Decision on the Establishment of the Preparatory Commit tee  
for the World Trade Organization  
Ministers , 
 Having regard to the Agreement Establishing the World Trade Organiz ation (hereinafter referred to as "the WTO 
Agreement" and "the WTO"), and  
 Mindful  of the desirability of ensuring an orderly transition to the WTO and the efficient operation of the WTO as 
of the date of entry into force,  
 Hereby agree  as follows:  
1. A Preparatory Committee for the WTO (hereinafter referred to as "Com mittee") is hereb y established. Mr.  P.D. 
Sutherland in his personal capacity is appointed Chairman of the Committee.  
2. The Committee shall be open for membership to all Signatories of the Final Act of the Uruguay Round of 
Multilateral Trade Negotiations and to any contracting party eligible to become an original member of the WTO in accord -
ance with Article XI of the WTO Agreement.  
3. A Sub -Committee on Budget, Finance and Administration, to be chaired by the Chairman of the GATT 
CONTRACTING PARTIES, and a Sub -Commit tee on Services responsible for preparatory work on GATS matters are also 
established. The Committee may establish additional sub -committees as appropri ate. Membership of the Sub-Committees 
shall be open to all members of the Committee. The Committee shall es tablish its own procedures and those of its sub-
committees.  
4. The Committee will make all its decisions by consensus.  
5. Only those members of the Committee that are GATT contracting parties eligible to become original Members of 
the WTO in accordance wit h Articles XI and XIV of the WTO Agreement may participate in the decision -making of the 
Committee.  
6. The Committee and its sub -committees shall be serviced by the GATT Secretariat.  
7. The Committee shall cease to exist upon the entry into force of the WT O Agreement, at which time it will forward 
its records and recommendations to the WTO.  
8. The Committee shall perform such functions as may be necessary to ensure the efficient operation of the WTO 
immediately as of the date of its establishment, including  the functions set out below:  
 (a) Administrative, budgetary and financial matters:  
  To prepare recommendations for the consideration of the competent body of the WTO, or, to the 
extent necessary, take decisions or, as appropriate, provisional decisions i n advance of the 
establishment of the WTO, with respect to the recommendations submitted to it by the Chairman 
of the Sub -Committee on Budget, Finance and Administration referred to in paragraph 3 above, in 
cooperation with the Chairman of the GATT Committee on Budget, Finance and Administration, 
assisted by proposals from the Secretariat on:  
  (i) the headquarters agreement provided for in Article VIII:5 of the WTO Agreement;  
  (ii) financial regulations, including guidelines for the assessment of WTO mem bers' budget 
contributions, in accordance with the criteria set out in Article  VII of the WTO Agreement;  
  (iii) the budget estimates for the first year of oper ation of the WTO;  
  (iv) the transfer of the property, including financial assets, of the ICITO /GATT to the WTO;  
  (v) the transfer and the terms and conditions of the transfer of the GATT staff to the WTO 
Secretariat; and  
  (vi) the relationship between the International Trade Centre and the WTO.  
 (b) Institutional, procedural and legal matters:  
  (i) To carry out the examination of and approve the schedules submitted to it in accordance 
with the "Decision on Accept ance of and Accession to the Agreement Establishing the 
World Trade Organization" and to propose terms of acces sion in accordance wit h 
paragraph  2 of that Decision;  
  (ii) To make proposals concerning terms of reference for the bodies of the WTO, in particular 
those established in Article  IV of the WTO Agreement, and the rules of pro cedure which 
they are called upon to establish for th emselves, bearing in mind paragraph 1 of Article 
XVI;  
  (iii) To make recommendations to the General Council of the WTO concerning the appropriate 
arrangements with respect to relations with other organizations referred to in Article V of 
the WTO Agreemen t; and  
  (iv) To prepare and submit a report on its activities to the WTO.   (c) Matters related to the entry into force of the WTO Agreement and to the activities of the WTO 
within its scope and functions:  
  (i) To convene and prepare the Implementation Co nference;  
  (ii) To initiate the work programme arising from the Uruguay Round results as set out in the 
Final Act, such as overseeing, in the Sub -Committee on Services referred to in paragraph 3 
above, negotiations in specific services sectors, and also t o undertake work resulting from 
Decisions of the Marrakesh meeting;  
  (iii) To discuss suggestions for the inclusion of additional items on the agenda of the WTO's 
work programme;  
  (iv) To make proposals concerning the composition of the Textiles Monitor ing Body in 
accordance with the criteria set out in Article 8 of the Agreement on Textiles and Clothing; 
and 
  (v) To convene the first meeting of the Ministerial Conference or the General Council of the WTO, 
whichever meets first, and to prepare the provi sional agenda thereof.  