Document symbol G/STR/8Document date 08/06/2012Doc # 12-3092Access level Public

WORLD TRADE

ORGANIZATION

 
  
 

G/STR/8

8 June 2012

 

(12-3092)

  

Working Party on

State Trading Enterprises

 		 

 

 

 

RECOMMENDATION ON THE FREQUENCY

OF NOTIFICATIONS

 

 

 On 8 June 2012, the Working Party adopted the following recommendation for action by the Council for Trade in Goods.

 

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1.  Article XVII:4 of GATT 1994, and paragraph 1 of the Understanding on the Interpretation of Article XVII of GATT 1994 (the Understanding) require Members to notify their state trading enterprises to the Council for Trade in Goods. GATT CONTRACTING PARTIES adopted on 9 November 1962 a decision establishing the periodicity of state trading notifications.1 This decision provides that new and full notifications of state trading enterprises are to be submitted every three years, with updating notifications to be submitted in the intervening years. Following the entry into force of the Marrakesh Agreement Establishing the WTO and the adoption of the Understanding, the Council for Trade in Goods decided to continue the periodicity of notifications set forth in the 1962 decision. In accordance with the Understanding, state trading notifications are reviewed by the Working Party on State Trading Enterprises on behalf of the Council for Trade in Goods.

2.  On 11 November 2003, the Working Party adopted a recommendation contained in document G/STR/5 regarding the frequency of notifications. This recommendation, approved by the Council for Trade in Goods on 26 November 2003, modified the frequency of notifications on state trading enterprises to new and full notifications on a biannual basis only. Previously, new and full notifications had been due every third year and updating notifications were required in the intervening years. The new frequency of notifications was to be implemented for a trial phase of four years, commencing on 30 June 2004.

3.  Paragraph 4 of recommendation G/STR/5 directed the Working Party to review the situation in respect of compliance with the new notification obligation and the frequency of notifications at the end of the four year trial phase. The objective of this review was to determine whether to extend the application of the recommendation, either as drafted or in a modified form, for a further period or an indefinite period. Accordingly, the Working Party conducted the review and observed that the period of application of the new notification requirement had been too short to provide the clarity needed to determine whether the new frequency of notifications was an improvement. On 3 October 2008, the Working Party adopted a recommendation contained in document G/STR/6 , concluding that it would be desirable to extend the application of the recommendation for two additional years until 30 June 2010.

4.  Paragraph 5 of the recommendation in document G/STR/6 directed the Working Party to review the situation with regard to compliance with the notification obligation and the frequency of notifications at the end of the two year extension period. Accordingly, the Working Party conducted the review and observed that a further two year trial period would be desirable. On 16 June 2010, the Working Party adopted a recommendation contained in document G/STR/7 , concluding that it would be desirable to extend the application of the recommendation for two additional years until 30 June 2012.

5.  Paragraph 6 of the recommendation in document G/STR/7 directed the Working Party to review the situation with regard to compliance with the notification obligation and the frequency of notifications at the end of the two year extension period. The objective of the review was to determine whether to extend the application of the recommendation, either as drafted in document G/STR/7 , referring to the original recommendation in document G/STR/5 , or in a modified form, for a further period or for an indefinite period. Accordingly, the Working Party conducted the review and observed that an indefinite extension of the application of the recommendation would be desirable.

6.  In light of the above considerations, the Working Party recommends to the Council for Trade in Goods that the application of the recommendation contained in document G/STR/7 , referring to document G/STR/5 , be extended indefinitely as follows:

(a)  This indefinite extension shall enter into force as of the year 2012, with the next new and full notification being due by 30 June 2014.

(b)  The guidelines for completing the questionnaire section of the Questionnaire on State Trading are those contained in G/STR/3/Rev.1 .

 

 

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1 BISD 11S/58.