WORLD TRADE
ORGANIZATIONG/L/492
11 October 2001
(01-4981)
REPORT (2001) OF THE COUNCIL FOR TRADE IN GOODS
In accordance with the "Procedures for an Annual Overview of WTO Activities and for
Reporting under the WTO" (WT/L/105), the Council for Trade in Goods is to report each year to the
General Council on the activities in the Council as well as in the subsidiary bodies. The reports are to
be "factual in nature, containing an indication of actions and decisions taken, with cross references toreports of subordinate bodies and could follow the model of the GATT 1947 Council reports to the
CONTRACTING PARTIES".
Since the last annual report, the Council for Trade in Goods met five times in formal session:
first, on 14 March;  second, 18 April;  third, on 5 and 17 July;  fourth, on 27 and 31 July 2001;  andfifth, on 5 October 2001
1.  The minutes of these meetings are contained in documents G/C/M/47, 48,
49, 50 and 52.  This report does not cover the meeting of the CTG on 27 September 2001 to conduct
the major review of the implementation of the Agreement on Textiles and Clothing in the second
stage of the integration process;  a record of this meeting can be found in G/C/M/51.
The following subject matters which were raised and/or acted upon in the Council are
included in the report:
1. Election of Chairperson for the Counc il for Trade in Good s  (G/C/M/47)..........................3
2. Appointment of Officers for the subsidiary bodies of the Council (G/C/M/47) ..................3
3. Status of Notifications under the Provisions of the Agreements in Annex 1A of
the WTO Agreement (G /C/M/48 and 52) ...............................................................................4
4. Periodic Reports of the Committee on Market Access (G/C/M/48 and 52).........................4
5. Waivers under Article IX of the WTO Agreement................................................................4
(a) WTO Agreement on Customs Valuation – Request for a waiver by Cameroon
(G/C/M/47 and 48).............................................................................................................. ........4
(b) WTO Agreement on Customs Valuation  - Request for a waiver by Haiti (G/C/M/48).............4
(c) WTO Agreement on Customs Valuation – Request for a waiver by Madagascar
(G/C/M/48 and 49).............................................................................................................. ........4
(d) Pakistan – Minimum values under paragraph 2 of Annex III of the Customs Valuation
Agreement (G/C/M/48)........................................................................................................... ....5
(e) Request for a WTO waiver – new ACP- EC Partnership Agreement (G/C/M/47, 48,
49, 50 and 52) ................................................................................................................. ............5
(f) Request for a WTO waiver – Switzerland: Preferential treatment for Albania and
Bosnia-Herzegovina (G/C/M/48 and 49)....................................................................................5
                                                     
1 The meeting was suspended on the item regarding requests for TRIMs extensions of the transition
period, to be reconvened at a later date.  An addendum to this report will be issued to include the reconvened
meeting.G/L/492
Page 2
(g) Zambia – Renegotiation of Schedu le LXXVIII (G/C/M/48 and 52) ..........................................5
(h) Decision on the Introduction of Harmonize d System (HS) changes in WTO Schedules
of Tariff Concessions on 1 January 1996 – Extension of the time-limit until 30 April
2002. (G/C/M /48) ............................................................................................................... ........5
(i) Harmonized System – Requests for extens ions of waivers from Nicaragua and Sri
Lanka (G/C/M/48 and 52)........................................................................................................ ...6
(j) Request for a waiver by Côte d'Ivoire concerning the Customs Valuation Agreement
(G/C/M/52) ..................................................................................................................... ............6
(k) Request by El Salvador concerning the Customs Valuation Agreement (G/C/M/52)................6
(l) Request by Cuba for extension of a waiver concerning GATT Article XV:6
(G/C/M/52) ..................................................................................................................... ............6
6. TRIMs Agreement .............................................................................................................. ......6
(a) Requests for extension of the transition period pursuant to Article 5.3 (G/C/M/47, 48,
49, 50 and 52) ................................................................................................................. ............6
(b) Review of the operation of the TRIMs Agreement (G/C/M/47, 48, 49 and 52).........................7
7. Free Trade Agreements (G/C/M/47, 49 and 52).....................................................................7
(a) Free Trade Agreement between the European Community and South Africa -
Notification from the Parties to the Agreement (WT/REG113/N/1 and
WT/REG113/1)................................................................................................................... ........7
(b) Free Trade Agreement between the Kyrgyz Republic and Armenia - Notification
from the Kyrgyz Republic (WT/ REG114/N/1, WT/REG114/1 and
WT/REG114/1/Corr.1). ........................................................................................................... ...7
(c) Free Trade Agreement between Turkey and the Former Yugoslav Republic of
Macedonia - Notification from Turkey (WT/REG115/N/1 a nd WT/REG115/1).......................7
(d) Free-Trade Agreement between Turkey and Latvia – Notification from the parties to
the Agreement (WT/REG116/N/1, WT/REG116/1). .................................................................7
(e) Free-Trade Agreement between EFTA States and the Former Yugoslav Republic of
Macedonia – Notification by EFTA States  (WT/REG117/N/1, WT/REG117/1).......................7
(f) Free-Trade Agreement between Georgia and the Russian Federation;  Notification
from Georgia (WT/REG118/N /1 and WT/REG118/1)...............................................................7
(g) Free-Trade Agreement between Georgia and Armenia; ; Notification from Georgia
(WT/REG119/N/1 and WT/REG119/1). ....................................................................................7
(h) Free-Trade Agreement between Georgia and Azerbaijan;  Notification from Georgia
(WT/REG120/N/1 and WT/REG120/1). ....................................................................................7
(i) Free-Trade Agreement between Georgia and Ukraine;  Notification from Georgia
(WT/REG121/N/1 and WT/REG121/1). ....................................................................................7
(j) Free-Trade Agreement between Georgia and Turkmenistan;  Notification from
Georgia (WT/REG122/N/1  and WT/REG122/1). ......................................................................7
(k) Free-Trade Agreement between Georgia and Kazakhstan;  Notification from Georgia
(WT/REG123/N/1 and WT/REG123/1). ....................................................................................7
(l) Free-Trade Agreement between Israel and Mexico;  Notification from the Parties to
the Agreement (WT/REG124/N/1 and WT/REG124/1).............................................................7G/L/492
Page 3
(m) Free-Trade Agreement between Chile and Mexico;  Notification from the Parties to
the Agreement (WT/REG125/N/1 and WT/REG125/1).............................................................7
(n) Interim Agreement between the EFTA States and the Palestine Liberation
Organization;  Notification from the EFTA States (WT/REG79/N/1 and
WT/REG79/1).................................................................................................................... .........8
(o) Free Trade Agreement between the EFTA States and Mexico;  Notification from the
Parties to the Agreement (WT/REG 126/N/1 and Corr.1, WT/REG126/1) ................................8
(p) Agreement between New Zealand and Singapore on a Closer Economic Partnership;
Notification from the Parties to the Ag reement (WT/REG127/N/1, WT/REG127/1)................8
(q) Free Trade Agreement between Hungary and Estonia;  Notification from the Parties
to the Agreement (WT/RE G128/N/1 and WT/REG128/1) ..........................................................8
8. Request by Costa Rica, India, Indonesia, Pakistan, Peru and Hong Kong, china:
CTG'S oversight function pursuant to Article IV of the Agreement establishing
the WTO – transparency regarding new restrictions on textile and clothing
products commented upon by the Textiles Monitoring Body (G/C/M/47, 48, 49
and 52)........................................................................................................................ ................8
9. Draft decision on concessions under the harmonized commodity description and
coding system – a procedure for introduction of harmonized system 2002
changes to schedules of concessions (G /C/M/49)....................................................................8
10. Notification of actions taken under the 1999 waiver for preferential tariff
treatment for least-developed countries (G/C/M/47 and 49) .................................................8
11. Request by the Slovak Republic – Notification by Poland under Article 12.5 of
the Agreement on Safe guards (G/C /M/52) .............................................................................8
12. Consideration of annual reports of subsidiary bodies of the Council for Trade in
Goods (G/C/M/52)............................................................................................................... ......8
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1. Election of Chairperson for the Council for Trade in Goods  (G/C/M/47)
1.1 At its meeting of 14 March, the Council elected  H.E. Ambassador  I  Major (Hungary) as its
Chairman for 2001.
2. Appointment of Officers for the subsidiary bodies of the Council (G/C/M/47) 2
2.1 At its meeting of 14 March, the Council took note of the consensus on the following persons
nominated for election as Chairpersons of its subsidiary bodies:  Committee on Agriculture:  Chair:
Ambassador  Apiradi Tantraporn (Thailand), Vice-Chair:  Mr. Yoichi Suzuki (Japan);  Committee on
Anti-Dumping Practices:  Mrs. Sahar Hosni Abdelaziz (Egypt);  Committee on Customs Valuation:
Mr. K. Weerasinghe (Sri Lanka);  Committee on Im port Licensing:  Ms. Simone Rudder (Barbados);
Committee on Market Access:  Mr. Y. Shiran (Israel);  Committee on Rules of Origin:  Mr. Ho YoungAhn (Korea);  Committee on Safeguards:  Mr. Martin Pospisil (Czech Republic);  Committee on
Sanitary and Phytosanitary Measures:  Mr. William Ehlers (Uruguay); Committee on Subsidies and
Countervailing Measures:  Mr. Remo Moretta (Australia);  Committee on Technical Barriers to Trade:
                                                     
2 The Committee of Participants on the Expansion of Trade in Information Technology Products
elected Ms. E. Chelliah (Singapore) as Chairperson for 2001.G/L/492
Page 4
Mr. Joshua Phoho (Lesotho);  Committee on Trade-Related Investment Measures:  Mr. Paul Bennett
(Ireland);  Working Party on State Trading Enterprises;  Ms. Maija Manika (Latvia).
2.2 At the same meeting, the Council agreed to proceed on the understanding that as concerns Vice-
Chairpersons, it would be for the subsidiary bodies to  decide if they needed a Vice-Chairperson in cases
where the option existed under the respective Agreem ent and/or rules of procedure, and for the
respective Chairperson to hold the necessary consultations.
3. Status of Notifications under the Provisions of the Agreements in Annex 1A of the WTO
Agreement (G/C/M/48 and 52)
3.1 At its meeting of 18 April, the Council took  note of document G/L/223/Rev.6 which updated
the situation with respect to the status of notifications and Members compliance therewith and
included notifications made up to and on 31 December 2000.
3.2 At its meeting of 5 October, the Council took note of document G/L/223/Rev.7 which
updated the situation with respect to the status of notifications and Members compliance therewith
and included notifications made up to and on 30 June 2001.
4. Periodic Reports of the Committee on Market Access (G/C/M/48 and 52)
4.1 At its meetings of 18 April  and 5 October , the Council took note of the periodic report (in
documents G/MA/112 and 113) of the Market Access Committee on inter alia  the requests for waiver
extensions and/or waivers made in connection with  the transposition or renegotiation of schedules of
tariff concessions and/or in connection with the introduction of harmonized system changes into
schedules of tariff concessions on 1 January 1996.
5. Waivers under Article IX of the WTO Agreement
(a) WTO Agreement on Customs Valuation – Request for a waiver by Cameroon (G/C/M/47
and 48)
5.1 At its meetings of 14 March and 18 April, the Council considered a request by Cameroon
(G/C/W/245, G/C/W/245/ADD.1, G/C/W/245/ADD.2 and G/C/W/258) for a waiver under Article IX
of the WTO Agreement concerning Customs Valuation Agreement.  The Council at its meeting on
18 April agreed to the request and recommended that the draft decision be transmitted to the General
Council for adoption.
(b) WTO Agreement on Customs Valuation  - Request for a waiver by Haiti (G/C/M/48)
5.2 At its meeting on 18 April, the Council considered a request by Haiti (G/C/W/256Rev.1) for a
waiver for a 3-year extension for the application of the Customs Valuation Agreement.
(c) WTO Agreement on Customs Valuation – Request for a waiver by Madagascar (G/C/M/48
and 49)
5.3 At its meeting on 18 April, the Council considered a request by Madagascar (G/C/W/259) for
a waiver under Article IX of the WTO Agreement concerning Customs Valuation Agreement.  The
Council at its meeting on 5 July agreed to the request and recommended that the draft decision be
transmitted to the General Council for adoption (G/C/W/268).G/L/492
Page 5
(d) Pakistan – Minimum values under paragraph 2 of Annex III of the Customs Valuation
Agreement (G/C/M/48)
5.4 At its meeting on 18 April, the Council considered a request by Pakistan (G/C/W/246) for a
waiver concerning the retention of established minimum values under paragraph 2 of Annex III of the
Customs Valuation Agreement.
(e) Request for a WTO waiver – new ACP-EC Pa rtnership Agreement (G/C/M/47, 48, 49, 50 and
52)
5.5 The EC and the ACP countries had previously submitted for consideration to the CTG a
request for a waiver in order to allow the maintenance of preferential trade between the EC and the
ACP countries3.  Deliberations were held on the request and the Council took note of the various
statements made at the meetings on 14 March, 18 April , 5 July , and 31 July .
5.6 At its meeting on 5 October, the CTG agreed th at the examination of the waiver request could
begin.  The Chairman noted that the EC and ACP countries have requested an Article I waiver, to
include bananas, until 31 December 2007.  However, there was a difference of opinion whether the
EC had described the measure intended for the regime between 2005 and 2007.  It was possible thatduring the course of the examination the issue c ould be resolved to enable Members to agree on
whether any Article I waiver could apply up to the end of 2007 for bananas.
(f) Request for a WTO waiver – Switzerland: Preferential treatment for Albania and
Bosnia-Herzegovina (G/C/M/48 and 49)
5.7 At its meeting on 18 April, the Council considered a request by Switzerland for a waiver with
respect to the provisions of paragraph 1 of Article 1 of the GATT 1994 (G/C/W/257). At its meeting
on 5 July, the Council approved the request and agreed that the draft decision granting the waiver,
contained in the same document, be transmitted to the General Council for adoption.
(g) Zambia – Renegotiation of Schedule LXXVIII (G/C/M/48 and 52)
5.8 At its meeting of 18 April, the Council cons idered requests by Zambia (G/L/443) for an
extension, until 30 October 2001. The Council approved the text of the draft decision (G/C/W/252),
and agreed to transmit it to the General Council for adoption.
5.9 At its meeting of 5 October, the Council considered requests by Zambia (G/L/482) for an
extension, until 30 April 2002. The Council approved the text of the draft decision (G/C/W/306), and
agreed to transmit it to the General Council for adoption.
(h) Decision on the Introduction of Harmonized Sy stem (HS) changes in WTO Schedules of
Tariff Concessions on 1 January 1996 – Extension of the time-limit until 30 April 2002.
(G/C/M/48)
5.10 At its meeting of 18 April, the Council approved the extension of the waiver, and recommend
that the draft decision (G/C/W/255/Rev.1) granting an extension be transmitted to the General
Council for adoption.
                                                     
3 Relevant documents: A. Request by the EC and ACP countries (G/C/W/187), G/C/W/187/Add.2,
G/C/W/204, G/C/W/254, G/C/W/269).  B. Proposed amendments by Ecuador (G/C/W/267 and Corr.1,WR/DS27/60-G/C/W/274)G/L/492
Page 6
(i) Harmonized System – Requests for extensions of waivers from Nicaragua and Sri Lanka
(G/C/M/48 and 52)
5.11 At its meeting of 18 April, the Council considered requests by Nicaragua (G/L/442) and
Sri Lanka (G/L/440) for an extension until 30 October 2001of waivers already granted in connection
with the transposition of their schedules into th e harmonized System. The Council approved the texts
of the draft decisions on the waiver extensions in G/C/W/227 (Nicaragua) and G/C/W/250 (Sri
Lanka), and agreed to transmit them to the General Council for adoption.
5.12 At its meeting of 5 October, the Council considered requests by Nicaragua (G/L/481) and
Sri Lanka (G/L/477) for an extension until 30 April 2002of waivers already granted in connection
with the transposition of their schedules into th e harmonized System. The Council approved the texts
of the draft decisions on the waiver extensions  in G/C/W/299 (Nicaragua) and G/C/W/298 and Corr.1
(Sri Lanka), and agreed to transmit them to the General Council for adoption.
(j) Request for a waiver by Côte d'Ivoire concerning the Customs Valuation Agreement
(G/C/M/52)
5.13 At its meeting on 5 October, the Council considered a request by Côte d'Ivoire (G/C/W/301)
for a waiver concerning the continued use of minimum values/reference prices under the Customs
Valuation Agreement.
(k) Request by El Salvador concerning the Customs Valuation Agreement (G/C/M/52)
5.14 At its meeting on 5 October, the Council considered a request by El Salvador
(G/C/W/300/Rev.1) for a waiver to apply minimu m customs values for a transition period of four
years.
(l) Request by Cuba for extension of a waiv er concerning GATT Article XV:6 (G/C/M/52)
5.15 At its meeting on 5 October, the Council cons idered the above request by Cuba (G/C/W/303
and Corr.1).
6. TRIMs Agreement
(a) Requests for extension of the transition period pursuant to Article 5.3 (G/C/M/47, 48, 49, 50
and 52)
6.1 At its meetings on 14 March, 18 April, 5 July and 27 July, the Council took note of the
statements made regarding requests for extension of the transition period made by Argentina,
Colombia, Chile, Egypt, Malaysia, Mexico, Pakistan, Philippines, Romania and Thailand.
6.2 At the resumed meeting on 31 July, the Council took note of the statements made and adopted
the draft decisions and agreed that the draft decision for a waiver by Thailand (G/C/W/276/rev.1) be
transmitted to the General Council for adoption.4
6.3 The meeting of 5 October was suspended on this item.  An addendum to this report will beissued when the meeting is reconvened to consider the requests for extension made by Argentina,
Colombia, Malaysia, Mexico, Pakistan, Philippines, Romania and Thailand.
                                                     
4 Decisions are contained in the following documents: G/L/460 (Argentina), G/L/461 (Colombia),
G/L/462 (Malaysia), G/L/463 (Mexico), G/L/464 (Philippi nes), G/L/465 (Romania), G/L/466 (Pakistan) and
WT/L/410 (Thailand).G/L/492
Page 7
(b) Review of the operation of the TRIMs Agreement (G/C/M/47, 48, 49 and 52)
6.4 At its meetings on 14 March, 18 April and 5 July, the Council took note of  the statements
made.
6.5 At its meeting on 5 October, the Council took note of part 1 of the joint WTO/UNCTAD
study contained in document G/C/W/307.
7. Free Trade Agreements (G/C/M/47, 49 and 52)
7.1 At its meetings on 14 March and 5 July  and 5 October , the Council adopted the terms of
reference under which the CRTA should examine the following agreements:
(a) Free Trade Agreement between the European Community and South Africa - Notification
from the Parties to the Agreemen t (WT/REG113/N/1 and WT/REG113/1).
(b) Free Trade Agreement between the Kyrgyz Republic and Armenia - Notification from the
Kyrgyz Republic (WT/REG114/N/1, WT /REG114/1 and WT/REG114/1/Corr.1).
(c) Free Trade Agreement between Turkey and the Former Yugoslav Republic of Macedonia -
Notification from Turkey (W T/REG115/N/1 and WT/REG115/1).
(d) Free-Trade Agreement between Turkey and Latvia – Notification from the parties to the
Agreement (WT/REG116 /N/1, WT/REG116/1).
(e) Free-Trade Agreement between EFTA States and the Former Yugoslav Republic of
Macedonia – Notification by EFTA Stat es (WT/REG117/N/1, WT/REG117/1).
(f) Free-Trade Agreement between Georgia and the Russian Federation;  Notification from
Georgia (WT/REG118/N /1 and WT/REG118/1).
(g) Free-Trade Agreement between Georgia and Armenia; ; Notification from Georgia
(WT/REG119/N/1 and WT/REG119/1).
(h) Free-Trade Agreement between Georgia and Azerbaijan;  Notification from Georgia
(WT/REG120/N/1 and WT/REG120/1).
(i) Free-Trade Agreement between Georgia and Ukraine;  Notification from Georgia
(WT/REG121/N/1 and WT/REG121/1).
(j) Free-Trade Agreement between Georgia and Turkmenistan;  Notification from Georgia
(WT/REG122/N/1 and WT/REG122/1).
(k) Free-Trade Agreement between Georgia and Kazakhstan;  Notification from Georgia
(WT/REG123/N/1 and WT/REG123/1).
(l) Free-Trade Agreement between Israel and Mexico;  Notification from the Parties to the
Agreement (WT/REG124/N /1 and WT/REG124/1).
(m) Free-Trade Agreement between Chile and Mexico;  Notification from the Parties to the
Agreement (WT/REG125/N /1 and WT/REG125/1).G/L/492
Page 8
(n) Interim Agreement between the EFTA States and the Palestine Liberation Organization;
Notification from the EFTA States  (WT/REG79/N/1 and WT/REG79/1).
(o) Free Trade Agreement between the EFTA States and Mexico;  Notification from the Parties
to the Agreement (WT/REG126 /N/1 and Corr.1, WT/REG126/1)
(p) Agreement between New Zealand and Singapore on a Closer Economic Partnership;
Notification from the Parties to the Agreement (WT/REG127/N/1, WT/REG127/1)
(q) Free Trade Agreement between Hungary and Estonia;  Notification from the Parties to the
Agreement (WT/REG128/ N/1 and WT/REG128/1)
8. Request by Costa Rica, India, Indonesia, Paki stan, Peru and Hong Kong, china: CTG'S
oversight function pursuant to Article IV of the Agreement establishing the WTO –
transparency regarding new restrictions on  textile and clothing products commented
upon by the Textiles Monitoring Body (G/C/M/47, 48, 49 and 52)
8.1 At its meetings of 14 March, 18 April , 5 July  and 5 October  the Council took note of the
statements made.
9. Draft decision on concessions under the harmonized commodity description and coding
system – a procedure for introduction of harmonized system 2002 changes to schedulesof concessions (G/C/M/49)
9.1 At its meeting of 5 July, the Council agreed that the draft decision (G/MA/W/28 and
G/MA/W/28/Corr.1) be transmitted to the General Council for adoption.
10. Notification of actions taken under the 1999 waiver for preferential tariff treatment for
least-developed countries (G/C/M/47 and 49)
10.1 At its meeting of 14 March, the Council agreed that the handling of notifications for any
market access measures taken specifically in favour of LDC were to be notified to the Sub-Committee
on Least-Developed Countries.  At its meeting of 5 July, the Council agreed to submit to the Sub-
Committee Morocco's notification on preferential tr eatment for Least-Developed Countries. (G/C/6 –
WT/LDC/SWG/IF/18).
11. Request by the Slovak Republic – Notification by Poland under Article 12.5 of the
Agreement on Safeguards (G/C/M/52)
11.1 At its meeting on 5 October, the Council took note of statements by the Slovak Republic and
Poland as well as other Members regardin g Poland's notification in G/L/453-G/SG/35.
12. Consideration of annual reports of subsidiary bodies of the Council for Trade in Goods
(G/C/M/52)
12.1 At its meeting on 5 October, the Council took note of the final or interim reports of all its
subsidiary bodies.
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