RESTRICTED
PREPARATORY COMMITTEE PC/IPL/W/3
FOR THE 15July1994
WORLD TRADE ORGANIZATION
(94-1468)
SUB-COMMITTEE ONINSTITUTIONAL,
PROCEDURAL AND LEGAL MATTERS
ARRANGEMENTS BETWEEN THE GATT AND URUGUAY ROUND BODIES
AND INTERNATIONAL ORGANIZATIONS
Note bytheSecretariat
Under themandate assigned toitbythePreparatory Committee, theSub-Committee on
Institutional, Procedural andLegal Matters isrequired, interalia,tomake recommendations concerning
theappropriate arrangements withrespect torelations withother organizations referred toinArticle V
oftheWTO Agreement.
Toassist itinthistask, theSub-Committee, atitsmeeting on13June1994, requested the
Secretariat tocompile alistofinter-governmental organizations mentioned intheUruguay Round Final
Acttexts together withtheprovisions therein thatprovided parameters forcooperation withthese
organizations, aswellasofother inter-governmental organizations whose work might berelevant to
theWTO. ThisNotewascirculated asPC/IPL/W/2 dated 29June1994. Atitsmeeting on4July,
theSub-Committee requested theSecretariat toprepare anadditional notedescribing theexisting
arrangements between theGATT 1947 andUruguay Round bodies ontheonehand, andother
international organizations ontheother.
Thepresent Notehasbeenprepared inresponse tothatrequest. Sections I,IIandIIIsetout
thearrangementsforobserverstatusofinternationalorganizationsinGATTbodies,inbodiesestablished
under certain arrangements negotiated under GATT auspices, andintheUruguay Round. Section IV
provides information onother arrangements thatexistwithcertain organizations generally, andin
particular withtheIMF, theWorld Bank, theorganizations intheUnited Nations system, theCCC
andtheISO. Annexes IandIIprovide details oncertain arrangements entered intobetween theGATT
andtheIMF, andtheGATT andtheUN. Annex IIIliststheinternational organizations withobserver
status invarious GATT bodies, aswellasthose organizations inwhich theGATT hasobserver status
orwhose meetings itisinvited toattend. Organizations referred tobyacronyms inthebody ofthe
Note maybeidentified byreference totheSynoptic tableinAnnex IIIG.
_______________
I. Arrangements forobserver status ofinternational organizations inGATT bodies1
(i) Observers atSessions oftheCONTRACTING PARTIES
1. Rule9oftheRulesofProcedureforsessionsoftheCONTRACTINGPARTIES(BISD12S/10)
provides asfollows: "Representatives ofother governments invited totheUnited Nations Conference
1ANote bytheSecretariat onobserver status inGATT iscontained inC/173. ThisNote should bereadinconjunction
withtheDecision taken bytheCouncil inJuly1993 (L/7286) concerning observer status ofgovernments intheCouncil.
Document C/173/Suppl.3/Rev.2 provides anupdated listofobservers toGATT.PC/IPL/W/3
Page2
onTrade andEmployment andofintergovernmental organizations mayattend themeetings asobservers
ontheinvitation oftheCONTRACTING PARTIES and,ontheinvitation oftheCONTRACTING
PARTIES, participate without voteinaccordance withtheterms ofsuchinvitation."
2. Pursuant tothisrule,theCONTRACTING PARTIES haveadmitted asobservers atsessions
theorganizations listed inAnnex IIIA.While there havebeenafewinstances where observer status
hasbeenrequested byaninternational organization, andgranted, onlyforaparticular session, observer
status hasnormally beengranted foranindefinite period.
(ii) Observers intheCommittee onTrade andDevelopment
3. TheCommittee onTrade andDevelopment hasnotadopted anyrules fortheadmission of
observers toitsmeetings. Under along-standing practice, international organizations areinvited to
attend meetings oftheCommittee asobservers uponreceipt ofaformal request fromthem. Incertain
instances, members oftheCommittee havebeenconsulted informally todetermine thatthere would
benoobjection toissuing aninvitation totherequesting international organizations. Although the
needhasnotarisen, anyrequests thatpresented aproblem would bebrought before theCommittee.
Theorganizations presently invited toattend asobservers areshown inAnnex IIIC.
(iii) Observers atmeetings oftheCouncil ofRepresentatives
4. International organizations withobserver status atsessions arenotautomatically admitted as
observers totheCouncil ortothose ofitssubsidiary bodies. Atitsfirstmeeting inSeptember 1960,
theCouncil agreed thatthefollowing should beinvited toberepresented byobservers atCouncil
meetings: "inter-governmental organizations, asfollows: International Monetary Fund, Organization
forEuropean Economic Co-operation,2United Nations, otherinter-governmental organizations directly
interested inmatters before theCouncil, andalsothesecretariats ofregional associations foreconomic
integration." Theorganizations presently invited toCouncil meetings inaccordance withthisprovision
areshown inAnnex IIIB.
5. TheCouncil hasnottaken adecision ontherights andobligations ofobservers. Following
theguidance inthisrespect inRule9oftheRules ofProcedure forsessions oftheCONTRACTING
PARTIES, which provides thatobservers mayattend meetings andparticipate indiscussions without
vote, theCouncil has,inpractice, invited observers tospeak afterCouncil members havespoken on
aparticular point.
6. AttheCouncil meeting on16May1990, theChairman recalled thatinJuly1984, thethen
Chairman hadundertaken toproceed withinformal consultations concerning procedures andconditions
forconsidering requests forobserver status andtherôleofobservers inGATT meetings. Such
consultations hadbeenheldfrom 1984 to1986, buthadnotledtoconcrete results. Against this
background, theCouncil agreed totheChairman 'ssuggestion that"thewhole issue ofthestatus of
observersandtherightsandobligationsofobserversbereviewedattheendof1992"(C/M/241,item1).
Following suchareview, theCouncil, atitsmeeting inJuly1993 (C/M/265), adopted aDecision
concerning observer status ofgovernments intheCouncil (L/7286). Atthatmeeting, theCouncil
Chairman indicated thatwithregard totheobserver status ofinternational organizations intheCouncil
andatsessions oftheCONTRACTING PARTIES, itwashisunderstanding, onthebasis ofhis
consultations, thatnofurther action wasrequired atthatstage.
2Now theOrganization forEconomic Cooperation andDevelopment (OECD).PC/IPL/W/3
Page3
(iii) Observers atmeetings ofsubsidiary bodies oftheCouncil
7. With regard toobservers atsubsidiary bodies, theprocedures followed bytheIntersessional
Committee, predecessor totheCouncil, provided forcontracting parties notmembers ofthatCommittee
orofaworking party established byittoberepresented byobservers atmeetings oftheCommittee
orworking party. Those procedures didnotdealwithnon-contracting party governments orwith
international organizations.
8. Thereis,however,along-standingpracticeintheCouncilunderwhichinternationalorganizations
withobserver status intheCouncil areinvited toattend meetings ofallsubsidiary bodies asobservers,
except thoseoftheCommittee onBudget, Finance andAdministration. Inafewinstances, organizations
without Council observer status havebeeninvited toattend meetings ofsubsidiary bodies because of
adirect involvement inthesubject matter under discussion. Thispractice hasbeenfollowed, for
example, withregard totheCustoms Cooperation Council intheCommittee onTariff Concessions,
andtheUNEnvironmental Programme intheGroup onEnvironmental Measures andInternational
Trade.
9. Observer international organizations receive copies ofthemain GATT documents series (L/,
C/,C/W/, etc.)andofdocuments relating tothesubsidiary bodies which theyattend asobservers.
II. Arrangements forobserver status inbodies established under certain arrangements negotiated
under GATT auspices
(i) Councils andCommittees established under theTokyo Round Agreements
10. Attheirfirstmeetings in1980 and1981, eachoftheCommittees andCouncils established
under theTokyo Round Agreements adopted similar procedures withrespect totheparticipation of
international organizations intheirmeetings. Theprocedures read, ineachcase, asfollows: "The
Committee mayinvite, asappropriate, international organizations tofollow particular issues ofthe
Committee inanobserver capacity. Inaddition, requests from international organizations tofollow
particular issues within theCommittee inanobserver capacity shallbeconsidered onacase-by-case
basis bytheCommittee". Furthermore, "observers mayparticipate inthediscussions butdecisions
shallbetaken onlybySignatories" and"theCommittee maydeliberate onconfidential matters inspecial
restricted sessions."
11. Theorganizations thathavebeeninvited toattend meetings ofthese Committees andCouncils
arelisted inAnnex IIID.
(ii) Textiles Committee
12. TheTextiles Committee hasnotadopted anysetofrulesordrawn upanygeneral criteria for
theadmission ofobservers. Anyrequest forobserver status isconsidered onacase-by-case basis,
andaformal decision ontherequest isthentaken bytheCommittee. Anumber ofinternational
organizations havebeengranted suchstatus andattend meetings oftheCommittee (ILO, UNCTAD,
IMF, World Bank, EFTA andOECD). TheInternational Textiles andClothing Bureau (ITCB) was
granted observer status inDecember 1988.PC/IPL/W/3
Page4
III. Arrangements forobserver status ofinternational organizations intheUruguay Round
13. Atitsmeeting on3July1987, theTrade Negotiations Committee (TNC) adopted thefollowing
Decision3concerning attendance ofinternational organizations intheproceedings oftheUruguay Round:
"1. Inrecognitionofthefactthattheattendanceofinternationalorganizationscouldfacilitate
theattainment oftheobjective ofstrengthening theinterrelationship between trade policies
andother economic policies affecting trade anddevelopment, representatives ofinternational
organizations would beinvited toattend formal meetings ofnegotiating bodies during theinitial
phase asindicated below. Itisopen tonegotiating bodies torecommend theattendance of
other international organizations. Since thenegotiations aretaking place among participants,
thesolepurpose ofsuchattendance istoenable negotiating bodies toseekappropriate technical
support inthefieldofexpertise ofthese organizations, tocomplement theexpertise primarily
available fromparticipants. Thistechnical support might taketheformoforalresponses during
themeetings torequests through theChairman forfactual information onandclarification of
matters concerning therelevant instruments andactivities ofanysuchorganization, andfactual
papers tobeprepared attherequest ofthebody.
2. Itisunderstood thattherulesontheconfidentiality oftheproceedings ofthenegotiating
bodies willalsoapply tosuchrepresentatives andthatthecontent ofdiscussions anddocuments
would notbeavailable foruseoutside international secretariats attending meetings.
3. Itisalsounderstood thatsupport byinvited international organizations would begiven
inamanner which doesnotaffect thenegotiating positions ofparticipants andinformation
obtained would beusedonlyforthepurpose indicated inparagraph 1above.
4. Itisalsounderstood that,following normal practice, negotiating bodies maydecide
toholdclosed meetings when theyconsider them necessary."
14. TheDecision wasaccompanied bythefollowing listing:
Negotiating Group Area Organizations
Group 1 Tariffs CCC
Group 2 Non-Tariff Measures CCC, UNCTAD
Group 3 Natural Resource-Based Products None
Group 4 Textiles andClothing None
Group 5 Agriculture FAO
Group 6 Tropical Products FAO
Group 7 GATT Articles IMF
Group 8 MTN Agreements andArrangements CCC when valuation code is
discussed. ISOandIECwhen
TBTcodeisdiscussed.
Group 9 Safeguards None
Group 10 Subsidies andCountervailing Measures None
Group 11 Trade-Related Aspects ofIntellectual CCC, UNCTAD, WIPO
Property Rights including Trade in
Counterfeit Goods
Group 12 Trade-Related Investment Measures IBRD, IMF
Group 13 Dispute Settlement None
3MTN.TNC/3, Annex.PC/IPL/W/3
Page5
Group 14 Functioning oftheGATT System IBRD, IMF, UNCTAD
Surveillance Body None
GNG IBRD, IMF, UN,UNCTAD
GNS IBRD, IMF, UN,UNCTAD
TNC IBRD, IMF, UN,UNCTAD
15. FollowingtherestructuringoftheUruguayRoundnegotiatinggroupsinApril1991,thequestion
ofparticipation ofinternational organizations wasagain considered. AtaTNC meeting inJune1991,
theChairman noted thatthere-allocation ofnegotiating subjects insome ofthenewgroups would mean
thatinternational organizations would either beinvited toonlypartsofformal meetings oftherelevant
negotiating groups dealing withareasofspecific concern tothem, ortotheentire meetings. Forpractical
reasons, thelattercourse ofaction wasagreed to.Thelistbelow indicates theinternational organizations
invited tomeetings oftheindividual negotiating groups inthenewstructure, inkeeping withthebasis
oftheirparticipation intheformer negotiating groups.4
Negotiating Group Organization
Agriculture FAO
(exNG5)
Institutions IBRD, IMF, UNCTAD
(exNG13and14)
Market Access CCC, FAO, IBRD, IMF, UNCTAD
(exNG1,2,3and6)
RuleMaking andTRIMS CCC, IBRD, IEC, IMF, ISO
(exNG2,7,8,9,10,and12)
Textiles andClothing None
(exNG4)
TRIPS CCC, UNCTAD, WIPO, UNESCO
(exNG11)
Surveillance Body None
Services IBRD, IMF, UN,UNCTAD
GNG IBRD, IMF, UN,UNCTAD
TNC IBRD, IMF, UN,UNCTAD
16. Thequestion oftheparticipation ofinternational organizations wasalsoraised inthecontext
ofthepreparations fortheMarrakesh Ministerial meeting. Itwasagreed thatthefourorganizations
thathadregularly attended meetings oftheTNC, namely theUN,UNCTAD, IMFandtheWorld
Bank, aswellasthose thathadparticipated intheearlier Negotiating Groups, namely theCCC, FAO,
ISO,IEC,UNESCOandWIPO,wouldbeinvited.TheChairmansaidheproposedtorespondpositively
tolikely requests from various regional intergovernmental organizations toattend theMarrakesh
Ministerial meeting asobservers, andthatsuchorganizations would not,inprinciple, beinvited to
speak unless sufficient timewasavailable, although theycould, iftheywished, circulate written
statements forinclusion intherecord.5Theorganizations hehadinmind were regional economic
intergovernmental organizations which haddemonstrated acontinuing interest intheworkoftheGATT
andtheUruguay Round either through theirobserver status atGATT CONTRACTING PARTIES '
sessions ormeetings oftheCouncil, orwhich hadmade useful technical contributions tothediscussions
among theparticipants throughout thenegotiations. Onthisbasis, theInter-American Development
Bank (IDB), theEuropean Free-Trade Association (EFTA), theLatin American Economic System
4MTN.TNC/21, Annex, pages 5and6,andCorr.1.
5MTN.TNC/W/135.PC/IPL/W/3
Page6
(SELA), theInternational Textiles andClothing Bureau (ITCB) andtheArab Monetary Fund would
beinvited inresponse totheirrequest orexpressed interest, asalsowould theInternational Trade Centre
(ITC).
17. TheChairman added thatinorder tomaintain abalance between regions, theUNregional
economic commissions, namely theEconomic Commissions forAfrica (ECA), forEurope (ECE),
forLatin America andtheCaribbean (ECLAC), andtheEconomic andSocial Commissions forAsia
andthePacific (ESCAP) andforWestern Asia(ESCWA), andregional development banks should
beinvited. AstheInter-American Development Bank (IDB) hadalready beeninvited, onewould also
needtoinvite theAfrican andAsian Development Banks. TheChairman 'ssuggestions wereagreed
to.
18. Onthebasis oftheabove understandings, thefollowing organizations were invited tothe
Marrakesh Ministerial meeting:
ACPSecretariat,AfricanDevelopmentBank,ALADI,ArabMonetaryFund,AsianDevelopment
Bank, CCC, EBRD, ECA, ECE, ECLAC, EFTA, ESCAP, ESCWA, FAO, IEC, ILO, IMF,
Inter-American Development Bank, ISO,ITC,ITCB, OECD, OIC,SELA, UN,UNCTAD, UNESCO,
WIPO, World Bank, World Tourism Organization.
19. Thedegree ofparticipation ofinternational organizations intheUruguay Round negotiations
varied considerably according towhich negotiating group theyparticipated in.Some organizations
made contributions intheformoftechnical briefs, e.g.,inthenegotiations onthefunctioning ofthe
GATT system, others byassociation withvarious negotiating areas, suchasinagriculture andsanitary
andphytosanitary measures (Codex Alimentarius Commission, International Office ofEpizootics and
theSecretariat oftheInternational Plant Protection Convention), customs valuation (CCC), rules of
origin (CCC), technical barriers totrade (ISOandIEC) ,TRIPS (WIPO andUNESCO), coherence
inglobal economic policymaking (IMF andIBRD), balance ofpayments (IMF), andservices (IMF,
IBRD andUNCTAD). Inmost ofthese cases theprovisions oftherelevant WTO Agreements and
arrangements reflect thissituation.
20. Asreflected inMTN.TNC/W/139, inthecontext oftheLegal Rectification process conducted
after15December 1993, consultations, inthepresence ofIMFrepresentatives, wereheldwithaview
toresolvingtheissuewhichhadarisenconcerningtherelationshipbetweenArticleXVoftheGATT1947
andtheGeneral Interpretative NotetotheAgreements inAnnex 1AoftheFinal Act.Following these
consultations, itwassuggested thatMinisters would approve aDeclaration ontheRelationship ofthe
WTO withtheIMF. ThisDeclaration waseventually incorporated intotheFinal Acttextsthatwere
approved atMarrakesh.
IV. Other arrangements inrespect ofcertain international organizations
A. General
21. TheGATT Secretariat maintains numerous informal contacts with various international
organizations ontopics ofcommon interest inorder toensure amutually positive cooperative interaction,
andtoavoid duplication ofactivities. These contacts usually taketheformofrequests byanorganization
foranother 'sexpertise initsrespective areaofresponsibility, andtakeplace onanadhocbasis. Such
informal contacts include theexchange ofinformation andresearch andworking papers, consultation
onrelevant sections ofreports orpublications, participation inseminars orconferences organized to
discuss tradepolicy issues, andsoon.Forexample, theWorld Bank, OECD andtheGATT Secretariat
eachdeveloped aresearch programme toexamine theimplications ofthetrend towards regionalPC/IPL/W/3
Page7
integration, eachfrom itsownperspective, andmade theresults available toother organizations to
avoid duplication ofactivities.
22. Intheareaoftrade statistics, theGATT Secretariat maintains aclose working relationship
withtheUNStatistical Commission, andwithanumber ofother bodies, including non-UN bodies,
active inthisfield, focusing ontheavailability, quality, consistency andimprovement ofinternational
trade data, aswellas,more recently, along withtheWorld Bank, onthedissemination thereof. In
particular, theGATT actsasconvener oftheUNStatistical Commission 'sTaskForce onInternational
Trade Statistics, andisplaying averyactive rôleinthedevelopment ofservices statistics andof
cooperative efforts tothatend.
23. Several international organizations havecontributed overseveral decades totheTrade Policy
courses organized bytheGATT Secretariat, including theIMF, World Bank, UNCTAD andtheITC.
More recently, WIPO hasalsobeeninvited tolecture tovarious groups ofGATT trainees. Officials
from various international commodity organizations havealsooccasionally provided aninput tothe
courses. While theUNDP isnolonger involved inthefinancing ofGATT courses -which itdidfor
several years -itcontinues tolenditsassistance inthefieldwithregard totheprocessing ofmaterial
arrangements forthegovernment officials selected toparticipate inthecourses. Thisassistance by
UNDP officials inthefieldhasgreatly facilitated GATT Secretariat dealings withthelocalauthorities
concerned, aswellaswiththecandidates themselves incapitals.
24. TheGATT Secretariat hasregular contact withthesecretariats ofnumerous regional or
plurilateral economic orintegration schemes. Bywayofillustration, mention might bemade ofthe
Organization forEconomic Cooperation andDevelopment, which invites theDirector-General toattend
meetings oftheCouncil andoftheTrade Committee, aplenary committee composed ofofficials
responsible fortheexecution oftheirgovernments 'tradepolicies. TheDirector-General hasregularly
attended meetings oftheCouncil atMinisterial level. TheGATT Secretariat hasalsobeenrepresented
regularly atmeetings oftheTrade Committee, where GATT andEFTA aretheonlytwoobservers
invited, aswellasatvarious other meetings onanadhocbasis. Mention might alsobemade ofother
plurilateral bodies, suchastheLatin American Economic System (SELA), withwhich contacts exist
intheformofexchanges ofinformation andparticipation intechnical assistance events organized by
thelatter, andtheACPSecretariat, withwhich ajointseminar wasorganized inBrussels withhigh-level
representation from theGATT Secretariat.
25. Thefollowing paragraphs describe more formal arrangements thatexistbetween theGATT
andtheIMF, theWorld Bank, theUnited Nations, theCustoms Cooperation Council andthe
International Organization forStandardization.
B. International Monetary Fund
26. TheFund ismentioned directly inArticles II:6(a), VII:4(a) and(c),XIV:1, 3and5(a),XV,
andinAnnex IinAdArticles VIII:1, XII:4(b), XV:4 andXVI:B oftheGeneral Agreement. Theformal
relationship with theFund derives from Article XV, "Exchange Arrangements", whose first
paragraphprovidesthat:"TheCONTRACTINGPARTIESshallseekco-operationwiththeInternational
Monetary FundtotheendthattheCONTRACTING PARTIES andtheFundmaypursue aco-ordinated
policy withregard toexchange questions within thejurisdiction oftheFundandquestions ofquantitative
restrictions andother trade measures within thejurisdiction oftheCONTRACTING PARTIES."
27. Theoperational relationship ofGATT withtheFund derives primarily from theprovisions
ofparagraph 2ofArticle XV,which states that:"Inallcases inwhich theCONTRACTING PARTIES
arecalled upontoconsider ordealwithproblems concerning monetary reserves, balances ofpayments
orforeign exchange arrangements, theyshallconsult fullywiththeInternational Monetary Fund."PC/IPL/W/3
Page8
TheCONTRACTING PARTIES arerequired toaccept theFund'sfindings onstatistical andother
factsrelating toforeign exchange, monetary reserves andbalances ofpayments; toaccept theFund's
determination astowhether acontracting party'saction inexchange matters isinaccordance withthe
Articles ofAgreement oftheFund orofaspecial exchange agreement between thatcontracting party
andtheCONTRACTING PARTIES; andtoaccept theFund'sdetermination astowhatconstitutes
aserious decline, verylowlevel, orreasonable rateofincrease inacountry 'smonetary reserves.
28. Onthebasisofparagraph3ofArticleXV,whichprovidesthat"theCONTRACTINGPARTIES
shallseekagreement withtheFund regarding procedures forconsultation under paragraph 2ofthis
Article", aclose andlong-standing institutional relationship exists between GATT andtheFund. In
1948 and1949, theCONTRACTING PARTIES andtheFund agreed, bymeans ofanexchange of
letters, onarrangements forcooperation, consultation andcoordination inthecollection ofinformation
andthemaking ofpublic announcements.6Thecurrent procedures andarrangements forconsultations
onbalance-of-payments restrictions weresetoutin1970(BISD 18S/49). Pursuant totheseprocedures,
theprogramme forthebalance-of-payments consultations foreachyearisdrawn up"inthelightof
theprogramme andprogress oftheconsultations oftheInternational Monetary Fund with the
governments concerned". AFund representative takes partinallmeetings oftheCommittee on
Balance-of-Payments Restrictions (theBOPCommittee), andinthecaseoffullconsultations witha
contracting party, delivers astatement which hasbeenapproved bytheFund'sExecutive Board. The
Fund alsosupplies confidential material fortheconsultations, particularly through "Recent Economic
Developments" papers resulting fromIMFmissions toconsulting countries. These papers arecirculated
tomembers oftheBOPCommittee.
29. In1954-55, anumber ofrecommendations concerning relations between theGATT andthe
IMFweremade bytheSub-Group onGATT/Fund Relations established bytheReview Working Party
onQuantitative Restrictions. Thelackofreciprocal consultation provisions onthepartoftheFund,
comparable tothose oftheGATT inArticle XV,wasnoted, andtheSub-Group recommended,7inter
alia,that"The CONTRACTING PARTIES should draw theattention oftheFund totheirintention
tohavetheGATT staff...discuss withtheFundstafftradematters which hadimplications forexchange
policy, andshould inform theFund thattheGATT staffshould beprepared, attherequest oftheFund,
toenterintosimilar discussions ...onthetradeeffects ofexchange matters under Fundconsideration ...
TheExecutive Secretary should berequested topursue consultations withrepresentatives oftheFund
withaview topreparing aformal agreement between theFund andtheproposed Organization [for
Trade Co-operation] forconsideration bybothparties atasuitable future date." Theproposal fora
formal agreement between thetwoorganizations was,however, setaside atthetenthSession pending
theentry intoforce oftheOTC, which never occurred.
30. In1975 and1976, theConsultative Group ofEighteen devoted attention tothefunctioning
oftheGATT provisions concerning trade measures taken forbalance-of-payments purposes. Ata
meeting inJune1976, arepresentative oftheManaging Director oftheIMFgaveanaccount ofFund
policies andactivities with regard totheuseoftrade measures bymember countries facing
balance-of-payments difficulties. TheDirector-General subsequently discussed withtheManaging
Director, attheGroup 'srequest, specific waysinwhich co-ordination andtheexchange ofinformation
between thetwoorganizations might bereinforced.
31. Asnoted inAnnex IIIA-E, theFund isrepresented asanobserver atmeetings ofalmost all
mainGATT bodies, including Sessions oftheCONTRACTING PARTIES andmeetings oftheCouncil
andofitssubsidiary bodies, excepting those oftheBudget Committee. Foritspart,GATT wasfor
6Reproduced inAnnex I,A-D.
7Afuller description oftherecommendations iscontained inAnnex IE.PC/IPL/W/3
Page9
many years regularly invited toobserve theAnnual Meetings oftheBoard ofGovernors oftheFund.
More recently, noinstitutional observers havebeeninvited tothese meetings. TheDirector-General
ofGATT isinvited toattend asanobserver themeetings bothoftheInterim Committee ofthe
International Monetary Fund andtheDevelopment Committee -theJoint Ministerial Committee of
theBoards ofGovernors oftheBank andFund ontheTransfer ofRealResources toDeveloping
Countries. InthecaseoftheDevelopment Committee, theDirector-General hasinrecent years been
regularly asked toinform members ofdevelopments inGATT and,untilitsconclusion, intheUruguay
Round.
32. Acontinuous working relationship ismaintained between theexecutive heads andstaffofthe
GATT Secretariat andIMF. Most documents ofGATT areavailable totheFund staff. Foritspart,
theGATT Secretariat receives many unpublished reports andother documents oftheFund. Links
alsoexistthrough theAdministrative Committee onCo-ordination (ACC) (seebelow under theUnited
Nations) which brings together theheads ofagencies oftheUnited Nations system, andthrough the
various ACC sub-bodies. Anexample ofco-operation between thetwoorganizations isthestudy on
theeffects offluctuations inexchange ratesoninternational trade. Thisstudy wasprepared bythe
Fund fortheGATT Council, inresponse toarequest, transmitted totheIMF'sManaging Director
bytheDirector-General, from the1982 Ministerial Session oftheCONTRACTING PARTIES.
C. World Bank
33. Thebasis forco-operation withtheWorld Bank exists notonlythrough thekindofinformal
relations maintained withmany organizations, andespecially those oftheUnited Nations system, but
alsothrough PartIVoftheGeneral Agreement. Paragraphs 6and7ofArticle XXXVI statetheneed
forcollaboration between theCONTRACTING PARTIES and,respectively, "theinternational lending
agencies" and"theorgans andagencies oftheUnited Nations system". Paragraphs 2(b)and(c)of
Article XXXVIII ("Joint Action") provide thattheCONTRACTING PARTIES shall"seek appropriate
collaboration inmatters oftrade anddevelopment policy withtheUnited Nations anditsorgans and
agencies" andwithaviewtopromoting export potential andaccess tomarkets fordeveloping countries
shall"seek appropriate collaboration withgovernments andinternational organizations, andinparticular
withorganizations having competence inrelation tofinancial assistance foreconomic development".
34. Asindicated inAnnex IIIA-E, theWorld Bank isrepresented asanobserver atanumber of
GATT bodies, including Sessions oftheCONTRACTING PARTIES andmeetings oftheCouncil and
ofitssubsidiary bodies, excepting those oftheBudget Committee. Thesituation asregards GATT
representation attheAnnual Meetings oftheBoard ofGovernors oftheBank isthesame asexists
fortheBoard ofGovernors oftheFund (seeparagraph 31above). Asnoted inparagraph 31,the
Director-General ofGATT isregularly invited toattend themeetings oftheBank-Fund Development
Committee,andtokeepitsmembersinformedofdevelopmentsinGATTand,previously,intheUruguay
Round.
35. Therelationships between theexecutive heads andstaffoftheBank andGATT Secretariat
aresimilar tothose described inparagraph 32inrespect oftheIMF. There aredirect working relations
between thetwoorganizations andalsonumerous links through theACC machinery, including
well-established arrangements forexchange ofofficial documents, cooperation inthejointdevelopment
ofsoftware andother efforts intheinformatics area,theexchange ofdataandother factual information
inthepreparation ofreviews under theTrade Policy Review Mechanism and,morerecently, aninstance
ofsubstantive cooperation intheconduct ofatechnical assistance programme foradeveloping African
country.PC/IPL/W/3
Page10
D. TheUnited Nations
36. TheexistingrelationshipbetweentheCONTRACTINGPARTIESandtheUnitedNations(UN),
under which GATT istreated asaspecialized agency onadefacto basis, isdefined inanexchange
ofletters8between theUNSecretary-General andtheExecutive Secretary (now Director-General) of
theGATT in1952, confirming thattheexisting closedefactoworking arrangements between theICITO
Secretariat andtheUNmade itunnecessary tohaveaspecial orformal arrangement relating tothe
General Agreement.
37. TheGATT hasnotconcluded aspecialized agency agreement withtheUN,norhasitbeen
brought intoanyother formal arrangement withthatorganization. Thedefacto treatment ofGATT
asaspecialized agency involves participation inthecommon system (calling forthedevelopment of
asingle unified international civilservice through theapplication ofcommon personnel standards,
methods andarrangements), membership ofitsexecutive headintheAdministrative Committee on
Coordination (ACC), andentitlement toalltherights accorded toagencies under therelationship
agreements, namely exchange ofinformation anddocuments, reciprocal representation atmeetings
andcoordination activities, aswellasparticipation ininter-agency bodies.9
38. In1967,inanefforttoavoidduplicationofefforts,theExecutiveHeadsofGATTandUNCTAD
decided torecommend totheirlegislative organs thattheInternational Trade Centre (ITC) beestablished
asajointsubsidiary bodyoftheGATT andtheUN,thelatter acting through UNCTAD. Asaresult,
effective from 1January 1968, theITChasbeenoperated jointly bythetwoorganizations "ona
continuing basis andinequal partnership". In1973, theITCwasrecognized as"thefocal point for
technical assistance andcooperation activities intheexport promotion fieldwithin theUNsystem"
bytheUNEconomic andSocial Council. InJanuary 1984, theITCbecame anexecuting agency of
theUNDP. Pursuant toarrangements agreed tobetween thetwoorganizations, theGATT Council
andtheUNCTAD Trade andDevelopment Board determine thebroad policy guidelines ofITC
programmes, andbothGATT andUNCTAD contribute equally totheITC'sregular budget.
39. Inaddition totheformal arrangements between theGATT andUNCTAD through theirjoint
sponsorshipoftheITC,theGATThasaregularandbroadrelationshipwithUNCTADincludingthrough
itsobserver status inUNCTAD meetings, diverse forms ofadhoccooperative efforts ontechnical
assistanceandexchangesofinformation.TheGATTSecretariatisinvitedtomeetingsoftheUNCTAD's
Trade andDevelopment Board anditssubsidiary bodies, including itsthreeStanding Committees and
AdHocWorking Groups, andhasclosely followed theworkofUNCTAD insuchareasasinternational
commodity agreements, tariffpreferences, restrictive business practices, economic cooperation among
developing countries, environment, andtrade facilitation. Foritspart,theUNCTAD, asindicated
inAnnex IIIA-E, isinvited asanobserver tomeetings ofallthemain GATT bodies.
40. TheGATT Secretariat alsohasworking relationships atthestafflevelwithother UNbodies,
notably theUNEP andWIPO, andhasdeveloped close high-level contacts, including frequent
participation invarious events withtheUNEconomic Commission forAfrica, andhassimilar long-
standing relations withtheother UNregional economic commissions.
41. TheGATT Director-General isamember oftheAdministrative Committee onCoordination
(ACC) composed ofelected executive heads ofthespecialized agencies andchaired bytheUN
8SeeAnnex II.
9Thespecial defacto treatment ofGATT asaspecialized agency wasputintoquestion bytheECOSOC during itsannual
session in1974 under anitemon"Restructuring oftheeconomic andsocial sectors oftheUnited Nations system", butwas
reconfirmed in1976.PC/IPL/W/3
Page11
Secretary-General, inwhich UNprogrammes alsoparticipate. TheACC reviews issues ofcommon
interest andensures thecoordination oftheprogrammes entrusted toagencies andapproved bytheir
Governing Bodies. TheGATT Secretariat alsoparticipates inthesubsidiary bodies oftheACC such
astheACC Sub-Committee onStatistical Activities, theConsultative Committee onAdministrative
Questions (CCAQ), theConsultative Committee onProgramme andOperational Questions, andthe
Organizational Committee, which meets ahead oftheregular meetings oftheACC, prepares itsagenda
andwork programme, oversees thework ofitssubsidiary bodies, andisempowered toapprove certain
actions onbehalf oftheACC.
42. TheGATT Secretariat isrepresented occasionally atsessions oftheGeneral Assembly, in
particular asregards theSecond Committee (Economic andFinancial), aswellasatsessions ofthe
ECOSOC. ECOSOC 'sthree-day high-level (Ministerial) segment, including aone-day policy dialogue
with executive heads ofmultilateral financial andtrade institutions, isattended either bythe
Director-General orbyoneofhisdeputies.
43. TheGATT Secretariat isalsoinvited toattend meetings, andparticipates inthework ofthe
Commission onSustainable Development (CSD) andtheInter-Agency Committee onSustainable
Development (thelatter reporting totheACC), theIntergovernmental Committee foraFramework
Convention onClimate Change, theInter-Agency Meeting onLanguage Arrangements, Documentation
andPublications,theInformationSystemsCoordinationCommittee,theInternationalComputingCentre
(ICC), theInternational CivilService Commission (ICSC), theUNJointStaffPension FundandBoard,
andtheUNStatistical Commission (seeparagraph 22above). TheGATT Secretariat isanadhoc
member oftheInternational Civil Service Commission, asubsidiary organ oftheGeneral Assembly
responsible foroverseeing thecommon system ofsalaries andallowances. TheSecretariat also
participates onacost-sharing basis intheInternational Computing Centre inGeneva, together with
twentyotherorganizations;aGATTSecretariatofficialcurrentlychairstheICCManagementCommittee.
TheSecretariatmaintainsclosecooperationinthefieldoflanguageservices,terminology,documentation
andpublications withtheUNanditsspecialized agencies.
E. Customs Cooperation Council (CCC)
44. Theformal linkbetween theGATT andtheCCC derives from Article 18oftheAgreement
onImplementation ofArticle VII(Customs Valuation Code), which establishes aTechnical Committee
under theauspices oftheCCC tocarry outresponsibilities described inAnnex IIoftheCode. Also,
pursuant toArticle 20:4oftheCode, ondispute settlement, theTechnical Committee isrequired to
examine matters requiring technical consideration, uponrequest bytheCustoms Valuation Committee,
andtoreport totheCommittee inaccordance withtheprocedures setoutinthatparagraph. TheCode
setsoutthebroadguidelinesforcooperationandconsultationbetweentheCustomsValuationCommittee
andtheTechnical Committee. TheChairman oftheTechnical Committee orhisdesignate, normally
arepresentative oftheCCC, isrequired toreport onthework oftheTechnical Committee ateach
meeting oftheCustoms Valuation Committee. Tofacilitate thisprocess, theCCC hasbeengranted
permanent observer status intheCommittee. TheCode alsoprovides thattheGATT Secretariat may
attend meetings oftheTechnical Committee asanobserver, atwhich itwillreport onthework
undertaken atmeetings oftheCustoms Valuation Committee. Arepresentative from theGATT
Secretariat alsoattends theannual meetings oftheCCC Council asanobserver.
45. Arrangements forcooperation between theCCC andGATT alsoexistintheareaoftariffs.
Thework undertaken bytheHarmonized System Committee, established under theauspices ofthe
CCC, hasadirect bearing onthework oftheCommittee onTariff Concessions inGATT, essentially
because theadoption oftheHSnomenclature anditschanges affect directly contracting parties 'GATT
schedules. Thefunctions oftheHarmonized System Committee include thepreparation ofconcordance
tables forthetransposition ofGATT schedules, thepreparation ofexplanatory notes, classificationPC/IPL/W/3
Page12
opinions, andrecommendations which helptoachieve uniformity intheinterpretation andapplication
oftheHarmonized System. Italsofurnishes other information orguidance onitsowninitiative or
onrequest, forexample from theCommittee onTariff Concessions, concerning theclassification of
goods intheHarmonized System. TheCCC Secretariat attends meetings oftheCommittee onTariff
Concessions inthecapacity ofanobserver, while theGATT Secretariat isinvited toattend meetings
oftheHarmonized System Committee inasimilar capacity.
46. Thenature ofthearrangements hasevolved overtheyears withthetypeofquestions considered.
Forexample, during theTokyo Round negotiations, theGroup onNon-Tariff Measures mandated the
GATT Secretariat toprepare background notes, incooperation withtheCCC, onanumber ofissues,
suchascustoms procedures, documentation andformalities, andconsular formalities. Prior tothe
conclusion oftheTokyo Round, theGATT andtheCCC Secretariats worked closely together onissues
related tothedefinition ofvalue forcustoms purposes (Brussels Definition ofValue).
F. International Organization forStandardization (ISO)
47. Thebasisforcooperation between theGATT andtheISOderives fromtherecognition through
theadoption oftheAgreement onTechnical Barriers toTrade (TBT Agreement) intheTokyo Round,
oftheimportant contribution thatinternational standards andcertification systems canmake tofurthering
theobjectives oftheGATT byimproving theefficiency ofproduction andfacilitating theconduct of
internationaltrade,andthereforeoftheneedtoencouragethedevelopmentofsuchinternationalstandards
andcertification systems. TheGATT Committee onTechnical Barriers toTrade hasalways placed
great importance ontheneedtomaintain acontinuous dialogue between theGATT andtheISOon
avariety ofissues inorder tocontribute totheachievement oftheobjectives oftheTBTAgreement.
TheISOhasbeengranted observer status intheCommittee, andhascontributed actively toitswork.
TheISOandtheCommitteehavecooperatedcloselyinthedevelopmentofmutuallyconsistentdefinitions
foruseintheTBT Agreement, aswellasintheconsensus-building process foranISO/IEC (the
International Electrotechnical Commission) Code ofGood Practice forStandardization. TheGATT
Secretariat andISOhaveregularly participated injointseminars andconferences toprovide technical
assistance ontheoperation oftheTBTAgreement.PC/IPL/W/3
Page13
Annex I
Arrangements forCo-operation, Consultations andCo-ordination between
theGeneral Agreement onTariffs andTrade andthe
International Monetary Fund
Pursuant totheprovisions ofArticle XVoftheGeneral Agreement, theCONTRACTING
PARTIES made thefollowing arrangements withtheInternational Monetary Fund forco-operation,
consultation andco-ordination inthecollection ofinformation andmaking ofpublic announcements.
These arrangements were made bymeans ofexchanges ofletters between theChairman ofthe
CONTRACTING PARTIES andtheManaging Director oftheInternational Monetary Fund.
A. General Arrangement forCo-ordination andConsultation1
InviewofthefactthattheGeneral Agreement isunder onlyprovisional rather thandefinitive
application ithasbeenagreed thatanelaborate agreement toimplement Article XV:3 isnotnecessary
andthatthefollowing informal arrangement ofanadministrative character constitutes asatisfactory
basis forconsultation andco-operation between theFund andtheContracting Parties:
(i) TheFundagreestoco-operatewiththeContractingPartiesincarryingouttheprovisions
oftheGeneral Agreement inaccordance withtheterms thereof and,inparticular, to
consult, attherequest oftheContracting Parties, onmatters ascontemplated bythe
General Agreement.
(ii) Ifsuchcases arise, theChairman oftheContracting Parties willnotify theManaging
Director oftheFund ofeachparticular instance inwhich theContracting Parties desire
consultation andwillfurnish theFund withallinformation available which mayassist
theFund inconsidering thequestion. Since various provisions oftheGeneral
Agreement callforconsultation between theContracting Parties andtheFund, itmight
benecessary inparticular cases toawait ameeting oftheContracting Parties before
formal consultation could beundertaken. However, theContracting Parties have
authorized theirChairman toinitiate requests, either atthedirection oftheContracting
Parties orontheChairman 'sowninitiative iftheContracting Parties arenotinsession,
fortheFund toconsult withtheContracting Parties arenotinsession, fortheFund
toconsult withtheContracting Parties inaccordance withtheprovisions oftheGeneral
Agreement. (This arrangement should make itpossible fortheFund toundertake with
aminimum ofdelay suchstudies asmaybenecessary andshould afford theFund
opportunity tobecome familiar with thesubject-matter involved inadvance of
consultations withtheContracting Parties inparticular cases.)
(iii) TheFund mayfrom timetotimewishtorequest consultations withtheContracting
Parties onmatters ofcommon interest, and,insuchcases, theContracting Parties will
beprepared toconsult upon suchrequests.
(iv) Anyrequest forconsultation byeither theFund ortheContracting Parties shallbe
accompanied byavailable information which would contribute totheeffectiveness of
theconsultation. Insuchcases, dueregard shallbepaidtotheneedtosafeguard
1Proposed bytheChairman oftheCONTRACTING PARTIES byletter dated 9September 1948, andagreed tobythe
Fund byletter dated 28September 1948.PC/IPL/W/3
Page14
confidential information andtoanyspecial obligations oftheFund andtheContracting
Parties inthisrespect.
(v) Theparticular procedures inimplementation ofthese arrangements canbeworked out
casebycaseuntilsufficient experience hasbeenacquired onthebasis ofwhich more
formal procedures canbedeveloped ifnecessary.
B. Rules ofProcedure forDirect Consultation between aContracting Party andtheFund2
(i) Thefollowing rulesofprocedure pertain todirect consultation between theFund and
anindividual contracting party which isnotamember oftheFund.
(ii) Upon theapplication ofacontracting partywhich isnotamember oftheFundtoconsult
withtheFund theChairman oftheContracting Parties shallcommunicate suchrequest
totheFund. TheFundwillthereupon enterintodirect consultation withthecontracting
party concerned. Noinformation shall bereleased bytheChairman totheother
contracting parties ontheinitiation ofdirect consultation.
(iii) Thesubject-matter ofthedirect consultation islimited toproblems relative tomonetary
reserves, balances ofpayments andforeign exchange arrangements. Theconsultation
mayconcern theactual position ofacontracting party orproblems which mayarise
under specified future conditions.
(iv) Direct consultation willtakeplace asaruleattheprincipal office oftheFund.
However, inexceptional circumstances itmaybeconducted atanother place agreed
upon between thecontracting party andtheFund. Thetimeofconsultation shallbe
agreed upon directly between thecontracting party andtheFund.
(v) Therepresentatives ofthecontracting party shall present totheFund customary
credentials.
(vi) Thecontracting party shallsupply theFund withsuchinformation asisnecessary for
theconsideration oftheproblems involved. Thecontracting partymaydesignate certain
material confidential andrequest theFund nottodivulge itwithout theconsent ofthe
contracting party.
(vii) TheFund willprepare briefminutes onthedirect consultation withtheco-operation
ofthecontracting party.
(viii) TheContractingParties'functionpursuanttotheGeneralAgreementremainsunaffected
bythedirect consultation ofacontracting party withtheFund. Nordoesthedirect
consultation affect theconsultative procedure between theContracting Parties andthe
Fundpursuant totheGeneral Agreement. However, uponapplication ofthecontracting
party which requested thedirect consultation, theminutes andtheother material used
inthedirect consultation maybereleased bytheFund totheContracting Parties in
order tobeusedinthecourse oftheconsultation between thecontracting party and
theContracting Parties.
2Proposed bytheFund byletter dated 27February 1950 andagreed tobytheCONTRACTING PARTIES byletter dated
22May 1950.PC/IPL/W/3
Page15
(ix) TheFundwillinform theChairman oftheContracting Parties regarding thetermination
ofthedirect consultation.
C. Co-ordination ofPublic Announcements relating toConsultations3
(i) Having regard totheprovisions ofparagraph XII:4( e)oftheGeneral Agreement, public
announcements relating toconsultations under thatarticle should beavoided whilst
suchconsultations areinprogress.
(ii) Prior toanypublic announcement attheconclusion ofanysuchconsultation, the
Contracting Parties andtheInternational Monetary Fund should consult eachother.
Whilstsuchconsultationshouldbesuchastoaffordeitherpartyareasonableopportunity
tomakeknownitsviewsonanyproposedannouncement,itshouldnotbesuchasunduly
todelay anyannouncement which theContracting Parties ortheFundconsider requires
tobemade onaparticular date.
(iii) Suchconsultation shallrelate toallpublic announcements, butitshould beagreed that
those ofaroutine character might becleared byagreement between theContracting
Parties andtherepresentatives oftheFund actually engaged intheconsultation.
D. Collection ofInformation Required byArticle XV:84
Pursuant toadecision oftheContracting Parties attheFourth Session, theChairman hasmade
thefollowing arrangements ofanadministrative nature withtheFund aiming atavoiding duplication
inthecollection ofstatistics andensuring theeffective application ofArticle XV:8 oftheGeneral
Agreement:
(i) Those contracting parties notmembers oftheFund which arealready supplying the
Fund withinformation comparable inscope tothatrequired bytheprovisions of
ArticleXV:8oftheGeneralAgreementshouldcontinuethepresentpracticeofsupplying
theFund withsuchinformation. Solongasthisiscontinued noseparate submission
needbemade totheContracting Parties. TheFund will,onrequest, transmit tothe
Contracting Parties anysuchinformation thusreceived.
(ii) Asregards those contracting parties notmembers oftheFund which donotcurrently
supply theFund withsuchinformation andincases inwhich theinformation supplied
isconsidered tobeinsufficient, theFund willindicate totheContracting Parties the
nature andscope ofinformation which should befurnished bysuchcontracting parties
under Article XV:8 oftheGeneral Agreement. TheContracting Parties will,onthe
basisoftheFund'scommunication, advise thecontracting parties concerned astothe
information tobesupplied. Thecontracting parties concerned should furnish such
informationtotheContractingPartieswiththeleastpossibledelaythroughthesecretariat
atGeneva. Acopy, orcopies, ofsuchinformation will,upon theirreceipt bythe
Contracting Parties, beforwarded totheFund.
3Proposed bytheCONTRACTING PARTIES byletter dated 2June1949 andagreed tobytheFund byletter dated
19August 1949.
4Proposed bytheCONTRACTING PARTIES byletter dated 9February 1951 andagreed tobytheFund byletter dated
26March 1951.PC/IPL/W/3
Page16
E. Arrangements recommended attheNinth (Review) Session oftheCONTRACTING PARTIES
in1954-1955
In1954-55, theReview Working Party onQuantitative Restrictions setupaSpecial Sub-Group
onGATT/Fund Relations. TheReport ofthisSub-Group noted that:"theCONTRACTING PARTIES
hadconsulted withtheFund onallmatters where consultation wasrequired under Article XVofthe
General Agreement. Itnoted thattheArticles oftheAgreement oftheFunddonotcontain acomparable
requirement forconsultation, andalsothatFund consultation withtheCONTRACTING PARTIES
onsomeexchange matters which might haveimportant tradeeffects wasoftennotappropriate orfeasible
forreasons ofurgency orsecrecy ...Thegroup feltthatinmostcases itwould besufficient thatco-
ordination would takeplace between theCONTRACTING PARTIES andtheFund onastaff-to-staff
basis. Thiswould helpnotonlytoensure that,inappropriate cases, theFund staff, inpreparing its
reports totheExecutive Directors, would takefullaccount ofanyinformation brought totheirattention
bytheGATT staffregarding thetrade aspects ofexchange measures butalsotoensure thatmatters
ofconcern totheCONTRACTING PARTIES werebrought totheattention oftheExecutive Directors
before theytooktheirdecisions."5
TheSub-Group recommended that:
"(a) TheCONTRACTINGPARTIESshoulddrawtheattentionoftheFundtotheirintention
tohavetheGATT staff, inappropriate cases andwhere practicable, discuss withthe
Fundstafftradematters which hadimplications forexchange policy, andshould inform
theFund thattheGATT staffwould beprepared, attherequest oftheFund, toenter
intosimilar discussions, where practicable, onthetrade effects ofexchange matters
under Fund consideration.
"(b) Pursuant tothisintention, theExecutive Secretary should beauthorized towork out
withtheFund procedures forensuring themaximum practicable degree ofcooperation
between thetwostaffs onmatters ofmutual concern totheCONTRACTING PARTIES
andtheFund.
"(c) TheIntersessional Committee should beauthorized toconduct suchconsultations with
theFund asmight seem appropriate infurtherance oftheobjectives ofparagraph 1
ofArticle XV.
"(d) TheCONTRACTINGPARTIESshoulddrawtheattentionoftheInternationalMonetary
Fund tothenewarrangements withrespect totheIntersessional Committee, should
explain thatthiswould make consultation between theCONTRACTING PARTIES
andtheFund easier andmore expeditious thanhitherto, andshould express thehope
thatthisshould improve progressively theefficiency ofconsultation bothwaysbetween
them.
"(e) TheExecutiveSecretaryshouldberequestedtopursueconsultationswithrepresentatives
oftheFund withaviewtopreparing aformal agreement between theFund andthe
proposed Organization [forTrade Cooperation] forconsideration bybothparties at
asuitable future date".6
5BISD 3S/170, 199.
6AttheReview Session, agreement wasreached oninstitutional arrangements including anAgreement Establishing the
Organization forTrade Cooperation, butthisagreement never entered intoforce.PC/IPL/W/3
Page17
These recommendations weredrawn totheattention oftheFund bytheExecutive Secretary
inApril 1955. AttheTenth Session inNovember 1955, itwasagreed thatrecommendation (e)would
besetaside pending theentry intoforce oftheAgreement Establishing theOrganization forTrade
Cooperation.7However, informal discussions between GATT andFundstaffdidresult inarrangements
forthetransmission totheSecretariat ofIMFdocumentation, especially inconnection withbalance-of-
payments consultations, which were noted andapproved attheEleventh Session inOctober 1956.8
7SR.10/8.
8SR.11/3.PC/IPL/W/3
Page18
Annex II
Relationship between theGeneral Agreement onTariffs andTrade andtheUnited Nations
1. Article 86:1oftheCharter fortheInternational Trade Organization (ITO) would haverequired
thattheITObebrought intorelationship withtheUnited Nations (UN) through aspecialized agency
agreement withtheEconomic andSocial Council under Article 63oftheUNCharter. AttheirFifth
andSixth Sessions in1950and1951, when ithadbecome apparent thatratification oftheITOCharter
wouldbepostponedindefinitely,theCONTRACTINGPARTIESdiscussedarrangementsforcontinuing
administration oftheGeneral Agreement. In1952, theCONTRACTING PARTIES instructed the
Executive Secretary (now theDirector-General) toconsult withtheUNSecretary-General concerning
relations between theCONTRACTING PARTIES andtheUN.1These consultations resulted inthe
following exchange ofletters inAugust 1952 confirming thattheexisting close defacto working
arrangementsbetweentheSecretariatoftheInterimCommissionfortheInternationalTradeOrganization
(ICITO) andtheUNmade itunnecessary tohaveaspecial orformal arrangement relating totheGeneral
Agreement. Thisexchange defines theexisting relationship between theCONTRACTING PARTIES
andtheUN,under which theGATT istreated asaspecialized agency onadefacto basis.
2. Letter dated 11August 1952fromtheExecutive Secretary oftheGeneral Agreement onTariffs
andTrade addressed totheUNSecretary-General
"Ihavethehonour torefertotheconversations Ihavehadwithyourrepresentative pursuant
toarecommendation oftheContracting Parties attheirsixthsession (GATT/CP.6/41) thatIconsult
withyouastowhether aclearly defined arrangement weredesirable between theContracting Parties
andtheEconomic andSocial Council tofacilitate communications between thetwobodies andtoavoid
unnecessary duplication ofwork.
Theconclusion atwhich wehavearrived asaresult ofthese discussions isthatitwould not
appear necessary atthepresent timetoproceed toconsider suchformal arrangements, butthatitwould
bedesirable togiveyouformal advice oftherelationship thathasbeeninexistence since 1948between
theContracting Parties totheGeneral Agreement onTariffs andTrade andtheInterim Commission
fortheInternational Trade Organization whereby theExecutive Secretary ofthelatter isalsoExecutive
Secretary totheContracting Parties.
Rule15oftherulesofprocedure forsessions oftheContracting Parties states that"theusual
duties ofasecretariat shall, byagreement withtheInterim Commission fortheInternational Trade
Organization, beperformed bytheExecutive Secretary oftheInterim Commission onareimbursable
basis". Thisrulederives fromanarrangement made atthesecond session oftheContracting Parties
thattheywould employ theservices ofthesecretariat oftheInterim Commission onareimbursable
basis. Thisarrangement wasagreed tobytheInterim Commission atthesecond session ofitsExecutive
Committee. Since 1January 1951 theContracting Parties have, under thisarrangement, borne the
entire costoftheInterim Commission secretariat.
Itisthefeeling ofyourrepresentative andmyself thattheexistence ofthisarrangement, coupled
withtheclose defactoworking arrangements which existbetween theUnited Nations Secretariat and
thesecretariat oftheInterim Commission, renders itunnecessary tomake separate orformal agreements
relating tothework oftheGeneral Agreement.
1GATT/CP.6/41(mandate forconsultations); G/16 (Report bytheExecutive Secretary ontheconsultations).PC/IPL/W/3
Page19
Ishallbegrateful ifyouwilltakenoteofthesecretariat arrangements between theInterim
Commission andtheContracting Parties asdescribed inthisletter.
(Signed )E.WYNDHAM WHITE
Executive Secretary"
3. Letter dated 25August 1952 addressed totheExecutive Secretary oftheGeneral Agreement
onTariffs andTrade addressed from theUNSecretary-General
"Ihavethehonour toacknowledge thereceipt ofyourletter of11August referring tothe
conversations youhavehadwithmyrepresentatives pursuant toarecommendation oftheContracting
Parties attheirsixthsession thatyouconsult withmeastowhether aclearly defined arrangement were
desirable between theContracting Parties andtheEconomic andSocial Council tofacilitate
communications between thetwobodies andtoavoid unnecessary duplication ofwork. Theconclusion
wehavearrived atasaresult ofthese discussions isthatitwould notappear necessary atthepresent
timetoconsider suchformal arrangements, butthatitwould bedesirable togivemeformal advice
oftherelationship thathasbeeninexistence since 1948between theContracting Parties totheGeneral
Agreement onTariffs andTrade andtheInterim Commission fortheInternational Trade Organization
whereby theExecutive Secretary ofthelatter isalsoExecutive Secretary totheContracting Parties.
Inotethatrule15oftherulesofprocedure forsessions oftheContracting Parties states that
"theusualdutiesofthesecretariatshall,byagreementwiththeInterimCommissionfor[the]International
Trade Organization, beperformed bytheExecutive Secretary oftheInterim Commission ona
reimbursable basis"; andthatthisrulederives from anarrangement made atthesecond session of
theContracting Parties thattheywould employ theservices ofthesecretariat oftheInterim Commission
onareimbursable basis. Inotethatthisarrangement wasagreed tobytheInterim Commission at
thesecond session ofitsExecutive Committee andthatsince 1January 1951 theContracting Parties
have, under thisarrangement, borne theentire costoftheInterim Commission secretariat.
Iunderstand itisourcommon opinion thattheexistence ofthisarrangement, coupled with
theclose defacto working arrangements which existbetween theUnited Nations Secretariat andthe
secretariat oftheInterim Commission renders itunnecessary tomake separate orformal agreements
relating tothework oftheGeneral Agreement.
Atthesame time, Itakenoteofthesecretariat arrangements between theInterim Commission
andtheContracting Parties asdescribed inyourletter.
(Signed )Trygve LIE
Secretary-General"
4. Theissueofrelations withtheUNwasconsidered again during thedrafting oftheAgreement
ontheOrganization forTrade Cooperation attheNinth Session oftheCONTRACTING PARTIES
in1954-1955. Onthequestion ofspecialized agency status, theExecutive Secretary ofGATT had
stated that"the[General] Agreement isatreaty embodying specific rights andobligations ontheparties
toitinthefieldofcommercial policy. Inthisrespect itdiffers fromthose specialized agencies which
operate under Charters providing forgeneral cooperation andcoordination invarious fields butwithout
creating treaty rights andobligations suchasthose provided forinGATT. Ifitcould beargued that
theeffect ofspecialized agency status would inanywaysubject thedecisions oftheCONTRACTING
PARTIES toappeal, oreventotheinfluence ofanexternal body, thenitwould benecessary tocarefullyPC/IPL/W/3
Page20
consider entering intosuchstatus".2TheGroup thatconsidered thismatter "felt, indeed, thatthe
CONTRACTING PARTIES might wishtoadopt asomewhat more cautious attitude tothesuggestion
thattheOrganization aimataspecialized agency relationship".3Accordingly, theAgreement onthe
OTC permitted, butdidnotrequire, conclusion ofaspecialized agency agreement withtheUN. As
theAgreement never entered intoforce, nofurther action wastaken inthisregard. Asaresult,
arrangements ofapractical nature havedeveloped overtheyears withtheUNcovering exchange of
information anddocuments, reciprocal representation andcoordination.
2W.9/65 (Statement bytheExecutive Secretary regarding specialized agency status).
3W.9/100.PC/IPL/W/3
Page21
Annex III
A. Observers atsessions oftheCONTRACTING PARTIES
United Nations (UN)
UNbodies andspecialized agencies:
Economic Commission forAfrica (ECA)
Economic Commission forEurope (ECE)
Economic Commission forLatin America andthe
Caribbean (ECLAC)
Economic andSocial Commission forAsiaandthe
Pacific (ESCAP)
Economic andSocial Commission forWestern Asia
(ESCWA)
Food andAgriculture Organization (FAO)
International Labour Office (ILO)
United Nations Conference onTrade and
Development (UNCTAD)
United Nations Educational, Scientific andCultural
Organization (UNESCO)
UnitedNationsIndustrialDevelopmentOrganization
(UNIDO)
World Intellectual Property Organization (WIPO)
International Monetary Fund (IMF)
World BankOther organizations:
African,CaribbeanandPacificGroupofStates(ACP
Group)
Andean Group Secretariat
Arab Monetary Fund
Caribbean Community Secretariat (CARICOM)
Central African Customs andEconomic Union
(UDEAC)
Commonwealth Secretariat
Cooperation Council fortheArab States oftheGulf
(GCC)
Council ofEurope
Customs Cooperation Council (CCC)
European Free Trade Association (EFTA)
Inter-American Development Bank (IDB)
Latin American Integration Association (ALADI)
Latin American Economic System (SELA)
League ofArab States
Organization forEconomic Cooperation and
Development (OECD)
Organization ofAmerican States (OAS)
Organization oftheIslamic Conference
Secretariat oftheGeneral Treaty onCentral
American Economic Integration (SIECA)
West African Economic Community (CEAO)
B. Observers intheCouncil ofRepresentatives anditssubsidiary bodies1
United Nations (UN)
UNbodies andspecialized agencies:
Economic Commission forAfrica (ECA)
Economic Commission forEurope (ECE)
Economic Commission forLatin America andthe
Caribbean (ECLAC)
Economic andSocial Commission forAsia and
thePacific (ESCAP)
Food andAgriculture Organization (FAO)
United Nations Conference onTrade and
Development (UNCTAD)
World Intellectual Property Organization (WIPO)
International Monetary Fund (IMF)
World BankOther organizations:
African, Caribbean andPacific Group ofStates
(ACP Group)
Andean Group Secretariat
Arab Monetary Fund
Caribbean Community Secretariat (CARICOM)
Cooperation Council fortheArab States ofthe
Gulf (GCC)
European Free Trade Association (EFTA)
Inter-American Development Bank (IDB)
Latin American Integration Association (ALADI)
Latin American Economic System (SELA)
Organization forEconomic Cooperation and
Development (OECD)
Organization ofAmerican States (OAS)
Secretariat oftheGeneral Treaty onCentral
American Economic Integration (SIECA)
1Inaddition, theUNEP isinvited toattend meetings oftheGroup onEnvironmental Measures andInternational Trade,
andtheCCC tomeetings oftheCommittee onTariff Concessions (seeparagraph 8).PC/IPL/W/3
Page22
C. Observers intheCommittee onTrade andDevelopment
United Nations (UN)
UNbodies andspecialized agencies:
Economic Commission forAfrica (ECA)
Economic Commission forEurope (ECE)
Economic Commission forLatin America andthe
Caribbean (ECLAC)
Economic andSocial Commission forAsia andthe
Pacific (ESCAP)
Food andAgriculture Organization (FAO)
United Nations Conference onTrade and
Development (UNCTAD)
World Food Council (WFC)
International Monetary Fund (IMF)
World BankOther organizations:
Andean Group Secretariat
Caribbean Community Secretariat (CARICOM)
Central African Customs andEconomic Union
(UDEAC)
Commonwealth Secretariat
Cooperation Council fortheArab States ofthe
Gulf (GCC)
European Free Trade Association (EFTA)
Inter-American Development Bank (IDB)
International Wheat Council (IWC)
Latin American Integration Association (ALADI)
Latin American Economic System (SELA)
Organization ofAmerican States (OAS)
Organization forEconomic Cooperation and
Development (OECD)
Secretariat oftheGeneral Treaty onCentral
American Economic Integration (SIECA)
D. Observers intheTokyo Round Code Committees andCouncils2
ADP SCM LIC AIR TBT VAL GPR Meat Dairy
International Monetary Fund (IMF) X X X X X X X
United Nations Conference onTrade
andDevelopment (UNCTAD)X X X X X X X X X
Food andAgriculture Organization
(FAO)X X
Economic Commission forEurope
(ECE)X X
Organization forEconomic
Cooperation andDevelopment
(OECD)X X
Customs Cooperation Council (CCC) X
International Organization for
Standardization (ISO)X
International Electrotechnical
Commission (IEC)X
International Office ofEpizootics
(IOE)X
Codex Alimentarius Commission X
2Respectively, theCommittee onAnti-Dumping Practices (ADP); Subsidies andCountervailing Measures (SCM);
Import Licensing (LIC); Trade inCivil Aircraft (AIR); Technical Barriers toTrade (TBT); Customs Valuation (VAL);
Government Procurement (GPR); andtheInternational Meat andDairy Councils .PC/IPL/W/3
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E. Observers intheTextiles Committee
United Nations (UN)
UNbodies andspecialized agencies:
International Labour Office (ILO)
United Nations Conference onTrade andDevelopment
(UNCTAD)
International Monetary Fund (IMF)
World BankOther organizations:
European Free Trade Association (EFTA)
Organization forEconomic Cooperation and
Development (OECD)
International Textiles andClothing Bureau (ITCB)
F. Organizations without observer status inGATT thatinvite GATT totheirmeetings
Theorganizations listed below donotenjoy observer status inGATT bodies, intheTokyo Round Code
Committees, orinbodies established under certain arrangements under GATT auspices. They do,however,
invite theGATT totheir meetings. Attendance bytheGATT Secretariat hasvaried considerably from one
organization toanother depending ontherelevance oftheir work tothatoftheGATT.
UNprogrammes:
United Nations Development Programme (UNDP)
UNInstitute forTraining andResearch (UNITAR)
UNspecialized agencies:
InternationalFundforAgriculturalDevelopment(IFAD)
International Maritime Organization (IMO)
International Telecommunication Union (ITU)
World Tourism OrganizationCommodity organizations:
International Sugar Organization (ISO)
International Coffee Organization (ICO)
International Cocoa Organization (ICCO)
International Cotton Advisory Committee (ICAC)
International Tropical Timber Organization (ITTO)
International JuteOrganization (IJO)
International Olive OilCouncil (IOOC)
Regional organizations:
Central American Bank
European Bank forReconstruction and
Development (EBRD)
Other Organizations:
International Chamber ofCommerce (ICC)
International Federation ofAgricultural Producers
(IFAP)
International Textiles Manufacturers Federation
(ITMF)PC/IPL/W/3
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G. Synoptic tableshowing organizations withobserver status invarious GATT bodies, andthose organizations which invite GATT totheirmeetings*
CPS Cou-
ncilCTD Reci-
procalADP SCM LIC AIR TBT VAL GPR Meat Dairy
United Nations bodies andspecialized agencies:
UN United Nations X X X X
ECA Economic Commission forAfrica X X X X
ECE Economic Commission forEurope X X X X X X
ECLAC Economic Commission forLatin America andtheCaribbean X X X X
ESCAP Economic andSocial Commission forAsia andthePacific X X X X
ESCWA Economic andSocial Commission forWestern Asia X
FAO Food andAgriculture Organization X X X X X X
ILO International Labour Office X X
UNCTAD United Nations Conference onTrade andDevelopment X X X X X X X X X X X X X
UNEP** United Nations Environment Programme X
UNESCO United Nations Educational, Scientific andCultural Organization X X
UNIDO United Nations Industrial Development Organization X X
WFC World Food Council X
WIPO World Intellectual Property Organization X X X X
IMF International Monetary Fund X X X X X X X X X X X
IBRD World Bank X X X
* Organizations thatinvite GATT totheir meetings areindicated under thecolumn "Reciprocal" .
** Observer atasubsidiary body oftheCouncil, i.e.,Group onEnvironmenal Measures andInternational Trade.PC/IPL/W/3
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CPS Cou-
ncilCTD Reci-
procalADP SCM LIC AIR TBT VAL GPR Meat Dairy
Other Organizations:
ACP African, Caribbean andPacific Group ofStates X X X
Andean Group Secretariat X X X X
Arab Monetary Fund X X X
CARICOM Caribbean Community Secretariat X X X
UDEAC Central African Customs andEconomic Union X X
Codex Alimentarius Commission X
Commonwealth Secretariat X
GCC Cooperation Council fortheArab States oftheGulf X X X X
Council ofEurope X
CCC Customs Cooperation Council X X X
EFTA European Free Trade Association X X X
IDB Inter-American Development Bank X X X X
IEC International Electro-technical Commission X
IOE International Office ofEpizootics X
ISO International Organization forStandardization X
IWC International Wheat Council X
SELA Latin-American Economic System X X X X
ALADI Latin-American Integration Association X X X X
League ofArab States X
OECD Organization forEconomic Co-operation andDevelopment X X X X X X
OAS Organization ofAmerican States X X X X
OIC Organization oftheIslamic Conference X
SIECA Secretariat oftheGeneral Treaty onCentral American Economic
IntegrationX X X
CEAO West African Economic Community X