RESTRICTED
PREPARATORY COMMITTEE PC/R
FOR THE 31December 1994
WORLD TRADE ORGANIZATION
(94-2942)
PREPARATORY COMMITTEE FOR THE
WORLD TRADE ORGANIZATION
PREPARATORY COMMITTEE FOR THE WORLD TRADE ORGANIZATION
REPORT TOTHE WTO
1. Thisreport ofthePreparatory Committee fortheWorld Trade Organization (WTO) tothe
WTO hasbeenprepared inpursuance ofparagraph 8(b)(iv) oftheMarrakesh Ministerial Decision
Establishing thePreparatory Committee (MTN/TNC/45(MIN), Annex IV).
2. Incarrying outitstask,thePreparatory Committee held11meetings during theperiod 29April
to21December 1994. Theminutes ofthese meetings andthose oftheSub-Committees, contained
indocuments PC/M/1-11, PC/BFA/M/1-2, PC/IPL/M/1-11, PC/SCS/M/1-6 andPC/SCTE/M/1-5,
willremain therecord oftheCommittee 'swork aftertheentry intoforce oftheWTO Agreement.1
Adoption ofthisreport, which setsouttheaction taken bytheCommittee under itsMinisterial mandate
asoutlinedinparagraph8oftheMarrakeshMinisterialDecisionEstablishingthePreparatoryCommittee
andmatters referred totheWTO forfurther action, constitutes approval bytheMembers ofthataction
taken andofthatreferral.
3. Thefollowing subject matters areincluded inthereport:
A. Introduction
(a) Establishment ofthePreparatory Committee anditssubsidiary bodies .....3
(b) Membership andObservers ................................3
(c) Chairmanship ofthePreparatory Committee anditssubsidiary bodies .....4
(d) Derestriction ofdocuments oftheCommittee anditssubsidiary bodies ....4
B. Report ontheindividual items ofthemandate ofthePreparatory Committee
(a) Administrative, budgetary andfinancial matters
(i) theHeadquarters Agreement provided forinArticle VIII:5 oftheWTO
Agreement .....................................5
(ii) financial regulations, including guidelines fortheassessment ofWTO
Members 'budget contributions, inaccordance withthecriteria setout
inArticle VIIoftheWTO Agreement ....................5
(iii) thebudget estimates forthefirstyearofoperation oftheWTO ....6
(iv) thetransfer oftheproperty, including financial assets, ofthe
ICITO/GATT totheWTO ...........................6
(v) thetransfer andtheterms andconditions ofthetransfer oftheGATT
stafftotheWTO Secretariat ..........................6
(vi) therelationship between theInternational Trade Centre andthe
WTO .........................................7
(vii) other budgetary, financial oradministrative matters ............7
1Thedocuments ofthePreparatory Committee anditssubsidiary bodies arelisted inPC/R/Add.1.PC/R
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(b) Institutional, procedural andlegalmatters
(i) examination ofandapproval oftheschedules submitted toitin
accordance withthe"Decision onAcceptance ofandAccession tothe
Agreement Establishing theWorld Trade Organization" andproposals
regarding terms ofaccession inaccordance withparagraph 2ofthat
Decision
(1) Work onMarket Access Schedules .................7
(2) Working Parties onAccession totheWTO Agreement .....8
(ii) proposals concerning terms ofreference forthebodies oftheWTO,
inparticular those established inArticle IVoftheWTO Agreement,
andtherulesofprocedure which theyarecalled upontoestablish for
themselves, bearing inmind paragraph 1ofArticle XVI
(1) Terms ofreference ...........................9
(2) Rules ofprocedure ...........................9
(3) Notification formats andprocedures ................10
(4) Standing Appellate Body .......................11
(5) Ethical Code ofConduct .......................11
(6) Appointment ofOfficers toWTO bodies .............11
(iii) recommendations totheGeneral Council oftheWTO onappropriate
arrangements withrespect torelations withotherorganizations referred
toinArticle VoftheWTO Agreement ...................11
(c) Matters related totheentry intoforce oftheWTO Agreement andtothe
activities oftheWTO within theCommittee 'sscope andfunctions
(i) Convening andpreparing theImplementation Conference .......12
(ii) Initiating theworkprogramme arising fromtheUruguay Round results
assetoutintheFinal Act,suchasoverseeing, intheSub-Committee
onServices referred toinparagraph 3oftheDecision Establishing
thePreparatory Committee, negotiations inspecific services sectors,
andalsoundertaking work resulting fromDecisions oftheMarrakesh
meeting
(1) Services ..................................13
I. Overseeing on-going negotiations
II. Issues relating tothescope oftheGATS
III. Guidelines fornotifications under theGATS
IV. Working Party onProfessional Services
(2) Trade andEnvironment ........................15
(iii) Discussing suggestions fortheinclusion ofadditional items onthe
agenda oftheWTO 'swork programme ...................16
(iv) Making proposals concerning thecomposition oftheTextiles
Monitoring Body inaccordance withthecriteria setoutinArticle 8
oftheAgreement onTextiles andClothing .................16
(v) Convening thefirstmeeting oftheMinisterial Conference orthe
General Council oftheWTO, whichever meets first, andpreparing
theprovisional agenda thereof .........................17
C. Transitional Arrangements .....................................17
D. ListofPoints forAction setoutintheReport .........................18
Annex Original Members asatEntry intoForce oftheWTO Agreement .............20PC/R
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A. Introduction
(a) Establishment ofthePreparatory Committee anditssubsidiary bodies
(i) Preparatory Committee
4. ThePreparatory Committee fortheWorld Trade Organization (WTO) wasestablished on
14April 1994bytheMarrakesh Ministerial Decision Establishing thePreparatory Committee forthe
World Trade Organization (MTN/TNC/45(MIN), Annex IV).
5. Inaccordance withparagraph 4oftheMinisterial Decision, theCommittee tookdecisions by
consensus.
(ii) Subsidiary Bodies
6. TheMinisterialDecisionEstablishingthePreparatoryCommitteeprovidedfortheestablishment
ofSub-Committees onServices (paragraphs 3and8(c)(ii)) andonBudget, Finance and
Administration (paragraphs 3and8(a)(i)). Atitsfirstmeeting, thePreparatory Committee established
aSub-Committee onInstitutional, Procedural andLegal Matters (PC/M/1, paragraph 2).
7. TheMinisterial Decision onTrade andEnvironment separately provided foraSub-Committee
onTrade andEnvironment tobesetupunder thePreparatory Committee "pending thefirstmeeting
oftheGeneral Council oftheWTO" (MTN/TNC/45(MIN), Annex II).
8. Inorganizing theirwork, further adhocdecisions weretaken bytheSub-Committees mentioned
below:
- TheSub-Committee onServices established anInterim Group onFinancial Services
(PC/SCS/M/2, paragraph 13)andmonitored theactivities oftheNegotiating Groups
onMaritime Transport, Basic Telecommunications andMovement ofNatural Persons,
which hadbeenestablished under therelevant Ministerial Decisions adopted bythe
Trade Negotiations Committee on15December 1993 andcontained intheFinal Act
embodying theresults oftheUruguay Round Negotiations.
- TheSub-Committee onInstitutional, Procedural andLegal Matters established four
informal open-ended contact groups onAgriculture, TRIPS including TRIMs, Anti-
Dumping andSubsidies, alsocharged withthequestion ofSafeguards, andTextiles.
- TheSub-CommitteeonBudget,FinanceandAdministrationestablishedworkinggroups
todealwithspecific parts ofitsmandate.
(b) Membership andObservers
(i) Membership
9. Inkeepingwithparagraph2oftheDecisionEstablishingthePreparatoryCommittee,membership
oftheCommittee wasopentoallSignatories oftheFinal ActoftheUruguay Round ofMultilateral
TradeNegotiationsandtoanycontractingpartytotheGATT1947eligibletobecomeanoriginalmember
oftheWTO inaccordance withArticle XIoftheWTO Agreement. Interms ofparagraph 3ofthe
same Decision, membership oftheSub-Committees wasopentoallmembers oftheCommittee.PC/R
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(ii) Observers
10. ThePreparatory Committee decided (PC/M/1, paragraphs 14and15)tofollow thepractice
adopted bytheUruguay Round Trade Negotiations Committee andtoinvite asobservers the
representatives oftheso-called associated governments, i.e.,States orseparate customs territories that
were currently negotiating accession totheGATT 1947, andrepresentatives oftheUnited Nations,
UNCTAD, IMFandtheWorld Bank.
11. TheSub-Committeeswereleftfreetodecideonthequestionofobservership.TheSub-Committee
onBudget, Finance andAdministration decided nottoinvite observers. TheSub-Committees on
Services andonInstitutional, Procedural andLegal Matters followed thepractice ofthePreparatory
Committee. TheSub-Committee onTrade andEnvironment invited thefollowing organizations in
addition tothefourorganizations mentioned inparagraph 10above: EFTA, FAO, ITC, OECD,
UNCommission onSustainable Development, UNDP, andUNEP.
12. Certain international organizations were associated onanadhocbasis withthework ofthe
bodies established under Sub-Committees. TheContact Group onAgriculture established bytheSub-
Committee onInstitutional, Procedural andLegal Matters invited theFAO, theCodex Alimentarius
Commission, theInternational Office ofEpizootics, andtheSecretariat oftheInternational Plant
Protection Convention. TheContact Group onTRIPS invited theWIPO, andtheContact Group on
Textiles invited theITCB.
(c) Chairmanship ofthePreparatory Committee anditssubsidiary bodies
(i) Preparatory Committee: Mr.Peter D.Sutherland
(ii) Subsidiary Bodies:
- Budget, Finance andAdministration: Mr.A.Szepesi (Hungary)
Mr.Szepesi wasassisted inhistaskbyMr.P.Gosselin (Canada), Chairman
oftheGATT 1947 Committee onBudget, Finance andAdministration
- Services: Mr.C.Manhusen (Sweden)
- Institutional, Procedural andLegal Matters: Mr.K.Kesavapany (Singapore)
- Trade andEnvironment: Mr.L.Lampreia (Brazil)
(d) Derestriction ofdocuments ofthePreparatory Committee anditssubsidiary bodies
13. ThePreparatory Committee adopted theDecision indocument PC/4 providing forthefuture
derestriction ofdocuments pertaining totheCommittee anditssubsidiary bodies.PC/R
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B. Report ontheindividual items ofthemandate ofthePreparatory Committee
(Paragraph 8oftheDecision Establishing thePreparatory Committee2)
(a) Administrative, budgetary andfinancial matters3
(i) theHeadquarters Agreement provided forinArticle VIII:5 oftheWTO
Agreement
14. On22July, thePreparatory Committee approved Geneva, Switzerland, astheseatofthe
WTO (PC/M/4, Annex 1)subject toasatisfactory conclusion ofthenegotiation ofaHeadquarters
Agreement withtheSwiss Authorities.
15. Negotiations onaHeadquarters Agreement withtheSwiss authorities started inSeptember 1994
andwerecarried outbyateamcomposed oftenmembers -theChairman oftheSub-Committee on
Budget, Finance andAdministration, theChairman oftheGATT Committee onBudget, Finance and
Administration, Argentina, France, Indonesia, Japan, Morocco, Pakistan, Trinidad andTobago, Zambia
andfourrepresentatives oftheSecretariat. Thenegotiations covered threeareas: thephysical facilities
fortheWTO (donation oftheCentre William Rappard, thenewconference room, carparks); the
accommodation fortheLLDCs; andtheprivileges andimmunities forboththeWTO andtheMissions
andtheirrespective staff.
16. Atitsmeeting on21December, theCommittee agreed totherecommendations bytheSub-
Committee onBudget, Finance andAdministration thatthemandate oftheteamnegotiating onbehalf
oftheWTO beextended, thataprogess report bepresented tothefirstmeeting oftheWTO 'sGeneral
Council, andthattheoverall results ofthenegotiations betransmitted forapproval toasubsequent
meeting thereof.
(ii) financialregulations,includingguidelinesfortheassessmentofWTOMembers'
budget contributions, inaccordance withthecriteria setoutinArticle VIIof
theWTO Agreement
17. Asstipulated inArticle VII:2 oftheWTO Agreement "thefinancial regulations [oftheWTO]
shall bebased, asfaraspracticable, ontheregulations andpractices ofGATT 1947" which, in
accordance withdecisions oftheCONTRACTING PARTIES toGATT 1947, arebased ontheFinancial
RegulationsandRulesoftheUnitedNations.ThePreparatoryCommitteeapprovedtherecommendation
oftheSub-Committee onBudget, Finance andAdministration thattheSecretariat beentrusted with
thetaskofpreparing draftFinancial Rules andRegulations according totheabove-mentioned principle
sothattheycanbesubmitted forapproval totheGeneral Council early in1995 andthatpending this
approval, thepresent GATT practice bemaintained.
18. With regard toguidelines forbudget contributions byMembers oftheWTO, theCommittee
agreed (PC/BFA/M/1) that,inprinciple, theassessment should reflect shares ininternational trade
ingoods,servicesandintellectualproperty,butthat,pendingfurtherstudy,thecalculationofassessments
2Paragraph 8reads: "The Committee shallperform suchfunctions asmaybenecessary toensure theefficient operation
oftheWTO immediately asofthedateofitsestablishment, including thefunctions setoutbelow"
3Theintroductory paragraph 8(a)reads: "Toprepare recommendations fortheconsideration ofthecompetent body of
theWTO, or,totheextent necessary, takedecisions or,asappropriate, provisional decisions inadvance oftheestablishment
oftheWTO, withrespect totherecommendations submitted toitbytheChairman oftheSub-Committee onBudget, Finance
andAdministration referred toinparagraph 3above, incooperation withtheChairman oftheGATT Committee onBudget,
Finance andAdministration, assisted byproposals from theSecretariat on:"PC/R
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forthe1995 budget oftheWTO should follow existing practice under theGATT 1947. Changes to
reflect theabove-mentioned decision inprinciple would beintroduced nolaterthanoneyearafterthe
creation oftheWTO.
(iii) thebudget estimates forthefirstyearofoperation oftheWTO
19. On8December, theImplementation Conference approved theBudget Estimates for1995.
Therelevant decisions thatwereapproved bythePreparatory Committee andtheSixth Special Session
oftheCONTRACTING PARTIES totheGATT 1947, meeting ontheoccasion oftheImplementation
Conference, arecontained inparagraph 15onpage4,paragraph 6onpage12andparagraph 21on
page13ofdocumentPC/6,L/7577.Thesedecisionsconcernthebudgetanditsfinancing,theprocedures
fortheWTO andtheGATT 1947Committees onBudget, Finance andAdministration during theperiod
inwhich theWTO Agreement isopenforacceptance, andthecontribution totheInternational Trade
Centre, respectively.
20. Paragraph 6ofthetransfer agreement (see(iv)below) alsoapproved on8December stipulates
that"there shallbeacommon budget fortheGATT 1947 andtheWTO from thedateofentry into
force oftheWTO Agreement untilthedateasofwhich thelegal instruments through which the
contracting parties apply theGATT 1947areterminated. During thatperiod, thebasisforassessment
ofthecontracting parties totheGATT 1947, oftheMembers oftheWTO andofcontracting parties
thatarealsoMembers oftheWTO shallbethesame, andasingle payment totheWTO shallbedue
byallcontracting parties totheGATT 1947 andMembers oftheWTO".
(iv) thetransfer oftheproperty, including financial assets, oftheICITO/GATT
totheWTO
21. On8December, thePreparatory Committee andtheSixth Special Session ofthe
CONTRACTING PARTIES totheGATT 1947, meeting ontheoccasion oftheImplementation
Conference,approvedatransferagreementbetweenthePreparatoryCommittee,theInterimCommission
oftheInternational Trade Organization (ICITO) andtheGATT CONTRACTING PARTIES totransfer
allassetsandliabilitiesotherthanstaffcontracts,fromICITOandtheGATTCONTRACTINGPARTIES
totheWTO. Therelevant decisions thatwere approved arecontained inparagraphs 1,4,5,and8
ofdocument PC/9, L/7580.
22. TheCommitteealsorecommendedthatforthesakeoflegalcertainty,thedecisionsithadadopted
alsobeendorsed bytheWTO 'sGeneral Council, asstated inparagraph 8ofPC/9, L/7580.
(v) thetransfer andtheterms andconditions ofthetransfer oftheGATT staff
totheWTO Secretariat
23. TheICITO/GATT 1947 CONTRACTING PARTIES/WTO transfer agreement indocument
PC/9, L/7580 stipulates (paragraphs 2,3and7)that,witheffect fromtheentry intoforce oftheWTO
Agreement, asatransitional arrangement, thestaffofICITO shallperform theduties oftheSecretariat
oftheWTO untiltheappointment ofthestaffoftheSecretariat oftheWTO andthatthestaffofthe
ICITO shallcontinue toperform theduties oftheGATT 1947Secretariat andthose oftheSecretariat
ofthebodies established under theTokyo Round Agreements untiltheappointment ofthestaffofthe
Secretariat oftheWTO; thereafter these duties shallbeperformed bytheSecretariat oftheWTO.
Itwasunderstood thatthiswould beeffected onareimbursable basis(PC/BFA/W/4, paragraph 14(b)).
Accordingly, thePreparatory Committee decided inthisrespect thatpending agreement bytheWTO 's
General Council ontherulesandregulations fortheWTO staff, existing ICITO terms andconditions
ofservice forstaffshallapply.PC/R
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(vi) therelationship between theInternational Trade Centre andtheWTO
24. Thefuture relationship between theInternational Trade Centre andtheWTO wasexamined
byaWorking Group established under theSub-Committee onBudget, Finance andAdministration
andtheGATT1947CommitteeonBudget,FinanceandAdministration.TheWorkingGroupconcluded
thatthematter should befurther discussed early in1995. ThePreparatory Committee therefore
forwarded thismatter totheWTO forfurther consideration andaction asappropriate.
(vii) other budgetary, financial oradministrative matters
25. Atitsmeeting on22July,thePreparatory Committee mandated theSub-Committee onBudget,
Finance andAdministration todecide onmatters relating totheorganizational structure, including a
management review. Thecreation oftwenty-one additional postsfor1994wasdecided (PC/BFA/M/1,
paragraph 8)andaManagement Review (paragraph 6)wasentrusted totheManagement Consulting
firmDeloitte andTouche, which submitted itsreport on19December 1994. Atitsmeeting on
21December, theCommittee agreed, inaccordance withtherecommendations bytheSub-Committee
onBudget, Finance andAdministration, totakenotethatthereport prepared bytheconsultants had
beenpresented andtoforward thereport tothecompetent bodies oftheWTO forconsideration and
action asappropriate.
26. On8December, theCommittee, meeting ontheoccasion oftheImplementation Conference,
approved therecommendations inparagraphs 7(a),(b),(d)and(e)and8ofdocument PC/7, L/7578
concerning administrative measures tobeapplied toMembers withthree years ormore ofunpaid
contributions. TheCommittee agreed thatthefinancial implication referred toinparagraphs 7(c)and
(f)ofthesame document should beconsidered bytherelevant WTO bodies in1995.
27. Onthesameoccasion,theCommitteeapprovedtherecommendationsindocumentPC/8,L/7579
concerning thefinancial obligations ofStates orseparate customs territories which willbeobservers
totheWTO. Theintroductory paragraph totheDecision stipulates thatthese financial obligations
willnotapply toStates orseparate customs territories which areGATT 1947 contracting parties, in
theprocess ofratification oftheWTO Agreement, buthavenotyetbecome Members. Paragraph
4provides that"TheGeneral Council oftheWTO shalltakeadecision under Guideline 8(b)ofAnnex
2totheRules ofProcedure forMeetings oftheGeneral Council (PC/IPL/9) inrespect oftheextension
ofobserver status onlyifthefinancial obligations asanobserver havebeenfullydischarged; andthe
Ministerial Conference shalltakeadecision under Article XII:2 oftheWTO Agreement inrespect
ofaccession onlyifthefinancial obligations asanobserver havebeenfullydischarged".
28. TheCommittee forwarded totheWTO thequestion ofthechoice ofalogofortheWTO for
further consideration andaction.
(b) Institutional, procedural andlegalmatters
(i) examination ofandapproval oftheschedules submitted toitinaccordance
with the"Decision onAcceptance ofandAccession totheAgreement
Establishing theWorld Trade Organization" andproposals regarding terms
ofaccession inaccordance withparagraph 2ofthatDecision
(1) Work onMarket Access Schedules
29. ThePreparatory Committee established aprocess (PC/M/2, paragraphs 17to24)toimplement
itsmandate under thissub-paragraph. Asagreed bytheCommittee, theChairman informed the
GATT 1947Council ofRepresentatives andtheexisting Working Parties onAccession toGATT 1947,PC/R
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including theWorking Party onChina 'sstatus asacontracting party, ofthedetails oftheprocess,
requesting them totakeaction asappropriate.
30. Pursuant tothisprocess andasconcerns themarket access schedules ongoods:
- theseven schedules provisionally annexed totheMarrakesh Protocol subject to
verification, namely, thoseofBangladesh, Benin, Congo, Mauritania, Niger, Tanzania,
andUganda, were verified;
- twelve schedules, including theFrench version oftheCanadian schedule, werereceived
afterMarrakesh4.Ofthese, those ofBurkina Faso, MaliandSlovenia, aswellasthe
French version oftheCanadian schedule, were alsoverified; and
- Cameroon, Côted'Ivoire, Gabon andSenegal, whose schedules hadbeenverified and
annexed totheMarrakesh Protocol, weregiven until15April 1995tocomplete missing
information on"Other Duties andCharges".
31. Pursuant tothisprocess andasconcerns themarket access schedules onservices, theCommittee
noted theoralreport oftheChairman oftheSub-Committee onServices thattheschedules ofEcuador
andSlovenia hadbeenverified, andthatthose ofAngola, Burundi, Mali, Qatar, St.KittsandNevis,
andtheUnited ArabEmirates werestillsubject tobilateral negotiations toberesumed inthenewyear.
32. TheCommittee noted thatanumber ofgovernments, including Angola, Grenada, Mali, Qatar,
St.KittsandNevis, andtheUnited ArabEmirates hadnotconcluded theverification oftheirschedules
either ongoods orservices orboth4.Inthisregard, theCommittee, atitsmeeting on21December,
invited theGeneral Council toadopt theDecision Concerning theFinalization ofNegotiations on
Schedules onGoods andServices contained indocument PC/17.5
(2) Working Parties onAccession totheWTO Agreement
33. ThePreparatory Committee noted thattheWorking Party forSlovenia having completed its
work, Slovenia wasinaposition tobecome original member under Article XIoftheWTO. The
Committee tooknoteofCroatia 'srequest toaccede totheWTO Agreement under Article XIIthereof
andinkeeping withCroatia 'srequest, instructed theWorking Party previously established toexamine
Croatia 'srequest foraccession totheGATT 1947 toconduct thenecessary work andreport tothe
Committee (PC/M/4, paragraph 40). TheCommittee further noted thatasof21December 1994
Ecuador, theRussian Federation andUkraine werepursuing accession totheWTO under Article XII
inthecontext oftheworking parties which hadbeenoriginally established toexamine theirrequests
foraccession totheGATT 1947 inaccordance withtheprocess referred toinparagraph 29above.
34. Atitsmeeting on21December, theCommittee noted thattheexisting working parties for
Bulgaria, Estonia, Latvia, Mongolia, Panama andChinese Taipei hadalsoconducted work onaspects
offoreign trade regimes inrespect ofthose governments whohadexpressed interest inseeking WTO
membership.
4Papua NewGuinea, which became contracting party totheGATT 1947 on16December 1994, subsequently submitted
market access schedules ongoods andservices on30December.
5Burundi andMozambique have until15April 1995 tocomplete theverification oftheir market access schedules in
accordance withparagraph 1oftheDecision onMeasures inFavour ofLeast Developed Countries.PC/R
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35. Alsoatitsmeeting on21December, theCommittee recommended thattheWTO 'sGeneral
Council agree that,asandwhen requests forWTO accession under Article XIIweremade byStates
orseparate customs territories forwhom aGATT 1947 working party already existed, theexisting
working parties should continue theirwork asWTO accession working parties, withstandard terms
ofreference andtheirrespective current chairpersons.
36. TheCommittee tooknoteofrequests fromtheKingdom ofCambodia (PC/W/19), theformer
Yugoslav Republic ofMacedonia (PC/W/18), Sudan (PC/W/4) andtheRepublic ofUzbekistan
(PC/W/20) toaccede totheWTO Agreement under Article XIIandagreed toestablish working parties
toexamine these requests (seePC/M/6, paragraph 33,forSudan, andPC/M/11, Section C,forthe
other three).
37. With regard toaccession under Article XII:2 oftheWTO Agreement, attention isdrawn to
paragraph 4ofthedecision onfinancial obligations indocument PC/8, L/7579 mentioned inparagraph
27above.
38. TheCommittee tooknoteofastatement bytheChairman oftheCouncil ofRepresentatives
oftheGATT 1947onthe"Management ofAccession Negotiations" indocument PC/2, andforwarded
ittotheWTO.
(ii) proposalsconcerningtermsofreferenceforthebodiesoftheWTO,inparticular
those established inArticle IVoftheWTO Agreement, andtherules of
procedure which theyarecalled upon toestablish forthemselves, bearing in
mind paragraph 1ofArticle XVI
(1) Terms ofreference
39. FollowinganexaminationbytheSub-CommitteeonInstitutional,ProceduralandLegalMatters,
thePreparatory Committee decided thatnoparticular work wasneeded inrespect ofbodies whose
mandates were sufficiently welldefined bytherespective WTO Agreements.
40. Theterms ofreference forcertain WTO bodies, i.e.,theCommittees onAgriculture, onBudget,
Finance andAdministration (theterms ofreference inthiscaseareaccompanied byaprovision on
membership), onBalance-of-Payments Restrictions (BOP) andonTrade andDevelopment (CTD),
andonMarket Access resulting fromthemerging oftheGATT 1947Committee onTariff Concessions
andTechnicalGrouponQuantitativeRestrictionsandOtherNon-TariffBarriersincorporatedintoGATT
1994, were agreed bytheCommittee andarecontained indocuments PC/IPL/1, 2,3,4and5,
respectively. These terms ofreference, along withthestatement orunderstanding readoutbythe
Chairman oftheSub-Committee onInstitutional, Procedural andLegal Matters alsoagreed forsome
ofthese Committees atthetimeoftheadoption oftheirterms ofreference andwhich arereproduced
intheminutes oftherelevant meetings (Agriculture -PC/IPL/M/6, paragraphs 23and24;BOP -
PC/IPL/M/7, paragraph 2;andCTD -PC/IPL/M/9, paragraphs 2,3and4),wereforwarded tothe
WTO.
(2) Rules ofprocedure
41. Asapproved bythePreparatory Committee, therules ofprocedure fortheMinisterial
Conference, theGeneral Council, theTrade Policy Review Body andtheDispute Settlement Body,
including guidelines forobserver status forgovernments ofStates orseparate customs territories, are
contained indocument PC/IPL/9. These wereforwarded totheWTO forfurther action, asappropriate.PC/R
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42. Withregard totheappointment ofofficers toWTO bodies (Rule 12oftheRules ofProcedure
fortheMinisterial Conference, Rule12ofthose fortheGeneral Council, Rule3ofthose fortheDispute
Settlement Body andRule5ofthose fortheTrade Policy Review Body), attention isdrawn tothe
Guidelines forAppointment ofOfficers toWTO Bodies submitted bytheChairman oftheGATT 1947
CONTRACTING PARTIES contained indocument PC/IPL/14 andmentioned inparagraph 51below.
43. Withregardtoobserverstatusforgovernments,attentionisdrawntoparagraph4oftheDecision
onfinancial obligations indocument PC/8, L/7579 mentioned inparagraph 27above.
44. On8December, theCommittee, meeting ontheoccasion oftheImplementation Conference,
adopted theDecision indocument PC/10, L/7581 ontheparticipation inmeetings ofWTO bodies of
certain signatories oftheFinal Acteligible tobecome original members oftheWTO (seealsoparagraph
85below).
(3) Notification formats andprocedures
45. Additionalworkingproceduresconcerningnotificationformatsandrequirementsweredeveloped
ininformal, open-ended Contact Groups established todealwithparticular aspects ofWTO Agreements
which required attention toensure thattheWTO became fullyoperational from theentry intoforce
oftheWTO orassoonaspossible thereafter, andbytheGATT 1947Committee onTechnical Barriers
toTrade. ThePreparatory Committee approved thereports andtherecommendations emanating from
these groups, ascontained inthefollowing documents for:
- Agriculture, PC/IPL/12, attachment tothereport.
- Sanitary andPhyto-Sanitary Measures, PC/IPL/6, paragraphs 1,2,3and4.
- Anti-Dumping, PC/IPL/11, Annex 7.
- Subsidies, PC/IPL/11, Annexes 1to6.
- TRIPS, PC/IPL/7, paragraph 9.
- TRIMs, PC/IPL/8, paragraphs 2,4and5.
- Technical Barriers toTrade, PC/IPL/10 (Rev.1 forEnglish only).
46. TheCommittee forwarded these recommendations, which havealsotobeseeninconjunction
withthetransitional arrangements, adopted on8December bytheCommittee meeting ontheoccasion
oftheImplementation Conference, relating totheavoidance ofprocedural andinstitutional duplication
(PC/11, L/7582 referred toinparagraph 85below), totheWTO tobenoted andimplemented, as
appropriate.
47. Atitsmeeting on21December, theCommittee tooknoteofthework doneonprocedures for
arbitration under Article 8.5oftheAgreement onSubsidies andCountervailing measures (non-paper
3247) bytheInformal Group onAnti-Dumping, Subsidies andSafeguards. Itfurther agreed toforward
thiswork totheWTO asabasis forfurther deliberation onthismatter.
48. Alsoon21December,theCommitteeforwardedtotheWTO,forappropriateaction,thequestion
ofcontinued application under theWTO Customs Valuation Agreement oftheinvocation ofprovisions
fordeveloping countries relating todelayed application andreservations under theTokyo Round
Agreement ontheImplementation ofArticle VIIoftheGATT 1947.PC/R
Page11
(4) Standing Appellate Body
49. ThePreparatoryCommitteeapprovedtherecommendationsontheestablishmentoftheAppellate
Body indocument PC/IPL/13 andagreed toforward thesame totheWTO forfurther action, as
appropriate.
(5) Ethical Code ofConduct
50. ThePreparatory Committee forwarded thework done ondraft rules ofconduct forthe
UnderstandingonRulesandProceduresGoverningtheSettlementofDisputes,asresultingfrominformal
consultations heldonthismatter, totheWTO asapossible basis forfurther work.
(6) Appointment ofOfficers toWTO bodies
51. ThePreparatory Committee approved theproposed guidelines forappointment ofOfficers to
WTO Bodies submitted bytheChairman oftheGATT 1947CONTRACTING PARTIES andcontained
indocument PC/IPL/14 andagreed toforward them totheWTO forfurther action, asappropriate.
(iii) recommendations totheGeneral Council oftheWTO onappropriate
arrangements withrespect torelations withother organizations referred toin
Article VoftheWTO Agreement
52. Ontheissue ofobserver status forinternational intergovernmental organizations, thedraft
guidelines indocument PC/IPL/W/14 wereforwarded totheWTO asapossible basisforfuture work.
Ontherecommendation oftheSub-Committee onInstitutional, Procedural andLegal Matters
(PC/IPL/M/11, paragraphs 31and32),thePreparatory Committee recommended totheWTO 'sGeneral
Council thatpending adoption ofagreed guidelines bytheWTO, representatives ofthefourinternational
organizations which hadbeenobservers totheCommittee, namely, theUnited Nations, UNCTAD,
IMFandtheWorld Bank, beinvited asobservers tothefirstmeeting oftheGeneral Council.
53. TheCommittee tooknoteofformal requests forobserver status intheWTO received bythe
Chairman oftheCommittee fromthefollowing organizations: ACP, EBRD, EFTA, FAO, GulfStates
Cooperation Council (GCC), OECD, ITCB, SELA, UNIDO andtheWorld Tourism Organization,
andagreed toforward these requests totheWTO.
54. Asregards appropriate arrangements with respect torelations with other international
intergovernmental andnon-governmental organizations referred toinArticle VoftheWTO Agreement,
theSub-Committee onInstitutional, Procedural andLegal Matters agreed ontheneedtofocus first
onorganizations having functional linkswiththeWTO arising specifically fromtheirmention invarious
WTO Agreements. Those were identified asthefollowing: theIMF, World Bank, WIPO, Customs
Cooperation Council (since renamed World Customs Organization (WCO)), theCodex Alimentarius
Commission, theInternational Office ofEpizootics, andtheSecretariat oftheInternational Plant
Protection Convention; andonenon-governmental organization, namely theISO. ThePreparatory
Committee sawnogrounds forformal institutional linksbetween theWTO andtheUnited Nations,
although theneed fortheestablishment ofcooperative tiesbetween thetwoorganizations was
underscored; thislatter aspect could betaken upbytheWTO. TheCommittee feltthattheWTO should
establish arrangements withUNCTAD foreffective cooperation atanearly stage.PC/R
Page12
55. Awork programme aimed atestablishing close cooperation andmutually supportive relations
between theWTO andtheWIPO wasinitiated (PC/IPL/7, paragraphs 5,6and7).TheCommittee
approved therecommendation bytheSub-Committee onInstitutional, Procedural andLegal Matters
that,during 1995, pending theconclusion ofthese arrangements, WIPO beinvited toattend meetings
oftheWTO 'sTRIPS Council inanobserver capacity (PC/IPL/7, paragraph 8).
56. TheCommittee tooknoteoftheinterest oftheOECD, SELA andtheWorld Tourism
Organization toconclude formal cooperation arrangements withtheWTO andagreed totransmit this
matter totheWTO.
57. Anumber ofnon-governmental organizations (NGOs) haveexpressed theirinterest infollowing
theWTO 'swork inspecific areas, among which theInternational Chamber ofCommerce (ICC). The
Committee suggested thattheapproach tothisquestion could takeintoaccount, inter alia,the
deliberations thathadbeentaking place intheSub-Committee onTrade andEnvironment asdescribed
inparagraphs 73and74.
58. Discussions wereheldonthequestions of(a)formalising, inwriting, theunderstanding that
theInternational Chamber ofCommerce (ICC) andtheInternational Federation ofInspection Agencies
(IFIA) will,forthetimebeing, betheorganizations which aretoconstitute jointly theindependent
entity under Article 4oftheAgreement onPreshipment Inspection, and(b)clarifying thestatus of
thatindependent entity toenable Article 4ofthePSIAgreement tobeimplemented. Proposals inthis
respect willbeprepared bytheSecretariat, inconsultation withinterested delegations andwiththe
IFIA andtheICC. TheCommittee recommended thatthematter beconsidered andacted upon by
theappropriate WTO forum attheearliest possible datewithaviewtoensuring thatthePSIAgreement
isfullyoperational within twomonths oftheentry intoforce oftheWTO Agreement (PC/IPL/M/6
andPC/IPL/M/10).
59. TheCommitteeforwardedthewholematterofappropriatearrangementswithrespecttorelations
withotherinternational intergovernmental andnon-governmental organizations referred toinArticle V
oftheWTO Agreement, aswellasallthework done sofar,totheWTO forfurther consideration
andaction asappropriate. Onaspecific andmoreimmediate matter, theCommittee agreed thatpending
theestablishment ofamore formal agreement withtheIMF, theletter ithadapproved (PC/IPL/M/10,
paragraph 23)besentbytheChairman oftheGATT 1947 Committee onBalance-of-Payments
Restrictions totherelevant authority oftheIMFwithaviewtoensuring thatthearrangements inplace
between GATT 1947 andtheIMFwould continue in1995, andthatthese arrangements beextended
tobalance-of-payments matters intheareaofservices .
(c) Matters related totheentry intoforce oftheWTO Agreement andtotheactivities of
theWTO within theCommittee 'sscope andfunctions
(i) Convening andpreparing theImplementation Conference
60. On22July, thePreparatory Committee set6to15December 1994 asthetarget period for
theImplementation Conference. Italsoagreed thattheConference would becomposed ofameeting
oftheCommitteeatSeniorOfficialsleveltobefollowedimmediatelythereafterbytheCONTRACTING
PARTIES toGATT 1947 meeting inSpecial Session (PC/M/4, paragraphs 43-45)
61. On25October, theCommittee setthedateof8December 1994forholding theImplementation
Conference. TheCommittee alsoagreed totheprovisional agenda fortheConference proposed by
theChairman (PC/M/6, paragraph 6),laterissued asPC/AIR/40, GATT/AIR/3652.PC/R
Page13
62. On8December, theCommittee, meeting ontheoccasion oftheImplementation Conference:
- confirmed 1January 1995 asthedateofentry intoforce oftheWTO Agreement.
TheCommittee 'sunderstanding insodoing isrecorded intheMinutes ofthemeeting
contained indocument PC/M/10, paragraph 4;
- adopted theWTO 'sBudget for1995 (PC/6, L/7577) andtwoother budget-related
Decisionsonunpaidcontributions(PC/7,L/7578)andonobservers'financialobligations
(PC/8, L/7579);
- adopted theICITO/GATT/WTO Transfer Ageement (PC/9, L/7580), which wasalso
adopted bytheExecutive Committee oftheICITO which metlaterthesame day;
- adopted transitional arrangements forthecoexistence of:
- GATT 1947andtheWTO Agreement ontheonehand(PC/12, L/7583); and
- theTokyo Round Agreements onanti-dumping (PC/13, L/7584 and
PC/14, L/7585) andonsubsidies (PC/15, L/7586 andPC/16, L/7587) and
theWTO Ageement ontheother. These lastfourDecisions weresubsequently
adopted thesame daybytherespective Code Committees andissued as
documents ADP/131 and132andSCM/186 and187,respectively:
- adopted twoDecisions ontheParticipation inmeetings ofWTO bodies bycertain
signatories(PC/10,L/7581)andonavoidanceofproceduralandinstitutionalduplication
(PC/11, L/7582).
63. Alltheabove-mentionedDecisionswerealsoadoptedornotedbytheCONTRACTINGPARTIES
either attheirSixth Special Session (6SS/SR/1) ortheirFiftieth Session (SR.50/2).
(ii) Initiating thework programme arising fromtheUruguay Round results asset
outintheFinal Act,suchasoverseeing, intheSub-Committee onServices
referred toinparagraph 3oftheDecision Establishing thePreparatory
Committee, negotiations inspecific services sectors, andalsoundertaking work
resulting from Decisions oftheMarrakesh meeting
(1) Services
64. ThePreparatory Committee 'smandate intheareaontrade inservices wasconducted bythe
Sub-Committee onServices. TheSub-Committee onServices heldsixmeetings during theperiod
19May1994 to16December 1994 andaddressed thefollowing matters:
I. Overseeing on-going negotiations
65. TheNegotiating Group onBasic Telecommunications heldfourmeetings in1994. TheGroup
approved aquestionnaire onregulatory issues andmarket structure (TS/NGBT/W/3). Themajority
ofgovernments participating inthenegotiations havecommunicated theirresponses tothequestionnaire
forfurther discussion andexamination. Discussions, based onaNote prepared bytheSecretariat
(TS/NGBT/W/2) arealsounder wayontechnical andconceptual issues related totheconduct of
negotiations andthescheduling ofcommitments onbasic telecommunications. Theparticipants have
beenurged toputforward initial offers byMarch orApril 1995.PC/R
Page14
66. TheNegotiating Group onMaritime Transport Services heldthree meetings in1994. The
Group approved aquestionnaire onmaritime transport services (S/NGMTS/W/2). 15January 1995
wasagreed asthedeadline forthesubmission ofresponses tothequestionnaire. Discussions inthe
Group onadraftschedule onmaritime transport services haveconfirmed thegeneral viewthatwould
beauseful wayofapproaching thescheduling ofcommitments inthissector.
67. TheNegotiating Group onMovement ofNatural Persons heldthree meetings in1994.
Preliminary multilateral discussions wereheldonhorizontal commitments inthisarea. Tofacilitate
work, theSecretariat prepared aninformal notedated 15September 1994 which analyzed thenature
ofthevarious possible types ofhorizontal commitments. TheGroup heard preliminary reports from
certain delegations onbilateral consultations aimed atimproving thelevelofcommitments inthisarea.
68. TheInterim Group onFinancial Services established bytheSub-Committee onServices on
15July1994(PC/SCS/M/2, paragraph 13)wasmandated tomonitor progress inthenegotiations under
paragraph 1oftheDecision onFinancial Services adopted atMarrakesh untiltheentry intoforce of
theWTO Agreement andtheestablishment oftheCommittee onTrade inFinancial Services. The
Interim Group has,sofar,heldtwomeetings. Participants stressed theircommitment toachieving
abroad, MFN-based package ofliberalization commitments andreported onpreliminary bilateral
consultations andnegotiations.
II. Issues relating tothescope oftheGATS
69. Todealwithcertain unresolved issues raised during thefinalstages oftheUruguay Round
negotiations, thethenChairman oftheUruguay Round Group onNegotiations inServices hadprovided
participants withanadditional period upto15December 1994 toconsult onsuchmatters andreport
theresults totheCouncil forTrade inServices under theWTO forappropriate action (Chairman 's
statement dated 14December 1993 (MTN.GNS/W/260)). TheSub-Committee onServices agreed
thatitwould provide theforum forsuchdiscussions. Atitsmeeting on21December, thePreparatory
Committee tooknoteoftheintention oftheChairman oftheSub-Committee toreport onthismatter
onhisownresponsibility totheWTO 'sCouncil forTrade inServices. TheCommittee alsotooknote
ofthestatements made from thefloor inthisconnection.
III. Guidelines fornotifications under theGATS
70. Asrequested byMembers, theSecretariat prepared draftguidelines fornotifications required
under different provisions oftheGATS. Theguidelines wererevised onthebasis ofdiscussions in
theSub-Committee. Theguidelines, asagreed, aresetoutindocument PC/SCS/W/8 fortransmission
totheCouncil forTrade inServices forconsideration andaction asappropriate.
IV. Working Party onProfessional Services
71. TheSecretariat wasasked byMembers oftheSub-Committee toestablish contacts withthe
relevant specialized international bodies inpreparation forthecommencement ofwork bytheWorking
Party onProfessional Services upon theentry intoforce oftheGATS. TheMinisterial Decision on
Professional Services establishing theWorking Party identifies theaccountancy sector asanareaof
priority. Accordingly theSecretariat initiated contacts withaviewtodeveloping relations withthe
International Federation ofAccountants (IFAC). Areport bytheSecretariat ontheseandother contacts
iscontained inparagraph 22ofdocument PC/SCS/M/3.
72. ThePreparatory Committee tooknoteofthework doneintheareaofservices andagreed to
transmit ittotheWTO forinformation andaction, asappropriate.PC/R
Page15
(2) Trade andEnvironment
73. TheSub-Committee onTrade andEnvironment heldfiveformal meetings. Inaddition, the
Chairman hasheldinformal consultations on:theorder inwhich thefuture Committee onTrade and
Environment 'swork programme should betaken up;howbesttoaddress theseventh itemofthework
programme pertaining totheissue ofexports ofdomestically prohibited goods; andobserver status
forintergovernmental andnon-governmental organizations. Consultations onthelatterissuehavebeen
carried outinthecontext oftheMinisterial Decision toinvite theSub-Committee, andtheWTO
Committee onTrade andEnvironment when itisestablished, toprovide input totherelevant bodies
inrespect ofappropriate arrangements forrelations withintergovernmental andnon-governmental
organizations referred toinArticle VoftheWTO.
74. Withregard toappropriate arrangements forrelations withnon-governmental organizations the
Preparatory Committee tooknoteofabackground notebytheSecretariat indocument PC/SCTE/W/2
on"Arrangements forrelations withnon-governmental organizations intheUnited Nations, itsrelated
bodies andselected other intergovernmental organizations". Italsotooknoteofasubmission bya
delegation indocument PC/SCTE/W/6 on"NGO observation ofthework ofCommittee onTrade and
Environment". TheCommittee hasagreed totransmit these twonotes totheGeneral Council for
information. Informal consultations conducted bytheChairman oftheSub-Committee haveledto
acertain amount ofprogress onthisissue. TheCommittee hasagreed thatinformal consultations will
needtobecontinued inthecontext ofWTO Committee onTrade andEnvironment.
75. Following ageneral exchange ofviews onthework programme, Members agreed tofocus
initially onthefirst,thirdandsixthitems ofthework programme, building where possible onthework
oftheGroup onEnvironmental Measures andInternational Trade (EMIT) under theGATT 1947.
Itwasalsoagreed thatdelegations would befreetoaddress other items ofthework programme with
aviewtoensuring thatwork should progress flexibly andconstructively. TheSecretariat prepared
several background papers, attherequest ofMembers, toassist discussions.
76. Under thefirstitemofitswork programme -therelationship between theprovisions ofthe
multilateral trading system andtrade measures forenvironmental purposes, including those pursuant
tomultilateral environmental agreements -theSub-Committee focused ontheuseoftrade measures
forenvironmental purposes, particularly those applied inthecontext ofmultilateral environmental
agreements andthose applied specifically tonon-parties tothose agreements. Delegations began
reviewing thepotential advantages anddisadvantages ofexanteandexpostapproaches toestablishing
therelationship ofthese measures totheprovisions ofthemultilateral trading system, andarelooking
forward toSecretariat papers ontheissue including onerequested from theSecretariat onthe
effectiveness andnecessity ofusing trade measures inthiscontext.
77. Under thethirditemofthework programme -therelationship between theprovisions ofthe
multilateral trading system and: (a)charges andtaxes forenvironmental purposes; (b)requirements
forenvironmentalpurposesrelatingtoproducts,includingstandardsandtechnicalregulations,packaging,
labelling andrecycling -delegations began reviewing theuseofenvironmental taxes inparticular in
thecontext ofGATT disciplines onborder taxadjustment, andextended further theirexamination of
environmental regulations andstandards, notably those related toeco-labelling, onthebasis ofthe
extensive work thathadalready beenundertaken onthissubject bytheEMIT Group.
78. Under thesixthitemofthework programme -theeffect ofenvironmental measures onmarket
access, especially inrelation todeveloping countries, inparticular totheleastdeveloped among the,
andenvironmental benefits orremoving traderestrictions anddistortions -delegations highlighted for
further examination issues suchastheeffects oftariffescalation, non-tariff barriers andtradedistortingPC/R
Page16
subsidies ontheenvironment, export diversification anditsrelationship toenvironmental protection,
market opportunities forenvironmentally friendly products particularly from developing countries,
andtheimportance oftechnology transfer andtechnical andfinancial assistance inpursuit ofsustainable
development. Many noted thisisacross-cutting issuerelated toother items ofthework programme,
includingtransparencyandcharges,taxesandproductrequirementswhichserveenvironmentalpurposes.
79. Informal consultations ledtoagreement intheSub-Committee ontwoother issues:
(a) work ontheissueofexports ofdomestically prohibited goods should betaken upearly
in1995, andwillbeassisted byabackground paper being prepared bytheSecretariat.
(b) thelistofintergovernmental organizations invited toobserve thework oftheSub-
Committee wasextended toinclude UNEP, FAO, ITC,UNDP, theUNCommission
onSustainable Development, OECD andEFTA. Itwasagreed thatfurther requests
forobserver status fromsuchorganizations should betaken uponacase-by-case basis,
taking intoaccount thegeneral criteria andconditions forobservership for
intergovernmental organizations tobeapproved bytheSub-Committee onInstitutional,
Procedural andLegal Matters.
80. TheCommittee tooknoteofthework doneaswellastheprogramme setoutforthefuture,
andagreed totransmit ittotheWTO forinformation andaction, asappropriate.
81. The Committee recalled theMinisterial Decision onTrade and Environment
(MTN.TNC/45(MIN), Annex II),which invites thefirstmeeting oftheGeneral Council oftheWTO
toestablish aCommittee onTrade andEnvironment, opentoallmembers oftheWTO, withtheterms
ofreference andprogramme ofwork ascontained inthatMinisterial Decision, andtransmitted tothe
WTO'sCommitteetheworkingdocumentsandreportsoftheSub-CommitteeonTradeandEnvironment.
(iii) Discussing suggestions fortheinclusion ofadditional items ontheagenda of
theWTO 'swork programme
82. Suggestions fortheinclusion ofadditional items ontheagenda oftheWTO 'swork programme
were made bydelegations attheMinisterial Meeting oftheUruguay Round Trade Negotiations
CommitteeatMarrakeshfrom12to14April1994.TheChairman,Mr.SergioAbreuBonilla(Uruguay),
listed these suggestions inhisconcluding remarks on15April 1994 (MTN.TNC/45(MIN), page12,
sixth paragraph). ThePreparatory Committee tookupthismatter atitsfirstmeeting on29April
(PC/M/1, paragraph 8).TheCommittee forwarded thismatter totheWTO 'sGeneral Council forfurther
consideration andaction asappropriate.
(iv) Making proposals concerning thecomposition oftheTextiles Monitoring Body
inaccordance withthecriteria setoutinArticle 8oftheAgreement onTextiles
andClothing
83. Atitsmeeting on21December, thePreparatory Committee tooknoteoftheoralreport by
theChairman oftheSub-Committee onInstitutional, Procedural andLegal Matters andagreed with
hisrecommendation thatthematter beforwarded totheWTO forappropriate action. TheCommittee
alsotooknoteofthestatements made from thefloor inthisconnection.PC/R
Page17
(v) Convening thefirstmeeting oftheMinisterial Conference ortheGeneral
Council oftheWTO, whichever meets first, andpreparing theprovisional
agenda thereof
84. Atitsmeeting on21December, thePreparatory Committee decided toconvene thefirstmeeting
oftheGeneral Council oftheWTO on31January 1995. Itfurther agreed thatthemeeting should
bedevoted entirely tothemost immediate "housekeeping" tasks.
C. Transitional Arrangements6
85. On8December, thePreparatory Committee, meeting ontheoccasion oftheImplementation
Conference, adopted several decisions ontransitional arrangements. Therecommendations contained
intheDecision concerning thetransitional co-existence oftheGATT 1947 andtheWTO Agreement
(PC/12, L/7583) andtheavoidance ofprocedural andinstitutional duplication (PC/11, L/7582) were
forwarded totheSixth Special Session oftheGATT 1947 CONTRACTING PARTIES forapproval
andaction. TheDecision ontheparticipation inmeetings ofWTO bodies ofcertain signatories of
theFinal Acteligible tobecome original members oftheWTO (PC/10, L/7581) wasforwarded to
theSixthSpecialSessiontobenotedandtotheWTOforinformationandimplementation,asappropriate.
86. Onthesameoccasion, theCommittee adopted fourotherDecisions ontransitional arrangements
concerning theco-existence ofboththeTokyo Round andWTO Agreements onAnti-Dumping
(PC/13/, L/7584 andPC/14/, L/7585), andSubsidies (PC/16/, L/7586 andPC/17/, L/7587), which
itforwarded totheCONTRACTING PARTIES andtotherespective Parties/Signatories foraction.
These Decisions weresubsequently adopted bytherespective Code Committees, which metthesame
day,andre-issued asdocuments ADP/131 and132inthecaseofanti-dumping andSCM/186 and187
inthatofsubsidies.
87. Alsoonthesame occasion, theCommittee adopted theAgreement providing forthetransfer
ofallassets andliabilities, other thanstaffcontracts, fromtheICITO/GATT totheWTO indocument
PC/9, L/7580 andforwarded ittotheSixthSpecial Session ofGATT 1947CONTRACTING PARTIES
foradoption andtotheExecutive Committee oftheICITO forapproval andaction. TheICITO 's
Executive Committee alsometon8December toapprove theAgreement which wasthenre-issued,
dulysigned, asdocument ICITO/1/39.
88. Attention isdrawn toparagraph 6ofAnnex 1todocument PC/6, L/7577, concerning rules
fortheWTO andtheGATT 1947Committees onBudget, Finance andAdministration during theperiod
inwhich theWTO Agreement isopenforacceptance (seealsoparagraph 19above), which isrelevant
fortransitional arrangements.
6Thesubject of"Transitional Arrangements" wasincluded byconsensus inthemandate oftheCommittee atitsmeeting
on31May 1994 (PC/M/2, paragraph 6and7).PC/R
Page18
D. ListofPoints forAction setoutintheReport
89. Matters forwarded totheWTO forinformation andimplementation, asappropriate.
(a) Administrative, Budgetary andFinancial:
(1) The1995 Budget: paragraphs 19and20
(2) Transfer agreement ICITO/GATT/WTO: paragraphs 21and87
(b) Institutional, Procedural andLegal :
(1) Market Access Schedules: paragraph 29
(2) Accessions: paragraphs 33,34,36and37
(3) Terms ofreference ofWTO bodies: paragraphs 39and40
(4) Rules ofprocedure: paragraphs 43and44
(5) Participation ofcontracting party signatories: paragraphs 44and85
(6) Notification formats andprocedures: paragraphs 45and46
(7) Observer status forintergovernmental organizations: paragraph 52
(8) Transitional Arrangements: paragraphs 85-88
(9) Date andprovisional agenda ofthefirstmeeting oftheGeneral Council:
paragraph 84
90. Matters forwarded totheWTO forfurther consideration andaction asappropriate.
(a) Administrative, Budgetary andFinancial:
(1) Headquarters Agreement: paragraphs 15and16
(2) Financial regulations: paragraph 17and18
(3) Transfer agreement ICITO/GATT/WTO: paragraph 22
(4) StaffTransfer: paragraph 23
(5) ITC/WTO relationship: paragraph 24
(6) Organizational matters: paragraphs 25-28, ofwhich management review (25),
unpaid contributions (26)andfinancial obligations (27)
(a) Institutional, Legal andProcedural:
(1) Market Access Schedules: paragraphs 30-32
(2) Accessions: paragraph 35
(3) Management ofaccession negotiations: paragraph 38
(4) Rules ofprocedure: paragraph 41
(5) Notification formats andprocedures: paragraphs 47and48
(6) Appellate Body: paragraph 49
(7) Ethical codeofconduct: paragraph 50
(8) Appointment ofofficers ofWTO bodies: paragraphs 42and51
(9) Observer status forintergovernmental organizations: paragraphs 52and53
(10) PSIentity: paragraph 58
(11) Arrangements withintergovernmental organizations: paragraphs 54-56
(12) Arrangements withNGOs: paragraphs 57,59,73and74
(13) Discussion ofsuggestions fortheinclusion ofadditional items ontheagenda
oftheWTO 'swork programme: paragraph 82
(14) Composition oftheTMB: paragraph 83PC/R
Page19
(c) Services:
(1) Scope oftheGATS: paragraph 69
(2) Guidelines forGATS notifications: paragraph 70
(3) Overall work onServices: paragraph 72
(d) Trade andenvironment:
(1) Overall work onEnvironment: paragraph 80
(2) Establishment ofCommittee onTrade andEnvironment: paragraph 81PC/R
Page20
ANNEX
Original Members asatEntry intoForce oftheWTO Agreement
Antigua andBarbuda Argentina Australia
Austria Bahrain Bangladesh
Barbados Belgium Belize
Brazil Brunei Darussalam Canada
Chile Colombia Costa Rica
Côted'Ivoire Czech Republic Denmark
Dominica European Communities Finland
France Gabon Germany
Ghana Greece Guyana
Honduras Hong Kong Hungary
Iceland India Indonesia
Ireland Italy Japan
Kenya Korea Kuwait
Luxembourg Macau Malaysia
Malta Mauritania Mauritius
Mexico Morocco Myanmar
Namibia Netherlands NewZealand
Nigeria Norway Pakistan
Paraguay Peru Philippines
Portugal Romania Saint Lucia
Saint Vincent Senegal Singapore
&theGrenadines Slovak Republic South Africa
Spain SriLanka Suriname
Swaziland Sweden Tanzania
Thailand Uganda United Kingdom
United States Uruguay Venezuela
Zambia