|
I. Paragraph A back to top
A. Text of Paragraph A
Members hereby agree as follows:
A. Objectives
(i) The purpose of the Trade Policy Review
Mechanism (“TPRM”) is to contribute to improved adherence by all
Members to rules, disciplines and commitments made under the
Multilateral Trade Agreements and, where applicable, the Plurilateral
Trade Agreements, and hence to the smoother functioning of the
multilateral trading system, by achieving greater transparency in, and
understanding of, the trade policies and practices of Members.
Accordingly, the review mechanism enables the regular collective
appreciation and evaluation of the full range of individual Members’
trade policies and practices and their impact on the functioning of the
multilateral trading system. It is not, however, intended to serve as a
basis for the enforcement of specific obligations under the Agreements
or for dispute settlement procedures, or to impose new policy
commitments on Members.
(ii) The assessment carried out under the
review mechanism takes place, to the extent relevant, against the
background of the wider economic and developmental needs, policies and
objectives of the Member concerned, as well as of its external
environment. However, the function of the review mechanism is to examine
the impact of a Member’s trade policies and practices on the
multilateral trading system.
B. Interpretation and Application of Paragraph A
1. Mission of TPRM
1.
With respect to the mission of the
TPRM,
the TPRB, in its Report to the Third Ministerial Conference, stated:
“The TPRB reaffirmed the relevance of TPRM’s
mission as defined in Annex 3. The TPRM had been conceived as a policy
exercise and it was therefore not intended to serve as a basis for the
enforcement of specific WTO obligations or for dispute settlement
procedures, or to impose new policy commitments on Members. The
Mechanism should continue to focus on improved adherence by all Members
to rules, disciplines and commitments made under the Multilateral Trade
Agreements and, where applicable, the Plurilateral Trade Agreements, and
hence contribute to the smoother functioning of the multilateral trading
system, by achieving greater transparency in, and understanding of, the
trade policies and practices of Members. Accordingly, the Mechanism
enables the regular collective appreciation and evaluation of the full
range of individual Members’ trade policies and practices and their
impact on the functioning of the multilateral trading system. Reviews
under the Mechanism should continue to take place, to the extent
relevant, against the background of the wider economic and development
needs, policies and objectives of the Members concerned, as well as of
their external environment. Greater attention should be given to
transparency in government decision-making on trade policy matters, in
line with Paragraph B of Annex
3.”(1)
2. Reference to GATT practice
2.
With respect to GATT practice on this
subject-matter.
II. Paragraph B
back to top
A. Text of Paragraph B
B. Domestic transparency
Members recognize the inherent value of
domestic transparency of government decision-making on trade policy
matters for both Members’ economies and the multilateral trading
system, and agree to encourage and promote greater transparency within
their own systems, acknowledging that the implementation of domestic
transparency must be on a voluntary basis and take account of each
Member’s legal and political systems.
B. Interpretation and Application of Paragraph
B
3.
The
TPRB, in its Report to the Third
Ministerial Conference, found:
“The Mechanism had demonstrated that it had
a valuable public-good aspect, particularly in its contribution to
transparency. The Mechanism had also been a catalyst for Members to
reconsider their policies, had served as an input into policy
formulation and had helped identify technical assistance needs.”(2)
4.
The TPRB then concluded in the Report that
“[g]reater attention should be given to transparency in government
decision-making on trade policy matters, in line with Paragraph B of
Annex 3”.(3)
III. Paragraph C
back to top
A. Text of Paragraph C
C. Procedures for review
(i) The Trade Policy Review Body (referred to
herein as the “TPRB”) is hereby established to carry out trade
policy reviews.
(ii) The trade policies and practices of all
Members shall be subject to periodic review. The impact of individual
Members on the functioning of the multilateral trading system, defined
in terms of their share of world trade in a recent representative
period, will be the determining factor in deciding on the frequency of
reviews. The first four trading entities so identified (counting the
European Communities as one) shall be subject to review every two years.
The next 16 shall be reviewed every four years. Other Members shall be
reviewed every six years, except that a longer period may be fixed for
least-developed country Members. It is understood that the review of
entities having a common external policy covering more than one Member
shall cover all components of policy affecting trade including relevant
policies and practices of the individual Members. Exceptionally, in the
event of changes in a Member’s trade policies or practices that may
have a significant impact on its trading partners, the Member concerned
may be requested by the TPRB, after consultation, to bring forward its
next review.
(iii) Discussions in the meetings of the TPRB
shall be governed by the objectives set forth in paragraph
A. The focus
of these discussions shall be on the Member’s trade policies and
practices, which are the subject of the assessment under the review
mechanism.
(iv) The TPRB shall establish a basic plan for
the conduct of the reviews. It may also discuss and take note of update
reports from Members. The TPRB shall establish a programme of reviews
for each year in consultation with the Members directly concerned. In
consultation with the Member or Members under review, the Chairman may
choose discussants who, acting in their personal capacity, shall
introduce the discussions in the TPRB.
(v) The TPRB shall base its work on the
following documentation:
(a) a full report, referred to in
paragraph D,
supplied by the Member or Members under review;
(b) a report, to be drawn up by the
Secretariat on its own responsibility, based on the information
available to it and that provided by the Member or Members concerned.
The Secretariat should seek clarification from the Member or Members
concerned of their trade policies and practices.
(vi) The reports by the Member under review
and by the Secretariat, together with the minutes of the respective
meeting of the TPRB, shall be published promptly after the review.
(vii) These documents will be forwarded to the
Ministerial Conference, which shall take note of them.
B. Interpretation and Application of Paragraph
C
1. Subparagraph (i)
(a) Establishment of Trade Policy Review Body
5.
With respect to the composition of the TPRB,
see the Chapter on the WTO Agreement, Section
IV.B.4.
(b) Rules of procedure
6.
At its meeting of 6 June 1995, pursuant to
Article IV:4 of the WTO Agreement, the TPRB adopted the rules of
procedure for its meetings,(4) where the TPRB follows,
mutatis mutandis,
the rules of procedure for the General Council,(5) with certain
exceptions.
7.
The procedural improvements proposed by the
TPRB to the TPRM and the discussion of these proposals can be found in
two Notes by the Chairperson.(6)
(c) Overview of activities
(i) Reviews
8.
As of 31 December 2004, the TPRB has
conducted 197 reviews since its establishment in 1989.(7) The reviews have
covered 114 Members, counting the European Union as one Member.(8) In its
annual report for 2004, the TPRB stated:
“By the end of 2004, the TPRM will have
conducted 197 reviews since its formation (Annex
I). The reviews have
covered 114 of 148 Members, representing around 88% of the share of
world trade. The trade policies and practices of four Members will have
been reviewed for the first time during 2004.(9) The increased importance
given to the reviews of least developed countries (LDCs) has led to 20
such reviews since 1998.(10)”(11)
(ii) Reporting
9.
The TPRB issues annual reports covering its
annual assessment of the TPRM and the extent to which it fulfils its
objectives as set out in the WTO Agreement.(12)
2. Subparagraph (ii)
(a) Timing and frequency of review
10.
Paragraph 2 of the rules of procedure for
TPRB meetings provides as follows:
“The cycle of reviews provided for in
Paragraph C (ii) of the Agreement on the Trade Policy Review Mechanism (TPRM)
shall be applied with a general flexibility of up to six months, if and
as may be necessary. Schedules of subsequent reviews shall be
established counting from the date of the previous review meeting.
Members should adhere strictly to the timetables for the preparation of
reviews, once agreed.”(13)
11.
The
TPRB, in its Report to the Third
Ministerial Conference, observed:
“The TPRB considered that the current
frequency of reviews provided a balance amongst numerous competing
considerations, including TPRM objectives, particularly the smoother
functioning of the multilateral trading system, the need to maintain a
realistic workload, and the benefits of reviewing all Members soon.”(14)
12.
Also in the Report, the TPRB concluded
that “[a]ll Members, including LDCs, should be reviewed at least once
as soon as possible”.(15)
(b) “the review of entities having a common
external policy”
13.
With respect to the reviews of regional
entities and “grouped” reviews, the Note by the Chairperson dated 13
December 1995 states:
“I believe it should be stressed that
individual reviews must remain the basis of the TPRM. There is room for
consideration of grouping of reviews, where possible; however, at this
stage there is no support for reviews of regional entities other than
the EU.”(16)
14.
Also, the Note by the Chairperson
submitted to the TPRB meeting of 11-12 June 1996 states:
“There is caution about the idea of ‘grouping’
countries for review, since criteria for such groupings would be
difficult to develop and the benefits are not self-evident. However,
where smaller member States might themselves volunteer to be reviewed as
a group, such requests would be sympathetically considered.”(17)
15.
Further, the TPRB, in its Report to the
Third Ministerial Conference, stated:
“Efforts to maximize efficiency might
include: (i) a more considered use of grouped reviews ….”(18)
16.
The TPRB has conducted reviews of the
European Communities and its members. Also, the TPRB has conducted to
date the group review of the WTO Members of (i) the South African
Customs Union (“SACU”)(19) and (ii) the Organisation of Eastern
Caribbean States (“OECS”).(20)
3. Subparagraph (iii)
17.
On TPRB meetings, the TPRB, in its Report
to the Third Ministerial Conference, stated:
“The TPRB judged two half-days as an
appropriate time-span for a TPRB review, and a day-in-between as
desirable. More interactive discussion was encouraged, as was greater
participation in reviews of smaller Members, if possible at a rank
reflecting the high-level representation often sent by Members under
review. Reviews could highlight changes since the previous review.”(21)
4. Subparagraph (v)
(a) Documentation
18.
On the issue of documentation, the TPRB,
in its Report to the Third Ministerial Conference, stated:
“The TPRB felt it essential to meet the
agreed four weeks lead time for document distribution in all WTO
official languages, as active participation in reviews depended on the
timely availability of documents. The TPRB favoured flexibility on the
lead time to submit written questions, as well as on the role and number
of discussants. Current practice concerning minutes of meetings was seen
as appropriate, as was the inclusion of written questions and answers in
minutes. Members were encouraged to provide written answers whenever
possible during the TPRB meetings. Questions left unanswered during the
review should be answered in writing, with responses made available to
the Membership; on this there should be a regular follow-up by the WTO
Secretariat.”(22)
(i) Government reports
19.
With respect to reports by Members, see
paragraphs 23-28 below.
(ii) Secretariat reports
20.
On the Secretariat reports, the TPRB, in
its Report to the Third Ministerial Conference, stated:
“The Secretariat should retain its capacity
to prepare autonomous, in-depth reports that allowed the TPRB to arrive
at an independent, fully informed evaluation of a Member’s trade
policies and practices. The present structure and coverage of
Secretariat reports was generally satisfactory; care should continue to
be taken that the reports achieve an appropriate balance between the
traditional and relatively new areas of the WTO. Reports should be WTO-relevant,
comprehensive and self-contained. The TPRB saw scope for making the
Summary Observations of the Secretariat report more readable and for
presenting in relevant parts of the report subsequent developments on
issues raised at the previous review.”(23)
(iii) Derestriction of reports by the
Secretariat and the Member under review
21.
The Reports by the Secretariat and the
Member under review are subject to restricted circulation and press
embargo until the end of the first session of the review meeting of the
Trade Policy Review Body.
5. Subparagraph (vi)
22.
On the dissemination of reviews, the TPRB,
in its Report to the Third Ministerial Conference, stated:
“The TPRB considered present dissemination
practices as satisfactory. Members noted the value of building awareness
within the wider public of the work of the TPRB. Taking existing
publication arrangements and budgetary implications into account, the
fullest possible dissemination of reviews was encouraged, particularly
through the Internet.”(24)
IV. Paragraph D
back to top
A. Text of Paragraph D
D. Reporting
In order to achieve the fullest possible
degree of transparency, each Member shall report regularly to the TPRB.
Full reports shall describe the trade policies and practices pursued by
the Member or Members concerned, based on an agreed format to be decided
upon by the TPRB. This format shall initially be based on the Outline
Format for Country Reports established by the Decision of 19 July 1989 (BISD
36S/406-409), amended as necessary to extend the coverage of reports to
all aspects of trade policies covered by the Multilateral Trade
Agreements in Annex 1 and, where applicable, the Plurilateral Trade
Agreements. This format may be revised by the TPRB in the light of
experience. Between reviews, Members shall provide brief reports when
there are any significant changes in their trade policies; an annual
update of statistical information will be provided according to the
agreed format. Particular account shall be taken of difficulties
presented to least-developed country Members in compiling their reports.
The Secretariat shall make available technical assistance on request to
developing country Members, and in particular to the least-developed
country Members. Information contained in reports should to the greatest
extent possible be coordinated with notifications made under provisions
of the Multilateral Trade Agreements and, where applicable, the
Plurilateral Trade Agreements.
B. Interpretation and Application of Paragraph D
1. Government reports
(a) Format
23.
With respect to the Decision of 19 July
1989,(25).
24.
On this topic, the TPRB, in its Report to
the Third Ministerial Conference, stated:
“The TPRB saw the Secretariat and Government
reports as complementary. Governments were free to define the structure
and coverage of their own reports, but were encouraged to keep them
short, WTO-relevant and forward-looking, highlighting recent trade
policy development and future policy directions and their impact on
trade.”(26)
25.
Further, a decision of the Contracting
Parties to GATT 1947, adopted at the Council meeting of 10 May 1994,
states:
“[I]n order to avoid duplication of the
material contained in the Secretariat report, and to lighten the burden
of delegations, Government reports shall be in the form of policy
statements.”(27)
(b) Timing
26.
The rules of procedure for the TPRB
meetings state:
“Documentation relating to each review
meeting shall be circulated in all working languages not less than four
weeks in advance of the relevant meetings.”(28)
27.
Also, the TPRB, in its Report to the Third
Ministerial Conference, stated:
“The TPRB felt it essential to meet the
agreed four weeks lead time for document distribution in all WTO
official languages, as active participation in reviews depended on the
timely availability of documents. The TPRB favoured flexibility on the
lead time to submit written questions, as well as on the role and number
of discussants.”(29)
28.
In practice, Members are accordingly
requested to submit their government reports to the WTO at least eight
weeks before the TPRB meeting for their review.(30)
V. Paragraph E back to top
A. Text of Paragraph E
E. Relationship with the balance-of-payments
provisions of GATT 1994 and GATS
Members recognize the need to minimize the
burden for governments also subject to full consultations under the
balance-of-payments provisions of GATT 1994 or GATS. To this end, the
Chairman of the TPRB shall, in consultation with the Member or Members
concerned, and with the Chairman of the Committee on Balance-of-Payments
Restrictions, devise administrative arrangements that harmonize the
normal rhythm of the trade policy reviews with the timetable for
balance-of-payments consultations but do not postpone the trade policy
review by more than 12 months.
B. Interpretation and Application of Paragraph E
No jurisprudence or decision of a competent
WTO body.
VI. Paragraph F
back to top
A. Text of Paragraph F
F. Appraisal of the Mechanism
The TPRB shall undertake an appraisal of the
operation of the TPRM not more than five years after the entry into
force of the Agreement Establishing the WTO. The results of the
appraisal will be presented to the Ministerial Conference. It may
subsequently undertake appraisals of the TPRM at intervals to be
determined by it or as requested by the Ministerial Conference.
B. Interpretation and Application of Paragraph F
29.
At its meeting of 27 January 1999, the
TPRB agreed on a procedure to appraise the operation of the TPRM.(31) On 5
October 1999, the TPRB adopted a report to the Third Ministerial
Conference concerning the results of its first appraisal.(32) With respect
to the contents of this report, see paragraphs 1, 3,
4, 11, 12, 15,
17, 18, 20, 22,
27 and 30 in this Chapter.
30.
With respect to a further appraisal of the
operation of the TPRM, the TPRB’s report to the Third Ministerial
Conference states:
“The TPRB should undertake a further
appraisal of the operation of the TPRM not more than five years after
the conclusion of the Third WTO Ministerial or as requested by a
Ministerial Conference.”(33)
VII. Paragraph G
back to top
A. Text of Paragraph G
G. Overview of Developments in the
International Trading Environment
An annual overview of developments in the
international trading environment which are having an impact on the
multilateral trading system shall also be undertaken by the TPRB. The
overview is to be assisted by an annual report by the Director-General
setting out major activities of the WTO and highlighting significant
policy issues affecting the trading system.
B. Interpretation and Application of Paragraph G
31.
Annual reports by the Director-General are
submitted to the TPRB in accordance with Paragraph G.(34)
Footnotes:
1. WT/MIN(99)/2, para. 3. See
para. 29 of this Chapter. back to text
2. WT/MIN(99)/2,
para. 4. See para. 29 of this Chapter. back to text
3. WT/MIN(99)/2, section VIII, fourth bullet
point. See para. 29 of this Chapter. back to text
4. The text of the adopted rules of procedure
can be found in WT/TPR/6. back to text
5. WT/L/28. back to text
6. The text of the notes can be found in WT/TPR/13
and WT/TPR/20. The latter note was submitted to the TPRB meeting of 11
and 12 July 1996. WT/TPR/21, para. 2. back to text
7. WT/TPR/154, para. 4 and Annex I. back to text
8. WT/TPR/M/1-141. back to text
9. (footnote original) These are Belize, Gambia,
Rwanda, and Suriname. back to text
10. (footnote original) The least developed
countries reviewed since the establishment of the Mechanism are:
Bangladesh (twice), Benin (twice), Burkina Faso (twice), Burundi,
Gambia, Guinea, Haiti, Lesotho (twice), Madagascar, Malawi, Maldives,
Mali (twice), Mauritania, Mozambique, Niger, Rwanda, Senegal (twice),
the Solomon Islands, Tanzania, Togo, Uganda (twice), and Zambia (twice).
back to text
11. WT/TPR/154. back to text
12. The annual reports are numbered WT/TPR/27
(1996), WT/TPR/41 (1997), WT/TPR/59 (1998), WT/TPR/69 (1999) and WT/TPR/86 (2000). back to text
13. WT/TPR/6, para. 3. back to text
14. WT/MIN(96)/2, para. 9. See
para. 29 of this Chapter. On this matter, see also WT/TPR/13, section (i) and
WT/TPR/20,
para. 10 and para. 7 of this Chapter.
back to text
15. WT/MIN(96)/2,
section VIII, second bullet
point. See para. 29 of this Chapter. back to text
16. WT/TPR/13, para. 11. See
para. 7 of this Chapter. The Note, however, states that “[t]he general feeling was
that national trade policy reviews should not be confused with analyses
of regional agreements under Article XXIV of GATT 1994 and
Article V of
GATS”. WT/TPR/13, para. 9. back to text
17. WT/TPR/20, para. 11. See
para. 7 of this Chapter. back to text
18. WT/MIN(99)/2, para. 15. See
para. 29 of this Chapter. back to text
19. WT/TPR/M/34-38. The WTO Members of the SACU
are: South Africa, Botswana, Lesotho, Namibia and Swaziland. back to text
20. WT/TPR/M/85. The WTO Members of the OECS
are: Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, St
Lucia and St Vincent and the Grenadines. back to text
21. WT/MIN(99)/2, para. 11. See
para. 29 of this Chapter. back to text
22. WT/MIN(99)/2, para. 12. See
para. 29 of this Chapter. back to text
23. WT/MIN(99)/2, para. 8. See
para. 29 of this Chapter. See also WT/TPR/13, section (iii). In this regard, see
para. 7
of this Chapter. back to text
24. WT/MIN(99)/2, para. 13. See
para. 29 of this Chapter. back to text
25. L/6552. back to text
26. WT/MIN(99)/2, para. 7. See
para. 29 of this Chapter. back to text
27. L/7458. back to text
28. WT/TPR/6, para. 10. See
para. 6 of this Chapter. back to text
29. WT/MIN(99)/2, para. 12. See
para. 29 of this Chapter. back to text
30. See also the Decision adopted by the GATT
Council at its meeting 12 April 1989 to establish the Trade Policy
Review Mechanism, L/6490, para. B(i). back to text
31. WT/TPR/69, para. 7. back to text
32. WT/TPR/69, para. 7. The text of the adopted
report can be found in WT/MIN(99)/2. back to text
33. WT/MIN(99)/2, section VIII, last bullet
point. See para. 29 of this Chapter. back to text
34. The reports are numbered WT/TPR/OV/-.
back to text
|
