RESTRICTED
WORLD TRADE G/C/W/66
11November 1996
ORGANIZATION(96-4774)
Original: english Council forTrade inGoods
DRAFT MINISTERIAL DECISION ATSINGAPORE
Implementation oftheAgreement onTextiles andClothing
Thedelegation ofPakistan requested atthemeeting oftheCouncil forTrade inGoods of
1November 1996 thatthiscommunication, circulated informally atthatmeeting, alsobecirculated
asaCouncil document.
_____________
Ministers, meeting ontheoccasion oftheMinisterial Conference atSingapore, agreed toadopt
thefollowing decision:
1. Ministers takenoteofthereport oftheCouncil forTrade inGoods indocument (...).
2. Recalling thesignificance ofintegrating thetextiles andclothing sector intotheGATT forthe
unity andintegrity ofthemultilateral trading system, andtheimportance ofthesector fortheprocess
ofdevelopment inalargenumber ofdeveloping country Members, Ministers affirmed theircollective
commitment tofullandfaithful implementation oftheAgreement onTextiles andClothing (the
"Agreement") within thetimeframe provided therein. They noted theassurances thattheAgreement
willbeimplemented inamanner designed toensure theobjective offullintegration ofthesector into
thenormal rules oftheGATT 1994.
3. Ministers acknowledged theimproved market access opportunities provided bytheapplication
ofenhanced growth ratesunder theAgreement.
4. Recognising thatthecentral objective oftheAgreement onTextiles andClothing wasthe
progressiveeliminationofquantitativerestrictionsmaintainedundertheMulti-FibreArrangementthrough
astaged programme ofintegration, Ministers noted thedissatisfaction withthefactthatthefirststage
integration programmes oftheMFA-restraining Members didnotinclude anyrestrained items except
foroneitembyoneMember. Withaviewtofacilitating theprocess, andtoensuring theintegration
ofthesector intothenormal rulesanddisciplines oftheGATT, theycalled upontheMembers concerned
toensure balance byincluding asubstantial mixofrestrained items intheirintegration programmes
especially forthesecond andthird stages oftheprocess. They urged Members toadhere totheir
commitments inconnection withspecial provisions oftheAgreement relating toleast-developed country
Members andcotton-producing exporting Members, small suppliers andnewentrants.
./.G/C/W/66
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5. Noting thattheinvocation ofsafeguard measures under theAgreement inthefirstyearofits
implementation resulted inbringing afurther US$1.7billion oftrade perannum under thecoverage
ofnewquantitative restrictions, andstressing theimportance ofelimination ofalready existing
restrictions, Ministers agreed thatthetransitional safeguard mechanism oftheAgreement shallbeused
sparingly inaccordance withtheobjective oftheAgreement andtheeffective implementation ofthe
integration process. Theyagreed tosafeguard theintegrity oftherulesanddisciplines oftheAgreement,
andtoensure thattheserulesanddisciplines arenotundermined incases where bilateral arrangements
areadmissible under theAgreement.
6. Noting theconcerns expressed withrespect totheintroduction ofnewrulesoforigin, Ministers
urged theadoption ofimmediate measures torestore thesituation andtoavoid disruption oftradeunder
theAgreement. Theyagreed thatsuchmeasures shallprevent unnecessary recourse todispute settlement
procedures oftheWTO.
7. Ministers tooknoteoftheconcerns expressed inrelation tocircumvention oftheAgreement
andre-affirmed theirresolve tocooperate fullytoaddress theproblem inaccordance withtheprovisions
anddisciplines oftheAgreement. They agreed thattheissue shall notbeused tojustify the
non-fulfilment ofcommitments under theAgreement.
8. Ministers expressed their determination toresist pressures fortrade measures outside the
framework oftherules anddisciplines oftheWTO.
9. InviewoftheimportanceofsupervisingtheimplementationoftheAgreement,andofexamining
theconformity ofmeasures adopted byMembers withitsprovisions, Ministers recognised thehigh
expectations placed byMembers andbusinesses inthefunctioning oftheTMB. They stressed the
needforopenness intheTMB process andforensuring itsimpartiality. Toenhance accountability
andacceptability ofitsrecommendations, theycalled upontheCouncil forTrade inGoods toregularly
oversee thefunctioning oftheTMB.
10. Taking noteofthewide-spread concern expressed byanumber ofdeveloping country Members
overtheimplementation oftheAgreement during thefirsttwoyears oftheimplementation process,
Ministers invited theGeneral Council tokeeptheimplementation oftheAgreement under regular review
andtomake appropriate recommendations tothenextMinisterial Conference.