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WTO ANALYTICAL INDEX: MARRAKESH AGREEMENT

Marrakesh Agreement Establishing the World Trade Organization

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The texts reproduced here do not have the legal standing of the original documents which are entrusted and kept at the WTO Secretariat in Geneva.

> Preamble
> Article I
> Article II
> Article III
> Article IV
> Article V
> Article VI
> Article VII
> Article VIII
> Article IX
> Article X
> Article XI
> Article XII
> Article XIII
> Article XIV
> Article XV
> Article XVI
> Explanatory notes
> Declaration on the contribution of the World Trade Organization to achieving greater coherence in global economic policy-making
> Declaration on the relationship of the World Trade Organization with the International Monetary Fund
> Decision on the acceptance of and accession to the agreement establishing the World Trade Organization
> Decision on measures in favour of least-developed countries
> Understanding in respect of waivers of obligations under the General Agreement on Tariffs and Trade 1994
> Accessions under Article XXXIII
> WTO Membership
> WTO Observers
> Doha Texts
> The July Package
> General Interpretative Note to Annex 1A

 

> Analytical Index main page


I. Preamble    back to top

A. Text of the Preamble

          The Parties to this Agreement,

 

          Recognizing that their relations in the field of trade and economic endeavour should be conducted with a view to raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand, and expanding the production of and trade in goods and services, while allowing for the optimal use of the world’s resources in accordance with the objective of sustainable development, seeking both to protect and preserve the environment and to enhance the means for doing so in a manner consistent with their respective needs and concerns at different levels of economic development.

 

          Recognizing further that there is a need for positive efforts designed to ensure that developing countries, and especially the least developed among them, secure a share in the growth of international trade commensurate with the needs of their economic development,

 

          Being desirous of contributing to these objectives by entering into reciprocal and mutually advantageous arrangements directed to the substantial reduction of tariffs and other barriers to trade and to the eliminations of discriminatory treatment in international trade relations,

 

          Resolved, therefore, to develop an integrated, more viable and durable multilateral trading system encompassing the General Agreement on Tariffs and Trade, the results of past liberalization efforts, and all of the results of the Uruguay Round of Multilateral Trade Negotiations,

 

          Determined to preserve the basic principles and to further the objectives underlying this multilateral trading system,

 

          Agree as follows:

 
B. Interpretation and Application of the Preamble

1. Legal relevance of the Preamble

(a) Environmental context

1.       The Appellate Body on US — Gasoline emphasized the importance of the Preamble of the WTO Agreement in the context of environmental issues:

“Indeed, in the preamble to the WTO Agreement and in the Decision on Trade and Environment, there is specific acknowledgement to be found about the importance of coordinating policies on trade and the environment. WTO Members have a large measure of autonomy to determine their own policies on the environment (including its relationship with trade), their environmental objectives and the environmental legislation they enact and implement. So far as concerns the WTO, that autonomy is circumscribed only by the need to respect the requirements of the General Agreement and the other covered agreements.”(1)

 

WTO structure

 

All WTO members may participate in all councils, committees, etc. except Appellate Body, Dispute Settlement panels, Textiles Monitoring Body, and plurilateral committees.

click for details on this body
  

Key

Reporting to General Council (or a subsidiary)
Reporting to Dispute Settlement Body
  Plurilateral committees inform the General Council or Goods Council of their activities, although these agreements are not signed by all WTO members
Trade Negotiations Committee reports to General Council

(b) Integrated WTO system

2.       The Appellate Body Report on Brazil — Desiccated Coconut invoked the Preamble in the context of the integrated WTO system that replaced the old GATT 1947:

“The authors of the new WTO regime intended to put an end to the fragmentation that had characterized the previous system. This can be seen from the preamble to the WTO Agreement which states, in pertinent part:

 

Resolved, therefore, to develop an integrated, more viable and durable multilateral trading system encompassing the General Agreement on Tariffs and Trade, the results of past trade liberalization efforts, and all of the results of the Uruguay Round of Multilateral Trade Negotiations.”(2)

(c) Interpretation of Article XX(g) of the GATT 1994

3.       For the purpose of interpreting the meaning of “exhaustible natural resources” in paragraph (g) of Article XX of the GATT 1994 in US — Shrimp, the Appellate Body referred to the Preamble:

“The words of Article XX(g), ‘exhaustible natural resources’, were actually crafted more than 50 years ago. They must be read by a treaty interpreter in the light of contemporary concerns of the community of nations about the protection and conservation of the environment. While Article XX was not modified in the Uruguay Round, the preamble attached to the WTO Agreement shows that the signatories to that Agreement were, in 1994, fully aware of the importance and legitimacy of environmental protection as a goal of national and international policy. The preamble of the WTO Agreement — which informs not only the GATT 1994, but also the other covered agreements — explicitly acknowledges ‘the objective of sustainable development’:

 

‘The Parties to this Agreement,

 

Recognizing that their relations in the field of trade and economic endeavour should be conducted with a view to raising standards of living, ensuring full employment and a large and steadily growing volume of real income and effective demand, and expanding the production of and trade in goods and services, while allowing for the optimal use of the world’s resources in accordance with the objective of sustainable development, seeking both to protect and preserve the environment and to enhance the means for doing so in a manner consistent with their respective needs and concerns at different levels of economic development, …’ (emphasis added)

 

From the perspective embodied in the preamble of the WTO Agreement, we note that the generic term ‘natural resources’ in Article XX(g) is not ‘static’ in its content or reference but is rather ‘by definition, evolutionary’. …

 

Given the recent acknowledgement by the international community of the importance of concerted bilateral or multilateral action to protect living natural resources, and recalling the explicit recognition by WTO Members of the objective of sustainable development in the preamble of the WTO Agreement, we believe it is too late in the day to suppose that Article XX(g) of the GATT 1994 may be read as referring only to the conservation of exhaustible mineral or other non-living natural resources.”(3)

 

4.       On this topic, the Appellate Body on US Shrimp further stated:

“At the end of the Uruguay Round, negotiators fashioned an appropriate preamble for the new WTO Agreement, which strengthened the multilateral trading system by establishing an international organization, inter alia, to facilitate the implementation, administration and operation, and to further the objectives, of that Agreement and the other agreements resulting from that Round. In recognition of the importance of continuity with the previous GATT system, negotiators used the preamble of the GATT 1947 as the template for the preamble of the new WTO Agreement. Those negotiators evidently believed, however, that the objective of ‘full use of the resources of the world’ set forth in the preamble of the GATT 1947 was no longer appropriate to the world trading system of the 1990’s. As a result, they decided to qualify the original objectives of the GATT 1947 with the following words:

 

… while allowing for the optimal use of the world’s resources in accordance with the objective of sustainable development, seeking both to protect and preserve the environment and to enhance the means for doing so in a manner consistent with their respective needs and concerns at different levels of economic development, …’

 

We note once more that this language demonstrates a recognition by WTO negotiators that optimal use of the world’s resources should be made in accordance with the objective of sustainable development. As this preambular language reflects the intentions of negotiators of the WTO Agreement, we believe it must add colour, texture and shading to our interpretation of the agreements annexed to the WTO Agreement, in this case, the GATT 1994. We have already observed that Article XX(g) of the GATT 1994 is appropriately read with the perspective embodied in the above preamble …’.

 

It is proper for us to take into account, as part of the context of the chapeau, the specific language of the preamble to the WTO Agreement, which, we have said, gives colour, texture and shading to the rights and obligations of Members under the WTO Agreement, generally, and under the GATT 1994, in particular.”(4)

(d) Special needs of developing countries

5.       The Panel on India Quantitative Restrictions invoked the Preamble in the context of recognising the need to address the concerns of developing countries:

“At the outset, we recall that the Preamble to the WTO Agreement recognizes both (i) the desirability of expanding international trade in goods and services and (ii) the need for positive efforts designed to ensure that developing countries secure a share in international trade commensurate with the needs of their economic development. In implementing these goals, WTO rules promote trade liberalization, but recognize the need for specific exceptions from the general rules to address special concerns, including those of developing countries.”(5)

6.       The Panel on Brazil Aircraft (Article 21.5 Canada) referred to the Preamble in reference to Article 27 of the SCM Agreement and the interests of developing countries:

“The preamble to the WTO Agreement recognises

 

‘that there is need for positive efforts designed to ensure that developing countries, and especially the least-developed among them, secure a share in the growth in international trade commensurate with the needs of their economic development.’

 

This overarching concern of the WTO Agreement finds ample reflection in the SCM Agreement. Article 27 of that Agreement recognizes that ‘subsidies may play an important role in economic development programmes of developing country Members’ and provides substantial special and differential treatment for developing countries, including in respect of export subsidies.”(6)

2. Relationship with other WTO Agreements

(a) GATT 1994

(i) Article XX(g)

7.       See paragraphs 34 above.

(ii) Article XXIV

8.       The Panel on Turkey Textiles also referred to the Preamble in the context of the discussion regarding GATT Article XXIV stating that it does not constitute a shield from other GATT/WTO prohibitions or the introduction of measures considered to be ipso facto incompatible with GATT/WTO:

 

“At the conclusion of the Uruguay Round Members reiterated the same general objective and principles in the GATT 1994 Understanding on Article XXIV:

 

Reaffirming that the purpose of such agreements should be to facilitate trade between the constituent territories and not to raise barriers to the trade of other Members with such territories; and that in their formation or enlargement the parties to them should to the greatest possible extent avoid creating adverse effects on the trade of other Members;’

 

and in the Preamble to the WTO Agreement:

 

‘Being desirous of contributing to these objectives by entering into reciprocal and mutually advantageous arrangements directed to the substantial reduction of tariffs and other barriers to trade and to the elimination of discriminatory treatment in international commerce …’ (emphasis added)

 

We also recall the Singapore Ministerial Declaration:

 

‘7. … We reaffirm the primacy of the multilateral trading system, which includes a framework for the development of regional trade agreements, and we renew our commitment to ensure that regional trade agreements are complementary to it and consistent with its rules’

 

From the above cited provisions, we draw two general conclusions for the present case. Firstly, the objectives of regional trade agreements and those of the GATT and the WTO have always been complementary, and therefore should be interpreted consistently with one another, with a view to increasing trade and not to raising barriers to trade, thereby arguing against an interpretation that would allow, on the occasion of the formation of a customs union, for the introduction of quantitative restrictions. Secondly, we read in these parallel objectives a recognition that the provisions of Article XXIV (together with those of the GATT 1994 Understanding on Article XXIV) do not constitute a shield from other GATT/WTO prohibitions, or a justification for the introduction of measures which are considered generally to be ipso facto incompatible with GATT/WTO. In our view the provisions of Article XXIV on regional trade agreements cannot be considered to exempt constituent members of a customs union from the primacy of the WTO rules.”(7)

(b) SCM Agreement

9.      See paragraph 6 above.

 

II. Article I    back to top

A. Text of Article I

Article I: Establishment of the Organization

The World Trade Organization (hereinafter referred to as “the WTO”) is hereby established.

 
B. Interpretation and Application of Article I

1. Article I

10.     The World Trade Organization (WTO) was established at the conclusion of the Uruguay Round of multilateral trade negotiations. The name “World Trade Organization” was established at the meeting of the Trade Negotiating Committee on 15 December 1993.(8)

11.     The World Trade Organization and the World Tourism Organization reached an agreement in order to avoid confusion with respect to the use of the acronym “WTO”. According to this agreement, the World Trade Organization will use a distinct logo and will avoid using the acronym in the context of tourism services. The agreement further provides for cooperation between the Secretariats of the two organizations on practical issues arising in this context.(9)

 

III. Article II    back to top

A. Text of Article II

Article II: Scope of the WTO

1.       The WTO shall provide the common institutional framework for the conduct of trade relations among its Members in matters related to the agreements and associated legal instruments included in the Annexes to this Agreement.

 

2.       The agreements and associated legal instruments included in Annexes 1, 2 and 3 (hereinafter referred to as “Multilateral Trade Agreements”) are integral parts of this Agreement, binding on all Members.

 

3.       The agreements and associated legal instruments included in Annex 4 (hereinafter referred to as “Plurilateral Trade Agreements”) are also part of this Agreement for those Members that have accepted them, and are binding on those Members. The Plurilateral Trade Agreements do not create either obligations or rights for Members that have not accepted them.

 

4.       The General Agreement on Tariffs and Trade 1994 as specified in Annex 1A (hereinafter referred to as “GATT 1994”) is legally distinct from the General Agreement on Tariffs and Trade, dated 30 October 1947, annexed to the Final Act Adopted at the Conclusion of the Second Session of the Preparatory Committee of the United Nations Conference on Trade and Employment, as subsequently rectified, amended or modified (hereinafter referred to as “GATT 1947”).

 
B. Interpretation and Application of Article II

1. Article II:2

(a) Single undertaking

12.     In Brazil Desiccated Coconut, the Appellate Body referred to Articles II:2 and II:4 and Annex 1A of the WTO Agreement, as well as the DSU to illustrate the “single undertaking” nature of the WTO Agreement(10): “[t]he single undertaking is further reflected in the provisions of the WTO Agreement dealing with original membership, accession, non-application of the Multilateral Trade Agreements between particular Members, acceptance of the WTO Agreement, and withdrawal from it.(11) Within this framework, all WTO Members are bound by all the rights and obligations in the WTO Agreement and its Annexes 1, 2 and 3.”(12)

13.     In Argentina Footwear (EC), the Appellate Body also referred to Articles II:2 and II:4 of the WTO Agreement as a basis for the following finding:

“The GATT 1994 and the Agreement on Safeguards are both Multilateral Agreements on Trade in Goods contained in Annex 1A of the WTO Agreement, and, as such, are both ‘integral parts’ of the same treaty, the WTO Agreement, that are ‘binding on all Members’.(13) Therefore, the provisions of Article XIX of the GATT 1994 and the provisions of the Agreement on Safeguards are all provisions of one treaty, the WTO Agreement. They entered into force as part of that treaty at the same time. They apply equally and are equally binding on all WTO Members. And, as these provisions relate to the same thing, namely the application by Members of safeguard measures, the Panel was correct in saying that ‘Article XIX of GATT and the Safeguards Agreement must a fortiori be read as representing an inseparable package of rights and disciplines which have to be considered in conjunction.’ Yet a treaty interpreter must read all applicable provisions of a treaty in a way that gives meaning to all of them, harmoniously.(14) And, an appropriate reading of this ‘inseparable package of rights and disciplines’ must, accordingly, be one that gives meaning to all the relevant provisions of these two equally binding agreements.”(15)

2. Article II:4

14.     The Appellate Body on Brazil — Desiccated Coconut, see paragraph 2 above, and Argentina Footwear (EC), see paragraph 13 above, referred to this Article in their rulings.

 

IV. Article III    back to top

A. Text of Article III

Article III: Functions of the WTO

1.       The WTO shall facilitate the implementation, administration and operation, and further the objectives, of this Agreement and of the Multilateral Trade Agreements, and shall also provide the framework for the implementation, administration and operation of the Plurilateral Trade Agreements.

 

2.       The WTO shall provide the forum for negotiations among its Members concerning their multilateral trade relations in matters dealt with under the agreements in the Annexes to this Agreement. The WTO may also provide a forum for further negotiations among its Members concerning their multilateral trade relations, and a framework for the implementation of the results of such negotiations, as may be decided by the Ministerial Conference.

 

3.       The WTO shall administer the Understanding on Rules and Procedures Governing the Settlement of Disputes (hereinafter referred to as the “Dispute Settlement Understanding” or “DSU”) in Annex 2 to this Agreement.

 

4.       The WTO shall administer the Trade Policy Review Mechanism (hereinafter referred to as the “TPRM”) provided for in Annex 3 to this Agreement.

 

5.       With a view to achieving greater coherence in global economic policy-making, the WTO shall cooperate, as appropriate, with the International Monetary Fund and with the International Bank for Reconstruction and Development and its affiliated agencies.

 

 
B. Interpretation and Application of Article III

1. Article III:1

(a) “implementation, administration and operation … of the Multilateral Trade Agreements”

15.     As regards facilitating the implementation, administration and operation of the Multilateral Trade Agreements, see the relevant Chapters on the relevant WTO agreements.

2. Article III:2

(a) “forum for negotiations among its Members”

(i) 1996 Singapore Ministerial Conference

16.     At the 1996 Singapore Ministerial Conference (see Section V.B.1 below), Ministers adopted the recommendations below as part of their declaration:

“We, the Ministers, have met in Singapore … as called for in Article IV of the Agreement Establishing the World Trade Organization, to further strengthen the WTO as a forum for negotiation, the continuing liberalization of trade within a rule-based system, and the multilateral review and assessment of trade policies, and in particular to:

 

  • assess the implementation of our commitments under the WTO Agreements and decisions;
     
  • review the ongoing negotiations and Work Programme;
     
  • examine developments in world trade; and
     
  • address the challenges of an evolving world economy.

 

… Bearing in mind that an important aspect of WTO activities is a continuous overseeing of the implementation of various agreements, a periodic examination and updating of the WTO Work Programme is a key to enable the WTO to fulfil its objectives. In this context, we endorse the reports of the various WTO bodies. A major share of the Work Programme stems from the WTO Agreement and decisions adopted at Marrakesh. As part of these Agreements and decisions we agreed to a number of provisions calling for future negotiations on Agriculture, Services and aspects of TRIPS, or reviews and other work on Anti-Dumping, Customs Valuation, Dispute Settlement Understanding, Import Licensing, Preshipment Inspection, Rules of Origin, Sanitary and Phyto-Sanitary Measures, Safeguards, Subsidies and Countervailing Measures, Technical Barriers to Trade, Textiles and Clothing, Trade Policy Review Mechanism, Trade-Related Aspects of Intellectual Property Rights and Trade-Related Investment Measures. We agree to a process of analysis and exchange of information, where provided for in the conclusions and recommendations of the relevant WTO bodies, on the Built-in Agenda issues, to allow Members to better understand the issues involved and identify their interests before undertaking the agreed negotiations and reviews. We agree that:

 

  • the time frames established in the Agreements will be respected in each case;
     
  • the work undertaken shall not prejudge the scope of future negotiations where such negotiations are called for; and
     
  • the work undertaken shall not prejudice the nature of the activity agreed upon (i.e. negotiation or review)”.(16)

(ii) 1998 Geneva Ministerial Conference

17.     At the 1998 Geneva Ministerial Conference (see Section V.B.1 below), Ministers adopted several recommendations to put before the General Council as a part of their declaration:

“We recall that the Marrakesh Agreement Establishing the World Trade Organization states that the WTO shall provide the forum for negotiations among its Members concerning their multilateral trade relations in matters dealt with under the agreements in the Annexes to the Agreement, and that it may also provide a forum for further negotiations among its Members concerning their multilateral trade relations, and a framework for the implementation of the results of such negotiations, as may be decided by the Ministerial Conference. In the light of paragraphs 18 above, we decide that a process will be established under the direction of the General Council to ensure full and faithful implementation of existing agreements, and to prepare for the Third Session of the Ministerial Conference. This process shall enable the General Council to submit recommendations regarding the WTO’s work programme, including further liberalization sufficiently broad-based to respond to the range of interests and concerns of all Members, within the WTO framework, that will enable us to take decisions at the Third Session of the Ministerial Conference. In this regard, the General Council will meet in special session in September 1998 and periodically thereafter to ensure full and timely completion of its work, fully respecting the principle of decision-making by consensus. The General Council’s work programme shall encompass the following:

 

(a)      recommendations concerning:

 

(i)      the issues, including those brought forward by Members, relating to implementation of existing agreements and decisions;

 

(ii)     the negotiations already mandated at Marrakesh, to ensure that such negotiations begin on schedule;

 

(iii)    future work already provided for under other existing agreements and decisions taken at Marrakesh;

 

(b)      recommendations concerning other possible future work on the basis of the work programme initiated at Singapore;

 

(c)      recommendations on the follow-up to the High-Level Meeting on Least-Developed Countries;

 

(d)      recommendations arising from consideration of other matters proposed and agreed to by Members concerning their multilateral trade relations.

 

The General Council will also submit to the Third Session of the Ministerial Conference, on the basis of consensus, recommendations for decision concerning the further organization and management of the work programme arising from the above, including the scope, structure and time-frames, that will ensure that the work programme is begun and concluded expeditiously.

 

The above work programme shall be aimed at achieving overall balance of interests of all Members.”(17)

(iii) Doha Ministerial Conference

18.     At the Doha Ministerial Conference (see Section V.B.1 below), Members adopted a decision to launch a new round of negotiations, known as the “Doha Round”.(18) As regards the declarations and decisions adopted at the Doha Ministerial Conference, see paragraph 38 below and Section XXVII below. The Doha Declaration provided general guidelines for the organization of the new Round.

19.     On 1 August 2004, the General Council adopted a decision known as the “July Package”, which, inter alia, amended the scope of the Doha negotiations. The text of the July Package can be found in Section XXVIII below.

3. Article III:3

(a) “Shall administer the Understanding on Rules and Procedures Governing the Settlement of Disputes”

20.     As regards the administration of the DSU, see Article 2 of the Chapter on the DSU. In addition, see the activities of the Special Session of the Dispute Settlement Body in Section XI.B.2 below.(19)

4. Article III:4

(a) “Shall administer the Trade Policy Review Mechanism”

21.     Regarding the administration of the TPRM, see Section III (paragraph C) of the Chapter on the TPRM.

5. Article III:5

(a) “The WTO shall cooperate … with the IMF and … World Bank”

(i) General

22.     At its meeting of 7, 8 and 13 November 1996, the General Council adopted the decision approving agreements with the IMF and the World Bank.(20)

23.     The agreement between the WTO and the IMF was signed on 9 December 1996.(21)

24.     The agreement between the WTO and the World Bank was signed on 28 April 1997.(22)

(ii) Observer status

25.     The IMF and the World Bank have observer status in the WTO as provided for in their respective agreements with the WTO. See also paragraphs 135137 below.

(iii) Cooperation agreements do not modify, add to or diminish rights and obligations of Members

26.     In Argentina Textiles and Apparel, the Appellate Body upheld the Panel’s finding “that there is nothing in the Agreement Between the IMF and the WTO, the Declaration on the Relationship of the WTO with the IMF or the Declaration on Coherence which justifies a conclusion that a Member’s commitments to the IMF shall prevail over its obligations under Article VIII of the GATT 1994.”(23) The Appellate Body explained:

“The 1994 Declaration on Coherence is a Ministerial decision that articulates the objective of promoting increased cooperation between the WTO and the IMF in order to encourage greater coherence in global economic policy-making. This objective is more explicitly recognized in the treaty language of the WTO Agreement in Article III:5, which states:

 

‘With a view to achieving greater coherence in global economic policy-making, the WTO shall cooperate, as appropriate, with the International Monetary Fund and with the International Bank for Reconstruction and Development and its affiliated agencies.’ (emphasis added)

 

In furtherance of the WTO’s mandate to ‘cooperate, as appropriate’ with the IMF, the Agreement Between the IMF and the WTO was concluded in 1996.(24) This Agreement provides for specific means of administrative cooperation between the two organizations. It provides for consultations and the exchange of information between the WTO Secretariat and the staff of the IMF in certain specified circumstances, and grants to each organization observer status in certain of the other’s meetings.(25)

 

The Agreement Between the IMF and the WTO, however, does not modify, add to or diminish the rights and obligations of Members under the WTO Agreement, nor does it modify individual States’ commitments to the IMF. It does not provide any substantive rules concerning the resolution of possible conflicts between obligations of a Member under the WTO Agreement and obligations under the Articles of Agreement of the IMF or any agreement with the IMF. However, paragraph 10 of the Agreement Between the IMF and the WTO contains a direction to the staff of the IMF and the WTO Secretariat to consult on ‘issues of possible inconsistency between measures under discussion’.

 

In the 1994 Declaration on the Relationship of the WTO with the IMF, Ministers reaffirmed that, unless otherwise provided for in the Final Act Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations, ‘the relationship of the WTO with the International Monetary Fund, with regard to the areas covered by the Multilateral Trade Agreements in Annex 1A of the WTO Agreement, will be based on the provisions that have governed the relationship of the CONTRACTING PARTIES to the GATT 1947 with the International Monetary Fund.’ We note that certain provisions of the GATT 1994, such as Articles XII, XIV, XV and XVIII, permit a WTO Member, in certain specified circumstances relating to exchange matters and/or balance of payments, to be excused from certain of its obligations under the GATT 1994. However, Article VIII contains no such exception or permission.”(26)

(iv) No requirement for WTO panels to consult with IMF

27.     In Argentina Textiles and Apparel, rejecting the claim that the Panel did not make “an objective assessment of the matter” as required under Article 11 of the DSU, by not acceding to the parties’ request to seek information from the IMF so as to obtain its opinion on certain issues, the Appellate Body stated that “[a]s in the WTO Agreement, there are no provisions in the Agreement Between the IMF and the WTO that require a panel to consult with the IMF in a case such as this.”(27) On this issue, see the Chapter on the DSU, Section XXIII.B.2.

28.     The Declaration on the Relationship of the WTO with the IMF is annexed to the WTO Agreement, see Section XX below.

(b) “with a view to achieving greater coherence in global economic policy-making”

(i) General

29.     The Managing Director of the IMF, the President of the World Bank and the Director-General of the WTO jointly issued a report on Coherence(28) on 21 October 1998, pursuant to paragraph 5 of the Geneva Ministerial Declaration.

30.     The General Council authorized the Chairman to hold special informal meetings regarding coherence issues, on 15 and 16 February 1999, pursuant to the request of either the delegations or the Director-General.(29) The General Council held additional meetings on 13 May 2003(30) and 22 October 2004(31) and discussed issues on coherence.

31.     For the text of the Declaration on the Contribution of the WTO to Achieving Greater Coherence in Global Economic Policymaking, see Section XIX below.

(ii) Annual reports

32.     Pursuant to paragraph 2 of the Declaration of the General Council on “Agreements between the WTO, the IMF and the World Bank”, the Director-General issues an annual report to Members on the activities carried out by the WTO under its cooperation agreements with these aforementioned institutions.(32)

 

Footnotes:

1. Appellate Body Report on US — Gasoline, p. 30. back to text
2. Appellate Body Report on Brazil — Desiccated Coconut, p. 17. back to text
3. Appellate Body Report on US — Shrimp, paras. 129–131. back to text
4. Appellate Body Report on US — Shrimp, paras. 152, 153 and 155. back to text
5. Panel Report on India — Quantitative Restrictions, para. 7.2. back to text
6. Panel Report on Brazil — Aircraft (Article 21.5 — Canada), para. 6.47, fn 49. back to text
7. Panel Report on Turkey — Textiles, paras. 9.161–9.163. back to text
8. GATT doc. MTN.TNC/40. back to text
9. GATT doc. MTN.TNC/W/146, p. 4. back to text
10. Appellate Body Report on Brazil — Desiccated Coconut, pp. 12–13. back to text
11. (footnote original) WTO Agreement, Articles XI, XII, XIII, XIV and XV, respectively. back to text
12. Appellate Body Report on Brazil — Desiccated Coconut, p. 12. back to text
13. (footnote original) WTO Agreement, Article II:2. back to text
14. (footnote original) We have recently confirmed this principle in our Report in Korea — Dairy, para. 81. See also Appellate Body Reports on US — Gasoline, p. 23; Japan — Alcoholic Beverages II, p. 12; and India — Patents (US), fn. 25. back to text
15. Appellate Body Report on Argentina — Footwear (EC), para. 81. back to text
16. WT/MIN(96)/DEC paras. 1 and 19. back to text
17. WT/MIN(98)/DEC/1, paras. 9–11. back to text
18. WT/MIN(01)/DEC/1 back to text
19. See WT/MIN(01)/DEC/1, para. 30; and para. 57 of this Chapter. back to text
20. WT/GC/M/16, section 7. The text of the decision to approve these Agreements is in WT/L/194. The WTO Director-General issued a report on the implementation of the cooperation agreements with the IMF and the World Bank on 13 November 1997. The text of the report is in WT/GC/W/68. back to text
21. The text of the Agreement with the International Monetary Fund is in Annex I to WT/L/195. back to text
22. The text of the Agreement with the World Bank is in Annex II to WT/L/195. back to text
23. Appellate Body Report on Argentina — Textiles and Apparel, para. 70. back to text
24. (footnote original) Done at Singapore, 9 December 1996. back to text
25. (footnote original) Excluding the DSB and dispute settlement panels, except where “matters of jurisdictional relevance to the Fund are to be considered”. The WTO may invite a member of the staff of the Fund to attend a meeting of DSB “when the WTO, after consultation between the WTO Secretariat and the staff of the Fund, finds that such a presence would be of particular common interest to both organizations.” Agreement Between the IMF and the WTO, para. 6. back to text
26. Appellate Body Report on Argentina — Textiles and Apparel, paras. 70–73. back to text
27. Appellate Body Report on Argentina — Textiles and Apparel, para. 85. back to text
28. The text of the report can be found in WT/GC/13. back to text
29. WT/GC/M/35, section 3. back to text
30. WT/GC/M/79. back to text
31. WT/GC/M/89. back to text
32. WT/TF/COh/S/36, 8 and 10. back to text

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