports covering the period 1 July-
31 December 1994 not later than 24 February 1995. Members which have not taken any action within
the reporting period are also invited to inform the Committee accordingly.
4. Members will recall that for the purposes of semi-annual reports pursuant to Article 2:16 of
the Tokyo Round Agreement on Interpretation and Implementation of Articles VI, XVI and XXIII
of the GATT 1947, an agreed standard form was developed (SCM/79). Members will also recall the
decision taken by the Tokyo Round Committee on Subsidies and Countervailing Measures at its meeting
held in October 1986 concerning the notifications of review of countervailing measures (SCM/M/32,
paragraph 125).
5. Reports received in reply to the above request will be issued in addenda to this document. |
GATT Library | fh253qt2228 | Statement of Outstanding Contributions as at 31 December 1994 | General Agreement on Tariffs and Trade, February 15, 1995 | General Agreement on Tariffs and Trade (Organization) | 15/02/1995 | official documents | Spec(94)53/Rev.1 and SPEC(94) 46-54 | https://exhibits.stanford.edu/gatt/catalog/fh253qt2228 | fh253qt2228_92280146.xml | GATT_1 | 1,679 | 23,900 | GENERAL AGREEMENT ON TARIFFS AND TRADE
ACCORD GENERAL SU R LES TARIFS DOUANIERS ET LE COMMERCE
ACUERDO GENERAL SOBRE ARANECELES ADUANEROS Y COM ERCIO
STATEMENT OF OUTSTANDING CONTRIBUTIONS AS AT 31 DECEMBER 1994/ETAT DES ARRIERES DE CONTRIBUITIONS
AU 31 DECEM BRE 1994/ ESTADO DE CONTRIBUCIONES PENDIENTES, AL 31 DE DICIEMBRE DE 1994 1994 1995
Swiss Francs/Francs suisses/Francos suizos Swiss Francos/Francs suisses/Francos suizosl Sw F/FS
Contracting Parties 1969/1987 1988 1989 1990 1991 1992 1993 1994 TOTAL Assessment Payment* Outstanding Advance
Parties contractantes Contribution Pa ement* Arriérés Aance
Partes Contratantes Contribucion Pago* Pendiente Adetantado
Angola................................................
Antigua and Barbuda/Antigua-et-Barbuda/Anidigua y Barbuda.
Argentine/Argenitine..................................
Australia/Autralie ........................................
Austria/Autriche ........................................
Bahrain/Bahrein/Bahrein .................................
Bangladesh............................................
Barbados/Barbade......................................
Belgium/Belgique/Bélgica................................
Benin/Bénin ...........................................
Bolivia/Bolivie ........................................ ..
Botswana .............................................
Brazil/Brésil/Brasil ...........
Brunei Darussalam/Brunéi Darussalam......................
Burkina Faso...........................................
Burundi ...............................................
Cameroon/Cameroun/Camenùn ...........................
Canada/Canadà .................. .................
Central African Republic/République centratricaine/
República Centroafricana...............................
Chad/Tchad ...........................................
Chile/Chili .............................................
Colombia/Colombie......................................
Costa Rica................................. .........
Côte d'lvoire ...........................................
Cyprus/Chypre/Chipre....................................
Czech Republic/République t hèque/República Checa ........
Denmark/Danemark/Dinamarca............................
Djibouti ...............................................
Dominica/Dominique ....................................
Dominican Republic/Répubiique dominicaine/
República Dominicana.................................
Egypt/Egypte/Egipto.....................................
El Salvador ............................................
Finland/Finlande/Finlandia................................
France/Francia..........................................
Gabon/Gabón .........................................
Gambia/Gambie ........................................
Germany/Allemagne/Alemania.............................
Greece/Grèce/Grecia ....................................
72,120
314,514
594,395
63,790
477,900
760,4P81
504,227
150,000
673,388
14,9,772
590,173
182,296
72,228 19,137
72,228
72,228
59,378
72,228
19,137
19,137
19,137
25,516
22,080 23,202
- 14,667
22,080 23,202
- 32,446
22,080
22,080
29,440
- 38,274 44,160
72,228 19,137 .22,080
72,228 25,516 .29,440
23,202
23,202
23,202
25,380
25,326
20,823
25,380
33,840
25,380
25,380
25,380
46,404 42,300
23,202 25,380
30,936 25,380
26,280
26,242
26,280
26,280
43,800
26,280
26,280
2,127
26,280
9,224
26,280
43,800
6,958
35,040
26,280
26,280
.74,320
27,870
249,049,
27,870
797,672
27,804.
27,8 70
46,450
27,870
27,670
250,604
.15,535
37,160.
55,740
127,930
27,870
27,870
37,160
.2,001
27,870
36,867
27,870,
27,870
'716
74,320
288,297
249,049
94,105
797,672
389,421
810,572
220,326
694,077
963,808
252,931
15,535
743,433
64,964
277,930
27,870
54,150
925,486
2,001
34,828
221 ,679
806,350
419,946
4,716
74;320
27,870
306,570
1,198,410
1,337,760
102,190
74,320
27,870
3,177,180
27,870
.27,870
27,870
55,740
79-8,940
46,450
27,870
27,870
46,450
3,650,970
27,870
27,870
250,830
176,510
37,160
55,740
74,320
157,930
55,740
241,540
1,021,900
27,870
27,670
37,160
157,930
27,870
27,870
687,460
6,670,220
37,160
27,870
11,482,440
27,870
436,630
(57,521)
(1,337,760)
(102,190)
(74,320)
(27,870)
(3,177,1.80)
(27,870)
(27,87,0)
(55,740)
(1,268)
(46,450)
(66)
(3,650,970)
(26)
(160,975)
(74,320)
(30,000)
(55,740)
(241,540)
(1,021,900)
(157,930)
(25,689)
(687,460)
(6,670,220)
(293)
(11,482,440)
(431,914)
74,320
27,870
249,049
27,870
797,672
27,804
27,870
46,450
27,870
27,870
250,804
15,535
37,160
55,740
127,930
27,870
27,870
37,160
2,001
27,870
36,867
27,870
27,870
4,716
310,3 17
95-0328
*- including interest/avec intérêts/con intereses Pg
RESTRICTED
Spec.(94)53(Rev.1
15-Feb-95
Page 1 GENERAL AGREEMENT ON TARIFFS AND TRADE
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
ACUERDOGENERAL SOBRE ARANCELES ADUANEROSY COMERCIO
STATEMENT OF OUTSTANDING CONTRIBUTIONS AS AT 31 DECEMBER 1994/ETAT DES ARRIERES DE CONTRIBUTIONS
AU 31 DECEMBRE 1994/ ESTADO DE CONTRIBUCIONES PENDIENTES AL 31 DE DICIEMBRE DE 1994 1994 1995
Swiss Francs/Francs suisses/Francos suizos Swiss Francs/Francs suisses/Francos suizos Sw F/FS
Contracting Parties 1969/1987 1988 1989 1990 1991 1992-. 1993 1994 TOTAL Assessment Payment* Outstanding Advance
Parties contractantes . Contribution Paiement* Arriérés Avance
Partes Contratantes Contribucion Pago* Pendiente Adelantado
Grenada/Grenade/Granada............................................................
Guatemala......................................................................................
Guinea/Guinée.................................................................................
Guinea-Bissau/Guinée-Bissau.....................................................
Guyana ............................................................................................
Haiti/Haïti/Haiti...................................................... .........................
Honduras ........................................................................................
Hong Kong.......................................................................................
Hungary/Hongrie/Hungria...............................................................
Iceland/Islande/lslandia..................................................................
India/Inde ................:.
Indonesia/Indonésie.......................................... ..........................
Ireland/Irlande/Irlanda...................................................................
Israel/Israël ...... :
Italy/Italie/Italia................................................................................
Jamaica/Jamaïqua ..........................................................................
Japan/Japon/Japón .........................................................
Kenya............................................................................................
Korea, Republic of/Corée, République de/Corea, República de...
Kuwait/Koweït................................................................................
Lesotho ...........................................................................................
Liechtenstein...............................................................................
Luxembourg/Luxemburgo...............................................................
Macau/Macao ...............
Madagascar....................................................................................
Malawi ............................................ ..................................................
Malaysia/Malaisie/Malasia...........................................................
Maldives/Maldivas..................................................................
Mali/Maí ..................................................................................
Malta/Malte.....................................................................................
Mauritania/Mauritanie ................ .
Mauritius/Maurice/Mauricio ........................................................
Mexico/Mexique/México . ....................... .......................................
Morocco/Maroc/Marruecos..........................................................
Mozambique ....................................................................................
Myanmar, Union of /Myanmar, Union du/Myanmar, Unión de.
Namibia/Namibie.............................................................................
Netherlands, Kingdom of/Pays-Bas, Royaume des/
Países Bajos, Reino de los.........................................................
New Zealand/Nouvelle-Zélande/Nueva Zelandia.........................
Nicaragua.. ............................................................. ................
Niger/Níger......................................................................................
Nigeria/Nigéria ..............
y q/Nigéria.................................................................................
Norway/Norvège/Noruega........... ...................................................
8,694
200,200
72,772 61,0i
188,535
2,755
i36,619 72,2:
412,136
276,811
- 19,137
40 44,653
_8 19,137
28 19,137
53,353
72,228
22,080
51,520
22,080
42,300
23,202 25,380
46,404 50,760
6,706
23,202
- 22,080 23,087
19,137 22,080 23,202
25,380
25,380
25,380
25,380
- 27,870
43,800 46,450
- 27,870
- 27,870
26,280 27,870
- 20,234
43,800 46,450
-- 27,850
26,280 27,870
- 27,772
26,280 27,870
26,280 27,870
22,099 27,870
- 27,870
26,280 27,870
26,280 27,870
- 1 99,828
27,870
141,244
27,870
27,870
344,149
20,234
417,399
27,850
274,771
30,527
54,150
852,796
49,969
27,670
590,186
492,988
199,828
27,870
46,450
27,870
27,870
27,870
27,870
20,234
2,889,190
287,990
46,450
585,270
761,780
668,880
408,760
5,109,500
37,160
7,859,340
46,450
2,127,410
148,640
27,870
21,151
278,700
46,450
27,870
27,870
1 ,003,320
27,870
27,870
46,450
27,870
37,160
947,580
157,930
27,870
27,870
27,870
3,818,190
269,410
27,870
27,870
287,990
(27,870)
(2,889,190)
(287,990)
(46,450)
(585,270)
(761,780)
(668,880)
(408,760)
(5,109,500)
(37,160)
(7,859,3401
(2,127,410)
(148,640)
(20)
(21,151)
(278,700)
(46,450)
(98)
(1,003,320)
(27,870)
(46,450)
(37,160)
(947,580)
(157,930)
(27,870)
(3,818.190)
(269,410)
(88,162)
27,870
46,450
27,870
27,870
27,870
20,234
46,450
27,850
27,870
27,772
27,870
27,870
27,870
27,870
27,870
27,870
199,828
863,970 (863,970)
13,747
17,318
- including interest/avec intérêts/con intereses
RESTRICTED
Spec (94)53/Rev.1
15-Feb-95
1
Page 2 GENERAL AGREEMENT ON TARIFFS AND TRADE
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE
ACUERDO GENERAL SOBRE ARANCELES ADUANEROSY COMERCIO
RESTRICTED
Spec(94)53/Rev.1
15-Feb-95
STATEMENT OF OUTSTANDING CONTRIBUTIONS AS AT 31 DECEMBER 1994/ETAT DES ARRIERES DE CONTRIBUTIONS
AU 31 DECEMBRE 1994/ ESTADO DE CONTRIBUCIONES PENDIENTES AL 31 DE DICIEMBRE DE 1994 1994 1995
Swiss Francs/Francs suisses/Francos suizos Swiss Francs/Francs suisses/Francos suizos Sw F/FS
Contracting Parties 1969/1987 1988 1989 1990 1991 1992 1993 1994 TOTAL Assessment Payment* Outstanding Advance
Parties contractantes Contribution Paiement* Arriérés Avance
Partes Contratantes Contribution Pago* Pendiente Adelantado
Pakistan/Pakistán............................................................................
Papua NewGuinea/Papouasie-Nouvelle-Guinée/
Papua Nueva Guinea..................................................................
Paraguay..........................................................................................
Peru/Pérou/Perú . .......... ..............................................................
Philippines/Filipinas (a). .............................................................
Poland/Pologne/Polonia..................................................................
Portugal...........................................................................................
Qatar .......................................................................................
Romania/Roumanie/Rumania.........................................................
Rwanda............................................................................................
Saint Kitts and Nevis/Saint-Kitts-et- Nevis/Saint Kitts y Nevis...
Saint Lucia/Sainte-Lucie/Sainta Lucia...........................................
St. Vincent and the Grenadines/Saint-Vincent-et-
Grenadines/San Vicente y las Grenadines . ................ ............
Senegal/Sénégal .
Sierra Leone/Sierra Leona.........................................................
Singapore/Singapour/Singapur....................................................
Slovak Republic/République slovaque/República Eslovaca ..........
Slovenia/Slovénie/Eslovenia...........................................................
Solomon Islands/Iles Salomon/Islas Salomón...............................
South Africa/Afrique du Sud/Sudáfrica...........................................
Spain/Espagne/Espana.................................................................
Sri Lanka................................................................
Suriname..........................................................................................
Swaziland/Swazilandia....................................................................
Sweden/Suède/Suecia...................................................................
Switzerland/Suisse/Suiza....................................... .....................
Tanzania/Tanzanie/Tanzania...........................................................
Thailand/Thailande/Tailandia.........................................................
Togo .................. . . .
Trinidad and Tobago/Trinité-et-Tobago/Trinidad y Tobago.
Tunisia/Tunisie/Túnez.............................................................
Turkey/Turquie/Turquia
Uganda/Ouganda...........................................................................
United Arab Emirates/Emirats Arabes Unis/
Emiratos Árabes Unidos.............................................................
United Kingdom of Great Britain and Northern Ireland/Royaume-
Unide Grande-Bretagne et d'Irlande du Nord/Reino Unido
de Gran Bretana e Irlanda del Norte...........................................
United States of America/Etats-Unis d'Amérique/
Estados Unidos de América ..................... : :
Uruguay.................................................................
Venezuela.......................................................................................
Yugoslavia/Yougoslavie. ...............................................................
6,801
531 ,440
- 19,137
324,202
683,300
210,360
437,059
111,427
506,778
72,228
72,228
72,228
19,137
19,137
19,137
1,364,256
22,080
- - - 212,996
_ _ _ 7 37,160
- - - 1 11,480
_ - - 66,747
- - 197,260 167,102
23,202 25,380 26,280 27,870
22,080 22,982
22,080 23,202
22,080 23,202
- 23,123
22,080 23,202
- 400,282
25,380
25,380
25,380
25,045
42,153
25,380
5,258
437,529
26,280 27,870
26,280 27,870
26,280 27,870
- 23,670
- 27,870
26,280 27,870
- 2,018
26,280 27,870
43,685 46,450
- 1 38,432
26,280 27,870
- 445,920
43,800
155,847
46,450
369,1 18
212,996
37,160
118,281
6,747
895,802
143,949
54,150
448,794
899,477
23,670
27,870
426,537
439,077
213,745
132,288
138,432
722,955
445,920
1,364,256
95,508
524,965
837,811
213,670
37,160
27,412
111,480
325,150
390,180
631,720
74,320
167,220
27,870
27,870
27,870
27,870
27,870
27,870
1,198,410
120,770
23,670
27,870
538,820
2,192,440
74,320
27,870
27,870
1,542,140
1,855,429
27,870
929,000
27,870
46,450
139,350
510,950
27,870
445,920
5,806,250
13,554,110
46,450
371,600
(674)
(27,412)
(318,403)
(390,180)
(631,720)
(74,320)
(118)
(27,870)
(27,870)
(1,198,410)
(120,770)
(538,820)
(2,192,440)
(74,320)
(27,870)
(1,542,140)
(1,855,429)
(25,852)
(929,000)
(918)
(510,950)
(5,806,250)
(13,554,1 10)
(2,482)
212,996
37,160
111,480
6,747
167,102
27,870
27,870
27,870
27,870
23,670
27,870
27,870
2,018
27,870
46,450
138,432
27,870
445,920
46,450
369,118
-
-
-
-
-
-
-
-
531 ,764
-
-
-
-
-
* - including interest/avec intérêts/con intereses
(2,482)
-
-
Page 3 GENERAL AGREEMENT ON TARIFFS AND TRADE
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE CCMMERCE
ACUERDOGENERAL SOBRE ARANCELES ADUANEROSY COMERCIO
RESTRICTED
Spec (94)53/Rev.1
15-Feb-95
STATEMENT OF OUTSTANDING CONTRIBUTIONS AS AT 31 DECEMBER 1994/ ETAT DES ARRIERES DE CONTRIBUTIONS .
AU 31 DECEMBRE 1994/ ESTADO DE CONTRIBUCIONES PENDIENTES AL 31 DE DICIEMBRE DE 1994 1994 1995
Swiss Francs/Francs suisses/Francos suizos Swiss Francs/Francs suisses/Francos suizos Sw F/FS
Contracting Parties 1969/1987 1988 1989 1990 1991 1992 1993 1994 TOTAL Assessment Payment* Outstanding Advance
Parties contractantes Contribution Paiement* Arriérés Avance
Partes Contratantes . Contribucion Pago* Pendiente Adelantado
Zaire/Zaïre ............................................430900 72,228 51 ,03 2 29,440 30,936 25,380 26,2 80 27,870 694,066 27,870 - 27,870 -
Zambia/Zambie .................................................... 57,393 - - - 2,307 33,840 35,040 27,870 156,450 27,870 - 27,870 -
Zimbabwe - - - 17,898 17,898 46,450 (28,552) 17,898 -
TOTALS 10,986,800 1,040,507 414,635 493,120 990,600 1,216,014 1,356,962 4,621,203 21,119,841 93,946,766 (89,325,563) 4,621,203 873,146
(a) Payment ofUS$ 6,747 just received but not yet accounted for.
Paiement de SEU 6.747 reçu mais pas encorecomptabilisé.
Pago de SEE.UU. 6.747 reibido pero aun sin comtabilizar.
The original assessment on Switzerland was divided between Switzeriand (SwF 1,855,429)
and Liechtenstein (SwF 21,151) when the latter became a contracting party on 29 March 1994
(L/7483, paragraphs 30-31).
La contribution mise initialement à la charge de la Suisse a été divisée entre la Suisse
(1 855 429 FS) et le Liechtenstein (21 151 FS) lorsque ce dernier est devenu partie contractante
le 29 mars 1994 (L/7483, paragraphes 30 et 31).
La contribución senialada inicialmente a Suiza se dividió entre Su iza (FS 1 .855.429) y
Liechtenstein (FS 21.151) cuando este último país se convirtió en parte contratante el 29 de
marzo de 1994 (L/7483, párrafos 30 y 31).
- including interest/avec intéréts/con intereses
1994: Summary /Résumé /Resumen : . :
SwF/FS %
Contributions assessed on contracting parties
Contributions mises à lac harge des parties contractantes 92,900,000
Contribuciones senaladas a las partes contratantes
(1) Newcontracting parties
(1) Nouvelles partiescontractantes 1,046,766
(1) Nuevas partes contratantes
Less interest returned
Moins intérêts ristournés (704,754)
Menos intereses devengados
Less payments for 1994
Moins paiements pour l'année 1994 (88.620.809)
Menos months pagados para 1994 (89.325.5631 95.08%
1994 Contributions outstanding
Arriérés pour 1994
Contribuciones pendientes para 1994 4.92%
100.00%
Sw F / FS
(1) Fiji/Fidji 16.11.93 27,870
Brunei Darussalam/Bnunéi Darussalam 09.12.93 46,450
Bahrain/Bahrein/Bahrein 13.12.93 102, i 90
Paraguay 06.01.94 27,412
G renada/Grenade/Granada 09.02.94 27,870
United Arab Emirates/Emirats Arabes Unis 08.03.94 445,920
Guinea-Bissau/Guinee-Bissau 17.03.94 27,870
Saint Kitts and Nevis/Saint-Kitts-et-Nevis 24.03.94 27,870
Liechtenstein 29.03.94
Qatar 07.04.94 74,320
Angola 08.04.94 74,320
Honduras 10.04.94 20,234
Slovenia/Sliovénie/Eslovenia 30.10.94 23,670
Guinea/Guinée 08.12.94 27,870
Djibouti 16.12.94 27,870
PapuaNewGuinea 16.12.94 37,160
Solomon Islands/llesSalomon 28.12.94 27870
1 046 766
Page 4 |
GATT Library | sp539fn6626 | State-Trading : Notifications pursuant to Article XVII:4(a) | General Agreement on Tariffs and Trade, January 30, 1995 | General Agreement on Tariffs and Trade (Organization) | 30/01/1995 | official documents | L/7623 and 0143-0171 | https://exhibits.stanford.edu/gatt/catalog/sp539fn6626 | sp539fn6626_90080622.xml | GATT_1 | 207 | 1,375 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
L/7623
30 January 1995
Limited Distribution
(95-0160)
STATE-TRADING
Notifications Pursuant to Article XVII:4(a)
In accordance with the Decision of the CONTRACTING PARTIES at their twentieth session
(BISD 11S/58), contracting parties should submit every third year, new and full responses to the
questionnaire on State-trading (BISD 9S/184) and bring these notifications up to date in the intervening
years.
Contracting parties are therefore invited to submit notifications of the changes which have
occurred in their State-trading measures since their full notifications in 1993 (L/7161 plus addenda)
and their supplementary notifications in 1994 (L/7374 and addenda).
It is recalled that the CONTRACTING PARTIES to the GATT 1947 have decided that, if a
measure is subject to a notification obligation both under the WTO Agreement and the GATT 1947,
the notification of such a measure to the WTO shah, unless otherwise indicated in the notification,
be deemed to be also a notification of that measure under the GATT 1947 (L/7582, dated
13 December 1994). A separate request for notifications under Article XVII of GATT 1994 by WTO
Members will be circulated shortly, and responses to that request will, in line with the previously cited
Decision, be considered also as responses to the present request. |
GATT Library | kq535bz0577 | Status of Additions and Rectifications of Market Access Final Schedules : Note by the Secretariat | World Trade Organization, February 10, 1995 | World Trade Organization | 10/02/1995 | official documents | G/MA/TAR/1 and 0240-0283 | https://exhibits.stanford.edu/gatt/catalog/kq535bz0577 | kq535bz0577_90080737.xml | GATT_1 | 392 | 3,876 | WORLD TRADE
RESTRICTED
G/MA/TAR/1
10 February 1995
ORGANIZATION
(95-0274)
STATUS OF ADDITIONS AND RECTIFICATIONS
OF MARKET ACCESS FINAL SCHEDULES
Note by the Secretariat
The attached document which replaces document PC/3 of 30 November 1994 provides
information concerning the present state of Additions and Rectifications to the Uruguay Round Market
Access Schedules. As concerns the 30-day time-limit for objections, for the purpose of this document,
notifications received following a weekend during which the time-limit has expired, have been considered
as having been received within the prescribed time-limit. G/MA/TAR/1
Page 2
ADDITIONS TO
FINAL SCHEDULES (G/SP/-)
Document Date of document No objections Objections
reference raised within the raised within
30-day time- the 30-day time-
limit limit
Australia G/SP/1 3 August 1994 x
G/SP/8 31 October 1994 x
Belize G/SP/7 - ODC 24 October 1994 x
Cyprus G/SP/6 - ODC 21 October 1994 x
Dominican G/SP/3 - ODC 12 October 1994 x
Republic
European G/SP/2 3 August 1994 x
Communities
Malta G/SP/4 - ODC 18 October 1994 x
Pakistan G/SP/10 13 January 1995
Sri Lanka G/SP/9 + Corr.1 9 November 1994 x
- ODC
Uruguay G/SP/5 - ODC 19 October 1994 x G/MA/TAR/1
Page 3
RECTIFICATIONS TO FINAL SCHEDULES (G/RS/-)
Document Date of document No objections Objections
reference raised within raised within
the 30-day the 30-day
time-limit time-limit
Australia G/RS/3 3 August 94 x
Austria G/RS/16 31 October 1994 x
Canada G/RS/24 15 December 1994 x
G/RS/25 15 December 1994 x
Cuba G/RS/9 2 September 1994 x
Czech Rep. G/RS/20 23 November 1994 x
Dominican Rep. G/RS/26 19 December 1994 x
Hungary G/RS/19 15 November 1994 x
Indonesia G/RS/21 25 November 1994 x
Japan G/RS/6 9 August 1994 x
G/RS/7 17 August 1994 x
Malta G/RS/15 18 October 1994 x
G/RS/23 14 December 1994 x
New Zealand G/RS/1 3 August 1994 x
Norway G/RS/2 3 August 1994 x
Philippines G/RS/5 9 August 1994 x¹
G/RS/10 14 October 1994 x²
G/RS/10/Add. 1 14 December 1994 x
Romania G/RS/14 18 October 1994 x
G/RS/27 6 January 1995 x
South Africa G/RS/18 14 November 1994 x
Sweden G/RS/4 3 August 1994 x
Switzerland G/RS/13 18 October 1994 x
Thailand G/RS/8 17 August 1994 x
G/RS/12 28 September 1994 x1
G/RS/17 14 November 1994 x
Turkey G/RS/28 18 January 1995
Uruguay G/RS/22 29 November 1994 x
Venezuela G/RS/11 28 September 1994 x
¹Objection was partly withdrawn.
²Objection was withdrawn. |
GATT Library | sc536fb4575 | Subsidies : Notifications Pursuant to Article XVI: l | General Agreement on Tariffs and Trade, January 11, 1995 | General Agreement on Tariffs and Trade (Organization) | 11/01/1995 | official documents | L/7611 and 0009-0040 | https://exhibits.stanford.edu/gatt/catalog/sc536fb4575 | sc536fb4575_90080429.xml | GATT_1 | 135 | 938 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
L/7611
11 January 1995
Limited Distribution
(95-0015)
SUBSIDIES
Notifications Pursuant to Article XVI: l
In accordance with the Decision of the CONTRACTING PARTIES at their twentieth session
(BISD 11S/58), contracting parties should submit every third year, new and full responses to the
questionnaire on subsidies (BISD 9S/193) and bring these notifications up to date in the intervening
years.
Contracting parties are therefore invited to submit notifications of the changes which have
occurred in their subsidy measures since their full notifications in 1993 (L/7162 plus addenda) and,
where relevant, their updating notifications in 1994 (L/7375 plus addenda).
Contracting parties which have not, as yet, submitted their full notifications due in 1993 are
requested to do so without further delay. Attention of these contracting parties is drawn to document
L/7162). |
GATT Library | qc271xx5824 | Subsidies : Notifications Pursuant to Article XVI:1. Finland | General Agreement on Tariffs and Trade, January 18, 1995 | General Agreement on Tariffs and Trade (Organization) | 18/01/1995 | official documents | L/7375/Add.10 and 0040-0053 | https://exhibits.stanford.edu/gatt/catalog/qc271xx5824 | qc271xx5824_90080459.xml | GATT_1 | 588 | 5,225 | GENERAL AGREEMENT
ON TARlFFS AND TRADE
RESTRICTED
L/7375/Add.10
18 January 1995
Limited Distribution
(95-0052)
Original: English
SUBSIDIES
Notifications Pursuant to Article XVI: 1
FINLAND
The following notification updating document L/7162/Add.7, dated 28 December 1994, has
been received from the Permanent Mission of Finland.
This document supplements the basic notification (15 February 1992) including the response
to the questionnaire on subsidies notifiable under Article XVI: 1 (GATT document L/7162).
The figures reported for years 1989-1993 are from the government accounts. Figures for 1992
have been revised in this report.
If any changes have occurred, the information on the reported programmes have been revised
accordingly. The figures for the year 1993 have been added to the tables (amount of the subsidy).
In addition to that, an entirely new aid programme has been notified: interest rate subsidy for SMEs
(see item VII).
INDUSTRIAL SUBSIDIES
I.
Promotion of export marketing
Amount of subsidy (FIM million)
¹Of which 174.6 FIM million to manufacturing industries.
1989 1990 1991 1992 1993
Grants 150.0 172.0 186.5 146.0 251.4¹
Loans 32.2 54.7 33.6 19.5 18.0 L/7375/Add.10
Page 2
Il. Energy grants
Amount of subsidy (FIM million)
1989 1990 1991 1992 1993
Grants 42.6 48.8 23.3 22.6 82.3
III. Interest rate subsidy for energy investments aimed at energy conservation new energy technology
and promoting the use of domestic fuels and natural gas
Amount of subsidy (FIM million
1989 1990 1991 1992 1993
Grants 6.6 10.0 9.7 10.3 8.9
IV. Guarantees For small and medium size industry
Amount of subsidy (FIM million) (the total amount of loans guaranteed)
1989 1990 1991 1992 1993
Loan guarantees 218 250 268 446 330
(Number of loans (300 loans) (314 loans) (379 loans) (650 loans) (650 loans)
guaranteed)
V. Support for technological research and development
Amount of subsidy (FIM million)
1989 1990 1991 1992 1993
Grants 182.0 212.3 236.6 308.7 446.32²
Loans 180.0 201.0 216.0 248.0 190.0
²Of which 285.6 FIM million to manufacturing industries. L/7375/Add.10
Page 3
VI. Export Credits
Amount of interest rate subsidy (FIM million)
1989 1990 1991 1992 1993
Subsidies 39.7 83.4 180.1 379.0 359.7
VII. Interest rate subsidy for SMEs
1. Nature and extent of the subsidy
Background and information
The purpose of the programme is to help small and medium sized firms to tackle the severe
financial problems that emerged during the years 1991-1992, when the rate of interest was extremely
high. The programme is of temporary nature designated for the year 1993-1994. The programme
is administered by the Ministry of Trade and Industry.
Amount of interest rate subsidy (FIM million)
1989 1990 1991 1992 1993
Subsidies - - - 0.3 285.6³
2. Effect of subsidy
The effect of the subsidy has not been calculated.
³Of which 218.7 FIM million to manufacturing industries. Notification of Agricultural Subsidies
FIM million L/7375/Add.10 Page 4
Form of Subsidy 1989 1990 1991 1992 1993
(preliminary)
1. Regional support for agriculture total 698.7 734.9 715.8
1. Subsidy based on the number of 180.5 191.8 188.8 207.0 200
domestic animals
2. Milk production subsidy 252.5 265.4 240.8 211.2 210
3. Meat production subsidy 162.0 187.6 215.9 215.0 205
4. Subsidy on rye 9.3 11.5 6.7 abolished
5. Subsidy on starch potato 9.1 7.8 10.4 8.0 8
6. Subsidy on feed grains 42.0 45.7 33.6 27.5 27.5
7. Freight subsidies for milk, meat 35.5 17.6 12.9 12.5 12.5
and eggs
8. Regional subsidy for sugar beet 7.8 7.5 6.7 6.7 7
production
Il. Export subsidies for agricultural 1,627.3 2,407.7 3,059.8 2,315.0 1,994
products
Il. Export refund for food industry 413.1 469.5 415.0 445.0
products |
GATT Library | nv534wm5681 | Subsidies : Notifications pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures | World Trade Organization, January 30, 1995 | World Trade Organization and Committee on Subsidies and Countervailing Measures | 30/01/1995 | official documents | G/SCM/N/3 and 0143-0171 | https://exhibits.stanford.edu/gatt/catalog/nv534wm5681 | nv534wm5681_90080630.xml | GATT_1 | 325 | 2,171 | RESTRICTED
WORLD TRADE G/SCM/N/3
30 January 1995
ORGANIZATION
(95-0167)
Committee on Subsidies and Countervailing Measures
SUBSIDIES
NOTIFICATIONS PURSUANT TO ARTICLE XVI: 1 OF THE GATT 1994
AND ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES
AND COUNTERVAILING MEASURES
1. Pursuant to Article XVI:1 of the GATT 1994 and Article 25.2 of the Agreement on Subsidies
and Countervailing Measures, Members shall notify any subsidy as defined in paragraph 1 of Article 1
of the Agreement on Subsidies and Countervailing Measures which is specific within the meaning of
Article 2 of that Agreement, granted or maintained within their territories.
2. In accordance with the Decision of the CONTRACTING PARTIES at their twentieth session
(BISD 11S/58). Members should submit every third year new and full subsidies notifications and bring
these notifications up to date in the intervening years. As the WTO Agreement entered into force
this year, Members are invited to submit for 1995 new and full subsidies notifications.
3. Members are reminded that the questionnaire regarding notifications pursuant to Article XVI:1
may be found in BISD 9S/193. Article 25:3 of the Agreement on Subsidies and Countervailing
Measures further provides that, without prejudice to the content and form of the questionnaire on
subsidies. Members shall ensure that their notifications contain certain information.
4. Members will recall that the CONTRACTING PARTIES to the GATT 1947 have decided that,
if a measure is subject to a notification obligation both under the WTO Agreement and the GATT 1947,
the notification of such a measure to the WTO shall, unless otherwise indicated in the notification,
be deemed to be also a notification of that measure under the GATT 1947 (L/7582, dated 13 December
1994). Accordingly, the notification of a subsidy pursuant to this invitation would be deemed to be
a notification responding to the request for notifications under Article XVI: 1 of the GATT 1947 (L/7611).
5. Notifications received in reply to the above request will be issued in addenda to this document. |
GATT Library | bd407xf0986 | Suggested Formats for Notifications under the Agreement on Safeguards : Note from the Chairman | World Trade Organization, February 23, 1995 | World Trade Organization and Committee on Safeguards | 23/02/1995 | official documents | G/SG/W/1 and 0372-0392 | https://exhibits.stanford.edu/gatt/catalog/bd407xf0986 | bd407xf0986_90080806.xml | GATT_1 | 2,490 | 16,133 | RESTRICTED
WORLD TRADE G/SG/W/1
23 February 1995
ORGANIZATION
(95-0387)
Committee on Safeguards
SUGGESTED FORMATS FOR NOTIFICATIONS UNDER
THE AGREEMENT ON SAFEGUARDS
Note from the Chairman
1. To facilitate the task of the members of the Committee, a number of delegations had suggested
that the Committee on Safeguards agree on formats for notifications under the Agreement on Safeguards.
An initial version of suggested formats was discussed informally by a group comprising the delegations
that were members of the erstwhile Informal Contact Group on Anti-Dumping, Subsidies and Safeguards.
My consultations with delegations reveal a large degree of consensus regarding the formats that resulted
from the discussions of those delegations. The suggested formats are provided in the Annex to this
note. Formats for certain notifications, i.e. those covered by items I to IV of the Annex to this note,
relate to actions that need to, or may have to, be notified relatively quickly. The suggested formats
for such notifications have already been circulated to Members in documents G/SG/N/1 to 6, in order
to assist Members to focus on the type of information to be submitted in the notifications and to obtain
similar responses from different Members.
2. Please note that a number of issues that may need to be discussed by the Committee, such as
the time period to be considered for calculation of the import share under Article 9. 1, have not been
addressed in these formats. The formats are suggested without prejudice to the interpretation of the
Agreement by the relevant bodies. I am providing these suggested formats for consideration by the
members of the Committee on Safeguard. G/SG/W/1
Page 2
ANNEX
SUGGESTED FORMATS FOR NOTIFICATIONS UNDER THE
AGREEMENT ON SAFEGUARDS
Note: These formats are suggested without prejudice to the interpretation of the relevant
provisions in the Agreement on Safeguards by the competent bodies. Members are
also reminded of the provision in Article 12.11 of the Agreement on Safeguards, which
reads as follows: "The provisions on notification in this Agreement shall not require
any Member to disclose confidential information the disclosure of which would impede
law enforcement or otherwise be contrary to the public interest or would prejudice
the legitimate commercial interests of particular enterprises, public or private.
I. Notifications under Article 12.7 of the Agreement on Safeguards
Notifications to the Committee on Safeguards of measures described in Articles 10 and 11.1 existing
on 1 January 1995. to be provided not later than 2 March 1995, i.e. not later than 60 days after the
date of entry into force of the WTO Agreement
(a) Measures described in Article 10
1. Specify the measure taken under Article XIX of GATT 1947.
2. Specify the product subject to the measure.
3. Specify the date on which the measure was first applied.
4. Provide the reference to the GATT document through which the measure was first notified
to the CONTRACTING PARTIES.
(b) Measures described in Article 11.1(b)
1. Specify the type of measure (please see Article 11.1(b) and footnote 4 for examples).
2. Specify the Members concerned (please see the ANNEX to the Agreement on Safeguards for
an example)
3. Specify the product subject to the measure. G/SG/W/1
Page 3
Il. Notifications under Article 11.2 of the Agreement on Safeguards
(a) Exception under Article 11.2 which must be mutually agreed between the Members
directly concerned and notified to the Committee on Safeguards for its review and
acceptance within 90 days of the entry into force of the WTO Agreement
Note: This exception is to be notified by the Member that is importing the product which is subject
to the measure described in Article 11.1
1 . Specify the type of measure (please see Article 11.1(b) and footnote 4 for examples).
2. Specify the Members concerned (please see the ANNEX to the Agreement on Safeguards for
an example)
3. Specify the product subject to the measure.
(b) Timetables to be presented to the Committee on Safeguards within 180 days after the
entry into force of the WTO Agreement, for phasing out measures referred to in
paragraph 1(b) or bringing them into conformity with the Agreement on Safeguards
1. Specify the type of measure (please see Article 11. 1(b) and footnote 4 for examples).
2. Specify the Members concerned (please see the ANNEX to the Agreement on Safeguards for
an example)
3. Specify the product subject to the measure.
4. Specify timetable for phasing out the measure or for bringing it into conformity with the
Agreement on Safeguards. Such timetables should be presented to the Committee on Safeguards both
for those measures which have to be phased out or brought into conformity with the Agreement on
Safeguards within four years after the date of entry into force of the WTO Agreement and for the "one
specific measure per importing Member, the duration of which shall not extend beyond
31 December 1999" (Article 11.2).
III. Notifications under Article 12.1(a)
Notification to the Committee on Safeguards upon initiation of an investigation process relating to serious
injury or threat thereof and the reasons for it
1. Specify the date when the investigation was initiated.
2. Specify the product subject to the investigation.
3. Provide the reasons for the initiation of investigation, for example:
(i) Was the investigation initiated pursuant to a petition from the domestic industry?
(ii) Evidence on the basis of which the investigation was initiated.
(iii) Evidence, if any, on critical circumstances where delay would cause damage
which it would be difficult to repair. G/SG/W/1
Page 4
IV. Notifications under Article 12.6
Prompt notification to the Committee on Safeguards of laws. regulations and administrative procedures
relating to safeguard measures as well as any modifications made to them
1. In the first notification under Article 12.6, provide the full texts of the laws and regulations
relating to safeguard measures, and notify the administrative procedures relating to safeguard measures.
2. Specify the authorities competent to initiate and conduct investigations.
3. Provide the text of any modifications made to the laws and regulations relating to safeguard
measures, and notify any modifications to administrative procedures relating to safeguard measures.
V. Notifications under Article 9, Footnote 2
Notification to the Committee on Safeguards of non-application of safeguard measure to developing
countries under Article 9.1 of the Agreement on Safeguards
Note: In addition to the information received from the WTO Members regarding the action
under Article 9.1 of the Agreement on Safeguards, the document circulated to the
Members will also include references to the WTO documents through which the
corresponding notifications under Article 12.1(b) and (c) are circulated to the WTO
Members. The references to the corresponding notifications under Article 12.1(b)
and (c) will be provided by the Secretariat, because these notifications may be released
simultaneously with the notification under Article 9, footnote 2, and the notifying
Member may not have information on references to the corresponding WTO documents.
1. Specify the measure.
2. Specify the product subject to the measure.
3. Specify the developing countries to which the measure is not applied under Article 9.1 of the
Agreement on Safeguards, and the import shares of these countries individually and collectively.
4. Subsequently, if there is a change in the list of developing countries exempted from the safeguard
measure pursuant to Article 9. 1, please notify:
(i) the reference to the WTO document that notified the Members about the initial
action under footnote 2 to Article 9. 1;
(ii) if applicable, names of the countries which are dropped from the list of
developing countries to which the safeguard measure does not apply pursuant
to Article 9. 1, the list of the countries remaining on the list, the individual
and collective import shares of the developing countries remaining on the list,
and the date on which the safeguard measure applies to the countries dropped
from the list;
(iii) if applicable, names of the countries which are added to the list of developing
countries to which the safeguard measure does not apply pursuant to Article 9.1, G/SG/W/1
Page 5
the list of all the countries on the list, the individual and collective import shares
of the developing countries on the list, and the date from which the safeguard
measure does not apply to the countries which are added to the list.
VI. Notifications under Article 12. 1(b) and (c)
Notification to the Committee on Safeguards upon making a finding of serious injury or threat thereof
caused by increased imports, notification upon taking a decision to apply or extend a safeguard measure
Notes: (1) The notifications under Article 12.1(b) and (c) have to made
"immediately" upon "making a finding" or "taking a decision".
It is possible that the timing of "making a finding" and "taking
a decision" differs to an extent that notifications under
Article 12.1(b) might be made separately from notifications
under Article 12. 1(c). In that situation, it is possible that
certain information requested in the format may not be
available when a notification under Article 12. 1(b) is made.
If information on any item is not available when a notification
under Article 12.1(b) is made, please indicate this by stating
"not available" for the relevant items in the format suggested
below.
(2) If the notifications on Article 12. 1(b) and (c) are made
separately, please provide the reference to the notification
under Article 12. 1(b) in the notification under Article 12.1(c).
1. Provide evidence of serious injury or threat thereof caused by increased imports.
2. Provide information on whether there is an absolute increase in imports or an increase in imports
relative to domestic production (please see also Article 2. 1 for the context).
3. Provide precise description of the product involved.
4. Provide precise description of the proposed measure.
5. Provide proposed date of introduction of the measure.
6. Provide expected duration of the measure.
7. For a measure with a duration of more than three years, provide the proposed date for the
review (under Article 7.4) to be held not later than the mid-term of the measure, if such a date for
the review has already been scheduled.
8. If the expected duration is over one year, provide expected timetable for progressive liberalization
of the measure.
9. If the measure is being extended, also provide:
(i) evidence that the industry concerned is adjusting and that the safeguard measure
continues to be necessary to prevent or remedy serious injury; G/SG/W/1
Page 6
(ii) reference to the WTO document that notified the initial application of the
measure;
(iii) duration of the measure from initial application till the date at which it will
be extended; and,
(iv) precise description of the measure in place prior to the date of extension (in
this context, please note that the last sentence of Article 7.4 states that: "A
measure extended under paragraph 2 shall not be more restrictive than it was
at the end of the initial period, and should continue to be liberalized.")
VII. Notifications under Article 12.4
Notification to the Committee on Safeguards before taking a provisional safeguard measure referred
to in Article 6
1. Specify the product subject to the proposed provisional safeguard measure.
2. Specify the proposed provisional safeguard measure.
3. Specify the proposed date of introduction of the provisional safeguard measure.
4. Specify the expected duration of the provisional safeguard measure, if any decision on the
duration of the measure has been made.
5. Provide the basis for:
(i) making a preliminary determination, as provided for in Article 6, that increased
imports have caused or are threatening to cause serious injury ; and,
(ii) determining that there are critical circumstances where delay would cause
damage which it would be difficult to repair.
VIII. Notifications under Article 12.5
(a) Immediate notification to the Council for Trade in Goods of the results of the
consultations referred to in Article 12, namely. prior consultations under Article 12.3
or consultations under Article 12.4 initiated immediately after the provisional safeguard
measure is taken
Note: The notification of the results of the consultations referred to in Article 12 should,
if possible, be provided jointly by the Member that takes the safeguard action and the
Member that seeks consultations under Articles 12.3 or 12.4.
1. Specify the provision under which consultations were held (i.e. Article 12.3 or Article 12.4).
2. Provide reference to the WTO document that notified the safeguard action regarding which
consultations were held under Article 12.3 or 12.4. G/SG/W/1
Page 7
3. Specify the Members involved in the consultations, and provide the time period during which
consultations were held.
4. Describe the results of the consultations.
(b) Immediate notification to the Council for Trade in Goods of the results of the mid-term
reviews referred to in paragraph 4 of Article 7
1. Specify the measure and the product subject to the measure for which the mid-term review
was conducted, and provide reference to the WTO document that notified the safeguard measure subject
to the review.
2. Provide the dates of initiation and conclusion of the review.
3. Describe the results of the review, providing some detail on the basis for reaching those results.
4. Indicate whether:
(i) the measure has been, or will be, withdrawn as a result of the review. If yes,
then indicate the date of withdrawal; and,
(ii) the pace of liberalization has been, or will be, increased as a result of the
review. If yes, then indicate the revised time-table for progressive
liberalization.
(c) Immediate notification to the Council for Trade in Goods of any form of compensation
referred to in paragraph 1 of Article 8
Note: This notification should, if possible. be submitted jointly by the Member taking the
safeguard measure and the Member(s) agreeing to accept trade compensation under
Article 8. 1.
1. Specify the measure and the product subject to the measure regarding which there was an
agreement on an adequate means of trade compensation under Article 8. 1, and provide reference to
the WTO document that notified the safeguard measure.
2. Specify which Member(s) agreed to the trade compensation under Article 8. 1.
3. Describe the trade compensation that was agreed by each of the Members involved.
4. Provide the date from which the compensation will apply for the Members involved.
(d) Immediate notification to the Council for Trade in Goods of proposed suspension of
concessions and other obligations referred to in paragraph 2 of Article 8
Note: This notification is to be provided by the Member proposing suspension of concessions
and other obligations referred to in Article 8.2.
1. Which Member is proposing suspension of concessions and other obligations referred to in
Article 8.2. G/SG/W/1
Page 8
2. Specify the measure, the product subject to the measure, the WTO document that notified the
safeguard measure, and the Member imposing the measure in relation to which the Member is proposing
suspension of concessions and other obligations referred to in Article 8.2.
3 . Describe the proposed suspension of concessions and other obligations referred to in Article 8.2,
and the proposed date from which it will come into effect. |
GATT Library | mt044mm7851 | Summary Record of the First Meeting : Held at the International Conference Centre Geneva, on Thursday. 8 December 1994, at 3 p.m | General Agreement on Tariffs and Trade, February 8, 1995 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 08/02/1995 | official documents | SR.50/1 and 0240-0283 | https://exhibits.stanford.edu/gatt/catalog/mt044mm7851 | mt044mm7851_90080710.xml | GATT_1 | 7,471 | 48,660 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
SR.50/1
8 February 1995
Limited Distribution
(95-0244)
CONTlRACTING PARTIES
Fiftieth Session
SUMMARY RECORD OF THE FIRST MEETING
Held at the International Conference Centre Geneva,
on Thursday. 8 December 1994, at 3 p.m.
Chairman: Mr. A. Szepesi (Hungary)
Subjects discussed:
- Adoption of Agenda
- Chairman's opening address
- Order of Business
- Presentation of reports
- Arab Maghreb Union - Request for observer status
- Activities of GATT
- Report of the Council
Page
2
2
2
2
6
6
6 SR.50/1
Page 2
Adoption of the Agenda
Before the adoption of the Agenda, the CHAIRMAN welcomed Grenada, the United Arab
Emirates, Guinea Bissau, St. Kitts and Nevis, Liechtenstein, Qatar, Angola, Honduras and Slovenia
as new contracting parties, which brought GATT membership to a total of 124.
The CHAIRMAN noted that the Provisional Agenda was contained in L/7552, and proposed
adding the following item to the Agenda: "Arab Maghreb Union - Request for observer status." An
additional item: "United States' Export Enhancement Programme for sales of barley to Korea" was
proposed by Canada. The CHAIRMAN suggested that this matter be taken up under item 2 of the
Provisional Agenda in the context of the examination of the Council's report.
The Agenda, as amended, was adopted (L/7573).
Chairman's opening address
The CHAIRMAN made an opening address (GATT/1659).
Order of Business
The CHAIRMAN drew attention to the Proposed Order of Business circulated in W.50/15
which provided an outline of the organization of work during the Session. He proposed beginning
with the presentation of reports, followed by consideration of the request for observer status by the
Arab Maghreb Union, general statements by contracting parties, consideration of the report of the
Council, the dates for the next regular Session and the Election of Officers.
The CONTRACTING PARTIES approved the proposed Order of Business in W.50/15, as
amended.
Presentation of reports
Presenting the Council's report (L/757 1, Corr. 1 and Add. 1 /Rev. 1), its Chairman, Mr. Zahran
(Egypt), said that although priority in the first months of 1994 had been given to concluding the Uruguay
Round Negotiations and subsequently to the work related to the transition to the World Trade
Organization (WTO), the Council had held eight regular meetings and eleven special trade policy review
meetings since the Forty-Ninth Session of the CONTRACTING PARTIES. As in previous years,
the Council had covered a broad range of issues and had continued to play an important management
rôle as the governing body of the GATT between the Sessions of the CONTRACTING PARTIES.
The report of the Council reflected that a major aspect of the Council's work had pertained to examining
the requests for accessions and for observer status as well as to overseeing the large number of accession
negotiations. Since the Forty-Ninth Session of the CONTRACTING PARTIES on 25-27 January 1994,
Angola, Grenada, Guinea Bissau, Honduras, Liechtenstein, Qatar, St. Kitts and Nevis, Slovenia and
the United Arab Emirates had become contracting parties bringing the GATT membership to 124
contracting parties. The Council had established two working parties to examine the requests for
accession from Estonia and Lithuania. Four new countries -- Georgia, Sudan, Uzbekistan and Viet
Nam -- and one international organization -- European Bank for Reconstruction and Development --
had been granted observer status. SR.50/1
Page 3
Given the unusual increase in the number of requests for accessions, in particular in 1993,
the Council had made an effort during the current year to further rationalize the management of work
on accession negotiations. For the successful conclusion of such negotiations in the most effective
possible manner, the Council had identified a number of points of an indicative nature which aimed
at rationalizing the work on accession negotiations. These points, contained in a statement by the
Chairman, had also been submitted to the Preparatory Committee of the WTO for consideration. Another
accession-related matter raised in the Council concerned the lack of an appropriate GATT mechanism
to monitor the implementation of commitments relating to tariff and non-tariff matters undertaken by
governments upon accession. This matter deserved further consideration either in the context of the
work of the GATT Council next year or, if considered appropriate at the time, by the General Council
of the WTO. He also noted that, following the decision taken at the Forty-Ninth Session of the
CONTRACTING PARTIES, the Council had considered and adopted a proposal by the United States
for a decision on the interpretation of Article XXXV which allowed a contracting party and a government
acceding to the GATT to engage in negotiations relating to the establishment of a GATT schedule of
concessions by the acceding government without prejudice to the right of either to invoke Article XXXV
in respect of the other.
Early in the year, the Council, in a separate regular meeting to review the work in GATT relating
to the follow-up to the United Nations Conference on Environment and Development (UNCED), noted
that such work, already undertaken in GATT, had contributed to a deepening knowledge of the
interlinkages between trade and environment. Contracting parties had expressed their continuing
determination for GATT to play its full part in ensuring that policies in the fields of trade, environment
and sustainable development were compatible and mutually supportive. This commitment had been
subsequently confirmed by the adoption in Marrakesh of the Ministerial Decision on Trade and
Environment. The Sub-Committee on Trade and Environment of the Preparatory Committee of the
WTO had already initiated substantive discussions on the basis of that Decision, pending the establishment
of the Committee on Trade and Environment within the WTO.
Since the Forty-Ninth Session of the CONTRACTING PARTIES, eleven trade policy reviews
had been carried out, bringing the number of reviews held to fifty-three since the inception of the Trade
Policy Review Mechanism (TPRM). During this period third reviews of Canada and the United States
and second reviews of Australia, Hong Kong and Indonesia had taken place, while first reviews had
covered Iceland, Macau, Peru, Senegal, Tunisia and Zimbabwe. The current programme of Trade
Policy Reviews would conclude with reviews of Sweden and Israel in December 1994 and of Cameroon,
Pakistan and the third review of Japan in late January and February 1995. The last three reviews,
prepared during 1994, would be conducted by the new Trade Policy Review Body of the WTO, under
the GATT procedures. Following modifications to the TPRM in 1993, further improvements had been
made in 1994. Taken together, these changes aimed at promoting greater complementarity between
the government and Secretariat reports by proposing that government reports be in the form of 'policy
statements"; in addition, advance submission of issues addressed by discussants and questions by
members, identification of main themes to be addressed by countries under review in answers to
questions, and stricter time limits on statements by representatives during the Council's special meetings
had helped to streamline and promote more lively and focused discussions. However, more active
participation in the meetings - for major countries and others alike - would be valuable both to the
countries under review and to the viability of the system. He believed the new Trade Policy Review
Body should give this question serious consideration. The TPRM had now become a central part of
the GATT surveillance function. It had provided essential monitoring of evolution and change in the
trade policy régimes of major trading partners, had opened trade policy régimes of many developing
countries to international scrutiny and had made significant contributions to the domestic process of
trade policy formulation and reforms. The continuation into the WTO and the expansion of the TPRM
to include the new areas of Services, Trade-Related Aspects of Intellectual Property Rights (TRIPs) SR.50/1
Page 4
and Trade-Related Investment Measures (TRIMs) would provide an additional dimension to the
Mechanism.
An important aspect of the Council's work in 1994 had continued to be its involvement in the
dispute settlement process including the monitoring of implementation of panel reports. As indicated
in the latest report to the Council by the Director-General, there had been a substantial decline in dispute
settlement activity in the past twelve months both under the General Agreement and under the Tokyo
Round Agreements. Compared to the previous twelve-month period, the number of requests for
consultations had decreased by half from thirty-one to fifty, panels established had fallen from seven
to four and adoptions of panel reports declined from four to three. Four panel reports submitted to
the Council were still under consideration. It was noteworthy that the number of disputes in which
implementation issues had been raised had fallen to a particularly low level. One explanation of this
decline in dispute settlement activity had been the expected entry into force of the WTO Agreement
and its improved settlement rules. The Council had also considered the question of third-party
participation in panels and had agreed to certain practices which would improve the work in this area
without prejudice to the rights of contracting parties under established dispute settlement procedures.
As in previous years, the trend towards the establishment of free-trade agreements and customs
unions had continued in 1994. It was important to ensure that this significant trend would not lead
to the creation of new barriers to trade or to establishment of hostile blocs. The Uruguay Round
Understanding on the Interpretation of Article XXIV provided a useful tool for ensuring improved
rules and disciplines in this area. He recalled that, due to pressure of the preparatory work on the
transition from GATT to the WTO, the Council had not addressed the proposals put forward by some
contracting parties at the Forty-Eighth and Forty-Ninth Sessions to initiate a process of examination
of the current trend towards regionalism. He also recalled that in recent years the requirements for
biennial reporting on regional arrangements had not been fulfilled, nor had a calendar for such reports
been established by the Council since 1987. He reiterated the Council recommendation that these matters
be taken up in 1995 either by the GATT Council or, if considered appropriate at the time, by the General
Council of the WTO.
With regard to the waivers requested for the implementation of the Harmonized System, although
their number had declined in 1994, the number of requests (17) before the Council remained relatively
high.
The Council had continued to devote the necessary attention to introducing more rigour and
discipline in its working practices. Following the improvements introduced the previous year, further
progress had been made in the current year concerning the treatment of "Other Business" items. The
informal consultations held prior to Council meetings aimed to pave the way for achieving agreement
on various issues, had also proved a useful practice which he believed should continue and be intensified,
as necessary, in future, within the WTO.
Presenting the report of the Committee on Trade and Development (L/7567), its Chairman,
Mr. Tironi (Chile), said that since the Forty-Ninth Session of the CONTRACTING PARTIES, the
Committee had held only one formal session, on 21 and 25 November 1994, when the following items
had been discussed: (i) developing countries' participation in the international trading system; (ii) review
of the implementation of the provisions of Part IV and the operation of the Enabling Clause;
(iii) technical assistance to developing countries in the context of the Uruguay Round; and (iv) work
of the Sub-Committee on Trade of Least-Developed Countries, which had held a meeting in November
when the Director-General had met a long-standing request on the part of the least-developed countries,
by announcing the establishment of a special unit in the Secretariat to deal specifically with the situation
and needs of least-developed countries in the context of the new legal framework resulting from the SR.50/1
Page 5
Uruguay Round. The Committee had addressed the substantive issue of the participation of developing
countries in the international trading system by focusing on whether developing countries had recently
increased their share in world trade, and whether international trade had contributed to their economic
growth. These questions were of particular relevance with the creation of the WTO in which developing
countries would play a major rôle. Ten main conclusions emerged from the debate: (1) The developing
countries' percentage share in world trade had been growing. (2) This growth had been uneven: the
least-developed countries, and recently Africa, had seen a decrease in their share in trade, while other
regions, such as South-East Asia, had significantly increased their share. (3) This had resulted as much
from domestic policies as from the general international environment, since these different trends could
not be attributed to the international environment alone. (4) The Uruguay Round had represented a
significant opportunity for developing countries to increase their share in trade, because ofthe integration
of sectors previously outside the GATT system (such as agriculture and textiles) into WTO rules, and
because the Round had dealt with internal policies (and notjust border measures) that restricted trade.
(5) Therefore future participation of developing countries in world trade would be determined by the
effectiveness with which the Uruguay Round agreements would be implemented. (6) Though participation
in world trade of both developing and developed countries had increased in the past twenty years, the
opposite had occurred for the former socialist States, which seemed to indicate the importance of market
forces, or a reduction of State intervention, for trade development. (7) Product composition of the
trade of developing countries had been important, as the substantial rise in trade of manufactures had
been the key to the increased participation of some of these countries. The growth of intra-regional
trade had also been relevant. (8) It was important to make an examination of changes and to see whether
higher or lower hindrances to trade in recent years could explain the developing countries' share in
world trade. (9) In future, developing countries would make greater commitments in the WTO, and
in this context ail WTO members should note that developing countries accounted for 25 per cent of
world trade. (10) Finally, it was necessary to integrate the autonomous liberalization measures taken
by developing countries into the multilateral system aimed at facilitating, promoting and liberalizing
trade.
The purpose of the Committee's discussions had been to provide a benchmark to analyse the
progress made by developing countries in the multilateral trading system.
In addition, the Committee had successfully concluded consultations on the terms of reference
for the WTO Committee on Trade and Development, by outlining the future work programme in the
light of the Uruguay Round results and by reaching agreement regarding the complex issue of matters
relating to the implementation of the special clauses of the Multilateral Trade Agreements and Ministerial
Decisions in favour of developing-country Members of the WTO.
The CHAIRMAN then drew attention to the following reports of the Committees and Council's
charged with the implementation of the MTN Agreements and Arrangements: C nmittee on Trade
and Civil Aircraft (L/7557), Committee on Technical Barriers to Trade (L/7558), Committee on Import
Licensing (L/7556), International Dairy Products Council (L/7562), International Meat Council (L/7561),
Committee on Government Procurement (L/7564), Committee on Anti-Dumping Practices (L/7553),
Committee on Subsidies and Countervailing Measures (L/7554), and Cornmittee on Customs Valuation
(L/7565). SR.50/1
Page 6
Arab Maghreb Union
- Request for observer status
The CHAIRMAN drew attention to a communication from the Arab Maghreb Union (L/7548)
requesting observe. status at Sessions of the CONTRACTING PARTIES. He suggested that the
CONTRACTING PARTIES agree to grant the Arab Maghreb Union observer status.
The CONTRACTING PARTIES so agreed.
Activities of GATT
The following general statements were made:
SR.50/ST/ 1
Mr. M. Endo
Ambassador, Permanent Representative
of Japan
SR. 50/ST/2
Mr. G.E. Shannon
Ambassador, Permanent Representative
of Canada
Mr. J.C. Sanchez Arnau
Ambassador, Permanent Representative
of Argentina
Mr. T.J.B. Jokonya
Ambassador, Permanent Representative
of Zimbabwe
SR. 50/ST/3
SR. 50/ST/4
SR.50/ST/20
Mr J.-P. Leng
Ambassador, Permanent Representative
of the European Communities
Mr. O.D. Davydov
Deputy Prime-Minister, Minister of External Economic
Relations, Russia (speaking as an Observer)
SR.50/ST/21
Report of the Council (L/757 1, Corr. 1 and Add. 1 /Rev. 1)
The CHAIRMAN referred to the report of the Council of Representatives on its work since
the Forty-Ninth Session. A list of matters on which the CONTRACTING PARTIES were expected
to take action had been circulated in L/7571/Add. 1/Rev. 1. He stressed that the report was not intended
to reflect detailed positions of delegations, since the Council Minutes contained such information and
remained the record of the Council's work. SR.50/1
Page 7
Point 2. Trade Policy Review Mechanism
Sub-point 2(b). Country reviews
The CHAIRMAN said that in accordance with the Decision of 12 April 1989 on the Functioning
of the GATT System (BISD 36S/403, paragraph I.D.(vi)) the relevant documents pertaining to the
reviews of Senegal, Australia, Iceland, United States, Peru, Tunisia, Macau, Hong Kong, Canada,
Indonesia and Zimbabwe were before the CONTRACTING PARTIES. He also drew attention to
document L/7458 concerning procedures for the continued operation of the Trade Policy Review
Mechanism (TPRM).
Mr. Gosselin (Canada) said that since its establishment at the Montreal Mid-Term Review meeting
in 1990, adjustments of the TPRM had been made, and the most recent ones contained in document
L/7458, aimed at streamlining and lightening the process. Canada, which had been reviewed three
times over this period, encouraged contracting parties and eventually Members of the WTO to undertake
a thorough Trade Policy Review (TPR). Nonetheless, the TPR process, already burdensome on the
parties concerned and on the Secretariat, would be even more demanding on staff resources especially
since reviews under the WTO would cover more countries and new policy areas. The present format,
although intended to foster discussion, often seemed to result in an overly concentrated focus on micro
questions of policy and on the application of the policy through measures. Canada believed that this
drift towards a dispute settlement ype-process would hamper the transparency which had been the
purpose for the TPRM. Canada hoped for a return to more general policy discussions; it believed
from its recent experience of utilizing the new format for government reports, which focused more
on trade policy objectives, could provide some basis for refocussing discussion.
The CONTRACTING PARTIES took note of the statement and also took note of the reports
by the contracting parties under review and by the Secretariat, and of the minutes of the respective
Council meetings.
Sub-point 2(c). Programme of reviews
The CHAIRMAN drew attention to document L/7574 and recalled that the reviews of Cameroon,
Pakistan and Japan under the 1994 programme had had to be carried over to the first months of 1995
and that these reviews would be carried out, as planned, under the procedures of GATT 1947.
The CONTRACTING PARTIES so agreed.
Point 3. Committee on Tariff Concessions
Sub-point 3 (b). Report
The CHAIRMAN drew attention to the second biannual report ofthe Committee on its activities
(TAR/269 and Add. 1).
Ms. Thompson (Australia), Vice-Chairperson of the Committee on Tariff Concessions, on behalf
of Mrs. Bautista (Philippines), Chairperson of the Committee on Tariff Concessions said that the report
contained detailed factual information on the status of waivers. While a number of countries had
requested further extension of their waivers, some progress had been registered and several countries
seemed very close to the conclusion of their Article XXVIII negotiations and would hopefully submit
a new pre-Uruguay Round Harmonized System (HFS) schedule in the near future. With reference to SR.50/1
Page 8
its activities, the Committee had focused on the implication for GATT schedules of substantial changes
to be implemented in the HS nomenclature as of 1 January 1996. It was expected that during 1995,
many delegations would submit the necessary documentation related to the transposition of their schedules
into HS 1996 and, where necessary, carry out renegotiations under Article XXVIII.
The CONTRACTING PARTIES adopted the report of the Committee on Tariff Concessions
(TAR/269 and Add. 1).
Point 4. Trade in Textiles
The CHAIRMAN drew attention to the report by the Committee on its meeting held on
2 December 1994 (COM.TEX/78).
The Director-General, Chairman of the Committee, introduced the Committee's report on its
annual review of the operation of the Multifibre Arrangement (MFA) as extended by the 1986 Protocol
(BISD 33S/7), and as maintained in force by the 1993 Protocol (L/7373). At its meeting, the Committee
had considered the report of the Textiles Surveillance Body (TSB) (COM.TEX/SB/1975 and Add. 1)
and a statistical report by the GATT Secretariat (COM.TEX/W/268 and Add. 1), and had heard an
oral statement by the Chairman of the TSB.
He proposed to transmit to the Members of the Textiles Committee any notifications made
to the TSB between its last meeting on 19 December and the date of the expiry of the MFA on
31 December 1994, after receiving such documentation from the Chairman of the TSB. He underlined
that the meeting referred to above represented a momentous occasion - the end of thirty-three years
of special rules for textiles and clothing trade: twelve years of the Cotton Arrangements and twenty-one
years of the MFA. He expressed the appreciation of the Textiles Committee for the work of Ambassador
Marcelo Raffaelli, Chairman of the TSB over a twelve-and-a-half-year period.
The CONTRACTING PARTIES took note of the statement and adopted the report of the Textiles
Committee (COM.TEX/78).
Point 5. Cornmittee on Balance-of-Payments Restrictions
Sub-point 5(c). Consultations with India and Pakistan (BOP/R/221)
Sub-point 5(d). Note on the meeting on 15 November 1994 (BOP/R/222)
Mr. Witt (Germany), Chairman of the Committee, introduced the reports. The Committee
had met on 15 November 1994, and had held simplified consultations with India and Pakistan pursuant
to Article XVIII: 12(b) of the General Agreement and the Declaration of the CONTRACTING PARTIES
on Trade Measures Taken for Balance-of-Payments Purposes (BISD 26S/205).
The Committee had appreciated the courage and the sagacity with which India had carried out
its economic reform programme and encouraged it to continue implementing its import liberalization
programme. The Committee had noted that, if the balance of payments showed sustained improvement,
India's aim was to move by 1996/97 to a régime in which import licensing restrictions would be
maintained only for environmental and safety reasons. The Committee had welcomed the significant
improvement in India's balance-of-payments position since the last consultation, but recognized that
it remained volatile and, therefore, determined that a full consultation was desirable in the second half SR.50/1
Page 9
of 1995, the timing of which would be established in consultation with India, the IMF and other interested
parties.
In respect of Pakistan, the Committee had decided to recommend to the Council that Pakistan
be deemed to have fulfilled its obligations under Article XVIII: 12(b) for 1994 and that the next regular
consultation with Pakistan should be a full consultation.
Under Other Business, as set out in BOP/R/222, the Committee had a discussion on the format
of the Secretariat background report in connection with paragraph 7 of the Declaration on Trade Measures
Taken for Balance-of-Payments Purposes (BISD 26S/205).
Mr. Shannon (Canada) noted that in recent meetings the Committee on Balance-of-Payments
Restrictions had been unable to carry out its work properly because the countries invoking Article XII
or Article XVIII: B had not provided precise information on their import restrictions covered by balance-
of-payments provisions. The Committee members had been unable to assess the appropriateness of
the measures to forestall the threat of, or to stop a serious decline in the country's monetary reserves,
or in the case of a contracting party with inadequate monetary reserves to achieve a reasonable rate
of increase in such reserves. It had also been impossible to suggest alternative corrective actions which
might be available, or to examine the possible effects of the restrictions on the economies of other
contracting parties. For the Committee on Balance-of-Payments Restrictions to work effectively in
the future, countries invoking balance-of-payments provisions should provide precise information well
in advance of their review.
The CONTRACTING PARTIES took note of the statement, adopted the report in BOP/R/22 1,
and took note of the information in BOP/ R/222.
Point 17. Recourse to Articles XXII and XXIII'
Sub point 17(d)(iv). United States - Restrictions on imports of tuna
- Recourse by the European Communities and the Netherlands
- Panel report (DS29/R)
The CHAIRMAN recalled that this matter had been before the Council at its meeting in
November 1994 and had been referred to the present Session for further consideration.
Mr. Leng (European Communities) recalled that the Community's position with regard to this
matter had been explained on two occasions at Council meetings and was well known.
Mr. Gardner (United States) said that his Government had been preoccupied in past months
with the ratification of the Uruguay Round results and had not had time to examine the panel report.
He said that his Government would be in a position to comment on the panel report at the next Council
meeting in 1995 if the issue was taken up at that time.
Mr. Misle (Venezuela) recalled that this report had been before the Council since July. On
several occasions, Venezuela had developed legal and environmental arguments for the Council to adopt
'See also a statement circulated by Ecuador, Guatemala, Honduras, Mexico and Panama relating
to item 17(a) of the Council's Report - a) European Economic Community: (i) member States' import
régimes for bananas and (ii) import régime for bananas (document W.50/22). SR.50/1
Page 10
the report. It believed that sufficient time had gone by for the consideration of this report, and would
appreciate being informed of the United States' position, hoping that as the result of its analysis, the
United States would be in a position as a first step to adopt the report before lifting the embargo imposed
on Venezuela tuna products since 1991. If such were not the case, Venezuela reserved its rights within
the framework of the WTO.
Mr. Kenyon (Australia) expressed disappointment that the panel report which dealt with important
GATT principles and rules, supported by Australia, had not been adopted.
The CONTRACTING PARTIES took note of the statements and agreed to refer this matter
to the Council for further consideration.
Sub-point 17(d)(v). United States - Taxes on automobiles
- Panel report (DS 31/R)
The CHAIRMAN recalled that this matter had been before the Council at its meeting in
November 1994 and had been referred to the present Session for further consideration.
Mr. Leng (European Communities) said that the Community was not prepared to adopt the
panel report. In the Community's opinion, the report introduced a totally new interpretation of the
first sentence of Article III:2. This interpretation was contrary to the well-established precedents of
earlier panels, in particular the panel report on Japan - Customs duties, taxes and labelling practices
on imported wines and alcoholic beverages.2 According to these established precedents, the first of
which dates back to the 1950s concerning Italian tractors, the underlying objective of Article III,
paragraphs 2 and 4, was to prevent any impairment of tariff obligations under Articles I and Il and
to ensure equality of treatment for imported products once they had undergone customs clearance.
This was an overriding objective for all contracting parties. In the present case, this had not been
mentioned at all, being replaced by emphasis on prohibition on imposing taxes "so as to afford protection
to production".
In accordance with the text of Article III:2, this prohibition applied only to competitive and
substitutable products, mentioned in the second sentence. By introducing this prohibition as a decisive
criterion also in the first sentence of Article III:2 concerning like products, the panel had gone against
the text of that provision. Without giving any grounds for doing so, the panel had blurred the
fundamental distinction between the first and second sentences of Article III:2. This interpretation,
which was contrary to the actual terms of Article III, was unacceptable, since panels were not the law-
making bodies of the GATT. The European Union was well aware that some flexibility must be given
to "regulatory taxes" of the contracting parties. But to achieve this flexibility by an interpretation that
was contrary to the very wording of Article III:2, created a danger of calling into question the well-
established precedents on tax discrimination. It could not be denied that the new interpretation, owing
to the variety of regulatory distinctions it authorized, allowed "tariff specialization" in an indirect manner
and hindered full protection against any impairment of tariff concessions. Furthermore, the panel had
set a very high standard with respect to proving the purpose and effect of protection of domestic
production, even quite explicit statements by members of the American legislature had not been
considered reliable proof. In doing so, the panel had exposed the legislators of contracting parties
to the constant temptation - at a time when all governments were constantly looking for fresh revenues -
to tax first and foremost imports, which often occupied "specialized market niches".
²L/6216. SR.50/1
Page 11
Mr. Gardner (United States) took note of the Community 's statement and intended to comment
on it at the next Council meeting if this issue was taken up at that time.
Mr. Mahhusen (Sweden) said that in his delegation 's view, the panel had not given due attention
to all the discriminatory aspects and effects of the American car tax system. Its analysis of Article
XX(g) and the issue of the least trade restrictiveness lacked in comprehension and prn provided no support
for future discussion on taxes for environmental purposes.
Mr. Kenyon (Australia) expressed disappointment that the panel report which dealt with important
GATT principles and rules that Australia supported, had not been adopted.
The CONTRACTING PARTIES took note of the statements made and agreed to refer this
matter to the Council for further consideration.
Point 21. Customs unions and free-trade areas; regional agreements
- Free-Trade Agreement between the EFTA States and the Czech Republic and
the Slovak Republic (L/7570)
The CHAIRMAN drew attention to document L/7570 containing the report of the Working
Party, established by the Council in July 1992, to examine the Free-Trade Agreement between the
EFTA States and what was then the Czech and Slovak Federal Republic.
The Chairman of the Working Party, Mr. Kesavapany (Singapore), said that the Working Party
had recognized that the Agreements would contribute to further economic co-operation and trade relations
between the Parties, advance economic activity and bring about an expansion of overall trade. It had
noted that on entry into force of the Agreements, the EFTA States had eliminated customs duties and
other import and export barriers for most products originating in the Czech Republic and the Slovak
Republic covered under the Agreements, and that residual import restrictions on certain specific products,
would be abolished not later than 1998. The Czech Republic and the Slovak Republic had also abolished
customs duties on a specified list of products originating in the EFTA States, with restrictions on the
remaining products to be phased-out within a transitional period of ten years.
Several members had agreed with the Parties to the Agreements that the Agreements covered
substantially all the trade and that the agricultural bilateral arrangements, concluded within the framework
of the Agreements, had contributed to facilitating trade between the Parties without raising barriers
to the trade of other contracting parties. However, some other members doubted the consistency of
the Agreements with the definition of a free-trade area in Article XXIV.
The Working Party had noted that the relevant provisions of the Agreements did not contain
specific guidelines on a possible course of action regarding emergency actions involving third parties,
but had been assured by the Parties that the Preamble to the Agreements contained the commitment
that no provisions ofthe Agreements might be interpreted as exempting the Parties from their obligations
under the General Agreement. Some members had pointed to their divergence of views with the Parties
to the Agreements regarding the relationship of Article XXIV to Article XIX of the General Agreement.
Certain members had supported the Parties to the Agreements that the Agreements were consistent
with the relevant provisions of the General Agreement; other members had questionned their full
consistency with the relevant provisions of the General Agreement, including Article XXIV, and therefore SR.50/1
Page 12
had reserved their GATT rights. The Parties to the Agreements had been invited to furnish biennial
reports on the operation of the Agreements, the first such report to be submitted in 1996.
The CONTRACTING PARTIES took note of the statement and adopted the report (L/7570).
Sub-point 21(f). Enlargement of the European Community
Mr. Endo (Japan) said that his country was concerned that concessions made by the European
Communities on items of interest to Japan would be modified less favourably due to the accession of
Austria, Sweden and Finland to the Community. Japan had informed the Community of its intention
to enter into Article XXVIII negotiations under Article XXIV:6 with respect to this enlargement and
had requested the Community to provide the information needed for the process as soon as possible.
Mr. Leng (European Communities) took note of Japan's statement and said that the exact
magnitude and scope of the enlargement of the European Communities had become clear only very
recently, particularly, since the Community had learned that Norway had decided not to join. The
Community still needed to work on the consequences of this englarement on its Common External
Tariff. Certain steps, in particular the internal ratification procedures by member States and adhering
countries, were underway and awaited conclusion. Therefore, the final decision would be taken on
1 January 1995. On conclusion of these internal procedures, the Community would notify the complete
text of all accession agreements. In the context of the procedures provided for by the Article XXIV,
and in particular paragraphs 6 and 8, the Community intended to withdraw the list of tariff concessions
of the three adhering countries as well as that of the twelve members of the Community. He confirmed
that as of 1 January 1995 the Community would be ready to undertake the procedures under Article
XXIV including tariff negotiations under paragraph 6 thereof.
The CONTRACTING PARTIES took note of the statements.
Point 22. Waivers under Article XXV:5
Sub-point 22 (a). Harmonized System
The CHAIRMAN drew attention to the following documents containing requests for extensions
ofwaivers from the following countries: Argentina(W.50/14), Bangladesh (W.50/ 1), Bolivia (W.50/9),
El Salvador (W. 50/2), Guatemala (W. 50/10), Israel (W. 50/13), Jamaica (W. 50/12), Morocco (W. 50/3),
Nicaragua (W.50/4), Pakistan (W.50/5), Sri Lanka (W.50/7), Trinidad and Tobago (W.50/8)
The Decisions were adopted with the following votes in favour:
Argentina (L/7592) - 108; Bangladesh (L/7593) - 109, 1 abstention; Bolivia (L/7594) - 107, 1 abstention;
El Salvador (L/7595) - 108; Guatemala (L/7596) - 106; Israel (L/7597) -104; Jamaica (L/7598) -
110; Morocco (L/7599) -109, 1 abstention; Nicaragua (L/7600) - 109; Pakistan (L/7601) - 110;
Sri Lanka (L/7602) - 110; and Trinidad and Tobago (L/7603), 110. No negative votes were expressed.
Sub-point 22 (c). Malawi - Renegotiation of Schedule LVIII
The CHAIRMAN drew attention to the communication from Malawi requesting an extension
of its waiver (W.50/19), and to the draft decision annexed thereto. SR.50/1
Page 13
The CONTRACTING PARTIES agreed that the draft Decision in W.50/19 be submitted for
adoption by a vote.
The Decision (L/7589) was adopted by 110 votes in favour and none against.
Sub-point 22 (d). Senegal - Renegotiation of Schedule XLIX
The CHAIRMAN drew attention to the communication from Senegal requesting an extension
of its waiver (W.50/6), and to the draft Decision annexed thereto.
The CONTRACTING PARTIES agreed that the draft Decision in W.50/6 be submitted for
adoption by a vote.
The Decision (L/7590) was adopted by 110 votes in favour and none against.
Sub-point 21 (f) Zaire - Renegotiation of Schedule LXVIII
The CHAIRMAN drew attention to the communication from Zaire requesting an extention
of its waiver (W.50/18), and to the draft Decision annexed thereto.
The CONTRACTING PARTIES agreed that the draft Decision in W.50/18 be submitted
for adoption by a vote.
The Decision (L/7591) was adopted by 110 votes in favour and none against.
Sub-point 21 (j). Fourth ACP-EEC Convention of Lomé
The CHAIRMAN drew attention to the communication in L/7539 and Corr. 1 containing the
request for a waiver, as well as to a revised text of the draft Decision contained in C/W/820/Rev.2 3
Mr. Leng (European Communities) said that the Community attached considerable importance
to this matter due to its very political nature. At the Council meeting in November the Community
had noted that the request for the above-mentioned waiver had met with a political consensus of the
Council members. However, some contracting parties had wished, for linguistic reasons, to review
the text and the Community had consulted with those contracting parties who had wished to make
some adjustments. As a result, at the present meeting a new text had been submitted to the
CONTRACTING PARTIES for adoption. He recalled that at the November Council meeting he had
explained the reasons which had led to the request for this waiver and had stated that the Community
had not changed its views regarding the compatibility of the Convention of Lomé with the GATT
provisions. It had been at the encouragement of a number of contracting parties that this waiver had
been requested. He hoped that contracting parties would be able to reach a consensus on this matter
at the present meeting.
Mr. Gardner (United States) said that the United States along with many other contracting parties
had long believed that the Community should seek a waiver for the tariff preferences which it provided
to the ACP countries. Tariff preferences were an appropriate tool in fostering economic development.
However, the United States wished to make clear that the United States and other contracting parties
3 This text was a revision of the draft Decision circulated at the November 1994 Council meeting
in which the words "as foreseen under" have been replaced by "as required by". SR.50/1
Page 14
had problems with the Community's existing banana régime which had been ostensibly designed to
benefit ACP countries. Two panels4 had found that many of the provisions of the Community's banana
régime and its predecessor régimes were discriminatory and GATT-inconsistent. These discriminatory
provisions did not benefit ACP countries, but did adversely affect the economic and trade interests
of other contracting parties. Furthermore several provisions, rather than help ACP banana exports,
had been designed to protect the economic interests of certain Community companies at the expense
of non-Community firms. The Convention of Lomé did not require the Community to include these
objectionable features in its banana régime. The granting of the waiver would not relieve the Community
of its obligation to address the discriminatory provisions in its banana régime and the harm caused
by them to the legitimate trade and economic interests of other contracting parties. Failure to address
such problems would leave adversely affected contracting parties with no alternative but to take
appropriate actions to protect their legitimate interests.
Mr. Urruela Prado (Guatemala) said that at the request of his delegation, bilateral consultations
with the Community had been held on the text of the draft Decision concerning the request for a waiver.
At these consultations Guatemala had indicated that it did not oppose the Lomé Convention per se,
but that there were serious obstacles for Guatemala tojoin the consensus that had been emerging around
the draft Decision. On two occasions, Guatemala had utilized the dispute settlement mechanism in
order to promote its rights against the banana import régime as applied by the Community. The first
panel had analyzed the régimes of some member States of the Community and had concluded that they
were GATT-inconsistent. Despite these recommendations, the Commission had imposed on its member
States a common organization of the market in the banana sector. A second panel had condemned
this régime. Guatemala was aware of the fact that the Lomé Convention had a broader coverage.
However, the present import régime of the Community designed to benefit countries of the Lomé
Convention had seriously affected Guatemala's interest in this product. Guatemala did not want to
prejudice the ACP States but rather sought to find a fair solution for all. He urged other contracting
parties to show their openness to dialogue by taking into account interests of all parties in order to
find an overall solution. Guatemala would not oppose the consensus, but he made it clear that the
waiver would not liberate the Community from its obligation to bring its banana import régime into
conformity with GATT obligations. He added that the extension of the Lomé Convention which was
of the transitional nature would in no way prejudice Guatemala's rights under the General Agreement
nor in the WTO.
Mr. Pierce (Jamaica) said that this matter had been discussed at the November Council meeting
where Jamaica, speaking on behalf of the ACP countries, had indicated the importance which ACP
countries attached to the request for the waiver. The Community had already outlined the reasons
why this request had not been adopted at the November Council meeting. In November, a large number
of delegations had expressed their support for the waiver and amendments sought by one delegation
had been incorporated into the text of the draft Decision. The ACP member States hoped that this
request would be granted at the present meeting. In this context, he thanked Guatemala for deciding
not to oppose the consensus to grant the waiver.
Mr. Tironi (Chile) said that at the November Council meeting, Chile had indicated its concerns
with regard to this matter, but would support and vote in favour of the draft Decision for a waiver
to enable the Community to bring its trade preferences granted to the ACP countries under the Lomé
Convention into conformity with GATT. However, Chile wished to put on record that it did not consider
that the Lomé Convention was compatible with the obligations under Article XXIV of the General
Agreement as indicated by the Community in paragraph 5 of the draft Decision.
4DS32/R; DS38/R SR.50/1
Page 15
The CONTRACTING PARTIES took note of the statements, approved the draft Decision
in C/W/820/ Rev.2 and agreed that this draft Decision be submitted for adoption by a vote.
The Decision (L/7604) was adopted by 105 votes in favour, none against, and 1 abstention.
Mr. Kenyon (Australia) said that his country which had supported the request, was very pleased
that the CONTRACTING PARTIES had acted positively on the request for a waiver by the Community
and the ACP contracting parties to the GATT in relation to the Fourth Lomé Convention.
The CONTRACTING PARTIES took note of the statement.
Sub-point 21(h). German Unification - Transitional measures adopted by the European
Communities
- Report by the European Communities on the use of the waiver of
14 June 1993 (L/7572)
The CHAIRMAN drew attention to the report by the European Communities on the use of
the previous waiver granted on 14 June 1993 (L/7572).
The CONTRACTING PARTIES took note of the report.
- Request for a waiver under Article XXV:5 (C/W/821/Rev. 1 and Add. 1,
L/754 1)
The CHAIRMAN drew attention to the request by the European Communities in document
L/7541 for a waiver from the provisions of Article I: 1 in order to apply certain transitional measures
adopted in the context of German Unification which had been circulated for the Council meeting in
November and was referred for consideration to the CONTRACTING PARTIES' Session. He also
drew attention to the draft Decision in C/W/821/Rev. 1 in which, at the request of the Community,
the date of the waiver had been modified from 31 December 1994 to 31 December 1995.
Mr. Leng (European Communities) said that a waiver had been granted to the Community
since the date of German Unification until 1993 to enable it to apply transitional measures taken to
maintain trade flows between the former German Democratic Republic and its European partners of
the former CMEA. As indicated in the report, despite the minimum trade impact, these measures
had not been without importance, in particular for a number of small and medium-size enterprises.
The CONTRACTING PARTIES had before them a draft Decision which covered the period until the
end of 1995. He stressed that this was the final request for a waiver concerning this transitional régime.
Mr. Gardner (United States) said that the United States was prepared to agree to a waiver,
since the Community had given its commitment that this was the last time such a waiver would be
sought.
The CONTRACTING PARTIES took note of the statements, approved the text of the draft
Decision in C/W/821 as amended, and agreed that the draft Decision be submitted for adoption by
a vote.
The Decision (L/7605) was adopted by 105 votes in favour, none against and 1 abstention. SR.50/1
Page 16
Mr. Kenyon (Australia) said that his country was very pleased that the CONTRACTING
PARTIES had acted positively on the request for a waiver by the Community to apply certain transitional
measures adopted in the context of German Unification which had been supported by Australia.
The CONTRACTING PARTIES took note of the statement.
The meeting adjourned at 6 p.m. |
GATT Library | jc357ck5253 | Summary Record of the Fourth Meeting : Held at Centre William Rappard, Geneva on Wednesday, 1 February 1995, at 3 p.m | General Agreement on Tariffs and Trade, February 8, 1995 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 08/02/1995 | official documents | SR.50/4 and 0240-0283 | https://exhibits.stanford.edu/gatt/catalog/jc357ck5253 | jc357ck5253_90080713.xml | GATT_1 | 145 | 1,016 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
SR.50/4
8 February 1995
Limited Distribution
(95-0247)
CONTRACTING PARTIES
Fiftieth Session
1 February 1995
SUMMARY RECORD OF THE FOURTH MEETING
Held at Centre William Rappard, Geneva
on Wednesday, 1 February 1995, at 3 p.m.
Chairman: Mr. A. Szepesi (Hungary)
Subjects discussed:
- Election of Officers
- Closure of the Session
The Fiftieth Session of the CONTRACTING PARTIES resumed on Wednesday, 1 February
1995.
Election of Officers
The following nominations were made:
Chairman of the CONTRACTING PARTIES:
Vice-Chairmen of the CONTRACTING PARTIES:
Mr. M. Zahran
(Egypt)
Mr. T. Johannessen
(Norway)
Mr. P. Palecka
(Czech Republic)
Mr. R. Pierce
(Jamaica)
Chairman of the Council of Representatives:
Chairman of the Committee on Trade and Development:
Mr. W. Armstrong
(New Zealand)
Mr. S. Haron
(Malaysia)
The CONTRACTING PARTIES elected the Officers nominated.
Closure of the Session
The Session closed at 4 p.m. |
GATT Library | qp786bf1235 | Summary record of the Meeting of the Executive Committee : Held at the International Conference Centre, Geneva, on 8 December 1994 at 2.45 p.m | Interim Commission for the International Trade Organization, January 11, 1995 | Interim Commission for the International Trade Organization (ICITO/GATT) | 11/01/1995 | official documents | ICITO/1/39 and 0009-0040 | https://exhibits.stanford.edu/gatt/catalog/qp786bf1235 | qp786bf1235_90080435.xml | GATT_1 | 593 | 3,856 | INTERIM COMMISSION FOR THE
INTERNATIONAL TRADE ORGANIZATION
ICITO/1/39
11 January 1995
Limited Distribution
(95-0022)
SUMMARY RECORD OF THE MEETING OF THE EXECUTIVE COMMITTEE
Held at the International Conference Centre, Geneva,
on 8 December 1994 at 2.45 p.m.
Chairman : H.E. Mr. M. Zahran (Egypt)
Representatives present:
Australia
Benelux
Canada
China
Colombia
Egypt
France
Greece
Italy
Mexico
Norway
Philippines
United Kingdom
United States
Subiect discussed:
Mr. Buckley
Ms. Plate (Netherlands)
Mr. Gosselin
Mr. Tang Yufeng
Mr. Wang Yi
Mr. Londoño
Mr. Jaramillo
Mr. Zahran
Mr. Metzger
Ms. Lykou
Mr. Meloni
Mr. de la Peña
Mr. Johannessen
Mr. Borillo
Mrs. Stoddart
Mr. Stoler
Status of the Interim Commission after the entry into force of the Marrakesh
Agreement Establishing the World Trade Organization
The Executive-Secretary, in opening the meeting, noted that this meeting would be the final
one of the Executive Committee of the Interim Commission.
Mr. Zahran (Egypt) was elected Chairman of the meeting.
The Chairman recalled that invitations to the meeting had been sent to the seventeen members
of the Executive Committee on 5 December 1994.
He further recalled that ICITO was created in 1948 by a Resolution adopted at the United Nations
Conference on Trade and Employment in Havana, to carry out specific functions pending the
establishment of the International Trade Organization. At the first meeting, on 20 March 1948, the ICITO/1/39
Page 2
Commission had elected its Executive Secretary. The Commission had also elected its Executive
Committee of eighteen members and delegated all its powers to it.
The Executive Committee of ICITO had met in September 1948 ( during the second session
of the CONTRACTING PARTIES to the GATT) and approved financial arrangements which conferred
authority on the Executive Secretary of ICITO to provide secretariat services to the CONTRACTING
PARTIES. This arrangement between ICITO and the CONTRACTING PARTIES continued to this
day.
Since 1950, the Executive Committee of ICITO had only met three times, for the purpose of
appointing as Executive Secretary the Directors-General designate of GATT.
The purpose of this meeting was to consider the status of the Interim Commission after the
entry into force of the Marrakesh Agreement Establishing the World Trade Organization.
The Preparatory Committee had adopted the text of an Agreement on the Transfer of Assets,
Liabilities, Records, Staff and Functions from the interim Commission of the International Trade
Organization and the GATT to the World Trade Organization. The text of this Agreement had also
been adopted by the CONTRACTING PARTIES to GATT 1947, and should further be adopted by
the Interim Commission. After having been adopted by the three bodies, the Agreement would be
signed by the Executive Secretary of ICITO and the Chairmen of the CONTRACTING PARTIES and
the Preparatory Committee.
The Agreement stipulated that all assets and liabilities of the GATT 1947 and the ICITO should
be assets and liabilities of the WTO. It further stipulated that the staff of the ICITO should perform
the duties of the secretariat of the WTO until the appointment of WTO's own staff. The staff of the
ICITO should continue to perform the duties of the GATT 1947 Secretariat, including those of the
bodies established under the Tokyo Round Agreements, until the appointment of the staff of the
Secretariat of the WTO.
The Agreement further stipulated that the ICITO should be dissolved as of the date on which
the members of the Secretariat of the WTO were appointed.
The Chairman proposed that the Executive Committee should authorize its Executive Secretary
to accept the Agreement on behalf of ICITO.
The Executive Committee so agreed.
The meeting closed at 3.15 p.m. |
GATT Library | vr856zs6835 | Summary Record of the Second Meeting : Held at the International Conference Centre, Geneva, on Friday, 9 December 1994, at 10.30 a.m | General Agreement on Tariffs and Trade, February 8, 1995 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 08/02/1995 | official documents | SR.50/2 and 0240-0283 | https://exhibits.stanford.edu/gatt/catalog/vr856zs6835 | vr856zs6835_90080711.xml | GATT_1 | 2,352 | 15,661 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
SR.50/2
8 February 1995
Limited Distribution
(95-0245)
CONTRACTING PARTIES
Fiftieth Session
SUMMARY RECORD OF THE SECOND MEETING
Held at the International Conference Centre, Geneva,
on Friday, 9 December 1994, at 10.30 a.m.
Chairman: Mr. A. Szepesi (Hungary)
Page
Subjects discussed:
- Report of the Council (continued)
- Activities of GATT (continued)
2
5 SR.50/2
Page 2
Report of the Council (continued)
Point 31. Administrative and financial matters
Sub-point 31(a)(ii). Committee on Budget, Finance and Administration
- Reports
The CHAIRMAN drew attention to documents PC/W/8 - W.50/1 1 and Corr. 1 and 2, PC/W/ 13 -
W.50/20, and PC/W/14 - W.50/21/Rev. 1.
Mr. Gosselin (Canada), Chairman of the Budget Committee, proposed that the CONTRACTING
PARTIES approve the Committee's resolution in paragraph 15 on the revised expenditure in 1995 of
the CONTRACTING PARTIES of the GATT and the Members of the World Trade Organization (WTO)
and the ways and means to meet such expenditure together with the specific recommendations in
paragraphs 21 and 22 of its report (PC/W/8 - W.50/11) and adopt the Committee's report in PC/W/8 -
W.50/11 and Corr. 1 and 2 including the recommendations contained therein. He also proposed that
the CONTRACTING PARTIES approve the administrative measures applicable to contracting parties
which since 1989 had accumulated more than three years arrears in the payment of their contributions
as set in sub-paragraphs 7(a), (b), (d) and (e) of document PC/W/13 - W.50/20. The financial and
accounting implications mentioned in sub-paragraphs (c) and (f) would require further consultation
and should be considered in 1995 by the WTO's relevant bodies. He then proposed that the
CONTRACTING PARTIES approve that Botswana's accumulated contributions to the GATT budget
for the period 1987 to 1992 inclusive amounting to Sw F. 286,279 be cancelled once Botswana had
paid its contributions for 1993 and 1994 (as well as its advance to the Working Capital Fund), amounting
to a total of Sw F. 115,660. He also proposed that the CONTRACTING PARTIES approve the
recommendation in paragraph 4 of document PC/W/14 - W.50/21/Rev.1 on financial obligations of
states or separate customs territories that were observers to the WTO, with the understanding that these
financial obligations would not apply to states or separate customs territories that were GATT 1947
contracting parties in the process of ratification of the WTO Agreement, but which had not yet become
Members. Finally, he proposed that the CONTRACTING PARTIES approve the audited accounts
for 1993 as contained in document L/7559 and convey their thanks to the external auditors for the
valuable assistance given to the CONTRACTING PARTIES in the audit of these accounts.
The CONTRACTING PARTIES so agreed.
Point 34. Issuance and derestriction of GATT documents
The CHAIRMAN recalled that at the Forty-Ninth Session in January 1994, he, as Chairman
of the CONTRACTING PARTIES had been invited to pursue informal consultations with interested
delegations with a view to revising current GATT procedures for issuance and derestriction of documents
in order to provide greater transparency in the process. In pursuance of a process begun in 1993 as
a result of a proposal by the United States, he had met with delegations on several occasions over the
past few months. Despite significant progress, delegations were unable to reach consensus on revised
procedures before the last meeting of the Council on 10 November 1994, because some delegations
were interested primarily in the treatment of documents to be issued in the future under the auspices
of the WTO, while other delegations thought that any modification of current procedures should not
apply to past GATT documents, since they had been issued on the basis of certain expectations with
respect to confidentiality. It had therefore become increasingly less clear to a number of delegations
whether the GATT Council represented the appropriate forum for consultations on this important issue.
Accordingly, they had proposed that informal consultations be held in the near future to establish SR.50/2
Page 3
procedures for issuance and derestriction of WTO documents. In the light of such consultations,
procedures for issuance and derestriction of GATT 1947 documentation could then be reviewed.
Mr. Haran (Israel) believed that there was a strong possibility that the number of documents
issued under the WTO would increase, given the large number of committees and agreements that would
have to be serviced. He proposed that in future consultations that would be held regarding the
derestriction of WTO documents, some consideration be given to the idea that documents of different
bodies and committees be issued in different colours, a practice found in other organizations. This
would enable Members to separate documents according to subject matter and quickly identify those
of particular interest to them.
The CONTRACTING PARTIES took note of the statements.
Additional items raised by delegations in the context of the consideration of the Report of the Council
Point 15. Canada - Article XIX action on boneless beef
Mr. Kenyon (Australia), referring to the Article XIX action by Canada on imports of boneless
beef, reiterated the consistent Australian position that these restrictions could never be justified under
Article XIX. He understood that Canada would not renew its present action beyond the current year.
Should this not happen, Australia would seek to preserve its Article XIX rights on this issue.
Mr. Gosselin (Canada), reiterated that the Canadian action had been taken in a GATT-consistent
way, following an enquiry by the Canadian International Trade Tribunal (CITT) on the impact of a
surge in boneless beef imports on Canada's beef industry. That enquiry had found that the surge
threatened serious injury to Canadian slaughterers, boners and cattle producers. Sensitive to trade
needs. Canada had increased the tariff quotas on two occasions, in response to specific situations.
As part of its Uruguay Round commitments, Canada had announced on 3 November that its MTN
rTgime for beef and veal would come into effect on 1 January 1995 and would be administered in a
manner fully consistent with Canada's international obligations. Canada did not intend to renew its
current safeguard régime for 1995.
The CONTRACTING PARTIES took note of the statements.
Point 19. Monitoring of implementation of panel reports under paragraph 1.3 of the April 1989
Decision on improvements to the GATT dispute settlement rules and procedures
(BISD36S/61)
Mr.Kenyon (Australia), expressed the hope for concerted efforts in 1995 in the United States
aimed at the full implementation of the Panel report on United States measures on alcoholic and malt
beverages (DS23/R).
Mr. Gosselin (Canada), said that although the efforts of the United States Administration over
the more than two-year period since the adoption of the Panel report on United States' measures on
alcoholic and malt beverages were appreciated, Canada was nevertheless disappointed with the minimal
level of progress reported on bringing U.S. Federal and State measures into conformity with GATT
obligations. Except for two tax measures in Mississippi and Michigan, no progress had been achieved
on the sixty-two Federal and State measures. He therefore urged the United States to renew its efforts,
and even renew its strategy, to implement the report. SR.50/2
Page 4
Mr. Lampreia (Brazil), referred to the Panel report on the US denial of m.f.n. treatment to
iimports of non-rubber footwear from Brazil (DS18/R). He said that during the three years since the
report had been issued and circulated, Brazil had constantly raised the issue in the Council. It therefore
gave him great pleasure to inform the CONTRACTING PARTIES that a satisfactory solution had been
found.
Mr. Gardner (United States), confirmed the Brazilian statement. As indicated earlier in the
GATT Council, the Uruguay Round implementing legislation passed by Congress and signed by President
Clinton the previous day, contained a section authorising the United States Government to address
all outstanding issues in the GATT dispute with Brazil concerning non-rubber footwear. He understood
that the legislation implementing the Panel report constituted a mutually satisfactory adjustment of the
subject in accordance with Article XXIII of the General Agreement.
Mr. Manhusen (Sweden), welcomed the satisfactory transitional arrangements regarding GATT
1947 and WTO that had been reached which ensured that ongoing disputes would not disappear into
the "infamous black hole". Sweden had fought hard for the implementation of adopted panel reports
and for the adoption of presented panel reports, since Swedish exporters had suffered from anti-dumping
measures and continued to suffer from economic losses due to measures wrongly and negatively affecting
them.
The CONTRACTING PARTIES took note of the statements.
United States - Export Enhancement Programme
The CHAIRMAN had noted earlier that this matter had not come up before the Council during
1994. but had been placed on the Agenda of the present meeting at the request of Canada.
Mr. Gosselin (Canada), said that significant progress had been made in the Uruguay Round
on agricultural export subsidies. For the first time such subsidies had been clearly defined and
contracting parties had undertaken to reduce both the volume of, and expenditures on, products benefiting
from export subsidies. However, the Round did not prohibit export subsidies on agricultural products,
nor prevent the targeting of specific markets. Canada continued to pursue its position in various fora
towards international disciplines prohibiting the use of agricultural export subsidies and looked forward
to the support of all contracting parties towards this end. The current concern of Canada was the recent
announcement by the United States of the 1994/95 Export Enhancement Programme Initiative (EEP)
for subsidized sales of 2.6 million tonnes of feed barley and malting barley to thirteen countries or
regions. Canada which had repeatedly expressed its concern of the United States' use of EEP for
subsidized sales of grain, believed that the recent announcement which targeted a number of important
Canadian markets would depress international grain prices to the detriment of producers in both importing
and other exporting countries. Of particular concern was the targeting of Korea for feed barley for
50,000 tonnes. After years of Canadian effort, Korea had agreed, as a first step, to allow importation
of 100,000 tonnes of feed barley in 1994. Canada appreciated this decision by Korea and looked forward
to increased access in the near future. However, the EEP allocation of 50,000 tonnes of feed barley
to Korea by the United States had effectively halved the access opportunities for commercial sales.
The standard rationalization given by the United States for its targeting of specific markets had been
its retaliation to the use of export subsidies by other major exporting countries. In this case however,
the Korean market had been, until recently, closed. Such trade-disruptive action taken by the United
States before commercial market factors had come to bear, were therefore unacceptable. SR.50/2
Page 5
Mr. Kenyon (Australia), said that Australia had consistently sought the reduction and elimination
of export subsidies in agriculture. The agreement to reduce the impact of export subsidies on world
agricultural markets in the Uruguay Round was an important first step. The extension of subsidized
exports to new markets or targeting particular markets was neither consistent with that objective, nor
in the spirit of the Agreement and supported Canada's position on this question. The latest United
States decision to extend EEP for feed barley sales to Korea would adversely impact Australian exports.
The Korean market was central to Australia's present and future marketing plans. Korea, an established
market for Australian malting barley, had only recently opened its market for feed barley. This market
provided good present and future prospects for Australian feed barley sales. He expressed disappointment
that the EEP had been extended to grain barley sales in Korea before the United States had established
that its exporters could not compete on normal commercial terms.
Mr. Sanchez Arnau (Argentina), said that his country's position was no different from those
of other efficient exporters, who have seen their export possibilities adversely affected by competition
from subsidized exports. He agreed with the statement made by Canada on this subject. He expressed
concern over the extension of the EEP to other markets where it was not necessary to subsidize and
create situations of unfair competition in order to have access.
The CONTRACTING PARTIES took note of the statements and adopted the Council's report
(L/7571 and Add.1 /Rev.1).
Activities of GATT (continued)
The following general statements were made:
Mr. D. Kenyon
Ambassador, Permanent Representative
of Australia
Mr. M.S. Onaner
Deputy, Permanent Representative
of Turkey
Mr. S. Ho
Ambassador, Permanent Representative
of the Republic of Korea
SR. 50/ST/5
SR.50/ST/6
SR. 50/ST/7
SR. 50/ST/8
Mr. M.J. Berthet
Ambassador, Permanent Representative
of Uruguay
SR.50/ST/9
Mr. J.F. Misle
Minister Counsellor, Permanent Mission
of Venezuela
Mrs. N. Raharimalala
Counsellor, Permanent Mission
of Madagascar
SR.50/ST/ 10 SR.50/2 Mr. S. Harbinson
Page 6 Economic and Trade Office, Permanent Representative
of Hong Kong
SR. 50/ST/ 11
SR.50/ST/ 12
Mr. A. Lecheheb
Deputy Permanent Representative
of Morocco
Mr. T. Johannessen (on behalf of the Nordic countries)
Ambassador, Permanent Representative
of Norway
SR.50/ST/ 13
SR.50/ST/14
Mr. R. Gauto
Counsellor, Chargé d'affaires a.i.
of Paraguay
Mr. M. Baati
Counsellor, Chargé d'affaire a.i., Permanent Mission
of Tunisia
Mr. G. Waas
Director-General, Federal Ministry for Economic
Affairs of Austria
Mr. K. Ntambi
Ambassador, Permanent Representative
of Uganda
SR.50/ST/ 15
SR.50/ST/ 16
SR.50/ST/17
Mr. N. Osorio Londoño SR.50/ST/ 18
Ambassador, Permanent Representative
of Colombia
Mr. Long Yongtu
Assistant Minister, Foreign Trade and Economic
Cooperation, China (speaking as an Observer)
SR.50/ST/ 19
Action on reports submitted to the CONTRACTING PARTIES
Referring to the report of the Committee on Trade and Development, Mr. Lampreia (Brazil),
speaking on behalf of the MERCOSUR countries -- Argentina, Brazil, Paraguay and Uruguay --
announced that as a follow-up to the notification of the Treaty of Asuncion under the provisions of
the Enabling Clause, the common external tariff provided for in that Treaty was expected to be
implemented as of 1 January 1995. Further information and details on the common external tariff
would be provided to the Director-General in due course.
The CONTRACTING PARTIES took note of this information.
SR. 50/2
Page 6 SR.50/2
Page 7
The CONTRACTING PARTIES then adopted the report of the Committee on Trade and
Development (L/7567) and took note of the reports of the MTN Committees and Councils (L/7557,
L/7558, L/7556, L/7562, L/7561, L/7564, L/7553, L/7554 and L/7565).
The meeting adjourned at 1 p.m. |
GATT Library | cp122km9383 | Summary Record of the Third Meeting : Held at the International Conference Centre, Geneva, on Friday 9 December 1994, at 3.50 p.m | General Agreement on Tariffs and Trade, February 8, 1995 | General Agreement on Tariffs and Trade (Organization) and Contracting Parties | 08/02/1995 | official documents | SR.50/3 and 0240-0283 | https://exhibits.stanford.edu/gatt/catalog/cp122km9383 | cp122km9383_90080712.xml | GATT_1 | 889 | 5,794 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
SR.50/3
8 February 1995
Lirnited Distribution
(95-0246)
CONTRACTING PARTIES
Fiftieth Session
SUMMARY RECORD OF THE THIRD MEETING
Held at the International Conference Centre, Geneva,
on Friday 9 December 1994, at 3.50 p.m.
Chairman: Mr. A. Szepesi (Hungary)
Page
Subjects discussed:
- Dates of the Fifty-First Session
- Election of Officers
- Summing-up by the Chairman
2
2
2 SR.50/3
Page 2
Dates of Fifty-First Session
The CONTRACTING PARTIES agreed that given the very exceptional circumstances
iin the coming year with the entry into force of the WTO and the co-existence between the WTO and
the GATT 1947, the dates of the next Session not be set at the present meeting and authorized the
CONTRACTING PARTIES' Chairman to establish these dates in consultation with delegations and
the Secretariat.
Election of Officers
The CONTRACTING PARTIES agreed that again due to the exceptional circumstances pertaining
to the entry into force of the WTO and its co-existence with GATT 1947 as of January 1995, the Election
of Officers be postponed until after the first meeting of the General Council of the WTO, at which
time the CONTRACTING PARTIES would be called to elect the Officers for GATT 1947. This would
allow the Election of Officers to both WTO and GATT 1947 to be carried out in a coordinated fashion.
During the intervening period the present Officers under GATT would be requested to retain their
respective posts.
The CONTRACTING PARTIES agreed that the Fiftieth Session of the CONTRACTING
PARTIES be adjourned and reconvened at the appropriate moment early next year in order to proceed
with the Election of Officers as required.
Summing-up by the Chairman
The Chairman then summed-up the discussion at the Fiftieth Session. He said that the
Implementation Conference, which preceded the Fiftieth Session had confirmed the date of 1 January
1995 for the entry into force of the WTO. In the course of this Session, many representatives had
reported further progress towards that end by announcing the deposit with the Secretariat of their
instruments of ratification or the completion of the domestic ratification process. He congratulated
the governments involved for their efforts in this regard, and looked forward to further good news,
as indicated by other representatives.
Referring to several of the other principal themes raised in the course of this Session, he said
that the GATT CONTRACTING PARTIES, future WTO Members, had shared their appreciation of
the enormous achievement which the WTO represented in reaffirming the rule of law in trade and
economic relations, reversing the long-standing protectionist practices in agriculture and in textiles
and clothing, and extending the scope of multilateral rules to services and intellectual property rights.
In putting the new world trading system into place, several speakers had emphasized the need
to ensure that the balance in the agreements covering different areas was fully maintained in the
implementation phase. Many speakers had also emphasized the importance of ensuring a harmonious
transition from the GATT 1947 to the WTO, and had welcomed in this regard, the decisions adopted
the previous day by the Preparatory Committee of the WTO and by the Sixth Special Session of the
CONTRACTING PARTIES, and in particular the decision on GATT dispute settlement.
There had been an appreciation of the rôle of the WTO Agreement in consolidating and extending
the trade and economic reforms undertaken in recent years by developing and transition economies.
These domestic reform efforts had contributed to a greater integration of many countries into the world
economy, a process which would be further supported by new market access opportunities. Of concern SR.50/3
Page 3
was the fact that the benefits of the trading system had continued to largely elude African countries,
and more particularly least-developed countries. Many delegations had stressed that strengthened
technical assistance, and fullest implementation of provisions for different and more favourable treatment,
would be useful in this regard.
Regarding the monitoring function of the WTO, many speakers had voiced their support for
the TPRM, while emphasizing the need to re-examine certain aspects of its operation to enhance its
usefulness to WTO Members. Several speakers had also noted the importance they attached to the
examination and review of regional agreements, to ensure that regional agreements complemented the
new multilateral framework.
In looking to the future, the importance of globalizing the benefits of the new system through
the accession of all countries wishing to undertake the rights and obligations which derive from it,
had been strongly emphasized. Many speakers had also confirmed their commitment to the work on
trade and environment. Other speakers had noted their willingness to begin consideration of the steps
that may usefully be taken to accelerate the process of liberalization, or in extending the coverage of
the system to new issues.
In summary, the discussions at the Fiftieth Session had confirmed the historic importance of
the establishment of the WTO, while pointing to the challenges that lay ahead to ensure that the WTO
became the framework for a truly global trading system, whose benefits would be shared by all countries.
Before adjourning the Session the Chairman recalled that Mr. +ke Linden, Special Adviser
to the Director-General, Assistant Director-General and Mr. Keith Broadbridge, Assistant Director-
General would leave the GATT at the end of this year and paid tribute to them for their services.
The Session adjourned at 4.30 p.m. |
GATT Library | xt722gy3007 | Trade Policy Review Mechanism. Cameroon. : Report by the Government | General Agreement on Tariffs and Trade, February 2, 1995 | General Agreement on Tariffs and Trade (Organization) | 02/02/1995 | official documents | C/RM/G/56 and 0172-0197 | https://exhibits.stanford.edu/gatt/catalog/xt722gy3007 | xt722gy3007_90080651.xml | GATT_1 | 14,256 | 109,476 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
C/RM/G/56
2 February 1995
Limited Distribution
(95-0197)
Original: French TRADE POLICY REVIEW MECHANISM CAMEROON Report by the government
In pursuance of the CONTRACTING PARTIES' Decision of 12 April 1989 concerning the
Trade Policies Review Mechanism (BISD 36/403), the initial full report by Cameroon for the review
by the Council is attached.
NOTE TO ALL DELEGATIONS
Until further notice, this document is subject to a press embargo. Cameroon
TABLE OF CONTENTS
TRADE POLICIES AND PRACTICES
OBJECTIVES OF TRADE AND SECTORAL POLICIES FOR
GOODS AND SERVICES
1.1 Trade in goods and services
1.2 Industry
1.3 Agriculture
II. TRADE POLICY FRAMEWORK
2.1 National laws and regulations governing trade policy
2.2 Bilateral, regional and multilateral trade agreements
2.2.1 Bilateral trade agreements
2.2.2 Regional trade agreements
2.2.3 Multilateral trade agreements and conventions
2.2.3.1 United Nations Conventions on International
Trade Law
2.2.3.2 General Agreement on Tariffs and Trade
(GATT)
2.2.3.3 International Agreements on goods
2.3 Process of formulation of the trade policy
III. IMPLEMENTATION OF TRADE POLICY
3.1 Trade policy measures
3.1.1 In the export sector
3.1.2 Imports
3.1.3 Development of domestic trade
3.2 Investment policies
C/RM/G/56
Page i
Page
1
1
1
2
2
3
3
3
3
3
4
4
4
4
5
6
6
6
6
7
7 C/RM/G/ 56 Trade Policy Review Mechanism
Page ii
Page
3.3 Customs measures 9
3.4 Bodies responsible for the administration of trade policies 11
3.5 New developments arising during the period under
consideration concerning agreements 11
3.5.1 Bilateral agreements 11
3.5.2 Regional agreements 11
3.5.3 Multilateral agreements 11
3.6 Current trade liberalization programmes including those
agreed in the context of structural adjustment and/or debt
negotiations 12
3.7 Planned changes to trade policies and practices, in so far
as such changes have already been announced or may be disclosed 12
3.8 Detailed analysis of trade policies and practices 12
3.8.1 Trade 12
3.8.1.1 Exports 12
3.8.1.2 Re-exports and counter trade 14
3.8.1.3 Imports 15
3.8.2 Central Africa Customs and Economic Union (CACEU)
and Economic Community of Central African States (ECCAS) 16
3.8.3 Bank of Central African States (BEAC) 16
3.8.3.1 Structure and functioning of the BEAC 16
3.8.3.2 Role of the Board of Directors of the BEAC 17
3.8.3.3 The role and composition of the Cameroon 17
Monetary Committee
3.8.4 Government Procurement 18
3.8.4.1 Other competent administrations and agencies 18
3.8.4.2 The main texts on government procurement 18 C/RM/G/56
Page iii
Page
3.8.4.3
3.8.4.4
3.8.4.5
3.8.4.6
3.8.5 Restructuring
Cameroon's regulations concerning government
procurement compared with the World Bank
guidelines
Participation of foreign suppliers in the
bidding process
Preferential treatment enjoyed by national
enterprises (including preference margins)
Changes introduced in government procurement
policy and practice of since 1985
and privatization of enterprises
IV. BACKGROUND AGAINST WHICH THE ASSESSMENT OF
CAMEROON'S TRADE POLICIES WILL BE CARRIED OUT
4.1 Cameroon's general economic and development objectives
4.2 The external economic environment
4.2.1 Major trends in imports and exports
4.2.2 Developments in the terms of trade and prices of products
4.2.3 Major trends in the balance of payments, debt reserves,
exchange and interest rates, and similar issues
4.2.3.1 Major trends in the balance of payments
4.2.3.2 Reserves
4.2.3.3 Exchange and interest rates
4.2.3.4 Trends in external debt
4.2.4 International macro-economic situation affecting the external
sector
4.2.4.1 Devaluation of the CFA franc
4.2.4.2 Fiscal and customs reform
4.3 Problems faced on the external market
ANNEXES
Cameroon
19
19
19
20
21
22
23
23
23
23
24
24
24
24
25
25
25
26
26
27 GLOSSARY
ECCAS
CACEU
ECA
ACP
CFA Franc
FF
f.o.b.
c.i.f
GDP
GNP
SNEC
SONEL
SNH
SNI
ALUCAM
SODECOTON
SCM
OCB
SOCAMAC
SEPBC
COCAM
SCDM
Economic Community of Central African States
Central Africa Customs and Economic Union
Economic Community for Africa
Africa, Caribbean, Pacific
Franc of the French African Community
French franc
Free on board
Cost, insurance, freight
Gross Domestic Product
Gross National Product
Société nationale des eaux du Cameroun (Cameroon National Water Company)
Société nationale d'électricité du Cameroun (Cameroon National Electricity
Company)
Société naionale des hydrocarbures (National Petroleum Company)
Société nationale d'investissements (National Investment Company)
Aluminium du Cameroun (Cameroon Aluminium)
Société de développement du coton (Cotton Development Company)
Société camerounaise de minoterie (Cameroon Flour-milling Company)
Office camerounais de bananes (Cameroon Banana Board)
Société camerounaise de manutention (Cameroun Handling Company)
Société d'exploitation de parcs à bois du Cameroun (Cameroon Timber Company)
Contreplaqués du Cameroun (Cameroon Laminates)
Société camerounaise de métallurgie (Cameroon Metal Company) Cameroon C/RM/G/56
Page 1
TRADE POLICIES AND PRACTICES
After 1960, the date of independence, Cameroon regularly enjoyed sustained economic growth,
reaching a record level of 6.5 per cent in 1986 due to the good performance of the prices of primary
commodities on the world market, as agriculture accounts for a large proportion of its economic activity.
The collapse of world prices in 1987 together with the fall of the American dollar greatly affected
the economies of developing countries generally, and of Cameroon in particular, and led to mounting
budget deficits.
The chronic budget deficits and liquidity problems gave rise to the establishment of a stabilization
plan for public finances and the negotiation with the Bretton Woods Institution of a first Structural
Adjustment Programme (SAP) in 1988.
This programme aimed to re-establish macro-economic balances on a durable basis and to allow
sustained economic growth. The main goal was to ensure a gradual revival of production in the non-oil
sector and to give a boost to employment.
With this in view, an institutional and regularity framework was established to enhance
private-sector activity through:
- the liberalization of trade and prices;
- improved economic competitiveness;
- the rehabilitation of State companies and the re-organization of the banking sector;
- the gradual withdrawal of the State from the production sector.
The aim is to restructure the existing industrial fabric and to create a competitive and stimulating
environment to encourage private investment as well as exports.
Thus, while indicating the main guidelines followed by trade policy, we will deal in more detail
with the legal framework, the context and the results of the trade policy as implemented, since 1989.
1. OBJECTIVES OF TRADE AND SECTORAL POLICIES
FOR GOODS AND SERVICES
1.1 TRADE IN GOODS AND SERVICES
Trade policy objectives are as follows:
- Establishment of healthy competition between imported and locally manufactured
products, hence improving the competitiveness of the latter by eliminating quantitative
restrictions on imports;
- encouragement of free enterprise by relaxing, if not removing, certain administrative
procedures (elimination of export approval for practically all products, removal of the
authorization for the distribution of locally manufactured products, for example); C/RM/G/56 Trade Policy Review Mechanism
Page 2
- promotion and diversification of exports, one of the principal levers for relaunching
the economy, especially following the currency adjustment on 12 January 1994; this
was the purpose of the creation of a free zone system, the revision of the Investment
Code, and the immediate implementation of the customs and tax reform adopted in
the CACEU. It should be recalled that the export duties were a special and short-term
measure adopted following devaluation to allow the State to benefit from the immediate
consequences of the currency adjustment.
Two sectors have a real impact on trade in goods and services: industry and agriculture.
1.2 Industry
In this sector, Cameroon has opted for a withdrawal of the State from production sectors,
and the promotion of small-and medium-sized industrial units.
This option is confirmed by the current process of the privatization of the companies included
in the portfolio of the Société Nationale d'Investissements (SNI) (National Investment Company) portfolio,
and by the establishment of the above-mentioned framework to encourage exports. Certain sectors,
due to their strategic importance, are for the moment spared. These are hydrocarbons, energy, water
and telecommunications, in which the State still pursues its role of providing a public service. However,
in these sectors, enterprises are required to adopt a sound management system and operate within the
framework of performance contracts.
1.3 Agriculture
The new agricultural policy aims to ensure self-sufficiency in food crops, to increase the
production of cash crops and to improve their quality.
To achieve these objectives, and above all to take advantage of the favourable exchange rate,
several measures have been taken, namely:
- Encouragement of the creation of groupings of cocoa and coffee planters;
- liberalization of trade in primary commodities (cocoa, coffee), with the elimination
of the system of government-fixed agricultural prices, the stabilization mechanism,
and the determination of purchasing zones;
- reinforcement of technical support for producers;
- establishment of an efficient information and training system for operators in these
sectors concerning world commodity price trends;
- reinforcement of quality control of exported products to avoid any reduction in their
price on international markets. Cameroon C/RM/G/56
Page 3
Il. TRADE POLICY FRAMEWORK
2. 1 National laws and regulations governing trade policy
The major foreign-trade-related instruments are the following:
- Law No. 89/011 of 28 July 1989 on the establishment of a market economy;
- Law No. 90/031 of 10 August 1990 governing trade activity;
- Decree No. 93/720/PM of 22 November 1993 implementing Law No. 90/031 of
10 August 1990;
- Order No. 08/MINDIC/DPPM of 7 March 1991 defining anti-competitive trade practices;
- Order No. 09/MINDIC/DPPM of 7 March 1991 governing thepublishing of consumer
prices.
These texts reflect the liberal trade policy adopted by the Government.
2.2 Bilateral. regional and multilateral trade agreements
2.2.1 Bilateral trade agreements
In order to improve bilateral trade-flows with its partners, Cameroon has concluded trade
agreements with more than fifty countries (see annexed list, see pages 29 and 30. These Agreements
are updated over time in line with economic developments. They generally concern:
- The method cf payment of transactions;
- the treatment of goods;
- dispute settlement.
Their lifetime may or may not be limited.
Just one of these Agreements includes a preferential clause: the Agreement signed with Senegal
on 10 January 1974 in the framework of the African and Malagasy Organization for Economic
Cooperation (Organisation Africaine et Malgache de Coopération Economique - OAMCE). In Article 1
it provides for exemption from customs duties and other taxes having an equivalent effect for all goods
originating in or coming from the two countries.
2.2.2 Regional trade agreements
The Cameroon is a signatory of the Ireaty of the ECCAS, of the CACEU and of the AEC.
It is also a signatory of the Agreement on the Global System of Trade Preferences among Developing
Countries (GSTP).
Cameroon is also a member of the ACP/EEC Lomé Convention which is a contractual
Agreement. C/RM/G/56 Trade Policy Review Mechanism
Page 4
2.2.3 Multilateral trade agreements and conventions
2.2.3.1 United Nations Conventions on International Trade Law
These are Conventions prepared by the United Nations Commission on International Trade
Law (UNCITRAL) notably:
- The United Nations Convention on the Carriage of Goods by Sea, 1978 (Hambulg
Rules);
- the United Nations Convention on Contracts for the International Sale of Goods (Vienna
1980);
- the Convention on the Limitation Period in the International Sale of Goods, modified
by the protocol adopted in Vienna in 1980;
- United Nations Convention on International Bills of Exchange and International
Promissory Notes (New York 1988);
Cameroon has already become a party to the first Convention, and its adhesion to the other
instruments is currently envisaged.
These conventions aim to harmonize and uniformize international trade law.
2.2.3.2 General Agreement on Tariffs and Trade (GATT)
Cameroon acceded to GATT on independence and accepted for itself all the concessions granted
by France. On 15 April 1994, in Marrakesh (Morocco), the Cameroon representative signed the
Agreement Establishing the World Trade Organization (WTO), which is in the process of ratification.
2.2.3.3 international agreements on goods
Cameroon is party to several Agreements on goods established within the framework of the
UNCTAD, with a view to promoting trade in primary commodities, namely:
- Agreement Establishing the Common Fund for Commodities (1980);
- International Tropical Timber Agreement (1983);
- International Natural Rubber Agreement (1987);
- International Cocoa Agreement (1994);
- International Coffee Agreement (1994).
Cameroon is following with great interest the negotiations on the Agreement on the Commodity
Diversification Fund. Cameroon C/RM/G/56
Page 5
2.3 Process of formulation of trade policy
Although trade policy is co-ordinated by the Ministry of Industrial and Commerce Development,
its preparation involves not only ministries concerned with the economy but also business circles through
their groupings and socio-professional associations.
Ministries concerned:
- Ministry of Industrial and Commercial Development;
- Ministry of Economy and Finance;
- Ministry of Agriculture;
- Ministry of Livestock, Fisheries and Animal Industries;
- Ministry of Transport;
- Ministry of Foreign Affairs;
- Ministry of Tourism;
- Ministry of Mines, Water and Energy.
Advisory Bodies:
- Economic and Social Council;
- National Cocoa and Coffee Board;
- Cameroon Chamber of Commerce, Industry and Mines;
- Union of Cameroon Industrialists;
- Grouping of Cocoa and Coffee Exporters;
- Grouping of Cameroon Industrialists.
It should be noted that due to the importance of inland revenue and customs receipts for the
State budget, the Ministry of Economy and Finance isjust as involved in the preparation of trade policy
as the Ministry of Industrial and Commercial Development. C/RM/G/56 Trade Policy Review Mechanism
Page 6
IlI.IMPLEMENTATION OF TRADE POLICY
3.1 Trade policy measures
3.1.1 In the export sector
Ordinance No. 95/01 of 5 January 1995 imposed a levy (Royalties) on exports of cocoa, coffee,
bananas, cotton, sugar, palm oil, rubber and medicinal plants.
The rates applied to these products are as follows:
(a) 15 per cent of the f.o.b. value for cocoa, cotton, sugar, rubber and medicinal plants;
(b) 25 per cent of the f.o.b. value for coffee;
(c) 30 per cent of the f.o.b. value for palm oil;
(d) 6,500 CFAF per tonne for bananas.
In parallel, an inspection and control tax on exports of primary commodities was established.
It is applied to cocoa. coffee, medicinal plants, timber, palm oil and bananas.
The rate of this tax is 0.95 per cent of the f.o.b. value of exported products.
These measures stem from the Government's concern to stabilize the economy by guaranteeing
supplies of raw materials to local factories.
However, as they are not subsidized, exports of semi-finished and finished products are not
subject to any customs duty or charge.
In order to permit the development of trade flows within the Central African sub-region, a
programme of creating frontier markets has been launched with a view to the creation of five frontier
markets. Only one, on the frontier with the Gabon Republic, is so far in operation.
On the financing side, it has just been decided that the cost of borrowing and access to credit
will be significantly eased.
3.1.2 Imports
The general trade programme represents the culmination of the liberalization process which
has been underway since 1989. Its key objective is to restore competitiveness, and it contains significant
import liberalization measures:
- Total elimination of quantitative restrictions;
- Abolition of import licences.
Meanwhile, particular emphasis has been placed on meeting quality standards both for local
and imported products.
Unfortunately, standardization in Cameroon is still embryonic and unregulated so that the
application of standards and the certification of products present practical difficulties. In the absence
of an appropriate body responsible for certifying that products conform to national standards and for
granting the right to use the national emblem, certification is almost non-existent. Cameroon C/RM/G/56
Page 7
Nevertheless, measures have been taken to introduce such a system. In the meanwhile, no
reference is made to standards except in cases where a product is suspected of being or is declared
dangerous. Then the authorities concerned take the necessary measures to control its import and sale
within the country.
Cameroon does not use standards as a protectionist measure for imported products, since it
chose to liberalize its economy to make it more competitive and increase its exports.
It should be said that there is no internal procedure concerning safeguards, given that there
has not been any request for protection against imports under these procedures.
The Government has never taken selective measures targeting a product from any country.
Likewise, there have been no requests by the Cameroon Government for protection against imports
in the framework of a bilateral or regional agreement.
3.1.3 Development of domestic trade
Free access to the various stages of trade and almost total price freedom stimulate healthy
competition. However, the production of certain products, notably water, electricity, petroleum,
aluminium, cotton, to mention only goods, is reserved for the public sector. Companies concerned
by these measures include: SNEC, SONEL, SNH, ALUCAM and SODECOTON. SODECOTON
is the primary and sole beneficiary of the cotton harvest because it provides pre-financing in kind (inputs)
for production of this raw material in the North Cameroon region.
The liberalization of the Cameroon economy begun in all sectors since 1990 has opened the
door to private operators in most sectors of activity. The fiscal and customs reform of the CACEU
implemented by Cameroon since the beginning of this year is further reinforcing this trend.
3.2 Investment policies
By encouraging export-oriented industrial enterprises in particular, these policies are undeniably
a factor in trade promotion.
*Customs concessions
With the introduction of the fiscal and customs reform in the CACEU, customs concessions
which had previously been granted to enterprises enjoying privileges under the Investment Code, except
those in the Industrial-Free Zone, were abolished. Nevertheless, industrial plant and raw materials
are subject to a reduced customs duty of ten per cent. Equipment is exempt from turnover tax, while
there are deductions for raw materials.
*Fiscal concessions
These vary according to the operational stage of the enterprise.
(a) Concessions related to the installation phase
- Exemption from:
Registration duties; C/RM/G/56 Trade Policy Review Mechanism
Page 8
- capital transfer duties;
- tax on allocation of credits;
- the minium flat-rate tax;
- the special companies tax;
- the special registration tax;
- Plus a reduction of 50 per cent of the companies tax from the first year when it is
payable.
(b) Concessions related to the production phase
Exemption from the minimum flat-rate tax and the special companies tax.
Reduction:
- Of 50 per cent of companies tax;
- of 50 per cent of the proportional tax on income from investments;
- carry forward of the loss resulting from depreciation charges normally written off during
the first three accounting periods for the following five accounting periods
In addition to the above-mentioned concessions, the investment code contains other incentives:
- National treatment for foreigners, subject to compliance with legal and regulatory
provisions, as well as with treaties and agreements concluded by Cameroon with the
States of which they are nationals;
- the right to transfer revenue of any kind arising from capital invested and, on cessation
of activities, the proceedings of liquidation or transfer of the investment, subject to
the enterprise having settled its liabilities to the tax authorities;
- freedom to hire and dismiss staff in compliance with current social and employment
legislation;
- for partners of enterprises regularly established in Cameroon freedom of movement
of their staff holding a duly certified contract of employment, and their legal families.
A single window system is in operation, to provide investors with all the services which
they require from the Administration.
*Industrial-free zone regime
This is reserved for essentially export-oriented enterprises which are exempt from all direct
and indirect taxes, except for tax on industrial and trading profits to which they are liable from the
eleventh year of operation at a reduced rate of 15 per cent. C/RM/G/56
Page 9
A "single window" has been opened for this category of enterprises to provide them with all
the services they require from the administration.
3.3 Customs measures
For customs matters, Cameroon applies the CACEU tariff which is based on the fiscal and
customs reform adopted by the CACEU. There are thus four categories of import products. The
following table lists the customs duties applicable to these various categories:
Apart from the common trade tariff, other internal taxes are applied to imports:
Generalized preferential tariff
turnover tax
excise duty
0%;
5.5% and 16.5%;
25%.
*Generalized preferential tariff
This is applied to inter-regional trade (CACEU).
*Turnover tax
This is a tax on consumption with rates of 5.5 per cent and 16.5 per cent respectively for semi-
finished and finished goods and raw materials, and services. The rate of 5.5 per cent applies only
to products in the first category.
Cameroon
Category Description Common trade tariff
after devaluation
I Products of basic necessity 5%
Il Raw materials and capital goods 10%
III Intermediary goods and miscellaneous 20%
IV Ordinary consumer goods 30% C/RM/G/56 Trade Policy Review Mechanism
Page 10
*Excise duty
Excise duty is imposed on luxury products at a rate of 25 %. The list of such products is annexed
(see page 31).
*Temporary surcharge
This applies to products which were previously subject to quantitative restrictions to meet the
needs of local industry. The rate varies from 0 to 30 per cent. It can only be applied for a period
of three years from the abolition of quantitative restrictions.
In Cameroon, no product is at present subject to this surcharge. However, the responsible
technical ministerial departments may reintroduce it in case of need.
*Other taxes and charges
Imports with an f.o.b. value of two million CFAF or more are subject to pre-shipment inspection,
except those contained in a list of exceptions drawn upjointly by the Minster of Trade and the Minister
of Finance.
For this purpose, an Import Inspection and Control tax has been introduced at a rate of
0.95 per cent, calculated on the value, with a minimum charge of CFAF 110,000.
- a levy of 0.3 per cent on river and maritime freight of the Conseil National des Chargeurs
du Cameroun (CNCC) (Cameroon National Shippers' Council) from which three
categories of goods carried by sea are exempt:
- products originating in and imported from the CACEU States;
- goods which are not subject to all customs duties and taxes;
- occasional imports and exports.
Indirect taxes on imported goods are paid to the Treasury prior to removal of the goods.
An annexed table shows some products with the various duties and taxes applicable to them. (See
Annex, page 32).
*In CACEU
It should be emphasised that the fiscal and customs reform drawn up prior to the devaluation
of the CFA franc and introduced by the CACEU countries is currently causing problems, particularly
those concerning product classification. These problems could lead to some enterprises going into
liquidation.
The General Secretariat of the Union is planning to modify this reform. Cameroon C/RM /G/56
Page 11
3.4 Bodies responsible for the administration of trade policies
In Cameroon, trade policies are administered by:
- The Directorate of Trade and Services Promotion (DPCS);
- The Division of Industrial and Trade Cooperation (DICC);
- The Directorate of Industrial and Crafts Development. All these are part of the Ministry
for Industrial and Trade Development (MINDIC);
- The Directorate of Customs and the Directorate of Prices and Consumer Protection
in the Ministry of the Economy and Finance (MINIFI);
- The Directorate of Livestock in the Ministry of Livestock, Fisheries and Animal Industries
(MINEPIA);
- The Directorate of Pharmacy controls the quality of imported pharmaceutical products
and issues a trading certificate. It is in the Ministry of Public Health;
- The Directorate of Economic Controls and External Finance is responsible for foreign
exchange and transfer of funds and is also in the Ministry of Economy and Finance;
- The Investment Code Management Unit;
- The Société Générale de Surveillance (SGS) (General Inspection Agency) the body
responsible for inspecting and controlling imported and exported goods.
3.5 New developments arising during the period under consideration concerning agreements
3.5.1 Bilateral agreements
In order to take account of trends in international trade, particularly CACEU recommendations
and WTO rules, Cameroon is in the process of reviewing its bilateral trade agreements signed with
Senegal and Nigeria. A trade agreement with the Republic of South Africa is in preparation and will
very shortly be signed by both parties.
3.5.2 Regional agreements
With regard to the EEC countries, the entry into force of the Single European Market requires
revision of the bilateral agreements signed with these countries. Discussions concerning the future
of these agreements have already begun.
3.5.3 Multilateral agreements
Cameroon signed the Agreement on the GSTP on 19 March 1988 in Belgrade, Yugoslavia,
and ratified it in 1992.
The Final Act of the Uruguay Round was signed on 15 April 1994 in Marrakesh (Morocco).
The ratification procedure has already begun. C/RM/G/56 Trade Policy Review Mechanism
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3.6 Current trade liberalization programmes. including those agreed in the context of structural
adjustment and/or debt negotiations
- Withdrawal of the State from production sectors in order to give the private sector
its proper role;
- abolition of tax exemptions for certain public and parapublic enterprises of an industrial
and commercial nature;
- total liberalization of prices and wages, with the essential aim of encouraging better
performance and competitiveness among local industrialists;
- liberalization of the robusta coffee and cotton sectors, completing the process of
liberalization of basic commodities;
- privatizations.
3.7 Planned changes to trade policies and practices. in so far as such changes have already been
announced or may be disclosed
In application of Law No. 90/031 of 10 August 1990 governing trade activity in Cameroon,
it is planned to develop:
- A text governing trade practices, with particular emphasis on combatting practices
such as dumping;
a text on standardization.
The draft texts should be finalized before the end of the first quarter of 1995, and in compliance
with the commitments undertaken vis-à-vis Bretton Woods institutions.
3.8 Detailed analysis of trade policies and practices
3.8.1 Trade
The general trade programme marks the end of the liberalization process begun in 1989 with
regard to imports and distribution.
3.8. 1.1 Exports
With the exception of certain basic commodities (wood, cocoa, coffee, cotton) the ruling principle
is freedom subject to qualification for the trade activity and compliance with the regulations of the
country of destination. For a very limited list of products (mostly products of animal origin), there
is a requirement to obtain a technical visa from the competent authority. Professional export trader
status is obtained by:
- Registration in the companies register;
payment of an export licence fee. Cameroon C/RM/G/56
Page 13
Exports of wood remains subject to the following approval procedure set out below.
(a) Cocoa and coffee
*Documents to be provided once only
- A stamped application to the Ministry of Industrial and Commercial
Development;
- a trade registration;
- a registration number (statistic);
- a list of operating facilities required by the Conseil interpiofessional du cacao
et café (CICC);
- a commitment to comply with CICC rules;
- a bank certificate of financial adequacy.
*Documents required at the beginning of each trading period
- A tax certificate;
- a receipt for payment of a professional bond;
- fire and civil liability insurance for the head of the enterprise.
(b) Wood
Prior to the export of logs, a certificate of registration as timber exporter must be obtained,
based on a dossier complying with forestry regulations. These regulations require the operator to process
70 per cent of production on site. Consequently, only 30 per cent of the gross annual harvest may
be exported as logs.
Taxes and duties relating to forestry activity are as follows:
*Felling tax: 5 per cent of market value;
*Approval fee: 15 F/ha/five years;
*Transport fee: 50 F/ha/year;
*Territorial levy: 10 F/ha/year;
*Bond: 40 F/ha/5 years;
*Participation in construction of socio-economic infrastructure projects: 40 F/ha/year;
*Contribution to forestry development works: 28 F/ha/year; C/RM/G/56 Trade Policy Review Mechanism
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*Wood export tax (rough and semi-dressed logs) of 25 per cent of f.o.b. value.
The General Export Programme distinguishes three other categories of export products:
liberalized products, products requiring administrative formalities, and prohibited products.
*Liberalized products
In this category, the only formality required is a declaration to the customs services accompanied
by a certificate of origin of the products for export where such a certificate is required by the destination
country.
In addition, domiciliation for banking purposes is required for the repatriation of the proceeds
of the sale in accordance with Interministerial Circular No. O1/MINFI(MINDIC) of 6 February 1975.
*Products requiring administrative formalities
This category concerns food products, products of animal origin, livestock, fish products and
certain products of fauna and flora for which the exporter must obtain the required certificate or licence
from the competent national authorities.
*Prohibited products
These are products which constitute a danger to the health or safety of people, life or health
of animals or plants and may contribute either to atmospheric pollution or environmental degradation.
These products are prohibited for export. They are:
- Products whose sale is prohibited;
- products withdrawn from sale;
- toxic industrial waste.
3.8. 1 .2 Re-exports and countertrade
In order to put an end to fraud and maximize public revenue, Ministerial Circular
No. 0600/MINFI/MINDIC of 16 December 1986 sets out the conditions for re-export:
- Re-export without payment of duties and taxes to neighbouring countries of goods
imported to Cameroon is henceforth abolished;
- goods imported and paid from Cameroon cannot be re-exported until full payment of
the customs duties to which they are subject has been made;
- when the Cameroon importer does not wish to be subject to payment of customs duties,
the import must be domiciled in the country of final destination and settled with the
foreign supplier by the final importer;
- in addition, all goods in transit in Cameroon must be covered by customs transit
documents. These documents are drawn up by authorized customs agents who are
held personally liable for complying with their obligation to ensure that all goods
declared in transit are shipped to their destination. Cameroon C/RM/G/56
Page 15
Countertrade or barter operations consist of an exchange of goods between Cameroon and
foreign traders. These operations remain subject to a simple declaration by the Cameroon operator
who must be an accredited trader.
3.8.1.3 Imports
To qualify as an importer, the economic operator must fulfil the necessary formalities:
- A duly stamped application;
- an importer's licence;
- a statistical registration number;
- registration in the trade registry;
- an annual subscription of 10,000 CFA francs to the CNCC.
As a result of the current liberalization process, emphasis is placed on supervision and compliance
with the standards established for imported products. The General Trade Programme defines three
categories of imported products and procedures for importing them:
- Liberalized products whose import is not subject to any particular restriction;
- products whose import is subject to a technical visa or a certificate of compliance from
the competent ministry for reasons of security, health, or environmental protection;
- prohibited products whose entry and distribution are prohibited in Cameroon due to
the dangers they present for health and the environment (see Annex, page 34 and 35).
*Procedure for importing liberalized products
- No prior authorization is required;
- no import licence is required;
- a prior import declaration is only required for statistical reasons, inspection and
supervision of imports. This declaration is individual and cannot be transferred.
It must be completed in seven copies and lodged in a bank together with all relevant documents
(invoices, contracts, letters of contract).
The import declaration is not subject to any certification by MINDIC: it is directly deposited
at the bank of domiciliation which is responsible for distributing it to the various administrations
concerned.
*Procedure for importing products subject to technical visa
The import of products in this category is subject to the same formalities as those applicable
to liberalized products. However, when removing them from customs, the importer must present the
technical visa or certificate of compliance from the competent ministry. This visa or certificate must C/RM/G/56 Trade Policy Review Mechanism
Page 16
be issued eight days from the date of deposit of the dossier. After that time has elapsed, the visa is
deemed to have been granted. (See Annex, page 33)
3.8.2 Central Africa Customs and Economic Union (CACEU) and Economic Community of Central
African States (ECCAS)
Cameroon is a member of two organizations for regional integration, CACEU and ECCAS,
whose objective is the creation of a common market in the sub-region.
A number of obstacles of an economic and political nature are delaying the achievement of
the objectives pursued by these two organizations.
The fiscal and customs reform undertaken in the context of the CACEU is driven by the Member
States desire to remedy shortcomings inthe functioning and implementation ofthis regional integration.
3.8.3 Bank of Central African States (BEAC)
3.8.3.1 Structure and functioning of the BEAC
The Bank of Central African States (BEAC) is a multilateral African public institution, governed
by the Monetary Cooperation Convention concluded on 21 November 1972 between its Member States
on the one hand and the Monetary Cooperation Convention signed on 22 November 1972 between
the Member States and France. It is responsible for issuing currency which is legal tender in the
following six States, listed in (French) alphabetical order:
- Republic of Cameroon;
- Central African Republic;
- Republic of the Congo;
- Republic of Gabon;
- Republic of Equatorial Guinea;
- Republic of Chad.
Within its currency area, the BEAC has:
- National headquarters, constituting registered offices, in the capitals of the six States;
- agencies and offices throughout the six States;
- an agency in France (Paris).
The BEAC is managed by a Board of Directors which has full powers.
In the framework of the powers granted to national monetary committees by the statutes, the
Board of Directors issues the latter with guidelines necessary for the exercise of their functions. 95-0197 MF F E S C/RM/G/056
95-0198 MF E F S ADP/001/Add.26/Suppl.05
95-0198 MF E F S SCM/001/Add.26/Suppl.05
95-0199 MF S E F WT/DS002/001
95-0200 MF E F S WT/L/0020 Cameroon C/RM/G/56
Page 17
Day-to-day management of the BEAC the responsibility of a Governor, under the control
of the Board of Directors. The Governor is ass?- a Deputy Governor, and they have under their
authority the central services in Yaoundé (Cameroon) and national directorates in the Member States.
The latter represent the Governor vis-à-vis the administrative authorities of the Member States.
3.8.3.2 Role of the Board of Directors of the BEAC
The Board of Directors has extremely wide powers. It defines the general policy of the Central
Bank. In particular, it approves the accounts and decides on the distribution of profits and any increase
or reduction in the share capital. It is also responsible for:
- Setting definitive monetary and credit targets at the beginning of each year, on the
recommendation of national monetary committees;
- approving adjustments in rates decided by the Governor between two meetings of the
Board.
The Board of Directors meets at least four times a year and as necessary, when convened
by its chairman, or at the request of a State's directors.
Except as otherwise provided in the statutes, decisions of the Board are taken by a simple
majority. In practice, decisions are taken by consensus.
The Chairmanship of the Board of Directors is taken in turn for a period of one year, and
in alphabetical order, by the Ministers of Finance of the Member States.
There are 13 directors:
- Four directors representing the Republic of Cameroon;
- two directors representing the Republic of Gabon;
- four directors representing Member States other than Cameroon and Gabon, one for
each State. Their alternates attend meetings of the Board of Directors with consultative
status:
- three directors representing the French Republic.
The Board of Directors of the BEAC is entirely independent in defining monetary policy within
its currency area.
3.8.3.3 and composition of the Cameroon Monetary Committee
Under the responsibilities and powers granted to it, the Monetary Committee, among other
things, considers the short, medium and long-teim financing needs of the economy and the maximum
level of refinancing determines the appropriate means for satisfying those needs. It proposes monetary
and credit targets and the maximum level of refinancing to the Board of Directors.
The Monetary Committee is made up of Directors, nominated persons, the National Director
who reports items entered on the agenda, the Governor and the Auditor. C/RM/G/56 Trade Policy Review Mechanism
Page 18
The Ministry of the Economy and Finance and the BEAC are responsible for monetary policy
in Cameroon.
3.8.4 Government procurement
In Cameroon there is an agency responsible for government procurement, the Department
of Major Works of Cameroon (Direction des grands travaux du Cameroun - DGTC). However, certain
administrations and competent agencies are also involved.
3.8.4.1 Other competent administrations and agencies
- Ministers approve orders up to 50 million CFA francs;
- the Minister of State responsible to the President for defence signs contracts up to
200 million CFA francs;
- agencies in the first, second and third category can sign contracts up to amounts not
exceeding 2 million CFA francs;
- agencies in the fourth and fifth category, or not classified, may sign contracts up to
100 million CFA francs;
- provincial governors for the following cases:
* Contracts under commitments up to 200 million CFA francs;
* local government contracts up to 100 million CFA francs.
The DGTC therefore decides on contracts concluded at its level. The other administrations
and agencies regularly communicate information concerning contracts within their sphere of competence
to the DGTC:
- Contracts handled by the DGTC are approved ultimately by the Prime Minister, Head
of the Government;
- Ministers, provincial governors, director-generals and directors of public or para-statal
agencies conclude contracts within their respective sphere of competence.
It should be noted that regardless of the signatory, all contracts over 50 million CFA francs
concluded in Cameroon are governeo by the same provisions, which give priority to the invitation
to tender procedure and openness to competition, so that projects are implemented at the lowest possible
cost by technically appropriate companies.
3.8.4.2 The main texts on government procurement
- Decree No. 86/903 of 18 July 1986 on government procurement;
- Order No. 3430 of 13 October 1959 implementing the general administrative conditions
applicable to contracts for works, supplies and provision of services. Cameroon C/RM/G/56
Page 19
The Decree sets out, stage by stage, the conditions for invitation to tender, implementation,
monitoring and payment of government contracts. Taking into account the new objectives assigned
to the bodies primarily responsible for managing procurement, this text is currently being revised,
with the aim of producing a new procurement code.
The Order on general administrative conditions naturally needs to be brought into line with
the present circumstances. Reference is made to the provisions of this Order only when the special
provisions of the contract (law of parties) and Decree No. 86/903 of 18 July 1986 are silent.
No procedure for registration and prior approval is required. However, the foreign supplier
must comply with the specific requirements of the tender document, in particular, production of a
certificate of solvency, a certificate of bank domiciliation and a bond whose amount varies with the
size of the projects to be implemented.
3.8.4.3 Cameroon's regulations concerning government procurement compared with the World Bank
Guidelines
The opinion of the World Bank had been received prior to the preparation of Decree No. 86/903
of 18 July 1986 on government procurement. However, it was impossible to take all those observations
and guidelines into account. since the regulations did not cover only contracts financed by that institution.
Indeed, it was observed that practically every lender has its own procurement code. Thus,
to satisfy all involved in procurement, the regulations contained provisions such as to comply with
the provisions of financing agreements or other international agreements.
Cameroon rarely grants a prefence margin of 15 per cent to local suppliers for projects
undertaken in the context of World Bank programmes in order not to blunt the competitiveness of
suppliers. It should be noted that provided this stipulation is included in the tender documents, the
World Bank does not oppose its application when contracts are awarded.
3.8.4.4 Participation of foreign suppliers in the bidding process
Foreign suppliers participate directly in international bidding and indirectly through their local
subsidiaries in national invitations to tender addressed to companies established within the national
territory. In the last three years, participation by foreign suppliers has been all the greater in that most
major investments have been financed by foreign lenders. But bidders are inclined to use the services
of a local representative who can best serve their interests.
3.8.4.5 Preferential treatment enjoyed by national enterprises (including preference margins)
The regulations allow the administration discretion:
- To reserve for national bidders certain invitations to tender financed from local funds;
- to decide on awards where subcontracting or subordering are exclusively reserved to
nationals;
- to require from nationals, instead of a performance guarantee and guarantee retention,
a mortgage or a bond from the small and medium enterprise guarantee fund (Fonds
de garantie aux petites et moyennes entreprises, FOGAPE); C/RM/G/56 Trade Policy Review Mechanism
Page 20
- to review in favour of nationals any contract where the initial amount is equal to
100 million CFA francs (the minimum amount for foreigners is 500 million CFA
francs).
Apart from the above measures for the benefit for nationals, preferential treatment for enterprises
from a particular country or region is not explicitly provided for in the regulations. However, it happens
that some financing provisions restrict participation in some tendering procedures to bidders from clearly
defined regions (e.g. franc zone) or countries (e.g. EU countries).
Where a monopoly is exercised by a supplier in a given sector, only the services of this single
supplier by mutual agreement may be used after restricted consultation. These rules apply to contracts
with State companies or local or regional companies, in as much as these various procurement procedures
are governed by the same legal provisions.
3.8.4.6 Changes introduced in government procurement policy and practice since 1985
Until 1985, government procurement was regulated by Decree No. 79/035 of 2 February 1973.
This Decree was repealed in 1986 by Decree No. 86/903 of 18 July 1986, which introduced various
changes, the main ones being:
- Decentralization of award of contracts and raising of the threshold for action by other
competent administrations and agencies;
- greater transparency: bidders are authorized to attend the opening of their bids, for
which they subsequently receive extracts from the analytical reports;
- the requirement to observe certain prerequisites (for example; availability of financing,
vacant site) prior to setting the bidding procedure in motion (the object being, amongst
other things, to ensure smooth implementation of projects and ensure they are not
abandoned);
- price revisions and inclusion of additional clauses are no longer automatic, but must
meet strict conditions laid down by the regulations;
- the possibility of replacing the guarantee retention. formerly deducted at source and
held in a treasury account, by a bond issued by a banking institution approved by
the Ministry of the Economy and Finance of Cameroon;
- setting a time-limit for analysis of bids by the sub-commission to expedite the procedure;
- strengthening control of implementation of contracts;
- introduction of penalties for improper actions by entrepreneurs and agents of the State
or those responsible for irregularities during bidding or implementation of contracts;
- in practice, use of information has led to greater speed and efficiency in the bidding
and implementation of contracts.
Cameroon envisages becoming a party to the Agreement on Government Procurement. Cameroon C/RM/G/56
Page 21
3.8.5 Restructuring and privatization of enterprises
In order in the medium term to restore self-sustained and sustainable growth, a variety of
important measures concerning various aspects have been taken:
- Rehabilitation of public enterprises by liquidating some of them and privatizing others;
- restructuring of the banking sector.
The Presidency of the Republic of the Cameroon, by Ordinance No. 90/004 of 22 June 1989,
defined the framework, spirit and objectives of the privatization of certain companies. This ordinance
was supplemented by Decree No. 90/1423 of 3 October 1990 concerning privatization of 18 enterprises,
of which some have already been privatized (SCM, OCB, SOCAMAC, SEPBC, COCAM, SCDM).
This process is encountering certain difficulties, notably:
- The lack of serious potential buyers;
- uncertainty caused by economic changes (structural adjustment programme, devaluation,
fiscal and customs reform), specifications have been developed in that light;
- lack of ad hoc financing to make up for the shortage of national financial resources;
lack of knowledge about the enterprises to be privatized. C/RM/G/56 Trade Policy Review Mechanism
Page 22
IV. BACKGROUND AGAINST WHICH THE ASSESSMENT OF CAMEROON'S TRADE
POLICIES WILL BE CARRIED OUT
The review of Cameroon's trade policies is taking place at a critical moment marked by the
implementation of structural adjustment measures:
- Reduction in government expenditures, sale of administrative vehicles, telephone quotas,
abolition of free housing for officials;
- freeze on civil service recruitment;
- freeze on civil service promotions;
- privatization of some State enterprises;
- drastic reduction of salaries in the civil service and inpublic and para-public enterprises;
- liberalization of trade and prices;
- devaluation of the CFA franc.
The overall effect of this budgetary austerity is mixed.
Real GDP fell by more than a quarter between 1984-1985 and 1992-1993, and real per capita
income by more than a half. Over the same period, the gross investment ratio fell from 27 per cent
of GDP to less than 11 per cent and the gross domestic savings rate, formerly 35 per cent of GDP
was only 10 per cent in 1992-1993. The Government budget deficit (financial transactions) rose from
1.5 to 8.5 per cent and the balance-of-payments current account moved from a surplus of 8 per cent
of GDP to a deficit of 10.5 per cent of GDP.
Since 1985, the economic situation in Cameroon has been constantly deteriorating as a result
of both external and internal factors. Between 1984 and 1993, industrial production fell by 14 per
cent. This massive decline in production was accompanied by a fall in the creation of new enterprises.
Significant payroll reductions and falling in real wages were not enough to halt the decline
in profit margins. The drastic adjustment of public investment contributed to the deterioration of the
economic environment. The growth rate fell by 8 per cent between 1990 and 1992. Today, the
economic situation is improving slightly:
- There has been an unprecedented fall in purchasing power, which was exacerbated
by the devaluation and the fiscal and customs reform;
- the rate of inflation is high, between 20 and 30 per cent;
- output levels are low and there is a drift towards stagflation.
Following the devaluation of the CFA franc, emphasis is now being placed on processing of
local raw materials. Cameroon C/RM/G/56
Page 23
4.1 Cameroon's general economic and development objectives
All the measures and reforms introduced by the Cameroon Government over the last seven
years have two fundamental objectives:
- To make the economy more flexible so that it can respond better to the structural
changes in the world economy;
- to revive production activities, in order in the medium-term to return to a self-reliant
and sustainable growth.
To achieve this, Cameroon must develop strong development strategies, step up the exchange
of experience, minimize the cost of its trade transactions and seek new outlets. All these needs call
for greater technical and financial assistance from the international community.
4.2 The external economic environment
This process is taking place at a time when the international economic situation is absorbed
by:
- The changes in Eastern Europe and Asia;
- the entry into force of the single European market;
- the conclusion of the Uruguay Round trade negotiations which require Cameroon, like
so many other countries, to be more competitive internationally.
4.2.1 Major trends in imports and exports
The main trends in Cameroon's foreign trade are reflected in the Annex on pages 36-45.
Worldwide, excluding Asia, our exports have slumped seriously (-22 per cent for the EEC,
-76.6 per cent for the rest of Europe, -5 per cent for the USA, -18 per cent for Africa, +66 per cent
with Asia). In total, a fall of -19 per cent was recorded in 1993 compared with 1992.
The same trend occurred with imports, which also declined by 18 per cent overall: (-22 per
cent for the EEC, -20 per cent for the rest of Europe, -7 per cent for America, -17 per cent for Africa,
-4 per cent for Asia).
4.2..2 Developements in the terms of trade and prices of products
Following the devaluation of the CFA franc, the prices of imported products soared:
consumption of households and industry was therefore highly disrupted.
As a result of the corresponding decline in purchasing power, there was a trend towards higher
consumption of local substitutes. Pr ice control measures and partial or total exemption from customs
duties introduced by the Government during the first half of 1994 made it possible to limit the rise
in prices of such products to about 40 per cent.
In industry, which is largely dependent on imported inputs, operating costs rose by some
46 per cent. C/RM/G/56 Trade Policy Review Mechanism
Page 24
With regard to traditional export products, essentially cocoa, coffee, cotton and wood, prices,
which were then fixed were doubled, leading to a revival of interest in these crops among producers.
These thresholds have been greatly exceeded since the total liberalization of the sectors which resulted
in competition between operators in the setting of prices.
4.2.3 Major trends in the balance of payments, debt reserves, exchange and interest rates. and similar
issues
4.2.3.1 Major trends in the balance of payments
The significant element in Cameroon's balance of payments is the balance of goods and services
which represents on average 46.9 per cent of the total volume of revenue from trade and 59.1 per cent
of expenditures, hence the permanent deficit in its balance (see Annex page 46).
The persistence of the deficit is linked to movements in categories such as travel and tourism,
interest on external public debt and other services. Long-term capital movements, in volume terms,
also contribute to our balance-of-payments deficit, with an average of 18.8 per cent of revenue and
17.7 per cent of expenditures.
The balance under the heading "Movements of long-term capital" has been in constant deficit
since the outbreak of the debt crisis.
However, the devaluation of the CFA franc should permit a recovery in exports and thus improve
the trade balance, despite the increase in cost of imports.
4.2.3.2 Reserves
Cameroon's foreign reserves are deposited in the operations account opened with the French
Treasury, and not with the Bank of France, in accordance with the agreement on the operations account
signed on 13 April 1973 in Libreville. This account is debited or credited as appropriate with the amount
of transfers resulting from the levelling down or topping up of the ordinary current account in the French
Treasury.
4.2.3.3 Exchange rates and interest rates
Prior to 1994, the exchange rate was 1 CFA franc to 0.02 FF.
Since the devaluation of the CFA franc which was decided on 12 January 1994, the rate moved
to 1 CFA franc to 0.01 FF.
One cannot speak of factors influencing the normal and real exchange rates since there is a
fixed parity between the CFA franc and the French franc. Likewise, it is not possible to speak of an
exchange rate management policy, since that is an element of the monetary policy of the franc area.
The devaluation of the CFA franc agreed last January should have the effect of making our
imports dearer and making our exports more competitive, thus leading to higher foreign-exchange
receipts.
As far as interest rates are concerned, the annexed table (page 47) will allows a better
appreciation of developments. Cameroon C/RM/G56
Page 25
4.2.3.4 Trends in external debt
The Government operates a prudent foreign debt policy in that the major loans contracted finance
projects set out in a document prepared in concert with lenders entitled "Public Investment Programme"
(PIP). Furthermore, all foreign loans must fall within a foreign debt ceiling authorized by the Finance
Act.
As a result of the above measures, Cameroon's indebtedness is controlled and directed towards
financing only development projects.
The debt service situation, in the short and medium term, gives overall concern for two main
reasons:
- The devaluation of the CFA franc has had the effect of doubling the service charge
for debts contracted prior to that event;
- the forecast revenues on which the public authorities and the lenders relied have not
in fact been realized.
These two problems have been aggravated by the erratic movements of exchange rates and
interest rates.
The decision by France to write off half of the debt of countries in the area is certainly a positive
step, but merely had the effect of restoring the outstanding debt of these countries to the pre-devaluation
level. It would have been desirable for others among Cameroon's creditors States to take similar
measures.
The second measure concerning the creation of a debt conversion fund is more significant,
because, when the conditions for eligibility are met, there is a total write-off of the debt. It is
nevertheless regrettable that the amount of the fund is limited, although aimed at all the middle-income
countries in the area (Cameroon, Congo, Gabon and Côte d'Ivoire).
4.2.4 International macro-economic situation affecting the external sector
4.2.4.1 Devaluation of the CFA franc
The monetary adjustment decided on 12 January 1994 gave rise to:
- An increase in the price of locally manufactured products, because of the large content
of imported inputs whose cost rose despite a fall in volume;
- stagnation of agricultural exports owing to the shift of labour to other sectors as a result
of the fall in world prices, the subsequent fall in production and the low price elasticity
in relation to demand;
- an even lower level of food exports, despite improvements in production: substitution
of imports due to imported inflation led to a further reduction of the proportion destined
for export.
Although the devaluation of the CFA franc had adverse effects in the very short term (inflation,
fall in incomes, hardship) its positive impact on the national economy will be measured in the medium C/RM/G/56 Trade Policy Review Mechanism
Page 26
term by improved competitiveness and the revival of exports, and in the long term by industrial
expansion.
4.2.4.2 Fiscal and customs reform
This has as its main objectives:
- To simplify the customs and fiscal systems in the CACEU sub-region;
- to increase trade within the CACEU by introducing a general degressive preference
rate which will be reduced from a level of 20 per cent over five years so as to bring
about a free-trade zone;
- to reduce turnover tax on basic materials and staple products.
Its implementation has brought to light shortcomings, particularly in classification of products
in different tariff categories. The Cameroon Government intends to correct this situation quickly, in
concert with the other Member States, since the present situation could lead to the closure of some
industries whose finished products are classified in the same tariff categories as imported inputs.
4.3 Problems faced on the external market
There are three types of problem:
(1) Lack of competitiveness of our export products on the external market due to:
* Poor packaging;
* high production costs;
* irregularity of supply.
(2) The sudden opening up of the market, a logical consequence of membership of regional
or sub-regional groups, the entry into force of the WTO and the liberalization measures
prescribed in the context of structural adjustment programmes.
(3) Tariff and non-tariff barriers, notably those related to rules of origin and standards
for packaging, quality and sizes.
The much more demanding rules introduced by the European Union, our primary partner,
could have a more negative impact than customs duties and other non-tariff measures on Cameroon
exports. The Cameroon Government intends to introduce as a matter of priority a standardization body
responsible for developing and implementing a policy which complies with the relevant international
rules. ANNEXES Cameroon C/RM/G/56
Page 29
LIST OF COUNTRIES WHICH HAVE SIGNED A TRADE AGREEMENT WITH CAMEROON
Countries Date of signature Date of ratification No. of decree
AFRICA
Nigeria 06.02.1963 02.03.1963 63-DF-56
13.04.1982 08.07.1982 82-294
Tunisia 11.12.1965 08.03.1966 66-DF-103
08.10.1977 28.11.1977 77-482
Mali 06.05.1964 16.06.1964 64-DF-205
U.A.R. 19,08.1966 28.09.1966 66-DF-467
Guinea Equatorial 06.01.1970 27.02.1970 70-DF-1 14
Senagal 10.01.1974 29.01.1974 74-69
Algeria 10.10.1974 22.11.1974 74-951
Egypt 07.11.1977 25.07.1978 78-301
Zaïre 11.03.1977 23.06.1977 77-190
RPR Guinea-Bissau 21.02.1981
Sao Tomé ard Principe 07.02.1976 08.05.1976 76-187
Libya 29.10.1975 04.02.1976 76-41
Morocco 15.04.1987 24.07.1987 87-1039
ASIA
Japan 25.09.1962 19.03.1963 63-DF-90
Lebanon 19.10.1962 19.03.1963 63-DF-86
India 22.02.1968 20.04.1968 68-DF-165
People's Republic of China
17.08.1972 27.09.1972 72-501
Democratic People's
Republic of Korea 16.01.1981 10.01.1984 84-003
Republic of Korea 01.05.1979
Iraq 17.10.1962 08.02.1964 64-DF-603
Israel 24.10.1962 19.03.1963 63-DF-89
Pakistan 19.10.1962
AMERICA
Brazil 05.06.1965 28.07.1965 65-DF-3
EUROPE
Federal Republic of
Germany 08.03.1962 06.09.1962 62-DF-321
Greece 29.10.1962 02.03.1963 63-DF-60
Switzerland 28.01.1963
USSR 24.09.1962 19.03.1963 63-DF-91
Austria 09.11.1962 19.03.1963 63-DF-88
Yugoslavia 18.10.1962 19.03.1963 63-DF-83
Denmark 08.11.1962 31.08.1963 63-DF-311
Poland 28.09.1962 02.03.1963 63-DF-58
Bulgaria 24.06.1963 20.06.1963 63-DF-189
Romania 13.02.1962 21.03.1964 64-DF- 105
30.08.1980
Italy 31.10.1962
Spain 04.02.1964 21.02.1964 64-DF-70
Great Britain 29.07.1963 16.06.1964 64-DF-210
Hungary 27.04.1970 16.02.1972 72-DF-81
German Democratic
Republic 11.12.1978 07.07.1981 81-DF-09
Czechoslovakia 13.06.1963 31.01,1967 67-DF-46
25.06.1981 01.07.1983 83-319 C/RM/G/56 Trade Policy Review Mechanism
Page 30
OTHER AGREEMENTS ALREADY FINALIZED
Cooperation agreement between the Chamber of Commerce of the WILAYA of Greater
CASABLANCA (Morocco) and the Chamber of Commerce, Industry and Mining of Cameroon
(8 April 1988 in Casablanca).
AGREEMENTS UNDER REVIEW
- Agreements with the countries of East Europe: Hungary, Poland, countries of the
former USSR
- Agreement with Spain
- Agreement with Senegal
- Agreement with Zimbabwe
- Agreement with Tunisia
- Agreement with Japan
- Agreement with Nigeria
OTHER AGREEMENTS UNDER NEGOTIATION
Agreement between the Chamber of Commerce, Industry and Mining of Cameroon and the
Egyptian Federation of Chambers of Commerce.
Mutual assistance agreement with the Zaïre International trade Centre. Cameroon C/RM/G/56
Page 31
LIST OF PRODUCTS SUBJECT TO EXCISE DUTY
No. of customs tariff Description
22.03 0000 Malt beer
22.04 Wine from fresh grapes ..... all
22.05 Vermouths and other wines from fresh grapes
22.06 0000 Other fermented beverages (e.g. cider, perry, hydromel)
22.08 2000 to Brandy, whisky, rum, gin and spirits, etc., except 2208-9010 "non-denatured
22.08 9092 ethyl alcohol"
24.02 Cigarillos, cigars and cigarettes, from tobacco or tobacco substitutes
24.03 9910 Chewing tobacco and snuff
24.03 9990 Other tobacco products
33.03 0000 Perfumes and toilet waters
33.04 Beauty products or cosmetics
33.05 Hair preparations
33.07 All
71.01 1000 to Natural pearls, precious stones
71.05 9000
71.06 1000 to Precious metals
71.12 9000
71.13 1100 to Jewellery
71.17 9000 C/RM/G/56 Trade Policy Review Mechanism
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SOME PRODUCTS AND THE VARIOUS TAXES APPLICABLE TO THEM
Common trade tariff Turnover tax Surcharge
Wheat 10% 15% N.A.
Rice 30% 15% N.A.
Flour 30% 15% N.A.
Sheet metal 20% 15% N.A.
Vehicles 30% 15% N.A.
Milk 20% 5% N.A. SPECIAL PRODUCTS WHOSE IMPORT REQUIRES THE TECHNICAL ENDORSEMENT (VISA)
OF TH RESPONSIBLE MINISTRY
Order Tariff heading Description of product Technical visa
No. from
02.01 1000 to
02.10 9000
03.01 1000 to
03.07 9900
23.09 9000
30.03 1000 to
30.04 9000
34.01 1100
36.02 0000
36.04
36.04
85.25
85.25
85.27
93.03
93.03
1000
9000
1000
2000
9000
1000
2000
93.03.30
93.03 9000
93.06 1000
93.06 2100
93.06 3000
93.06 9000
Edible meat
Fishery and livestock products
Feed for other animals
Medicaments for cattle, pharmaceutical
Medicated soap
Prepared explosives, other than propellent
powders
Fireworks
Signalling flares and other pyrotechnic articles
Transceivers
Transceivers
Other receivers
Muzzle-loading firearms
Other sporting, hunting or target-shooting rifles,
including combination shotgun rifles
Other sporting, hunting or target-shooting rifles
Other firearms under Heading No. 93.03
Cartridges for pistols
Shotgun and rifle cartridges
Other cartridges
Other ammunition
Precious substances (gold, platinum, sapphire)
Radioactive substances (uranium, thorium,
deuterium)
Appliances containing radio elements
Cameroon
C/RM/G/56
Page 33
MINEPIA
2
3
4
5
6
7
8
9
10
12
13
14
15
16
17
18
19
20
21
22
MINEPIA
MINEPIA
MINEPIA
MINSANTE
MINSANTE
MINMEE
MINAT
MINAT
MINPT
MINPT
MINPT
MINAT
MINAT
MINAT
MINAT
MINAT
MINAT
MINAT
MINAT
MINMEE
MINMEE
MINMEE
1 C/RM/G/56 Trade Policy Review Mechanism
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PRODUCTS WHOSE IMPORT AND DISTRIBUTION ARE PROHIBITED
THROUGHOUT THE TERRITORY OF CAMEROON
Order N° Description f
''IBERO" refined table oil
2 "MC"-"RAY" whisky
MIPPO skin care products
Medicated cream - I.K.B. medicated cream
3 Cream-crusader - Skin toning cream - Elegance
Skin toning cream - Symbi cream - Skin pear
Cream renue super bleaching - Cream amba cream - Nice
Super cream - Desire complexion cream
Tura medicated cream - MIPIPO hydroquinone lotion
4 Jaribu Antiseptic soap, Germicidal - H.G. 12
Germicidal soap - MIPIPO Germicidal soap
Roberts medicated soap - Tura, Savon germicide
Sukissa bango - Antiseptic Baap - Skingard
Medicated soap - Bexo Antiseptic - Bicu soap
5 Captafol
Dinoseb acetate (Aretit)
Dinoseb
Binapacryl (Morocide)
Cyhexatin
Dieldrin
Aldrin
Heptachlor
2-4-5 TCP
Captafol-based fungicides
Difolatan
Folcid
Merpafol
Crisfolatan
Foltaf
Haipen
Mycodifol
Ortodifolatan 80
Captalatan 80
Herbicides with a dinoseb base (Aretit)
HOE 002904
Evosit
Phenotan
Dinoseb based
Basanite
Chemox General
Chemox
Chemsect
Dynamyte
Elgetol
Hel-Fire
Kiloseb
(continued over) Cameroon C/RM/G/56
Page 35
Order N° Description
Nitropone
Sinox General
Unicrop
Caldon
Dinitro
DN 289
Gebutox
Premerge
Subitex
Vertac
Dinitro Weed killer
Binapacryl-based (Morocide)
Acricid
Ambox
Dapacryl
Dinoseb
Endosan
Morocide
HOE 2 784
NIA 9 044
Dieldrin-based
Alvit
Dieldrex
Dieldrite
Octalox
Panoram D-31
Aldrine-based
Aldrex
Aldrex 30
Aldrite
Aldrosol
Drinox
Octalene
Seedrin liquid
Heptachlor-based
Drinox
H-34
Heptamul
6 Toxic and other industrial waste
7 "Cock Brand" anti-mosquito coils
8 "Turkey Brand' vegetable oil
9 Non-iodized salt Trade Policy Review Mechanism
SUMMARY RESULTS: FOREIGN TRADE 1993
T.1 - Trade balance
(Quantity in tonnes - Value in millions of CFA francs)
1991 1992 1993 Variations (%)
Q V Q V Q V Q V
Exports 7, 531, 735 517, 387 8, 432, 961 487, 132 6, 397, 409 383, 421 (24.14) (21.29)
Imports 1,552,132 330,955 1,506, 593 307, 793 1, 295, 003 249, 489 (14.04) (18.94)
Balance 186,433 179,339 133,932 (25.32)
T.2 - Main export products
(Quantity in tonnes - Value in millions of CFA francs)
1991 1992 1993 Variations (%)
Q V Q V Q V Q V
I. RAW
AGRICULTURAL
PRODUCTS
1 .Crustaceans
2. Fresh bananas
3. Arabica coffee
4. Robusta coffee
5. Husks and seeds
6. Juices and vegetable
extracts
7. Cocoa beans
8. Natural rubber
9. Rough wood
10. BuIk cotton
Il. CRUDE PETROLEUM 6
III. INDUSTRIAL.
PRODUCTS
Wheat flour
Crude palm oil
Bulk cocoa
Cocoa butter
Food products
Non-alcoholic beverages
Beers
Cigarettes
Hydraulic cements
Household soap
Perfumes and cosmetics
Matches
13. Sawn wood
927,321 139,059 859,896 124,273 972,056 134,699 13.40 8.39
779
125.705
12.927
92,156
968
1,289
15,148
5,437
24,886
1,803
597
108,014
9.783
87,877
690
869
13,039
2,963
20,357
531
349
130,147
18,274
48,813
676
324
14,918
6,308
11,782
535
(41.54)
20.49
86.79
(44.45)
(2.03)
(62.72)
14.41
112.89
(42.12)
0.75
7 1,427 3 804 3 719 0.00 (10.57)
81,260 27,254 78,568 27,273 101,021 31,239 28.58 14.54
38,003 8,422 42,775 10,242 44,401 9,984 3.80 (2.52)
531,437 34,531 492,740 35,177 577.172 39,698 17.14 12.85
44,079 18,862 38,849 13,018 51,200 19,192 31.79 47.43
,172,269 262,185 7 198,384 263,956 5,060,495 162,727 (29.70) (38.35)
368,074 84,313 296,694 68.051 286,247 61,271 (3.52) (9.96)
29,505 2,095 8,337 820 812 62 (90.26) (92.44)
16.682 3,000 24,123 2,733 24,022 2,429 (0.42) (11.12)
9,654 3,319 4,889 1.618 8,664 2,508 77.21 55.01
3,595 3,140 2,149 973 2,149 1,549 0.00 59.20
875 917 1,007 887 1,016 1,169 0. 89 31.7
1,566 429 1,874 516 2,911 656 55.34 27.13
6,256 1,293 6,482 1,397 6, 033 1,439 (6.93) 3.01
1,021 1,086 229 1,114 197 952 (13.97) (14.54)
39,470 1,696 10,418 482 21,086 1,113 102.40 130.91
10,037 4,037 5,987 2,210 3,341 1,172 (44.20) (46.97)
1,749 1,497 1,299 1,243 335 318 (74.21) (74.42)
1,287 1,076 737 727 960 903 30.26 24.21
125,949 15,705 121,970 15,580 118,429 15,028 (2.90) (3.54)
(T.2 continued over)
C/RM/G/56
Page 36
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12. Cameroon C/RM/G/56
Page 37
1991 1992 1993 Variatios (%)
Q V Q V Q V Q V
14. Railway sleepers
Veneers
Cotton fabrics
Glass utensils
Raw aluminium
Aluminium sheet and
strip
Aluminium products
Electric batteries
17,804
15,858
1,647
10,011
66,337
4, 653
1,082
3,036
1,066
5,091
2,895
1,588
27,565
9,313
17,162
1,230
10,213
60,620
699
5,294
2,128
1,631
21,371
3,493
12,152
1,532
11,029
61,862
293
3,668
1,896
1,846
19,613
(62.49)
(29.19)
24.55
7.99
2.05
3,545 4,777 3,703 3,229 2,434 (32.41)
944 1,567 1,186 1,189 859 (24.12)
2,329 2,311 1,739 1,806 1,364 (21.85)
PRODUCTS LISTED
7,467,664 485,557
8,354 974 456,280
6,318,798 358,697
(24.37) (21.39)
7,531,735 517,387 8,432 961 487,132
15.
16.
17.
18.
19.
20.
21.
(58.08)
(30.71)
(10.90)
13.18
(8.23)
(34.27)
(27.57)
(21.56)
6,397 409 383,421 (24.14) (21.29)
TOTAL EXPORTS C/RM/G/56 Trade Policy Review Mechanism
Page 38
T.3 - Main export products by main customer
(Quantity in tonnes - Value in millions of CFA francs)
1991 1992 1993 Variations (%)
Q V Q V Q V Q V
1. Fresh bananas
France
Other countries
2. Arabica coffee
France
Netherlands
F.R.G.
Italy
Other countries
3. Robusta coffee
France
Belgium-Luxembourg
Netherlands
F.R.G.
Italy
Spain
U.S.A.
Other countries
4. Crude palm oil
Netherlands
F.R.G.
Senegal
Central African
Republic
Equatorial Guinea
Other countries
125,705
25,288
417
12,927
660
90
10,409
476
1,292
92,156
19,606
10,502
8,717
9,616
18,182
14,662
504
10,367
16,682
6,000
4,000
0
1,115
30
7,641
15,148
15,099
49
5,437
326
41
4,437
237
394
24,886
5,088
2,728
2,358
2,579
4,946
4,169
141
2,877
3,000
600
400
0
108,014
107,657
357
9,783
950
225
5,496
1,188
1,924
87,877
16,710
8,571
6,723
8,278
22,822
14,538
378
9,857
24,123
16,000
2,000
13,039
13,010
29
2,963
302
73
1,662
383
543
20,357
3,850
1,893
1,545
1,841
5,290
3,616
86
2,236
2,733
1,600
0
200
693 201 41
750 1 295 305
2,661 6,731 2,691
130,147
129,582
565
18,274
1,316
183
12,120
1,051
3,604
48,813
13,947
6,673
2,376
1,254
10,334
8,475
0
5,754
24,022
4,000
6,000
4,000
14,918
14,857
61
6,308
473
88
4,33
376
1,138
11,782
3,346
1,581
577
296
296
2,101
0
1,375
2,429
400
600
400
20.49 14.41
20.37 14.20
58.26 110.34
ERR ERR
86.79
38.53
(18.67)
120.52
(11.53)
87.32
ERR
(44.45)
(16.54)
(22.14)
(64.66)
(84.85)
(54.72)
(41.70)
(100.00)
(41.63)
ERR
(0.42)
(75.00)
ERR
100.00
(100.00)
(100.00)
10,022 1,029 48.89
ERR
112.89
56.62
20.55
154.69
(1.83)
109,.58
ERR
(42.12)
(13.09)
(16.48)
(62.65)
(83.92)
(94.40)
(41.90)
(100.00)
(38.51)
ERR
(11.12)
(75.00)
ERR
100.00
(100.00)
(100.00)
(61.76)
ERR
Cocoa beans
France
Netherlands
Spain
Poland
Other countries
6. Bulk cocoa
France
Netherlands
Other countries
7. Cocoa butter
France
U.S.A.
Other countries
81,260
8,001
70,450
601
0
2,208
9,654
6,912
1,835
907
27,254
2,642
23,677
215
0
720
3,319
2,333
936
50
3,595 3,140
2,984 2,596
432 387
179 157
78,568
4,965
56,257
1,254
5 819
10,273
4 ,889
3,413
828
648
27,273
1,828
19,502
499
2 102
3,342
1,618
1,250
320
48
1,222 973
952 760
270 213
0 0
101,021 31,239 28.58
3,510 1,149 (29.31)
89,764 27,716 59.56
702 208 (44.02)
(100.00)
7,045 2,166 (31.42)
ERR
8,664
4,522
2 .412
1,730
2,508 77.21
1,538 32.49
840 191.30
130 166.98
ERR
2,149 1,549 75.86
2,149 1,549 125.74
(100.00)
ERR
ERR
14.54
(37.14)
42.12
(58.32)
(100.00)
(35.19)
ERR
55.01
23.04
162.50
170.83
ERR
59.20
103.82
(100.00)
ERR
ERR
(T.3 continued over)
5. Cameroon C/RM/G/56
Page 39
1991 1992 1993 Variations (%)
Q V Q V Q V Q V
8. Crude petroleum 6,172,269 262,185 7,198,384 263,956 5,060 495 162,727 (29.70) (38.35)
France 2,779,453 114,509 2,528,908 93,356 1,209,013 39,971 (52.19) (57.18)
Netherlands 938,035 41,183 700,844 24,111 157,601 4,970 (77.51) (79.39)
Italy 700,396 29,302 939,432 32,032 912,438 27,357 (2.87) (14.59)
Spain 597,56i 22,432 1 655,605 63,346 1,827,462 60,060 10.38 (5.19)
U.S.A. 650,895 26,221 669,144 26,579 515,307 16,054 (22.99) (39.60)
Other countries 505,923 28,538 704,451 24,532 438,674 14,316 (37.73) (41.64)
ERR
ERR
9. Household soaps
Nigeria
Central African
Republic
Equatorial Guinea
Gabon
Other countries
10,037 4,037 5,987 2,210
3,220 1,279 1,802 676
1,232
371
5,141
73
509
124
2,091
34
863 320
717 246
2,605 968
0 0
3,341 1,172 (44.20) (46.97)
2,049 760 13.71 12.43
180 60 (79.14)
(100.00)
541 152 (79.23)
571 200 ERR
ERR
(81.25)
(100.00)
(84.30)
ERR
ERR
10. Natural rubber
France
F.R.G.
Italy
United Kingdom
Spain
U.S.A.
Other countries
11. Rough wood
France
Netherlands
F.R.G.
Italy
Portugal
Spain
Turkey
Japan
Other countries
12. Sawn woods
France
Belgium-Luxembourg
Netherlands
Italy
Spain
Other countries
13. Veneers
France
Italy
Other countries
14. Bulk cotton
France
F.R.G.
Nigeria
Portugal
China
Taiwan
Other countries
38,003
16,264
4,230
3,138
673
1,938
3,056
8,704
531,437
102,456
75,907
33,075
123,932
55,365
46,752
17,860
17,362
58,728
125,949
14,894
8,070
15,582
9,621
59,705
18,077
15,858
1,590
12,151
2,117
44,079
2,067
4,959
3,949
1,200
13,200
12,158
6,526
8,422
3,404
963
722
150
450
701
2,032
34,531
7,200
2,549
2,509
8,757
4,010
3,422
732
1,609
3,743
15,705
2,179
1,097
1,186
1,454
7,632
2,157
5,091
364
3,784
943
18,862
943
2,243
1,524
621
5,240
5,310
2,981
42,775
18,728
3,162
3,780
3,174
3,824
2,372
7,735
492,740
88,138
54,162
23,205
104,616
75,543
52,605
15,396
20,827
58,248
121,970
14,334
6,231
15,053
12,752
57,022
16,578
17,162
2,652
13,053
1,457
38,949
2,387
5,097
4,409
2,151
2,000
9,096
13,809
10,242
4,767
750
875
677
802
525
1,846
35,177
6,753
2,206
2,023
8,287
5,589
3,841
735
1,912
3,831
15,580
2,353
766
1,012
1,991
7,147
2.311
5,294
539
4,113
642
13,018
794
1,826
1,304
648
780
3,401
4,265
44,401 9,984 3.80
18,651 4,199 (0.41)
2,109 518 (33.30)
3,247 829 (14.10)
3,422 754 7.81
100.00)
3,841 996 61.93
13,131 2,688 69.76
ERR
577,172
104,669
50,553
26,255
121,053
67,925
53,817
23,172
71,944
56,784
118,429
13,066
11,019
17,759
13,265
39,194
24,126
12,152
4,010
9,755
1,387
51,200
924
439
5,479
2,359
1,568
7,945
32,486
39,698
7,694
1,762
1,885
9,085
4,758
3,665
1,182
5,700
3,967
15,028
2,054
1,710
1,301
2,034
4,455
3,474
17.14
18.76
(6.66)
13.14
15.71
(10.08)
2.30
50.51
245.44
(2.51)
(2.90)
(8.85)
76.84
17.98
4.02
(31.27)
45.53
3,668 (29.19)
235 51.21
2,949 (25.27)
484 (4.80)
19,192
285
120
1,587
681
474
2,216
13,829
31.45
(61.29)
(91.39)
24.27
9.67
(21.60)
(12.65)
135.25
(1.3 continued over)
(2.52)
(11.92)
(30.93)
(5.26)
11.37
(100.00)
89.71
45.61
ERR
12.85
13.93
(20.13)
(6.82)
9.63
(14.87)
(4.58)
60.82
198.12
3.55
(3.54)
(12.71)
123.24
28.56
2.16
(37.67)
50.32
(30.71)
(56.40)
(28.30)
(24.61)
47.43
(64.11)
(93.43)
21.70
5.09
(39.23)
(34.84)
224.24 Trade Policy Review Mechanism
C/RM/G/56
Page 40
1991 1992 1993 Variations (%)
Q V Q V Q V Q V
15. Raw aluminium and
scrap 66,337 27,565 60,085 21,345 61,862 19,613 2.96 (8.11)
France 38,007 15,958 18,400 6,990 25,151 8,076 36.69 15.54
Netherlands 27,839 11,579 40,685 14,355 36,200 11,509 (11.02) (19.83)
Other countries 491 28 1,000 0 511 28 (48.90) ERR
16. Aluminium sheet and
strip
Côte d'Ivoire
Central African
Republic
Gabon
Congo
Other countries
4,653
131
3,545
93
612 483
2,429 1,960
654 557
827 452
4,777 3,703
444 274
881 712
2,006 1,630
605 502
841 585
3,229 2,434 (32.41) (34.27)
136 81 (69.37) (70.44)
105 87 (88.08)
1,935 1,498 (3.54)
677 547 11.90
376 221 (55.29)
(87.78)
(8.10)
8.96
(62.22)
PRODUCTS LISTED
TOTAL EXPORTS
7,350,601 462,127 8,297,305 439,481
7.531.735 517,387 8,432,961 487,132 6,397 409 383,421
(100.00) (100.00)
(24.14) (21.29) Cameroon C/RM/G/56
Page 41
T.4 -Main imported products
(Quantity in tonnes - Value in millions of CFA francs)
1991 1992 1993 Variations (%)
Q V Q V Q V Q V
0. FOOD - BEVERAGE -
TOBACCO
1. Frozen fish
2, Milk (powdered and
frozen)
3, Rice in grains
4, Other maize
5. Wheat flour
6. Fine ground flour and
semolina
7. Margarines and fats
8. Preserved meats
9. Preserved fish
10. Sugar
11. Food products for
infants
12. Preserved tomatoes
13. Other food products
14. Wines and grape juices
15. Tobacco for smoking
515,415 69,212 438,987 55,651 305,817 36,737 (30.34) (33.99)
52,296 11,795 55,925 11,852 44,096 9,472 (21.15) (20.08)
10,817
101,365
10,607
241,296
2,107
5,592
13,035
1,868
3,492
4,305
4,440
1,720
4,440
1,720
4,307
7,387
1,125
14,949
954
2,498
1,695
2,341
846
3,717
1,291
6,021
1,291
6,021
4,633
143,560
8,611
113,333
1,720
2, 871
13,088
2,202
3.010
4,336
4,850
1,556
4,850
1,556
2,040
7,446
875
7,101
880
990
1,481
2,889
664
4 ,057
1,199
5,610
1,199
5,610
373
95,045
10,719
40,660
5,145
3,050
1, 218
2,240
11,368
1,555
3,543
4,777
4,611
1,538
197
6,631
600
1,954
650
1,048
537
1,031
1,281
1,960
786
3,062
988
4,503
(91.95)
(33.79)
24.48
(64.12)
199.13
6.23
(90.69)
1.73
277.67
(64.14)
(26.95)
207.01
(4.93)
(1.16)
(90.34)
(10.95)
(31.43)
(72.48)
(26.14)
5.86
(63.74)
(62.58)
92.92
(51.69)
(34.45)
(45.42)
(17.60)
(19.73)
1. ENERGY AND
LUBRICANTS
1. Lubricating oils
2.
Liquid gas
15,940
10,757
5,142
2,793 12,335
2,230 7,532
556 4,790
2,485 39,670
2,010 35,862
474 3,801
4,760 221.61
4,343 376.13
412 (20.65)
Il. RAW ANIMAL AND
VEGETABLE
PRODUCTS
1. Corn
3. Juices and vegetable
extracts
4. Raw tobacco
108,051 12,425 44,516 3,701 111,545 11,214 (150.57) 203.00
46,592 2,041 42,294 2,009 99,850 4,821 136.09 139.97
101 765
1,749 6,177
91
26
719
23
55 614 (39.56) (14.60)
1,538 4,503 5,815.38 19,478.26
III. RAW MINERAL AND
OTHER PRODUCTS
1. Pure sodium chloride
3. Anhydrovs gysum
plaster
4. Manganese minerals
5.
Aluminium oxide
IV. SEMI-PROCESSED
PRODUCTS
1. Malt
2. Cements-clinkers
3. Coal tar pitch
215,319
22,000
25,215
2,280
147,427
529,405
59,793
313,469
13,225
12,922 209,501 12,179 188,552 8,940 (10.00) (26.59)
354 32,527 523 61,810 993 90.03 89.87
344
338
10,637
44,787
8,662
4,799
1,090
14,376
2,000
181,011
628,640
65,233
364,483
4,553
276
270
10,534
52,252
9,819
5,218
333
39,789
2,300
139,380
505,443
45,772
282,031
7,129
389 176.77
339 15.00
7,518 (23.00)
39,265
6,480
4,453
485
(19.60)
(29.83)
(22.62)
56.58
40.94
25.56
(28.63)
(24.85)
(34.01)
(14.66)
45.65
(T.4 continued over)
91.55
116.07
(13.08) C/RM/G/56 Trade Policy Review Mechanism
Page 42
1991 1992 1993 Variations
Q V Q V Q V Q V
4. Feed for other animals 5,116 1,263 5,842 1,286 5,125 1,061 (12.27) (17.50)
5. Petroleum residues 56,875 2,890 18,118 756 30,075 1,374 66.00 81.75
6. Fertilizer 19,709 1,281 55,326 3,120 50,248 2,428 (9.18) (22.18)
7. Fragrant mixtures 251 811 348 1,154 481 1,298 38.22 12.48
8. Ethylene polymer 3,689 1,221 5,051 1,258 50,248 2,428 894.81 93.00
9. Vinyl chlorides 3,959 1,456 4,005 1,389 2,891 933 (27.82) (32.83)
10. Semi-finished iron
products 15,548 1,458 9,175 848 3,162 225 (65.54) (73.47)
Il. Polyesters 2,541 1,252 2,554 1,181 2,033 873 (20.40) (26.08)
12. Laminated products 13,646 3,051 1,435 2,672 8,933 1,644 522.51 (38.47)
13. Iron or steel extrusions 5,359 807 3,815 527 2,564 339 (32.79) (35.67)
14. Iron or steel wire 4,003 760 7,483 988 4,765 785 (36.32) (20.55)
15. Aluminium sheet 629 2.066 1.075 2.136 746 1.615 (30.60) (24.39)
V. TRANSPORT
EQUIPMENT
1.
2.
3.
4.
5.
Tractors
Public transport vehicles
Private cars
Trucks and vans
Special-purpose vehicles
18,411
942
1,272
10,502
3,878
441
26,014
1,778
3,587
12,399
5,361
754
17,818
1,111
714
10,192
3,647
293
25,155
2,240
1,409
12,710
5,926
621
14,712
1,620
779
8,147
2,774
123
21,855
3,500
1,659
10,921
5,043
723
(17.43)
45.81
9.10
(20.06)
(23.94)
(58.02)
(13.12)
5.25
17.74
(14.08)
(14.90)
16.43
VI. AGRICULTURAL
EQUIPMENT
1. Harvesters
2. Other agricultural
machines
3. Agricultural tractors
723
78
77
194
1,222
175
173
404
1,159 1,132
18 45
66
211
102
462
472
28
70
2
835
100
174
3
(59.28) (26.24)
55.56 122.22
6.06 70.59
(99.06) (99.34)
VII. INDUSTRIAL
EQUIPMENT
1. Glass receptacles
2.
3.
Steel tubes and pipes
Tube and pipe
accessories
4. Liquid pumps
5. Compressors
6. Cooking and heating
appliances
7. Filtration and purifying
appliances
8. Lifting machines and
devices
9.
10.
Civil engineering plant
Automatic processing
machines
20,445
2,122
6,274
556
285
495
41,153
854
3,048
1,045
1,554
1,126
318 1,045
217 1,114
1,051 2,149
1,934 2,529
98 2,684
16,156
2,877
4,950
309
279
485
32,659
1,210
1,719
714
1,284
792
13.082
701
3,073
262
269
197
24,820
245
885
(19.03)
(75.63)
(37.92)
413 (15.21)
1,530 (3.58)
324 (59.38)
(24.00)
(79.75)
(48.52)
(42.16)
19.16
(59.09)
199 717 366 677 83.92 (5.58)
176 958 205 1,118 16.48 16.70
642 1,208
1,206 2,322
83 2,349
500 912 (22.12) (24.50)
1,224 2,599 1.49 11.93
75 1,567 (9.64) (33.29)
(T.4 continued over)
.
.
.
. Cameroon C/RM/G/56
Page 43
1991 1992 1993 Variations (%)
Q V Q V Q V Q V
12. Electricity generating
machines
13. Electrical transformers
and converters
14. Telephone and
telegraphic equipment
15. Transmitters and
cameras
347 1,123
421 1,593
71 2,593
425 1,520 220 808 (48.24) (46.84)
521 1,716
82 1,519
581 1,295 11.52 (24.53)
111 1,632 35.37
7.44
15 740 8 261 11 2,007 37.50 668.97
VIII. HOUSEHOLD
CONSUMPTION
1. Sodium hydroxide
2. Medicaments
3. Soaps-surface agents
4. Disinfectants - retail
5. Plastic containers
6. Paper for domestic use
7. Books and brochures
8. Newspapers and
magazines
9. Glass household articles
10. Chairs and furniture
IX. INDUSTRIAL
CONSUMPTION
1 . Disinfectants without
packaging
2. Anti-explosive
preparations
3. Bindings and
preparations for moulds
4. Plastic tubes, pipes and
accessories
5. Other plastic articles
6. Truck and machine
tyres
7. Paper in
4801-02-04-05
8. Cotton fabrics (types 1
to 20)
9. Bricks, pavings, tiles
10. Other iron articles
11. Other zinc articles
12. Motor parts
13. Machine parts BTP
(8425 to 30)
14. Plumbing articles
38,178
13,435
2,481
1,950
950
1,470
1,142
808
44,238
1,267
18,354
1,073
1,751
1,884
482
301
45,007
11,595
2,295
2,152
311
1,388
1,597
566
43,284
1,099
16,828
993
845
1,718
641
1,735
36,572
4,232
1,740
1,525
480
1,045
1,465
518
521 1,909 427 1,339 429
1,438 1,070 2,006 556 701
1,090 1,823 941 1,469 372
37,810
533
14,500
745
853
1,243
610
1,789
(18.74)
(63.50)
(24.18)
(29.14)
54.34
(24.71)
(8.27)
(8.48)
1,806 0.47
245 (65.05)
325 (60.47)
(12.65)
(51.50)
(13.83)
(24.97)
0.95
(27.65)
(4.84)
3.11
34.88
(55.94)
(77.88)
90,246 76,189 92,475 79,295 79,139 63,254 (14.42) (20.23)
1,821 3,133 2,290 3,874 2,498 3,544 9.08 (8.52)
1,050
915 970 996 1,207 1,178 24.43 18.27
782 639 1,000 589 825 617 (17.50) 4.75
687
536
633
664
715
481
559
922
394
508
321
619
6,950 3,024 2,690 3,073 4,003 3,148 48.81
35,329 6,906 31,792 6,830 31,472 5,417 (1.01) (20.69)
1,126
8,844
924
1,785
238
743
430
2,048
1,306
878
1,314
1,630
2,270
1,955
541
13,785
809
2,227
242
678
355
923
2,170
948
1,521
1,643
2,107
1,762
486
8,796
595
1,631
181
736
292
677
974
576
1,108
1,251
2,106
1,408
(10.17)
(36.19)
(26.45)
(26.76)
(25.21)
(26.65)
(55.12)
(39.24)
(27.15)
(23.86)
8.55 (0.05)
(17.75) (20.09)
(T.4 continued over)
(44.90) (42.58)
5.61 (32.86)
2.44 C/RM/G/56 Trade Policy Review Mechanism
Page 44
1991 1992 1993 Variations (%)
Q V Q V Q V Q V
15. Bearings - transmissions
- shafts 341 2,166 308 2,079 53 339 (82.79) (83.69)
16. Parts in 85-17 31 837 40 1,748 111 1,632 177.50 (6.64)
17. Radio-TV appliances
(8525 to 28) 322 1,403 595 1,050 222 429 (62.69) (59.14)
18. Cutting appliances 373 1,641 494 2,626 194 575 (60.73) (78.10)
19. Control panels 154 1,304 73 925 90 666 23.29 (28.00)
20. Electric wires and
cables 2,429 2,219 4,112 4,525 1,590 2,199 (61.33) (51.40)
21. Vehicle and truck parts 1,010 2,355 1,345 2,714 820 1,903 (39.03) (29.88)
22. Clamps, plugs, rings 1,636 1,131 2,061 1,653 1,417 1,144 (31.25) (30.79)
TOTAL IMPORTS 1,552,132 330,955 1,506,593 307,793 1,295,003 249,489 (14.04) (!8.94) Cameroon C/RM/G/56
Page 45
T.5 - Principal trading partners
Exports Imports
1991 1992 1993 Variation 1991 1992 1993 Variation
r (%)
TOTAL WORLD
517,387 487,131 383,421
(21.29) 330,955 307,793 249,488 (18.94)
EEC
France
Belgium-Luxembourg
Netherlands
F.R.G.
Italy
United Kingdom
Spain
REST OF EUROPE
Switzerland
Austria
USSR
Finland
Sweden
Yugoslavia
Turkey
Poland
NORTH AFRICA
Morocco
Tunisia
ECOWAS
Nigeria
Rep. of Guinea
Senegal
Côte d'Ivoire
12,533
11,352
509
11,679
9,067
141
269
774
13,033
11,879
658
7,371
2,538
1,769
641
1,885
5,635 (56.76)
4,867 (59.03)
684 3.95
5,537
3,022
43
710
840
(24.88)
19.07
(97.57)
10.76
(55.44)
3,802 5,028 5,185 3.12
2,496 1,592 1,345 (15.52)
1,258 3,348 3,565 6.48
23,876
3,457
8,078
5,159
2,579
24,229
2,023
9,616
2,316
2,214
17,591
1,098
6,713
2,166
2,343
(27.37)
(45.72)
(30.19)
(6.48)
5.83
ECCAS
Gabon
Congo
Central African
Republic
Equatorial Guinea
Chad
30,835
10,341
4.982
25,848
7,521
9,789
26,199
6,544
12,390
1.36
(12.99)
26.57
5,679 3,871 2,888 (25.39)
5,454 3,440 2,873 (16.48)
3,552 2,821 1,343 (52.39)
VI. REST OF AFRICA
VIl.
1.
2.
AMERICA
USA
Canada
3. Brazil
VIII ASIA
1. Japan
2. Rep. of Korea
3. People's Republic of
China
4. Taiwan
840 2,147 1,743 (18.82)
31,966
29,453
2,352
110
17,519
2,173
3,008
30,741
27,947
74
115
13,665
2,292
3,418
29,300
18,728
146
8,613
22.780
6,596
5,839
(4.69)
(32.99)
97.30
7,389.57
66.70
187.78
70.83
5.244 863 380 (55.97)
5,332 3,497 1,593 (54.45)
1,143 1.303 2,493 91.33
35,495
23,959
3,326
7,598
38,745
20,095
1,790
26,261
17,211
2,204
5,267
38,381
20,277
1,735
24,461
17,828
2,456
2,927
36,701
19,813
1,352
6.85
3.58
11.43
(44.43)
(4.38)
(2.29)
(22.07)
2,625 2,753 4,202 52.63
1,977 1,678 1,582 (5.72)
IX. OTHER 87 7,519 196 (97.39) 394 296 529 78.72
1.
1.
2.
3.
4.
5.
6.
7.
II.
1.
2.
3.
4.
5.
6.
7.
8.
399,252
181,146
6,140
85,268
19,740
59,191
2,339
40,145
12,763
4,023
3
347
170
26
868
749
168
372,392
141,026
4,403
70,630
9,209
54,908
2.480
79,921
12,254
19
19
46
168
45
0
791
6,376
289,164
88,821
5,904
5, 033
10,881
47,880
4,015
71,657
2,867
104
0
861
97
29
0
1,269
487
(22.35)
(37.02)
34.09
(27.75)
18.16
(12.80)
61.90
(10.34)
(76.60)
447.37
(100.00)
1,771.74
(42.26)
(35.56)
60.43
(92.36)
207,320
116,279
14,166
10,087
28,358
12,948
10,953
8,309
19,939
3,366
5,136
2,743
2,707
1,991
329
1,260
738
196,875
106,972
13,179
8,127
28,967
10,681
8,837
13,564
14,890
3,329
3,070
2,072
2,803
1,857
630
668
720
153,232
84,085
10,941
8,254
17,646
8,118
6,214
11,014
11,829
2,632
1,305
1,707
2,853
845
121
1,084
357
(22.17)
(21.40)
(16.98)
1.56
(39.08)
(24.00)
(29.68)
(18.8()
(20.56)
(23.94)
(57.49)
(17.62)
1.78
(54.50)
(80.79)
62.28
(50.42)
IlI.
1.
2.
IV.
1.
2.
3.
4.
5.
V.
1.
2.
3.
4.
5.
540
422
81
467
450
7
635
515
79
7
21
(13.52)
6.64
(91.36)
(94.12)
(100.00)
17
16
0
6
6
87 7,519 196 (97.39)
394 296 529 78.72
IX. OTHER C/RM/G/56 Trade Policy Review Mechanism
Page 46
TABLE 5 - CAMEROON: BALANCE OF PAYMENTS
(in billions of CFA francs)
1992/93 1993194 1994/95
Estimated Budget Revised budget Revised budget
Balance on current transactions (257) (255) (217) (167)
Balance of trade 69 187 226 364
Exports, f.o.b. 435 630 666 926
Petroleum 207 223 220 262
Other 228 407 446 663
Imports, f.o.b. (366) (443) (441) (562)
Services (net) (303) (401) (404) (537)
Interest on public debt (150) (213) (217) (295)
Other (153) (188) (187) (242)
Transfers (net) (22) (41) (39) 6
Credits 61 ... 92 179
Debits (83) ... (130) (173)
Balance on capital account (29) 34 (67) (39)
Public debt (37) 40 (40) (74)
Project loans 46 42 25 68
Programme loans 47 199 145 216
Repayments (129) (201) (210) (359)
Petroleum sector, net (1) (24) (19) (34)
Others, private sector 8 (1) 6 69
Errors and omissions 1 20 (14)
Total balance (286) (221) (284) (205)
Financing 286 221 284 205
BEAC 58 (6) (32) (52)
IMF, net (16) 13 3 20
Other reserves, net 74 (19) (35) (72)
Reschedulings 17 612 626 226
Debt relief -- 84 83 31
Variation arrears 211 (468) (394) 0
Memorandum:
Current transactions/GDP -9.5 -8.8 -7.6 -4.6
Total balance/GDP -10.6 -7.6 -9.9 -5.6
Exceptional Financing/GDP 8.5 7.9 11.0 7.0
Exports by volume (percentage) -3.9 -3.0 -3.6 -0.4
Excluding petroleum (0.7) (5.6) (3.9) (12.1)
Imports by volume (percentage) -5.2 -23.2 -22.7 -5.5
Excluding petroleum (-8.3) (-27.8) (-27.1) (-4.7)
Terms of trade (percentage) 2.4 -0.3 2.1 2.6
Price of crude oil ($EU/barrel) 17.6 13.0 13.0 13.9
Rate of exchange (average)
CFA franc per SDR 374.5 610.2 609.4 806.0
CFA franc per $US 265.4 440.7 436.7 577.5
Sources: Data supplied by Cameroon authorities and estimates by the International Monetary Fund. MOVEMENTS IN ITEREST RATES OF THE BEAC AND BANKING TERMS
(After the reform of 16 October 1990)
Before 17.10.90 01.04.91 15.04.91 01.10.91 26.12.91 01.04.92 10.06.92 31.08.92 01.10.92 05.01.93 01.04.93 01.06.93 12.01.93 01.10.93 30.12.93 14.01.94 20.06.94 01.07.94 25.07.94
16.10.90 31.03.91 14.04.91 30.09.91 25.12.91 31.03.92 09.06.92 30.08.92 30.09.92 04.01.93 31.03.93 31.05.93 11.07.93 30.09.93 29.12.93 13.01.94 19.06.94 30.06.94 24.07.94 to
1. Treasury operations
.
- Treasury advance rate
- Treasury penalty rate
- Special deposits rate
4.50 5.50 6.50 6.50 7.50 7.50 8.50 8.50 8.50 9.50 9.50 10.50 10.50 10.50 11.00 11.00 11.00 11.00 11.00 11.00
5.50 6.50 7.50 7.50 8.50 8.50 9.50 9.50 9.50 10.50 10.50 11.50 11.50 11.50 12.00 12.00 12.00 12.00 12.00 12.00
10.00 5.50 5.50 5.50 5.50 5.50 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.50 5.50
2. Banking operations
- Old system
- Prime discount rate
- Bank penal rate
- Bank penalty rate
- Special deposuit rate
10.00 11.00 11.00 10.50 10.50 10.75 10.75 10.50 12.00 12.00 12.50 12.50 11.50 11.00 11.00 1l.50 14.00 12.50
6.50 abolished abolished abolished abolished abolished abolished. abolished abolished abolished abolished abolished abolished abolished abolished abolished abolished abolished
16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 16.00 18.00 22.00 20.00
10.75 10.75 10.75 10.75 10.75 9.75 9.75 9.75 9.75 9.75 9.75 9.75 9.75 9.75 9.75 9.75 9.75 9.75
- New system
(since 1 July 1994)
MONEY MARKET
- Bid rate
- Take-in rate
- Bank penalty rate
- Special deposits rate
B. Banking terms:
- Maximum lending rate
- Minimum borrowing rate
Nil 18.50 18.50 18.00 18.00 18.25 18.25 17.25 17.50 17.50 18.00 '8.00 17.00 17.00 17.00 17.50 19.00 17.00 17.00 17.00
NI 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.50 7.75 7.75 7.75 7.75 7.75 7.7'5 9.00 8.Q0 8.00 8.00
HEADINGS
12.50 11.00
14.00 12.50
20.00 20,00
6.50 5 .0
Page
47
C/RM/G/56
.
.
. |
GATT Library | yq474vr2232 | Trade Policy Review Mechanism. Canada. Minutes of Meeting | General Agreement on Tariffs and Trade, January 18, 1995 | General Agreement on Tariffs and Trade (Organization) and Council | 18/01/1995 | official documents | C/RM/M/51 and 0040-0053 | https://exhibits.stanford.edu/gatt/catalog/yq474vr2232 | yq474vr2232_90080453.xml | GATT_1 | 17,964 | 120,970 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
C/RM/M/51
18 January 1995
Limited Distribution
(95-0045)
COUNCIL
21-22 NOVEMBER 1994
TRADE POLICY REVIEW MECHANISM
CANADA
MINUTES OF MEETING
Chairman: Dr. M. Zahran (Egypt)
Page
2
1. INTRODUCTORY REMARKS BY THE CHAIRMAN OF THE COUNCIL
Il. OPENING STATEMENT BY THE REPRESENTATIVE OF CANADA
III. STATEMENT BY THE FIRST DISCUSSANT
IV. STATEMENT BY THE SECOND DISCUSSANT
V. STATEMENTS BY MEMBERS OF THE COUNCIL
VI. REPLIES BY THE REPRESENTATIVE OF CANADA
AND ADDITIONAL COMMENTS
3
8
10
11
19
VII. CONCLUDING REMARKS BY THE CHAIRMAN OF THE COUNCIL
31 C/RM/M/51 Trade Policy Review Mechanism
Page 2
1. INTRODUCTORY REMARKS BY THE CHAIRMAN OF THE COUNCIL
1. The Chairman (Dr. Zahran), introducing the third review of Canada's trade policies and
practices, welcomed the Canadian delegation headed by H.E. Ambassador Shannon, members of the
Council, and the discussants, Ambassador Luiz Felipe Lampreia and Mr. Ole Lundby. As usual, the
discussants would speak in their personal capacities.
2. The Chairman recalled the objectives of the Trade Policy Review Mechanism, as decided by
the CONTRACTING PARTIES on 12 April 1989 (BISD 36S/403). The Council was to base its work
on two reports, one submitted by the Government of Canada (C/RM/G/51) and the other by the
GATT Secretariat (C/RM/S/51). He reminded the Council of the procedures for conducting reviews,
introduced in May 1993 (document L/7208).
3. Australia, the European Union, Hong Kong and the United States had given advance notice
in writing of points they wished to raise during the meeting. These had been conveyed to the Canadian
delegation and copies were available to Council members. Canada C/RM/M/51
Page 3
II. OPENING STATEMENT BY THE REPRESENTATIVE OF CANADA
4. The representative of Canada welcomed this third opportunity under the Trade Policy Review
Mechanism to have the Council review Canada's trade policy. Many developments had occurred in
international trade since June 1992, and Canada had continued to liberalize its trade policies. Canada
had written its Government report in the form of a policy statement.
5. A global recession had created difficulties for economic growth in Canada, in particular for
employment, the control of public deficits, and for the business and consumer confidence that were
necessary for the functioning of a healthy economy. This environment had now improved and he was
optimistic that it would continue to do so.
6. Key developments in trade policy included the successful conclusion of the Uruguay Round,
the completion and the implementation of the North American Free Trade Agreement, and ongoing
implementation and operation of the Canada-U.S. Free Trade Agreement; all were major achievements
given the compressed time frame and the breadth and depth of these agreements.
7. In the Uruguay Round, Canada had met its principal trade policy priorities over the past seven
years, including: (i) a significant and comprehensive market access package; (ii) the full incorporation
of agriculture into international trade disciplines; (iii) multilateral agreements on trade in services and
on trade-related intellectual property; (iv) the development of fairer and improved trade rules,
particularly in the areas of subsidies and countervailing duties; (v) a stronger and more effective dispute
settlement system; and (vi) the agreement to establish a World Trade Organization to integrate the
results of the Uruguay Round and to provide a central forum for the management of the international
trading system. To reach these goals, Canada had agreed on important concessions in agriculture,
textiles and other areas.
8. The NAFTA was a precursor for a new kind of trading relationship between countries at different
levels of development. It also broke new ground by including provisions to deal with competition
policy, and, like its predecessor, the Canada-U. S. FTA, included provisions on investment and services.
Steps had been taken by all three parties in implementing the agreement, including the establishment
of working groups to address trade remedy issues. The Canada-U.S. FTA had improved bilateral trade
and investment, but trade disputes had raised the need for improved trade remedy rules.
9. Future policy directions included maintaining and expanding access to markets for goods and
services; concluding the outstanding negotiations on certain key service sectors; strengthening the
rules-based multilateral trading system; tightening further the international disciplines on the use of
subsidies; ensuring the successful launching of the WTO in all its aspects; providing a leadership rôle
in addressing new trade issues and prospective new regional trade fora such as APEC; and promoting,
once the WTO was in place, consideration of accelerating the market-opening measures of the Uruguay
Round. It has been Canada's experience in the FTA and NAFTA that, once trade liberalization measures
had been agreed, the market adjusted quickly to meet the new conditions.
10. Canada intended to participate fully in the establishment and operation of the WTO and its
bodies. In keeping with the multilateral character of the WTO and recognizing the importance of
bringing new economies into the multilateral trading system, Canada would continue to be actively
involved in accessions to the GATT/WTO. Canada would also participate actively in dealing with
unfinished business left over from the Uruguay Round and with the new trade issues that were emerging. C/RM/M/51 Trade Policy Review Mechanism
Page 4
11. In the NAFTA, Canada would conetinue to support a policy of open regionalism and encourage
a similar approach with its partners. This would also be the Canadian approach in relation with trading
partners in the Asia-Pacific region. In the past 10 days, Canadian ministers, together with their
colleagues in the Asia-Pacific Economic Cooperation (APEC) forum, had discussed and agreed upon
a programme to eliminate all trade and investment barriers in the region over the next twenty-five years.
Canada has been very active since the beginning of APEC in 1989 in shaping the APEC agenda to
reach this stage and would be working with colleagues in APEC, at the summit of the Americas in
Miami, and in Geneva over the coming months to develop concrete, practical proposals to advance
Canada's goals of more open markets and stronger international trade rules. It was Canada's view that
the APEC process, as well as the intended broadening and deepening of the NAFTA, could only serve
to strengthen and complement work in the GATT/WTO.
12. Canada would seek support for the principles of international consultations and rule-making,
avoidance of protectionism, and the complementarity of rules in international trade and the attainment
of societal objectives.
Foreign investment
13. The Secretariat's report was an objective review of developments in Canadian trade policies
over the past two years, including the liberalizing initiatives undertaken by Canada in the field of foreign
investment. No foreign acquisition of a Canadian business had been disallowed under the Investment
Canada Act. New regulations would allow greater foreign ownership in telecommunications, while
substantial foreign investment restrictions had been removed in the oil and gas sector.
14. In the GATS, Canada had undertaken to remove the remaining significant foreign ownership
requirements in the financial sector, going further than some of its major trading partners. Canada
had also extended to all GATS members the NAFTA preferential thresholds for review of acquisitions
as they apply to the services sector, as well as all sectors covered in the NAFTA. This made the NAFTA
investment thresholds universal among WTO members.
Tariffs
15. Through the GSP, free trade agreements, unilateral reductions or through multilateral trade
negotiations, applied tariffs had been steadily brought down and bound on a full range of imported
goods. Canada had joined the zero for zero agreements in the Uruguay Round tariff negotiations.
Customs duties in 1992 represented less than 3 per cent of total imports, and those collected on imports
from non-NAFTA sources had declined from nearly 7 per cent in the mid 1980s to below 5 per cent
currently. A review of tariffs had been announced, notably through the incorporation of concessionary
schedules into the main schedule and its consolidation.
Rules of origin
16. While NAFTA rules of origin on certain products were more stringent than FTA rules, others
were less so. The requirement that certain parts for certain goods originate in the region, was actually
simpler and more transparent than the FTA regional value content test which it had replaced, and had
been welcomed by producers and traders as an improvement and a reduction in administrative burden.
The NAFTA rules met the principles and standards set out in the common declaration on preferential
rules of origin under the Uruguay Round. They were an improvement over the FTA rules by being
more consistent and predictable, and by providing producers and traders with greater flexibility. In
particular, the regulations were interpreted, applied and administered uniformly by the three parties, Canada C/RM/M/51
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and addressed the ambiguities and problems under the FTA rules that underlined the Canada-U.S.
disputes.
Government procurement
17. The Canadian process of government procurement tendering was among the most open and
accessible in the world. Its transparency, as well as such innovative systems as the open bidding system,
ensured that information on tenders was readily available both to domestic and foreign suppliers. The
Federal Government was currently engaged in consultations with the governments of all ten provinces
with a view to preparing a final sub-central offer under the new Agreement on Government Procurement.
The Internal Trade Agreement, signed between the Federal, Provincial and Territorial governments
in July 1994 and entering into force in 1995, was an important step in reducing inter-provincial trade
barriers and in making provincial procurement more transparent.
Anti-dumping practices
18. Canada's Special Import Measures Act, under which anti-dumping actions were carried out,
was fully consistent with GATT obligations. The Canadian use of normal value, which was set in
advance, increased transparency for exporters. Canada's operation of anti-dumping actions included
a process of review five years after initial findings, that was now included in the Uruguay Round Anti-
dumping Agreement. Reliance on anti-dumping legislation may indicate that the relevant Canadian
mechanisms were well designed and efficient in determining where protection was legitimately needed
against injurious dumping. The remarkable stability in the anti-dumping process over both time and
across products attested to this efficiency. Canada continued to seek improved rules on this particular
issue in the NAFTA and in the WTO.
Textiles and clothing
19. The Uruguay Round Agreement on Textiles and Clothing contained an agreed schedule over
ten years for the complete phase-out of quotas negotiated under the MFA. For the first phase of
transition, Canada had announced its commitment to remove 16.3 percent of its imports from restraints,
beyond the minimum limit of 16 percent. During the transition period, quota levels in existing bilateral
restraint agreements would be subject to increases. However, Canadian manufacturers' sensitivities
to low-cost imports and the necessity for an orderly adjustment process would influence the choice
and timing of products to be integrated under the other phases of the ATC.
20. Preferential tariffs would also be available to importers from developing countries. The eight
and ten year phase-out of tariffs on textile and clothing imports from Mexico would also allow other
exporters time to adjust and become more competitive. Canada viewed the reintegration of trade in
textiles and clothing into the GATT as an important achievement, having significant economic benefit
to developing countries.
Agriculture
21. In keeping with its GATT/WTO commitments, Canada would convert its existing agricultural
import controls to a system of tariff rate quotas (TRQs). Most of the TRQs would come into effect
on 1 January 1995. Others would come into effect at the beginning of the relevant marketing year,
reflecting both the realities of harvesting and marketing considerations for these products, as well as
timing decisions of major competitors. Under the new system, existing import quota allocation
mechanisms would remain essentially unchanged. Quota growth for supply-managed commodities C/RM/M/51 Trade Policy Review Mechanism
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already subject to allocation but facing new access requirements, would be allocated with an emphasis
on promoting value-added processing activity in Canada.
22. Imports not currently subject to any allocation mechanism would be allocated as follows: (i) for
heavy cream, dairy blends and dry whey, and beef/veal, quota would be allocated on the basis of total
applications received; (ii) margarine, wheat, barley and their products would be allocated on a first-
come, first-served basis; and (iii) for butter, allocation would be to processors.
Telecommunications
23. The telecommunications sector in Canada was one of the most open markets in the world, with
competition in all market segments, as well as an open and transparent regulatory régime. Canada
had given full commitments on enhanced services under the GATS. He expected the ongoing negotiations
on basic telecommunications services to help remove foreign restrictions facing Canadian companies
operating abroad.
24. The Representative of Canada addressed specifically the Secretariat report's description of the
Bell-Northern Telecom relationship to clarify any misunderstanding. The Bell-Northern telecom
relationship was one between two privately-owned companies affiliated through a common holding
company, Bell Canada Enterprises. An understanding had been reached between Bell Canada, Northern
Telecom, and USTR whereby Bell and Northern agreed to terminate their supply agreement in effect
since 1939. The two companies had terminated their agreement so that Northern would be able to
receive U.S. Government advocacy support of exports from its U.S. operations. This question was
in his view one of national treatment for firms established in the territory of another contracting party.
Pulp and paper and forestry
25. Federal funding for forestry involved transfer payments under federal-provincial agreements
to provincial governments, not industry; these funds had been used in support of activities such as
planting and silviculture. Since 1987, the federal forest industry policy had been strongly against
providing operating subsidies, new capacity and modernization as forms of financial assistance to the
pulp and paper sector. Since that time, minor amounts for research and development and innovation
had been the only form of assistance to the sectors.
26. Canada was not in breach of the 1992 Rio Convention on Bio-diversity by allowing clear-cutting
of Clayquot Sound in British Columbia. Forestry practices applied in Clayquot Sound were based
on sound sustainable development principles which had been confirmed by numerous delegations from
Europe and elsewhere. The system of and the commitment to forestry management audits were in
place sometime before the threatened boycott occurred. The section of the Secretariat report on this
issue should be corrected or deleted as it did not provide an accurate or balanced view of Canada's
forestry practices and did not relate to trade policy.
Cultural industries
27. Canada was very interested in maintaining its national identity and promoting its cultural
industries. The Government believed that the publishing, broadcasting, film and video, and sound
recording industries made an essential contribution to national identity, sovereignty and the expression
of shared values. Thus, one of Canada's objectives in the Uruguay Round was to ensure Canada's
ability to protect and promote Canadian cultural industries. Canada C/RM/M/51
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28. The completion of the Uruguay Round had strengthened the open, rules-based system, so
fundamental to further international economic growth. Its successful implementation would lead to
higher incomes and a more positive environment for the conduct of international trade. Access to markets
for industrial products would be improved appreciably, with most tariffs being cut by at least one third.
The reintegration of textiles and clothing into the GATT was of key interest to many economies.
Agriculture would be fully integrated, tariffs would be cut by one third and export subsidy and domestic
support measures would also be substantially reduced. New areas had been brought within the framework
of multilateral disciplines and improvements had been made to trade remedy rules. There was now
an opportunity to put to work one of the major international trade and economic achievements in the
post-war period. Canada was committed to ratification of the Uruguay Round Agreements by the end
of the year and stood ready to accept the obligations and the benefits of further trade liberalization. C/RM/M/51 Trade Policy Review Mechanism
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III. STATEMENT BY THE FIRST DISCUSSANT
29. The first discussant, Ambassador Luiz Felipe Lampreia, saw Canada's intrinsic and peculiar
duality as one of its most distinctive features, as witnessed by its constitutional structure, whereby
provinces enjoyed a high degree of autonomy yet abide by the decisions of the Central Government.
The régime and instruments of Canada's trade policy seemed to contain the same duality.
30. He praised Canada's intention to reduce barriers to trade, strengthen the rules-based multilateral
trading system and tighten disciplines on the use of direct and indirect subsidies. The effective operation
of the WTO was one of the Canadian Government's top trade policy priorities.
31. He considered that new rules of origin, adopted under NAFTA, were likely to increase trade
diversion, notably in the clothing sector and motor vehicle component sector. He had read in the
Secretariat report that "the increase of the content requirement for NAFTA benefits, from 50 per cent
under the Canada-United States FTA to 62.5 per cent under NAFTA may penalize manufacturers
which buy from the cheapest source worldwide". The concerns here were twofold: trade diversion
resulting from NAFTA and penalization of Canadian manufacturers (and of their foreign suppliers).
32. The considerable increase in anti-dumping procedures in the last two years was also a matter
of concern. Canada was the third largest user of anti-dumping legislation with over 80 measures in
place, covering 23 products. The average margin of dumping in final determinations made over the
last two years reached nearly 33 per cent . Over two thirds of the 67 new investigations initiated during
this period referred to imports of steel products. Trade of these products was previously subject to
voluntary restraint agreements and controls on imports, whose removal was followed by the sharp rise
in the number of actions. The disparity between the high number of anti-dumping actions and the very
low number of countervailing measures might be related to the fact that Canada itself granted subsidies
in various forms.
33. A safeguard action under GATT Article XIX on boneless beef was in place in Canada. Imports
of this product exceeding a certain level and originating in countries other than the United States were
also subject to a 25 per cent surtax. Although the tariff quota had been considerably increased since
it was first set, there remained concerns with the continued recourse to Article XIX.
34. Another serious concern was related to heavy government subsidization of some productive
activities in Canada. According to the North-American policy group of the Dalhousie University in
Halifax, Nova Scotia, there were currently about 750 programmes of governmental assistance at the
federal and provincial levels in Canada. Direct subsidies and grants to businesses had been mentioned
as an impediment to Canada's external competitiveness.
35. Although industry in Canada was a significant beneficiary of subsidies, a large share of
government transfers were made in the context of agricultural programmes. The Government maintained
production and price management as well as import quotas. Grains and dairy products provided excellent
case studies of the different forms and consequences of subsidies to agriculture in Canada.
36. Support to the grains sector was provided mainly through stabilization programmes and
transportation subsidies. Domestic subsidization of wheat and other grains had decreased considerably,
but still amounted to over a quarter of Canada's crop value in 1993. The decrease in subsidies to the
production of grains was a step in the direction of commitments made in the Uruguay Round; Canada
was reviewing domestic support programmes for agriculture. Canada C/RM/M/51
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37. He noted the dairy sector's insulation from international trade by production quotas, administered
pricing and regulatory régimes. It appeared that Canada's tarification commitments in the Uruguay
Round would have no liberalizing effect on trade of such products. Initial and final tariff quotas for
powdered milk and cream were nil. In both cases, the average tariff equivalent in 1995 was
approximately 300 per cent, declining to 250 per cent in the year 2000. Tariffs would thus be as
effective as the quota restrictions in protecting this sector from foreign competition. The same comments
applied to Canadian poultry and eggs markets.
38. The problems faced by the Canadian fishing sector reflected the failure to internalize external
costs related to resource depletion. Government policies to promote intensive fishing had contributed
to the collapse in stocks, which in turn had dramatic effects on the Canadian Atlantic fishing industry.
39. The textile sector revealed increases of all sorts: an increase in exports in 1993, an increase
in employment in the same year, an increase in imports from the United States and, contradictory as
it might appear, an increase in the number and scope of restrictions imposed on imports from developing
countries. Unlike the share of clothing imports from the United States, which had increased from 9
per cent in 1990 to 16 per cent in 1993, the shares of the developing countries in textiles imports
had declined in the same period. In spite of this situation, the imposition of quantitative restrictions
had continued unabated. New measures had been introduced in recent years, affecting 18 countries.
A total of 39 countries were now subject to bilateral or unilateral restraints. He asked if the economic
situation of the textile and clothing sector justified the plethora of restrictions introduced in the last
three years. He also asked if, in view of the sharp increase in imports from the United States and
the large number of new restrictive measures, Canada was transferring the burden of import adjustments
to the developing countries.
40. The NAFTA was likely to increase trade diversion in textiles. The effects of the so called "yarn
forward" rules of origin were already visible: imports of textiles and clothing from the United States
increased, while those from non-OECD sources stagnated. He noted that, among "Quad" countries,
Canada currently had the highest level of tariff protection for textiles and clothing. Canadian trade
policy for this sector needed to be reoriented towards liberalization of restrictions on developing
countries. Unfortunately, this had not been the orientation of Canada in its recent notification of
integration of products according to Article 2.6 of the Uruguay Round Agreement on Textiles and
Clothing.
41. The wide range of dispute settlement mechanisms established under the Canada-United States
FTA, under the NAFTA, the GATT and soon under the WTO might create confusion for Canada's
trading partners. According to the Secretariat's report, when a dispute arose under the provisions of
both the NAFTA and GATT, the complaining party might invoke either forum to settle the dispute.
He asked what were the preise limits and conditions for a dispute to be brought under each one of
these mechanisms. Third parties might have a substantial interest in a dispute between Canada and
the United States or Mexico. Lawyers in Canada and in the United States were also reportedly worried
that the arbitration panels set up under the Canada-U.S. FTA could rule on specific bilateral disputes,
but did not have legal superiority over the U.S. Trade Act. C/RM/M/51 Trade Policy Review Mechanism
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IV. STATEMENT BY THE SECOND DISCUSSANT
42. The second discussant, Mr Ole Lundby, noted the increase in importance of the U. S. as a market
for Canada's exports and a source of imports. The export trends were a reflection of a marked
improvement in Canada's competitive position as well as the phasing-in of the Canada-U.S. FTA.
The implementation of the NAFTA and the strong economic recovery of the United States would
probably further increase the importance of the U.S. market for Canada.
43. The general trend of Canadian trade policy had been in the direction of liberalization, hand
in hand with a remarkable change in the structure of the Canadian economy towards sectors based
on high technology and skills, and a marked improvement in productivity.
44. Questions remained concerning the relationship between regionalism, multilateralism and the
resulting complexity of the tariff régime. The Canada-U.S. FTA, the NAFTA and the results of the
Uruguay Round clearly pointed in the direction of more open trade with lower tariff protection. A
complex tariff régime had, however, resulted with 9 to 11 different types of tariffs, which depended
on such elements as the end use in Canada as well as on origin.
45. To a certain extent this complex tariff régime was an unavoidable result of Canada's foreign
trade liberalization. Recognizing this complexity, the 1994-95 Budget contained an initiative to simplify
and streamline the Canadian tariff structure, including the reduction of tariffs on manufacturing imports.
He asked what the likely outcome of such a tariff simplification would be, and if the tariff régime was
still an important element of economic, trade and industrial policies. He also questioned what plans
the authorities had to explore the prospects for negotiating bilateral free-trade arrangements with selected
Pacific Rim countries, and if this would simplify or indeed add further to this complexity.
46. Canada's dependence on the U.S. market had increased from 75.8 per cent in 1990 to 80.9
per cent in 1993. This was a remarkable diversion, as well as an engine for growth in good times
and an effective brake in bad times. Canadian authorities considered the present balance between regional
and multilateral liberalization to be an optimal one, and whether a trading nation that had liberalized
to such a large degree vis-à-vis its neighbour could not lower barriers to trade on an mf.n. basis with
the rest of the world.
47. Turning to the relationship between federal and provincial competence, an issue that had already
been raised at the last Trade Policy Review, he asked a number of questions including whether Canada's
legal structure affected its ability to implement internationally negotiated trade commitments, and if
it was true that inter-provincial trade barriers had become a major problem to Canada, hampering
economic growth and job creation, as well as reducing the competitiveness of Canadian-based firms.
Preferential procurement practices by p. ovincial governments, their municipalities and other agencies
which restricted inter-provincial trade, cost Canadian taxpayers an estimated Can$4 billion per year.
This figure became even more interesting when viewed against the Canadian Government's own report,
where the benefits of the Uruguay Round were estimated at Can$3 billion per year.
48. The impact of provincial deficits on the government fiscal balance, macro-economic stability
and the exchange rate was another issue of concern. Over several years Canadian firms had controlled
costs better and improved productivity to a remarkable degree. The Government had, through prudent
monetary policy, succeeded in controlling prices and the Canadian dollar had depreciated in real terms.
He asked whether provincial deficits posed a threat to the stability of macro-economic policy and thus
to the predictability of Canada's foreign trade performance. Canada C/RM/M/51
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V. STATEMENTS BY MEMBERS OF THE COUNCIL
49. Most members of the Council expressed their appreciation of Canada's active participation
in all the activities of the GATT, Canada had given strong support, through its active rôle in the GATT
and the Uruguay Round, to a freer multilateral trading system. Its leadership and contributions in
such fields as training activities, the ITC, trade and environment, working parties on free trade
agreements, and management of the GATT/WTO were also praised. Canada was recognized as a key
player in reducing tariffs, with cuts of 40 per cent for industrial products.
50. The representative of Australia noted the positive developments in Canadian trade and industrial
policies, as well as the greater opening of its economy. The July 1994 Agreement on Internal Trade
was a welcome development to the effect that it eliminated barriers to trade in Canada.
51. However, Australia was disappointed by Canada's relatively high protection levels for certain
agricultural sectors and by its supply management system which continued to be the main instrument
of support for a number of agricultural products. In 1993 Canada had imposed restrictions on boneless
beef from sources other than the United States under GATT Article XIX.
52. She recalled that NAFTA had yet to be examined under GATT Article XXIV. Like any regional
free trade agreement, NAFTA would only make a more positive contribution to overall trade if it did
not raise barriers against third countries or create undue trade diversion. She asked if Canada or the
other NAFTA partners had made any assessment of the trade creating and trade diverting effects of
NAFTA. It appeared that a by-product of Canada's trade agreements had been the further complication
of its tariff. At previous reviews of Canada, contracting parties had raised the need to simplify Canada's
complex tariff system. She welcomed Canada's decision to consolidate and restructure its tariff, and
hoped that in this process of consolidation and restructuring, the very high rates on some agricultural
items would be reduced. She expected that Canada would take into account the ts of exporting
countries on particular products where tariffs may be increased or remission ammended.
53. Canada was to be commended for reforms such as those in the long distance telecommunication
market. Noting that the Secretariat report found that inconsistencies between the federal Governnent
and the provinces could have an adverse effect on internal as well as external trade, she asked whether
the Internal Trade Agreement would be widened beyond the present 11 sectors.
54. Multilateral and regional trade liberalization had brought considerable benefits to Canada, but
some significant sectors had been largely excluded from this process. Large parts of Canada's
agricultural sector, for example, remained virtually untouched by these liberalizing influences and the
benefits flowing from them. While import bans and quotas in supply managed areas such as dairy
and poultry, would be replaced by tariff quotas under the Uruguay Round agreement on agriculture,
the very high tariff rates applying from 1995 would effectively prevent trade beyond minimum access
commitments, thus allowing Canada's supply managed systems to remain in place. Canada's current
approach to tariffication might thus exclude any significant reform of its dairy and poultry sectors.
Subsidization and support policies in agriculture were other areas of concern.
55. The representative of the European Union noted that the EU remained Canada's second largest
trading partner and the second source of foreign direct investment in Canada. He noted the numerous
trade developments since the last review, including the NAFTA, the Internal Trade Agreement, and
the initiation of a tariff policy review. Tariffs had been abolished or reduced on certain inputs, as
was the case for certain consumer goods whose tariffs were considerably higher than those in place
in the United States. C/RM/M/51 Trade Policy Review Mechanism
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56. Canada was confronted with the constitutional problem of relative competences of provincial
and federal authorities. While the federal government could negotiate international agreements,
implementation could pose problems in areas under provincial jurisdiction, as witnessed by recent cases
on alcoholic beverages, and create potential difficulties in implementation of the Uruguay Round.
57. The European Union was currently negotiating a Mutual Recognition Agreement with Canada
on certification and conformity testing, which would be signed in 1995. Obstacles to trade at the
provincial level, including differences in norms, in packaging and labelling regulations, local inspection
clauses, prevented free access to the Canadian market. He asked what were the expected effects of
the Internal Trade Agreement and whether it would improve the situation for European exporters.
58. The European Union was concerned about the increased number of self-initiated anti-dumping
cases by Canada, as well as the injury standards applied to EU exporters. The recent safeguard action
on beef came in addition to countervailing duties imposed in 1986 on the same products originating
in the European Communities, which were at that time considered to be GATT-inconsistent.
59. The announced extension of NAFTA investment thresholds to all WTO members was welcome.
In contrast, there remained significant differences in treatment between NAFTA and signatories to
the Agreement on Government Procurement; large sectors were excluded from the scope of the
Agreement, and the provinces had so far made no commitment to liberalization.
60. Agricultural support programmes, although declining as a share of GDP, continued to distort
supply and trade, as witnessed by recent licensing practices of the Canadian Wheat Board affecting
pasta imports. Parma ham imports were still not authorized, although they had been admitted into
the United Sates five years earlier. The European Union also considered inconsistent with international
law the decision by Canada to extend custodial management on fishing beyond the 200 mile limit.
Finally, he noted that written questions had been transmitted to Canada in advance.
61. The representative of Hong Kong noted that Canada had a very complex tariff structure, which
featured 11 different tariff treatments, depending on the origin. Hong Kong was pleased that a
rationalization and simplification process had begun this year. It wished to know the expected timeframe
for the exercise, and more importantly, how it would be approached and what tariff changes might
affect the trade interest of trading partners.
62. Noting that in case of inconsistency between the NAFTA and the GATT, the former would
prevail unless stipulated otherwise, he asked how this would affect Canada's obligations under the GATT
and how this tallied with Canada's objective of making the GATT's institutional framework stronger
in the Uruguay Round negotiations.
63. Hong Kong noted that NAFTA and, indeed, Canada's FTA with the United States had led
to some trade diversion. For example, the FTA had coincided with increased imports from the United
States of both textiles and clothing, while the share of non-OECD suppliers had declined in the same
period. This illustrated the potential downside of regional trading arrangements. It seemed to Hong
Kong that LDCs were being asked to bear the brunt of adjustment.
64. Hong Kong was disappointed to note that while the negotiation for an Agreement on Textiles
and Clothing in the Uruguay Round were still going on in 1992 and 1993, Canada simultaneously
increased the number of items, as well as the number of countries that were subject to import restraint.
Hong Kong was even disappointed by the list of textile products proposed for the first phase of
integration. In respect of Hong Kong, only one item currently under restraint featured in the list. Canada C/RM/M/51
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This was not commercially meaningful and did not create the momentum for change which was the
idea behind the phased integration programme. It was also noted in the Secretariat report that textiles
and clothing remained one of the most protected sectors of the Canadian economy. Hong Kong urged
Canada to take a different approach in subsequent phases of integration.
65. Resort to anti-dumping procedures had increased considerably between 1992 and 1993, reversing
the continuous decline since the mid-1980s. Canada was the third largest user of this measure, and
there was an extremely high average margin of dumping, amounting to 33 per cent. He suspected
that anti-dumping was being used as a form of safeguard. Hong Kong noted that the reform of trade
remedy laws, as applied within NAFTA, had become a declared trade policy priority, and suggested
that this should not be looked at from a purely intra-NAFTA perspective.
66. Hong Kong recognised that Canada had long been a very constructive influence on multilateral
discussions and negotiations in Geneva, and that despite significant problem areas, Canada had been
a positive force in trade liberalization over the years.
67. The representative of the United States commended Canada for its consistent commitment to
promoting an open international trading environment, exhibited most recently by its rôle in facilitating
the successful conclusion of the Uruguay Round and the NAFTA. Canada had also undertaken to reduce
barriers to trade on a number of industrial products and to extend progress in areas such as services,
procurement, intellectual property protection and provincial powers affecting trade. Credit was deserved
for Canada's commitment to eliminate all tariffs in a number of sectors, including paper and paper
products, pharmaceuticals, beer, steel, toys, and construction equipment, among others, and to reduce
remaining tariffs by an average of 40 per cent over the next five to ten years. He joined others in
complimenting Canada for its support in helping to establish the WTO.
68. He welcomed Canada's three-year plan to rationalize its cumbersome tariff structure and
streamline multiple preferential, not-transparent régimes, which had expanded since the last review
to include 11 different systems. He was concerned that UR tariff-rate quotas would be implemented
through the expansion ok the Import Control List, whose current administration was not transparent;
the ICL commodities were not classified by their tariff number. The Government of Canada had also
restricted access to ICL commodities by allocating import shares to government-registered and/or
traditional importers.
69. He questioned the GATT consistency of "cost of service" charges and other barriers imposed
by provincial liquor control boards on imported wine. These charges should reflect market realities,
be non-discriminatory and should not exceed the actual costs associated with customs clearance and
international communications. He asked if the administration of the ICL would be made more
transparent, and if the revised ICL would be clearly defined in the Harmonized System with an open
procedure to review and comment on product descriptions.
70. Canada was commended for increasing the openness of its government procurement market,
notably by placing federal procurement of construction works and services under the disciplines of
GATT and NAFTA. A number of services were still excluded from the new GATT code. Provincial
procurement practices continue to discriminate against non-local suppliers because they were not bound
by the UR commitments. He encouraged Canada to commit its provinces to liberalize their procurement
procedures. He asked what were Canada's plans regarding the possible inclusion of the full-range
of procurement practices under the discipline of the U.R. Agreement, and if there was an agenda to
discuss commitments aimed at reducing provincial barriers to trade in procurement. C/RM/M/51 Trade Policy Review Mechanism
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71. With respect to agriculture, he welcomed Canada's vision to accept comprehensive tariffication
of its supply-managed commodities as required in the market access provisions of the Uruguay Round.
Canada had tariffied the quotas on some supply-managed commodities (yogurt and ice cream) that were
found, in 1989, to be inconsistent with GATT. It appeared that some products which previously entered
Canada free of any quantitative restriction had been included in the tariff-rate quotas for dairy products.
72. There had not been any significant change in Canada's regulations on bulk shipments. Waivers
to these rules were only allowed when supplies were not available from Canadian sources. There had
not been any change to the container size regulations that had granted preferential treatment to Canadian
processors. Imports of processed fruits and vegetables continued to be restricted to standardized
packages. Although Canadian regulatory changes in 1993 had improved access for some products,
exporters remained disadvantaged since Canadian processors received a two-year exemption from the
onerous requirements. He asked if these container size regulations would apply equally to domestic
and imported commodities following the two-year exemption.
73. He expressed concern about the operation of Canada's agricultural marketing boards, in particular
the lack of transparency in export pricing and the ability of the Canadian Wheat Board (CWB) to price
discriminate in export markets through its privileged position as a monopoly exporter. He asked how
the tariff-rate quotas would be allocated, and if access to tariff-rate quotas would be based on a
first-come-first-serve basis or discretionary licensing. He also asked whether Canada believed that
a measure that was found to be GATT inconsistent could be legitimized through tariffication, whether
actions would be taken to improve transparency in export pricing and reduce price discrimination in
export markets for wheat and barley, and whether Canada intended to report export pricing in compliance
with the Uruguay Round Understanding on the interpretation of Article XVII.
74. He applauded Canada for taking positive steps to liberalize trade in services, most notably in
long-distance telecommunications. He asked if Canada planned to expand the liberalization in its services
market.
75. The passage of the internal trade agreement was a laudable effort to decrease inter-provincial
barriers to trade, most notably abolishing certain discretionary practices among provincial liquor
monopolies. But restrictive practices and lack of transparency in areas such as alcoholic beverages,
agricultural marketing boards, and government procurement practices continued to pose problems for
international and domestic commerce. He asked in what ways the Government of Canada was working
with provincial Governments to ameliorate provincial regulations that impede the free internal flow
of goods and services in areas such as electric energy and agriculture.
76. He noted that since the last review, concerns had been raised by trading partners over
discriminatory measures, which had been implemented or proposed, affecting magazine publishing,
cable television, and direct broadcast satellite services. Canadian policy objectives related to the
"information highway" emphasized protection of cultural content, apparently at the expense of network
integration. In this context, he asked a number of questions including on the current status of possible
implementation of the magazine task force's recommendations by the Government of Canada, if Canadian
policy objectives related to the protection of Canadian culture would continue to come at the expense
of investment opportunities in Canada's emerging communication services market, how measures to
protect Canadian cultural industries had been reinforced, how Investment Canada determined whether
new business and acquisitions of existing companies in areas involving "cultural heritage"/"national
identity" were of net benefit to Canada, how the net benefit test was conducted, and if Canada was
of the opinion that only Canadian-owned broadcast services promoted Canadian culture. Canada C/RM/M/51
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77. With respect to environmental barriers affecting trade, he asked how Canada's recent legislation
allowing the stopping and searching of vessels outside the 200-mile limit could constitute an
environmental action and whether this was a manner of dealing with environmental challenges beyond
the country's border that Canada would recommend to other countries.
78. The representative of Argentina welcomed Canada's economic performance and its increasing
participation in world trade. However, the increase in imports had not benefited Latin America; between
1990 and 1993 imports from. this region had rather declined by 20 per cent. Canada was an outstanding
member in the multilateral trading system. Noting that trade policy was an important element in Canada's
economic strategy, he asked if this policy would be maintained or if changes would be considered in
order to reduce the State involvement in monopolistic enterprises at a federal and provincial level,
and adjust government regulations and practices which appeared not to be consistent with GATT/WTO
disciplines and provisions. Canada's trade policy was fragmented, with different tariffs and rules of
origin in the FTA, NAFTA and under the GATT, as well as differential treatment at the provincial
level. In addition, there were still a number of import restrictions. He also expressed concern about
a weak base for the establishment of a safeguard measure on bovine meat imports.
79. He welcomed the declining trend in Canada's Producer Subsidy Equivalent between 1991 and
1993, due to a decrease in producers' income subsidies and a partial reduction in transport subsidies.
However, he expressed concerns about the maintenance of agricultural import restrictions, production
quotas and price controls. He hoped that the Canadian Government would autonomously modify its
approach to the supply management system. He was also concerned that import restrictions on dairy
products would remain at the same level as before the Uruguay Round. Another areas of concern
for his delegation were the future quota allocation mechanism and the use of Article XIX.
80. He requested clarification on a number of issues, including export subsidies on wheat, how
the Canadian Wheat Board took consideration of market conditions and competitive factors, the import
prohibition of fresh fruits and vegetables when there was no pre-established local buyer, local content
provisions on grapes and wine, and Canada's view that there was no need for a reduction in. its AMS,
which also included transport subsidies. He noted that Argentinian wheat exporters had suffered serious
injury as a result of Canada's supply offer of around 1.4 million tonnes of wheat to the Brazilian market
at a considerable lower price. He recalled that the United States and Canada had agreed that NAFTA
rules would not prevent subsidized exports to Mexico. He wanted to know the true composition of
Canadian subsidies at all levels of government, including in the provinces.
81. The representative of the Czech Republic noted the active participation of Canada in the Uruguay
Round, and welcomed the high ad valorem tariff reductions in various sectors, as well as the recent
tariff policy review announcement. He expressed concern over tariffs in some sensitive areas like fabrics,
man-made fibres and yarns, footwear and dairy products, which exceeded 17 per cent. He asked whether
the review would result in a more substantial lowering of tariffs in these sectors, and if it would address
existing non-tariff barriers.
82. Noting that the anti-dumping measure applied to imports of waterproof rubber footwear from
the Czech and Slovak Republic had been in place for over 15 years, he asked if such a long-term
application was not an undesirable obstacle to trade. He requested information on the main characteristics
of the process currently under way to consider alternative trade remedy measures within NAFTA, and
how the results of such a process would affect third parties. C/RM/M/51 Trade Policy Review Mechanism
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83. Welcoming the decision taken by Canada to renew the General Preferential Tariff (GPT) on
products originating in the Czech Republic, he asked if ihe announced review would increase the
scheme's product and country coverage.
84. The representative of Mexico praised Canada's non-inflationary economic recovery. The recent
economic growth was driven by exports, which had also benefited from real exchange rate depreciation.
In this respect, he asked if Canada was not too dependent on its exchange rate policy. Noting that
the fiscal deficit, the public debt and unemployment rate were high, he requested information about
plans to address them.
85. He noted that Canada's provincial system had a negative impact on foreign trade by obstructing
the efficient control, by the State, over the implementation of trade laws and regulations in the whole
territory. Inter-provincial barriers also distorted internal and external competition. He asked for
additional information on any plans to solve this problem.
86. The representative of Finland, speaking on behalf of the Nordic countries, complimented Canada
on its rôle in the Uruguay Round negotiations. Because of a similar underlying philosophy between
Canada and the Nordic countries on trade matters, cooperation had been close and rewarding during
these years. The structure of productive sectors was another common denominator between the Nordic
countries and Canada. A clear recovery ofthe Canadian economy from the deep recession was becoming
evident; the export driven growth strategy combined with appropriate measures aimed at raising the
competitiveness of the productive sector were bearing fruit - although high unemployment remained
a problem.
87. He noted that growth in foreign trade was mainly based on trade with the United States, and
that the share of other countries was stagnant or actually decreasing. The Nordic countries hoped
that the NAFTA agreement would have wider trade creating effects.
88. He welcomed the elimination of the compulsory licensing for drug patents and a full 20-year
term of patents protection. He asked if the low spending on R&D by Canadian companies could be
explained by the extensive foreign ownership of the companies. Power-generating equipment still enjoyed
disproportionally high tariff protection. The multiplicity and lack of transparency of the tariff régime
would be effectively tackled through the on-going review of tariff policy. The sharp increase in the
number of anti-dumping investigations contrasted with previous trends. The trading system for dairy
products remained largely regulated through import quotas, production quotas and export programmes.
89. The Internal Trade Agreement between federal and provincial governments did not cover many
sensitive areas, such as agriculture, food, energy and provincial crown corporation procurement. He
asked if it was true that the Agreement covered only one per cent of existing inter-provincial barriers.
90. Noting that the proportion of European exports and imports in the Canadian market had declined
during the last few years, he asked how Canada foresaw the future of Euro-Canadian trade relations,
particularly in the aftermath of NAFTA.
91. The representative of Switzerland asked what were the expected effects of NAFTA on third
countries. Referring to the NAFTA "yarn-forward" rule of origin for textiles, he asked to what extent
the de minimis rule, which granted NAFTA treatment to textiles and garments whose foreign components
did not exceed 7 per cent of the total weight, was pertinent for such items as embroideries. He shared
the concerns expressed by others regarding inter-provincial trade and sub-federal procurement. Canada C/RM/M/51
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92. The representative of New Zealand commented on the high current account deficit and the
fact that net public debt reached 70 per cent of Canada's GDP, and asked about the Government's
plan on this issue. In the light of the NAFTA and the recent increases in bilateral trade, he asked whether
diversification of trade was still a priority. While tariffs in industry reached 8.6 per cent, those for
"tariffied" agricultural products would average 173 per cent at the end of the reform period. Details
were requested as to the exact applied tariff rate on products subject to tariffication in 1995, and
assurances that products previously freely traded would not be included as tariffied items. He welcomed
the reduction in the federal dairy subsidy, andjoined other speakers in regretting the continued licensing
of beef after the Uruguay Round.
93. The representative of Poland asked about the stage of implementation by the federal and
provincial authorities in adapting the domestic legislation to the new rules and disciplines resulting
from the Uruguay Round Agreements. Noting that some of these agreements had imposed an obligation
to bring domestic legislation under new disciplines before the entry into force of the WTO Agreement,
he asked if Canada intended to do so in the case of the Anti-dumping and Subsidies and Countervailing
Measures Agreements. He also asked if Canada would remain in the old Committees established under
the Tokyo Round Codes when it became a WTO Member.
94. He was concerned that the Federal Regulatory Review initiated in 1992, might result in an
increase of some non-tariffs barriers. Polish exporters were worried that new requirements, like Good
Manufacturing Practices, new health standards as well as packaging and labelling norms would adversely
affect imports offoodstuffs and textiles. He suggested that a reasonable transitional period for adaptation
to the new standards be provided.
95. Poland had been affected by an anti-dumping measure on rubber footwear since May 1979;
this measure had been renewed for the third time in October 1993, despite the continued absence of
Polish exports of this item since 1987. Polish exporters of alcoholic beverages were concerned with
access barriers in some provincial markets because of tightened requirements of the Liquor Boards.
In contrast, he welcomed the Canadian declaration designating Poland as a normal risk-investment
economy; this declaration would further encourage Canadian investment, particularly if it were followed
by the removal of the requirement of high credit guarantees for trade transactions and capital investment
in Poland. He was looking forward to further liberalization of Canada's market for small-sized joint-
ventures with Polish capital.
96. The representative of India praised Canada's positive influence in the Uruguay Round, notably
in such areas as trade and the environment, and services. He agreed with the second discussant on
the problems related to trade in textiles, which amounted to an aberration in Canada's overall trade
régime.
97. The representative of Hungary considered that certain sanitary measures were excessive
compared to those of similar countries, and actually prohibited the import of certain meat products,
notably salami from Hungary. Restrictions on internal trade in Canada had affected exports of
Hungarian wine.
98. The representative of Egypt shared Canada's views on the use of trade sanctions to impose
one country's standards on other countries. He noted that solutions had to be found through a process
of international consultation and rule making. In his view, the international trading system was
complementary, and not contrary to the attainment of broader social objectives. C/RM/M/51 Trade Policy Review Mechanism
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99. He appreciated the extension of the GPT system for a period of 10 years as from 1994, as
well as the broad coverage of beneficiaries and the volume of trade under this system. He noted that
the average ad valorem tariff on Canadian imports from GPT beneficiaries was higher than the average
tariffs on imports from NAFTA members, and hoped that the full review of the system would take
these elements into consideration. He also requested information about the regional distribution of
foreign investments.
100. The representative of Japan noted that further expansion of trade with the Asian-Pacific region
was one of the top priorities in the Canadian trade policy agenda, including expanding trade with Japan.
In the gradual shift of its trade structure from resource-based exports and merchandise imports towards
high-value merchandise exports, Canada was trying to re-orient its exportpolicyby establishing strategic
sectors. These efforts were made without irrational complaints about the openness of the Japanese
market or any discrimination against imports from Japan. Concerns were shared with other members
regarding the NAFTA and provincial trade policies.
101. Both federal and provincial governments in Canada restricted exports of raw logs and other
wood fibre, as witnessed by the measures taken by British Columbia and Alberta. The wood processing
industry in these provinces was able to buy raw logs and other wood fibre below world prices, so that
they could export wood products at very competitive prices. He asked about the GATT basis for these
export restrictions, and whether they were consistent with Article XX(g) of the GATT. He also asked
if these measures were taken in conjunction with restrictions on domestic production or consumption
or taken in order to support the domestic industry. Other questions included whether Canada intended
to eliminate export restrictions, whether the federal Government had taken reasonable measures to
ensure observance of GATT rules by the provincial Governments in this respect, and if these measures
were applied in order to export products to the NAFTA partners as well.
102. Japan was concerned that the safeguard measure on boneless beef was not applied to Canada's
NAFTA partners. Selective non-application of safeguard measures was in his view inconsistent with
Articles 1, XI, XIII, and XIX of the GATT, and not justified by Article XXIV:8(b).
103. He asked about the liberalization plans concerning tariffication of items in NAFTA trade, and
why Canada maintained high tariffs on certain industrial items not produced in Canada (6.5 per cent
for photographic films; 14.3 per cent for clocks; 9.7 per cent for electrical insulators of ceramics;
7.4 per cent for grand pianos). The elimination of the drawback scheme for exports to the United
States or Mexico was, in his view, another form of tariff increase. He asked for Canada's view on
the consistency of this elimination with paragraphs 4 and 5(b) of Article XXIV of the GATT. He also
asked what measures Canada intended to take in order to dampen the effect of the elimination of the
drawback system.
104. Noting that NAFTA allowed for the "regional value-content requirement" on automotive goods
to be higher than that required by the U.S.-Canada FTA, he asked for details on the differences of
such local content requirements on automotive goods between the NAFTA and the FTA. He questioned
if this was consistent with paragraphs 4 and 5(b) of Article XXIV of the GATT. He shared the views
expressed by others regarding procurement by provincial entities. Canada C/RM/M/51
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VI. REPLIES BY THE REPRESENTATIVE OF CANADA AND ADDITIONAL COMMENTS
General economic and trade performance
105. In response to questions raised about the rôle of exchange rates, the measures to control the
deficit, the rôle of trade in the economic recovery and the structure of trade, the representative of
Canada agreed that trade had quite clearly been the motor of economic recovery. Canada's GDP
depended to a very large extent on trade and it was for that reason that the Government had been
pursuing policies aimed at trade liberalisation within a framework of improved rules.
106. There had been a clear movement in the geographic distribution of trade towards greater
concentration on the U.S. market. This had to be seen against the backdrop of the 1991-93 period
in which the U.S. economy was among the first to begin its recovery from the recession and Canada
was well positioned to take advantage of that growth. Government policy was aimed at trade
diversification; this explained why Canada was actively pursuing trade opportunities in major markets
such as Japan, the European Union, through expansion of NAFTA, and why Canada had played such
an active rôle in APEC.
107. It was incorrect to state that there was "too great" a dependence on exchange rate policy. The
value of the Canadian dollar was market-determined, and interventions by the Bank of Canada were
on a very short-term basis, only to moderate extreme fluctuations. Monetary and fiscal policy had
an impact on the exchange rate. Canada continued to meet its targets for price stability, and the
Government was committed to medium term deficit reduction, so as to place the debt-to-GDP ratio
firmly on a downward slope.
108. The current fiscal situation had been presented by the Minister of Finance in a statement before
Parliament on 18 October 1994, reiterating the Government's long term objective to eliminate the fiscal
deficit. As an interim objective, the Government intended to reduce, by fiscal year 1996-97, the
budgetary deficit to 3 per cent of GDP compared to 6 per cent of GDP recorded for the current year.
Specific measures to that effect would be announced in late February.
109. The Government did not regulate the destination of Canadian direct investment abroad and
there were no restrictions on outbound foreign investment. However, to facilitate Canadian foreign
investments, Canada had initiated an active programme of negotiating bilateral agreements with
developing countries aimed at the promotion and protection of investment.
110. In January 1992, the Federal Government had revised its foreign investment policy in the Book
Publishing and Distribution sectors to conform more closely to the approach taken in other sectors
related to Canada's cultural or national identity (including the publication, distribution and sale of books;
magazines and newspapers; films; music; video and audio recordings; and radio and television). At
this time the Government had also strengthened its capacity to apply the definition of what constituted
a Canadian-controlled company through the incorporation of an anti-avoidance clause in the Investment
Canada Act (ICA). In addition, the announcement stipulated that (1) foreign investment in new business
enterprises in the industry would be limited to Canadian-controlled joint ventures, (ii) the acquisition
of an existing Canadian controlled business by a non-Canadian would only be permitted under
extraordinary circumstances; (iii) successful non-Canadian bidders for a Canadian book enterprise
would be subject to a net benefit test under the ICA; and (iv) indirect acquisitions of Canadian book
businesses would be subject to review under the ICA. C/RM/M/51 Trade Policy Review Mechanism
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111. In determining the net benefit of a prospective investment, the Investment Canada Act specified
that certain factors be taken into account including, the effect of the investment on the level and nature
of economic activity in Canada, and the effect of the investment on competition within an industry
or industries in Canada. With respect to cultural industries, a contribution to Canadian cultural
objectives was also important in determining net benefit. Policy statements had been articulated in
each of the cultural industry areas. The new liberalized investment thresholds (to be extended under
the WTO on an m.f.n. basis) did not include investment in cultural industries.
112. With Can.$6 billion in direct expenditures and another Can$1 billion in tax support, the Federal
Government was the largest investor in science and technology in Canada. Efforts to increase R&D
spending in Canada were numerous and included: (i) efforts to promote national or Canada-wide science
and technology networks (e.g., the Networks of Centres of Excellence, Strategic Alliances Program,
Human Frontier Science Program and the various programmes of the Natural Sciences and Engineering
Council); (ii) numerous amendments made to a variety of intellectual property statutes by a number
of omnibus bills, many of which were designed to fulfil Canada's GATT and NAFTA obligations (the
entry into force of a variety of intellectual property bills had created a more positive investment climate
in Canada by improving intellectual property protection thereby encouraging basic R&D in many sectors);
and (iii) more attractive corporate tax incentives for both small and large manufacturing companies
engaged in R&D. Up to half of the provinces also offered R&D tax incentives.
113. In 1992, the Department of Industry had completed the development of the Whole Enterprise
Strategy for the acquisition and diffusion of technology. This strategy now served as a framework
for the delivery of policies, services and programmes relating to technology acquisition and diffusion.
Ongoing support for the National Research Council's Industrial Research Assistance Program was a
key point of this strategy. Under this initiative, the Federal Government participated in a wide variety
of science and R&D oriented programmes whose objectives involved basic research and development
activities.
114. In 1994, the Government of Canada had announced a comprehensive review of federal spending
on Science and Technology. The federal Government would be releasing a new federal Science and
Technology review in the spring of 1995, intended to strengthen Canada's ability to take advantage
of science and technology and innovation.
Multilateralism and regionalism
115. Canada believed that multilateralism and regionalism were two sides of the same coin whereby
Canada was trying to find the best vehicles to further its objectives of expanding trade within rule-based
frameworks. With regard to the Uruguay Round, Canada had stated its primary objectives and had
indicated its determination to pass implementing legislation before year end.
116. A number of studies conducted by the GATT, the OECD and private sector institutions had
tried to estimate the quantifiable gains of the Uruguay Round and included Canada in their research.
Various researchers had estimated the quantifiable gains for Canada at between 0.2 and 1.2 per cent
of national income. In Canada, the Federal Department of Finance had conducted its own study using
a general equilibrium trade model ofthe Canadian economy and had estimated the quantifiable Canadian
gains of the Uruguay Round at least a 0.4 per cent increase in real income or Can$3 billion annually
when the agreement would be fully phased-in. This translated into an ongoing gain of Can$400 in
1993 dollars for a family of four. These figures likely underestimated the total overall impact since
they did not capture dynamic effects nor did they include trade in services. Canada C/RM/M/51
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117. Canada, and the other NAFTA partners, firmly believed that NAFTA was a trade creating
agreement and was consistent with GATT obligations. The first article that established the agreement
affirmed its consistency with GATT Article XXIV. The benefits of a GATT-consistent FTA were
in terms of world growth, from the gains in incomes and efficiency in resource allocation that arose
from trade liberalization between the trading partners. He looked forward to discussing these issues
at the GATT working party on NAFTA in eariy 1995.
118. NAFTA was an open agreement with provisions for accession by interested countries; Canada's
position was that NAFTA was, and would remain, open to any country able and willing to undertake
the NAFTA obligations, including those in the environment and labour side agreements. Canada believed
it was important to proceed successfully with the first accession to NAFTA before undertaking other
accessions, and had strongly indicated its preference for negotiations with Chile. NAFTA partners
and Chile were currently in preliminary discussion on this issue, but there had been no decision as
yet to start negotiations.
119. Having implemented NAFTA, Canada was especially cognizant of the need to maintain strong
trading relationships with other contracting parties so as to ensure trade diversity. As the EU was
Canada's second largest trading partner, a special importance was placed on Canada-EU trade. The
great majority of Canada-EU trade was without problems or disputes and the implementation of the
Uruguay Round Agreement presented real opportunities to increase bilateral trade and investment flows.
120. The disputes that had arisen in Canada-EU trade had proven difficult to resolve. Canada hoped
that the improved dispute settlement procedures, agreed to in the Uruguay Round, would result in
speedier dispute settlement in the future.
121. Canada remained strongly committed to trans-Atlantic trade relations. It continued to work
with the European Commission, pursuant to the 1976 Canada-EC Framework Agreement for Economic
Cooperation, to foster closer economic ties. In the months ahead Canada hoped to conclude an Agreement
on Science and Technology with the European Union. It was also negotiating an Agreement on Mutual
Recognition of Testing and Certification of Product Standards, and an Agreement on Customs
Cooperation. An Agreement on Mutual Protection of Integrated Circuit Topographies had been recently
implemented.
122. The so-called "NAFTA thresholds" would be given to all WTO members on an m.f.n. basis.
This commitment which had been included in Canada's UR-implementing legislation, would apply
both to goods and services.
123. A response would be provided in writing to the question of how the Government of Canada
could promote the strengthening of the multilateral trading framework as a trade policy objective when
NAFTA had been negotiated to take precedence over GATT to the extent of any conflict.
Federal/provincial issues
124. Canada was the Contracting Party to GATT and was bound by its obligations under Article
XXIV: 12. However, provincial governments might have to modify certain laws and regulations in
areas under their jurisdiction, particularly in the services sector. The provinces were fully consulted
and involved in developing the objectives and the negotiating positions for the Round. In the
negotiations, Canada had made no commitments in areas requiring changes to provincial legislation
without first gaining the approval of the provinces. C/RM/M/51 Trade Policy Review Mechanism
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125. The Internal Trade Agreement was a framework agreement based on the principle that
governments should ensure the free movement of persons, goods, services and investments across the
country. The Agreement contained general rules to apply prospectively as well as specific liberalization
commitments effective on the date of entry into force - scheduled for l July 1995 - and a list of specific
measures to be eliminated over time. The Agreement also contained commitments to future negotiations
to remove barriers or to expand the scope and coverage of disciplines in a number of areas. The
Committee of Ministers responsible for internal trade was also empowered to identify additional sectors
or activities for future negotiations.
126. The Agreement obliged governments to work toward the reconciliation of standards-related
measures either through the application of the principle of mutual recognition or full harmonization.
Some chapters, notably the Agriculture Chapter, contained more specific commitments to develop and
implement common national standards affecting the inter-provincial movements of particular products.
Negotiations were continuing on energy-related issues with a mandate to report back to the Committee
of Ministers by 1 July 1995. All Parties also undertook to ensure that their legislation and regulations
were readily accessible. The provinces and the federal government agreed that, should they adopt
or modify a measure that might affect the flow of internal trade, they would notify the other Parties
with an interest in the matter. Furthermore, there was a provision for all members of the Agreement
to maintain enquiry points.
127. The Agreement provided for a substantial liberalization of government procurement practices.
It covered all purchases of goods (over Can$25,000), services and construction (over Can$100,000)
made by all provincial and federal government departments and agencies. The Agreement was to apply
to all procurement by municipalities, academic institutions, schools and hospitals. Future negotiations
to expand the coverage to Crown corporations (e.g., public utilities) were to be carried out over the
next two years.
128. The Agreement also set out detailed rules concerning the tendering process, including an
undertaking to use electronic systems to facilitate access for all suppliers.
129. Canada was an active participant in the negotiation of the new Government Procurement
Agreement. At the time the negotiations concluded, Canada did not have a clear measure of the overall
value of the offers being made by some of the major participants in the negotiations and so was not
in a position to put forward an offer for coverage at the sub-central level. Canada did undertake,
however, to cover entities in all ten provinces on the basis of commitments obtained from provincial
governments and to provide the final list of sub-central coverage within eighteen months after the
conclusion of the new Agreement. Canada was confident that it would meet the deadline mentioned
in its offer, namely, mid-October 1995.
130. In addition, Canada fully supported the decision taken by the Committee on Government
Procurement to allow further negotiations to take place between the signing of the Agreement and its
coming into force in January 1996; it was prepared to continue discussions in 1995 so that the coverage
of the Agreement could be as broad and balanced as possible.
General trade policy questions
131. The Canadian authorities had already indicated that the tariff simplification review would be
conducted over a three-year period. Canada noted that there is no question that Canada has a very
complex tariff system. It was not designed with a view to complicate things. In fact, many of these
complications had benefited Canada's trading partners. There were three systems of preferences for Canada C/RM/M/51
Page 23
developing countries: the GPT, Commonwealth preferences and the Caribcan programme. In addition,
there were NAFTA rates of duty with the United States and Mexico, and other tariff preferences for
New Zealand and Australia. Trading partners had also benefited through the various autonomous
measures that Canada had implemented, such as concessionary rates and duty remissions.
132. The representative of Canada said that it was too early to speculate as to the possible outcomes
of this three-year review and whether it would also encompass unilateral liberalizations. Canada's
trading partners would be informed of developments in the course of the review and would be provided
with an opportunity to consult on proposals to simplify the existing tariff system. The review did not
address non-tariff measures.
133. On 31 January 1994, Canada had tabled legislation to extend its General Preferential Tariff
or GSP for a further ten-year period beyond its expiry date of 30 June 1994. The Government had
also announced that consultations would be held with interested parties on the possible extension of
GPT product coverage and reduction of GPT rates, particularly for the less developed countries. This
announcement had been made in view of the results of the Uruguay Round whereby, the margin of
the GPT tariff preference (the difference between the m.f.n. rate and the GPT rate) would be reduced
or eliminated. The Government would also examine the maintenance of GPT for countries which had
reached a high level of economic development. The Government had now consulted with interested
parties on the possible expansion of GPT product coverage and the reduction of GPT rates and would
shortly be publishing, for public comment, the draft results of this review.
134. Canada's Import Control List was administered in a manner that was fully consistent with
Canada's GATT obligations. Quota levels and details of administration were published and importers
had a right of appeal with respect to administrative decisions, including the right to appeal to the courts
of Canada. The system functioned efficiently, with permits delivered to importers in most major centres
within minutes oftheir application. Officials were constantly reviewing the administration of the Export
and Import Permits Act in order to respond to changes in trading practices and to improve the service
to the public. The ICL was defined in terms of individual products because the legislation, the Export
and Import Permits Act, referred to products rather than tariff lines. However, in the day to day
administration of the Act, product quotas were expressed in terms of a control code that was based
on the Harmonized System. Importers, therefore, knew exactly to which tariff lines the various quotas
related. This correlation had proven very useful in facilitating imports and the Canadian authorities
intended to continue this system. Canada would maintain import licensing for agricultural products
subject to tariff rate quotas in order to provide a degree of certainty to importers and exporters. With
respect to a few products-- margarine, wheat, barley and their products, and beef and veal for a
transitional period there would be no allocation of quota shares and import licenses would be issued
on a first come/first served basis. For products subject to quota allocation, the system was essentially
one of importer allocations . Licences would be issued automatically to importers with quota allocations.
To ensure the fullest possible use of these allocations, penalties would continue to apply for under-
utilization.
135. For all agricultural products that were subject to tariffication, individual import licenses would
be required only for in-quota imports; over-quota imports would come in under General Import Permits,
which might be freely invoked at time of importation and did not require a specific application. With
reference to Table AV.2 of the Secretariat's report, it had been correctly pointed out that, although
the ad valorem tariff equivalent in 1995 for broiler hatching eggs, for example, was 280.4 per cent,
the applied rate in 1995 would include the first of six steps in tariff reductions, i.e. 273.4. C/RM/M/51 Trade Policy Review Mechanism
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136. An answer to the question about the increase in the EU's share of the Canadian quota for
imported cheese following the enlargement of the EU would be provided in writing.
137. High tariffs on items not produced domestically was not a particularity of Canada, as witnessed
for example in the case of wheat and canola. A waiver system was in place in Canada for imports
of goods not produced domestically. The elimination of the drawback scheme for US or Mexico-bound
exports was designed to avoid double taxation of non-originating goods traded in the NAFTA; a new
drawback mechanism would be introduced.
138. In response, the representative of Japan sought details of the waiver system for goods not
produced domestically. The drawback allowed duties on parts exported from a third party to Canada
to be refunded when the finished product was subsequently exported to another NAFTA party.
Rules of origin
139. The representative of Canada considered that new NAFTA rules of origin for motor vehicles
provided a strong incentive to encourage the purchase of parts in North America in exchange for duty-
free trade in the NAFTA territory and provided a more accurate and transparent calculation of North
American value-added than the former Canada-US Free Trade Agreement (FTA).
140. Under the NAFTA, the value-added level rose in two steps over eight years from 50 per cent
to 62.5 per cent for cars, light trucks and their engines and transmissions, and from 50 per cent to
60 per cent for other motor vehicles and parts. The value-added level under the FTA was fixed at
50 per cent. The tracing requirement for automotive goods required that the value of certain non-
originating automotive parts imported from outside North America be included in the value of non-
originating materials used in the production of an automotive good regardless of whether the imported
goods had since been incorporated into originating goods. The tracing requirement provided for a
more accurate value-added calculation than existed under the FTA, allowing producers to include as
North American content any value-added to an imported part after it had entered North America.
141. Under the FTA, the value-added calculation was based upon a cost build-up equation. This
equation was at the centre of two trade disputes between Canada and the United States in 1991-1992.
The NAFTA equation (referred to as the net cost method), was a top down calculation, the starting
point being all costs reported on the producer's books. The NAFTA equation improved the transparency
of the value-added calculation and addressed the ambiguities of the FTA equation.
142. Referring to questions about different rules of origin applied to imports under different tariff
schemes, Canada would be actively participating in. the WTO harmonization of the Rules of Origin
work programme on non-preferential rules. Once completed, Canada might then be prepared to review
the harmonization of rules for other purposes including tariff treatments.
143. The representative of Japan considered that the new "tracing" method added considerably to
costs of production. Companies had to hire extra lawyers and purchase additional computers to ensure
that their products qualified for NAFTA treatment.
Anti-dumping and trade remedy actions
144. Canada, Mexico and the United States had agreed to seek solutions that reduced the possibility
of disputes concerning subsidies, dumping and the operation of trade remedy laws under NAFTA.
The three Govenments had established a trilateral working group on subsidies and another group on Canada C/RM/M/51
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dumping and antidumping duties. These groups would build on the results of the Uruguay Round and
on experience in regard to these issues. The working groups had been instructed to complete their
work by 31 December 1995. At this point in time it was premature to speculate as to the outcome
of these consultations and therefore as to what their subsequent effect might be on third parties.
145. Normal values were determined on the basis of an anti-dumping duty investigation conducted
by Revenue Canada. It was not a price undertaking as provided under Article VII of the Agreement
on Anti-dumping. Rather, it was a price below which dumping had been determined to had taken place.
It affected only those goods subject to an anti-dumping finding. The Canadian system was prescriptive
rather than retrospective in nature. By this method, exporters who cooperated fully in the investigation
could avoid payment of anti-dumping duties by pricing goods at or above the determined normal value.
This compared to the retrospective system where duties were paid regardless of the level at which the
goods were priced, and later refunded on review. It would be difficult to determine without extensive
research the proportion of imports subject to an anti-dumping Finding that were priced at or above the
normal value.
146. Depending on the solutions that might be found to transitional issues, Canada's intention was
to remain in GATT 1947 and in the Tokyo Round Codes for the acceptance period. He noted the
questions posed by several participants regarding the duration of anti-dumping orders, the renewal
of orders in the absence of trade, and indicated that answers would be provided in writing, as would
those on the GATT basis for restricting the export of logs.
147. The prohibition on imports of used motor vehicles had been in effect since the turn of the century
and was "grandfathered" by GATT's Protocol of Provisional Application. Under the FTA this prohibition
was eliminated as of 1 January 1994 with the United States. Under NAFTA, Canada negotiated, on
a reciprocal basis with Mexico, the phased elimination of the prohibition on used vehicles by the
year 2019.
148. In a further comment, the representative of Hong Kong asked what was the underlying reason
for the increase in anti-dumping actions, which reversed the previous trend.
Intellectual Property
149. Canada did not intend to make provisions for extending the term of a pharmaceutical patent
to compensate patent owners for lost time due to the delay required in obtaining health regulatory
approval.
Services
150. Canada, as an active participant in the ongoing negotiations dealing with financial services,
maritime transport, movement of natural persons, and basic telecommunications, was keenly interested
in further liberalization. Primary objectives remained to obtain full m.f.n. based results in each of these
sectors. The full extent of liberalization in these sectors would be conditional on Canada's assessment
of others offers. Canada would also be active in the working group on professional services, placing
particular attention upon the legal, engineering, and architectural professions.
151. Liberalization under the Internal Trade Agreement would also contribute to improving the
economic efficiency of the services industry, notably by removing impediments to labour mobility -
e.g., mutual recognition of workers' qualifications - and by the reconciliation/harmonization of regulations
and standards-related measures affecting service industries, such as road transport. C/RM/M/51 Trade Policy Review Mechanism
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152. According to balance of payments statistics (which did not take into account some key types
of services transactions and which underestimated the value of total trade in services) Canada's service
receipts increased from Can$22.4 billion in 1989 to Can$26.9 billion in 1993. At the same time,
Canada's services sector GDP increased from Can$326 billion to Can$341 billion. Exports of services
had increased more quickly than production of services. However, Canada was a net importer of
services; Canadian services payments over the same period increased from Can$30.6 billion to
Can$40.7 billion.
153. Between 1989 and 1993, the service sectors with the greatest increase in exports were travel
and business services. The business service category included insurance, consulting and other
professional services, research and development, transportation related services and commissions.
In the business service sector, which was by far the largest service export, the main destinations were
the United States, the United Kingdom, Germany, Japan, and France.
Sectoral issues
154. In keeping with its WTO/GATT commitments, Canada would convert existing agricultural
import controls to a system of tariff rate quotas (TRQ). As part of this process the government had
established a system of administrative guidelines for the allocation of TRQs. Canada considered these
arrangements to be fully consistent with its obligations under GATT/WTO.
155. On 3 November, the Government had issued a press release that provided extensive detail on
the establishment and administration of tariff rate quotas. This information was made available to all
contracting parties through their embassies in Ottawa. Most of the TRQ's would come into effect on
1 January 1995. Others would come into effect at the beginning of the relevant marketing year. He
noted that the United States would also be subject to Canada's Uruguay Round tariff rate quotas on
agricultural products other than beef, wheat and wheat products. Canada's approach to tariffication
was fully consistent with its NAFTA and WTO obligations.
156. It would be premature to speculate on the supply situation in the Canadian beef market in 1995
and future years. The tariff rate quota in 1994 under Canada's Article XIX safeguard for beef had
been established at 72,021 tonnes. The adjustment of this level to 85,021 tonnes had been taken in
response to particular market circumstances.
157. Canada and Australia had not been able to reach a mutually acceptable agreement on terms
of access to the Canadian market for Australian beef during the Uruguay Round negotiations; at that
time Australia rejected an offer of a 32,000 tonne country allocation for beef. This issue continued
to be discussed bilaterally. In order to minimize the possibility of import surges, Canada's TRQ for
beef and veal would be allocated on the basis of applications prior to the quota period, with priority
given to applications from processors. This method would allow beef to be imported when needed,
throughout the year. These changes would provide a stable import régime for beef and veal, in contrast
to the uncertainty associated with the existing Meat Import Act. In addition, Canada was offering duty-
free access on the in-TRQ amount, which had been set at a historically generous level.
158. Canada's support for the grains sector had been declining since 1991. Support payments under
the stabilization programmes were based on market conditions. As market conditions improved in
terms of increased price levels, less support was provided to the sector. As a budgetary reduction
measure, the Government's commitment towards transportation subsidies under the Western Grain
Transportation Act (WGTA) had been reduced by 10 percent for crop year 1993/94. This commitment
had been further reduced by 15 per cent for crop year 1994/95 to Can$560.6 million. In terms of Canada C/RM/M/51
Page 27
Canada's Uruguay Round commitments, Canada's total non-green domestic support in the coming years
would be well below Canada's commitment to reduce aggregate measure of support (AMS) by
20 per cent by the end of the transition period. Therefore, there was no need to make any changes
to support programmes in order to meet Uruguay Round requirements on AMS. Canada would meet
its Uruguay Round export subsidy reduction commitments. Recently introduced WTO implementing
legislation contained certain provisions which amended the WGTA to ensure compliance with the WTO.
159. GRIP and NISA were implemented by federal-provincial agreements that required non-mutual
termination notice of two fiscal years. Therefore, the basic GRIP and NISA programmes were expected
to remain unchanged for at least the next two years. While federal and provincial Ministers of
Agriculture were reviewing safety net policy and programmes, with a view to containing expenditures
and meeting international trade obligations, substantive change was not expected until at least late 1995.
On 18 November 1994, the federal Minister on Agriculture had announced, with his Saskatchewan
counterpar., a two year GRIP replacement programme for Saskatchewan. Although the programme
details were still being negotiated, the bulk of the funding was anticipated to be directed to the NISA
programme, a lesser amount to a low slung grains sector programme, and development initiatives.
Federal funding for safety net programmes would be roughly equivalent to 1994/95 levels. Effective
from the 1994 tax year, red meats and forages had become NISA eligible commodities in all provinces
except Alberta and British Colombia. These two provinces may enrol red meats in future years.
160. The Government was putting together a framework and mechanism within which the issue
of grain marketing systems could be thoroughly analyzed. Details regarding this framework were
not yet available. In 1993 it had been proposed that the Crow Rate be reformed from an export subsidy
to a domestic support measure by paying the subsidy direct to farmers instead of to the railways. This
proposal was introduced by the previous Government. The present Government was consulting with
grain industry participants and provincial Governments concerning reform of the Western Grain
Transportation Act. Decisions would be made in early 1995.
161. On. 2 August 1994, Canada and the United States reached a one-year Memorandum of
Understanding (MOU) regarding trade in grains. The MOU which took effect on 12 September,
established a Joint Commission on Grains which would examine all aspects of the two countries'
respective marketing and support systems for all grains and the effect ofthose systems on the Canadian
and U.S. markets and on competition between the two countries in third country markets. The objective
of the Commission would be to assist the two Governments in reaching long-term solutions to existing
problems in the grain sector. The Commission was to provide its preliminary findings and non-binding
recommendations to both Governments by 12 June 1995, and to conclude its work by 11 September
1995.
162. There was no intention to make fundamental changes to supply management for dairy as a
result of the Uruguay Round outcome; however, some operational changes to dairy supply management
to ensure compliance with Canada's obligations and to improve the functioning of the system were
under discussion with the industry.
163. Canada would provide details in writing to the question of when it would remove other prohibited
imports which were banned for the sole purpose of providing assistance to local industry. Written
answers would also be provided regarding the issues of standards applied to imports of meat that was
not heat-treated or vacuum packed (e. g., Hungarian salami), and of the non-appl ication of the safeguard
action on boneless beef to NAFTA partners. C/RM/M/51 Trade Policy Review Mechanism
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164. The representative of Argentina noted that imports of fresh fruits and vegetables without a
pre-arranged buyer continued to be prohibited, and sought clarifications regarding local-content
requirements on wine. The representative of the European Union sought further clarifications on the
way the Canadian Wheat Board intended to administer the annual TRQ for wheat, and considered that
a long term solution still had to be found for trade in pasta products.
Textiles
165. According to the most recent information, Canada's trade-weighted tariff for textiles and clothing
products would fall from the present rate of 21.3 per cent to 14.5 per cent at the end of the
implementation period, bringing it slightly below the trade-weighted level of the U.S. tariff. The
Canadian MTN offer represented a reduction of 32 per cent, which was higher than that of the European
Union and of the United States, and almost equal to the 33 per cent cut made by Japan. Fully 100
per cent of Canada's tariff lines in this sector were already bound. He welcomed the commitment made
by major exporters to bind and reduce significant portions of their textile tariffs. While Canada would
had been prepared to consider additional cuts in its textile tariffs, in the end this was not possible, due
to other developments in the negotiations.
166. While employment statistics indicated a resurgence in the Canadian apparel industry, this positive
development had to be viewed against the background of the situation that had prevailed in the earlier
part of the decade. The employment level was still below the 1991 level as shown in the Secretariat
report. It should be also noted that this level had been declining from earlier years. (In this respect,
employment in the textile industry had fallen from 69,800 in 1980 to 44,790 in 1993, a drop of
36 per cent. In clothing, the drop had been from 113,900 to 85,000 over the period, a 25 per cent
decline). The last few years had witnessed a significant reduction in the number of plants, an increase
in short-time and part-time employment as firms struggled to meet ever-increasing import competition.
167. As a result of the increase in low-cost imports and of the market disruption caused by these
imports, the Canadian Government had concluded bilateral restraint agreements with exporting countries.
These restraints had been reviewed by the Textiles Surveillance Body and found to be in conformity
with Canada's obligations under the Multifibre Arrangement. He also noted that a number of restraints
had been concluded or imposed on imports of countries that were participants neither to the GATT
nor to the MFA.
168. Canada was committed to the re-integration of this sector into the GATT and had participated
fully in the negotiation of the MTN agreement on textiles and clothing. In this context, Canada had
notified on 1 October 1994, the list of products that it would integrate on 1 January 1995. Canada
was the only Quad member to have integrated a category of products under restraints, even though
there was no such requirement. This action would directly benefit a number of restrained suppliers,
such as Hong Kong, the Republic of Korea, Sri Lanka, Macau, Pakistan and Thailand (as well as China
and Chinese Taipei).
169. Trade statistics did indicate an increase in bilateral textiles trade with the United States. This
increase was in keeping with the overall increase in bilateral trade under first the FTA and then the
NAFTA. In the context of Canada's overall textile and clothing trade, it should be noted that imports
from the United States were in high-value products whereas those from developing countries were
concentrated in low-cost products.
170. While the NAFTA rules of origin for textiles and clothing were more restrictive than those
of the FTA, their impact, however, had been exaggerated. For example, while the yarn-forward rule Canada C/RM/M/51
Page 29
would appear to limit opportunities for offshore fabrics to be used in the manufacture of garments for
export to the United States, the fact was that this rule did not represent any change from the FTA rules
of origin. In both cases, garments made from offshore fabrics did not meet the rules of origin and
could not qualify for duty-free treatment. They could enter however under the m.f.n. tariff.
171. Both the FTA and NAFTA provided for tariff rate quotas under which specified quantities
of non-qualifying products could obtain duty-free treatment. Under NAFTA, these TRQ's had been
significantly expanded, thereby resulting in additional opportunities for offshore fabric suppliers. It
should be noted also that the TRQ levels far exceeded existing export levels to the USA, thus providing
room for future growth. There was, in general, no change to the rule of origin for embroidery fabrics
of Chapter 58 from the FTA rules of origin. In fact, for most yarns and fabrics there was very little
change between the FTA and the NAFTA rules of origin; this was also the case with most made-up
articles, such as tablecloths which might incorporate some embroidery.
Export assistance programmes
172. The Export Development Corporation (EDC) recently adopted a new policy that recognized
that benefits accruing from Canadian exports were many and varied, and were not solely reflected
in Canadian content, the underlying determinant of qualification for EDC support under the old policy.
Under the new policy, all benefits to Canada could be considered in determining eligibility of an export
transaction for EDC support. The policy recognized that some benefits could be measured in immediate
payoffs, whereas others yielded longer term dividends. The policy was designed to encourage more
Canadian entrepreneurs to avail themselves of EDC services in pursuing export opportunities.
173. Examples of other benefits which could be considered, in addition to Canadian content, included
export of world mandated products, transfer of new technology/product lines to Canada, enhancement
of future business prospects as a result of a transaction; R&D spurring innovation; accelerated
development of high skill level jobs in Canada; or the development of a new export product, market,
or exporter. Canadian content was retained as one of the benefits, but with a reduced threshold ratio
of 50 per cent as opposed to the 60 per cent ratio under the old policy. On this basis, a transaction
with an optimized Canadian content of 50 per cent or higher would meet the benefits criteria without
further review. Transactions which did not attain the 50 per cent thershold would still be considered
for other benefits. A single benefit might well qualify a transaction which did not meet the threshold.
To further simplify the process, specific products or groups of products known to generate sufficient
benefits to Canada would be pre-approved for support.
Subsidies
174. Canada supported the improved disciplines on trade-distorting subsidies, as defined in the new
WTO Agreement on Subsidies and Countervailing Measures. Subsidies given by the Federal
Government, as well as by sub-federal or Provincial Governments, that distorted trade within the meaning
of the Subsidies Agreement, would be subject to the countermeasures provided in the Agreement.
Alcoholic Beverages
175. In recent years, there had been considerable liberalization of provincial liquor board practices
with the implementation of the recommendations of the 1987 and 1992 GATT Panel Reports on the
import, distribution and sale of alcoholic beverages by Canadian marketing agencies. Significant changes
in domestic beer marketing practices had resulted from the Canada-United States Memorandum of
Understanding on bser which had also been applied on an m.f.n. basis. C/RM/M/51 Trade Policy Review Mechanism
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176. The Internal Trade Agreement (ITA) would decrease barriers to internal trade upon
implementation in July 1995. Under national treatment, any changes would be extended to Canada's
trading partners. Given the changes cited above, the Canadian Government considered Canadian
alcoholic beverages marketing practices to be GATT consistent.
Electric and Electronic Equipment
177. Canada would provide written details on the Government's strategy to promote
telecommunications, computer services and software, and computer-assisted manufacturing systems,
and how the partnerships between governments and the private sector would work. Canada C/RM/M/51
Page 31
VII. CONCLUDING REMARKS BY THE CHAIRMAN OF THE COUNCIL
178. The Council has now conducted the third review of Canada's trade policies and practices.
These remarks, made on my own responsibility, summarize salient points raised during the discussion.
They are not intended to substitute for the Council's collective evaluation and appreciation of Canada's
trade policies and practices. Details of the discussions will be reflected in the minutes of the meeting.
179. Following a comprehensive opening statement by Canada, the Council's discussions fell under
the following five main headings:
(a) General economic and trade performance
180. Council members welcomed Canada's economic recovery in the two years since the last review,
and noted the rôle of trade as the engine of its recovery. In the three years to 1993, the direction of
trade had decisively shifted in favour of bilateral trade with the United States; it was suggested that
the NAFTA would accentuate this trend. Some participants noted the high level of internal debt, which
had reached 70 per cent of GDP, and questioned the potential impact of high fiscal deficits on macro-
economic and exchange rate policy; they asked how far exchange depreciation had conditioned the
growth of exports. A number of questions were asked about Canada's policy towards foreign direct
investment, including Canada's own investment abroad.
181. In response, the representative of Canada agreed that trade had played a major rôle in the
economic recovery. Canada had also been well placed to benefit from the U.S. recovery, but the aim
was to achieve greater diversification, hence Canada's active pursuit of other market opportunities,
including through APEC. Monetary and fiscal policies naturally had an impact on Canada's market-
determined exchange rate. Fiscal deficits were also being progressively reduced. Outbound foreign
investment was not restricted; rather, it had been facilitated by bilateral agreements. Details were
provided.
(b) Multilateralism and regionalism
182. Canada's rôle in achieving, and commitment to, the Uruguay Round results was praised by
all. Participants noted the commitment to eliminate tariffs in a number of key sectors, and to reduce
remaining industrial tariffs by an average of 40 per cent over the next five to ten years. The
liberalization of certain services sectors, procurement markets and new intellectual property protection
legislation were all welcome. Concern was expressed, however, about the level and administration
of the above-quota tariff rates to be introduced in agriculture as a result of the Uruguay Round.
183. Several participants raised questions about the implementation of NAFTA and, in particular,
its relation with the GATT in a number of areas, including dispute settlement. The potentially trade-
diverting nature of NAFTA rules of origin was another source of concern. Details were sought on
differences in local content rules on motor vehicles between the FTA and the NAPTA, and whether
the new rules were consistent with Article XXIV of the GATT. Participants also asked about Canada's
plans for future developments in regional cooperation, and noted that the expansion of trade with the
Asia-Pacific region had become a priority of Canadian trade policy. In this context, some participants
asked about the position of Europe in Canada's current trade policy objectives, noting that the share
of trade with European countries had declined.
184. The representative of Canada noted that multilateralism and regionalism were two sides of the
same coin, whereby Canada sought to advance its objectives of trade liberalization within rule-based C/RM/M/51 Trade Policy Review Mechanism
Page 32
frameworks. Canadian estimates of Can$3 billion in gains from the Uruguay Round were probably
underestimates; they did not capture the dynamic effects, nor did they cover services. NAFTA was
believed to be trade-creating and was open to others; it would be discussed in a Working Party in
1995. Discussions, but not yet formal negotiations, were taking place with Chile on its possible
accession. Despite some persistent trade disputes with the EU, Canada was also strongly committed
to fostering trans-Atlantic trade relations; the Canadian representative gave some examples of present
and planned co-operation which should lead to increased trade. He confirmed that NAFTA investment
thresholds would be accorded to all WTO members under Canada's Uruguay Round implementing
legislation.
(c) Federal-provincial relations
185. Several members welcomed the renewed efforts to remove inter-provincial trade barriers within
Canada, whose estimated costs to the Canadian economy exceeded the quantified benefits of the Uruguay
Round for Canada. Remaining restrictions to inter-provincial trade with effects on external trade were
identified in the fields of procurement and trade in alcoholic beverages and food products. Clarifications
were sought regarding the coverage and implementation of the July 1994 Agreement on Internal Trade.
186. The representative of Canada said that all provinces had been fully consulted on the
implementation of the Uruguay Round agreements and no commitments had been made without prior
agreement with the provinces. Rules established under the Internal Trade Agreement were scheduled
to enter into force on 1 July 1995. Further negotiations were underway. Details were given on
procedures for mutual recognition or full harmonization of standards, including in specific sectors,
as well as on the opening up of government procurement practices. Canada would make its offer under
the Government Procurement Code by mid-October 1995 and supported the initiative for further
negotiations during 1995.
(d) General trade policies and practices
187. The complexity of the Canadian tariff was criticized by some participants; at the same time,
they welcomed the reduction in tariff levels carried out autonomously, regionally and multilateralally
over the two years since the previous review. Tariffication in agriculture revealed extremely high
above-quota rates averaging 173 per cent. Questions were asked regarding the evolution of Canada's
GPT scheme. The recent move to simplify the tariff was welcome, and members sought further details.
In this connection, it was suggested that Canada might consider a move to global free trade on an m.f.n.
basis.
188. Several participants expressed concern on the level of recourse to anti-dumping procedures;
the duration of orders even when exports had ceased; new cases of self-initiation; and high dumping
margins in recent cases. Participants welcomed Canada's stated priority of reforming current anti-
dumping legislation within NAFTA, and asked what instruments were considered as replacement and
whether the reform, could not be extended to other trading partners.
189. The widening of government procurement markets subject to GATT rules was recognized by
participants, who nevertheless regretted that provincial discrimination remained after the signing of
the new Internal Trade Agreement. Canada was urged to include a larger number of Provincial Crown
corporations under non-discriminatory and transparent procurement rules.
190. Issues were raised relating to standards and other technical and environmental measures in
agriculture, fishing and forestry. Some participants noted that rules on bulk shipment, container sizes, Canada C/RM/M/51
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and inter-provincial trade in alcoholic beverages continued to be obstacles to trade. Canada was asked
to clarify the reasons for its decision to stop and search vessels fishing outside its territorial waters.
19 l In response, the representative of Canada noted that the tariff review would take place over
three years; it was, therefore, too early to speculate on the outcome. He noted that the existing
complexity was the result of preferences which had benefited many countries, including developing
countries. The review would not cover non-tariff measures. Legislation to extend the GPT had been
tabled, and consultations had just been completed on the product coverage and the reduction of rates.
The draft results of the review would be published shortly for comment.
192. He noted that Canada's licensing system was fully consistent with its GATT obligations and
gave details on the functioning of the system. Restrictions under the Import Control List were
administrated on the basis of HS items and were, therefore, transparent for importers. Only in-quota
imports under tariffied agricultural items would be subject to specific licensing, allocated on a first-come-
first-served basis; over-quota imports would enter under General Import Permits.
193. Rules of origin for motor vehicles under NAFTA were intended to encourage the purchase
of parts in North America and provide a more accurate and transparent calculation of regional value
added. Details were provided. Depending on the outcome of the WTO harmonization of non-
preferential rules of origin, Canada might review the harmonization of rules for other tariff treatments.
194. Within the NAFTA framework, trilateral groups were to complete, by the end of 1995, work
on subsidies and anti-dumping with a view to reducing trade disputes on such practices. An explanation
was given of Canada's procedures for determining "normal values", which were said to help importers
avoid the imposition of anti-dumping duties. Canada would remain in the Tokyo Round Anti-Dumping
and Subsidies Codes for the acceptance period of the WTO.
(e) Sectoral issues
195. Some participants observed that Canadian agriculture was still heavily protected and benefiting
from substantial government assistance. Participants noted the very high above-quota tariff rates resulting
from the Uruguay Round Agreement on agriculture. Clarification was sought regarding the rates-to
be applied in the first year of implementation. Points were made concerning the safeguard action on
boneless beef, which had been taken in a context of growth in the industry, and did not apply to NAFTA
partners. Some participants asked for clarifications regarding export pricing of grains.
196. Export restrictions on logs were perceived by some as potential subsidies to the domestic
processing industry. Continued protection of the "cultural" industries was noted. At the same time,
Canada was commended for its recent steps to liberalize trade in telecommunications services and improve
paten' protection.
197. Some participants voiced concern about recent developments in trade policy regarding textiles
and clothing. Both the geographical scope and frequency of import restricting measures had increased,
with developing countries bearing the brunt. Strong expansion of bilateral trade in textiles and clothing
with the United States was perceived as a potential sign of trade diversion.
198. The representative of Canada provided information on the size and administration of the various
tariff rate quotas to replace the existing system of agricultural import controls. The TRQs, to be
introduced on 1 January 1995, were consistent with Canada's obligations under the Uruguay Round.
The United States would, like other members, be subject to the Uruguay Round TRQs. The level C/RM/M/51 Trade Policy Review Mechanism
Page 34
of the beef and veal quota was based on negotiation, while the adjustment of the boneless beef action
under Article XIX was made in response to changing market conditions. Quotas would now be allocated
to domestic processors based on allocations in the prior period, providing for increased stability in
the market. Bilateral discussions on quota allocation were continuing with Australia.
199. Support for grains had been declining since 1991. The level of Canada's total "non-green"
domestic support in coming years would be even lower than its commitment over the transition period.
Canada would also meet its export subsidy reduction commitments. A Memorandum of Understanding
(MOU) with the United States on trade in grains was reached in August 1994, establishing a joint
commission to examine all aspects of the two countries' marketing and support systems for all grains
with a view to reaching long-term solutions to problems in the sector.
200. No fundamental change was expected in the dairy sector as a result of the Uruguay Round,
although there would be some operational changes to ensure compliance with Canada's obligations.
201. Trade-weighted average tariffs on textiles and clothing would fall from 21.3 per cent at present
to 14.5 per cent under Canada's Uruguay Round commitment and all lines were currently bound.
Because of low levels of unemployment in the sector and market disruption from increases in low-cost
imports, some new bilateral restraint agreements had been reached with exporters. Canada was
committed to the re-integration of the sector into the GATT. The products which it would integrate
as of January 1995 would benefit a number of restrained exporters.
202. A number of changes had taken place in recent years in import regulations on alcoholic
beverages, with considerable liberalization of provincial liquor board practices. Barriers would also
decrease as a result of the Internal Trade Agreement. Given these changes, Canada considered its
alcohol marketing practices now to be GATT-consistent.
Conclusion
203. Canada's trade policy is dynamic. NAFTA and the Uruguay Round have led to new or imminent
obligations and to trade liberalization in traditional and new areas; participation in APEC expands
horizons to fresh geographical links. The coming years would see further growth and change in Canada's
trade policies. I am confident that the WTO framework will provide the firm foundation for the coherent
and consistent application of all the trade policy measures to be taken by Canada in these different
contexts. |
GATT Library | sh757gr0370 | Trade Policy Review Mechanism. Hong Kong. Minutes of Meeting. : Addendum. Written Answers to Questions | General Agreement on Tariffs and Trade, January 11, 1995 | General Agreement on Tariffs and Trade (Organization) and Council | 11/01/1995 | official documents | C/RM/M/49/Add.1 and 0009-0040 | https://exhibits.stanford.edu/gatt/catalog/sh757gr0370 | sh757gr0370_90080434.xml | GATT_1 | 435 | 2,978 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
C/RM/M/49/Add.1
11 January 1995
Limited Distribution
(95-0021)
COUNCIL
5-6 October 1994
Original: English
TRADE POLICY REVIEW MECHANISM
HONG KONG
MINUTES OF MEETING
Addendum
Written Answers to Questions
The following communication has been received from the delegation of Hong Kong, responding
to questions raised by the two discussants during the Council meeting on the Trade Policy Review
of Hong Kong.
Co-operation between Hong Kong and China in the fields of product testing, accreditation and quality
certification
The Hong Kong Laboratory Accreditation Scheme (HOKLAS) was established in 1985 to upgrade
the standard of testing and management of laboratories, to confer recognition on competent laboratories,
and to promote the acceptance of their test results both locally and overseas. The counterpart
organizations in China are the China State Bureau of Technical Supervision and the State Administration
of Import and Export Commodity Inspection. Contacts between HOKLAS and these two organizations
have included visits to HOKLAS and encounters in international fora like the International Laboratory
Accreditation Conference. As both organizations have expressed interest in inviting HOKLAS to China
to brief them on laboratory accreditation, there may be more exchanges in future.
The Hong Kong Quality Assurance Agency (HKQAA) is a ISO 9000 quality management
certification agency established by the Government in 1989. There is at present no direct co-operation
with organizations in China in respect of ISO 9000 audits of companies in China. There may be more
co-operation in future as the HKQAA, together with the British Standards Institute (international training)
is now having discussions with the China State Bureau of Technical Supervision and the State
Administration of Import and Export Commodity Inspection on the provision of training for ISO 9000
assessors in China.
./. C/RM/M/49/Add.1
Page 2
Impact of different regulatory approaches in Hong Kong and China on economic integration in technically
advanced areas such as telecommunications
In the case of Hong Kong and China, there are no signs that the difference in regulatory
approaches has affected the development of telecommnunication networks and services between Hong Kong
and China. Telecommunications traffic to and from China has increased four times in the last five years
and IDD is now available to over 1,100 cities in China. This healthy development is expected to
continue.
In addition, Hong Kong businesses have successfully entered into cross-border telecom joint
ventures with China. China sees a strong need for developing telecommunications facilities as an
essential part of its economic infrastructure, and welcomes foreign investment in them. A significant
case in point is the recent announcement of a major telecom project in China involving Hong Kong
Telecom as a joint-venture partner. |
GATT Library | cy873jg4598 | Trade Policy Review Mechanism. Indonesia. Minutes of Meeting | General Agreement on Tariffs and Trade, January 18, 1995 | General Agreement on Tariffs and Trade (Organization) and Council | 18/01/1995 | official documents | C/RM/M/52 and 0040-0053 | https://exhibits.stanford.edu/gatt/catalog/cy873jg4598 | cy873jg4598_90080450.xml | GATT_1 | 9,712 | 68,968 | GENERAL AGREEMENT C/RM/M/52
18 January 1995
ON TARIFFS AND TRADE Limited Distribution
(95-0042)
COUNCIL
29-30 November 1994
TRADE POLICY REVIEW MECHANISM
INDONESIA
MINUTES OF MEETING
Chairman: H.E. Dr. M. Zahran (Egypt)
Page
1. INTRODUCTORY REMARKS BY THE CHAIRMAN OF THE COUNCIL 2
Il. OPENING STATEMENT BY THE REPRESENTATIVE OF INDONESIA 3
III. STATEMENT BY THE FIRST DISCUSSANT 5
IV. STATEMENT BY THE SECOND DISCUSSANT 6
V. STATEMENTS BY MEMBERS OF THE COUNCIL 7
VI. REPLIES BY THE REPRESENTATIVE OF INDONESIA AND ADDITIONAL
COMMENTS 11
VII. CONCLUDING REMARKS BY THE CHAIRMAN OF THE COUNCIL 18 C/RM/M/52 Trade Policy Review Mechanism
Page 2
1. INTRODUCTORY REMARKS BY THE CHAIRMAN OF THE COUNCIL
1. The second Trade Policy Review of Indonesia was held on 29 and 30 November 1994. The
Chairman (H. E. Dr. M. Zahran) welcomed members of the Council, the delegation of Indonesia headed
by Ambassador Hassan Kartadjoemena, and the discussants, Ambassador Don Kenyon of Australia
and Mr. Mohan Kumar of India.
2. The Chairman recalled that the purpose of the Trade Policy Review Mechanism was "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"
(BISD 36S/403).
3. According to the Decision taken on 12 April 1989, the Council was to base its work on two
reports. The report by the Government of Indonesia for this review was contained in document
C/RM/G/52 and Corr. 1 and the report by the Secretariat, drawn up on its own responsibility, in
document C/RM/S/52. Outlines of the main issues the discussants intended to address were contained
in document C/RM/W/22. Copies of written questions submitted by the delegations of Australia, Canada,
the European Communities and Hong Kong were available.
4. The Chairman then offered the floor to the representative of Indonesia. Indonesia C/RM/M/52
Page 3
Il. OPENING STATEMENT BY THE REPRESENTATIVE OF INDONESIA
5. The representative of Indonesia noted that lndonesia's trade-related pol icies were being reviewed
for the second time under the Trade Policy Review Mechanism. Such reviews, which Indonesia had
implemented domestically on an annual basis since the initial TPR review in 1990, provided a useful
instrument to examine overall trade policy trends in the context of broader macroeconomic factors,
and longer term development strategies.
6. lndonesia, a developing country, had made palpable progress since 1990. With annual average
per capita income of only US$760, and some 26 million inhabitants below the poverty line, poverty
eradication was the Government's major policy priority. Development objectives required economic
growth with equity. which in turn necessitated a stable macroeconomic environment. This was the
framework for Indonesia's export-oriented policy. Indonesia had averaged real annual growth of over
6 per cent from 1990-94, and kept inflation checked at below 10 per cent.
7. Macroeconoomic policies had successfully controlled mounting liquidity problems during 1990-92,
through open market operations by the central bank and the introduction of stricter prudential standards
for commercial banks. Over this period, the economy had overheated due to an expansionary monetary
policy. booming foreign capital inflow, and financial and investment liberalization. Steps were taken
to control excessive foreign borrowings, including the formation of the Commercial Offshore Loan
Team (COLT). Budgetary discipline was also maintained by adhering to the balanced budget principle.
Budget surpluses in 1989. equivalent to 1.4 per cent of GDP, gave way to deficits representing
1.4 per cent of GDP in 1992. The budget deficit was projected to fall to 0.6 per cent of GDP in 1993.
8. Although, Indonesia's overall balance of payments had been in surplus since 1986, aided by
considerable capital inflow. the current account was in deficit. Controlling this deficit to reasonable
levels of GDP was central to the Government's trade performance objective. The deficit, rising to
3.2 per cent of GDP in 1990, had subsequently fallen to 2 per cent of GDP. Foreign direct investment
had been strong: levels jumped from US$0.3 billion in 1985 to US$2 billion in 1993. Moreover,
portfolio investment had increased substantially since the mid-1980s, although it had declined in recent
years. Indonesia's international reserves in 1993 stood at $12.7 billion, equivalent to 5.4 months of
imports.
9. The Government had relentlessly pursued deregulation and debureaucratization, since higher
growth was seen to be dependent on greater openness and trade orientation. A more competitive
economy attuned to market signals helped to ensure that resources were being used efficiently. A good
example of deregulation was the foreign exchange system. Indonesia had for some time adopted a
freely convertible system where the exchange rate was determined by a managed float using a trade-
weighted basket of currencies. The Government was keen to continue diversification away from oil.
Non-oil exports had become the engine of growth and, accordingly, the Government had. since the
early 1980s. maintained a high pace of reform that was consistent with maintaining long-term social
stability.
10. Indonesia's policy reforms had successfully shifted Indonesia's trade performance away from
oil dependency toward manufactured exports: the share of oil exports had fallen from above 70 per cent
in the 1970s to under 30 per cent in 1993. Manufactured exports accounted for over four-fifths of
non-oil exports in 1993. The Government had was also aware that further export diversification was
needed to reduce excessive dependency on a handful of industrial exports. Electrical machines and
apparatus as well as footwear exports had grown dramatically in recent years. Geographical C/RM/M/52 Trade Policy Review Mechanism
Page 4
diversification of exports had occur n recent years, with 90 per cent of exports directed to 20 trading
partners, including mainly Japan, United States and Singapore.
Il . Since the initial Trade Policy Review. Indonesia had simplified import arrangements, improved
customs procedures, reduced tariffs and surcharges, extended export-processing zones, and eliminated
many non-tariffmeasures. In addition, foreign investment procedures had been simplified, the Negative
Investment List reduced, and 100 per cent foreign ownership allowed with no minimal investment limit.
12 . Domestic reforms, including tariffs, were consistent with Indonesia's international commitments.
Following the conversion of non-tariff measures to tariffs, Indonesia had in the Uruguay Round bound
95 per cent of its tariff at a rnaximum duty rate of 40 per cent. and tariffied agricultural products.
In services, Indonesia had made commitments in five areas. and steps had been taken to meet its
commitiments in intellectual property protection.
13. The Indonesian Parliament closely monitored changes in trade measures affecting domestic
competitiveness and consumer welfare. The system of close co-ordination between important ministries,
often initiated by the Coordinating Minister fo, Economics and Finance, had proved to be an effective
means of implementing trade liberalization. The Government recently had established a separate unit
to deal with all WTO issues.
14. The recent commitments made between Indonesia and other APEC countries to liberalize trade
and investment measures reaffirmed Indonesia's commitment to a more open trading system. Indonesia's
reforms were intended to be irreversible, at a pace consistent with social and political obligations and
the need to avoid social disruption. Indonesia C/RM/M/52
Page 5
III. STATEMENT BY THE FIRST DISCUSSANT
15. The first discussant (Ambassador Kenyon) referred to the substantial domestic and trade policy
reforms undertaken by Indonesia in moving its economy from one based on import substitution to one
open to imports. Such reforms, necessary to integrate the country into the global economy and to
improve Indonesia's trade performance, had reduced non-tariff measures. Import licensing had been
reduced; average tariffs had been lowered from 37 per cent in 1984 to 20 per cent at present; both
the level and coverage of surcharges had been reduced; and the investment régime was more open.
Although the process of change had appeared to slow since 1990, he hoped that the pace would again
quicken under REPELITA VI. Residual import licensing needed to be reformed, along with State
enterprises and tariff peaks, to ensure that the tariffication of non-tariff measures was followed by reduced
tariff rates. Continuing export controls also needed to be addressed.
16. Indonesia's institutional structure, especially the formation in 1985 of the Economic Policies
Deregulation Team and the Tariff Team in 1989, had played an important rôle in the reform process.
He requested further information on the operation of the Tariff Team, and suggested that Indonesia
should consider establishing an independent statutory advisory body to review policies as a means of
sustaining reform. Such a body would improve transparency and the policy formulation process.
17. Growth in intra-regional trade, including recent developments under the ASEAN Free-Trade
Area and APEC, should further aid Indonesia's market-opening efforts. Indonesia's exports had moved
away from oil, with Singapore, the Republic of Korea, China, Chinese Taipei, Australia and Hong Kong
increasing their relative share of Indonesian exports. Recent developments in AFTA included the
acceleration in its implementation from 15 to 10 years i.e. by 2003, and the recent expansion in scope
of AFTA to encompass agriculture, services and intellectual property issues. Indonesia, as Chair of
the APEC meeting held recently in Bogor, was a major player in the APEC announcement that open
trade and investment would be achieved in the Asia-Pacific area no later than 2020.
18. Indonesia's domestic reforms had enabled it to undertake commitments in the Uruguay Round
that would "lock-in" these reforms and reinforce the progressive integration of Indonesia into the global
economy. Such commitments also provided a sound basis for on-going reforms. Indonesia had accepted
the Final Act without reservation, bound 95 per cent of its tariff, albeit at ceiling rates in many cases
significantly above applied rates, and agreed to phase-out all additional import surcharges on bound
items. In agriculture, as a member of the Cairns Group, Indonesia had accepted to tariffy all non-tariff
measures and to bind all agricultural tariffs. It had also signed all key Uruguay Round outcomes on
subsidies, intellectual property and services.
19. Indonesia had already logged-up some very substantial achievements in trade policy reform,
with consequential benefits from trade expansion. It was important that the impetus of reform remained,
both through regional liberalization under AFTA and APEC, as well under the Uruguay Round/WTO
package. C/RM/M/52
Page 6 Trade Policy Review Mechanism
IV. STATEMENT BY THE SECOND DISCUSSANT
20. The second discussant (Mr. Kumar) welcomed Indonesia's trade and investment reforms. He
noted that trade reforms were important for Indonesia's continued export verification, which itself
was the best means for Indonesia to overcome externally-imposed constraints in traditional products
by major trading partners. Such constraints on Indonesian exports included: the annual manioc quota
of 825,000 tonnes set by the EC; textiles and clothing quotas imposed by the US, Canada, the EU
and Norway; and anti-dumping actions, such as those by the US and Australia.
21. The Uruguay Round outcomes had provided Indonesia with a set of rules that could be used
to further reform its economy. He complemented the work contained in the Government report using
the GTAP model to quantify the gains to Indonesia from the Uruguay Round. These estimates were
based on full implementation of the Uruguay Round. He questioned the impact of the TRIPs Agreement
on investment, and whether its implementation would involve social costs.
22. Indonesia's policies of industrial targeting combined with strategic public enterprises, in areas
such as cement, fertilizers, steel, transport equipment and BULOG, had, in his view, outlived their
usefulness. Policies in these sectors included high tariffs, non-tariff barriers, price controls and
investment restrictions. Indonesia needed to take the difficult step of privatizing many of these industries,
despite the social costs this would involve. He asked Indonesia for information on any plans that existed
for privatization.
23. He said that localization programmes, such as those used in Indonesia for motor vehicles, had
substantial limitations, and should, in his opinion, be used only as a stepping stone for acquiring
technology transfers and accompanying benefits. They were not a viable long-term arrangement. He
asked Indonesia whether plans existed for removing localization schemes.
24. An important aspect was the continued degree and pace of Indonesia's trade and other economic
reforms. Although Indonesia had achieved much, comments were sought from Indonesia on the view
that not enough may have happened since the last Trade Policy Review in 1990. Difficult areas for
reform remained. The import licensing arrangements were complex, and these underpinned State
monopolies and quotas. He requested details of any plans for future reforms. Moreover, tariff reforms
had tended to increase tariff escalation, thereby undermining some of the efficiency gains from tariff
reductions.
25. The second discussant also asked whether the model based on export-led growth through global
integration and open markets was correct, and if so, what were the implications for State intervention.
He also discussed the use of export controls for environmental reasons and to promote sustainable
development. Although such controls could, on a narrow basis, lead to inefficient resource allocation,
he thought that such policies could have a rôle to play, provided they were combined with broader
government controls designed to protect the environment. Indonesia C/RM/M/52
Page 7
V. STATEMENTS BY MEMBERS OF THE COUNCIL
26. The representative of Sweden, speaking on behalf of the Nordic countries, welcomed the
substantial progress made by Indonesia in reforming its trade policies to promote export-led growth.
She was pleased that Indonesia had ratified the Uruguay Round results. Within APEC, Indonesia
had encouraged countries to adopt the WTO undertakings, and had emphasised that APEC developments
would need to be open and consistent with the WTO. Indonesia had agreed in the Uruguay Round
to increase its tariff bindings to 95 per cent, at ceiling rates of 40 per cent. However, exceptions
remained, such as motor vehicles where tariffs as high as 275 per cent applied. Other trade barriers
existed, including domestic monopolies and price controls. Export restrictions, such as on logs,
depressed domestic log prices and provided an implicit subsidy to downstream users. These controls
failed to meet Indonesia's environmental goals of sustainable forestry development. Sweden would
welcome improved transparency of Indonesia's trading regime, dominated as it is by State enterprises
and monopolies, as well as private conglomerates. These anti-competitive arrangements, combined
with Indonesia's weak competition legislation, often lead to non-competitive behaviour. Sweden was
concerned with Indonesia's inadequate intellectual property protection, which provided insufficient
sanctions against such infringements, including in the areas of copyright, counterfeits and trade marks.
She sought details on those measures Indonesia would need to take to implement the TRIPs Agreement.
Commenting on Indonesia's efforts to strengthen its system of technical standards, the representative
of Sweden emphasized that it was important for these to incorporate existing international norms.
27. The representative of Australia complemented Indonesia on the continued trade-related reforms
made since the last Trade Policy Review, at both the multilateral and regional levels. Average tariff
rates had been reduced, surcharges rationalized and the coverage of import licences reduced from 1,100
in 1990 to currently around 260. Indonesia had participated actively in the Uruguay Round, individually
and as a member of ASEAN and the Cairns Group. It had ratified the Final Act, and engaged in regional
trade initiatives, including AFTA and APEC's far-reaching trade liberalization developments. Further
reforms. however, were necessary to improve resource-use efficiency and international competitiveness.
These included reforming designated strategic industries dominated by State enterprises. Dogged by
poor performance and economic inefficiency, these have been sheltered from competition through
government controls over investment and trade. Other areas of concerr included the use of countertrade
deals as part of government procurement arrangements, the proliferation of export controls, especially
on natural resource based products. These export restrictions encouraged the development of inefficient
downstream industries dependent on long-term government support. Moreover, financial support to
strategic industries remained obscure and their effects non-transparent.
28. The representative of Canada, noting that Indonesia was Canada's largest export market in
South-East Asia, hoped that Indonesia would continue its trade liberalization. He noted that Indonesia,
in signing the Final Act, had accepted new cbligations in many areas, including anti-dumping, customs
valuation and import licensing. Government procurement procedures in Indonesia still remained outside
internationally-recognized practices, and Canada would therefore welcome Indonesia's participation
in the WTO Agreement on Government Procurement. Although Indonesia had introduced several trade
and investment reforms during the past four years. aimed at attracting foreign investment, promoting
exports and diversifying the economy away from the oil and gas sector, a number of concerns remained.
Additional information was sought on a number of these, including Indonesia's complex and non-
transparent import licensing system; the rôle played by State-trading agencies and public enterprises,
vested with sole importation rights which should be notified to the GATT under Article XVII; different
rules-of-origin under the AFTA between Indonesian exports and imports; and the need to ensure that
tariff reductions were applied on an equal basis on directly competing products, such as for soya and
canola products. The Canadian representative welcomed the May 1994 investment liberalization package C/RM/M/52
Page 8 Trade Policy Review Mechanism
which opened-up several service industries, such as sea ports, telecommunications, railways and civil
aviation to joint venture arrangements, with a minimum domestic ownership of 5 per cent. He invited
Indonesia to bind these changes in telecommunications and maritime transport through the GATS.
29. The representative of the European Union complemented Indonesia for its continuing trade
and investrnent reforms since the last Trade Policy Review, and encouraged Indonesia to pursue the
pace of reforms with determination. Combined with sound stabilization policies, trade-related reforms
taken both within a multilateral and regional context, have increased Indonesia's trade performance
and diversification, and added substantially to economic growth. Despite commendable achievements,
however, Indonesia's trading régime remained quite restrictive. Trade barriers included high tariffs
and surcharges, with average tariffs of 20 per cent, and a complex licensing system. Imports of motor
vehicles and alcoholic beverages were two examples of markets where imports remain virtually excluded
by high tariffs and surcharges; discriminatory luxury sales taxes; and restrictive import licensing
requirements. According to the EU representative, preshipment inspection was now slower following
transfer of these functions from SGS to PT Surveyor Indonesia; average inspection time had increased
from 1-2 days to 8-10 days.
30. Indonesia's tariffschedule remained characterized by substantial tariffescalation and dispersion
favouring particular sectors. These practices could result in selective rather than general tariff reforms.
The EU representative sought clarification on the final objectives of Indonesia's reform programme.
Although Indonesia had offered to bind 95 per cent of its tariffs under the Uruguay Round, most were
at ceiling levels of 40 per cent. Unbound items, such as automobiles and components, iron and steel,
some chemical products and alcoholic beverages, continued to have much higher tariffs.
31. Import quotas existed on wheat, soybeans and other sensitive products, and certain chemicals
and plastic products were banned. Indonesia was asked to bring its quotas into conformity with GATT,
including making information available on product coverage and levels. The EU was concerned that
changes to Indonesia's sales tax system in 1993 had discriminated against imports of most non-alcoholic
drinks, two-wheeled motor cycles and sports equipment. This was on top of the long-standing
discrimination against imported cigarettes by excise duties. Government procurement practices in
Indonesia discriminated against foreign suppliers, with clear preference being granted to local firms.
Public tenders were used sparingly, and foreign suppliers were required to engage in countertrade.
Foreign firms, in general, were prevented from competing in the generic drug market, and foreign
joint-ventures were ineligible to tender for public pharmaceutical contracts.
32. Despite recent investment reforms, foreign direct investment remained subject to extensive
regulation. Some 33 sectors were on the Negative List, closed to investment, and national treatment
was generally not granted to the majority of foreign-held enterprises. Performance requirements could
be imposed on some foreign producers. Entry trade barriers existed in most service sectors, such as
accounting, law and retailing. In addition, insurance and banking sectors were subject to extensive
requirements over joint ventures, ownership, capital and opening of branch offices. Indonesia's
intellectual property protection was inadequate, and the EU representative encouraged Indonesia to
rapidly implement the TRIPs Agreement, and tojoin the various multilateral conventions on intellectual
property rights.
33. The representative of the United States welcomed Indonesia's economic reforms aimed at shifting
from an import substitution to a market-oriented export-led economy. He applauded Indonesia's rôle
in APEC aimed at promoting the elimination of trade and investment barriers, but thought that Indonesia
should have played a more constructive rôle in the Uruguay Round by accepting more meaningful
multilateral commitments. He asked when Indonesia planned to make the next tariff cuts under the Indonesia C/RM/M/52
Page 9
CEPT Scheme. The US commended Indonesia's foreign investment liberalization, including opening
of harbours, electricity generation, telecommunications and shipping in June 1994. He wanted to see
other service and retail sectors liberalized.
34. Marketing arrangements for major agricultural products, such as wheat, rice, soybeans and
soybean meal, including BULOG's import monopoly and pricing practices, had been serious trade
impediments. He sought information on BULOG's future rôle following the Uruguay Round, and
whether any steps were planned to bring the country's agricultural quotas and other non-tariff barriers
into conformity with the Agriculture Agreement. Indonesia remained on the special "301" Watch List
in 1994 due to weak intellectual protection legislation, and he asked details of Indonesia's plans for
implementing the TRIPs Agreement. The US representative raised a number of issues regarding
Indonesia's labour laws and worker's rights.
35. The representative of Hong Kong congratulated Indonesia for its substantial economic
liberalization programme implemented since 1990, and encouraged it to phase-out remaining restrictive
trade measures.
36. The representative of Brunei Darussalam, on behalf of other ASEAN countries, paid tribute
to the rôle played by Indonesia in regional and political stability. Market-opening measures had helped
promote Indonesia's economic and trade diversification. He applauded Indonesia's commitments to
implement the CEPT by 2003 under the AFTA, and the recent leading rôle it played in the APEC
summit in Bogor.
37. The representative of New Zealand applauded Indonesia's sound economic management and
on-going trade and investment reforms, such as the packages introduced in 1993 and 1994. Such reforms
had enhanced Indonesia's international competitiveness through increased import competition.
Nevertheless, Indonesia needed to address inefficiencies in many industries, such as agriculture and
food processing, through lower, more uniform tariff rates. New Zealand supported Indonesia's
membership of AFTA, provided it remained outward-looking and GATT-consistent, as a useful step
towards trade liberalization and economic growth in South East Asia. Indonesia's offer in the
Uruguay Round to remove non-tariff barriers, some on products of New Zealand interest, and to bind
95 per cent of its tariff at ceiling levels was seen by New Zealand as a considerable concession, which
gave credence to its attempts to move to a tariff-based system of protection.
38. Domestic output remained distorted by the import licensing system which protected about one-
third of domestic production. Of particular concern to New Zealand were Indonesia's highly protected
dairying and meat industries. In dairying, bound tariff rates on some products such as AMP, WMP,
yoghurt, buttermilk, AMF and processed cheese, had been set well above applied rates. In addition,
import licences underpinned mixing requirements, and applied to fresh cheese. Moreover, retail packs
of milk were effectively excluded from importation, and investment restrictions applied in the processing
sector. Indonesia had offered in the Uruguay Round to phase out the dairy-mixing requirements over
10 years, and to replace them with moderate tariffs. Meat imports continued to be covered by licences
controlled by the Directorate-General of Livestock Services to support local feedlot operators. Import
licences, issued for predetermined quantities, were valid from 3-6 months, depending upon the meat
type. Secondary meat cuts and offal appeared to be treated differently to control supplies and minimize
the impact of imports on domestically-produced meat. Imported meat was also affected by the technical
regulation stipulated by the Directorate-General of a minimum shelf-life requirement of 3 months.
39. The representative of Japan congratulated Indonesia for the continued trade and investment
liberalization that had occurred since 1990. It had gradually lowered tariffs and surcharges, reduced C/RM/M/52
Page 10 Trade Policy Review Mechanism
import licensing, and deregulated the investment régime. Nevertheless, substantial trade restrictions
remained; one-third of domestic production was protected by import licensing and bans, and over
half of non-oil exports were controlled. Japan therefore urged Indonesia to continue its efforts to
deregulate or abolish restrictive measures, and to make its trading system more transparent. The
representative of Japan requested details on the current investment regulations, including foreign
ownership requirements, following the deregulatory package introduced in May 1994. He also sought
details on the rôle and operation of export-processing zones and export-oriented production entrepôts,
including, in particular, the incentives provided to indirect exporters.
40. The representative of India referred favourably to Indonesia's current efforts to reform its trading
environment. He was surprised to hear that other delegates had raised with Indonesia issues concerning
the TRIPs Agreement and labour matters; these were currently outside the scope of the Trade Policy
Review Mechanism.
41. The representative of Hungary commented favourably on Indonesia's market-opening measures
taken since the last review, as a means of promoting export-led growth and diversification away from
oil and gas. Such trade reforms had focused on lowering tariffs and surcharges, reducing import
licensing restrictions and investment deregulation. Nevertheless, tariffs, averaging 20 per cent overall,
remained much higher on some products, such as certain chemicals and transport equipment. Moreover,
import licensing, despite the number of tariff lines affected falling by three-quarters since 1990, continued
to protect large shares of manufacturing and agricultural output. Of main concern to Hungary were
the restrictions on agriculture and steel; he sought details of any plans by Indonesia to reduce the scope
ofits import licensing regime. Excise and sales taxes applied to some products, including non-alcoholic
drinks, discriminated against imports. He requested information on when Indonesia intended to eliminate
these discriminatory taxes.
42. The representative of Argentina noted Indonesia's improved trade performance since 1990 and
the continued need for a stable macroeconomic environment, including budgetary discipline. Its trade
and other economic reforms were moving in the right direction, such as lower tariffs, subject to
remaining tariff peaks on products like cars and alcohol, and some dismantling of the import licensing
régime. He sought details on the exclusion of services and agriculture from the CEPT Scheme, and
asked whether the scheme would be trade-creating, thereby lowering industrial protection in Indonesia,
or trade-diverting. He wondered what the reasons were for the recent decline in foreign direct
investment, and what effects this might have on Indonesia's export capacity. Indonesia was requested
to comment on the apparent time lags of, on average, up to 12-18 months between investment approval
and implementation. He also questioned the rôle of State-trading agencies in meeting Indonesia's
industrial objectives.
43. The representative of Egypt commended Indonesia for its autonomous trade reforms, including
on-going investment and financial deregulation as well as other market-based improvements. These,
combined with appropriate stabilization policies, had strengthened Indonesia's trade performance.
Indonesia provided a good model for other developing countries to follow. Indonesia had played an
active rôle at both the regional and international level and, along with Egypt, was a member of the
Non-Aligned Movement. The Indonesian delegation was requested to comment on the cooperation
among developing countries in the framework of the Group of 15, and especially after the entry into
force of the WTO Agreement. Indonesia C/RM/M/52
Page 11
VI. REPLIES BY THE REPRESENTATIVE OF INDONESIA AND ADDITIONAL COMMENTS
44. The Chairman suggested that the Council debate be structured along the main themes of overall
economic performance; the import régime; exports and the export régime; regional initiatives; other
issues; and outlook.
(i) Overall economic performance
45. The representative of Indonesia said that long-term stable, non-inflationary growth required
the establishment of a solid macroeconomic foundation. The main elements of Indonesia's
macroeconomic policy had been tight budgetary discipline, prudent monetary policy, disciplined
management of the balance of payments, and prudent management of the external debt. He felt that
only when the economic fundamentals were in place would trade liberalization have a lasting effect.
46. The representative of Indonesia stated that a successful change from import substitution to export
orientation required deregulation. It was also necessary to avoid domestic social upheaval, as this could
undermine long-term reform. While the process needed to be continuous, the Government had to be
aware beyond which limits reform could not be pushed at any given moment.
47. Recent trade reform packages had mainly simplified import arrangements, improved customs
procedures, reduced tariffs and surcharges, improved conditions in export-processing zones, and
eliminated non-tariff measures. Application procedures for foreign investment had been simplified,
the negative investment list had been reduced, and foreign parties were now allowed to own 100 per cent
of shares in foreign investment companies without any minimal investment limit.
48. The Indonesian representative mentioned that all Ministers in the Presidential Cabinet had full
jurisdiction over their respective departments. In undertakings of national importance, a process of
coordination was normally initiated by the Coordinating Minister for Economics and Finance. Parliament
monitored very closely tariff changes or other measures affecting competitiveness and consumer welfare.
Now. that the Uruguay Round had been completed, a unit was being established to deal specifically
with all WTO issues.
49. The Government supported strategic industries to provide an adequate base for technological
capabilities in the future. Although such measures might be expensive in the short run, they could
prove to be useful in the longer term. Various ways existed to help ensure increased efficiency through
cooperation with foreign enterprises, for instance, through cooperation agreements and joint participation
of foreign capital. He was confident that the Government would continue to develop ways of ensuring
that these industries were efficient, and that support for such industries would be reduced over time.
50. The first discussant referred to the fundamental link between sound macroeconomic management
and successful trade liberalization and microeconomic reform. Noting the perceived "stop-go" nature
of certain aspects of Indonesia's reform efforts, he suggested that the Indonesian Government should
consider the establishment of an independent statutory body to advise on trade and industry policies.
Such a body would aid policy consistency and transparency, as well as providing an impetus to the
reform programme. Regarding the rôle of strategic industries, he urged Indonesia to follow overseas
trends towards divesting state-owned enterprises, placing greater reliance on the market mechanism.
51. The second discussant commented favourably on the trade and investment reforms contained
in recent packages. He requested additional details on the pace of Indonesia's reforms, including on
any plans that the Government might have for further liberalization. Although he saw some rôle for C/RM/M/52 Trade Policy Review Mechanism
Page 12,
State-owned enterprises in imperfect markets, he questioned their continued existence in Indonesia
following market deregulation.
52. The representative of Australia raised the issue of the establishment of an independent statutory
authority in Indonesia, and whether the Government had given any consideration to making the
deliberations of the Tariff Team public in an attempt to improve transparency.
53. The representative of Indonesia responded by stating that there was a high level of public debate
in Indonesia concerning the importance of trade policy, due primarily to Indonesia's involvement in
the Uruguay Round. Indonesia was conscious of the need to improve policy consistency and expertise
in trde policy formulation. The Indonesian representative said that Indonesia often adopted a pragmatic
approach to reform, seizing on all opportunities to do what was possible. Indonesia still saw an important
rôle for government intervention in certain cases. Despite the non-public nature of the Tariff Team's
deliberations, it did receive inputs from the public and had operated effectively.
(ii) Import régime
54. The Indonesian representative indicated that his Government's policy was to further reduce
average tariff levels. Tariff reviews would be carried out on a continual basis. Tariff reductions were
currently being considered in some sectors, including transport equipment.
55. He conceded that recent reforms had temporarily increased the dispersion in tariff rates.
However, this was partly because duty reductions were concentrated on raw materials and capital goods,
which already had among the lowest duties. Moreover, tariffication of non-tariff measures had introduced
high tariffs in certain areas, such as motor vehicles. Tariff rate dispersion would be narrowed as
Indonesia continued to reduce tariff rates on finished products, especially on those products having
high rates. The Government was not considering reducing the list of items exempted from ceiling
bindings.
56. Surcharges were temporary and formed part of the tariffication process and removal of non-tariff
measures. Since Indonesia did not yet have an Anti-Dumping Law (due to be tabled before Parliament
in early 1995 as part of the new Customs Law), surcharges had been used as an anti-dumping measure.
However, in line with the Uruguay Round Agreement, this practice would be discontinued.
57. Also in line with the Uruguay Round Agreement, the Indonesian representative stated that
discriminatory sales and excise tax arrangements would be eliminated.
58. Indonesia had progressively reduced the number of import licences. In 1990, there were
1,122 tariff items covered by licensing. This had been reduced to 318 by December 1993, and had
been further cut to 261 in June 1994. In the case of infant industries, particularly up-stream ones which
strengthened the industrial structure and reduced undue dependence on imports, the Government had
tended to deny tariff protection as a matter of policy.
59. The manufacturer usually determined the expiry date on quarantine and health regulations.
60. The Indonesian representative indicated that most imports, i.e. imports with an f.o.b. value
of US$5,000 and above, were subject to compulsory pre-shipment inspection (PSI) in the exporting
country. PSI, introduced on 1 May 1985, was initially performed by the government-appointed surveyor,
the Société Générale de Surveillance (SGS). This responsibility was transferred to PT Surveyor Indonesia
in July 1991; SGS continued, however, to have responsibility for PSI in countries where PT Surveyor Indonesia C/RM/M/52
Page 13
Indonesia had no established office. During the transition period, some adjustments were likely which,
in turn, might have affected average inspection times.
61. Indonesia, like other Uruguay Round signatories, was committed to applying the Agreement
on the Implementation of Article VII (Customs Valuation Agreement) as well as the Agreement on
PSI. Where inconsistencies occurred between the Agreements, the Customs Valuation Agreement would
take precedence. The Indonesian Customs Administration had made some preparations in applying
the Customs Valuation Agreement. This entailed the drafting of necessary legislation and regulations,
as well as training customs personnel.
62. The Indonesian Government did not regard State-trading enterprises as a generalized phenomenon;
the intensity of State-trading varied according to the nature and behaviour of the commodity concerned.
State-trading enterprises operated to rectify market failure, and to stabilize prices and supply in order
to avoid social disruption. In the agriculture sector, the Indonesian Government had begun phasing-out
all non-tariff measures. However, during this transitory process, BULOG would continue to stabilize
commodities that would otherwise fluctuate excessively. In accordance with GATT, the level of
protection afforded by BULOG would not exceed bound tariff levels.
63. It was his Government's view that in the absence of countertrade, normal trade might not
otherwise occur with countries facing foreign exchange problems. Therefore, the Government felt
that countertrade could be used to create trade with such countries.
64. Local content requirements were basically a temporary measure aimed at ensuring that there
was a market for domestic products. This had been important when the Government initiated its
diversification policy to reduce dependency on oil exports. Under the Uruguay Round agreements,
the Government was committed to eliminating the local content requirement for the soyabean meal
industry and for dairy products within 3 and 10 years, respectively, after the WTO's entry into force.
65. The first discussant referred to Indonesia's impressive achievements to date in trade and
investment reforms, and the important rôle that the GATT/WTO can play in promoting such reforms.
It had moved its import regime away from a non-tariff one to one based on tariffs. Furthermore, it
had bound 95 per cent of its tariff in the Uruguay Round, including on all agricultural products.
Although State-trading entities still existed in agriculture, Indonesia had tariffied all of its non-tariff
measures in agriculture, often at modest levels compared to some other significant developed countries.
Indonesia needed to focus on eliminating remaining import restrictions to become more market oriented
and to maintain existing pressures for reform.
66. The second discussant referred to the substantial achievement by Indonesia in raising its tariff
bindings from below 10 per cent of items to 95 per cent under the Uruguay Round. He commented
favourably on Indonesia's commitment under the Uruguay Round to phase-out some local content plans.
67. The representative of New Zealand encouraged Indonesia to continue with its reform programme.
He asked for details on the current situation concerning the introduction by Indonesia of anti-dumping
legislation.
68. The representative of Australia welcomed Indonesia's intention to consider tariff cuts on transport
equipment, and requested information on whether similar cuts were currently being considered by the
Indonesian Government. C/RM/M/52 Trade Policy Review Mechanism
Page 14
69. The representative of the European Union, while welcoming the binding of 95 per cent of tariff
items under the Uruguay Round, pointed out that Indonesia had previously, with bindings on less than
10 per cent of items, lagged behind other Asian countries. He requested further details on any other
sectors, apart from transport equipment, where tariff reductions were being considered, and on the
time frame for such reductions. He also asked about Indonesia's intentions regarding the imposition
of discriminatory commilodity taxes and whether these would be brought into conformity with the GATT,
especially luxury taxes which discriminated against imported motor cars, as well as discriminatory
excise taxes on imported cigarettes. He asked whether Indonesia intended to sign any of the plurilateral
agreements. such as on civil aircraft.
70. The representative of the United States asked when Indonesia intended to make the next round
of tariff cuts under the CEPT Scheme.
(iii) Exports and the export régime
71. The representative of Indonesia said that prohibitions on exports were generally related to
standards regulations aimed at protecting antique goods with an historical value and conserving the
environment. Export taxes were imposed on certain raw materials to develop downstream industries
and preserve natural resources. Tax exemptions were given to companies or factories operating in
Export-Processing Zones (EPZ) or in Export-Oriented Production Entrepôts (EPTE) that exported a
minimum of 75 per cent of their finished products. However, tax exemptions were denied to firms
supplying inputs to EPZ or EPTE companies. He pointed out that one of the main objectives of trade
policy was to diversify exports both in terms of market and products.
72. The first discussant stated that Indonesia's use of export taxes on certain raw materials was
not the best means of promoting downstream industries. Taxing competitive exports penalized
competitive exporters and risked promoting value-added industries that became dependent on "permanent
life support" from the Government. Such arrangements ran counter to Indonesia's market opening
approach.
73. The second discussant raised the environmental considerations of export taxes and the potential
conflict between these and market forces. Export taxes in his view could have an appropriate rôle
to play in meeting environmental concerns, provided they were backed up with other environmental
policies. Such export restrictions alone were unlikely to fulfil environmental objectives.
74. The representative of Australia sought information on the extent to which environmental issues
had been publicly debated in Indonesia.
75. The representative of Argentina requested details on the relationship between foreign direct
investment and Indonesia's export performance, and the extent to which export growth was being
hindered by impediments to implementing overseas investment in Indonesia.
76. The representative of the European Union questioned the effectiveness of export controls for
protecting the environment. He asked what was the justification for introducing an annual export quota
in July 1993 on lamscant of 100.000 cubic meters, and whether it was envisaged to increase the quota.
The administration of export quotas in Indonesia was largely non-transparent.
77. The representative of Indonesia stated that there was always a lag between investment approval
and implementation. Indonesia was environmentally conscious and activities should be friendly to the
environment as well as being economically rational. This was particularly important for forestry Indonesia C/RM/M/52
Page 15
management. His Government was concerned, however, that Indonesian exporters would face restrictions
imposed by trading partners purportedly for environmental concerns.
(iv) Regional initiatives
78. The representative of Indonesia pointed out that the acceleration in the implementation of the
CEPT Scheme would mean reducing the time frame for AFTA from 15 to 10 years; eliminating the
products on the Temporary Exclusion List by transferring then to the Inclusion List in five equal annual
instalments, beginning 1 January 1995 (the first instalment should be completed by 1 January 1996);
and the eventual inclusion of all agricultural products. He pointed out that Indonesia had unilaterally
reduced tariffs on an m.f.n. basis, and that for some products the m.f.n. rates were now lower than
CEPT levels. This reflected the fact that the CEPT encouraged trade liberalization on an m.f.n. basis,
which underscored AFTA's outward-looking orientation.
79. The time frame of liberalization under AFTA had been accelerated to 10 years, starting 1993,
and the tariff levels in 2003 would be 0 to 5 per cent. The Indonesian commitment consisted of 2,816
fast rack products and 4,539 normal track products. Its exclusion list comprised 1,654 products.
The schedule of tariff reductions for the fast track was for 1,097 products (0-20%) to be reduced to
0-5 per cent by 1998; and 1,719 products (25-40%) to reach 0-5 per cent by 2000. For the normal
track. 1.587 products (0-20%) would be reduced to 0-5 per cent by 2000; and 2,952 products (25-40%)
to 0-5 per cent by 2003. On the Temporary Exclusion List, 1,654 products would be included in the
fast track/normnal track within five years, starting 1995.
80. Local content requirements in the rules of origin for ASEAN-PTA preferences were 60 per cent.
However. Indonesia applied a local content rule of only 50 per cent to encourage trade. In AFTA,
the local content requirement was 40 per cent, both for the single country content and ASEAN content.
81. In order to strengthen the open multilateral trading system, APEC had decided to accelerate
the implementation of Uruguay Round commitments and to undertake work aimed at deepening and
broadening the Round's outcome. APEC leaders were committed to continuing the process of unilateral
trade and investment liberalization and had agreed not to use measures that would increase protection.
82. The first discussant commented on the open regionalism reflected in the AFTA and the APEC
initiatives. Trade liberalization under these arrangements would not exclude third parties and would
benefit all trading partners, reinforcing Indonesia's commitment to an open world trading system
83. The representative of Egypt referred favourably to Indonesia's regional initiatives. stating that
regionalism and multilateralism were two sides of the same coin.
(v) Other issues
84. The Indonesian representative stated that, although his country would maximise the use of
transitional periods provided for in the TRIPs Agreement, his Government was currenty amending
the Copyright (1982 and 1987), Patent (1989) and Trademark (1992) Laws. These would be tabled
in Parliament in 1995. In the light of the TRIPs Agreement, Indonesia was also preparing to draft
a series of new laws on industrial design, integrated circuits and trade secrets, of which the latter would
be tabled in Parliament in 1996.
85. In accordance with the TRIPs Agreement, the Indonesian representative assured Council that
Indonesia would implement national treatment on intellectual property rights. Indonesia had a C/RM/M/52
Page 16 Trade Policy Review Mechanism
comprehensive IPR legislation, and a good enforcement record. It levied penalties and sanctions for
copyright and trademark violations and patent infringement, which were subject to civil liabilities and
imprisonment. Indonesia was also trying to ensure that all legislation conformed to the TRIPs
Agreement. Although Indonesia did not currently have a system of IPR enforcement at the border
in accordance with TRIPs, such a system would be incorporated into the new Customs Law, to be
tabled in Parliament in early 1995.
86. On TRIMs, he stated that although liaison offices were not allowed to engage in exports and
imports, the Government did provide opportunities for foreign parties to establish foreign investment
companies to export either their own products, or those of other industrial manufacturers. In order
to encourage foreign investment, the Government had introduced a new Regulation (No. 20, in 1994)
to enable foreign parties to own 100 per cent of a foreign capital company, except in areas where a
minimum local ownership of 5 per cent was needed. Wholly-owned foreign capital companies were
required to divest part of their ownership to an Indonesian party within 15 years. The number of shares
transferred depended on mutual agreement.
87. In 1989 the Government had issued the Negative List of Investments to replace the earlier Priority
List. The Negative List was reviewed regularly, and in 1993 the list comprised 33 different fields
of business, compared to 75 fields in 1989. His Government accorded equal opportunity to both foreign
and domestic capital. except in certain areas such as taxis, local shipping, scheduled/chartered flights,
aircraft and component workshops located at airports. Areas of particular interest for foreign investment
included textiles, chemical products. metal products and hotels. He reported that foreign companies
could be established anywhere in Indonesia. Where there were already industrial estates, industrial
processing activities sustained by foreign investment were prioritized; foreign companies were allowed
to be located in industrial zones where justified by technical and economic considerations.
88. The Indonesian representative explained that it was difficult to answer questions on services
since such data was rudimentary. For example. a detailed picture was not available by sector, and
the aggregate number was still a residual. The origin of services imports or the destination of services
exports could not be specified. However, certain services could be presented to give an indication
of the dimension of Indonesia's services trade. Indonesia was a net services importing country; the
services deficit of US$8.9 billion in 1990/91 had reached US$10.3 billion in 1993/94. Subtracting
the debt servicing figure of US$3.9 billion in 1990/91 and US$4.5 billion in 1993/94, the services
deficit wasstill verysubstantial, US$5 billionand US$5.8 billion in 1990/91 and 1993/94, respectively.
While details on the liberalization of services could not be presented, the available figures indicated
that the Indonesian services sector was reasonably open.
89. The representative of Australia enquired as to the policies that Indonesia intended to implement
to improve the efficiency of the services sector, and whether these included further liberalization of
services trade.
90. The representative of Japan wondered whether Indonesia intended to expand the arrangements
associated with export processing zones and export processing entrepôts.
91. The representative of Egypt reiterated his Government's view that issues concerning labour
standards were beyond the scope of the Trade Policy Review Mechanism and the GATT/WTO generally.
92. The representative of the European Union asked how the Government intended to comply with
the TRIPs Agreement in future, and that the EU was ready to provide Indonesia with technical and C/RM/M/52
Indonesia Page 17
financial assistance to implement effective IPR legislation. He also sought clarification as to whether
Indonesia had signed the plurilateral Agreement on Government Procurement.
93. In reply, the representative of Indonesia confirmed that his Government had not signed the
Plurilateral Agreements on Government Procurement and Civil Aircraft. He indicated that Indonesia
would continue to liberalize its service markets gradually.
(vi) Outlook
94. The representative of Indonesia stated that his Government would continue the adjustment process.
and that the various trade barriers would be eliminated gradually in accordance with the needs of national
development. Indonesia would implement the results of the Uruguay Round in accordance with the
agreed timetable. However, Indonesia was moving faster in the context of ASEAN. C/RM/M/52 Trade Policy Review Mechanism
VIl. CONCLUDING REMARKS BY THE CHAIRMAN OF THE COUNCIL
95. In concluding this, the second review by the Council of Indonesia's trade policies and practices,
I would like to sumnarize, on my own responsibility, the salient points to emerge during the discussions.
As usual these remarks are not intended to substitute for the Council's collective evaluation and
appreciation of Indonesia's trade policies and practices. which will be reflected in the minutes of the
meeting.
96. Following the opening statement by Indonesia, the Council's discussions focused on six main
themes:
(a) Overall economic performance
97. Council members welcomed the continuation of Indonesia's sound macroeconomic policies
since its first review in 1990. Real annual economic growth had averaged over 6 per cent. Inflation,
following excess liquidity pressures in 1990-92, had been kept below 10 per cent through prudent
monetary policies and the balanced budget requirement. This background had enabled trade and
investment liberalization to continue - although more cautiously - and assisted Indonesia's ongoing
diversification from the petroleum sector into manufacturing. Members commended the recent
liberalization , the investment and trade régimes, in May and June 1994, including the continuing
process of replacing non-tariff barriers with tariffs.
98. A number of questions were asked about Indonesia's transition from an import substitution
development strategy to one based on export-led growth. Several participants drew attention to
lndonesia's support for strategic manufacturing and agricultural industries and sought details of the
coverage and pace of privatization efforts. Members stressed the need for Indonesia to improve the
transparency of its trade and investment régimes which, despite impressive achievements to date.
remained complex and discretionary. It was suggested that transparency could be facilitated by the
existence of a public independent statutory body to advise the Government. In this context, details
were requested on the rôle and operation of the Economic Policies Deregulation Team and the Tariff
Team.
99. In response, the representative of Indonesia noted that a solid macro-economic foundation was
needed to ensure that trade liberalization had a lasting effect. The shift to outward orientation required
major deregulation measures, but these had to be handled in such a way as to minimize social disruption.
He outlined the contents of Indonesia's trade and investment packages, as well as other deregulation
measures. Institutional changes were being put in place to deal with Uruguay Round implementation.
The rôle of strategic industries. support to which had been declining, was to provide an adequate base
for technological capacities in the future.
(b) Import régime
100. Members recognized that Indonesia had made great strides in moving from a régime relying
heavily on non-tariff measures to one based very largely on bound tariffs. Its participation in the
Uruguay Round had made an important contribution to this process. However, the overall average
remained at 20 per cent; tariff escalation and dispersion had tended to increase, exacerbated by import
surcharges which had often been used as anti-dumping measures, and substantial tariff peaks persisted.
Concern was also expressed that tariffs on some high-rate items would remain unbound. Some members
noted that pre-shipment inspection delays had increased considerably as customs functions were being
transferred back to the Indonesian authorities. Indonesia C/RM/M/52
Page 19
101. The complexity of remaining import licences was seen by some delegations as an obstacle to
imports. Licensing was often backed up by State-trading or monopolies, including control by BULOG
of trade in agricultural goods such as rice. Attention was called to standards applied to imports of
meat and mixing requirements for dairy products; the commitment to phase the latter out over ten
years was welcomed.
102. Questions were asked about Indonesia's commodity and excise tax system, which was seen
as discriminating against imports of products such as cigarettes, motor vehicles and luxury goods.
Questions were also asked about the long-term viability of Indonesia's local content requirements, such
as on motor vehicles.
103. Some members expressed concern regarding Indonesia's government procurement practices,
which remained restrictive and included preferences for domestic suppliers; attention was called to
the continued use of continued arrangements to increase non-oil exports.
104. The representative of Indonesia indicated that his authorities intended to reduce average tariffs
further, including in transport equipment. In this process, tariff disparities would also be reduced.
Surcharges were temporary; their use to counter dumping would cease as Indonesia implemented the
Anti-dumping Agreement. Discriminatory taxes would be eliminated. Import licensing had been
reduced, but the Government preferred this method to allow infant industries to develop scale economies.
Normally, health and safety requirements respected such conditions as the manufacturer's stated expiry
date. Indonesia was committed to applying the Customs Valuation and Preshipment Inspection
Agreements; in case of any inconsistencies in the application of these agreements, the Valuation
Agreement would take precedence. Indonesia was also committed to eliminating non-tariff measures
in agriculture, but in the transition period BULOG would continue to stabilize prices. Countertrade
was seen as a positive measure used to assist trade with countries with foreign exchange shortages.
Local content requirements were temporary; they would be phased out for soybean meal within three
years and for dairy products within ten years of the entry into force of the WTO.
(c) Export régime
105. Some members commented on the use by Indonesia of export taxes on logs and some other
products. Such measures could encourage inefficient downstream industries and lead to domestic resource
misallocation. Questions were asked about the use of export controls as a main instrument to achieve
environmental objectives and promote sustainable development.
106. Export diversification was seen by several members as the best means ofovercoming constraints
in Indonesia's external trading environment, such as quotas on textiles and clothing in developed markets.
A question was asked about the relationship between investment conditions and the performance of
manufactured exports. Additional information was sought on the operation of export processing zones
and export oriented production entrepôts in Indonesia.
107. The representative of Indonesia said, in response, that export prohibitions mainly related to
standards, protection of antiquities and nature conservation, while export taxes were intended to develop
downstream industries and preserve natural resources. Environmental debate had markedly increased
in Indonesia. Tax exemptions were enjoyed by companies in EPZ or EPTEs which exported at least
75 per cent of their output; this did not apply to suppliers to those companies. There was always
a lag between investment commitments and implementation; export projections could not be made
on a factory basis. Indonesia was hoping to achieve diversification of both markets and products. C/RM/M/52
Page 20 Trade Policy Review Mechanism
(d) Regional initiatives
108. Members recognized the importance of intra-regional trade in Indonesia's development.
Reference was made to Indonesia's active rôle in supporting the ASEAN Free-Trade Area (AFTA)
and the aim of implementing the region's common effective preferential tariff (CEPT) by 2003. Members
sought clarification on the CEPT tariff reduction programme and the treatment of services and agricultural
products. Additional details were requested on rules of origin under the AFTA, especially the difference
in content levels between Indonesian exports and imports.
109. Members acknowledged Indonesia's major rôle in the recent APEC summit, and the initiatives
taken to promote free trade and investment in Asia and the Pacific by the year 2020. Assurances were
sought that such arrangements would be implemented in an outward-looking manner, within the
perspective of the WTO.
110. In response, the representative of Indonesia provided details on the acceleration of the CEPT,
as well as the time frame for further liberalization under the AFTA. This had been accelerated to 10
years, with a final tariff level of 0-5 per cent to be achieved under different tracks. Products in the
temporary exclusion list would be included from 1995. He noted that the APEC Bogor Declaration
contained a decision to accelerate the implementation of the Uruguay Round commitments and to
undertake work aimed at deepening and broadening the outcome of the Round.
(e) Other issues
111. The representative of Indonesia stated that, while Indonesia would, in the interests of
transparency, volunteer information on "new areas" such as services, TRIPs and TRIMs, he did not
consider labour standards a subject for TPRM discussion.
112. Members welcomed steps taken in May 1994 to liberalize Indonesia's investment régime,
including the decision to open some service industries to foreign direct investment. However, a number
of concerns remained, on aspects such as investment restrictions applied to products on the Negative
Investment List. Clarification was sought on the operation of foreign ownership and divestment
requirements, including the share of foreign ownership to be divested by wholly-foreign-owned companies
within the stipulated 15 years.
113. Members sought clarification on the implications of the TRIPs and TRIMs agreements for
Indonesia, and of plans to improve its intellectual property rules. Some participants commented on
the restrictions applied in Indonesia's service industries, and sought information on policies aimed at
making the sector more competitive.
114. The representative of Indonesia responded that, during the transitional period allowed in the
TRIPS agreement, new provisions would be prepared. Indonesia was already preparing amendments
to its relevant laws for tabling in the next two years. Data on trade in services were everywhere
rudimentary, but existing figures showed that Indonesia was a net importer of services with deficits
of US$5 billion in 1990/91 and US$5.8 billion in 1993/94, excluding debt servicing. This indicated
that the services sector in Indonesia was reasonably open. Conditions were also changing fast and
gradual opening of the market would continue. C/RM/M/52
Page 21
(f) Outlook
115. A number of members, noting signs that the process appeared to have slowed, emphasized
the need for Indonesia to continue steadily with trade-related reforms. The need for continuity and
irreversibility of policies was stressed. In this connection, some members sought information on the
timing of future reforms. Commitments made by Indonesia under the Uruguay Round were seen as
one important means of "looking in" autonomous policy reforms, and facilitating Indonesia's progressive
integration into the global economy.
116. In response, the representative of Indonesia said that trade barriers would be eliminated gradually
and steadily, in accordance with the needs of national development and the maintenance of a competitive
environment. Uruguay Round commitments would be implemented according to the agreed timetable;
developments in ASEAN would, however, move more rapidly.
Conclusions
117. Members welcomed the significant progress achieved by Indonesia in attaining a stable
macroeconomic environment and ongoing trade and investment reforms. They welcomed Indonesia's
active participation in the Uruguay Round and its recent ratification of the WTO Agreement. Indonesia
was urged to maintain its successful reform programme, including reducing high tariffs, eliminating
surcharges and distortions which could impede development in the future. Future reviews under the
WTO procedures were seen as a welcome guide to further progress in all relevant areas. |
GATT Library | hy801db7097 | Trade Policy Review Mechanism. Indonesia. Minutes of Meeting. : Addendum. Answers to written questions | General Agreement on Tariffs and Trade, January 31, 1995 | General Agreement on Tariffs and Trade (Organization) and Council | 31/01/1995 | official documents | C/RM/M/52/Add.1 and 0172-0197 | https://exhibits.stanford.edu/gatt/catalog/hy801db7097 | hy801db7097_90080635.xml | GATT_1 | 4,708 | 31,425 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
C/RM/M/52/Add. 1
31 January 1995
Limited Distribution
(95-0172)
Original: English
COUNCIL
29-30 November 1994
TRADE POLICY REVIEW MECHANISM
INDONESIA
MINUTES OF MEETING
Addendum
Answers to Written Questions
The following communication has been received on 5 December 1994 from the delegation of
Indonesia. responding to written questions submitted by the delegations of Australia, Canada, the
European Communities. the United States and Hong Kong to the Council meeting on the Trade Policy
Review of Indonesia.
CANADA
1. Question
Answer
2. Question
What is the expected timeframe for completion of the new anti-dumping and
countervailing duty laws ?
The anti-dumping and countervailing duty laws are scheduled to be tabled as part
of the new Customs Law in Parliament during early 1995.
On page 55 (para 12) and page 96 (para 96), the Secretariat's report refers to the
use of tariffs or surcharges as defacto anti dumping measures, and as a means of
emergency import relief. How does Indonesia reconcile the apparent contradiction
of these measures with its commitment to binding 95 per cent of tariff lines?
Answer Surchargess are temporary in nature. They have been used as part of the tariffication
process for removing non-tariff measures.
3. Question
Answer
How will the activities of BULOG be consistent with WTO Agreement requirements
and with Indonesia's trade policy objectives aimed at creating a more open trade
system and healthier business competition ?
In the Agriculture sector, the Indonesian Government has begun phasing out all
non tariffmeasures. However, during this transitory period, BULOG will continue
to stabilize prices of commodities which would otherwise fluctuate excessively,
leading to social disruption. C/RM/M/52/Add. 1
Page 2
Trade Policy Review Mechanism
In accordance with GATT Article Il para 4, the level of protection afforded by
BULOG will not exceed bound tariff levels.
4. Question
What provisions or regulations are in place to ensure transparency of Indonesia's
import regulations ?
Answer All Indonesian regulations are registered in the Indonesia Gazette and made public
in the press.
5. Question
With respect to quarantine and health regulations, could Indonesia explain how
they administer the "expiry date" and "minimum remaining shelf-life requirements".
Is this determined by the manufacturer (as in Canada) or is it government directed?
Answer In normal conditions, the manufacturer determines the expiry date.
AUSTRALIA
1. Question
Domestic review of trade policies
Answer
2. Question
Has Indonesia considered the establishment of an independent body to review trade-
related policies ? Is there any intention to make public the deliberations of the Tariff
team to allow input from all interested parties, including overseas suppliers,
importers and domestic users ? (Sec. Rep P.XII para).
In our governmental system, trade policy is reviewed by Parliament. The Tariff
Team welcomes inputs from all interested parties.
Tariffs
Recognising the considerable expansion of the scope of Indonesia's tariff bindings
in the context of the Uruguay Round, there remains significant scope for action
to raise tariffs in specific sectors (Sec Rep. P. XIV, para 28). Past reforms to
reduce tariff levels are welcome, but we would appreciate comment on Indonesia's
intentions to further reduce average tariff levels?
Can Indonesia comment on whether tariff reductions are being considered in any
sectors, if so which sectors ?
What action is Indonesia planning to reduce tariff peaks and tariff dispersion, and
to bring high tariff areas into line with Indonesia's general tariff régime ? (Sec
Rep P. XIII para 19 and P. XIV para 25). Tariff escalation is highest in transport
equipment (especially motor vehicles) - to what extent does Indonesia intend to
reduce tariffs in this area?
Answer
Indonesia intends to further reduce average tariffs. Tariff reductions are being
considered in some sectors, including transport equipment. Indonesia C/RM/M/52/Add.1
Page 3
3. Question Import restrictions
There has been a substantial reduction in the number of tariff lines subject to import
licences in recent years. What action is Indonesia planning to further reduce the
scope of import licensing ? In particular, is there any prospect of elimination of
the import restrictions currently imposed on rice, sugar, wheat, steal, and transport
equipment ? (Sec Rep P. XIII para 19 and P. XV para 30). Are there any import
restrictions currently imposed on beef imports or are any such restrictions planned?
Under what circumstances, if any, would import licensing be reimposed on tariff
lines which have recently been liberalised?
It Indonesia able to provide list of the 261 tariff lines which are subject to import
licensing ? (Sec Rep page 65).
Could Indonesia please provide more information on the import licensing restrictions
imposed on completely-built-up motor vehicles, processed food, paper products,
and chemicals?
We understand there is a requirement to off-load at specified locations. This has
been identified as a trade barrier. Can Indonesia comment please? Are location
sites likely to increase?
Foreign printed material is a prohibited import (Sec Rep pages 64 and 66). Could
Indonesia please provide details of which types of printed material are prohibited
and the reasons for the prohibition? Could Indonesia also comment on whether
opportunities exist for the establishment of joint venture operations with Indonesian
companies to print material in Indonesia?
Answer There are no import restrictions on beef. Import of beef must be approved
by the Ministry of Agriculture, as well as accompanied by health and safety
certificates from a recognized veterinarian in the exporting country; likewise
for packing, making and sealing requirements.
The list of products which are prohibited or subject to import licensing are
stated in the Decree of the Trade Minister No. 132/KP/VI/94 dated June 27,
1994.
4. Question Implementation of Uruguay Round
We would be interested in a report on Indonesia's timetable for introducing reforms
which will be necessary to implement the Uruguay Round outcome. In particular,
can Indonesia advise in which areas it intends to implement Round outcomes in
advance of timetable required for a developing country in the WTO agreement?
Answer Indonesia will implement Round outcomes in accordance with the timetable.
However, in the context of ASEAN, Indonesia is moving faster than the Uruguay
Round. Trade Policy Review Mechanism
C/RM/M/52/Add.1
Page 4
5. Question
Infant Industries
To what extent is the efficiency of Indonesia's "infant industries" hampered by
restrictions which are imposed on trade and other assistance measures? (Sec. Rep
P.XII, para. 15).
Answer
6. Question :
Infant industries, particularly in up-stream industries, will strengthen Indonesia's
industrial structure, and reduce dependency on imports. These industries require
high technology and a large skilled labour force to be efficient. To develop these
industries, the Government tends not to give tariff protection.
Horticulture
We welcome the opening of Indonesia's market to imports of horticultural products
which has taken place since June 1991. However, we would be interested whether
Indonesia has any plans to reduce tariffs in this sector? A particular interest is
orange juice, which we understand is subject to a luxury sales tax - can Indonesia
provide details of this tax? We would also be interested to know whether Indonesia
has any intention to review the current requirement that orange juice import be
accompanied by certification of suitability for human consumption?
As yet orange juice is not regarded as a basic foodstuff since it is only consumed
by high income households.
Certification reuqirements on orange juice concerning its suitability for human
consumption is a safety measure aimed at preventing undue exposure to products
dangerous to human health.
7. Question :
Petrochemicals
We would appreciate Indonesia's comments on three issues which have been raised
with us by our industry:
(a) the use of check prices (as opposed to f.o.b. prices) for the purposes of
calculating duty (eg. polypropylene homopolymer had a check price of
US$784/tonne compared to an f.o.b. price of US$500/tonne);
(b) the imposition of import surcharges e.g. the 20 per cent surcharge on imported
polypropylene homopolymers;
(c) the requirement that producers provide signed statements and produce samples
for laboratory analysis for all shipments of polypropylene into Indonesia, which
results in delays in processing and acts a hinderance to trade.
Answer
Since 1994 check prices no longer apply to imports of polypropylene and
polyethylene. Surcharges for these products will be gradually eliminated. The
laboratory analysis is needed to avoid misdescription and misclassification of
products, because of the difficulties in differentiating between products of similar
appearance. While the analyses are being carried out, the goods are released on
presentation of a signed statement by the producers.
Answer: Indonesia C/RM/M/52/Add.1
Page 5
8. Question Export controls
Can Indonesia comment on the Secretariat's analysis (Sec Rep P. XIII, para 21)
of the costs to Indonesia's economy of the export controls which are currently in
place? Does Indonesia have any plans to liberalize the restrictions which are
currently imposed on importers?
Could Indonesia provide more details of the export controls which apply to a range
of forest products? And comment on the rationale for these restrictions'?
Answer : The imposition of export controls on raw materials basically has two objectives:
to develop down-stream industries and to preserve natural resources.
9. Question Disparities in assistance levels
Can Indonesia comment on the Secretariat's analysis (Sec Rep P. XIV, para 23)
of the costs to Indonesia economy of the disparities in levels of effective assistance
between different sectors of the economy? Does Indonesia have any plans to reduce
such distortions?
Answer : Indonesia is planning to reduce disparities in levels of effective assistance between
different sectors.
10. Question : Sales tax
What action is Indonesia planning to eliminate the discriminatory tax arrangements
which currently apply in some sectors? (Sec Rep P. XV para 29).
Answer : In line with the GATT agreement, Indonesia is planning to eliminate the
discriminatory tax arrangements.
11. Question : State trading
Can Indonesia comment on the trade effects of Indonesia's current state-trading
bodies (Sec Rep P. XV, para 31).
What plans does Indonesia have to ensure that firms with special import privileges
take their decisions as to sourcing of materials on purely commercial grounds?
Can Indonesia comment in some detail on the Secretariat's claim (Sec Rep P. XV,
para 31) about the lack of transparency in the arrangements applying to State-trading
enterprises such as BULOG? Can Indonesia provide detail on the method of
operation of BULOG and other State enterprises which control import licences
and exports?
We would be interested to know whether Indonesia plans to make any changes
to BULOG's monopoly import powers (e.g. for wheat) as a result of the Uruguay
agreements? C/RM/M/52/Add.1
Page 6
Trade Policy Review Mechanism
Could Indonesia advise whether there is any likelihood that private traders could
have a rôle in importing wheat and wheat flour in the future? If so, how would
the operation of BULOG change? Is there any intention that the Indonesian flour
market may be deregulated in the near future?
Answer
12. Question :
State-Trading Enterprises are not a generalized phenomenon: the intensity of State
Trading varies according to the nature and behaviour of the commodity concerned.
State-Trading Enterprises exist to rectify market failure and to stabilize prices as
well as supplies in order to avoid social disruption.
Public enterprises
It is noted from the Secretariat report (Sec Rep P. XVI, para 36) that the Indonesian
Government is attempting to improve the performance of public enterprises. Given
the relative importance of these enterprises in the economy, can Indonesia comment
on what action it intends to take to improve the efficiency of these enterprises?
Answer We have a long understanding in the context of our reforms that public enterprises
will be directed to be more responsive. As a result, public enterprises will be
encouraged to operate more efficiently.
13. Question
ASEAN Free Trade Agreement
Are there any plans to create a full free trade area by reducing to zero per cent
(from the current 5 percent level) the maximum tariffs which are to apply to
Intra-ASEAN trade under AFTA? (Sec Rep P. XIII, para 16).
Is Indonesia considering any further reductions in its exclusion list under the CEPT
scheme (Sec Rep P. XIII, para 16).
Could Indonesia confirm that its commitment to liberalize trade with other ASEAN
countries will not impede its ability to liberalize trade on an m.f.n. basis?
Could Indonesia comment on its approach to the recent ASEAN decision to extend
AFTA to unprocessed agricultural products, on the likely timing of the
implementation of this decision, and the likely manner in which sensitive sectors
will be treated?
The timeframe of AFTA has been accelerated to 10 years, starting from 1993.
The tariff levels in 2003 will be from 0-5%. Indonesia has included 2,816 fast
track products and 4,539 normal track products under the Scheme. The exclusion
list for Indonesia covers 1,654 products. Schedules of tariff reductions are as
follows:
a. Fast Track:
1,097 products (0 - 20%) will be 0 - 5% in 1998
1,719 products (25 - 40%) will be 0 - 5% in 2000
Answer Indonesia C/RM/M/52/Add.1
Page 7
b. Normal Track:
1,587 products (0 - 20%) will be 0 - 5% in 2000
2,952 products (25 - 40%) will be 0 - 5 in 2003
c. Temporary Exclusion List:
1,654 products will be included into the fast track/normal track within 5 years,
starting in 1995.
15. Question Services
Services are clearly of major importance to the Indonesian economy, but the two
reports offer little analytical content on the sector.
According to the Secretariat report, the share of services in GDP has risen from
45.4% in 1989 to 50.4% in 1993. These figures are also reflected in employment
increases. Another measure is that 56% of foreign direct investment in 1993 went
into services, compared with 31.7% in 1990. The Government Report also shows
that in 1993 services experienced one of the highest sectoral growth rates in
Indonesia.
We would be interested in receiving some further comments on services in the
context of this review. For example, what importance does service trade have
in Indonesia's import/export picture. A breakdown along major sectors, destinations
and countries of origin would add greatly to our understanding of this aspect.
Paragraph 1(c) in the Government Report states that trade policies are, inter alia,
aimed at directing imports to meet the demand for goods and services. To develop
domestic industry capab!e of producing highly competitive products. We would
be interested in a more detailed description of these policies as they relate to
services.
We note that Indonesia has made some significant reform in the services area.
Can Indonesia provide advice on its plans to open further services sector to foreign
participation?
We understand that ASEAN has agreed to negotiate a framework agreement on
trade in services. Can Indonesia comment on progress to date?
Answer Unlike trade in merchandise, services data is very rudimentary. We do not have
a detailed sector by sector picture, let alone an overall assessment. We cannot,
therefore, fully break down services into specific sectors, or specify the quantity
and origin of imported services; or the destination of service exports.
However certain services can be presented to give an indication of the dimension
of our services trade. The most important point to keep in mind is that Indonesia
is a net service importing country with a substantial deficit. For example, in
1990/91 our services deficit was US$8.9 billion, and it reached US$10.3 billion
in 1993/94. If we subtract from these figures the interest on debt servicing,
amounting to US$3.9 billion in 1990/91 and US$4.5 billion in 1993/94, then the
deficit on services is still very substantial: amounting to US$5.0 billion and CRM/M/52/Add.1 Trade Policy Review Mechanism
Page 8
US$5.8 billion in 1990/91 and 1993/94, respectively. While details of liberalization
in services trade cannot be given, the figures nevertheless indicate that Indonesia's
services sector is reasonably open. Our investment regulations are undergoing
further liberalization, thereby benefitting the services sector.
UNITED STATES
1 . Question We understand that Indonesia has decided to phase-in a free trade area under AFTA
by 2008 at the latest. Can you tell us when Indonesia intends to make the next
round of tariff cuts under the Common Effective Preferential Tariff Scheme?
Answer Under the Common Effective Preferential Tariff (CEPT), Indonesia will reduce
annually its tariff, so that by the year 2003 the tariff level will be between 0-5 %.
2. Question What measures, if any, is the GOI considering to reduce the list of items that they
exempted from ceiling bindings, and which are subject to import surcharges?
Answer For the time being, the Indonesian Government is not considering reducing the
list of items that are exempted from ceiling bindings.
3. Question What measures is the GOI discussing to bring its QRs and NTBs in agriculture
into conformity with the UR Agreement on Agriculture?
Answer Indonesia will apply tarffication according to the timeframe contained in the
Agreement on Agriculture.
4. Question What is the GOI's plan for TRIPs implementation? What steps have been taken
to date? What is their timetable?
Answer Indonesia will certainly, and to the maximum extent, make use of the transitional
period in the TRIPs Agreement, but it is even now preparing to amend its
Copyrights Law 1982 and 1987, Patent Law 1989, and Trademark Law 1992.
They are scheduled to go before Parliament in 1995. In the light of the TRIPs
Agreement, Indonesia is also starting to draft a series of new laws on Industrial
Design, Integrated Circuits, and Trade Secrets. The latter are expected to be tabled
in Parliament during 1996.
5. Question Does the GOI have any future plans for reducing the number of industries exempted
from its liberalized investment régime?
Answer The negative list which is closed to investment is reviewed regularly. The number
of business sectors which are in the negative list become fewer as time goes on.
The number of closed business sectors are as follows:
1989 75
1991 60
1992 51
1993 33 C/RM/M/52/Add.1
Page 9
6. Question : BULOG's monopoly import control, pricing practices and/or domestic content
requirement which apply to wheat, rice, soybeans and soybeans meal have been
serious impediments to trade in the past. What rôle does the government foresee
for "BULOG" once the Uruguay Round reforms enter into force?
Answer The local content requirement applying to soybean meal will be phased out within
three years upon WTO's entry into force.
7. Question : We hope the GOI will pass the pending legislation on reducing corporate income
tax. Can you give us an idea of when this legislation may be passed?
Answer
8. Question
Answer
: The Parliament has approved the new income tax legislation which will be effective
by 1995.
: Countertrade or "Counterpurchase" requirements on large Government contracts
seem to have decreased in the passed few years. Is there any intention by the GOI
to phase out these types of requirements?
: In the absence of countertrade, normal trade cannot take place, particularly with
countries facing foreign exchange problems. Therefore, countertrade can be used
to create trade with such countries.
EUROPEAN UNION
1. Question
Can the Government of Indonesia indicate the precise legislative acts which are
currently in force in Indonesia concerning the protection of intellectual property
rights, notably as contained in the Uruguay Round Agreement on Trade Related
Aspects of Intellectual Property Rights (TRIPs)?
Can Indonesia submit copies of this legislation?
What precise legislative changes are planned by the Government of Indonesia in
order to bring its intellectual property laws in complete conformity with the TRIPs
Agreement? What is the time schedule on this?
Answer
TRIP's Current regulations:
a.
b.
c.
Copyright Law 1982
Patent Law 1989
Trademark Law 1992
Indonesia is preparing to amend its Copyright, Patent and Trademark Laws. They
are scheduled to be tabled before parliament in 1995. In the light of the TRIPs
Agreement, Indonesia has also started preparing a series of new laws on Industrial
Design, integrated Circuits and Trade Secrets. The latter are expected to be tabled
before Parliament in 1996.
2. Question :
Do foreigners generally enjoy full national treatment in the granting of intellectual
property rights? Should there be any exceptions to this principle, which are they?
Indonesia Trade Policy Review Mechanism
C/RM/M/52/Add.1
Page 10
Answer In accordance with the TRIPs Agreement, Indonesia will implement national
treatment of Intellectual Property Rights.
3. Question
Answer
4. Question
Answer
Which are the civil, administrative and criminal procedures and remedies available
to enforce intellectual property rights and to sanction their infringement? Do
foreigners enjoy the same treatment as national from Indonesia? Are these remedies
and procedures in conformity with the TRIPs Agreement?
Indonesia has a comprehensive IPR legislation in place and our enforcement record
is good. There are penalties and sanctions for copyright and trademark violations,
and also for patent infringement. These are subject to civil liabilities and
imprisonment. Indonesia is trying to ensure that all legislation is in conformity
with the TRIPs Agreement.
Does Indonesia currently have in place a system of enforcement of border
intellectual property rights in accordance with the TRIPs Agreement? If so, please
explain the system. If no such system is in place, are they any plans to adopt one?
: Currently Indonesia has no a system of border enforcement in accordance with
TRIPs. The system will be incorporated into the new Customs Law which will
be submitted to Parliament in early 1995.
HUNGARY
1. Question
What action is Indonesia planning to further reduce the scope of import licensing?
Answer The Government of Indonesia has been reducing the scope of import licensing
gradually, the last reduction being in June 1994.
2. Question
: Certain excise taxes discriminate against imports. What action is Indonesia planning
to eliminate the discriminatory tax system currently applied in some sectors?
Answer In line with the GATT agreement, Indonesia is planning to eliminate discriminatory
tax arrangements.
JAPAN
1. Question
Answer
: We understand that even in the new régime, trading companies can obtain only
"liaison office" status which are not allowed to work on substantial import-export
transactions but "Branch offices" of foreign companies cannot be established? How
will this situation be changed in the future? Will branch offices of Trading
Companies be allowed?
: Liaison offices are not allowed to enter into transactions on export and import.
However, the Government of Indonesia gives the opportunity to foreign parties
to set up foreign capital investment companies to export either their own products
or those of other industrial manufacturers. Indonesia C/RM/M/52/Add.1
Page 11
2. Question We would like to know whether any factory, not only direct but also indirect
exporters, will be able to benefit from tax exemption in processing zones and if
yes, when?
Answer Tax exemption is granted to companies or factories operating in the Export
Processing Zone (EPZ) or the Export Oriented Entrepôt (EPTE). In order to benefit
for the exemption, the company must export 75 % of its final products. However,
the tax exemption is not granted to factories which supply parts or products to the
company in the EPZ or EPTE.
3. Question We would like to know if the Indonesian Government intends to stop the regulation
that prevents a foreign factory from being built in another area of FTZ/Industriai
Estate. If yes, what is the condition?
Answer Foreign companies may be established in any part of Indonesia. In a region which
already has industrial estates, the industrial processing activities of foreign capital
investors are prioritized in the industrial estates. Foreign companies are allowed
to be located outside such industrial zones if this is justified by technical and
economic considerations.
4. Question What is the concrete ratio of foreign ownershipment that must be transferred for
wholly foreign-owned companies located in Indonesia?
Answer To encourage foreign capital investment, the Government of Indonesia has
introduced a new Government Regulation No. 20 in 1994. The main content of
the policy is as follows:
- The foreign party may have a 100% share in the foreign capital company,
except for 9 fields where in Indonesia's share has to be a minimal 5% at the
time of establishment.
- For a foreign capital company whose original share is 100%, the foreign party
is under the obligation to sell to an Indonesian party within 15 years. The
number of shares thus transferred depends on mutual agreement.
5. Question Is the high export tax on wood products a subject to be improved?
Answer At this stage the Government has no plans to review the tax.
SWEDEN
1. Question Implementation of the UR
Does Indonesia plan to make use of any transitional arrangements foreseen in the
agreements?
What measures is Indonesia taking to implement the TRIPs Agreement? Is Indonesia
planning to change its current legislation concerning compulsory licensing of patent?
What measures are taken to deal with copyright infringements (such as copying
of software)? C/RM/M52/Add.1 Trade Policy Review Mechanism
Page 12
Answer Indonesia will implement the Round's outcome in accordance with the timetable.
However, in the context of ASEAN, we are moving faster than the Uruguay Round.
2. Question Customs Valuation
Does Indonesia see any inconsistencies in continuing PSI while at the same time
having to observe the Customs Valuation Agreement? Has Indonesia made any
calculations on the costs of maintaining the present PSI system? Are there any
plans to abandon the PSI system in the future?
Answer Indonesia, like other Uruguay Round signatories, is committed to applying the
agreement on the implementation of Article VII (Custom Valuation Agreement),
as well as the Agreement on PSI under the Uruguay Round. In the case of any
inconsistencies in the application of this agreement, the Customs Valuation
Agreement would take precedence.
3. Question Taxes and other charges
Are there any plans to abolish discriminatory aspects of relevant sales taxes and
excise taxes ?
Answer In line with the GATT Agreement, indonesia is planning to eliminate the
discriminatory tax arrangements.
4. Question Import prohibitions
In 1993, the number of prohibited imports was reduced from 48 tariff lines to 44
tariff items. We would like to have a clarification of the difference between tariff
lines and tariff items.
Answer In our terminology, tariff line and tariff item have the same meaning.
5. Question Quantitative restrictions
Does the Government plan to make available information on imported goods subject
to such restrictions ?
Answer Information on imported goods are available in the Indonesian Gazette.
6. Question Government procurement
Is Indonesia planning to join the new Agreement on Government Procurement?
What type of procurement are provinces and cities responsible for? How is
procurement in the construction sector regulated? Are there special rules for
electricity, water, transport and telecommunication projects?
Indonesia has no plans to joint the new Agreement on Government Procurement.
Answer: C/RM/M/52/Add.1
Page 13
7. Question:
Competition policies and law
Are there any plans to introduce a competition law to outlaw the use of anti-
competitive practices, which according to the Secretariat's report are widespread'?
Answer
8. Question:
Answer
Indonesia is still in the process of preparing draft competition legislation.
Civil Aircraft
Considering Indonesia's expanding Aircraft Industry, we would like to know if
Indonesia has any plans to join the Agreement on Trade in Civil Aircraft?
Indonesia has no plans to join the Agreement on Trade in Civil Aircraft.
HONG KONG
1. Question
Import Licensing
According to an estimate by the World Bank, over 30% of imports into Indonesia
are subject to licensing control (para 52, page 65 of C/RM/S/52). Does the
Indonesian Government have any plans to further simplify the import licensing
arrangements vis-a-vis future obligations under the WTO Agreement on Import
Licensing Procedures?
Answer Indonesia will simplify the import licensing arrangement according to the timeframe
of the Agreement.
2. Question
Subsidies
The country report (C/RM/G/52) does not contain information on the eligibility
of companies for export finance and export guarantees provided by the Indonesian
Government. We should be grateful to know if foreign owned firms would be
treated on a par with their local counterparts. Would particular industries be given
preference over others?
Answer
No answer available at the moment.
3. Question
Competition Policy
Does Indonesia intend to take any concrete steps to promote competition in the
private sector by reducing state participation to industrial enterprises and State
support to large private sector business groups?
Indonesia is still in the process of preparing draft competition legislation.
Indonesia
Answer: Trade Policy Review Mechanism
ARGENTINA
1. Question
Answer
: What is the impact of trade liberalization, in the framework of CEPT for AFTA,
on protection of domestic industry?
: The industrial products selected in the CEPT Scheme are among the most
competitive industries.
C/RM/M/52/Add.1
Page 14 |
GATT Library | pf286rp0156 | Trade Policy Review Mechanism. Israel. : Minutes of Meeting | General Agreement on Tariffs and Trade, January 31, 1995 | General Agreement on Tariffs and Trade (Organization) and Council | 31/01/1995 | official documents | C/RM/M/55 and 0172-0197 | https://exhibits.stanford.edu/gatt/catalog/pf286rp0156 | pf286rp0156_90080638.xml | GATT_1 | 11,836 | 80,887 | GENERAL AGREEMENT C/RM/M/55
31 January 1995
ON TARIFFS AND TRADE Limited Distribution
(95-0183)
COUNCIL
19-20 December 1994
TRADE POLICY REVIEW MECHANISM
ISRAEL
MINUTES OF MEETING
Chairman: Ambassador C. Manhusen (Sweden)
Page
I. INTRODUCTORY REMARKS BY THE CHAIRMAN OF THE COUNCIL 2
Il. OPENING STATEMENT BY THE REPRESENTATIVE OF ISRAEL 3
III. STATEMENT BY THE FIRST DISCUSSANT 6
IV. STATEMENT BY THE SECOND DISCUSSANT 8
V. STATEMENTS BY MEMBERS OF THE COUNCIL 10
VI. REPLIES BY THE REPRESENTATIVE OF ISRAEL AND ADDITIONAL 15
COMMENTS
VII. CONCLUDING REMARKS BY THE CHAIRMAN OF THE COUNCIL 21 C/RM/M/55 Trade Policy Review Mechanism
Page 2
I. INTRODUCTORY REMARKS BY THE CHAIRMAN OF THE COUNCIL
1. The Chairman (Ambassador Manhusen), introducing the first review of Israel's trade policies
and practices, welcomed the Israeli delegation headed by H.E. Ambassador Lamdan, members of the
Council, and the discussants. Ambassador Ernesto Tironi and Mr. José Lufs Perez Sanchez. As usual,
the discussants would speak in their personal capacities.
2. The Chairman recalled the objective of the Trade Policy Review Mechanism, as decided by
the CONTRACTING PARTIES on 12 April 1989 (BISD 36S/403). The Council was to base its work
on two reports, one submitted by the Government of Israel (C/RM/G/55) and the other by the GATT
Secretariat (C/RM/S/55 and Corr. 1). He reminded the Council of the procedures for conducting reviews,
introduced in May 1993 (document L/7208).
3. Hong Kong and the United States had given advance notice in writing of points they wished
to address during the meeting. These had been conveyed to the Israeli delegation and copies were
available to Council members. Israel C/RM/M/55
Page 3
Il. OPENING STATEMENT BY THE REPRESENTATIVE OF ISRA.EL
4. The representative of Israel noted that, after successfully launching its Economic Stabilization
Programme in July 1985, which brought inflation down from an annual rate of over 400 per cent to
around 16-20 per cent; after achieving full implementation of its FTA agreement with the EC on
1 January 1989 when all tariff duties on industrial imports to Israel were eliminated; after making
substantial progress in opening up its market to U.S. products within the framework of the U.S.-Israel
FTA agreement, which would be fully implemented on 1 January 1995; after all these significant
economic decisions and developments, Israel had engaged in 1991 in a new far-reaching programme
of market-oriented economic reforms aimed at enhancing its integration into the world economy,
diversifying its export markets and improving its competitive position. The first signs of such reforms
had already been observed in 1987-89: increased liberalization of foreign currency controls, as well
as reductions of some m.f.n. tariff duties in order to minimize trade diversion which might have resulted
from the implementation of Israel's FTA agreements.
5. In April 1991, the Government of Israel had decided unilaterally to open the Israeli market
to competition from countries not covered by FTAs. As a result of the Trade Liberalization Programme
implemented since 1991, tariffs had been imposed, initially at high levels, to replace discretionary
licensing and quantitative restrictions and these tariffs were being gradually reduced, according to a
pre-announced and legislated programme, to reach a final level of 8 to 12 per cent within 5-9 years,
that is, between 1996 and the year 2000. This programme covered all industrial sectors.
6. The tariffication oflicensing requirements and the consistent implementation oftariffreductions
(with some minor exceptions from the original programme) had already had an initial impact and induced
improvements in the competitiveness of Israeli products. Moreover, the changes of the political
environment in the last few years, had created the possibility of new trade relations and opening of
new markets, such as China, Russia and India, while exposing Israeli industry to increased competition.
It should be noted that this liberalization policy had been implemented despite the external economic
difficulties that Israel had to face. This increased openness would be further expanded to include the
sensitive agricultural sector as a result of the Uruguay Round Agreement on Agriculture.
7. One of the greatest challenges facing Israel in this period had been the massive wave of new
immigrants, mainly from the former Soviet Union. Since the beginning of 1989 Israel had absorbed
600,000 new immigrants, increasing Israel's population by more than 12 per cent. As a result, Israel
had to generate accelerated expansion to provide for the immigrants needs, while preserving
macroeconomic stability. The Government's strategy had been to help create the conditions necessary
for sustainable economic growth. This had been implemented by refraining from direct government
intervention in the economy, while simultaneously seeking to encourage increased economic efficiency
and competition through the liberalization of the economy.
8. Israel had successfully absorbed the massive immigration through encouraging the private sector
to take advantage of the new opportunities resulting from reduced government intervention. The
economic reforms occurring in Israel had involved unilateral trade and foreign exchange liberalization;
tax reform and lowering of the overall tax burden; reducing state subsidies, budget deficit reduction;
deregulation and privatization. These policies were in line with the recommendations of GATT and
the IMF, and had been implemented through Israel's democratic framework, ensuring legal recourse
through the country's independent judiciary system.
9. Over the previous five years, the Israeli economy had grown at a strong pace. GDP had grown
by 33 per cent and the business sector product by 40 per cent, while exports had grown by 30 per cent
and public sector investment in the country's physical infrastructure amounted to US$9 billion. At
the same time unemployment had initially risen to over 11 per cent in 1992 and had since fallen to C/RM/M/55 Trade Policy Review Mechanism
Page 4
7.5 per cent in the second halfof 1994, while inflation dropped from above 18 per cent, at the beginning
of the 1990s, to below 10 per cent in 1992, although it had risen again to just over 14 per cent in 1994.
10. In part, the policies which had led to these successes had also heightened Israel's balance of
trade deficit, which had risen from US$3.5 billion in 1990 to US$8.3 billion in 1994 as a result of
a 65 per cent increase in the level of imports over this period. This had also led to current account
deficits in the balance of payments, reaching over US$3.4 billion this year, which had required raising
additional sources of external financing. Moreover, in response to the renewed inflationary pressures,
which had already been mentioned, the Treasury and the Bank of Israel had been working to check
inflation and bring it down to a low single digit level, which was essential to ensure stable economic
growth and the maintaining of the profitability of the export sector. In the meantime, the central bank
had been implementing a restrictive monetary policy by raising interest rates. This policy had led to
an appreciation of the Israeli currency, which in the short term had negatively affected the
competitiveness of exports.
11. Israel's future economic developments would depend on the growth in investment in areas that
would enhance its industrial development, particularly in fields like research and development which
would further strengthen its comparative advantage.
12. Similarly, recent developments in the peace process were expected to offer new opportunities
for massive investment in the region as a whole, spurred by new possibilities of co-operation in the
Middle East. Three important issues were on the agenda in 1994: the agreement with the Palestinian
Authority (the "Cairo Agreement"), the peace treaty with the Kingdom of Jordan and the beginning
of improved relationships with Arab and Moslem countries. The economic protocol of the Cairo
Agreement maintained the principle of free movement of goods and labour within a single customs
territory, thus allowing several tens of thousands of inhabitants from the autonomous territories to work
in Israel and opening the Israeli market to all products originating in the Autonomy, with some sensitive
agricultural and poultry products only being allowed full access after a transitional period.
13. Following the peace treaty, Israel and Jordan were now in the process of negotiating a number
of economic agreements to be concluded by May 1995: a trade agreement based on MFN principles
as well as agreements on investment, labour, industrial co-operation and banking. In the field of tourism,
relations had already developed at a rapid pace. Commercial relations with Egypt had also entered
a more dynamic phase with official and industrial delegations having been exchanged with a clear purpose
of enhancing the mutual relations between the two countries.
14. She said that the Arab boycott was still a significant issue. Despite several declarations against
the boycott and the partial lifting of the secondary and tertiary boycott by some Arab countries, no
move by the Arab League to end the boycott on direct trade with Israel was envisaged.
15. Despite the fact the Arab Boycott had yet to be fully dismantled, the growing relations between
Israel and her neighbours had helped encourage third countries and multinationals, that previously
refrained from developing ties with Israel, to do otherwise. As a result, there had been increasing
interest from the international business sector to trade and co-operate with Israeli companies as well
as to invest in Israel.
16. Relations with Arab countries were still at an early stage and their markets would not be
significant outlets for Israeli goods. Fortunately, the political, economic and commercial relations
with countries that had previously been severely limited, were entering now a new phase of development.
In that context, Israel had signed MFN agreements the previous year with Russia, Ukraine, China and Israel C/RM/M/55
Page 5
now with India, and was also in the process of negotiating FTA agreements with Canada, Turkey,
Poland, Hungary, the Czech Republic and Slovakia.
17. To conclude, Israel was fully committed to its obligations under the Uruguay Round. Israel
regarded the successful completion of the Round as a highly significant event that would help expand
international trade and, therefore, world output and income. Israel was in the process of ratifying
the Agreement, as well as making the necessary legal amendments required. The Israeli authorities
believed that through this agreement Israel would be able to continue to integrate its economy into
the world market, while proceeding with economic reforms to enhance competition and efficiency.
18. She said that Israel perceived that the Uruguay Round Agreement and its implementation
constituted a necessary and essential step to ensure the further and harmonious development of world
trade and Israel was willing to be a full and active partner in that process. C/RM/M/55 Trade Policy Review Mechanism
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III. STATEMENT BY THE FIRST DISCUSSANT
19. The first discussant, Ambassador Ernesto Tironi, highlighted three matters deserving further
analysis. These included the considerable depth of the structural reforms undertaken by Israel in the
past three years, the fact that these reforms did not have an adverse effect on the general economic
performance of the economy, and the fact that the free trade agreements concluded by Israel with the
European Community and the United States did not appear to have had a considerable impact on trade.
20. Under Israel's trade liberalization programme administrative restrictions had been replaced
by tariffs, which were being gradually reduced over a period of five to nine years to 8 per cent for
raw materials and 12 per cent for finished products. The entry into force of the Uruguay Round
Agreement on Agriculture would have considerable impact on the Israeli economy.
21. Israel's 1991 programme could be considered as a structural adjustment plan of the kind proposed
by the International Monetary Fund, which implied deregulation, the promotion of the private sector,
reduction of taxes, elimination of subsidies, privatization and, in particular, trade liberalization.
According to some views the implementation of such a programme should have resulted in a considerable
increase in imports, slowdown of the domestic industry, a decline in GDP and an increase in
unemployment. In the case of Israel, something different happened: imports rose reasonably, exports
increased considerably, national production increased, especially industrial production, inflation declined,
and unemployment also declined in spite of massive immigration. He sought Israel's views on why
the structural adjustment policy had not adversely affected its economy.
22. His proposed possible explanations included that, in terms of economic opening, the reform
had not yet had any effects because it was not substantial, that the transitional period might be long,
that other compensatory measures might have been taken, that the Israeli market was already open
due to its free trade agreements which covered three quarters of its trade, and that the restrictions
eliminated under the programme had in fact already been reduced since 1978. Other possible
explanations included that state-owned enterprises were still dominant, and that the evolution of the
exchange rate might have excercized a compensatory effect. Overall, he noted that the results of the
1991 reform programme were still to be seen.
23. He also noted that the impact of the free trade agreements was mixed. The FTA agreement
with the EC appeared to have benefitted more exports from the EC to Israel than Israeli exports to
the EC. The share of imports from the EC in total Israeli imports had risen from 43 per cent in 1975
to 49 per cent in 1993, while Israeli exports to the EC as a share of total Israeli exports had declined
from 45 per cent to 31 per cent. This had resulted in a trade deficit with the EC, reaching US$5 billion
in 1993. He sought Israel's view on this question. He referred to certain possible explanations, including
the fact that the agreement did not covered comprehensively the agricultural sector, that there were
very complex rules of origin. He recalled that, when the GATT evaluated this agreement, a number
of delegations had expressed concerns about the existence of strict rules of origin, which threatened
to divert trade.
24. The free trade agreement with the United States was different, favouring Israel's exports to
this market. Israeli exports to the United States as a share of total Israeli exports had increased from
18 per cent in 1980 to 32 per cent in 1987 and 30 per cent in 1993, while the share of imports from
the United States remained stable at around 19 per cent. The trade balance was positive. He asked
why this agreement was more favourable to Israeli exports that the FTA with the EC. He believed
that possible explanations were that agriculture was covered and that rules of origin might be simpler
in the agreement with the United States. Israel C/RM/M/55
Page 7
25. The performance of the Israeli external sector would in the future be influenced by a number
of factors including the peace process and the follow up of the Casablanca Summit, the elimination
of the boycott, and a further opening towards Asia and Latin America. He asked about Israel's position
with regard to the proposed establishment of a regional common market, trade perspectives with
neighboring countries, and the possibility of reducing defence spending. C/RM/M/55 Trade Policy Review Mechanism
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IV. STATEMENT BY THE SECOND DISCUSSANT
26. The second discussant, Mr. José Lufs Perez Sanchez, sought clarification on: the coverage
of the 15 per cent price preference and offset requirements on public sector procurement; export
prohibition, where he requested the list of banned export products including animals, meat, dairy
products, cereals and other agricultural products; and import prohibition, where he requested the list
of products subject to import prohibition. He asked if the products subject to import prohibition were
those listed in Annex V. 1, being restricted for reasons of supply self-sufficiency.
27. In examining the situation of Israel with its historical background, he described the success
of Israel in the 1960s as a miracle in the desert and a miracle in the wilderness. The Israeli economy
was conditioned by two circumstances: external circumstances, which characterized the economy as
a wartime economy, and internal domestic circumstances, historical and social aspects which gave it
a very special feature, its "corporatism", giving great importance to the public sector. Military costs
were 25 per cent of the GNP and two-thirds of economic activities were generated by the public sector.
Under these circumstances it was obvious that economic and trade policies were not autonomous, but
were the result of, and were conditioned by, external and internal circumstances.
28. He referred to Israel's current economic situation and the prospects for the near future. There
were hopes, following the peace agreement, of the Arab boycott being eliminated, for the conclusion
of a number of Mediterranean agreements, whether a Mediterranean Common Market or under other
Mediterranean arrangements of the European Union. In the medium-term, the balance of payments
could be improved by increased tourism receipts or larger capital investments. It should also be possible
to correct the budget deficit as economic activity grew, rather than by taxing imports. Although Israel
had been able to reduce inflation, it was still relatively very high.
29. He noted that the structural adjustment programme would have to continue, with a speeding-up
of the liberalization process and increased domestic competition. It was also important that trade policy
be oriented towards diversification, and economic policy towards efficiency in the allocation of resources.
30. Referring to a number of economic and social indicators given in the Secretariat report, he
questioned Israel's status as a developing country. He said that Israel, having a per capita income
of US$13,000 in 1992, was not a developing but a mature country.
31. He referred to Israel's short-term objective to facilitate the transition from subsidized agriculture
to a liberalized agriculture which was export-oriented. The Israeli Government had noted in its report
that, in the long-term, agriculture had to become a scientific type of activity, based on the development
of water resources, as well as research and development. However, the Government report had also
noted that the agricultural sector had financial problems. He encouraged Israel to apply financial
resources to technological research in agriculture and to make it clear that the protection given at the
present time would be modified and that the market would be opened up.
32. Turning to specific subjects in the context of Israel's trade policies and practices by measures,
he said that Israel had to speed up its trade liberalization programme. The implementation of the
Uruguay Round would result in more internal competition.
33. Free trade agreements should not increase discrimination, in particular attention should be given
to special treatment given to the agricultural and fisheries sectors. Article XXIV of the GATT should
not be used to cover non-fulfilment of Article I, the m.f.n. clause. At the same time, he hoped that
the FTA agreements with the European Union would be improved so that there would be a dispute Israel C/RM/M/55
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settlement system on a bilateral level for any complaints under this agreement, similar to the procedure
under the agreement with the United States.
34. Referring to measures affecting imports, he said that customs duties should be more transparent,
and noted that Israel's customs valuation system, which included administrative increases to declared
values of up to 10 per cent (the HARAMA system) would have to be adjusted to the Uruguay Round
Agreement. He said that the 1.5 per cent wharfage fee could be a disguised export subsidy, and that
the system for calculating the purchase tax (TAMA) discriminated against imports. He questioned
why purchase tax was levied on imports even when there was no domestic production. He suggested
that it would be more competitive to prepare a list of products not produced domestically and exempt
them from this tax.
35. He asked whether there was a list of specific products subject to import prohibition and requested
clarification on the procedures for granting import licences, adding that the system should be transparent.
He questioned the need to have a State enterprise with a monopoly for importing meat. Noting that
there was a relatively long delay for granting certificates related to standards and technical regulations,
he asked if there was a maximum time limit for the granting of these certificates, or if it was
discretionary. Another area of concern was the large number of samples required for homologation
procedures; this was very costly for exporters. He asked if the number of samples required was based
on a regulation or if it was at the discretion of the authorities.
36. Twenty-two public enterprises had been privatised until 1992, but this was relatively low when
compared with the 170 public enterprises, out of which 82 were commercial enterprises, still in activity.
Given that two-thirds of economic activities were accounted for by the public sector, he said that there
was greater scope for privatization. Furthermore, in public sector purchases, national production was
given a 15 per cent price advantage and 35 per cent offset was required. He noted that, as a result,
there was a great protectionist element in government procurement. He recalled that the protection
of one sector might affect other sectors, result in a situation where policies disadvantaged competition
and consumers, and increase rigidity in economic development. In a rigid system, one could find that
there was permanent structural inflation. He also wished that rules of origin be made compatible between
all the agreements and that countries should harmonize them with the Uruguay Round Agreement.
37. Referring to measures affecting exports, he noted that there were still export prohibitions.
He asked about the economic and social basis for this measure. Export licences were justified by the
Israeli authorities as being for quality and health control; however, this sort of control was done in
other countries at the time of shipping at the frontier. Me questioned the need for such a licensing
requirement, and asked whether excessive bureaucracy and red tape was involved. He then referred
to export subsidies, noting that financing facilities for capital goods should be effectively harmonized
with OECD practices. He asked if the export premium of 4 to 5 per cent per dollar of value added
still existed, how export subsidies for agricultural products were applied, and to what extent the wharfage
fee affected exports. Noting that there was a very generous support for export promotion, he sought
information on the rules governing the Israeli Export Institute. Concerning measures affecting production
and trade, he noted that R&D support was fundamental but that it had to be adapted to the GATT
Subsidies Code. Moreover, regional assistance had to be transparent.
38. In summary, he noted that there was a certain degree of obscurity in Israel's trade policies,
and that remaining protectionist measures had to be clarified and eliminated. C/RM/M/55 Trade Policy Review Mechanism
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V. STATEMENTS BY MEMBERS OF THE COUNCIL
39. The representative of Australia congratulated Israel for its improved trade performance, which
was a reflection of its growing integration into the world economy and the removal of trade barriers.
Israel's trade reforms included the autonomous reduction of barriers against imports from countries
not covered by FTAs, the elimination of most import restrictions, a tariff reduction programme, the
elimination of direct export subsidies and the elimination of administrative import restrictions. However,
much remained to be done, especially in the agricultural sector. Australia strongly encouraged Israel
to maintain its trade reform momentum, and continued to look forward to further liberalization in the
agricultural sector. Noting that the Government of Israel had reported a slowdown in imports from
third countries, she urged Israel to continue its efforts to ensure reasonable access for non-FTA partners.
40. She noted that Israel's tariff structure was complex with a mixture of specific, combined and
alternate rates. Ad valorem equivalents for these rates were not available. While welcoming Israel's
market access offer in the Uruguay Round, Australia continued to be concerned by the high level of
tariffs on a large number of products, including fruit and vegetables and dairy products. Australia
was also concerned by the number of products subject to tariff quotas and the high level of above-quota
tariff rates. Import restrictions had been rnaintained on 17 tariff lines in the agricultural sector. Domestic
support and export subsidies for the agricultural sector would be reduced under the Uruguay Round
Agreement on Agriculture. She asked what changes in agricultural legislation were expected to be
introduced to implement the Uruguay Round Agreement, and what administrative arrangements were
to be taken for agricultural products under quotas.
41. The representative of the European Communities noted that the EC was Israel's main trading
partner, accounting for half of Israel's imports and one third of its exports. The basis for trade relations
between the EC and Israel was the 1975 FTA agreement covering both industrial and agricultural
products. A new agreement was being negotiated and was expected to be concluded in early 1995.
42. Israel's Economic Stabilization Programme coupled with structural adjustment measures had
laid down a firm basis for economic recovery with relative price stability. The Government's reform
efforts also extended to the external side. The 1991 trade liberalization programme had been instrumental
in fostering a more liberal and transparent trade régime. The European Communities welcomed Israel's
efforts to limit the use of licences and quantitative restrictions, as well as the elimination of the 2 per cent
import levy used for balance-of-payments reasons. He asked if Israel remained committed to eliminating
import licences for agricultural products justified under the GATT balance-of-payments provisions.
43. One of the lessons that could be drawn from Israel's experience was that sound macroeconomic
policies were necessary, although not sufficient, for promoting a more liberal trade régime. Additional
efforts were required by Israel in order to create a more open trade régime. Areas of concern for
the EC included the complexity of the tariff structure, escalation of tariff rates, remaining import
restrictions on agricultural products, very high bound tariff rates as a result of the Uruguay Round
negotiations, the 15 per cent price preference in government procurement, internal taxes and export
subsidies. Noting that the State still controlled a large share of economic activity, he said that the
privatization process needed to be speeded up in order to ensure the necessary conditions for free
competition.
44. He hoped that the recent positive political developments in the region, as well as the conclusion
of the Uruguay Round, would be conducive to creating a more open trade régime and would give new
and better opportunities for Israel. Israel C/RM/M/55
Page 11
45. The representative of Japan noted that his country and Israel were in the process of reinforcing
bilateral economic relationships and cooperation. An agreement on cooperation in science and technology
had been recently signed. He hoped that this agreement would further strengthen trade and economic
relations. Japan had no major trade and investment problems with Israel.
46. Government procurement practices and preferential trade agreements were two areas of concern
for Japan. Some Japanese companies trading with Israel had met with some difficulties concerning
counter-purchase requirements. Noting that these requirements seemed not to be based on written
laws or regulations but on administrative decisions, he asked if this situation would be changed in the
near future. Some Japanese companies had also mentioned that the difference in the tariff levels applied
on imports from FTA sources and Japan were enormous. Japan encouraged Israel to continue liberalizing
its market, including the reduction of m.f.n. tariffs. He sought information on the schedule of tariff
reductions.
47. The representative of Canada noted that his country's trade with Israel was increasing. Sectors
of commercial interest to Canada included telecommunications, transportation, high technology,
environmental technologies and services, and power generation.
48. Israel had gradually moved from a strongly protected economy to one which was increasingly
open to foreign competition. Israel had also signed a number of free trade agreements. Canada saw
these agreements and initiatives as strong positive impetuses to the country's overall trade development.
Canada and Israel announced on 21 November their intent to begin negotiations on a Free Trade
Agreement, which was expected to come into effect in January 1996.
49. Israel's broad trade policy objectives appeared to be in line with its transition to an industrialized
country. The improvements in Israel's foreign trade régime in the last few years were an encouraging
sign of the country's trade maturity. Its trade liberalization programme had brought radical changes
to the protection system. While import liberalization had increased the efficiency of the trading system,
Israel still maintained a rather complicated tariff structure. He noted that, although there were
domestically driven reasons for utilizing several types of rates, Israel would benefit greatly in long-term
trade efficiency gains by instituting a process of tariff simplification and by binding its remaining tariff
lines. A particular area of concern for Canada was the level of effective protection that tariffescalation
afforded.
50. Recalling several trade policy initiatives undertaken over the past decade, which pointed to
an Israel committed to being an international, market-driven economy, he said that certain Israeli trade
practices could still benefit from liberalization and restructuring. These included the barriers protecting
certain areas of the agricultural sector, the government procurement system and direct agricultural
export subsidies.
51. Canada had provided the Israeli delegation with detailed written questions, which covered the
following areas: standards; marking, labelling and packaging; import prohibitions; liberalization
commitments under the Uruguay Round; Special Treatment Provisions of the Agreement on Agriculture;
safeguards; anti-dumping; State trading, in particular for beefand veal; and government procurement.
52. The representative of Sweden. speaking on behalf of the Nordic countries, welcomed Israel's
trade liberalization programme implemented in 1991, and appreciated the elimination of the 2 per cent
import levy in 1993. Tariffs had replaced licences and quantitative restrictions, though they were initially
set at relatively high levels. The trade reforms had a positive impact on the economy. An efficient
implementation of the Uruguay Round results would reinforce this trend. C/RM/M/55 Trade Policy Review Mechanism
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53. The Nordic countries welcomed the positive political developments in the region. The peace
process would result in better conditions for the trading partners and would increase Israel's access
to new markets. The Nordic countries firmly believed that the peace process was a key positive factor
for all parties involved.
54. He referred to certain points of concern for the Nordic countries. Trading partners had
experienced different treatment between domestic and imported goods in relation to technical regulations
and standards. He encouraged Israel to use international standards. Complaints had also been received
about the methods for calculating the purchase tax (the TAMA system), which appeared to discriminate
against imported goods. He sought clarification about the Israeli position with regard to this situation.
The activities of public companies and the existence of monopolies and cartels constituted an obstacle
to trade and free competition. He noted with satisfaction that in 1991 the Government had given an
impetus to the privatization programme, although he felt that this was still rather slow. The Nordic
countries would welcome a removal of remaining trade barriers and the implementation of measures
to increase competition in the Israeli domestic market.
55. The Nordic countries had given the Israeli delegation written specific questions which covered
competition, technical regulations and standards, import licences, and the purchase tax.
56. The representative of Turkey noted that since 1985, significant progress had been made in
the modernization of the Israeli economy. Since 1991, Israel had complemented its free trade agreements
with the autonomous reduction in tariff barriers against imports from third countries. However, there
was still a lack of transparency and it was difficult to estimate the real tariff burden on imports. This
was the case for most agricultural products, for which real protection was high and unpredictable.
Turkey hoped that the implementation of Israel's commitments under the Uruguay Round Agreement
would increase transparency and facilitate market access. He sought detailed information on Israel's
privatization programme.
57. Turkey believed that the peace process would bring a new atmosphere into the region, facilitating
the opening-up of markets, creating new opportunities for foreign direct investment and trade, and
furthering Israel's integration into the world economy.
58. The representative of Poland requested information on the powers of the Ministry of Industry
and Trade to impose restrictions or countermeasures against imports from specific countries. He asked
if there were any industrial products still subject to import licensing requirements, and if there was
any special criteria for granting import licences for textiles and garments. He also requested additional
information on customs valuation, the maximum "uplift rate", the existence of additional import levies,
and import surcharges.
59. Noting that mutual recognition of national standards would facilitate bilateral trade and that
the Standards Institute of Israel was entitled to accept test reports performed in other countries, he
asked if the Ministry of Industry and Trade was entitled to sign bilateral agreements on mutual
recognition of standards.
60. The representative of the United States congratulated the Government of Israel for the progress
made in reforming and opening the Israeli economy. He welcomed the privatization of the banking
sector and encouraged the Government of Israel to expand its privatization programme to the
telecommunications and transport sectors.
61. Israel had pursued trade liberalization through multilateral and bilateral tracks. The Israel-
United States Free Trade Agreement was a comprehensive agreement, reducing to zero tariffs on all Israel C/RM/M/55
Page 13
products, including agricultural products. The United States would implement the final stage of tariff
reductions on 1 January 1995. On the multilateral front, he welcomed Israel's commitment to the WTO,
and commended the Government of Israel for autonomously reducing import barriers vis-à-vis non-FTA
trading partners. The United States encouraged continued and accelerated progress on each of these
tracks in the future.
62. The United States was concerned about wharfage and port fees which tended to discriminate
against imports. The United States believed that the time frame for the elimination of the fee system,
five years, as recommended by a special Israeli committee, was too long. He asked about the possibility
for elimination of the discriminatory wharfage and port fees. Another area of concern was lsrael's
taxation practices (TAMA/HARAMA) which tended to discriminate in favour of domestic products
by artificially raising the value of imports. He sought information on any planned changes in the
TAMA/HARAMA practices. He also asked what was the present status of Israel's efforts to improve
the transparency in licensing and in the calculation of variable levies.
63. He commended the Government of Israel for its commitment under the Uruguay Round
Agreements to bind most tariff fines and convert import restrictions, including on most agricultural
products, into tariff rate quotas. Tariffication of import licences and quotas would enhance both
efficiency and transparency in the trade régime. However, the United States was concerned about
remaining import quota restrictions on certain animal and dairy products as well as export subsidies
granted to certain agricultural products. He asked what steps were being taken with respect to the
tariffication of import restrictions on live animals and dairy products, and sought information on
agricultural export subsidies and their impact on the sector. The United States was also concerned
about the effect that agricultural marketing boards might have on price competition. He asked what
steps the Government of Israel was taking to ensure that the marketing boards did not distort competition.
64. Noting that certain aspects of Israel's rules for Kosher certification were discriminatory and
were applied for the purpose of protecting domestically produced products, such as wine and beef,
he sought information on any plans to reduce or eliminate the discriminatory aspects of these rules.
65. The United States applauded Israel's commitment, as a signatory of the Agreement on
Government Procurement to improve access to government contracts for foreign bidders. The
representative also welcomed Israel's commitment to gradually reduce offset requirements for code
covered purchases under the new agreement. However, the United States was still concerned about
offset requirements and preferential margins maintained with respect to purchases that were not covered
by the agreement
66. In conclusion, he commended the Government of Israel for its efforts to reform its economy
and liberalize trade. The United States believed that Israel's commitments under the Uruguay Round
Agreements would benefit Israel through improved efficiency and allocation of resources as well as
increased opportunities for its exports to foreign markets. He encouraged the Government of Israel
to continue in its efforts toward trade liberalization.
67. The representative of Hong Kong commended Israel for its market-oriented economic reforms
and the liberalization of its trade régime, and noted the impressive economic growth achieved by Israel.
He asked if there were any plans to simplify the complex tarff structure. He noted that the refusal
of the Kosher certificate could effectively block foreign sales to the larger part of the Israeli market,
and asked about the criteria for granting a Kosher certificate and whether information on these criteria
were available to foreign traders.
68. He noted that imports subject to standards requirements had to be sample-tested at port before
being allowed to enter Israel, while domestic products were subject to market inspection. In this respect, C/RM/M/55 Trade Policy Review Mechanism
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he sought information on the progress made in developing an equivalent enforcement system. He also
requested information on the additional criteria used to allow imports of certain products including
textiles, garments and footwear.
69. Hong Kong had provided the Israeli delegation with an advance written question concerning
government procurement practices.
70. The representative of Argentina referred to Israel's economic performance and recalled its general
objectives including industrial development, absorption of immigrants and raising living standards.
Israel had most of the characteristics of an industrialized country. Its trade was oriented towards distant
markets for various reasons. With respect to the FTAs with the European Communities and the
United States, he sought information on the evolution of the product composition of this trade, and
the authorities' views about Israel's overall trade trends. He said that export diversification in terms
of products and markets was proceeding rather slowly, and asked if this was due to certain restrictive
practices.
71. He raised questions about a number of Israeli trade practices, including the privatization of
meat imports, sanitary and phytosanitary requirements, and government procurement practices.
72. The representative of India hoped that trade relations with Israel would be encouraged by recent
political developments in the region. India also hoped to benefit from Israel's experience in the area
of technical cooperation, in particular irrigation and farming techniques. He expected that Israel would
play an active rôle in trade and economic development in the region. Israel C/RM/M/55
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VI. REPLIES BY THE REPRESENTATIVE OF ISRAEL AND ADDITIONAL COMMENTS
73. The Chairman of the Council invited the representative of Israel, in giving the replies, to focus
on four major themes: Israel's economic restructuring programme and recent geopolitical developments;
the pattern of Israel's trade liberalization; agricultural trade policies; and other specific trade issues.
(1) Economic restructuring and recent geopolitical developments
74. The representative of Israel highlighted certain points which were important to understand Israel's
unique situation. Israel was dependent on access to more distant markets, because its domestic market
was relatively small and it had limited access to neighbouring markets. Due to its geopolitical situation,
10 per cent of GNP was devoted to defense expenditure; although this figure was lower than at the
beginning of the 1980s, it still imposed a heavy burden on the economy. Defense expenditure was
likely to remain high in the near future because of remaining security concerns. Israel was dependent
on external sources for raw materials as it had very limited natural resources. It was highly dependent
on foreign trade.
75. Following the Economic Stabilization Programme and despite massive immigration, the
Government had reduced its involvement in the economy and had implemented wide ranging economic
reforms. It had reduced budgetary expenditures from nearly 60 per cent of GDP in 1986 to under
50 per cent in 1994. In 1991, the Knesset had adopted a Budget Deficit Reduction Law to reduce
the domestic component of the budget deficit. Accordingly, the deficit was reduced from 5.2 per cent
of GDP in 1991 to 2.4 per cent in 1993 and although the planned deficit for 1994 was 3 per cent, it
was expected to be just over 1 per cent of GDP. At the same time, indirect taxes had been cut, income
tax had been reformed, corporate income tax had been reduced and industrial subsidies had also been
reduced.
76. Privatization was seen by the Government of Israel as one of its central economic objectives,
intended to increase competition, improve efficiency, attract foreign investment, reduce the budget
deficit, widen share ownership, and further develop Israel's capital market. Government-owned
companies had to act as commercial enterprises. Continued losses by a government-owned company
could lead to bankruptcy proceedings, as was the case with El Al in the 1980s. Between 1990 and
1993, the Government had raised over US$4 billion from privatization. The large fall in the domestic
stock market frustrated plans for the flotation of government-owned companies in 1994; however,
certain progress was made in privatization. In 1995, the Government was expecting to raise over
US$1 billion from the sale of equity in government companies.
77. The Government had placed an important emphasis on improving the competitiveness of Israeli
companies as part of its policy of increasing Israel's integration into the world economy. It believed
that increased competition was closely linked to improved efficiency and lower prices. The Government
had acted to open and increase competition in many fields, including: the telecommunications sector,
where a second competitor had been licensed in the cellular telephone field and a tender for a second
operator of international calls was being prepared; the petrol market especially in the retail sector;
the international air transport sector, with the adoption of an open skies policy; the domestic air transport
sector where a tender for a second domestic carrier was being prepared; and the capital market, where
the Government was diluting the previously high concentration level of the banking sector.
78. Israel had also made progress in making the New Israeli Shekel fully convertible. In 1993,
Israel acceded to Article VIII of the IMF. In August 1991, further steps were taken to liberalize currency
transactions, including the removal of restrictions on Israeli companies investing abroad. C/RM/M/55 Trade Policy Review Mechanism
Page 16
79. These macro and microeconomic policies were implemented in a period when Israel was aiming
at absorbing 600,000 new immigrants and reducing unemployment, while its trade deficit grew to over
US$8 billion and its current account deficit reached US$3.4 billion. Despite these unfavourable external
circumstances, Israel was fully committed to continuing and deepening its economic reform programme.
80. When discussing Israel's current economic development, the regional context could not be
ignored. Israel was in the process of deepening and formalizing its economic relations with the
Palestinian Authority, Jordan and Egypt. Israel recognized that it was in its interest to assist its
neighbours' economic development as an important element in ensuring an enduring and lasting peace.
81. The second discussant commented on Israel's recent economic developments and the reduction
in military expenditures. Under these circumstances, import taxes might not be absolutely necessary
as a source of government revenue.
(2) The pattern of Israel's trade liberalization
82. The representative of Israel stressed that the aims of the 1991 trade liberalization programme
were to: enhance Israel's integration into the world economy; create new challenges and induce Israeli
manufacturers to improve their competitive position; minimize possible negative effects of trade diversion
which might result from free trade agreements; check inflationary pressures by allowing access for
lower priced products, thereby enhancing the welfare of Israeli consumers; achieve a better allocation
of resources; and enhance trade relations with countries not covered by FTA agreements, thereby
improving the opportunities for the diversification of export markets. The programme allowed sufficient
time for the necessary structural adjustment of affected sectors, thereby minimizing possible negative
effects on employment.
83. Tariffs, which replaced discretionary licensing and quantitative restrictions, were initially set
at relatively high rates in order to provide sufficient protection and prevent disruption of the domestic
industry. A clear time schedule for tariff reductions was established and a final maximum rate of duty
was set at 8 per cent for raw materials and 12 per cent for intermediate and finished products. Tariff
reductions were to be linear, implemented each year on 1 September, and would provide for the phasing
out of the specific component of the duties. All specific duties would be eliminated under the
programme. Most products would reach their final duty on 1 September 1996, but more sensitive
products would do so on 1 September 1998, while final rates for textiles would be achieved on
1 September 2000. The time schedule of tariff reductions was included in an order signed by the Minister
of Finance and was published as an integral part of Israel's Customs Tariffs Schedule. Changes resulting
in the slowdown of the liberalization programme could not be implemented without Knesset approval.
84. The impact of the trade liberalization programme was already being felt, with an increase in
the share of imports from non-FTA countries. Israel expected that the impact would become more
substantial with the deepening of the liberalization programme.
85. Israel was also engaged in a process of bilateral trade negotiations, including the free trade
agreement with EFTA countries which came into effect on 1 January 1993 and eliminated duties on
all industrial products and substantially reduced duties in the agricultural sector. Negotiations with
Canada had just been initiated for the establishment of an FTA to be implemented at the beginning
of 1996. Exploratory talks had also been held with Turkey and Central European countries concerning
the possibility of establishing free trade areas which would complement the agreements that these
countries had with the European Communities. Israel C/RM/M/55
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86. Israel and the European Communities were in the process of negotiating a new more
comprehensive agreement. Israel was not prepared to enter into a deep analysis regarding its trade
performance with the EC. Among the many factors that could be considered in this respect, one was
the insufficient degree of industrial cooperation between Israeli and European companies, probably
due to the effects of the Arab boycott. Israel hoped that the peace process would change this situation.
Israel was ready to undertake all efforts for the success of the peace process and had expressed her
willingness to open negotiations with Jordan for the establishment of a free trade area and, in the future,
for a regional economic agreement with neighbouring countries.
87. The first discussant noted that the share of imports from the European Communities had increased
while that of the rest of the world fell considerably. He was of the view that Israel's FTA agreement
with the EC had not created trade for Israel but had diverted some trade.
88. The second discussant said that free trade agreements should not mask the m.f.n. clause. It
was necessary to verify the discriminatory aspects of these agreements. He hoped that the Arab boycott
would disappear to the benefit of the whole region.
89. The representative of the European Communities noted that a trade deficit could not be explained
only by numbers. Another important element was also the relationship between private and public
industries. The new trade agreement between Israel and the EC would probably be signed in early
1995 and would cover a number of issues including rules of origin, services, additional concession
for agricultural products, and technological cooperation. Contacts between the private sectors were
also going to be encouraged.
90. The representative of Australia requested more recent information on the effects of the trade
liberalization on non-FTA countries, while the representative of Japan said that multilateral liberalization
efforts would reinforce Israel's trade relation with Japan.
91. The representative of Israel said that the possibility of accelerating the tariff reduction process
was being studied, although she believed that the current linear reduction was already quite quick.
Israel was not yet able to analyze the effects of the m.f.n. liberalization, although the domestic industry
noted that the effects were already being felt. The Government of Israel encouraged trade relations
with non-FTA countries. Israel expected that negotiations with the EC would be successfully concluded
and that the agreement would have a wider coverage of agricultural products than in the past.
(3) Agricultural trade policies
92. The representative of Israel explained that under the commitments made in the Uruguay Round
Agreement on Agriculture, Israel intended to liberalize all agricultural imports. For the majority of
products, licensing, quotas, levies and other restrictions would be abolished and replaced by tariffs
according to the "ceiling binding system", without commitments for minimum access. For a limited
number of products, Israel had tariffied its restrictions and established duties with minimum access
at lower rates of duty (bovine meat, wheat, prunes, and skimmed milk powder). For certain products,
such as cheese or milk powder with high fat content, Israel had applied the Special Treatment provisions
(Annex 5) and established minimum access with lower tariffs. After six years, tariffication would
also apply to these products. She noted that by implementing these commitments the lack of transparency
would disappear.
93. Current agricultural import quotas were administered in various ways. It could be done according
to past trade, by lottery, by tender among importers after fixing a maximum amount of imports per
importer, or according to any other equitable way. No decision had yet been taken for the administration
of tariff quotas resulting from the Uruguay Round commitments. C/RM/M/55 Trade Policy Review Mechanism
Page 18
94. Israel intended to abolish its agricultural restrictions by September 1995. These restrictions
had been maintained for balance of payments reasons. Current import licences for agricultural products
were granted in a selective way in accordance with temporary shortages in the domestic market.
95. With respect to export subsidies, she noted that the Government of Israel granted support for
export-oriented crops, such as flowers and citrus products. Government support took the form of
research and development programmes and specific support to farmers in regions of national interest.
More details about agricultural export subsidies would be supplied later.
96. With the exception of the Poultry Marketing Board, all other agricultural boards did not intervene
in the market. Their products were sold at market prices. The main activity of these boards was focused
on training, supplying professional and technical assistance, and providing assistance concerning the
issue of insurance in case of natural disasters. The Poultry Marketing Board still fixed, to a limited
extent, production quotas, and therefore was also involved in marketing its products in the domestic
market.
97. Imports of frozen beef, which in the past were under State trading, had been privatized and
licensing requirements had been abolished. Only the Chief Rabbinate could approve the compliance
of products with Kosher requirements. Approval of Kosher certification by the Chief Rabbinate was
required by law in order to prevent the deception of religious consumers.
98. The second discussant requested more information on export and import prohibitions, and on
the import monopoly for beef. He said that imports of non-Kosher meat could be allowed for consumers
who did not need to eat Kosher products. He recalled that trade transparency would also be enhanced
through the publication of trade legislation.
99. The representative of Canada, noting that all import licences would be eliminated, asked when
Israel would disinvoke the balance of payments provisions. The representative of Australia asked how
remaining restrictions would be applied, and if FTA partners would be favoured in the allocation of
quotas. She sought information on the type of measures affecting imports of nuts. The representative
of the United States noted that it was not possible for American Rabbies to issue Kosher certificates,
and asked if any steps were being taken in this respect. The representative of the European Communities
sought clarification on phytosanitary measures and their transparency.
100. The representative of Israel preferred to use the term import restriction rather than import
prohibition. According to the existing licensing system for certain agricultural products, licences were
granted only when shortages in the market occurred. Under Israel's Uruguay Round commitments,
these import restrictions would disappear. The transparency question would be irrelevant once these
commitments would be implemented. Israel was still to decide on how quotas would be allocated.
The GATT balance-of-payments provisions would be disinvoked before September 1995. Import
measures for nuts included quotas established under the FTA agreement with the United States; no
imports were allowed from other countries, but this restriction would also be eliminated with the
implementation of the Uruguay Round commitments. Automatic import licences which were maintained
for a limited number of products for monitoring purposes, had been eliminated. Existing restrictions
on imports and exports of certain products, such as narcotics, were in line with international regulations.
101. Israel would later provide answers to questions relating to export prohibitions. With respect
to phytosanitary certificates, she said that the Plant Protection Department of Israel was preparing a
brochure where all laws and requirements for imports of plants would be explained. On Kosher
certification, she indicated that she was not aware about the fact that a Rabbi in the United States was Israel C/RM/M/55
Page 19
not recognized by the Chief Rabbinate, but that the Government of Israel could not interfere with the
Chief Rabbinate on religious issues.
102. The representative of the United States clarified that his country had exported to Israel Kosher
products, but that it was difficult for a Rabbi not "trained" in Israel to grant certificates. The
representative of Australia requested information on the treatment given to agricultural products, which
were still restricted, when they were imported from preferential sources.
103. The representative of Israel said that until September 1995, the existing régime would remain.
After, the discriminatory treatment of non-FTA countries would disappear.
104. The second discussant asked if it was possible to import meat without Kosher certificate.
105. The representative of Israel answered that there was a law prohibiting the importation of non-
Kosher frozen meat.
(4) Specific trade issues
106. The representative of Israel pointed out that the liberalization programme would bring import
duties within the range of 8 to 12 per cent, while specific duties would be reduced to zero. This process
would eliminate the complexity of the tariff structure and drastically reduce tariff escalation. The most
complex structure was in the textiles sector, where, in addition to a combined tariff rate, an upper
ceiling was established for the import duty to ensure that the effective rate would not be excessively
high. He was of the view that the complexity of the tariff structure was far from being obscure, and
that it gave the necessary transparency and assurance that the tariff would not be higher than a pre-
established ad valorem level.
107. Goods imported through sea ports were subject to a wharfage fee of 1.5 per cent, which was
imposed and collected by the Port and Railways Authority. Until 1993, the fee was at 2 per cent.
The Israeli Government intended gradually to reduce and equalize the burden of the fee on imports
and exports.
108. Answering questions regarding Israel's customs policy (HARAMA), he explained that Israel
applied the Brussels Definition of Value for customs duties. The value of imported goods was determined
in the open market on the day when the goods were released from customs. The declared value was
not applicable when there were price fluctuations between the date of sale and the date of release, when
the declared price was not that of the open market because of exceptional discounts, and when the
importer had exclusive import rights. In those cases, customs authorities added to the declared value
a certain amount (known as HARAMA) in order to bring the declared value up to the open market
price. There was no pre-determined limit on the calculation of HARAMA. Israel had stated that it
would accede to the GATT Customs Valuation Code, which operated on the basis of the price declared
by the importer, and had begun to take action to implement the new system. Legislation was being
prepared in order to receive Knesset approval for the new system.
109. Referring to questions about the TAMA system, he explained that the most appropriate method
to apply a purchase tax was on the retail price. Such a system avoided distortions between all goods,
either produced domestically or imported. However, due to the difficulties in collecting taxes from
retailers, the easiest way to collect them was from importers and producers. In Israel, purchase taxes
were levied on the wholesale price and were imposed at the importer and producer level. The wholesale
price was then closer to the retail price, which was similar to that of the VAT system. The price was
also known to producers and importers; therefore it was a feasible system and economically viable.
Purchase tax calculations were based on two alternative options: the TAMA system, which utilized C/RM/M/55 Trade Policy Review Mechanism
Page 20
a coefficient adding to the import value of the product, or the declaration option, by which the wholesale
price was declared and the tax was imposed on this price. Importers were able to opt between the
two alternatives, while local producers could use the second route only. The TAMA system did not
discriminate against imports. In practice, most importers opted for the TAMA system because its rates
did not result in prices higher than the wholesale value, and because it did not entail any further
examination by customs authorities. Israel believed that the TAMA system was fully consistent with
GATT and that it did not result in any discrimination between imported goods and domestically produced
goods. Israel did not see the need to change the existing system.
110. Most Israeli standards were voluntary. In the last few years, international standards had been
used as the basis for determining standards applicable in Israel. Existing standards were being reviewed
to ensure their compatibility with international standards. In order to fulfil its obligation under the
TBT Agreement, Israel had approved a proposal to establish a special committee to ensure that national
authorities responsible for preparing new official standards, technical regulations, testing procedures
or substantial amendments to existing regulations, provided early information concerning their proposals.
A foreign manufacturer could apply to receive prior certification by the Standards Institute of Israel.
Compliance with labelling requirements was checked by Customs. In order to facilitate trade, Israel
was seeking to negotiate bilateral agreements providing for the mutual recognition of certification of
compliance with the standards of the importing country.
111. To address questions regarding the coverage of government enterprises, services, and offset
requirements, he said that Israel had submitted a comprehensive schedule of commitments, which was
attached as an appendix to the Agreement on Government Procurement. He stressed that Israel did
not and would not apply the 15 per cent preferential price treatment with regard to domestic products
and entities covered by the Agreement vis-à-vis countries which were also party to the Agreement.
Israel did not have any plans to phase out the preferential treatment given to other domestic products.
Buy-back or offset conditions would be clearly defined in accordance with Israel's commitment under
the 1994 Agreement on Government Procurement.
112. The second discussant sought more information on the TAMA optional system, standards
certification, and government procurement. He still believed that Israel's tariff structure was complex.
113. The representative of Japan also requested additional information on government procurement
practices, while the representative of Hong Kong asked about standards and import licensing practices.
The representative of Australia also found Israel's tariff structure complex, and requested the ad valorem
equivalents of specific and combined duties. She also asked why certain Israeli standards had not been
translated into English.
114. The representative of Israel explained that the option for the TAMA or the self-declaration
systems was valid for one year. She reiterated that import licences on industrial goods, including textiles,
were eliminated. She noted that there might be a misunderstanding of Israel's tariff structure, and
that the tariff structure was not complex. Israel would establish a list concerning government
procurement in accordance with the agreement, in January 1996. Concerning standards, she said that
for domestic products, inspection was done at the company level. This procedure would be rather
costly for foreign suppliers. Israel preferred to have bilateral mutual recognition agreements. An
inter-ministerial committee was reviewing standards in Israel and studying the possibility of translating
them into English. She noted that it would be meaningless to provide ad valorem equivalents because
Israel was constantly reducing specific duties. However, the maximum ad valorem equivalent was
known. Israel C/RM/M/55
Page 21
VII. CONCLUDING REMARKS BY THE CHAIRMAN OF THE COUNCIL
115. The Council has now conducted the first review of Israel's trade policies and practices. These
remarks, made on my own responsibility, summarize salient points raised during the discussion. They
are not intended to substitute for the Council's collective evaluation and appreciation of Israel's trade
policies and practices. Details of the discussions will be reflected in the minutes of the meeting.
116. Following Israel's opening statement, the Council's discussions fell under four main headings:
(a) The economic restructuring programme
117. Council members congratulated Israel on its economic performance and welcomed the structural
reforms undertaken since 1991 which covered a number of areas such as trade liberalization, privatization
and deregulation, and were supported by sound macroeconomic policies. Noting that the privatization
process was relatively slow, certain members asked for more information about the future of the
programme. The reforms had contributed positively to Israel's overall economic performance; however,
their effects might be felt gradually and were also likely to be influenced by external factors, such
as the implementation of the Uruguay Round and the peace process in the region.
118. Questions were asked about recent geopolitical developments and their implications for the
Israeli economy and trade, including changes in the Arab boycott. Members noted that the achievement
of the peace process would result in better conditions for all trading partners in the region and would
improve Israel's access to new markets. Following the Casablanca Conference, some participants sought
Israel's view on the possibility of creating a regional common market.
119. In response, the representative of Israel noted the small size of the Israeli market and limited
access to neighbouring countries, as well as the high expenditure on defence and limited raw materials.
Under the Economic Stabilization Programme the Government had reduced its involvement in the
economy, cutting budget expenditure; the deficit was expected to be just over 1 per cent in 1994,
below what had been expected. Direct involvement in economic activity had been reduced through
the sale of government-owned activities, although 1994 had been a disappointing year for privatization
due to the fall in the stock market. The Government had also acted to open competition, including
in capital markets, telecommunications and aviation. Israel had also made progress in its aim of making
the New Israeli Shekel fully convertible, and in 1993 accepted Article VIII, Sections 2, 3 and 4 of
the IMF Agreement. Further liberalization of currency transactions had taken place in August 1994.
These policies had been implemented while Israel had received about 600,000 new immigrants, as
well as trying to cut unemployment and counter growing trade and current account deficits. Regional
developments could not be ignored; Israel was deepening and formalizing its relations with its neighbours
and realized it was also in its interests to assist their economic development, playing a constructive
rôle in the region.
(b) The pattern of trade liberalization
120. Participants noted that Israel had concluded free trade agreements with the European Union,
the United States and the EFTA countries and was in the process of negotiating several others; their
effects on trade patterns had varied. Questions were asked about developments in existing FTAs, new
negotiations, differential tariffs as between FTA and m.f.n. sources, rules of origin and their effects,
and the evolution of trade with FTA partners.
121. Members aiso welcomed Israel's moves to reduce discrimination by cutting trade barriers on
an m.f.n. basis, including reductions in import licensing and steady lowering of tariffs. Clarification
of the timetable for tariff reduction was sought. C/RM/M/55 Trade Policy Review Mechanism
Page 22
122. Members noted that Israel's Uruguay Round commitments reinforced the pattern of m.f.n.
trade liberalization. Although high protection to certain sectors, inparticular agriculture, would remain,
the implementation of the commitments would significantly change and consolidate Israel's trade régime.
123. In replying, the representative of Israel reviewed the main features of the 1991 trade liberalization
programme. This had been designed to allow time for structural adjustment of affected sectors. Tariffs,
to replace discretionary licensing and quantitative restrictions, had been set at relatively high levels
to prevent disruption of domestic industry, but a clear time schedule had been set for duty reductions
to 8 per cent for raw materials and 12 per cent for intermediate and final goods. Most products would
reach these goals by September 1996, while for textiles the goal would be achieved by September 2000.
The impact of the programme was already being felt and was expected to increase as the programme
deepened. Israel was negotiating an additional free-trade agreement with Canada and exploratory talks
were being held with other countries. Israel had expected a larger expansion of exports to the EU
and a new, more comprehensive agreement was being negotiated. There had been various reasons
for the slow growth of exports, including the effects of the "secondary" and "tertiary" boycotts, but
it was hoped that there would be positive changes as a consequence of the peace process, including
current negotiations with Jordan and, in the future, for a regional agreement with neighbouring countries.
Written responses to a number of detailed questions were distributed.
(c) Agricultural policies and practices
124. Participants noted that Israel still maintained certain strict protective measures in the agricultural
sector, which was not, in general, included in the trade liberalization programme. Questions were
raised about the status of remaining import restrictions and their phasing out, conditions for the
importation of meat, and health, sanitary and phytosanitary requirements, including Kosher rules.
Information was sought about changes in agricultural legislation, including tarification, to accommodate
Israel's Uruguay Round commitments, administrative arrangements for agricultural products under
quota, and plans to improve transparency in the calculation of variable levies. Concerns were expressed
about remaining import restrictions on certain animal and dairy products and on export subsidies granted
to certain agricultural products. Members encouraged Israel to further liberalize its agricultural trade
régime by lifting existing barriers and eliminating export subsidies.
125. In response, the representative of Israel indicated that Israel intended to open up imports in
all agricultural sectors. For most products, non-tariff measures would be replaced with tariffs bound
at ceiling levels, without minimum access commitment; for a limited number of products, restrictions
would be tariffied with minimum access commitments; and for certain products, such as processed
cheeses and milk powder with a high fat content, Israel would apply special treatment and establish
minimum access with lower tariffs, to be tariffied after six years. Details were provided on the
administration of quotas and the representative affirmed that remaining restrictions would be abolished
for imports from all sources by September 1995. Preferential arrangements for imports of tariffied
goods from FTA partners were under discussion. By implementing the Uruguay Round commitments,
the problem of transparency would also disappear. Export subsidies were granted for export-oriented
crops in the form of R&D or regional support. No agricultural board, except the Poultry Marketing
Board, intervened in the market, being mainly concerned with training and technical assistance; the
Poultry Marketing Board still fixed production quotas to some extent. State-trading had been privatized
for imports of frozen beef. Kosher certification was issued by the Chief Rabbinate in accordance with
religious laws for the protection of religious consumers; importation of non-kosher frozen meat was
prohibited. Israel C/RM/M/55
Page 23
(d) Specific trade policy issues
126. Members noted that Israel's tariff was complex and relatively non-transparent, with many specific
and comhined rates. Tariff escalation and high tariff levels persisted. Israel was encouraged to improve
the transparency of its tariff régime. Questions were also asked about customs valuation methods and
the use of the HARAMA and TAMA uplift for calculation of customs duties and purchase tax.
127. Participants raised questions about government procurement practices, including price preferences,
counterpurchase and offset requirements. Technical regulations and standards were another area of
concern; in this regard, Council members highlighted homologation procedures and the high number
of samples required for resting, differences in the enforcement system which might benefit domestic
products, and marking, labelling and packaging requirements.
128. Other questions raised included the product coverage of export and import prohibitions, customs
valuation and taxation practices, import surcharges, wharfage and port fees, internal taxes levied on
imports, additional criteria for granting import licences, and the powers of the Ministry of Industry
and Trade to impose trade restrictions against other countries. Participants asked if Israel remained
committed to eliminate import restrictions maintained for balance-of-payments reasons.
129. In reply, the representative of Israel distributed written responses or tariffs, wharfage fees,
standards and labelling requirements, government procurement, the HARAMA adjustment of declared
customs values, and the TAMA adjustment of domestic taxes to import prices at wholesale levels.
Israel applied the Brussels Definition of Value, to be replaced by the GATT Code for which legislation
was being prepared. Where an amount had to be added to the declared value to bring this to the open
market price, the supplementary amount was referred to as HARAMA. For ease of administration,
purchase taxes based on retail prices were collected from importers or producers, based either on an
adjustment of the wholesale price, as declared, or by adjusting the import value using a coefficient -
the TAMA system. The latter option was only available to importers, but was not discriminatory and
Israel saw no need to change the existing structure.
130. Under the liberalization programme, tariffs would be simplified, with specific rates being
eliminated and escalation being considerably reduced to maintain reasonable effective rates. The wharfage
fee was being gradually reduced and the burden on imports and exports equalized. Israel would disinvoke
balance-of-payments provisions before September 1995.
131. International standards were the basis of Israeli standards - most of which were voluntary -
and a special committee was being established to ensure fulfilment of obligations under the TBT
Agreement. Foreign manufacturers could seek national certification, and bilateral agreements on mutual
recognition were to be negotiated. Regarding government procurement, Israel did not apply the
15 per cent preference to products and entities covered by the Government Procurement Agreement.
Buy-back conditions would in future be defined in accordance with Israel's commitments.
Conclusion
132. Members congratulated Israel for its multilateral trade liberalization efforts and encouraged
it to maintain the momentum of the process. Commitments undertaken in the Uruguay Round
Agreements would benefit Israel by supporting its autonomous liberalization and by further increasing
the transparency of tariff and other trade regulations and procedures. However, a number of areas
still required further action, especially in the agricultural sector, for Israel to become more fully
integrated into the world economy. The Council expressed the hope that the peace process would have
a positive effect on the economies of the countries in the region and promote the expansion of trade
with all Israel's partners. |
GATT Library | nx485ww8528 | Trade Policy Review Mechanism. Pakistan. : Report by the Government | General Agreement on Tariffs and Trade, January 16, 1995 | General Agreement on Tariffs and Trade (Organization) | 16/01/1995 | official documents | C/RM/G/50 and 0120-0128 | https://exhibits.stanford.edu/gatt/catalog/nx485ww8528 | nx485ww8528_90080593.xml | GATT_1 | 8,593 | 66,370 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
C/RM/G/50
16 January 1995
Limited Distribution
(95-0128)
Original: English
In pursuance of the CONTRACTING PARTIES' Decision of 12 April 1989 concerning the
Trade Policies Review Mechanism (BISD 36S/403), the initial full report by the Government of Pakistan
for the review by the Council is attached.
NOTE TO ALL DELEGATIONS
Until futher notice, this document is subject to a press embargo.
TRADE POLICY REVIEW MECHANISM
PAKISTAN
Report by the Government Pakistan C/RM/G/5O
Page iii
TABLE OF CONTENTS
Page
A. TRADE POLICIES AND PRACTICES
1. TRADE POLICY OBJECTIVES
Il. IMPORT AND EXPORT SYSTEMS
(a) lmport System
(b) Export System
III. THE TRADE POLICY FRAMEWORK
(a) Domestic Laws and Regulations Governing the Application
of Trade Policies
(i) The Legislative Process
(ii) Domestic Trade Laws
(b) Trade Policy Formulation and Review
(c) Trade Agreements
(i) Multilateral Tarde Agreements
(ii) Regional and Preferential Agreements
(iii) Bilateral Trade Agreements
IV. THE IMPLEMENTATION OF TRADE POLICIES
(a) Trade Policy Measures
(i) Tariffs
(ii) Import Prohibition
(iii) lmport Licensing
(iv) Quarantine Rules
(v) Customs Valuation
(vi) Government Procurement
(vii) Standard and Technical Requirements
(viii) Packaging and Labelling Requirements
(ix) Local Content Requirements
(x) Rules of Origin
(xi) Internal Taxes
(xii) Anti-Dumping and Countervailing Measures
(xiii) Export Trade Registration
(xiv) Export Taxes, Minimum Prices and Prohibitions
(xv) Export Quotas C/RM/G/50 Trade Policy Review Mechanism
Page iv
(xvi) Export Incentives
(xvii) Export Promotion
(xiii) Export Processing Zones
(xix) Foreign Exchange Regulations
(xx) Exchange Rate
(h) Prospective Changes in Trade Policies and Practices
B. BACKGROUND FOR THE ASSESSMENT OF TRADE POLICIES.
I. RECENT ECONOMIC DEVELOPMENTS
Il. THE EXTERNAL ECONOMIC ENVIRONMENT
(a) Balance of Payments
(b) Exports
(c) Imports
(d) Exchange Rate
(e) Foreign Exchange Reserves
III. INTERNATIONAL ECONOMIC ENVIRONMENT
IV. PROBLEMS IN EXTERNAL MARKETS Pakistan C/RM/G/50
Page v
LIST OF TABLES
Page
1. Macroeconomic indicators 11
2. Social and Demographic Indicators 12
3. Growth Rates of Gross National Product 13
4. Sectoral Shares in GDP 13
5. Summary Balance of Payments 15
6. Balance of Trade 16
7. Terms of Trade 16
8. Exports by Economic Categories 17
9. Major Destinations of Exports 1 8
10. Economic Category-Wise Import 19
11 Major Sources of Imports 20
12. Exchange Rate vis-à-vis US dollar 1988-93 21
13. Gross Official Reserves 22
LIST OF ANNEXES
I. Various Acts and Ordinances Affecting Trade 24
Il. Products given Tariff Preferences under TNDC 24
Il. Bilateral Trade Agreements 25
IV. Border Trade Agreements 26
V. Quality Control Regulations 27 Pakistan C/RM/G/50
Page1
A. TRADE POLICIES AND PRACTICES
1. TRADE POLICY OBJECTIVES
Pakistan's trade policy is formulated with the aim of maximising gains from international trade
through the promotion of freer trade in the context of a global multilateral trading system, and the
encouragement of efficient and competitive domestic production activities. A free and competitive
trading and production environment will contribute to the economic and social development of Pakistan.
Towards this end. the Government has implemented an extensive liberalisation of the trade regime.
Over the last six years. non-tariff barriers have been replaced with tariffs: the maximum level of tariffs
has been reduced to 70 per cent with a few exceptions; the tariff structure has been rationalized with
the aim of reducing disparities in effective protection: and all 'other charges' have been merged in
the statutory tariff regime, all items have been made importable except for a few whose entry is restricted
on religious, health and security considerations. or on account of balance of payments difficulties.
To complement the liberalisation of the trade regime. the exchange system has been fully
liberalised. As of July 1 1994., Pakistan has adopted current account convertibility of the rupee and
eliminated all multiple currency practices. Accordingly Pakistan as accepted and fulfilled the obligations
of Article VIII of the IMF's Articles of Agreement.
One of the important objectives of the measures described above has been the elimination of
an anti-export bias in resource allocation and to encourage efficient and competitive import substituting
activities. The Trade Policy announced by the Government for 1994/95 specified the following
objectives:
(i) Prepare Pakistan's industry for a freer global trading system emerging from the Uruguay
Round Agreements.
(ii) Stimulate exports by facilitating easy access to raw materials. intermediates and
machinery.
(iii) Encourage efficient and competitive import substitution.
(iv) Impart greater transparency by minimizing administrative controls.
(v) Simplify and streamline procedures to make these user friendly.
(vi) Ensure availability of essential commodities in the domestic economy.
(vii) Adopt tariff measures instead of quantitative restrictions.
(viii) Facilitate the transfer of technology into the country.
(ix) Strengthen research and development capabilities and encourage human resource
development.
(x) Liberalise controls in the economy and place greater reliance on market forces to
promote efficiency and growth.
(xi) To provide a stable economic environment through greater continuity in policy planning. C/RM/G/50 Trade Policy Review Mechanism
Page 2
Il. IMPORT AND EXPORT SYSTEMS
(a) lmport System
All items are freely importable into Pakistan except those which appear in the conditional and
negative lists. The conditional list contains items importable subject to safety or health conditions,
while the negative list consists of items baned for religious and security reasons or on account of balance
of payments problems. These shall not be imported unless specifically authorised. Import licenses
are not required for any items which are not on the conditional or negative lists.
Consistent with the principles of GATT, tariffs are the main trade policy instrument The tariff
structure is reviewed regularly and revised in line with the overall objective to liberalise trade.
(b) Export System
There are no export duties and licensing requirements except in the case of a small number
of products to enforce policies on health, conservation, quality. heritage and security. Drawback of
import duties and refund of internal taxes incurred on the exported goods is allowed upon export.
III. TRADE POLICY FRAMEWORK
(a) Domestic Laws and Regulations Governing the Application of Trade Policies
(i) Legislative Process
Pakistan is a parliamentary democracy with a bicameral legislature and the President is the
constitutional Head of State. The Federal Constitution of Pakistan divides the authority of the federation
into legislative. judicial and executive authorities. Separaltion of powers occurs both at the federal
and provincial levels.
The executive arm consisting of the Federal Cabinet. with the Prime Minister at its head. is
responsible for all policy decisions.
(i i) Domestic Trade Laws
The principal law governing the implementation of trade policy in Pakistan is the Imports and
Exports (Control Act), 1950 (XXXIX of 1950). In exercise of the powers conferred by the Act. import
and export policy is formulated valid for a fiscal year. The regulations in these orders are reviewed
to take into account changing economic circumstances and to conform to any changes in the trading
System.
ln exercise of tne powers conferred by the Imports and Exports Control Act. the Federal
Government prescribes the procedure for trade in the Import-Export Procedures Order. In addition,
there are specific laws governing imports and exports having various degrees of effect on trade which
are described in section III.
According to the Import Policy Order, private sector companies eligible to import must he
registered with the Office of the Export Promotion Bureau (EPB) under the terms established by the
Registration (Importers and Exporters) Order 1993. Registration can be refused, suspended or cancelled
if the importer is not a member of a trade, commercial or industrial association prescribed by the Pakistan C/RM/G/5O
Page 3
Companies Ordinance 1984. or is not member of a trade organisation licensed by the Federal Government
under the Trade Organizations Ordinance 1961. A list of registered importers and exporters is published
periodically in the official Gazette.
Pakistan's customs system draws its legal authority from the Customs Act 1969 (IV of 1969).
Customs matters are subject to the jurisdiction of the Federal Government whose authority is exercised
through the Ministry of Finance and the Central Board of Revenue (CBR). Customs duties are levied
at rates prescribed in the First Schedule to the Customs Act. 1969. The tariff nomenclature is based
on the Harmonized System containing, 5464 lines at the 8-digit level.
Under the Customs Act 1969. the Federal Government or in exceptional circumstances, the
Central Board of Revenue may by notification in the official Gazette, exempt goods from customs duty
or may grant dut concession. These notifications are published as Special Regulatory Orders (SROs)
from time to tine. These concessions are of a temporary nature and could be granted for specific
end-use or specific users or location. Requests for tariff changes submitted by business entities are
examined by the National Tariff Commission (NTC). Such examination can also be initiated by the
Federal Government or by the NTC at its own initiative. The recommendations have to be approved
by the Economic Co-ordination Committee (ECC) of the Cabinet.
A number of other acts and ordinances which affect trade are listed in Annex 1.
(b) Trade Policy Formulation and Review
The Ministry of Commerce is responsible for formulating and reviewing the trade policy.
Coordination with other relevant Government departments is ensured through the Economic Coordination
Committee (ECC). The trade policy has to be approved by the Cabinet. Trade policy is formulated
following consultation with the private sector which is represented by various chambers of commerce
and industrv. and trade and commodity associations recognised as such under the Trade Organizations
Ordinance 1961. Consultations with ministries. departments and provincial governments are also held
in the meetings of the Advisory Committee.
(c) Trade Agreements
(i) Multilateral Trade Agreements
GATT: The Uruguay Round
Pakistan is a founding Member of the GATT and lias participated in all Rounds of multilateral
trade negotiations under its auspices. It accepted the Final Act of the Uruguay Round in Marrakesh
subject to ratification. The ratification of the WTO Agreement is under active consideration of the
Government and is expected to be finalised soon. Following the acceptance of the WTO Agreement
through ratification. Pakistan shall bring its legal and regulatory system into conformity with its
obligations under the relevant agreements concluded in the Uruguay Round.
Tokyo Round Agreements
Pakistan has been a signatory to the Tokyo Round agreements on Technical Barriers to Trade,
Subsidies and Countervailing Measures. Import Licensing. and Anti-Dumiping.
Multi-Fibre Arrangement (MFA) C/RM/G/50 Trade Policy Review Mechanism
Page 4
Pakistan has been a signatory to the MFA and has bilateral agreements to limit its exports under
Article 4 of the MFA to Canada. the European Communities, Finland, Norway and the United States.
(ii) Regional and Preferential Agreements
Global System of Trade Preferences Among, Developing Countries (GSTP)
Pakistan is a participant in the Agreement on the Global System of Trade Preferences Among
Developing Countries (GSTP). In accordance with this Agreement, Pakistan grants tariff concession
on certain products.
Trade Negotiations among Developing Countries
Pakistan participates in the GATT protocol relating to Trade Negotiations among Developing
Countries and grants preferential tariff treatment on a limited list of items imported from the signatory
countries as per list in Annex Il.
South Asian Association for Regional Cooperation (SAARC)
As member of the South Asian Association for Regional Cooperation (SAARC) together with
Bangladesh,Bhutan. India. Maldives. Nepal and Sri Lanka. Pakistan has agreed to the establishment
of a SAARC Preferential Trading Arrangement (SAPTA) as a first step towards greater economic and
trade cooperation in the region. The Arrangement has been notified to the CONTRACTING PARTIES
pursuant to pargraph 4(a) of theEnabling Clause. This is only a framework agreement and the members
have yet to enter into negotiations for actual exchange of concessions.
Economic Cooperation Organization (ECO)
Pakistan is a member of the Economic Cooperation Organization (ECO) together with Iran
and Turkey. Following an additional protocol On preferential tariffs. ECO members have committed
to grant a 10 per cent duty reduction on imports of specified products from member countries. The
protocol was implemented in April 1993.
(iii) Bilateral Trade Agreements
Bilateral Trade Agreement
Pakistan has signed goodwill type of trade agreements with a number of countries. These
are hased on the principle of MFN treatment for exchange of goos between Pakistan and these countries.
There are no binding commitments on imports/exports, or on preferential tariff or non-tariff treatment.
Transit Trade Agreement with Afghanistan
Pakistan has concluded a transit trade agreement with Afghanistan. to facilitate the trade of
Afghanistan transiting through the territory of Pakistan. Pakistan C/RM/G/50
Page 5
Border Trade Arrangements
In recognition of the traditional economic links between the people living across the border
regions of neighbouring Iran and China., and consistent with Article XXIV:3 of the General Agreement.
Pakistan has border trade arrangements with these two countries, that provides a uniform tariff of
10 per cent on commodities moving across the land border.
Avoidance of Double Taxation Agreements:
To avoid the double taxation of international income from profits, dividends. interests and
royalties. Pakistan has concluded agreemenit for avoidance of double taxation with 32 countries.
Bilateral Payments Agreements:
As a consequence of the liberalization of the exchange and trade system. Pakistan phased out
all remaining bilateral payments agreements, the last five agreements expired by the end of 1992.
IV. IMPLEMENTATION OF TRADE POLICIES
(a) Trade Policy Measures
(i) Tariffs
Import duties are levied under the powers conferred by the Customs Act 1969 (IV of 1969).
Customs duties are levied on CIF values at ad valorem rates (with the exception of a few specific rates)
ranging between 10-70 per cent. However, automobiles and alcoholic beverages are subject to higher
rates. The tariff rates are contained in the first schedule to the Customs Act 1969. Concessions and
exemptions are contained in various notifications issued as SROs.
The Pakistan tariff schedule has a total of 5464 lines. Most of the import duties are levied
at ad valorem rates. except for 128 tariff lines which have specific or mixed duties (ad valorem and
specific). Imports from all countries are subject to the MFN rates except for those subject to preferential
trade agreements.
(ii) Import Prohibition
In terms of the Import Policy Order 1994, all items are frecly importable except for items which
are on the conditional or negative list. Products on the conditional list can be imported subject to health
and safety requirements. The negative list contains only 75 items whose import is not permissible
unless specifically authorised.
(iii) Import Licensing
Licenses are not required for any importable items including those subject to specific conditions. C/RM/G/50 Trade Policy Review Mechanism
Page 6
(iv) Quarantine Rules
Pakistan Plant Quarantine Act 1976 and Pakistan Quarantine Rules 1967 contain plant protection
rules chased on F.A.O. and international standards. Pakistan is a member of the International Plant
Protection Convention IPPC ( 195 1) and member of FAO's Asia Pacific Plant Protection Convention
(APPPC). and Near East Plant Protection Organization. Administration of these regulations is the
responsibility of the Ministry of Food and Agriculture.
FAO standards are applied in the Pakistan Animal Quarantine (Import and Export of Animals
and Animal Products) Ordinance 1979 and Pakistan Animal Quarantine (Import and Export of Animals
and Animal Products) Rules 1980.
Customs Valuation
Imported goods are valued according to the Brussels Definition of Value (BDV). The valuation
is on ClF basis. In order to check under invoicing and evasion ofduty the customs authorities currently
value goods on the basis of officially established minimum values.
(vi) Government Procurement
Pakistan is not a signatory to the Agreement on Government Procurement. Rules on procurement
by the Government and its agencies are laid down in the Purchase Manual ( 1972). The policy of the
Government of Pakistan is not discriminatory and takes account of both quality and price consideration.
(vii) Standards and Technical Requirements
Pakistan aims to have National standards at par with international standrds such as those of
ISO and IEC. Pakistan has been a signatory to the Tokyo Round Agreement on Technical Barriers
to Trade since 1981. The national standards system is contained in the Pakistan Standards Institution
(Certification Marks) Ordinance 1961. A number of quality-control regulations exist as per the list
in Annex VI.
(viii) Packaging and Labelling Requirements
Rules pertaining to labelling and packaging requirements are laid down in the Import Policy
Order 1994. These rules apply to edible products. cigarettes and containers of insecticides and pesticides.
ix) Local Content Requirements
Local content requirements are contained in deletion programmes introduced for the engineering
sector in 1987. The objective of these programmes is to encourage transfer of technology, intra-industrial
Iinkages greater self-rel iance and to save foreign exchange. Under a deletion programme. entrepreneurs
undertake to utilise a progressively higher proportion of domestically produced components in the
production of certain products. subject to specific incentives in the form of concessionary tariffs on
imports of raw material and other components. Currently deletion programmes exist in the automobile
electronics. electrical and engineering industries. Pakistan C/RM/G/50
Page 7
(x) Rules of Origin
Rules of Origin applied to trade preferences granted by Pakistan under the Protocol Relating
to Trade Negotiations Among Developing Countries are contained in the Rules of Origin 1973. The
rules applying to trade between member countries of Economic Cooperation Organization (ECO) (Turkey,
Iran and Pakistan) are contained in the Additional Protocol on Preferential Tariffs, ECO (Part A).
(xi) Internal Taxes
General Sales Tax
In Accordance with the Sales Tax Act, 1990, sales tax is levied at the rate of 15 per cent of
the value on all goods imported, manufactured or traded except those for which exemption is granted
by the Federal Government. At present only a few goods are taxed at the wholesale and retail level.
The goods which are exempt (partially or wholly) from the sales tax are listed in notifications issued
as S.R.O's from time to time. Imports of essential items of food and medicines and some agricultural
and export-oriented industrial machines, insecticides, pesticides, fertilizers are exempt.
Central Excise Duties
In accordance with the Central Excise Act, 1944, excise duties are levied on domestically
produced goods and on certain services rendered in Pakistan, as specified in the First Schedule of the
Central Excise Act, 1944. Exemptions from excise specified in the First Schedule are contained in
the notifications, S.R.O. 545(1)/94, and S.R.O. 546(1)/94, dated 9th June, 1994.
Excise duties on goods are specific or ad valorem which are assessed at the stage of clearance
of goods from manufacturing premises. The assessment of central excise duties on services is made
on the basis of charges received at the time of rendering the excisable service.
(xii) Anti-Dumping and Countervailing Measures
Pakistan has been signatory to the Tokyo Round Agreements on Anti-Dumping and Subsidies
and Countervailing Measures. Regulations on anti-dumping and countervailing measure are contained
in the Import of Goods (Anti-Dumping and Courtervailing Duties) Ordinance, 1983. So far Pakistan
has never imposed any anti-dumping or countervailing duties on any of its imports.
(xiii) Export Trade Registration
According to the Registration (Importers & Exporters) Order 1993, all exporters have to be
registered with the Export Promotion Bureau (EPB). Applicants for registration as exporters are required
to be members of a trade organisation recognised by the Federal Government under the Trade
Organizations Ordinance, 1961 (XLV of 1961). The Export Trade Control Order 1994 provides a
list of few commodities in Schedule II/A which can only be exported by public sector corporations
and Schedule Il/B provides a list of commodities the export of which is subject to special procedure.
In addition Schedule VI of the Export Trade Control Order 1994 provides a list of commodities (bed
sheets, pillow cases and towels) which shall be permitted for export subject to pre-shipment registration
of export contracts with the aIl-Pakistan textile associations. The requirement applies for consignments
destined for non-quota countries (under the MFA agreements) and consignments intended for re-export
from quota countries. C/RM/G/50 Trade Policy Review Mechanism
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(xiv) Export Taxes, Minimum Prices and Prohibitions
In terms of the amendment to the Customs Act 1969 carried out through the Finance Act 1994,
exports of all commodities including these in Schedule III of the Amended Customs Act 1969 are
subject to zero rate of duty.
Schedule III of Expert Trade Centrol Order 1994 gives the list of items (onyx. breeding animals)
subject to minimum export price restrictions.
Schedule 1 of Export Trade Control Order 1994 contains the list of goods which are prohibited
for export. The list contains 26 categories of goods together with the exceptions from the prohibition.
(xv) Export Quotas
In accordance with Pakistan's bilateral agreements with some countries under the Multi-fibre
Arrangement (MFA), exports of textiles and clothing to these countries are subject to the textile quota
management policy. The Ministry of Commerce is responsible for the management of quotas through
the office of the Textile Quota Management Directorate. Under the MFA. Pakistan has accepted to
limit the export of textiles and clothing products to Canada the European Communities. Finland, Norway
and the United States.
(xvi) Export Incentives
As part of a policy to off-set the anti-export bias in the tax and incentives structure, Pakistan
compensate the exporters for tax levied on imports. Such compensation is allowed in the form of duty
draw hack and refund of internal taxes. To encourage experts, Pakistan allows duty free facility for
exporters, export processing zones. bonded warehousing, and export refinance facilities.
(xvii) Export Promotion
To help promote Pakistan's products abroad. the Export Promotion Bureau sponsors trade
delegations to and from Pakistan, participates in international trade fairs, settles trade disputes, undertakes
market studies, seminars and workshops, disseminates market information and registers export houses
abroad. The Export Promotion Bureau also provides services to exporters in the areas of quality control,
display centers, promotional publicity and market information.
(xviii) Export Processing Zone
Export processing zones (EPZ) can be established under the Export Processing Zones Authority
Ordinance 1980. Rules of operations of these zones are laid down in the Customs Export Processing
Rules 1981. At present one export processing zone is operating near Karachi. The normal import
and export restrictions enforced in Pakistan are not applicable in the EPZ. Firms are also exempted
from foreign exchange control regulations and insurance regulations appl icable in Pakistan. In addition
enterprises in the EPZ are exempted from domestic labour laws. Other advantages in the EPZ include
tax holidays up to the year 2000. Pakistan C/RM/G/50
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(xix) Foreign Exchange Regulations
Pakistan has a highly liberalized exchange system. As of July 1994 Pakistan has adopted current
account convertibility, of the rupee and removed all multiple currency practices. As a consequence
of these measures, Pakistan has accepted and fulfilled its obligations under Article VIII of the IMF's
Article of Agreement.
Pakistan's foreign exchange regulations are also liberalized for most aspects of capital account.
There are no restrictions on repatriation of profits and capital associated with foreign direct investment.
Residents and non-residents are allowed to maintain foreign currency accounts and are free to transfer
their balances abroad.
Exchange control is administered by the State Bank of Pakistan in accordance with the Foreign
Exchange Regulation Act 1947. All rules and regulations pertaining to import and export of currency.
notes and foreign exchange are contained in the Foreign Exchange Manual, 7th Edition, 1992 and
subsequent foreign exchange circulars issued from time to time by the State Bank of Pakistan.
The State Bank bas delegated authority to a number of banks and financial institutions to deal
in foreign currency, to supervise surrender requirements, and to sell foreign exchange. Exchange receipts
and payments abroad must be effected through an authorised foreign exchange dealer in any convertible
currency. Letters of credit for imports must be established in foreign currency except certain settlements
with specified countries. Payments to. and receipts from member countries of the Asian Clearing Union
(ACU) (Bangladesh. India, Iran. Mayanmar. Nepal and Sri Lanka' in respect of all current transactions
are effected through the ACU in Asian Monetary Units (AMUs) or in the domestic currency of one
of the member countries involved. No exchange control is exercised over transactions with Afghanistan
and settlements are made in Pakistan rupees or in Afghan currency. Payments for invisibles are
controlled by the State Bank of Pakistan and in some cases require its prior approval.
Exporters are obliged to collect and surrender foreign exchange receipts with the State Bank
of Pakistan within 4 months of shipment, although the State Bank of Pakistan may allow the extension
of this period. The surrender of Afghan currency accruing from exports to Afghanistan is not required.
(xx) The Exchange Rate
The exchange rate arrangements of Pakistan consist of a managed float under which the State
Bank of Pakistan sets the daily exchange rate at which it will purchase and sell US dollars (the
intervention currency) in its dealings with authorised dealers. The rate has been adjusted on a frequent
basis, taking into account the competitiveness of the tradeable sector and the need to contain inflationary
pressures.
(h) Prospective Changes in Trade Policies and Practices
Pakistan's medium term programme aims to further liberalize the exchange and trade system.
The Government is committed to maintaining the liberalization process which has resulted in the
substitution of quantitative restriction with tariff measures, reduction in tile level and disparities in
tariffs, the reduction in the anti-export bias and the adoption of current account convertibility. As
part of its contribution to the Uruguay Round, Pakistan has made commitments to reduce and bind
tariffs on 2128 tariff lines. This would cover 39% of the total tariff lines. C/RM/G/050
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B. BACKGROUND FOR THE ASSESSMENT OF TRADE POLICIES
1. RECENT ECONOMIC DEVELOPMENTS
The Domestic Economy
During the 1980's Pakistan achieved high rates of economic growth and a steady rise in its
per capita income, despite a relatively high rate of population growth (Tables 1 and 2). The average
annual rate of growth of real GDP (at factor cost) during 1980/81 - 1987/88 was more than 6 Per cent.
During this period. manufacturing output expanded at an annual average rate of over 8 per cent, and
agriculture output grew at 3 1/2 per cent. To lay the foundations for sustained growth and to realize
the full potential of the economy. the authorities embarked upon a comprehensive programme of
economic liberalization in 1988/89, aimed at reducing market distortions, increasing investment and
enhancing the role of the private sector (Table 3).
In he following years considerable progress was achieved in implementing structural reforms,
especially in liberalisation of the exchange and (rade system financial sector reforms. liberalisation
of the domestic and foreign investment activities and in initiating a wide ranging privatisation
programme. Consequenlty industrial actvity and private sector investment accelerated. The productive
structure of the economy also transformed gradually in the ensuing period with the share of industrial
output in GDP increasing from 24 1/2 per cent in 1987/88 to about 27 per cent in 1993/94 (Table 4). Pakistan C/RM/G/50
Page 11
Table 1
Pakistan Macroeconomic Indicators
1990/91 1991/92 1992/93 1993/94
Output and prices (percent change)
Real GDP at factor cost 5.6 77 2.3 4.0
GDP deflator at factor cost 13.2 10.2 8.9 12.1
GPI (12 month Change 12.6 9.4 9.1 12.1
Investment and savings (in per cent of GDP)
Total investment 19.0 20.0 19.2
Gross domestc saving 13.1 16.5 13.0 14.9
Gross national saving 14.6 17.0 13.2 14.6
Nonfinancial public sector in per cent of GDP
Total revenue 16.5 19.2 19.8
Total expenduture 25.3 26.7 29.4 27.6
Public sector borrowing requirement -8.7 -7.4 -9.6 ....
Domestic debt 43. 5 42.8 46.3 45.8
Monetary sector (per cent change)
Net domestic assets 16..8 27.9 25.1 9..9
Domestic liquidity 16.3 30.3 18.0 13.3
External sector (in per cent of GDP)
Exports 13.8 13.1 12.7
Imports 18.4 18.4 19.4 16.8
Current account -4.4 -3. l -7.1 -4.6
External sector in millions of U.S. dollars)
Current account excluding official transfers -1.961 -1.500 -3.688 -2.375
Gross resevers 572 1.038 469 1.663
Gross reserves in Weeks of imports 3.3 5.5 2.2 9.1
a In relation to beginning of period domestic liquidity.
b Excluding official transfers.
c Excluding gold.
Source: Ministry of Finance. StateBank of Paskistan Trade Policy Review Mechanism
Table 2
Pakistan Social and Demographic Indicators
Area
796.000 sq km
Population
Total 117 millon (1992)
Rate of growth 3. 1 per cent per
annum 1990
Densty
GNP per capita
142 per sq km
US$416 1991 92
Nutrition(1990)
Calorie intake
(per capita pet day)
Health (1990/91)
Population per phystan
Population per hospital bed
Access to electricty
Per cent nural villages
Population
characteristies (1990)
late eapeclancy at
cnkle birth rate
cnude deth rate
per tjpisamd
lntant mortaloy
per thousand
per thousand
per birth
Access to safe water
Per cent population (1990)
41
11
108
Education (1990)
Enrollment rates (per cent)
Primary education
Secondary education
Income distribution(1990)
Per cent total household income
recerved
By highest 10 per cent of households
By lowest 20 per cent of huouseholds
Distribution of labour force
(1989/90)
Per cent in:
agriculture
Industry
31
8
13
Source: Government of Pakistan Economic Survey.; World Bank. Social Indicators of Developent 1991/92
After accelerating to over 7 1/2 per cent in 1991/92, the growth rate of GDP declined to an
estimated 2.3 per cent with agricultural output declining by more than 5 per cent. Pakistan's economic
situation in 1992/93 was adversely affected by a comibination of factors including floods, deterioration
in the external terms of trade and political uncertainty. Problems in cotton related sectors was reflected
in deceleration of industrial output. In 1993/94, GDP growth has recovered to nearly 4 per cent with
the help of recovery in the agriculture sector, which grew by 2.6 per cent. The growth in the
manufacturing sector led by large scale manufacturing, recovered to 5.6 per cent despite retrenchment
in engineering related industries.
C/RM/G/5O
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2.2 19
2,008
1,506
65
43
38
20
55.8 Pakistan C/RM/G/50
Page 13
Following a period of low inflation during the 1980's when growth in output was achieved
without aggravating inflationary pressures and price increases remained moderate, inflation accelerated
in 1990-91 and then again in 1993/94 fuelled by expansionary fiscal and monetary policies. Inflation
was contained to 10.6 per cent in 1993/94 as financial policies were tightened during the second half
of the year.
Table 3
Pakistan: (Growth Rates of Gross National product
(At Constant Factor Cost)
1990/91 1991/92 1992/93 1993/94
Commodity Sector 59 8.6 0.1 4.1
Agriculture 5.0 9.5 -5. 3 2.6
Minning & Quarrying 10.4 2.4 3.0 5.8
Manufacturing 6.3. 8.1 5.4 5.6
Construction 5.7 6.0 5.8 3.7
Electricty & Gass Distribution 11.0 7.0 6.1
Services Sector 5.2 6.8 4.6
GDP (Constant factor cost) 5.6 7.7 2.3 4.0
GNP (Constant factor cost) 3.6 6.6 2.4 3.8
Memo item:
GNP at current market prices
on billon of rupees 1044.5 1223.9 1356.9 1.569.4
Source: Federal Bureau of Statistics.
Table 4
Pakistan Sectoral Shares in GDP
(At Constant Factor (Cost)
1969/70 1991/92 1992/93 1993/94
Commodity Sector 61.6 52.1 50.9 51.0
Agricuiture 38.9 26.2 24.2 23.9
Mining & Quarrying 0.5 0.5 0.5 0.5
Manufacturing 16.0 17..6 18.3 18.6
Construction 4.2 4.1 4.2 4.2
EIectricity & Gas Distribution 2.0 3.5 3.7 3.7
Services Sector 38.4 47.9 49.1 49.0
GDP at constant factor cost 100.0 100.0 100.0
Source Federal Bureau of Statistics. C/RM/G/50 Trade Policy Review Mechanism
Page 14
Agriculture output peaked in 1991/92 following a period of sustained growth in the previous
decade. Large gains were made in cotton production reaching a record level of 12.8 million bales
in that year. Expansion of agricultural output reflected a number of factors including supply response
to higher international prices in recent years, favorable weather condition and improvement in seed
varieties and farming techniques. Agricultural policy in Pakistan in recent years has moved towards
more rational pricing of inputs and crop pricing reflecting international market developments. These
policies have allowed the private sector to assume a greater role in trading agricultural commodities.
Federal and Provincial development programmes have focused increasingly on developing agricultural
infrastructure and have contributed towards enhancing productivity through the provision of extension
services. timely availability of inputs and ensuring greater access to agricultural credit.
Industrial output has continued its upward trend that began in the late 1980s helped by policies
aimed at promoting investment in exports. Cotton based industries continued to dominate the sector.
where output was substantially boosted by modernization and addition to existing capacity. The
Government has adopted a two prong industrial policy, emphasizing privatization and providing
investment incentives to the private sector. The investment policy encourages domestic investment
and attracting investment by foreign and Pakistan nationals residing abroad. Correspondingly sanctioning
requirements for foreign investment have been simplified and with minor exceptions all industrial zones
are now open to foreign investors.
In the years ahead, the authorities aim to establish macroeconomic balance through stabilization
policies reinforced by structural measures. The medium-term macroeconomic strategy seeks to address
financial imbalances in a sustained manner, promote growth while alleviating poverty and improving
social sector performance.
Il. THE EXTERNAL ECONOMIC ENVIRONMENT
(a) Balance of Payments
The structural reforms programme which Pakistan has been implementing since 1988/89 has
had a strong bearing on recent balance of payments developments. The reforms have been aimed at
expanding merchandise exports, liberalising imports of goods and services and encouraging the inflow
of foreign direct and portfolio investment.
Prior to 1992/93 the current account benefitted from a strong performance of exports which
grew steadily in relation to GDP. However the impact of export receipts was partly offset by rapid
increases in imports of goods and services. Nevertheless the curient account deficit declined from
3.4 per cent of GDP in 1989/90 to 2.1 per cent in 1991/92. During this period medium and long-term
capital inflows also declined somewhat with the result that the overall balance of payments did not
improve significantly and remained in small surplus. Gross official international reserves remained
relatively low albeit growing gradually (Table 5). Pakistan C/RM/G/50
Page 15
Table 5
Pakistan: Summary Balance of Payments a
1991/92 1992/93 1993/94
(In million of U.S. dollars)
Current acct. before off. transfers -1500) -3687 2423
Exports fob 6762 6782 6566
Imports fob -8998 10049 8825
Services (net) -21225 2748 2524
Of which: interest payments 999 - 1159 -1237
Private transfers (net) 2292 2327 2360
Of which workers remittances 1468 1502 1435
Official transfers (net) 450 361 314
Current account balance - 1050 -3326 -2109
Capital account 1180 2737 2514
Medium-and long-term capital 766 815 826
Project and nonproject aid 966 846 ...
Commercial banks and IDB -165 42 ...
Other official capital -35 11 ...
Public sector short-term (net) -4(03 739 89
Private medium-and long term 11.17 1234 1417
Private short-term (incld.e & o) -320) -50) 191
Of which: errors and omissions -33 26 ...
Overall balance 130 -589 -405
Financing -130 589 -895
Net int. reserves (increase -) -352 512 -1194
Use of IMF credit 222 77 299
Memorandum items
Gross official reserves excldg. gold 1038 469 1663
(in weeks of cif imports) 5.5 2.2 9.1
(In per cent of GDP)
Current acct. before off transfers -3.1 -7.1 -4.6
Current account balance -2. I -6.4 -4.0
External debt 40.4 44.2 46.1
(Annual per centage changes)
Exports fob 14.6 0.3 -3.2
Imports fob 7.3 11.7 -13.5
a Covering 12-month period JuIy-June.
Source: State Bank of Pakistan.
In 1992/93, reflecting the failure in agricultural production, exports remained stagnant while
imports expanded sharply (Table 6 & 7). The current account deficit jumped from US$1.05 billion
in 1991/92 to US$3.2 billion in 1992/93 (6.4 per cent of GDP). To meet the financing need, public
sector and commercial bank short-term borrowing was sharply increased but it could not prevent a
draw down of about US$589 million in reserves. In 1993/94 initial estimates show some reversal of
the previous year's deterioration, with thecurrent account deficit reduced to US$2.1 billion (4.0 per cent
of GDP) and the overall balance in surplus by US$405 million. Gross official reserves stood at US$1 .6
billion (excluding gold) which was equivalent to over 9 weeks of imports. Trade Policy Review Mechanism
Trade Ex/lmp
Balance Ratio
per cent
66
71
75
69
1981 -1488
-2348
-3128
79
Year
Export Unit
Value Index
1988/99
1189/90
1990/91
167.99
192.93
197.05
209.59
1992/93
214.56
Import Unit Terms of
Value Index Trade
187.54
215.00
252.79
253.34
270.62
89. 58
89.73
77.95.
82.73
79.28
Source: Ministry of Commerce .
(b) Exports
Receipts from merchandise rose from US$4.4 billion in 1987/88 to 6.9 billion in 1991/92.
The increase in export receipts was associated with a shift in the composition of cotton based export
from raw cotton to cotton manufacturers and ready-made garments, and with a large increase in cotton
productions in 1991/92. Other traditional exports showed some improvement towards end of this period.
But a major contribution to the increase in total exports during this period was made by leather
manufacturers, sports and surgical goods (Tables 8 and 9).
Export earnings in 1992/93 declined sharply due to supply constraints. The production of raw
cotton was seriously damaged by floods and pest attack. There has been some recovery in exports
in 1993/94. The changes in the composition of exports were associated with changes in the direction
of export rate. A larger share of exports are now sold in the United States while the shares of the
European Community and Japan have declined.
C/RM/G/50
Page 16
Table 6
Pakistan: Balance of Trade
(Value in millions of US dollars)
Year
Exports
1988/89
Imports
7034
69.35
4954
1989/90
1990/91
1992/93
1993/94
-2373
61.31
7619
6813
9252
9941
6803
Source: Ministry of Commerce.
Table 7
Pakistan: Terms of Trade
(1980/81 = 100)
6904 Pakistan
C/RM/G/50
Page 17
The trend in export earning conceals the underlynig adverse price developments reflected in
the deterioration in Pakistan's term of trade. The effect of adverse price developments was compounded
by the continuation of protectionists barriers in some export markets.
Table 8
Pakistan: Exports by Economic Categories
(Value in millions of US dollars)
Primary
Year Commodities
Semi-
manufactures
Manufactures
Total
Vulue Per cent
Share
Value Per cent
Share
Value Per cent
Share
Value Per cent
Share
1988 89 1528 33
1989 90 1007 20
1990 91 1145 19
1992 93 1006
Source: Ministry of Commerce.
875 19
1171 24
1499 24
1477 21
1405 21
2258 48
2776 50
348 57
4115 60
4403 64
5806 100
4954 100
2992 100
6904 100
6814 100 C/RM/G/50
Page 18
Table 9
Pakistan's Major Destination of Exports"
(Value in millions of U.S dollars)
Country 1988/89 1989/90
Japan 541 457
(11 .6) (9.2)
U S.A. 535 655
(11.5) (13.2)
Germany 290 394
(6.2) (8.0)
U.K. 290 337
(6.2) (6.8)
Italy 213 236
(4.0) (4.8)
Saudi Arabia 110 130
(2.4) (2.6)
Hong Kong 261 210
(5.6) (4.2)
France 133 183
(2.9) (3.9)
Dubai 173 145
Dubai (3.7) (2.9)
South Korea 157 147
(3.4) (2.9)
Netherlands 79 97
(1.7) (2.0)
Canada 71 81
(1.5) (1.6)
Others 1 8() 1882
(38.7) (37.9)
Total 4661 4954
Figures in brackets indicate the share in exports.
Source: Ministry of Commerce.
Trade Policy Review Mechanism
90
1990/91
508
(8.3)
660
(10.8)
545
(8.9)
446
(7.3)
231
(3.8)
291
(3.6)
367
235
(3.8)
175
(2.8)
241
(3.9)
122
(2.0)
103
(1.7)
2279
(37.1)
6131
1991/92
572
(8.3)
885
(12.8)
489
(7.1)
457
(6.6)
220
(3.2)
295
(4.3)
502
(7.3)
268
(3.9)
304
(4.4)
203
(2.9)
149
(2.2)
132
(1.9)
2428
(35.1)
6904
1992/93
406
(6.8)
945
(13.9)
531
(7.8)
485
(7.1)
174
(2.6)
319
(4.7)
450
(4.3)
403
(5.9)
165
(2.4)
180
(2.6)
155
(2.3)
2245
(33.0)
6813 Pakistan C/RM/G/5O
Page 19
(c) lmports
Largely as a result of the authorities' import liberalisation programme, the value of merchandise
imports rose from US$6.9 billion in 1987/88 to 9.1 billion in, 1991/92. Some of this increase was
due to the rise in oil price, but most of it reflects the up-turn in private sector imports facilitated by
the more liberal import regime and reflecting higher level of private sector investment, production
and exports. Another significant factor in accounting for developments in imports during this period
is the substantial reduction in the maximum tariff rates applied by Pakistan on imports. The maximum
tariff was lowered in steps from 225 per cent in June 1988 to 90 per cent in July 1991 and further
to 80 per cent in July 1992 and now finally to 70 per cent in July 1994.
The import bill in 1992/93 was affected by larger imports of wheat and machinery that were
needed in the aftermath of floods. Imports in 1993/94 were contained through tight demand management
and financial pol icies (Tables 10 and11 ).
Table 10)
Pakistan: Economic Category-Wise imports
(Value in millions of US dollars)
Year Consumer goods Raw material for Raw material for Capital goods
consumer goods capital goods
Value Sharea Value Sharea Value Sharea Value Sharea
1988 89 1210 17 2747 39 514 7 2563 37
1989 90 1325 19 28I8 41 486 7 2256 33
1990.91 1198 16 3397 44 517 7 2507 33
1991 92 1186 13 3573 39 611 7 3882 42
1992 93 1386 14 3816 38 550 6 4189 42
a In per cent.
Source: Ministry of Commerce. Trade Policy Review Mechanism
Table 11
Pakistan: Major Sources of Imports a
(Value in millions of US dollars)
Country 1988/89
Japan 974
(13.8)
U.S .A . 1106
(15.7)
Germany
U.K.
France
China
South Korea
507
(7.2)
414
(5 .9)
287
(4.1)
192
(2.7)
(4.4)
231
205
(2.9)
(1.4)
245
(3.5)
144
(2.0)
(33.9)
7034
Italy
Iran
Malaysia
SwitzerIand
Others
Total
1989/90
875
(12.6)
955
(13.8)
532
(7.7)
366
(5.3)
313
(4.5)
129
(1.9)
271
(3.9)
203
(2.9)
126
(1.8)
120)
(1.7)
245
(3.5)
155
(2.2)
2645
(38.1)
6935
1990/91 1991/92 1992/93
987 1325 1579
(13.8) (14.3) (15.9)
901 971 9.38
(11.8) (10.5) (9.4)
553
(7 .3)
376
(4.9)
478
(6.2)
220
(2.9)
386
(5.1)
213
(2.8)
264
(3.5)
181
(1.8)
304
(4.0)
195
(2.6)
2561
(33.6)
7619
736
(8.0)
504
(5.5)
485
(5.2)
438
(4.7)
400
(4.3)
307
(3.3)
384
(4.1)
155
(1.7)
389
(4.2)
242
(2.3)
2916
(33.6)
9252
744
(7.4)
504
(5.2)
541
(5.4)
413
(4.2)
420)
(4.2)
445
(4.5)
335
(3.4)
177
(1.8)
511
(5.1)
226)
(2.3)
3096
(31.2)
9941
a Figures in brackets
Source: Ministry of Commerce.
indicate the share in imports.
C/RM/G/50
Page 20 Pakistan C/RM/G/5O
Page 21
(d) Exchange Rate
Between February 16, 1973 and January 7, 1982, the rupee was pegged to the US dollar at
the rate of PRs.9.90 = US$1.0. On January 8, 1982, the rupee was unpegged from the US dollar
but the latter was retained as the intervention currency, and a managed floating rate system was
introduced. Under the current managed float exchange rate arrangement of Pakistan, the State Bank
of Pakistan sets the rate at which it purchases and sells US dollars in its transactions with authorised
dealers. The rate is adjusted on a frequent basis taking into account the exchange rate developments
of the US dollar against other major currencies of the world and currencies of trading partners, and
the external domestic fundamentals of Pakistan's economy.
On the whole the Pakistan Rupee has been depreciating against the US dollar since 1982 except
for short periods (e.g. in 1983/84). The movement of the rupee against the US dollar since 1987 is
shown in Table 12.
Table 12
Pakistan: Exchange Rate vis-à-vis US dollar 1988/93
(In Rupees per U.S. dollar)
Exchange Rate
First quarter 17.52
Second quarter 17.69
Third quarter 18.20
Fourth quarter 18.60
1989
First quarter 19 .24
Second quarter 20.61
Third quarer 21.05
Fourth quarter 21.27
1990
First quarter 21.42
Second quarter 21 .83
Third quarter 21.75
Fourth quarter 21.83
1991
First quarter 22.24
Second quarter 23.65
Third quarter 24.62
Fourth quarter 24.68
1992
First quarter 24.74
Second quarter 25.08
Third quarter 25.08
Fourth quarter 25.70
First quarter 2 6. 65
Second quarter 27.16
Third quarter 29.85
Fourth quarter 30.12
Source: International Financial Statistics, IMF. C/RM/G/5O
Page 22
Trade Policy Review Mechanism
(e) Foreign Exchange Reserves
Pakistan's gross official foreign reserves (excluding gold) gradually increased in the years
following 1988/89 to over US$1.0 billion (equivalent to 5.5 weeks of imports) in 1991/92. After
a draw down of reserves in 1992/93 to help finance the unexpectedly large current account deficit in
that year. reserves have been restored to over US$1.6 billion (equal to 9 weeks of imports) in 1993/94
(Table 13).
Table 13
Pakistan: Gross Official Reservesa
(In millions of U.S. dollars)
Foreign
Exchange
1988
1989
1990
1991
1992
1993
97 -
92 7
388
90 1
639
97 1 98 7
195
409
850
1196
Total
487
730
293
514
947
1295
19944 June
a On the last Thursday of each month.
b Valued at SDR 35 per fine ounce and converted into U.S. dollars at end-monih SDR/U.S. dollar rates.
Source: international Financial Statistics. IMF.
III. INTERNATIONAL ECONOMIC ENVIRONMENT
The risk of a further deepening of recession in many industrial countries following the severe
economic slowvdown since 1990, seems to have been abated. This was the result of efforts by the
international community to address the challenges ina global and cooperative framework. World output
is projected to expand by 3 per cent in 1994 and by 3 3/4 per cent in 1995 as the global economy
continues its gradual recovery.' Expansion is underway in North America and the U.K. while
Continental Europe and Japan remain sluggish. Developing country growth is expected to remain robust
on average. At the same time, rates of inflation in the world economy are projected to decline further
from levels which for many countries are the lowest experienced since the early 1960's. Reflecting
these developments and the conclusion of the Uruguay Round, world trade volume is expected to increase
by nearly 6 per cent annually in 1994 and 1995 after growing by just over 2 per cent in 1993. Most
of the acceleration is due to expansion in industrial country imports.
"World Economic Outlook, May 1991," International Monetary Fund.
Goldb SDRs Pakistan C/RM/G/50
Page 23
Expansion of world output and trade should generally improve the export prospects for Pakistan.
Recent developments could particularly be helpful since the direction of export trade in recent years
has been changing towards the North American market where the economic recovery has clearly set in.
The successful conclusion of the Uruguay Round of trade negotiations has removed a substantial
downside risk to the prospects for world growth and trade. Its short-term effect will be visible in
boosting confidence and increasing investment incentives. Over the medium and long term, estimates
indicate that the level of world trade will expand by 10 per cent as a result of the full implementation
of the agreement.
The results of the Uruguay Round could also be beneficial for Pakistan. Of special significance
in this context is the strengthening and expansion of the trading system through the inclusion of
agriculture, textiles and services within the scope of the multilateral system. However much will depend
on the manner in which the results of the Round in these areas are implemented. and the speed with
which this implementation takes place. Equally important will be the necessity to resist the temptation
of interpreting the new rules to serve narrow protectionist purposes especially in Pakistan's major export
markets.
On another front, Pakistan is one of the emerging stock markets that has drawn the attention
of world financial system. Improved economic prospects and financial sector reform in Pakistan have
attracted substantial inflows of foreign direct and portfolio investment in recent years. These inflows
have helped to support investment and have facilitated the privatisation of public enterprises.
Notwithstanding these positive developments, the surge in capital inflows and in stock market prices
raise concerns about the risk of speculative bubbles and unpredictable changes in market sentiment.
To minimise chances of adverse developments. Pakistan intends to continue pursuing short-term economic
stabilisation policies and strengthen prudential supervision of its financial system.
IV. PROBLEMS IN EXTERNAL MARKETS
As stated elsewhere, Pakistan is one of the founder members of the General Agreement. Oddly
enough however, the two most important areas of its export interest have largely been kept outside
the scope of the normal rules of the multilateral trading system, and of the successive rounds of
liberalisation under the GATT auspices. While agriculture felI victim to trade distortions through large-
scale subsidisation by the major industrialised countries, the textiles sector has encountered systematic
barriers against normal growth of trade and discriminatory treatment through the Multi-fibre Arrangement
anid its predecessor short and long-termn arrangements. Evenî the results of the Uruguay Round have
fallen short of the Pakistan's genuine expectations in these areas. In agriculture, massive subsidisation,
both for production and export, has been legitimised. In textiles, likewise, the restrictions are likely
to persist for a long period of ten years.
In additions, exports are being increasingly subjected to initiation of anti-dumping and
countervailing investigations which creates uncertainty and depresses the business sentiment. Investigation
periods are sometimes quite lengthy and the legal costs of defending against these cases is prohibitive.
The phenomenon is matter ot particular concern because although a number of investigations initiated
into alleged dumping or subsidisation of imports from Pakistan all resulted in negative findings, they
had already created a damaging impact on normal growth of trade.
During the last few years, the growing tendency towards creation of trading blocs is extremely
worrisome to Pakistan, especially as these discriminate against non-member countries. C/RM/G/50 Trade Policy Review Mechanism
Page 24
Annex I
Various Acts and Ordinances Affecting Trade
1 Export (Quality Control) Order 1973
2. Inspection Aggencies (Registration and Regulation) Ordinance 198I.
3. Textile Quota Management Order
4. Agricultural Pesticides Ordinance 1971
5. Trade Marks Act
6. Weights and Measures Act
Annex Il
Products Given Tariff Preferences Under TNDC
1. Raisins and Sultanas.
2. Nuts.
3. Cellulose Plates and Sheets.
4. Certain Veneer Sheets.
5. Cotton Yarn.
6. Ropes and Cables.
7. High Pressure Hydro-Electric Conduits of Steel.
8. Containers.
9. Copper and certain other Wires and Cables.
10. Road Building Equipment.
11. Looms.
12. Warping and Beaming Machines and Knitting Machines. Pakistan C/RM/G/50
Page 25
Annex III
Bilateral Trade Agreements
Name of Countries
1. U.S.A.
2. Bangladesh
3. India
4. Sri Lanka
5. Maldives
6. Nepal
7. Japan
8. Philippines
9. Indonesia
11. South Korea (ROK)
I I. Thailand
12. Malaysia
13. Canada
14. Iraq
15. Kuwait
16. Jordan
17. Syria
18. Rep of Yemen
19. Germany
20. Spain
21. Bulgaria
22. Greece Trade Policy Review Mechanism
Portugal
Italy
China
Morocco
Tunisia
Algeria
Tanzania
Sudan
Libya
Egypt
Nigeria
Kenya
Senegal
Zimbabwe
Mauritius
Tajikistan
Kazakistan
Uzbekistan
Iran.
Annex IV
Border Trade Agreements
Iran
China
C/RM/G/50
Page 26
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41. Pakistan C/RM/G/50
Page 27
Annex V
Quality Control Regulations
1. Wool (Grading & Marking Rules 1953) under the agricultural produce (Grading & Marking
Act) 1937 (1 of 1937).
2. Animal hair (Grading & Marking Rules 1961).
3. Lamb skins (Grading & Marking rules 1971).
4. Casings (Grading & Marking Rules 1970) X-67.
5. Dry Fish and Shell Fish (Grading & Marking Rules 1937).
6. Fish Meal (Grading & Marking Rules 1937).
7. Bones (Grading & Marking Rules 1969).
8. Citrus (Grading & Marking Rules 1970).
9. Line and Lemon (Grading & Marking Rules 1971).
10. Dry spices whole (Grading & Marking Rules 1971).
11. Potatoes (Grading & Marking Rules 1967).
12. Mangoes (Grading & Marking Rules 1979).
13. Oil Cakes (Grading & Marking Rules 1967). |
GATT Library | zq142df3319 | Trade Policy Review Mechanism. Republic of Cameroon. : Report by the Secretariat | General Agreement on Tariffs and Trade, January 3, 1995 | General Agreement on Tariffs and Trade (Organization) and Council | 03/01/1995 | official documents | C/RM/S/56 and 0002 C/RM/S/56 | https://exhibits.stanford.edu/gatt/catalog/zq142df3319 | zq142df3319_90080422.xml | GATT_1 | 49,519 | 349,004 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
C/RM/S/56
3 January 1995
Limited Distribution
(95-0002)
COUNCIL
In pursuance of the CONTRACTING PARTIES' Decision of 12 April 1989 concerning the
Trade Policy Review Mechanism (BISD 36S/403), the Secretariat submits herewith its report on the
Republic of Cameroon.
The report is drawn up by the Secretariat on its own responsibility. It is based on the information
available to the Secretariat and that provided by the Republic of Cameroon. As required by the Decision,
in preparing its report the Secretariat has sought clarification from the Republic of Cameroon on its
trade policies and practices.
Document C/RM/G/56 contains the report submitted by the Government of Cameroon.
NOTE FOR ALL DELEGATIONS
Until further notice, this document is subject to a press embargo. Republic of Cameroon
CONTENTS
SUMMARY OBSERVATIONS
(1) Cameroon in World Trade
(2) Trade Policy Framework
(3) Trade Policy Features and Trends
(i) Recent evolution
(ii) Type and incidence of trade policy instruments
(iii) Temporary measures
(iv) Sectoral policy patterns
(4) Trade Policies and Trading Partners
THE ECONOMIC ENVIRONMENT
(1) Major Features of Cameroon's Economy
(2) Economic Developments to the mid-1980s Crisis
(3) Economic Developments since 1986
(4) Trade Performance
(i) Regional pattern of trade
(ii) Commodity pattern of trade
(5) Outlook
ANNEX I: Foreign Exchange Régime
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES
(1) General Framework
(2) Structure of Trade Policy Formulation
(i) Executive and legislative branches of Government
(ii) Advisory bodies
(iii) Review bodies
C/RM/S/56
Page iii
Page
ix
ix
x
xi
xi
xi
xii
xii
xiii
2
4
6
9
9
11
13
14
16
16
16
16
17
17 C/RM/S/56 Trade Policy Review Mechanism
Page iv
(3) Trade Policy Objectives 18
(i) General trade policy objectives 18
(ii) Cameroon in the Uruguay Round 18
(4) Trade Laws and Regulations 20
(5) Trade Agreements and Arrangements 22
(i) Multilateral agreements 22
(ii) Regional agreements 22
(iii) Bilateral agreements 24
(iv) Other agreements or arrangements 24
IlI. INVESTMENT POLICIES AND TRADE 25
(1) Foreign Investment Policy 25
(2) Legal Framework and Procedures 25
(3) Trends and Patterns of Foreign Investment 28
IV. TRADE POLICIES AND PRACTICES BY MEASURE 31
(1) Overview 31
(2) Measures Directly Affecting Imports 31
(i) Registration and documentation 33
(ii) Tariffs 35
(iii) Variable import levies 40
(iv) Levies and other charges 40
(v) Customs valuation and pre-shipment inspection 43
(vi) Minimum import prices 44
(vii) Import controls and prohibitions 44
(viii) Import licensing 46
(ix) Import quotas 47
(x) Import cartels. 47
(xi) Countertrade 47
(xii) Standards and other technical requirements 47
(xiii) Local content requirement 48
(xiv) Rules of origin 49
(xv) Government procurement 49 Republic of Cameroon C/RM/S/56
Page v
(xvi) Anti-dumping and countervailing measures 50
(xvii) Safeguard actions 51
(xviii) Measures implemented in exporting countries 51
(xix) Other measures 51
(3) Measures Directly Affecting Exports 51
(i) Registration and documentation 51
(ii) Export taxes and charges 52
(iii) Minimum export prices 53
(iv) Export controls and prohibitions 53
(v) Export licensing 53
(vi) Export quotas 54
(vii) Export cartels 54
(viii) Voluntary restraints, surveillance and similar measures 54
(ix) Export subsidies 54
(x) Duty and tax concessions 54
(xi) Export finance and export insurance and guarantees 54
(xii) Export promotion, marketing assistance 55
(xiii) Export performance requirements 55
(xiv) Free-trade zones, export-processing zones 55
(4) Measures Affecting Production and Trade 56
(i) Competition policy 56
(ii) Price policy 57
(iii) Marketing and pricing arrangements 58
(iv) State trading 58
(vi) Adjustment and regional assistance 60
(vii) Research and development (R&D) and credit assistance 61
(viii) Other measures 62
V. TRADE POLICIES AND PRACTICES BY SECTOR 63
(1) Overview 63
(2) Agriculture, Fisheries, Forestry and Derived Products 64
(i) Staple crops 65
(ii) Export crops 66
(iii) Livestock 74
(iv) Fish, shellfish and products 75
(v) Forestry 75 C/RM/S/56 Trade Policy Review Mechanism
Page vi
(3) Mining including petroleum) 81
(i) Petroleum and other fuels 81
(ii) Non-fuel minerals 84
(4) Manufacturing 85
(i) Food, beverages and tobacco 90
(ii) Textiles, clothing and leather products 91
(iii) Wood products 92
(iv) Paper and printing 93
(v) Chemicals, petroleum, rubber, plastics 93
(vi) Non-metallic mineral products 95
(vii) Basic metals 95
(viii) Fabricated metal products, machinery, equipment and others 96
VI. TRADE DISPUTES AND CONSULTATIONS 97
(1) Disputes under the GATT 97
(2) Dispute Settlement in other Fora 98
REFERENCES 101
APPENDIX TABLES
103 Republic of Cameroon
CHARTS
Page
1. THE ECONOMIC ENVIRONMENT
1.1 GDP by sector, 1975-92
1.2 GDP per capita in Cameroon, 1970-94
1.3 Terms of trade and the REER, 1978-93
1.4 Direction of Cameroon's trade by destination and source, 1980-93
1.5 Composition of Cameroon's trade, 1980-93
IlI. INVESTMENT POLICIES AND TRADE
III.1 Net foreign direct investment, 1976-91
III.2 Capital and ownership structure of manufacturing ente rises, 1984/85
IV. TRADE POLICIES AND PRACTICES BY MEASURE
IV. 1 Distribution on tariff lines by m.f.n. tariff rate, 1994
IV.2 Tariff escalation, 1994
V. TRADE POLICIES AND PRACTICES BY SECTOR
V.1
V.2
V.3
V.4
V.5
V.6
V.7
Production of forest products, 1991
Exports of forest products, 1991
Exports of forest products to selected countries, 1991
Production, exports and consumption of crude petroleum,
Evolution of Syndustricam members
Employment and establishment numbers
Value of production and value added, 1985-86
1980-94
C/RM/S/56
Page vii
3
4
7
10
12
28
29
37
38
77
77
78
82
86
88
89
. C/RM/S/56
Page viii
TABLES
1. THE ECONOMIC ENVIRONMENT
1.1
1.2
Basic indicators, 1970-92
Economic performance of Cameroon, 1975-94
IV. TRADE POLICIES AND PRACTICES BY MEASURE
IV.1 Goods subject to import prohibition
IV.2 Products requiring technical endorsement
V. TRADE POLICIES AND PRACTICES BY SECTOR
V. I Production and export indicators for forest products
APPENDIX TABLES
AI.1
AI.2
AI.3
AI.4
AV.1
Merchandise exports by principal destination, Cameroon, 1980-93
Merchandise imports by principal origin, 1980-93
Merchandise exports by broad product category, 1980-93
Merchandise imports by broad product category, 1980-93
Tariff and imports by ISIC category
Trade Policy Review Mechanism
1
45
46
76
105
106
107
108
109
Note on statistics
There are considerable difficulties in compiling reliable economic statistics for Cameroon;
international financial institutions are currently assisting the authorities in building a sound data
base, consequently all national accounts and balance of payments figures remain subject to
revision. The statistics presented in this report reflect information available in late August
1994. Most trade statistics have been estimated by the Secretariat on the basis of partner data. Republic of Cameroon
SUMMARY OBSERVATIONS
1. After decades of import-substitution
policies, Cameroon began opening its
international trade system in the late 1980s, a
process which included the introduction of new
customs and fiscal régimes in January 1994.
As a result, quantitative restrictions, tariff
exemptions and special customs and fiscal
régimes have now been eliminated or drastically
reduced. With some important exceptions,
exports are largely uncontrolled and most export
charges are low. Cameroon's import tariffs are
all ad valorem and applied in four tiers, with
an average of 18.8 per cent. A new turnove.
tax has been introduced andprogress continues
in areas related to competition policy,
government procurement, technical requirements
and anti-dumping.
2. Cameroon's trade liberalization and
fiscal reform are part of a larger
market-oriented economic reform programme
aimed at reversing a prolonged economic
downslide triggered by the halving of world
petroleum prices in 1986. The ensuing sharp
falls in export revenue and government income
required increasingly stringent internal measures
to keep the overall budget deficil under control.
As these measures failed to restore growth,
Cameroon in concert with the other countries
of the franc zone sought to restore
competitiveness by devaluing the CFA franc from
CFAF 50 to CFAF 100 per French franc in
January 1994. The success of the devaluation
in achieving a sustained higher level of exports,
and thus helping to underpin stable growth,
hinges in part on containing inflation so as to
preserve the cost advantages derived from the
devaluation. Although there were signs in late
1994 that the strategy might be working,
Cameroon's process of economic reform is still
fragile and inadequate investment levels remain
a serious constraint to a sustained economic
recovery.
3. Cameroon has made little use of
multilateral commitments to reassure investors
and other economic agents of the permanence
of its new outward economic orientation.
Cameroon had no tariff bindings in the pre-
Uruguay Round GATT. Implementation of the
Uruguay Round results will lead to only a
handful of new tariff bindings for industrial
products. Although Cameroon has bound all
its agricultural tariffs under the Uruguay Round
Agreement, the ceiling rates introduced,
80 per cent with a maximum level for "other
duties and charges" of 230 per cent, are many
times higher than the currently applied tariffs.
The low level of multilateral commitments is of
particular concern because there appear to be
few institutional constraints to prevent
protectionist measures creeping back into
Cameroon's trading system. Deeper multilateral
commitments would confirm the
authorities 'stated determination not to back-track
on trade reform.
(1) Cameroon in World Trade
4. Cameroon's service sector accounts for
almost half of GDP; the agriculture and
manufacturing sectors are also large, each
accounting for about 22 per cent of GDP.
Agriculture is particularly important as it
employs about 80 per cent of Cameroon's
population; manufacturing is responsible for
a large share of total formaI employment.
Manufacturing is mostly based on the processing
of indigenous agricultural products, although
processing of imported materials also takes
place. Among the largest manufacturing
industry groups are food and beverage products,
textiles, and aluminium. The informal sector
is sizable and growing.
5. Cameroon's largest trading partner is
the European Union (EU), which accounts for
some 75 to 80 per cent of trade in each
direction. About 30 per cent of Cameroon 's
exports are to France; Italy, the Netherlands,
Spain and, to a lesser extent, Germany were
Cameroon 's other main export markets. Outside
the EU, the United States is the largest market
for Cameroon 's exports but its importance has
C/RM/S/56
Page ix Trade Policy Review Mechanism
C/RM/S/56
Page x
fallen markedly since the early 1980s. The
share of Africa in Cameroons exports is
estimated at between 5 and 10 per cent, the
largest markets apparently being the Central
Africa Republic, Congo, Gabon, Morocco and
Nigeria. By far the leading supplier to
Cameroon is France, with a share of about
45 per cent; other major European suppliers
include Belgium, Germany, Italy, the
Netherlands and Spain. Cameroon's largest
non-European suppliers are the United States
and Japan; although now well documented,
imports from Nigeria and Cameroon's other
neighbours also appear important.
6. Crude petroleum accounts for about half
of Cameroon's total exports, down from two-
thirds in 1985. Non-petroleum exports are
spread over a relatively broad range of
agricultural products, the most important being
bananas, cocoa, coffee, cotton, natural rubber
and wood logs. The major processed export
product is aluminium. Cameroon's imports are
dominated by manufactured goods, which
account for some three-fourths of all imports.
The main imported products are chemicals
(including medicines), alumina and automotive
products, but a broad assortment of other
products is also imported. Food imports
account for slightly under 20 per cent of total
imports, mainly frozen fish, flour and rice.
Crude petroleum imports for the local refinery
are also significant.
(2) Trade Policy Framework
7. Cameroon is a bilingual, unitary state.
The President is Head of State with executive
responsibility for the conduct of the Republic's
affairs and the negotiation and ratification of
treaties. The President appoints the Prime
Minister and the ministers and secretaries of
state and presides the Council of Ministers.
Ministries involved in the formulation and
administration oftrade or trade-related policies
include those of Industrial and Commercial
Development, Finance, Foreign Affairs,
Agriculture, and Town Planning and Housing.
Cameroon's legisIature, theNational Assembly,
is a unicameral body of 180 elected members
serving five-year terms.
8. Cameroon does not have aforeign trade
law. International treaties and laws aresubject
to approval by the National Assembly.
International accords ratified by Cameroon,
including GATT, are in effect from the time they
are ratified, with no implementing texts
required, and take precedence over internal laws
except the Constitution. Responsibility for
negotiating, concluding and signing trade-
related treaties and agreements is vested in the
Ministry of Industrial and Commercial
Development and the Ministry of Foreign
Affairs.
9. Cameroon is a member of the Central
Africa Customs and Economic Union (CACEU),
whose other members are the Central African
Republic, Chad, Congo, Gabon and, non-GATT
party, Equatorial Guinea. The CACEU Treaty
provides for a common external tariff as the
main instrumentfor extra-regional trade policy
and for a preferential duty to promote intra-
regional trade. Exchange rate stability and the
harmonization of monetary policies between
CACEU members is ensured through their
participation in the Bank of Central African
States (BEAC). The Convention of Monetary
Cooperation between BEAC-member countries
and France provided for a fixed exchange rate
between the CFA franc and the French franc.
10. GATT rules and obligations can be
invoked in relevant matters before Cameroon's
courts and GATT obligations are taken fully into
account in the elaboration of trade-related
domestic legislation. After independence in
1960, Cameroon applied the GATT de facto until
it became a contracting party on 3 May 1963,
with rights and obligations applying retroactively
to 1 January 1960. Cameroon has observer
status in the Tokyo Round Agreements on
Government Procurement, Customs Valuation
and Civil Aircraft, but has not acceded to any
of the Tokyo Round Agreements and
Arrangements. Republic of Cameroon
Il. Cameroon's main objectives during the
Uruguay Round were to improve market access
for its exports and to enhance the security of
that access. Cameroon participated throughout
the Uruguay Round, taking a coordinated
approach with its fellow members of the CACEU
in several areas, including agricultural and
natural resource-based products, tariff
escalation in importing countries and improved
market access opportunities. The authorities
were satisfied that Cameroon's objectives for
the Round had been attained, although concerns
linger in relation to subsidized agricultural
exports and the erosion of the preference
margins enjoyed by Cameroon under the Lomé
Convention.
12. The authorities believe that no major
regulatory changes are required to implement
the Round's results, particularly given
Cameroon's recent liberalization of its trade
régime. As of 20 December 1994, the National
Assembly had begun, but not yet completed, its
approval of Cameroon's ratification of the World
Trade Organization.
13. Cameroon is granted trade preferences
in accordance with existing GSP schemes by
developed countries and enjoys preferential
access to the European Union's market under
the Lomé Convention. Cameroon is a
contracting party to the Global System of Trade
Preferences (GSTP) among developing countries
and within this system it has an agreement with
Romania. Tariffs are applied on an m.f.n.
basis, the only significant exception being trade
with other members of the CACEU. Cameroon
is party to several commodity agreements
established within the United Nations Conference
for Trade and Development, including the
cocoa, coffee, natural rubber and tropical
timber agreements.
C/RM/S/56
Page xi
(3) Trade Policy Features and Trends
(i) Recent evolution
14. Before 1994, Cameroon's tariff yielded
relatively low revenue because of the widespread
use of exemptions, made necessary to offset, in
part, the strong anti-export bias inherent in the
real effective appreciation of the CFA franc after
1985. The end result was an extremely complex
import régime which tended to provide industries
with "tailor-made" protection, to the detriment
of the efficient use of resources and at a high
cost to taxpayers. It also lent itself to fraud and
abuse. To address these problems, Cameroon
embarked on a trade liberalization programme
in 1990, including a coordinated plan with the
other CA CEU members to reform their common
external tariff which led to the adoption of new
tarif and fiscal régimes in January 1994.
15. A new General Trade Schedule was
introduced in June 1994, laying down
Cameroon's tradepolicy after the revamping of
the tariff and fiscal régimes and the CFA franc
devaluation. The new Schedule seeks to
consolidate Cameroon's import liberalization
measures andpro vide a legal framework to fight
illicit trade practices and unfair competition,
and to continue the process of streamlining
export procedures and reducing export duties
to take advantage of the CFA franc devaluation
and structural reforms to relaunch economic
activity by recapturing export markets and
diversifying exports.
(ii) Type and incidence of trade policy
instruments
16. The new CACEU's tariff has 5,531 lines
at the 8 digit HS level, applied at rates of either
5, 10, 20 or 30 per cent. Cameroon accords
at least m.f.n. treatment to imports from all
countries. Tariff escalation is substantial in
areas such as textiles and apparel and basic
metal products; in certain sectors, the pattern
of escalation is unusual in that the average rate
on semi-manufactured goods is significantly
lower than on raw materials. Trade Policy Review Mechanism
17. Outside the framework of the CACEU
tariff, Cameroon levies a customs duty of
15 per cent on imports of petrol (super) and
diesel. Other special customs and fiscal
régimes, notably those accorded to public and
para-public enterprises, have been eliminated
or should be phased out in the near future.
Tariff exemptions have been dramatically
reduced and no quantitative restrictions are in
force; most imports are now subject only to a
declaration for statistical purposes with only
certain products subject to technical
endorsements. Cameroon maintains an
import pre-shipment verification programme;
exports from some 90 countries are subject to
such programme, including all those from
Cameroon's major trading partners.
18. Exports are largely uncontrolled.
Export authorizations have been removed with
only selected products subject to quality and
health controls. There are no subsidies to, or
quotas on exports although palm oil exports
have been recently banned and Cameroon's
participation in international commodity
agreements does carry certain restrictions.
Cameroon also imposes potentially distorting
export charges on its main agricultural export
products: a (tax-deductible) charge of
15 per cent on exports of cocoa, coffee, banana,
cotton and medicinal plants and an exit duty of
25 per cent on wood logs. Moreover, as a
general rule, only up to 30 per cent of logs may
be exported without prior local transformation;
from 1999, exports of logs are to be prohibited.
Free zone legislation has been introduced to
promote export-oriented investment.
19. The previously extensive system of price
controls and guaranteed producer prices have
been largely dismantled. The high level of state
involvement in the economy has been
progressively reduced, although state monopolies
still include public services, petroleum,
telecommunications and international shipping.
Progress continues towards establishing a
comprehensive legal framework in the area of
standards and other technical requirements,
which currently have the potential to be used
as protectionist tools. Under current
government procurement legislation, there is a
degree of preference for local materials; no
preferential treatment is given to bidders on the
basis of country of origin, although credit
availability appears to limit bids to certain
regions. New government procurement
legislation is scheduled to be introduced in
1994.
(iii) Temporary measures
20. Cameroon has no anti-dumping or
countervailing procedures along GATT lines,
although references to dumping practices are
made in legislation concerning anti-competitive
commercial practices. Cameroon has no
domestic procedures for safeguard action nor
have there been requests for import relief under
such procedures. Complaints by domestic
producers for relief against offending imports
appear to be handled informally and through
indirect measures. For example, Cameroon's
final list of m.f.n. exemptions in the Uruguay
Round services agreement indicates that
measures concerning sharing agreements on
shipping routes would be strengthened if trading
partners continued to practice dumping. The
authorities are of the view that Cameroon's
recent trade and price liberalization have made
it necessary to consider new measures to fight
anti-competitive practices, including dumping,
to protect consumers. As a result, measures
have been introduced or are being studied
affecting, inter alia, advertising, accounting
practices, quality control and after-sales service.
(iv) Sectoral policy patterns
21. Prior to 1985, Cameroon saw
import-substitution as an important element of
the development process. Following the start
of oil production in 1977, growing revenue from
petroleum exports helped finance both
agricultural support programmes and ambitious
industrialization plans in an attempt to achieve
self-sufficiency in bothfood and a range of basic
manufactures. Domestic production was largely
insulated from foreign competition by high tariffs
C/RM/S/56
Page xii Republic of Cameroon
and various restrictive barriers to trade.
Industries were fostered whose survival
depended on continuous government assistance
and protection. Public and parastatal
enterprises came to dominate a broad range of
primary and manufacturing industries.
22. Since 1986, lower export revenue and
government income have prompted a series of
sectoral reforms. In the petroleum industry,
a range of amendments to the hydrocarbons
code were introduced in 1990 to encourage
exploration and the industry is likely to continue
playing a key rôle in Cameroon's economy for
years to come. In the agricultural sector,
drastic changes affecting producer prices,
marketing systems and administrative bodies
produced a shock from which the sector is yet
to recoverfully. Nevertheless, the reorientation
of agriculture toward the market and the
potentially competitiveness-boosting effects of
the CFA franc devaluation should have placed
Cameroon in a good position to exploit the
opportunities that may result from the Uruguay
Round. Cameroon's manufacturing sector
remains the largest and most diverse in the
region, with particular strengths in downstream,
agro-based industries. However, the sector was
severely affected by the contraction of the
domestic economy and the loss of
competitiveness in foreign markets. The
resulting process of de-industrialization has not
been halted by limited programmes of
privatisation, rehabilitation or liquidation of
public and para-public enterprises.
23. Cameroon's new industrial policies have
the potential to lead again to a distorted
production structure. This is particularly true
of the current to thrust to increase value added on
an industry by industry basis and of the sector
specific investment régimes now emerging.
These strategies may succeed in boosting the
targeted activities, but at the expense of lower
value added in other industries. More
importantly, the piecemeal pursuit of investment
and of higher value added risks creating
ventures with uncertain long-term prospects
while preventing the economy from attaining,
given its wealth of natural resources, its high
real income potential.
(4) Trade Policies and Trading Partners
24. Cameroon 's comprehensive
macroeconomic and structural reform
programme have gone a long way towards
reversing the country's previous inward-looking,
anti-export policies. This reform programme,
although coordinated with the other CACEU
members, was undertaken autonomously.
Nonetheless, measures by other countries in the
multilateral context of the Uruguay Round
shouldbe a strong complement to these reforms.
As Cameroon's reforms take root, exporting
firms should find import barriers falling and
export opportunities expanding. However,
attracting substantial new investment,
particularly foreign, is a precondition to
exploiting fully those new opportunities.
C/RM/S/56
Page xiii C/RM/S/56
Page 1
Trade Policy Review Mechanism
I. THE ECONOMIC ENVIRONMENT
I. The Republic of Cameroon covers 475,440 square kilometres in central Africa and is wedged
between the Atlantic Ocean and Nigeria to the west, Chad and the Central African Republic to the
east, and the Congo, Gabon and Equatorial Guinea to the south. Cameroon has great physical diversity,
including equatorial forests in the south through grasslands to Sahelian semi-desert in the north. The
climate is hot and humid in the south and west; the north is dry, with more extreme temperatures.
2. The official languages are French and English; many local languages are also spoken. French
is spoken by about 80 per cent of the population; English is commonly used in the west. Differences
in, among others, education and legal procedures still exist between anglophone and francophone areas.
3. Population growth averages 2.9 per cent per annum. Over the last two decades, school enrolment
and life expectancy have risen and infant mortality has fallen sharply (Table 1.1). Some 45 per cent
of the population is less than 15 years old; about 40 per cent is urban, this proportion having doubled
since 1970. The two most important urban centres are the capital Yaoundé and the port of Douala,
which is Cameroon's most important maritime centre, handling 95 per cent of sea-borne traffic and
about 90 per cent of foreign trade.
Table I.l
Basic indicators, 1970-92
1970 1980 1990 1992
Population 6,506 8,701 11,524 12,242
Urban population (per cent) 20.3 31.4 40.3 42.1
Work force ('000) 3.199² 3,618 4,365 4,568
Birth rate
Total fertility rate 5.8 6.5 5.8b 5.8b
Infant mortality rate (per '000 live births) 125.8 106.2 88.3b 61.0b
Life expectancy 48.9 53.0 57.0b ...
school enrolment ratios
Primary school 89 98 101
Secondary 7 18 28 ...
Share of GDP (per cent)
Agriculture 37 28 23 22
Manufacturing 8 8 22 22
Other industry (including petroleum) 8 18 8 8
Services 47 46 47 48
Not available.
a 1972 value.
b Estimates.
Source: World Bank, World Tables. various issues. Republic of Cameroon C/RM/S/56
Page 2
4. The labour force represents one-third of Cameroon's population of 12.2 million, with
about 80 per cent employed in agriculture. During the 1980s, the number of regular salaried
workers rose rapidly but significant job losses have occurred in recent years, with real GDP
down by some 40 per cent since 1986.¹ There were 180,000 employees on the public sector
payroll in the early 1990s, one ofthe largest in Africa relative to population size; according
to the authorities, public sector employment has since been considerably reduced.
Unemployment is thus a serious problem.²
(1) Major Features of Cameroon's Economy
5. The agricultural sector is often referred to as Cameroon's economic engine. However,
industrial expansion, led through the mid-1980s by the petroleum sector, contributed to a decline
in agriculture's share of GDP from 37 per cent in 1970, to 28 per cent in 1980 and 22 per cent
in 1992. The principal cash crops are banana, cocoa, coffee, cotton and wood. The main
subsistence crops are roots and tubers, plantains, millet and sorghum; livestock also makes
a significant contribution to the food supply.
6. Manufacturing value added is almost as important as that of agriculture, growing in
the period 1980 to 1992 from a share of 8 to just under 22 per cent of GDP. Manufacturing
is responsible for a sizeable share of total formal employment.³ The sector is based on the
processing of both indigenous primary products, including petroleum-refining and agro-industrial
activities, and of imported raw materials, particularly alumina.
7. The share of industry, other than manufacturing, in GDP has undergone significant
variation due to fluctuations in the value of petroleum production, which makes a crucial
contribution to GDP and constitutes a principal source of government revenue and foreign
currency. Services, including the public administration, is Cameroon's largest sector, accounting
for almost 50 per cent of GDP in 1992 (Chart I.1).
8. Cameroon has a rapidly growing informal sector. Although its size is not known with
precision. it probably is of considerable economic importance (Box I.1).
¹Formal sector employment was about 500,000 in 1984, the latest year for which an estimate is available.
²No meaningful unemployment estimates are available because the number of regular salaried workers is
small relative to the working population.
³Employment in manufacturing was estimated to be some 5 per cent of the work force in 1985. C/RM/S/56 Trade Policy Review Mechanism
Page 3
Chart I.1
GDP by sector, 1975-92
Billion CFAF
2,000
Other industry (including oil)
Manufacturing
Agriculture
Services etc.
1,500
1,000
.
1975 1980 1985
Source: GATT estimates based on World Bank, World Tables, various issues.
1990 1992
Box I.1: The informal sector
The informal sector plays a crucial rôle in Cameroon's economy, employing an estimated 75 per cent of
the urban work force. More than 6 out of each 10 households derive at least part of their income from
the informal sector. Half of all informal production units appear to be engaged in commercial activities.
A study commissioned by the Government found that in 1993 there were close to 90,000 informal
production units in Yaoundé alone, with an output equivalent to that of the formal industrial sector;
those units engaged about 125,000 persons, most of whom were self-employed.
The informal sector is one of the most rapidly growing elements of Cameroon's economy and is
considered to be a social safety valve due to its ability to absorb workers shed by the shrinking private
and public sectors. Although those substitute jobs entailed lower remuneration, they eased the effects of
the recession. The authorities have supported efforts to organize and incorporate the informal sector into
the national fiscal system. This goal has become increasingly important as the growth of the sector has
tended to undermine public finances through increased tax avoidance and to destabilize industrial and
commercial activities through increased smuggling. The latter has been encouraged by the long
Cameroon-Nigerian border and, until recently, by high and complex import and internal taxes.
The recent devaluation of the CFA franc, the overhaul of the import and fiscal régimes, and efforts to tax
informal activities may check the growth of the informal sector in the short term. However, a more
permanent solution may have to await an improved economic environment that makes it socially viable to
impose Cameroon's full regulatory framework on informal activities. That such a step will be eventually
necessary is foreshadowed in the study commissioned by the Cameroonian Government, which concluded
that the informal sector does not represent a permanent solution to the difficulties faced by the rest of the
economy. Republic of Cameroon
(2)
C/RM/S/56
Page 4
Economic Developments to the mid-1980s Crisis
9. Cameroon experienced steady economic growth during the two decades following independence
in 1960. Growth was particularly rapid in the late 1970s and first half of the 1980s, propelled by the
start of petroleum exports at the end of 1977 (Chart I.2 and Table I.2).
Chart I.2
Real GDP per capita in Cameroon, 1970-94
1400
1200
1000
800
600
400
USS per person
1970
1974 1978 1982 1986 1990 1994
a. Value for 1994 is estimated.
Source: World Bank, World Tables, various issues; and GATT Secretariat estimates.
10. Growth in petroleum production underpinned an investment boom, particularly in construction.
By 1980, petroleum had become Cameroon's principal export commodity, with total exports more
than double their 1976 level. Export revenue increased significantly again between 1980 and 1985,
mainly due to increased petroleum sales. The increased royalties provided the Government with sufficient
budgetary revenue to shield the agricultural sector from falling commodity prices, largely by price
support schemes. The increased revenue also supported a policy of import substitution, especially
through major government investments in manufacturing. In addition, large investments were made
in basic infrastructure such as education, health, and transport and communications, all of which
contributed to rapid job creation. In general, government involvement in, and control over, economic
development increased, guided by the principle of "communitary liberalism", which encouraged both
free enterprise and social solidarity, safeguarded by a strong State.4
4 Gankou (1991) and Riddell (1990). C/RM/S/56 Trade Policy Review Mechanism
Page 5
Table 1.2
Economic performance of Cameroon, 1975-1994a
1975-85 1986 1987 1988 1989 1990 1991 1992 1993b 1994b
(Average growth rate, per cent per annum)
Real GDP
Private consumption
Government
consumption
Gross fixed capital
formation
Imports of goods and
n. factor services
Exports of goods and
n. factor services
GDP deflator
Consumer price index
Export prices. f.o.b.
Import prices, c.i.f.
Terms of trade
Real effective exchange
rate
Nominal effective
exchange rate
Money Supply (M2)c
Discount rate (per cent
per annum)
Government budget¹
Revenue
Expenditure
Current account
balanceg
Merchandise trade
balance
Servicesg
Unrequited transfers
Memorandum:
International reserves,
except gold (months of
imports of goods and
services)
8.1
7.0
5.1
7.2
10.2
36.2
5.0 -7.2 -6.0
4.4 -12.7 -6.1
-6.4 -12.7 -6.1
2.1 -6.4 -8.4
9.1 ... ...
10.4 ... ...
11.9 -0.2 20.6 -12.7 -6.1 7.6 ... ... ...
6.5 2.1 -10.5 -9.0 -6.1 7.6 -17.0 -3.5 -3.6
6.0 11.4 -25.8 -12.7 -6.1 7.9 -6.3 -8.3 -4.5
11.9
10.6
6.4
4.6
1.7
-0.7c
-1.0
18.2
-21.8
10.9
-29.4
10.6
-6.0
6.0
1.9
0.3
1.6
11.8
7.8
8.6
-4.3
9.8
-12.9
-3.3
-2.3
-5.2
0.7
-5.7
-7.9
-6.2
-1.4
-1.3
6.4
-7.4
-2.3
1.5
2.0
-8.6
-1.0
-7.5
1.8
-1.4c 8.1 4.9 3.4 4.9 16.9 3.6 9.2 6.9 -46.3d
30.9
7.7
0.1
20.7
20.6
-4.9
-12.5
8
0.6
22.2
21.6
-4.7
-24.1 4.3
8 9.5
-3.7
20.1
23.8
-7.2
(Per cent
1.0
17.1
16.1
-3.5
4.5
10
of GDP,
3.2
17.2
20.4
6.6
0.7
1.8
annual average)
-5.8 -5.2
15.4 17.0
21.4 22.2
-2.7 -2.8
-1.8
12
-7.2
17.1
24.3
-9.1
2.4 3.7 2.1 5.0 6.4 4.9 3.4 2.1 2.0
-7.5
0.2
-7.6
-0.8
-8.5
-0.8
-7.6
-0.9
-7.4
... -0._
-6.4
0.2
-10.5 -11.4
-0.7 -0.8
0.7 0.3 0.3 0.9 0.4 0.1 0.2 0.1
Not available.
a Fiscal years, ending 30 June, unless otherwise indicated. Figures may change as a result of the ongoing reorganization of Cameroon's
statistical system.
b Preliminary estimates.
c Average for 1979-85.
d Data for January 1994.
e End of period.
f The budget numbers are on a commitments basis, and thus arrears are not accounted for; data for fiscal 1992 onwards are for
general budget units and the Autonomous Amortization Fund.
g Includes interest due on the external debt.
Source Data provided by the Cameroonian authorities; International Monetary Fund, International Financial atistics, various issues;
World Bank, World Tables, various issues. and GATT Secretariat estimates.
-4.9
-5.9
-0.8
2.0
-16.1
-4.1
-4.3
-3.9
-0.8
-0.8
15.3
12.8
-0.3
-16.6
-8.4
16.2
24.6
-10.3
-8.0
14.6
22.6 Republic of Cameroon C/RM/S/56
Page 6
11. Oil profits were in part channelled to the agricultural and manufacturing sectors through
off-budget accounts (comptes hors budget), often held abroad and then drawn upon to meet expenditures
in support of activities considered particularly important. That support appears to have helped Cameroon
escape the "Dutch disease" effect, i.e., the crowding out of non-oil economic activities by an expanding
petroleum sector.5 However, much of the petroleum revenue thus channelled appears to have been
dissipated through apiecemeal approach to sectoral support, which was largely outside normal budgetary
disciplines. In terms of the official budgetary accounts, the authorities followed a conservative fiscal
policy, to the extent that the rapid increase in government expenditure required by the growing public
and para-public sectors did not exceed the rise in government evenue. As such, there was limited
use of foreign debt.
(3) Economic Developments since 1986
12. Cameroon's economic growth came to a sudden halt in 1986 when world petroleum prices
fell by half. This not only cut Cameroon's export revenue by some 25 per cent but also sharply reduced
government oil revenue and the Government's capacity to support economic growth. Since 1987, real
GDP has fallen in each but one year, reducing GDP per capita in 1994 to its lowest in over 25 years
(Chart 1.2)
13. The fall in the Government's financial capacity in 1986 exposed several problems, including
a number of ill-advised investment projects, an inefficient public enterprise sector, high and wasteful
public expenditure, an uncompetitive domestic production base with a high wage cost structure, and
an incentive structure distorted by an inward looking customs and tax régime. To address these
problems, the Government initiated a market-oriented economic reform programme based on a range
of internal corrective measures.
14. Cameroon's stabilization strategy in the period 1986 to early 1994 relied on fiscal policy as
the main adjustment instrument: the use of monetary or foreign exchange polices was complicated
by Cameroon's currency, the CFA franc, being common to the Central African Customs and Customs
Union (CACEU), with its exchange rate pegged to the French franc (Annex I).7 Cameroon's adjustment
to the terms of trade fall in 1986 was made particularly difficult by the untimely appreciation of the
CFA franc in 1986, driven by a strengthening French franc. As the terms of trade and the real effective
exchange rate (REER) moved in opposite directions (Chart I.3), Cameroon's non-oil exports suffered
a loss of competitiveness.
5The actual effect is difficult to quantify as details concerning the off-budget accounts have not been made
public.
6Coussy (1991).
7The CFA franc circulating in Cameroon is issued by the Bank of the Central African States (BEAC) and
is also legal tender in the other CACEU members, viz, the Central African Republic, Chad, the Congo, Equatorial
Guinea and Gabon. Trade Policy Review Mechanism
C/RM/S/56
Page 7
Chart I.3
Terms of trade and the REER, 1978-93
140
120
100
80
60
1985 = 100
-- --
Terms of trade
REER
1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
Source: GATT Secretariat estimates based on data supplied by the Cameroon authorities.
15. Cameroon's fiscal policy since 1986 has turned on keeping the overall budget deficit under
control in the face of lower oil revenue. Efforts to reduce public expenditure started slowly, as petroleum
export revenues tended to improve after 1986 as a result of strengthening world prices and expanding
export volumes (Chapter V(3)(i)). Publicly-financed price support schemes for agricultural commodities
were thus not significantly reduced until 1989 (Chapter V(2)); steps to reduce government involvement
in industry through the privatisation of para-statals were not taken until 1990, and were of limited scope
(Box IV.4). In fact, the initial brunt of public expenditures cuts fell on investment: according to official
data, between 1986 and 1990 total investment fell by some 10 per cent, public investment falling by
3 per cent and private investment by 12 per cent.
16. Between 1990 and 1993, falling petroleum production volumes and weaker world prices reduced
Cameroon's petroleum export revenues by 40 per cent. As a result, the authorities intensified their
programme of internal corrective measures: agricultural support schemes were eliminated or severely
curtailed, public service salaries were cut (in nominal terms) and staff reductions took place. Although
Cameroon's austerity budgets reduced government expenditure in absolute terms, persistent revenue
shortfalls kept the budget deficit in the order of 7 to 8 per cent of GDP in fiscal years 1992 to 1994.8
These deficits contributed to a significant shortfall in national savings relative to domestic investment,
with resultant external current account deficits of about 10 per cent of GDP.
8Cameroon's fiscal year runs from 1 July to 30 June. Republic of Cameroon C/RM/S/56
Page 8
17. Budgetary problems have led to a substantial increase in the internal public debt, estimated
to be about one-third of GDP.9 The debt built up largely because the Government defaulted on payments
to private contractors, who in turn defaulted on payments to banks. Doubtful credits to the public
and private sectors have accumulated and seriously undermined the banking system, which remains
fragile despite years of restructuring efforts. There has also been a marked increase in the external
debt since 1986, with the ratio of external debt to GDP doubling between 1986 and 1992, when it
reached some 60 per cent. There have beendebt servicing difficulties, although some relief has occurred
on long term interest payments since 1989 under Paris and London Club rescheduling.
18. Since 1986, the decline in exports and income have led a fall in imports. The persistent decline
in imports is a negative development given Cameroon's high reliance on imported capital goods and
semi-manufactures, thus further undermining the growth potential. The rate of inflation turned negative,
partly reflecting a shrinking economy. Real GDP contracted by slightly more than 8 per cent in fiscal
1992, was down by almost 5 per cent in fiscal 1993 and is estimated to have fallen by about 6 per cent
in fiscal 1994.
19. In January 1994, Cameroon implemented tariff and fiscal reforms, including a simplification
of the tariff structure and a lowering of rates, the elimination of a series of internal taxes and the
introduction of a new turnover tax. The reforms had been previously planned with Cameroon's fellow
members of CACEU, who apply a common external tariff (Chapter IV(3)(i)).
20. As the internally-based strategy ran its course, Camercon in concert with the other CACEU
countries sought to restore competitiveness by devaluing the CFA franc by 50 per cent against the French
franc in January 1994, moving the rate from CFAF 50 to CFAF 100 per French franc.10 The objective
was to relaunch economic growth through increased exports, a strategy supported by the revamped
customs and tax régimes. Cameroon's post-devaluation economic strategy hinges to a large degree
on containing inflation so as to preserve the gains in competitiveness derived from the devaluation;
Cameroon is therefore committed to a programme of fiscal stringency supported by monetary discipline.
In this context, the recent liberalization of Cameroon's trade régime should help over time to keep
the rate of inflation in line with international levels, thus helping to maintain competitiveness.
21. Nevertheless, in the first months of 1994 inflation rose substantially, to an annualized rate of
30 per cent; this was largely caused by the one-shot effects of the devaluation on prices and by the
introduction of the new fiscal and tariff régimes, although rates were adjusted downward following
the devaluation (Chapter IV(2)(i)). In addition, fiscal revenues in mid-1994 were running behind
projections, with tax administration still relatively weak, and lead the authorities to introduce temporary
export charges on some products (Chapter IV(3)(ii)). Also, although exports of some products, including
aluminium and wood, picked-up after the devaluation, investment demand appears to have remained
low and economic growth slow to recover. In consequence, the authorities have lowered the discount
rate to stimulate demand. Recently, too, inflation appeared to be moderating.
9Marchés Tropicaux, 11 December 1992.
10This devaluation was concurrent with, and of the same magnitude as, the devaluation of the CFA franc
issued by the Central Bank of West African States that issues the common currency of Benin, Burkina Faso,
Côte d'Ivoire, Mali, Niger, Senegal and Togo. C/RM/S/56 Trade Policy Review Mechanism
Page 9
(4) Trade Performance
22. The emergence of petroleum as a major export underlay a steady rise in Cameroon's merchandise
trade surplus during the first half of the 1980s (Tables AI.1 to AI.4).11However, the sharp fall in
world petroleum prices in 1986 caused export earnings to drop substantially in that year. Export revenue
has not significantly recovered, with the authorities attributing this performance to the general fall in
commodity prices, the depreciation of the U.S. dollar (the currency in which most of Cameroon's export
products are priced) against the CFA franc, and the introduction of restrictive measures by some countries
(for example, affecting the sale of Cameroon bananas in Tunisia). However, it would seem that since
the January 1994 devaluation there has been some improvement in experts, particularly of aluminium
and wood.
23. Imports appear from official statistics to have been in the order of US$1.5 billion a year in
the period 1980 to 1986 (Tables AI.2 and AI.4). A clear downward trend in imports then emerged
as the recession set in, with fluctuations about this trend arising from variations in the value of imports
of agricultural inputs, machinery, tools and spare parts. More recently the CFA franc devaluation
has contributed to a sharp fall in import volumes during the first part of 1994; this volume fall is
reflected by the CFA franc value of imports having risen 38 per cent during the first half of 1994 relative
to the same period in 1993, well below the increase in the CFA franc unit price of imports.12
(i) Regional pattern of trade
24. The European Union (EU) is Cameroon's main export market, having absorbed some 83 per cent
of Cameroon's exports during 1992 according to UNSTAT, Comtrade data (Chart I.4). The authorities
explained this high share on the basis of the preferential trade agreements between Cameroon and the
EU: under the Lomé Convention, Cameroon is granted (non-reciprocal) duty-free access to the EU
market for industrial products and for agricultural commodities not covered by the Common Agricultural
Policy, with these latter products receiving more favourable than m.f.n. treatment (Chapter II(5)).13
France is Cameroon's largest single export market, accounting for around 30 per cent of total exports
in 1992, much of it in the torm of wood and agricultural products. In 1992, Spain, Italy, the Netherlands
and, to a lesser extent, Germany were also important markets for Cameroon's exports, taking mostly
petroleum, but also food and wood.
11The data in the tables is only indicative of general patterns because of special problems associated with
Cameroon's trade statistics including gaps in the United Nations data used by the Secretariat. uncertainty
surrounding the value of petroleum exports in years prior to 1986 and substantial amounts of goods brought
informally into Cameroon.
12Based on the customs value of Import Certificates as reported by the Société Générale de Surveillance.
13The European Economic Community signed the Lomé Convention; the term "European Union" is used
in this Chapter to maintain the usage in the rest of this report. Republic of Cameroon C/RM/S/56
Page 10
Chart 1.4
Direction of Cameroon's trade by destination and source,
1980-93
a. Merchandise exports by principal destination
1990
Others
Africa
America
Asia
Other EC
Spain
Netherlands
Italy
Germany
France
1993
b. Merchandise imports by major source
Others
Africa
America
Asia
Other EC
Spain
Netherlands
Italy
Germany
France
1993
Note: Figures for 1993 are preliminary.
Source: UNSTAT, Contrade database. Compiled on the basis of trade reported by Cameroon's trading partners.
100%
80%
60%
40%
20%
0%
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1980
1985
.
100%
80%
60%
40%
20%
0%
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1980
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1985
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1990
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. C/RM/S/56 Trade Policy Review Mechanism
Page 11
25. Outside the EU, the United States is the largest market for Cameroon's exports, mostly in the
form of petro!eum. The importance of the United States as a destination for Cameroon's exports has
fallen markedly, fromjust over 40 per cent in 1982 to 5 per cent in 1992, mainly as a result of decreased
exports of petroleum, coffee and cocoa. UNSTAT, Comtrade data show that the share of Africa in
Cameroon's exports was 4.6 per cent in 1992, Morocco alone accounting for 4 per cent. Other data
provided by the authorities for the fiscal year 1991/92 show the share of Africa in Cameroon's total
exports at some 10 per cent, with the largest markets being, in decreasing order of importance, Congo,
Gabon, Morocco, Nigeria and the Central Africa Republic.
26. France is Cameroon's leading supplier, accounting for 45 per cent of imports by Cameroon
in 1992, mostly in the form of chemicals and other semi-manufactures, food, automotive products and
a broad range of other machinery items. France's share appears to have remained stable since 1980
while the overall EU share shows a slight upward trend, having reached some 75 per cent in recent
years. Besides France, the main EU suppliers to Cameroon include Germany and Belgium (each selling
mostly food and automotive products), Italy (semi-manufactures and machinery), the Netherlands (food
and semi-manufactures) and Spain (a wide assortment of manufactures).
27. Cameroon's largest non-European supplier is the United States, with a variable share of some
5 per cent in recent years, mostly in the form of manufactured goods and food. Japan is the other
significant non-EU supplier to Cameroon, mostly of automotive products. According to UNSTAT,
Comtrade data, Africa accounted for less than 2 per cent of Cameroon's imports in 1992, although
the actual share may be higher due to smuggling. Guinea, which supplies alumina to Cameroon's
aluminium smelter, was responsible for much of Cameroon's recorded imports from Africa. Most
observers agree that Nigeria and, to a lesser degree, the CACEU members are also important suppliers
to the Cameroonian market, but many of those imports go unrecorded.
28. Data from the Société Générale de Surveillance for the first half of 1994 show a regional pattern
of imports comparable to that noted above.14 During that period, France accounted for about one-third
of Cameroon's total imports followed by Equatorial Guinea, Belgium, the United States, Japan, Pakistan
and other EU countries.
(ii) Commodity pattern of trade
29. Fuels, almost exclusively in the form of crude petroleum, have accounted for about half of
Cameroon's total exports since 1990, down from two-thirds in 1985 (Chart I.5). Cameroon's
non-petroleum exports are spread over a relatively broad range of agricultural products. According
to Cameroon's official data for the fiscal year 1991/92, the main agricultural export products were,
in order of decreasing importance, wood logs, cocoa, coffee, cotton, bananas and natural rubber.
According to UNSTAT, Comtrade data, cocoa and coffee exports have declined in both volume and
value in recent years, while those of bananas and wood have grown since 1991. According to the
authorities, wood exports have experienced particularly strong growth since the CFA franc devaluation.
Cameroon's processed export is aluminium although many assorted manufactured products (beverages,
cigarettes, matches, cement) are exported to other CACEU countries.
14Based on the CFA franc f.o.b. value of the Verification Certificates issued during the period. Republic of cameroon
Chart 1.5
Composition of Cameroon's trade, 1980-93
a. Merchandise exports by product category
.
.
1980
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.
1985
1990
1993
Other
Manufactures
Fuels
Other agric.
Wood and cork
Cocoa
Coffee
b. Merchandise imports by product category
100%
80%
60%
40%
20%
0%
1980
.
1985
1990
.
1993
Note: Figures for 1993 are preliminary.
Source: UNSTAT, Comtrade database. Compiled on the basis of trade reported by Cameroon's trading partners.
C/RM/S/56
Page 12
100%
80%
60%
40%
21%
0%
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. C/RM/S/56 Trade Policy Review Mechanism
Page 13
30. Manufactures have accounted for some three-fourths of Cameroon's imports over the last years,
a proportion that has been steady since independence. The major import categories are chemicals
(including medicines), alumina and automotive products, but manufactured imports range over a broad
assortment of products. According to UNSTAT, Comtrade data, food imports account for slightly
under 20 per cent of the total. Official Cameroon data for 1991/92 show that the main food imports
were, in decreasing order of importance, frozen fish, flour and rice. Other important imports were
malt and tobacco. Data supplied by Cameroon's state oil company show sizable imports of crude
petroleum, amounting to some US$90 million a year between 1991 and 1993. Imports of equipment
goods are reported to have fallen with investment between 1986 and 1994, volumes apparently decreasing
by a factor of three15; however this trend was not observable in the series used in this report.
31. Data from the Société Générale de Surveillance for the first six months of 1993 and 1994 show
a different commodity pattern of imports.16 For those two periods, the three largest product groups
were: agricultural products, some 30 per cent of total imports, chemical products, about 25 per cent,
and industrial goods, some 20 per cent. This pattern appears to reflect a fail in the value of non-food
imports, rather than a reduction in Cameroon's food self-sufficiency.
(5) Outlook
32. The authorities describe their main current economic objective as completing the transition
from a state to a market economy, reducing the cost of the public service, promoting import substitution
through a policy of industrialization, expanding exports, and improving the trade balance and the balance
of payments. The authorities consider that the current outlook for the economy is encouraging. They
highlight Cameroon's geographical location, which opens central Africa to Cameroon products, and
the signs of improvements in the economy, for example, the recent strong export performance of the
banana and wood industries. This view is based on Cameroon's present adjustment programme which
forecasts an early resumption of economic growth, moderating inflation and a narrowing of both the
budget and current account deficits (Box I.2).
Box 1.2: Economic outlook, 1994/1997a
1994 1995 1996 1997
(per cent change)
Real economic growth -5.9 3.8 4.7 5.1
Average consumer price index 12.8 18.8 6.4 2.1
(per cent of GDP)
External current account deficit -8.8 -5.4 -4. 1 -3.6
Overall budget deficith -8.0 -5.2 -2.4 -1.3
a Fiscal years.
b Commitment basis.
Source: International Monetary Fund, IMF Survey, 4 April 1994, p.105.
15Marchés Tropicaux, 15 April 1994
16Based on the CFA franc customs value of products inspected during the period. Republic of Cameroon C/RM/S/56
Page 14
Annex I
Foreign Exchange Régime
(1) Foreign exchange arrangements17
33. The currency of Cameroon is the CFA franc, which is issued by the Bank of Central African
States (BEAC) , and is also legal tender in Cameroon's fellow CACEU members, namely the Central
African Republic, Chad, the Congo. Equatorial Guinea, and Gabon. The CFA franc is pegged to the
French franc: the parity was CFAF 50 per French franc from 1960 until January 1994 when it was
altered to CFAF 100 per French franc.
34. A commission of 0.25 per cent is levied on transfers to countries that are not members of Central
African Customs and Economic Union (CACEU), except for certain transfers such as payments for
importers covered by a duly issued license domiciled with a bank (Chapter IV(2)(i)). There are no
taxes or subsidies on purchases or sales of foreign exchange. All payments to France and its overseas
departments and territories, Monaco and aIl countries whose bank of issue is linked with the French
Treasury by an Operations Account18 may be made freely. However, all financial transfers in excess
of CFAF 500,000 must be declared to the authorities for statistical purposes. Forward exchange cover
requires the prior authorization of the exchange control authorities.
35. The authorities note that there are no special regulations concerning foreign exchange earned
by exporters. However, transactions valued at CFAF 500,000 or more must be domiciled with an
authorized bank. Proceeds from exports to all countries must be repatriated within 30 days of the
payment date stipulated in the sales contract, and proceeds received in currencies other than those of
France or an Operations Account country must be surrendered within a month of collection.
36. Importers are allocated foreign currency or authorized to make transfers by obtaining an import
declaration (or, until recently, an import licence), completing the authorization forms, and attaching
supporting documents. All import transactions valued at more than CFAF 500,000 must be domiciled
with an authorized bank if the goods are not considered in transit. Transactions involving goods in
transit must be domiciled with a foreign bank. Advance import payments are permitted if underlying
contracts stipulate them. Payments for invisibles related to trade follow the same régime as basic trade
transactions, as do transfers of income accruing to nonresidents in the form of profits, dividends and
royalties.
37. Cameroon and other member countries of the BEAC suspended in 1993 the repurchase of
CFA franc bank notes of the BEAC in circulation outside the territories of the Operations Account
countries of the franc zone. Non-residents are allowed to maintain bank accounts in convertible francs
but may not maintain accounts in CFA francs abroad or accounts in foreign currency in Cameroon.
Residents are not permitted to maintain accounts abroad or accounts in foreign currency in Cameroon.
17This section based on International Monetary Fund, Exchange Arrangements and Exchange Restrictions,
Annual Report 1994.
18Benin, Burkina Faso, Central A frican Republic, Chad, Comoros, Congo, Côte d'Ivoire, Equatorial Guinea,
Gabon, Mali, Niger, Senegal and Togo. C/RM/S/56 Trade Policy Review Mechanism
Page 15
38. Capital transactions between Cameroon and France, Monaco, and the Operations Account
countries are free of exchange control. Outward capital transfers to all other countries require exchange
control approval and are restricted. Inward capital transfers are free of restrictions, except for foreign
borrowing and direct investments which are subject to registration and authorization. With some
exceptions, direct investments abroad and foreign direct investments in Cameroon require the prior
approval of the Ministry of Finance (Chapter III(2)). In general, lending or borrowing abroad as well
as the issuing, advertising, or offering for sale of foreign securities in Cameroon require prior
authorization from. and reporting to the Minister of Finance.
(2) The Bank of Central African States
39. The BEAC is a multinational public institution charged with ensuring exchange rate stability
for all members of the CACEU and the harmonization of monetary policies between them. The BEAC
has also been given the exclusive right to issue currency in the member countries, and it serves as
a lender of last resort, monitors the supply of credit and plays a regulatory role in monetary affairs.
France provides a foreign exchange guarantee in Special Drawing Rights (SDRs) and extends overdraft
facilities to an operations account held by the BEAC with the French Treasury. In return, the BEAC
is committed to deposit at least 65 per cent of its foreign exchange holdings in this account, with
sub-accounts maintained for each CACEU State.
40. The BEAC board consists of 13 directors, four from Cameroon, two from Gabon, one each
from the other member countries, and three from France. Most decisions of the BEAC Board are
taken on the basis of a simple majority, which gives Cameroon considerably more weight thai; its regional
partners. However, decisions regarding such issues as the rediscount rates and refinancing ceiling
require a three-fourths majority.
41. In practice, the functioning of the BEAC has been highly decentralized, with the National
Monetary Committees comprised of the director(s) for the various countries, their respective alternates,
along with three government-appointed persons, defining and implementing in large measure the monetary
and credit policies in each country. Each country has also been able to maintain fairly diverse interest
rate structures and barriers to the inter-country flow of funds. Limited supervision of banking activities
in member countries appears to have contributed to the severe liquidity crisis faced by the financial
sectors of most of the zone's member countries, including Cameroon. C/RM/S/56 Trade Policy Review Mechanism
Page 16
Il. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES
(1) General Framework
1. The Republic of Cameroon became independent on January 1960. The southern part of British
Cameroon voted in 1961 for federation with the Republic of Cameroon, which took place on
1 October 1961.
2. Cameroon's legal structure is grounded in its 1972 Constitution, as amended. Under the
Constitution. Cameroon is a bilingual, unitary state with the President at its head. The legislative is
a unicameral body, the National Assembly. Local administration is based on 10 provinces. each with
a Governor appointed by the President. Local administrations are not empowered to change measures
adopted by the central government and do not have competence on foreign trace issues.
3. A new draft Constitution is under discussion by a technical committee selected by the President.
The committee is expected to make its recommendations soon. Among the matters under consideration
by the committee are the establishment of an upper chamber in the National Assembly, a strengthening
of the powers of the judiciary, and the creation of both a Revenue Court and a State Council. The
President is to decide whether the new constitution will be adopted by referendum or by vote of the
National Assembly.
(2) Structure of Trade Policy Formulation
(i) Executive and legislative branches of Government
4. The President of Cameroon is Head of State with executive responsibility for the conduct of
the Republic's affairs, the negotiation and ratification of treaties, and the promulgation and enforcement
of laws. The President, elected by universal suffrage for a renewable five year period, defines the
policy of Cameroon and may delegate some presidential powers to the Prime Minister, as Head of
Government, or other members of the Government or the state administration. The President appoints
the Prime Minister and, on the recommendation of the latter, the ministers and secretaries of state;
he may terminate their appointments. The President is also responsible for appointments to the Supreme
Court and the legal service.
5. The President presides the Council of Ministers, which also comprises the Prime Minister,
two Vice-Prime Ministers, an advisor to the Presidency and heads of ministries. Among the latter,
those involved in the formulation and administration of trade or trade-related policies include the Ministry
of Industrial and Commercial Development, of Finance, of Foreign Affairs, of Agriculture, and of
Town Planing and Housing. Draft laws on trade, as on other matters, are typically submitted to the
legislative by the President, after preparation by the relevant branch of Government and discussion
in Cabinet, which is headed by the Prime Minister. However, members of legislative may also submit
bills.
6. Cameroon's legislature, the National Assembly, is a unicameral body of 180 elected members
serving five-year terms. At the instance of the President, the Assembly may extend or shorten its term.
Areas reserved to the Assembly, and in which the President requires its approval before negotiating
and ratifying treaties, include fundamental rights, property, currency, budget, and the imposition,
assessment and rate of all dues and taxes. The Assembly meets for two sessions of 30 days each year,
approving the budget in one such session. It passes bills by a simple majority of those present unless,
at the express request of the President, a bill is read a second time, in which case a bill requires a Republic of Cameroon C/RM/S/56
Page 17
majority of the Assembly membership for passage into law. The President promulgates laws within
15 days after receiving them from the Assembly: however, the President may request, as noted, a
second reading, refer the matter to the Supreme Court, whose judgement is final, or in exceptional
cases, and if it is in an area reserved to the Assembly, submit the issue to a referendum. The Assembly
may empower the President to legislate by order for a limited period and for given purposes. Matters
not reserved to the legislature come under thejurisdiction of the authority empowered to issue statutory
rules and orders.
(ii) Advisory bodies
7. In the formulation of trade policy, the Government receives advice from the Economic and
Social Council and from the Chamber of Commerce, Industry and Mines. The Economic and Social
Council was established under the Constitution to advise the Government on social and economic
problems including those related to foreign trade. The Council comprises 85 members appointed by
the President, who has sole responsibility for determining the work programme of the Council. Thought
is being given to granting the Council greater autonomy by allowing it to undertake studies on its own
initiative.
8. The Chamber of Commerce, Industry and Mines, which falls under the authority of the Ministry
of Industrial and Commercial Development, is consulted by the Government on questions concerning
commercial regulations, domestic taxes and import licenses (now abolished). It also participates in
meetings, economic inquiries and statistical studies and manages stores located within ports and airports.
The Chamber undertakes export promotion activities and is supported by a share of certain fiscal charges
collected by the Government; however, such funding has been low and irregular. The Chamber also
has other income sources, such as charges for training services, but in general a lack of funding has
substantially reduced many of its activities. The authorities note that the Government is examining
ways to strengthen the Chamber and to provide it with its own resources.
9. According to the authorities, the Government does not receive, or systematically seek, advice
from Universities or research institutions in the formulation of trade policies. The private sector is
consulted on trade policy issues in an ad hoc manner, as for example, during the preparatory work
leading to the adoption of new customs and tariff régimes in 1994 (Chapter IV(2)(ii)), or in the drafting
of the 1994 General Trade Schedule.
(iii) Review bodies
10. Cameroon does not have an independent statutory body to review trade and industrial policies.
Neither courts nor special tribunals have a rôle in reviewing trade laws after such laws have been
adopted. Only the President may submit to the Supreme Court laws that he considers contrary to the
Constitution. C/RM/S/56 Trade Policy Review Mechanism
Page 18
(3) Trade Policy Objectives
(i) General trade policy objectives
11. According to the authorities, Cameroon's trade policy can be described as liberal and as having
three fundamental objectives:
- the regular supply of the local market through a judicious blend of local production
and imports;
- the development of Cameroon's export potential with respect to both traditional and
industrial products; and
- the encouragement of local production by promoting the consumption of local products.
12. Cameroon's trade policy is based on the guidelines laid down in the General Trade Schedule
prepared by the Ministry of Industrial and Commercial Development. The 1989 Schedule aimed at
a measured trade liberalization to increase Cameroon's competitiveness. It was replaced in June 1994
by a more ambitious Schedule which, recognising that "the stabilization, structural and reform
programmes implemented in the last five years have not brought about economic growth", seeks:
- for imports. to consolidate the liberalization measures already taken and to "provide the country
with a transparent legal framework which will guarantee the terms of fighting against illicit
trade practices and unfair competition, and at the same time ensure that the legitimate interest
of firms and consumers are protected"; and
- for exports, to continue the process of streamlining procedures and reducing export duties so
as to take advantage of the CFA franc devaluation and structural reforms, and "enable a gradual
revival of economic activity especially through recapturing of the international export market
for cash crops and the diversification of exports".
(ii) Cameroon in the Uruguay Round
13. The authorities note that Cameroon's main objectives concerning tariff and non-tariff measures
during the Uruguay Round were to:
- enhance the market access for its exports;
- improve the security of access; and
- strengthen the trading rules observed by GATT contracting parties.
14. The authorities were satisfied that Cameroon's objectives for the Round had been attained to
the extent that market access was improved and quantitative restrictions eliminated. Concerns remain
in relation to subsidized agricultural exports and the erosion of the preference margins enjoyed by
Cameroon under the Lomé Convention. The authorities feel that to fully benefit from the Round,
Cameroon would need to make significant gains in productivity and to attract large amounts of new
investment. The authorities also think that no major regulatory changes are required to implement
the Round's results, particularly given Cameroon's recent liberalization of its trade régime.
15. The authorities suggest that Cameroon's objectives during the Round did not differ fundamentally
from those of its fellow members of the Central Africa Customs and Economic Union (Central African
Republic, Chad, Congo, Gabon and, non-GATT member, Equatorial Guinea). Particularly close
co-ordination occurred among the members regarding agriculture and natural resource-based products, Republic of Cameroon C/RM/S/56
Page 19
and, in the area of tropical products, on efforts to lower tariff escalation in importing countries and
improve access opportunities for exporters. A co-ordinated approach was also used in members offers
concerning tariff measures and bindings.
16. Cameroon had no tariff bindings in the pre-Uruguay Round GATT. In the context of the Round,
Cameroon undertook the following bindings¹:
- for agricultural products, all tariffs bound at a ceiling rate of 80 per cent, and the
maximum level for "other duties and charges" set at 230 per cent; and
- for industrial products, the tariff on raw jute, bound at a ceiling rate of 50 per cent,
and that on single and multiple yarn of jute both at ceiling rates of 60 per cent²; the
maximum level for "other duties and charges" was set at 80 per cent for raw jute and
150 per cent for the other two products.
The authorities intend to review Cameroon's bindings, with a view to increasing their number and
lowering the ceiling rates.
17. Cameroon's non-tariff concessions in the Uruguay Round were³:
- abolishing all the quantitative restrictions in selected products4, including certain iron,
steel, plastic or paper items, and some textiles; and
- eliminating taxes on the marketing of coffee and cocoa utilized to support the Office
national de commercialisation des produits de base, which was recently closed.
18. Concerning subsidies to agricultural products, Cameroon's Uruguay Round Schedule noted
that the use of subsidies was already limited to only those measures taken as part of ongoing structural
adjustment programmes efforts; Cameroon requested that such measures be exempt from all reduction
commitments. It was also noted that Cameroon grants no export subsidies to agricultural products.
19. In the Uruguay Round negotiations on services, Cameroon's final list of Article Il (most favoured
nation) exemptions concerned maritime transport.5 The list covered measures based on bilateral and
multilateral agreements granting cabotage rights to trading partners on a reciprocal basis or establishing
provisions for national companies to share shipping routes. The need to exempt those measures related
to the promotion of, inter alia, regional integration and international trade, the national fleet, and infant
industries. Cameroon's list specified that the measures would be strengthened if trading partners
continued the practice of dumping and to block access to cargoes.
¹Uruguay Round of Multilateral Trade Negotiations, Schedule CIII - Cameroon, Part 1.
²The 6-digit HS numbers involved are: 5303.10, 5307.10 and 5307.20.
³Uruguay Round of Multilateral Trade Negotiations, op. cit., p20211.
4HS numbers 1902.19, 1902.30 Ex, 2309.90, 2715.00 Ex, 3923.30 Ex, 3923.30 Ex, 4013.90 Ex, 4816.10
Ex, 4818.10, 4820.10 Ex, 5306.10, 5306.20, 5601.29, 7214.20 Ex, 7214.20 Ex, 7323.94 Ex, 7323.94 Ex, 7615.10
Ex, and 8418.21 Ex.
5GATT document GATS/EL/15 of 15 April 1994. C/RM/S/56 Trade Policy Review Mechanism
Page 20
(4) Trade Laws and Regulations
20. Cameroon does not have a foreign trade law. Most trade policy instruments have been introduced
by Presidential decrees or ordinances, Orders of the minister responsible for the matter in question
or Circulars by the administration. The ranking of Cameroon's legal instruments is:
- the Constitution;
- international treaties and accords ratified by Cameroon;
- laws;
- ordinances;
- decrees;
- orders; and
- circulars.
21. International treaties and laws are subject to approval by the National Assembly. Among the
texts issued by the executive, only those Ordinances by the President issued under Article 21 of the
Constitution have to be approved by the legislature. Once the Assembly authorizes the President to
ratify an agreement or convention, its promulgation by the President has the force of law.
22. International accords ratified by Cameroon, including GATT, take precedence over internal
laws, but not over the Constitution. As of mid-November 1994, the National Assembly had received
for its approval the required instrument for Cameroon's ratification of the World Trade Organization
(WTO).
23. Trade related international accords are in effect from the time they are ratified; no implementing
texts are required. Responsibility for negotiating, concluding and signing trade-related treaties and
agreements is vested in the Ministry of Industrial and Commercial Development or the Ministry of
Foreign Affairs.
24. GATT rules and obligations can be invoked in relevant matters before Cameroon's courts;
but, according to the authorities, such should not be necessary as GATT obligations are taken fully
into account in the elaboration of trade-related domestic legislation. No case has yet arisen in Cameroon
that would have permitted a test of the possibility for individuals to sue the Government for violation
of the GATT.
25. The General Trade Schedule, laying out Cameroon's trade policy guidelines, has the status
of a circular, as does the Industrialization Master Plan containing Cameroon's industrialization policy.
Other major trade-related regulations include:
(a) For imports
- Order No. 00145 of 22 November 1988, establishing the modalities for the application
of a tax for the inspection and control of imports;
- Service Note No. 33/MINFI/DD3 of 29 August 1989, concerning the tax on veterinary
sanitary inspection;
- Ordinance No. 94/001 of 24 January 1994, implementing the Turnover Tax, Excise
Tax, the Common Exterior Tariff and the Generalized Preferential Tariff; Republic of Cameroon C/RM/S/56
Page 21
Ordinance No. 94/004 of 16 February 1994, concerning fiscal imposts on petroleum
products; and
Ordinance No. 94/007 of 16 February 1994, concerning the suspension of customs
duties and taxes on certain imports.
(b) For exports
Ordinance No. 90/001 of 29 January 1990, creating the Free Zone régime; and
Law No. 94/002 of 1 July 1994, concerning the public finances for the year 1994-95
which introduced export charges on certain products.
(c) For production and commerce
Law No. 88/007 of 15 June 1988, relating to standardization and quality control;
Ordinance No. 72/18 of 17 October 1972, establishing the general price régime;
Order No. 100/MINDIC/DPPM of 13 December 1988, fixing the elements of resale
prices and profit margins applicable to imports, local products and services;
- Law No. 90/031 of 10 August 1990, governing commercial activities6;
- Order No. 008/MINDIC/DPPM of 7 March 1991, defining anti-competitive commercial
practices;
- Circular No. 35/MINDIC/CAB of 8 June 1994, on the organisation of the bodies
charged with price control and consumer protection; and
- Order No. 65/MINDIC/DPPC of 8 June 1994, listing the products and services subject
to prior price authorization.
(d) For internal taxes
Ordinance No. 94/002 of 24 January 1994, fixing the modalities for the application
of the Turnover Tax; and
Finance Law, Law No. 94/002 of 1 July 1994.
(e) For investment
Ordinance No. 90/007 of 8 November 1990, the Investment Code; and
Ordinance No. 94/003 of 24 January 1994, modifying the Investment Code.
(f) For economic restructuring
Decree No. 86/656 of 3 June 1986, concerning the establishment of a rehabilitation
unit for enterprises in the public and para-public sector;
Instruction No. 7/CAB/PR of 4 November 1988, relating to the rehabilitation of
enterprises in the public and para-public sector;
Order No. 659/CAB/PR of 24 November 1989, concerning the establishment of a
Secrétariat de gestion du project d'appui à la gestion économique;
6The modalities for the application of this law were established by Decree No. 93/720/PM of 22 November
1993. C/RM/S/56 Trade Policy Review Mechanism
Page 22
- Decree No. 90/981 of 4 June 1990, concerning the establishment of a technical
committee for the preparation and monitoring of the economic and financial adjustment
programmes;
- Ordinance No. 90/004 of 22 June 1990, relating to the privatisation of public and para-
public enterprises;
- Decree No. 90/1423 of 3 October 1990, concerning the privatisation of certain public
and para-public enterprises; and
- Decree No. 94/023/PM of February 1994, concerning the creation of a technical
committee to monitor the economic programmes.
(g) For foreign relations/treaties
- Treaty establishing the Central African Customs and Economic Union (CACEU).
(5) Trade Agreements and Arrangements
(i) Multilateral agreements
26. Originally, the GATT was applied to Cameroon as a French overseas territory. After
independence in 1960, Cameroon applied the GATT de facto until Cameroon was deemed a contracting
party under the provisions of Article XXVI:5 (c), and became so on 3 May 1963, with rights and
obligations applying retroactively to 1 January 1960.
27. Cameroon has observer status in the Tokyo Round Agreements on Government Procurement,
Customs Valuation and Civil Aircraft, but has not acceded to any of the Tokyo Round Agreements
and Arrangements. The authorities indicated that there were no particular obstacles to Cameroon's
signing any of the Agreements and that a technical group was being set up to study them.
28. Cameroon is a member of the United Nations, the International Monetary Fund, the United
Nations Conference for Trade and Development (UNCTAD), the World Bank and the other major
international economic and development organizations. Cameroon is also party to several commodity
agreements established within UNCTAD, includingthecocoa, coffee, natural rubberand tropical timber
agreements and the Common Fund for Commodities.
(ii) Regional agreements
29. Cameroon is a member of the Central Africa Customs and Economic Union (CACEU) and
of the Economic Community of Central African States. According to the authorities CACEU's main
objective is to establish a market that benefits from the protection of a common external tariff and
promotes regional integration through a preferential duty for the sub-region. With a common external
tariff and a common central bank and currency, CACEU has set-up the basis for relatively advanced
institutional structures for regional integration (Box II.I). But actual performance of the CACEU has
fallen short of initial expectations. Progress in terms of labour mobility appears to have been poor
and restrictions still apply to the inter-bank transfers within the zone. Official intra-Union trade flows
in CACEU also remain low (Chapter I(4)). Republic of Cameroon C/RM/S/56
Page 23
Box II.1: Central Africa Customs and Economic Union
Chad, the Central African Republic, Congo and Gabon created the Equatorial Customs Union in 1959. In
1961 Cameroon and the Union signed a convention covering exchange controls and providing for a
commission to set up a framework of regional co-operation. In December 1964, the Treaty of
Brazzaville was signed creating the Central Africa Customs and Economic Union (CACEU), which
became effective on 1 January 1966. Equatorial Guinea joined in 1984 (and is the only Union member
not also a GATT contracting party).
The main objective of the Treaty of Brazzaville was an eventual economic union between member states
and the creation of a regionally balanced indsutrial structure. To this end, the Treaty provided for a
common external tariff and no intra-union trade barriers. A Single Tax system was established to
specifically promote the creation of a regional manufacturing base and trade in manufactures. The Treaty
provided for the co-ordination of national industrial development plans and a common investment code,
co-ordination of transport sector issues, the progressive harmonization of fiscal systems, and the free
intra-CACEU movement of labour, services and capital.
Several administrative structures were created. Authority over common activities was vested in the
Council of Heads of State. A Management Committee, comprised of the ministers of finance and
economic development, was charged with making decisions on the rates of the common tariff, on fiscal
harmonization, and co-ordination of industrial plans. AIl decisions made by the Management Committee
and the Council of Heads of State required unanimity. The CACEU Secretariat was charged with
managing daily operations, but was given little decision-making authority. In parallel, a common central
bank was created to ensure exchange rate stability (Chapter I, Annex).
The Treaty of Brazzaville was broadly applied in accordance with its original spirit until the late 1960s,
when serious problems concerning the distribution of Union customs revenues arose. Those problems led
in the early 1970s to the abandonment in practice of the system of common customs duty collections and
of free movement of goods within the Union. At that time, CACEU members also embarked on country-
specific programmes of import substitution. To accommodate these changes, the Treaty was modified in
1974, retaining the original instruments of Union policy but making the provisions for intra-Union trade
more restrictive. Thus, free intra-Union trade was limited to raw materials and unprocessed agricultural
produce; and the Single Tax became an instrument for preferential treatment on intra-Union trade to
only certain products manufactured by a select number of firms. As member countries continued to
pursue their particular import-substitution strategies, they each turned to the use of ad hoc instruments
outside the Treaty. Over the years, the CACEU's fiscal and customs régimes became highly distorted.
Against a background of a persistent economic crisis affecting the region, CACEU introduced in 1994
new customs and fiscal régimes (Chapter IV(2)(ii)) to effect broad structural economic changes. Those`
new régimes will require a further modification of the Treaty of Brazzaville, in particular the articles
pertaining to the Single Tax, intra-CACEU trade, the Common External Tariff and provisions for fiscal
harmonization. These modifications have yet to be ratified by the members.
The Cameroon authorities are generally satisfied with the new customs and tax régimes, except for the
treatment of manufactured goods, particularly packaging products, where reductions in protection implied
large concession by Cameroon given its relatively important manufacturing sector. C/RM/S/56 Trade Policy Review Mechanism
Page 24
30. According to the Cameroon authorities, CACEU has fallen short of its original objectives mainly
because the region's economies are not complementary. CACEU member countries are markedly
different, Cameroon having the largest population and GDP as well as the most diversified and
industrialized economy in the Union. In the past, such differences have led the members to take
unilateral measures to address domestic issues. The Cameroon authorities note that membership in
the CACEU does not restrain their ability to undertake unilateral trade reforms.
31. The main objective of the Economic Community of Central African States is to gradually establish
an African common market and promote co-operation and balanced development. The Cameroon
authorities believe that these objectives have not been attained because of financial, institutional and
organisational problems, particularly those related to the non-application by member states of Community
resolutions; they note that the devaluation of the CFA franc is likely to aggravate these difficulties
by widening the economic differences among member countries.
32. Cameroon is a member of the Organization of African Unity and hasjoined the recent initiative
to create the Economic and Monetary Community of Central Africa. The latter aims at promoting
development within the framework of economic union and monetary unions, which would be expected
to assume responsibilities now within CACEU's control; a timetable for implementation of such unions
has not been defined.
(iii) Bilateral agreements
33. Cameroon has a bilateral agreement with Senegal (Chapter IV(2)(ii)(e)); within the Global
System of Trade Preferences, Cameroon also has an agreement with Romania (Chapter II(5)(iv)).
(iv) Other agreements or arrangements
34. Cameroon is a signatory to the Lomé Convention between the European Economic Community
and 69 developing countries in sub-Saharan Africa, the Caribbean and the Pacific (ACP). Under the
Lomé Convention, Cameroon is granted (non-reciprocal) duty-free access to the European Union (EU)
market for industrial products and for agricultural commodities not covered by the EU's Common
Agricultural Policy. For other agricultural products, the ACP countries receive more favourable
treatment than that accorded by the EU to m.f.n. suppliers. The Lomé Convention also provides for
technical co-operation and EU financial assistance. National and regional development is supported
through grants and loans. The Cameroonian authorities indicated that the EU had provided Cameroon
with almost CFAF 3 billion under the Stabex programme in 1981 and that EU intervention in 1993
had enabled Cameroon to meet a shortfall in export revenue.
35. The EU provides ACP (and Mediterranean) countries with more generous benefits than to other
suppliers in the Generalized System of Preferences (GSP) scheme. This applies with regard to product
coverage, access opportunities (including rules of origin and regional cumulation), special policy régimes
(such as sugar and bananas) and legal status (contractual obligations). Cameroon is granted trade
preferences in accordance with existing GSP schemes by all other developed countries.
36. Cameroon is a contracting party to the Global System of Trade Preferences (GSTP) among
developing countries. Under this system, Cameroon's has an agreement with Romania not to raise
customs duties on certain products; Cameroon's imports of fertilizer from Romania bear a tariff of
7.5 per cent and Romania's cocoa imports from Cameroon are under a tariff of 2 per cent. The value
oftrade involved appears to be minimal. The authorities indicated that they were setting up in mid-1994
a unit to manage GSP and GSTP matters that would allow them to estimate the value of trade affected
or the effects on production or exports of GSP and GSTP schemes. Republic of Cameroon C/RM/S/56
Page 25
IIl. INVESTMENT POLICIES AND TRADE
(1) Foreign investment Policy
1. Private investment in Cameroon is regulated by the Investment Code of 1990, as amended
in 1994. The Code establishes a relatively attractive environment for both foreign and domestic investors
and avoids many of the distortions associated with Cameroon's previous investment régimes.
Administrative procedures have been streamlined and investors are given guarantees against sovereign
risk and a number of fiscal incentives. Special encouragement is given to export activities, job creation
and adding value to natural resources. Although these incentives might still distort resource allocation
in the long run, a question now is whether the recent modifications to the 1990 Investment Code have
remedied Cameroon's past weakness in identifying the incentives to attract private investment, especially
foreign.
2. Cameroon has traditionally maintained a policy of promoting investment, but not often with
encouraging results. Following independence in 1960, domestic capital flowed into intermediate
activities, particularly trade and commerce. Private investment in primary and secondary activities
was low and the Government tried in the 1960s to filI the gap by attracting foreign capital with a range
of incentives that often included "tailor-made" protection. The results were generally disappointing.¹
Hence, from the mid-1970s the Government adopted a policy of direct state involvement in association
with foreign firms. This usually took the form of a government enterprise in partnership with a minority
foreign partner, whose contribution frequently consisted of know-how or technology. This approach
was complemented by the introduction in 1984 of an investment code that granted incentives to new
firms that were thought able to bolster economic growth; special tariff and other tax concessions were
given to enterprises falling within certain priority régimes. However, new investment did not materialize
at the desired pace and the proliferation of concessions undermined the fiscal balance. A new code
was promulgated in 1990, more in line with Cameroon's greater orientation to a market-determined
allocation of resources.
(2) Legal Framework and Procedures
3. The Investment Code of 1990 has as objectives the promotion of investment creation of activities
conducive to adding value to natural resources, and the generation of employment by2:
- guaranteeing the same treatment to foreign and local investors;
- providing a "bill of rights", which includes the right to property ownership, free transfer
of capital and income, full compensation in the event of expropriation, free movement
of investors and their employees into and from Cameroon, and protection from non-
commercial risks in compliance with Cameroon's membership of the Multilateral
Investment Guarantee Agency;
- creating the Cellule de Gestion`du Code des Investissements, a "one-stop shop"
empowered to handle most investment-related administrative procedures; and
- exonerating exporters from export duties and reducing taxable income proportionally
to the value of their exports.
²Ordinance No. 90/007 of 8 November 1990.
¹Schamp (1991). C/RM/S/56 Trade Policy Review Mechanism
Page 26
4. More substantial benefits are accorded to firms in certain categories, including those for small
and medium scale enterprises, strategic firms and companies in free zones. Incentives under these
régimes are divided into two types:
- start-up benefits, which include exoneration from a variety of fees and taxes and a
50 per cent reduction ill company tax; and
- benefits accorded during the operational phase, which include a 50 per cent reduction
in certain operating taxes, deduction allowances on taxable income, a five-year tax
carry-forward on deficits arising from depreciation, and an exoneration from the
minimum charge payable as company tax.
5. The length of the start-up and operational phases is a function of the category of special régime
under which the investment operates. Under the basic régime, the start-up phase is three years and
the operational phase is five years. This régime requires that:
- the investment creates at least one job for a Carneroon national for every
CFAF 10 million invested;
- the value of exports amounts to at least 25 per cent of turnover before taxes, or sales
outside the franc zone in convertible foreign currency be at least 10 per cent of turnover
before taxes; and
- Cameroon products make up at least 25 per cent of the value of inputs.³
6. Under the small and medium-scale enterprise régime the start-up phase is three years and the
operational phase is seven years, during which taxable income is reduced in proportion to the percentage
of the firm's wage bill paid to Cameroonians. This régime requires that:
- the investment creates at least one job for a Cameroonian for every CFAF 5 million
invested;
- the investment be no more than CFAF 1 billion; and
- at least 35 per cent of the investment be owned by Cameroonians.
7. Under the strategic enterprise régime the start-up phase is five years and the operational phase
is twelve years, during which taxable income is reduced proportionally to salaries paid to Cameroonians.
This régime requires:
- determination by the Government that the sector is strategic according to the
Industrialization Master Plan;
- that the investment creates at least one job for a Cameroonian for every
CFAF 20 million invested;
- the value of exports to amount to at least 50 per cent of turnover before taxes or that
sales outside the franc zone in convertible foreign currency be at least 25 per cent of
turnover before taxes; and
- Cameroon inputs make up at least 50 per cent of the value of inputs.
8. The reinvestment régime grants benefits similar to thoseunder the basic régime to firms already
operating provided that, inter alia, additional investment leads to at least a 20 per cent increase in
productivity, output, or the permanent employment of Cameroonians.
³Cameroon inputs are defined as incorporating at least 25 per cent domestic value added. Republic of Cameroon C/RM/S/56
Page 27
9. The free zone régime grants benefits to export oriented investment within the free zone system
(Chapter IV(3)(xiv)).
10. According to the authorities, the Investment Code has helped prevent fraudulent practices, reduced
administrative burdens and inconveniences, and sped up procedures by establishing a maximum period
for processing investment applications.
Il. The Investment Code was amended in 1994 to take account of customs and fiscal reform.4
The amendments are further streamlining administrative procedures and eliminating provisions
inconsistent with, or made redundant by, the new customs and fiscal régimes. This includes removing
the concessional flat 15 per cent duty on imports of capital goods and the exoneration from certain
internal taxes. Certain of the provisions in the 1990 Code that were aimed at promoting local materials
were also eliminated, including exemptions from taxes on domestic raw materials, intermediate goods
and electricity. Special fiscal régimes granted under the 1990 Investment Code will be maintained
until 31 December 1995.
12. Foreign investment approval is still required but the approval process has been considerably
simplified by the Cellule de Gestion du Codedes Investissements (CGCI). The CGCI is asingle window
clearance government agency with an autonomous budget. It is managed by a Management Committee
with a majority of members from the private sector and representatives from most government agencies
involved in the administration of the Investment Code. The CGCI is responsible for all documentary
requirement on behalf of investing firms, in particular:
- authorizations to carry out industrial activities;
- import and warehousing documents;
- visas for expatriate personnel,
- waivers provided by law; and
- access to public services required to carry out the investment programme.
13. The CGCI has final authority over the approval or refusaI of investment projects falling under
the Investment Code, using as criteria for approval proposals those applying to the various investment
régimes. Upon receipt of an application, the CGCI has 30 days to consider the application and notify
the applicant of its decision. It is still early to say how well the CGCI functions since it became
operational only in 1992. The sectoral scope of the CGCI activities is not completely defined either,
but it does not seem to include mining and forestry.
14. According to the authorities, no restrictions apply to foreign portfolio investment in Cameroon
nor to the repatriation of dividends by foreign companies (see, however, Annex I(1)).
15. Cameroon and the United States ratified a Bilateral Investment Treaty in 1989, which guarantees
all foreign companies the same treatment as local firms, protects against expropriation and provides
for binding third party arbitration.
4Ordinance No. 94/003 of 24 January 1994. Trade Policy Revlew Mechanism
C/RM/S/56
Page 28
(3)
Trends and Patterns of Foreign Investment
16. Net foreign direct investment (FDI) into Cameroon increased rapidly from the commencement
of oil production in 1977 until early 1986 (Chart III. 1). New capital formation during that period tended
to occur in the building industry, with Yaoundé as the preferred location, particularly since the
Government was the most important customer for construction services. Capital formation in
manufacturing firms took place predominately in Douala.5 According to official statistics, during the
1976-1980 period public investment increased by about 30 per cent, private investment by 19 per cent
and total investment by 21 per cent; the rates of growth for the 1981-85 period were, respectively,
37.25 and 28 per cent. Although the investment boom led to the establishment of numerous foreign
enterprises in Cameroon, new FDI did not match the strong expansion in public investment. Moreover,
foreign investors appear to have conditioned their participation on the availability of Cameroon credit,
thus keeping FDI relatively low by comparison to the eventual stock of foreign owned capital.
Chart III.1
Net foreign direct investment, 1976-91a
350
300
250
200
150
100
50
-50
-100
USS million
.
.
.
.
a Data for 1989 are not available.
Source: International Monetary Fund, International Financial Statistics, various issues.
17. Investment generally collapsed in 1986 and has not recovered; net FDI was negative in 1990
and 1991. Official Cameroon statistics show that during the 1986-1990 period, public investment fell
by about 3 per cent, private investment by 12 per cent and total investment by 10 per cent. More
recent data on investment are not available.
5Schamp (1991). Republic of Cameroon C/RM/S/56
Page 29
18. No disaggregated statistics on investment by sector have been collected recently. Data from
the 1986 industrial census indicate that the number of foreign enterprises established in Cameroon was
201, including 103 from France, 7 each from Germany and Italy, 6 from England, 4 from Belgium,
3 each from the Netherlands and the United States, and 62 others. There appears to have been an
increase in foreign company closures following the onset of the recession in 19866; however, there
is little reason to expect that the countrywise ownership of foreign enterprises has changed significantly
since 1986.
19. Estimates in Schamp ( 1991) indicate that of a total investment in Cameroon's industry of some
CFAF 170 billion in 1982, just under 40 per cent was foreign and slightly less than 25 per cent was
French. Equivalent estimates in Riddell (1990) show a total investment of some CFAF 180 billion
in 1984-85, with a distribution between domestic and foreign investment, and between French and
other foreign investment similar to that in Schamp (Chart III.2).
Chart III.2
Capital and ownership structure of manufacturing enterprises,
1984/85
(CFAF billion)
100
.National, public
. National, private
80 .Foreign, French
.Foreign, other
60
40
20
Agro- Wood/ Metals Chemicals Textiles Other
food paper Plastics Leather industries
.Source: Riddell (1990).
20. The high proportion of FDI from France, some 68 per cent of total foreign investment in
Cameroon's industrial sector, is probably explained by the historical links between the two countries
and by the (exchange rate) peg of the CFA franc to the French franc. A particularly high proportion
of French investment in the metals sub-group is explained by France's Péchiney participation in
Cameroon's aluminium smelter. A large non-French foreign participation in the wood/paper sub-sector
was due to substantial Austrian participation in a large pulp and paper plant; the plant has since been
6Ekolo Ebe (1992). C/RM/S/56 Trade Policy Review Mechanism
Page 30
closed and purchased from the liquidator in 1992 by Indonesian investors. A high share of non-French
FDI participation in textiles and leather sectors arises from the preponderance in the early 1980's of
Lebanese and Syrian capital in those areas.
21. Data on FDI in the primary sectors are not available, but such investment is likely to have
been important. For example, French private investors control three banana plantation companies
accounting for some 70 per cent of Cameroon's banana production and exports. The forest sector
is also dominated by foreign enterprises, accounting for more than 90 per cent of log exports
(Chapter V(2)(iv)).
22. Although FDI appears to play no mayor rôle in non-fuel mining, it has had a central rôle in
the development of petroleum extraction. Key participants include Société Nationale Elf-Aquitaine
and Kelt of France, and the Pecten Oil Company of the United States (Chapter V(3)(i)). These
investments are probably substantial, as suggested by a stock of U.S. capital in Cameroon estimated
at US$1 billion, mostly in the oil sector and services.7
23. According to the authorities, FDI has been negatively affected by economic uncertainties.
The authorities note that problems mentioned by foreign investors include an ailing banking system
and the high level of the Government's domestic debt; concerns also appears to exits about changes
to special arrangement granted under previous investment régimes and now being phased out as a result
of the 1994 customs and fiscal reform, both because those changes are likely to lead to higher production
costs and because they might seem to undermine the value of government commitments.
7U.S. Dept of Commerce, Marketing in Cameroon, Overseas Business Reports, September 1990. Republic of Cameroon C/RM/S/56
Page 31
IV. TRADE POLICIES AND PRACTICES BY MEASURE
(1) Overview
1. Before 1994, Cameroon's trade régime was complicated and inward looking. The régime
provided industries with "tailor-made" protection, which not only led to an inefficient use of resources
but also lent itself to fraud and abuse. To address these problems, Cameroon embarked on a trade
liberalization programme in 1990, including a co-ordinated plan with the other CACEU members to
reform their common external tariff. Thus, by early 1994 a substantially liberalized and simplified
trade régime was in operation.
2. Cameroon's import tariffs are all ad valorem and applied at rates of either 5, 10, 20 or
30 per cent, for an unweighted average of 18.8 per cent. Tariff exemptions have been dramatically
reduced and no quantitative restrictions are in force; most imports are now subject only to a declaration
for statistical purposes with only certain products subject to technical endorsements. All special customs
and fiscal régimes accorded to public and para-public enterprises have been eliminated and others special
régimes should be phased out in the near future.
3. Exports are by and large uncontrolled. Export authorizations have been removed with only
selected products subject to quality and health controls. With the notable exception of charges on wood,
bananas, coffee and cocoa, most export charges appear to be minor. There are no subsidies to, or
quotas on exports although palm oil exports were recently banned and Cameroon's participation in
international commodity agreements does carry certain restrictions. Free zone legislation has been
introduced to promote export-oriented investment.
4. A new Turnover Tax has been introduced incorporating many elements of a value added tax.
The previous extensive system of price controls and guaranteed producer prices have been largely
dismantled. The high level of state involvement in the economy has been progressively reduced although
state monopolies still include public services, petroleum, telecommunications and international shipping.
Progress continues towards establishing a comprehensive legal framework for anti-dumping, competition
policy and government procurement. Improvements are also being attempted in the area of standards
and other technical requirements, which currently have the potential to be used as protectionist tools.
5. The major outstanding question now relates to the predictability and stability of Cameroon's
trade régime. There appear to be few institutional constraints to prevent protectionist measures creeping
back into the system, even in the context of Cameroon's participation in the CACEU. Indeed, the
recent liberalization experience demonstrated the relative procedural ease with which the trade régime
underwent a complete metamorphosis. Within the framework of the Uruguay Round, Cameroon set
its tariff bindings at higher levels than the applied rates with the stated objective of leaving itself room
for manoeuvre on taxation matters. Moreover, limited commitments were made in other areas. As
a result, Cameroon has forgone making use of GATT commitments to reassure national and foreign
investors of the permanence of its tariff reform programme: the authorities are adamant, however,
that the Government has no intention of back-tracking on trade reform.
(2) Measures Directly Affecting Imports
6. The CACEU Treaty provides for a Common External Tariff (CET) as the main instrument
for regional trade policy. Before 1994, the tariff not only led to an inefficient use of resources
throughout the Carneroon economy but also fell short of its objectives of raising fiscal revenue and
promoting integration within the region (Box IV.1). That the tariff yielded relatively low revenue C/RM/S/56 Trade Policy Review Mechanism
Page 32
was mainly the result of the widespread use of exemptions, made necessary to offset, in part, the strong
anti-export bias inherent in the real effective appreciation of the CFA franc after 1985 (Chapter I(3)).
This appreciation tacitly taxed both export production and import-substitutes¹, and led the authorities
to implement a number of ad hoc offsetting measures. The end result was an extremely complex import
régime which tended to provide industries with "tailor-made" protection, to the detriment of the efficient
use of resources and at a high cost to taxpayers.² It also lent itself to fraud and abuse (Box IV.2).
Properly implemented, the reforms started in 1990, culminating with the introduction of new customs
and fiscal régimes in 1994, can go a long way to address many of the administrative and enforcement
problems associated with the previous régime.
2I Karmiloff (1987).
Box IV.1: The Pre-1994 Common External Tariff
The Common External Tariff (CET) in use before January 1994 was formally the sum of three different
import taxes: a customs duty, an entry duty, and a turnover tax on imports. In addition there was a
country-specific complementary tax, initially intended as a temporary measure but which in fact acted as
a permanent element of the CET. For intra-regional trade, the members of CACEU were to apply a
uniform, single tax in order to promote regional integration; however, in practice members applied
different rates to the same products.
Among the CET components, the entry duty was the most important in terms of fiscal revenue, typically
accounting for some 40 per cent of total collected import taxes. The turnover tax on imports accounted
for slightly more than 20 per cent of total import taxes, and the complementary tax for just under
20 per cent. The customs duty amounted to slightly less than 20 per cent of all import taxes, with this
share tending to fall over time. Indeed, the revenue raised by all four charges decreased over time,
producing a clear downward trend in overall import tax collections. In turn, this was a major factor in
the deterioration of Cameroon's fiscal position.
In practice the CET was not a common tariff, for it was not applied uniformly member countries,
and its objectives were often undermined by individual countries to meet specmc fiscal and other
objectives. In principle only the customs duty was supposed to have a protective function but in practice
both the entry duty and the complementary tax served a similar function. Even the turnover tax on
imports, intended to serve as a purely revenue-generating tax and applied at a flat rate on all imports,
played a protection function as there was no harmonization between it and the turnover tax levied on
domestic production.
As a result of the 1994 tariff and fiscal reform the turnover tax on imports has been separated from the
CET, and the CET remaining components have been merged into a single import tariff. This has
resulted in a higher consolidated import duty for certain products, especially essential consumer goods
most of which had a zero import duty.
¹C.R. Milner (1990). Republic of Cameroon C/RM/S/56
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Box IV.2: Administrative and enforcement problems before 1994
Cameroon's trade system was made complex by a multiplicity of tariff rates and exemptions, making the
Customs Code difficult to enforce. In 1990-91, some 64 per cent of all officially recorded imports were
wholly or partly exempt from import duties: 14 per cent under the investment code, 22 per cent under
the single tax or the internal production tax régimes, and 28 per cent under other miscellaneous
exemptions (provided under government procurement contracts, military imports, imports by petroleum
companies and other exemptions for specific users). Moreover, the extent of tax exemptions had been
increasing over time. Local firms sought such exemptions in an attempt to offset the high nominal
import duty rates of over 58 per cent for raw materials and capital goods. As most exemptions were
granted for these goods, the gap between nominal and implicit rates was the largest for this group.
In addition to collecting import taxes, the Customs Office was also responsible for the Single Tax régime
and other special tax régimes covering over one hundred firms. As a result, there was insufficient
oversight over the extent of the use of duty-free inputs into production. Shortcomings also existed in the
co-ordination between the customs and tax offices.
The high level and complexity of the pre-1994 tax structure lent themselves to fraud and abuse. The
average nominal import duty on consumer goods subject to excise taxes was 160 per cent. For certain
textiles, the average nominal rate exceeded 350 per cent. This provided incentives for all economic
agents, formal or informal, to engage in illicit trade, greatly facilitated by the long and porous
Cameroon-Nigeria border.
Although no precise quantification can be made, the authorities are of the view that illicit trade and the
resulting tax evasion was a significant factor in the deterioration of government revenue. According to
Marchés Tropicaux, 11 December 1992, the informal sector included not only small operators but also
well organized, large-scale operators trafficking in consumer goods, which was allegedly made possible
by corruption at entry points. For gasoline, the informal market was estimated at between 40 and
60 per cent of Cameroon's total consumption. In the textile industry, smuggled goods were estimated to
represent as much as 80 per cent of the market. According to more recent reports, large illicit gasoline
imports have at times closed most service stations in North Cameroon (Marchés Tropicaux,
15 April 1994).
(i) Registration and documentation
7. The 1994 General Trade Schedule divides imported products into three groups:
- uncontrolied products not subject to any special import restriction;
products which for special reasons, particularly considerations of safety, health and
environmental protection, are subject to the technical control and approval of, and the
granting of a certificate of conformity by a competent ministry; and
- products whose admission and distribution is prohibited throughout Cameroon because
they constitute a health or environmental hazard.
8. The import of uncontrolled products is neither subject to prior authorization nor import licensing.
The only formality is a prior import declaration for "statistical purposes, inspection and control"³
(Chapter IV(2)(vii)).
3General Trade Schedule, Section 2.2.1, June 1994. C/RM/S/56 Trade Policy Review Mechanism
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9. The same import declaration form applies to all imports and should contain the business name
and address of the importer and supplier, the country of origin of the merchandise, the f.o.b. or c.i.f.
value in both CFA francs and the original currency, the customs point where the goods are to be cleared,
and the good's customs tariff. Declarations may apply either to an invoice or a group of invoices held
by a single applicant. Declarations may be rejected if a discrepancy is found between the declaration
and the invoice or if the declaration relates to a prohibited good. In practice, some 5 to 7 per cent
of all declarations are returned for additional information.
10. The import declaration is personal and non-transferable; it should be made out in seven copies
and domiciliated at a bank with two copies of all relevant documents. Only goods with an import
declaration endorsed by the bank of domiciliation may be cleared through customs.4
11. Import declarations are deposited directly with the bank of domiciliation which, after endorsement
in accordance with currency exchange regulations, distributes them to the administrative services and
bodies involved in the import procedures.5 The importer pays, where applicable, the Imports Inspection
and Control Tax to the bank of domiciliation. An import declaration is valid for nine months. An
extension of three months may be granted by applying to the bank of domiciliation or to the Ministry
of Industrial and Commercial Development; the bank or Ministry have eight days to act on the
application, otherwise the extension is deemed granted.
12. The following items are required to become an importer: (i) a stamped application, (ii) an
information sheet, bearing the fiscal stamp of the dues in force, from the Ministry of Industrial and
Commercial Development; (iii) an A8 import/export licence; (iv) presentation of a registration number
in the trade registry and an identification certificate in the Central Company Index and (v) an annual
payment of CFAF 10,000 to the Cameroon National Shippers Council. Established importers should
comply with conditions (i) and (v) and present a valid importer's licence, unless they have a waiver,
and produce a tax receipt for the previous year.
13. New and established importers must also have "professional trader" status. This is obtained
by complying with conditions on registration, declaration of establishment and professional licensing.
Foreigners are required in addition to obtain prior authorization to engage in importing/exporting from
the Ministry of Industrial and Commercial Development.6
14. Exempted from the approval requirements to become an importer/exporter are government
services and para-statal bodies and, for specific purpose products, non-profit organisations and
individuals.
4 Bank domiciliation is a legal requirement to execute foreign exchange transfers.
5Prior to 1994, declarations were subject to prior endorsement by the Ministry of Industrial and Commercial
Development.
6Decree No. 93/720 /PM of 22 November 1993. Republic of Cameroon C/RM/S/56
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15. For customs clearance, importers must lodge the following documents:
- original of bill of lading or air waybill containing the gross weight, the volume
measurement, marks of identification, and the name and address of the consignee;
- commercial invoice containing the information necessary for the assessment of customs
duties and for compilation of commercial statistics;
- pre-shipment inspection certificate;
- insurance certificate;
- transport invoice;
- order giving entitlement to duty-free entry if applicable; and
- certificate of origin certified by a recognized chamber of commerce if applicable
(Chapter IV(2)(xiv)).
16. The customs service records the required information and issues copies of a declaration enabling
customs inspectors to compare the declaration with the physical goods. If there are no discrepancies,
the importer is given a receipt and the procedure is complete. Three days are required on average
to clear goods through customs.
17. There are procedures for appeals against customs decisions and with that purpose the Customs
Code provides for a technical committee administered by CACEU Secretariat. Recourse to existing
tribunals is also available for judiciary rnatters.
18. Special customs and consular formalities, in addition to the regular requirements, apply to
strategic products, such as arms and ammunition and medicaments. Special formalities are also specified
for products subject to stamping and marking or equalization (to ensure price equality between imports
and the domestic product), although none such formalities are now in use.
(ii) Tariffs
(a) Form of tariffs
19. Cameroon changed its tariff nomenclature to the Harmonized System (HS) in January 1989
without affecting the tariff structure. Discussion on reforming the tariff structure started in 1990 with
other CACEU members, culminating with the introduction of an entirely new tariff in January 1994
(Box IV.3). This tariff restructuring has been accompanied by the elimination of specific duties,
government-decreed market prices, tariff quotas, variable levies, compound tariffs and temporary tariffs.
20. Under the tariff applied as of early 1994, all duties are ad valorem, assessed on the wholesale
market value of the goods in the country of origin plus all costs and expenses incurred up to the time
of their arrival in a Cameroonian port (c.i.f.). Tariff suspensions applied to a number of imported
products until July 1994 and were then eliminated. Cameroon accords at least m.f.n. treatment to
imports from all countries. C/RM/S/56 Trade Policy Review Mechanism
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Box IV.3: Reform of the tariff structure
As a result of the economic difficulties faced by the CACEU region since the mid-1980s, the Heads of
State of the six members endorsed in 1990 a call for a regional reform programme, to correct
deficiencies in regional trade instruments. One year later, a Protocol of Understanding on reform was
signed and an Ad Hoc Commission was created to finalize the regional Iegislation necessary for
launching the reforms. The CACEU Management Committee adopted legislation applying the reform in
1992. The reforms were launched in early 1993, with the new fiscal and trade régimes to begin entering
in force from January 1994, starting in Cameroon. Other CACEU members were scheduled to
implement those régimes within one year.
During the period leading to 1994, practical issues were examined and discussed both among CACEU
members and between Governments and industry representatives. Particularly important were those
concerning the classification of products in four tariff categories. Agreeing on a classification was
complex not only because large differences existed in the economic structure of the various CACEU
countries but also due to the divergent interest of producers and consumers, Moreover, the same product
could fall in different categories depending on its final use. This was the case for sugar and, an example
of particular importance in Cameroon, scaferlati (tobacco-mix ready for use). One of Cameroon's two
tobacco firms, Sitabac, imported scaferlati while the other, BAT, prepared scaferlati from imported
tobacco. Sitabac had thus an interest in having imported scaferlati classified as a raw material while
BAT, highlighting its large investment in scaferlati producing equipment, considered that only imports of
raw tobacco should be classified as raw materials. Also difficult was the treatment of capital equipment,
often imported at concessional rates or duty free under the previous customs régime and to be subject to
a non-zero tariff from 1994. It was also argued that the application of the lowest tariff rate to basic food
products like wheat, flour and rice would discourage the production of local substitutes like manioc,
bananas and maize.
Months of planning were thrown into disarray by the devaluation of the CFA franc on 11 January 1994.
The devaluation required makeshift modifications to the planned tariff rates, in the event adopted with
only limited knowledge of the combined impact that the new trade régime and the devaluation would have
on particular industries. Cameroon, with the largest manufacturing plant in the CACEU, was
particularly concerned by last minute decisions, some unilaterally taken by other CACEU members, to
lower the rate applied to final consumption goods from 50 per cent, to 35 per cent and then to
30 per cent. The need to accelerate the adoption of the new régime throughout the CACEU created
administrative problems, which in late-1994 were still being dealt with.
(b) , Level and range of tariffs
21. The CACEU customs tariff subjects imports from outside the CACEU region to one of four
tariff rates:
(i) basic necessities (5 per cent);
(ii) raw materials and capital goods (10 per cent);
(iii) intermediate goods (20 per cent); and
(iv) final consumption goods (30 per cent). Republic of Cameroon
C/RM/S/56
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22. The current CACEU tariff has 5,531 lines at the 8 digit HS level. The simple average is
18.8 per cent. This average is slightly less than half the average rate in the pre-1994 tariff, although
direct comparisons between the two régimes are difficult given the widespread use of tariff exemptions
under the previous system. Outside the framework of the CACEU tariff, Cameroon levies a special
customs duty of 15 per cent on imports of petrol (super) and diesel.
23. Almost half of all manufactured imports, by tariff line, are subject to the 10 per cent rate and
36 per cent to the highest 30 per cent rate (Chart IV. 1). The highest tariff rate applies to 57 per cent
of all primary imports; this reflects, on the one hand, the application of the highest rate to 70 per cent
of agricultural imports and, on the other hand, the lower rate of 10 per cent applying to 90 per cent
of mining products, which represent only a small number of tariff lines.
Chart IV.1
Distribution of tariff lines by m.f.n. tariff rate, 1994
Rates (per cent)
10
20 -
30 -
0 5 10 15 20 25 30 35 40 45
Percentage of all lines
Source: GATT estimates.
24. The spread of tariffs, as measured by the standard deviation, is wide relatively to the tariff
average. This feature became more noticeable after the 1994 tariff overhaul, which lowered the average
tariff level more than the tariff dispersion. The standard deviation for the new tariff is 9.5 per cent,
while the standard deviation for the pre-1994 tariff was 15.8 per cent. In absolute terms, tariff dispersion
is now the lowest for mining products, although relative to their (high) average tariff, agricultural
products have the lowest dispersion. C/RM/S/56 Trade Policy Review Mechanism
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(c) Tariff escalation
25. Escalation in Cameroon's import taxes is unusual in that the average rate on semi-manufactured
goods is significantly lower (15 per cent) than on raw materials (20 per cent) or finished goods
(21 per cent). Producers of intermediate goods would seem to be strongly disadvantaged by this tariff
structure while domestic producers of finished goods appear to enjoy considerable protection. This
represents a departure from the more typical escalation pattern observed in the pre-1994 tariff structure
which, not taking into account exemptions, provided for increasing average tariff rates from raw materials
through intermediates to finished goods.
26. An analysis by ISIC industry reveals the usual tariff escalation by stage of processing in several
industries, particularly textiles and apparel and basic metal products (Chart IV.2). Important exceptions
to this pattern occur in wood products, where the production of intermediates appears slightly favoured
over that of finished goods, and in non-metallic mineral products, fabricated metal products, and other
manufacturing, where the production of intermediate goods seems markedly disadvantaged by a negative
tariff escalation.
Chart IV.2
Tariff escalation, 1994
Simple average, per cent
32 Raw materials .Intermediates .Finished good.
24 .
16
.
.
Source: GATT estimates. Republic of Cameroon C/RM/S/56
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27. The apparent bias against producers of intermediate goods does not take account of tariff
exemptions to particular producers, for example operating under establishment conventions.7 Moreover,
the high average tariff applied to agricultural products, some of which are in fact final consumption
items, inflates the average tariff rate for raw materials as a group.
(d) Tariff bindings
28. Cameroon did not have a schedule of tariff bindings prior to the conclusion of the Uruguay
Round. Within the framework of the Round, Cameroon undertook bindings for products in Annex I
of the Agricultural Agreement, at a ceiling rate of 80 per cent, with the maximum level for other
impositions (such as internal taxes) set at 230 per cent (Chapter lI(3)(ii)). For industrial products,
the customs duties on raw jute, single yarn of jute, and multiple yarn of jute were bound at a ceiling
rate of 50 per cent; the maximum level for other impositions was set at 80 per cent for raw jute and
150 per cent for the other two products.
29. According to the authorities, the ceilings were made high enough to leave room for manoeuvre
concerning direct taxatior, given Cameroon's membership of the CACEU. Those ceilings, being so
much higher than applied rates, are of limited value in assuring the permanence of Cameroon's tariff
reform programme. According to the authorities, the situation with respect to bindings is to be reviewed.
(e) Tariff preferences
30. Under the pre-1994 tariff schedule, goods originating in other CACEU countries were subject
to a preferential tax, the Single Tax, substituting for all border taxes. A new preferential tax for
intra-CACEU trade, the Generalized Preferential Tariff, was to come in force on 1 January 19948 but
its application was delayed to July 1994. Until 31 December 1995 the rate is to be 20 per cent of
the tariff applying to m.f.n. trade; a rate of 10 per cent is then to apply until 31 December 1997 and
afterwards intra-CACEU trade is scheduled to be duty free.
31. The preferential trade agreement signed with Senegal in 1974 is Cameroon's single bilateral
trade agreement. Article 1 of this agreement provides for exemption from customs duties and taxes
having equivalent effects for all products. Within the framework of the first series of negotiations
on the Global System of Trade Preferences (GSTP), Cameroon has entered into tariff-binding
commitments with Romania (Chapter lI(5)(iv)).
7These, however, are to be phased out by end 1995.
8Ordinance No. 94/001 of 24 January 1994. C/RM/S/56 Trade Policy Review Mechanism
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(f) Tariff concessions
32. Duty-free status was transitorily granted to certain basic products until 30 June 1994; thereafter,
the customs duty and the turnover tax were each to apply to those products at a rate of 5 per cent.9
During the same transition period, a global tax of 5 per cent was to apply to other selected food
products.10 Duty free status was granted to pharmaceuticals by the 1994-95 Law of Finances."
33. Products intended for use by non-governmental organisations, such as charitable and religions
groups, enter duty-free; this concession extends to all products, including capital equipment. Projects
financed by international organizations may also be exempt from customs duties. 12
34. All imports of raw materials and equipment used by export industries located in a free port
or industrial free zone are tax exempt. Products destined for domestic consumption, fertilizers and
their derivatives may also enter duty-free, for example, in the case of a national disaster. This provision
is part of Cameroon's Agricultural Policy, to combat shortages of certain essential goods.
35. All special customs and fiscal régimes accorded to public and para-public enterprises were
eliminated in mid-1994.13
(iii) Variable import levies
36. Equalization taxes were applied to rice, cooking oils and sugaruntil mid-1994.14 No such taxes
are now in use.
(iv) Levies and other charges
(a) Border taxes
37. A special fee of 1 per cent of customs value is imposed on imports to finance the computer
services provided by the customs department. Imports with a f.o.b. value of CFAF 2 million or more
are also subject to the Imports Inspection and Control Tax used to pay for the pre-shipment inspection
programme (Chapter IV(2)(v)). A charge of 14 per cent is also collected to fund the Ports of Cameroon
National Office. These three charges are applied uniformly to imports from all sources.
9Ordinance No, 94/007 of 16 February 1994. The products involved were (HS codes between parenthesis):
wheat (1001-1000), various rice products (1006-3010, 1006-3090 and 1006-4000), and school books (4901-1010
and 4901-1090).
10Flour (1101-0010) and sugar (1701-9910 and 1701-9990).
11Law No. 94/002 of 1 July 1994.
12 Non-governmental organizations and international organizations declare on a D18 (temporary admission)
form.
13Law No. 94/002 of 1 July 1994.
14Order No. 047 of 2 June 1989. Republic of Cameroon C/RM/S/56
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38. Maritime and fluvial freight is subject to the Cameroon National Shippers Council Charge,
collected at a rate of 0.3 per cent of the c.i.f. value of freight. Three types of cargo are exempted
from this charge: products from CACEU countries; products not subject to all customs duties and
taxes; and transactions undertaken by occasional importers. The authorities note that the charge does
not apply to petroleum, which represents more than half of the Cameroon's total traffic. The charge
supports the National Shippers Council, which apportions maritime traffic between Cameroon and other
transport companies, negotiates freight rates with maritime conferences and other companies and promotes
the maritime sector.15
39. A charge for veterinary inspection is applied at rates ofup to CFAF 5,000 per animal imported.
Other animal products are charged ad valorem rates of 2 and 3 per cent. 16 Warehousing and surveillance
charges, and a phytosanitary control charge, are also applied to imports.
40. Cameroon's legislation contains provisions for the imposition of non-automatic temporary
surcharges. 17These surcharges have not been used, having been initially planned as a means to provide
protection to selected enterprises.
(b) Internal taxes
41. A new Turnover Tax and a new Excise Tax came into force on 1 January 1994, replacing the
Single Tax, Internal Tax on Production, the Turnover Tax on Imports, the Internal Turnover Tax,
and the Proportional Stamp Duty18, although the Single Tax and the Internal Tax on Production were
not in fact phased out until 1 July 1994.19 Firms enjoying guarantees of a stable fiscal regime under
the Investment Code were to continue paying the Internal Turnover Tax, the Single Tax, the Internal
Tax on Production or the Proportional Stamp Duty until their agreements were renegotiated.20 The
authorities expect to eventually transform the turnover tax into a value added tax.
42. The Turnover Tax applies to the production and distribution of goods and services, including
the importation of goods. The tax is implemented at the place where the service is provided, the
production takes place or the good is first marketed. In the case of imports, the Turnover Tax is
collected. at the point of entry into Cameroon, on the product's f.o.b. value plus customs and excise
duties. For local goods, the relevant tax base is the ex-factory price.
15Decree no 75/118 of 21 January 1975.
16Service Note No. 033/MINFI/DD3.
17Ordinance No. 94/001 of 24 January 1994.
180rdinance 94/001 of 24 January 1994.
19Law No. 94/002 of 1 July 1994.
20Ordinance No. 94/002 of 24 January 1994. C/RM/S/56 Trade Policy Review Mechanism
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43. Both imports and local products are subject to a general tax rate of 15 per cent.21 A reduced
rate of 5 per cent applies to certain food products, books and other items.22 Petrol (super)
and diesel are subject to turnover tax at a rate of 12.5 per cent.23
44. Selected capital goods, such as generators, engines, pumps and compressors are exempt from
the Turnover Tax24; also exempted are goods considered "basic necessities", including health-related
items, school books and insecticides as well as bottling, packaging and civil engineering equipment.25
In addition, other items not subject to the tax are, inter alia, certain agricultural activities and activities
subject to specific tax régimes, such as mineral extraction (including petroleum).
45. Taxpayers with an annual business turnover of at least CFAF 20 million may deduct the turnover
tax paid on certain inputs from their taxable base. Those inputs include raw materials and services
integrated during the production process and certain capital goods.
46. An excise duty, levied equally on domestic and imported goods, at an ad valorern rate of
25 per cent applies to products described as "luxuries". These include liquors, wines, perfumes,
cosmetics, jewellery, and precious metals as well as mineral water, soft drinks, beer, and tobacco.26
General provisions for the application of the excise duty are the same as for the Turnover Tax. A
special excise tax on the consumption of petrol (super) and diesel is also applied, at rates of CFAF 80
and 30 per litre, respectively.27
21Law No. 94/002 of 1 July 1994.
22Ordinance No. 94/002 of 24 January 1994. The HS items involved are 0201-1000-0 to 0210-9000, 0401-1000
to 0402-9900, 1006-2000, 1006-3090, 1901-1012, 1901-1022, 1905- 1000 to 1905-9090, 3005-1010,3005-9000,
3401-1990 and 4901-9100.
23Ordinance No. 94/004 of 16 February 1994.
24Ordinance No. 94/002 of 24 January 1994. The items involve are all in HS Chapter 84, namely, 8402- 11
to 8402, 8403-1000, 8405-1000, 8407-1000, 8407-1000, 8407-2910 to 8408-2920, 8408-1091 to 8408-1092,
8409-1000, 8410-1100 to 8410-1300, 8411-1100 to 8411-8200, 8412-1000 to 8412-8000, 8413-1100 to 8413-8200,
8414-1000, 8414-3033 to 8414-4000, 8416-1000 to 8416-3000, and 8417-1100 to 8417-8000.
25Ordinance No. 94/002 of 24 January 1994. The HS items involve are 2937-9100, 2939-2100, 2941, 30,
3007-0090, 3701-1000, 3702-1000, 4014, 4015-1100 4901-10000, 7015-1000, 8419-2000, 8713, 9004-9000,
9018-11 to 9022-90, 9402-1011, 9402-1019, 3808, 3102, 8419-1000 to 8419-8900, 8420-1000, 8421-1100 to
8421-3900,8422-3000,8422-4000, 8424-1000 to 8424-8990,8425-1100 to 8425-4900, 8426-1100 to 8426-9900,
8427-1000 to 8427-9000, 8428-1000 to 8428-9000, 8429-1000 to 8429-5900, 8430-1000 to 8430-6900, 8433-1900
to 8433-6000, 8434-1000 to 8434-2000, 8435-1000, 8436-1000 to 8436-8000, 8437-1010 to 8436-8000, 8438-1000
to 8438-8000, 8439-1000 to 8439-9100. and 8440-1000.
26 Ordinance 94/002 of 24 January 1994. The HS items included are 2201, 2202, 2203-0000, 2204, 2205,
2206-0000,2208-2000 to 2208-9092,2402,2403-9990, 3303-0000,3304, 3305, 3307, 710I - 1000 to 7105-9000,
7106-1000 to 712-9000, 7113-1100 to 7117-9000.
27Ordinance No. 94/004 of 16 February 1994. Republic of Cameroon C/RM/S/56
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47. In addition, a community "centime" tax is imposed at a rate of 10 per cent on the value of
turnover (inclusive of the turnover tax).28 Revenues from the "centime" tax go to municipalities.
The rates for both the turnover tax and the "centime" were set on the basis of simulations using the
pre-devaluation exchange rate and, unlike custom taxes, were not changed after the CFA franc was
devalued. As a result, some industrialists consider that the devaluation has made the rates too high.
Concerns have also been expressed about certain enterprises subject to special investment régimes being
excluded from the turnover tax deduction chain.
48. Additional taxes and fees include a:
- landing tax, a specific charge which varies according to the port;
- tax on a vessel's length of stay in port;
- tax on meat distribution, which applies to imported and domestic meat; and
- consumption tax on the local sales of alcohol.
(V) Customs valuation and pre-shipment inspection
49. Cameroon is an observer to the Agreement on Implementation of Article VII of the General
Agreement (the Customs Valuation Code). By accepting the Uruguay Round Final Act, Cameroon
has undertaken to apply the customs valuation methods laid down in the Agreement on Customs Valuation
(within a period not exceeding five years from the date of entry into force of the World Trade
Organization).
50. The Société Générale de Surveillance (SGS) was engaged in 1989 to establish an
import pre-shipment verification programme. This programme's objective is to verify that the quality
and quantity of imports corresponded to contractual specifications, confirm that the price is appropriate,
evaluate freight and other taxable expenses, provide an opinion on the custom numbers and applicable
custom duties, and issue a verification certificate.29 According to the authorities, the SGS programme
has probably also helped check the volume of illegal imports going through the port of Douala.
51. With some exceptions, imports valued at CFAF 1 million and over are subject to the SGS
procedures. SGS inspections are carried out prior to shipment and on arrival of the goods in Cameroon.
The SGS Certificate is accepted as proof of the c. i. f. value of goods for the purpose of customs duties.
52. Exports from some 90 countries are subject to SGS inspections, including all those from
Cameroon's major trading partners. Countries not covered by the programme include the republics
of the former Soviet Union, as well as Cameroon's fellow members of CACEU. Excluded from SGS
inspections are also certain goods and transactions, including imports by the Army and Security Services,
newspapers and precious stones. The Minister of Industrial and Commercial Development may exempt
from SGS inspection any import not granted a Verification Certifcate.30
28Ordinance No. 94/002 of 24 January 1994.
29Société Générole de Sureillance, Guide pratique pour les importateurs: Programme de Vérification des
importations en République du Cameroun, Genève.
30Order No. 00145 of 22 November 1988. C/RM/S/56 Trade Policy Review Mechanism
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53. Importers are responsible for paying the Imports Inspection and Control Tax. This tax is
collected at a rate of 0.95 per cent of the f.o.b. value of the merchandise, with a minimum impost
of CFAF 1 10,000 per shipment.31
(vi) Minimum import prices
54. According to the authorities, Cameroon does not in practice apply minimum import prices or
reference prices for customs valuation purposes. However, legislation is in place that requires import
taxes on certain products, including food and textiles, to be calculated on the basis of minimum values
fixed by law.
(vii) Import controls and prohibitions
55. Prohibited imports are those listed in Appendix 11 of the General Trade Schedule (Table IV. 1).
56. Cameroon applies the prohibitions enacted under the Convention on International Trade in
Endangered Species of Wild Flora and Fauna (CITES), notably the clauses concerning the sale of species
in Annexes I, Il and III.
57. There are no items whose importation is normally prohibited or restricted but is allowed under
bilateral or regional agreements. Cameroon has no agreements with foreign governments to limit the
value or quantity of any goods being exported from foreign countries to Cameroon. The authorities
are not aware of any such agreements between companies operatinig in Cameroon and overseas
companies.
58. Products related to national defense or internal security may only be imported by designated
organisations.
31Decree No. 94/505/PM of 5 October 1994. Republic of Cameroon C/RM/S/56
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Table IV.1
Goods subject to import prohibition
. Description of products . Description of products
"IBERO' refined cooking oil .
Whisky "CN" - "RAY"
MIPIPO skin care products
Medicated cream-I.KB medicated cream
Cream - crusader - skin toning cream-Elegance
Skin toning cream - Symbi cream 6 Skin pear
Cream renue super bleading - Cream amba Cream - Nice
Super Cream - Desire complexion cream
Tura medicated cream - MIPIPO hydroquinone lotion
Jaribu Antiseptic soap, Germidal -H.G. 12
Germinal Soap - MIPIPO Germidal soap
Robert medicated soap - Tura, Germidal soap
Sukissa Banqo - Antiseptic Baap-Skingard
Medicated soap - Bexo Antiseptic - Bico Soap
Capatatol
(Aretit) Dinoseb acetate
Dinoceb
Binapacryl (Mirocide)
Cyhexatin
Dieldrin
Heptachlor
2-4-5 TCP
Captafol-based fungicides
Difolatan
Folcid
Merpafol
Crisfolatan
Foltaf
Haipen
Myocodifol
ortodifolatan 80
Captalatan 80
Herbicides with a dinoseb base (ARETIT)
HOE 002904
Evosit
Phenotan
Dinoseb based
Basanite
Chemox General
Chemox
Chemsect
Dynamyte
Elgetol
Hel-Fire
Kiloseb
Nitropone
Sinox General
Unicrop
Caldon
Dinitro
DN 289
Gebutox
Premerge
Subitex
Vertac
Dinitro Week killer
(Morocide) Binafacryl-based
Acricid
Ambox
Dapacryl
Dinosebe
Endosan
Morocide
HOE 2 784
NIA 9 044
Dieldrine based
Alvit
Dieldrex
Dieldrite
Octalox
Panoram D-31
Aldrine-based
Aldrex
Aldrex 30
Aldrite
Aldrosol
Drinox
Octalene
Seedrin liquid
Heptachlore-based
Drinox
H-34
Heptamul
Toxic and other industrial wastes
"Cock Brand" mosquito Killer
"Turkey Brand" vegetable oil
Non-iodized salt
Source: General Trade Schedule, Appendix Il. Trade Policy Review Mechanism
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(viii) Import licensing
59. No import licensing requirements have been applied in Cameroon since mid-1994, following
the progressive elimination of import licensing undertaken as part of Cameroon's trade liberalization
programme. Previously, licensing requirements affected textiles, goods for which there were quotas,
transactions over CFA 500,000, and gold. All imports remain subject to an import declaration, a
formality for statistical purposes (Chapter IV(2)(i)).
60. Certain products are subject to technical endorsements (Table IV .2). Importers ofsuch products
are required, in addition to meeting the formalities applying to uncontrolled products, to acquire a
technical endorsement or a certificate of conformity signed by the competent ministry, and to present
it at the time of payment of customs duties. It should be issued by the competent ministry within
eight days from the day documents are filed. otherwise the technical endorsement is deemed granted.
If the endorsement is refused, the ministry should inform the importer and forward a copy to the customs
service within the eight days. Products subject to technical endorsements also require special approval
from the competent ministry before they can be marketed in the internal market.
Table IV.2
Products requiring technical endorsement
Tariff Heading Description of product Visa of
0220- 1100-0 to 0210-9000 Edible meat MINEPIA
0301-1000 to 1307-9900 Fishery and livestock products MINEPIA
2309-9000 Feed for other animals MINSANTE
3003-1000 to 3004-9000) Medicaments for cattle, pharmaceuticals MINSANTE
3401-1100 Medicated soap MINSANTE
3602-0000 Prepared explosives, other than propellent powders MINMEE
3604-l000 Fireworks MINAT
3604-9000 Signalling flares and other pyrotechnic articles MINAT
8525-101 1 Transceivers MINPT
8525-2000 Transceivers MINPT
8527-9000 Other receivers MINPT
9303-1000 Muzzle- loading firearms MINAT
9303-2000 Other sporting, hunting or target-shooting shotguns, including MINAT
combination shotgun rifles
9303-3000 Other sporting, hunting or target-shooting rifles MINAT
9303-9000 Other firearms under Heading N- 9303 MINAT
9306- 1000 Cartridges for pistols MINAT
9306-2100 Shotgun cartridges MINAT
9306-3000 Other cartridges MINAT
9306-9000 Other ammunition MINAT
Precious substances (gold, platinum, sapphire...) MINMEE
Radioactive substances (uranium, thorium, deuterium) MINMEE
Appliances containing radioelements MINMEE
a MINEPIA:
MINSANTE:
MINMEE:
MINAT:
MINPT:
Ministry of Livestock, Fisheries, and Animal Industries
Ministry of Health
Ministry of Mines, Water and Energy
Ministry of Territorial Administration
Ministry of Posts and Telecommunications.
Source: General Trade Schedule, Appendix I. Republic of Cameroon C/RM/S/56
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(ix) Import quotas
61. Cameroon has followed a programme of elimination of quantitative restrictions and, according
to the authorities, no such restrictions were in force after mid-1994.
(x) Import cartels
62. Imports of medicine are reserved to hospitals and pharmacies complying with certain conditions
established by law.32 The importation and marketing of veterinary medicines are reserved to approved
veterinaries and subject to prior authorization by the Minister of Livestock, Fisheries and Animal
Industries.33
63. The oil storage company (SCDP), a semi-public company, has a monopoly over oil storage
and transportation. This arrangement appears to give the SCDP a de facto monopoly on the import
of petroleum products; there appear to be little or no such imports by the government-controlled refinery.
(xi) Countertrade
64. As a member of the CFA franc zone, with a convertible currency (Chapter I, Annex)34,
Cameroon has no strong incentive to use countertrade for foreign exchange reasons. As a result, the
level of countertrade transactions has typically been nil. Nevertheless, the authorities note that they
are considering the use of countertrade on a selective basis, as an instrument to increase exports (for
employment and income purposes).
65. Under the 1994 General Trade Schedule all imports carried out without a financial settlement
must be declared to the Ministry of Industrial and Commercial Development. Import declarations bearing
the indication "no financial settlement" are used to enable importers to clear goods that do not involve
a transfer of funds or currency; the domiciliation of import declarations at a bank is still required.
(xii) Standards and other technical requirements
66. Cameroon is neither a member nor an observer to the Tokyo Round Agreement on Technical
Barriers to Trade (Standards Code). The authorities, however, do not foresee any difficulties in applying
the Code, as part of implementing the results of the Uruguay Round as a single undertaking.
67. Standardisation in Cameroon has been described by the authorities as being at an early stage
and only partially regulated. Certification is almost non-existent, given the absence of a body charged
with certifying compliance with national norms. Imports are, in practice, admitted into the country
with little reference to standards or norms. Exceptions may occur on an ad hoc basis for products
suspected of being dangerous, in which case steps are taken to regulate their importation.
32Law No. 80/10 of 14 July 1980.
33Inter-ministerial Circular 14/MI-NEP/MINEL.
34Except for the convertibility of banknotes and coins outside the region. C/RM/S/56 Trade Policy Review Mechanism
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68. Elements of a general framework for setting technical standards and regulations do exist. They
are aimed at ensuring consumer protection, promoting international trade within Africa, making the
industrial sector more competitive, and controlling the quality of products and services. The latter
is a particularly important aim, as reflected by the emphasis given in the 1989 General Trade Schedule
on strict controls on after-sales service. By law, importers of technical goods should have available
the parts, equipment and personnel to undertake repairs of the products they sell.35 Although the
application of national norms is optional, it may be rendered obligatory if required by the public order,
security, or health, environmental or economic reasons. A National Normalization and Quality Control
Commission plays a consultative role in matters related to norms, quality control and the environment.
69. Cameroon does not recognize testing procedures performed in exporting countries. The Société
Générale de Surveillance undertakes the task of testing when required, until testing bodies and
laboratories in the exporting countries are recognized and approved. There have been no instances
where international standards have been found to be inappropriate by Cameroon. Cameroon is a member
of the African Regional Standardization Organization and it adopts the standards published by that
organization.
70. According to the authorities, when reference is made to ISO or other international standards
they are adapted to the Cameroon national context by taking into account such factors as climate,
consumer habits, political orientation and industrialization level. While acknowledging that this approach
could be used as a protectionist tool, the authorities note that this would run contrary to Cameroon's
current liberalization policy; standards are thus not likely to be used to protect domestic producers,
with the possible exception of those in infant industries.
71. A sanitary certificate is required under CACEU quarantine regulations for the importation of
various plant products, including banana plants, cacao plants, coffee plants, sugar cane, and raw cotton,
cottonseeds, and cotton plants. and of containers holding earth or composts. Cameroon is a member
ofthe Inter-African Phytosanitary Commission, which in 1988 established the Inter-African Coordinated
Phytosanitary Legislation. identifying plants and plant products having special entry requirements.
The quarantine regulations applied in Cameroon's ports are those established by the International
Maritime Organisation.
72. In relation to marking, labelling and packaging regulations, the authorities note that the following
apply incertain cases, normally related to food and pharmaceutical products: expiry date, manufacturer's
name, date of manufacture, and national mark of conformity. All cartons, cases, crates, and packages
must bear marking identifying the country of origin. The marking must be legibly and indelibly written
in French. Marks of origin also are required on the labels of products exported to Cameroon. These
can be either in English or French. The same indication of origin should appear on cases and packages.
Except for beers and wine containing less than 13 per cent alcoholic content by volume, all bottles
and other container of alcoholic beverages must be labelled with the degree of alcohol.
(xiii) Local content requirement
73. Local content restrictions apply to the processing of wood logs (Chapter V(2)(iv)). Certain
fiscal provisions, in particular the export tax on wood and those under the Investment Code, are intended
in part to promote the local processing of raw materials.
35Decree No. 87/002 of 2 January 1987. Republic of Cameroon C/RM/S/56
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(xiv) Rules of origin
74. A certificate of origin is not usually required for general imports.
75. No uniform certificate of circulation for "CACEU Products" was in use following the introduction
of the new CACEU tariff and fiscal régimes in early 1994. However, the CACEU Secretariat is giving
priority to the introduction of such a certificate, which would cover all raw materials and products
subject to the Generalized Preferential Tariff (Chapter II(2)(ii)(e)). As of mid-1994, plans called for
manufactured products to be recognized as of CACEU origin if made in a CACEU factory directed
by a CACEU legal resident.
(xv) Government procurement
76. Cameroon is an observer in the Tokyo Round Agreement on Government Procurement.
According to the authorities, they intend soon to give consideration to possible membership of the
Agreement.
77. The main legislation regulating government procurement in Cameroon dates from 1986.36
That legislation brought about considerable improvement in areas such as decentralization, transparency
and contract enforcement. Work on new procurement legislation started in 1990 and commitments
with international financial institutions require such work to be finalized before the end of 1994. The
legislation in preparation has as its main objectives more transparent and speedier procedures for
government procurement.
78. Under current legislation no registration requirements are in place for foreign suppliers to qualify
for bidding on public contracts. All bidders are required to provide, inter alia, a solvency certificate,
a certificate of bank domiciliation, and a tender security related to the project size. Foreign suppliers
are not required to submit tenders through a local agent, although in practice it is desirable to engage
the services of a local representative.
79. There is a degree of local preference for Cameroon materials in government procurement,
provided that the local product conforms to the stated technical standards and that its price is competitive.
The authorities are entitled to favour nationals by reserving for them certain projects financed locally
or certain sub-contracts, by replacing the required bonds or securities by a mortgage or guarantee from
the Small Enterprise Guarantee Fund, or by reviewing in their favour all transactions with an initial
minimum value of CFAF 100 million (the minimum value for foreigners is CFAF 500 million).
80. As funding constraints have arisen, the availability and terms of credit to finance purchases
has become increasingly important. The authorities note that a large number of investment projects
has been financed in recent years by international organizations, which has led to increased participation
of foreign suppliers in the tendering process.37 The authorities also note that although no preferential
treatment is given to firms from particular countries or regions, financing agreements may limit bids
to certain regions, for example, the franc zone or the European Union.
36Decree No. 86/903 of 18 July 1986.
37The Direction générale des grand travaux du Cameroun oversaw contracts worthCFAF 18.9 billion during
1993-94. Of that amount, some 52 per cent was funded by foreign sources, including international financial
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81. According to the authorities, open, competitive tendering is the norm for letting government
procurement contracts: awards go to the best global offer, not necessarily the lowest bidder. Single
tendering is permitted in certain specified situations, for example, if supplies are covered by a patent
or are available only from a single source, if no bids were received on the competitive contract or
if the project is such that for technical reasons the work can only be trusted to a specific contractor
or supplier. In the period 1990-94, some 33 per cent of major government procurement contracts were
let by single tender. The same procedures apply to purchases by state enterprises and local and regional
authorities.
82. Several agencies are involved in government procurement:
- the Direction générale des grands travaux du Cameroun, a body especially set up to
administer major government procurement contracts;
- individual ministries when contracts do not exceed CFAF 50 million;
- the Delegate Minister to the Presidency in Charge of Defense who may approve defense
contracts of up to CFAF 200 million;
- public or para-public organisations, on the approval of the ministry concerned, may
generally close contracts of up to CFAF 100 million, or for certain organisations of
up to CFAF 200 million; and
- governors may approve certain contracts valued at up to CFAF 200 million.
83. Cameroon does not have a central registry for government procurement operations and no data
are available on the overall value and main categories of goods purchased or on the share of imports
in government procurement.
(xvi) Anti-dumping and countervailing measures
84. Cameroon is neither a signatory nor an observer to the Tokyo Round Agreements on the
Implementation of GATT Article VI (the Anti-Dumping Code) and on Interpretation and Application
of GATT Articles VI, XVI and XXIII (the Subsidies Code). World Trade Organization members are
required to abide by the Uruguay Round Anti-Dumping and Subsidies Agreements as of the date of
entry into force of the WTO and must ensure conformity of their legislation and regulations with these
Agreements.
85. Cameroon has no anti-dumping or countervailing procedures along GATT lines, although
references to dumping practices are made in legislation concerning anti-competitive commercial practices
(Chapter IV(4)(i)).38 Such legislation) defines dumping as (i) all re-sale of products at a price below
the purchase price net of all discounts or (ii) all sales in the domestic market of products acquired duty
free and initially destined for export and for which the local sales tax has not been paid. The authorities
are of the view that Cameroon's recent trade and price liberalization have made it necessary to consider
new measures to fight anti-competitive practices, including dumping, to protect consumers. As a result,
new measures have recently been introduced or are being studied affecting, inter alia, advertising,
accounting practices, quality control and after-sales service.
86. Complaints by domestic producers for relief against offending imports appear to be handled
informally. Such complaints tend to be related to food items for which substitutes are, or could be,
locally produced such as cereals, meat or poultry. Indirect measures seem to be used as a de facto
38Articles 6 to 8, Order No. 008/MINDIC/DPPM of 7 March 1991. Republic of Cameroon C/RM/S/56
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anti-dumping measure. For example, Cameroon's final list ofm.f.n. exemptions in the Uruguay Round
services agreement indicates that measures concerning sharing agreements on shipping routes would
be strengthened if trading partners continued to practice dumping (Chapter II(3)(ii)).
(xvii) Safeguard actions
87. Cameroon has no domestic procedures for safeguard action nor have there been requests for
import relief under such procedures. According to the authorities, the Government has never taken
selective measures against a product from any country and they are not aware of any petitions to the
Government for import relief under bilateral or regional agreements.
(xviii) Measures implemented in exporting countries
88. The Secretariat has no evidence of measures by other countries regulating their exports to
Cameroon.
(xix) Other measures
89. Cameroon Shipping Lines has the exclusive right to transport all imports for the government,
public collectives. and state-owned companies. The shipping line also takes part in a shipping
arrangement with the European Union.
(3) Measures Directly Affecting Exports
(i) Registration and documentation
90. The General Trade Schedule divides export products into three groups:
- uncontrolled products;
- products requiring an administrative formality; and
- prohibited products.
91. The export of uncontrolled products requires a declaration to customs, accompanied by a
certificate of origin in case one is required by the importing country. Exporters are not required to
obtain prior authorization but a bank domiciliation is needed for the repatriation of the proceeds.
Exporters must also be registered traders and listed in the exporters registry maintained by the Ministry
of Industrial and Commercial Development.
92. Products requiring an administrative formality include foodstuffs, products of animal origin,
cattle, fishery products and certain wild life and plant products. For these products, the exporter must
obtain a certificate or attestation from the competent local authorities in the country of destination or
from another competent authority: this certificate is to be shown to the relevant Ministry in Cameroon.
Prohibited exports include certain strategic items and those considered hazardous (Chapter IV(3)(iv)).
93. The export of cocoa and coffee was liberalized in early 1994, subject to compliance with
international quality standards as certified, on shipment, by the National Cocoa and Coffee Board.
Cocoa and coffee exporters must also present to the authorities, inter alia, the `operational infrastructure"
list required by the Cacao and Coffee Interprofessional Council and a bank certificate of financial
solvency. Cocoa and coffee exports are also affected by Cameroon's participation in international
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94. Re-exporting is subject to special conditions "to put and end to fraudulent practices which can
affect the balancing of the State budget".39 These conditions:
- forbid re-exporting to neighbouring countries goods imported into Cameroon without
previous payment of duties and taxes;
- allow re-exports of goods imported to and paid for in Cameroon only after the payment
of customs duties;
- require the importation to be domiciliated in the country of final destination and payment
to be made to the foreign supplier by the ultimate importer in case the Cameroon
importer is not willing to pay customs duties; and
- require all goods in transit through Cameroon to be the subject of clearance procedures
handled by approved customs brokers, who are responsible for ensuring that all goods
in transit are forwarded to their declared destination.
95. Countertrade operations require a declaration to the authorities and that the trader be registered;
as for other exports, a bank domiciliation is also required.
(ii) Export taxes and charges
96. Each CACEU member is free to set its own export charges. In Cameroon, export charges
apply to six products: wood, in the form of logs, medicinal plants, cotton, bananas, coffee and cocoa.
97. For the 1994-95 fiscal year, a charge on the export of cocoa, coffee, banana, cotton and medicinal
plants is collected at a rate of 15 per cent of their f.o.b. value, the charge being deductible from the
exporter's taxable income. In effect, this export charge is a compulsory interest-free loan to the State
from the producers of the commodities affected. Its economic justification is unclear at a time when
many of those producers are urgently in need of capital for investment (Chapter V(l)):
98. Wood in logs (raw and semi-processed) is subject to an exit duty of 25 per cent of an official
reference value.40 The imposition of charges on wood exports has been a sensitive issue in Cameroon,
touching on the problem of ensuring a fair return from the exploitation of natural resources while
promoting the development of a sector controlled by foreign interests (Chapter V(l)(iv)). Taxing wood
exports thus appears to play the dual role of collecting resource rents in an administratively practical
manner while encouraging the local processing of wood and, thus, value added. Whether these goals
are consistent with the objective of promoting the best possible allocation of Cameroon's resources
is an open question, especially given that a tax on wood production is also in place.
99. Exporters of wood in logs, medicinal plants, cotton, bananas, coffee and cocoa pay an Exports
Inspection and Control Tax. This tax is computed at a rate of 0.95 per cent of the f.o.b. value of the
production.41
39General Trade Schedule, June 1994, p 6.
40Article 6, Law No. 94/002 of 1 July 1994.
41Article 8 Law No. 94/002 of 1 July 1994. Republic of Cameroon C/RM/S/56
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100. Exports are also subject to the Cameroon National Shippers Council Charge, collected at a
rate of 0.3 per cent of the f.o.b. value of freight. Exempted from this charge are exports to CACEU
countries and transactions undertaken by occasional exporters. The authorities note that the charge
does not apply to petroleum, which represents more than half of the Cameroon's total maritime traffic
(Chapter IV(2)(a)).
101. A tax for veterinary inspection is applied at rates of up to CFAF 10,000 per head for exports
of live animals.
(iii) Minimum export prices
102. Cameroon has eliminated minimum prices for all its exports except those of live animals. Official
reference values are used to compute the exit duty on wood (Chapter IV(3)(ii)).
(iv) Export controls and prohibitions
103. The authorities note that although the liberalization of all exports is envisaged in the long run,
the export of certain products needs to be regulated to:
- stabilize and guarantee prices to commodity producers, pending improvements in
producer organizations to allow liberalizing the marketing of those commodities:
- maintain a minimum of food security with respect to products of animal origin, fishery
products and cattle; and
- protect the fauna, flora and, more generally, the environment.
104. Sanitary controls apply to exports of animal products, fishery products and cattle. Quality
controls have also been imposed on certain agricultural exports. The authorities believe such controls
are necessary to counteract the significant. fall in product quality, and in the image of the Cameroon
brand, following the dissolution in 1991 of the Office national de commercialisation des produits de
base (Chapter V(2)(ii)).
105. Palm oil exports were prohibited in late 1994, following sharp price increases in the domestic
market (Chapter V(2)(ii)). Export prohibitions also apply to certain products recognized as hazardous
to life or that may contribute to pollution or environmental degradation; these include products whose
domestic sale is forbidden, products that have been withdrawn from sale, and toxic, industrial or other
waste products whose shipment abroad is controlled.42
106. The following strategic products may only be exported by designated organisations: water,
electricity, petroleum and telecommunications equipment.
(v) Export licensing
107. Cameroon eliminated export licences in early 1994, and exports are now almost entirely
uncontrolled, in particular as regards foodstuffs and products manufactured in Cameroon. Products
still subject to some control include hides (to protect the local industry) and scrap metal; exports of
such items require a technical authorization from the relevant Ministry. Exports of livestock may be
controlled in the event of a domestic shortage. Petroleum exports require authorization from the Ministry
of Mines, Water and Energy.
42Article 1.1.3, General Trade Schedule, June 1994. C/RM/S/56 Trade Policy Review Mechanism
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(vi) Export quotas
108. Cameroon does not maintain export quotas per se, but see Chapter IV(3)(vii) and (viii), below.
(vii) Export cartels
109. In relation to Cameroon cartels directly affecting exports, the authorities note the existence
of the Ports of Cameroon National Office, the state monopoly charged with the planning, construction
and administration of ports in Cameroon. In addition, there is the National Shippers Council, which
manages all maritime traffic, and the Banana Producers Association, which controls the allocation of
Cameroon banana exports to the European Union (EU) under the Lomé Convention.
(viii) Voluntary resiraints, surveillance and similar measures
110. Cameroon participates in the coffee "export retention plan" agreed in 1993 within the framework
of the Association of Coffee Producing Countries. The plan calls for withholding an increasing
percentage of export sales as a world "price indicator" falls below defined thresholds
(Chapter V(2)(ii(b)).
111. Cameroon has joined the plan adopted in 1993 by the International Cocoa Organisation that,
according to the authorities, aims to manage the structural over-production responsible for the continuous
fall in world cocoa prices (Chapter IV(2)(ii)(c)). Cameroon's banana exports to the EU are constrained
to 80,000 tonnes a year under the terms of the Lomé Convention (Chapter IV(2)(ii)(a)).
112. Cameroon does not participate in the Multifibre Arrangement (MFA) for textiles and clothing.
(ix) Export subsidies
113. According to the authorities, Cameroon does not subsidize its exports or export-related activities.
This does not mean that some exports are not favoured with special incentives; for example,
"non-traditional" products benefit through exemptions from the export charges collected on such
traditional commodities as wood, cotton, bananas, coffee, and cocoa, and petroleum exports benefit
from not paying the Cameroon National Shippers Council charge.
(x) Duty and tax concessions
114. Exports, related transport and handling costs included, are exempt from the Turnover Tax
introduced in 1994. Producers of industrial products for export may claim deductions or credit for
the turnover tax they pay on inputs (Chapter IV(2)(iv)(b)).
115. Cameroon maintains no general schemes conferring tax benefits on the basis of export
performance. However, according to the authorities, certain enterprises, such as those in free-trade
zones, may enjoy such benefits under their individual establishment agreements.
(xi) Export finance and export insurance and guarantees
116. Cameroon has no export finance mechanisms for industrial products. The Central Bank offers
advances at preferential rates to commodity exporters at the beginning of each season to aid exports.
Within the context of export diversification, it is foreseen that funds will be made available through
banks to pre-finance exports of agricultural products at concessional rates. However, the difficult state
of Cameroon's public finances makes it likely, according to the authorities, that any export finance
programme will have only a limited scope in the near future. Republic of Cameroon C/RM/S/56
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(xii) Export promotion, marketing assistance
117. In Cameroon, export promotion and marketing assistance activities are undertaken by:
- the Chamber of Commerce, Industry and Mines, charged with promoting and following
up commercial contacts;
- the Hydrocarbon Stabilization Office, charged with stabilizing petroleum prices; and
- the Office national du café et du cacao, charged with monitoring the marketing of coffee
and cocoa.
118. According to the authorities, Cameroon's export promotion policies aim to gaining access for
Cameroon's products to foreign markets through aggressive promotion, trade fairs, tasting sessions
and salons, and missions by businessmen to facilitate partnership and joint venture agreements; export
promotion also involves diversification of exports to avoid sudden deteriorations of the trade balance.
All such programmes are constrained by public finance shortages.
(xiii) Export performance requirements
119. The Secretariat is not aware of any general export performance requirements in Cameroon,
although firm specific requirements exist as part of individual establishment agreement under the
Investment Code.
(xiv) Free-trade zones, export-processing zones
120. In 1990 the Government assembled a package of regulatory, fiscal and customs incentives for
export-oriented investment in conjunction with the establishment of a new Investment Code
(Chapter III(2)). The free zone legislation aims at promoting new investment, facilitating exports and
creating jobs.43 The régime allows for the establishment of Industrial Free Zones (free zone parks)
and Industrial Free Points (single-factory industrial free zones).
121. Either Industrial Free Zones or Industrial Free Points may be established through a government
initiative or under a proposal by the National Office of Industrial Free Zones. This Office has a nine
members board, of which three members represent public companies and are designated by the President,
and six represent private organisations. Charged with receiving the dossiers is the Ministry of lndustrial
and Commercial Development, which is given 30 days to decide on permits granting the right to promote
or operate. The free zone status is permanent and irrevocable in the case of Industrial Free Zones,
and for the operation of the enterprise in the case of Industrial Free Points.
122. Free zone firms agree to produce goods and services exclusively for export. However, through
derogations, firms may "export" up to 20 per cent of their total production to Cameroon; and a higher
proportion may be allowed when free zone firms make goods or services not produced in Cameroon,
to meet domestic shortages, to eliminate domestic monopolies or when such firms transform mostly
local raw materials.44
43Ordinance No. 90/001 of 29 January 1990, drafted with the assistance of the Overseas Private Investment
Corporation and the U.S. Agency for International Development.
44Order No. 51/MINDIC/IGI of 28 December 1990. C/RM/S/56 Trade Policy Review Mechanism
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123. The free zone régime carries the following advantages:
- Customs: Firms in Industrial Free Zones are not subject to the requirements of the
General Trade Schedule, although imports and exports are still subject to declarations
for statistical purposes. Except for passenger motor vehicles and gasoline, imports
by firms in Industrial Free Zones are exempt from all current and future customs duties
and other taxes; exports are also exempt from all taxes. The Société Générale de
Surveillance import verification programme does not apply to firms in Industrial Free
Zones;
- Fiscal: After their establishment, firms in ldustrial Free Zones enjoy a 10 year tax
holiday on the corporate profits tax. followed by a flat 15 per cent corporate tax rate.
Losses can be indefinitely carried forward for tax purposes. Firms are exempt from
certain investment obligations and imposts on property and foreign exchange
transactions. Sales by domestic companies to free zone firms are exempt of imposts,
notably the turnover tax;
- Labour: Free zone firms are entitled to a liberalized labour code. Automatic work
permits are granted to foreign workers, which however should not account, after five
years of establishment, for more than 20 per cent of the firm's labour force:
- Services: Free zone firms may install their own electricity generation or water treatment
equipment. Alternatively, they are entitled to obtain electricity or water at rates no
higher than the concessional rates granted to major users. Firms may also operate
their own telecommunications equipment, but such equipment becomes state
property; and
- Other: Free zone firms are exempt from all state monopolies or restrictions on the
transport of exports and imports. The firms are also exempt from any controls on
prices, foreign exchange or repatriation of funds.
124. The "Industrial Free Point" status is granted in preference to firms which, inter alia, make
use of domestic raw materials, locate close to the source of such materials or, in the case of existing
firms, guarantee exporting all their production within one year of being granted the special status.45
125. Four free zones had been established by mid-1994: Douala port, Edéa, Yaoundé-Nsimalen
and Limbé (Cap-Limboh) but only two firms were located in those zones. According to the authorities.
it is still too early to evaluate the full impact of the free zone régime on exports; it is clear, though,
that progress has been discouragingly slow, with firms in free trade zones yet to make a significant
contribution to Cameroon's economy.
(4) Measures Affecting Production and Trade
(i) Competition policy
126. Anti-competitive trading practices considered by the existing legislation include discriminatory
pricing or sales practices, sales at a loss or dumping, sale refusals, misleading advertising and collusive
or concerted actions (Chapter IV(2)(xvi)).46 Legislation regulating prices also prohibits actions having
450rder No. 51/MINDIC/IGI of 28 December 1990.
46Order No. 008/MINDIC/DPPM of 7 March 1991. Republic of Cameroon C/RM/S/56
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the effect of restraining competition. Forbidden in particular are actions hindering price reductions
or favouring price rises as well as activities by monopolies or oligopolies hindering the normal
functioning of the market.47
127. A Competition Council was created in 1990 to help implement the legislation on anti-competitive
and dumping practices.48 The Council's objective is to examine from an economics perspective whether
certain practices fall within the scope of anti-conmpetitive and dumping legislation. The Council's
recognition of the matter is a pre-requirement for the Government to take measures against an enterprise
under anti-competitive and dumping legislation.
128. The 1994 General Trade Schedule noted that one of the problems facing domestic trade was
the lack of an efficient distribution network and that measures were being taken to address this problem,
such as encouraging national firms to open distribution centres throughout the country. Special emphasis
was also to be placed on consumer information, encouraging the consumption of Cameroon goods and
combatting unfair competition and illegal trade practices.
(ii) Price policy
129. Cameroon's previously extensive system of price controls is being progressively dismantled.
Controls, in the form of prior authorization to alter prices or the administrative setting of profit margins,
are now maintained only on services provided by monopolies or on basic products. The latter include
water, electricity, collective transport, maritime auxiliary services, services by the Ports of Cameroon
National Office, pharmaceuticals, and school books.
130. Petroleum products except lubricants are also subject to price controls (Chapter V(4)(v)(a)).
Sales of petroleum by the national oil company (SNH) to Cameroon's single oil refinery (SONARA)
take place at an official price set by the Government: the price is below world prices. Ex-refinery
prices of petroleum products are administratively set on a cost-plus basis. It is thus likely that price
controls distort not only the refinery's economics but also the downstream distribution and consumption
of petroleum products. Recent efforts to address these problems include the abolition of the previously
near uniform nation-wide system of fuel prices.
131. Before effecting a price increase, suppliers of products subject to price controls are required
to submit documentationjustifying such an increase to the Direction of Prices and Consumer Protection.
The authorities are required to reach a decision within 45 day, otherwise the requested changes are
deemed approved. According to the authorities, pricecontrols will befurther liberalized as monopolistic
structures disappear. These efforts suffered a temporary set back when, after the CFA franc devaluation,
the authorities reintroduced price controls in an attempt to limit inflation.
132. The authorities note that as part of their current price liberalization programme, mechanisms
are being established to ensure that in the price setting process equal treatment is given to local and
imported products, and domestic producers and importers. Administrative procedures in the Direction
of Prices and Consumer Protection are being streamlined and staff selection improved to require both
high technical and ethical employee standards.
47Ordinance No. 72/18 of 17 October 1972.
48Law No. 90/031 of 10 August 1990. C/RM/S/56 Trade Policy Review Mechanism
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133. Although domestic pricing is clearly evolving towards a more transparent market-based system,
its legal framework is still largely that which has been in place since the early 1970s. Within that
framework, the Government may control prices by either directly fixing them, ordering a certain rise
or decrease, or fixing profit margins. Price differentials between imported and Iocally produced goods
and services may also be regulated.49 The sale of domestic or imported products may be prohibited
unless their maximum price has been previously fixed; such a prohibition has not been used.50
Regulations also exists to define the elements of resale prices and profit margins for imports and local
products.51
(iii) Marketing and pricing arrangements
134. According to the authorities, by in mid-1994 there were only two measures in place in Cameroon
to support the price of agricultural products: fertilizers and pesticides subsidies, and customs duty
exemptions to agricultural machinery and equipment fortreating cropsand orchards. Fertilizer subsidies
are scheduled to be eliminated by the end of 1994. No restraints are imposed on imports of agricultural
commodities to support domestic prices.
135. Coffee and cocoa exports are subject to marketing controls requiring exporters and private
purchasing agents to be licensed by the Government or para-statals. Domestic purchases from producers
involve both para-statals and private traders. State-guaranteed minimum producer prices for cocoa
and robusta coffee are-to be removed at the start of the 1995-96 season, at the latest.
(iv) State trading
136. The past. high level of state involvement in the Cameroon economy has been progressively
reduced in recent years. By mid-1994, the areas reserved to the public sector included water, electricity
and petroleum. Related to those concessions, the following enterprises enjoyed exclusive or special
production privileges: SNEC for water, SONEL for electricity. and SNH for petroleum.
137. SODECOTON has acquired a de facto monopoly on cotton purchases by pre-financing cotton
production; SODECOTON's privatisation was under consideration. State monopolies are also still
maintained for petroleum imports and wholesale supply, cement production, telecommunications.
international shipping, and urban transportation. ALUCAM has a de facto monopoly on aluminium
production.
138. In addition to the above, state intervention before reform included public monopolies for
petroleum and fertilizer distribution, crop exports, wheat flour milling, and imports of fertilizers, rice,
sugar and vegetable oil. The Governrment's disengagement from those activities has involved the
privatisation, rehabilitation or liquidation of state-owned enterprises. The process has been slow: although
legislation was adopted in 1990 concerning the privatisation of 15 enterprises, about four had been
privatized by early 1994 (Box IV.4). The Government has also signed some 30 performance contracts
49Ordinance No. 72/18 of 17 October 1972.
50Law No. 79/11 of 30 June 1979 and Law No. 89/011 of 28 July 1989.
51Order No. 1OO/MINDIC/DPPM of 13 December 1988. Republie of Cameroon
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with state enterprises in an effort to improve their financial performance, but improvements have been
uneven (Box IV.5). The generally limited results of these restructuring efforts are attributed to the
poor financial and management records of many of the companies on offer, economic and other
uncertainties, and a general domestic scarcity of credit.
Box IV.4: Privatization efforts
The amount of state subventions to the public sector amounted in 1984 to about half of Cameroon's
income from petroleum (Riddell, 1990). This burden became too heavy after oil revenue fell in 1986,
both for the public finances and the banking system, where the public sector's debt had accumulated. In
1986, a Public Enterprise Rehabilitation Mission was created, followed by a technical commission that
requested a series of studies on the privatisation or rehabilitation of public enterprises with the financial
and technical support of various international organisations. The privatisation programme moved forward
with the signature of the decree of 3 October 1990 defining an initial list of 15 enterprises. The
corresponding schedules of conditions were drawn up: four enterprises had been privatized by early
1994.
At a recent seminar on privatization in Cameroon, it was argued that the companies on sale were
characterized by large debts, obsolete equipment and poor performance records. In effect, privatisation
was a form of liquidation, demanding from buyers large capital injections without reasonable profit
prospects. Compounding these problems were the uncertain socio-political environment and an absence
of investment culture. Cameroon businessmen were said to prefer to engage in trading activities,
import/export, or real estate rather than in industry. Moreover the BEAC's monetary policy was
perceived as too restrictive. Criticism was also directed to the list of companies non-privatizable, which
included public services and those considered as strategic like the state petroleum company.
A second official privatization list was released in July 1994. The list includes 14 enterprises, mostly in
the transport and agro-industrial sectors. The World Bank's representative in Cameroon was reported as
noting that, given the high level of government support to public enterprises (some CFA 460 billion
annually), the release of a second privatization list was required for the approval of a US$75 million
economic relaunching credit (Jeune Afrique, 4 to 10 August, 1994). Cameroon's Prime Minister
explained that the by publishing the list the Government did not acquire precise engagements on
privatization, the level of opening of the companies' social capital or the date to conclude their
privatization.
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(vi)
Adjustment and regional assistance
139. The Employment National Fund was set up in fiscal year 1990/91 to promote structural
adjustment in industries experiencing long term imbalances. The project, with a planned duration of
four years and an estimated total cost of CFAF 7 billion, includes programmes for on-the-job training,
employment self-generation and micro-enterprise creation. These programmes aim at reintegrating
into the labour force workers laid off as a result of the economic downturn as well as assisting first-time
job seekers. The latter is considered particularly important given the high levels of youth unemployment,
which is officially estimated at between 15 to 25 per cent.
140. The labour code was revised in 1992, with the aim of promoting structural adjustment.52 This
has been followed by a series of new labour regulations that have sought to streamline bargaining
procedures, introduce more flexible practices to facilitate labour mobility and help increase enterprises
productivity. These changes, while potentially establishing the basis for improved working conditions,
appear to be doing little in the short run to improve labour mobility. Indeed, according to the authorities,
the changes have led to serious incoherences and discrepancies between the current legislation, work
contracts still in place and national salary structures (Box IV.6).
52Law No. 92/007 of 14 August 1992.
Box IV.5: Enterprise rehabilitation
The financial performance of Cameroon's state enterprises has generally been disappointing. The reasons
for this are widely considered to include excessive state interference in administration, poor management,
vague objectives and lack of financing. To try to improve this situation, the Government has identified
enterprises fit for rehabilitation and required them to sign performance contracts establishing restructuring
objectives and defining the engagements of the enterprise and the Government. A fundamental objective
is to clarify the roles of both the enterprise and the Government within an explicitly defined strategy.
Some 30 enterprises have signed such contracts, which according to 1992 government estimates would
lead to budgetary savings of some CFAF 300 billion over four years.
When the appropriate internal and financial conditions have existed, performance contracts are reported
to have produced encouraging results (Marchés Tropicaux, 11 December 1992). The example most often
cited is that of the national electricity company (SONATEL). Some enterprises, especially in the
agricultural sector, have benefited from external financial and technical support and have been able to set
up their programmes and obtain positive results within relatively short periods.
However, more often performance contracts appear to have fallen short of their objectives. The
implementation of such contracts appears to have faced two major problems: (i) enterprises lacking the
capacity to implement the steps envisaged in the contracts and (ii) the Government not complying with its
commitments. Indeed, performance contracts appear to have often implied an expenditure level beyond
the capacity of the public finances: it has been estimated that the total cost of the financial commitments
by the Government concerning these contracts added up to CFAF 327 billion for the period 1989-90 to
1992-93 (Marchés Tropicaux, 11 December 1992). Moreover, with some exceptions, the signature of
performance contracts has not been accompanied by changes in management teams or management
approaches. Republic of Cameroon
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141. In relation to assistance provided to facilitate industry modernisation, the authorities note the
assistance granted through the Investment Code (Chapter III(2)).
(vii) Research and development (R&D) and credit assistance
142. Cameroon has a number of institutes for the advancement of agricultural technology. At the
national level there is the National Institute for Rural Development, at the University Centre of Dschang,
whose activities include research, training of agronomists, support for extension services, and an
operational production unit. There are also several centres at the regional level to train agricultural
specialists.
143. A national credit guarantee fund has existed for small and medium enterprises (FOGAPE) since
1975. Banks have been compelled to reserve part of their total lending to support small and medium
enterprises with loans granted at preferential interest rates. In 1984, the credit guarantee fund was
changed into a direct investor for small and medium enterprises. Plans were under way in mid-1994
to provide loans at concessional rates to the farm sector; to finance the scheme, a special tax of
2 to 3 per cent on loans to farmers was planned, equivalent to the tax, for public revenue, imposed
on other bank loans.
144. Considerable aid has been provided by various foreign donors in support of structural adjustment
programmes. The main sectors to benefit from such funding have been agriculture and agro-industries.
Box IV.6: Labour code reform
In a note prepared for this report, the authorities pointed out that the new labour code is now completely
disconnected from collective labour contracts, which date back to the early 1980s. Not only do the
implementing texts of the new code overlap those collective contracts, but they sometimes contradict
them. The situation was described as in a state of flux.
For example, the new law has abolished the deductibility of fringe benefits while adding requirements for
enterprises to house relocated workers. The end result has been to increase labour costs to firms and
restrict the geographic mobility of labour. While some measures, for example those concerning
prior-notification or probationary employment, provide firms with greater flexibility, others, such as the
project of compensation for technical unemployment, will increase manyfold the cost of certain
allowances. The authorities believe these changes to be untimely, given the current pressures for firms
to reduce costs. It was also noted that the CFA franc devaluation was not accompanied by labour-related
measures, even though it would have been desirable to take steps to reduce ancillary labour cost to
producers.
The authorities note that there have been delays in the presentation of new social security legislation.
Currently, the State administers the social security system, which is in financial and organizational
difficulties, leading to the demoralization of beneficiaries. The slow pace at which the State has
disengaged from this area has had repercussions on the economic activity of firms: benefits come late or
not at all, certain risks are not covered and must be borne by firms, and other risks may only be covered
by the State, thus precluding competition by private insurers from lowering costs or improving services. C/RM/S/56 Trade Policy Review Mechanism
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(viii) Other measures
145. Despite Cameroon's favourable geographic position to markets in Europe and America, maritime
transport and handling costs appear high and may hinder trade. This appears to be related to the
operation of the National Shippers Council and of international agreements to share shipping routes
between Cameroonian and foreign carriers (Chapter IV(2)(iv)(a)). In this regard, Cameroon's final
list of m.f.n. exemptions in the Uruguay Round services agreement explicitly refers to maritime transport,
noting the need to promote the national fleet, infant industries and take measures against dumping.
These measure appear at odds with Cameroon's liberalization efforts in other areas. Republic of Cameroon C/RM/S/56
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V. TRADE POLICIES AND PRACTICES BY SECTOR
(1) Overview
1. Prior to 1985, Cameroon's economic policies were inward looking, with import-substitution
seen as an important element of the development process. Following the start of oil production in
1977, growing revenue from petroleum exports helped finance both agricultural support programmes
and ambitious industrialization plans. The basic policy objective, supported by widespread state
intervention, was self-sufficiency in both food and a range of basic manufactures. The economy was
protected by high tariffs and various restrictive barriers to trade; domestic production was largely
insulated from foreign competition and international prices were without a major rôle in Cameroon's
resource allocation. Cameroon's policies in effect fostered industries whose growth. and indeed survival,
depended on continuous government assistance and protection.
2. Since 1985, lower oil revenue has reduced the Government's capacity to support activities that
are not competitive at world prices. In addition, Cameroon's terms of trade deteriorated and the
exchange rate of the CFA franc appreciated in real effective terms. These factors prompted a real
GDP decline of some 40 per cent in the period 1986 to 1993. Hence, with growing momentum in
the 1990's, Cameroon has implemented a series of economic reform and structural adjustment
programmes, aimed at greater market orientation and a stronger rôle for the private sector; the most
recent major measures were the devaluation of the CFA franc and the introduction of new fiscal and
customs régimes in early 1994. Over the period, quantitative restrictions have been eliminated, tariffs
have been reduced and simplified, export taxes lowered, internal price controls largely eliminated and
foreign investment encouraged.
3. Petroleum is likely to continue playing a key rôle in Cameroon's economy for years to come;
there is simply no short term substitute for its ability to generate both foreign income and profits.
However, the diversity and abundance of Cameroon's mineral resources gives other mining activities
the potential to eventually play a significant rôle. The farm sector already is a key domestic and external
economic factor in Cameroon, accounting for nearly one half of merchandise exports and a larger share
of employment. With the reorientation of agriculture toward the market and the potentially
competitiveness-boosting effects of the CFA franc devaluation, Cameroon is in principle well positioned
to exploit the opportunities that may result from the Uruguay Round. Cameroon's manufacturing sector
is the largest and most diverse in the region, with particular strengths in downstream, agro-based
industries; however, its performance since 1986 has suffered from low investment and poor project
planning and management.
4. Cameroon's ongoing financial stabilization and structural reform effort offers the opportunity
to revive the economy, and achieve sustainable growth. However, Cameroon's new industrial policies
still have the potential to distort resource allocation. This is particularly true of the current thrust to
increase value added on an industry by industry basis and of the sector specific investment régimes
now emerging. These strategies may succeed in boosting the targeted activities, but at the expense
of lower value added in other industries. More importantly, the piecemeal pursuit of investment and
of higher value added risks creating ventures with uncertain long-term prospects while preventing the
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(2) Agriculture, Fisheries, Forestry and Derived Products
5. Agriculture remains critical to Cameroon's economy. In 1992, it accounted for 22 per cent
of GDP and some 42 per cent of export earnings. The sector employs about three-quarters of the work
force.
6. Cameroon's staple food crops include plantains, cassava, maize, sorghum and rice, which account
for most of the volume of agricultural output; however, much of that production is not distributed
through formal markets. Most farming remains in the traditional sector, where farmers cultivate small
areas with relatively low yields per hectare. Small-scale farmers also dominate agricultural export
production, with the exception of rubber and palm oil. The main export crops are bananas, cocoa,
coffee, cotton, rubber, and palm oil. Given the relatively low world prices for many of those products
in the early 1990s, the Government continues with a policy of diversification, promoting the cultivation
of other crops, including exotic fruits, green beans, sugar peas, flowers, for the export market. Forestry
is an important and rapidly growing activity, with its output sold bath in domestic and foreign markets.
Livestock and fisheries are minor compared with other agricultural activities.
7. For much of the 1980s the Government encouraged agricultural development, using petroleum
revenue for this purpose when necessary. For most cash crops, the Government set producer prices
prior to each crop season, regulated marketing, and fixed distribution and profit margins. Expon taxes
were levied on agricultural products, and tariffs were applied on most competing imports. Other support
measures included subsidies on fertilizers and-pesticides, and bonuses for replanting coffee and cocoa.
The rôle of public or semi-public enterprises expanded and came to dominate the modern part of
agriculture.
8. Government policies were implemented through several channels, including ministries, parastatal
organisations and co-operatives. The Ministry of Agriculture and the Ministry of Livestock, Fishery
and Animal Industries were responsible for crop and livestock development and for the supervision
of parastatals project planning and implementation. The Ministry of Industrial Development and
Commerce was responsible for agricultural pricing and marketing policies.
9. The Government had moderate success in maintaining agricultural output, but at a high budgetary
cost. This cost increased with the fall in the world price of agricultural commodities in the mid-1980s
and the burden on public finances again rose with the lower petroleum revenue after 1985. When
adjustments became inevitable in 1989, they took the form of drastic changes in producer prices,
marketing systems and administrative bodies. These put the agricultural sector into a certain disarray
from which it had not fully recovered by mid-1994.
10. The authorities note that a present focus of agricultural policy is the promotion of further domestic
processing of products, particularly by providing processors with raw materials at preferential prices
and granting them special tax régimes. The authorities also pursue a policy of agricultural diversification,
especially, as noted, for export products. They consider that output is currently restricted by obsolete
equipment and methods of cultivation, small land holdings, an ageing rural population and, above all,
a lack of adequate financing. They are of the view that addressing the latter requires a reliable system
of agricultural credit including, at least initially, government subsidies and reduced interest rates; the
credit system should also promote a co-operative movement, which is seen as the best option to improve
conditions in the agricultural sector. Republic of Cameroon C/RM/S/56
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(i) Staple crops
11. Although available statistical data on staple food crops are not comprehensive, it would appear
that Cameroon food production remained steady or increased slightly during the 1980s and early 1990s.
Given rapid population growth, however, food production on a per capita seems to have fallen over
the period.' Nevertheless, a small food surplus appears to exist. The Government considers it important
to maintain this food self-sufficiency and efforts are made to keep a balance between food crops and
export cash crops; cuts in producer prices of cash crops seem to have led farmers to switch to production
of food crops.
12. The marketing of food crops was heavily regulated until recently, and especially prior to 1989.
Inter-regional food movements required permits, controls applied to retail food prices, and a number
of parastatals were responsible for the stabilization of food prices and for food supply to selected target
groups. To protect those parastatals, the Government fixed ex-factory prices, imposed quantitative
import restrictions and levied high import duties, notably for rice, edible oil, and meat. These restrictions
were abolished with the introduction of the new tariff and customs régimes and the new General Trade
Schedule in 1994.
13. The two most important staple food crops in volume terms are plantain and cassava, each with
an annual production in the order of about 1 million tonnes. Production of these two crops had trended
down until the late 1980s, reflecting a growing preference for cereals as urbanisation progressed. This
trend may have changed during the 1990s as deteriorating economic conditions have again made
traditional crops attractive. Only a relatively low proportion of plantain and cassava output is distributed
through formal markets; most output is consumed in the same zone where production takes place.
An import tariff of 30 per cent applies to both products.
14. Cameroon's main grain crops are rice, maize, millet and sorghum. Maize production rose
from 380,000 to some 430,000 tonnes between the early 1990s and 1993.² Millet and sorghum are
produced exclusively in the northern provinces, where they are the most important food crop. Annual
production of millet and sorghum fluctuated about an average of some 480,000 tonnes during the 1987-93
period but appears to be under some pressure from increasing maize output.
15. The annual harvest of paddy rice, increased considerably during the early 1980s, reflecting
the Government's priority of rice self-sufficiency. Annual rice production reached some 100,000 tonnes
in 1992-93. Domestic consumption is estimated at some 200,000 tonnes a year. A state-owned company,
SEMRY, is responsible for much of the rice production, from three large farms in northern Cameroon.
The latter region is the most suitable area for growing but its demand for rice is not high and output
is often exported to Nigeria.
16. The rice industry faced financial problems during the late 1980s and a restructuring programme
has been in place since 1988. The success of the programme is considered essential to maintaining
nutrition levels and rural employment. An equalization system was set up in 1988 to protect the market
and provide resources to the industry. A performance contract was signed in 1989 between the
Government and SEMRY, which led to lower producer prices, staff reductions and the narrowing of
SEMRY's activities. The rice price was liberalized at the end of the 1992-93 crop year.
¹Based on FAO's indices of absolute and per capita food production.
²FAO, 1993 Production Year Book. C/RM/S/56 Trade Policy Review Mechanism
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17. Cameroon imported some US$91 million worth of cereals and cereal preparations in 1992,
according to the UNSTAT Comtrade database. About two-thirds of those imports were in the form
of cereal preparations, mostly flour or meal. In 1992, imports of wheat amounted to some US$14
million, rice to about US$13 million and maize to just over US$2 million. Usually, most of these
products are subject to an import tariff of 30 per cent; rice imports are subject to a 20 per cent tariff.
Duty-free status was transitorily granted to wheat and various rice products until 30 June 1994³;
thereafter, the tariff and turnover tax each applied at a rate, of 5 per cent.4
18. Cameroon is an important sugar producer, mainly for the domestic market (Chapter V(4)(i)).
It also produces a sizable avocado crop, almost entirely for domestic consumption although some export
potential is believed to exist.
(ii) Export crops
19. Cameroon's most important export crops, in descending order of importance by tonnage, are
cotton, banana, cacao and palm oil, each with an annual production of between 90,000 and 115,000
tonnes in 1991-92.' Two other important agricultural exports are coffee and rubber. During 1991-92,
coffee production amounted to some 70,000 tonnes and rubber to about 45,000 tonnes. Based on
producer prices for the year, the production of export crops had a domestic value in 1991-92 of slightly
more than CFAF 22 billion each for banana and cacao, some CFAF 18 billion for palm oil, and
between CFAF 12 and CFAF 10 billion each for coffee, cotton, and rubber.
20. Banana was the most important commodity in terms of exported volume in 1991-92, at about
110,000 tonnes. Cacao and coffee exports that year amounted to some 75,000 tonnes; cotton and
palm oil exports were much smaller at some 47,000 and 36,000 tonnes, respectively. Banana was
also the most important agricultural export in value terms, reaching almost US$110 million in 1993,
an increase from US$23 million in 1988. After a considerable decline during the second half of the
1980s, the export value of cocoa beans recovered to some US$113 million in 1992. On the other hand,
the downward trend in coffee exports has apparently persisted, with the value of such exports falling
to US$115 million in 1992, compared to US$352 million in 1986. In 1992, cotton exports amounted
tojust over US$54 million, rubber exports to some US$40 million, and palm oil exports to about US$7
million.6
21. The Government has played an important direct rôle in the production of export crops, notably
through the Cameroon Development Corporation (CDC). The CDC is as a statutory agro-industrial
enterprise incorporated in 1947 to acquire, develop and operate extensive plantations of tropical crops.
The CDC, which falls under the supervision of the Ministry of Agriculture, is involved mainly in the
cultivation of banana, rubber, oil palms and tea. With some 15,000 permanent workers, it is after
the Government the largest employer in Cameroon. The CDC has signed a performance contract with
³Wheat, HS 1001-1000; and rice products, HS 1006-3010.
4Ordinance No 94/007 of 16 February 1994.
5Data on Cameroon's export crops is not readily available; the numbers provided in the following sections
should be considered as bread indicators of relative levels and tendencies.
6All value estimates based on the UNSTAT, Comtrade database. Republic of Cameroon C/RM/S/56
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the Government to address its deteriorating financial performance, which according to the Corporation,
is the result of a continuous drop in commodity prices. Current plans include giving priority to the
transformation of basic products into high value semi-finished or finished products for the local and
export markets.
22. For the 1994-95 fiscal year, a charge on exports of banana, cocoa, coffee, cotton and medicinal
plants is to be collected at a rate of 15 per cent of their f.o.b. value; the charge is deductible from
the exporter's taxable income.7 The authorities indicated that the rationale for this charge was to help
balance the public finances while minimising the effects on producers; the export charge should in
principle temporarily divert income to the Government that would otherwise accrue to producers from
any windfall profits that may have arisen from the CFA franc devaluation, or, for some commodities,
any monopoly rents that might be implicit in the recent rise in world prices, with producers to recover
such extra income in the form of reduced future taxes. However, the export charge, even if small,
is being imposed at a time when the agricultural sector is in an unsettled situation: the production
of some export crops, notably coffee and cocoa, suffers from falling productivity and years of inadequate
investment. As credit availability is currently a problem in Cameroon, the extra revenue associated
with the CFA franc devaluation might provide a partial answer to the sector's present investment needs,
which could be undermined by the export charge.
(a) Banana
23. Cameroon's banana industry is of importance, producing about 520,000 tonnes annually, mostly
for local consumption.8 Export-oriented plantations, covering some 3,600 hectares and concentrated
in south-west Cameroon, went through a period of decline from the early 1960s to the mid-1980s due
to the loss of British markets and the conversion to different banana varieties. A major restructuring
of the sector began in 1987, including small reductions in producer prices. Marked improvement have
since occurred: between 1988 and 1991 exports more than trebled, from about 36,000 tonnes to some
112,000.9 Exports increased again in 1992. to about 120,000 tonnes, and were expected to remain
at that level in 1993.
24. The growth of the commercial banana industry has been based on large gains in both yields
and quality. Underlying these gains were improvements in marketing, privatisation, and new investments
in production infrastructure. Marketing was improved with the creation in the late 1980s of the
Association de la banane camerounaise, which groups both private and state-owned producers. With
a minimal administrative structure, the Association maintains an office in Douala and another in France
to overlook the smooth functioning of maritime transport and customs-related matters for banana exports.
Investment in infrastructure has improved irrigation, transport and storage at the port of Douala. A
research centre was also established in 1989; recently the European Union (EU) provided funds to
improve the centre, including hiring and training personnel, and purchasing equipment.
7Wood in logs is subject to an exit duty of 25 per cent of an official reference value.
8Annual average between 1990 and 1992 as shown in UNCTAD, 1994 Commodity Yearbook.
9Data from FAO, Banana Statistics, June 1994. C/RM/S/56 Trade Policy Review Mechanism
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25. The Government liquidated in 1987 the Office camerounais de la banane, its assets were sold
in 1991 to a group of private investors led by the group Compagnie fruitière. As a result, three new
plantation companies were created'°, legally separated but with the same shareholders and, for two,
the same management. Together, the three companies manage some 60 per cent of the commercial
banana area and account for about 70 per cent of the production and exports. The Government has
also brought in an international cornpany as a partner and technical adviser to the Cameroon Development
Corporation. This partnership accounts for some 40 per cent of the cultivated banana area and some
30 per cent of production; Del Monte is responsible for marketing the product.
26. Almost the entire commercial banana output is exported to the EU. France used to take nearly
all that production, but Italy became a major market in 1991 and 1992. In the latter year, France
purchased some 72 per cent of Cameroon's banana exports, Italy about 22 per cent and the United
Kingdom most of the balance.11 The high concentration of Cameroon's banana exports in the EU,
in particular France, reflects the access terms of the Lomé Convention. Under the Convention,
Cameroon is assured an export market of about 80,000 tonnes, a quota that varies according to demand
and past export levels. This arrangement appears to be highly lucrative for banana producers in
Cameroon: the difference between the price they obtain under the quota arrangement and that attainable
under free market conditions is in the order of CFAF 100 per kilogram of bananas delivered in Europe.12
Given official export volumes in 1992, this was equivalent to a transfer (economic rent) of just under
CFAF 11 billion from consumers in Europe to traders and Cameroon's banana producers, comparable
to the value of Cameroon's banana exports in that year. 13
27. Cameroon has requested a sizable increase in its banana quota under the Lomé Convention,
to some 215,000 tonnes. The increase would take into account productivity gains alone, as the area
under cultivation has changed little. Cameroon producers argue that the quota increase is alsojustified
by the large investments, of some CFAF 16 billion, much of it by European financial backers to relaunch
the banana sector. The issue is of some urgency because the surge in Cameroon's output since 1990
has already caused frictions with other Lomé Convention banana producers, who argue that Cameroon
has repeatedly exceeded its quota, and with the EU, which authorized France in December 1992 to
apply safeguard measures halting Cameroon's excess imports (Chapter VI(2)).
28. The devaluation of the CFA franc could translate into lower production costs and may make
Cameroon bananas competitive in markets outside the EU. The authorities have indicated that Cameroon
aims at banana exports of between 200,000 and 250,000 tons a year. However, Cameroon is increasing
its output at a time when, according to the Food and Agricultural Organization (FAO), the already
competitive world banana market is heading into surplus. In addition, according to the authorities,
even with the devaluation, Cameroon's production costs are not significantly lower than in banana
producing countries competing in free world markets; but Cameroon has the advantage that the quota
rents earned in the EU market may allow it to finance its sales into other markets, and thus expand
production even if unit costs are higher than world market prices.
'°The Société de plantations nouvelles du Penja; Plantations du Haut Penja; and, Société bananière du Moungo.
"Marchés Tropicaux, 8 July 1994.
12This was the difference between the import price in France in 1992 and the corresponding price in Germany,
which was largely a free market at the time. The price data is from FAO's Medium Term Outlook for World
Trade in Bananas.
13According to the authorities, in 1992 banana exports totalled CFAF 13 billion or 108 thousand tonnes. Republic of Cameroon C/RM/S/56
Page 69
29. Banana imports are subject to a tariff of 30 per cent, the highest in Cameroon's tariff schedule.
Such protection to one of Cameroon's best export performing activities would appear unnecessary,
except that before the CFA franc devaluation Cameroon's banana producers may not have been in the
position to compete, even in their regional market, with bananas imported from low cost producers.
(b) Coffee
30. Coffee production covers an area of around 400,000 hectares, with the greatest concentration
of coffee growers in the west and south of Cameroon. Although output has been decreasing since
the mid 1980s, the authorities estimate that coffee production could reach about 70,000 tonnes in
1993-9414, following a very poor harvest in 1992-93 when output was some 48,000 tonnes. Output
in 1991-92 was about 115,000 tonnes, or some half the volumes produced in the mid 1980s.15 From
80 to 90 per cent of coffee grown is robusta, the balance being arabica. Almost 95 per cent of
Cameroon's annual coffee crop is exported.
31. In the past, particularly through the mid-1980s, artificially high producer prices encouraged
farmers to adopt input intensive techniques, which sustained yields exceeding the average for African
producers. However, in recent years output has been seriously affected by climatic conditions, coffee's
vegetative cycle and, more importantly, the lowering of producer prices. Falling prices have discouraged
farmers from buying vital inputs, particularly fertilizers and insecticides, and yields and quality have
decreased. Farmers have failed to carry through government programmes to replant coffee trees,
abandoning the care of their trees or, especially in the more densely populated arabica growing areas,
uprooting coffee plants to replace them with food crops.
32. The restructuring of the coffee sector has been under way since 1989, with in addition the EU
partly financing a reduction in employee numbers and a payment of arrears to growers. The reform
has led, inter alia, to the replacement of the Office national de commercialization des produits de base
(ONCPB) by the Office national du café et du cacao (ONCC). This new Office performs representational
and export promotion activities abroad, undertakes quality controls for export products, maintains export
statistics and an information system on world and domestic prices, and carries out studies and monitors
marketing campaigns. Its activities are financed by the export charge, service charges, and own
resources.
33. Because of the downward trend in world prices and the Governments decreasing capacity to
provides subsidies, domestic producer prices for coffee have been falling substantially since the late
1980s. Producer prices for robusta coffee were drastically cut between 1988-89 and 1989-90, from
CFAF 420 to CFAF 250 per kilogram. Further cuts in producer prices followed, with robusta prices
falling by a third at the start of the season 1993-94, to CFAF 100 per kilogram from CFAF 155 for
1992-93. Together with a complete liberalization of the domestic price of arabica coffee, a new pricing
system was introduced in 1991-92 for robusta coffee (and cocoa), designed to better reflect world market
prices (Box V. 1). The system is to be replaced with a full liberalization of the robusta coffee (and
cocoa) price, at latest, at the start of the 1995-96 growing season; the necessary legislation for this
liberalization has been drawn and awaits enactment by the National Assembly to give it effect.
14October to September production year.
15F.O. Licht's International Coffee Report, various issues. C/RM/S/56
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Trade Policy Review Mechanism
34. Implementation of the coffee restructuring programme has encountered problems, including
lapses in quality control and the maintenance of prices above their equilibrium level. Moreover, the
withdrawal of the ONCPB has apparently not always been beneficial, with problems allegedly arising
in the awarding of licenses to middlemen on grounds other than technical expertise.16
35. Until late 1993, exports were adversely affected by falling world coffee prices. According
to the authorities, the value of exports fell from some CFAF 200 billion in 1986 to CFAF 25 billion
in 1991 and 1992, the result both of falling world prices and a 50 per cent decline in volume. Other
estimates indicate that coffee exports fell to about CFAF 16 billion in 1992-93, in part as a result
of problems with the implementation of the sector's reform program.17 Rising world prices and the
CFA franc devaluation in early 1994 pointed to a partial recovery of exports for the 1994-95 season.
36. By value, about 90 per cent of coffee exports went to the EU in 1991 and 1992.18 The four
largest national markets were France, Germany. Italy and Spain, which together took 75 per cent of
Cameroon's total coffee exports. The most important destinations outside the EU were Algeria and
the United States, each accounting for less than 3 per cent of total exports.
37. Cameroon liberalized the export of coffee in early 1994, subject to compliance with international
quality standards and other administrative requirements (Chapter IV(3)(i)). Coffee growers are allowed
to export their crop directly, rather than through approved dealers; growers simply have to submit
a request to the Ministry of Industrial and Commercial Development. The ONCC is charged with
monitoring and helping with the marketing of coffee abroad. As noted, state-guaranteed minimum
producer prices for coffee farmers are to be removed at the start of the 1995-96 season, at latest.
16Economic Intelligence Unit, Country Report: Cameroon, First quarter 1993.
17Marchés Tropicaux, 15 April 94.
18The latest years for which final Comtrade statistics were available.
Box V. 1: The coffee and cocoa pricing system
A new pricing system was introduced in 1991-92 for robusta coffee and cocoa; concurrently, the price
of arabica coffee was liberalized. The system establishes a producer price, a reference price and the
so-called "incompressible" unit costs. The reference price is set according to sales contracts already
negotiated by Cameroon's private exporters; the "incompressible" unit costs comprise intermediate costs,
traders' margins and taxes. Both the reference price and "incompressible" unit costs are set by the
Government in consultation with the Office national du café et du cacao and the Conseil
interprofessionnel du cacao et du café. The producer price is computed as the reference price minus the
incompressible" unit costs, it is published by the Government by decree, and is the minimum price paid
to farmers. This system is to be eliminated, at latest, with the start of the 1995-96 growing season.
A price stabilization mechanism is also part of the pricing system, introduced in 1991-92. A coffee
(robusta) or cocoa exporter is guaranteed the reference price. If the world price is lower than the
reference price on the day of export, the exporter is entitled to the difference. If the world market price
is higher than the reference price, the exporter pays the difference into a stabilization fund. Republic of Cameroon C/RM/S/56
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38. Cameroon participates in the coffee "export retention plan" agreed in 1993 within the framework
of the Association of Coffee Producing Countries. The plan aims at achieving market equilibrium
by regulating supply through participant countries withholding a percentage of their export sales. This
percentage is a function of the level of a world "price indicator": retention ranges from 20 per cent
for prices below US$0.75 per pound to zero per cent at prices above US$0.85 per pound. Exports
from countries participating in the plan are subject to a certificate of origin. According to the Cameroon
authorities, the retention plan has encouraged a dual market in which non-members sell at considerable
discounts and create shortages of certain grades of coffee; overall, however, the plan does appear
to have helped increase, at least temporarily, world coffee prices.
39. Coffee production appears to receive significant effective protection from Cameroon's tariff
structure: imports of coffee beans are subject to a tariff of 30 per cent while the tariff on fertilizer
is 5 per cent and that on insecticides ranges from 5 to 20 per cent.
(c) Cocoa
40. Cameroon is among the ten largest cocoa producers in the world, although its share of world
output has fallen with the expansion since the mid-1980s of cocoa production in south-east Asia. In
Cameroon. cocoa is grown on about 350,000 hectares in the centre and south west. Most production
takes place on small plantations. Output was erratic during the 1980s, with a downward trend emerging
during the 1990s.
41. High producer prices encouraged costly production that was supported by considerable and
constant government subsidies. Restructuring efforts have been underway since 1989, in line with
similar efforts in the coffee sector, including the replacement of the Office national de commercialization
des produits de base (ONCPB) by the Office national du café et du cacao (ONCC). Producer prices
have also been reduced to bring them progressively into line with the world market. Between 1988-89
and 1989-90, cocoa producer prices were cut from CFAF 420 to CFAF 250 per kilogram, a fall
of some 40 per cent; subsequently producer prices were further progressively reduced, to CFAF 150
per kilogram in 1993-94. A new pricing system was introduced in 1991-92 for cocoa (and robusta
coffee) designed to reflect world market prices (Box V. 1); the cocoa price is to be liberalized, at the
latest, at the start of the 1995-96 growing reason. A government agency, SIC Cacao, is involved in
the purchase and transformation of cacao.
42. The successive cuts in producer prices and liberalization of the marketing and export circuits
contributed to a decline in output. Cocoa yields have also diminished, a result of the failure of replanting
programmes to keep pace with the ageing of plantations: according to the authorities, 45 per cent of
cocoa bushes are more than 20 years old. Production of cocoa beans reached a peak of about 133,000
tonnes in 1987-88, followed by continuous falls until 1992-93; production was expected to recover
slightly, to about 100,000 tonnes in 1993-94 and to hold at this level.19 Judging by this increased cocoa
output, the restructuring programme has had positive results. However, there still appear to be problems
with scaling down the regulatory system previously maintained by the ONCPB, which could undermine
the premium quality status of Cameroon cacao; recent reports indicate a falling butter content.
43. Exports were adversely affected by output reductions in the period prior to 1992-93 and by
weak world prices. Exports of cocoa beans fell from just under 100,000 tonnes in 1988-89 to slightly
less than 90,000 tonnes in 1991-92 and 1992-93. The strengthening of world prices since mid-1993
19 International Cocoa Organisation, Quarterly Bulletin of Cocoa Statistics. C/RM/S/56 Trade Policy Review Mechanism
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appears to have resulted in improved export revenues in 1993 and is likely to result in an upturn in
revenue from cocoa bean exports in 1994-95.21 The EU takes virtually all of Cameroon's cocoa exports,
accounting for some 98 per cent in 1992; the Netherlands is the largest single market, with a share
of 75 per cent of exports, followed by France, Germany and Spain.
44. Cocoa exports were formerly subject to marketing controls requiring exporters and private
purchasing agents to be licensed by the Government. The export of cocoa was liberalized in early
1994, subject to compliance with international quality standards and other administrative requirements
(Chapter (IV)(3)(i)). The ONCC is charged with monitoring the marketing of coffee and cocoa. Cocoa
imports are subject to a tariff of 30 per cent; producers also benefit in relative terms from lower tariff
rates for inputs such as insecticides.
45. Cameroon has joined the plan adopted in 1993 by the International Cocoa Organisation that,
according to the authorities, aims to manage the structural over-production, which in their view was
responsible for the fall in world cocoa prices up to mid-1993. The plan is initially to last five years;
it requires producers to establish national programmes, which are submitted "for examination" to a
production committee that is charged with the co-ordination of the programmes and recommends
measures that may contribute to the stabilization of the marker. The plan uses a buffer stock as its
principal price-stabilizing mechanism; the stock is financed by a levy on commercial transactions.
There is also a supplementary mechanism based on the withholding from the market of national stocks,
which are not purchased by the buffer stock but placed under its control. The authorities note that
this is the first commodity agreement in which the agreed prices are expressed Special Drawing Rights
(SDRs), which they believe avoids distortions from excessive exchange rate fluctuations.
46. It is an open question whether the International Cocoa Organisation plan will stabilize world
cocoa prices, even in the short run. In fact, prices could come under pressure from a combination
of increased supplies and stagnant, or even falling, demand. Supply is likely to expand as a result
of increasing production in south east Asia and the probable cost reducing effect of the CFA franc
devaluation in franc-zone cocoa producers. Demand is threatened by the possibility of the EU allowing
an increased use of vegetable oils other than cocoa butter in the manufacture of chocolate products:
according to some estimates, this could reduce word consumption and prices by up to 20 per cent.21
The effect on Cameroon cocoa producers would probably be significant given their all but total reliance
on the EU market.
(d) Cotton
47. In Cameroon, cotton is produced by small-scale farmers almost exclusively in the heavily
populated north; productivity is high and the raw cotton is considered to be of good quality. Although
cotton production has been irregular, an upward trend prevailed in the 1980s, with output reaching
a record level of about 165,000 tonnes of cotton-grain in 1988-89. Production during the 1990s has
been lower, averaging about 110,000 tonnes a year. Domestic producer prices started falling in 1986-87
and were considerably reduced between 1988-89 and 1989-90, from about
CFAF 123 to CFAF 91 per kilogram.
20Based on the UNSTAT Comtrade database.
21Marchés Tropicaux. 8 July 1994. Republic of Cameroon C/RM/S/56
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48. Marketing, collection and supply of fertilizers and other inputs is the responsibility of the Société
de développement de cotton (SODECOTON), whose capital is held by the Government (70 percent)
and a foreign company. SODECOTON buys the cotton crop at producer prices set by the Government
and is the sole authorized exporter. The producer price plus SODECOTON's operating costs generally
exceed export prices and the company has incurred substantial losses in recent years. Financial assistance
to the cotton sector amounts to some CFAF 50 billion a year. Unlike for coffee and cocca, no
substantial changes have been made in recent years in the arrangements governing the cotton sector,
although a performance contract signed by SODECOTON with the Government in 1989 has led,
according to the authorities, to some improvement in the company's cost structure.
49. Exports of cotton in 1992 amounted to some US$54 million, down from about US$70 million
in 1991. Countries in Asia are the main market, absorbing some 60 per cent of exports in 1992, followed
by the EU, with 27 per cent. Cotton imports are subject to a 10 per cent tariff.
(e) Palm oil
50. Production of palm oil has remained reasonably steady since the mid-1980s at about 90,000
tonnes a year, about twice the level of the late 1970s. Five companies are engaged in the production
of raw oil, with the parastatal Socapalm accounting for about half the output. The other major producer
is also a parastatal, the Cameroon Development Corporation (CDC). The industry is an important
employer; the production of raw oil supports some 160,000 farmers. Wholesale and producer prices
were fixed by the Government until June 1994, since when prices have been liberalized.
51. Since the mid-1980s, domestic prices have been reduced, from CFAF 271 per kilogram in
1984-85 to CFAF 191 per kilogram in 1991-92; incentives to growers have decreased, import
competition has strengthened, and plantations have aged. Restructuring measures are being implemented
and performance contracts have been signed between the Government and Socapalm and CDC. A
plantation rehabilitation programme is under consideration to address the anticipated shortfall in crude
oil production by the turn of the century.
52. Cameroon's exports of palm oil were some US$10 million in 1990, US$5.5 million in 1991
and US$7 million in 1992. The EU and countries in Africa are the main export destinations. Cameroon
placed a ban on palm oil exports in late 1994, following reported domestic price increases of some
400 per cent.22 A committee was set up to monitor production and distribution and ensure that the
export ban was respected.
(f) Rubber
53. Production of natural rubber has been encouraged by the Cameroon Government and export
prospects have for a long time been considered good, with yields comparable to those of the major
Asian producers. Almost all the crop is exported. Output has increased in recent years, to about 45,000
tonnes in 1992-93. Producer prices reached CFAF 322 per kilogram in 1988-89 but had fallen to
CFAF 225 per kilogram in 1991-92. Prices are free since the start of the 1994-95 season; previously
they had been set by the Government. Again as for palm oil, according to the authorities, rubber
producers do not currently receive direct government subsidies.
22African Economic Digest, 21 November 1994. C/RM/S/56 Trade Policy Review Mechanism
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54. The Cameroon Development Corporation (CDC) and Hevecam, both state controlled, produce
about 90 per cent of rubber output. With world prices down and high transport costs to European
and American markets, both enterprises encountered financial difficulties in the past; in 1992, Hevecam's
unit production costs were in the order of CFAF 310 per kilogram, with resultant losses of about
CFAF 115 per kilogram sold in the world market.23
55. Hevecam signed a performance contract with the Government in 1990, to reduce costs; the
rescheduling cf its long-term debt is under study, as is its investment plan. According to the authorities,
for Hevecam and CDC the devaluation of the CFA franc, providing an immediate boost in receipts,
was necessary for their survival.
56. Rubber exports have been on an upward trend since 1985, with their value about US$37 million
in 1991, US$40 million in 1992, and an estimated US$48 million in 1993. The EU is the major market,
taking some 90 per cent of Cameroon's rubber exports in 1992; France was the largest national market,
with a share of some 40 per cent. Other than the EU, Cameroon's largest market is the United States
with a share of 7 per cent. Cameroon participates in the rubber international commodity agreement,
currently in the process of renegotiation. A relatively low tariff rate of 10 per cent is applied to imports
of natural rubber.
(g) Other export crops
57. Tobacco production, primarily for export to the Netherlands, has been at somewhat less than
2,000 tonnes a year since 1987. Tea is produced throughout western Cameroon, with most output
domestically consumed or exported to Chad, the Central African Republic, Gabon and Sudan; plans
in progress aim at improving quality and increasing exports to other markets. Pineapples are produced
both for local consumption and export, mostly to Europe; such exports, however, appear to have fallen
considerably since the mid-1980s. Europe is thought to be a potentially important market for Cameroon
vegetables that are grown during the European off-season; a venture to process, freeze and export
green beans was recently launched and sales to the EU, though small, appear to be growing.
(iii) Livestock
58. Cameroon's ecology and climate are not ideal for large-scale animal husbandry except for areas
in the north, where livestock makes a significant contribution to the food supply. Cattle and sheep
are predominantly raised by traditional grazing methods although the Société de développement et
d'exploitation des productions animales runs three cattle ranches. The livestock population has been
affected in recent years by the tsetse fly and outbreaks of peripneumonia.
59. The herd has increased in recent years and in 1993 was assessed at almost 5 million cattle,
some 3.8 million sheep, a similar number of goats, and about 1.4 million pigs.24 There are two modern
slaughter houses (Chapter V(4)(i)). Poultry farming appears to be proving an attractive option for
workers laid. off from other activities; the chicken population was some 20 million in 1993, compared
to 18 million in 1991.
23Marchés Tropicaux, 11 December 1992.
24Livestock members are from FAO, 1993 Production Yearbook. Republic of Cameroon C/RM/S/56
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(iv) Fish, shellfish and products
60. There are several constraints to an expansion of Cameroon's industrial fishery. Cameroon
has only 400 kilometres of coast line and these are interrupted by the Equatorial Guinean island of
Bioco and its territorial waters. Moreover, Cameroon's waters are not well stocked, primarily because
they are bypassed by currents carrying plankton and other fish food. In addition, fishing in proximity
of the border with Nigeria is not encouraged. Drought has repeatedly affected yields from inland fishing
areas.
61. Small-scale fishing predominates, with an estimated total catch of just under 92,000 tonnes
in 1991-92; the industrial catch was put at almost 10,000 tonnes in 1989-90 and the freshwater catch
at about twice that volume. At its peak, Cameroon produced 24,000 tonnes of shrimp a year, but annual
production had fallen to slightly more than 1,000 tonnes by the early 1990s, most of which was exported.
The shrimp parastatal, Crevetes du Cameroun, is slated for privatization.
62. Cameroon has minimal secondary processing of fish or other sea products and import
dependence in all fish products is significant. Annual imports of fresh fish are estimated at about 80.000
tonnes, and those of frozen, tinned, smoked and salted fish at some 50,000 tonnes. Cameroon applies
tariffs ranging from 20 to 30 per cent to imports of fish and fish products.
(v) Forestry
63. Cameroon's forests cover some 22 million hectares, equivalent to about 43 per cent of land
area. About one-half of the forest area is licensed for exploitation, of which a fraction is under active
development.25 The forestry makes an important contribution to employment, providing between 35,000
and 40,000 jobs. Forestry operations play an important rôle in local economies, particularly given
the legal requirement that operators undertake social infrastructure works such as roads and schools
construction. Wood products are Cameroon's second largest export and make a crucial and growing
contribution to foreign earnings.
64. The authorities note that some 200 forestry licences were registered, of which slightly over
100 were in operation. The industry includes 61 units at the level of primary transformation, including
plants for the production of plywood and veneer sheets. Cameroon's annual forest production amounts
to some 14 million cubic metres, much of which is used as fuel; some 3 million cubic metres of wood
are for industrial purposes, mostly in the form of sawlogs and veneer logs, although sawnwood, and
plywood and veneer sheeting (wood panels) are also of some importance (Chart V.I).
.
65. Production of industrial roundwood has shown a clear upward trend since 1981, while production
of sawnwood and wood-based panels has fallen since 1986, after increasing during the first half of
the 1980s (Table V. 1). Export volumes for those three product groups have risen substantially since
1986; export values have risen more rapidly than volumes, driven by price increases.
66. About 25 per cent of the volume of industrial roundwood produced in 1991 was exported in
the form of logs; 50 per cent of sawnwood and 30 per cent of wood-panels are exported (Chart V.2).
In value terms, exports of logs are dominant; the wood-panels category is the smallest, but given their
high specific value, the value share of these exports is more important than their volume share.
25FAO (1993), Forestry Statistics Today for Tomorrow, Rome. C/RM/S/56 Trade Policy Review Mechanism
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Table V.I
Production and export indicators for forest products
(ln units as inidicated)
Production Export volume Export value Export Export volume
(thousand tonnes) (thousand tonnes) (million US$) unit value as per cent
(US$ per ton) of production
Industrial roundwood
Average 81-86 2525 489 45 93 19
Average 87-92 2955 574 120 201 19
of which:
Sawnwood
Average 81-86 479 96 15 158 20
Average 87-92 505 140 38 268 28
Wood-based panels
Average 81-86 86 33 14 448 40
Average 87-92 80 23 18 767 28
Average annual per cent change
Industrial roundwood
Average 81-86 3.9 4.1 1.0 -4.6 -0.5
Average 86-92 2.0 8.9 40.2 28.1 7.0
of which:
Sawnwood
Average 81-86 4.1 -1.8 -4.3 -2.2 -1.5
Average 86-92 -1.8 32.5 50.4 15.2 36.3
and
Wood-based panels
Average 81-86 8.6 -11.4 -7.8 11.4 -19.0
Avera e 86-92 -3.4 12.3 20.4 5.0 18.9
Source: FAO. Forest Products Yearbook, 1992. Republic of Cameroon
C/RM/S/56
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Chart V.1
Production of forest products, 1991
Thousand cubic metres
.Other
.Sawlogs and veneer logs
2,290
. Roundwood removals
. 14,287
. Industrial roundwood
3,089
PIywood
48
Veneer sheet
32
Wood panels a)
80
a) Industrial roundwood is used to produce sawnwood and wood panels.
Source: FAO, Forest Products Yearbook , 1992.
Chart V.2
Exports of forest products, 1991
A. Volume (thousand cubic metres)
.
Sawnwood
253
B. Value millionn US$)
Logs
157
Source: FAO, Forest Products Yearbook, 1992.
Plywood
Veneer sheets
22
Wood-based panels
25
Plywood
Veneer sheets
18
Wood-based panels
20
.
Sawnwood
58
Firewood and
charcoal
11,198
.
Sawnwood a)
489 Trade Policy Review Mechanism
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67. The EU is the largest market for Cameroon's exports of wood products, taking slightly more
than 90 per cent of such exports in 1991 and 1992. In 1991, Spain was Cameroon's single largest
customer for sawnwood, while Italy was the largest market for logs and wood-based panels; France
was a large market in all three product categories (Chart V.3).26 Besides the EU, Japan is Cameroon's
most important market for forest products accounting for about 5 per cent of the total in 1992, following
fairly rapid growth in recent years.
Chart V.3
Exports of forest products to selected countries, 1991
Thousand cubic metres logarithmic scale)
100
100
10
0.01
Germany
Belgium
Spain
France
Italy
Netherlands
Greece
Source: U.C.I.P./U.C.B.T.,
European Imports of Tropical Timber, 1992.
68. Most registered forestry firms are foreign with the financial and technical capacity to overcome
infrastructure difficulties and high internal transport costs. According to some estimates, less than
20 per cent of all exploitation permits have been granted to firms in Cameroon, which account for
some 10 to 20 per cent of total production.27 Foreign firms, of which 80 per cent are French, account
for at least 90 per cent of log exports.28 According to the authorities, foreign participation in forestry
has played a positive rôle, although they are concerned at the relatively high proportion of log exports
believing that there should be greater domestic value-added in exports.
26Differences in data sources make Charts V.2 and V.3 not directly comparable, especially for the wood-panels
category.
27Marchés Tropicaux, 11 December 1992.
28EIU (1993) and Marchés Tropicaux, op.cit..
.logs r.sawnwood .veneers & plywood
. Republic of Cameroon C/RM/S/56
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69. Despite rapid growth in wood production in recent years, the Cameroon forest by and large
has not been overexploited. Indeed, a study carried out by the Organisation africaine du bois concluded
that Cameroon has the potential to exploit its forests further without undermining the rate of regeneration
of trees, assuming that a well-thought-out forestry policy is implemented. This favourable situation
has arisen from a relatively conservative policy of forest management and from natural impediments
to exploitation. The forested areas include a large number of species without a dense population of
a single type: around 300 different species are of commercial value, of which only 30 are exploited
and three account for around 60 per cent of production. Terrain tends to be uneven and without the
waterways suitable for inexpensive transport of timber to industrial centres and ports.
70. These are also other problems. According to a study completed earlier in 1993 by USAID,
25 to 30 per cent of each felled tree is lost at the logging site and total wastage from felling to sawn
timber is as high as 65 to 75 per cent. The study concludes that the current economic crisis has had
a particularly negative effect on forest management, as exploitation has been stepped up to try to offset
the fall in earnings from other commodities. According to Riddell (1990), the forest industry has also
suffered from the absence of a comprehensive timber strategy, low technical proficiency, obsolete
machinery and an inadequate secondary road network in the timberland. To these, should be added
the effect of the export tax on raw and semi-processed logs of 25 per cent of an official reference price
(Chapter IV(3)(ii)) and scarce and expensive financing.
71. In an effort to permit the forest industry to achieve its real potential, a new forest code was
adopted in January 1994 (Box V.2). The code improves environmental protection and the integral
management of forest resources while seeking to enlarge the direct economic contribution of the sector:
in particular, producers are required to transform in place at least 70 per cent of their production and
there are provisions to ban exports of unprocessed wood by the year 2000. Trade Policy Review Mechanism
C/RM/S/56
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72. Cameroon's log export tax and the domestic transformations requirement are justified by the
authorities as a mechanism to encourage local value added, job creation and secure supplies for local
industries. It should be noted that the proportion of transformed products is already substantial: of
total production of some 3 million cubic metres of industrial roundwood in 1991, logs exported accounted
for just under 0.8 million cubic metres (Charts V.1 and V.2), with the remainder for sawnwood,
wood-panels, construction and other activity. In other words, over 70 per cent of log production is
already transformed in Cameroon. Export restrictions are likely to increase this rate of transformation,
but probably at the expense of other activities.
73. Based on other countries' experience, export restrictions on unprocessed logs provide effective
protection to downstream wood-processing activities.29 They do this by lowering domestic log prices
and thus providing wood-processing activities with subsidized inputs. Those subsidies are funded from
transfers of resources from the community as a whole, in the form of forgone royalties due to lower
29Sec. for example, GATT (1995), Trade Policy Review - Indonesia, Geneva, forthcoming.
Box V.2: Cameroon's new forest legislation
Law No 94/01 of 20 January 1994 introduced a new forest code. The code recognizes four forms of
forest ownership: state, communal, town-related and private. Under the new scheme, forest areas are
divided into permanent and non-permanent forest. The first category must cover at least 30 per cent of
Cameroon's territory and includes national and communal forests. Non-permanent forests include private
lands, granted after an environmental impact assessment is undertaken. The exploitation of all forests is
subject to the previous approval of a management plan by the authorities.
Forest exploitation is subject to a prior inventory of resources in place. Exploitation licences are only
granted to Cameroon residents, or firms with headquarters in Cameroon and whose capital composition is
known by the forest administration. Production volumes are agreed in exploitation agreements, which
have a duration of 15 years and are re-evaluated each three years. Forestry concessions, the territory
over which an exploitation agreement applies, are subject to the approval of a competent commission.
Certain forestry concession are reserved to nationals and in no case may exceed 200,00 hectares. The
recipient of a forestry concession is required to conclude a provisional agreement before the signature of
a definitive one. The temporary agreement has a maximum duration of three years and requires the
concessionary to undertake certain works, in particular the establishment of industrial plants to transform
wood. Such plants and the social address of the firms should be located in the region of exploitation.
Forestry concessions require the payment of a security bond. Several fiscal charges are applied to
forestry exploitations: (i) a territorial levy, (ii) a felling fee, (iii) a progressive surtax on the exportation
of non-transformed forest products, (iv) a contribution to social infrastructures, (v) a charge for the forest
inventory, and (vi) a contribution to management operations. Most of these charges are fixed annually in
the Law of Finances.
As a general rule, 70 per cent of wood logs are to be locally transformed during a transitory period
ending in January 1999. Afterwards, exports of wood logs are to be prohibited. Exports of
non-transformed special forest products is subject to an annual prior authorization and to the payment of
the progressive surtax, fixed as a function of exported volumes. By January 1997, the authorities are to
conduct an evaluation of forestry exploitations to verify compliance with regulations concerning the local
transformation of all wood logs; serious breaches will lead to the suspension or annulment of
concessions.
The Law is under review by the authorities, to streamline its administration and improve its transparency. Republic of Cameroon C/RM/S/56
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prices, in favour of wood-processing activities. Moreover, as some of the assisted activities are, by
definition, uncompetitive at world prices and have relatively low efficiency levels, part of the nation's
natural wealth risks being wasted.
74. Imports of wood products, in raw, semi-processed and processed form, are subject to a tariff
of 30 per cent.
(3) Mining (including petroleum)
75. The mining law of 1964 is complex and provides for extensive state intervention. All mineral
resources are owned by the State, but private participation is allowed through four different mining
régimes: prospecting, exploration, extraction and concession. Mine operators pay a number of charges,
including area-related duties and ad valorem royalties.
76. The petroleum industry is of great importance to Cameroon, accounting for about half of
its total exports. However, investment in the sector has stagnated and both production and reserves
have declined since the mid 1980s: halting these trends has been one of the Government's main priorities
in recent years. By contrast to petroleum, most non-fuel mining activity is on an artisanal scale, with
little domestic or foreign investment. To re-launch the sector, particularly by making private investment
more attractive, the Government is committed to reforming the mining legislation now in place.
(i) Petroleum and other fuels
77. Cameroon is a modest petroleum producer, with its oil fields located between the major oil
provinces of Nigeria and Gabon, Cameroon's petroleum extraction first came on stream at the end
of 1977 in the Rio del Rey basin, near the frontier with Nigeria; several smaller fields came into
production in the first half of the 1980s. That period was also the most active for exploration: official
data shows a rapid expansion of seismic work and exploration and appraisal wells between 1978 and
1982. Exploration and development subsequently declined to very low levels, mainly as a result of
low oil prices and an unattractive hydrocarbons code. A range of amendments to that code were
introduced in 1990. New exploration permits were awarded in 1991 and exploratory seismic and drilling
work resumed, although not at levels comparable to those of the early 1980s.
78. At the end of 1992, Cameroon's remaining identified oil reserves were about 56 million tonnes
(just over 400 million barrels), equivalent to some seven years of production. Cameroon's petroleum
production is not, however, likely to likely by about the turn of the decade; rather it is expected to
stabilize at between 80,000 to 100,000 barrels per day, depending on the degree to which exploration
is successful.
79. Production of crude petroleum increased rapidly from 1980 and peaked in 1985. when the volume
and value of petroleum exports also reached record levels (Chart V.4).30 World petroleum prices fell
sharply between 1985 and 1986: the unit value of Cameroon's oil exports falling from just under US$26
per barrel to US$12.75. Largely as a result of this price decline, the value of Cameroon's oil exports
halved between 1985 and 1986.
30Chart V.4 is based on Cameroon's official data on oil production and exports, which until recently were
kept confidential. C/RM/S/56 Trade Policy Review Mechanism
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Chart V.4
Production, exports and consumption of crude petroleum,
1980-94
Exports Domestic consumption (DC)
a. Volume (thousand barrels per day)
200,000
150,000
100,000
50,000
.
DC from domestic oil DC from imported oil
.
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
b. Value (USS million)
2.000
1.500 __
.
1.000
500 .
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994
Source: Official Cameroon data for the years from 1985 on (1994 extrapolated from first seniester);
GATT estimates for the years before 1985, based on data from OPEC and British Petroleum.
Production
. Republic of Cameroon C/RM/S/56
Page 83
80. Lower prices sharply reduced exploration and, given Cameroon's modest oil reserves, production
volumes started to trend down from 1986 onwards. Export volumes initially also fell, but as Cameroon's
refinery increased its use of foreign crudes to supply the domestic market, they rose to peak again
in 1990. By that year, petroleum prices had recovered somewhat, which resulted in the value of
Cameroon's exports reaching its second highest level ever in 1990. Thereafter, however, falling
production volumes resulted in reduced export volumes, which combined with weaker world petroleum
prices to lower the value of Cameroon's petroleum exports by about 40 per cent between 1990 and
1993.
81. The fall in the value of petroleum exports between 1990 and 1993 would have been larger
had Cameroon's refinery not increased its use of imported crude oil during that period, thus freeing
petroleum for export while increasing petroleum imports. Official estimates indicate that domestic
consumption of petroleum varied between about 15,000 and 22,000 barrels per day during the 1990-1993
period; imported crude petroleum supplied about 40 per cent of that consumption in 1990, and between
70 and 80 per cent afterwards. These high shares are largely explained by Cameroon's refinery being
better suited for imported than local crudes (Chapter V(4)(v)).
82. Government participation in petroleum production is through the state hydrocarbons corporation,
Société rationale des hydrocarbures (SNH). The SNH was created in 1980 with the main objectives
of promoting hydrocarbon-related activities in Cameroon and managing the State's interest in the
petroleum sector. The corporation operates under the direct supervision of the Presidency of the
Republic. SNH's relationship with private petroleum companies is defined in the framework of
association contracts for exploration, production and export activities (Box V.3). At the end of 1993-94,
state participation in petroleum extraction consisted of SNH's 20 per cent share in joint ventures with
four foreign firms.
Box V.3: Contractual terms and conditions for petroleum exploration
Société nationale des hydrocarbures (SNH) operates contractual instruments with international oil
companies (IOCs) that combine elements of production sharing and concessional terms. Exploration
permits are granted for four years and are renewable up to three times, each for a maximum of four
years. Mining concessions are granted for twenty-five years, and renewable. Exploration permits and
mining concessions are linked contractually. Exploration permits spell out minimum seismic
commitments and a timetable for well development. The fiscal arrangements are:
- lOCs assume full financial risks in the exploration phase;
- SNH may choose to meet its share of production cash calls either in cash or in crude oil;
- after commerciability is declared and production is established, the revenue stream is split
between lOCs and the Government in proportions stipulated in the negotiated contractual
instruments;
- cost recovery by the IOCs takes place out of the Government's initial production share; and
- IOCs are guaranteed a negotiated level of "mineral rents".
The general framework for contractual agreements in Cameroon's petroleum industry appears to allow a
large degree of discretionary action to SNH. This makes accountability an issue, contractual
arrangements more complex, and may require repeated renegotiations as the economics of oil fields
change. This system places a considerable share of the financial risk on the lOCs, leaves them with a
degree of uncertainty on the stability of their contracts, and thus, decreases the available mineral rents to
the Government. A system based on collecting directly a share of those mineral rents through a resource
royalty might be more appropriate in Cameroon. C/RM/S/56 Trade Policy Review Mechanism
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83. Until 1990, the petroleum industry was heavily "taxed". Conceived during the period of rapid
growth, the earlier contractual agreements earmarked almost 87 per cent of profits to the Government,
which reimbursed operators the exploration expenses leading to production only if (and from) oil that
came on line, i.e. private operators were responsible for all exploration risks. As lower petroleum
prices made exploration under those agreements unattractive. Agreements signed since 1990 have
increased the share of profits reserved to the operators, required SNH to pay for some exploration
work, and relaxed restrictions concerning the use of foreign currencies and the repatriation of earnings.
Petroleum companies have also been granted fiscal advantages and greater autonomy to manage their
operations.
84. A tariff of 10 per cent applies to imports of crude petroleum; a special import tariff of
15 per cent and other levies apply to refined petroleum products (Chapter V(4)(v)).
85. Cameroon has important reserves of natural gas. Development plans were drawn in 1982 but
the required investment of several billion US dollars to build a liquified natural gas (LNG) plant and
the depressed state of the world LNG market have led to their indefinite deferral. Feasibility studies
have been conducted to use the natural gas as fuel in domestic industry or to make such products as
fertlizers or methanol, but without result so far. The authorities consider such projects feasible provided
a policy to encourage gas consumption by selected firms is adopted and foreign operators are found
with the expertise and willingness to share in both the technical and economic risks of the projects.
86. There are plans to construct a 1,000 kilometres pipeline, of which some 850 kilometres would
be in Cameroon, to carry oil from Chad across Cameroon. A new company is being set up, the
Cameroon Oil Transportation Company, to build and manage the pipeline. In Cameroon, in addition
to the pipeline itself, the project would involve pumping stations and storage and loading facilities.
Deep water facilities are envisaged to handle large tankers. The cost of the pipeline regiment in
Cameroon is in the order of US$1.8 billion, against possible receipts of US$1 a barrel for transit rights.
(ii) Non-fuel minerals
87. Cameroon's aluminium smelter depends on bauxite supplies from Guinea (Chapter V(4)(vii)).
Cameroon has potentially commercial bauxite deposits in Adamaoua Province but their location, some
800 kilometres from the coast, is a major constraint. The Government is considering plans to exploit
those reserves and a consortium has been formed to formulate a project. Cameroon also has important
unexploited deposits of high-quality iron ore and of uranium reserves. There are several large limestone
deposits in northern Cameroon, and these are mined to supply the cement plant (Chapter V(4)(vi)).
Tin is mined on a artisan scale; studies were conducted to raise output but plans were abandoned after
reserves proved lower than expected. Alluvial gold has been discovered in various regions in eastern
Cameroon; reserves are being evaluated and, if viable, may be exploited on an industrial scale. Illegal
gold mining appears to be considerable; the Minister for Mines is reported to have stated that some
42,000 miners are engaged in gold smuggling from the Eastern province at an annual cost to the
Government of some US$13 million.31 Diamonds also appear to have been sporadically found and
illegally exported.
31African Economic Digest, 29 August 1994. Republic of Cameroon C/RM/S/56
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(4) Manufacturing
88. Manufacturing accounts for about 20 per cent of Cameroon's GDP. Since 1986 the sector
has been adversely affected by the contraction of the domestic economy and the loss of competitiveness
in foreign markets. Although the sector's evolution is difficult to quantify because of the paucity of
up-to-date information32, according to the authorities, between 1984 and 1992 industrial production
fell by 14 per cent, accompanied by large drops in production, investment, employment and profit
margins; they characterized the situation as disastrous and one of growing de-industrialization.
89. The Syndicat des industriels du Cameroun (Syndustricam), whose members include most of
Cameroon's large and medium-size industrial firms, paints a bleak picture of the manufacturing sector:
turnover, exports, salaries and employment all fell between 1985 and 1993 (Chart V.5).33 Export
performance was highly variable, especially exports to the CACEU region, probably due to the relatively
small volumes of trade involved. The view that Cameroon's manufactured exports suffered from a
relatively high real effective exchange rate before 1994 is consistent with Syndustricam data for 1985-93
showing Cameroon's exports to other CACEU members, conducted in the region's common currency.
experiencing a much smaller average fall than exports outside the region. The data also implies an
upward trend in average salaries between 1985 and 1993, which may have further undermined the
competitiveness of Cameroon's manufacturing.
90. Over the years, the competitiveness of local manufacturing has been affected by distortions
in the incentives régime, resulting in a strong anti-export bias. It would appear that until recently the
greatest encouragement was being given to the most import-dependent manufacturing activities, which
nevertheless failed to maintain or win market share abroad. Cameroon's trade and fiscal régimes,
including various export taxes, thus encouraged import substitution and the use of up-market, capital
intensive technology in mainly inwardly-oriented activities, at a high cost to taxpayers.34
91. In its first post-independence decades, Cameroon saw the private sector as an engine of
development, but with the Government intervening to "mobilize, define and direct'' privateefforts within
the framework of five-year industrial development plans.35 Public and parapublic enterprises came
to dominate a broad range of manufacturing industries, such enterprises numbering over 140. State
involvement is also believed to have provided an additional instrument of trade policy: enterprises
with state participation, total or partial, allowed the Government to control foreign trade, thus seeking
to improve the terms of trade through the use of its monopoly power.36
32The latest industrial census was carried out in 1985-86.
33The annual average drops during that period were, in per cent: turnover 3.5, total exports 6.7, exports
to other CACEU members and salaries 1.9, and number of employees 5.4.
34Riddell (1990).
35Semen (1990).
36Gankou (1991). 95-0002 MF
95-0003 MF
95-0004 MF
95-0005 MF
95-0006 MF
95-0007 MF
95-0008
95-0009 MF
E
E
E
E
E
E
E
E
F
F
F
F
F
F
F
S
S
S
S
S
S
S
C/RM/S/056
C/RM/M/053
GW/013
TE 011
TBT/M/047
L/7437/Rev.03
Administrative Memo 864
PC/W/031/Rev.01
not on Microfiche C/RM/S/56
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Trade Policy Review Mechanism
Chart V.5
Evolution of Syndustricam members
60
40
20
-20
-40
-60
Annual percentage change (to 30 June)
Source: Data provided by the Government.
92. A slightly different policy stance started to emerge in 1983 and led to the introduction of more
attractive investment codes and the progressive liberalization of the trade régime, including the adoption
of CACEU's new tariffschedule in 1994. As petroleum revenues have declined, and particularly since
the late 1980s, plans have also been drawn to reduce Cameroon's dependence on oil earnings by making
industry a more important force for economic growth. This is particularly evident in the latest
Industrialization Master Plan (Plan Directeur d'Industrialisation, PDI) prepared by the Government
in collaboration with the United Nations Organization for Industrial Development (UNIDO) and published
in 1989. The PDI takes account of the following main objectives37:
- maintaining and consolidating Cameroon's food self-sufficiency, which requires giving
priority to agriculture-related industries;
- achieving self-reliance by establishing an independent and integrated industry controlled
by Cameroonians and as impervious as possible to external factors; and
- domestically processing local strategic raw materials, for which Cameroon enjoys an
obvious comparative advantage, with the aim to increasing local value added.
93. The authorities note that they are considering the establishment of an inter-ministerial committee,
Comité de gestion stratégique du PDI, to implement the strategies laid down by the PDI (published
on a five-yearly basis, in principle) and accelerate the decision-making process. According to the
authorities, the committee will generate the basic data for Cameroon's rapid industrialization both through
the identification of the industrial sectors in which Cameroon enjoys a comparative advantage and by
the evaluation of possible development projects according to their economic and financial costs and
37Ministère du Plan et de l'Aménagement du Territoire and Ministère du Développement Industriel et
Commercial, Plan Directeur d'Industrialisation du Cameroun, September 1989, Yaoundé, p 16. Republic of Cameroon C/RM/S/56
Page 87
benefits. They also note other measures to encourage industrialization, such as reductions in the turnover
tax for industries using raw materials, the liberalization of exports and the creation of the Mission pour
l'Aménagement et la Gestion des Zones Industrielles (MAGZI)38; priority is being given to small and
medium enterprises through their preferential treatment in the Investment Code.
94. Cameroon's manufacturing sector is characterized by a large number of medium and small
enterprises: census data in the latest PDI shows that out of 484 industrial establishments recorded,
276 employed less than 50 persons and 438 establishments less than 500 people. Most enterprises
are located in two areas: the Littoral province, mainly around Douala, with 184 firms and the Central
province, around Yaoundé, with 78 firms. Food related industries, including bakery and beverages,
are the most important manufacturing activities, accounting for a large proportion of manufacturing
establishments, employment, value of output and value added (Charts V.6 and V.7). Besides those
activities, wood products as well as lubber and plastics are important in terms of employment; petroleum
and petroleum products are the largest by value of production.
95. The preferred form of government participation has been through the national holding company,
Société nationale d'investissements (SNI). The SNI, however, appears for many years to have
experienced difficulties from its need to balance social, political and economic objectives. The economic
crisis that started in 1985 made that balancing act more difficult and the financial position of many
of the businesses with SNI participation deternorated markedly. By 1991, the condition of SNI's portfolio
was critical: of 84 enterprises, only 54 were under normal operation, with the remaining in the process
of being dissolved or liquidated. According to SNI's latest report, of June 1992, of the 54 companies
in operation, 20 were profitable and only 10 could had growing turnover. The Government is
implementing a medium term plan to address the crisis in the SNI portfolio and other public and
para-public enterprises; work is in progress to privatize (Box IV.4), rehabilitate (Box IV.5) or liquidate
these enterprises.
38Created by Decree No 71/DF/95 of 1 March 1971 as modified by Decrees No 73/483 of 25 August 1973,
76/26 of 19 January 1976 and 80/474 of 5 December 1980. MAGZI has signed a performance contract under
which its activities are provisionally restricted to the management of already established Industrial Zones. C/RM/S/56 Trade Policy Review Mechanism
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Chart V.6
Employment and establishment numbers
(1983-84 census)
Establishments . Employmnent
Transformation of
agricultural products
Bakery and
confectionery
Other food products
Beverages and
tobacco
Textiles and apparel
Footwear and Ieather
Wood products
Papel and printing
Chemicals
Rubber and plastics
Construction materials
Basic metallurg
Mechanical and
electrical machinery
Transport equipment
10000
Source: Plan directeur d' industrialisation du Cameroun, 1989.
1 10 100 1000
number of workers or
establishments Republic of Cameroon C/RM/S/56
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Chart V.7
Value of production and value added, 1985-86
(sample of 51 firms)
Food including
bakery
Beverages and
tobacco
Textiles and apparel
Footwear and leather
Wood products
Paper
Chemicals
Petroleum products
Rubber
Plastics
Construction materials
Aluminium
Mechanical and
electrical machinery
100
value added Value or production
1000
10000
Source :Plan directeur d' industrialisation du Cameroun, 1989.
100000 C/RM/S/56 Trade Policy Review Mechanism
Page 90
(i) Food, beverages and tobacco (Table AV. 1, ISIC 31)
96. Cameroon's diversified agricultural production provides food processing with a wide and
relatively stable base. Taken together with beverages and tobacco, the food industry is Cameroon's
largest manufacturing activity. Syndustricam data show that in general the performance of food-related
industries has deteriorated less markedly than in other activities. A slight recovery in the production
of cacao products, sugar and flour in particular has helped turnover, and employment has held steady
in a number of sub-sectors. After the devaluation of the CFA franc in January 1994, turnover has
increased considerably with the rise in CFA franc denominated sales; activities engaged in the processing
of local agricultural products have apparently registered real turnover gains and those based on imported
materials appear to have declined.
97. The food processing sector enjoyed high protection under the trade régime in place before 1994,
which did not encourage efficiency in the sector. According to Riddell (1990), food processing in
Cameroon was hindered by inadequate transport and cool storage facilities; the irregular supply of
domestic raw materials to industries and to marketing centres; the absence of industrial-scale primary
producing units (except for palm oil, sugar and wheat); an unstructured internal marketing network;
poor control over the quality of marketed products; a small pool of domestic consumers with adequate
purchasing power; and relatively high transport costs to neighboring markets. Many producers also
had excess capacity.
98. The industry may become subject to fairly severe competition as a result of the 1994 tariff
and fiscal reform, a sensitive issue given its relatively large share of formal sector employment. The
average import tariff for the "food, beverages and tobacco" industry, as defined in the International
Standard Industry Classification (ISIC), is 24.5 per cent, one of the highest averages in manufacturing.
Imports of products produced by the industry are relatively minor, and mainly food items, accounting
for just over 15 per cent of total manufactured imports.
99. Cameroon has two modern abattoirs, one in Yaoundé and the other in Douala. However, as
they are far from the cattle areas, transport costs are high and downstream processing is limited.
Although producers have at times suggested that imports created difficulties for them, frozen-meat
,imports appear to be relatively low. In the past, local producers were protected by high import tariffs
on frozen meat; since the introduction of the 1994 tariff, such meat is subject to a 20 per cent tariff.
100. Imports of dairy products are relatively important, with imported milk in powder form being
a major component in supplying domestic needs. One local plant manufactures milk and dairy products
from imported milk powder. Most milk powder products are subject to a tariff of 10 per cent; most
other dairy products, such as yogurt, butter and cheeses, are subject to a rate of 30 per cent
10-. Flour in Cameroon is usually produced from imported wheat, with some of the production
reportedly exported. There are numerous bakery establishment but few have modern or industrial-size
installations. Grain mill products were the largest imported food item in 1992; they are subject to
an average tariff of 23 per cent. Imports of bakery products were not substantial and are subject to
a tariff of 30 per cent.39
102. Sugar is important in domestic consumption. For the past decade, production has been relatively
stable at about 75,000 tonnes a year, close to the domestic need of 80,000 tonnes. Competition from
imports has been a long standing complaint by the industry; imported sugar was priced at some CFAF 80
per kilogram in Douala during the early 1990s while local producers had costs of between
39During a transitory period ending on 30 June 1994, a global tax of 5 per cent applied to wheat flour (HS
1101-0010) and refined sugar in solid form (HS 1701-9910 and 1701-9990). Republic of Cameroon C/RM/S/56
Page 91
CFAF 240 to 300 per kilogram.40 Imports are subject to a tariff of 30 per cent. As part of its public
secter rehabilitation programme, the Government intends to privatize Camsuco, one of the three major
producers in the sector.
103. The latest PDI indicates that the beverage industry is the largest sub-group in the food industry,
both in terms of employment and value added. Per capita consumption of beer in Cameroon is high;
these are some eight breweries, which also manufacture soft drinks. Local purchases of inputs include
sugar, bottles, plastic cases, crown corks and labels, in addition to water and electricity; however,
the share of imported inputs remains high. Brewing activities appear to be efficient and exports have
often been significant. Return on capital in brewing appears to have been good, although boycotts
against some breweries have depressed the sales of the firms affected. Imports of beverage-related
products are substantial, especially in the form of malt, malt liquors, and wines, despite a tariff of
30 per cent for most items (10 per cent for malt). Soft drink imports are not substantial and subject
to a tariff of 30 per cent.
104. Cameroon has two plants to produce cocoa butter and chocolate. By volume, exports of cocoa
products fell between 1990-91 and 1992-93, accounting in the latter year for slightly less than 10
per cent of all cocoa exports.4' The transformation of cocoa beans into cocoa products, such as cocoa
butter or powder,is protected by an import tariff of 30 per cent on cocoa beans and products.
105. Cameroon has some capacity to undertake coffee roasting and a small plant to produce instant
coffee was recently opened. Three firms are involved in the production of refined palm oil but their
capacity is limited; restructuring plans for the palm-oil industry include the establishment of refineries
to supply the internal market. All imports of coffee and palm oil products are subject to Cameroon's
highest tariff rate of 30 per cent.
106. The cigarette manufacturers, SITABAC and BAT. have an installed capacity of between 6 and
7 billion cigarettes per year, but production appears to be significantly lower. BAT imports tobacco
leaves for processing to the packaging stage; SITABAC relies on imported semi-processed tobacco
(scaferlati). According to the authorities, this raised problems in the design of the new tariff schedule,
as scaferlati is raw material for SITABAC, but an intermediate product for BAT (Box IV.3).
Unmanufactured tobacco is subject to a tariff rate of 10 per cent, manufactured tobacco to rates from
10 to 30 per cent, and cigarettes and similar products to a rate of 30 per cent.
(ii) Textiles. clothing and leather products (Table AV. 1, ISIC 32)
107. The textiles, clothing and leather industry appears to have been seriously affected by the
recession. Both employment and the wage bill have fallen uninterruptedly since 1986 and there is
a clear downward trend in turnover and exports. Following the CFA franc devaluation, sale volumes
appear to have decreased considerably, with substantial price increases.
108. Despite the previous use of quantitative restrictions, the textiles, clothing and leather sector
has in fact received little protection due to the high incidence of illegal imports. Recorded imports
of products manufactured in the industry, as defined in the ISIC, are relatively important, especially
those of products from the textiles and wearing apparel sub-groups. Imports of products from the
industry are subject to an average tariff of 23 per cent, with a lower average for the spinning and weaving
sub-groups and a higher rate for textile and knitting products. Tariff scalation under Cameroon's new
1994 tariff is particularly steep.
40Marchés Tropicaux, 11 December 1992.
41International Cocoa Organisations, Quarterly Bulletin of Cocoa Statistics. C/RM/S/56 Trade Policy Review Mechanism
Page 92
109. Cameroon's main cotton producing regions are located in the north; production is largely in
the hands of small operators who sell their output to the parastatal firm SODECOTON, which has
eight ginning plants in the area (Chapter V(2)(ii)). All the weaving, spinning and finishing plants have
substantial government participation through SNI, CICAM is the most important parastatal in the textile
sector; its best years were in the early 1980s when its spinning and weaving mill operated profitably
at full capacity, with a significant share of production exported. Decline ensued as the industry was
affected by obsolescent machinery, high cotton prices, high costs of imported inputs, and the
disappearance of export markets in Nigeria and Zaire. CICAM's subsidiaries, engaged in downstream
processing and blending, have persistently been loss-makers, also suffering from obsolete machinery,
uneconomically short production runs and competition from smuggled fabrics. Estimates range as
high as 80 per cent for the share of smuggled goods in the domestic market for textiles.42
110. Clothing enterprises have been in a critical state for several years. Productivity has remained
low, the industry has been losing market share to imports and several industrial-sized garment firms
have closed. The effective importance of imports is much higher than suggested by official statistics
as unauthorized imports have been very large; competition from artisanal producers is also a problem
as these producers pay salaries below the legal levels, keep no accounts and pay hardly any taxes.
Exports, mainly to other CACEU countries, have fluctuated widely.
111. A. tannery, Notacam, is established in northern Cameroon; another firm, the parastatal Tanicam,
proved uneconomical and was closed in 1993. Shoe manufacturing was also dominated by a parastatal,
Bata, until its closure in 1989: productivity and quality appear to have made its output competitive
in neighbouring countries, markets which then decreased markedly as import-substitution policies were
implemented in those countries; in addition, domestic shoe manufacturing was greatly affected by
illegal imports.
(iii) Wood products (Table AV. 1, ISIC 33)
112. The wood products industry is important in terms of turnover and number of establishments.
Although they are numerous, most sawmills are small: many were established by log exporters to
comply with minimum requirements for local transformation (Chapter V(2)(iv)). Investments tend
to be low and efficiency is often. poor. There are also a few cutting and shaping units, match factories,
and veneer and plywood plants, all supplying mostly the internal market. Import substitution appears
complete in veneers, plywood and improved wood. Some four large parastatals operate in the industry,
some of which are in the process of privatisation. Establishments tend to be closely integrated with
forestry exploitation. Secondary transformation of wood is mainly undertaken in relation to the building
industry or to small scale carpentry operations. Domestic supplies to these enterprises appear to have
been unsatisfactory in quantity and quality, with good logs preempted for exports.
113. Imports of manufactured wood products are not negligible, especially in the sawmills and
furniture sub-groups. The average tariff in the wood sector is over 28 per cent; most furniture products
are subject to the 30 per cent tariff rate applied in principle to final consumption goods; so are almost
all other products from the wood industry, including raw materials and intermediate products like logs,
sawn wood, particle boards and plywood. The authorities indicated that some of these products may
be reclassified as the new tariff structure is refined by CACEU members.
42Marchés Tropicaux, 11 December 1992. Republic of Cameroon C/RM/S/56
Page 93
(iv) Paper and printing (Table AV. 1, ISIC 34)
114. Paper and printing is a minor industry following the closure in 1986 of the Edéa pulp and paper
plant. The plant was opened in 1981 and involved an initial investment of more than US$ 400 million.
From the beginning it was beset by technical and financial problems; by mid-1982 its total sales covered
about one-third of variable costs and by mid- 1985 the firm's cumulative losses amounted to CFAF 160
billion. The plant, including a forestry concession, was purchased from the liquidators in 1992 by
an Indonesian multinational and is now in the process of being rehabilitated.
115. Activities related to the production of containers, boxes and other packaging products are of
some significance; their performance appears to have been better than average, especially following
the CFA franc devaluation. Imports of paper products are sizable and subject to an average tariff of
14.5 per cent. Printing and publishing imports are subject to an average tariffof 17.8 per cent. Tariff
escalation in the paper and printing sector is fairly steep, with many primary products subject to tariffs
of 5 per cent as compared to rates of 30 per cent for most finished products.
(v) Chemicals, petroleum, rubber. plastics (Table AV. 1, ISIC 35)
(a) Petroleum refining
116. The petroleum refining industry is probably Cameroon's largest by turnover; however, value
added appears to be relatively low, probably reflecting' low returns to labour and capital productivity.
The volume of refined petroleum products shrunk following the slow down in economic activity in
1985; it has also been affected by fuel smuggling from Nigeria. The Government has reportedly taken
steps to discuss measures to limit smuggling with the Nigerian authorities.43 Recorded imports of refined
petroleum products are relatively low.
117. Cameroon's petroleum refinery, SONARA, began production in 1981 with one of its main
objectives to ensure Cameroon's energy independence. The refinery is jointly owned by four private
oil companies and the Government, which holds a 66 per cent majority of the capital. The refinery
has a designed annual capacity of 2 million tonnes using Arabian Light crude; some 1.7 million tonnes
can be refined using local crudes. It supplies a wide range of refined products, from butane to fuel
oil, almost exclusively to the domestic market; several other products, such as lubricants and asphalt,
are imported. SONARA was supplied by the state hydrocarbons corporation, SNH (Chapter V(3)(i)),
with domestic crude oil until 1989 but has since used predominantly lighter imported oils, which are
more suited to the refinery characteristics and Cameroon's demand for refined products.
118. The marketing and pricing arrangement for the refining and distribution of petroleum products
is complex. The supply and distribution of petroleum products is operated by SONARA, by SNH,
by a semipublic storage and transportation company, SCDP, and by six privately owned distribution
companies. The Government sets administratively the transfer price of crude oil to the refinery, the
ex refinery prices for refined products sold to the petroleum companies, the retail prices and storage
fees and transport charges. The system guarantees an ex refinery price consistent with an appropriate
rate of return for the company and an adequate remuneration to SONARA's shareholders. The cost
of any inefficiencies in the production chain is thus likely to be passed to the consumer in the form
of higher retail prices. Kerosene (used as cooking fuel)¹ has been traditionally heavily subsidized.
Cameroon also maintained very narrow price differences for petroleum products in its various localities,
regardless of the wide range of transport costs, through the imposition of an equalization levy on gasoline
and diesel. This system is now being phased out.
43Marchés Tropicaux, 11 December 1992. C/RM/S/56 Trade Policy Review Mechanism
Page 94
119. Refined petroleum products are subject to a 10 per cent tariff rate under the new CACEU tariff
schedule. However, petrol (super) and diesel come under special fiscal legislation.44 Under it, petrol
and diesel are subject a customs duty of 15 per cent and to a "special " tax collected at a rate of CFAF 80
per litre for petrol and CFAF 30 for diesel. Cameroon's special legislation also subjects petrol and
diesel to a turnover tax of 12.5 per cent (a turnover tax of 15 per cent generally applies to other goods,
Chapter IV(2)(iv)). The customs duty also acts in the nature of an excise tax in that it, the special
tax and turnover tax all apply equally to imports and domestic production.
(b) Chemicals, rubber and plastics
120. Cameroon's chemicals industry is at the initial stages of development. The industry is small
in terms of turnover and employment; foreign participation is dominant. Numerous products consumed
dornestically, some in significant quantities like fertilizers, are imported; others, such as paints, glues
and detergents, are subject only to the simplest of local transformation. Most products fabricated locally
depend on imported inputs and integration with the rest of the industry tends to be minimal.There
are a number of enterprises in this industry that are profitable and competitive in the CACEU region,
with little protection from competing imports or other forms of assistance.
121. Imports of products in the chemicals, rubber and plastics sectors account for slightly over 20
per cent of Cameroon's total manufactured imports. Industrial chemicals and medicines are by far
the two largest product groups, although several other groups are also important. The industry's average
tariff rate is 13 per cent: the lowest average tariffs apply to fertilizers, pesticides and medicines while
the highest tariffs apply to items in the soaps and cleaning agents sub-group and the rubber products
sub-group. Tariff escalation tends to be low.
122. There is no domestic production of fertilizers and there are no subsidies to fertilizer users.
A parastatal factory operated between 1975 and 1981 supported by subsidies out of extra-budgetary
funds45; a programme to subsidize the cost ofimported fertilizers (and of pesticides) was then established
and later discontinued.
123. A number of pharmaceutical plants were established during the 1980s. The size of the domestic
market is not known with any certainty but appears small. There is a well established private network
to import and distribute medicines, whose profit margins are regulated; in contrast, distribution through
the state system appears inefficient. Two firms have been successful in manufacturing perfumes and
cosmetics for both local and regional markets. Imports of medicine and veterinary medicines are reserved
to approved establishments (Chapter IV(2)(x)). Pharmaceutical imports were granted duty free status
in the 1994-95 Law of Finance, but are otherwise subject to an average m. f.n. rate of almost 8 per cent.
124. Medicinal plants are plentiful in Cameroon and provide a good base for expansion: a private
firm manufactures medicinal herb extracts and has apparently managed to export important quantities.
For the 1994-95 fiscal year, a tax deductible charge on the export of medicinal plants is collected at
a rate of 15 per cent of their f.o.b. value (Chapter IV(3)(ii)).
44Ordinance No 94/004 of 16 February 1994.
45Riddell (1990).
46Law No 94/002 of 1 July 1994. Republic of Cameroon C/RM/S/56
Page 95
125. The soap and detergent sub-group is one of the most important in Cameroon's chemical industry.
Unlike other chemical producers, it has close links with other industries, in particular through its use
of locally produced palm oil. There are six main producers in this sub-group, of which the Complexe
Chimique Camerounais is the most important; this firm exports a small but significant part of its
production to other CACEU countries. The industry's growth appears to be hampered by palm oil
supply problems, by the establishment of competing plants in neighbouring countries and by illegal
soap imports.
126. There are 20 producers of plastic goods, all using imported raw materials to manufacture a
broad range of products. Although installed capacity is small, plant underutilization is a problem.
Losses and poor competitiveness are widespread, but a number of specialized firms are profitable and
have achieved stable footholds in neighboring markets. Most pesticides, fungicides and herbicides
are imported, although some final mixing is undertaken locally. There is a small plant for the treatment
of latex and, from imported materials, a few firms produce glue and paints.
(vi) Non-metallic mineral products (Table AV. 1, ISIC 36)
127. Imports of non-metallic mineral items are relatively significant, mostly as cement, glass and
pottery products. The average import tariff for goods in the sector is 23 per cent, but a substantially
lower average of about 14 per cent applies to the cement sub-group. The local manufacture of cement
is carried out by a parastatal, Cimenteries du Cameroun. Production is based on imported clinker plus
local limestone and marble, and shared between one large, modern installation in Douala and a small
plant near the border with Chad. The cement manufacturer initially did well, expanding turnover and
exports to neighbouring countries. Although operations have been hard hit by the downturn in the
public works and building sectors. turnover and employment have fallen markedly less than in other
industries.
(vii) Basic metals (Table AV. 1, ISIC 37)
128. There are several establishments manufacturing. from imported basic iron and steel shapes,
a variety of intermediate products such as pipes and scaffolding as well as assembling equipment for
the oil industry. Domestic consumption is in the order of 100,000 tonnes, a relatively low level that
is explained by the limited downstream manufacture of heavy machinery, transport equipments, and
durable consumer goods. Before 1994, the downstream use of iron and steel products appears to have
been discouraged, inter alia, by high transportation costs and border taxes.47 Imports of products in
the iron and basic steel category are significant and subject to an average tariff rate of 12 per cent.
129. In contrast to iron and steel manufacturing, Cameroon has a well established aluminium industry
centred around a small size smelter, ALUCAM. The Government holds 39 per cent of the firm's capital,
mostly through SNI; the rest is held by foreign interests, notably the Pechiney group which holds 48
per cent. That group manages the smelter and supplies the required alumina from its operations in
Guinea. Even though the smelter benefits from reduced electricity rates, ALUCAM has recently had
difficulties breaking even .48 Production fell from about 93,000 tonnes in 1988-89 to some 81,000
tonnes in 1991-92. It remains, however, one of the largest industrial plants in Cameroon and the largest
industrial client for Cameroon's state electricity company, accounting for slightly more than. 50
per cent of total electricity sales and about 10 per cent of electricity revenues.
47Riddell (1990).
48According tu UNIDO (1990), ALUCAM's special price tariff from SONEL stood at CFAF 3.36 per kwh
in 1984-85, one of the lowest tariffs in the world. C/RM/S/56 Trade Policy Review Mechanism
Page 96
130. Exports, mainly to France, fell from about 67,000 tonnes to 62,000 tonnes during the 1988-91
period. Internal adjustments have been required, with staff numbers falling from about 1,200 to just
under 1,000. Exports have apparently recovered since mid- 1992 and the company's substantial debt
has been restructured. The CFA franc devaluation appears to be having a positive effect on aluminium
exports, although the devaluation has also increased production costs as all the alumina is imported.
13 1. Cameroons' consumption of processed aluminium products is relatively low and involves a
narrow range of items. ALUCAM's subsidiary, SOCATRAL, operates a processing mill adjacent
to the smelter and produces aluminium sheets for the domestic and regional market, and discs for the
local utensils manufacturer. Like the smelter, the mill has been unable to operate consistently at a
profit and domestic sales from ALUCAM to SOCATRAL fell to some 19,000 in 1991-92. There are
three other enterprises engaged in the production of secondary aluminium goods such as kitchenware,
architectural products and electric cables. Imports by the non-ferrous metals basic industry are relatively
low and subject to an average tariff rate of 16 per cent. Tariff escalation is steep; both alumina and
unwrought aluminium are subject to a tariff of 10 per cent, while finished consumer products bear
rates of 30 per cent.
(viii) Fabricated metal products, machinery, equipment and others (Table AV. 1, ISIC 38)
132. This industry still remains embryonic, consisting in the main of relatively simple assembly
operations of such products as bicycles, motorcycles, air conditioner housing, electric stoves, ovens
and refrigerators. The industry is small, both in terms of turnover and employment. Three parastatal
firms operated as a group, producing, among others, reinforcing bars, a wide spectrum of spare parts
and agricultural hand tools and forged implements. Imports are quite sizable, accounting for some
38 per cent of Cameroon's total manufactured imports. By value of imports, the two largest 3-digit
ISIC sub-groups in 1992 were non-electrical machinery and transport equipment; by far the largest
4-digit ISIC sub-group was motor vehicles. The average tariff rate for the fabricated metal products
industry is about 16 per cent: the average rate for the non-electrical machinery sub-group is 12 per cent,
for transport equipment, 16 per cent, and for motor vehicles just under 20 per cent. Republic of Cameroon C/RM/S/56
Page 97
VI. TRADE DISPUTES AND CONSULTATIONS
(1) Disputes under the GATT
1 . Cameroon has not been directly involved, as a complainant or defendant, in any dispute settlement
procedures under GATT Articles XXII and XXIII.
2 . In 1993-94, Cameroon was indirectly involved in a case under Article XXIII in which Colombia,
Costa Rica, Guatemala, Nicaragua, and Venezuela challenged the import régimes maintained by
individual member states of the European Union (EU) for bananas imported from African, Caribbean
and Pacific (ACP) countries, including Cameroon. ¦ Cameroon and three other African banana producers
made a submission as interested third parties, arguing that, inter alia, the banana régimes should be
considered in light of both overall efforts by the EU to promote the development of less developed
contracting parties and of the substantial expansion of non-preferential banana exports to the EU market.
Cameroon and the other three Africain banana producers also raised substantive procedural objection
to the examination of the challenge.² The dispute panel in the matter concluded that the quantitative
restrictions and tariff preferences maintained by some EU member states on banana imports were
inconsistent or notjustified by GATT Articles.³ The panel recommended that the Contracting Parties
request the EU to bring the quantitative restrictions and the tariff preferences on banana imports into
conformity with the General Agreement. The panel report has not been adopted by the Council.
3. Again in 1993-94, Cameroon was indirectly involved in another case under Article XXIII in
which Colombia, Costa Rica, Guatemala, Nicaragua, and Venezuela challenged the banana import
régime introduced by the EU on 1 July 1993, replacing the various national banana import systems.4
The five Latin American countries argued that the new EU régime for bananas from ACP countries
was incompatible with the EU's GATT obligations, noting that the régime aggravated access conditions
for their banana exports; the main complaints included the régime's tariff quotas, specific duties,
preferential tariff rates, allocation of import licences and security requirements.5
'GATT documents DS32/9, 9 March 1993; DS32/R, 3 June 1993; and DS38/R, 11 February 1994. The
European Economic Community signed the Lomé Convention; the term "European Union" is used in this Chapter
to maintain the usage in the rest of this report.
²On other occasions Cameroon also noted that the banana sector was one of its main export products and
dependent almost completely on the EU market; banana production was one of the few activities that had
modernized and was expanding inthe midst ofCameroon's economic crisis and "devastating structural adjustment
problems": GATT documents C/M/259, 27 October 1992; C/M/261, 12 March 1993; and C/M/263, 9 June
1993.
³Specifically, that the quantitative restrictions maintained by some EU member states on banana imports were
inconsistent or not justified by Article XI: 1 and were not justified by Article XI:2(c)(i), Article XXIV, or the
protocols through which those EU members became contracting parties. The Panel also concluded that the tariff
preferences accorded by the EU to banana imports from ACP countries were inconsistent with Article I and that
a legal justification for the preference could not emerge from an application of Article XXI but only from an
action of the Contracting Parties under Article XXV.
4GATT documents DS38/5, 12 March 1993 and DS38/R, 11 February 1994.
5Specifically, Colombia, Costa Rica, Guatemala, Nicaragua and Venezuela argued that the banana import
régime was inconsistent with Articles II, XI and XIII of the General Agreement. Colombia, Costa Rica, Guatemala
and Nicaragua also argued that the régime was inconsistent with Article I. Colombia, Guatemala and Venezuela
argued that the régime was not in conformity with Articles III and VIII. Colombia argued that the EU had acted
inconsistently with Article XVI. C/RM/S/56 Trade Policy Review Mechanism
Page 98
4. Cameroon and two other African banana producers made a submission as interested third parties
arguing that, inter alia:
- setting up of a working party to examine the Lomé IV Convention precluded raising
the issue of the Convention's GATT consistency;
- the measures taken were not arbitrary, unjustified or a restriction on international trade;
- African banana producers had the right to be subject to the special measures under
review;
- the advantages given by France to Cameroon and other countries were destined to help
former dependent territories and were GATT compatible;
- the EU would be justified in applying a compensatory levy as certain practices of Latin
American banana exporters could be considered dumping; and
- questioning the preferences granted to ACP countries was tantamount to violating the
General Agreement objectives to help the less favoured countries develop their
economies.
5. The dispute panel concluded that the use of tariff quotas and the security requirements of the
banana import régime were not inconsistent with GATT Articles but that: the specific duties levied
on banana imports were inconsistent with Article Il (on schedules of concessions); the preferential
tariff rates on bananas accorded to ACP countries were inconsistent with Article I (on m.f.n. treatment);
and that the allocation of import licences granting access to imports under the tariff quota was inconsistent
with Articles I and Ill (on national treatment. The panel recommended that the Contracting Parties
request the EU to bring its tariffs on bananas and the allocation of its tariff quota licences into conformity
with the EU's GATT obligations. To date, the panel report has not been adopted by the Council.
(2) Dispute Settlement in other Fora
6. The Association Bananière Camerounaise and the Companie Fruitière Import, the major French
importer of Cameroonian bananas, brought a joint case against the European Commission's decision
on 2 December 1992 authorising France to apply safeguard measures halting "excess" imports of bananas
from Cameroon and the Ivory Coast, France's two largest foreign banana suppiers. The Cameroon
company argued, inter alia, that its success in improving the quality of its banana exports was the reason
French importers were increasingly seeking its product and that the Lomé Convention stipulates that
safeguard measures should not have the effect of blocking the structural development of the penalized
country. The EU Court of Justice dismissed the case.6
6European Report, 3 September 1993. Republic of Cameroon C/RM/S/56
Page 99
7 Disputes concerning the interpretation or application of the Lomé Convention may be referred
to the Council of Ministers established under the Convention. If no solution is achieved in the Council,
it may initiate an arbitration procedure at the request of either party. No such procedures have been
initiated to date.7
8. The Treaty Establishing a Central African Customs and Economic Union provides that when
incompatibilities arise between the Treaty and other conventions, "the Member States or State concerned
shall take all appropriate steps to eliminate any incompatibility found to exists. Member States shall,
if necessary, assist each other in order to achieve this purpose and shall, where appropriate, adopt
a common attitude" (Article 69 of the Treaty).
7GATT (1994). Republic of Cameroon C/RM/S/56
Page 101
REFERENCES
B. Bekolo Ebe (1992), "Dynamique nouvelle de financement et sortie de crise au Cameroun", Mondes
en Développement, Vol 20, No. 77/78, pp. 101-118.
J. Coussy (1991), "Formes spécifiques du Dutch Diseas.. en.Afrique de l'ouest: le cas du Nigeria et
du Cameroun", Revue Tiers Monde, Vol. 32, No. 125, pp. 63-91.
S. Devarajan and D. Rodrik (1991), 'Pro-competitive effects of trade reform, results from a CGE
model of Cameroon", European Economic Review, Vol. 35, pp. 1157-1184.
Economist Intelligence Unit (1993), Cameroon, CAR, Chad Country Profile, 1993/94, London.
Europa Publications (1993), Africa South of the Sahara - Cameroon, London.
J. M. Gankou (1991), La politique économique duCameroun: son impact sur la croissance depuis 1960,
Centre de Recherche sur le Développement, Université de Neuchâtel.
GATT (1994), Trade Policy Review - Senegal, Geneva.
GATT (1995), Trade Policy Review - Indonesia, Geneva, forthcoming.
I. Karmiloff (1987), Industrialization in sub-saharan Africa: Phase One. country case study - Cameroon,
Working Paper 24, Overseas Development Institute, London.
I.M.D. Little, R.N. Cooper, W.M. Corden and S. Rajapatirana (1993), Boom. Crisis, and Adjustment:
the Macroeconomic Experience of Developing Countries, Published for the World Bank by Oxford
University Press, New York.
C.R. Milner (1990), "Identifying and Quantifying Anti-Export Bias: The Case of Cameroon",
Weltwirtschftiches Archiv, Vol. 126, No. 1, pp. 142-154.
R.C. Riddell (1990), Manufacturing Africa, James Currey Ltd, London.
E.W. Schamp (1991), "Indigenous entrepreneurs in industrialization: the case of Cameroon", Applied
Geography and Development, Vol. 34, pp. 106-125.
S. Semen. Protection effective et développement industriel: l'exemple du Cameroun, Université
d'Orléans.
UNIDO (1990), Cameroon: coping with reduced oil revenue, Industrial Development Review Series.
World Bank (1994), Adjustment in Africa, A World Bank Policy Research Report, Oxford University
Press, New York. APPENDIX TABLE Republic of Cameeron C/RM/S/56 Trade Policy Review Mechahism
Page 106
Table AI.2
Merchandise imports by principal origin, 1980-93
(Per cent)
Reporter 1980 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993
1,537 1,453 1,251 1,286 1,325 1,528 1,467 1,036 1,146 1,220 988 1,058 706
9.9
5.8
0.7
3.4
8.8
5.7
1.7
1.3
9.4
7.3
1.2
0.8
6.8
5.0
1.1
0.6
7.9
5.1
1.9
0.8
4.6 6.5
2.2 3.0
1.7 0.9
1.8 2.6
6.6
3.0
1.4
2.3
10.2
3.0
2.8
4.3
9.2
3.8
2.2
3.2
8.3
4.6
1.7
2.0
8.3 10.9
5.4 6.8
1.5 1.8
1.4 2.3
EUROPE
European Union
Belgium-
Luxembourg
Denmark
France
Germany
Greece
Ireland
Netherlands
Italy
Portugal
Spain
United Kingdom
EFTA
Eastern Europe
Other Europe
72. 1
69.4
2.4
0.4
46.4
5.6
0.1
0.3
4.7
4.7
0.1
2.1
2.7
2.6
0.1
0.0
70.7 74.1 72.3
67.9 71.5 69.9
2.4 2.9 3.5
0.4
44.5
7.6
0.1
0.3
4.6
2.3
0.2
2.7
2.7
2.7
0.1
0.1
0.6
47.3
5.5
1.1
0.3
6.3
2.2
0.1
2.9
3.2
2.5
0.1
0.0
0.4
46.6
5.7
0.2
0.4
5.7
2.2
0.1
2.7
2.4
2.3
0.1
77.6 79.5 77.1
74.6 75.9 73.2
4.2 4.6 4.8
0.4
45.6
8.2
1.4
1.6
4.8
2.9
0.2
3.1
4.4
3.0
0.0
0.0
0.5 0.8
46.9 43.7
9.0 9.7
0.4 0.3
0.8 0.7
5.0 5.0
3.1 2.7
0.2 0.2
2.2 2.2
3.3 3.1
3.4 3.7
0.0 0.1
(0.2 0.1
79.9 75.6 79.3 79.0 79.1 78.1
76.2 71.7 75.7 76.3 76.2 74.7
4.9 7.3 6.7 6.2 5.9 ...
0.9
46.2
8.1
0.1
0.7
6.5
3.2
0.1
1.9
3.5
3.5
0.1
1.2
0.2
40.9
7.7
0.4
0.6
6.5
3.1
0.1
1.3
3.5
3.6
0.2
0.1
0.3
43.8
8.8
0.1
0.7
6.2
3,0
0.2
2.8
3.0
3.3
(. 1
0.2
0.3
43.5
8.9
0.4
0.8
4.6
3.8
(1.2
3.4
4.3
2.6
0.0
().1
0.2 ..
44.7 48.7
9.3 6.2
0.8 1.1
0.9 ...
4.4 5.3
2.9 4.9
0.1 0.1
3.9 4.9
3.2 3.5
2.3 3.1
0.2 0.1
0.2 0.3
MIDDLE EAST
ASIA
East Asia
Chinese Taipei
Japan
South Asia
0.3 0.2 0.2 0.0 0.0 0.2 0.4 0.9 0.4 0.4 0.3 0.3 0.2
13.1
8.1
2.6
4.8
5.1
15.3
11.1
(1.2
3.0
4.9
11.6
7.7
0.1
1.6
4.3
13.2
10.5
0.4
2.0
4.5
12.3
10.2
2.2
5.3
2.0
13.5 13.2
12.4 12.0
2.0 2.4
6.7 5.7
1.2 1.2
11.0
10.5
1.7
4.4
0.5
9.8
9.4
1.2
4.4
0.4
8.2
7.5
0.8
3.3
0.7
9.4 10.7 10.4
8.7 9.7 10.4
0.8 0.6 0.6
4.3 4.8 6.9
0.7 1.0 0.1
2.1 2.7 1.5
1.0 1.5 0.1
1.0 1.2 1.4
0.5 0.7 0.8
3.9
1.7
2.3
0.8
3.0
1.7
1.3
0.5
3.0 1.7 0.5
2.0 0.0 ...
1.0 1.7 0.5
0.7 0.8 0.4
. . . Not available.
Note: Figures for 1993 are preliminary. Germany includes the territory of the former German Democratic Republic.
Source: UNSTAT, Comtrade database. Data have been compiled on the basis of trade reported by Cameroon's trading partners.
WORLD
(US$ million)
AMERICA
United States
Canada.
Other America
AFRICA
Sub Saharan
Africa
Other Africa
Morocco
4.6
4.3
0.3
0.3
0.0
5.0
4.0
1.0
0.0
4.7
4.2
0.5
0.0
7.6
7.2
0.4
2.2
1.5
0.7
0.7 Republic of Cameroon C/RM/S/56
Page 107
Table A1.3
Merchandise exports by broad product category, 1980-93
(Per cent)
COMMODITY 1980 1985 1986 1987 1988 1989 1990 1991 1992 1993
TOTAL (US$ million) 1,852 2,468 1,875 1,934 1,701 1,870 2,124 1,754 1,758 1,554
Agriculture 59.2 29.0 50.5 44.4 48.3 42.8 40.1 40.8 42.3 48.9
Food 42.7 21.8 38.2 30.6 32.1 23.3 20.2 19.4 19.6 22.0
Cocoa 18.6 10.0 13.6 14.8 15.1 9.6 7.6 6.2 7.3 8.1
Coffee 18.8 9.1 18.8 10.6 11.5 9.3 7.9 7.0 6.6 5.4
Fruits and vegetables 1.8 1.1 1.7 1.6 1.4 1.8 2.9 5.1 4.6 7.3
Agricultural raw materials 16.5 7.3 12.3 13.7 16.2 19.5 19.9 21.4 22.6 26.9
Cotton 2.4 1.1 2.2 2.7 2.0 5.3 3.7 4.0 3.1 3.7
Wood, rough and shaped 11.6 5.1 8.6 9.2 11.2 11.5 13.9 14.6 16.7 19.6
Mining 38.1 69.2 46.8 52.5 48.2 53.3 57.1 56.4 54.9 48.7
Fuels 36.0 66.0 42.8 49.0 41.7 46.6 51.0 51.1 50.1 44.6
Non-ferrous metals 1.9 3.0 3.9 3.4 6.3 6.6 5.9 5.2 4,7 4.0
Ores 0.2 0.2 0.1 0.1 0.2 0.1 0.1 0.1 0.0 0.1
Manufactures 2.6 1.6 2.3 2.9 3.3 3.7 2.7 2.5 2.6 2.2
Textiles 0.6 0.3 0.5 0.8 1.2 1.0 0.5 0.6 0.5 0.4
Other semi-manufactures 1.5 0.8 1.4 1.6 1.6 1.6 1.7 1.5 1.8 1.3
Other 0.2 0.2 0.3 0.2 0.2 0.2 0.2 0.3 0.3 0.2
Note: Figures for 1993 are preliminary.
Source: UNSTAT, Comtrade database. Data have been compiled on the basis of trade reported by Cameroon's trading partners. C/RM/S/56 Trade Policy Review Mechanism
Page 108
Table AI.4
Merchandise imports by broad product category, 1980-93.
(Per cent)
COMMODITY 1980 1985 1986 1987 1988 1989 1990 1991 1992 1993
TOTAL (US$ million) 1,537 1,325 1,528 1,467 1,036 1,146 1,220 988 1,058 706
Agriculture 14.2 16.5 18.4 16.3 21.2 21.0 21.8 23.0 21.4 19.1
Food 13.8 15.7 17.5 15.3 20.1 19.3 19.4 21.0 18.5 17.2
Agricultural raw materials 0.3 0.9 1.0 1.0 1.1 1.7 2.4 1.9 2.9 2.0
Mining 13.3 3.0 2.1 2.4 2.3 3.4 2.4 3,7 2.7 2.8
Fuels 10.9 2.2 1.3 1.4 1.1 2.4 1.4 2.7 1.5 1.5
Non-ferrous metals 0.4 0.5 0.5 0.8 0.9 0.8 0.7 0.7 0.9 1.1
Ores 2.0 0.2 0.2 0.2 0.3 0.2 0.2 0.4 0.3 0.2
Manufactures 71.9 79.5 78.6 80.6 75.9 74.9 74.9 72.6 73.8 76.1
Chemicals 10.3 12.8 13.5 14.4 16.3 17.3 16.4 15.3 16.1 17.7
Textiles 4.1 3.9 3.9 3.3 2.6 2.5 2.3 1.9 2.0 1.8
Iron & steel 4.5 2.4 2.1 1.7 2.4 2.6 2.8 3.1 2.2 2.7
Other semi-manufactures 10.6 12.0 11.1 11.6 12.3 12.6 13.2 11.2 12.0 12.3
Power generating machines 2.3 1.0 1.4 1.5 1.1 1.1 0.9 1.5 1.4 1.1
Agricultural machinery 0.8 0.6 0.7 0.6 0.5 0.6 0.7 0.5 0.5 0.8
Office machinery 0.5 0.9 0.9 1.1 1.4 1.1 1.0 1.4 1.3 1.4
Other non-electrical machinery 13.1 9.4 9.3 10.8 10.4 8.5 9.3 9.3 9.2 9.7
Telecommunications apparel 1.0 2.6 4.1 3.0 1.5 3.5 3.6 2.5 2.6 2.5
Other electrical machinery 5.3 5.4 5.4 5.1 4.0 3.6 4.6 4.2 5.6 5.7
Automotive products 8.7 11.7 11.3 11.0 8.8 8.6 8.9 9.7 10.0 9.3
Other transport equipment 3.4 4.8 1.4 3.6 1.2 1.2 1.1 1.9 1.1 1.3
Furniture 0.4 0.8 1.0 1.1 1.1 1.1 0.8 0.8 0.8 0.6
Travel goods and bags 0.3 0.4 0.5 0.5 0.4 0.4 0.3 0.3 0.2 0.2
Clothing 1.6 2.4 2.6 2.4 2.6 1.8 1.6 1.3 1.9 1.5
Footwear 0.9 1.8 2.3 2.3 1.9 1.5 1.0 1.0 0.8 0.8
Other misc. manufactures 4.1 5.6 6.7 6.6 7.3 6.9 6.4 6.6 6.1 6.9
Other 0.6 0.9 0.9 0.8 0.6 0.7 1.0 0.7 2.1 2.0
Note: Figures for 1993 are preliminary.
Source: UNSTAT, Comtrade database., Data have been compiled on the basis of trade reported by Cameroon's trading partners. Republic of Cameroon C/RMS/56
Page 109
Table AV.I
Tariff and imports by ISIC category
(per cent)
Number MFN tariff, 1994 Imports 1992
Description of 8-digits - Range (US$ thousands)
HS lines Simple Range
average
Agriculture, hunting , forestry & fishing 429 24.5 5-30 25,763
111 Agricultural and livestock production 288 24.0 5-30 25,410
12 Forestry and logging 89 25.7 10-30 156
130 Fishing 52 25.2 10-30 197
2 Mining & quarrying 112 11.6 5-30 2,671
2901 Stone quarrying, clay and sand pits 35 10.0 10 1,168
2902 Chemical and fertilizer mineral mining 14 9.6 5-10 327
2903 Salt mining 3 20.0 10-30 859
3 Manufacturing 4989 18.5 5-30 1,057,101
31 Manufacture of food, beverages and tobacco 522 24.5 5-30 173,836
311 Food products 417 25.0 10-30 111,220
3111 Slaughtering, preparing , preserving meat 78 20.8 10-30 10,666
3112 Manufacture of dairy products 27 25.2 10-30 18,381
3113 Canning, preserving fruit and vegetables 111 29.8 10-30 15,256
3114 Canning, preserving fish, crustacea etc. 77 23.9 20-30 7,779
3115 Manufacture of vegetable and animal oils and fats 53 21.9 10-30 9,445
3116 Grain mill products 39 22.6 10-30 43,932
3118 Sugar factories and refineries 8 27.5 10-30 4,421
312 Other food products and animal feeds 64 20.9 5-30 7,065
3121 Food products n.e.s. 55 21.3 5-30 3,340
3122 Manufacture of prepared animal feeds 9 18.9 10-30 3,725
313 Beverages 33 26.2 5-30 36,369
3131 Distilling, rectifying, blending spirits 12 24.6 5-30 5,438
3132 Wine industries 13 28.5 10-30 9,747
3133 Malt liquors and malt 4 20.0 10-30 20,926
3140 Tobacco manufacturing 8 22.5 10-30 19,182
32 Textile, clothing and leather industries 889 23.0 10-30 66,431
321 Textiles 684 21.6 10-30 25,100
3211 Spinning, weaving, finalizing textiles 410 17.8 10-30 15,673
3212 Manufacture of textile goods excl. weaving apparel 62 28.1 10-30 3,465
3213 Knitting mills 136 28.7 20-30 3,072
3214 Manufacture of carpets and rugs 23 30.0 30 854
3215 Cordage, rope and twine industries 15 16.7 10-30 1.282
Table AV.1 (cont'd) C/RM/S/56 Trade Policy Review Mechanism
Page 110
Number MFN tariff, 1994 Imports 1992
Description of 8-digits (US$ thousands)
l Description HS lines Simple Range
average
3219 Manufacture of textiles n.e.s. 38 24.5 10-3 754
322 Manufacture of wearing apparel 139 29.9 20-30 30,002
323 Leather products 49 20.2 10-30 2,684
324 Manufacture of footwear 17 27.6 20-30 8,645
33 Wood and wood products, including furniture 154 28.4 10-30 10,017
331 Wood and wood products, except furniture 132 28.4 10-30 4,501
3311 Sawmills and woodmills 103 29.6 10-30 4,387
332 Manuf. of furniture & fixtures except of metal 22 28.6 20-30 5,516
34 Paper, paper products,printing and publishing 158 15.2 5-30 47,756
341 Paper products 124 14.5 5-30 31,210
3411 Manufacture of pulp, paper, paperboard 77 12.6 5-30 23,237
3412 Manuf. of containers & boxes of paper & board 8 12.5 10-30 4,349
3419 Manufacture of pulp, paper, paperboard n.e.s. 39 18.7 10-30 3,624
342 Printing, publishing & allied industries 34 17.8 5-30 16,546
35 Chemicals, petroleum, coal, rubber, plastics 1064 12.7 5-30 232,889
351 Industrial chemicals 694 10.2 5-30 81,303
3511 Manuf. of basic indus. chemicals excl. fertilizer 520 10.2 5-30 33,196
3512 Manufacture of fertilizer & pesticides 42 5.6 5-20 20,060
3513 Manuf. of resins, plastics & man-made fibres 132 12.0 10-30 28,047
352 Other chemicals, incl. pharm. 243 15.9 5-30 94,764
3521 Manufacture of paints, varnishes, lacquers 17 17.6 10-30 1,573
3522 Manufacture of drugs and medicines 85 7.8 5-10 71,605
3523 Manuf. of soap, cleaning agents. perfumes etc. 31 27.4 10-30 7,517
3529 Manufacture of chemical products n.e.s. 110 18.6 5-30 14,069
353 Petroleum refineries 32 10.2 5-20 6,424
354 Manuf. of miscell. petroleum & coal products 14 14.3 10-30 2,738
355 Rubber products 58 25.8 5-30 18,098
3551 Tyre and tube industries 14 27.1 10-31 14,068
3559 Manufacture of rubber products n.e.s. 44 25.3 5-30 4,030
356 Manufacture of plastic products n.e.s. 23 21.3 10-30 29,562
36 Non-metallic mineral products except of petrol and 158 23.4 5-30 33,932
coal
361 Pottery and china 16 27.5 10-30 6,718
362 Manufacture of glass and glass products 57 25.5 5-30 7,933
369 Other non-metallic mineral products 85 21.2 5-30 19.281
3691 Manufacture of structural clay products 17 21.8 10-30 3,595
3692 Manufacture of cement, lime & plaster 8 13.8 5-20 13,596
Table AV.1 (cont'd) Republic of Cameroon C/RM/S/56
Page 111
Number MFN tariff, 1994 Imports 1992
Description of 8-digits - Range (US$ thousands)
HS lines Simple Range
average
3699 Manuf. of non-metallic mineral products n.e.s. 60 22.0 10-30 2,090
37 Basic metal industries 401 13.6 10-30 55,956
371 Iron and steel basic industries 229 11.7 10-20 46,284
372 Non-ferrous metal basic industries 172 16.2 10-30 9,672
38 Fabricated metal products, mach.& equipment 1423 16.5 5-30 402,976
381 Fabricated metal products 221 23.9 5-30 72,282
3811 Manuf. of cutlery, hand tools, general hardware 70 23.9 10-30 20,998
3812 Manufacture of metal furniture and fixtures 11 23.6 5-30 5,948
3813 Manufacture of structural metal products 23 15.2 10-30 13,210
3819 Manufacture ot fabricated metal products n.e.s. 117 25.6 11-30 32,126
382 Non-electrical machinery incl. computers 522 12.2 10-30 118.188
3821 Manufacture of engines and turbines 11 10.9 10-20 14,554
3822 Manuf. of agricultural machinery and equipment 18 10.6 10-20 4,176
3823 Manuf. of metal & wood working machinery 109 10.5 10-20 8,052
3824 Manuf. of special industrial mach. & equipment 146 10.1 10-30 37,724
3825 Manuf. office, computing, accounting machinery 34 17.4 10-30 13.879
3829 Machinery & equipment excl. electrical n.e.s. 2114 14.0 10-30 39,803
383 Electrical machinery 267 18.4 5-3(0 81,897
3831 Manuf. of electrical indus. machi. & apparatus 63 12.2 10-20 22,511
3832 Manuf. of radio, T.V. & communications equip. 117 18.5 5-30 33,763
3833 Manuf. of electrical appliances & housewares 24 28.8 20-30 2,953
3839 Manuf. of electrical apparatus & supplies n.e.s. 63 211.5 10-30 22,670
384 Transport equipment 192 1I.9 5-30 112,711
3842 Manufacture of railroad equipment 39 10.0 10 4,763
3843 Manufacture of motor vehicles 78 19.7 10-30 96.962
3844 Manufacture of motorcycles and bicycles 17 23.5 10-30 3,063
3845 Manufacture of aircraft 20 10.0 10 5,9 5,994
385 Professional and scientific equipment 221 17.6 5-30 17,898
3851 Professional scientific & measuring equip. n.e.s. 98 9.4 5-30 13,409
3852 Manufacture of photographic & optical goods 68 19.5 5-30 3,552
39 ct Other manufauring industries 220 260 .8 10-3 33,308
3901 Manufacture o jewellery and related articles 21 30.0 30 2,751
393 Manufacture of sporting and athletic goods 26 30.0 30 1,914
3909 Manufacturing industries n.e.s. 150 25.3 10-30 28,564
Source: GATT Secretariat calculations. Imports compiled from trade reported on a HS basis by Cameroon's trading partners. |
GATT Library | fc650rr8197 | Trade Policy Review Mechanism. Sweden. Minutes of Meeting | General Agreement on Tariffs and Trade, January 20, 1995 | General Agreement on Tariffs and Trade (Organization) and Council | 20/01/1995 | official documents | C/RM/M/54 and 0128-0143 | https://exhibits.stanford.edu/gatt/catalog/fc650rr8197 | fc650rr8197_90080596.xml | GATT_1 | 7,236 | 49,709 | GENERAL AGREEMENT C/RM/M/54
20 January 1995
ON TARIFFS AND TRADE Limited Distribution
(95-0131)
COUNCIL
15-16 December 1994
TRADE POLICY REVIEW MECHANISM
SWEDEN
MINUTES OF MEETING
Chairman: Mr. K. Kesavapany (Singapore)
Page
1. INTRODUCTORY REMARKS BY THE CHAIRMAN OF THE COUNCIL 2
Il. OPENING STATEMENT BY THE REPRESENTATIVE OF SWEDEN 3
III. STATEMENT BY THE FIRST DISCUSSANT 5
IV. STATEMENT BY THE SECOND DISCUSSANT 6
V. STATEMENTS BY MEMBERS OF THE COUNCIL 8
VI. REPLIES BY THE REPRESENTATIVE OF SWEDEN
AND ADDITIONAL COMMENTS 12
VII. CONCLUDING REMARKS BY THE CHAIRMAN OF THE COUNCIL 14 C/RM/M/54 Trade Policy Review Mechanism
Page 2
I. INTRODUCTORY REMARKS BY THE CHAIRMAN OF THE COUNCIL
1. The Chairman welcomed the delegation of Sweden headed by Ambassador Manhusen, the
discussants, Ambassador Booth Gardner (United States) and Mr. Adrian Constantinescu (Romania),
and members of the Council.
2. The Chairman recalled that the purpose of the TPR Mechanism was "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" (BISD 36S/403).
3. The Council was to base its work on two reports; the report by the Government of Sweden,
contained in document C/RM/G/54, and that of the GATT Secretariat in document C/RM/S/54. The
discussants had outlined the main issues they intended to raise in document C/RM/W/24. Copies of
written questions submitted by the delegations of Australia, Canada, Hong Kong and the United States
were available.
4. The Chairman then offered the floor to the representative of Sweden. Sweden C/RM/M/54
Page 3
Il. OPENING STATEMENT BY THE REPRESENTATIVE OF SWEDEN
5. The representative of Sweden began by noting that this second review of Sweden's trade policy
was probably unique in the history of the TPRM in that the subject of review was a national trade policy
that would no longer exist in about two weeks, which was when Sweden was expected to join the
European Union. However, in acceding to the European Union and integrating into the Customs Union,
Sweden would not abandon its national trade policy traditions and objectives. But it was clear that
Sweden would be working in a new trade policy setting, together with the other EU members. Thus
the review, though the timing was somewhat awkward, was a good occasion to sum up Sweden's trade
policy achievements, on the verge of entering into new forms of co-operation, both in the European
context and multilaterally in the WTO.
6. Important developments had affected Sweden's trade policy since its first TPRM review in
1990, both domestically, in the regional context and on the multilateral level. Sweden's long-standing
open and liberal trade policy reflected a high dependence on foreign trade. Exports and imports each
represented roughly 30 per cent of gross domestic product (GDP). The early successes of Swedish
industry were to a high degree a result of exposure to foreign competition and open markets
internationally, allowing economies of scale. Many of Sweden's largest industries exported well over
half their output. Moreover, considerable production capacity was maintained abroad through direct
investment in industrialized and developing countries. Imports also played a crucial rôle, complementing
domestic production, stimulating efficiency in the domestic economy and exerting downward pressure
on prices.
7. Free trade was, and would continue to be, a cornerstone of the trade policy of such a
trade-oriented country. Sweden had therefore always promoted a multilateral, rules-based system for
world trade, as proven by its active engagement in all GATT rounds. The reliance on an open
multilateral trading system was even more crucial in view of Sweden's present economic difficulties;
in the severe recession output had fallen for three consecutive years, 1991-93, with unemployment
and the public deficit reaching record levels. However, a continued dramatic rise in exports was expected
to boost total production of goods and services by almost 2.5 per cent in 1994; this would be impossible
without open export markets. Economic activity was expected to strengthen in 1995 due to expanding
investments in domestic-oriented production. The Swedish Government remained concerned about
reducing its large budget deficit, prompting further cuts in government spending and certain tax increases.
8. It was illustrative of the trend in Sweden's trade policy that two areas previously subject to
significant regulation and restrictions, textiles and agriculture, had undergone extensive reforms since
the previous review. In textiles and clothing all quantitative restrictions on imports had been abolished
in 1991, Sweden had left the MFA, and the former aid programme for the domestic industry had been
terminated on 1 July 1992. A guiding principle of the food policy, adopted by Parliament in 1990,
was that agriculture should, in principle, operate under the same market conditions as other sectors.
The reform mainly implied domestic deregulation with the phasing out of export subsidies being of
key importance. Border protection had been maintained, but was to adjusted according to the agreements
reached in the Uruguay Round.
9. The new food policy marked a major change to a more market-oriented system. Temporary
arrangements encouraging reduced surplus production accompanied the reform to assure a socially
accepted transition. Reforms began on 1 July 1991, when Sweden applied for EU membership.
Expectations of future membership influenced the reform programme, and Parliament had adjusted
the food policy in certain areas to facilitate application of the Common Agricultural Policy from
1 January 1995. C/RM/M/54 Trade Policy Review Mechanism
Page 4
10. Concerning regional integration, the representative noted that Sweden's main trading partners
were in Europe; in 1993 trade with western Europe had accounted for more than 70 per cent of exports
and imports. Liberalization at the regional level was an important element of trade policy and in 1972
Sweden and the other EFTA countries had concluded free trade agreements with the EEC. Further
important advances in European integration had occurred since Sweden's first review; the agreement
on the European Economic Area (EEA), providing free movement of goods, services, capital and
manpower within the area, had entered into force on 1 January 1994. Sweden and some other EFTA
countries had also applied for full EU membership. The accession negotiations had been concluded
successfully in early 1994. Accession had been accepted in a Swedish referendum, and assuming that
outstanding ratification procedures were completed as envisaged, Sweden would enter the EU on
1 January 1995.
11. In parallel with strengthened regional ties, Sweden had worked actively towards a successful
conclusion of the Uruguay Round. Multilateral trade liberalization should keep pace with regional
integration in order to ensure that benefits were extended to all countries, not only as a matter of
principle, but also because Swedish industry was present around the world. Sweden thus had had many
specific trade interest to look after in the negotiations. The Uruguay Round results had generally been
very well received at the political level and among private business in Sweden. The positive outcome
in certain areas was in no small measure due to the invaluable co-operation with Nordic colleagues.
Parliament would approve the results and Sweden's accession to the WTO shortly.
12. As an EU member, Sweden would work towards keeping Europe open and competitive. Sweden
would not abandon its long-standing support for free trade. Accession to the EU implied certain
modifications of Sweden's present trade and tariff policy; in some areas, such as textiles, this entailed
temporary new restrictions. The Secretariat's report contained some other examples but no analysis
should overlook the dynamic, trade-creating aspects of the EU; this was a fundamental point that should
have been given more emphasis in the Secretariat report. Moreover, in several respects the results
of the Uruguay Round would contribute to darapening any negative consequences of Sweden's transition
to the EU, not only in the area of tariffs but clearly also in textiles. At any rate, the working party
that would examine the EU enlargement and the upcoming Article XXIV:6 negotiations would provide
due opportunity to discuss in detail coming changes in Sweden's trade and tariff policy. Sweden C/RM/M/54
Page 5
III. STATEMENT BY THE FIRST DISCUSSANT
13. The first discussant (Mr. A. Constantinescu) considered the present review important to get
an overall picture of Sweden's trade policy relative to the general economic situation and to assess
the coherence and implications of Sweden's existing trade measures and instruments. Sweden's developed
and outward-oriented economy was sensitive to domestic factors and to the external environment.
Its recent performance had been affected by built-in structural imbalances, particularly high public
expenditure. The social security system, monopoly public sectors and devaluations had helped to sustain
demand and somewhat disguise the need for improved efficiency and adaption to a changing environment.
The deep recession during 1991 to 1993 had prompted structural reforms and fiscal consolidation which,
according to the authorities, had "created extremely favourable conditions for strong and stable economic
growth in the future".
14. Data suggested that the present recovery was export-led, although the economy appeared "dual"
in character, with export-oriented industries improving performance while domestic demand remained
depressed. The export expansion had been fuelled, inter alia, by improvements in competitiveness.
Free trade was a fundamental objective for the Swedish authorities, proven by their attachment to the
multilateral trading system, and openness towards regional co-operation and integration. In spite of
the difficult economic situation Sweden had been a leader among OECD countries in taking measures
towards deregulation and liberalization since 1990. Steps included strengthening of competition (reduced
state aid to industry and abolition of sector-specific aid, elimination of administered prices and export
subsides in agriculture); further liberalization and streamlining of the export and import régimes
(continued low import tariffs, no anti-dumping measures and countervailing duties); and new legislation
in competition and public procurement. The question was, however, whether free trade was sufficient
to pull Sweden out of the recession, or whether supplementary measures were required to improve
its economic structure. Moreover, how would trade policy mechanisms and instruments be affected
by accession to the EU?
15. Sweden supported various forms of economic integration. Active in EFTA, Sweden had
promoted the European Economic Area (EEA), which extended pan-European co-operation. Sweden
had also worked for the recent gradual inclusion of former European communist countries, including
the Baltic States, into the continental economic structure. The various free trade agreements did not
cement trade relations into "trade blocks", with an examination of actual trade flows confirming this
view. The results of the Uruguay Round would encourage trade with non-European markets such
as Canada, the United States, Japan and countries in the Asia-Pacific region. Regarding trade with
countries in central and northern Europe, he asked how Sweden's accession to the EU would influence
this trade and how Sweden, as a member of the EU, could speed the acceptance of these countries
into the Union.
16. Noting that Sweden attached importance to environmental protection and, hence, to
comprehensive policies in the field, he invited Sweden to elaborate on its experience, particularly
regarding the promotion of sound environmental policies and the link to specific trade policy instruments.
Did Sweden maintain any technical barriers related to environmental protection? Additional questions
related to transparency in the publication of trade laws and ordinances; the functions of the National
Board of Trade and its relationship with the Ministry of Foreign Affairs and the Ministry of IndusIry
and Commerce; and, finally, the relationship between customs administration and "other authorities"
in the implementation of border controls. C/RM/M/54 Trade Policy Review Mechanism
Page 6
IV. STATEMENT BY THE SECOND DISCUSSANT
17. The second discussant (Ambassador B. Gardner) felt that Sweden was one of the contracting
parties that had most faithfully taken to heart and implemented the spirit of the GATT. Its trade policies
were in most ways a model of openness, and had contributed greatly to Sweden's deservedly admired
economic and social status. Sweden had confronted its economic challenge with great dynamism in
recent years; it had strengthened its ties with eastern neighbours in response to the end of the Cold
War, been among the most active champions of the Uruguay Round, and had pushed vigorously to
expand free trade and competition through bilateral free trade agreements, the ambitious European
Economic Area and the decision to accede to the European Union. While pursuing these objectives,
Sweden had liberalized its own economy, and increased competition by stressing private enterprise.
tax reductions, deregulation, privatization and deficit reduction.
18. Sweden's exports had risen significantly over the past two years in response to the krona float
and increased competitiveness due to cost-induced rationalization from imports, lower sector-specific
subsidies and trimming of the public sector. The medium-term costs of rationalization were serious
unemployment, an additional strain on the government budget, a financial and real estate crisis and
higher interest rates. However, consumers had saved some SEK 3 billion, about US$50 per capita,
on purchases of textiles alone in the first year following Sweden's decision to liberalize textile imports.
This increased purchasing power had strengthened Sweden's economy and living standards, and Sweden's
other liberalizing measures would have similar positive consequences. The Swedish economy was
thus emerging significantly more competitive and healthy from the recession and rationalization. In
acceding to the European Union, Sweden would benefit from increased competition, larger markets,
lowered units costs, economies of scale and harmonized regulations. As such, Sweden should be
congratuled on its decisions to accede, provided Sweden did not lose its admirable zeal for liberal trade
and did not succumb to ever-increasing regulation stunting agricultural, industrial and regional policies.
He sought reassurance that Sweden intended to work within the EU to foster liberal trade policies and
to resist greater central economic regulation, rather than to embrace trade preferences and subsidies.
19. Regarding the consequences for Sweden's agricultural policy he noted that the likelihood of
accession had impeded and retarded, even stopped, the progressive deregulation carried out since the
mid-1980s. The expansion of subsidized agricultural exports, for example, clearly contradicted the
goals of the Uruguay Round; other areas and new EU obligations were of equal concern. Would
Sweden work within the European Union to end discriminatory import restrictions on agricultural
products, such as on bananas? The authorities had proposed to levy high fees on rice stocks, a policy
which in his view contradicted GATT Article Il. How did Sweden intend to harmonize its milk
production policies with the subsidy régime of the EU? The broader issue was how Sweden could
harmonize its agricultural policies with those of the EU without sacrificing hard-won benefits from
reduced state support.
20. Sweden had made historic changes in recent years to reduce industry assistance, while the
requirements of the EU, unfortunately, were not always in harmony with such changes. He invited
Sweden to comment on how they intended to address these differences, notably with respect to the
EU Broadcast Directive and its quota system. Further, EU m.f.n. tariffs on paper and paperboard
were 7.4 per cent and those of Sweden were 2 per cent; Sweden's tariffs would be lowered, and
eliminated on wood products, according to its Uruguay Round undertaking. What effects were adoption
of EU tariffs expected to have on Swedish industry, possible compensation owed and the likely loss
of competitiveness over time due to higher tariffs? The electronic and semiconductor sectors were
particularly interesting since Sweden's rates in the Uruguay Round were significantly lower than those
of the EU. Sweden C/RM/M/54
Page 7
21. In concluding, the discussant stressed his nearly unalloyed praise for Sweden's efforts to liberalize
its economy and trusted that Sweden would be a voice for liberal trade principles and practices within
the EU. C/RM/M/54 Trade Policy Review Mechanism
Page 8
V. STATEMENTS BY MEMBERS OF THE COUNCIL
22. The representative of the European Communities noted that in joining the EU, Sweden would
undergo another review of its trade régime in six months. The European Communities enjoyed a
long-standing, close and very firm trading relationship with Sweden, accounting for more than 50 per cent
of its imports and exports. The desire to deepen this relationship had always been present, as
demonstrated by free trade agreements and the creation of the EEA. The accession of Sweden to the
Communities was the final step of a natural process.
23. Sweden's accession to the EU was well covered in the Secretariat's report, although the report
was too pessimistic about the consequences. Judgements about the likely effects or impact of accession
were premature and should not, in principle, be part of the current review of the past four-year period.
Discussions under Article XXIV:6 would be the appropriate forum to evaluate the consequences of
accession for the three countries (Austria, Finland and Sweden) that had chosen to become members
of the Community. He was firmly convinced that Sweden's accession would benefit the EC, Sweden
and the world at large. He was of the view that Sweden would not have wanted to join an entity with
an attitude different from its own regarding open, liberal policies.
24. The representative of India stated that Sweden had followed a liberal trade policy in recent
years with regard to textiles and clothing. The position would change with Sweden's accession to the
EU; thus vis-à-vis Indiaabout 17 product categories would be subject to quotas as from 1 January 1995.
He hoped that Sweden as a member of the EU would persuade other members to follow a more liberal
approach towards textiles and clothing imports. He wished Sweden success in its EU membership,
having noted that Sweden did not intend to abandon its traditional trade policy objectives.
25. The representative of Norway, also on behalf of Finland and Iceland, observed that the recent
change of Government in Sweden implied no deviation from Sweden's traditional dedication to a free
and predictable world trade régime. Sweden had attached importance to reaching substantial results
in all areas of the Uruguay Round, including a reduction in tariffs and non-tariff barriers, a strengthened
GATT system and the achievement of multilateral agreements in the new areas.
26. Sweden's dramatic economic downturn had been reversed in 1993. It was important to note
in this context that the authorities had never tempted to cushion the recession by increasing selective
aid and support programmes to vulnerable industries or to conceal problems behind artificial import
barriers, but had declared that financial assistance to enterprises should be minimized to lay the ground
for sound and healthy production in the long run. An extensive employment benefits and training
programme had eased the effects of the crisis on individuals. Sweden's policy and action during this
period deserved close study and due reflection.
27. He noted that Sweden maintained import licensing only on certain "sensitive" goods. Import
restrictions had been removed on textiles in 1991, and agricultural imports had been deregulated gradually
since 1990. He commended Sweden for its generally low tariff rates negotiated in the Uruguay Round.
However, Sweden's present trade régime appeared generally more liberal than the one that would apply
from 1 January 1995. At present, tariffs were notably below EU levels in all major Tariff Study
categories except textiles, clothing and rubber. He trusted that Sweden would maintain its proven
dedication to liberal and predictable world trade in the new arena it was about to enter. Certain aspects
of trade within the EEA would also be affected by Sweden's entry into the EU. Norway and lceland
would return in other fora to the negative effects of Sweden leaving EFTA, particularly regarding market
access for fish and some other products. Sweden C/RM/M/54
Page 9
28. The representative of Australia welcomed the fact that, according to the Secretariat, in areas
such as agriculture, textiles and clothing, Sweden had been in the forefront among OECD countries
in taking measures towards deregulation and liberalization since 1990. In that period, the main
developments affecting Sweden's trade had included the abolition of restraints on imports of textiles,
clothing and leather footwear; the conclusion of bilateral and regional free-trade agreements; a new
Swedish Competition Act; a new food and agricultural policy that, inter alia, abolished guaranteed
intervention prices, although variable import levies had been retained pending the Uruguay Round
results; entry into force of the European Economic Area (EEA); Sweden's participation in the Uruguay
Round; and Sweden's impending EU membership. Liberalization appeared to have slowed as EU
membership approached.
29. Australia would welcome Sweden taking an active rôle in minimizing any negative impact of
its accession to the EU on third countries. Australia was particularly concerned that existing market
access be maintained in the period between accession and the effective date of implementation of the
EU's Uruguay Round commitments and further until GATT Article XXIV:6 negotiations would be
completed. Acceptable arrangements for third party trade should be established for this as well as
future EU accessions, in her view, Article XXIV:6 negotiations should be undertaken prior to
implementation of enlargement arrangements of a customs union. Commodity-specific current and
minimum access commitments agreed in the Uruguay Round were applicable on a national basis, and
should be cumulated for the EU(12) and the joining members. The comitments strengthened the
Article XXIV:6 framework considerably and negotiations should producd in this context.
30. Australia had sought a larger EU quota for high-quality beef to cover both its existing trade
with Sweden and its minimum access commitments arising from the Uruguay Round. However, the
European Commission had stated that commitments of acceding countries would cease upon their EU
entry and that the EU therefore had no obligation to adjust its access arrangements, with claims for
compensation to be negotiated under GATT Article XXIV:6. Trade would continue under interim
arrangements until negotiations were completed. Sweden's active participation in ensuring maintenance
of market access levels would be welcomed.
31. The representative of Japan greeted Sweden's EU membership and hoped it would reinforce
Sweden's free-trade régime. Japan and Sweden held regular bilateral consultations and there were
no major frictions regarding trade or investment. He asked to what extent EU membership would
affect Sweden's trade policies, particularly concerning the application of the common EU tariff and
anti-dumping measures. Would Sweden and the EU present a new joint tariffoffer? Japanese companies
based in Sweden were very interested in these questions and would appreciate information on any change
in present policies or procedures.
32. The representative of Brazil drew attention to Sweden's commitments in the Uruguay Round
regarding tariffication and tariff reductions and asked both about the extent to which the adoption of
EU trade policies would jeopardize Sweden's commitments in market access, and about the procedures
to be followed to align these commitments with Sweden's EU membership. Although textiles tariffs
would fall upon Sweden's accession to the EU, Brazil was concerned about the reintroduction of import
quotas, which would also impose additional administrative costs for Sweden and lead to higher prices.
The new quotas were a setback for textile exporters, especially as the increased EU quotas might not
reflect total potential trade. He hoped that the entry into force of the WTO and the enlargement of
the European Union would be complementary, rather than contradictory, events. C/RM/M/54 Trade Policy Review Mechanism
Page 10
33. The representative of Canada stated that Canada's trade relations with Sweden were very healthy
with no outstanding points of contention. He praised Sweden's recovery from the recession and was
certain that the recent growth in exports would be matched by higher imports once the domestic economy
strengthened. Sweden had made a considerable contribution to the liberalization of international trade
through its trade agreements and its rôle in the Uruguay Round and Canada hoped that Sweden would
continue to make a positive contribution to the multilateral trading system. He sought details regarding
a number of specific issues, supplementary to questions provided in writing earlier, and covering recent
changes in provisions regarding the award of public supply contracts; the introduction of procurement
preferences, notably the preferential policies of the EU procurement directive; existing policies with
regard to imports of eggs, excluding non-Nordic supplies; the operation of a "fat production levy"
on fats and oils and the treatment of domestic production relative to imports; and the implications
of EU membership for imported fruits and vegetables.
34. The representative of the United States welcomed Sweden's important contribution to the trading
system as well as its active rôle in the GATT and its commitments undertaken in the Uruguay Round.
He commended Sweden for its recent steps, particularly through the EEA Agreement, to liberalize
its laws and regulations in areas such as competition policy, public procurement and investment policy.
Sweden's accession to the EU had important implications, including for the further development of
the common EU régime. He encouraged Sweden to work with the European Union to lower trade
and investment barriers.
35. Noting that Sweden's accession to the EU would bring changes to Sweden's trade and investment
policies, he invited Sweden to supply information regarding any timetable for amending legislation
to comply with EU requirements and the results of the Uruguay Round. He underlined the importance
of naintaining historical trade flows, given that m.f.n. tariffs were generally set to increase. In
agriculture, he noted that accession would result in a number of unwelcome developments, for example,
an expansion of subsidized agriculture exports contradicted the spirit of the Uruguay Round. The
Government had proposed to levy a fee on rice stocks, a measure the United States would consider
inconsistent with the GATT, specifically Article Il. Given that Sweden would also have to adopt the
EU banana régime, he asked if changes in the system would be consistent with GATT requirements
and if Sweden work within the European Union to end this import restriction?
36. Appreciating the removal of barriers to foreign and domestic private capital in Sweden, he
wondered both whether liberalization extended to non-EU members, and what investment restrictions
remained. He noted that Sweden had adopted the EU Broadcast Directive through the EEA, and asked
if Sweden would adopt the quota system and whether it would advocate a more liberal approach to
audiovisuals within the European Union. Sweden's implementation of the preferential provisions in
Article 29 of the EU's Utilities Directive was a matter of concern. He welcomed Sweden's acceptance
of the OECD Shipbuilding Agreement.
37. The representative of Hong Kong complimented Sweden for its generally open and liberal trade
régime, as well as for its elimination of import restrictions on textiles and clothing and its contribution
to the successful conclusion of the Uruguay Round. The alignment of Sweden's trade policies with
those of the EU implied generally higher tariffs, increased resort to anti-dumping measures and
re-introduction of quotas on textiles and clothing. He hoped that Sweden's accession to the EU would
not create major problems for third parties and that Sweden would work towards liberal world trade
within the EU. Sweden C/RM/M/54
Page 11
38. The representative of Poland commended Sweden for its very active and constructive rôle in
the Uruguay Round, but questioned the value of Sweden's commitments as it was about to enter the
European Union. Could Sweden quantify the impact of its Uruguay Round commitments and the
accession to the Union? He would also welcome information regarding abolition of variable import
levies in Sweden, and whether the first tariff reductions in agriculture would occur on 1 July 1995.
Noting that firm- and sector-specific industry support had been curtailed, he invited Sweden to elaborate
on existing industry-wide schemes. Details concerning tax concessions on energy for manufacturing
industries and commercial horticulture were requested.
39. The representative of Egypt sought information concerning the impact of Sweden's EU
membership on agricultural imports from developing countries, in particular rice, fruits and vegetables;
and textile imports, especially from small suppliers such as Egypt. He also asked about future treatment
for imports into Sweden under the Generalized System of Preference.
40. The representative of Argentina appreciated Sweden's constructive attitude in the Uruguay
Round and wished Sweden success in its accession to the EU. He noted the concentration of Sweden's
foreign trade with European countries and asked about prospects for imports from developing countries,
especially in Latin America. Other specific queries related to the structure of trade policy formulation
in agriculture, the importance of self-sufficiency as a food policy objective, current and future border
protection for agricultural products and the participation of foreign suppliers in public procurement. C/RM/M/54 Trade Policy Review Mechanism
Page 12
VI. REPLIES BY THE REPRESENTATIVE OF SWEDEN AND ADDITIONAL COMMENTS
41. The representative of Sweden noted the praise for Sweden's long-standing support for free
trade and recognized that Sweden's accession to the EU caused some concern about the future course
of Sweden's trade relations. He did not wish to make statements that could in any way affect negotiations
under Article XXIV:6, but would nevertheless attempt to provide satisfactory answers to the queries
that had been made.
(i) Macroeconomic recovery and the rôle of trade
42. The Swedish economy could he characterized as being "dual" at present. The export industry
had experienced an unprecedented boom following the krona float in late 1992, while growth in the
domestically-oriented industry had been sluggish. However, he stressed that the Government had not
sought a krona depreciation but rather Lad fought hard, at great cost, to defend the Swedish currency.
In retrospect, this had perhaps been a futile fight, but nevertheless a clear reflection of the Government's
determination not to repeat the mistakes of devaluation policies of the 1970s and 1980s. The export
expansion, although important, was certainly not sufficient to achieve economic recovery, and more
broadly based increases in production, investments and domestic demand were needed. Prospects looked
rather bright for stronger economic activity in 1995 due to a significant expansion of investment; real
GDP was estimated to increase by nearly 3.5 per cent in 1995. However, high interest rates continued
to hamper a more fully fledged economic expansion, which was a major reason why reductions in the
budget deficit and the foreign debt were priority targets. A further SEK 20 billion in budget
reinforcements would be proposed in the Budget Bill in January 1995.
43. He added that currency changes were not the only reason why Swedish industries had regained
some of their international competivity in recent years; continued structural adaptation, higher
productivity and wage restraint had been important contributing factors. An open trade policy had
played a key rôle in maintaining pressure for structural adaptation.
(ii) Trade and domestic liberalization
44. The Swedish representative noted that the Government had renounced sector-specific support
to industry and that current adjustment was largely driven by market forces. The steel industry and
shipbuilding were examples of sectors where significant restructuring had taken place. However, the
authorities considered it essential that structural adjustment be effected in a socially acceptable way;
hence there was a focus on active labour policies.
45. Concerning more specific requests and comments on recent trade policy trends in Sweden,
the representative referred to the written responses that had been made available to Council members
(C/RM/M/54/Add.1) and offered further clarification.
(iii) Sweden's contribution to the Uruguay Round and the possible effects of accession to the
European Union
46. The representatiye of Sweden noted that a broad political consensus had existed for many years
in Sweden with respect to general trade policy objectives. The present Government had stated or several
occasions that a priority objective would be to work within the EU to ensure that the Union remained
open, not least in trading with developing and central and eastern European countries. How successful
Sweden would be in pursuing this objective remained to be seen, but he restated that Sweden regarded
the EU as a dynamic, trade-creating entity and that Sweden's objectives were shared by the EU at large. Sweden C/RM/M/54
Page 13
In negotiations with the EU on enlargement of certain quotas, such as on textiles, Sweden had sought
and largely obtained quotas that corresponded to current trade flows. EU membership, including the
access to larger markets and increased competition, was expected to strengthen Sweden's economy
for years to come.
47. Sweden intended to be fully integrated into the Customs Union from 1 January 1995 and would
consequently apply the EU common external tariff. Sweden's Uruguay Round schedules would be
subsumed by the EU as of that date. Some delegations had voiced concern about possible erosion of
Sweden's contributions to the Round. Any fears of wholesale erosion were unjustified; although some
Swedish tariffs would be adjusted upwards and others downwards, the net result could only be assessed
on the basis of a statistical analysis yet to be completed. Any deconsolidation of bound tariffs would
be a matter for Article XXIV:6 negotiations, where Sweden would be represented by the European
Commission, and could not be pursued in the context of this review.
48. Sweden's adjustment to the Common Agricultural Policy (CAP) and the relation to commitments
in the Uruguay Round were complex questions and could only be addressed in a general manner.
The formal implication was that Sweden's commitments would be subsumed by the EU, and that any
claims for compensation was a matter to be raised in Article XXIV:6 negotiations. In practice, certain
measures abandoned by Sweden through its agricultural reform, such as production quotas and export
refunds on dairy products, would be reinstated. However, Sweden would draw on the very positive
experience of its national reform in negotiations on the future orientation of the CAP.
49. In Uruguay Round negotiations on tariffs on industrial products Sweden had sought, in parallel
with bilateral objectives, to harmonize its undertakings with those of the EU. The respective final
rates offered showed a net narrowing of the tariff gap between Sweden and the EU on an average,
trade-weighted basis. Regarding GSP, he noted that this scheme remained autonomous and that Sweden
would adopt the Community GSP system. The scheme was under renegotiation and therefore no precise
information regarding possible consequences could be provided at this stage.
50. The representative of Australia referred to written questions submitted earlier and asked for
further clarification, in particular on the implications for existing agricultural support of EU payments
under the CAP and regional development schemes; the effects of adopting a more restrictive import
régime vis-à-vis third countries and possible alleviation measures; steps to ensure the maintenance
of traditional trade flows; and interim arrangements in the period between Sweden's accession to the
EU and the implementation date for the Uruguay Round commitments of the EU.
51. The representative of Sweden regretted that he was not in a position to provide precise answers.
It was impossible at this stage to quantify the effect of replacing existing Swedish schemes with EU
support measures. He reiterated that Sweden had sought to secure current trade flows in negotiations
on EU-wide quotas. He noted Australia's concerns regarding the need for transitional arrangements.
52. The first discussant commended Sweden for its clarifications, comments and responses. The
review had consolidated the image of Sweden as a solid, outward-oriented economy. He hoped Sweden
would continue in this vein as an EU member.
53. The second discussant appreciated Sweden's trade policies and practices that applied at present.
He did not envy Sweden for its obligations to raise certain tariffs upon accession to the EU, actions
which could harm the competitiveness of Swedish industries. He encouraged Sweden to be among
the leaders within the EU in promoting a further liberalization of world trade. C/RM/M/54 Trade Policy Review Mechanism
Page 14
VII. CONCLUDING REMARKS BY THE CHAIRMAN OF THE COUNCIL
54. The Council has now completed its second review of Sweden's trade policies and practices.
In just over two weeks from now Sweden will accede to the European Union, hence all future
examinations of Sweden will be conducted within the reviews of that entity. These remarks, made
on my own responsibility, summarize salient points raised during the discussion. They are not intended
to substitute for the Council's collective evaluation and appreciation of Sweden's trade policies and
practices. Details of the discussion will be reflected in the minutes of the meeting.
55. Council members expressed high praise for Sweden's adherence to liberal trade principles,
and complimented Sweden on the important market opening steps taken autonomously in the past four
years, especially in textiles, clothing and agriculture. Sweden had also worked determinedly for a
successful conclusion of the Uruguay Round.
56. After a comprehensive opening statement by Sweden, the Council discussion developed under
three main themes:
(a) Macroeconomic recovery and the rôle of trade
57. Members recognized that Sweden had confronted particularly difficult economic circumstances
since its first Trade Policy Review, with real GDP declining for three consecutive years from 1991.
However, in 1994 the economy had regained momentum; this was largely driven by export-oriented
sectors, underlining the importance of trade as an engine of growth and prosperity. It was noted that
Sweden was emerging from its deep recession showing elements of a dual economy, as domestic demand
remained subdued in 1994. Sweden's recent experience indicated that its generally open trade régime
should be supported by complementary measures to address domestic imbalances, particularly the public
deficit.
58. In response, the Swedish representative agreed that Sweden's economy showed characteristics
of a dual economy. He explained that this was in part because of an export boom following the
depreciation of the krona. However, Sweden recognized that export expansion should be backed by
a more broadly based increase in domestic activity to ensure recovery. Although prospects were bright
due to investment growth, high interest rates continued to hamper expansion; thus, budgetary and
foreign debt reductions were a priority. Improvements in Sweden's competitiveness were due not only
to currency depreciation but also to continuing structural adaptation, in which the continued pursuit
of an open trade régime played a very crucial rôle.
(b) Trade and domestic liberalization
59. Participants expressed strong admiration for Sweden's maintenance and further opening of its
liberal trade régime during the recent recession. In addition to agricultural deregulation and liberalization
of trade in textiles and clothing, regional integration had been promoted with the entry into force of
the European Economic Area, EFTA free-trade agreements with countries in central and eastern Europe,
Turkey and Israel, and bilateral free-trade agreements with the Baltic States. New domestic legislation
on competition policy and public procurement had strengthened disciplines in these areas. Privatization
and liberalization of the investment régime had broadened the scope for foreign presence in the economy.
One participant commended Sweden for its recent signing of the OECD Shipbuiding Agreement. Sweden C/RM/M/54
Page 15
60. Members sought information on specific aspects of Sweden's policies and practices, including
the publication of trade-related regulations; the functions of the National Board of Trade; the
involvement of authorities other than customs in border controls; the link between environmental policies
and trade instruments; state-trading in alcohol, oilseeds and cereals; the operation of a fats production
levy; exportsubsidies for processed food products; import restrictions oneggs; and recent amendments
in regulations concerning public supply contracts. Sweden was asked to elaborate on the operation
of industry-wide support schemes and on concessions for energy-intensive industries and commercial
horticulture.
61. In reply, the representative of Sweden referred to the written responses that he had made available
and offered to provide any further clarification. He pointed out, in particular, that the Government
had long renounced sector-specific assistance to industry. Adjustment took place in accordance with
market forces, although it was a fundamental objective that this was to be done in socially acceptable
forms and retraining programmes were undertaken to improve the mobility of labour.
(c) Sweden's contribution to the Uruguay Round and the possible effects of accession to the
European Union
62. Members appreciated Sweden's major contribution to obtaining substantive results in all areas
of the Uruguay Round. However, some anxiety was expressed as to the situation that would prevail
after Sweden's entry into the European Union; in this connection, importance was attached to the
maintenance of Sweden's historical trading ties and existing market access. One participant stressed
the net trade-creating effect of Sweden's integration with its European partners and considered premature
any judgement on the effects of Sweden's accession to the EU at this stage.
63. Specific questions were raised concerning the impact of higher EU tariffs, particularly on forestry
products, electronics and semiconductors; the adoption by Sweden of EU anti-dumping measures;
changes in GSP treatment; the effects on agricultural trade and Sweden's Uruguay Round commitments
of adoption of the CAP, particularly on beef, and potential expansion of subsidized exports; the import
régime to be applied on specific products, notably bananas, rice, fruit and vegetables; and the
reintroduction of quotas on textiles and clothing.
64. It was noted that Sweden's departure from the European Free Trade Association would affect
the preferential access currently enjoyed by some EFTA partners for fish and certain other products.
EU accession could also affect the terms of preferential access for central and eastern European countries;
the hope was expressed that Sweden would work within the European Union for further integration
of these countries.
65. Other questions raised under this heading covered audiovisual services and the adoption of
the EU broadcast directive; preferential treatment of EU suppliers in public procurement; the extension
of liberalization of Sweden's investment regulations beyond participants in the European Economic
Area; and any remaining restrictions affecting foreign investment.
66. In reply, the representative of Sweden said that the EU was seen as a dynamic trade-creating
entity. While he could not predict the effect of Sweden's membership on trade patterns, a priority
objective of his Government remained the maintenance of an open and competitive policy which would,
inter alia, facilitate trade with developing and central and eastern European countries. He reiterated
that, as a member of the EU agreements with third countries, Sweden would aim at maintaining the
existing levels of trade. In textiles, Sweden had secured quotas that should generally maintain existing
levels of trade. The integration of Sweden's tariff into the common external tariff on 1 January 1995 C/RM/M/54 Trade Policy Review Mechanism
Page 16
would lead to both upward and downward adjustments; however, he said that these issues belonged
to the Article XXIV:6 negotiations. He added that Sweden would adopt the Community GSP system.
67. The representative of Sweden continued that Sweden's WTO commitments on agriculture would
also be subsumed by those of the EU. Some measures such as production quotas and export refunds
would be reintroduced; however, Sweden would draw on the positive experience of its agricultural
reforms in negotiations on the future of the CAP. While no clear answer could yet be given on future
issues such as banana policies, Sweden attached importance to stable supplies and low prices. He noted
that the fee on rice stocks was a temporary measure intended to avoid trade distortion, was
non-discriminatory and would not prevent traditional imports. He added that Sweden's commitments
under the WTO Agreement on Government Procurement corresponded to those of the EU. Recent
changes inpublic supply contract conditions, made in line with commitments under the EEA Agreement,
implied a major increase in the coverage of entities, including expansion to utilities, and new provisions
for review and damages. Finally, the liberalization of inward direct investment applied to all sources;
practically all restrictions had been lifted and no changes would result from EU membership.
68. In conclusion, the Council greatly appreciated the positive rôle that Sweden has played in world
trade relations. Sweden's sense of "fair play" in agreeing to undertake its second Trade Policy Review
very shortly before acceding to EU membership was particularly well regarded. We wish the Swedish
authorities well in their new status as a member of the European Union and hope that Sweden will
continue to be a beacon for the promotion of free trade policies and practices at the global and regional
levels. |
GATT Library | pq223qh9048 | Trade Policy Review Mechanism. Sweden. Minutes of Meeting. : Addendum. Written Answers to Questions | General Agreement on Tariffs and Trade, January 26, 1995 | General Agreement on Tariffs and Trade (Organization) and Council | 26/01/1995 | official documents | C/RM/M/54/Add.1 and 0128-0143 | https://exhibits.stanford.edu/gatt/catalog/pq223qh9048 | pq223qh9048_90080597.xml | GATT_1 | 4,290 | 27,963 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
C/RM/M/54/Add.1
26 January 1995
Limited Distribution
(95- 0132)
COUNCIL
15-16 December 1994
TRADE POLICY REVIEW MECHANISM
SWEDEN
MINUTES OF MEETING
Addendum
Written Answers to Questions
The following communication has been received from the delegation of Sweden, responding
to questions raised during the Council meeting on the Trade Policy Review of Sweden.
Questions from first discussant
Macroeconomy
1. To what extent can Swedish accession to the EU be evaluated at this point?
2. Is external trade sufficient in brightening the economic perspective?
3. What supplementary measures are needed, e.g. monetary, fiscal and investment policies, in
order to lessen the burden of structural weaknesses and imbalances in the Swedish economy?
See general comments.
Trade with central and eastern Europe
1. To what extent will the EU membership influence trade with the respective country? How
will Sweden as member of the EU speed up the accession of those countries into the Union?
The Swedish EU membership implies a withdrawal from the EFTA convention and therefore
automatically from the FTAs and bilateral agricultural arrangements with Bulgaria, Hungary, Poland,
Romania, the Czech and Slovak Republics, Israel and Turkey. The same goes for the bilateral free
trade agreements with the Baltic States. Sweden will be part of the EU's corresponding agreements
with these countries as well as EU's other agreements with third countries. Having a long tradition
of promoting free trade, the Swedish Government will continue to support and actively work for an
open and liberal trade régime towards the EU neighbours. Against this background Sweden will aim
at maintaining the level of trade already achieved with its partners outside the Union.
. C/RM/M/54/Add.1
Page 2
Environmental policies and trade
1. Are there any technical barriers related to environmental protection?
The reason why not much is said in the reports is that most domestic environmental measures
have no connection with trade. When they do, a leading principle is that they should be applied in
the same way for imported and domestically produced products. Transparency in this field is important
and we try to make information available also in English. When it comes to global or transboundary
problems we believe that they have to be solved through international co operation.
Legal and institutional framework
1. Are all laws and regulations published in the "Official Gazette"?
All laws and regulations are published.
2. What is the rôle of the National Board of Trade? Its relationship with the ministries?
The National Board of Trade is the Swedish expert authority on foreign trade and trade policy.
The Board is an independent government agency, which operates under the general directives and budget
control of the Ministry for Foreign Affairs. A vital function is to advise the government and provide
it with a basis for negotiations and decisions. The Board reports to the Trade Department of the Ministry
for Foreign Affairs after consulting i a with industry, importers. trade unions and other governmental
bodies. The Board's analyses and reports are usually provided on specific request by the Ministry.
It is also the licensing authority for industrial goods.
Among the main divisions and units of the Board there are three Foreign Trade Divisions and
a Europe Information Unit. The foreign trade divisions deal with issues in GATT/WTO and other
multilateral trade issues, European integration matters, technical barriers to trade, custom tariffs and
licensing matters including dumping investigations. A chart showing the structure of Swedish trade
policy formulation is found in Section B(iii) of the Government report.
3. The relationship between customs administration and "other authorities" (the Swedish Board
of Agriculture)?
An administrative division of responsibility between the customs administration and the Swedish
Board of Agriculture has been done for practical purposes. The reason behind it is that veterinary
expertise is needed in the case of sanitary and phytosanitary regulations.
Questions from second discussant
Agricultural policy
1. Does Sweden intend to work within the EU to end import restrictions on agricultural products
such as bananas?
The EU banana régime in connection with Swedish accession is being discussed. Therefore,
we are at present not able to give an answer as to what changes might be made to the tariff, quota,
licensing and other provisions of the EU banana import régime in light of Swedish accession. In this
context, we would like to underline the importance we attach to secure consumer interest concerning
the supply of bananas, as well as keeping prices down. C/RM/M/54/Add.1
Page 3
2. Sweden's policy concerning rice imports, how to reconcile fees on stocks with UR and EU
practice?
The fee on rice stocks is a temporary measure intended to avoid a distortion of trade in rice.
Substantially higher EU prices might cause speculation. The fee is intended to be applied on rice in
stocks at 31 December 1994. The rice imports to Sweden in 1994 already significantly exceeds the
rice imports in 1993. Traditional import will consequently not be prevented. The fee proposed by
the government will be charged on all rice stocks, independent of origin and is thus non-discriminatory.
3. How to harmonize milk production with the subsidy régime of the EU?
See general comments.
Industrial policy
1. Sweden's intentions regarding the EU Broadcast Directive?
Sweden has implemented Article 4-6 in the EC Directive "Television without frontiers"
(89/552/EEC). This was effected by including a corresponding provision in the Act concerning satellite
transmission of TV programmes to the general public (1992:1356). The Act entered into force on
I January 1994, when the treaty on the creation of a European Economic Area entered into force.
Concerning terrestial television, no changes in legislation were considered necessary. The EU
Commission is at present preparing a report to i.a. the European Parliament and the Council on the
application of the Directive. The report may include proposals to change certain provisions of the
Directive. Sweden's position will depend on the content of this report.
2. The effects of adoption of EU tariffs on paper and pulp industry?
See general comments. It can be added that Sweden as an EU member will also be directly
affected by the acceptance of the EU of zero tariffs in the paper sector.
3. How to resolve the issue that Swedish rates on the electronic and semiconductors sectors are
significantly lower than those of the EU?
See general comments.
Questions from Canada
Tariffs
1. Is Sweden planning to adopt the EU Uruguay Round tariff commitments on 1 January 1995?
Yes, Sweden will adopt the EU tariff commitments on 1 January 1995. See also general
comments.
2. If so, do they intend to fulfil their obligations under Article XXIV and, if necessary,
Article XXVIII prior to the adoption of the EU tariff schedule?
The matter is handled by the EU Commission. Negotiations under Article XXIV:6 will not
be finished before 1 January 1995. See also general comments. C/RM/M/54/Add.1
Page 4
State trading
1. Could Sweden please provide an update on the granting of licences, "expected to be approved
by Parliament in the autumn of 1994"?
A bill on the new legal framework for granting of licences is expected to be approved by the
Swedish Parliament on Thursday or Friday this week.
2. What is the status of the existing exclusive rights held by VIN & SPIRIT AB? Will this change
on 1 January 1995, as expected?
These exclusive rights of AB Vin & Sprit are founded in Swedish law. the rights will be
abolished as from 1 January 1995.
3. The Swedish Board of Agriculture purchases oilseeds and cereals at a fixed price, sells the
crop to domestic processors and millers and exports the surplus with export subsidies from the state
treasury (Secretariat's report, Chapter IV(2)(xi), Chapter V(2)(i)(a) and Chapter V(6)(i)(c)).
- How is the rôle of the Swedish Board of Agriculture different from that of a state trading
enterprise such as the Wines and Spirits Corporation'?
- Please provide more detailed information on the operation and rôle of the Swedish Board of
Agriculture with respect to market activities in the grains and oilseeds sector.
The Swedish Board of Agriculture applies state trading activities in connection with the
redemption systems for grains and oilseeds. The Board has no exclusive right to import or to export
the goods concerned. This is a difference compared to the Wine and Spirit Corporation. However,
since the domestic prices are higher than the prices on the world market, in practice only the Board
is able to export surplus production of grains and oilseeds. For oilseeds (rapeseed) and grains the
Swedish Board of Agriculture (SBA) buys all quantities offered by the trade at fixed redemption prices.
The redemption prices are set by Parliament. For oilseeds the SBA buys the entire production and
sells it to the domestic crushing industry to meet its needs and any remaining quantities on the world
market. For grains the SBA buys the surplus production as defined by the trade per 1 November.
These quantities of grain are then exported by the SBA.
Standards
I . In the Secretariat's report (Chapter IV(2)(xiv)(b)), it is stated that Sweden's policy with regard
to standards is that Swedish norms should be identical with or based on international or European
standards. Does this policy conflict with the Animal Protection Act mentioned in Chapter V(2)(ii)(f).
The policy that Swedish norms should be identical with or based on international European
standards does not conflict with the Animal Protection Act since there are no standards in this area.
Government procurement
1. Is it the intent of Sweden to apply the policy described in Chapter IV(2)(xvi), first footnote,
with reference to contracts specified for coverage under the new Government Procurement Agreement?
As stated in the Secretariat's report the preference referred to in the footnote does no longer
apply. thus, it is not applicable under the new WTO Agreement on Government Procurement. C/RM/M/54/Add.1
Page 5
2. Will there be any modifications to/impact on Sweden's offer under the new Government
Procurement Agreement as a result of its joining the EU?
The scope and coverage of the Swedish commitments under the new WTO Agreement on
Government Procurement correspond to those of the EU. However, some minor changes in the Swedish
commitments have to be made to reflect the expanded coverage of the EU commitments as a result
of bilateral agreements between the EU and the United States.
3. What is the nature of recent changes with regard to the award of public supply contracts?
As stated in the Secretariat's report (Chapter IV(2)(xvi)) the changes were made to fulfil Sweden's
commitments under the EEA Agreement in accordance with the EU directive on public procurement.
Generally the principles of non-discrimination, impartiality and national treatment of the former
Ordinance Concerning Purchases, "Upphandlingsforordningen", correspond to the new Public
Procurement Act. However, the changes implied a major increase of the coverage of procuring entities.
In contrast to the previous legislation, which covered central government entities, the Public Procurement
Act applies to all central, local and regional entities as well as bodies governed by public law (public
companies entities including companies, associations and foundations established for the specific purpose
of meeting needs in the general interest not having an industrial or commercial character, etc.). The
Act also includes expanded coverage to entities in the utilities sector. In additional to the previous
Ordinance, the Public Procurement Act i.a. stipulates obligatory publishing of purchases in the Official
Journal of the EC above the indicated threshold as well as detailed rules for the award of contracts.
In addition to the EU directives the Act also stipulates non-discrimination and impartiality concerning
purchases below the threshold. The Public Procurement Act also introduced new provisions for review
and damages in accordance with the EU directives.
4. To what extent will procurement preferences be applied where they were not previously?
See general comments.
5. After 1 January 1995, will the preferential policies of the EU procurement directive apply?
See general comments.
Agriculture and agrifood
1. Please describe the export subsidy scheme for processed food cited in Chapter V(2) of the
Secretariat's report.
- Will it continue subsequent to accession to the EU?
- Has Sweden notified this programme as being subject to Uruguay Round reduction commitments?
In connection with the new Swedish food policy export subsidies were removed. In view of
the Swedish application for membership in the EU, a temporary scheme of support for the exportation
of certain processed food products based on principles of price compensation was introduced on
1 July 1993 and will end on 31 December 1994. The total available amount is SEK 150 million. Support
has mainly been granted for cheese and meat products. The support will not continue after the accession
to the EU. If, however, the scheme would have been applied after the entry into force of the UR
reduction commitments, the support would have been taken into account in the maximum amount of
export subsidy for each product group. C/RM/M/54/Add.1
Page 6
2. Since 1994, bottlers and importers of beverages packaged in bottles made of polyethylene
terephthalate (PET) have been required to obtain a handling permit issued only to those able to
demonstrate that they can recycle or re-use a minimum of 90 per cent of their PET bottles (Secretariat's
report, Chapter V(6)(i)(e)).
- Will this requirement stay in place after accession to the EU?
- If yes, will the requirement apply equally to imports from other EU states and imports from
third countries?
Sweden will maintain its system as an EU member. The system applies equally to imports
from EU countries and third countries.
3. Chapter V(2)(f) of the Secretariat's report notes that in accordance with current Swedish
veterinary standards' regulations, Sweden only accepts egg imports from other Nordic countries. Please
explain briefly, first, the nature of these regulations, and second, the reasons behind the exclusion of
non-Nordic egg imports.
The reason why Sweden only accepts egg imports from other Nordic countries is to protect
Sweden from salmonella. Sweden only accepts imports from countries applying the same control
programme for salmonella as Sweden does.
4. In Chapter V(6)(i)(c) of the Secretariat's report, reference is made to a "fat production levy".
Could Sweden provide more details regarding the levy on fats and oils, including any difference between
the way the revenue from domestic levy and the import levy is used?
A levy is charged on imported as weIl as domestically produced oils and fats. The amount
of the levy is the same for imported as for domestic products. The revenue from the levy on domestic
production is used by the Swedish Board on Agriculture to finance the buying of the Swedish oilseeds
production. This arrangement is necessary since the prices paid by the Board exceeds the world market
prices for which the oilseed harvest is sold to the domestic crushing industry. The levy on imported
oils and fats is a revenue in the state budget.
5. In Chapter 11(6) of the Secretariat's report, it is recognized that due to Sweden's accession
to the EU, certain tropical fruits and vegetables currently imported duty free on an m.f.n. basis will
become subject to a preferential EU tariff quota. Can the Swedish delegation indicate whether such
an impact will also occur for other fruits and vegetables?
Upon accession to the EU, Sweden will be covered by the preferential EU tariff quotas. EU
has a number of bilateral arrangements of this kind for fruit and vegetables. It should be noted that
at least part of the year Sweden applies a zero duty for some of these products.
Questions from Australia
1. Can Sweden advise of the level of trade that is conducted under m.f.n. conditions?
It is estimated that roughly 21 per cent (rough estimate based on 1990 import figures) of total
imports to Sweden is conducted under MFN conditions. C/RM/M/54/Add.1
Page 7
2. Has Sweden undertaken any study on the effect to its economy of payments under the common
agricultural policy and regional development schemes that may be introduced upon EU accession?
- Will the availability of this additional level of support to the agricultural sector lead to reductions
in existing means of support?
Sweden has undertaken certain studies on the effects to its economy under the Common
Agricultural Policy and regional development schemes that will be introduced at the accession. There
is at present, however, no final information available on this issue. This is due to the fact that Sweden
has not yet decided the level of structural, regional and environmental support to be applied in Sweden.
Each member state decides the level of support for these kind of schemes and they are also co-financed
by the EU. It is furthermore unclear to what extent export subsidies and intervention measures will
be used in Sweden.
National support systems, like exports refunds and certain regional support, will of course
be abolished at the accession and replaced by support from the EU agricultural budget.
3. Chapter IV, Box IV. 1 of the Secretariat's report summarizes the implications of EU membership
on Sweden's trade policy instruments. In this summary, the Secretariat has identified a number of
areas where it appears that more restrictive regulations or higher duties would apply. In this context,
would Sweden provide comments on how it will alleviate for third countries the effects of:
- increased tariffs on imports;
- adoption of the EU GSP scheme;
- the reintroduction of more comprehensive market regulations including administered prices,
exports subsidies and intervention measures;
- integration into the EU MFA régime with the resultant reintroduction of import licensing for
textiles and clothing.
See general comments.
4. As a result of Sweden's impending EU membership contracting parties will be seeking
consultations under Article XXIV:6. Can Sweden ensure that there will be no disruption to traditional
patterns of trade pending resolution of these negotiations?
See general comments.
5. Can Sweden comment on how its Uruguay Round commitments will be dealt with once it is
an EU member?
- Will Sweden ensure that normal trade flows continue in the interim period between their likely
accession to the EU on 1 January 1995 and the EU implementation of the Uruguay Round
commitments on 1 July 1995?
See general comments. C/RM/M/54/Add.1
Page 8
6. The Secretariat's report indicates (Chapter I(1)) that services account for the major share (over
70 per cent) of economic activity, and that services sectors grew particularly rapidly over the 1980s.
However, Table 1.1 indicates that while the services sectors' share in employment and GDP remained
fairly constant during the 1990s, services exports fluctuated. Would Sweden indicate which services
sectors are strongest in exports and whether it is these sectors that have continued to grow domestically?
See below.
7. Chapter 11(2)(ii) of the Secretariat's report indicates that Sweden considers the general agreements
on trade in services to be one of the major achievements of the Round. After telecommunications and
finance sectors, which are specifically mentioned, would Sweden comment on its priorities in post-Round
negotiations in services sectors?
A fundamental comment to question 6 is that statistics in the services field are still imperfect
and insufficient. The statistical irregularities for services exports during the early 1990s appear not
to be in full accordance with actual developments. Strong services export sectors are financial services,
transports, construction, engineering and management consulting services. Other strong potential sectors
for exports are e.g. telecommunications and environmental services. Due to statistical difficulties it
is hard to specify the service sectors that are growing strongest domestically. A special feature is that
services produced in the public sector (e.g. educational and health and social related services)
predominantly are consumed domestically. This production has been fairly stable. Many of the important
service sectors for export are growing also domestically.
Questions from Hong Kong
1. Sweden's trade policy régime will be affected by her accession to the EU scheduled for
1 January 1995. Will the alignment of tariff and trade measures, e.g. GSP scheme and anti-dumping
measures, take effect on 1 January 1995? And how will EU's implementation of the UR tariff
concessions affect the future tariff schedule on Sweden?
See general comments.
2. We note that the Swedish Government presented an Ecocycle Bill to her Parliament in
February 1993, calling for more cyclic management of goods and production (Chapter IV(2)(xiv)(e)).
This includes, inter alia, the principle of legally binding "producer responsibility". We should like
to know how traders can obtain information about development of the issue, particularly concerning
the respective responsibilities of producers, manufacturers, importers and distributors involved.
A summary in English of the Swedish Government's Ecocycle Bill is available.
Swedish ordinances (translation in English available) concerning producer responsibility are
in force since 1 October 1994 for packaging, waste paper and tyres.
Questions from the United States
1. What is Sweden's timetable for amending its legislation to comply with that of the EU? The
Uruguay Round?
See general comments. All legislation relating to the EU membership will enter into force
on 1 January 1995 unless legislation has not already been adopted as a result of the EEA Agreement. C/RM/M/54/Add.1
Page 9
2. With respect to the tariff implications of Sweden's membership on the EU, does Sweden intend
to work within the EU to ensure that its foreign suppliers will be able to maintain their historical trade
flows?
See general comments
3. What changes, if any, will be made to the tariff, quota, licensing and other provisions of the
EU banana import régime in light of Sweden's accession to the European Union? Will these changes
be consistent with GATT requirements?
Does Sweden intend to work within the European Union to end this import restriction?
The EU banana régime in connection with Swedish accession is being discussed. Therefore,
we are at present not able to give an answer as to what changes might be made to the tariff, quota,
licensing and other provisions of the EU banana import régime in light of Swedish accession. In this
context we would like to underline the importance we attach to secure consumer interest concerning
the supply of bananas, as well as keeping prices down.
4. Will Sweden's investment liberalization benefit non-EU member states?
The Swedish liberalization concerning inward direct investment applies ega omnes equally to
all investors regardless of national origin. Thus, the liberalization benefits also non-EU member states.
5. Will any of Sweden's investment restrictions remain after Sweden accedes to the European
Union?
Practically all restrictions have been lifted on foreign investment in Sweden. The orly exceptions
are conventional restrictions on air and maritime transports as well as military equipment. None of
these will be affected by the Swedish membership in the EU.
6. Will Sweden adopt the EU's broadcast quota system and will it advocate within the European
Union a more liberal approach on audiovisual content issues?
Sweden has implemented Article 4-6 in the EC Directive "Television without frontiers"
(89/552/EEC). This was effected by including a corresponding provision (paragraph 13) in the Act
concerning satellite transmission of TV programmes to the general public (1992:1356). The Act entered
into force on 1 January 1994, when the treaty on the creation of a European Economic Area entered
into force. Concerning terrestial television, no changes in legislation were considered necessary. The
EU Commission is at present preparing a report to i.a. the European Parliament and the Council on
the application of the Directive. The report may include proposals to change certain provisions of
the Directive. Sweden's position will depend on the content of this report.
7. Does Sweden intend to apply Article 29 of the Utilities Directive and does Sweden intend to
work within the European Union to end this discriminatory practice?
See general comments. C/RM/M/54/Add.1
Page 10
Questions from Japan
1. According to the application of common EU tariffs, how will the current Swedish tariffs be
changed? More concretely, which tariffs are to be increased or decreased? When can we expect new
tariff offers combining the Swedish ones and the other ones from the European Union? We understand
that this matter will be treated by the EC Commission but presently how will Sweden and the EC
Commission co-ordinate this matter?
See general comments.
2. As the Secretariat's report stated, Sweden has applied anti-dumping measures in very limited
ways. Will the Swedish Government change such an attitude after the existing European Union
anti-dumping measures apply to Sweden from 1 January 1995?
See general comments.
Questions from Poland
1. The value of Swedish UR commitments in the light of accession to the EU?
See general comments.
2. Are there any quantifiable estimates of the impact of Sweden's UR commitments and accession
to the EU on the Swedish economy and trade?
See general comments.
3 & 4 Variable import levies on agricultural goods and tariff reductions in agricultural goods.
See general comments. Sweden will apply CAP from 1 January 1995.
5. Industry-wide schemes instead of firm and sector specific support programmes
Adjustment assistance may be granted as regional support if industry restructuring is likely
to result in significant local unemployment. Sweden intends tojoin the EU programme "Business and
Innovation Centres" for support of innovative projects in regions undergoing substantial structural
changes.
6. According to Chapter IV(4)(iii) of the Secretariat's report "manufacturing industries and
commercial horticulture are exempt from the energy tax on fuels and electricity and pay carbon dioxide
tax at 25 per cent of the general rate". What are the economic reasons behind this measure? Is the
excise tax scheme now fully compatible with the provisions of the Agreement on Subsidies and
Countervailing Measures negotiated under the UR?
The excise tax scheme was reformed also in order to be compatible with the UR Agreement
on Subsidies and Countervailing measures. C/RM/M/54/Add.1
Page 11
Questions from Egypt
1. The impact on EU membership on:
- imports from developing countries as regards rice, fruits and vegetables;
- imports of textiles from small suppliers in developing countries;
- future GSP schemes as regards product coverage and tariff treatment.
See general comments. |
GATT Library | pz120rd1197 | Trade Policy Review Mechanism. Zimbabwe. Minutes of Meeting | General Agreement on Tariffs and Trade, January 5, 1995 | General Agreement on Tariffs and Trade (Organization) and Council | 05/01/1995 | official documents | C/RM/M/53 and 0002-0009 | https://exhibits.stanford.edu/gatt/catalog/pz120rd1197 | pz120rd1197_90080423.xml | GATT_1 | 16,644 | 112,872 | GENERAL AGREEMENT C/RM/M/53
5 January 1995
ON TARIFFS AND TRADE Limited Distribution
(95-0003)
COUNCIL
1-2 DECEMBER 1994
TRADE POLICY REVIEW MECHANISM
ZIMBABWE
MINUTES OF MEETING
Chairman: Dr. M. Zahran (Egypt)
Page
I. INTRODUCTORY REMARKS BY THE CHAIRMAN OF THE COUNCIL 2
Il. OPENING STATEMENT BY THE REPRESENTATIVE OF ZIMBABWE 3
III. STATEMENT BY THE FIRST DISCUSSANT 6
IV. STATEMENT BY THE SECOND DISCUSSANT 8
V. STATEMENTS BY MEMBERS OF THE COUNCIL 9
VI. REPLIES BY THE REPRESENTATIVE OF ZIMBABWE 12
AND ADDITIONAL COMMENTS
VII. CONCLUDING REMARKS BY THE CHAIRMAN OF THE COUNCIL 17 C/RM/M/53 Trade Policy Review Mechanism
Page 2
I. INTRODUCTORY REMARKS BY THE CHAIRMAN OF THE COUNCIL
The Chairman introduced the first review of Zimbabwe's trade policies and practices. He
welcomed the Zimbabwean delegation headed by Mr. K. Nkomani, Permanent Secretary, Ministry
of Industry and Commerce, members of the Council, and the discussants, Mr. A. Lecheheb and
Miss A. Stoddart. As usual, the discussants would speak in their personal capacities.
2. The Chairman recalled the objectives of the Trade Policy Review Mechanism, as decided by
the CONTRACTING PARTIES on 12 April 1989 (BISD 36S/403). The Council was to base its work
on two reports, one submitted by the Government of Zimbabwe (C/RM/G/53) and the other by the
GATT Secretariat (C/RM/S/53). He recalled the procedures for conducting reviews, introduced in
May 1993 (document L/7208).
3. Australia, the European Union and the United States had given advance notice in writing of
points they wished to raise during the meeting. Zimbabwe C/RM/M/53
Page 3
Il. OPENING STATEMENT BY THE REPRESENTATIVE OF ZIMBABWE
4. Mr. Chairman, I would like to thank you, and other delegations present here, for the warm
welcome extended to my delegation on this very important occasion where my country's trade policies
are being reviewed for the first time. I would also like to place on record my Government's appreciation
of the rôle that the Trade Policy Review Mechanism plays, particularly in helping us to analyze and
re-examine our domestic economic environment.
5. May I also add that the scrutiny of my country's trade policies is taking place at an opportune
time for us, firstly because Zimbabwe is entering the fifth year of its structural adjustment programme
and secondly because all of us are about to witness the beginning of a new era in global economic
trade relations with the coming into force of the World Trade Organization (WTO).
6. Mr. Chairman, in order to appreciate Zimbabwe's trade policies and practices it is necessary
to make reference to the country's far reaching Economic Structural Adjustment Programme (ESAP),
launched in 1990. Before independence in 1980 Zimbabwe's economic policy was inward looking
and characterized by extensive state intervention in almost every sector of the economy. There was
heavy reliance on import substitution to cushion the negative effects of sanctions that had been imposed
by the international community immediately after the Unilateral Declaration of Independence in 1965.
7. Although after independence some economic policy changes were made, it became very clear
by the late 1980s that a bold and drastic policy change was needed to address the problems of low
levels of investment, rising unemployment, declining exports and population growth which was
outstripping GDP growth. To reverse this trend, the Government adopted a comprehensive Economic
Structural Adjustment Programme (ESAP) whose objective was to create an open, competitive and
market driven economy. The following major areas were specifically targeted for reform: trade policy,
fiscal and monetary policy, and deregulation.
8. Mr. Chairman, let me begin with trade policy, where Government has committed itself to a
phased process of trade liberalization through the removal of import controls and licensing, tariff reform
and a supportive exchange rate policy.
9. Before the reform programme, all imports into the country required an import licence and were
subject to foreign exchange rationing. With the launching of the programme there was a gradual move
away from the import licensing and the foreign exchange allocation system to an open system of import
sourcing. By 1 January 1994, all goods with the exception of a small number of items listed on the
Negative List were imported without the need for a licence. By that same date, the system of allocating
foreign exchange also ceased. With effect from 1 July 1994 all current account transactions are now
being financed through the open market. Both the exchange rate as well as the demand and supply
of foreign exchange is consequently market determined. However, to maintain stability the Reserve
Bank of Zimbabwe may intervene through measures such as open market operations and the reserve
ratio.
10. The tariff structure is currently undergoing rationalization with the objective of achieving greater
uniformity and harmonization whilst with effect from July 1994 the import surcharge has been further
reduced from 15 per cent to 10 per cent and should be eliminated by the end of 1995.
11. In the fiscal area, the Government has committed itself to reduce the budget deficit to 5 per cent
of GDP by fiscal year 1994/95. However, experience so far indicates that it will be difficult to achieve
this target. For example, in fiscal year 1992/93 the budget deficit was 11.2 per cent of GDP. This C/RM/M/53 Trade Policy Review Mechanism
Page 4
was caused by a severe drought which necessitated heavy public expenditure in food imports. In fiscal
year 1993/94 the budgeted deficit was 5.4 per cent but the out-turn was 7.9 per cent of GDP. It is
clear therefore that Government has to take stringent measures to ensure that the 5 per cent target for
1994/95 is met. Among the actions that the Government is taking are: the commercialization of public
enterprises, reduction of the size of the civil service and disposal of some of its assets.
12. It is recognized that inflation constitutes the biggest potential setback on the path to economic
recovery and growth. In 1992, for example, inflation soared to 50 per cent but eased to some extent
by January 1993 to 45 per cent and dropped markedly by December 1993 to 18.6 per cent. This trend
was, however, reversed by May 1994 when the rate rose to 25 per cent. The current rate is
approximately 22 per cent. It is the Government's intention to bring down the rate of inflation to single
digit figures.
13. Regarding the last target for reform, deregulation, considerable progress had been made on
a number of fronts. In the area of investment approvals a single window clearance agency known
as the Zimbabwe Investment Centre (ZIC) has been established. The Centre has streamlined the
procedures and criteria for project approvals and drastically reduced the project approval time to a
maximum of 45 days.
14. Before the reform programme price controls were a common feature of the economy, but today
an insignificant number of items are subject to price control. On the labour front, direct intervention
in wage setting and dispute settlement has been replaced by free collective bargaining.
15. Mr. Chairman, although the reform programme has achieved a substantial number of its
objectives, it is important to note that the poor and the vulnerable have been negatively affected by
the adjustment process through changes in the provision of social services, particularly in the health
and education sectors. Considerable progress had been achieved in these sectors since independence.
In order to alleviate these hardships, the Government has, in parallel with the implementation of the
reform programme, established a Social Dimension Fund Programme that provides appropriate
compensation mechanisms for the affected groups.
16. A major setback to the reform process was the devastating drought of 1992 - the worst drought
the country and the whole region ever experienced in their history. As a result, the two major productive
sectors of our economy, agriculture and manufacturing, saw their outputs declining in real terms by
35 per cent and 30 per cent respectively, during that year. As I indicated earlier, inflation rose to
its highest during the same year. In short, 1992 was a recession year for the country - with all the
adverse implications for the reform targets and performance. However, with the return of normal
rains since last year and hopefully this year, the country should get back on the recovery path.
17. The Government is resolutely pushing for ward with the reform programme. A complementary
external environment to our reforms was created by the parallel process of the Uruguay Round trade
negotiations. My Government contributed to the multilateral trade negotiations by undertaking
commitments in such areas as trade in goods and services, intellectual property rights and investment
disciplines. The country's domestic trade legislation and environment will be reformed and adapted
to reflect the requirements emanating from the Uruguay Round result. We therefore attach importance
to the entry into force of the new World Trade Organization which will guarantee a firm foundation
for an open, predictable and secure multilateral trading system. Zimbabwe is in this regard finalizing
its ratification of the WTO Agreement so that we can become original members and thus ensuring that
our economy continues its process of integration into the global economy. Zimbabwe C/RM/M/53
Page 5
18. In conclusion, I would like to express my sincere gratitude to the GATT Secretariat for their
valuable and detailed report on Zimbabwe's trade policy, as well as for their assistance rendered to
my Government in preparing its report. I wish also to thank Mr. Abdelkader Lecheheb of Morocco
and Miss Anne Stoddart of the United Kingdom for accepting to serve as discussants on my country's
trade policy review. C/RM/M/53 Page 6 Trade PoIicy Review Mechanism
III. STATEMENT BY THE FIRST DISCUSSANT
19. The first discussant (Mr. Lecheheb) viewed Zimbabwe's willingness to take part in the Trade
Policy Review exercise as underlining Africa's contribution to the establishment of a multilateral trading
system based, inter alia, on transparency. He noted that, from the standpoint of the GATT, Zimbabwe
was both an old and a new country: old, since it was one of the original signatories, and new because
it became independent only in 1980. This helped to understand Zimbabwe's economic policy and,
in particular, the reforms implemented since 1991.
20. At independence, Zimbabwe had inherited a highly regulated economy with a very protected
trade régime. These policies had been implemented since the 1960s and were in response to economic
sanctions decreed by the United Nations following the minority government's 1965 Unilateral Declaration
of Independence, Control extended to all economic activities, such as foreign trade, prices, foreign
exchange, and investment. The economy was insular and nearly completely self-sufficient.
21. After independence, restrictive policies persisted and were justified, in the words of Minister
Chidzero, "until we had the economy under control." But the continuation of such policies over a
decade had disastrous results: the government deficit exploded, investment fell to a level of 13 per cent,
and real per capita income stagnated. A change in direction became inevitable.
22. The Framework for Economic Reform (1991/95) wasintroduced in 1991 to revitalize the
economy by reducing the fiscal deficit, decreasing state aid to public enterprises, liberalizing foreign
trade, reducing investment distortions, eliminating price controls and deregulating the labour market.
This programme has undoubtedly had important results in areas such as price controls, aid to public
enterprises, import licensing, and the import surcharge. Investment, to some extent, had been facilitated,
although there was no clear justification for discriminating (with regard to the repatriation of dividends)
against investments made prior to 1993.
23. Against the progress of the programme, some of its limitations needed also to be mentioned.
First, the budget deficit increased from 7.6 per cent of GDP in 1991-92 to 11.2 per cent in 1992-93.
While this could be largely explained by the drought, the First Merchant Bank of Zimbabwe attributed
part of the increase to the Government itself, which reportedly recruited 10,000 civil servants although
it had announced a reduction in the number of state officials. Second, inflation remained too high,
despite having been brought down to 28 per cent from as high as 48 per cent. This inflation limited
investment, affected Zimbabwe's external competitiveness, and eroded the purchasing power of wage
earners.
24. The discussant offered suggestions for Zimbabwe in four areas. First, the Zimbabwe economy
had responded positively to the economic reforms, so the achievements of the reform programme should
be consolidated and then further reforms pursued. Second, Zimbabwe should stress the permanent
and irreversible nature of the reforms implemented so far, so as to improve certainty and predictability
for both domestic and foreign firms. Statements such as that by Minister Chidzero that "the ESAP
is the only way forward for the economy of Zimbabwe" helped in this manner. Third, because of
the importance of agriculture to Zimbabwe the authorities should keep in mind appropriate policies
in cases of drought. Finally, reform seemed to have been slow in sectors where Zimbabwe had a
comparative advantage; the pace of reform in various sectors might need to be reconsidered. Page 7 Zimbabwe C/RM/M/53
25. With regard to trade policy itself, the near-elimination of import licences was very important,
particularly since all imports required licences until 1990. The result was a very positive situation
in which tariffs were the main remaining protectionist device; further, the authorities had confirmed
that the 10 per cent surcharge would be eliminated in 1995. The main concern was the lack of tariff
bindings, which accentuated the uncertainty of the Zimbabwe market and could constitute an obstacle
to investment, to which Zimbabwe had given the key rôle in economic growth. C/RM/M/53 Trade Policy Review Mechanism
Page 8
IV. STATEMENT BY THE SECOND DISCUSSANT
26. The second discussant (Miss Stoddart) welcomed the move to tariff-based protection in Zimbabwe
and noted that tariff rates in effect were moderate, particularly when compared to other countries of
a similar per capita income level. This was a dramatic change compared to the situation before 1990,
when import licences were required for all imports.
27. Statutory tariff rates, however, greatly exceeded the applied rates, indicating that it remained
possible to raise tariffs quickly. This situation was compounded by the relative lack of tariff bindings.
Thus, there was only limited legal certainty underpinning the preset tariff régime, and the few new
industrial product tariff bindings as a result of the Uruguay Round will not lead to a substantial
improvement. She asked whether the Industrial Tariff Committee might consider the case for increasing
the predictability of the tariff régime by increasing bindings.
28. Textiles and clothing products were to be removed from the Negative List and thus would become
importable without licence. It would be helpful to learn when this important change would be made
and to what extent tariffs would be increased. Was it intended that the new tariffs would have a
trade-restricting effect equivalent to the import licences? Might the new tariffs be in the range of 20
to 30 per cent, which was the general objective for final consumer goods?
29. Import permits were required on many agricultural products. It would be helpful to know
the criteria for granting permits and whether these were published, as well as to have information on
the time limits for the validity of the permits. The discussant asked whether the government regularly
monitored production and demand, and whether the information gained in such monitoring was used
in the import permit approval process.
30. While it was clear that Zimbabwe was moving toward a more market-oriented agricultural
sector, some commodities remained regulated. It was not clear whether the process would culminate
in a free market in all commodities or, alternatively, whether the authorities considered that continued
government regulation of some commodities, such as maize and cotton, was necessary. The Cotton
Marketing Board's flexibility in setting cotton prices had been temporarily removed this year, leading
to a return to the policy of subsidizing the domestic spinning industry at the expense of cotton producers.
The discussant asked whether cotton marketing would be returned to a market-based pricing system.
31. When imports were directly controlled it mattered little that Zimbabwe had no safeguards
legislation. It was not essential, or even advisable, that a country used every instrument that GATT
allowed, However, in the case of Zimbabwe it now seemed important that a safety net be established
based on GATT Article XIX. This would be more in keeping with Zimbabwe's commitment to a rule-
based international system than was its present reliance on raising unbound tariffs.
32. The Republic of South Africa had become an especially important trading partner for Zimbabwe,
and it was understandable that the trade agreement between the two countries, which dated from 1964,
might need renegotiation. According to the report by the Government of Zimbabwe, the objective
of this renegotiation was to make trade between the two countries much freer. The discussant asked
whether the particular aim was to extend the coverage of the agreement or the extent of the preferential
treatment. She also asked whether a goal for the completion of the negotiations had been set by the
countries. Zimbabwe C/RM/M/53
Page 9
V. STATEMENTS BY MEMBERS OF THE COUNCIL
33. The representative of Australia congratulated Zimbabwe on the reforms it had implemented
since 1991 and pointed out several of the areas in which reforms were being made, including: the
foreign exchange control system and the July 1994 unification of the exchange rate régime; simplification
of the foreign direct investment approval process; an easing of the restrictions on the repatriation of
dividends; the near-elimination of import licensing and the move towards making tariffs the sole
mechanism of industry protection; the elimination of export subsidies; and the reform of domestic
marketing of agricultural products. She commended Zimbabwe for maintaining the reforms despite
the effects of serious drought and urged Zimbabwe to continue to follow the path of reform, a path
crucial to attaining the economic goals that Zimbabwe had set for itself.
34. Zimbabwe's review of its tariff structure, with the aim of reducing rates of protection, was
viewed as a positive development; however, noting that statutory tariff rates had been raised in order
to provide flexibility in cases of import surges, she asked whether Zimbabwe had considered the use
of GATT Article XIX safeguards. She also noted that Zimbabwe's anti-dumping legislation had not
been used and asked whether, if unfair trade existed, Zimbabwe would make use of this legislation
rather than rely on increases in the m.f.n. tariff. While Zimbabwe granted m.f.n. treatment to imports
from all countries, clarification was sought of a provision in Zimbabwe law that allowed the imposition
of an additional duty of 15 per cent on such countries as might be specified. The representative of
Australia was also interested in the extent to which tariffs in Zimbabwe were levied for the purpose
of government revenue rather than for their protective effect, and whether this varied greatly across
sectors.
35. A wide range of agricultural imports was subject to import permit requirements and, although
these permits were normally granted routinely, substantial imports were not allowed when they would
decrease domestic prices or when domestic production was sufficient. Clarification was sought as to
the criteria for disapproval of agricultural import permit requests. She asked under what circumstances
licenses were available for imports of those goods that remained subject to import licensing, and when
these import restrictions would be eliminated.
36. Admiration and support for Zimbabwe's programme of reform was expressed by the
representative of the United States, who commended Zimbabwe particularly for the virtual elimination
of the import licensing system, the reform of the foreign exchange régime, and the reform of domestic
agricultural marketing. He expressed concern, however, that these reforms did not yet have a firm
legal basis, and encouraged Zimbabwe to increase the number of its tariff bindings. He requested
an explanation for the increase in statutory tariffs that took place near the close of the Uruguay Round.
In agriculture, the use of import permits and the influence of state-controlled marketing boards over
export marketing were areas of concern, as were the above-average rates of tariff on imports of ready-to-
eat cereals; he asked whether there were plans to reduce tariff rates for these products. The revision
of government procurement rules, which now provided a margin of preference to local producers and
construction contractors, was encouraged.
37. The representative of the European Union (EU) congratulated the Government of Zimbabwe
for the progress achieved under the reform programme despite the severe drought that hit the country
in 1992, and encouraged Zimbabwe to consolidate the progress already made and to continue its reforms.
He noted that the EU was assisting Zimbabwe in the reform process by providing financial and other
forms of assistance under the framework of the Lomé Convention. Increases in tariff bindings were
seen as one way of consolidating the reforms and of preventing the use of increases in statutory tariffs
as an instrument to address import problems. If the Government of Zimbabwe was concerned with C/RM/M/53 Trade Policy Review Mechanism
Page 10
the possibility of import surges, it could then consider developing safeguard legislation in line with
GATT Article XIX as this was a more appropriate instrument to deal with such situations. Some
macroeconomic problems remained, partly owing to the severe drought of 1992: inflation, interest
rates, and the budget deficit remained high. Noting that the elimination of the import surcharge would
likely reduce government revenue, he asked how the Government of Zimbabwe intended to make up
for this loss of revenue.
38. The persistence of Zimbabwe's ambitious reform programme in the face of severe drought
was cited by the representative of Canada as deserving of congratulations. Although import procedures
had been modernized and streamlined, clearance of imports was at times slow. An increase in the
coverage of tariff bindings was urged, and it was noted that tariffs and import surcharges in some sectors
may have been so high as to effectively prohibit imports. He pointed out that adoption of the Uruguay
Round by Zimbabwe led to many new responsibilities, particularly because Zimbabwe was a signatory
to only one Tokyo Round code. While the Agreement on Government Procurement was not part of
the single undertaking, Canada was interested in whether Zimbabwe intended to adhere to that Code
in the future. Clarification was sought on plans to institute a commission to investigate anti-competitive
practices.
39. The representative of Hong Kong commended Zimbabwe for its market-oriented reforms and
noted that the near-elimination of import licensing and the continuing phase-out of the import surcharge
were two particularly remarkable elements of the reform programme. The possibility that the use of
domestic resources might be a criterion in considering applications for direct investment was of concern,
in light of the Uruguay Round agreement on trade-related investment measures.
40. Appreciation of Zimbabwe's commitment to the multilateral system and for its recent reforms,
particularly the near-elimination of import licensing, was expressed by the representative of Japan.
He welcomed Zimbabwe's relatively positive attitude toward improved rules in areas such as
anti-dumping, customs valuation, safeguards and subsidies. The further paring of the import licensing
list and the timely elimination of the import surcharge were urged.
41. The reaffirmation of Zimbabwe's commitment to liberal economic reform was welcomed by
the representative of Egypt, who referred in particular to reforms in import licensing, the import
surcharge, price controls, the foreign exchange régime, and foreign direct investment rules. It was
noted that in 1991 some 29 per cent of Zimbabwe's merchandise imports originated in South Africa,
while other African countries were the source of 2 per cent of imports. He asked whether the
Government of Zimbabwe intended to further diversify its external trade relations with other African
countries. He was also interested in whether any reconciliation was necessary between Zimbabwe's
Uruguay Round commitments and the Abuja treaty, which was scheduled to lead to an African Common
Market and the African Economic Community.
42. The representative of Cote d'Ivoire expressed support for the economic reforms Zimbabwe
had undertaken and noted that during the Uruguay Round Zimbabwe had been active in revising the
Customs Valuation Code. She asked what steps Zimbabwe had been taking to conform with the new
provisions of that Code. Zimbabwe C/RM/M/53 Page 11
43. The representative of Norway, on behalf of the Nordic countries, noted that the Nordic countries
have long followed the political and economic developments in Zimbabwe and that they supported
Zimbabwe's dedication to economic reform. He expressed regret that Zimbabwe, because of
uncontrollable circumstances, had been unable to harvest immediate and convincing results from its
reforms. Noting the challenges that resulted from the current general economic environment, he
encouraged Zimbabwe to maintain the reform process and urged it to show a multilateral commitment
on its trade policy by binding a larger share of its tariff lines. Timely elimination of the import surcharge
was also urged. C/RM/M/53 Trade Policy Review Mechanism
Page 12
VI. REPLIES BY THE REPRESENTATIVE OF ZIMBABWE AND ADDITIONAL COMMENTS
44. Replies by the representative of Zimbabwe were divided into three broad themes: the
macroeconomic and structural environment; Zimbabwe's international trade system; and the external
economic environment faced by Zimbabwe. Following replies under each area, the Chairman opened
the floor to Council members for further comments and questions.
(1) Macroeconomic and Structural Environment
Replies by the representative of Zimbabwe
45. The representative of Zimbabwe reaffirmed his Government's commitment to the continuation
of the reform programme. Reversion to the old system of controls and import licensing was simply
not a viable option. Appropriate legislation was being put in place to assure the irreversibility of reforms.
46. Inflation had peaked at 50 per cent in 1992, and had since been reduced to 22 per cent. This
figure was still considered excessive, and the Government of Zimbabwe believed that high inflation
impacted negatively on investment and growth. It remained the Government's intention to reduce
inflation to single digit figures. The Government also aimed to achieve the 5 per cent target for the
government deficit by 1995, as envisaged in the reform programme. This would be accomplished
through overall improved management of government finances, a reduction in the size of the civil
service, and the disposal of public assets to raise revenue.
47. A major part of the Government's expenditure were subsidies to public enterprises. It was
policy to commercialize and in some cases privatize these enterprises. A Cabinet Committee on
Commercialization and Privatization had recently been established to oversee this process. It was
expected that these measures would lead to a reduction in government expenditures, resulting in a
corresponding reduction in the need for additional revenue. Revenue losses arising from the removal
of the surcharge should be offset in this manner.
48. The primary sectors of agriculture and mining did not have the flexibility for growth and
employment required to sustain the reform programme. This suggested that the diversification of the
economic base through the development of the manufacturing sector should be pursued. Special emphasis
was being placed by the Government on the promotion and growth of small- and medium-scale
enterprises. It was believed that this would provide an enabling domestic environment for foreign
investment and lead to the more efficient allocation of local resources, entrepreneurship and human
skills. A Deregulation Committee had been established and was charged with identifying and phasing
out those existing rules and regulations that impeded the growth of small-and medium-scale enterprises.
Additional comments
49. The first discussant welcomed the information that legislation was being put into place to assure
the irreversibility of Zimbabwe's reforms. He sought clarification as to which reform measures had
been deferred because of the drought. He asked about the terms of reference of the Committee on
Commercialization and Privatization and whether the Government had determined which enterprises
would be privatized. Zimbabwe C/RM/M/53
Page13
50. The representative of Argentina, unable to intervene earlier, mentioned many of the areas in
which reforms had been implemented in Zimbabwe and stated that reforms would likely strengthen
Zimbabwean exports. Two questions were asked. First, how was revenue lost through the elimination
of the import surcharge to be replaced? And second, were import permits in agriculture restrictive
and, if so, was this policy compatible with the fact that the agriculture sector seemed to be internationally
competitive and to have the ability to expand?
51. The representative of Madagascar, unable to be present earlier, congratulated Zimbabwe for
its economic reforms and for its positive participation in the Uruguay Round.
52. The representative of Australia asked whether much public debate had preceded the adoption
of Zimbabwe's reform programme in 1990-1991, and whether an independent statutory body existed
in Zimbabwe that would analyze and review the reform process, taking into account comments from
all sectors of the economy and from consumers.
53. Further concern over the progress of privatization was expressed by the representative of the
EU, particularly with regard to the Grain Marketing Board and the Zimbabwe Steel Company.
54. The representative of Nigeria, not able to be present earlier, complimented Zimbabwe for its
positive economic reforms and stated that his Government was watching the process of reform in
Zimbabwe very closely because of similar reforms being undertaken in Nigeria. He asked whether
the privatization process in Zimbabwe would be fully open to foreign investors, particularly those in
Africa.
55. The representative of India, not able to be present earlier, commented on the importance of
the agriculture sector in Zimbabwe and stated that the Government of Zimbabwe should not shift its
attention away from that sector.
56. The representative of Zimbabwe responded that budget deficit reduction had been adversely
affected by the drought. The terms of reference for the Committee on Commercialization and
Privatization had not yet been established, but the broad objective was to commercialize enterprises,
and to privatize them where it was felt to be necessary. Substantial debate had taken place within
government and with the private sector prior to and during the reform process. No statutory body with
review authority existed, but the Government consulted closely with the private sector. The dual role
of the Grain Marketing Board (GMB), with a commercial role and a mandated food security role, was
mentioned and it was noted that the level of stockholding requirements placed by the Government on
the GMB were being examined. The Zimbabwe Steel Company was being prepared for privatization.
This and other privatization exercises were expected to be open to foreign investors.
(2) Trade System
Replies by the representative of Zimbabwe
57. The binding of tariffs was an important element of Zimbabwe's obligations under the General
Agreement. It was through bindings that contracting parties could be assured of the permanence of
decisions taken on tariff levels and this assurance was important for investors. Because of the nature
of the Zimbabwe reform programme it was difficult to take decisions on tariff bindings, but following
a review and the subsequent restructuring of tariffs, the Government was expected to bind more tariffs. C/RM/M/53 Trade Policy Review Mechanism
Page 14
58. Zimbabwe granted m.f.n. treatment to GATT and non-GATT members alike. This was done
for administrative simplicity. The 15 per cent additional duty that could be imposed on goods from
non-GATT members predated independence and had not been invoked since 1980. Nevertheless, this
issue would be examined in the context of the overall tariff review. The Government firmly intended
to eliminate the 10 per cent import surcharge by the end of 1995.
59. There were two main reasons why agricultural import permits were required. First, the Ministry
of Agriculture monitored available grain stocks in the country, particularly maize and wheat, for food
security purposes. Second, phytosanitary considerations on products such as beef, dairy and plants
and live animals were important. Permits were normally issued within a day. Data on the number
of permits issued were not immediately available but could be obtained from the Ministry of Agriculture.
A response would be furnished later to the question regarding instances where permits might not be
granted. Duties and surcharges on imports of ready-to-eat cereals would be addressed in the overall
context of the tariff review.
60. Textiles and clothing articles would be withdrawn from the Negative List by June 1995. The
exact levels of duty were still being determined, but were not expected to exceed 60 per cent. The
Negative List had recently been shortened by removing pearls, precious and semi-precious stoles, and
aerated beverages.
61. Customs procedures were continuously under review with the objective of increasing efficiency
in the processing of both imports and exports. The Department of Customs and Excise had installed
an Automated System of Customs Data (ASYCUDA), and this had already improved efficiency
considerably. Significant improvements had been made to the duty drawback and inward processing
schemes; payments on duty drawback were now processed within 14 days of the submission of an
application.
62. In anticipation of the review of the tariff structure, the Government felt it needed flexibility
to adjust tariffs in response to import surges. This led to the December 1993 increase in statutory
tariffs. The Government agreed that this was not the only way to deal with such developments, but
felt it should be noted that applicable rates were much lower than statutory rates. With the existence
at the time of import licensing and foreign exchange restrictions, use of the GATT safeguard provision
was not considered. Following the removal of the licensing system it was clear that the use of the
safeguard clause would now be more appropriate. Similarly, there had been no necessity to seek recourse
to anti-dumping and countervailing measures. The Uruguay Round results required changes in domestic
legislation to reflect the new environment. With regard to the Tokyo Round Codes, Zimbabwe had
committed itself under the WTO Agreement to fulfil its obligations.
63. Local businesses received government procurement preferences and its was felt this encouraged
their participation in the economy. In view of the outcome of the Uruguay Round, Zimbabwe would
be examining its status in this Code.
64. The Government had progressed in its reform of the agricultural marketing boards. For example,
the Dairy Marketing Board had been commercialized and dairy marketing had been opened to private
individuals and firms. Registered private abattoirs could now engage in the domestic marketing and
the export of beef. The Cotton Marketing Board had been transformed into the Cotton Company of
Zimbabwe (CCZ) and given greater commercial flexibility. The CCZ's ability to set prices for lint
had been temporarily removed earlier this year, and the price for lint reduced, because the spinning
industry was in crisis. This was a 6-month relief measure and had ended two days earlier, on
30 November. The Government expected a return to a market based pricing system. The issue of Zimbabwe C/RM/M/53
Page 15
tariff exemptions for new commercial companies that were hitherto statutory bodies had not yet been
addressed, but clearly needed attention.
65. The Government had already relaxed controls to allow private business to export yellow maize,
subject to permits issued by the Ministry of Agriculture, and such exports had taken place this year.
The GMB continued to have a monopoly on international trade of white maize because of the domestic
strategic nature of the product. Domestic maize marketing, however, had been fully liberalized. When
agricultural commodity prices were controlled, situations did arise where producers received less than
world market prices; however, with prices becoming market-based, returns to farmers would reflect
the true value of their commodities.
66. Price controls had virtually been eliminated. The Government aimed to eliminate subsidies,
and this was being achieved through the commercialization of public enterprises. There was no intention
to reinstate the 9 per cent export incentive scheme. However, to assist exporters Government now
allowed exporting firms to access relatively cheap off-shore financing. This was in addition to existing
schemes already mentioned.
67. The establishment of Export Processing Zones had been approved by Parliament. The concept
of EPZ in the Zimbabwe context envisaged, on the one hand, geographic zones and, on the other,
enterprises with an agreed share of exports in their production. Details would be a matter for the EPZ
Authcrity, on the basis of applications by developers.
68. A detailed study had been carried out on monopolies and competition policy in Zimbabwe.
One major recommendation was the establishment of a Monopolies and Mergers Commission. A bill
establishing such a Commission had been drafted and was expected to come before Parliament during
the first half of 1995.
Additional comments
69. The second discussant thanked the Zimbabwean delegation for its comprehensive responses.
The commitments to address the question of further tariff bindings and to look at the general legislative
framework in light of the move to a market-based economy were welcomed. She asked whether a
particular timetable was in place regarding the tariff review.
70. The first discussant also welcomed the commitment to address the questions of additional tariff
bindings, as well as the recent removal of some items from the import licensing list. He noted the
similarity between import permits and import licenses and drew attention to the Uruguay Round process
of tariffication of non-tariff measures for agricultural products. He was also interested in whether
Zimbabwe had begun to examine how to take measures to deal with all results of the Uruguay Round.
71. The representative of Zimbabwe stated that the study of the tariff structure was expected to
be initiated early in 1995 and that implementation of Zimbabwe's new responsibilities as a result of
the Uruguay Round was under study within the Government. The questions of import permits and
tariffication would be covered in a later written submission along with other questions on import permits. C/RM/M/53 Trade Policy Review Mechanism
Page 16
(3) External Environment
Replies by the representative of Zimbabwe
72. The success of Zimbabwe's economic reforms, in particular the trade liberalization and investment
promotion components, depended on a supportive and enabling external environment. The effective
implementation of the Uruguay Round results by all participants offered Zimbabwe new challenges
and opportunities for product and market diversification. Zimbabwe would benefit, in particular, in
such export sectors as agriculture and mining, where it had a competitive advantage. The expected
reductions in Lomé margins of preferences would serve to stimulate and challenge Zimbabwe in its
search for new markets and non-traditional exports.
73. The Zimbabwe-South Africa trade agreement was currently being renegotiated in order to extend
product coverage, simplify the agreement, and achieve a freer trading arrangement. Negotiations at
the technical level began in September 1994. However, it was not possible to say when negotiations
would be completed. On Zimbabwe's trade with the rest of Africa, it was pointed out that Zimbabwe
was a member of COMESA, which encompassed countries in both Eastern and Southern Africa. Because
of the existence of a trade preference régime in this Treaty, it was expected that Zimbabwe's trade
with the other member countries would increase over time. Zimbabwe viewed COMESA as a building
block towards the all African trade arrangement envisaged under the Abuja Treaty.
Additional comments
74. The first discussant welcomed the very positive spirit shown by Zimbabwe regarding the erosion
of preferential margins as a result of the Uruguay Round. He stated his belief that tariff preferences
did not in fact represent a trade advantage for the preference-receiving country, and cited the example
of bananas under the Lomé agreement.
75. The second discussant stated that she too was impressed by the positive response of Zimbabwe
to challenges that would result from the implementation of the Uruguay Round.
76. The representative of the EU asked Zimbabwe's opinion regarding a recent proposal that the
PTA be divided into two parts, one for SADC countries and the other for the northern African countries.
Would this give the SADC a role in trade that it does not presently have? Might Zimbabwe join countries
of the Southern African Customs Union and perhaps establish a common external tariff with those
countries?
77. Zimbabwe was encouraged to continue its reform process, and to put into effect recommendations
stemming from this Trade Policy Review, by the representative of Cameroon.
78. The representative of the United States thanked Zimbabwe for its comprehensive responses
to the questions that had been raised. He asked for Zimbabwe's comments on its policies providing
margins of preference to local producers and construction contractors in bidding for government
procurement contracts.
79. The representative of Zimbabwe noted that regional economic relations in Africa were currently
under negotiation among many countries and would not be addressed here. He stated that questions
regarding government procurement could not be fully answered now but would be raised for consideration
by his government. Zimbabwe C/RM/M/53
Page 17
VII. CONCLUDING REMARKS BY THE CHAIRMAN OF THE COUNCIL
80. In concluding this first Trade Policy Review of Zimbabwe, I should like to identify salient
features of Zimbabwe's trade policies and practices that have emerged from the discussion. These
remarks are, as usual, on my own responsibility and do not substitute for the Council's collective
appreciation. The full debate will be reflected in the Minutes of this meeting.
81. Following the opening statement by Zimbabwe, the Council's discussion focused on three main
themes:
(a) The macroeconomic and structural environment
82. Members of the Council congratulated Zimbabwe for its steadfast pursuit of the economic reform
programme introduced in 1991 and its determination to play a full rôle in the multilateral trading system.
Several members noted that greater certainty on the continuity of reforms would assist Zimbabwe in
attracting investment. The uncertainty of the macroeconomic environment, in particular the rate of
inflation and the government budget deficit, which had exceeded forecasts, gave rise to questions.
One member asked how government revenue lost through the intended elimination of the import surcharge
was to be replaced. Some members requested clarification on the legal basis and practice for direct
foreign investment approval, particularly with respect to the use of local resources. Progress regarding
privatization, including access for foreign investment, and efforts at industrial diversification were other
issues of interest.
83. In reply, the representative of Zimbabwe noted that legislation was being put in place to assure
the irreversibility of reform. Inflation had already been sharply reduced and the Government intended
to lower it further, to under 10 per cent. The budget deficit would be reduced to 5 per cent of GDP,
mainly through expenditure cuts, which would come in part from the privatization of public enterprises;
this would also offset revenue losses from the surcharge elimination. The recent drought had slowed,
but not reversed, economic progress. Diversification of manufacturing would sustain the reform, and
was being promoted by an enabling environment for investment and deregulation which should help
small and medium enterprises. The new Privatization Committee was just beginning its work with
the aim of commercializing and privatizing some state enterprises. Discussion of the reform process
was taking place in the country, although no independent statutory review body was in existence or
currently envisaged.
(b) The international trade system
84. Council members were complimentary of Zimbabwe's trade policy reforms. They noted the
virtual elimination of import licensing, the opening of the foreign exchange regime, the rationalization
of the tariff structure, and the reduction in the rate of import surcharge, among other positive
developments. The tariff had now become the main instrument of protection and the average rate was
moderate. No variable levies or minimum import prices were applied and Zimbabwe had not used
balance of payments restrictions.
85. There were five particular areas of concern related to import policies. First, the low level
of tariff bindings, even after the Uruguay Round, contributed to uncertainty with regard to the stability
of reforms. Second, members asked whether the import surcharge would be eliminated as scheduled
by the end of 1995. Third, some members emphasized the need for transparency in granting import
permits for agricultural goods and were concerned that this permit system operated as de facto
non-automatie licensing. In this regard a concern was expressed about cumulative duties on imports C/RM/M/53 Trade Policy Review Mechanism
Page 18
of ready-to-eat cereals. Fourth, the negative list remained long; Zimbabwe was asked when textiles
and clothing would be removed from the list and whether the tariffs that would be introduced at that
time would have an equivalent trade-restricting effect. Finally, while noting that Zimbabwe currently
gave m.f.n. treatment to imports from all countries, some members expressed concern that the
government could, under law, increase tariffs by 15 percentage points on imports originating from
non-GATT members.
86. Members encouraged Zimbabwe to continue to simplify and modernize its customs procedures,
where some difficulties remained despite recent streamlining. Several members urged Zimbabwe to
introduce Article XIX-type safeguards, rather than using the flexibility provided by unbound tariff
rates, for import relief; in this regard, members sought clarification of the rationale for the increases
in statutory tariff rates, and questions were also raised as to why Zimbabwe had never used its
anti-dumping legislation. Noting that Zimbabwe had not signed most Tokyo Round codes, members
asked how it would apply the new disciplines of the WTO single undertaking. Preferences for domestic
firms in government procurement contracts were questioned; members asked whether Zimbabwe intended
to adhere to the Agreement on Government Procurement. Trade distortions introduced by state marketing
boards in agriculture, particularly in maize and cotton, were of concern to some members. The
liberalization of domestic price controls and state subsidies was welcomed, and clarification was sought
on the outlook for continued reform in these areas. Finally, some members stressed the importance
of domestic control over restrictive business practices, and noted Zimbabwe's progress in creating
a government commission to promote competition.
87. The representative of Zimbabwe recognized that tariff bindings were an important element
of his country's GATT obligations. After a tariff review, which would begin early in 1995, the
Government would bind more tariffs. The review would also look into the 15 percentage point additional
duty that could be imposed on imports from non-GATT members - which had, until now, never been
used - and would address the cumulative duties on ready-to-eat cereals. He confirmed that the target
was to eliminate the 10 per cent surcharge by the end of 1995. Agricultural import permits were used
to keep track of available grain stocks and for phytosanitary reasons; written answers to detailed
questions would be provided later. Textiles and clothing would be withdrawn from the negative list
by June 1995; tariffs on such imports would not exceed 60 per cent.
88. On customs procedures Zimbabwe had installed an automated system (ASYCUDA), which
had considerably improved efficiency. On safeguards, the Government had raised statutory rates in
late 1993 to deal with import surges. However, with the removal of import licensing and exchange
restrictions, it was clear that the use of the safeguard clause might be more appropriate; similarly
with respect to anti-dumping and countervailing measures. On the Tokyo Round codes, Zimbabwe
was committed to carrying out its obligations under the WTO. Preferences on government procurement
were given to encourage local participation, but they would be reviewed and Zimbabwe would consider
becoming a member of the Agreement. On deregulation of marketing boards, the Government had
made significant strides. A recent lowering of the cotton lint price below its market level had been
necessary because the spinning industry was in crisis; however, the measure had been removed on
30 November 1994. Domestic maize marketing was fully liberalized, but the Grain Marketing Board
continued to have a monopoly on exports and imports of white maize because of its strategic nature;
however, with prices becoming market-based, returns to farmers would reflect the value of their output.
Finally, as part of the reform programme, a Monopolies and Mergers Commission had been proposed
and a bill to this effect would come before Parliament in the first half of 1995. Zimbawe C/RM/M/53
Page 19
(c) The outlook for the external environment
89. Several issues were raised on Zimbabwe's external trading environment. Members asked whether
Zimbabwe had taken any action to assist domestic firms in taking advantage of new opportunities arising
from the Uruguay Round. Diversification of export markets was encouraged. Noting the importance
of regional trading relationships for Zimbabwe, members emphasized the need for such arrangements
to remain consistent with GATT principles. Zimbabwe was also asked about the renegotiation of its
trade agreement with South Africa.
90. The representative of Zimbabwe noted that the implementation of the Uruguay Round would
offer Zimbabwe opportunities for product and market diversification. Zimbabwe should gain in such
sectors as agriculture and mining, where it had a competitive advantage. The reduction in margins
of Lomé preferences would stimulate a search for new markets and non-traditional exports. Zimbabwe's
trade agreement with South Africa was being renegotiated to simplify it, extend its coverage, and achieve
freer trade. Zimbabwe was a member of COMESA and, as a result, expected its regional trade to
increase over time.
Conclusions
91. In conclusion, the Council has been very encouraged by the determined, resolute steps taken
by Zimbabwe to pursue macro-economic stabilization, reform trade policies, and assume its Uruguay
Round commitments. We look forward, in particular, to a successful conclusion of the tariff review
and a resultant increase in the scope of bindings, as well as a continuing reduction in the negative list.
This would ensure the stability and continuity of the reforms and encourage trade and investment in
the region and with the world. Zimbabwe's trading partners should support its reform by opening
their markets. GW/13
4 January 1995
THE WORLD TRADE ORGANIZATION IS LAUNCHED
WITH 81 MEMBERS
The new World Trade Organization (WTO) came into force on 1 January 1995 with 81 member
countries and territories from all regions of the globe representing over 90 per cent of internatior
trade in goods and services. Almost 50 other countries are in a position to join the WTO in the near
future.
The 81 members comprise 53 developing or least-developed economies, 25 developed countries
and 3 economies in transition. Of the 49 countries which are currently in the process of joining,
have accepted the WTO and are due to become members as soo they have completed the verification
of their market access commitments; 38 are completing their ???nestic ratification procedures for
accepting the WTO; and Algeria and China whose terms of membership are still to be finalized.
MORE
95-0004 WTO MEMBERSHIP AS AT 1 JANUARY 1995 (81)
Antigua and
Barbuda
Argentina
Australia
Austria
Bahrain
Bangladesh
Barbados
Belgium
Belize
Botswana
Brazil
Brunei
Darussalam
Canada
Chile
Colombia
Costa Rica
Côte d'Ivoire
Czech Republic
Denmark
Dominica
European Communities
Finland
France
Gabon
Germany
Ghana
Greece
Guyana
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Ireland
Italy
Japan
Kenya
Korea
Kuwait
Lesotho
Luxembourg
Macau
Malawi
Malaysia
Malta
Mauritania
Mauritius
Mexico
Morocco
Myanmar
Namibia
Netherlands
New Zealand
Nigeria
Norway
Pakistan
Paraguay
Peru
Philippines
Portugal
Romania
St. Lucia
St. Vincent and the
Grenadines
Senegal
Singapore
Slovak Republic
South Africa
Spain
Sri Lanka
Suriname
Swaziland
Sweden
Tanzania
Thailand
Uganda
United Kingdom
United States
Uruguay
Venezuela
Zambia
PARTICIPANTS WHO HAVE ACCEPTED THE WTO AND WHOSE
SCHEDULES ARE BEING VERIFIED (9)
Central African Republic
Chad
Grenada
Guinea Bissau
Maldives
Mali
Mozambique
Papua New Guinea
Qatar
PARTICIPANTS IN THE PROCESS OF DOMESTIC RATIFICATION (38)
Angola
Benin
Bolivia
Burkina Faso
Burundi
Cameroon
Congo
Cuba
Cyprus
Djibouti
Dominican Republic
Egypt
El Salvador
Fiji
Gambia
Guatemala
Guinea
Haiti
Israel
Jamaica
Lichenstein
Madagascar
Nicaragua
Niger
Poland
Rwanda
Sierra Leone
Slovenia
Solomon Islands
St. Kitts and Nevis
Switzerland
Togo
Trinidad and Tobago
Tunisia
Turkey
United Arab Emirates
Zaire
Zimbabwe
Algeria and China: their terms of membership are still to be finalized.
END
GW/13
Page 2/3 TE 011
6 January 1995
Sub-Committee completes Preparatory
work on trade-environment issues
Can trade liberalization assist the protection of the environment? And how will new environmental
measures affect exports of developing countries? These were the main questions examined by the Sub-
Committee on Trade and Environment at its final meeting held on 23-24 November 1994.
Many members pointed out that trade-distorting practices have led to environmental degradation.
For instance, massive subsidies on agricultural production and falling commodity prices have encour-
aged over-exploitation of farming lands. Tariff escalation (low duties on raw materials but much higher
rates on finished goods) on wood products has impeded sustainable forest management. Members wel-
comed the Uruguay Round results as a major step in promoting efficient use of national resources.
Higher incomes through expanding trade should also result in more public funds available for control-
ling pollution.
Developing countries warned that they faced higher burdens compared to other countries in com-
plying with new environmental standards imposed on imports. Extended time limits for compliance as
well as enhanced technical and financial assistance were suggested by some members as possible ways
of asssisting developing countries in this regard.
At its first meeting in 1995, the WTO Committee on Trade and Environment will focus on another
issue with development implications - that of exports of domestically-prohibited goods. These are pro-
ducts whose sale and use are restricted in the domestic market - such as hazardous waste and chemicals
- but which are nevertheless exported to other countries.
A detailed report on the final meeting of the Sub-Committee, as well as on its previous meeting held
on 26-27 October 1994 on how should the WTO deal with trade measures taken under multilateral envi-
ronmental agreements, follows.
95-0005 News and Views from the GATT
The Sub-Committee on Trade and Environment has continued its first round of discussions on three
items from its work programme that it has decided should receive initial attention. At its meeting on 26-
27 October it addressed the relationship between the provisions of the multilateral trading system and
trade measures for environmental purposes, including those pursuant to multilateral environmental
agreements, and on 23-24 November, at its last meeting of the year, it took up the effect of environmen-
tal measures on market access, especially in relation to developing countries, in particular to the least
developed among them, and environmental benefits of removing trade restrictions and distortions.
There was agreement to extend observer status to seven more intergovernmental organizations
(UNEP, FAO, ITC, UNDP, OECD, EFTA and the Commission on Sustainable Development). As was noted
by several delegations, these organizations are directly interested and active in the subjects covered by
the WTO work programme and they join the existing four (IMF, UN, UNCTAD, and the World Bank)
which were accepted as observers in September. Further requests from inter-governmental organiza-
tions for observer status will be taken up on a case-by-case basis with reference to general criteria and
conditions for observer status in the WTO. Consultations on appropriate arrangements for relations with
non-governmental organizations have not been completed and therefore will continue next year.
The relationship between the provisions of the multilateral trading system and
trade measures for environmental purposes, including those pursuant to
multilateral environmental agreements
The relationship between the provisions of the multilateral trading system and the use of trade
measures pursuant to multilateral environmental agreements (MEAs) has already received attention in
GATT in the Group on Environmental Measures and International Trade (a summary of those dis-
cussions, in GATT document L/7402, is available upon request from the GATT Secretariat). A prescrip-
tive stage of work on this issue has not yet been reached and many delegations said they are still conside-
ring all options with open minds.
Several delegations took up the issue of trade measures applied outside the context of an MEA, saying
that unilateral trade measures aimed at achieving environmental objectives which lie outside the juris-
diction of the country imposing them or at correcting environmental damage which does not impact on
that country's territory must be avoided. Principle 12 of the Rio Declaration was referred to as requiring
that every possible effort must be made to ensure that environmental measures addressing transbound-
ary or global environmental problems are based on international consensus. Some added that resort to
unilateral measures in this context ran the risk of arbitrary discrimination and disguised protectionism
which would damage the trading system and could threaten broad support for the international environ-
mental agenda.
Austria said that governments were inclined to resort to trade measures outside the context of an
MEA if there was strong demand from their citizens to achieve an environmental goal. Governments
might then take on the role of a catalyst for action if the underlying environmental goal or preference
was not universally or widely shared, there was no agreement on the evaluation of the scientific evidence
available, or if the negotiating process to conclude an MEA was perceived to be slow or being ob-
structed. Austria noted, however, that the chances of a country succeeding as a catalyst were directly
proportional to its political and economic power.
The United States cautioned that unilateralism could take many forms and said care would be needed
in thinking through the issues involved. Multilateral approaches to resolving transboundary and global
environmental problems were clearly preferable and ways would have to be found for the WTO could fa-
cilitate them, but it was important to be mindful of the limitations of MEAs: they took time to negotiate,
sometimes short-term interest prevailed over long-term imperatives, and they might for a variety of rea-
3 Trade and the Environment
sons be vague on the use of trade measures. Consequently countries had in the past and might again in
the future find it necessary to take actions, including using trade measures, without the cover of an MEA.
The multilateral trading system should allow for the use of trade measures where these enforced or im-
plemented a prevailing scientifically-based environmental or conservation norm which had a degree of
international legitimacy. This, in the United States' view, could help lead to subsequent MEAs.
Several other delegations said they could not accept the use of trade measures by one country alone
to apply environmental programmes or standards extra-territorially simply because there were difficul-
ties involved in negotiating MEAs; the difficulties should not detract from the desirability of reaching
consensus on the use of trade measures. Also, they questioned why trade measures would be necessary
to enforce or implement an international environmental norm and why an MEA would not be a more ap-
propriate vehicle for any trade action that might be envisaged. In their view, the WTO was not the right
forum to look for authority to use trade penalties when there was no agreement on the environmental
problem concerned; that would cast it in the role of deciding on and acting as arbitrator in matters re-
lating to environmental policy. Unilateral trade measures of this kind created many problems for the
multilateral trading system, and proposing them was not viewed as helping progress to be made on con-
sideration of the use of trade measures in MEAs.
The use of trade measures pursuant to multilateral environmental agreements
Several delegations said that the dimensions of the problem under examination in this area should
not be exaggerated. Noting that trade provisions had been included in only a small number of MEAs and
that none has ever been subject to a legal challenge under the GATT, they pointed to the broad scope that
exists for negotiators of MEAs to achieve their environmental objectives in a manner fully compatible
with the multilateral trade rules, especially when account is taken of the ability of the GATT to accommo-
date certain overriding public policy objectives through its general exception provisions in Article XX. It
should not always nor even often, they said, be necessary to further exempt trade measures taken under
MEAs from WTO rules. Some doubted anything more needed to be done, and said the WTO dispute set-
tlement provisions provided adequate means of addressing conflicts in this area, if and when one arose,
case-by-case.
A number of delegations said that the GATT rules should not be allowed to act as an arbitrary impedi-
ment to the use of trade measures in MEAs, but that before proceeding to review whether there was a
need to increase WTO flexibility in this area the necessity and effectiveness of including trade measures
in MEAs, notably discriminatory trade measures for use against non-parties, should be examined. Sev-
eral felt there were other, equally effective means available, such as financial and technological assist-
ance, which would secure the environmental objective better than trade measures and prove more effec-
tive in securing support for a coordinated, global response. The United States said analysis of this issue
would require a clearer understanding of the background to MEAs, in particular the process of decision-
making that went into them. When they involved a decision on the necessity and expected effectiveness of
trade measures to achieve environmental objectives, that decision should be respected.
To the extent a common understanding emerges among WTO Members that on occasion it may be
necessary to use trade measures in MEAs that are inconsistent with existing WTO provisions, even if only
as a last resort, two lines of enquiry into their relationship with the multilateral trading system have been
suggested. One would rely primarily upon recourse on a case-by-case basis to the waiver provisions of
the WTO - the so-called ex post approach. The other - an ex ante approach - would involve the negotia-
tion of a collective interpretation or an amendment to existing WTO provisions to deal specifically with
this issue. Both approaches began to be explored in the GATT EMIT Group, and the broad outlines of
4 News and Views from the GATT
each approach, along with a summary of the views of delegations on their respective pros and cons, can
be found in the Report of the Chairman of the EMIT Group of February 1994 (L/7402).
In the October meeting of the Sub-Committee, delegations referred back extensively to their previous
discussions on this issue and introduced a number of new elements to the debate.
Several focused on criteria that might be established if trade measures taken in pursuance of an MEA
were to benefit under an ex ante approach from greater flexibility than exists at present under WTO
rules. Sweden, speaking on behalf of the Nordic countries, said there was no intention to create a blank
cheque in this regard and that the criteria which could determine whether an MEA would be eligible for
an exception under the WTO should include its level of representation, the extent of participation of
countries concerned with the specific environmental problem, the openness of the MEA for accession by
all governments, and the extent to which the use of trade measures is specified in an MEA and the trade
measures are established to be necessary and linked directly to the environmental problem. Criteria re-
lating to the trade measures themselves such as least-trade restrictiveness and effectiveness would pro-
vide additional guidance for the negotiators of MEAs and national governments when implementing
them. Another delegation added that great care should be taken not to open an ecological window
through which short-term protectionist measures could enter, and said the criteria should include non-
discrimination, national treatment, the need for a measure and its scientific basis, transparency, propor-
tionality, effectiveness, and least trade-restrictiveness.
The European Communities recalled suggestions it had made earlier on the need to define what con-
stitutes a "genuine" MEA for WTO purposes, to consider whether trade measures taken pursuant to
MEAs should be subject to different treatment when they are not specifically provided for in an MEA, and
what kind of trade measures might be foreseen. On this last point, the EC recognized a legitimate con-
cern to avoid the application of trade measures vis-à-vis non-parties to MEAs on products which had no
connection with the environmental damage being addressed. It felt, however, that the WTO should ac-
knowledge that trade provisions against non-parties could provide for restrictions on products which
were environmentally damaging and that MEAs might also need to include measures against non-parties
based on processes and production methods (PPMs) where product standards were insufficient to
tackle the environmental problem. In the case of PPM-based measures, however, the EC felt a cautious
approach was warranted; for instance, there could be requirements that a clear causal link exists be-
tween the PPM and the environmental damage which the MEA aims to redress and that parties to the
MEA have explicitly determined that other forms of trade control are insufficient. Canada said that an im-
port restriction based on non-product-related PPMs might be considered for inclusion in an MEA where
the environmental effects of production externalities were global or transboundary, but it was not a first
best solution and its effectiveness would depend upon most if not all countries concerned applying the
same measures relating to the production externality.
Argentina suggested combining the advantages of the ex-post and ex-ante approaches by defining
criteria which would, prima facie, make the trade measures adopted within the context of an MEA com-
patible with the GATT and then examining for each MEA whether the criteria were met. The criteria
would cover the conceptual scope and characteristics of MEAs and justification for and the charac-
teristics of the trade measures they contained. Argentina proposed four basic criteria: the term "multi-
lateral" should be considered in terms of the minimum number of countries in the geographical region
covered by an MEA which would have to be party to it and the need for MEAs to be open to participation
by any WTO Member irrespective of its level of development, market characteristics or geographic loca-
tion; the term environmental" should cover any agreement having an environmental protection objec-
tive, even if this was not its only objective; trade measures included in an MEA should be shown to be
indispensable to meeting its environmental objectives; and trade measures should be the least trade re-
strictive in each particular case. The criteria could be reflected in a collective interpretation of Article
5 Trade and the Environment
XX, and a procedure similar to that provided for in the GATT waiver provisions could be used to examine
them case-by-case. This combined approach would, in Argentina's view, make it possible to deal with
two major concerns: the need to admit legally, in the GATT, the possibility of applying trade restrictions
pursuant to MEAs while maintaining liberal trading conditions and respecting the laws of each contract-
ing party in the course of dealing with environmental problems.
Another delegation suggested there might be merit in exploring a menu approach similar to that con-
tained in GATT Article XX(h) and its Interpretative Note which concerns measures taken pursuant to ob-
ligations under intergovernmental commodity agreements. This provides for three different means of ac-
commodating such measures: if the measures are under agreements which conform to a set of prin-
ciples approved by the UN Economic and Social Council; if the measures are under agreements which
conform to criteria submitted to the GATT CONTRACTING PARTIES and are not disapproved by them; or
if the measures are contained in individual agreements that are submitted to the CONTRACTING PARTIES
and are not disapproved by them. The attraction of this approach was described as its use of generic
criteria to cover some situations with provision for case-by-case examination in others.
Other possible approaches were also referred to. Austria, for example, suggested that an under-
standing could be elaborated obliging WTO Members not to create unnecessary barriers to trade and to
apply measures in the least trade distortive manner, a "trumping clause" covering existing, unchallenged
MEAs could be modelled on the approach adopted in this area in the NAFTA, or the burden of proof
could be shifted so that trade measures based on MEAs would be presumed not to create unnecessary
barriers to trade and be least trade distortive and least inconsistent with WTO rules. Also, Austria sug-
gested, WTO Members might ask for a non-binding legal opinion from the WTO legal service or Appel-
late Body on whether the trade measures envisaged in an MEA could be regarded as compatible with
WTO rules. If parties to an MEA decided not to accept this opinion, they should be encouraged to dem-
onstrate to the WTO Council why the trade measures had to be included in the MEA to fulfil its environ-
mental objective or to apply for a special ex-ante environmental waiver
Several delegations addressed specifically the situation of non-parties to MEAs. One said that dis-
criminatory trade measures taken against non-parties were not always effective and in some cases could
even prove counter-productive to environmental protection. If an MEA had broad enough participation,
non-discriminatory measures should serve the environmental purpose satisfactorily. Several delegations
said that merely not being a party to an MEA should not make a country more vulnerable for punitive ac-
tion, and added that developing countries, non-party to an MEA, would be considerably more vulnerable
to the threat of trade sanctions than would developed countries. One delegation said it was not the func-
tion of the WTO to serve as a mechanism for putting pressure on a country to sign MEAs. Any so-called
new "environmental window" should be designed to protect the interests of WTO Members from the
possibility of trade measures being used in ways incompatible with the WTO; trade measures could be
permitted if they were provided for in MEAs, but only between parties. The European Communities
called for respect for the judgement of environmental experts who negotiated MEAs that trade measures
against non-parties to an MEA were necessary to achieve its aims. However, the EC said, there was no
reason to use trade measures against non-parties if they met the level of environmental protection dic-
tated by the MEA; that was already taken into account in the headnote language to GATT Article XX that
measures must not be applied in a manner which would constitute a means of arbitrary of unjustifiable
discrimination between countries where the same conditions prevailed.
A number of delegations felt it important to take account of the particular problems of developing
countries' participation in MEAs. One said that any difficulties developing countries had in complying
with the provisions of global MEAs should be mitigated by compensatory measures and mechanisms as
well as transition periods as existed already in the Climate Change Convention, the Montreal Protocol
and the Biodiversity Convention. Any trade measure in new MEAs or in new Protocols to existing ones
6 News and Views from the GATT
would have to take account of transition periods granted to developing countries for reaching certain
objectives, and it was therefore important to define the relation between the stage of development of a
country and its capacity to improve its environmental standards. Another added that technology and re-
source transfers would be necessary to allow developing countries to adopt environmentally sound pro-
duction methods, and until those transfers were made there should be specific provisions to maintain a
balance between the capabilities of developing and developed countries.
The effect of environmental measures on market access, especially in relation to
developing countries, in particular to the least developed among them, and
environmental benefits of removing trade restrictions and distortions
Many delegations noted that issues of market access cut across virtually all items of the trade and en-
vironment work programme and that the effect of environmental measures on market access was al-
ready being taken up, particularly in the context of environmental taxes, charges, technical regulations
and standards.
Several said that this particular item permitted a focused examination of the environmental benefits
of removing trade restrictions and distortions. The background for further work should be that trade lib-
eralization was a prerequisite for environmental protection. When the price of a product reflected the
real cost of the factors involved in its production and distribution, resources would be allocated effi-
ciently, but if real cost was lower than reproduction cost there would be price distortion which could
lead to over-exploitation of resources and, possibly, their premature depletion.
Argentina said a key question was which distortions in price formation could have a negative effect
on the environment. In the case of commodities, which came at the top of the production chain and
were therefore particularly sensitive to failure to internalize environmental costs, the most obvious dis-
tortion was caused by subsidies. Not all subsidies that affected commodities necessarily have negative en-
vironmental externalities, nor are subsidies the only distortion in price formation to obstruct the inter-
nalization of environmental costs. However, dealing seriously with the trade and environment relation-
ship meant not overlooking the adverse environmental impact of the massive sums of money allocated
each year to subsidizing agriculture in industrialized countries as well as other commodity sectors such
as fishery.
Subsidies could affect the environment of other countries in several ways. They discouraged efficient
resource allocation and forced overseas producers to over-exploit their own environmental resources if
they were to avoid being excluded from the market. Commodity prices were distorted by failure to inter-
nalize environmental costs, so the environmental impact generated by the production of a product was
often inversely proportional to its price. A case in point was organic foods, whose price was usually
higher than the price of products produced with intensive use of fertilizers, pesticides and inputs to im-
prove their appearance. Also, restrictions on market access and the associated loss of earnings forced
overseas producers to resort to practices that were harmful to the environment, such as abandoning
crop rotation systems, incorporating marginal land into production and resorting to intensive cropping
practices, and left them unable to afford environmentally friendly practices. Raising the income of effi-
cient agricultural producers was not enough to guarantee better environmental practices but it was a
prerequisite for implementing policies that encouraged ecologically sustainable farming practices. The
obvious and indispensable first step was to agree on a framework to eliminate those subsidies that had
negative environmental externalities in the process of commodity production. Neither the difficulties of
eliminating subsidies and improving market access, nor what was already being done in terms of "set
aside" and the correction of many agricultural protection measures, could be overlooked. However,
7 Trade and the Environment
subsidies distorted world trade in agriculture and at the same time caused serious environmental harm,
making two good reasons for stepping up efforts to eliminate them.
Many countries supported and reiterated what had been said by Argentina with regard to the poten-
tial environmental benefits of removing trade-distorting and restricting subsidies, particularly for agri-
culture and other sectors of primary commodity production. Some added that subsidies also diverted re-
sources which would be better allocated to alternative uses related to internalizing environmental costs
and promoting sustainable development in developing countries.
One delegation said that the WTO Agreement on Agriculture was an important first step towards cor-
recting problems but major trade distortions remained and there was considerable further scope to
realize the contribution which agricultural trade liberalization could make to promoting sustainable de-
velopment. While a reduction in agricultural trade distortions should have direct environmental benefits,
in many other sectors the effects might be more indirect but were still important. More liberal trading
conditions for natural resource based products could support efforts to promote sustainable manage-
ment of those resources and to internalize the environmental costs of their use. In addition, reduced ta-
riff escalation for processed products and improved trading opportunities for a wide range of industrial
products could assist countries seeking to diversify their economies and lessen their dependence on en-
vironmentally-sensitive commodity production. The extent to which members of the multilateral trading
system worked together to minimize unwarranted effects of environmental measures on market access
and seriously responded to the need to remove trade restrictions and distortions would be an important
test of the commitment to finding equitable and cooperative solutions to advancing environmental goals
and the objective of sustainable development.
The European Communities said that insofar as negative environmental effects did result from trade-
distorting subsidies, in particular in the field of agriculture, it could not be underlined enough that a
great step forward was already being made through the market access improvements of the Uruguay
Round. These provided enhanced possibilities for production to take place in countries with the envi-
ronmental capacity to carry it out in an environmentally efficient manner and at the same time allowed
increased market access for developing countries. Trade liberalization might well bring environmental
benefits provided that countries applied appropriate environmental policies which took account of the
environmental impact of agriculture. However, several countries, including developing countries, ap-
plied non-tariff measures on a number of products in the natural resource and raw materials sectors
which provided an artificial competitive advantage to domestic producers vis-a-vis foreign competitors.
The measures could be grouped into three categories: the supply of raw materials to local producers at
lower than world market prices, export restrictions on raw materials, and differential export taxes ap-
plied to raw materials and to processed products. In certain cases these policies could impact negatively
on the environment through inefficient allocation of resources and over-exploitation of resources by
local producers. In any discussion of the environmental benefits of removing trade restrictions and dis-
tortions, this issue should also be taken into account.
The United States, commenting preliminarily, said economic theory held that trade liberalization pro-
duced greater efficiencies and higher standards of living, which in turn could be expected to produce
environmental benefits in the form of more efficient utilization of scarce resources. Also evidence sug-
gested that as per capita income increased countries would be more able and willing to devote resources
to controlling pollution. However, tradeper se did not always carry positive environmental conse-
quences; much depended on the context in which trade liberalization occurred. Without adequate atten-
tion to the utilization of scarce resources and to environmental considerations in promoting growth and
development, increased trade could result in amplifying environmentally damaging production and un-
sustainable development. The effects of environmental compliance costs were relatively small in com-
parison to those of other factors of production, and even where they implied significant investment out-
8 News and Views from the GATT
lays some might produce not only environmental but also economic benefits in the long term, especially
where standards encouraged more efficient processes. The Uruguay Round should result in important
economic advantages for developed and developing countries, which would contribute positively from
the environmental perspective, but concerns remained. For example, tariff escalation might promote in-
efficient production or false efficiencies, a phenomenon of particular concern to natural resource sec-
tors such as wood products. Efforts to eliminate tariff escalation in that sector in the Uruguay Round had
been thwarted and effective rates of tariff protection still were close to 30 per cent. This was a serious
disappointment, not least because it decreased the value of forest resources and impeded efforts to in-
vest in sustainable forest management.
One delegation said the effects of trade liberalisation in stimulating economic growth could be ar-
gued to have negative environmental consequences where it resulted in more pollution, but it was im-
portant in this regard to consider what appropriate environmental policies might be used to offset any
such adverse effects. Economic growth could equally enable governments to tax and raise resources for
a variety of objectives, including the abatement of pollution and the general protection of the environ-
ment, and it may also increase awareness of the environment. A second aspect was that a reduction of
tariffs and non-tariff barriers would favour the development of and allow producers to meet the growing
market for environmental goods and services. Third, the reduction of subsidies, especially in the agricul-
tural sector, may lead in the medium and long term to more environmental friendly agricultural produc-
tion. In all of these respects, however, trade liberalisation would not be sufficient if it was not accompa-
nied by proper environmental policies and measures; the effect of the reduction and elimination of
trade barriers depended largely on each country's entire policy framework and priorities.
Several delegations felt there was a high risk that environmental conservation and trade protection-
ism would go hand in hand. Experience of the past few years, they said, indicated that environmental
protection was being used increasingly as a barrier to impede developing countries' access to developed
countries' markets and protect commercial interests rather than to achieve environmental goals. Even
where environmental measures were not a direct outcome of commercial interests, they transferred un-
warranted environmental standards to developing countries. The effects of environmental measures on
market access and trading opportunities of developing countries should be looked at from two perspec-
tives: the effects of developing countries' own environmental measures on the competitiveness of their
exports, and the impact of environmental policies in developed countries on the trade prospects of de-
veloping countries.
One delegation said the ability of developing country producers to pass on internalized environmen-
tal costs in the prices of their exports to consumers in developed country markets was limited by several
factors. One was that the typical commodity composition of exports of developing countries was rela-
tively undifferentiated. Also, a great deal of world trade was dominated by intra-firm transactions which
often took place at transfer prices, and this pointed to the importance of restrictive business practices on
the process of concentrating internalized environmental costs in developing countries. The way in which
protection of intellectual property rights limited the access of developing countries to new, environmen-
tally friendly technologies was another contributing factor, as was the power of the media in influencing
consumption patterns in developed countries, often in ways that disadvantaged products exported from
developing countries.
Regarding the impact of environmental measures in developed countries on the trade prospects of
developing countries, empirical studies by UNCTAD showed that when developing countries had to ad-
just their production processes in response to changing environmental requirements in developed coun-
tries, a higher burden was placed on these countries; the impact was especially serious on small pro-
ducers. Small scale exporters from developing countries competed internationally on the basis of price
rather than non-price factors such as environmental product and PPM characteristics, and could often
9 Trade and the Environment
not obtain price premiums for making environmental improvements. Three categories of costs were
shown to be important by these studies: transaction costs, because regulations between different mar-
kets may be substantially different; market access barriers created by environmental measures, which
were likely to rise and to compound other risks associated with export; and fixed costs related to pro-
cess or design modifications which may be particularly difficult for developing countries to afford.
One delegation said the interrelationships between environmental measures and market access were
complex, often indirect and uncertain for a number of reasons and the interlinkages were in need of fur-
ther study. On a preliminary basis, however, market access could be influenced by increased costs of
complying with environmental standards, competitiveness effects, and changing consumer preferences.
For developing countries this could add up to reduced trade opportunities because of the higher costs
involved, although they might stand to gain if changes in aggregate demand led to a replacement of
chemical or synthetic products by natural products. As for the environmental benefits of removing trade
restrictions and distortions, the effects were more direct and causal. Trade restrictions and distortions,
such as subsidies affecting trade in agriculture and tropical products, had had disastrous environmental
consequences in many countries, and Africa contained tragic examples. Declining world prices of pri-
mary products, caused largely although not exclusively by trade distortions, particularly subsidies, led to
over-exploitation of natural resources with severe environmental consequences such as deforestation
and desertification. For the environment to continue to provide the basis for trade expansion, product
prices must reflect full environmental costs of protection.
Brazil recalled that "Promoting sustainable development through trade liberalisation" had been a key
theme of the UNCED results, and that Agenda 21 called for an expansion of market access in favour of
developing countries. Trade liberalization increased development opportunities, and gains in allocative
efficiency reduced over-exploitation and wasteful use of natural resources. It was important to improve
the terms of commodity trade, which was vital for so many developing countries and which had a direct
relationship to the natural environment. In this respect at least three issues were GATT-related: access,
distortions, and diversification. In the access area, besides the problem of border measures which had
been the subject of the Uruguay Round negotiations, it was important to examine internal taxation of
tropical commodities which, even if formally in conformity with GATT provisions, distorted competition
and was equivalent to an import tariff. In the area of distortions, agricultural subsidies depressed world
prices and caused general over-exploitation of resources in developing countries. Support for diversifi-
cation efforts was needed to reduce dependence on a restricted number of commodities and help avoid
their over-exploitation due to price falls. The same logic favoured vertical diversification, since pro-
cessed products were less subject to price fluctuation, and reducing tariff escalation in developing coun-
tries' main export markets was important in this regard.
The European Communities said Principles 2, 4, 6, 11 and 12 of the Rio Declaration were relevant to
this item of the work programme. As far as environment and development were concerned, a major task
was to render compatible and supportive the right to environmental protection at a high level with the
right of all countries, particularly less and least developed countries, to benefit from trade through
agreed market access. In both respects the WTO would make a significant contribution, recognizing the
right of WTO members to adopt a high level of domestic environmental protection and allowing in the
framework of the non-discriminatory trading system more favourable treatment to developing countries,
especially the least developed, taking account of their special needs and specific problems. The
GATT/WTO system allowed a certain degree of flexibility to developing countries in complying with the
trade rules. When dealing with the inter-relationships between environmental protection, market access
and development, a similar approach could be pursued. Developed countries, for instance, when intro-
ducing environmental measures affecting in particular market access for developing countries could
consider the possibility of using a differentiated schedule for compliance, such as time-limited excep-
10 News and Views from the GATT
tions from complying with the relevant obligations or other forms of phase-in or phase-out periods.
However, time-limited exceptions should not create a risk of undermining the environmental objective
of a measure. Another option could be to grant special treatment to developing countries in terms of
market access for products whose characteristics or whose method of production had been internation-
ally recognized as environmentally friendly. Also, technical and financial assistance might be granted on
concessional terms to developing countries in order to help them comply with new environmental regu-
lations.
Several delegations stressed the importance of transparency, and especially ex ante transparency, for
all members of the trading system, and said that disseminating more information about national environ-
mental measures, policies and standards, especially those with likely trade implications could avoid ad-
verse trade effects and also assist in avoiding disputes. Canada noted that recent UNCTAD studies had
concluded that the most significant problem that exporters from developing countries faced was lack of
sufficient, up-to-date information on trade-related environmental measures, some of which were not
subject to formal notification requirements under GATT.
One delegation said that as environmental policies, particularly in developed countries, became
more stringent and comprehensive, their potential effects on market access and on competitiveness, es-
pecially for developing countries, would become more important. Those effects could by analyzed along
five lines. First with regard to the type of policy instrument used, even if it was non-discriminatory, trans-
parent and proportional, developing countries might face specific problems. Adaptation to and com-
pliance with new technical regulations could be difficult and costly, particularly where these required
access to environmentally sound technologies. Second, the export-orientation of many developing coun-
tries' economies and their concentration in certain sectors could make them more vulnerable to envi-
ronmental measures in their overseas markets. Third, developing countries tended to have greater con-
centrations of small firms than developed countries, and small firms might be less easily able to adapt to
meet new environmental requirements. Fourth, unilaterally applied environmental measures could
prove more difficult for developing country producers to meet than measures applied by many countries
pursuant to an MEA. Lastly, trade-related measures applied by developed countries for tackling strictly
local environmental problems or even regional problems might cause difficulties for developing coun-
tries and force them to devote more resources to certain environmental improvements rather than
choosing on the basis of their own environmental and developmental priorities. MEA-based measures
addressing global environmental problems, which contained transitional periods and specific financing
mechanisms for developing countries, would prove less onerous in this regard. Given the complexity of
each of these factors, more case studies of the trade effects of specific environmental measures for de-
veloping countries would be useful.
Sweden, speaking on behalf of the Nordic countries, said small, developed countries shared many of
the concerns of developing countries that environmental protection could be misused as a means for
hidden protectionism. However, this aspect should not be exaggerated and the North-South dimension
of the issue must not be used as a pretext for delaying the introduction of higher environmental stand-
ards. Transparency and access to information was of vital importance in ensuring that environmental
measures would not become an unnecessary obstacle to trade, and in this respect eco-labelling schemes
provided an opportunity to enhance market access for developing countries by promoting environmen-
tally friendly products. To improve market access possibilities, it was important that environmentally
sound technologies were made available to as many countries as possible. The TRIPs Agreement would
facilitate that, but there was need to go further through work on trade and investment and its impact on
market access, technology transfer and the environment. The impact of trade-distorting and restricting
subsidies in general on market access of developing countries as well as on the environment in expor-
11 Trade and the Environment
ting and importing countries needed to be examined, as did the impact of tarification on the environ-
ment.
Austria said analysis should take adequate account of the possibility that side-effects of environmental
measures on market access could be a consequence of or a necessity for the attainment of the environ-
mental objective of an environmental measure and prima face should neither be avoided nor desired.
Aspects such as the environmental effectiveness of a measure, its structure, contents and the underlying
environmental objective, should not be forgotten. Products from developing countries could be more
environmentally friendly than competing goods from developed countries because of the raw materials
incorporated in them or because they were less intensive in terms of environmental resource use. If it
were possible to enable producers from developing countries to effectively communicate the environ-
mental advantages of their products to consumers in developed countries, producers from developing
countries would equally be in position to benefit from consumers' preference for "green products" and
their willingness to acknowledge environmental efforts on the producer side.
Environmental taxes, charges, technical regulations and standards
Canada picked up the discussion from the Sub-Committee's September meeting on environmental
taxes and charges (See Trade and Environment Bulletin No. 010). Noting that the effectiveness of eco-
taxes aimed at addressing local environmental impacts of products at the consumption or disposal stage
were enhanced if they were applied to imports as well as domestically produced goods (although not of
course exports), Canada said that in the case of measures aimed at local environmental impacts at the
production stage there did not appear to be any clearly useful purpose served by imposing PPM require-
ments on imports. The two main motivations advanced for adjusting PPM-based taxes and regulations at
the border were to encourage a change in environmental behaviour by foreign producers and to re-
spond to concerns of domestic producers who incurred additional environmental costs that they were
not disadvantaged vis-à-vis foreign producers. Many viewed the first of these as an expression of
extraterritorial imposition of domestic standards that had been clearly rejected in GATT and in Prin-
ciple 11 of the Rio Declaration. The debate therefore came down to competitiveness concerns, and for
several reasons Canada was not convinced this was an appropriate reason for extending domestic PPM
measures to imports. In most cases, it was not clear that higher environmental standards accounted for
a sufficiently significant element of the cost of production that they alone would have a critical impact on
competitiveness. Second, in many areas conforming to higher standards could actually improve the ap-
peal of products and therefore enhance their competitiveness. Third, there were many other costs of
production that accounted for much greater differences in competitiveness, including ones that also re-
flected national values and choices. Why should environmental costs be adjusted at the border when, for
example, more significant social programme costs were not? In addition, Canada pointed to practical
problems of developing an objective basis for calculating a PPM-based border tax, for instance where
overseas suppliers had standards that were different but equally stringent in their own way.
Where the competitive position of a domestic industry could indeed be significantly affected by higher
production standards, Canada said other alternatives should be considered. If a transboundary or global
environmental problem was at issue, efforts would be needed to find common approaches on a multilat-
eral basis. If the environmental problem was entirely local, the possibility of adjustment assistance could
be considered and in that regard the WTO Agreement on Subsidies and Countervailing Measures would
allow financial assistance to firms that had to meet mandatory new environmental requirements.
Canada added that another form of international cooperation in this area was the development of
what the ISO had called "environmental management standards". These would be an agreed means of
measuring the sustainability of various production practices. Voluntary standards, accompanied by an
agreed and verifiable certification system, would provide consumers with the information needed to
12 News and Views from the GATT
make environmentally sound purchasing decisions. A prime example of a sector in which this could be a
promising approach was forestry. One advantage was that the development of international environmen-
tal management standards involved private sector business and environmental interests directly.
The United States presented a paper on eco-labelling. Noting that eco-labelling could be a valuable
tool to provide market information and to facilitate environmental improvements, the paper also out-
lined certain concerns. These related to whether the information provided was complete and adequately
informed consumers of various environmental impacts, and whether they influenced consumer and pro-
ducer behaviour in ways that led to improved environmental aspects of covered products. There were
also concerns about whether a multiplicity of different eco-labels affected their credibility and effective-
ness, potential problems of market segmentation and potential conflicts between regulatory require-
ments and the criteria of eco-labels.
The paper described various types of existing programmes. For example, some information disclo-
sure schemes rely on life cycle assessment to provide information for reporting key environmental im-
pacts. Some involve life cycle assessment even if they are not seal of approval type schemes. There are
also hybrids; for example, information-disclosure or report-card type schemes could involve overall en-
vironmental assessment as well. Other schemes have a series of assessments or marks for different im-
pact areas, such as on water, air, or solid waste disposal, and do not attempt to draw overall conclusions
but rather rank the impacts in each category. Each could raise different issues or concerns, but one
thread that was common to all was the question of what information was being provided. Was it quantifi-
able and verifiable, or was it an attempt to draw judgements on the overall environmental merits of one
product versus another? The answer could lead in different directions in assessing the impact of an eco-
labelling programme both in environmental and economic terms.
The paper also discussed the quality of the information provided and laid out a number of different
perspectives and concerns with regard to life cycle assessment and its role in eco-labelling. It touched
on what environmental impact was the eco-label addressing, what stages in the product's life cycle were
important, were criteria based on local, regional, or national environmental priorities or endowments
or was there an attempt to create some broadly-based international criteria were the criteria applied to
domestic products and imported products, and what were the possibilities for mutual recognition
among labelling schemes.
The paper raised a number of issues about eco-labelling from the perspective of the multilateral trad-
ing system. One was the coverage of the trade rules and whether this was affected by the degree of gov-
ernment involvement. It also addressed the issue of discrimination, the adverse trade affects and trans-
parency issues (i.e. access to labels) and cost and competitiveness issues. The paper also raised ques-
tions from an environmental perspective, including whether further flexibility was needed in the multilat-
eral trading system to allow eco-labelling to be effective. The question of how to structure eco-labelling
so as to accentuate the potential for improved environmental protection and technological development
was addressed, as were various considerations of how eco-labelling could be a tool for environmental
cost internalization and for addressing concerns of the effects of trade and trade liberalization on the en-
vironment and sustainable development. Finally, the paper addressed how, from an environmental and
trade perspective, the effectiveness and acceptability of eco-labelling could be enhanced.
Brazil presented a preliminary analysis of how eco-labelling schemes were covered by the WTO
Agreement on Technical Barriers to Trade (TBT) and what the level of obligation might be for different
kinds of eco-labelling schemes. It was clear from the definitions contained in the TBT Agreement that la-
belling in general was covered, and that eco-labelling involved a conformity assessment procedure
which was also covered. Brazil noted fears that if eco-labelling schemes based on unincorporated PPMs
(those not reflected in final product characteristics) were considered to be covered by the notification
13 Trade and the Environment
obligations of the TBT Agreement there was a risk this would be interpreted as meaning that GATT recog-
nized and permitted the use of import restrictions based on unincorporated PPMs. That would under-
mine the guarantees provided by GATT rules for market access to products, independent of their PPMs.
Standards and technical regulations based on PPMs related to product characteristics had been included
in the coverage of the TBT Agreement so that these were now subject to TBT disciplines, and bodies
which created eco-labelling schemes based on that criterion should be considered standardizing bodies.
The fact that the Agreement did not regulate what went beyond the product reflected the preoccupation
of not interfering with each country's prerogative to establish the PPM standards it considered appropri-
ate for its domestic conditions, including the level of risk acceptable. The unacceptability of differentiat-
ing products at the border on the basis of unincorporated PPMs was a counterpart to this prerogative.
With regard to the level of disciplines, Brazil said the TBT Agreement tried to reduce the difference
between levels of obligations for central government, local government and non-government bodies, as
well as in the area of notifications between mandatory and voluntary standards, and to reinforce the re-
sponsibility of signatories for the implementation of disciplines at all levels. Eco-labelling schemes were
normally voluntary and in most cases non-governmental, but governments had an important participa-
tory role in their implementation and promotion and therefore an obligation to take reasonable
measures to ensure the schemes complied with basic disciplines such as non-discrimination and on ac-
cess to and the functioning of conformity assessment procedures. Also, although not subject to the same
notification requirements as technical regulations, standards were subject to transparency requirements,
including making information available through enquiry points. Some doubts might arise in relation to
voluntary conformity assessment procedures, but a voluntary eco-labelling scheme implemented by a
central governmental body was subject to all transparency obligations, including notification.
Overall, however, the WTO TBT Agreement was not tailored with eco-labeiling schemes in mind, and
in Brazil's view discussion should continue on the possibility of complementing it in the eco-labelling
area. Meanwhile, governments should ensure that the present disciplines were strictly observed.
14 |
GATT Library | dj181sg1062 | United States Agricultural Adjustment Act : Thirty-Seventh Annual Report by the United States Government. Under the decision of 5 March 1955 | General Agreement on Tariffs and Trade, January 31, 1995 | General Agreement on Tariffs and Trade (Organization) | 31/01/1995 | official documents | L/7616 and 0143-0171 | https://exhibits.stanford.edu/gatt/catalog/dj181sg1062 | dj181sg1062_90080608.xml | GATT_1 | 6,491 | 43,123 | RESTRICTED
GENERAL AGREEMENT L/7616
31 January 1995
ON TARIFFS AND TRADE Limited Distribution
(95-0145)
Original: English
UNITED STATES AGRICULTURAL, ADJUSTMENT ACT
Thirty-Seventh Annual Report by the United States Government
Under the Decision of 5 March 1955
The following report, dated 9 January 1995, has been received from the representative of the
United States. The report covers the period October 1993 to September 1994.
REPORT OF THE UNITED STATES GOVERNMENT TO THE CONTRACTING PARTIES
ON ACTION UNDER SECTION 22 OF THE AGRICULTURAL ADJUSTMENT
ACT OF 1933, AS AMENDED
1994
Introduction
This report is submitted in accordance with the decision of 5 March 1955, waiving United
States obligations under Articles Il and XI of the GATT to the extent necessary to prevent their conflict
with actions the United States Government is required to take under Section 22 of the Agricultural
Adjustment Act of 1933, as amended (BISD, Third Supplement, page 32 and 35). This report covers
the period October 1993 through September 1994. The Food, Agriculture, Conservation, and Trade
Act of 1990 (1990 Act), which is applicable to farm programmes for the 1991-95 period, was signed
by the President on 28 November 1990 (and later amended) and modifies provisions of numerous statutes,
including the Agricultural Act of 1949.
Recent developments
Most import restrictions imposed under the authority of Section 22 continued in effect without
change. Quantitative import restrictions established pursuant to Section 22 authority, through Presidential
Proclamations of previous years, are in effect for: cotton of specified staple lengths; certain cotton
waste and certain cotton products; peanuts; certain dairy products; and certain sugar-containing
products. An import fee is imposed on refined sugar. Section 22 requires the President to impose
fees or quantitative limitations on the importation of any articles which are necessary to prevent such
articles from being imported into the United States "under such conditions and in such quantities as
to render or tend to render ineffective, or materially interfere with," any programme undertaken by
the Department of Agriculture with respect to such articles or products thereof, or to reduce substantially
the amount of any product processed in the United States under such programmes.
During the period under review, no new proclamations were issued. L/7616
Page 2
LOAN AND DEFICIENCY PAYMENTS RATES:
1993/94
¹Basis Strict Low Middling 1-1/16, net weight, micronaire 3.5-3.6 and 4.3-4.90 Strength 24
through 25 grams per tex, at average location.
²The deficiency payment rate is based on the difference between the "established" target price
and the higher of (a) the price support loan rate or, (b) the average market price received by farmers
for the calendar year for upland cotton and for the first eight months of the calender year for ELS
cotton.
³Has not been determined. Advance deficiency payments were issued under the 1994 upland
cotton programme based on a projected final deficiency payment rate of $0.1290. No advance payments
were made for 1993 crop ELS cotton. The 1994 crop final deficiency payment rate for upland cotton
will be determined in February 1995. For ELS cotton, it will be determined in May 1995.
4Implemented through a standing offer to purchase cheese, butter and non-fat dry milk in carlots
from processors at a price designed to return the support price for manufacturing milk (national average
milkfat content of 3.67 per cent).
5Weighted average loan rate.
COMMODITY SUPPORT PRICE 1993 SUPPORT PRICE 1994
(dollars) (dollars)
COTTON (lb.), Upland)
Loan rate¹ .5235 .5000
Deficiency payment² .1860 3
COTTON, Extra Long Staple (ELS)
Loan rate .8812 .8503
Deficiency payment² .1758 3
PEANUTS (lb.)
Quota loan rate .3375 .3392
Additional loan rate .0655 .0660
DAIRY PRODUCTS (cwt.)
Mfg. milk4 10.10 10.10
SUGAR, raw value (lb.)
Raw cane sugar loan rate5 .18 NA
Beet sugar loan rate5 .2362 NA L/7616
Page 3
PRODUCTION, CONSUMPTION, TRADE AND CCC ACQUISITION AND STOCKS
DATA
(Million lb.)
Cottona August-July Production Year
Year Production Imports Cons. Exports CCC Acq. CCC Stock
1989/90 5,854 1 4,204 3,693 0b 13c
1990/91 7,442 2 4,155 3,741 0b 0c
1991/92 8,455 6 4,612 3,190 0b 0c
1992/93 7,785 0 4,920 2,496 6b 6c
1993/94 7,750 3 5,001 3,294 23b 23c
aUpland and ELS. Convert to United States bales by dividing by 480 lb. - the average weight
of a bale of cotton.
bUpland and ELS cotton loans are made for a period of 10 months. Upland cotton loans may
be extended for another eight months under certain price conditions; and, for ELS cotton, if authorized
by the Secretary of Agriculture. These figures represent total forfeitures of cotton produced during
the respective marketing year as of October 1994.
cAs of July respective marketing year.
Milkd January-December Production Year
Year Production Imports Cons. Exports CCC Acq. CCC Stocks
1989 144,239 2,498 139,802e 3,995 9,416f 4,916g
1990 144,284 2,690 142,626e 1,886 9,017f 8,213g
1991 148,526 2,625 142,818e 3,673 10,425f 11,379g
1992 152,041 2,542 145,230e 8,532 9,936f 9,526g
1993 150,954 2,807 147,733e 8,643 6,654f 5,020g
dMilk equivalent, fat basis
eDoes not include milk fed to calves
fNet acquisitions: CCC purchases minus sales for unrestricted use.
gChanges in stocks equal CCC purchases minus donations and restricted and unrestricted use
sales. L/7616
Page 4
Production, Consumption, Trade, and CCC Acquisition and Stock Data
(cont'd)
Peanuts August-July Production Year
Year Production Imports Cons.h Exports CCC Acq. CCC Stocks
1989/90 3,990 2 3,145 989 295i 0
1990/91 3,603 27 2,995 652 433i 0
1991/92 4,927 2 3,560 997 1,070i 0
1992/93 4,284 2 3,040 951 436i 0
1993/94 3,392 2 3,129 555 282i 0
hDomestic consumption includes food use, seed, crush, and loss
i Excludes immediate buybacks of additional loan peanuts
Sugar October-September Production Year
Year Production Importsj Cons. Exports CCC Acq. CCC Stocks
1998/90 13,382 5,136 18,664 1,228 0 0
1990/91 13,956 5,650 19,032 1,122 0 0
1991/92 14,610 4,388 19,084 1,254 0 0
1992/93 15,674 4,078 19,306 1,108 0 0
1993/94 15,352 3,528 19,606 908 29 12
jIncludes Puerto Rico
Cotton and Cotton Products
Quotas
Import quotas continue for upland cotton, certain staple lengths of cotton, cotton waste (excluding
cotton comber waste) and cotton products. The United States maintains cotton price support, production
adjustment and related surplus disposal programmes. Import quotas on cotton, cotton waste and certain
cotton products are necessary in order to prevent material interference with these programmes for cotton.
Support programmes
Upland cotton: The 1990 Act amended the 1949 Act and provided for a five-year programme
covering the 1991-95 crops as part of a comprehensive farm programme designed to encourage
agricultural production to meet domestic and foreign demand while protecting farm income. Although L/7616
Page 5
the upland cotton programme authorized during this period resembles earlier programmes in many
respects, several changes were made and several new provisions were introduced that are intended
to help improve the competitive position of United States' cotton in the world market.
The 1990 Act amendments continue the concept of a guaranteed or target price. The minimum
target price for the 1991-95 crops is 72.9c per lb., the same as for 1990. If the weighted average
price received by farmers tor upland cotton during the calendar year equals or exceeds 72.9c per lb.,
no deficiency payments will be issued. If the average price is less than the target price, the deficiency
payment rate will equal the difference between the target price and the higher of the calendar year
average price or the loan level for the crop.
The loan repayment rate for the 1991-95 crops equals the lesser of (a) the loan rate or (b) the
higher of - (1) 70 per cent of the loan rate, or (2) the adjusted world price (AWP) in effect for the
week in which the loan redemption occurs. The minimum loan repayment rate is 70 per cent of the
loan rate. Whenever the AWP falls below 70 per cent of the loan rate, commodity certificates or cash
payments are issued to eligible first handlers of upland cotton the first handler payment is based
on the difference between 70 per cent of the loan rate and the AV , multiplied by the quantity of cotton
sold during the week in which a payment rate is in effect. The first handler programme is designed
to make United States' cotton available to the world market at competitive prices, but this programme
has not been operational since the 1986 marketing year.
During the initial ten-month loan period, whenever loan collateral is redeemed and the AWP
is below the loan rate, the Commodity Credit Corporation (CCC) does not require payment of any
interest and pays all of the warehouse charges.
When the AWP is above the loan rate, CCC does not require the payment of that portion of
the interest and pays that portion of the warehouse charges necessary to permit the loan collateral to
be redeemed with cash at the AWP. During the eight-month loan extension period, producers are
required to pay interest and warehouse storage charges on cash loan repayments regardless of the level
of the AWP. If the loan collateral is forfeited to CCC, the producer must pay CCC eight months of
storage charges plus a handling charge of $1.00 per bale on the forfeited cotton.
Payments are authorized for producers who, although eligible to obtain loans, agree to forego
obtaining loans whenever the AWP is less than the loan rate. The loan deficiency payment rate is
equal to the difference between the loan rate and the loan repayment rate in effect during the week
in which the application for payment is filed. Producers may decide whether to obtain or forego the
loan deficiency payment on a bale-by-bale basis.
Three provisions address the competitiveness of United States cotton. The first gives the
Secretary discretion to further adjust the AWP whenever (1) the AWP is below 115 per cent of the
loan rate, and (2) the weekly average of the lowest-priced United States upland cotton quotation c.i.f.
Northern Europe ("United States Northern Europe price") exceeds the Northern Europe price. An
adjustment up to the difference between the two prices is allowed. This authority has not been available
since January 1994 as the AWP moved above 115 per cent of the base loan rate.
The second competitiveness provision requires the issuance of cash or marketing certificate
payments to domestic users and exporters if the United States Northern Europe price exceeds the
Northern Europe price by more than 1.25c for four consecutive weeks. The payment rate equals the
difference in the fourth week between the United States Northern Europe price, minus 1.25C, and the
Northern Europe price. Payments are made to domestic users based on the quantity of cotton consumed
during the week the payment rate is in effect. For exporters, payments are based on the quantity of L/7616
Page 6
cotton sold under a written contract entered into during the period. Exporters do not receive payments
until the cotton has been exported.
The third provision requires establishment of a special import quota equal to one week's
seasonally-adjusted domestic mill consumption if the United States Northern Europe price, adjusted
by the value of any marketing certificate issued, exceeds the Northern Europe price by more than 1.25c
for ten consecutive weeks. This quota provision is different from, and in addition to, the provision
which establishes a quota equal to 21 days of domestic mill consumption whenever the base quality
spot price for a month exceeds 130 per cent of the average for the previous 36 months. The special
import quota based on Northern Europe prices has never triggered.
Under the planting flexibility provisions, upland cotton, wheat, rice and feed grains producers
may plant any programme crop, any oilseed, any designated industrial or experimental crop and any
other crop except fruits and vegetables on up to 25 per cent of their base acreage. The acreage is known
as "flex acreage" and the plantings can be credited as "considered planted" to the crop. If the producers
choose to plant a crop other than their original programme crop, they will be eligible for loans, purchases
or loan deficiency payments, but not deficiency payments. The first 15 per cent of the flex acreage
is not eligible for deficiency payments, no matter what crop is planted. These provisions were designed
to give producers the opportunity to respond to market supply and demand.
Extra long staple (ELS) cotton: The ELS cotton loan rate is equal to 85 per cent of the simple
average price received by farmers for ELS cotton in the five-year period ending 31 July in the year
the loan level is announced (dropping the highest and lowest years). The target price is 120 per cent
of the loan rate. For 1994, the loan rate is 85.03c per lb. and the target price is 102C per lb.
The loan deficiency provisions, first handler and user certificate programmes and import quotas
are not applicable to ELS cotton. ELS cotton is not considered a programme crop under the planting
flexibility provisions of the 1949 Act. ELS cotton may be planted on the flex acres of other crop bases;
however, in order to be eligible for ELS cotton programme benefits, including loans and deficiency
payments, ELS planted acreage cannot exceed the permitted acreage for the farm.
Programme activity
(1) Upland cotton: Cotton price support loans mature ten months from the first day of the month
in which the loan is made. However, non-recourse loans for upland cotton are available for an additional
eight months upon request of the producer during the tenth month of the loan period, except when
the average price of base quality Strict Low Middling 1- 1/16 inch cotton (micronaire 3.5-3.6 and 4.3-4.9
strength 24-25 grams per tex) in the designated spot markets for the preceding month exceeds
130 per cent of the average spot price for the preceding 36 months. During the 1993/94 season, about
7.7 million bales of upland cotton were pledged as collateral for the CCC price support loan programme,
and as of September 1994, nearly all loans were repaid. Only 1,100 bales were forfeited to CCC.
The May 1994 United States average spot market price for base quality cotton (spot price)
was 70.3C per lb. which is 134 per cent of the average price for the previous 36-month period
(May 1991-April 1994). As a result, the option to extend loans maturing in June 1994 was not made
available to producers. In addition, as special import quota based on spot market prices equal to
183,694,813 kg. (404,978,070 lb.) was announced on 31 May, effective from 3 June through 31 August.
During the quota period, a total of 410,606 kg. (905,232 lb.) of cotton was imported.
The June 1994 spot price also exceeded 130 per cent of the previous 36-month average.
Producers were not allowed to extend loans that matured in July 1994. However, another special import
quota was not established because, as specified in the Harmonized Tariff Schedule of the United States, L/7616
Page 7
quota periods for special import quotas triggered by spot prices cannot overlap.
(2) ELS cotton: Cotton loans mature ten months from the first day of the month in which the
loan is made. The Secretary of Agriculture may authorize that loans be extended an additional cight
months if requested by the producer, but this authority has never been used. 140,000 bales of ELS
cotton were placed under loan during the 1993/94 season, and as of September 1994: 13,400 bales
were redeemed; 78,700 were forfeited to CCC; and 49,400 bales were left outstanding.
Supply situation - 1993 crop
(1) Upland cotton: The carry over on 1 August 1993, totalled 4.5 million bales. Production in
1993 rose marginally to 15.8 million bales as compered to 15.7 million in the previous year. The
increase was due largely to the ARP requirement which was 7.5 per cent in 1993/94 compared to
10 per cent the previous season. The total supply in 1993/94 was 20.2 million or 900,000 less than
a year earlier. Disappearance (domestic consumption and exports) rose in 1993 to 16.9 million bales
from the previous year's level of 15.1 million bales. The 1 August 1994, carry over was 3.3 million
bales. The average United States yield for the 1993 crop of upland cotton was 601 Ib./harvested acre,
down about 13 per cent from the previous year's level of 693 lb.
(2) ELS cotton: The carry over on 1 August 1993 was 206,000 bales. Production in 1993
declined by about 25 per cent to 381,000 bales from 508,000 bales a year earlier. The decline resulted
from a higher ARP requirement - 20 per cent from 1993 compared with 5 per cent for 1992. The
total supply in 1993 reached 587,000 bales compared to 629,000 bales the previous year. Disappearance
(domestic consumption and exports) totalled 379,000 bales, 13,000 less than in 1992. Carry over on
1 August 1994, was 227,000 bales, 21,000 bales above a year earlier. The yield for 1993 increased
from last year's 938 lb. per harvested acre to 974 lb.
Steps taken to balance supply and demand
In addition to production adjustment programmes, additional Government programmes designed
to attain a better balance in the supply and demand position include continued emphasis on research
and market promotion programmes designed to increase cotton utilization throughout the world. These
programmes remain basically the same as previously reported.
For upland cotton, the 1949 Act (as amended by the 1990 Act) gives the Secretary the authority
to require of programme participants a base acreage reduction of up to 25 per cent and to implement
an additional paid land diversion, and provides for a minimum target price of 72.9C, per lb. Provisions
designed to make United States cotton available to world markets at competitive prices established
under amendments made to the 1949 Act by the 1985 Act were renewed with some changes, and several
new provisions were added. Significantly, the 1990 Act allows producers to shift programme crop
plantings and provides new options for growing oilseeds and industrial and experimental crops.
Peanuts
Quotas
The annual import quota of 775,189 kg. (1,709,000 lb.) (shelled basis) remained in effect for
the 1994-crop year.
Suppon programmes
The 1990 Act amendments modified the peanut price support programme for the 1991 through L/7616
Page 8
1995 crops and continued steps to bring peanut production for domestic edible use in balance with
market needs. The amendments maintained the two-tier price support programme and suspended the
peanut acreage allotments. This programme allows any farmer in the United States to grow and market
peanuts for export or crush whether or not the farm has a poundage quota. The Omnibus Budget
Reconciliation Act extended the peanut quotas through the 1997 crop.
Peanuts marketed under the poundage quota for domestic edible use are eligible to be supported
at the higher rate of the two-tier price support programme. The price support for 1994-crop quota
peanuts is $678.36 per short ton. Peanuts marketed for domestic edible use in excess of the farm
poundage quota shall be subject to a penalty of 140 per cent of the quota price support rate. By law,
the national average quota support for 1994 crop peanuts must be the 1993 crop support level adjusted
for any increase in national average production costs (excluding the cost of land), not to exceed
5 per cent. In the event of a cost reduction, the support remains at the level set for the preceding year.
As required by the Agricultural Adjustment Act of 1938, as amended (the 1938 Act), the national
poundage quota is set at a quantitative level equal to domestic edible, seed, and related uses, but not
less than 1.35 million tons. The 1994 poundage quota was set at 1.35 million tons, as compared to
1.496 million tons in 1993.
Additional or non-quota peanuts may be grown by anyone, both quota holders and non-quota
holders. Legislation requires these peanuts to be contracted for export, crushed, or both, or that they
be placed under loan. Contracts (price and quantity agreements between buyers and sellers) for growing
additional peanuts must be submitted to the CCC, if so designated, to the area associations before
15 September. Additional peanuts pledged as collateral for a price support loan may be sold for domestic
edible use, but the cost of the loan redemption may be no lower than the quota price support level
plus the cost incurred by CCC. The support price for additional peanuts is set to avoid any net cost
to the Government. The demand for peanut oil and meal, expected prices for other vegetable oils and
protein meals, and the demand for peanuts in foreign markets is also considered in establishing the
support price for additional peanuts. For 1994, the support level was set $132 per short ton.
Programme activity
During the 1993/94 crop year (August-July), 324 million lb. of farmers' stock peanuts were
place under loan of which approximately 62 million lb. were redeemed or bought back for domestic
edible use. CCC net realized gains on the peanut programme were about $3 million for FY 1993,
and $10 million loss for 1994.
Supply situation
Growers harvested 1,650,000 acres of peanuts in 1994, 3 per cent below 1993. Production
in 1994 is estimated at 4,717 million lb. as compared to 3,392 million lb. in 1993. Growers are expected
receive a season average price of 30.5c per lb. in 1994/95 compared to 29.6c per lb. 1993/94.
The total supply of peanuts in the United States for the 1994/95 marketing year is estimated
to be 5,181 million lb., compared with total supply of 4,747 million lb. in the previous marketing
year.
Steps taken to balance supply and demand
The Agriculture and Food Act of 1981 amendments to the 1938 Act and the 1949 Act which
were effective for the 1982 through the 1985 peanut crops provided methods for achieving a balance
between supply and demand which were maintained in amendments in the 1985 Act and the 1990 Act. L/7616
Page 9
This legislation took two principal approaches: (1) setting the national poundage quota at the greater
of 1.35 million lb. of the estimated level of domestic edible, seed and related uses; and (2) disposal
of quota peanuts acquired by the CCC under the price support programmes by sales for crushing into
oil and meal. The quantity of peanuts eligible for the higher domestic edible use price support are
limited by a national poundage quota. Additional peanuts are supported at a much lower price to avoid
any net cost to the Government. Additional peanuts placed under loan may be sold for edible use under
a procedure which permits immediate loan redemption at the domestic edible use support price. In
addition, peanut products have been purchased under related programmes and utilized in domestic
distribution programmes. Annual data on peanut production, consumption, exports, stock and acquisitions
under the price support programme are in the following table:
Peanut Production, Consumption. Exports. Stocks and Acquisitions
Marketing Years (August-July) 1985-1993
(Million lb.)
Domestic Acquisitions
Year beginning Production' Imports consumption and Stocks end of year under price
1 August Exports² support ³
1985 4,123 2 4,704 845 967
1986 3,697 2 3,541 1,003 119
1987 3,616 2 3,788 833 435
1988 3,981 2 3,973 830 560
1989 3,990 2 4,141 701 295
1990 3,603 27 3,647 683 433
1991 4,927 2 4,557 1,055 1,070
1992 4,284 2 3,991 1,350 436
1993 3,392 2 3,684 1,061 324
¹Data are net weight values.
²Includes civilian and military food use, cnrshed for oil, exports and shipments as peanuts, seed, feed, farm loss, and shrinkage.
³Included in domestic consumption and exports.
Dairy Products
Quotas
As in past years, the Trade Agreements Act of 1979 limits imports of dairy products (mainly
cheese) to 111,000 metric tons per annum. Quotas on dairy products were first imposed during the
early 1950s as a means to prevent material interference with the domestic price support programme
for milk. L/7616
Page 10
Import licences are issued to eligible applicants to allocate country quotas in a fair and equitable
manner and to ensure that the total quota for dairy products is not exceeded. The on-line computer
system, which became operational during mid-1979, provides rapid, error free responses to requests
made by licensed importers regarding quota entries. Additionally, an on-going programme is in place
to keep importers, importer associations, United States Customs Service officials, trade members, foreign
embassies and foreign producers advised and up-to-date on pending changes to the quota system.
For 1994, several country of origin adjustments were effected when it became evident that
quota items could not be supplied in sufficient quantity by the named country of origin to fill these
quotas. Adjustments or partial adjustments for 1994 included: Lowfat cheese from New Zealand,
and Australia; Blue mould cheese from Argentina; Italian-type cheese, not in original loaves, from
Argentina; Swiss-Emmenthal cheese from Finland, Iceland, Argentina, and Australia; Gruyere processed
cheese from Austria and Finland; Italian-type cheese, in original loaves, from Argentina; other cheese,
NSPF, from Argentina, Finland and Iceland; Edam and Gouda cheese from Sweden; processed Edam
and Gouda from Norway and other countries; and chocolate crumb from Australia.
Support programmes
The milk price support programme, which is operated pursuant to the 1949 Act requires that
the price of milk to producers be supported at such level, between 75 and 90 per cent of parity, as
will assure an adequate supply of milk, reflect changes in the cost of production, and assure a level
of farm income adequate to maintain productive capacity sufficient to meet anticipated future needs.
However, since 21 October 1981, the support price has been established by legislation at specific price
levels, rather than parity levels. The support price of$10. 10 per cwt. was continued on 1 October 1992.
The price of milk is supported by the Commodity Credit Corporation (CCC) through purchases
of butter, cheese, and non-fat dry milk at prices calculated to enable plant operators to pay dairy farmers,
on the average, a price equal to the support level. The effectiveness of the programme depends on
competition by manufacturers for available supplies of milk so that the average price received by farmers
will equal the announced support price. At times of significant price support purchases, the purchase
prices for these products tend to become the floor for the market prices of such products. Since most
of the fluid milk prices are based on prices paid for manufacturing milk, the price support programme
supports all milk and dairy product prices.
Programme activity
In carrying out the price support and related programmes in the 1993-94 marketing year (MY),
CCC removed from the market 2.6 per cent of milkfat and 2.3 per cent of solids-not-fat milk equivalent
marketed by farmers. Removals of milkfat included 61.3 million lb. butter, 2.0 million lb. of cheese,
and 231.2 million lb. of non-fat dry milk and 24.2 million lb. of dry whole milk exported under the
Dairy Export Incentive Programme (DEIP).
CCC's net purchases, milkfat basis, for MY 1993-94 were about 4.0 billion lb. milk equivalent,
compared to 8.1 billion lb. in MY 1992-93. CCC's net purchases under the price support programme
totalled 171.5 million lb. of butter, 2.0 million lb. cf cheese, and 307.4 million lb. of non-fat dry milk.
In addition to purchases under the price support programme, CCC purchased 39.1 million lb. of L/7616
Page 11
processed American cheese and 15.5 million lb. of Mozzarella cheese at market prices for domestic
distribution under various entitlement programmes. CCC also purchased 31.6 million lb. of evaporated
milk, 5.1 million lb. of concentrated liquid infant formula and 403 thousand lb. of powdered infant
formula under Section 4(a) authority for distribution to needy persons.
Supply situation
Milk production totalled 152.4 billion lb. in MY 1993-94, 0.6 per cent above a year earlier.
Cow numbers decreased 0.2 per cent and production per cow increased 2.9 per cent in MY 1993-94.
Steps taken to balance supply and demand
The 1990 Act amendments to the 1949 Act provide that dairy product purchase estimates will
be measured on a total milk solids basis, instead of a milkfat basis. Other provisions are explained
as follows: The Secretary of Agriculture is required to - (1) increase the support price at least 25c
per hundredweight (cwt.) if the Department's estimate of annual purchases does not exceed 3.5 billion lb.
milk equivalent, total milk solids basis; (2) make no increase in the support price if CCC's estimated
purchases exceeds 3.5 billion lb., but not 5 billion lb. milk equivalent, total milk solids basis, and
(3) decrease the support price by 25 to 50c per cwt. if CCC's estimate of annual purchases exceeds
5 billion lb. milk equivalent. The support price, however, may not be reduced below $10. 10 per cwt.
For the purpose of support price determination, the Secretary is instructed to deduct from the
estimated level of CCC purchases, an amount equal to any increase in the most recent calendar year's
dairy imports and average imports during 1986-90. CCC programme expenditures during calendar
years 1992-95 will be limited to the purchase of the equivalent of 7 billion lb. of milk, total solids
basis. Purchases above 7 billion lb. will be financed through a producer assessment on milk marketings.
The Secretary has the authority to adjust support purchase prices for butter and non-fat dry
milk in such a way that will result in the lowest cost to CCC, or will achieve other objectives considered
appropriate. However, CCC cannot purchase surplus butter for more than $0.65 per lb., nor non-fat
dry milk for less than $1.034 per lb. Adjustment in purchase prices are limited to not more than two
per calendar year.
The 1990 Act, as amended by the Omnibus Budget Reconciliation Acts of 1990 and 1993,
provides for a reduction in the price received by producers for all milk marketed for commercial use
during the period beginning 1 January 1991, and ending 31 December 1995. The law provides that
any producer who did not market more milk in a refund year than was marketed in the immediately
preceding year, is eligible for a refund of the entire amount assessed during the refund year. The
Secretary is further required to increase the assessment rate on all milk marketing during May-December
to recapture refunds made for the previous year. The following table details each year of the producer
assignment programme. L/7616
Page 12
Reduction Rates and Yearly Outcomes of Producer Assessments
Budget
Calendar Year Assessment Assessment Offset Calendar Year No. of Refunds
(Jan.-Dec.) (May-Dec.) Reduced Applications $ millions
$ per cwt. $ per cwt. Marketings
1991 .0500 4.6 47,805 23.164
1992 .1125 .0240 3.6 38,595 50.733
1993* .1125 .0510 5.5 54,403 80.325
1994* .1125 .0803
1995 .1125
1996 .1000
1997 .1000
*The Budget Reconciliation Act of 1993 provided for a 90-day moratorium on the sale of
Recombinant Bovine Somatotropic (RBST), beginning with the date of its approval for use on dairy
animals by the Food and Drug Administration (FDA). The Act further required assessment rates on
milk marketed during the 90-day period be reduced by 10 per cent. FDA approved the use of RBST
on 5 November 1993. Thus, the November and December 1993 assessment rate was reduced to $0.1471
and the January 1994 rate was $0.1012.
Outlook
As of 30 September 1993, the uncommitted inventories were: butter, 78 million lb.; no cheese;
and non-fat dry milk, 41 million lb. This compares with 262 million lb. of butter, no cheese, and
16 million lb. of non-fat dry milk as of 30 September 1993. The following table summarizes USDA
market removals from MY 1989 through 1993. L/7616
Page 13
Milk Production and Market Removals 1989-1993 Marketing Year
(1 October-30 September)
USDA Market
Removals (Million lb.)
Milk
Year Milk Butter Cheese NFDM Evaporated Equivalent of
Production Milk Removals
1989/90 146.9 384.0² 18.7³ 28.14 31.8 8,377¹
1990/91 148.6 433.05 96.75 342.65 30.3 10,450¹
1991/92 150.9 460.36 10.06 118.36 31.9 10,343¹
1992/93 152.0 345.97 15.57 355.27 27.7 8,069¹
1993/94 152.4 171.58 2.08 307.48 25.9 6,654¹
'Reflects approved methodology for calculating milk equivalent on fat solids basis in accordance with amendments to the 1949
Act made by the 1990 Act. Milk equivalent, fat solids basis, is deried by adding the following: lb. of butter times conversion factor of
21.8; lb. of cheese times conversion factor of 9.23: and lb. of non-fat dry milk times conversion factor .22. Evaporated milk is no longer
considered in the milk equivalent.
²lncludes approximately 14 million lb. of butter equivalent exported under the Dairy Export Incentive Programme.
³Mozzarella cheese purchased on a competitive bid basis - not included in total milk equivalent.
of 1965.
4Includes 10 million lb. of instant, fortified NFDM purchased under the authority of Sec. 709 of the Food and Agriculture Act
5Includes approximately 2 million lb. of cheese and 21 million lb. of non-fat dry milk exported under DEIP.
6Includes approximately 57 million lb. of butter 10 million lb. of cheese 109 million lb. of non-fat dry milk and 26 million lb.
of whole milk exported under DEIP.
7Includes approximately 53 million lb. of butter 11 million lb. of cheese, 338 million lb. of non-fat dry milk and 42 million lb.
of dry whole milk exported under DEIP.
8Includes approximately 61 million lb. of butter, 2 million lb. of cheese, 231 million lb. of non-fat dry milk, and 24 million lb.
of dry whole milk exported under DEIP.
Sugar and Sugar-Containing Articles
Measures taken under Section 22
The 1c per lb. (2.2c per kilogram) fee on refined sugar and the quotas for sugar-containing
articles remain in effect. These measures are necessary to prevent material interference with the price
support programme for sugar administered by the United States Department of Agriculture.
Other import controls
Presidential Proclamation 6179 of 13 September 1990 (effective 1 October 1990) established
a tariff-rate quota (TRQ) system pursuant to Addition United States Note 3, Chapter 17 of the
Harmonized Tariff Schedule of the United States (HTS). The TRQ is operated under the HTS domestic
authority which is independent of Section 22. Sugar imports entered within the in-quota TRQ quantity
are subject to the MFN first tier (lower tariff) duty rate of .625 c/lb., raw value. Under the special
tariff rate provisions of the HTS, imports from designated beneficiary countries under the Caribbean L/7616
Page 14
Basin Initiative (CBI), Andean Trade Preference Act and Generalized System of Preferences (GSP)
are imported duty-free for quantities that enter within the in-quota TRQ. The following announcements
were made since the previous report.
- On 27 August 1992 the TRQ for the October 1992 through 30 September 1993 period
was announced at 1.357 million short tons.
- USDA announced on 11 May 1993 that the TRQ period would be extended from
30 September 1993 to 30 September 1994 and the quota level would be raised from
1.257 million short tons to 2.5 million short tons.
- The TRQ was further modified on 8 August 1994 when the Secretary of Agriculture
announced that the quota period would be changed from 1 October 1992 though
30 October 1994 to 1 October 1992 through 31 July 1994. Any TRQ amounts
previously allocated to any country for the 1 October 1992 through 30 September 1994
quota period that were not entered by 31 July 1994 could subsequently be charged
to the 1 October 1992 through 31 July 1993 quota period.
- The 8 August 1994 announcement also included a new quota level of 1.458 million
short tons for the period 1 August 1994 through 30 September 1995.
- The sum of the above TRQ actions resulted in an overall quota level for sugar of 3.958
million short tons, that could be entered during the period 1 October 1992 through
30 September 1995.
Imports of sugar entered above the in-quota TRQ quantity are subject to the second tier
(higher tariff) duty rate of 16 c/lb., raw value including imports from CBI, GSP and Andean countries.
Additional sugar is allowed to enter subject to the first tier duty rate (duty free for CBI, GSP and the
Andeans) provided that such sugar is re-exported in either refined or further processed form under
USDA's re-export programmes.
Support programmes
The 1990 Act amended the 1949 Act to establish a support programme for domestically grown
sugar cane and sugar beets for the 1991 through 1995 crops. Support is provided through a programme
of non-recourse loans at such levels as the Secretary of Agriculture determines appropriate, but not
less than 18c per lb. for raw cane sugar. Beet sugar shall be supported through non-recourse loans
at such levels as the Secretary determines is fair and reasonable in relation to the loan level for raw
sugar cane. The United States raw cane sugar and refined beet weighted average sugar loan levels
for the 1993/94 crop was established at 18.0 and 23.62c per lb., respectively.
Loans were made for a period of six months for the 1990 crop, but increased to nine months
for the 1991 through 1995 crops as a result of amendments in the 1990 Act. In all cases, loans have
a maturity date of no later than 30 September of the fiscal year in which they are made. The interest
rate on these loans will be the rate applicable to CCC loans. To be eligible to participate in the loan
programme, processors are required to pay at least the minimum specified price support levels determined
by CCC to any grower who delivers eligible sugar beets or sugar cane to the processor.
Steps taken to balance supply and demand
The United States is a net importer of sugar, with imports regulated as described above.
Domestic consumption of sugar in the United States has increased steadily during the past few years L/7616
Page 15
from 7.7 million short tons in 1985/86 to a forecast 9.275 million short tons in 1994/95. The 1990 Act
does not provide for regulation of the marketing of domestically produced raw cane and refined beet
sugar if imports of raw cane sugar are estimated by USDA to be above 1.25 million short tons in any
one marketing year in the 1991/95 period.
Marketing allotments were imposed on 1 July 1993 for fiscal year 1993 and applied to all sugar
and crystalline fructose marketed in the United States from 1 October 1992 through 30 September 1993.
The overall allotment quantity was 7,770 thousand short tons. The beet sugar allotment was 4,149.2
thousand short tons allotment was 3,620.9 thousand short tons. The overall marketing allotment for
crystalline fructose manufactured from corn was 159,757 short tons. Marketing allotments were again
applied beginning 1 October 1994 for the fiscal year 1995. The overall allotment quantity was 7,889
thousand short tons. The beet sugar allotment was for 4,355.3 thousand short tons and the cane sugar
allotment was for 3,533.7 thousand short tons. The overall marketing allotment for crystalline fructose
manufactured from corn was 159,757 short tons. The implementation of marketing allotments means
that any sugar beet processor or sugar cane processor who markets sugar or pledges sugar as collateral
for a price support loan in excess of the processor's allocation shall be liable to the CCC for a civil
penalty in an amount equal to three times the United States market value of that quantity exceeding
allocation. |
GATT Library | hz818dn3438 | United States - Countervailing duties on certain carbon steel flat Products from several member states of the EEC : Suspension of Panel Proceedings | General Agreement on Tariffs and Trade, January 19, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Subsidies and Countervailing Measures | 19/01/1995 | official documents | SCM/189 and 0053-0065 | https://exhibits.stanford.edu/gatt/catalog/hz818dn3438 | hz818dn3438_90080465.xml | GATT_1 | 192 | 1,241 | GENERAL AGREEET
ON TARIFFS AND TRADE
RESTRICTED
SCM/189
19 January 1995
Special Distribution
(95-0059)
Commmittee on Subsidies and Countervailing Measures
Original: English
UNITED STATES - COUNTERVAILING DUTIES ON
CERTAIN CARBON STEEL FLAT PRODUCTS FROM
SEVERAL MEMBER STATES OF THE EEC
Suspension of Panel Proceedings
The following communication, dated 6 January 1995, has been received from the Chairman
of the Panel on Certain Carbon Steel Flat Products.
The Panel on "United States - Countervailing Duties on Certain Carbon Steel Flat Products
from Several Member States of the EEC" was established by the Commitee on 28 April 1994I.Its
composition was announced on 17 August 1994. At the request of the complaining party, the EC,
the Panel had provided an extended period of time to address the issues. The first written submission
by the EC was due on 19 December 1994. On that date, the EC requested the Panel for "the suspension
of this (i.e., the panel) proceeding following events which have occurred since the request for this
Panel was made".
In view of this request by the complaining party in this dispute, the Panel is suspending its
proceedings pending further notification from the parties. |
GATT Library | wk414tn3309 | United States: Replies to the questions from the European Communities on the US statistical report for 1990 : Communication from the United States | General Agreement on Tariffs and Trade, January 17, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Government Procurement | 17/01/1995 | official documents | GPR/W/141 and 0040-0053 | https://exhibits.stanford.edu/gatt/catalog/wk414tn3309 | wk414tn3309_90080455.xml | GATT_1 | 457 | 3,138 | RESTRICTED
GENERAL AGREEMENT GPR/W/141
17 January 1995
ON TARIFFS AND TRADE Special Distribution
(95-0047)
Committee on Government Procurement Original: English
UNITED STATES: REPLIES TO THE QUESTIONS FROM THE EUROPEAN
COMMUNITIES ON THE US STATISTICAL REPORT FOR 1990
Communication from the United States
The following communication, dated 11 January 1995 and containing replies to the questions
raised by the European Communities in document GPR/W/118 on the US 1990 statistical report, has
been received from the delegation of the United States with the request that it be circulated to the
members of the Committee on Government Procurement.
1. It has been very difficult to obtain comprehensive answers to the questions posed by the EC
in document GPR/W/I 18. The simplest answer, as confirmed by independent inquiries to each of
the US entities identified in the questions, is that US procurement budgets have been on the decline
in recent years, particularly that of the Department of Defense. The trend is likely to continue in future
years as a result of US Federal efforts to contain the US Federal budget deficit. Nevertheless, the
US Government anticipates that the value of US covered procurement will remain substantial. The
United States continues to report a higher alue of covered procurement than the EC, despite the fact
that the Member States of the EC account for a higher GDP.
2. The Department of Defense has been hit the hardest in terms of declining procurement budgets.
in large part because of the declining national security threat. As to the specific figures cited for 1990,
much of the drop occurred in procurement of petroleum products, the value of which is subject to
substantial price fluctuations. The fall in miscellaneous items appears in part to involve reallocation
of certain product categories into more specific GPA reporting categories. As to the decline in 1990
of procurement of agricultural products, this is most likely attributable to the fact that the Department
of Defense will enter into multi-year contracts for the supply of food products for the various armed
forces.
3. The General Services Administration reports that in addition to declining procurement budgets,
there have been reduced requirements for specialized medical equipment due to government hospitals
beginning to share equipment. instead of individually procuring expensive equipment. This change
in practices accords with efforts to introduce greater efficiency in US Federal activities.
4. The drop in procurements of the Department of Health and Human Services is fully attributable
to declining procurement budgets.
5. This statistic was reported in error. The Smithsonian covered procurements should have been
reported as three contracts for a total value of $622,000. Below threshold procurement was $1, 193,000.
6. The decline in reported statistics for the Departments of Interior and State is attributable to
declining procurement budgets. |
GATT Library | yq105pj2590 | United States - Standards for reformulated and conventional Gasoline : Recourse to Article XXIII:2 by Venezuela. Communication by Venezuela | General Agreement on Tariffs and Trade, January 19, 1995 | General Agreement on Tariffs and Trade (Organization) | 19/01/1995 | official documents | DS47/5 and 0053-0065 | https://exhibits.stanford.edu/gatt/catalog/yq105pj2590 | yq105pj2590_90080470.xml | GATT_1 | 149 | 1,022 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
DS47/5
19 January 1995
Limited Distribution
(95-0064)
Original: Spanish
UNITED STATES - STANDARDS FOR REFORMULATED
AND CONVENTIONAL GASOLINE
Recourse to Article XXIII:2 by Venezuela
Communication by Venezuela
The following Communication, dated 9 January 1995, has been received from the Permanent
Mission of Venezuela, with the request that it be circulated to the contracting parties to GATT.
Further to Communication No. E2.7/1748 from this Permanent Mission, dated
20 December 1994, I should like to inform you that the Government of Venezuela has decided to
suspend definitively the dispute settlement procedure initiated by Venezuela under Article XXIII of
GATT 1947, concerning the United States Law on "Regulation of Fuels and Fuel Additives - Standards
for Reformulated and Conventional Gasoline". I should also like to state that, in this connection,
Venezuela reserves all the rights to which it is entitled under the World Trade Organization. |
GATT Library | yq447fk7155 | United States - Standards for Reformulated and Conventional Gasoline : Recourse to Article XXIII:2 by Venezuela. Communication from Venezuela | General Agreement on Tariffs and Trade, January 31, 1995 | General Agreement on Tariffs and Trade (Organization) | 31/01/1995 | official documents | DS47/6 and 0172-0197 | https://exhibits.stanford.edu/gatt/catalog/yq447fk7155 | yq447fk7155_90080637.xml | GATT_1 | 478 | 3,474 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
DS47/6
31 January 1995
Limited Distribution
(95-0180)
Original: English
UNITED STATES - STANDARDS FOR REFORMULATED
AND CONVENTIONAL GASOLINE
Recourse to Article XXIII:2 by Venezuela
Communication from Venezuela
The following communication, dated 25 January 1995, has been received from
Mission of Venezuela, with the request that it be circulated to the contracting parties
the Permanent
to GATT.
The Permanent Mission of Venezuela to the United Nations Office and other International
Organizations in Geneva presents its compliments to the Secretariat of the World Trade Organization
and has the honour to reiterate that in their communication dated 9 January 1995 and circulated as
DS47/5. the Government of Venezuela withdrew its claim under the GATT 1947 with respect to the
Environmental Protection Agency's "Regulation of Fuel and Fuels additives - Standards for reformulated
and Conventional Gasoline". PRESS/2
31 January 1995
ELECTION OF WTO CHAIRPERSONS
At the first meeting of the WTO General Council held on 31 January, the following were
elected Chairpersons of their respective WTO Councils or Committees:
General Council:
Dispute Settlement Body:
Trade Policy Review Body:
Vice Chairman:
Council for Trade in Goods:
Council for Trade in Services:
Council for Trade-Related Aspects
of Intellectual Property Rights:
Committee on Trade and Development:
Committee on Trade and Environment:
Committee on Balance-of-Payments Restrictions:
Committee on Budget, Finance and
Administration:
Textiles Monitoring Body:
Ambassador K. Kesavapany (Singapore)
Ambassador Donald Kenyon (Australia)
Pending
Mr. Abdelkader Lecheheb (Morocco)
Ambassador Minoru Endo (Japan)
Ambassador Christer Manhusen (Sweden)
Mr. Stuart Harbinson (Hong Kong)
Ambassador Haron Siraj (Malaysia)
Ambassador Juan Carlos Sanchez Arnau
(Argentina)
Mr. Peter Witt (Germany)
Mr. Jean-Marie Metzger (France)
Ambassador András Szepesi (Hungary)
END
95-0181 PRESS/3
31 January 1995
MEMBERS OF THE WTO GENERAL COUNCIL
The first meeting of the World Trade Organization's General
1995. The 76 members of the General Council are as follows:
Council was held today, 31 January
Antigua and Barbuda
Argentina
Australia
Austria
Bahrain
Bangladesh
Barbados
Belgium
Belize
Brazil
Brunei Darussalam
Canada
Chile
Costa Rica
Côte d'Ivoire
Czech Republic
Denmark
Dominica
EC
Finland
France
Gabon
Germany
Ghana
Greece
Guyana
Honduras
Hong Kong
Hungary
Iceland
India
Indonesia
Ireland
Italy
Japan
Kenya
Korea
Kuwait
Luxembourg
Macau
Malaysia
Malta
Mauritius
Mexico
Morocco
Myanmar
Namibia
Netherlands
New Zealand
Nigeria
Norway
Pakistan
Paraguay
Peru
Philippines
Portugal
Romania
Saint Lucia
Saint Vincent & Gren.
Senegal
Singapore
Slovak Republic
South Africa
Spain
Sri Lanka
Suriname
Swaziland
Sweden
Tanzania
Thailand
Uganda
United Kingdom
United States
Uruguay
Venezuela
Zambia
More than 50 countries are in a position to join the WTO in the near future. Most of
these countries are due to become members as soon as they have completed the
verification of their market access and services commitments and/or upon the completion
of their domestic ratification procedures for accepting the WTO. A number of other
countries have already requested accession to the WTO under Article XII of the WTO
Agreement.
END
NOTE:
95-0182 |
GATT Library | vv104dd2440 | United States - Standards for reformulated and conventional gasoline : Request for consultations under Article XXII:1 of GATT 1994 by Venezuela | World Trade Organization, February 2, 1995 | World Trade Organization | 02/02/1995 | official documents | WT/DS2/1 and 0197-0200 | https://exhibits.stanford.edu/gatt/catalog/vv104dd2440 | vv104dd2440_90080653.xml | GATT_1 | 351 | 2,441 | RESTRICTED
WORLD TRADE WT/DS2/1
2 February 1995
ORGANIZATION
(95-0199)
Original: Spanish
UNITED STATES - STANDARDS FOR REFORMULATED
AND CONVENTIONAL GASOLINE
Request for Consultations under Article XXII: l of GATT 1994
by Venezuela
The following communication, dated 24 January 1995, sent by the Permanent Mission of
Venezuela to the Director-General of the WTO is circulated in accordance with Article 4 of the
Understanding on Rules and Procedures Governing the Settlement of Disputes.
The Government of Venezuela hereby requests the Government of the United States to hold
consultations concerning the "Regulation of Fuels and Fuel Additives - Standards for Reformulated
and Conventional Gasoline" (Gasoline Regulation) adopted by the Environmental Protection Agency
on 15 December 1993. This request is made pursuant to Article XXII: 1 of the General Agreement
on Tariffs and Trade (GATT) and Articles 14.1 of the Agreement on Technical Barriers to Trade and
4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (Understanding),
incorporated as annexes in the Agreement Establishing the World Trade Organization (WTO).
In this connection, I wish to inform you that on 11 January 1995 the Government of Venezuela
informed the GATT Secretariat that it had decided to suspend definitively¦ the proceedings of the panel
examining the matter of the Gasoline Regulation, initiated in 1994 under Article XXIII of GATT 1947.
As you are aware, the Government of Venezuela considers that the Gasoline Regulation violates
the United States' obligation to grant national treatment to Venezuelan gasoline imported by the United
States. Apart from violating this principle and other fundamental obligations of the GATT, the regulation
in question is inconsistent with the United States' obligations under the Agreement on Technical Barriers
to Trade.
Venezuela wishes to conduct consultations concerning these violations as rapidly as possible,
in view of the fact that the Regulation in question is currently in force and adversely affecting Venezuela's
exports to the United States.
Lastly, in accordance with Article 4.4 of the Understanding, the Governrnent of Venezuela
is notifying this request for consultations to the WTO General Council and Dispute Settlement Body.
¦Secretariat note: see documents circulated as DS47/5 and DS47/6. |
GATT Library | cb587gg5221 | Waivers granted under Article XXV of GATT 1947 (As at 1 January 1995) | World Trade Organization, January 27, 1995 | World Trade Organization and World Trade Organization General Council | 27/01/1995 | official documents | WT/L/3 and 0075-0120 | https://exhibits.stanford.edu/gatt/catalog/cb587gg5221 | cb587gg5221_90080575.xml | GATT_1 | 961 | 6,794 | WORLD TRADE
RESTRICTED
WT/L/3
27 January 1995
ORGANIZATION
(95-0105)
GENERAL COUNCIL
31 January 1995
WAIVERS GRANTED UNDER ARTICLE XXV OF GATT 1947
(As at 1 January 1995)
As stated in the footnote to Annex IA, Section on GATT 1994, sub-paragraph 1(b)(iii) of the
Agreement establishing the World Trade Organization, the Ministerial Conference is required to establish
at its first session a revised list of waivers granted under Article XXV of GATT 1947 and still in force
on the date of entry into force of the WTO Agreement. Listed below are these waivers.¹
Country
Waiver
Expiry
Reference
Argentina
Australia
Australia
Australia
Bangladesh
Bolivia
Canada
Cuba
El Salvador
Member states of
the European Coal
and Steel Community
European
Communities
European
Communities
France
Guatemala
Israel
Jamaica
Jamaica
Malawi
Malawi
Morocco
Nicaragua
Pakistan
Senegal
Establishment of a new Schedule LXIV
Base dates under Article 1:4
Treatment of products of Papua New Guinea
Tariff preferences for less developed countries
Establishment of a new Schedule LXX
Establishment of a new Schedule LXXXIV
CARIBCAN
Provisions of Article XV:6
Establishment of a new Schedule LXXXVII
Waiver granted in connection with the ECSC
Fourth ACP-EEC Convention of Lomé
Transitional measures to take account of the
external economic impact of German
unification
Trading arrangements with Morocco
Establishment of a new Schcdule LXXXVIII
Establishment of a new Schedule XLII
Margins of preference
Establishment of a new Schedule LXVI
Base dates under Article 1:4
Renegotiation of Schedule LVIII
Establishment of a new Schedule LXXXI
Establishment of a new Schedule XXIX
Establishment of a new Schedule XV
Renegotiation of Schedule XLIX
30.6.1995
No time limit
No time limit
No time limit
30.6.1995
30.6.1995
15.6.1998
No time limit
30.6.1995
No time limit
L/7592
BISD 9S/46
BISD 8S/28
BISD 14S/23
L/7593
L/7594
BISD 33S/97
BISD 13S/23
L/7595
BISD IS/17
29.2.2000 L/7604
31.12.1995 L/7605
No time limit
30.6.1995
30.6.1995
No time limit
30.6.1995
No time limit
30.6.1995
30.6.1995
30.6.1995
30.6.1995
30.6.1995
BISD 9S/39
L/7596
L/7597
BISD 18S/33
L/7598
BISD 9S/46
L/7589
L/7599
L/7600
L/7601
L/7590
of the list contained in MTN/FA Il
¹This is an update WT/L/3
Page 2
Country
Waiver
South Africa
Sri Lanka
Trinidad & Tobago
Tunisia
United Kingdom
United Kingdom
United States
United States
United States
United States
Zaire
Zambia
Zimbabwe
Zimbabwe
Expiry
Base dates under Article 1:4
Establishment of a new Schedule VI
Establishment of a new Schedule LXVII
Temporary suspension of bound duties
Items traditionally admitted free of duty
from countries of the Commonwealth
Special problems of dependent overseas
territories
Waiver in respect of products of the Trust
Territory of Pacific Islands
Imports of automotive products
Caribbean Economic Recovery Act
Andean Trade Preference Act
Renegotiation of Schedule LXVIII
Renegotiation of Schedule LXXVIII
Customs treatment for products of United
Kingdom territories
Base dates under Article 1:4
No time limit
30.6.1995
30.6.1995
31.12.1996
No time limit
No time limit
No time limit
No time limit
30.9.1995
4.12.2001
30.6.1995
30.11.1995
No time limit
No time limit
Reference
BISD 9S/46
L/7602
L/7603
L/7380
BISD 3S/25
BISD 3S/21
BISD Vol.II, p.9
BISD 14S/37
BISD 31S/20
L/6961
L/7591
L/7329
BISD 9S/47
BISD 9S/46
The Annex to this document indicates:
(1) Waivers which have been added to the list contained in MTN/FA 11, pages 11 and 12, footnote 7.
(2) Waivers which were included in the list contained in MTN/FA 11, pages 11 and 12, footnote 7
and have been extended.
(3) Waivers contained in MTN/FA 11. pages 1 1 and 12, footnote 7, which expired and are not included
in the document WT/L/3. WT/L/3
Page 3
ANNEX
(1) Waivers which have been added to the list contained in MTN/FA 11, pages 11 and 12, footnote 7
Country
Waiver
Expiry
Reference
El Salvador
European
Communities
European
Communities*
Guatemala
Nicaragua
Tunisia
Establishment of a new Schedule LXXXVII
Fourth ACP-EEC Convention of Lomé
Transitional measures to take account of the
external economic impact of German
unification
Establishment of a new Schedule LXXXVIII
Establishment of a new Schedule XXIX
Temporary suspension of bound duties
30.6. 1995 L/7595
29.2.2000 L/7604
31.12.1995
30.6.1995
30.6.1995
31.12.1996
L/7605
L/7596
L/7600
L/7380
*Note: The waiver on "transitional measures to take account of the external economic impact of German
unification", requested by the European Communities, expired in December 1993, as indicated
in the list contained in MTN/FA II, pages 11 and 12, footnote 7. The new waiver on the same
subject does not represent an extension of the previous one since the scope of that waiver has
changed. It has. therefore, been listed as a new waiver.
(2)
Waivers which were included in the list contained in MTN/FA II. pages 11 and 12, footnote 7
and have been extended
Country
Waiver
Expiry
Reference
Argentina
Bangladesh
Bolivia
Israel
Jamaica
Malawi
Morocco
Pakistan
Senegal
Sri Lanka
Trinidad & Tobago
Zaire
Establishment
Establishment
Establishment
Establishment
Establishment
Renegotiation
Establishment
Establishment
Renegotiation
Establishment
Establishment
of a new Schedule LXIV
of a new Schedule LXX
of a new Schedule LXXXIV
of a new Schedule XLII
of a new Schedule LXVI
of Schedule LVIII
of a new Schedule LXXXI
of a new Schedule XV
of Schedule XLIX
of a new Schedule VI
of a new Schedule LXVII
Renegotiation of Schedule LXVIII
30.6.1995
30.6.1995
30.6.1995
30.6.1995
30.6.1995
30.6.1995
30.6.1995
30.6.1995
30.6.1995
30.6.1995
30.6.1995
30.6.1995
L/7592
L/7593
L/7594
L/7597
L/7598
L/7589
L/7599
L/7601
L/7590
L/7602
L/7603
L/7591 WT/L/3
Page 4
ANNEX (continued)
(3) Waivers contained in MTN/FA II, pages 11 and 12, footnote 7. which expired and are not included
in the document WT/L/3
Country Waiver Expiry Reference
Brazil Establishment of a new Schedule III 31.12.93 L/7273
Chile Establishment of a new Schedule VII 31.12.93 L/7274
Egypt Renegotiation of Schedule LXIII 31.12.93 L/7281
Mexico Establishment of a new Schedule LXXVII 31.12.93 L/7276
Peru Establishment of a new Schedule XXXV 31.12.93 L/7245
Uruguay Renegotiation of Schedule XXXI 31.12.93 L/7280
Venezuela Establishment of a new Schedule LXXXVI 30.06.94 L/7316 |
GATT Library | fq799ch3110 | Withdrawal of the United States from the Agreement on implementation of Article VI of the General Agreement on Tariffs and Trade : Communication from the United States | General Agreement on Tariffs and Trade, January 19, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Anti-Dumping Practices | 19/01/1995 | official documents | ADP/133 and 0053-0065 | https://exhibits.stanford.edu/gatt/catalog/fq799ch3110 | fq799ch3110_90080466.xml | GATT_1 | 115 | 774 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
ADP/133
19 January 1995
Special Distribution
(95-0060)
Committee on Anti-Dumping Practices
Original: English
WITHDRAWAL OF THE UNITED STATES FROM THE
AGREEMENT ON IMPLEMENTATION OF ARTICLE VI
0F THE GENERAL AGREEMENT ON TARIFFS AND TRADE
Communication from the United States
The Director-General received on 30 December 1994 a communication from the Office of the
United States Trade Representative notifying the decision of the Government of the United States to
withdraw from the Agreement on Implementation of Article VI of the General Agreement on Tariffs
and Trade. Pursuant to Article 16, paragraph 9 of the Agreement, the withdrawal shall take effect
upon the expiration of sixty days from that date. |
GATT Library | ch698wn2250 | Withdrawal of the United States from the Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade : Communication from the United States | General Agreement on Tariffs and Trade, January 31, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Customs Valuation | 31/01/1995 | official documents | VAL/55 and 0143-0171 | https://exhibits.stanford.edu/gatt/catalog/ch698wn2250 | ch698wn2250_90080633.xml | GATT_1 | 351 | 2,350 | GENERAL AGREEMENT ON TARIFFS AND TRADE
ACCORD GENERAL SUR LES TARIFS DOUANIERS ET LE COMMERCE VAL/55
31 January 1995 RESTRICTED
ACUERDO GENERAL SOBRE ARANCELES ADUANEROS Y COMERCIO Special Distribution
(95-0170)
Committee on Customs Valuation Original: English/anglais/inglés
WITHDRAWAL OF THE UNITED STATES FROM THE AGREEMENT
ON IMPLEMENTATION OF ARTICLE VII OF THE GENERAL
AGREEMENT ON TARIFFS AND TRADE
Communication from the United States
The Director-General received on 30 December 1994 a communication from the Office of the
United States Trade Representative notifying the decision of the Government of the United States to
withdraw from the Agreement on Implementation of Article VII of the General Agreement on Tariffs
and Trade. Pursuant to Article 28 of the Agreement. the withdrawal shall take effect upon the expiration
of 60 days from that date.
Comité de l'évaluation en douane
DENONCIATION, PAR LES ETATS-UNIS, DE L'ACCORD RELATIF A
LA MISE EN OEUVRE DE L'ARTICLE VII DE L'ACCORD GENERAL
SUR LES TARIFS DOUANIERS ET LE COMMERCE
Communication des Etats-Unis
Le Directeur général a reçu le 30 décembre 1994 une communication par laquelle le Bureau
du Représentant des Etats-Unis pour les questions commerciales internationales lui notifiait la décision
du gouvernement des Etats-Unis de dénoncer l'Accord relatif à la mise en oeuvre de l'article VII de
l'Accord général sur les tarifs douaniers et le commerce. Conformément à l'article 28 de l'accord,
la dénonciation prendra effet à l'expiration d'un délai de 60 jours à compter de cette date.
Comité de Valoracion en Aduana
DENUNCIA POR LOS ESTADOS UNIDOS DEL ACUERDO RELATIVO A
LA APLICACION DEL ART-CULO VII DEL ACUERDO GENERAL
SOBRE ARANCELES ADUANEROS Y COMERCIO
Comunicacion de los Estados Unidos
El Director General recibio el 30 de diciembre de 1994 una comunicacion de la Oficina del
Representante de los Estados Unidos para las Cuestiones Comerciales notificando la decision del Gobierno
de los Estados Unidos de denunciar el Acuerdo relativo a la Aplicacion del Articulo VII del Acuerdo
General sobre Aranceles Aduaneros y Comercio. Con arreglo a lo dispuesto en el articulo 28 del
Acuerdo, la denuncia surtirá efecto a la expiracion de un plazo de sesenta dias contados desde dicha
fecha. |
GATT Library | sw578kz9095 | Withdrawal of the United States from the Agreement on import licensing procedures done on 12 April 1979 : Communication from the United States | General Agreement on Tariffs and Trade, January 26, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Import Licensing | 26/01/1995 | official documents | LIC/24 and 0128-0143 | https://exhibits.stanford.edu/gatt/catalog/sw578kz9095 | sw578kz9095_90080600.xml | GATT_1 | 100 | 671 | GENERAL AGREEMENT
ON TARlFFS AND TRADE
RESTRICTED
LIC/24
26 January 1995
Special Distribution
(95-0137)
Committee on Import Licensing
WITHDRAWAL OF THE UNITED STATES FROM THE AGREEMENT
ON IMPORT LICENSING PROCEDURES DONE ON
12 APRIL 1979
Communication from the United States
The Director-General received on 30 December 1994 a communication from the Office of the
United States Trade Representative notifying the decision of the Government of the United States to
withdraw from the Agreement on Import Licensing Procedures. Pursuant to Article 5, paragraph 7
of the Agreement, the withdrawal shall take effect upon the expiration of 60 days from that date. |
GATT Library | bj809tf7672 | Withdrawal of the United States from the Agreement on interpretation and application of Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade : Communication from the United States | General Agreement on Tariffs and Trade, January 19, 1995 | General Agreement on Tariffs and Trade (Organization) and Committee on Subsidies and Countervailing Measures | 19/01/1995 | official documents | SCM/188 and 0053-0065 | https://exhibits.stanford.edu/gatt/catalog/bj809tf7672 | bj809tf7672_90080464.xml | GATT_1 | 127 | 853 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
SCM/188
19 January 1995
Special Distribution
(95-0058)
Committee on Subsidies and Countervailing Measures
Original: English
WITHDRAWAL OF THE UNITED STATES FROM THE AGREEMENT ON
INTERPRETATION AND APPLICATION OF ARTICLES VI, XVI AND XXIII
OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE
Communication from the United States
The Director-General received on 30 December 1994 a communication from the Office of the
United States Trade Representative notifying the decision of the Government of the United States to
withdraw from the Agreement on Interpretation and Application of Articles VI, XVI and XXIII of
the General Agreement on Tariffs and Trade. Pursuant to Article 19, paragraph 8 of the Agreement,
the withdrawal shall take effect upon the expiration of sixty days from that date. |
GATT Library | vj300fv6687 | Working Party on Accession of Panama | World Trade Organization, February 10, 1995 | World Trade Organization | 10/02/1995 | official documents | WT/L/37 and 0240-0283 | https://exhibits.stanford.edu/gatt/catalog/vj300fv6687 | vj300fv6687_90080734.xml | GATT_1 | 104 | 781 | RESTRICTED
WORLD TRADE
WT/L/37
10 February 1995
ORGANIZATION
(95-0271)
WORKING PARTY ON ACCESSION OF PANAMA
Chairman: H.E. Mr. E. Tironi Barrios (Chile)
Membership:
Argentina
Australia
Austria
Bolivia
Brazil
Canada
Chile
Colombia
Costa Rica
Czech Republic
Egypt
El Salvador
European Communities
and Member States
Finland
Guatemala
Honduras
India
Jamaica
Japan
Korea
Mexico
New Zealand
Nicaragua
Norway
Pakistan
Paraguay
Peru
Philippines
Sweden
Switzerland
Thailand
United States
Uruguay
Venezuela
Terms of Reference:
To examine the application of the Government of Panama to accede to the World Trade
Organization under Article XII, and to submit to the General Council recommendations which may
include a draft Protocol of Accession. |
GATT Library | np022gw7435 | Working Party on the Accession of Estonia | General Agreement on Tariffs and Trade, January 6, 1995 | General Agreement on Tariffs and Trade (Organization) | 06/01/1995 | official documents | L/7437/Rev.3 and 0002-0009 | https://exhibits.stanford.edu/gatt/catalog/np022gw7435 | np022gw7435_90080425.xml | GATT_1 | 86 | 631 | GENERAL AGREEMENT
ON TARIFFS AND TRADE
RESTRICTED
L/7437/Rev.3
6 January 1995
Limited Distribution
(95-0007)
WORKING PARTY ON THE ACCESSION OF ESTONIA
Chairman: H.E. Mr. D. Kenyon (Australia)
Membership:
Argentina
Australia
Austria
Canada
European Communities
and Member States
Finland
Hungary
Japan
New Zealand
Norway
Pakistan
Poland
Sweden
Switzerland
Turkey
United States
Terms of reference:
To examine the application of the Government of Estonia to accede to the General Agreement
under Article XXXIII, and to submit to the Council recommendations which may include a draft Protocol
of Accession. |
GATT Library | pm816dn5858 | Working Party on the Accession of Ukraine | World Trade Organization, February 17, 1995 | World Trade Organization | 17/02/1995 | official documents | WT/L/48 and 0342-0367 | https://exhibits.stanford.edu/gatt/catalog/pm816dn5858 | pm816dn5858_90080782.xml | GATT_1 | 215 | 1,455 | WORLD TRADE ORGANIZATION
ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIO
RESTRICTED WT/L/48
17 February 1995
(95-0348)
WORKING PARTY ON THE ACCESSION OF UKRAINE
Chairman: Mr. A. L. Stoler (United States)
Membership
The membership is open to all Members indicating their wish to serve on the Working Party.
Terms of Reference
To examine the application of the Government of Ukraine to accede to the World Trade
Organization under Article XII, and to submit to the General Council recommendations which may
include a draft Protocol of Accession.
GROUPE DE TRAVAIL DE L'ACCESSION DE L'UKRAINE
Président: M. A.L. Stoler (Etats-Unis)
Composition
Peuvent être membres du Groupe de travail tous les Membres qui en expriment le désir.
Mandat
Examiner la demande d'accession du gouvernement ukrainien à l'Organisation mondiale du
commerce au titre de l'article XII; présenter au Conseil général des recommandations comportant
éventuellement un projet de Protocole d'accession.
GRUPO DE TRABAJO SOBRE LA ADHESIÓN DE UCRANIA
Presidente: Sr. A. L. Stoler (Estados Unidos)
Composición
Podrán formar parte del Grupo de ajo todos los Miembros que Io deseen.
Mandato
Examinar la solicitud de adhesión a la Organización Mundial del Comercio de conformidad
con el articulo XII presentada por el Gobierno de Ucrania y hacer recomendaciones al Consejo General,
entre las que podrá figurar un proyecto de Protocolo de Adhesión. |
GATT Library | rz894wh0006 | World Trade Organization Notification Pursuant to Article 28.1(a) of Subsidies Inconsistent with the Agreement : Corrigendum | February 23, 1995 | Committee on Subsidies and Countervailing Measures | 23/02/1995 | official documents | G/SCM/N/2/Corr.1 and 0372-0392 | https://exhibits.stanford.edu/gatt/catalog/rz894wh0006 | rz894wh0006_90080805.xml | GATT_1 | 135 | 972 | ORGANISATION MONDIALE DU COMMERCE
ORGANIZACIÓN MUNDIAL DEL COMERCIO
G/SCM/N/2/Corr.1
23 February 1995
WORLD TRADE ORGANIZATION
(95-0380)
Committee on Subsidies and Countervailing Measures
NOTIFICATION PURSUANT TO ARTICLE 28.1(A) OF SUBSIDIES
INCONSISTENT WITH THE AGREEMENT
Corrigendum
Paragraph 2
The date in paragraph 2 of document G/SCM/N/2 should read: 1 April 1995.
Comité des subventions et des mesures compensatoires
NOTIFICATION CONFORMEMENT A L'ARTICLE 28.1 A) DES SUBVENTIONS
INCOMPATIBLES AVEC L'ACCORD
Corrigendum
Paragraph 2
La date indiquée au paragraphe 2 du document
ler avril 1995.
G/SCM/N/2 doit être remplacée par:
Comité de Subvenciones y Medidas Compensatorias
NOTIFICACIÓN DE CONFORMIDAD CON EL APARTADO A)
DEL PÁRRAFO 1 DEL ARTÍCULO 28. DE SUBVENCIONES
INCOMPATIBLES CON EL ACUERDO
Corrigendum
Párrafo 2
La fecha indicada en el párrafo 2 del documents G/SCM/N/2 debe sustituirse por la del
1° de abril de 1995.
RESTRICTED |
GATT Library | tp112jk4916 | WTO Committee on Agriculture : Decision by the General Council on 31 January 1995 | World Trade Organization, February 17, 1995 | World Trade Organization | 17/02/1995 | official documents | WT/L/43 and 0342-0367 | https://exhibits.stanford.edu/gatt/catalog/tp112jk4916 | tp112jk4916_90080783.xml | GATT_1 | 111 | 733 | WORLD TRADE
WT/L/43
17 February 1995
(95-0349)
ORGANIZATION
WTO COMMITTEE ON AGRICULTURE
Decision by the General Council on 31 January 1995
At its meeting on 31 January 1995 the General Council adopted the following terms of reference
of the WTO Committee on Agriculture:*
"The Committee shall oversee the implementation of the Agreement on Agriculture. The
Committee shall afford members the opportunity of consulting on any matter relating to the
implementation of the provisions of the Agreement."
* Upon adoption of the Terms of Reference, the General Council took note of the accompanying
statement or understanding referred to in paragraph 40 of the Report of the Preparatory Committee
contained in document PC/R. |
GATT Library | xs946vs3131 | WTO Committee on Balance-of-Payments Restrictions : Decision by the General Council on 31 January 1995 | World Trade Organization, February 23, 1995 | World Trade Organization | 23/02/1995 | official documents | WT/L/45 and 0372-0392 | https://exhibits.stanford.edu/gatt/catalog/xs946vs3131 | xs946vs3131_90080803.xml | GATT_1 | 169 | 1,167 | WORLD TRADE
WT/L/45
23 February 1995
(95-0378)
ORGANIZATION
WTO COMMITTEE ON BALANCE-OF-PAYMENTS RESTRICTIONS
Decision by the General Council on 31 January 1995
At its meeting on 31 January 1995 the General Council established the WTO Committee on
Balance-of-Payments Restrictions 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."
*Upon adoption of the terms of reference, the General Council also took note of the
accompanying statement or understanding to the text referred to in paragraph 40 of the report of the
Preparatory Committee contained in document PC/R. |