GATT/1253
30 November 1979
GATT ANNUAL SESSION ACTS ON TOKYO ROUND RESULTS
AND SETS FUTURE WORK PROGRAMME
The GATT Contracting Parties, meeting in Geneva, have taken decisions
which bring into the GATT framework the agreements resulting from the Tokyo
H
ound of multilateral trade negotiations (1973-79), and have established
GATT;
s future work programme.
The decisions taken, and their significance for international trade in
the 1980s, were summed up by Mr. Olivier Long, GATT Director-General, at a
press conference in Geneva on 29 November. The text of his statement, and a
summary of the main decisions reached by the GATT Contracting Parties (member
States) at their thirty-fifth annual session from 26 to 29 November 1979. is
given below.
Statement by Mr. Olivier Long., 29 November 1979
For some years past, the sessions of the Contracting Parties have been
somewhat overshadowed by the Tokyo Round of multilateral trade negotiations.
Their results have hardly been such as to warrant a press conference,
particularly since the difficult., and in consequence, interesting, trade
problems have betn handled in the Council of permanent representatives.
But the session just ended has been different. It has certainly been
the most important held by the Contracting Parties for many years.
The session has had two major tasks, and it has accomplished both successfully
.
The first was to carry through the final stage of the Tokyo Round
negotiations, by bringing all the results of the negotiations into the GATT,
both as a legal framework and as a working institution.
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The second was to chart the course for GATT in the post-Tokyo Round
period.
As you all know, the Tokyo Round has been, both in its scope and its
participâtion, the largest trade negotiation ever undertaken. It was
formally launched in September 1973, but its origins go back even further,
to the late 1960s.
I shall not recite to you the list of agreements reached on tariff
reductions, on the abolition or regulation of non-tariff measures,, on changes
in the GATT rules. Most of them have been well known for some time, although
it is only recently that the last understandings in certain areas have been
worked out, and only just in the last few days that a second batch of tariff
reductions, this time largely by developing countries, has been agreed.^
Three important developing countries also succeeded in negotiating the terms
of their accession to GATT during the Tokyo Round; the Philippines signed
its Protocol of Accession two days ago, and we hope also to welcome Colombia
and Mexico before long.
What remained to be done at this session was to fit these results of the
Tokyo Round negotiations into the framework of GATT., in such a way that they
would meet the rules of the General Agreement; would respect the rights of
both signatories and non-signatories of particular agreements, and would
contribute to the coherence of the world trading system. It was also necessary
to ensure that unfinished business of the Tokyo Round would continue to
receive the necessary attention.
To do so has required some fairly intensive negotiation. I believe the
outcome has been very satisfactory. A series of consensus agreements has
been reached. One provides for the continuance, in a new committee within
GATT., of the negotiations on safeguards, which are generally recognized to
be the major piece of unfinished business of the Tokyo Round. Another,
partly linked to the first, provides for the examination of protective
measures affecting imports from developing countries, and sets up for this
purpose a sub-committee of GATT's Committee on Trade and Development. This
sub-committee will fulfil a commitment embodied in resolution 131 of the
UNCTAD conference at Manila in May 1979- Further decisions of the Contracting
Parties, also reached by consensus, will make an integral part of the GATT
rules the so-called ' Framework" agreements on preferences for developing
For information on the opening for acceptance of the Geneva (1979)
Tariff Protocol and of the Supplementary Tariff Protocol, see press release
GATT/12U1 of 11 July 1979 and GATT/1251 of 28 November 1979-
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countries, safeguards for development purposes, trade measures for balance-ofpayments
purposes, and dispute settlement. Another consensus decision establishes
the relationship with the GATT of the long list of agreements reached
on non-tariff measures, and on dairy products, meat and civil aircraft. This
decision reaffirms the responsibility of the Contracting Parties of overseeing
the operation of the system as a whole, and taking action as appropriate. It
defines the rights of GATT members which have not signed particular Tokyo
Round agreementsj and establishes guiding principles concerning such natters
as reporting to the Contracting Parties.
What these agreements add up to is that the final act of the trade
negotiations has been acted out, and that the way is now open to put the
results into effect. The book is closed on the Tokyo Round on all issues
except that of safeguards, and here the work will go forward in the framework
of GATT itself.
The second task of the session was to set the course for the future, by
adopting a new work programme for GATT.
The importance of this need hardly be underlined. What the session has
done, in accepting the work programme which I proposed to it, is to outline
the main elements in trade co-operation in GATT for the 1960s. The first
priority of the work programme, endorsed in practically every statement heard
at this session, is to put the agreed Tokyo Round results into full effect:
in other words, to put into operation a new, more liberal, and more disciplined
framework for world trade which is the fruit of these negotiations. At the
same time, the unfinished negotiations on safeguards must be continued.
Procedures are to be worked out for continuing the process of trade
liberalization. GATT's valuable data bank on tariff and non-tariff measures
in force, created for the Tokyo Round, will be kept up to date. Many speakers
have pointed to the issues which will require particular attention: agriculture,
quantitative restrictions, tariff escalation and so on. It has been
agreed to initiate consultations on how to further develop active co-operation
in the agricultural sector. Further work will be done on the relationship
between trade policy and structural adjustment, now fully recognized as a key
to growth in international trade and the world economy. There is agreement on
an overall approach in the GATT to the trade problems of developing countries,
with a clearly strengthened mandate for the Committee on Trade and Development,
and acknowledgement of the importance of a new round of trade negotiations
among developing countries.
In short, this session has marked, for GATT, both the close of one stage
in its activities and the opening of a new one. It brings to a successful end
the Tokyo Round negotiations on which our efforts have centred over the 1970s.
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It defines an effective and constructive rôle for GATT for the 1980's: ail
participants in the session have recognized that international trade is
likely to face many problems in the years ahead, hut that GATT and the
trading system are much better equipped to face them as a result of the
Tokyo Round.
* * * * *
Decisions taken by the 35th Session
of the GATT Contracting Parties
Geneva, 26-29 November 1979
I. Results of the Tokyo Round
(a) Framework Agreements
The negotiations in the Framework Group resulted in draft decisions on:
(i) Differential and more favourable treatment for developing
countries, reciprocity by developing countries in trade negotiations,
and their progressive fuller participation in GATT;
(ii) Trade measures taken for balance-of-payments purposes;
(iii) Safeguard action for development purposes;
(iv) Understanding on notification, consultations, dispute settlement
and surveillance in GATT.
These draft decisions were all adopted by consensus.
(b) Other Multilateral Agreements
(i) Agreement on Technical Barriers to Trade (often referred to as
the Standards Code).
(ii) Agreement on Government Procurement.
For brief summaries of all the Tokyo Round agreements, see "GATT
Activities in 1978 and Results of the Tokyo Round Multilateral Trade
Negotiations".
For more comprehensive information, see the Director-General's Report
on The Tokyo Round of Multilateral Trade Negotiations (195 PP-h GATT,
Geneva 1979. (Price US$10 or Sw F 17).
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(iii) Agreement on Interpretation and Application of Articles VI, XVI
and XXIII of the General Agreement (dealing with Subsidies and
Countervailing Duties).
(iv) Arrangement on Bovine Meat.
(v) International Dairy Arrangements.
(vi) Agreement on Implementation of Article VII of the General
Agreement (relating to Customs Valuation) and the Protocol to
this Agreement.
(vii) Agreement on Import Licensing Procedures.
(viii) Agreement on Trade in Civil Aircraft.
(ix) Agreement on Implementation of Article VI of the General
Agreement (Revised GATT Anti-Dumping Code).
On these agreements, the Contracting Parties took the following decision
"by consensus:
"l. The Contracting Parties reaffirm their intention to ensure the unity and
consistency of the GATT system, and to this end they shall oversee the
operation of the system as a whole and take action as appropriate.
2. The Contracting Parties note that as a result of the Multilateral Trade
Negotiations, a number of Agreements covering certain non-tariff measures and
trade in Bovine Meat and Dairy Products have been drawn up. They further
note that these Agreements will go into effect as between the parties to
these Agreements as from 1 January 1930 or 1 «January 198l as may be the case
and for other parties as they accede to these Agreements.
3. The Contracting Parties also note that existing rights and benefits under
the GATT of contracting parties not being parties to these Agreements,
including those derived from Article I, are not affected by these Agreements.
k. In the context of 1 and 3 above, the Contracting Parties would receive
adequate information on developments relating to the operation of each
Agreement and to this end there will be regular reports from the concerned
Committees or Councils to the Contracting Parties. The Contracting Parties
may request additional reports on any aspect of the various Committees' or
Councils' work.
5. Further, the Contracting Parties understand that interested non-signatory
contracting parties will be able to follow the proceedings of the Committees
or Councils in an observer capacity, and that satisfactory procedures for such
participation would be worked out by the Committees or Councils."
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(c) Safeguards
The full text of the decision by the Contracting Parties on continuance
of the negotiations on safeguards reads :
"The Contracting Parties stress the need for an agreement on an improved
multilateral safeguard system.
"The Contracting Parties reaffirm their intention to continue to abide
by the disciplines and obligations of Article XIX of the General Agreement.
"A Committee is established to continue discussions and negotiations,
taking into account the work already done, with the aim of elaborating
supplementary rules and procedures regarding the application of Article XIX
of the General Agreement, in order to provide greater uniformity and
certainty in the implementation of its provisions.
"The Committee will submit a report to the Contracting Parties by
30 June 1980.
"Membership of the Committee is open to all contracting parties and to
all participants in the Multilateral Trade Negotiations.ÎÇ
(d) Examination of Protective Measures Affecting Imports from Developing
Countries
The full text of the decision by the Contracting Parties reads:
"The Contracting Parties,
"Recalling that at the Fifth UNCTAD unanimous agreement was reached to
examine any case of future protective action by developed countries against
imports from developing countries,
"Decide that the Committee on Trade and Development establish a Subcommittee
to examine any case of future protective action by developed
countries against imports from developing countries in the light of relevant
provisions of the GATT, particularly Part IV thereof.
"This examination shall be without prejudice to the rights of
contracting parties under the GATT or the competence of other GATT bodies.
'The membership of the Sub-Committee shall be open to all
contracting parties. Developing countries not contracting parties to GATT
may, upon notification to the Director-General of GATT, participate in the
proceedings of the Sub-Committee in an observer capacity.
"The Sub-Committee will report on such examination to the Committee on
Trade and Development and through it to the Council.
"These arrangements will be reviewed and revised as appropriate."
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(e) Action by the Contracting Parties on the Tokyo Round tariff concessions
The Contracting Parties also took a decision on a technical matter
establishing negotiating rights arising from tariff concessions made in the
Tokyo Round.
II. The future GATT vork programme
The Contracting Parties agreed by consensus to adopt a proposal for the
GATT work programme put forward by the Director-General of GATT. The text of
this proposal is given below.
GATT WORK PROGRAMME
Proposal by the Director-General
The conclusion of the Multilateral Trade Negotiations is an important
event in the life of the GATT. The Contracting Parties will need to take
action on a number of points to ensure that results of the negotiations are
effectively implemented and to further work on the improvement of the trading
system. The main elements of the work programme for the post-MTN period are
listed below, it being understood that this list is not exhaustive and may be
reviewed.
1. Implementation of the results of the Multilateral Trade Negotiations
It is noted that the Contracting Parties have taken action regarding the
Agreements evolved in the Multilateral Trade Negotiations. The GATT Work
Programme should give immediate priority to the results of the MTN.
1.1 Tariff schedules
The tariff concessions negotiated in the MTN should be implemented
as agreed. The relevant schedules should be brought up to date. This
task would be greatly facilitated by the establishment of a Committee on
Tariff Concessions with a mandate to:
1. supervise the task of keeping the GATT schedules up to date;
2. supervise the staging of tariff reductions; and
3. provide a forum for discussion of questions relating to tariffs.
1.2 ''Framework" texts
The following action should be taken in order to ensure the
effective implementation of these texts.
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1. Without prejudice to action requested by the Contracting Parties
through the Council, primary responsibility for the supervision of the
implementation of points 1 and k of the "Framework" texts should be
given to the Committee on Trade and Development.
2. The agreement relating to the conduct of the regular and systematic
review of developments in the trading system as agreed in the Group
"Framework" and in the Trade Negotiations Committee, should be referred
to the Council, with the request that appropriate procedures be taken
up at an early meeting of the Council.
3. The Consultative Group of Eighteen should be requested to advise
the Council on the forum and modalities for carrying out the future
work in the area of export restrictions and charges as agreed in the
Group "Framework" and the Trade Negotiations Committee.
1.3 Agriculture
Questions relating to trade in agricultural products will continue
to be an important part of the work of the GATT and of its work
programme. In this context, it should also be noted that the Council
has agreed, in the light of the discussion and the recommendation in
the Trade Negotiations Committee to the Contracting Parties to further
develop active co-operation in the agricultural sector, to request the
Director-General to consult with interested delegations on this matter
and to report to the next regular session of the Contracting Parties.
2. Safeguards
Continued negotiations on safeguards constitute an essential element in
the GATT Work Programme and should be carried out as a matter of urgency in
accordance with the agreement reached in the Council fend approved by the
Contracting Parties on 28 November 1979) on this matter.
3. Continuation of the process of trade liberalization
The continuation of the process of trade liberalization should be
referred to the Council with the request that appropriate procedures be
elaborated, and in this context the secretariat should be requested to
update the relevant information.
h. Structural adjustment and trade policy
The Consultative Group of Eighteen should be requested to examine this
matter further and to advise the Council, and also, through it, the
Committee on Trade and Development, on the modalities for carrying out
further work in this area, taking into account the continuing rôle of the
Committee on Trade and Development.
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5- GATT and developing countries
The Contracting Parties should recognize the importance of this area and
that it is a priority area of work. Each point of the Programme listed so
far includes work in individual areas of particular interest to developing
countries. These form part and parcel of an overall approach to the problems
faced by developing countries. GATT should ensure that a coherent overall
approach be maintained and to this end the Council and the Committee on Trade
and Development should co-ordinate their activities on issues of common
concern.
5.1 The rôle of the Committee on Trade and Development should be
strengthened and should hover, inter alia,
1. work on trade policy and development policies including trade
liberalization in areas of special interest to developing
countries;
2. primary responsibility for supervision of the implementation
of points 1 and k of the framework"' texts (see paragraph 1.2
above);
3. examination of protective action by developed countries
against imports from developing countries;
h. work on structural adjustment and trade of developing
countries (see paragraph k above); and
5. special attention to the special problems of least developed
countries.
5.2 The importance of a new round of trade negotiations among developing
countries has been acknowledged. The Contracting Parties, through the
Committee on Trade and Development, should continue to follow developments
in this important area of activity.
5-3 The technical assistance activities of the GATT secretariat should
be continued and readapted to meet the requirements of the developing
countries in the context of the new Work Programme.
6. Other proposals for future work
The present programme of work does not exclude the future consideration
of additional elements, and may be reviewed by the Contracting Parties. It
is to be noted that certain delegations have presented some proposals for
additional items for future work of GATT in the Consultative Group of
Eighteen, which will continue to deal with these as well as any other
proposals as may be presented to it in the future.
END