summary two agreements

8/16/2019 Summary Two Agreements

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Introduction

“The Final Act Embodying the Results

of the Uruguay Round of Multilateral

Trade Negotiations”, signed byministers in Marraesh on !" A#ril

!$$% is ""& #ages long and contains

legal te'ts (hich s#ell out the results

of the negotiations since the Round

(as launched in )unta del Este,

Uruguay, in *e#tember !$+- In

addition to the te'ts of the

agreements, the Final Act also

contains te'ts of Ministerial .ecisions

and .eclarations (hich further clarifycertain #ro/isions of some of the

agreements-

The Final Act co/ers all the negotiating

areas cited in the )unta del Este

.eclaration (ith t(o im#ortant

e'ce#tions- The 0rst is the results of

the “maret access negotiations” in

(hich indi/idual countries ha/e made

binding commitments to reduce or

eliminate s#eci0c tari1s and non2tari1 barriers to merchandise trade- These

concessions are recorded in national

schedules that form an integral #art of

the Final Act- The second is the “initial

commitments” on liberali3ation of

trade in ser/ices- These commitments

on liberali3ation are also recorded in

national schedules-

Agreement Establishing the 4orld

Trade 5rgani3ation

The agreement establishing the 4orld

Trade 5rgani3ation 64T57 calls for a

single institutional frame(or

encom#assing the 8ATT, as modi0ed

by the Uruguay Round, all agreements

and arrangements concluded under its

aus#ices and the com#lete results of

the Uruguay Round- Its structure isheaded by a Ministerial 9onference

meeting at least once e/ery t(o years-

A 8eneral 9ouncil o/ersees the

o#eration of the agreement and

ministerial decisions on a regular

basis- This 8eneral 9ouncil acts as a

.is#ute *ettlement :ody and a Trade

)olicy Re/ie( Mechanism, (hich

concern themsel/es (ith the full range

of trade issues co/ered by the 4T5,

and has also established subsidiary

bodies such as a 8oods 9ouncil, a

*er/ices 9ouncil and a TRI)s 9ouncil-

The 4T5 frame(or ensures a “single

undertaing a##roach” to the results

of the Uruguay Round ; thus,

membershi# in the 4T5 entails

acce#ting all the results of the Round

(ithout e'ce#tion-

8eneral Agreement on Tari1s and

Trade !$$%

Te'ts on the inter#retation of the

follo(ing 8ATT articles are included in

the Final Act<

Article II — Schedules of

Concessions. Agreement to record in

national schedules “other duties orcharges” le/ied in addition to the

recorded tari1 and to bind them at the

le/els #re/ailing at the date

established in the Uruguay Round

)rotocol-



Understanding on the Interpretation of

Article XVII — State-trading

Enterprises. Agreement increasing

sur/eillance of their acti/ities through

stronger noti0cation and re/ie(

#rocedures-

Understanding on the Inter#retation of

Articles =II and =>III<:

Balance-of-payments

proisions. Agreement that

contracting #arties im#osing

restrictions for balance2of2#ayments

#ur#oses should do so in the least

trade2disru#ti/e manner and should

fa/our #rice2based measures, lie

im#ort surcharges and im#ort

de#osits, rather than ?uantitati/e

restrictions- Agreement also on

#rocedures for consultations by the

8ATT :alance2of2)ayments 9ommittee

as (ell as for noti0cation of :5)

measures-


Article XXIV — Customs Unions and!ree-"rade Areas. Agreement clarifying

and reinforcing the criteria and

#rocedures for the re/ie( of ne( or

enlarged customs unions or free2trade

areas and for the e/aluation of their

e1ects on third #arties- The

agreement also clari0es the #rocedure

to be follo(ed for achie/ing any

necessary com#ensatory ad@ustment

in the e/ent of contracting #artiesforming a customs union seeing to

increase a bound tari1- The obligations

of contracting #arties in regard to

measures taen by regional or local

go/ernments or authorities (ithin

their territories are also clari0ed-


Article XXV — #aiers. Agreement of

ne( #rocedures for the granting of

(ai/ers from 8ATT disci#lines, to

s#ecify termination dates for any

(ai/ers to be granted in the future,and to 0' e'#iry dates for e'isting

(ai/ers- The main #ro/isions

concerning the granting of (ai/ers

are, ho(e/er, contained in the

Agreement on the 4T5-


Article XXVIII — $odi%cation of &A""

Schedules. Agreement on ne(

#rocedures for the negotiation of

com#ensation (hen tari1 bindings are

modi0ed or (ithdra(n, including the

creation of a ne( negotiating right for

the country for (hich the #roduct in

?uestion accounts for the highest

#ro#ortion of its e'#orts- This is

intended to increase the ability of

smaller and de/elo#ing countries to

#artici#ate in negotiations-

Understanding on the Interpretation of Article XXXV — 'on-application of the

&eneral Agreement. Agreement to

allo( a contracting #arty or a ne(ly

acceding country to in/oe 8ATTs

non2a##lication #ro/isions /is2B2/is the

other #arty after ha/ing entered into

tari1 negotiations (ith each other- The

4T5 Agreement foresees that any

in/ocation of the non2a##lication

#ro/isions under that Agreement muste'tend to all the multilateral

agreements-

Uruguay Round )rotocol 8ATT !$$%



The results of the maret access

negotiations in (hich #artici#ants

ha/e made commitments to eliminate

or reduce tari1 rates and non2tari1

measures a##licable to trade in goods

are recorded in national schedules of concessions anne'ed to the Uruguay

Round )rotocol that forms an integral

#art of the Final Act-

The )rotocol has 0/e a##endices<

A##endi' I *ection A< Agricultural

)roducts ; Tari1 concessions on a

Most2Fa/oured Nation basisC A##endi'

I *ection :< Agricultural )roducts ;

Tari1 DuotasC A##endi' II<Tari1

9oncessions on a Most2Fa/oured

Nation :asis on 5ther )roductsC

A##endi' III< )referential Tari1 ; )art II

of *chedules 6if a##licable7C A##endi'

I>< 9oncessions on Non2Tari1 Measures

; )art III of *chedulesC A##endi' ><

Agriculture )roducts< 9ommitments

imiting *ubsidi3ation ; )art I> of

*chedules, *ection I< .omestic

*u##ort< Total AM* 9ommitments,

*ection II< E'#ort *ubsidies< :udgetary5utlay and Duantity, Reduction

9ommitments *ection III<

9ommitments imiting the *co#e of

E'#ort *ubsidies-

The schedule anne'ed to the )rotocol

relating to a Member shall become a

*chedule to the 8ATT !$$% relating to

that Member on the day on (hich the

Agreement Establishing the 4T5enters into force for that Member-

For non2agricultural #roducts the tari1

reduction agreed u#on by each

Member shall be im#lemented in 0/e

e?ual rate reductions, e'ce#t as may

be other(ise s#eci0ed in a Members

*chedule- The 0rst such reduction

shall be made e1ecti/e on the date of

entry into force of the Agreement

Establishing the 4T5- Each successi/e

reduction shall be made e1ecti/e on !

anuary of each of the follo(ing years,and the 0nal rate shall become

e1ecti/e no later than the date four

years after the date of entry into force

of the Agreement Establishing the

4T5- Go(e/er, #artici#ants may

im#lement reduction in fe(er stages

or at earlier dates than those indicated

in the )rotocol, if they so (ish-

For agricultural #roducts, as de0ned in

Article H of the Agreement on

Agriculture, the staging of reductions

shall be im#lemented as s#eci0ed in

the rele/ant #arts of the schedules-

.etails are gi/en in the section of this

#a#er concerning the Agricultural

Agreement-

A related .ecision on Measures in

Fa/our of east2.e/elo#ed 9ountries

establishes, among other things, thatthese countries (ill not be re?uired to

undertae any commitments and

concessions (hich are inconsistent

(ith their indi/idual de/elo#ment,

0nancial and trade needs- Alongside

other more s#eci0c #ro/isions for

e'ible and fa/ourable treatment, it

also allo(s for the com#letion of their

schedules of concessions and

commitments in Maret Access and in*er/ices by A#ril !$$" rather than !"

.ecember !$$J-

Agreement on Agriculture



The negotiations ha/e resulted in four

main #ortions of the AgreementC the

Agreement on Agriculture itselfC the

concessions and commitments

Members are to undertae on maret

access, domestic su##ort and e'#ortsubsidiesC the Agreement on *anitary

and )hytosanitary MeasuresC and the

Ministerial .ecision concerning east2

.e/elo#ed and Net Food2Im#orting

.e/elo#ing countries-

5/erall, the results of the negotiations

#ro/ide a frame(or for the long2term

reform of agricultural trade and

domestic #olicies o/er the years to

come- It maes a decisi/e mo/e

to(ards the ob@ecti/e of increased

maret orientation in agricultural

trade- The rules go/erning agricultural

trade are strengthened (hich (ill lead

to im#ro/ed #redictability and stability

for im#orting and e'#orting countries

alie-

The agricultural #acage also

addresses many other issues of /italeconomic and #olitical im#ortance to

many Members- These include

#ro/isions that encourage the use of

less trade2distorting domestic su##ort

#olicies to maintain the rural

economy, that allo( actions to be

taen to ease any ad@ustment burden,

and also the introduction of tightly

#rescribed #ro/isions that allo( some

e'ibility in the im#lementation of commitments- *#eci0c concerns of

de/elo#ing countries ha/e been

addressed including the concerns of

net2food im#orting countries and

least2de/elo#ed countries-

The agricultural #acage #ro/ides for

commitments in the area of maret

access, domestic su##ort and e'#ort

com#etition- The te't of the

Agricultural Agreement is mirrored in

the 8ATT *chedules of legalcommitments relating to indi/idual

countries 6see abo/e7-

In the area of market access, non2

tari1 border measures are re#laced by

tari1s that #ro/ide substantially the

same le/el of #rotection- Tari1s

resulting from this “tariKcation”

#rocess, as (ell as other tari1s on

agricultural #roducts, are to be

reduced by an a/erage J #er cent in

the case of de/elo#ed countries and

H% #er cent in the case of de/elo#ing

countries, (ith minimum reductions

for each tari1 line being re?uired-

Reductions are to be undertaen o/er

si' years in the case of de/elo#ed

countries and o/er ten years in the

case of de/elo#ing countries- east2

de/elo#ed countries are not re?uired

to reduce their tari1s-

The tariKcation #acage also #ro/ides

for the maintenance of current access

o##ortunities and the establishment of

minimum access tari1 ?uotas 6at

reduced2tari1 rates7 (here current

access is less than J #er cent of

domestic consum#tion- These

minimum access tari1 ?uotas are to

be e'#anded to " #er cent o/er theim#lementation #eriod- In the case of

“tariKed” #roducts “s#ecial

safeguard” #ro/isions (ill allo(

additional duties to be a##lied in case

shi#ments at #rices denominated in

domestic currencies belo( a certain

reference le/el or in case of a surge of



im#orts- The trigger in the safeguard

for im#ort surges de#ends on the

“im#ort #enetration” currently e'isting

in the maret, i-e- (here im#orts

currently mae u# a large #ro#ortion

of consum#tion, the im#ort surgere?uired to trigger the s#ecial

safeguard action is lo(er-

.omestic su##ort measures that ha/e,

at most, a minimal im#act on trade

6“green bo'” #olicies7 are e'cluded

from reduction commitments- *uch

#olicies include general go/ernment

ser/ices, for e'am#le in the areas of

research, disease control,

infrastructure and food security- It also

includes direct #ayments to #roducers,

for e'am#le certain forms of

“decou#led” 6from #roduction7 income

su##ort, structural ad@ustment

assistance, direct #ayments under

en/ironmental #rogrammes and under

regional assistance #rogrammes-

In addition to the green bo' #olicies,

other #olicies need not be included inthe Total Aggregate Measurement of

*u##ort 6Total AM*7 reduction

commitments- These #olicies are

direct #ayments under #roduction2

limiting #rogrammes, certain

go/ernment assistance measures to

encourage agricultural and rural

de/elo#ment in de/elo#ing countries

and other su##ort (hich maes u#

only a lo( #ro#ortion 6" #er cent in thecase of de/elo#ed countries and !&

#er cent in the case of de/elo#ing

countries7 of the /alue of #roduction of

indi/idual #roducts or, in the case of

non2#roduct2s#eci0c su##ort, the

/alue of total agricultural #roduction-

The Total AM* co/ers all su##ort

#ro/ided on either a #roduct2s#eci0c

or non2#roduct2s#eci0c basis that does

not ?ualify for e'em#tion and is to be

reduced by H& #er cent 6!J-J #er cent

for de/elo#ing countries (ith noreduction for least2de/elo#ed

countries7 during the im#lementation

#eriod-

Members are re?uired to reduce the

/alue of mainly direct e(port

su)sidiesto a le/el J #er cent belo(

the !$+2$& base #eriod le/el o/er the

si'2year im#lementation #eriod, and

the ?uantity of subsidised e'#orts by

H! #er cent o/er the same #eriod- In

the case of de/elo#ing countries, the

reductions are t(o2thirds those of

de/elo#ed countries o/er a ten2year

#eriod 6(ith no reductions a##lying to

the least2de/elo#ed countries7 and

sub@ect to certain conditions, there are

no commitments on subsidies to

reduce the costs of mareting e'#orts

of agricultural #roducts or internal

trans#ort and freight charges one'#ort shi#ments- 4here subsidised

e'#orts ha/e increased since the

!$+2$& base #eriod, !$$!2$H may be

used, in certain circumstances, as the

beginning #oint of reductions although

the end2#oint remains that based on

the !$+2$& base #eriod le/el- The

Agreement on Agriculture #ro/ides for

some limited e'ibility bet(een years

in terms of e'#ort subsidy reductioncommitments and contains #ro/isions

aimed at #re/enting the circum/ention

of the e'#ort subsidy commitments

and sets out criteria for food aid

donations and the use of e'#ort

credits-



“)eace” #ro/isions (ithin the

agreement include< an understanding

that certain actions a/ailable under

the *ubsidies Agreement (ill not be

a##lied (ith res#ect to green bo'

#olicies and domestic su##ort ande'#ort subsidies maintained in

conformity (ith commitmentsC an

understanding that “due restraint” (ill

be used in the a##lication of

counter/ailing duty rights under the

8eneral AgreementC and setting out

limits in terms of the a##licability of

nulli0cation or im#airment actions-

These #eace #ro/isions (ill a##ly for a

#eriod of $ years-

The agreement sets u# a committee

that (ill monitor the im#lementation

of commitments, and also monitor the

follo(2u# to the .ecision on Measures

9oncerning the )ossible Negati/e

E1ects of the Reform )rogramme on

east2.e/elo#ed and Net Food2

Im#orting .e/elo#ing 9ountries-

The #acage is concei/ed as #art of acontinuing #rocess (ith the long2term

ob@ecti/e of securing substantial

#rogressi/e reductions in su##ort and

#rotection- In this light, it calls for

further negotiations in the 0fth year of

im#lementation (hich, along (ith an

assessment of the 0rst 0/e years,

(ould tae into account non2trade

concerns, s#ecial and di1erential

treatment for de/elo#ing countries,the ob@ecti/e to establish a fair and

maret2oriented agricultural trading

system and other concerns and

ob@ecti/es noted in the #reamble to

the agreement-

Agreement on *anitary and

)hytosanitary Measures

This agreement concerns the

a##lication of sanitary and#hytosanitary measures ; in other

(ords food safety and animal and

#lant health regulations- The

agreement recognises that

go/ernments ha/e the right to tae

sanitary and #hytosanitary measures

but that they should be a##lied only to

the e'tent necessary to #rotect

human, animal or #lant life or health

and should not arbitrarily orun@usti0ably discriminate bet(een

Members (here identical or similar

conditions #re/ail-

In order to harmoni3e sanitary and

#hytosanitary measures on as (ide a

basis as #ossible, Members are

encouraged to base their measures on

international standards, guidelines and

recommendations (here they e'ist-

Go(e/er, Members may maintain orintroduce measures (hich result in

higher standards if there is scienti0c

@usti0cation or as a conse?uence of

consistent ris decisions based on an

a##ro#riate ris assessment- The

Agreement s#ells out #rocedures and

criteria for the assessment of ris and

the determination of a##ro#riate

le/els of sanitary or #hytosanitary

#rotection-

It is e'#ected that Members (ould

acce#t the sanitary and #hytosanitary

measures of others as e?ui/alent if the

e'#orting country demonstrates to the

im#orting country that its measures

achie/e the im#orting countrys



a##ro#riate le/el of health #rotection-

The agreement includes #ro/isions on

control, ins#ection and a##ro/al

#rocedures-

.ecision on Measures 9oncerning

the )ossible Negati/e E1ects of the

Reform )rogramme on east2

.e/elo#ed and Net Food2Im#orting

.e/elo#ing 9ountries

It is recogni3ed that during the reform

#rogramme least2de/elo#ed and net

food2i m#orting de/elo#ing countries

may e'#erience negati/e e1ects (ithres#ect to su##lies of food im#or ts on

reasonable terms and conditions-

Therefore, a s#ecial .ecision sets out

ob@ecti/es (ith regard to the #ro/ision

of food aid, the #ro/ision of basic

foodstu1s in full grant form and aid for

agricultural de/elo#ment- It also refers

to the #ossibility of assistance from

the International Monetary Fund and

the 4orld :an (ith res#ect to the

short2term 0nancing of commercial

food im#orts- The 9ommittee of

Agriculture, set u# under the

Agreement on Agriculture, monitors

the follo(2u# to the .ecision-

Agreement on Textiles andClothing

The ob@ect of this negotiation has beento secure the e/entual integration of the te'tiles and clothing sector ;(here much of the trade is currentlysub@ect to bilateral ?uotas negotiatedunder the Multi0bre Arrangement6MFA7 ; into the 8ATT on the basis of strengthened 8ATT rules anddisci#lines-

Integration of the sector into the 8ATT(ould tae #lace as follo(s < 0rst, on !

anuary !$$"C each #arty (ouldintegrate into the 8ATT #roducts fromthe s#eci0c list in the Agreement(hich accounted for not less than !

#er cent of its total /olume of im#ortsin !$$&- Integration means that tradein these #roducts (ill be go/erned bythe general rules of 8ATT-

At the beginning of )hase H, on ! anuary !$$+, #roducts (hichaccounted for not less than !L #ercent of !$$& im#orts (ould beintegrated- 5n ! anuary H&&H,#roducts (hich accounted for not lessthan !+ #er cent of !$$& im#orts(ould be integrated- All remaining#roducts (ould be integrated at theend of the transition #eriod on !

anuary H&&"- At each of the 0rst threestages, #roducts should be chosenfrom each of the follo(ing categories<to#s and yarns, fabrics, made2u#te'tile #roducts, and clothing-

All MFA restrictions in #lace on J!.ecember !$$% (ould be carried o/erinto the ne( agreement andmaintained until such time as therestrictions are remo/ed or the#roducts integrated into 8ATT- For#roducts remaining under restraint, at(hate/er stage, the agreement laysdo(n a formula for increasing thee'isting gro(th rates- Thus, during*tage !, and for each restriction#re/iously under MFA bilateralagreements in force for !$$%, annualgro(th should be not less than ! #er

cent higher than the gro(th rateestablished for the #re/ious MFArestriction- For *tage H 6!$$+ to H&&!inclusi/e7, annual gro(th rates shouldbe H" #er cent higher than the *tage !rates- For *tage J 6H&&H to H&&%inclusi/e7, annual gro(th rates shouldbe HL #er cent higher than the *tage Hrates-



4hile the agreement focuses largelyon the #hasing2out of MFA restrictions,it also recogni3es that some membersmaintain non2MFA restrictions not

@usti0ed under a 8ATT #ro/ision- These(ould also be brought into conformity

(ith 8ATT (ithin one year of the entryinto force of the Agreement or #hasedout #rogressi/ely during a #eriod note'ceeding the duration of theAgreement 6that is, by H&&"7-

It also contains a s#eci0c transitionalsafeguard mechanism (hich could bea##lied to #roducts not yet integratedinto the 8ATT at any stage- Actionunder the safeguard mechanism couldbe taen against indi/idual e'#ortingcountries if it (ere demonstrated bythe im#orting country that o/erallim#orts of a #roduct (ere entering thecountry in such increased ?uantitiesas to cause serious damage ; or tothreaten it ; to the rele/ant domesticindustry, and that there (as a shar#and substantial increase of im#ortsfrom the indi/idual country concerned-Action under the safeguardmechanism could be taen either bymutual agreement, follo(ingconsultations, or unilaterally butsub@ect to re/ie( by the Te'tilesMonitoring :ody- If taen, the le/el of restraints should be 0'ed at a le/el notlo(er than the actual le/el of e'#ortsor im#orts from the country concernedduring the t(el/e2month #eriodending t(o months before the monthin (hich a re?uest for consultation (asmade- *afeguard restraints couldremain in #lace for u# to three years(ithout e'tension or until the #roductis remo/ed from the sco#e of theagreement 6that is, integrated into the8ATT7, (hiche/er comes 0rst-

The agreement includes #ro/isions toco#e (ith #ossible circum/ention of commitments through transshi#ment,re2routing, false declaration

concerning country or #lace of originand falsi0cation of oKcial documents-

The agreement also sti#ulates that, as#art of the integration #rocess, allmembers shall tae such actions in the

area of te'tiles and clothing as may benecessary to abide by 8ATT rules anddisci#lines so as to im#ro/e maretaccess, ensure the a##lication of #olicies relating to fair and e?uitabletrading conditions, and a/oiddiscrimination against im#orts (hentaing measures for general trade#olicy reasons-

In the conte't of a ma@or re/ie( of theo#eration of the agreement to beconducted by the 9ouncil for Trade in8oods before the end of each stage of the integration #rocess, the 9ouncil for

Trade in 8oods shall by consensustae such decisions as it deemsa##ro#riate to ensure that the balanceof rights and obligations in thisagreement is not u#set- Moreo/er, the.is#ute *ettlement :ody mayauthorise ad@ustments to the annualgro(th of ?uotas for the stagesubse?uent to the re/ie( (ith res#ectto Members it has found not to becom#lying (ith their obligations underthis agreement-

A Te'tiles Monitoring :ody 6TM:7o/ersees the im#lementation of commitments and to #re#are re#ortsfor the ma@or re/ie(s mentionedabo/e- The agreement also has#ro/isions for s#ecial treatment tocertain categories of countries ; for

e'am#le, those (hich ha/e not beenMFA members since !$+, ne(entrants, small su##liers, and least2de/elo#ed countries-

Agreement on TechnicalBarriers to Trade



This agreement (ill e'tend and clarifythe Agreement on Technical :arriers to

Trade reached in the Toyo Round- Itsees to ensure that technicalnegotiations and standards, as (ell astesting and certi0cation #rocedures,

do not create unnecessary obstaclesto trade- Go(e/er, it recogni3es thatcountries ha/e the right to establish#rotection, at le/els they considera##ro#riate, for e'am#le for human,animal or #lant life or health or theen/ironment, and should not be#re/ented from taing measuresnecessary to ensure those le/els of #rotection are met- The agreementtherefore encourages countries to useinternational standards (here these

are a##ro#riate, but it does not re?uirethem to change their le/els of #rotection as a result of standardi3ation-

Inno/ati/e features of the re/isedagreement are that it co/ers#rocessing and #roduction methodsrelated to the characteristics of the#roduct itself- The co/erage of conformity assessment #rocedures isenlarged and the disci#lines mademore #recise- Noti0cation #ro/isionsa##lying to local go/ernment and non2go/ernmental bodies are elaborated inmore detail than in the Toyo Roundagreement- A 9ode of 8ood )racticefor the )re#aration, Ado#tion andA##lication of *tandards bystandardi3ing bodies, (hich is o#en toacce#tance by #ri/ate sector bodiesas (ell as the #ublic sector, is includedas an anne' to the agreement-

Agreement on Trade RelatedAspects of InvestmentMeasures

The agreement recogni3es that certainin/estment measures restrict anddistort trade- It #ro/ides that no

contracting #arty shall a##ly any TRIMinconsistent (ith Articles III 6nationaltreatment7 and =I 6#rohibition of ?uantitati/e restrictions7 of the 8ATT-

To this end, an illustrati/e list of TRIMsagreed to be inconsistent (ith these

articles is a##ended to the agreement- The list includes measures (hichre?uire #articular le/els of local#rocurement by an enter#rise 6“localcontent re?uirements”7 or (hichrestrict the /olume or /alue of im#ortssuch an enter#rise can #urchase oruse to an amount related to the le/elof #roducts it e'#orts 6“tradebalancing re?uirements”7-

The agreement re?uires mandatorynoti0cation of all non2conforming

TRIMs and their elimination (ithin t(oyears for de/elo#ed countries, (ithin0/e years for de/elo#ing countries and(ithin se/en years for least2de/elo#edcountries- It establishes a 9ommitteeon TRIMs (hich (ill, among otherthings, monitor the im#lementation of these commitments- The agreementalso #ro/ides for consideration, at alater date, of (hether it should becom#lemented (ith #ro/isions onin/estment and com#etition #olicymore broadly-

Agreement on Implementationof Article VI (Anti-dumping

Article >I of the 8ATT #ro/ides for theright of contracting #arties to a##lyanti2dum#ing measures, i-e- measuresagainst im#orts of a #roduct at ane'#ort #rice belo( its “normal /alue”6usually the #rice of the #roduct in thedomestic maret of the e'#ortingcountry7 if such dum#ed im#orts



cause in@ury to a domestic industry inthe territory of the im#ortingcontracting #arty- More detailed rulesgo/erning the a##lication of suchmeasures are currently #ro/ided in anAnti2dum#ing Agreement concluded at

the end of the Toyo Round-Negotiations in the Uruguay Roundha/e resulted in a re/ision of thisAgreement (hich addresses manyareas in (hich the current Agreementlacs #recision and detail-

In #articular, the re/ised Agreement#ro/ides for greater clarity and moredetailed rules in relation to themethod of determining that a #roductis dum#ed, the criteria to be taen intoaccount in a determination thatdum#ed im#orts cause in@ury to adomestic industry, the #rocedures tobe follo(ed in initiating andconducting anti2dum#ingin/estigations, and theim#lementation and duration of anti2dum#ing measures- In addition, thene( agreement clari0es the role of dis#ute settlement #anels in dis#utesrelating to anti2dum#ing actions taenby domestic authorities-

5n the methodology for determiningthat a #roduct is e'#orted at adum#ed #rice, the ne( Agreementadds relati/ely s#eci0c #ro/isions onsuch issues as criteria for allocatingcosts (hen the e'#ort #rice iscom#ared (ith a “constructed” normal/alue and rules to ensure that a faircom#arison is made bet(een thee'#ort #rice and the normal /alue of a

#roduct so as not to arbitrarily createor inate margins of dum#ing-

The agreement strengthens there?uirement for the im#orting countryto establish a clear causal relationshi#bet(een dum#ed im#orts and in@ury tothe domestic industry- Thee'amination of the dum#ed im#orts on

the industry concerned must includean e/aluation of all rele/ant economicfactors bearing on the state of theindustry concerned- The agreementcon0rms the e'isting inter#retation of the term “domestic industry”- *ub@ect

to a fe( e'ce#tions, “domesticindustry” refers to the domestic#roducers as a (hole of the lie#roducts or to those of them (hosecollecti/e out#ut of the #roductsconstitutes a ma@or #ro#ortion of thetotal domestic #roduction of those#roducts-

9lear2cut #rocedures ha/e beenestablished on ho( anti2dum#ingcases are to be initiated and ho( suchin/estigations are to be conducted-9onditions for ensuring that allinterested #arties are gi/en ano##ortunity to #resent e/idence areset out- )ro/isions on the a##licationof #ro/isional measures, the use of #rice undertaings in anti2dum#ingcases, and on the duration of anti2dum#ing measures ha/e beenstrengthened- Thus, a signi0cantim#ro/ement o/er the e'istingAgreement consists of the addition of a ne( #ro/ision under (hich anti2dum#ing measures shall e'#ire 0/eyears after the date of im#osition,unless a determination is made that,in the e/ent of termination of themeasures, dum#ing and in@ury (ouldbe liely to continue or recur-

A ne( #ro/ision re?uires theimmediate termination of an anti2dum#ing in/estigation in cases (here

the authorities determine that themargin of dum#ing is deminimis 6(hich is de0ned as less thanH #er cent, e'#ressed as a #ercentageof the e'#ort #rice of the #roduct7 orthat the /olume of dum#ed im#orts isnegligible 6generally (hen the /olumeof dum#ed im#orts from an indi/idualcountry accounts for less than J #er



cent of the im#orts of the #roduct in?uestion into the im#orting country7-

The agreement calls for #rom#t anddetailed noti0cation of all #reliminaryor 0nal anti2dum#ing actions to a

9ommittee on Anti2dum#ing )ractices- The agreement (ill a1ord #arties theo##ortunity of consulting on anymatter relating to the o#eration of theagreement or the furtherance of itsob@ecti/es, and to re?uest theestablishment of #anels to e'aminedis#utes-

Agreement on Implementation

of Article VII (CustomsValuation

The .ecision on 9ustoms >aluation(ould gi/e customs administrationsthe right to re?uest further informationof im#orters (here they ha/e reasonto doubt the accuracy of the declared/alue of im#orted goods- If theadministration maintains a reasonabledoubt, des#ite any additionalinformation, it may be deemed that

the customs /alue of the im#ortedgoods cannot be determined on thebasis of the declared /alue, andcustoms (ould need to establish the/alue taing into account the#ro/isions of the Agreement- Inaddition, t(o accom#anying te'tsfurther clarify certain of theAgreements #ro/isions rele/ant tode/elo#ing countries and relating tominimum /alues and im#ortations bysole agents, sole distributors and sole

concessionaires-

Agreement on !reshipmentInspection

)reshi#ment ins#ection 6)*I7 is the#ractice of em#loying s#eciali3ed

#ri/ate com#anies to chec shi#mentdetails ; essentially #rice, ?uantity,?uality ; of goods ordered o/erseas-Used by go/ernments of de/elo#ingcountries, the #ur#ose is to safeguardnational 0nancial interests 6#re/ention

of ca#ital ight and commercial fraudas (ell as customs duty e/asion, forinstance7 and to com#ensate forinade?uacies in administrati/einfrastructures-

The agreement recogni3es that 8ATT#rinci#les and obligations a##ly to theacti/ities of #reshi#ment ins#ectionagencies mandated by go/ernments-

The obligations #laced on )*I2usergo/ernments include non2discrimination, trans#arency,#rotection of con0dential businessinformation, a/oidance of unreasonable delay, the use of s#eci0cguidelines for conducting #rice/eri0cation and the a/oidance of conicts of interest by the )*Iagencies-

The obligations of e'#ortingcontracting #arties to(ards )*I usersinclude non2discrimination in thea##lication of domestic la(s andregulations, #rom#t #ublication of such la(s and regulations and the#ro/ision of technical assistance(here re?uested-

The agreement establishes aninde#endent re/ie( #rocedure ;administered @ointly by an organi3ationre#resenting )*I agencies and anorgani3ation re#resenting e'#orters ;

to resol/e dis#utes bet(een ane'#orter and a )*I agency-

Agreement on Rules of "rigin

The agreement aims at long2termharmoni3ation of rules of origin, otherthan rules of origin relating to the



granting of tari1 #references, and toensure that such rules do notthemsel/es create unnecessaryobstacles to trade-

The agreement sets u# a

harmoni3ation #rogramme, to beinitiated as soon as #ossible after thecom#letion of the Uruguay Round andto be com#leted (ithin three years of initiation- It (ould be based u#on a setof #rinci#les, including maing rules of origin ob@ecti/e, understandable and#redictable- The (or (ould beconducted by a 9ommittee on Rules of 5rigin 69R57 in the 4T5 and atechnical committee 6T9R57 under theaus#ices of the 9ustoms 9oo#eration9ouncil in :russels-

Much (or (as done in the 9R5 andthe T9R5 and substantial #rogress hasbeen achie/ed in the three yearsforeseen in the Agreement for thecom#letion of the (or- Go(e/er, dueto the com#le'ity of the issues theG4) could not be 0nali3ed (ithin theforeseen deadline- The 9R5 continuedits (or in H&&&- In .ecember H&&&,the 8eneral 9ouncil *#ecial *essionagreed to set, as the ne( deadline forcom#letion of the remainder of the(or, the Fourth *ession of theMinisterial 9onference, or at the latestthe end of H&&!- The negotiating te'tsare contained in documents 8R5%!and 8R5%"-

Until the com#letion of theharmoni3ation #rogramme,contracting #arties (ould be e'#ected

to ensure that their rules of origin aretrans#arentC that they do not ha/erestricting, distorting or disru#ti/ee1ects on international tradeC thatthey are administered in a consistent,uniform, im#artial and reasonablemanner, and that they are based on a#ositi/e standard 6in other (ords, they

should state (hat does confer originrather than (hat does not7-

An anne' to the agreement sets out a“common declaration” (ith res#ect tothe o#eration of rules of origin on

goods (hich ?ualify for #referentialtreatment-

Agreement on Import #icensing!rocedures

The re/ised agreement strengthensthe disci#lines on the users of im#ortlicensing systems ; (hich, in anye/ent, are much less (idely used no(

than in the #ast ; and increasestrans#arency and #redictability- Fore'am#le, the agreement re?uires#arties to #ublish suKcientinformation for traders to no( thebasis on (hich licences are granted- Itcontains strengthened rules for thenoti0cation of the institution of im#ortlicensing #rocedures or changestherein- It also o1ers guidance on theassessment of a##lications-

4ith res#ect to automatic licensing#rocedures, the re/ised agreementsets out criteria under (hich they areassumed not to ha/e trade restricti/ee1ects- 4ith res#ect to non2automaticlicensing #rocedures, theiradministrati/e burden for im#ortersand e'#orters should be limited to(hat is absolutely necessary toadminister the measures to (hich theya##ly- The re/ised agreement also setsa ma'imum of & days for a##lications

to be considered-

Agreement on $u%sidies andCountervailing Measures

The Agreement on *ubsidies and9ounter/ailing Measures is intended to



build on the Agreement onInter#retation and A##lication of Articles >I, =>I and ==III (hich (asnegotiated in the Toyo Round-

Unlie its #redecessor, the agreement

contains a de0nition of subsidy andintroduces the conce#t of a “s#eci0c”subsidy ; for the most #art, a subsidya/ailable only to an enter#rise orindustry or grou# of enter#rises orindustries (ithin the @urisdiction of theauthority granting the subsidy- 5nlys#eci0c subsidies (ould be sub@ect tothe disci#lines set out in theagreement-

The agreement establishes threecategories of subsidies- First, it deemsthe follo(ing subsidies to be“#rohibited”< those contingent, in la(or in fact, (hether solely or as one of se/eral other conditions, u#on e'#ort#erformanceC and those contingent,(hether solely or as one of se/eralother conditions, u#on the use of domestic o/er im#orted goods-)rohibited subsidies are sub@ect to ne(dis#ute settlement #rocedures- Themain features include an e'#editedtimetable for action by the .is#ute*ettlement body, and if it is found thatthe subsidy is indeed #rohibited, itmust be immediately (ithdra(n- If thisis not done (ithin the s#eci0ed time#eriod, the com#laining member isauthori3ed to tae countermeasures-6*ee the section on “.is#ute*ettlement” for details on the#rocedures7-

The second category is “actionable”subsidies- The agreement sti#ulatesthat no member should cause, throughthe use of subsidies, ad/erse e1ects tothe interests of other signatories, i-e-in@ury to domestic industry of anothersignatory, nulli0cation or im#airmentof bene0ts accruing directly orindirectly to other signatories under

the 8eneral Agreement 6in #articularthe bene0ts of bound tari1 concessions7, and serious #re@udice tothe interests of another member-“*erious #re@udice” shall be #resumedto e'ist for certain subsidies including

(hen the total adalorem subsidi3ation of a #roducte'ceeds " #er cent- In such asituation, the burden of #roof is on thesubsidi3ing member to sho( that thesubsidies in ?uestion do not causeserious #re@udice to the com#lainingmember- Members a1ected byactionable subsidies may refer thematter to the .is#ute *ettlementbody- In the e/ent that it is determinedthat such ad/erse e1ects e'ist, the

subsidi3ing member must (ithdra(the subsidy or remo/e the ad/ersee1ects-

The third category in/ol/es non2actionable subsidies, (hich couldeither be non2s#eci0c subsidies, ors#eci0c subsidies in/ol/ing assistanceto industrial research and #re2com#etiti/e de/elo#ment acti/ity,assistance to disad/antaged regions,or certain ty#e of assistance forada#ting e'isting facilities to ne(en/ironmental re?uirements im#osedby la( andor regulations- 4hereanother member belie/es that another(ise non2actionable subsidy isresulting in serious ad/erse e1ects toa domestic industry, it may see adetermination and recommendationon the matter-

5ne #art of the agreement concerns

the use of counter/ailing measures onsubsidi3ed im#orted goods- It sets outdisci#lines on the initiation of counter/ailing cases, in/estigations bynational authorities and rules of e/idence to ensure that all interested#arties can #resent information andargument- 9ertain disci#lines on thecalculation of the amount of a subsidy



are outlined as is the basis for thedetermination of in@ury to thedomestic industry- The agreement(ould re?uire that all rele/anteconomic factors be taen intoaccount in assessing the state of the

industry and that a causal lin beestablished bet(een the subsidi3edim#orts and the alleged in@ury-9ounter/ailing in/estigations shall beterminated immediately in cases(here the amount of a subsidy is deminimis 6the subsidy is less than ! #ercent adalorem* or (here the /olumeof subsidi3ed im#orts, actual or#otential, or the in@ury is negligible-E'ce#t under e'ce#tionalcircumstances, in/estigations shall be

concluded (ithin one year after theirinitiation and in no case more than !+months- All counter/ailing duties ha/eto be terminated (ithin " years of their im#osition unless the authoritiesdetermine on the basis of a re/ie(that the e'#iry of the duty (ould beliely to lead to continuation orrecurrence of subsidi3ation and in@ury-

The agreement recogni3es thatsubsidies may #lay an im#ortant rolein economic de/elo#ment#rogrammes of de/elo#ing countries,and in the transformation of centrally2#lanned economies to mareteconomies- east2de/elo#ed countriesand de/elo#ing countries that ha/eless than !,&&& #er ca#ita 8N) arethus e'em#ted from disci#lines on#rohibited e'#ort subsidies, and ha/ea time2bound e'em#tion from other#rohibited subsidies- For otherde/elo#ing countries, the e'#ortsubsidy #rohibition (ould tae e1ect +years after the entry into force of theagreement establishing the 4T5, andthey ha/e a time2bound 6though fe(eryears than for #oorer de/elo#ingcountries7 e'em#tion from the other#rohibited subsidies- 9ounter/ailingin/estigation of a #roduct originating

from a de/elo#ing2country member(ould be terminated if the o/erallle/el of subsidies does not e'ceed H#er cent 6and from certain de/elo#ingcountries J #er cent7 of the /alue of the #roduct, or if the /olume of the

subsidi3ed im#orts re#resents lessthan % #er cent of the total im#orts forthe lie #roduct in the im#ortingsignatory- For countries in the #rocessof transformation from a centrally2#lanned into a maret economy,#rohibited subsidies shall be #hasedout (ithin a #eriod of se/en yearsfrom the date of entry into force of theagreement-

In antici#ation of the negotiation of s#ecial rules in the ciil aircraft sector,under the subsidies agreement, ci/ilaircraft #roducts are not sub@ect to the#resum#tion that adalorem subsidi3ation in e'cess of "#er cent causes serious #re@udice tothe interests of other Members- Inaddition, the Agreement #ro/ides that(here re#ayment of 0nancing in theci/il aircraft sector is de#endent onthe le/el of sales of a #roduct andsales fall belo( e'#ectations, this doesnot in itself gi/e rise to such#resum#tion of serious #re@udice-

Agreement on $afeguards

Article =I= of the 8eneral Agreementallo(s a 8ATT member to tae a“safeguard” action to #rotect as#eci0c domestic industry from anunforeseen increase of im#orts of any

#roduct (hich is causing, or (hich isliely to cause, serious in@ury to theindustry-

The agreement breas ma@or ground inestablishing a #rohibition against so2called “grey area” measures, and insetting a “sunset clause” on allsafeguard actions- The agreement



sti#ulates that a member shall notsee, tae or maintain any /oluntarye'#ort restraints, orderly maretingarrangements or any other similarmeasures on the e'#ort or the im#ortside- Any such measure in e1ect at the

time of entry into force of theagreement (ould be brought intoconformity (ith this agreement, or(ould ha/e to be #hased out (ithinfour years after the entry into force of the agreement establishing the 4T5-An e'ce#tion could be made for ones#eci0c measure for each im#ortingmember, sub@ect to mutual agreement(ith the directly concerned member,(here the #hase2out date (ould be J!.ecember !$$$-

All e'isting safeguard measures taenunder Article =I= of the 8eneralAgreement !$%L shall be terminatednot later than eight years after thedate on (hich they (ere 0rst a##liedor 0/e years after the date of entryinto force of the agreementestablishing the 4T5, (hiche/ercomes later-

The agreement sets out re?uirementsfor safeguard in/estigation (hichinclude #ublic notice for hearings andother a##ro#riate means for interested#arties to #resent e/idence, includingon (hether a measure (ould be in the#ublic interest- In the e/ent of criticalcircumstances, a #ro/isional safeguardmeasure may be im#osed based u#ona #reliminary determination of seriousin@ury- The duration of such a#ro/isional measure (ould not e'ceed

H&& days-

The agreement sets out the criteria for“serious in@ury” and the factors (hichmust be considered in determining theim#act of im#orts- The safeguardmeasure should be a##lied only to thee'tent necessary to #re/ent or remedyserious in@ury and to facilitate

ad@ustment- 4here ?uantitati/erestrictions are im#osed, theynormally should not reduce the?uantities of im#orts belo( the annuala/erage for the last threere#resentati/e years for (hich

statistics are a/ailable, unless clear @usti0cation is gi/en that a di1erentle/el is necessary to #re/ent orremedy serious in@ury-

In #rinci#le, safeguard measures ha/eto be a##lied irres#ecti/e of source- Incases in (hich a ?uota is allocatedamong su##lying countries, themember a##lying restrictions maysee agreement (ith others- Membersha/ing a substantial interest insu##lying the #roduct concerned-Normally, allocation of shares (ouldbe on the basis of #ro#ortion of total?uantity or /alue of the im#orted#roduct o/er a #re/ious re#resentati/e#eriod- Go(e/er, it (ould be #ossiblefor the im#orting country to de#artfrom this a##roach if it coulddemonstrate, in consultations underthe aus#ices of the *afeguards9ommittee, that im#orts from certaincontracting #arties had increaseddis#ro#ortionately in relation to thetotal increase and that such ade#arture (ould be @usti0ed ande?uitable to all su##liers- The durationof the safeguard measure in this casecannot e'ceed four years-

The agreement lays do(n time limitsfor all safeguard measures- 8enerally,the duration of a measure should note'ceed four years though this could be

e'tended u# to a ma'imum of eightyears, sub@ect to con0rmation of continued necessity by the com#etentnational authorities and if there ise/idence that the industry is ad@usting-Any measure im#osed for a #eriodgreater than one year should be#rogressi/ely liberali3ed during itslifetime- No safeguard measure could



be a##lied again to a #roduct that hadbeen sub@ect to such action for a#eriod e?ual to the duration of the#re/ious measure, sub@ect to a non2a##lication #eriod of at least t(oyears- A safeguard measure (ith a

duration of !+& days or less may bea##lied again to the im#ort of a#roduct if at least one year hadela#sed since the date of introductionof the measure on that #roduct, and if such a measure had not been a##liedon the same #roduct more than t(icein the 0/e2year #eriod immediately#receding the date of introduction of the measure-

The agreement en/isagesconsultations on com#ensation forsafeguard measures- 4hereconsultations are not successful, thea1ected members may (ithdra(e?ui/alent concessions or otherobligations under 8ATT !$$%-Go(e/er, such action is not allo(edfor the 0rst three years of thesafeguard measure if it conforms tothe #ro/isions of the agreement, andis taen as a result of an absoluteincrease in im#orts-

*afeguard measures (ould not bea##licable to a #roduct from ade/elo#ing country member, if theshare of the de/elo#ing countrymember in the im#orts of the #roductconcerned does not e'ceed J #er cent,and that de/elo#ing country members(ith less than J #er cent im#ort sharecollecti/ely account for no more than$ #er cent of total im#orts of the

#roduct concerned- A de/elo#ingcountry member has the right toe'tend the #eriod of a##lication of asafeguard measure for a #eriod of u#to t(o years beyond the normalma'imum- It can also a##ly asafeguard measure again to a #roductthat had been sub@ect to such anaction after a #eriod e?ual to half of

the duration of the #re/ious measure,sub@ect to a non2a##lication #eriod of at least t(o years-

The agreement (ould establish a*afeguards 9ommittee (hich (ould

o/ersee the o#eration of its #ro/isionsand, in #articular, be res#onsible forsur/eillance of its commitments-

&eneral Agreement on Trade in$ervices

The *er/ices Agreement (hich forms#art of the Final Act rests on three#illars- The 0rst is a Frame(or

Agreement containing basicobligations (hich a##ly to all membercountries- The second concernsnational schedules of commitmentscontaining s#eci0c further nationalcommitments (hich (ill be the sub@ectof a continuing #rocess of liberali3ation- The third is a number of anne'es addressing the s#ecialsituations of indi/idual ser/icessectors-

)art I of the basic agreement de0nesits sco#e ; s#eci0cally, ser/icessu##lied from the territory of one#arty to the territory of anotherCser/ices su##lied in the territory of one #arty to the consumers of anyother 6for e'am#le, tourism7C ser/ices#ro/ided through the #resence of ser/ice #ro/iding entities of one #artyin the territory of any other 6fore'am#le, baning7C and ser/ices#ro/ided by nationals of one #arty in

the territory of any other 6for e'am#le,construction #ro@ects orconsultancies7-

)art II sets out general obligations anddisci#lines- A basic most2fa/oured2nation 6m-f-n-7 obligation states thateach #arty “shall accord immediately



and unconditionally to ser/ices andser/ice #ro/iders of any other )arty,treatment no less fa/ourable than thatit accords to lie ser/ices and ser/ice#ro/iders of any other country”-Go(e/er, it is recogni3ed that m-f-n-

treatment may not be #ossible fore/ery ser/ice acti/ity and, therefore, itis en/isaged that #arties may indicates#eci0c m-f-n- e'em#tions- 9onditionsfor such e'em#tions are included asan anne' and #ro/ide for re/ie(s after0/e years and a normal limitation of !& years on their duration-

Trans#arency re?uirements include#ublication of all rele/ant la(s andregulations- )ro/isions to facilitate theincreased #artici#ation of de/elo#ingcountries in (orld ser/ices tradeen/isage negotiated commitments onaccess to technology, im#ro/ementsin access to distribution channels andinformation net(ors and theliberali3ation of maret access insectors and modes of su##ly of e'#ortinterest- The #ro/isions co/eringeconomic integration are analogous tothose in Article ==I> of 8ATT, re?uiringarrangements to ha/e “substantialsectoral co/erage” and to “#ro/ide forthe absence or elimination of substantially all discrimination”bet(een the #arties-

*ince domestic regulations, not bordermeasures, #ro/ide the most signi0cantinuence on ser/ices trade, #ro/isionss#ell out that all such measures of general a##lication should beadministered in a reasonable,

ob@ecti/e and im#artial manner- There(ould be a re?uirement that #artiesestablish the means for #rom#tre/ie(s of administrati/e decisionsrelating to the su##ly of ser/ices-

The agreement contains obligations(ith res#ect to recognitionre?uirements 6educational

bacground, for instance7 for the#ur#ose of securing authori3ations,licenses or certi0cation in the ser/icesarea- It encourages recognitionre?uirements achie/ed throughharmoni3ation and internationally2

agreed criteria- Further #ro/isionsstate that #arties are re?uired toensure that mono#olies and e'clusi/eser/ice #ro/iders do not abuse their#ositions- Restricti/e business#ractices should be sub@ect toconsultations bet(een #arties (ith a/ie( to their elimination-

4hile #arties are normally obliged notto restrict international transfers and#ayments for current transactionsrelating to commitments under theagreement, there are #ro/isionsallo(ing limited restrictions in thee/ent of balance2of2#aymentsdiKculties- Go(e/er, (here suchrestrictions are im#osed they (ould besub@ect to conditionsC including thatthey are non2discriminatory, that theya/oid unnecessary commercialdamage to other #arties and that theyare of a tem#orary nature-

The agreement contains both generale'ce#tions and security e'ce#tions#ro/isions (hich are similar to Articles== and ==I of the 8ATT- It alsoen/isages negotiations (ith a /ie( tothe de/elo#ment of disci#lines ontrade2distorting subsidies in theser/ices area-

)art III contains #ro/isions on maretaccess and national treatment (hich

(ould not be general obligations but(ould be commitments made innational schedules- Thus, in the caseof maret access, each #arty “shallaccord ser/ices and ser/ice #ro/idersof other )arties treatment no lessfa/ourable than that #ro/ided forunder the terms, limitations andconditions agreed and s#eci0ed in its



schedule”- The intention of themaret2access #ro/ision is to#rogressi/ely eliminate the follo(ingty#es of measures< limitations onnumbers of ser/ice #ro/iders, on thetotal /alue of ser/ice transactions or

on the total number of ser/iceo#erations or #eo#le em#loyed-E?ually, restrictions on the ind of legal entity or @oint /enture through(hich a ser/ice is #ro/ided or anyforeign ca#ital limitations relating toma'imum le/els of foreign#artici#ation are to be #rogressi/elyeliminated-

The national2treatment #ro/isioncontains the obligation to treat foreignser/ice su##liers and domestic ser/icesu##liers in the same manner-Go(e/er, it does #ro/ide the#ossibility of di1erent treatment beingaccorded the ser/ice #ro/iders of other #arties to that accorded todomestic ser/ice #ro/iders- Go(e/er,in such cases the conditions of com#etition should not, as a result, bemodi0ed in fa/our of the domesticser/ice #ro/iders-

)art I> of the agreement establishesthe basis for #rogressi/e liberali3ationin the ser/ices area throughsuccessi/e rounds of negotiations andthe de/elo#ment of nationalschedules- It also #ermits, after a#eriod of three years, #arties to(ithdra( or modify commitmentsmade in their schedules- 4herecommitments are modi0ed or(ithdra(n, negotiations should be

undertaen (ith interested #arties toagree on com#ensatory ad@ustments-4here agreement cannot be reached,com#ensation (ould be decided byarbitration-

)art > of the agreement containsinstitutional #ro/isions, includingconsultation and dis#ute settlement

and the establishment of a 9ouncil on*er/ices- The res#onsibilities of the9ouncil are set out in a Ministerial.ecision-

The 0rst of the anne'es to the

agreement concerns the mo/ement of labour- It #ermits #arties to negotiates#eci0c commitments a##lying to themo/ement of #eo#le #ro/idingser/ices under the agreement- Itre?uires that #eo#le co/ered by as#eci0c commitment shall be allo(edto #ro/ide the ser/ice in accordance(ith the terms of the commitment-Ne/ertheless, the agreement (ouldnot a##ly to measures a1ectingem#loyment, citi3enshi#, residence orem#loyment on a #ermanent basis-

The anne' on 0nancial ser/ices6largely baning and insurance7 laysdo(n the right of #arties,not(ithstanding other #ro/isions, totae #rudential measures, includingfor the #rotection of in/estors, de#ositholders and #olicy holders, and toensure the integrity and stability of the 0nancial system- Go(e/er, afurther understanding on 0nancialser/ices (ould allo( those#artici#ants (ho choose to do so toundertae commitments on 0nancialser/ices through a di1erent method-4ith res#ect to maret access, theunderstanding contains more detailedobligations on, among other things,mono#oly rights, cross2border trade6certain insurance and reinsurance#olicy (riting as (ell as 0nancial data#rocessing and transfer7, the right toestablish or e'#and a commercial#resence, and the tem#orary entry of #ersonnel- The #ro/isions on nationaltreatment refer e'#licitly to access to#ayments and clearing systemso#erated by #ublic entities and tooKcial funding and re0nancingfacilities- They also relate tomembershi# of, or #artici#ation in,self2regulatory bodies, securities or



futures e'changes and clearingagencies-

The anne' on telecommunicationsrelates to measures (hich a1ectaccess to and use of #ublic

telecommunications ser/ices andnet(ors- In #articular, it re?uires thatsuch access be accorded to another#arty, on reasonable and non2discriminatory terms, to #ermit thesu##ly of a ser/ice included in itsschedule- 9onditions attached to theuse of #ublic net(ors should be nomore than is necessary to safeguardthe #ublic ser/ice res#onsibilities of their o#erators, to #rotect thetechnical integrity of the net(or andto ensure that foreign ser/icesu##liers do not su##ly ser/ices unless#ermitted to do so through a s#eci0ccommitment- The anne' alsoencourages technical coo#eration toassist de/elo#ing countries in thestrengthening of their o(n domestictelecommunications sectors- Theanne' on air2trans#ort ser/icese'cludes from the agreementsco/erage traKc rights 6largely bilateralair2ser/ice agreements conferringlanding rights7 and directly relatedacti/ities (hich might a1ect thenegotiation of traKc rights-Ne/ertheless, the anne', in its currentform, also states that the agreementshould a##ly to aircraft re#air andmaintenance ser/ices, the maretingof air2trans#ort ser/ices and com#uter2reser/ation ser/ices- The o#eration of the anne' (ould be re/ie(ed at leaste/ery 0/e years-

In the 0nal days of the ser/icesnegotiations, three .ecisions (eretaen ; on Financial *er/ices,)rofessional *er/ices and theMo/ement of Natural )ersons- The.ecision on Financial *er/icescon0rmed that commitments in thissector (ould be im#lemented on an

MFN basis, and #ermits Members tore/ise and 0nali3e their schedules of commitments and their MFNe'em#tions si' months after the entryinto force of the Agreement- 9ontraryto some media re#orts, the audio2

/isual and maritime sectors ha/e notbeen remo/ed from the sco#e of the8AT*-

Agreement on Trade RelatedAspects of Intellectual !ropert'Rights Including Trade inCounterfeit &oods

The agreement recognises that (idely

/arying standards in the #rotectionand enforcement of intellectual#ro#erty rights and the lac of amultilateral frame(or of #rinci#les,rules and disci#lines dealing (ithinternational trade in counterfeitgoods ha/e been a gro(ing source of tension in international economicrelations- Rules and disci#lines (ereneeded to co#e (ith these tensions- Tothat end, the agreement addressesthe a##licability of basic 8ATT

#rinci#les and those of rele/antinternational intellectual #ro#ertyagreementsC the #ro/ision of ade?uateintellectual #ro#erty rightsC the#ro/ision of e1ecti/e enforcementmeasures for those rightsC multilateraldis#ute settlementC and transitionalarrangements-

)art I of the agreement sets outgeneral #ro/isions and basic#rinci#les, notably a national2

treatment commitment under (hichthe nationals of other #arties must begi/en treatment no less fa/ourablethan that accorded to a #artys o(nnationals (ith regard to the #rotectionof intellectual #ro#erty- It also containsa most2fa/oured2nation clause, ano/elty in an international intellectual



#ro#erty agreement, under (hich anyad/antage a #arty gi/es to thenationals of another country must bee'tended immediately andunconditionally to the nationals of allother #arties, e/en if such treatment is

more fa/ourable than that (hich itgi/es to its o(n nationals-

)art II addresses each intellectual#ro#erty right in succession- 4ithres#ect to co#yright, #arties arere?uired to com#ly (ith thesubstanti/e #ro/isions of the :erne9on/ention for the #rotection of literary and artistic (ors, in its latest/ersion 6)aris !$L!7, though they (illnot be obliged to #rotect moral rightsas sti#ulated in Article bis of that9on/ention- It ensures that com#uter#rograms (ill be #rotected as literary(ors under the :erne 9on/ention andlays do(n on (hat basis data basesshould be #rotected by co#yright-Im#ortant additions to e'istinginternational rules in the area of co#yright and related rights are the#ro/isions on rental rights- The draftre?uires authors of com#uter#rogrammes and #roducers of soundrecordings to be gi/en the right toauthori3e or #rohibit the commercialrental of their (ors to the #ublic- Asimilar e'clusi/e right a##lies to 0lms(here commercial rental has led to(ides#read co#ying (hich ismaterially im#airing the right of re#roduction- The draft also re?uires#erformers to be gi/en #rotection fromunauthori3ed recording and broadcastof li/e #erformances 6bootlegging7-

The #rotection for #erformers and#roducers of sound recordings (ouldbe for no less than "& years-:roadcasting organi3ations (ouldha/e control o/er the use that can bemade of broadcast signals (ithouttheir authori3ation- This right (ouldlast for at least H& years-

4ith res#ect to trademars andser/ice mars, the agreement de0nes(hat ty#es of signs must be eligiblefor #rotection as a trademar orser/ice mar and (hat the minimumrights conferred on their o(ners must

be- Mars that ha/e become (ell2no(n in a #articular country shallen@oy additional #rotection- Inaddition, the agreement lays do(n anumber of obligations (ith regard tothe use of trademars and ser/icemars, their term of #rotection, andtheir licensing or assignment- Fore'am#le, re?uirements that foreignmars be used in con@unction (ithlocal mars (ould, as a general rule,be #rohibited-

In res#ect of geogra#hical indications,the agreement lays do(n that all#arties must #ro/ide means to #re/entthe use of any indication (hichmisleads the consumer as to the originof goods, and any use (hich (ouldconstitute an act of unfair com#etition-A higher le/el of #rotection is #ro/idedfor geogra#hical indications for (inesand s#irits, (hich are #rotected e/en(here there is no danger of the#ublics being misled as to the trueorigin- E'ce#tions are allo(ed fornames that ha/e already becomegeneric terms, but any country usingsuch an e'ce#tion must be (illing tonegotiate (ith a /ie( to #rotecting thegeogra#hical indications in ?uestion-Furthermore, #ro/ision is made forfurther negotiations to establish amultilateral system of noti0cation andregistration of geogra#hical indicationsfor (ines-

Industrial designs are also #rotectedunder the agreement for a #eriod of !& years- 5(ners of #rotected designs(ould be able to #re/ent themanufacture, sale or im#ortation of articles bearing or embodying a design



(hich is a co#y of the #rotecteddesign-

As regards #atents, there is a generalobligation to com#ly (ith thesubstanti/e #ro/isions of the )aris

9on/ention 6!$L7- In addition, theagreement re?uires that H&2year#atent #rotection be a/ailable for allin/entions, (hether of #roducts or#rocesses, in almost all 0elds of technology- In/entions may bee'cluded from #atentability if theircommercial e'#loitation is #rohibitedfor reasons of #ublic order or moralityCother(ise, the #ermitted e'clusionsare for diagnostic, thera#eutic andsurgical methods, and for #lants and6other than microorganisms7 animalsand essentially biological #rocesses forthe #roduction of #lants or animals6other than microbiological #rocesses7-)lant /arieties, ho(e/er, must be#rotectable either by #atents or bya sui generis system 6such as thebreeders rights #ro/ided in a U)5>9on/ention7- .etailed conditions arelaid do(n for com#ulsory licensing orgo/ernmental use of #atents (ithoutthe authori3ation of the #atent o(ner-Rights conferred in res#ect of #atentsfor #rocesses must e'tend to the#roducts directly obtained by the#rocessC under certain conditionsalleged infringers may be ordered by acourt to #ro/e that they ha/e not usedthe #atented #rocess-

4ith res#ect to the #rotection of layout designs of integrated circuits,the agreement re?uires #arties to

#ro/ide #rotection on the basis of the4ashington Treaty on Intellectual)ro#erty in Res#ect of Integrated9ircuits (hich (as o#ened forsignature in May !$+$, but (ith anumber of additions< #rotection mustbe a/ailable for a minimum #eriod of !& yearsC the rights must e'tend toarticles incor#orating infringing layout

designsC innocent infringers must beallo(ed to use or sell stoc in hand orordered before learning of theinfringement against a suitableroyalty< and com#ulsory licensing andgo/ernment use is only allo(ed under

a number of strict conditions-

Trade secrets and no(2ho( (hichha/e commercial /alue must be#rotected against breach of con0dence and other acts contrary tohonest commercial #ractices- Test datasubmitted to go/ernments in order toobtain mareting a##ro/al for#harmaceutical or agriculturalchemicals must also be #rotectedagainst unfair commercial use-

The 0nal section in this #art of theagreement concerns anti2com#etiti/e#ractices in contractual licences- It#ro/ides for consultations bet(eengo/ernments (here there is reason tobelie/e that licensing #ractices orconditions #ertaining to intellectual#ro#erty rights constitute an abuse of these rights and ha/e an ad/ersee1ect on com#etition- Remediesagainst such abuses must beconsistent (ith the other #ro/isions of the agreement-

)art III of the agreement sets out theobligations of member go/ernments to#ro/ide #rocedures and remediesunder their domestic la( to ensurethat intellectual #ro#erty rights can bee1ecti/ely enforced, by foreign rightholders as (ell as by their o(nnationals- )rocedures should #ermit

e1ecti/e action against infringementof intellectual #ro#erty rights butshould be fair and e?uitable, notunnecessarily com#licated or costly,and should not entail unreasonabletime2limits or un(arranted delays-

They should allo( for @udicial re/ie( of 0nal administrati/e decisions- There isno obligation to #ut in #lace a @udicial



system distinct from that for theenforcement of la(s in general, nor togi/e #riority to the enforcement of intellectual #ro#erty rights in theallocation of resources or sta1-

The ci/il and administrati/e#rocedures and remedies s#elled outin the te't include #ro/isions one/idence of #roof, in@unctions,damages and other remedies (hich(ould include the right of @udicialauthorities to order the dis#osal ordestruction of infringing goods- udicialauthorities must also ha/e theauthority to order #rom#t ande1ecti/e #ro/isional measures, in#articular (here any delay is liely tocause irre#arable harm to the rightholder, or (here e/idence is liely tobe destroyed- Further #ro/isions relateto measures to be taen at the borderfor the sus#ension by customsauthorities of release, into domesticcirculation, of counterfeit and #iratedgoods- Finally, #arties should #ro/idefor criminal #rocedures and #enaltiesat least in cases of (ilful trademarcounterfeiting or co#yright #iracy on acommercial scale- Remedies shouldinclude im#risonment and 0nessuKcient to act as a deterrent-

The agreement (ould establish a9ouncil for Trade2Related As#ects of Intellectual )ro#erty Rights to monitorthe o#eration of the agreement andgo/ernments com#liance (ith it-.is#ute settlement (ould tae #laceunder the integrated 8ATT dis#ute2settlement #rocedures as re/ised in

the Uruguay Round-

4ith res#ect to the im#lementation of the agreement, it en/isages a one2year transition #eriod for de/elo#edcountries to bring their legislation and#ractices into conformity- .e/elo#ingcountries and countries in the #rocessof transformation from a centrally2

#lanned into a maret economy (ouldha/e a 0/e2year transition #eriod, andleast2de/elo#ed countries !! years-.e/elo#ing countries (hich do not at#resent #ro/ide #roduct #atent#rotection in an area of technology

(ould ha/e u# to !& years tointroduce such #rotection- Go(e/er, inthe case of #harmaceutical andagricultural chemical #roducts, theymust acce#t the 0ling of #atenta##lications from the beginning of thetransitional #eriod- Though the #atentneed not be granted until the end of this #eriod, the no/elty of thein/ention is #reser/ed as of the dateof 0ling the a##lication- If authori3ation for the mareting of the

rele/ant #harmaceutical or agriculturalchemical is obtained during thetransitional #eriod, the de/elo#ingcountry concerned must o1er ane'clusi/e mareting right for the#roduct for 0/e years, or until a#roduct #atent is granted, (hiche/eris shorter-

*ub@ect to certain e'ce#tions, thegeneral rule is that the obligations inthe agreement (ould a##ly to e'istingintellectual #ro#erty rights as (ell asto ne( ones-

)nderstanding on Rules and!rocedures &overning the$ettlement of *isputes

The dis#ute settlement system of the8ATT is generally considered to be oneof the cornerstones of the multilateral

trade order- The system has alreadybeen strengthened and streamlined asa result of reforms agreed follo(ingthe Mid2Term Re/ie( MinisterialMeeting held in Montreal in .ecember!$++- .is#utes currently being dealt(ith by the 9ouncil are sub@ect tothese ne( rules, (hich include greaterautomaticity in decisions on the



establishment, terms of reference andcom#osition of #anels, such that thesedecisions are no longer de#endentu#on the consent of the #arties to adis#ute- The Uruguay RoundUnderstanding on Rules and

)rocedures 8o/erning the *ettlementof .is#utes 6.*U7 (ill furtherstrengthen the e'isting systemsigni0cantly, e'tending the greaterautomaticity agreed in the Mid2TermRe/ie( to the ado#tion of the #anelsand a ne( A##ellate :odys 0ndings-Moreo/er, the .*U (ill establish anintegrated system #ermitting 4T5Members to base their claims on anyof the multilateral trade agreementsincluded in the Anne'es to the

Agreement establishing the 4T5- Forthis #ur#ose, a .is#ute *ettlement:ody 6.*:7 (ill e'ercise the authorityof the 8eneral 9ouncil and the9ouncils and committees of theco/ered agreements-

The .*U em#hasi3es the im#ortanceof consultations in securing dis#uteresolution, re?uiring a Member toenter into consultations (ithin J& daysof a re?uest for consultations fromanother Member- If after & days fromthe re?uest for consultations there isno settlement, the com#laining #artymay re?uest the establishment of a#anel- 4here consultations are denied,the com#laining #arty may mo/edirectly to re?uest a #anel- The #artiesmay /oluntarily agree to follo(alternati/e means of dis#utesettlement, including good oKces,conciliation, mediation and arbitration-

4here a dis#ute is not settled throughconsultations, the .*U re?uires theestablishment of a #anel, at the latest,at the meeting of the .*: follo(ingthat at (hich a re?uest is made,unless the .*: decides by consensusagainst establishment- The .*U alsosets out s#eci0c rules and deadlines

for deciding the terms of referenceand com#osition of #anels- *tandardterms of reference (ill a##ly unlessthe #arties agree to s#ecial terms(ithin H& days of the #anelsestablishment- And (here the #arties

do not agree on the com#osition of the#anel (ithin the same H& days, thiscan be decided by the .irector28eneral- )anels normally consist of three #ersons of a##ro#riatebacground and e'#erience fromcountries not #arty to the dis#ute- The*ecretariat (ill maintain a list of e'#erts satisfying the criteria-

)anel #rocedures are set out in detailin the .*U- It is en/isaged that a #anel(ill normally com#lete its (or (ithinsi' months or, in cases of urgency,(ithin three months- )anel re#ortsmay be considered by the .*: forado#tion H& days after they are issuedto Members- 4ithin & days of theirissuance, they (ill be ado#ted, unlessthe .*: decides by consensus not toado#t the re#ort or one of the #artiesnoti0es the .*: of its intention toa##eal-

The conce#t of a##ellate re/ie( is anim#ortant ne( feature of the .*U- AnA##ellate :ody (ill be established,com#osed of se/en members, three of (hom (ill ser/e on any one case- Ana##eal (ill be limited to issues of la(co/ered in the #anel re#ort and legalinter#retations de/elo#ed by the#anel- A##ellate #roceedings shall note'ceed & days from the date a #artyformally noti0es its decision to a##eal-

The resulting re#ort shall be ado#tedby the .*: and unconditionallyacce#ted by the #arties (ithin J& daysfollo(ing its issuance to Members,unless the .*: decides by consensusagainst its ado#tion-

5nce the #anel re#ort or the A##ellate:ody re#ort is ado#ted, the #arty



concerned (ill ha/e to notify itsintentions (ith res#ect toim#lementation of ado#tedrecommendations- If it is im#racticableto com#ly immediately, the #artyconcerned shall be gi/en a reasonable

#eriod of time, the latter to be decidedeither by agreement of the #arties anda##ro/al by the .*: (ithin %" days of ado#tion of the re#ort or througharbitration (ithin $& days of ado#tion-In any e/ent, the .*: (ill ee# theim#lementation under regularsur/eillance until the issue is resol/ed-

Further #ro/isions set out rules forcom#ensation or the sus#ension of concessions in the e/ent of non2im#lementation- 4ithin a s#eci0edtime2frame, #arties can enter intonegotiations to agree on mutuallyacce#table com#ensation- 4here thishas not been agreed, a #arty to thedis#ute may re?uest authori3ation of the .*: to sus#end concessions orother obligations to the other #artyconcerned- The .*: (ill grant suchauthori3ation (ithin J& days of thee'#iry of the agreed time2frame forim#lementation- .isagreements o/erthe #ro#osed le/el of sus#ension maybe referred to arbitration- In #rinci#le,concessions should be sus#ended inthe same sector as that in issue in the#anel case- If this is not #racticable ore1ecti/e, the sus#ension can be madein a di1erent sector of the sameagreement- In turn, if this is note1ecti/e or #racticable and if thecircumstances are serious enough, thesus#ension of concessions may bemade under another agreement-

5ne of the central #ro/isions of the.*U reaKrms that Members shall notthemsel/es mae determinations of /iolations or sus#end concessions, butshall mae use of the dis#utesettlement rules and #rocedures of the.*U-

The .*U contains a number of #ro/isions taing into account thes#eci0c interests of the de/elo#ingand the least2de/elo#ed countries- Italso #ro/ides some s#ecial rules forthe resolution of dis#utes (hich do not

in/ol/e a /iolation of obligations undera co/ered agreement but (here aMember belie/es ne/ertheless thatbene0ts are being nulli0ed orim#aired- *#ecial decisions to beado#ted by Ministers in !$$% foreseethat the Montreal .is#ute *ettlementRules (hich (ould other(ise ha/ee'#ired at the time of the A#ril !$$%meeting are e'tended until the entryinto force of the 4T5- Anotherdecision foresees that the ne( rules

and #rocedures (ill be re/ie(ed (ithinfour years after the entry into force of the 4T5-

Trade !olic' Revie+ Mechanism

An agreement con0rms the Trade)olicy Re/ie( Mechanism, introducedat the time of the Mid2term Re/ie(,and encourages greater trans#arency

in national trade #olicy2maing- Afurther Ministerial decision reforms thenoti0cation re?uirements and#rocedures generally-

*ecision on achieving greatercoherence in glo%al economicpolic'-making

This (ill set out conce#ts and#ro#osals (ith res#ect to achie/ing

greater coherence in global economic#olicy2maing- Among other things,the te't notes that greater e'changerate stability based on more orderlyunderlying economic and 0nancialconditions should contribute to “thee'#ansion of trade, sustainable gro(thand de/elo#ment, and the timelycorrection of e'ternal imbalances”- It



recogni3es that (hile diKculties(hose origins lie outside the trade0eld cannot be redressed throughmeasures taen in the trade 0eldalone, there are ne/erthelessinterlinages bet(een the di1erent

as#ects of economic #olicy- Therefore,4T5 is called u#on to de/elo# itscoo#eration (ith the internationalorgani3ations res#onsible formonetary and 0nancial matters- In#articular, the .irector28eneral of 4T5 is called u#on to re/ie(, (ith hiso##osite numbers in the 4orld :anand the International Monetary Fund,the im#lications of 4T5s futureres#onsibilities for its coo#eration (iththe :retton 4oods institutions-

&overnment !rocurement

The Final Act contains an agreementrelated to accession #rocedures to the8o/ernment )rocurement Agreement(hich is designed to facilitate themembershi# of de/elo#ing countries-It en/isages consultations bet(een the

e'isting members and a##licantgo/ernments- These (ould be follo(edby the establishment of accession(oring #arties to e'amine the o1ersmade by a##licant countries 6in other(ords, the #ublic entities (hose#rocurement (ill be o#ened u# tointernational com#etition7 as (ell asthe e'#ort o##ortunities for thea##licant country in the marets of e'isting signatories-

This agreement should be

distinguished from the ne( Agreement

on 8o/ernment )rocurement-

summary two agreements

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