C/W/760 GENERAL AGREEMENT ON TARIFFS AND TRADE. Forty-Ninth Session. Page

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1 GENERAL AGREEMENT ON TARIFFS AND TRADE CONTRACTING PARTIES Forty-Ninth Session RESTRICTED C/W/ November 1993 Limited Distribution ( ) COUNCIL OF REPRESENTATIVES Draft Report on Work since the Fort-Eighth Session¹ In accordance with the Decision of 4 June 1960 establishing the Council of Representatives, the Council is required to report to the CONTRACTING PARTIES on the matters considered between sessions of the latter. In carrying out its task, the Council has held [ ] regular meetings and [ ] special meetings since the Forty-Eighth Session in December The minutes of these meetings, which remain the record of the Council's work, are contained in documents C/M/26 1-C/M/..., C/RM/M/3 1-C/RM/M/.. and C/RM/OV/M/4. Adoption of this report, which summarizes the action taken by the Council, will constitute approval by the CONTRACTING PARTIES of that action. The following subjects are included in the report: 1. Work program resulting from the 1982 Ministerial meeting 6 (a) Dispute settlement procedures 6 (i) Status of work in panels and implementation of panel reports 6 (ii) Roster of non-governmental panelists 6 (b) Quantitative Restrictions and Other Non-Tariff Measures - Technical Group on Quantitative Restrictions and Other Non-Tariff Measures 6 2. Trade Policy Review Mechanism 7 (a) Overview of developments in international trade and the trading system 7 (b) Country reviews 7 (c) Programme of reviews 8 (i) (ii) (d) Procedures for review meetings 9 3. Tariff matters 9 (a) Committee on Tariff Concessions - Designation of Chairman and Vice-Chairman 9 (b) Costa Rica - Transposition of customs tariff into the Harmonized System 9 (c) Tunisia - Renegotiation of certain concessions 9 Page 'The final version of the report will also reflect the Council meeting on 17 December 1993, and the points will be renumbered as necessary.

2 Page 2 4. Trade in Textiles - Report of the Textiles Committee 9 5. Committee on Balance-of-Payments Restrictions 10 (a) Designation of Chairman 10 (b) Programme of consultations for (c) Consultations 10 (d) Notes on meetings il 6. Trade and environment il (a) Group on Environmental Measures and International Trade 11 (b) Council review of the GATT's follow-up to the United Nations Conference on Environment and Development (UNCED) EEC - Import licensing régime for orange juice EEC - Import licensing regime for garlic EEC - Restrictions on imports of preserved sardines and tuna EEC - Variable levy on poultry EEC - Proposed regulation onspecial measures to encourage the processing ofcertain citrus fruits Philippines - Restrictions on imports of agricultural goods United States - Proposed measures on peanut butter and peanut paste United States - Actions under the Trade Acts of 1974 and United States - Anti-dumping and countervailing duty actions on steel products United States and European Economic Community wheat export subsidies Restrictions on poultry imports in certain Central American countries Austria - Article XIX actions on cement and fertilizers Canada - Article XIX action on boneless beef Austria - Mandatory labelling of tropical timber and timber products and creation of a quality mark for timber and timber products from sustainable forest management Recourse to Articles XXII and XXIII 17 (a) Canada - Import, distribution and sale ofcertain alcoholic drinks by provincial marketing agencies 17 (b) European Economic Community 17 (i) Import régime for bananas 17 (ii) Member States' import régimes for bananas 19 (iii) Import régime for apples 20

3 Page 3 (iv) Payments and subsidies paid to processors and producers of oilseeds and related animal-feed proteins - Negotiations under Article XXVIII:4 concerning the modifications of certain concessions included in the European Communities' Schedule LXXX-EC 21 (v) Countervailing charge on lemons 22 (vi) Regulations affecting the sale of imported bovine semen in Italy 22 (c) Japan 22 (i) Restrictions on imports of certain agricultural products 22 (ài) Customs duties, taxes and labelling practices on imported wines and alcoholic (d) beverages 23 Korea - Restrictions on imports of beef 23 (i) Recourse by Australia 23 (ii) Recourse by New Zealand 23 (iii) Recourse by the United States 23 (e) United States 23 (i) Restrictions on imports of wool suits from Brazil 23 (il) Taxes on automobiles 24 (iii) Legislation concerning the use of imported tobacco by domestic cigarette manufacturers 24 (iv) Section 337 of the Tariff Act of (f) (v) Restrictions on imports of tuna - Recourse by the European Communities 25 Venezuela - Actions on imports of cement from Mexico 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 Customs unions and freetrade areas; regional agreements 27 (a) ASEAN Free-Trade Area - Common Effective Preferential Tarif 27 (b) Central European Free-Trade Agreement 27 (c) Customs union between the Czech Republic and the Slovak Republic 27 (d) EEC - Interim Agreements with the Czech and Slovak Federal Republic, Hungary and Poland 28 (e) EEC - Association Agreements with Romania and Bulgaria 28 (f) EFTA - Czech and Slovak Federal Republic Free-Trade Agreement 28 (g) EFTA - Israel Free-Trade Agreement 29 (h) EFTA - Romania Free-Trade Agreement 29 (i) Fourth Lomé Convention 29 (j) Free-Trade Agreements between Estonia, Latvia and Lithuania, and 30 (i) Finland 30 (ii) Switzerland 30 (k) North American Free-Trade Agreement (NAFTA) 30 (1) EFTA - Bulgaria Free-Trade Agreement 30 (m) South Asian Association for Regional Cooperation (SAARC) - Agreement on a Preferential Trading Arrangement Waivers under Article XXV:5 31 (a) German unification: Transitional measures adopted by the European Communities 31

4 Page 4 (b) United States - Andean Trade Preference Act 32 (c) Hamonized Systern 32 (i) Perm - Establishrent of a new Schedule XXXV 32 (ii) Argentina, Bangladesh, Brazil, Chile, Israel, Mexico, Morocco, Pakistan, Sri Lanka and Uruguay 32 (iii) Jamaica and Trinidad and Tobago 33 (iv) Venemela 33 (d) Egypt - Renegotiation of Schedule LX'Il 33 (e) Senegal - Renegotiation of Schedule XLIX 33 (f) Zaire - Renegotiation of Schedule LXVIII 34 (g) Tunisia - Temporary suspension of bound duties 34 (h) Zambia - Renegotiation of Schedule LXXVIII 34 (i) Reports under waivers - United States Agricultural Adjustment Act - Thirty-fifth annual report by the United States Accession matters 35 (a) Accessions 35 (i) Albania 35 (ii) Czech Republic and Slovak Republic 35 (iii) Belarus 36 (iv) Croatia 36 (v) Ecuador 36 (vi) Mongolia 36 (vii) Panama 37 (viii) Paraguay 37 (ix) Russiar. Federation 37 (x) Saudi Arabia 38 (b) Complenentary procedures to be followed i negotiations on accession to GATT Yugoslavia - Status as a contracting party Japan - New package of economic measures US/Japan Framework Agreement Training activities Australia - Assistance to the Baltic States on GATT matters International Trade Centre UNCTAD/GATT 40 (a) Report of the Joint Advisory Group 40 (b) Appointment of a new Executive Director Administrative and financial matters 41 (a) Committee on Budget, Finance and Administration 41 (i) Designation of Chairman 41 (ii) Reports 41 (b) Office of Director-General - appointment of a new Director-General 42 (c) Office of Deputy Director-General - Appointmentof the Deputy Directors-General 42

5 Page Observer statues 43 (a) Requests 43 (i) Azerbaijan 43 (ii) Croatia 43 (iii) Kyrgyzstan 43 (iv) Former Yugoslav Republic of Macedonia 43 (b) Council review of the status of observer and of their rights and obligations Council membership Procedures for the derestriction of GATT documents Items under "Other Business" Council working practices Appointment of presiding officers of standing bodies 46

6 C/W1760 Page 6 1. Work program resulting from the 1982 Ministerial meeting (a) Dispute settlement procedures (i) Status of work in panels and implementation of panel reports (C/M/264, 267) in November 1989, the Director-General had announced that in future he would make his periodic report on the status of work in panels and implementation of panels reports at the Council meetings in lune and November (CIM1237). At the Council meeting on June 1993, Mr. Lindén, Special Advisor to the Director-General, introduced the Director-General's report in C/183. The representatives of the European Communities, Pakistan, Sweden, Argentina. Mexico, New Zealand, Japan, Canada and Korea spoke. The Council took note of the statements and of the Director-General's report in C/183. At the Council meeting on 27 October 1993, Mr. Hoda, Deputy Director-General, introduced the Director-General's report in C1186. The Council took note of the statement and of the Director-General's report in C/186. (ii) Roster of non-governmental panelists (C1M1266) In November 1985, the Council had approved a list of non-governmental panelists (L15906), and in November 1990, had agreed to extend the roster provisionally for a further period until the conclusion of the Uruguay Round negotiations on dispute settlement rules and procedures (LJ6763). At its meeting on 22 September 1993, the Council approved proposed nominations to the roster by Austria (C/W/751), Canada (C/W/7541Rev.1) and Hungary (C/W/753). (b) Quantitative Restrictions and Other Non-Tariff Measures - Technical Group on Quantitative Restrictions and Other Non-Tariff Measures (C/M1264) In May 1988, the Council had agreed while adopting the report of the Technical Group that the Council Chairnan would undertake informal consultations in the last quarter of 1990 concerning the date of the Technical Group's next meeting. In November 1990, tie Council Chairman had suggested that, given the present priorities of delegations, these consultations be held in the spring of 1991 by his successor. At the Council meeting on June 1993, the Chairman said that contracting parties' priorities in connection with the Uruguay Round had not changed and that no such consultations had therefore been carried out. He believed that a meeting of the Technical Group at this stage would not be useful; he proposed therefore that consultations on the date of the next meeting of the Group be carried out after the conclusion of the Round, and urged contracting parties to abide by the Decision of the CONTRACTING PARTIES relating to the notification of quantitative restrictions. The Council took note of the statement and agreed to the Chairman's proposal.

7 Page 7 2. Trade Policy Review Mechanism Part I ofthe CONTRACTING PARTIES' Decision of 12 April 1989 (BISD 36S/403), establishing a trade policy review mechanism on a provisional basis, provides that the trade policies ofall contracting parties will be subject to periodic review to be carried out by the Council at special meetings. The Decision also provides that country reports under the review mechanism will be based on an agreed format to be decided upon by the Council, and that the Council will establish a basic plan for the conduct of the reviews as well as a programme of reviews for each year in consultation with the contracting parties directly concerned. Part IF of the Decision further provides that the Council will undertake an overview of developments in the international trading environment, which will be assisted by an annual report by the Director-General setting out major GATT activities and highlighting significant policy issues affecting the trading system. (a) Overview of developments in international trade and the trading system (C/RM/OV/M/4) At its special meeting on 13 May 1993, the Council conductedthe 1992 overviewofdevelopments in international trade and the trading system. In so doing, the Council considered the annual report by the Director-General (C/RM/OV/4). The representatives of Norway on behalf of the Nordic countries, Hong Kong, India, Japan, Korea, Australia, Canada, Argentina, the European Communities, Mexico, Bangladesh, Egypt, the United States, Romania, Brazil, Chile, the Czech Republic, Malaysia on behalfof the ASEAN contracting parties, and Turkey, and the Director-General and the Chairman spoke. The Council took note of the statements and agreed that the overview of developments in international trade and the trading system for 1992 had been conducted. (b) Country reviews (C/RM/M/31, 32, 33, 34, 35, 36, 37, 38, 39, 40) At its special meeting on December 1992, the Council conducted a review of the trade policy of Romania (C/RM/M32). At its special meeting on January 1993, the Council conducted a review ofthe trade policy of Poland (C/RM/M/31). At its special meeting on February 1993, the Council conducted a review of the trade policy of the Philippines (C/RM/M/33). At its special meeting on March 1993, the Council conducted a review of the trade policy of Bolivia (C/RM/M/34). At its special meeting on April 1993, the Council conducted a review of the trade policy of Mexico (C/RMIM/35). At its special meeting on May 1993, the Council conducted a second review of the trade policy of the European Communities (C/RM/M/36). At its special meeting on 1-2 June 1993, the Council conducted a review of the trade policy of South Africa (C/RM/W37).

8 Page 8 At its special meeting on July 1993, the Council conducted a review of the trade policy of Malaysia (C/RM/M/38). At its special meeting on 7-8 September 1993, the Council conducted a review of the trade policy of Kenya (C/RM/M/392). At its special meeting on October 1993, the Council conducted a review of the trade policy of India (C/RM/M/40³). (c) Programme of reviews (i) 1993 (C/M/262, 264, 266) In June 1992, the Council had agreed to a programme of reviews for 1993 (L/7040). At the Council meeting on 24 March 1993, the Chairman expressed strong disquiet about the postponement of several TPRM reviews under the 1993 programme and said that the TPRM being a commitment which all had undertaken, it was important to take both the reporting requirements and the timing of the process seriously. The representatives of Peru, Japan, Argentina and the European Communities spoke. At the Council meeting on June 1993, the Chairman recalled the schedule for the remaining reviews under the 1993 programme and said that every effort would be made to keep to these dates. The Council took note of the statement. At its meeting on 22 September 1993, the Chairman informed the Council that the end-of-year review meetings under the 1993 programme would be postponed in light of the priority ofwork relating to the Uruguay Round, which was to be concluded by 15 December. (ii) 1994 (C/M/264, 265) At the Council meeting on June 1993, the Chairman said that the programme of reviews for 1994 was close to being finalized and would be presented to the Council at its next meeting. At the Council meeting on 21 July 1993, the Chairman announced the programme of reviews for The Council took note of the statement and agreed with the programme of reviews for 1994 (L/7285). ²To be issued. ³Idem.

9 (d) Procedures for review meetings (C/M/263) C/W/760 Page 9 At its meeting on May 1993, the Chairman informed the Council of proposed changes in procedures for review meetings under the Trade Policy Review Mechanism (L/7208). The Council took note of the statement and of the information in L/ Tariff matters (a) Committee on Tariff Concessions - Designation of Chairman and Vice-Chairman4 (C/M/261) At their Forty-Fourth Session in November 1988, the CONTRACTING PARTIES had taken note of a suggestion by the Council Chairman concerning the appointment of presiding officers of standing bodies (SR.44/2). At its meeting on 9-10 February 1993, the Council approved the appointment of Mr. Tironi Barrios (Chile) as Chairman of the Committee on Tariff Concessions and Mr. Potocnik (Austria) as Vice- Chairman of the Committee. (b) Costa Rica - Transposition of customs tariff into the Harmonized System (C/M/267) At its meeting on 27 October 1993, the representative of Costa Rica informed the Council that Costa Rica had completed the transposition of its customs tariff into the Harmonized System, and that it intended to put the new tariff into effect in the near future. Accordingly, Costa Rica would request, at the next Council meeting, a temporary waiver from its obligations under Article II. The Council took note of the statement. (c) Tunisia - Renegotiation of certain concessions5 (C/M/264) At its meeting on June 1993, the representative of Tunisia informed the Council of his Government's intention to modify certain concessions and to follow established GATT practice in this respect. The Council took note of the statement. 4. Trade in Textiles - Report of the Textiles Committee (C/M/261) At the Council meeting on 9-10 February 1993, the Director-General, Chairnian of the Textiles Committee, presented the Committee's report (COM.TEX/73) and the report of the Textiles Surveillance Body (COM.TEX/SB/1799 and Add. 1 and Corr. 1). 4Carried in Council Minutes under "Appointment of presiding officers of standing bodies". 5See also sub-point 24(g).

10 Page 10 The Council took note of the statement and of the report of the Textiles Surveillance Body, and adopted the report of the Textiles Committee. 5. Committee on Balance-of-Payments Restrictions (a) Designation of Chairman6 (C/M/261) At their Forty-Fourth Session in November 1988, the CONTRACTING PARTIES had taken note of a suggestion by the Council Chairman concerning the appointment of presiding officers of standing bodies (SR.44/2). At its meeting on 9-10 February 1993, the Council approved the appointment of Mr. Witt (Germany) as Chairman of the Committee on Balance-of-Payments Restrictions. (b) Programme of consultations for 1993 (C/M/261) At the Council meeting on 9-10 February 1993, the Chairman drew attention to the Committee's proposed programme of consultations for 1993 (C/W/727). The Council took note of the information in C/W/727. (c) Consultations (C/M/262, 263, 264, 265, 266) At the Council meeting on 24 March 1993, the Chairman of the Committee introduced the Committee's report on its consultation with the Philippines (BOP/R/204 and Corr.1). The Council took note of the statement and adopted the report in BOP/R/204 and Corr. 1. At the Council meeting on May 1993, the Chairman of the Committee introduced the Committee's reports on its consultations with Poland (BOP/R/206) and with Turkey (BOP/R1207 and Corr. 1). The Council took note of the statements and adopted the reports in BOP/R/206 and BOP/R/207 and Corr. 1. At the Council meeting on June 1993, the Chairman ofthe Committee presented an interim report on the Committee's consultation with Nigeria. The representative of the European Communities spoke. At the Council meeting on 21 July 1993, the Chairman of the Committee presented an interim report on the Committee's consultations with Israel and South Africa. The Council took note of the statement. 6Carried in Council Minutes under "Appointment of presiding officers of standing bodies'.

11 Page 1 1 At the Council meeting on 22 September 1993, the Chairman of the Committee introduced the Committee's report on its consultation with South Africa (BOP/R/21 1). The Council took note of the statement and adopted the report in BOP/R/211. (d) Notes on meetings (C/M/262, 263, 266) At the Council meeting on 24 March 1993, the Chairman of the Committee drew attention to the points raised under "Other Business' at the Committee's meeting in February 1993 (BOP/R/205). The Council took note of the statement and of the information in BOP/R/205. The representatives of the United States and Sweden, and the Chairman of the Committee spoke. At the Council meeting on May 1993, the Chairman of the Committee drew attention to the points raised under 'Other Business" at the Committee's meeting in April 1993 (BOPIR/208). The Council took note of the statement and of the information in BOP/R/208. At the Council meeting on 22 September 1993, the Chairman ofthe Committee drew attentionto the points raised under "Other Business' at the Committee's meetings on May, 1-2 and 7-8 July 1993 (BOP/R/212). The representatives of the United States, Canada, the European Communities and Sweden on behalf of the Nordic countries spoke. The Council took note of the statements and of the information in BOP/R/ Trade and environment (a) Group on Environmental Measures and International Trade At its meeting on 27 October 1993, the Chairman informed the Council that, ina communication addressed to him on 8 October, the Chairman of the Group on Envirormental Measures and International Trade, Mr. Ukawa (Japan), had indicated his intention to report on the progress in the work of the Group, on his own responsibility, to the CONTRACTING PARTIES at their Forty-Ninth Session. The Chairman ofthe Group had informed the Group of his intentionto do so, and had also communicated to him the Group's decision to recommend to the Council that the working documents prepared by the Secretariat on its own responsibility for the Group be derestricted at the time he made his report to the CONTRACTING PARTIES. A proposal concerning this matter would be submitted to the Council at its next meeting.

12 Page 12 (b) Council review of the GATT's follow-up to the United Nations Conference on Environment and Development (UNCED) (C/M1267) At their Forty-Eighth Session in December 1992, the CONTRACTING PARTIES had agreed that the Council should hold a meeting within twelve months to review and, as necessary, supplement, the work underway in GATT related to the follow-up to the UNCED. At the Council meeting on 27 October 1993, the Chairman said that in view of the priority of the Uruguay Round negotiations at that time, it had been agreed in informal consultations that this meeting should be postponed until after the Uruguay Round. In his consultations, delegations had emphasized that their preference to postpone this meeting did not imply that they were treating the matter ofthe UNCED follow-up in GATT as one ofsecondary importance; on the contrary, contracting parties continued to be, as stated by the Chairman of the Council at the Forty-Eighth Session, "determined that GATT should play its full part in ensuring that policies in the fields of trade, the environment and sustainabledevelopment arecompatible andmutually reinforcing' (SR.48/1, page 13). 7. EEC - Import licensing regime for orange juice (CIM/263) At the Council meeting on May 1993, the representative of Brazil expressed concern that he European Economic Community had recently reintroduced orangejuice in the list of products requiring import licences. The representatives of Chile, Colombia, Guatemala, Argentina, the European Communities, the United States and Australia spoke. 8. EEC - Import licensing régime for garlic (C/M/264) At the Council meeting on June 1993, the representative of Argentina expressed concern at the trade disruptive effects ofthe European Economic Community's new import licensing requirement on garlic, and urged the Community to respect its Uruguay Round commitments and to refrain from applying and increasing this type of measure any further. The representatives of Mexico and the European Communities spoke. 9. EEC - Restrictions on imports of preserved sardines and tuna (C/M/265) At the Council meeting on 21 July 1993, the representative of Singapore on behalfofthe ASEAN contracting parties expressed concern at a quota regime recently adopted by the European Economic Community on preserved sardines and tuna. The representatives of the United States, Australia, Japan, Colombia, Korea and the European Communities spoke.

13 Page EEC - Variable levy on poultry (C/M/266) At the Council meeting on 22 September 1993, the representative of Brazil expressed concern at a recent EEC Regulation which established a 100 per cent increase in the levy on imports of poultry meat from Brazil. The Council took note of the statement. 11. EEC - Proposed regulation on special measures to encourage the processing of certain citrus fruits (C/M/267) At the Council meeting on 27 October 1993, the representative of Argentina drew attention to a recently-published proposal by the European Community for a regulation laying down special measures to encourage the processing of certain citrus fruits (Notice No. 93/C259/07), and requested that the Community provide further information thereon to contracting parties. The representatives of Mexico and Brazil spoke. 12. Philippines - Restrictions on imports of agricultural goods (C/M/267) At its meeting on 27 October 1993, the Council considered a communication from the United States (L/312) expressing its concern over recently enacted legislation in the Philippines which prohibited importation of agricultural products produced in "sufficient quantity" in the Philippines. The representatives of the United States, the Philippines and the European Communities spoke. 13. United States - Proposed measures on peanut butter and peanut paste (C/M/264) At the Council meeting on June 1993, the representative of Argentina expressed concern at a proposal in the US Congress to raise tariffs on peanut butter and peanut paste, and urged the United States to respect commitments undertaken in the Uruguay Round. The representatives of the United States and Canada spoke. 14. United States - Actions under the Trade Acts of 1974 and 1988 (C/M/263) At its meeting on May 1993, the representative of Brazil informed the Council of recent US actions under the Trade Acts of 1974 and 1988 and said that the United States' threat to resort

14 Page 14 to unilateral trade measures reinforced doubts as to its commitment to the GATT and to the Uruguay Round. The representatives ofthailand, India, the United States, Australia, Japan, Hungary, Argentina, the European Communities and Korea spoke. 15. United States - Anti-dumping and countervailing duty actions on steel products (C/M/261, 262, 263, 264, 265) At the CONTRACTING PARTIES' Forty-Eighth Session in December 1992, several contracting parties had addressed recent anti-dumping and countervailing duty actions by the United States in the steel sector (SR48/1, page 9 and SR.48/3, page 5). At its meeting on 9-10 February 1993, the Council considered a communication from Brazil (L/7174) regarding recent anti-dumping and countervailing duty actions by the United States on certain steel products. The representatives of Brazil, Argentina, Austria, Mexico, Sweden on behalf of the Nordic countries, Poland, Canada, Korea, Romania, the European Communities, Malaysia on behalf of the ASEAN contracting parties, Japan, New Zealand, Australia, Hong Kong, Hungary and the United States spoke. The Council took note of the statements and agreed to revert to this matter at its next meeting. At its meeting on 24 March 1993, the Council again considered this master. The representatives of Brazil, the European Communities, Sweden on behalf of the Nordic countries, Argentina, Austria, Australia, Korea, Canada, Japan, New Zealand and the United States spoke. The Council took note of the statements and agreed to revert to this matter at its next meeting. At its meeting on May 1993, the Council again considered this master. The representatives of Brazil, the European Communities, Poland, Finland, Austria, Australia, Korea, Japan, Canada, Sweden and the United States spoke. The Council took note of the statements and agreed to revert to this matter at a future meeting. At its meeting on June 1993, the representative ofjapan informed the Council that, pursuant to the provisions of the Anti-Dumping Codeé, Japan had recently held consultations with the United States regarding the latter's preliminary anti-dumping determinations on certain steel products. The Council took note of the statement. 7Agreement on Implementation of Article VI (BISD 26S/171).

15 Page 15 At its meeting on 21 July 1993, the representative of Australia informed the Council that his Government had formally requested consultations with the United States pursuant to Article 15:2 of the Anti-Dumping Code on the latter's final dumping determinations and provisional measures against certain steel products from Australia. The representative of Brazil spoke. 16. United States and European Economic Community wheat export subsidies (C/M/261, 264, 265, 266) In September 1992, the Council had agreed that its Chairman would hold informal consultations on an urgent basis with a view to exploring avenues of addressing the problems posed by competitive export subsidization of wheat by the United States and the European Economic Community. In November, the Chairman had informed the Council that he had initiated the process. At the CONTRACTING PARTIES' Forty-Eighth Session in December 1992, the issue of wheat export subsidization had again been addressed by a number of contracting parties. At the Council meeting on 9-10 February 1993, the Chairman said that in his informal contacts some contracting parties had reaffirmed their strong interest in continuing the informal consultation process. Accordingly, he would continue this process, and would ensure the involvement of other interested contracting parties. The representatives of Australia, Argentina, Brazil and Chile spoke. At the Council meeting on June 1993, the representative of Australia expressed concern at the possible further intensification of the on-going wheat export subsidies war between the United States and the Community, and said it looked forward to further constructive consultations under the Chairman's guidance. The representative of Argentina spoke. At the Council meeting on 21 Julv 1993, the representative of Canada expressed concern at the United States' decision to increase the size and scope of its Export Enhancement Programme in , as also at the on-going use of export subsidies by the Community, and echoed Australia's earlier request that the Council Chairman resume his consultation process on this matter. The representatives of Chile, Brazil, Australia, Venezuela, Argentina. the United States, the European Communities and Mexico, and the Chairman spoke. At its meeting on 22 September 1993, the Chairman informed the Council that at recent informal consultations he had held onthis matter, participants had found the exchange ofviews useful. He hoped that before returning to this issue in the Council, further careful consideration would be given to Uie ideas put forward at the consultations, and announced his intentionto hold another informal consultation.

16 Page Restrictions on poultry imports in certain Central American countries (C/M/265) At the Council meeting on 21 July 1993, the representative ofthe United States expressed concern that for almost two years its exports of cut-up poultry to Nicaragua, El Salvador, Guatemala and Honduras had been blocked by measures that appeared to be in violation of basic GATT obligations. The representatives of El Salvador, Nicaragua and Guatemala, and the observer from Honduras spoke. 18. Austria - Article XIX actions on cement and fertilizers (C/M/263) At the Council meeting on May 1993, the representative of Hungary expressed concern at recent Article XIX actions by Austria on imports of cement and fertilizers originating in countries other than member States of the European Economic Community and the European Free-Trade Association. The representatives of the Czech Republic, the Slovak Republic, Poland, Romania, Austria, Japan, Korea, Hong Kong and India spoke. 19. Canada - Article XIX action on boneless beef (C/M/264, 265) At the Council meeting on June 1993, the representative of Australia expressed objections to Canada's intention to take safeguard action on imports of boneless beef following an enquiry by the Canadian International Trade Tribunal, and informed the Council that Australia had requested consultations with Canada under Article XIX. The representatives of New Zealand, Canada, Japan, Hong Kong, India and Korea spoke. At the Council meeting on 21 July 1993, the representative of Australia said that in the light of bilateral consultations with Canada, Australia wished to reserve its rights to suspend substantially equivalent concessions or other obligations in respect of Canada under Article XIX:3(a) in respect of measures applying for 1993, or those that might be implemented for 1994 and The representative of Canada spoke.

17 C/W1760 Page Austria - Mandatory labelling of tropical timber and timber products and creation of a quality mark for timber and timber products from sustainable forest management (C/M/261, 262) In November 1992, the Council had considered this matter, and the Chairman had undertaken informally to see what might be done in this regard. At its meeting on 9-10 February 1993, the Chairman informed the Council that high level bilateral and plurilateral contacts had been established between the ASEAN countries and Austria, and that these countries would continue informal consultations under the GATT too. He announced his intention to assist the parties concerned in promoting this process. The Council took note of the statement. At the Council meeting on 24 March 1993, the Chairman said he had been informed that Austria had amended the federal law concerning the labelling of tropical timber and timber products and the creation ofa quality mark for timber and timber products from sustainable exploitation. The mandatory labelling oftropical timber and timber products had been abolished, while a voluntary use ofthe quality mark for timber and timber products from sustainable forest management had been maintained. The Council took note of the statement. 21. Recourse to Articles XXII and XXIII (a) Canada - Import distribution and sale of certain alcoholic drinks bv provincial marketing agencies (C/M/266) In February 1992, the Council had adopted the Panel report (DS17/R). At its meeting on 22 September 1993, the representative of Canada, also on behalfofthe United States, informed the Council that on 5 August 1993 their Governments had signed a Memorandum of Understanding, communicated to contracting parties in DS17/10, regarding the implementation of this Panel report. The representative of the European Communities spoke. (b) Euroean Economic Community (i) Import régime for bananas (C/M/261, 262, 263, 264) At its meetings in June, July and September 1992, the Council had considered the complaint by Colombia, Costa Rica, Guatemala, Nicaragua and Venezuela regarding this matter, and inseptember had been informed that the Director-General had been requested to lend his good offices in the dispute on the existing banana import régimes, pursuant to the 1966 Decision on Procedures under Article XXIII (BISD 14S/18). This matter had also been raised at the CONTRACTING PARTIES' Forty-Eiguh Session in December 1992.

18 Page 18 At the Council meeting on 9-10 February1993, the representative of Costa Rica, also on behalf of Colombia., Guatemala, Nicaragua and Venezuela. said that their Governments had requested the Director- General to refer this matter to the Councii and, pursuant to paragraph 5 of the 1966 Decision, expected the Council to establish a panel on the existing banana import regimes. Separately, they also requested the Council to establish a panel to examine the Community's proposed import regime. The representatives of Colombia, the European Communities, Venezuela, Nicaragua, Mexico, Brazil, Chile, Jamaica, Bolivia. Argentina, Uruguay, Côte d'ivoire, Cameroon, Senegal, Morocco, the United States, Australia, Cuba, Egypt, New Zealand, Tunisia, India, Madagascar. Japan, the Philippines and Korea, and the observers from Panama, Honduras and Ecuador, and the Diretor-General and the Chairman spoke. The Council took note of the statements and agreed to establish a panel to examine the member States' import régimes for bananas8 on the understanding that the sixty-day period for the submission of its findings and conclusions would only begin once its terms of reference and composition had been agreed. and that this would not be taken as a precedent for the interpretation of the 1966 Decision. The Council further agreed that the panel would have standard terms of reference unless the parties agreed otherwise within the next twenty days. The Council authorized its Chairman to designate the Chairman and members of the Panel in consultation with the parties concerned, and agreed tb revert to the outstanding masters related to the Community's banana import regime at its next nmeting. At the Council meeting on 24 March 1993, the representative of Costa Rica. also on behalf ofcolombia, Guatemala, Nicaragua and Venezuela, said that their Governments had recently reiterated their request for Article XXIII: consultations on the Comnunity's proposed banana import regime. to which the Community had agreed. The representatives of Brazil, Chile, Argentina, Peru, Bolivia. Uruguay, the European Communities, Jamaica, Côte d'ivoire, Belize, Trinidad and Tobago, Senegal, Cameroon, Madagascar and Japan, and the Chairman spoke. The Council took note of the statements and agreed to revert to the matter of the Community's new banana-import régime at a future meeting. At iis meeting on May 1993, the Council considered a request by Colombia. Costa Rica, Guatemala, Nicaragua and Venezuela for the establishment of a panel to examine the Communitys new banana import regime (DS38/6). The representatives of Costa Rica also on behalf of Colombia, Guatenala. Nicaragua and Venezuela, Colombia, Guatemala, Thailand on behalf of the ASEAN contracting parties, Mexico, Dominica, El Salvador, Uruguay, Brazil, Chile, Argentina, the United States, Côte d'ivoire, Bolivia, Jamaica. Cameroon, Australia, Peru, Madagascar. Trinidad and Tobago. and the European Communities. and the observer from Ecuador spoke. The Council took note of the statements and agreed to revert to this matter at its next meeting. At its meeting on June the Council again considered this master. The representatives of Costa Rica also on behalf of Colombia, Guatemala. Nicaragua and Venezula, the European Communities, Colombia, the United States, Jamaica, Argentina. Peru, Australia. 'Sec sub-point (b)(ii) below.

19 Page 19 Barbados, Brazil, Mexico, Chile, Senegal, Bolivia, Dominica, St. Lucia, Belize, Suriname, Cameroon, Côte d'ivoire, El Salvador, Ghana, Trinidad and Tobago, Antigua and Barbuda, St. Vincent and the Grendines, Madagascar, Malaysia un behalf of the ASEAN contracting parties, the Dominican Republic, Cuba, Japan, Uganda, Tanzania and Guatemala, and the observers from Ecuador and Panama spoke. The Council took note of the statements, agreed to establish a panel and authorized its Chairnan ts, designate the Chairman and members of the Panel in consultation with the parties concerned. (ii) Member States' import régimes for bananas (C/M/264, 265, 266, 267) In February 1993, the Council had established a Panel to examine the complaint by Coloinbia, Costa Rica, Guatemala, Nicaragua and Venezuela.' At its meeting on June 1993, the Council considered the Panel report (DS32/R). The representatives of Costa Rica also on behalf of Colombia, Guatemala, Nicaragua and Venezuela, the European Communities, Colombia, Jamaica, Argentina, Peru, Senegal, St. Lucia, Guatemala, Belize, St. Vincent and the Grenadines. Dominica, Côte d'ivoire, Cameroon, Mexico, Morocco, Nigeria, Antigua and Barbuda, Uruguay, Kenya, Barbados, Suriname, Madagascar, Brazil, the United States, Tanzania, Guyana, Trinidad and Tobago, the Dominican Republic, Zimbabwe, Australia, Japan and India, and the observer from Ecuador spoke. The Council took note of the statements and agreed to revert to this matter at its next meeting. At its meeting on 21 July the Council again considered this master. The representatives of Costa Rica also on behalf of Colombia. Guatemala, Nicaragua and Venezuela, Colombia, the European Communities, Jamaica on behalf of the ACP contracting parties, Mexico. Argentina, Malaysia on behalfof the ASEAN contacting parties, St. Lucia, St. Vincent and the Grenadines, El Salvador, Cuba, Canada, Dominica, J;;pan, Camenx Côte d'ivoire, the Domiicn Republic and the United States, and the observer from Ecuador and the Chairman spoke. The Council took note of the statements and agreed to revert to this item at it next meeting, prior to which the Chairman would hold informal consultations on how best to organize the discussion on this item. At its meeting on 22 September 1993, the Council again considered this matter. The representatives of Costa Rica also on behalf of Colombia, Guatemala, Nicaragua and Venezuela, the European Communities, Jamaica on behalfof the ACP contracting parties, Argentina, Côte d'lvoire also on behalf of Cameroon, Madagascar and Senegal, and the United States, and the Chairman spoke. The representatives of Australia, Bolivia, Brazil, Canada, Chile, El Salvador, Indonesia, Japan, Mexico, Pakistan, Peru, Philippines, Thailand and Uruguay wished to be associated with the views expressed by Costa Rica also on behalf of Colombia, Guatemala, Nicaragua and Venezuela, and by Argentina and the United States. The representatives ofbelize, the Dominican Republic, Egypt, Ghzaa, Kenya, Morocco, Nigeria, St. Lucia, Tanzania, Trinidad and Tobago, Tunisia and Zimbabwe wished 9See sub-point(b)(i) above.

20 Page 20 to be associated with the views expressed by the Community, Côte d'ivoire also on behalfofcameroon, Madagascar and Senegal, and Jamaica on behalf of the ACP contracting parties. The Council took note of the statements and agreed to revert to this matter at its next meeting. At its meeting on 27 October 1993, the Council again considered this matter. The representatives of Costa Rica also on behalf of Colombia, Guatemala, Nicaragua and Venezuela, the European Communities, Jamaica on behalf of the ACP contracting parties, the United States, Brazil, Argentina, Japan, Peru, the Philippines on behalf of the ASEAN contracting parties, St. Lucia, Mexico, and St. Vincent and the Grenadines, and the Chairman spoke. The Council took note of the statements and agreed to revert to this matter at its next meeting. (iii) Import régime for apples' (C/M/262, 263, 264, 265, 266) At the Council meeting on 24 March the representative of Chile expressed concern at a surveillance system established by the Community on apple imports from third countries, which Chile believed impaired concessions granted on apples and was inconsistent with Articles 11, VIII and XI. The representatives of Brazil, Colombia, New Zealand, Argentina, the United States, South Africa, Malaysia on behalf of the ASEAN contracting parties, Bolivia, Australia, Venezuela, Peru, Canada, Costa Rica, Uruguay and the European Communities spoke. At its meeting on May 1993, the representative ofchile informed the Council ofthe recent imposition of countervailing charges by the Community on imports of apples from Chile, and urged the Community to remove all its trade restrictive measures that were GATT inconsistent. The representativesofbrazil, Mexico. Australia, Argentina, Colombia, New Zealand, Guatemala and the European Communities spoke. At the Council meeting on June 1993, the representative of Chile reiterated his Govenmeun's concern at the Community's surveillance system and its imposition of countervailing charges, which Chile believed were aimed at protecting the Community's market in a GATT-inconsistent manner, and requested Article XXIII: 1 consultations with the Community. The representative of the European Communities, Brazil, Canada, Colombia, Australia, Argentina, Bolivia, Guatemala, Uruguay, Mexico, New Zealand. El Salvador and Costa Rica spoke. At its meeting on21 July 1993, the representative ofchile informed the Council that consultations with the Community regarding the latter's licensing system and countervailing charges on imports of ' Also carried in Council Minutes as 'EEC - Restrictions on imports of apples" and "EEC - Countervailing charges on apples".

21 Page 21 apples from Chile had not led to a mutually-satisfactory solution, and requested the establishment of a panel to examine both these matters (DS39/2, DS41/2). The representativesoftheeuropeancommunities, Argentina, the United States, Australia, Brazil, El Salvador, Colombia, Venezuela, Uruguay, Guatemala, Canada, Bolivia and Peru, and the Chairman spoke. The Council took note of the statements and agreed to revert to this matter at its next meeting. At its meeting on 22 September 1993, the Council again considered this matter. The representatives ofchile, the EuropeanCommunities, the United States, Argentina, Australia, Canada, Brazil, Mexico, New Zealand and Uruguay spoke. The Council took note of the statements, agreed to establish a panel and authorized its Chairman to designate the Chairman and members of the Panel in consultation with the parties concerned. (iv) Payments and subsidies paid to processors and producers of oilseeds and related animal-feed proteins - Negotiations under Article XXVIII:4 concerning the modifications of certain concessions included in the European Communities' Schedule LXXX-EC (C/M/261, 263, 264) InJanuary 1990, the Council had adopted the Panel report (BISD 37S/86). Attheir Forty-Seventh Session in December 1991, the CONTRACTING PARTIES had reached an agreement under which the members ofthe original Panel were to be reconvened to examine whether the measures taken by the Community complied with the Panel's recommendations and rulings. In April 1992, the Council had considered the report of the reconvened Panel members (DS28IR) and in June had authorized the Community to enter into Article XXVIII:4 negotiations to modify its tariffconcessions on certain oilseeds and on oilcake with a view to implementing the recommendations of the reconvened Panel. At the Council meeting on 9-10 February 1993, the representative of Argentina expressed frustration at the delay in the Article XXVIII:4 negotiations and with the absence ofany results therein. The representatives of Canada, the European Communities, Uruguay, Brazil, India and Pakistan spoke. At the Council meeting on May 1993, the representative of Canada expressed concern at the lack of a satisfactory resolution to this dispute and asked the Community when it intended to resume negotiations with interested third parties. The representatives of Argentina. Brazil, Uruguay, India, Pakistan, Sweden, Hungary and the European Communities spoke. The Council took note of the statements and agreed to revert to this matter at a future meeting. At the Council meeting on June 1993, the representative of Argentina expressed concern at the lack ofprogress in Argentina's bilateral negotiations with the Community and requested the latter to indicate when and in what manner it intended to comply with the provisions of Article XXVII:4.

22 Page 22 The representatives of Canada, Brazil, Uruguay and the European Communities spoke. (v) Countervailing charge on lemons (C/M/265, 266, 267) At the Council meeting on 21 July 1993, the representative of Argentina expressed concern at the recent imposition ofcountervailing charges by the Community on imports oflemons from Argentina and announced Argentina's intention to seek Article XXII consultations with the Community. The representative of the European Communities spoke. At its meeting on 22 September 1993, the Council considered a communication from Argentina on this matter (DS45/1). The representatives of Argentina, the European Communities, Chile, Australia, Brazil, Mexico and Uruguay spoke. At its meeting on 27 October 1993, the representative of Argentina informed the Council of his Government's consultations with the Community on this matter. (vi) Regulations affecting the sale of imported bovine semen in Italy (C/M/267) At its meeting on27 October 1993, the representative ofcanada informed the Council of recently held Article XXIII: 1 consultations with the Community on regulations affecting the sale of imported bovine semen in Italy (DS42/1). The representatives of the United States and the European Communities spoke. (c) Japan (i) Restrictions on imports of certain agricultural products (C/M/266, 267) In March 1988, the Council had adopted the Panel report (BISD 35S/163). At the Council meeting on 22 September 1993, the Council considered a communication from Australia regarding the follow-up to this matter (DS25/4). The representatives of Australia, New Zealand, Argentina and Japan spoke. At its meeting on 27 October 1993, the Council again considered this matter.

23 Page 23 The representatives of Australia, Japan and New Zealand spoke. The Council took note ofthe statements and agreed to revert to this matter at a future meeting. (ii) Customs duties. taxes and labelling practices on imported wines and alcoholic beverages (C/M/266) In November 1987, the Council had adopted the Panel report (BISD 34S/83). At the Council meeting on 22 September 1993, the representative ofthe European Communities expressed concern at the insufficient implementation of the Panel's recommendations by Japan. The representative of the United States and Japan spoke. (d) Korea - Restrictions on imports of beef (C/M/265) (i) Recourse by Australia (ii) Recourse by New Zealand (iii) Recourse by the United States In November 1989, the Council had adopted the Panel reports on the complaints by Australia (BISD 36S/202), New Zealand (BISD 36S/234) and the United States (BISD 36S/268) related to Korea's restrictions on beef imports. At its meeting on 21 July 1993, the representative of Korea informed the Council of Agreements reached with the United States, Australiaand New Zealand onthe implementation ofthese Panel reports, details of which had recently been communicated to contracting parties (L/7270). The representatives of Australia and New Zealand spoke. (e) United States (i) Restrictions on imports of wool suits from Brazil (CM/261, 262, 263) At its meeting on 9-10 February 1993, the Council considered a communication from Brazil regarding the application by the United States of a quantitative restriction on imports of wool suits from Brazil (DS37/1). The representative of Brazil said that his Government had decided to refer this matter to the good offices of the Director-General, pursuant to paragraph 1 of the 1966 Decision on Procedures under Article XXIII (BISD 14S/18). The representatives of Argentina, Chile, Uruguay, Pakistan, Hong Kong, Colombia, India, Korea, Japan, the United States and the European Communities, and the Director-General spoke. The Council took note of the statements and agreed to revert to this matter at its next meeting. At its meeting on 24 March 1993, the Council again considered this matter. The representatives of Brazil and the United States, and the Director-General spoke.

24 Page 24 The Council took note of the statements and agreed to revert to this matter at a future meeting. At the Council meeting on May 1993, the Director-General said that following Brazil's request that he lend his good offices to seek a solution to this matter, he had requested both parties to intensify their bilateral talks as a first step, and that, as a result of these contacts, the matter had been resolved. The Council took note of the statement. (ii) Taxes on automobiles (C/M/261, 262, 263) At its meeting on 9-10 February 1993, the representative of the EuropeanCommunities informed the Council that, pursuant to its request in May 1992 (DS3 111), the Community had held Article XXIII: 1 consultations with the United States regarding the latter's taxes on automobiles. These consultations had not been successful and the Community intended to request the establishment of a panel on this matter at the next Council meeting. The Council took note of the statement. At its meeting on 24 March 1993, the Council considered a request by the Community for the establishment of a panel to examine this matter (DS31/2). The representatives of the European Communities, the United States and Sweden spoke. The Council took note of the statements and agreed to revert to this matter at its next meeting. At its meeting on May 1993, the Council again considered this matter. The representatives ofthe European Communities, Sweden, the United States, Japanand Australia spoke. The Council took note ofthe statements, agreed to establish a panel and authorized its Chairman to designate the Chairman and members of the Panel in consultation with the parties concerned. (iii) Legislation concerning the use of imported tobacco by domestic cigarette manufacturers" (CM/265, 266, 267) At the Council meeting on 21 July 1993, the representative of Brazil expressed concern at a provision in the Budget Billin the US Senate which would require US cigarette manufacturers to use a minimum of 75 per cent of domestically produced tobacco in their products. Therepresentatives ofchile, Argentina, El Salvador, Guatemala, Venezuela andtheunited States spoke. At its meeting on 22 September 1993, the Council considered communications from Brazil also on behalf of Argentina, Colombia, El Salvador, Guatemala, Thailand, Venezuela and Zimbabwe "Carried in C/M/265 as "Proposed legislation concerning the use of imported tobacco by domestic cigarette manufacturers".

25 Page 25 (DS44/1), and from Chile (DS44/2) requesting Article XXIII: 1 consultations with the United States regarding its legislation on the use of imported tobacco by domestic cigarette manufacturers, signed into law on 10 August. The representatives of Brazil also on behalf of Argentina, Colombia, El Salvador, Guatemala, Thailand, Venezuela and Zimbabwe, Chile, Canada, the European Communities, Singapore on behalf of the ASEAN contracting parties, Australia, Japan and the United States spoke. The Council took note of the statements and agreed to revert to this matter at a future meeting. At its meeting on 27 October 1993, the representatives of Brazil also on behalf of Argentina, Canada, Chile, Colombia, El Salvador, Guatemala, Thailand, Venezuela and Zimbabwe, and the European Communities informed the Council of their Governments' first rounds of consultations with the United States on this matter. The representative of the United States spoke. The Council took note of the statements and agreed to revert to this matter at a future meeting. (iv) Section 337 of the Tariff Act of 1930 (C/M/266) In November 1989, the Council had adopted the Panel report (BISD 36S/345). At the Council meeting on 22 September 1993, the representative of Japan called on the United States to at least refrain from taking new actions under Section 337, and once again urged it to implement the Panel's recommendations faithfully and without further delay. The representative of the United States spoke. (v) Restrictions on imports of tuna - Recourse by the European Communities (C/M/267) At its meeting on 27 October 1993, the Chairman informed the Council that, in a communication addressed to him on 1 October, the Chairman of the Panel on this matter had indicated that, as a result ofunforeseen circumstances, the Panel had beenunable to conclude its work withinthe six-month period stipulated in paragraph F(f)5 of the April 1989 Decision on improvements to the GATT dispute settlement rules and procedures (BISD 36S/61). The Panel's Chairman had assured him, nevertheless, that the Panel would be able to conclude its work within the nine-month period stipulated in paragraph F(f)6 of the April 1989 Decision. The representative of Venezuela spoke. (f) Venezuela - Actions on imports of cement from Mexico (C/M/263) At its meeting on May 1993, the representative ofmexico informed the Council that Mexico had requested Article XXIII: 1 consultations with Venezuela regarding a High Court decision to freeze customs clearance formalities for a shipment of 5,000 tonnes of cement from Mexico and a subsequent

26 Page 26 decision by the legal authorities to conduct an anti-dumping investigation into imports ofgrey Portland cement from Mexico. The representative of Venezuela spoke. 22. 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 (C/M/261, 262, 263, 264, 265, 266, 267) In July 1992, in the course of its discussion on the Director-General's report on status of work in panels and implementation of panel reports, the Council had agreed that its Chairman would hold consultations to see whether and how the question of the Council's monitoring of the implementation of panel reports in accordance with paragraph 1.3 of the April 1989 Decision on improvements to the GATT dispute settlement rules andprocedures (BISD 36S/6 1) shouldbe dealt with incouncil meetings. In September 1992, the Council had agreed that this matter would continue to appear on the Agenda in its present form until further informal consultations thereon had been concluded. In March 1993, the Chairman announced that his consultations had shown that from a purely procedural point of view, the applicability or scope of the April 1989 Decision did not extend to panel reports which predated it and, consequently, that they should not be listed or considered under this item on the Council's agenda. It had been pointed out, in this connection, that contracting parties retained the right to raise any issues related to those panel reports under separate agenda items. It had therefore been understood that this item would continue to appear on the agenda in its present form. At its meeting on 9-10 February 1993, the Council considered this matter. The representatives of the United States, Canada, Australia, the European Communities, Brazil, Argentina, Chile and Mexico spoke. At its meeting on 24 March 1993, the Council again considered this matter. The representatives of Canada, the United States, Australia, Brazil. Chile and Korea spoke. At its meeting on May 1993, the Council again considered this matter. The representatives of the United States, Canada, Australia and Brazil spoke. At its meeting on June 1993, the Council again considered this matter. The representative of Canada, Brazil, Australia and the United States spoke.

27 Page 27 At its meeting on 21 July 1993, the Council again considered this matter. The representatives of the United States, Canada and Brazil spoke. At its meeting on 22 September 1993, the Council again considered this matter. The representatives of the United States, Canada, Brazil and Australia spoke. At its meeting on 27 October 1993, the Council again considered this matter. The representatives of the United States, Canada and Brazil spoke. 23. Customs unions and free-trade areas: regional agreements (a) ASEAN FreeTrade Area - Common Effective Preferential Tariff (C/M/261) At its meeting on 9-10 February 1993, the Council considered a communication from the United States (L/7175) concerning the Common Effective Preferential Tariff (CEPT) scheme among the ASEAN countries. The representatives of the United States, Malaysia on behalf of the ASEAN contracting parties, Brazil on behalf of the contracting parties members of the Southern Common Market (MERCOSUR), India, Colombia, Mexico, Chile, Pakistan, Finland on behalf of the Nordic countries, Hong Kong, the European Communities, Egypt, New Zealand, Switzerland, Australia, Korea, Morocco and Japan spoke. The Council took note of the statements and agreed to revert to this item at a future meeting. (b) Central European Free-Trade Agreement (C/M/261) At its meeting on 9-10 February 1993, the representative of Poland, also on behalfof the Czech Republic, Hungary and the Slovak Republic, said that on 21 December 1992 the four countries had signed a Central European Free-Trade Agreement which was expected to take effect on 1 March 1993 and would be duly notified under the relevant GATT provisions. The Council took note of the statement. (c) Customs union between the Czech Republic and the Slovak Republic (C/M/263, 265) At its meeting on May 1993, the Council considered ajoint communication from the parties to the Agreement on the Customs Union between the Czech Republic and the Slovak Republic (L/7212). The representative of the Czech Republic also on behalf of the Slovak Republic spoke.

28 Page 28 The Council took note of the statement, agreed to establish a working party and authorized its Chairman to designate the Chairman of the Working Party in consultation with primarily interested contracting parties. At its meeting on 21 July 1993, the Chairman informed the Council that Mr. J.W.P. Wong (Hong Kong) had agreed to serve as Chairman of the Working Party. The Council took note of this information. (d) EEC - Interim Agreements with the Czech and Slovak Federal Republic. Hungary and Poland (C/M/262) In April 1992, the Council had established a Working Party to examine this matter, and in June had taken note of the Working Party's Chairmanship. At its meeting on 24 March 1993, the Chairman informed the Council that as the appointed Chairman ofthe Working Party, Mr. Park (Korea), would soon be leaving Geneva, Mr. Bisley (New Zealand) had agreed to replace him and to chair the Working Party. The Council took note of this information. (e) EEC - Association Agreements with Romania and Bulgaria (C/M/263) At its meeting on May. 1993, the representative of the European Communities informed the Council that two association agreements had recently been signed between the Community and Romania and Bulgaria, and that interim agreements - which took up the trade provisions of the association agreements - had recently entered into force and would be notified to contracting parties in the near future. The Council took note of the statement. (f) EFTA - Czech and Slovak Federal Republic Free-Trade Agreement (C/M/264) In July 1992, the Council had established a working party to examine the EFTA - Czech and Slovak Federal Republic Free-Trade Agreement. At the Council meeting on June 1993, the Chairman drew attention to a communication from Sweden on behalfof the EFTA States and the Czech and Slovak Republics informing contracting parties that, following the dissolution ofthe Czech and Slovak Federal Republic, two separate Protocols of succession had been signed with the two new Republics so that there were now two separate but identical Free-Trade Agreements between the EFTA States and the Czech and Slovak Republics, the form and content of which were the same as in the original Agreement. TheCouncil took note ofthe statement and agreedto modify theterms of referenceofthe Working Party, previously established to examine the earlier Free-Trade Agreement, to take account of this change. The Council also agreed that membership in the Working Party would continue to be open to all contracting parties indicating their wish to serve on it, and further agreed that Mr. Kesavapany (Singapore) would continue to serve as Chairman of the Working Party.

29 Page 29 (g) EFTA - Israel Free-Trade Agreement (C/M/261, 262) At their Forty-Eighth Session in December 1992, the CONTRACTING PARTIES had been informed by the representatives of Norway, on behalfof the EFTA countries, and Israel of the signing of a free-trade agreement between them, the text of which had recently been circulated in L/7129 and Add. 1. At its meeting on 9-10 February 1993, the Chairman proposed that the Council establish a working party to examine the EFTA-Israel Free-Trade Agreement, and authorize him to designate its Chairman in consultation with the delegations principally concerned. The Council so agreed. At its meeting on 24 March 1993, the Chairman informed the Council that Mr. P. Gosselin (Canada) had agreed to serve as Chairman of the Working Party. (h) EFTA - Romania Free-Trade Agreement (C/M/263, 264, 265) At the Council meeting on May 1993, the representative ofsweden, on behalfof the EFTA countries, provided information on the Free-Trade Agreement between the EFTA countries and Romania, signed on 10 December 1992, the text of which, together with other relevant documentation, had recently been communicated to contracting parties (L/7215 and Add. 1). The Council took note of the statement. At its meeting on June 1993, the Chairman proposed that the Council establish a working party and authorize him to designate its Chairman in consultation with the delegations principally concerned. The Council so agreed. At its meeting on21 July 1993, the Chairman informed the Council that Mr. P. Gosselin (Canada) had agreed to serve as Chairman of the Working Party. (i) Fourth Lomé Convention (C/M/261, 262) At its meeting on 9-10 February 1993, the Council considered a communication from the European Communities and the ACP Group of States in L/7153 containing information on the Fourth ACP-EEC Convention of Lomé. The representatives of the European Communities, Argentina, the United States, Japan, Colombia, Canada, Brail, Costa Rica, India, Australia, Uruguay and Venezuela, and the Chairman spoke. The Council took note of the statements, agreed to establish a working party, and authorized its Chairman to designate the Chairman of the Working Party in consultation with the principally interested contracting parties.

30 Page 30 At its meeting on 24 March 1993, the Chairman informed the Council that Mr. J.W.P. Wong (Hong Kong) had agreed to serve as Chairman of the Working Party. (j) Free-Trade Agreements between Estonia. Latvia and Lithuania, and (i) Finland (C/M/261) Attheir Forty-Eighth Session in December 1992, the CONTRACTING PARTIES had established a Working Party to examine the Free-Trade Agreements between Finland and Estonia, Latvia and Lithuania, and had authorized the Council Chairman, in consultation with the parties principally interested, to designate its Chairman. At its meeting on 9-10 February 1993, the Chairman informed the Council that Mr. Seade (Mexico) had agreed to serve as Chairman of the Working Party. (ii) Switzerland (C/M/263, 264) At the Council meeting on May 1993, the representative of Switzerland provided information on recently signed Free-Trade Agreements between Switzerland and Estonia, Latvia and Lithuania, the texts of which had recently been communicated to contracting parties (L/7223 and Add. 1). The Council took note of the statement. At its meeting on June 1993, the Chairman proposed that the Council establish a working party and authorize him to designate its Chairman in consultation with the delegations principally concerned. The Council so agreed. (k) North American Free-Trade Agreement (NAFTA) (C/M/261) AttheCouncil meeting on 9-10 February 1993, the representativeofmexico provided information on the North American Free-Trade Agreement (NAFTA), signed on 17 December 1992, between Canada, Mexico and the United States, and said that the signatories had ensured that the Agreement fully respected the requirements as well as the spirit of the General Agreement. The representatives of Canada, the United States, Japan, Brazil, Korea, the European Communities, Malaysia on behalf of the ASEAN contracting parties. and Hong Kong spoke. The Council took note of the statements and agreed to revert to this matter at a future meeting. (1) EFTA - Bulgaria Free-Trade Agreement (C/M/265, 267) At the Council meeting on 21 July 1993, the representative of Austria, on behalf of the EFTA countriesand Bulgaria, provided information on thefree-trade Agreement between the EFTA countries and Bulgaria, signed on 29 March 1993, the text of which had recently been communicated to contracting parties (L/7257 and Add. 1).

31 Page 31 The Council took note of the statement. At its meeting on 27 October 1993, the Chairman proposed that the Council establish a working party to examine this Agreement, and authorize him to designate its Chairman in consultation with the delegations principally concerned. The Council so agreed. (m) South Asian Association for Regional Cooperation (SAARC) - Agreement on a Preferential Trading Arrangement (C/M/266) At the Council meeting on 22 September 1993, the representative of Bangladesh on behalf of the members ofthe South Asian Association for Regional Cooperation (SAARC), provided information regarding an Agreement on the SAARC Preferential Trading Arrangement (SAPTA), entered into between their governments pursuant to paragraph 2(c) of the Enabling Clause 12 on 11 April Waivers under Article XXV:5 (a) German unification: Transitional measures adopted by the European Communities (C/M/261, 263) At their Forty-Sixth Session in December 1990, the CONTRACTING PARTIES had granted a waiver to the European Communities until 31 December 1992 (L/6792) to permit it to apply transitional measures following German unification, and had, at the same time, established a working party to examine these measures. At their Forty-Eighth Session in December 1992, the Chairman of the Working Party had informed the CONTRACTING PARTIES that the report of the Working Party would be available for consideration by the Council at its first meeting in At its meeting on 9-10 February 1993, the Council considered the Working Party's report (L/7119). The representative of the European Communities spoke. The Council took note of the statement and adopted the report in L/7119. At its meeting on May 1993, the Council considered a communication from the European Communities (L/7199 and Corr. 1) requesting a waiver from the provisions of Article I: 1 to permit it to apply certain transitional measures adopted in the context ofgerman unification, as well as a draft decision to this effect (C/W/730 and Add. 1). The representatives ofthe EuropeanCommunities, Argentinaand Brazil, and thechairman spoke. The Council took note of the statements, approved the text of the draft decision in C/W/730 and Add. 1, and recommended its adoption by the CONTRACTING PARTIES by postal ballot. The Decision was adopted on 14 June 1993 (L/7246). 12Differential and More Favourable Treatment, Reciprocity and Fuller Participation of Developing Countries (BISD 26S/203).

32 Page 32 (b) United States - Andean Trade Preference Act (C/M/262) In February 1992, the Council had established a Working Party to examine the United States Andean Trade Preference Act (ATPA). At its meeting on 24 March 1993, the Council considered the Working Party's report (L/7190). The representatives of the United States, Australia, New Zealand, Colombia and Bolivia, and the observer from Ecuador spoke. The Council took note of the statements, adopted the report in L/7190, and agreed that the United States should submit its first annual report by early 1994 and that the annual reporting requirements in paragraph 6 of the Waiver be then met by the submission of reports annually thereafter. (c) Harmonized System (i) Peru - Establishmentof a new Schedule XXXV (C/M/263) At its meeting on May 1993, the Council considered a request by Peru (L/7211) for an extension of a waiver already granted for the establishment of a new Schedule, and a draft decision to this effect (C/W/731). The Council approved the text ofthe draft decision in C/W/731 and recommended its adoption by the CONTRACTING PARTIES by postal ballot. The Decision was adopted on 14 June 1993 (L/7245). (il) ArgentinaBangladeshBrazil, Chile,Israel, Mexico, Morocco, Pakistan. Sri Lanka and Uruguay (C/M/264) At its meeting on June 1993, the Council considered request by Argentina (L/7230), Bangladesh (L/7221), Brazil (L/7234). Chile (L/7236), Israel (L/7231), Mexico (L/7227). Morocco (L/7237), Pakistan (L/7233), Sri Lanka (L/7226) and Uruguay (L/7222) for extensions of waivers already granted in connection with their implementation of the Harmonized System. The representative of Sweden, on behalf of the Nordic countries, proposed that the extension of these waivers be based on an understanding that the countries involved would provide a full and detailed report to the Committee on Tariff Concessions on steps taken towards finalizing their HS implementation during the period covered by the respective waivers. The Committee should hold a full discussion on the basis ofthese reports and be asked to report to the Council on the matter in advance of any requests for additional extensions of waivers. The representatives Australia, the EuropeanCommunities, Switzerland, the United States, India, Egypt, Jamaica, Nigeria, Canada, Colombia, Chile, Brazil, Peru and Argentina, and the Chairman spoke. The Council took note of the statements and invited the Committee on Tariff Concessions to include on its agenda at its next meeting the issue raised by Sweden on behalf ofthe Nordic countries. The Council then approved the texts of the draft decisions (C/W/738 - Argentina; C/W/733 - Bangladesh. C/W/742 - Brazil; C/W/743 - Chile: C/W/739 - Israel; C/W/736 - Mexico; C/W/744 - Morocco; C/W/741 - PakistanC/W/735 - Sri Lanka: and C/W/734 - Urguay) and recommended their adoption by the CONTRACTING PARTIES allots.

33 Page 33 The Decisions were adopted on 19 July 1993 (L/ Argentina;L/ Bangladesh; L/ Brazil; L/ Chile; Israel; L/ Mexico; L/ Morocco; L/ Pakistan; L/ Sri Lanka; and L/ Uruguay). (iii) Jamaica and Trinidad and Tobago (C/M/265) At its meeting on21 July 1993, the Council considered requests by Jamaica (L/7263) and Trinidad and Tobago (L/7262) for waivers in connection with their implementation of the Harmonized System, and draft decisions to this effect (C/W/750 and C/W/749, respectively). The representatives ofjamaica, Trinidad and Tobago, the United States, the European Communities and Argentina, and the Chairman spoke. The Council took note of the statements, approved the texts of the draft decisions in C/W/749 and C/W/750, and recommended their adoption by the CONTRACTING PARTIES by postal ballot. The Decisions were adopted on 20 August 1993 (L/ Jamaica and L/ Trinidad and Tobago). (iv) Venezuela (C/M/266) At its meeting on 22 Setember 1993, the Council considered a request by Venezuela (L/7238) for a waiver in connection with its implementation of the Harmonized System, and a draft decision to this effect (C/W/745). The representatives of Venezuela and the European Communities spoke. The Council took note of the statements, approved the text of the draft decision in C/W/745, and recommended its adoption by the CONTRACTING PARTIES by postal ballot. The Decision was adopted on 22 October 1993 (L/7316). (d) Egypt- Renegotiation of Schedule LXIII (C/M/264) By their Decision of 13 August 1992 (L/7071), the CONTRACTING PARTIES had waived Egypt's obligations under Article Il until 30 June 1993 to enable it to implement its new tariff. At its meeting on June 1993, the Council considered a request by Egypt for an extension of the waiver until 31 December 1993 (L/7229), and a draft decision to this effect (C/W/737). The Council approved the text of the draft decision in C/W/737, and recommended by the CONTRACTING PARTIES by postal ballot. ts adoption The Decision was adopted on 19 July 1993 (L/7281). (e) Senegal-.Renegotiation of Schedule XLX (C/M/264) BytheirDecisionof7 December 1990(BISD 37S/295), as extendeduntil 30 June 1993 (L/7141), the CONTRACTING PARTIES had waived Senegal's obligations under Article II to enable it to implement its new tariff.

34 Page 34 At its meeting on June 1993, the Council considered a request by Senegal for a further extension of the waiver until 31 December 1993 (L/7232), and a draft decisionto this effect (C/W/740). The Council approved the text of the draft decision in C/W/740 and recommended its adoption by the CONTRACTING PARTIES by postal ballot. The Decision was adopted on 19 July 1993 (L/7282). (f) Zaire - Renegotiation of Schedule LXVIII (C/M/264) Bytheir Decisionof5 December 1989 (BISD 36S/435), asextendeduntil 30 June 1993 (L/7147), the CONTRACTING PARTIES had waived Zaire's obligations under Article Il to enable it to implement its new tariff. At its meeting on June 1993, the Council considered a request by Zaire for a further extension of the waiver until 31 December 1993 (L/7239), and a draft decision to this effect (C/W/746). The Council approved the text of the draft decision in C/W/746, and recommended its adoption by the CONTRACTING PARTIES by postal ballot. The Decision was adopted on 19 July 1993 (L/7283). (g) Tunisia - Temporary suspension of bound duties13 (C/M/267) At its meeting on 27 October 1993, the Council considered a request by Tunisia (L/731 1) for a temporary waiver from its obligations under Article II, and a draft decision to this effect (C/W/758). The representatives of Tunisia, Morocco, the United States, Singapore on behalf of the ASEAN contracting parties, Canada, Australia, the European Communities, Turkey, Switzerland, Sweden on behalf of the Nordic countries, and Egypt, and the Chairman spoke. The Council took note of the statements and agreed to revert to this matter at its next meeting. (h) Zambia - Renegotiation of Schedule LXXVIII (C/M/267) At its meeting on 27 October 1993, the Council considered a request by Zambia for a waiver from the provisions of Article Il (L/7306), and a draft decision to this effect (C/W/756). The representative of Zambia spoke. The Council took note of the statement, approved the text of the draft decision in C/W/756, and recommended its adoption by the CONTRACTING PARTIES by postal ballot. (i) Reports under waivers - United States Agricultural Adjustment Act - Thirty-fifth anal report by the United States (C/M/261) In Apriland May 1990, the Council hadconsidered thethirty-first and thirty-second annual reports submitted by the United States, as well as the report of a Working Party established to examine the 13See also sub-point 3(c).

35 Page 35 twenty-ninth and thirtieth annual reports. In May 1990, the Council had agreed to revert to both these matters at a future meeting. InMarch 1992, the Council had considered the thirty-third and thirty-fourth annual reports submitted by the United States, and had agreed to revert to this matter at a future meeting. At its meeting on 9-10 February 1993, the Council considered the thirty-fifth annual report submitted by the United States (L/7163). The representatives of the United States, New Zealand, Brazil, Canada, Argentina, Uruguay, Australia and the European Communities spoke. The Council took note of the statements and agreed to revert to this matter at a future meeting. 25. Accession matters (a) Accessions (i) Albania (C/M/267) At their Forty-Eighth Session in December 1992, thecontracting PARTIES had established a working party to examine Albania's request for accession to the General Agreement, and had authorized the Council Chairman to designate the Chairan ofte Working Party in consultation with representatives of contracting parties and with the representative of Albania. At its meeting on 27 October 1993, the Chairman informed the Council that Mr. Pinto de Lemos (Portugal) had agreed to serve as Chairman of the Working Party. (ii) Czech Republic and Slovak Republic (C/M/261) At their Forty-Eighth Session in December the CONTRACTING PARTIES had agreed that the Czech Republic and the Slovak Republic should accede to the General Agreement, pursuant to Article XXXIII, under the same terms as those previously applied by the former Czech and Slovak Federal Republic, without carrying out any negotiations, and had also agreed on transitional arrangements for the interim period until the necessary procedures had been fulfilled (L/7155). The CONTRACTING PARTIES had also decided to invite the Secretariat to prepare draft Protocols of Accession for the Czech Republic and the Slovak Republic, as well as thecorresponding draft decisions, which would both be submitted for approval by the Council at its first meeting in 1993 (L/7156). At its meeting on 9-10 February 1993, the Council considered the draft decisions and Protocols of Accession for the Czech Republic (C/W/725) and the Slovak Republic (C/W/726). The representatives of the Czech Republic, the Slovak Republic, Poland, Uruguay, Hungary, Brazil, Romania, Mexico, Malysia on behalfofthe ASEAN contracting parties, Tanzania, India, Israel, Hong Kong, the United States, Peru, Egypt, Morocco, Japan, Cuba and Tunisia spoke. Several other representatives wished to be placed on record as supporting and welcoming the two requests. The Council took note of the statements, approved the texts of the draft Protocols of Accession and of the draft decisions in C/W/725 and C/W726, and agreed that the decisions be submitted to votes by the CONTRACTING PARTIES by postal ballots.

36 Page 36 The Decisions were adopted on 19 February 1993 (L/ Czech Republic; and L/ Slovak Republic). (iii) Belarus (C/M/267) At its meeting on 27 October 1993, the Council considered a communication from Belarus (L/7297) concerning its interest in acceding to the General Agreement under Article XXXIII. The observer from Belarus spoke. The Council took note of the statement, agreed to establish a working party to examine Belarus' request, and authorized the Council Chairman to designate the Chairman of the Working Party in consultation with representatives of contracting parties and with the representative of Belarus. (iv) Croatia (C/M/267) At its meeting on 27 October 1993, the Council considered a communication from Croatia (L/7298) concerning its interest in acceding to the General Agreement under Article XXXIII. The observer from Croatia spoke. The Council took note of the statement, agreed to establish a working party to examine Croatia's request, and authorized the Council Chairman to designate the Chairman of the Working Party in consultation with representatives of contracting parties and with the representative of Croatia. (v) Ecuador (C/M/261) In September 1992, the Council had established a working party to examine Ecuador's request for accession to the General Agreement, and had authorized the Council Chairman to designate the Chairman of the Working Party in consultation with representatives of contracting parties and with the representative of Ecuador. At its meeting on 9-10 February 1993, the Chairman informed the Council that Mr. Manhusen (Sweden) had agreed to serve as Chairman of the Working Party. (vi) Mongolia (C/M/262) In October 1991, the Council had established a working party to examine Mongolia's request for accession to the General Agreement, and had authorized the Council Chairman to designate the Chairman of the Working Party, in consultation with the representatives of contracting parties and with the representative of Mongolia At its meeting on 24 March 1993, the Chairman informed the Council that Mr. W. Lang (Austria) had agreed to serve as Chairman of the Working Party.

37 Page 37 (vii) Panama (C/M/266) In October 1991, the Council had established a Working Party to examine Panama's request for accession to the General Agreement, and had authorized the Council Chairman to designate its Chairman in consultation with representatives of contracting parties and with the representative of Panama. At its meeting on 22 September 1993, the Chairman informed the Council that Mr. Tironi Barrios (Chile) had agreed to serve as Chairman of the Working Party. (viii) Paraguay (C/M/263, 264) In March 1989, the Council had agreed to reactivate the Working Party established in November 1974 to examine Paraguay's request for accession to the General Agreement. At its meeting on May 1993, the Council had before it the report of the Working Party (L/7210 and Add. 1 and Add. 1/Corr. 1). The Chairman informed the Council that some contracting parties had requested postponement of consideration of the report until the next Council meeting and that Paraguay, while expressing its preference for having the report considered at that meeting, had acceded to that request. The Council took note of this information and agreed to postpone consideration of the Working Party's report until its next meeting. At its meeting on June 1993, the Council considered the Working Party's report. The observer from Paraguay spoke. The vast majority ofcouncil members indicated their support and welcome for the accession of Paraguay. The Council approved the text of the draft decision and the text ofthe draft Protocol of Accession, agreed that the draft decision be submitted to a vote by postal ballot, adopted the Working Party's report in L/7210 and Add. 1 and Add. I/Corr. 1, and took note of the statement and of the expressions of support. (ix) Russian Federation (C/M/264, 267) At its meeting on June 1993, the Council considered communications from the Russian Federation (L/7240 and L/7243) concerning its interest in acceding to the General Agreement under Article XXXII. The representatives ofthe Russian Federation (as an observer), Egypt, the United States, Mexico, Turkey, Brazil, Canada, Korea, the Czech Republic, Hungary, Japan, Switzerland, Hong Kong, Norway on behalf of the Nordic countries, Morocco, New Zealand, Australia, Austria, Poland, the European Communities, India, Malaysia on behalf of the ASEAN contracting parties, and Pakistan spoke. The representatives of Argentina, Colombia, El Salvador, Tunisia, Bangladesh, Côte d'ivoire, Cameroon, Chile, Israel, Costa Rica, Cuba, the Dominican Republic, Romania, Bolivia, Peru, Venezuela, Malta, Dominica, Jamaica, Nigeria, Uruguay, Senegal, South Africa and Sri Lanka, among others, wished to be placed on record as supporting and welcoming the Russian Federation's request.

38 Page 38 The Council took note of the statements, agreed to establish a working party to examine the Russian Federation's request, and authorized the Council Chairman to designate the Chairman of the Working Party in consultation with representatives of contracting parties and with the representative of the Russian Federation. At its meeting on 27 October 1993, the Chairman informed the Council that Mr. Rossier (Switzerland) had agreed to serve as Chairman of the Working Party. At its (x) Saudi Arabia (C/M/265, 267) (L/7248) concerning its meeting on 21 July 1993, the Council considered a communication from Saudi Arabia interest in acceding to the General Agreement under Article XXXIII. The representatives of Saudi Arabia (as an observer), Pakistan, Tunisia, Morocco, Egypt, Senegal, Singapore on behalf of the ASEAN contracting parties, Tanzania, the EuropeanCommunities, Canada, Japan, Sweden on behalf of the Nordic countries, Korea and Argentina spoke. The representatives of Antiguaand Barbuda, Australia, Austria, Bangladesh, Bolivia, Brazil, Cameroon, Chile, Colombia, Cuba, Dominica, El Salvador, Ghana, Hong Kong, Hungary, India, Jamaica, Kuwait, Madagascar, Malta, Mexico, Myanmar, New Zealand, Nigeria, Paraguay, Peru, Sri Lanka, St. Lucia, St. Vincent and the Grenadines, Switzerland, Trinidad and Tobago, Turkey, the United States, Uruguay, Venezuela and Zambia, among others, wished to be placed on record as supporting and welcoming Saudi Arabia's request. The Council took note of the statements, agreed to establish a working party to examine Saudi Arabia's request, and authorized the Council Chairman to designate the Chairman ofthe Working Party in consultation with representatives of contracting parties and with the representative of Saudi Arabia. At its meeting on 27 October 1993, the Chairman informed the Council that Mr. Shannon (Canada) had agreed to serve as Chairman of the Working Party. (b) Complementary procedures to be followed in negotiations on accession to GATT (C/M/267) At the Council meeting on 27 October 1993, the Chairman said that, following a proposal by Brazil, he had carried out a number of informal consultations on the issue of how to refine further the documentation to be made available to delegations in the course of GATT accession negotiations. As a result of these consultations, he proposed that certain procedures, which he read out, should thenceforth be followed inthe organization and pursuit of negotiations, without prejudice to procedures currently applied. The Council took note of the statement and agreed to proceed as proposed by the Chairman in dealing with requests for accession to the General Agreement (L/7317). 26. Yugoslavia - Status as a contracting party (C/M/264) At the Council meeting on June 1993, the Chairman said that since the decision by the Council at its meeting in June 1992, according to which the representative of the Federal Republic of Yugoslavia should remain from participating in the business ofthe Council, the United Nations General

39 Page 39 Assembly had adopted Resolution 47/1. Taking into account this Resolution, and after consultations with members of the Council, he proposed that the decision of 19 June 1992 be modified as follows: "The Council considers that the Federal Republic of Yugoslavia (Serbia and Montenegro) cannot continue automatically the contracting party status of the former Socialist Federal Republic of Yugoslavia in the GATT, and therefore decides that the Federal Republic of Yugoslavia (Serbia and Montenegro) should apply for accession to the GATT and that it shall not participate in the work of the Council and its subsidiary bodies. The Council further invites other committees and subsidiary bodies of the GATT, including the Committees of the Tokyo Round Agreements and the Committee on Trade and Development, to take the necessary decisions in accordance with the above." The Council so agreed. 27. Japan - New package of economic measures (C/M/263) At its meeting on May 1993, the representative of Japan informed the Council of his Government's recently announced new package of economic measures, details of which had been communicated to contracting parties in L/7213. The representatives of Canada and Australia spoke. 28. US/Japan Framework Agreement (C/M/265) At its meeting on 21 July 1993, the representatives of the United States and Japan informed the Council that on 10 July their Governments had agreed on a new Framework for talks to open markets, encourage growth and address persistent imbalances in Japan's trade with the world. The representative of the European Communities spoke. 29. Training activities (C/W/267) At the Council meeting on 27 October 1993, Mr. Hoda, Deputy Director-General, introduced the Director-General's annual report on the Secretariat's training activities (L/7305). The Chairman spoke. The Council took note of the statements and of the report in L/ Australia - Assistance to the Baltic States on GATT matters (C/M/263) At its meeting on May 1993, the representative of Australia informed the Council of recent initiatives taken by his Government regarding the provision of technical assistance to Estonia, Latvia and Lithuania. The Council took note of the statement.

40 Page International Trade Centre UNCTAD/GATT (a) Report of the Joint Advisory Group (C/M/261) At its meeting on 9-10 February 1993, the Council considered the report of the Joint Advisory Group of the International Trade Centre (ITC) on its twenty-fifth session (ITC/AG(XXV)/134). The Chairman of the Group introduced the report. The representatives of Argentina, Australia, Bangladesh, Bolivia, Brazil, Cameroon, Canada, Chile, Colombia, Cuba, Egypt, El Salvador, India, Israel, Jamaica, Japan, Malta, Morocco, Myanmar, the Philippines, Senegal, Singapore and Tanzania, among others, wished to place on record their appreciation for the ITC's important and valuable work. The Council took note of the statements and adopted the report. (b) Appointment of a new Executive Director (C/M/261, 262, 263, 264) In November 1992, the Council had requested the Director-General to hold further consultations regarding the appointment of a new Executive Director of the International Trade Centre (ITC). At its meeting on 9-10 February 1993, the Deputy Director-General informed the Council that no consensus had been reached in consultations he had held at the request and on behalf of the Director- General, and that it was his intention to hold further consultations in the near future. The representatives of Switzerland, Norway on behalf of the Nordic countries, El Salvador, Bolivia, Denmark, Nigeria, Canada, the European Communities, Malysia on behalf of the ASEAN contracting parties, Zambia, Argentina, Egypt, India and Tanzania, and the Chairman spoke. The Council took note of the statements, agreed to invite the Director-General to pursue, as a matter of urgency, his informal consultations on the issues related to the ITC, in particular on the appointment of a new Executive Director, and further agreed to revert to this matter at its next meeting. At its meeting on 24 March 1993, the Deputy Director-General reported on consultations he had held regarding this matter at the request and on behalf of the Director-General. Regrettably, no consensus had been reached, and he therefore intended to hold further consultations on this issue, as well as on the question of whether a meeting of the Joint Advisory Group (JAG) should be held before the Executive Director had been appointed. The representative of Finland on behalf of the Nordic countries spoke. The Council took note of the statements and agreed to revert to this matter at its next meeting. At the Council meeting on May 1993, the Deputy Director-General reported on his consultations. The representatives of Peru, El Salvador and Colombia spoke. At thecouncil meeting on June 1993, the Deputy Director-General reported on two further consultations he had held regarding the appointement of a new Executive Director. He said he did

41 Page 41 not consider it would be fruitful to hold further consultations; instead, some time should be given to those governments wishing to pursue this matter in New York to do so. The Council took note of the statement. 32. Administrative and financial matters (a) Committee on Budget, Finance and Administration (i) Designation of Chairman14 (C/M/261) At their Forty-Fourth Session in November 1988, the CONTRACTING PARTIES had taken note of a suggestion by the Council Chairman concerning the appointment of presiding officers of standing bodies (SR.44/2). At its meeting on 9-10 February 1993, the Council approved the appointment of Mr. Kesavapany (Singapore) as Chairman of the Committee on Budget, Finance and Administration. (ii) Reports (C/M/261, 263, 266, 267) At the Council meeting on 9-10 February 1993, the Chairman, in his capacity as former Chairman ofthe Committee on Budget, Finance and Administration, introduced the Committe's report in L/7158 and Corr. 1. of its The Council took note of the statement and that the Committee's recommendation inparagraph 25 report (L/7158 and Corr. 1) had had to be withdrawn, and adopted the report. At the Council meeting on May 1993, the Chairman of the Committee on Budget, Finance and Administration introduced the Committee's report in L/7198/Rev.1. The representatives of the United States, Korea, Hong Kong, Brazil, Australia, the Philippines and New Zealand, and the Director-General spoke. The Council took note of the statements, approved the Committee's specific recommendations in paragraphs 9, 23, 24, 25, 27 and 28 of its report (L/7198/Rev.1), and adopted the report. At the Council meeting on 22 September 1993, the Chairman of the Committee on Budget, Finance and Administration introduced the Committee's report in L/7288. The Council took note of the statement, approved the Committee's specific recommendations in paragraphs 7, 15, 27, 28 and 29 of its report (L/7288), and adopted the report. At the Council meeting on 27 October 1993, the Chairman of the Committee on Budget, Finance and Administration introduced the Committee's report in L/7310. The Council took note of the statement, approved the Committee's specific recommendations in paragraphs 21, 29 and 38 of its report (L/7310), and approved the draft resolution referred to in paragraph 14. TheCouncil thenadopted the report in L/7310, including therecommendations contained 14Carried in Council Minutes under "Appointment of presiding officers of standing bodies".

42 Page 42 therein and the Resolution on the expenditure of the CONTRACTING PARTIES in 1994 and the ways and means to meet that expenditure. (b) Office of Director-General - Appointment of a new Director-General (C/M/261, 263) At the Forty-Eighth Session ofthe CONTRACTING PARTIES in December 1992, the Chairman of the CONTRACTING PARTIES had noted that the present Director-General's term ofoffice expired on 30 June 1993 and had announced that, pursuant to the procedures for the future appointment of a Director-General (BISD 33S/55), his successor would begin consultations early in 1993 regarding the appointment of a successor to the present Director-General. At the Council meeting on 9-10 February 1993, the Chairman of the CONTRACTING PARTIES said that he had initiated these consultations, and would keep the Council informed on the progress thereof. The Council took note of the statement. At its meeting on May 1993, the Chairman of the CONTRACTING PARTIES informed the Council that three formal candidates for the post of Director-General had been put forward, and announced his intention to intensify his consultations in the coming days with the hope of being able to conclude them as soon as possible, and in any case by the end of the month.15 (c) Office of Deputy Director-General - Appointment of the Deputy Directors-General'16 (C/M/264, 265) At its meeting on June 1993, the Chairman of the CONTRACTING PARTIES informed the Council that he had conveyed to the Director-General designate the wish of the contracting parties that the latter begin the process of selection of the Deputy Directors-General prior to his assumption of office on 1 July, and to conclude it as quickly as possible. The Director-General designate had accepted to do so and had asked that nominations for the posts be addressed to him through the Secretariat. At its meeting on 21 July 1993, the Director-General informed the Council that, as indicated inc/185, hehad decidedto appoint Mr. Anwarul Hoda, Mr. Warren A. Lavoreland Mr. Jesus Seade as Deputy Directors-General. 15The new Director-General, Mr. Peter D. Sutherland, was appointed by the CONTRACTING PARTIES at a Special Session on 9 June 1993 (5SS/SR/1). '"At their Special Session on 9 June 1993, the CONTRACTING PARTIES agreed to establish a third post of Deputy Director-General (5SS/SR/1).

43 Page Observer status (a) Requests (i) Azerbaijan (C/M/261) At its meeting on 9-10 February 1993, the Council considered a request for observer status from Azerbaijan (L/7168). The Chairman suggested that, as for other such requests that had recently been brought before the Council, the understandings regarding observers that had been noted at the May 1990 Council meeting in connection with the former USSR's request for observer status should also apply to the Government of Azerbaijan if the Council approved its request. The Council took note of the statement, agreed to the Chairman's suggestion and agreed to grant Azerbaijan observer status. (ii) Croatia (C/M/263) At its meeting on May 1993, the Council considered a request for observer status from Croatia (L/7209). The Chairman suggested that, as for other such requests that had been brought before the Council recently, the understandings regarding observers that had been noted at the May 1990 Council meeting in connection with the former USSR's request for observer status should also apply to the Government of Croatia if the Council approved its request. The Council took note of the statement, agreed to the Chairman's suggestion and agreed to grant Croatia observer status. The observer from Croatia spoke. The Council took note of the statement. (iii) Kvrgyzstan (C/M/266) At its meeting on 22 September 1993, the Council considered a request for observer status from Kyrgyzstan (L/7269). The Chairman said thatkyrgyzstan had been advised of the requirements to be met by governments requesting observer status in the Council (L/7286) and, on the understanding that Kyrgyzstan would provide the required information shortly, he proposed that the Council agree to grant it observer status. The Council so agreed. (iv) Former Yugoslav Republic of Macedonia (C/M/267) At the Council meeting on 27 October 1993, the Chairman drew attention to the request for observer status from the Former Yugoslav Republic of Macedonia (L/7308), and proposed that the Council agree to grant that Government observer status. The Council so agreed.

44 Page 44 The observer from the Former Yugoslav Republic of Macedonia spoke. The Council took note of the statement. (b) Council review ofthe status of observers and oftheir rights and obligations (C/M/262, 264, 265, 266) In November 1992, the Council had agreed that consultations concerning the review ofthe status of observers and of their rights and obligations should be conducted early in At its meeting on 24 March 1993, the Chairman informed the Council that he had recently held such consultations and announced his intention to hold further consultations and to keep the Council informed of developments. The Council took note of the statement. At the Council meeting on June 1993, the Chairman announced his intention, on the basis of consultations he had held, to circulate a draft proposal on this subject in time for consideration by the Council at its next meeting. At the Council meeting on 21 July 1993, the Chairman said that his consultations had resulted in agreement on a draft decision concerning observer status for governments in the Council (C/W/748). With regard to the observer status of international organizations in the Council, and of governments and international organizations at sessions ofthe CONTRACTING PARTIES, it was his understanding, on the basis of these consultations, that no further action was required at this stage. With regard to the draft decision in C/W/748, he made the following clarifications: (a) all governments that were currently observers in the Council should provide information under paragraph 1 of the draft decision, unless they were deemed to have done so recently to a satisfactory extent; (b) the five-year period referred to in paragraph 2 of the draft decision would not apply retroactively to governments that were currently observers in the Council; and (c) the draft decision did not affect countries which applied the General Agreement on a de facto basis and which were not observers in the Council. The Council took note of the statement and adopted the Decision (L/7286). At its meeting on 22 September 1993, the Chairman informed the Council that the Decision adopted in July had been communicated to governments having observer status in the Council, and that those governments that appeared not to have supplied as yet the trade policy information that would meet the requirements of the Decision had been invited to do so. 34. Council membership (a) Antigua and Barbuda. Dominica. Guatemala and St. Lucia (C/M/264) At its meeting on June 1993, the Council welcomed Antigua and Barbuda, Dominica, Guatemala and St. Lucia as Council members.

45 (b) Belize, Guvana. Suriname and St. Vincent and the Grenadines (C/M/265) C/W/760 Page 45 At its meeting on 21 July 1993, the Council welcomed Belize, Guyana, Suriname and St. Vincent and the Grenadines as Council members. 35. Procedures for the derestriction of GATT documents (C/M/261, 263, 267) At the Forty-Eighth Session ofthe CONTRACTING PARTIES in December 1992, the outgoing Chairman of the Council had suggested that contracting parties devote attention to revising the procedures for the derestriction ofgatt documents (SR.48/1, page 3). Similar suggestions had also been made by the Council Chairmen at the Forty-Sixth and Forty-Seventh Sessions of the CONTRACTING PARTIES in 1990 and 1991, respectively. At the Council meeting on 9-10 February 1993, the representative of the United States said that this suggestion should be acted upon and that, as a first step, the Secretariat should prepare a factual background note on this master which could provide the basis for informal cosultations by the Council Chairman. The representative of Canada spoke. The Council took note of the statement and agreed that the Secretariat should prepare a background note on the procedures for the derestriction of GATT documents. At its meeting on May 1993, thechairman informed thecouncil that the factual background note requested by the United States would be made available shortly, and announced his intention to hold consultations on this matter with interested parties as soon as the note had been distributed. At its meeting on 27 October 1993, the Chairman informed the Council that he had held two consultations on this matter on the basis of a background note by the Secretariat. Once suggestions had been received from the delegations yet to provide them, he would hold a further consultation on this matter before submitting a draft proposal for consideration by the Council. 36. Items under "Other Business" (C/M/263) At the Council meeting on May 1993, the representative of Switzerland expressed concern that many of the matters raised under 'Other Business' at that meeting had been substantive matters of interest to all contracting parties, and had been known longer than the ten calendar days' convening notice for meetings. He hoped that an attempt would be made in future to place all items of general interest on the airgram convening the Council meeting, so that the Council could hold balanced and effective debates on such matters. TheChairman announced his intentionto hold informal consultations to reviewvarious procedural aspects of the Council's work, including how to handle the 'Other Business' issue.

46 Page Councilworking practices (C/M/264) At the Council meeting on June 1993, the Chairman said that in informal consultations he had held to review certain Council practices in order to streamline and expedite the conduct of business in the Council, it had generally been felt that, while maintaining the flexibility necessary to deal with the often complex and politically sensitive issues which arose in the Council, a certain degree of selfdiscipline should be required for the sake of saving time and increasing efficiency in consideration of Council maters. It would, therefore, not be necessary to propose any new formal procedures for the conduct of Council business: the current pragmatic style of work should be preserved to the maximum extent possible. Onthe other hand, and taking into account the views that had been expressed, he believed that certain practices, which he read out to the Council, would expedite the work of the Council. The Council took note of the statement. 38. Appointmentof presiding officers of standing bodies (C/M/261) At the Council meeting on 9-10 February 1993, pursuant to the CONTRACTING PARTIES' action at their Forty-Fourth Session (SR.44/2), the Chairman announced the results of his consultations. Mr. Witt (Germany) had been proposed as Chairman of the Committee on Balance-of-Payments Restrictions, Mr. Kesavapany (Singapore) as Chairman of the Committee on Budget, Finance and Administration, and Mr. Tironi Barrios (Chile) and Mr. Potocnik(Austria), respectively, as Chairman and Vice-Chairman of the Committee on Tarif Concessions. The Council approved the above-mentioned appointment.