<< ~/. >>
Lex Mercatoria -->
 
<< Pre TOC Nxt >>
TOC linked Full Text pdf portrait pdf landscape WordMap (index)
 
<< ~/. >>

WTA /WTO and GATT Uruguay 1994

© WTO Multilateral

copy @ << Lex Mercatoria >>

<< ~/. >>

World Trade Agreement 1994 (establishing the WTO and including GATT Uruguay 1994)

   1

ANNEX 1A: Agreement on Trade In Goods

   244

1. General Agreement on Tariffs and Trade 1994

   246

(d) Understanding on the Interpretation of Article XXIV of the General Agreement on Tariffs and Trade 1994

 
<< ~/. >>

(d) Understanding on the Interpretation of Article XXIV of the General Agreement on Tariffs and Trade 1994

  289

Members,

  290

Having regard to the provisions of Article XXIV of the GATT 1994;

  291

Recognizing that customs unions and free trade areas have greatly increased in number and importance since the establishment of the GATT 1947 and today cover a significant proportion of world trade;

  292

Recognizing the contribution to the expansion of world trade that may be made by closer integration between the economies of the parties to such agreements;

  293

Recognizing also that such contribution is increased if the elimination between the constituent territories of duties and other restrictive regulations of commerce extends to all trade, and diminished if any major sector of trade is excluded;

  294

Reaffirming that the purpose of such agreements should be to facilitate trade between the constituent territories and not to raise barriers to the trade of other Members with such territories; and that in their formation or enlargement the parties to them should to the greatest possible extent avoid creating adverse effects on the trade of other Members;

  295

Convinced also of the need to reinforce the effectiveness of the role of the Council for Trade in Goods in reviewing agreements notified under Article XXIV, by clarifying the criteria and procedures for the assessment of new or enlarged agreements, and improving the transparency of all Article XXIV agreements;

  296

Recognizing the need for a common understanding of the obligations of Members under Article XXIV:12;

  297

Hereby agree as follows:

  298

1. Customs unions, free trade areas, and interim agreements leading to the formation of a customs union or free trade area, to be consistent with Article XXIV, must satisfy the provisions of its paragraphs 5, 6, 7 and 8 inter alia.

  299


Article XXIV:5

 
  300

2. The evaluation under Article XXIV:5(a) of the general incidence of the duties and other regulations of commerce applicable before and after the formation of a customs union shall in respect of duties and charges be based upon an overall assessment of weighted average tariff rates and of customs duties collected. This assessment shall be based on import statistics for a previous representative period to be supplied by the customs union, on a tariff line basis and in values and quantities, broken down by WTO country of origin. The WTO Secretariat shall compute the weighted average tariff rates and customs duties collected in accordance with the methodology used in the assessment of tariff offers in the Uruguay Round. For this purpose, the duties and charges to be taken into consideration shall be the applied rates of duty. It is recognised that for the purpose of the overall assessment of the incidence of other regulations of commerce for which quantification and aggregation are difficult, the examination of individual measures, regulations, products covered and trade flows affected may be required.

  301

3. The "reasonable length of time" referred to in Article XXIV:5(c) should exceed ten years only in exceptional cases. In cases where Members believe that ten years would be insufficient they shall provide a full explanation to the Council for Trade in Goods of the need for a longer period.

  302


Article XXIV:6

 
  303

4. Paragraph 6 of Article XXIV establishes the procedure to be followed when a Member forming a customs union proposes to increase a bound rate of duty. In this regard it is reaffirmed that the procedure set forth in Article XXVIII, as elaborated in the guidelines adopted by the GATT 1947 CONTRACTING PARTIES on 10 November 1980 (27S/26) and in the Understanding on the Interpretation of Article XXVIII of the General Agreement on Tariffs and Trade 1994, must be commenced before tariff concessions are modified or withdrawn upon the formation of a customs union or an interim agreement leading to the formation of a customs union.

  304

5. It is agreed that these negotiations will be entered into in good faith with a view to achieving mutually satisfactory compensatory adjustment. In such negotiations, as required by Article XXIV:6, due account shall be taken of reductions of duties on the same tariff line made by other constituents of the customs union upon its formation. Should such reductions not be sufficient to provide the necessary compensatory adjustment, the customs union would offer compensation, which may take the form of reductions of duties on other tariff lines. Such an offer shall be taken into consideration by the Members having negotiating rights in the binding being modified or withdrawn. Should the compensatory adjustment remain unacceptable, negotiations should be continued. Where, despite such efforts, agreement in negotiations on compensatory adjustment under Article XXVIII as elaborated by the Understanding on the Interpretation of Article XXVIII of the General Agreement on Tariffs and Trade 1994 cannot be reached within a reasonable period from the initiation of negotiations, the customs union shall, nevertheless, be free to modify or withdraw the concessions; affected Members shall then be free to withdraw substantially equivalent concessions in accordance with Article XXVIII.

  305

6. The GATT 1994 imposes no obligation on Members benefiting from a reduction of duties consequent upon the formation of a customs union, or an interim agreement leading to the formation of a customs union, to provide compensatory adjustment to its constituents.

  306

Review of Customs Unions and Free Trade Areas

  307

7. All notifications made under Article XXIV:7(a) shall be examined by a working party in the light of the relevant provisions of the GATT 1994 and of paragraph 1 of this Understanding. The working party shall submit a report to the Council for Trade in Goods on its findings in this regard. The Council for Trade in Goods may make such recommendations to Members as it deems appropriate.

  308

8. In regard to interim agreements, the working party may in its report make appropriate recommendations on the proposed timeframe and on measures required to complete the formation of the customs union or free trade area. It may if necessary provide for further review of the agreement.

  309

9. Substantial changes in the plan and schedule included in an interim agreement shall be notified, and shall be examined by the Council for Trade in Goods if so requested.

  310

10. Should an interim agreement notified under Article XXIV:7(a) not include a plan and schedule, contrary to Article XXIV:5(c), the working party shall in its report recommend such a plan and schedule. The parties shall not maintain or put into force, as the case may be, such agreement if they are not prepared to modify it in accordance with these recommendations. Provision shall be made for subsequent review of the implementation of the recommendations.

  311

11. Customs unions and constituents of free trade areas shall report periodically to the Council for Trade in Goods, as envisaged by the GATT 1947 CONTRACTING PARTIES in their instruction to the GATT 1947 Council concerning reports on regional agreements (BISD 18S/38), on the operation of the relevant agreement. Any significant changes and/or developments in the agreements should be reported as they occur.

  312

Dispute Settlement

  313

12. The provisions of Articles XXII and XXIII of the GATT 1994 as elaborated and applied by the Understanding on Rules and Procedures Governing the Settlement of Disputes may be invoked with respect to any matters arising from the application of those provisions of Article XXIV relating to customs unions, free trade areas or interim agreements leading to the formation of a customs union or free trade area.

  314


Article XXIV:12

 
  315

13. Each Member is fully responsible under the GATT 1994 for the observance of all provisions of the GATT 1994, and shall take such reasonable measures as may be available to it to ensure such observance by regional and local governments and authorities within its territory.

  316

14. The provisions of Articles XXII and XXIII of the GATT 1994 as elaborated and applied by the Understanding on Rules and Procedures Governing the Settlement of Disputes may be invoked in respect of measures affecting its observance taken by regional or local governments or authorities within the territory of a Member. When the Dispute Settlement Body has ruled that a provision of the GATT 1994 has not been observed, the responsible Member shall take such reasonable measures as may be available to it to ensure its observance. The provisions relating to compensation and suspension of concessions or other obligations apply in cases where it has not been possible to secure such observance.

  317

15. Each Member undertakes to accord sympathetic consideration to and afford adequate opportunity for consultation regarding any representations made by another Member concerning measures affecting the operation of the GATT 1994 taken within the territory of the former.

  318



^
 
Lex Mercatoria -->
 
<< Pre TOC Nxt >>
TOC linked Full Text pdf portrait pdf landscape WordMap (index)
 
<< ~/. >>



Lex Mercatoria -->

( International Trade/Commercial Law & e-Commerce Monitor )

W3 since October 3 1993
1993 - 2006

started @The University of Tromsø, Norway
hosted by The University of Oslo, Norway
in fellowship with The Institute of International Commercial Law,
Pace University, White Plains, New York, U.S.A.

Disclaimer!

Cameron May
© Cameron May

Cameron May Catalogue
CM Catalogue, 2005 (pdf)

Books

Journals

Conferences

Services

Cameron May

Cameron May

Cameron May Ltd.
International Law Publishers
17 Queen Anne's Gate,
London SW1H 9BU,
England
Phone: 44 (0)20 7799 3636
Fax: 44 (0)20 7222 8517
info@cameronmay.com

RSS feeds for Cameron May Publications and Conferences:

&

© Ralph Amissah

presentations' look and feel
generated by
SiSU on Linux & Ruby (on Debian) - better ways, well actually, Way Better!
SiSU Scribe

© Ralph Amissah 1997, current 2006, of SiSU www.jus.uio.no/sisu the program, the markup syntax, and exemplified resulting document presentations look and feel, including text object numbering system.
All Rights Reserved.

© Ralph Amissah
1993 - 2004
All Rights Reserved
w3 since October 3 1993
ralph@amissah.com

using Ruby
on the Debian/Gnu/Linux
software infrastructure
think the usual GPL (or OSS) suspects

Get With the Future
<<Way Better!>>

Local Search using Google
google




lm www

Advanced Google Search of this site

If you have problems viewing pages on this site please update your browser:

Epiphany  Epiphany® |

Galeon  Galeon® |

MS I-Explorer I-Explorer® |

Konqueror Konqueror® |

Mozilla Mozilla Firefox(Firefox)® |

Netscape Netscape® |

Opera Opera®

for console/text viewing:

elinks |

w3m

for lightweight gui (X) viewing try:

Dillo |

Epiphany  Epiphany® |

Firefox Firefox® 

& for pdf viewings of this site we recommend stand alone viewers
(rather than web browser plugins):

Adobe Acrobat Reader Acrobat Reader®  |

 GhostView® , GV® & GSview®  |

Xpdf  Xpdf®