GATT Newsletter

No 100 July 1993

Peter Sutherland takes over

t a Special Session of the Contracting he new GATT Director-General, Mr. AParties in Geneva on 9 June, Mr. TER TPeter Sutherland, promised to "leave (Ireland) was appointed no stone unturned" in trying to bring the as the next Director-General of GATT. Uruguay Round negotiations to a bal­ Mr. Sutherland, whose appointment was anced conclusion before the end of the decided by consensus, took office on l year. He made this pledge after the Trade July 1993. He will serve for an initial Negotiations Committee, which oversees period of two years. the Round, elected him by acclamation on "The dedication and the ability of Mr. 5 July as TNC Chairman at officials level Sutherland as a national and international to succeed the former Director-General, public servant as well as in the private Mr. . sector will ensure that the helm of the Mr. Sutherland was elected Chairman GATT and the Uruguay Round will be in in his personal capacity. As Director- good hands," said Mr. Arthur Dunkel, the General, he already heads the Group of outgoing Director-General, in welcoming Negotiations on Goods. The TNC over­ the decision. sees negotiations in both trade in goods and trade in services. In a statement to the press, following Director-General Sutherland., The Chairman of the Contracting Par­ the decision on his appointment, Mr. and his predecessors: Sutherland said: ties, Ambassador B.K. Zutshi, who in­ itially chaired the meeting, noted that one principal criterion of GATT members in their search for a new Director-General The immediate priority is Sir Eric concluding the Round was finding a person who had the ability Wyndham- and the capacity to facilitate an early suc­ My appointment a's Director-General White, cess to the Round. "In Mr. Sutherland, we brings with it an extraordinary responsi­ 1948-68 have found that person," Ambassador bility and an enormous personal chal­ Zutshi said. lenge. In many ways the GATT system Referring to the G-7 Meeting, Mr. holds the key to the future world pros­ Sutherland said "the new days would be perity and a way out of the pain of unem­ of considerable importance to the conclu­ ployment which so many nations face sion of the Uruguay Round". But "what­ today. ever results from the Tokyo Summit, the Above all, it is a multilateral system Mr. Olivier function of concluding the Round is with looking after the interests of countries, Long, us." He added: "one of the defining mo­ large and small, developed and develo­ 1968-80 ments of the latter half of this century ping. None of the demands of my new job would be bringing the Uruguay Round to can be more important than safeguarding a successful conclusion -1 gladly take this every one of the varying interests repre­ responsibility, and I gladly share it with sented among GATT's 111 members. you." Clearly, the immediate priority must be The new Chairman cautioned that he to help the participants of the Uruguay- was "at best a facilitator - not a magician". Round secure a quick, comprehensive and "It would be impossible to organize deals far-reaching conclusion to their negotia­ Mr. Arthur if the deal-makers - that is, you, the gov­ tions. The meeting of the G7 in Tokyo will Dunkel, ernments - are not ready or willing; our be crucial - but we will need deeds, not 1980-93 partnership will have to be, therefore, a Continued on page 10 Continued on page 12 GATT FOCUS

June Council Russia applies for GATT membership Panel rules against EC members'restrictions on bananas

ussia's formal application to join the The former Soviet Union was origin­ the type of agreement described by the RGATT was hailed by many contract­ ally a member of a preparatory committee EEC in the Panel's proceedings, but ing parties, at the 16-17 June meeting of appointed in 1946 by the UN Economic only from an action of the Contracting the Council, as a contribution to the and Social Council to draft the charter of Parties under Article XXV (on joint universalization of the GATT and an in­ a . However, it action by the Contracting Parties). The dication of its relevance to reforming chose not to attend the meetings of the Panel recommended that the Contract­ countries. committee, whose members became the ing Parties request the EC to bring the Russia's Minister for External Econ­ founding contracting parties to the GATT preference into conformity with the omic Relations. Mr. Sergei Glaziev. told in 1948. In May 1990. the Council granted General Agreement unless, in accord­ the Council that the importance of GATT observer status to the former Soviet ance with the provisions of Article membership for his country w as shown by Union. In February 1992, the Council XXV. the EEC were authorized to the fact that President Boris Yeltsin had Chairman announced that the former maintain this preference. personally handed the accession request USSR's GATT observer status would be Costa Rica, speaking on behalf of the to the GATT Director-General, Mr. Art­ continued through the Russian Feder­ complainants, urged the immediate adop­ hur Dunkel. in Moscow on 11 June. Mr. ation. tion of the panel report, which it said Glaziev said the request was a logical part resulted from a sound and logical analysis of Russia's market-economy reforms, and EC member states' import of the import regimes in question. It said a necessary step in Russia's integration restrictions on bananas that compliance with the panel's recom­ into the world trading system. He said that mendations would demonstrate that the after several years of economic reforms. The panel that examined the complaint by GATT dispute-settlement system was a Russia had become an open market. Mr. Colombia, Costa Rica, Guatemala. Nica­ true guarantee for the development of in­ Glaziev stressed that Russia's accession ragua and Venezuela against the EC mem­ ternational trade relations based on multi­ would present trading opportunities for ber states' import regimes for bananas lateral rules. both Russia and the contracting parties, presented its report to the Council. This The EC said it had received the report and would contribute to world trade panel was established by the Council on only recently, and was still analysing its growth. 10 February 1993 under the expedited legal implications, particularly the part The United States described Russia's procedures of the 1966 Decision for dis­ dealing with Community's trade pref­ decision as "a momentous one" for both putes involving developing countries, the erences under the Lomé Convention. It the country and GATT, adding that the first time the Decision was used to estab­ said this part presented a major problem accession process could contribute to the lish a GATT panel. The panel submitted not only for the EC but also for other construction and maintenance of a firm its report to the parties within nine weeks countries that had non-reciprocal pref­ and comprehensive framework for Rus­ of its constitution - faster than any other erential trade agreements with developing sia's future trade-led economic develop­ previous GATT panel. countries. The Community said it would ment. The European Community said The panel reached the following con­ be prepared for a substantial discussion of accession was an essential step for Rus­ clusions: the matter at the next Council meeting in sia's reform process, to which it had been • The quantitative restrictions main­ July. making significant contributions. tained by , Italy, , Many ACP contracting parties de­ In welcoming Russia's application, and the on imports of nounced the panel's findings. Jamaica, Norway, speaking on behalf of the Nordic bananas were inconsistent with Article emphasizing the critical economic im­ countries, pointed out that the working XI: 1 (this Article refers to the general portance of banana exports to many ACP party process would necessarily take elimination of quantitative restrictions) members, maintained that the panel had some time to be completed. Japan under­ and were not justified by Article overstepped its mandate. Saint Lucia ob­ lined that an acceding country should XI:2(c)(i). Article XXIV (on customs jected to the panel's conclusions with re­ have a system compatible with the unions and free-trade areas), or the spect to the Lomé Convention, arguing General Agreement, and hoped that Rus­ existing legislation clauses in the proto­ that the EC-ACP arrangement had been sia would be fully prepared for the work­ cols through which these EEC member the most successful example of North- ing party exercise. States had become contracting parties. South cooperation. St. Vincent and the said Russia's accession would The Panel recommended that the Con­ Grenadines questioned why the EC affirm GATT as a truly universal agree­ tracting Parties request the EEC to bring should be condemned for extending a ment. Malaysia, speaking on behalf of the these restrictions into conformity with helping hand to some of the poorest coun­ ASEAN contracting parties, said Russia's the General Agreement. tries in the world. Dominica said the panel move was a sign of world confidence in • The tariff preference accorded by the findings had incited banana farmers to the GATT. Hungary said accession would EEC to imports of bananas originating vigorous public protests. add "a catalyst to Russia's moves towards in ACP countries was inconsistent with A number of Latin-American countries an open market economy". Article I (on most-favoured-nation urged the adoption of the report. Mexico The Council established a working treatment) and that a legal justification said the panel report supported the trend party to examine Russia's accession re­ for the preference could not emerge in agricultural trade policies away from quest. from an application of Article XXIV to trade-distorting measures and towards di- GATT FOCUS rect payments; it suggested that the Com­ about the Lomé Convention but rather Panel established on munity channel aid to ACP members in a about whether non-ACP GATT members EC-wide banana regime more direct fashion. Brazil believed the could enjoy their GATT rights of non-dis­ Colombia, Costa Rica, Guatemala, Nica­ panel findings were correct in that the crimination and access to the EC market. ragua and Venezuela reiterated a request, EC's quantitative restrictions were incon­ The United States stressed that the GATT first made at the May Council meeting sistent with the GATT. took precedence over all other trade obli­ (see previous Focus), for a panel to The United States said the panel report gations of a contracting party. examine their complaint against the EC- was legally sound in all respects and urged The Council agreed to revert to the wide import regime on bananas that its adoption. It said the dispute was not panel report at its next meeting. would be implemented on 1 July 1993.

Dispute-Settlement File Costa Rica, Colombia, Guatemala, Nicaragua, Venezuela/EC: EEC Member States' import regimes for bananas

he panel on this dispute was established by Council on 10 concerned would have to be on the face of it capable of justifi­ TFebruary 1993. It sent its report to the disputants on 19 May, cation under that Article - in other words a genuine FTA or and to the contracting parties on 3 June. The panelists were Mr. customs union in the sense of the Article. To argue otherwise, I.G. Patel (chairman), Mr. Peter Hamilton and Mrs. Naoko reasoned the panel, would mean that the mere invocation of Saiki. Article XXIV could deprive a contracting parties of its right of recourse to Article XXIII where it was involved in a dispute. Background Therefore, the panel then addressed the question - so far As of 31 December 1992, quota restrictions on bananas existed avoided in the GATT - of whether the Lomé Convention was in France, Italy, Portugal, Spain and the United Kingdom. prima facie the type of agreement covered by Article XXIV. It Bananas entering those same countries, as well as , did so bearing in mind, that Article XXIV calls for the removal Denmark, Greece, Ireland, Luxembourg and the Netherlands, of trade restrictions on substantially all the trade between the were subject to the EC bound tariff of 20%, except for bananas territories involved. This clearly was not the case with the Lomé originating in ACP (Africa, Caribbean and Pacific) countries, Convention preferences, since that the Convention provided which entered duty-free. (All bananas entering in only for the liberalization of imports from ACP countries into practice faced a zero tariff). Both the quota restrictions and the the Community but not vice versa. ACP preferences were considered by the Latin-American pro­ On this point the EC argued - as it has in the past - that the ducers to be inconsistent with a variety of GATT Articles. non-reciprocal nature of Lomé was covered by Part IV of the GATT, specifically Article XXXVI, when taken in conjunction Analysis by the Panel with Article XXrV, provides for and encourages measures by Quotas. The complainants held, and the panel agreed, that the developed countries favourable to products of export interest to quotas were clearly inconsistent with the basic prohibition on developing countries. such measures in Article XI: 1. However, the panel noted that Part IV did not permit con­ The EC claimed that, nevertheless, the restrictions were, in tracting parties to accord preferences inconsistent with Article part at least, covered by Article XI:2 which permits quantitative I. It was intended to create obligations for developed contracting restrictions on agricultural products if they are necessary to the parties in addition to those in other parts of the General Agree­ enforcement of governmental measures aimed at restricting the ment - not to subtract from them. The legal basis for tariff quantities of the like domestic product being marketed or pro­ preferences in favour of developing countries was the Enabling duced. The panel found, in general, that the criteria used to Clause under which falls the Generalized System of Preferences determine the validity of this clause were not met. (a system intended to be applied in a non-discriminatory manner The Community further claimed that the measures were to all - not specific groups - of developing countries). The panel covered by the so-called existing legislation clauses contained therefore concluded that the EC's interpretation was inconsist­ in the protocols of accession of the countries concerned - in ent w ith Part IV and its purpose in the GATT system. other words, that on accession they apply commitments in Part The panel's conclusion was that a legal justification for the II of the GATT (i.e. including Article XI) "'to the extent not tariff preference accorded by the EC to imports of bananas inconsistent with..(their)...legislation existing on the day of the produced in ACP states could not be found in Article XXIV - protocol." The panel examined the relevant measures in detail or in Article XXIV taken together with Part IV. (for the most part they date from the 1930s) and found that they were, in no case, mandatory in nature: a necessary condition if Conclusions the "existing legislation" defence was to be accepted. The panel recommended that the Community be requested to Tariff Preferences. The EC*s defence of the ACP preferences bring its national quota arrangements for bananas into conform­ - unarguably contrary to Article I since they are discriminatory ity with the GATT. (The system, in any case, lapses on July 1 - was based on the claim that they are covered by Article XXIV when the new regime comes into force.) which relates to customs unions and free-trade areas. The panel also recommended that the tariff preferences be The panel first had to decide whether procedures under brought into conformity - or that the EC seek a waiver for its Article XXIV:7 (the clause under which the Contracting Par- Lomé preferences for bananas under Article XXV. (It should be tiess can make recommendations about particular FTAs or noted that a waiver could have been sought - and would almost customs unions referred to them) prevail over the general dis­ certainly have been granted - many years ago. The US was given pute procedures under Article XXIII. The panel decided that a waiver for the preferences offered to the countries which even were it the case that Article XXIV prevailed, the agreement benefit from its Caribbean Basin Initiative.). D GATT FOCUS

They charged that the EEC Common Or­ countervailing charge that was, initially, ago. Serious concern was expressed over ganization of the Market in Bananas at ECU 1.84 per 100 kilogrammes but claims that eleven adopted panel reports (Regulation No. 404/93 adopted on 13 which had reached EC 16.7 in May and had not been either implemented or fully February 1993) nullified or impaired ECU 6.43 in June. Chile estimated that implemented. benefits accruing to them under the losses to its apple exporters would amount The EC expressed frustration at what it General Agreement, and infringed a num­ to some US$14 million. called insufficient implementation of ber of EC obligations under the GATT, According to Chile, the measure was panel reports. It cited as an example a including those set forth in Articles I. II. discriminatory as it applied only to apples panel report, adopted in November 1987. III. V. VIII. XI. XIII. XVI. XXIV and Part from Chile. Furthermore, the system used regarding Japan's customs duties and IV. by the EC for the determination of the taxes on imported wine and alcoholic Costa Rica, speaking on behalf of the charge was complex and lacked trans­ beverages. While acknowledging that complainants, stressed that they had ex­ parency. Chile said its apple shipments to Japan had revised tax laws to implement plored all avenues in the GATT regarding the EC had gone down in recent months, the panel findings, the EC charged that the EC measure. It said that consultations and that this decline was similar to the Japan's tax system still did not fully fol­ held under XXII: 1 with the Community effects of an EC measure in 1988. which low the national treatment provision of had had no satisfactory result. Costa Rica was found G ATT-inconsistent by a panel. the GATT. said their complaint should be considered It said it would continue to hold bilateral Japan replied that since the adoption of by the panel as an emergency matter, pur­ meetings w ith the EC on the matter. the report, it had taken a number of suant to the 1989 improvements to the Brazil. Canada. Colombia. Australia. measures to implement the recommenda­ GATT dispute-settlement mechanism. Argentina. Bolivia and New Zealand tions despite great domestic difficulties. It The EC stressed that the measure in shared Chile's concerns. pointed out that the share of imported question was not yet being applied, thus The Community explained that the whisky in the Japanese market had more the establishment of a panel on this matter countervailing charge on Chilean apples than doubled in recent years. would be inappropriate. However, it had was due to an EC Regulation on a com­ Tw o cases in the Director-General ' s list to abide by the letter of the 1989 Decision, mon organization of the Community mar­ of disputes were deleted: which provided for the establishment of a ket in fruits and vegetables, which • Pakistan reported that its consultations panel the second time the request was provided for the automatic imposition of with regarding the latter's anti­ considered by the Council. The EC did not surcharges on imports under certain cir­ dumping duties on Pakistani cotton accept the suggestion that the matter cumstances. It believed that the charge yarn had been successful. It said that in should be treated as an "urgent case". It had not impeded Chilean apple ship­ January, Turkey withdrew the measure argued that the panel would need suffi­ ments, as indicated by the number of im­ in question. cient time to do a good job and consider port licenses the EC had issued for the • Mexico said that the case raised by the views of the many parties involved. Chilean fruit. Brazil against Mexican anti-dumping The United States strongly supported investigation on imports of textiles the request by the Latin-American banana Status of work in panels from Brazil was now moot. In Decem­ exporters that the dispute be treated as an The Council considered the twice-yearly ber 1992, Mexico announced that the urgent case. It pointed out the commercial report of the Director-General, Mr. Arthur investigation had been concluded and importance of the matter to many coun­ Dunkel, on the status of work in panels that no anti-dumping duty was applied tries, and stressed that GATT members and implementation of panel reports. The to the Brazilian product. should have the benefit of the panel's introduction to the report highlighted the findings before the conclusion of the Uru­ said that on eight different oc­ following developments over the past casions, it had urged the Committee on guay Round. A number of other countries twelve months: supported the panel request, including Anti-Dumping Practices to adopt a panel many Latin-American countries. • Requests for consultations had in­ report on US anti-dumping duties on creased substantially, due mainly to re­ stainless steel pipe tubes from Sweden. It The ACP (Africa, Caribbean and Pa­ quests for consultations under the welcomed informal consultations by the cific) contracting parties objected to the Tokyo Round Agreements, which rose Committee Chairman on the stumbling establishment of a panel but said they from 5 to 10. Requests for consultations block to the report's adoption, which was would not block a consensus in the Coun­ under the General Agreement had in­ the United States' objection to the specific cil on the matter. They maintained that the creased only slightly, from 6 to 7. remedy recommended by the panel. complaint was not an "urgent case", and most of them stressed that they should be • The total number of panels established allowed to participate fully in the panel had fallen somewhat because the num­ Free-Trade Agreements proceedings. ber of panels established under the Tokyo Round Agreements fell by one- The Council took several decisions with The Council established a panel to half from 10 to 5. Panels established respect to free-trade agreements: examine the complaint lodged by the five under the General Agreement increased • Modified the terms of reference of the Latin-American countries. from 1 to 3. Working Party on the EFTA-Czech and Slovak Federal Republic Free Trade Chile hits EC countervailing It was observed that in most cases, pa­ nels had been established and constituted Agreement to take account of the break­ charge on apples without delay and had submitted their re­ up of Czechoslovakia: Chile provided more details on its com­ ports within the prescribed time limits. • Established a working party to exarrjine plaint, raised under "Other Business" at However, delays had occurred in the pro­ the EFTA-Romania Free-Trade Agree­ the May Council (see Focus No. 99), cess of adopting panel reports. The intro­ ment; and against EC's countervailing charge on duction pointed out that there were still • Established a working party to examine Chilean apples. It said that on 7 April ten panel reports that had remained una­ the Free-Trade Agreements between 1993, the EC Commission adopted Regu­ dopted even though the initial request for and Estonia, Latvia and Li­ lation No. 846/93 introducing the adoption was made more than six months thuania. GATT FOCUS

"Other Business" • Argentina expressed concern over a cerned. New Zealand shared the Austra­ lian concern and reported it had started Under "Other Business", delegations proposal in the US Congress to raise consultations on this matter with Ca­ raised the following points: tariffs on peanut paste and peanut butter • Argentina, Canada, Brazil and Uruguay from 6.6 cents to 61.6 cents. The United nada. Canada replied that the safeguard expressed concern over delays in their States said the proposal in question was action resulted from a decision by the bilateral negotiations with the EC on for the investigation of whether imports Canadian International Trade Tribunal, compensation with respect to the Com­ of these products were undercutting its a quasi-judicial body. Japan, Hong munity's concessions on oilseeds. The "no-cost" support system for peanuts. Kong, India and Korea expressed dis­ EC reported that the EC Council of • Japan reported it had recently started quiet with the selective nature of the Ministers, on 8 June, had approved the consultations with the United States on Canadian action. oilseeds part of the EC-US Blair House US anti-dumping action on certain Australia expressed apprehension that Agreement, paving the way for the re­ Japanese steel products. measures being considered in Washing­ sumption of negotiations with con­ • Australia termed a recent safeguard ac­ ton would result in the intensification of cerned parties in the next few weeks. tion by Canada on imports of boneless the subsidies war between the United • Argentina complained that new import- beef from countries other than the States and the EC on exports of wheat. licensing requirements had discouraged United States as unjustifiable under the Argentina reported it had started bilat­ EC imports of Argentina's garlic. Mex­ GATT because there was no serious eral consultations with the United ico shared Argentina's concern. The EC injury to the domestic industry con­ States on this issue. LJ said the import licences were given automatically, and the aim was merely to monitor import quantities. Paraguay set to join the GATT; PEOPLE Serbia-Montenegro out he Council welcomed the new TJapanese representative to GATT, he Chairman of the Working Party tries through the MERCOSUR regional Ambassador Minoru Endo. Ton the Accession of Paraguay, Am­ trading arrangement. Paraguay added The Tokyo Round Committees have bassador Jesus Seade (Mexico), that it had tabled offers on market access elected the following officers to serve presented the report and a draft Protocol and on services in the Uruguay Round. in 1993: Technical Barriers To Trade: of Accession to the Council. The Council adopted the report of the Mr. Carlos M.B. Cozendey (Brazil). Working Party members noted that Working Party, approved the draft text Paraguay had been implementing far chairman, and Ms. Vera Nicholas of a decision on Paraguay's accession, reaching reforms aimed at liberalizing (Canada), vice-chairperson: Import and submitted it to a vote by the contract­ the foreign trade regime. It was expected ing parties through postal ballot. Licensing Procedures: Mr. Sergio that these reforms when pursued resol­ The Council Chairman recalled that in Soto Nunez, chairman, and Mr. utely would help rationalize the use of June 1992, it was decided that the repre­ Adrian Constantinescu (Romania), Paraguay's resources, increase produc­ sentative of the Federal Republic of vice chairman; Anti-Dumping Prac­ tion and trade and accelerate the pace of Yugoslavia should refrain from partici­ tices: Mr. David Walker (New Zea­ economic development. pation in the business of the Council. land), chairman, and Mr. Mohan During the examination of the Kumar (India), vice-chairman: Sub­ Since that time, the UN General Assem­ country's trade regime. Paraguay gave bly had adopted Resolution 47/1. Taking sidies and Countervailing Measures: assurances that its application of taxes Mr. Andres Espiriosa (Colombia), this into account and after consultations and surcharges on imports and exports with Council members, it had been chairman, and Mr. Michitaka Naka- would be applied in conformity with agreed to modify the June 1992 Decision tomi (Japan), vice-chairman: Govern­ GATT provisions and that any domestic in the following way: ment Procurement: Mr. David Hayes taxes and charges whose application (United Kingdom), chairman, and Mr. varied according to whether the items "The Council considers that the Harald Ernst (Switzerland), vice- were locally manufactured or imported Federal Republic of Yugoslavia (Serbia chairman: Customs Valuation: Mr. would be removed. It pledged to elimi­ and Montenegro) cannot continue auto­ Raymond Tarn (Hong Kong), chair­ nate, before the end of 1994, the use of matically the contracting party status of man, and Mr. Eki Lim (Korea), vice- import prohibitions, restrictive import the former Socialist Federal Republic of chairman: Civil Aircraft: Mr. Mikael licenses and other quantitative restric­ Yugoslavia in the GATT, and therefore decides that the Federal Republic of Lindstrôm (Sweden), chairman, and tions inconsistent with the GATT. Para­ Yugoslavia (Serbia and Montenegro) Mr. Pierre Latrille (France), vice- guay intended to accede to the Tokyo Round Agreements on Customs Valu­ should apply for accession to the GATT chairman: International Dairy Coun­ and that it shall not participate in the cil: Mr. Jorge A. Ruiz (Argentina), ation, Import Licensing Procedures and Anti-Dumping Practices. work of the Council and its subsidiary chairman, and Mr. Kim Luotonen bodies. (Finland), vice-chairman; Dairy Proto­ Paraguay told the Council its ac­ col Committees: Mr. Luotonen: Inter­ cession to the GATT would be the cul­ The Council further invites other national Meat Council: Ms. Brid mination of an extended process that had committees and subsidiary bodies of the Cannon (Ireland), chairperson, and gained impetus with the arrival of a new GATT, including the Committees of the government in 1989. Since that time, Tokyo Round Agreements and the Com­ Mr. Peter May (Australia), vice- major reforms aimed at liberalizing the mittee on Trade and Development, to chairman; and Meat Market Analysis economy had been instituted and it had take the necessary decisions in accord­ Group: Mr. May. Q increased trade with neighbouring coun­ ance with the above." D A fond farewell to Dunkel ATT members, at the Council meet­ and believes in taking, and advising others heard and seen us all being inconsistent Ging on 16 June, paid a warm tribute to take, what may be possible now so as from one day to the next, contradictory in to the Director-General, Mr. Arthur Dun­ to be able to live for the day when more our approaches from one issue to another, kel. for his contributions to the multilat­ could be had. presenting partisan interests as questions eral trading system during his thirteen He has. in particular, nursed a vision of of high principle. That this has not bred years at the helm of the GATT Secretariat. the GATT: to gain for it its rightful place cynicism in Arthur Dunkel is a tribute to The following are excerpts from the in the Trinity of Institutions conceived at his innate sense of optimism and faith in statements made by the Chairmen of the the Bretton Wood's for orderly develop­ the commitment of the international com­ Contracting Parties and the Council, re­ ment of trade and financial relations munity to live by a set of values. spectively, on behalf of the GATT mem­ among nations with a view to ushering in I have talked of Arthur Dunkel. the bers: world peace and prosperity. His vision has official and Arthur, the man. separately. extended to encompass a whole gamut of However. I am not suggesting that these "Nurturing GATT with economic relations in the world based on are two different personalities: these are patience and love" fairness, equity and a strong commitment different aspects of the same person. How to multilateralism. On the notion of multi­ do these aspects come together in the per­ Ambassador B.K. Zutshi. lateralism, as opposed to that of unilat­ son of Arthur Dunkel? I have been think­ Chairman of the Contracting Parties eralism/bilateralism, as the bedrock of ing about it lately. Last year I read a very international trade and economic rela­ profound piece by Mr. Vaclav Havel, the his one is about Arthur Dunkel. the tions, he has never faltered, never former President of the erstwhile Cze­ TDirector-General, and my capacity is wavered. choslovakia, a well-known thinker and that of the Contracting Parties' Chairman. writer. It was published in the Interna­ Words are mine, but I am sure sentiments need hardly dwell on his contributions tional Herald Tribune under the heading are those of all my colleagues present here Ito the negotiations in the Uruguay "Planting. Watering and Waiting". It is today. I said that this was about Arthur Round. His untiring efforts in bringing the based on Mr. Havel's reflections on his Dunkel, the Director-General. I should, Round to where it stands now is too well- own impatience with the slow transforma­ however, add that this is about Arthur, the known to need any reiteration. I may well tion of the then Czechoslovakia into a man also. I would venture that this be the turn out that the defining moment of these fully-pledged functioning democracy in Contracting Parties' tribute to Arthur, the negotiations was the tabling of the Draft the Western style. I would call it a meta­ official and the man. Final Act Text of December 1991. We all phor on History and Destiny. In his own Arthur Dunkel is demitting office at the know what personal efforts he made and words: end of this month after nearly 13 years at what risks he undertook in the autumn of "I thought time belonged to me. This the helm of the GATT and, if I may say 1991 to bring out that Text. was a great error. The world and history so, what 13 years! A period in which the That was Arthur Dunkel, the official. If are ruled by a time of their own, in which little-known and even less-understood ac­ I may now turn to Arthur, the man. From we can creatively intervene but never ronym the "GATT" has become a house­ time to time I have disagreed with him, achieve complete control." hold word in the better part of the world. often mildly, but sometimes rather He adds: ".... I realised with fright that This transformation of the image of the strongly. So I am sure, have others, some­ my impatience for the re-establishment of institution and perceptions about how it times or the other, but still we all have democracy had something almost com­ relates to the real world is no less due to been able to retain his friendship, good­ munist in it; or, more generally, some­ Arthur's untiring efforts at projecting the will and mutual respect. That is the hall­ thing rationalist. I had wanted to make true nature and scope of the GATT and its mark of a gentleman. Nothing reflects this history move ahead in the same way that relevance to the real world than to the better than my own experience, if I may a child pulls on a plant to make it grow exertions of participants to give it a new share it with you. Arthur has always given more quickly. I believe we must learn to dimension and to 1 ick it into shape through me the impression that India has a special wait as we learn to create. We have to the Uruguay Round Round negotiations. place in his heart, not that I recall him patiently sow the seeds, assiduously water This was supposed to be a rich men's club, saying so in so many words, or in specific the earth where they are sown and give the not so long ago. Not that it has altogether terms, but by way of a word here, a hint plants the time that is their own. One shed that faintly unsavoury reputation, but there and by his grasp of ourproblems and cannot fool a plant any more than one can today it is being seen as a possible vehicle concerns he has created this impression on fool history. But one can water it. Pa­ for ushering in a new era of cooperation me. In the beginning. I though this was tiently, every day. With understanding, and multilateralism, based on a set of fair unique for India, until I discovered, with with humility, but also with love." and equitable rules in trading relations a tinge of disappointment, but also with among nations. This is not to belittle understanding and appreciation, that he his is a profound metaphor and con­ GATT's achievements so far; what it has had been able to convey the same im­ Ttains a profound truth and perhaps a done already for world prosperity, par­ pression to others also about them; not in crucial lesson for us all individually, and, ticularly for the Western developed coun­ the sense of being everything to every­ for the world community as a whole in the tries is impressive; that the world trading body but in the sense of conveying a feel­ context of current international concerns, system has not emerged more just and ing of singular value to each contracting be they in the fields of economic and more equitable is certainly not because of party and each participant in the Round. political relations or in those of social and lack of any effort on his part. We all know This is a reflection of the special quality human rights. Perhaps, I am digressing. how much he has exerted in that direction; of empathy he possesses, a rare gift.. You may well ask where does Arthur I know it personally in the context of His awareness of human foibles and come into all this? I believe this metaphor textiles. He is, of course, a pragmatist also failings is acute. For. in his time he has fits him well: for the last 13 years he has GATT FOCUS

been tending the multilateral trading sys­ act in this extremely challenging environ­ tem in the sense envisaged by Vaclav ment. He has understood the basic nature Havel. Everyday, with understanding and of these changes, the inherent challenges The DDG bids with care, Arthur Dunkel has been nurtur­ and their likely impact on the trading sys­ ing the plant of multilateralism. That is his tem. He succeeded in accommodating goodbye contribution to the GATT. these changes and has made an important That brings me to what is the best trib­ personal contribution to raising the politi­ ute that we can pay to him. The best tribute cal profile of the institution. Transparency to him would be to complete the Uruguay is a basic precondition for the smooth Round as soon as possible so that the seed operation of a truly multilateral system. of the Round sprouts and starts growing This has been an important preoccupation into a gigantic tree and, in due course, of the Director-General and he has made providing fruit and shade to all those it a valuable contribution also in this regard will cover. through mechanisms such as the inven­ Arthur has many active years ahead of tion and the institutionalization of the him outside GATT. This is a goodbye smoky Green Room process. only in a formal sense, for we will have an An extremely important relatively new occasion to meet him again. I have also no phenomenon has been the increasing in­ doubt that, even from outside his advice terest of the business community in the and wisdom will be available to us and to GATT and the Uruguay Round negotia­ the GATT for many more years." E3 tions. The Director-General has recog­ nized this and in his many contacts with "Historical changes" these circles, he has achieved a fine bal­ Mr. Carlisle: a bear turned bull on Uruguay Round deadlines. Ambassador Andres Szepesi, ance between promoting a better under­ Chairman of the Council standing of our activities and the fact that the General Agreement is a contract he Council, on 17 June, expressed among governments. Tits appreciation to Mr. Charles hirteen years is an extremely import­ Carlisle, who, as Deputy Director- Tant period in the professional career General, has back-stopped Mr. Dunkel of any person, the more so if this period is during the past six years. The Council devoted to serving as Head of the Secre­ "GATT has changed from a Chairman noted that Mr. Carlisle's ex­ tariat of an extremely important interna­ perience as one of the top United States tional organization. It is a testimony of the relatively small, rather closed, trade negotiators had helped him work accomplished that the institution exclusive and quasi-technical achieve an effective and productive and the negotiations conducted under its career in GATT. auspices are identified, and not only by club to an agreement and The following are excerpts from the public opinion, with the name of one per­ institution of wide remarks by Mr. Carlisle to the Council: son - Arthur Dunkel. Director-General of the GATT and Chairman of the Trade geographical representation Negotiations Committee at Officials whose activities are debated might feel a slight twinge of disap­ level. During his term in office, historical Ipointment that I shall not be with changes have taken place in the world and worldwide..." you when you gather this December to I dare to use the same adjective, historical celebrate the successful conclusion of changes have characterized the activities the Uruguay Round. But who is pres­ ent at the moment of triumph is of no of GATT as well. Particular mention should be made to great consequence: what w ill matter is During this period of thirteen years, the his outstanding personal involvement in that you will have done it. GATT has changed from a relatively the process leading to the Draft Final Act small, rather closed, exclusive and quasi- which is commonly referred to as the But I do assume that Arthur Dunkel technical club to an agreement and institu­ Dunkel Text. His excellent credentials, will be present at your ceremonies, and tion of wide geographical representation his attention to and understanding of the I suggest that you raise your glass to whose activities are debated worldwide problems, the ability to identify the politi­ him - to a man who has laboured tire­ almost every day by governments, busi­ cal sensitivity of these issues while under­ lessly, courageously and impartially to ness circles and public opinion. This is the standing the complex technical details bring about a result which he so fer­ result of an evolution of basic attitudes behind them, have helped the Director- vently believes. and policies of many GATT members rec­ General in assuming his responsibilities. As many of you know, I sometimes ognizing the success of domestic econ­ This outstanding performance has been have been sceptical about achieving omy and social policy is largel\ achieved by show ing calm on the surface success within the various deadlines influenced by the openness of their own and certainly hiding the fact that the per­ that have been established during the domestic economies and is also depend­ son subject of these challenges is also past several years, although I never ent on the degree of openness of others. A vulnerable. have doubted the final outcome. But in great number of developing countries Arthur, on behalf of us all, let me ex­ the language of Wall Street, earlier this tand he reforming economies in Central press once again our appreciation and year I changed from a bear to a bull. and Eastern Europe have embarked on an deep gratitude. We know that ourrelation- In the GATT Secretariat you have a unprecedented economic and trade lib­ s in your capacity are getting close to an very valuable asset, but like all valu­ eralization process. end but we are convinced that the personal able assets care must be taken to main­ Arthur Dunkel, as Director-General relations with you will be maintained also tain and enhance its worth. Let me and the Chairman of the TNC; has had to in the future." CD Continued on page 10 GATT FOCUS

Arthur Dunkel's valedictory reminding that variety is the spice of trade Trade growth brings social, political, environmental changes"

eriodically, governments - especially suing accession: and a large number of Pin the advanced industrialized coun­ new observer countries stepping onto the tries, and even more so in times of re­ ladder of eventual accession. "Thus the cession - seem to forget what trade really ranks of GATT members are likely to go is. and what makes it happen." says Arthur on expanding very rapidly over the com­ Dunkel. outgoing Director-General of the ing years: with the especially challenging GATT, in his introduction to GATT Acti­ prospect of many of the independent vities 1992. published on 30 June. "Put states of the former Soviet Union joining differently, there seems to be a difficulty the trading system as their economic re­ in comprehending what the word compe­ forms proceed." says Mr. Dunkel. tition actually means. They lose sight of At the same time, many GATT mem­ the fact that competition is epitomized by ber-countries, which are in the process of difference - differences in access to raw trade and economic reform, are using the materials, in wage rates, in education, in publicly- or privately-funded research trade policy review system as a valuable and development, in exchange rates, in tool to learn from the successes and short­ labour productivity, in investment, in comings of their peers. "Recently, this standards of health-care, in industrial and learning process has been a disillusioning commercial structures and so on. experience for many of the newly-refor­ "Real competition is too often seen - for ming countries." he emphasizes. "They largely protectionist reasons - as an eter­ have acted as they were advised to act; nal balancing act. Put everyone on an they have opened their economies to in­ equal footing with us, goes the theory, and "Real competition is too often ternational competition and to imports. our businessmen will beat the world. But, seen -for largely protectionist They have begun to see worthwhile re­ if everyone else is not operating under the sults in many cases. However, to the ex­ same conditions, then one way or another reasons - as an eternal tent that their reforms have been their exports must be suspect and some balancing act..." implemented in anticipation of a streng­ compensatory action must be considered. thening of the multilateral trading system A recent refinement, where GATT com­ and of new market opportunities world­ mitments do not exist, is to offer market lost several opportunities to conclude the wide, they have been disappointed." access only on the basis that similar mar­ Round. At root, it has been a question of GATT Activities 1992 can be obtained ket access exists in the opposite direction timing - rightly or wrongly, the political from the Secretariat. Price SwF 20.- CJ - bilateral reciprocity. One can only say winds were never quite right, never blow­ that had GATT tried to expand world ing in the same direction for everyone. trade through such a philosophy, then the And while the major industrial countries world would now be a very much poorer have tried vainly to find a politically ac­ Forthcoming GATT place", comments Mr. Dunkel. ceptable point at which to settle, the rest publications of the world has had to wait with increas­ aturally, not all the differences ing frustration. Let us hope the omens are • International Trade Report 1993 Namong countries and firms which right now, and that a settlement - and a with a special topic on "Regional­ permit trade to take place are, in them­ good settlement, at that - can be secured. ism and Multilateralism" This an­ selves, desirable. Nobody in the GATT In reality, there is probably never an ideal nual report examines trends in world would encourage perpetually low labour time to make such a deal. There will al­ trade. GATT economists investi­ rates and conditions, the absence of ade­ ways be a reason to give it just a few more gate, in addition, the likely factors quate environmental standards or the sur­ months. The time has now come for gov­ behind the changes that are taking vival of outmoded, anti-competitive ernments to face realities and live up to place in the world economy. SwF commercial practices. But experience their responsibilities. I believe the deal 30.-. shows that trade brings economic growth, can, and should, be done before the end of • International Trade Statistics 1993. and economic growth brings change - the year. The Uruguay Round continues A comprehensive statistical review change of many different kinds; social, to be poised precariously at the brink of a of recent world trade developments. political, environmental. This is not a final success." To be published in November 1993. static world, but the protectionists - or, to SwF 30.-. give them their modem title, the 'trade- urning to the current GATT multilat­ • Analytical Index. Contains notes on managers' - seem to want to make it so. Teral trading system, Mr. Dunkel the drafting history, interpretation The Uruguay Round is not an attempt to points out the high level of demand to and application of the Articles of the manage world trade. It is an attempt to enter the GATT - 22 new contracting par­ GATT. The 1993 edition includes a create, or re-create, the conditions of real ties since the launch of the Round in 1986, substantially revised and expanded competition in which trade will thrive. eight of which joined in the last year or so; account of GATT law and practice. "In the past two or three years we have about 15 other countries currently pur­ Autumn 1993. GATT FOCUS

TPRM that the process of struc­ tural adjustment would lead to equitable access Council reviews for all South African citizens to opportunities South Africa's in the economy. Grow­ ing per capita income trade regime was essential to the pro­ he GATT Council conducted its first cess; to this end, it was Treview of South Africa under the necessary to overcome trade policy review mechanism (TPRM) functional imbalances on 1 -2 June 1993. The TPRM enables the and domestic market in­ Council to conduct a collective review of efficiencies. A major the full range of trade policies and prac­ element in the present tices of each GATT member at regular investment climate was periodic intervals to monitor significant the uncertainty inherent trends and developments which may have in political transition. an impact on the global trading system. He recognized that the. The following are excerpts from the instability, complexity Chairman's concluding remarks: and lack of transparency in trade policies were not favourable to "The Council identified five major foreign investment. themes for discussion: Economic and political Measures background affecting imports Council members End of a shift in a South African gold mine: South Africa says Participants recognized that fundamental stressed that South Afri­ ongoing structural adjustment aims to provide all citizens political, social and economic changes ca's tariff structure was with equitable access to economic opportunities. (ILO Photo) were currently taking place in South Af­ complex and far from rica. The task of transformation was com­ transparent, with few plicated by the current deep recession. bindings and frequent rate changes. For­ open, transparent trading system. He rec­ The domestic economy was characterized mula duties added to the complexity and ognized that the tariff was complex and by high inflation, unemployment of exacerbated an already escalatory struc­ fluid, created uncertainty and lacked around 40%, a large fiscal deficit and low ture. Participants recognized the Govern­ transparency. Tariff reduction and ration­ reserves: investor and consumer con­ ment's intention to phase out formula alization was a high priority, but the aim fidence was low. Members ascribed the duties, with the introduction of anti­ of uniformity might lead to increases in present difficulties in part to South Afri­ dumping legislation, and sought informa­ some rates. Formula duties would be ca's long-standing import replacement tion on the timing of this process. The phased out. policy, which had necessitated protection import surcharge violated tariff bindings for domestic producers and considerable Tariff and other reforms were under and was applied on a discriminatory basis: government support, and the factor rig­ discussion in the National Economic members sought information on a time­ idities induced by apartheid. During the Forum: hence, a precise answer on timing frame for its removal. 1980s, the situation had been exacerbated could not be provided now. The weakness by exogenous factors such as recurrent Members commended the significanth of the economy implied that the reform droughts and declining world prices for reduced incidence of import licensing on process would have to be gradual. minerals. The urgent need to foster industrial goods. Nevertheless, wide­ South Africa intended to submit a re­ growth made greater competitiveness a spread barriers still remained in certain vised tariff offer, in the framework of the priority; trade, internal liberalization and sectors, particularly agriculture. Uruguay Round, which would improve improvements in education and training The various measures to restrict im­ the level of bindings and reduce the aver­ would play crucial rôles in the process. ports resulted in high levels of effective age rate. The revised offer would be sub­ Participants welcomed the recent protection. The system of rebates in­ mitted on schedule, after discussion in the changes in South Africa's trade policy, creased tariff escalation, and made effec­ National Economic Forum. which aimed to restructure the productive tive protection levels even higher. The import surcharge had been intro­ capacity of the economy. The Normative Participants welcomed the planned re­ duced as a temporary measure in order to Economic Model, introduced as a dis­ placement of formula duties b\ new anti­ safeguard the balance of payments. South cussion paper for the National Economic dumping procedures, but the absence of Africa would soon consult in the relevant Forum, highlighted international trade as published regulations reduced trans­ GATT forum. The Minister of Finance key to economic prosperity. The aim was parency. Members questioned the consist- had already indicated that the surcharge to further open the market, using the tariff ency of South Africa's safeguard would be withdrawn as soon as circum­ as the basic trade policy instrument. How­ legislation with Article XIX, particularly stances permit. ever, participants emphasized the risks in­ in relation to provisions governing "dis­ Progress had been made in phasing out herent in the cautious approach adopted ruptive competition". quantitative restrictions; those on remain­ by the authorities and urged that reform In response, the South African repre­ ing industrial tariff lines should be phased be more rapid. sentative said that a thorough review of out within the next year, remaining only In reply, the representative of South trade policy was being undertaken. The for secondhand goods and items subject Africa said that his authorities envisaged Government was committed to a more to social, health and cultural consider- GATT FOCUS

ations. Commitments made to investors in Domestic policies In response, the South African repre­ a very few cases would, however, be hon­ sentative stated that no decision had been Members noted that industrial goods were oured. In agriculture, the process of tarif- taken with regard to accession to further fication was continuing. protected by preferences for local content in government procurement. Local con­ Codes. South Africa would accept the ob­ "Disruptive competition" was defined ligations of the Codes by acceptance of in the Board of Tariffs and Trade Act; tent incentive schemes also applied to the the Uruguay Round Final Act. South Af­ provision had been made in the Customs motor vehicles and other sectors. and Excise Act for action against such In response, the South African repre­ rica expected to take a more active partici­ competition in the form of safeguard sentative stated that regional preferences pation in the multilateral trading system duties and procedural guidelines were in government procurement would be in future. It was also studying alternatives being developed. These provisions were eliminated by the end of June 1993. Pref­ to regional cooperation under the South- intended to create a statutory basis for erences for electronics were also being em African Customs Union. Notification safeguard action as provided for in Article phased down. The local content scheme of the Customs Union under Article XIX of the GATT. for motor vehicles was being reviewed XXIV was not required since the agree­ and might be replaced. ment pre-dated South Africa"s accession Measures affecting exports to the GATT. The General Export Incentive Scheme Trade agreements In conclusion, the Council recognized (GEIS) was recognized as inconsistent Participants noted that South Africa, that the South African economy was sub­ with the GATT: although it aimed to com­ though an original signatory to the ject to many constraints. With sanctions pensate for the anti-export bias of import General Agreement, was not fully inte­ largely dismantled. South Africa, as a protection, it represented a significant grated into the GATT system. Informa­ country undergoing significant transfor­ drain on public coffers. Clarification on tion was sought on its willingness to mation, should make every effort to align its review and phase-out was sought. accede to remaining Tokyo Round Agree­ its economy fully with the multilateral The South African representative said ments, particularly those on government trading system. The Council stressed the procurement, technical barriers, anti­ that GEIS had replaced tax concessions benefits to be obtained from a resolute with direct subsidies, as a step towards dumping, and subsidies and countervail­ pursuit of trade liberalization. It also em­ eventual elimination of export subsidies ing measures. One member felt that South inconsistent with the GATT. Progress in Africa should notify the Southern African phasized that a successful outcome of the trade liberalization would allow for lower Customs Union under Article XXIV and Uruguay Round would provide external levels of export assistance; the phasing another requested information on the bi­ discipline for the liberalization process, out of GEIS would be part of the overall lateral agreements concluded with certain assisting South Africa in its reintegration package. central and eastern European countries. into the world economy. LJ

Carlisle Director-General officials and negotiators, but to Man­ Continued from page 8 hattan. Continued from page I I plan to work with companies, with suggest three ways you can do this: those overseas as well as with Ameri­ words. Thereafter, the sooner we can • Keep the Secretariat lean and expen­ can, bringing buyers, sellers and inves­ get back to a multilateral process in ditures under a tight rein. A sprawl­ tors together. I look forward to working Geneva, the better. ing bureaucracy is the enemy of with what Arthur Dunkel calls "the The fact that we are so close to a professionalism and efficiency. users of the GATT", the enterprises and deal, is the best possible tribute to Art­ • Entrance into the Secretariat should entrepreneurs who create the bones, hur Dunkel, GATT' s present Director- be based on excellence. Nationality muscles and sinews of a more closely General. He has striven for 13 years to cannot be ignore but appointments integrated global economy. uphold the foundations of the existing should be firmly rooted in merit. Thirty-seven years ago this autumn, GATT system and to establish a new, • Reward the Secretariat not lavishly as a young foreign service officer, I wider and better, trading system for but well. A first step recently has entered what was then called the Trade the coming decades. The Uruguay- been taken to rectify the eroded value Agreements Division of the Depart­ Round will remain his personal legacy of GATT salaries and pensions, an ment of State, the division that dealt to the world -1 can think of few enter­ erosion caused by inflation and the with trade and GATT problems. Too prises of more value that have been so declining value of the dollar. Both junior to meet the head of GATT - the personally identified with an interna­ elementary fairness and the mainten­ legendary Eric Wyndham White - too tional public servant. He has sen-ed ance of a first-class secretariat re­ junior to be included in delegations to the GATT with devotion, patience and quire that the process recently Geneva, I never imagined that some a sense of the wider perspectives of initiated be carried forward to an day, I would be a Deputy Director- trade which I can only hope to emulate. early conclusion. General of GATT and sitting up here. Let me also pay tribute to the other To all of my colleagues in the GATT For that opportunity I must thank nominee in what has been a very amic­ Secretariat I give my heart felt thanks. Arthur Dunkel and you. I consider it an able competition for the job of Direc­ I thank profoundly my immediate staff. honour to have served the GATT and to tor-General. Julio Lacarte-Murô has a I am within two weeks of my depar­ have served you. Your serious, but col­ background in international diplo­ ture. I feel at peace and look forward, légial and problem-solving approach to macy, but especially in the GATT, not to Washington where there is repor­ problems could serve as a model for which is second to none. I wish him tedly a great over supply of ex-trade many organizations." LJ well and look forward to working with him in the future." LJ GATT FOCUS

Butter to Russia exempted NEWS BRIEFS Saudi Arabia TBT observer from minimum export prices he Committee on Technical Barriers utter shipments to the former Soviet Tto Trade, on 11 May, granted ob­ BUnion, normally subject to interna­ a Special Trade Policy Course, organized server status to the Kingdom of Saudi tionally-agreed minimum prices under by the GATT Secretariat, which began 24 Arabia. The Saudi representative said the GATT's International Dariy Arrange­ May in Geneva. decision would allow his country to make ment, can be sold at prices below the This is the third such special course further progress towards accession to the minimum up to the end of the year. supported financially by the Swiss Gov­ GATT and the TBT Agreement. The GATT Committee of the Protocol ernment, following on from the success of A number of national measures were Regarding Milk Fat, on 22 June 1993, the first two held in 1991 and 1992. The discussed at the meeting, including the decided to accord a general derogation courses are aimed at assisting the coun­ Republic of Korea's Marks of Origin Sys­ from the minimum export price tries' transition to market-oriented econ­ tem and marking requirements; the Ger­ (US$1,350 per metric ton) to butter omies and fuller participation in the man Ordinance on Packaging and shipped to countries of the former Soviet multilateral trading system. Packaging Waste; Mexico's new rules on Union. The decision took account of the The nine-week course involves 25 offi­ imports of meat:a recent labelling regula­ significant price uncertainty and the avai­ cials from Albania, Armenia, Azerbaijan, tion based on the US Clean Air Act; and lability of supplies of butter on conces­ Belarus, Bulgaria, the Czech Republic, US labelling regulations on nutritional sional terms in the former USSR market. Estonia, Georgia, Hungary, Kazakhstan, content of food products. D The Committee decided as an excep­ Kyrgyzstan, Latvia, Lithuania, Moldova. Poland, Romania, the Russian Federation, tional arrangement and without setting a Meat markets precedent that: the Slovak Republic, Ukrain and Uzbekis­ • the provisions with respect to the mini­ tan. • he Chairman of the Meat Market mum export prices for butter and butter TAnalysis Group, Mr. Peter May (Aus­ oil shall not apply to exports to coun­ Aircraft Code tralia), reported to the International Meat tries of the former Soviet Union up to a he Sub-Committee on Trade in Civil Council on 25 June that "the world meat maximum quantity of 50,000 metric TAircraft, in charge of negotiations for markets may not be at the best of their tons (butter equivalent) per participant a new GATT Code on Civil Aircraft, held shape, but have seen worst days". He said for butter and butter oil exclusively for its fifth meeting on 26-27 May. Partici­ that at meetings held on 16 and 17 June, consumption in those countries; pants discussed submissions put forward the Group noted that the North Asian mar­ • this Decision applies to sales contracts informally by Canada and by the United kets remained the most buoyant in the unconditionally concluded before 31 States as well as the following issues: world but that red meat continued to suffer December 1993; and subsidy-based versus support-based dis­ from the sluggish economic situation in • deliveries of butter and butter oil to ciplines, direct government development Western Europe. countries of the former Soviet Union subsidies/support, indirect subsidies/sup­ The Group discussed the impact of sev­ pursuant to this Decision are to be com­ port, prohibition of production sub­ eral national measures, including the US pleted by 31 March 1994. • sidies/support, prior government Meat Import Law, the Canadian tariff commitments, and disciplines for pro­ quota on boneless beef. US voluntary ex­ Panel on US CVD ducts other than large civil aircraft. port restraint agreements with Australia action on EC steel The Chairman, Mr. Mikael Lindstrôm and New Zealand, and the EC's reformof he Committee on Subsidies and (Sweden), called for more specific propo­ the Common Agricultural Policy in the TCountervailing Measures, on 4 June, sals at the next meeting in July. LJ beef sector. D established a dispute-settlement panel to examine a complaint by the European share the adjective "focal", while the Community against United States' defini­ Focus marks 100 English verb "to focus" has a close tive affirmative countervailing duty his issue marks the century edition French counterpart, "focaliser". Focus is against France. Germany and the UK con­ Tand the twelfth year of the GATT thus a name easily understandable in cerning certain hot-rolled Lead and Bis­ Focus Newsletter. Issue No. 1 February- both English and French, a real advant­ muth carbon steel products (published in March 1981 came out as an experimen­ age for a publication appearing in both the US Federal Register in January 1993 ). tal number with the following promise languages. We hope that our newsletter The EC charged that the US methodo­ to its readers: GATT Focus will live up to its name by logy of calculating the amount of subsidi­ Until now, there has been no continuous throwing some light on the work of zation had resulted in the determination of account of international efforts to main­ GATT, and its role in international excessive countervailing duties. This, it tain and enlarge an open world trading trade". said, violated the provisions of the Sub­ system. GATT FOCUS will try to fill this With Focus No. 3 (May 1981), the sidies Code. The United States did not gap, by describing how the member GATT Newsletter became established agree with the EC but said it would rather countries are jointly tackling trade as a regular and continuous record of state its arguments before the panel. LJ problems and issues in the framework of GATT activities. It replaced the issuance GATT. of GATT press releases to the general GATT organizes course for Why "Focus"? The first issue ex­ public. reforming economies plains: "From its Latin origin, meaning Focus No. 82 (July 1991) marked the or the first time, officials from the "hearth", or "fireplace",/0ci« has a prin­ entry of the newsletter into the desktop- Fnewly independent states in Central cipal meaning in English the point at publishing age. Computer production Asia have joined other senior trade offi­ which the image produced by a lens is has resulted in substantial savings in cials from Central and Eastern Europe in clearly-defined. English and French time and money. LJ GATT FOCUS

TNC Many developing-country TNC par­ ticipants hailed Mr. Sutherland's election GATT CALENDAR Continued from page 1 and expressed their full support and co­ The following is a tentative schedule two-way street," he said. operation. They included Egypt, speaking of meetings in GATT: The Chairman underlined that the "acid on behalf of the African Group; Ban­ test of the success or failure of efforts in gladesh, on behalf of the least-developed JULY the capitals to bring the Round back on countries; El Salvador, in the name of the track will have to be made at the multilat­ Latin-American and Caribbean countries: 1 WP on Accession of eral negotiating table. The concluding and , the coordinator of the de­ Chinese Taipei deals - or the end game - will have to be veloping countries in the GATT. The Eu­ 1-2 Textiles Surveillance Body; played out in Geneva, not elsewhere." ropean Community also pledged its full BOP Cttee (Israel) Mr. Sutherland said he would be work­ cooperation in bringing the Round to a ing closely with the TNC Chairman at successful conclusion. • 5-6 WP on Accession of Ministerial level, Uruguay"s Foreign Minister Sergio Enrique Abreau Bonilla. Honduras He also paid tribute to his predecessor by 5-7 Group on Environmental referring to the Draft Final Act of the Measures and Int 1 Trade Uruguay Round, which he said was the only available multilaterally acceptable 6 WP on Nordics/Baltic basis for concluding the Round, as "a States FTA testimony to Mr. Dunkel's guidance and leadership." 7-8 BOP Cttee: South Africa In concluding. Mr. Sutherland wel­ comed four new participants, which had 7-9 Sub-Crtee on Civil Aircraft recenth acceded to the GATT: Dominica. 8-9 WP on Ace of Mongolia Saint Lucia. Saint Vincent and the Gre­ nadines and Swaziland. He also proposed, 12-13 WP on Ace of Bulgaria and the TNC agreed, that in accordance with a recent decision by the GATT Coun­ The Chairman of the Contracting Parties, 15-16 WP on Ace of Slovenia cil, the Federal Republic of Yugoslavia Ambassador B.K. Zutshi. confirms with (Serbia and Montenegro) could not con­ his gavel the appointment of Mr. Suther­ 19-20 Council TPRM: Malaysia tinue the participation of the former land as the fourth Director-General of 21-22 GATT Council Yugoslavia in the Round and in the TNC. GATT. (Tania TanglGATT) 26,28 Cttee on Trade and Development Biographical Note SEPTEMBER Peter Denis Sutherland 7-8 Council TPRM: Kenya eter Sutherland was born on 25 April and . He is also P1946 and was educated at Gonzaga a member of the International Advisory 20-21 Cttees on Milk Powders, College, University College , and Board of Volvo and a member of the Milk Fat and Cheeses at the Honourable Society of the King's Board of Governors of the European Inns, Dublin. Of Irish nationality, Mr. Institute of Public Administration in 22-23 GATT Council Sutherland graduated in Civil Law and Maastricht. 22 Intl Dairy Products Council was admitted to the Irish Bar (King's In 1989, he was the Haffernan Visit­ Inns), the English Bar (Middle Temple) ing Fellow at the Kennedy School of 27-28 Council TPRM: India and the New York Bar. He was also Government at Harvard University. His admitted to practice before the Supreme current academic posts include Visiting 28-30 WP on China Court of the United States of America. Professor at University College, Dublin, OCTOBER From 1969 to 1981, he practised at the and Distinguished Visiting Fellow at the Bar, and thereafter served as the Attor­ Centre for European Policy Studies, 25-26 Council TPRM: Turkey ney General of Ireland and as a Member Brussels. of the Council of State until the end of Cttee on Anti-Dumping In 1988, he was the first EC Commis­ Week 1984 when he was nominated by the of 25 Cttee on Subsidies Government of Ireland as a Commis­ sioner to receive the Gold Medal of the sioner of the European Communities. European Parliament. His other awards 27-28 GATT Council From 1985 to 1989, he served in include the First European Law Prize Brussels as the Commissioner respon­ (Paris 1988), the Grand Cross of Civil sible for Competition Policy. During Merit (Spain 1989), and the Grand Cross GATT FOCUS of King Leopold II (Belgium 1989). this period, his other Commission dos­ Newsletter published 10 times a year in siers were Social Affairs, Education and His publications include Premier Jan­ English, French and Spanish by the In­ Relations with the European Parliament. vier 1993 ce qui va changer en Europe formation and Media Relations Divi­ Since 1989, he has been the Chairman (1989), and numerous articles in law sion of GATT. Centre William of pic. In addition, he journals. He is married and has three Rappard, 154 rue de Lausanne, 1211 is currently a board member of various children, and his leisure interests include Geneva 21, Switzerland. Tel. 7395111 companies, including British Petroleum reading and sport. ED FAX: 7395458 ISSN 0256-0119