RESTRICTED
WORLD TRADE G/L/65/Rev.1/Add.1
10April 1996
ORGANIZATION(96-1251)
Original: English
ENLARGEMENT OFTHE EUROPEAN UNION
Schedule CXL -European Communities
Communication from Argentina
Thefollowingcommunication,dated1April1996,hasbeenreceivedfromthePermanentMission
ofArgentina.
___________________
On14March 1996, theSecretariat oftheWorld Trade Organization (WTO) circulated a
communication fromthePermanent Delegation oftheEuropean Commission inGeneva1,concerning
which theArgentine Government wishes tomake, interalia,thefollowing comments:
1. Intheintroductory paragraph, theEUproposes thatthereference prices linked withthe
provisionsofArticle5(1)(b)oftheAgreementonAgriculture(SpecialSafeguardforprices)beconsidered
anintegral partofitsWTO Schedule, through thenotification inquestion.
Itisnotclear what provisions form thebasis fortheEU'srequest forwhat is,inpractice,
aformal modification oftheSchedule, andweareconcerned about themethod ofcommunicating that
request, since itdoesnotappear tobeenvisaged inArticle XXVIII oftheGeneral Agreement, inthe
Agreement onAgriculture orinother relevant procedures. Ofcourse, before theconclusion ofthe
Uruguay Round, theEUannounced thatthereference prices fortheSSGwerepartofitsSchedule,
but,asfarascanbejudged from theinformation available, itdoesnotappear tohavecompleted in
dueformthenotifications andprocedures necessary forthose prices tobecome anintegral partofthat
Schedule. Thisformal omission could establish abadprecedent.
ItisalsotruethattheEUaddressedsubsequentcommunicationsconcerningtheSpecialSafeguard
totheCommittee onAgriculture which, even though theArgentine delegation viewed these
communications astaking precedence overcertain commitments intheSchedule concerning entryprices,
isthenatural forum fordealing withthese matters. Wewould urgetheEUtocontinue submitting
these notifications exclusively tothatCommittee.
2. Inparagraph 3ofthesamedocument, theEUproposes thatitsSchedules bemodified byvirtue
oftheagreementsrelatingtotheArticleXXIV:6negotiationswithoutthosenegotiations,asacknowledged
inthenoteinquestion, having beenconcluded withalltheparties involved. Wedonotknow why
theEUchose todisregard therequirements ofArticle XXVIII:4 bynotifying negotiations which have
notyetbeenconcluded.
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Page2
3. Inthesame paragraph, theEUrefers tothecommitments which itisprepared tobindinits
new15-country Schedule. TheEUalready hascommitments bound under theUruguay Round, so
thatitisimpossible toknow under whatprovision, inthecontext oftheWTO disciplines, itisrequesting
comments onthese commitments. Wealsofinditunacceptable thatitshould dosowhile announcing
thefinalization ofnegotiations under Article XXIV:6 which canonlyrelate totherenegotiation oftariff
concessions, notcommitments. Neither should thisbearoute fortheverification ofcommitments.
Accordingly, itwould bedesirable toknow what istheprecise significance ofthe
above-mentioned communication, what isthelegalbasis formaking itandunder whatlegalformat
theEUproposes tobinditscommitments initsnewSchedule. TheArgentine Government considers
that, asfollows from theOfficial Journal oftheEuropean Communities No.L334/42 of
30December 1995, circulated on22February 1996, theEUhasinanycaseacknowledged that"the
appropriate legalmodalities ofimplementation remain tobeagreed". Thus, itdoesnotseemreasonable
topropose atime-limit forcomments when these legalmodalities havestillnotbeenagreed.
Therenegotiation ofcommitments being amatter ofdirect commercial interest forArgentina,
aswellasafundamental systemic problem andoneofthecentral themes oftheAgreement on
Agriculture, anydecision inthisrespect should beadopted bytheWorking Party examining the
enlargement oftheEU,which could propose adecision totheCouncil forTrade inGoods.
Argentina therefore objects totheentry intoforce oftheEuropean Union 'snewSchedule until
consultations canbeheldandagreement reached concerning thescope ofeachoftheprocedures for
notifying thevarious aspects covered bythatSchedule andtheWTO body which willhavetomake
thenotifications official andapprove them.