COMMUNICATION FROM THE CHAIRPERSON
Following ourinformal consultations, theattached Draft Decision onTermination ofthe
International Dairy Agreement willbeproposed, under Agenda ItemB"Future oftheAgreement",
forconsideration andadoption atthemeeting oftheInternational Dairy Council on30September 1997
(WTO/AIR/672). ThisDraft Decision isidentical tothetextconsidered attheinformal meeting held
on20June1997.
97-3874RESTRICTED
WORLD TRADE IDA/SPEC/2
19September 1997
ORGANIZATION(97-3874)
International Dairy Agreement
DRAFT DECISION
TERMINATION OFTHE INTERNATIONAL DAIRY AGREEMENT
Decision pursuant toArticle VIII:3
TheParties totheInternational Dairy Agreement (the"Agreement"),
Noting that,according toArticle VIII:3 oftheAgreement, theduration oftheAgreement shall
beextendedforasecondthree-yearperiodafter31December1997unlesstheInternationalDairyCouncil
(the"IDC"), atleasteighty daysprior to31December 1997, decides otherwise;
Recalling thatthelimited membership intheAgreement, inparticular thenon-participation
ofsome major dairy exporting countries, hadmade theoperation oftheminimum price provisions
oftheAgreement untenable, andthatthese provisions hadbeen suspended bytheIDC asof
18October 1995 until31December 1997;
Considering thatParties wishing todiscuss dairy traderelated aspects areabletodosowithin
theframework oftheWTO Committee onAgriculture ortheWTO Committee onSanitary and
Phytosanitary measures;
Recalling thatParties had, intheir report totheSingapore Ministerial Conference in
December 1996, expressed doubt about thecontinued usefulness oftheAgreement inthelightofthe
Uruguay Round results;
Recognizing theresource constraints faced byGovernments andtheWTO Secretariat;
Taking intoaccount theavailability ofother sources ofinformation fordairy trade statistics;
Hereby decide asfollows:
(a) theAgreement willnotbeextended forafurther period ofthree years after
31December 1997, andwillbeterminated asof1January 1998; and
(b) torequest, inaccordance withArticles X:9oftheMarrakesh Agreement Establishing
theWorld Trade Organization (the"WTO Agreement"), theWTO Ministerial
Conference todelete theAgreement from Annex 4oftheWTO Agreement upon
termination oftheAgreement.