Council for Trade in Goods - Report (2015) of the Council for Trade in Goods

report (2015) of the council for trade in goods

In accordance with the "Procedures for an Annual Overview of WTO Activities and for Reporting under the WTO" (WT/L/105), the Council for Trade in Goods is to report each year to the General Council on the activities in the Council as well as in the subsidiary bodies. The reports are to be "factual in nature, containing an indication of actions and decisions taken, with cross references to reports of subordinate bodies and could follow the model of the GATT 1947 Council reports to the CONTRACTING PARTIES".

Since its 2014 Annual Report (G/L/1094) was issued, the Council for Trade in Goods (CTG, or the Council) met three times in formal session, on the following dates: 26 March 2015 (G/C/M/122); 26 June 2015 (G/C/M/123); and 10 November 2015 (G/C/M/124[1]).

The subject matters raised and/or acted upon in the Council were as follows:

1   Election of Chairperson of the Council for Trade in Goods. 3

2   Appointment of Officers for the subsidiary bodies of the Council. 3

3   Matters of the Committee on Market Access. 3

3.1   Derestriction of Historical Bilateral Negotiating Documentation of the Tokyo Round. 3

3.2   Collective waiver requests on the introduction of the Harmonized System 2002, 2007 and 2012  3

4   Waivers under Article IX of the WTO Agreement. 4

4.1   Introduction of Harmonized System 2002 changes into WTO Schedules of Tariff Concessions: 4

4.1.1   Collective request for a waiver extension (G/C/W/715) 4

4.2   Introduction of Harmonized System 2007 changes into WTO Schedules of Tariff Concessions: 4

4.2.1   Collective request for a waiver extension (G/C/W/716/Rev.1) 4

4.3   Introduction of Harmonized System 2012 changes into WTO Schedules of Tariff Concessions: 4

4.3.1   Collective request for a waiver (G/C/W/717) 4

4.4   United States of America – Request for a waiver relating to the Caribbean Basin Economic Recovery Act (CBERA as amended) (G/C/W/708) 4

4.5   Canada – Request for an Extension of the Waiver for the Caribbean Initiative: CARIBCAN (G/C/W/710) 4

4.6   Jordan – Request for a Waiver Relating to the Transitional Period for the Elimination of the Export Subsidy Program for Jordan (G/C/W/705, G/C/W/705/Corr.1, and G/C/W/705/Rev.1) 5

4.7   United States of America – Request for a Waiver – Africa Growth and Opportunity Act (AGOA as amended) (G/C/W/713) 5

5   European Union enlargement: Procedures under Article XXVIII:3 of GATT 1994 (G/L/1051/Add.3 and G/L/1051/Add.4). 5

5.1   Enlargement of the European Union on 1 July 2013 (G/L/1051/Add.3 and G/L/1051/Add.4) 5

5.2   Enlargement of the European Union: Procedures under Article XXVIII of GATT 1994 – Request from Brazil 6

6   Accession of the republic of Armenia and of the Kyrgyz Republic to the eurasian economic union (EAEU): procedures under article XXVIII:3 of gatt 1994 (G/L/1110 anD G/L/1110/Add.1, and G/L/1137, respectively). 6

7   Notification of Regional Trade Agreements. 6

8   Notifications. 7

8.1   Status of notifications under the provisions of the Agreements in Annex 1A of the WTO Agreement 7

8.2   Notifications of actions taken under the 1999 Waiver for Preferential Tariff Treatment for Least Developed Countries (WT/L/304 and WT/L/759) 7

9   Indonesia's Import and export Restricting Policies and Practices – Request from the European Union, Japan, and the United States of america. 7

10   Russian Federation – trade restricting measures. 7

11   Nigeria – Local Content Measures in Oil and Gas – request from the European Union and the United States of America. 8

12   Nigeria – Restriction/Ban Imposed by Nigeria to Imports of Sea Products – Request from Iceland and norway. 8

13   Nigeria – Import restriction MEASURES – request from Chile, the European Union, Iceland, Norway, and uruguay. 8

14   Ecuador – import RESTRICTING measures – request from Japan.. 8

15   Pakistan – discriminatory taxes – request from the european union and the United States of America. 9

16   China – issues related to trade in seafood – request from Norway. 9

17   illicit trade: fighting money laundering in INTERNATIONAL trade – statement from Colombia. 9

18   Ukraine – issues related to customs valuation – rEquest from Norway. 9

19   India – port closures for apple imports – request from Chile, the European Union, New Zealand, and the United States of America. 10

20   Brazil – industrial nitrocellulose non‑automatic import licences – request from the European Union.. 10

21   Work Programme on Electronic Commerce. 10

22   ISSUES CONSIDERED UNDER AGENDA ITEM "OTHER BUSINESS". 10

22.1   Fostering Participation of Micro‑, Small‑, and Medium‑Sized Enterprises (MSMEs) in Regional Global Trade – Statement by the Philippines. 10

22.2   Status of the Election Process of the Permanent Group of Experts (PGE) under the Committee on Subsidies and Countervailing Measures (SCM) – Statement by Japan. 10

22.3   China – Information about the expiry date of Section 15(a)(ii) of the Protocol on the Accession of the People's Republic of China. 11

23   Consideration of annual reports of subsidiary bodies of the Council for Trade in Goods. 11

24   Adoption of the Annual Report of the Council for Trade in Goods to the General Council. 11

 

1  Election of Chairperson of the Council for Trade in Goods

1.1.  At its meeting of 26 March, the Council elected Ambassador Héctor CASANUEVA (Chile) as its Chairperson for 2015.

2  Appointment of Officers for the subsidiary bodies of the Council

2.1.  At its meeting of 26 March, the Council agreed on the nominations of the following persons as Chairpersons of its subsidiary bodies for 2015:

Subsidiary Body

Chairperson

Market Access

Miss Krizia Denisse MATTHEWS (Panama)

Agriculture

Mr Michael WAMAI (Uganda)

Sanitary and Phytosanitary Measures

Mr Felipe HEES (Brazil)

Technical Barriers to Trade

Miss Alana Maria LANZA SUAZO (Honduras)

TRIMs

Mr Zaher AL-QATARNEH (Jordan)

Anti-Dumping Practices

Mr Hamed Mahmoud EL ETREBY (Egypt)

Subsidies and Countervailing Measures

Mr Mitsuhiro FUKUYAMA (Japan)

Safeguards

Mr Víctor ECHEVARRÍA UGARTE (Spain)

Import Licensing

Miss Carrie I-Jen WU (Chinese Taipei)

Rules of Origin

Mr Christian WEGENER (Denmark)

Customs Valuation

Mr Ping LIU (China)

State Trading Enterprises

Mr Andrew JORY (Australia)

Committee of Participants on the Expansion of Trade in Information Technology Products (ITA Committee)

Mr Andrew STAINES (UK)

 

2.2.  At the same meeting, the Council agreed to proceed on the understanding that, as concerns the Vice‑Chairpersons, it would be for the subsidiary bodies to decide if they needed a Vice‑Chairperson in cases where the option existed under the respective Agreement and/or rules of procedure, and for the respective Chairperson to hold the necessary consultations.

3  Matters of the Committee on Market Access

3.1  Derestriction of Historical Bilateral Negotiating Documentation of the Tokyo Round

3.1.  At its meeting of 10 November, the Council considered and approved the draft decision on the "Derestriction of Historical Bilateral Negotiating Documentation of the Tokyo Round" contained in document G/MA/W/115/Rev.1, which was previously discussed and approved by the Committee on Market Access (CMA) on 29 September 2015. This Decision, once approved, was forwarded to the General Council for adoption.

3.2  Collective waiver requests on the introduction of the Harmonized System 2002, 2007 and 2012

3.2.  At its meeting of 10 November, the Council considered three collective waiver requests on the introduction of Harmonized System 2002, 2007 and 2012 changes into WTO Schedules of Concessions (see Point 4 below).

4  Waivers under Article IX of the WTO Agreement

4.1  Introduction of Harmonized System 2002 changes into WTO Schedules of Tariff Concessions:

4.1.1  Collective request for a waiver extension (G/C/W/715)

4.1.  At its meeting of 10 November, the Council considered a collective request for an extension of the waiver in connection with the introduction of HS2002 changes to the Schedules of Concessions. The Council approved the waiver request and recommended that the draft decision (G/C/W/715) be forwarded to the General Council for adoption.

4.2  Introduction of Harmonized System 2007 changes into WTO Schedules of Tariff Concessions:

4.2.1  Collective request for a waiver extension (G/C/W/716/Rev.1)

4.2.  At its meeting of 10 November, the Council considered a collective request for an extension of the waiver in connection with the introduction of HS 2007 changes to the Schedules of Concessions. The Council approved the waiver request and recommended that the draft decision (G/C/W/716/Rev.1) be forwarded to the General Council for adoption.

4.3  Introduction of Harmonized System 2012 changes into WTO Schedules of Tariff Concessions:

4.3.1  Collective request for a waiver (G/C/W/717)

4.3.  At its meeting of 10 November, the Council considered a collective request for a waiver in connection with the introduction of HS 2012 changes to the Schedules of Concessions. The Council approved the waiver request and recommended that the draft decision (G/C/W/717) be forwarded to the General Council for adoption.

4.4  United States of America – Request for a waiver relating to the Caribbean Basin Economic Recovery Act (CBERA as amended) (G/C/W/708)

4.4.  At its meeting of 26 March the Council considered a waiver request and a draft waiver decision submitted by the United States of America relating to the Caribbean Basin Economic Recovery Act (CBERA) contained in document G/C/W/708. The Council took note of the statement made by the United States of America and of the statements made by the European Union, India, Jamaica, Trinidad and Tobago, Dominica, and Haiti, approved the waiver request contained in document G/C/W/708, and agreed to forward the draft waiver decision contained therein to the General Council for adoption.

4.5  Canada – Request for an Extension of the Waiver for the Caribbean Initiative: CARIBCAN (G/C/W/710)

4.5.  At its meeting of 26 March the Council considered a waiver request and a draft waiver decision relating to the extension of Canada's waiver for the Caribbean initiative: CARIBCAN (document G/C/W/710). The Council took note of the statement made by Canada to introduce its request and of the statements made by Jamaica, Dominica, Trinidad and Tobago, Haiti, and the European Union. The Council agreed to revert to this issue at its next meeting.

4.6.  At its meeting of 26 June the Council considered and approved the waiver request submitted by Canada in document G/C/W/710 and agreed to forward the draft waiver decision contained therein to the General Council for adoption.

4.6  Jordan – Request for a Waiver Relating to the Transitional Period for the Elimination of the Export Subsidy Program for Jordan (G/C/W/705, G/C/W/705/Corr.1, and G/C/W/705/Rev.1)

4.7.  At its meeting of 26 March, as agreed by the CTG meeting of 17 November 2014, the Council continued considering Jordan's waiver request and draft waiver decision concerning the Transitional Period for the Elimination of the Export Subsidy Program for Jordan (G/C/W/705). The Chairperson informed the Council that, according to Article IX:3(b) of the Marrakesh Agreement, on 20 February 2015 he had made a factual report to the General Council informing it that this issue had been under the CTG's consideration for more than 90 days, and that this Council would continue considering this request. He also drew Members' attention to document G/C/W/705/Corr.1 submitted by Jordan clarifying the exact date of the extension of the transitional period. The Council took note of the statement made by Jordan; and of the statements made by Australia; Kingdom of Bahrain; Canada; China; El Salvador; the European Union; Guatemala; India; Japan; the Republic of Korea; the State of Kuwait; Nepal; New Zealand; Oman; Pakistan; Qatar; the Kingdom of Saudi Arabia on behalf of the Arab Group; Sri Lanka; Switzerland; Chinese Taipei; Turkey; Uganda; and the United States of America. The Council agreed to revert to this issue at its meeting in June 2015.

4.8.  At its meeting of 26 June Jordan informed the Council of the further consultations it had had with interested delegations and the national stakeholders. Jordan also introduced document G/C/W/705/Rev.1 according to which the number of years indicated in its initial waiver request had been reduced to only four years after 2015, and specifying that in the meanwhile Jordan would design and implement an entirely new WTO‑consistent subsidy programme to benefit SMEs. The Council took note of Jordan's statement and of the statements made by Australia; Kingdom of Bahrain; Canada; China; Egypt; the European Union; Guatemala; Japan; Republic of Korea; New Zealand; Norway; Oman; Pakistan; Qatar; Kingdom of Saudi Arabia on behalf of the Arab Group; Switzerland; Chinese Taipei; Turkey; and the United States of America. The Council also agreed to revert to this issue at its next meeting in November 2015.

4.9.  At its meeting of 10 November Jordan informed the Council of the further consultations it had had with interested delegations and the Secretariat, and of the technical assistance activity that had taken place in Amman. Jordan also introduced document G/C/W/705/Rev.2, that further reduced, to only three years, or up to 2018, the extension period initially requested for the purpose of phasing out Jordan's subsidy programme and replacing it with a new and WTO‑consistent programme, the details of which had been indicated in the programme attached to the document. In his closing remarks the Chair indicated that Jordan's request continued to have wide support among the WTO membership. Some Members still held systemic concerns, even though they recognized Jordan's unprecedented situation, and nevertheless welcomed Jordan's efforts, openness, and transparency to address their concerns, and particularly welcomed the "detailed action plan" attached to the revised request. The Council agreed to revert to this issue at its next meeting.

4.7  United States of America – Request for a Waiver – Africa Growth and Opportunity Act (AGOA as amended) (G/C/W/713)

4.10.  At its meeting of 10 November the Council considered a waiver request and a draft waiver decision relating to the extension of the Africa Growth and Opportunity Act (AGOA as amended), submitted by the United States of America and contained in document G/C/W/713. The Council took note of the statement made by the United States of America, approved the waiver request, and agreed to forward the draft waiver decision contained in document G/C/W/713 to the General Council for adoption.

5  European Union enlargement: Procedures under Article XXVIII:3 of GATT 1994 (G/L/1051/Add.3 and G/L/1051/Add.4)

5.1  Enlargement of the European Union on 1 July 2013 (G/L/1051/Add.3 and G/L/1051/Add.4)

5.1.  At the meeting of 26 March the Council agreed to the extension of the deadline set out in the communication G/L/1051/Add.3 from the European Union, or until 1 January 2016. The Council also took note of the statements made by Argentina; Australia; Brazil; New Zealand; and Uruguay about the pace of the negotiations under Article XXVIII (Croatia's accession to the EU), and of the responses from the European Union.

5.2.  At the meeting of 10 November the Council agreed to the extension of the deadline set out in the communication G/L/1051/Add.4 from the European Union, or until 1 July 2016. The Council also took note of the information provided by the European Union on the compensatory offers it had submitted in 2014.

5.2  Enlargement of the European Union: Procedures under Article XXVIII of GATT 1994 – Request from Brazil

5.3.  At the meeting of 26 March the Council took note of the statement made by Brazil concerning the pace and content of the bilateral negotiations towards a mutually satisfactory agreement under GATT Article XXVIII. The Council also took note of the statements made by Argentina, Australia, New Zealand, and Uruguay, and of the responses from the European Union.

5.4.  At its meeting of 10 November, the Council took note of the statement made by Brazil, echoed by Argentina, Australia, New Zealand, and Uruguay, and of the responses from the European Union.

6  Accession of the republic of Armenia and of the Kyrgyz Republic to the eurasian economic union (EAEU): procedures under article XXVIII:3 of gatt 1994 (G/L/1110 anD G/L/1110/Add.1, and G/L/1137, respectively)

6.1.  At the meeting of 26 March the Council agreed to the extension of the deadline set out in the communication G/L/1110 from the Republic of Armenia (until 2 January 2016). The Council also took note of the statements made by Canada; Hong Kong, China; Japan; Switzerland; Chinese Taipei; and Ukraine; and of the responses from Armenia.

6.2.  At its meeting of 10 November the Council agreed to the extension of the deadline set out in the communication G/L/1110/Add.1 from the Republic of Armenia (until 2 January 2017). The Council also took note of the statements made by Chinese Taipei, the European Union, Japan, and Ukraine.

6.3.  At that meeting the Council also agreed to the extension of the deadline set out in the communication G/L/1137 from the Kyrgyz Republic (until 9 November 2016). The Council also took note of the statement made by the European Union.

7  Notification of Regional Trade Agreements

7.1.  At its meetings on 26 March, 26 June, and 10 November, the Council was informed of the following notifications on regional trade agreements:

‑        Free Trade Agreement between the EFTA States and the Central American States – Costa Rica and Panama (WT/REG357/N/1);

 

‑        Eurasian Economic Union (the EAEU) between the Russian Federation, Belarus and Kazakhstan (WT/REG358/N/1);

 

‑        Free Trade Agreement between the Republic of Korea and Australia (WT/REG359/N/1);

 

‑        Free Trade Agreement between the EFTA States and Bosnia and Herzegovina (WT/REG360/N/1);

 

‑     Economic Partnership Agreement between Japan and Australia (WT/REG361/N/1);

 

‑     Free Trade Agreement between Canada and the Republic of Korea (WT/REG362/N/1);

 

‑     Accession of Armenia to the Eurasian Economic Union (WT/REG363/N/1);

 

‑     Free Trade Agreement between Canada and Honduras (WT/REG364/N/1);

 

-     Free Trade Agreement (FTA) between Chile and Viet Nam (WT/REG365/N/1); and

 

-        Accession of the Kyrgyz Republic to the Treaty on the Eurasian Economic Union (EAEU) (WT/REG366/N/1).

 

8  Notifications

8.1  Status of notifications under the provisions of the Agreements in Annex 1A of the WTO Agreement

8.1.  At its meeting of 26 March, the Council took note of the latest revision of the status of notifications contained in document G/L/223/Rev.22.

8.2  Notifications of actions taken under the 1999 Waiver for Preferential Tariff Treatment for Least Developed Countries (WT/L/304 and WT/L/759)

8.2.  At its meeting of 10 November, the Council took note of the notification submitted by Thailand in document G/C/W/714 – WT/COMTD/N/46 on the preferential tariff treatment for Least Developed Countries (LDCs).

9  Indonesia's Import and export Restricting Policies and Practices – Request from the European Union, Japan, and the United States of america

9.1.  At its meeting of 26 March the Council took note of the statements made by Australia; Brazil; Canada; Chile; the European Union; Japan; New Zealand; Chinese Taipei; and the United States of America reiterating their continued concerns about Indonesia's lack of transparency and use of protectionist measures, including import entry restrictions, non‑automatic licensing requirements, export restrictions, discriminatory taxation, local content requirements, and of the law on distribution and the Industry and Trade Laws. Concerns also referred to the statements made by members of the new government about the reduction of imports, and the increase of exports to balance both the trade and current accounts. The Council also took note of the responses from Indonesia.

9.2.  At its meeting of 26 June the Council took note of the statements made by Australia; Brazil; Canada; the European Union; Japan; New Zealand; Chinese Taipei; and the United States of America reiterating the concerns already raised in the CTG and at the Committees on Import Licensing, TBT, TRIMs, and SPS, about Indonesia's lack of transparency and use of protectionist measures, which included import entry restrictions, non‑automatic licensing requirements, export restrictions, discriminatory taxation, local content requirements, and of the law on distribution and the Industry and Trade Laws. The Council also took note of the responses from Indonesia.

9.3.  At its meeting of 10 November, the Council took note of the statements made by the European Union, Japan, and the United States of America, supported by Australia, Brazil, Canada, Chinese Taipei, New Zealand, Norway, and Switzerland, on their continued concerns about Indonesia's increased trade and investment restrictions affecting a broad range of products. The Council also took note of the responses from Indonesia.

10  Russian Federation – trade restricting measures

10.1.  At its meeting of 26 March the Council considered this issue at the request of the delegations of the European Union and Japan. The Council took note of the statements made by Australia; Canada; the European Union; Japan; Republic of Korea; New Zealand; Chinese Taipei; Ukraine; and the United States of America regarding their continued concerns over the trade restricting measures applied by the Russian Federation, such as the control of freight and lorries at the Russian border; transit restriction measures affecting agricultural goods; local content requirements in the industrial assembly programme to obtain preferential treatment; import tariffs on refrigerators; lack of transparency regarding border measures; lack of adherence to accession commitments; tariff treatment applied to certain agricultural and manufactured goods; and local content requirements applied to automobiles and telecommunication equipment. The Council also took note of the responses from the Russian Federation.

10.2.  At its meeting of 26 June the Council considered this issue at the request of the delegation of Japan. The Council took note of the statements made by Australia; Canada; the European Union; Japan; New Zealand; and the United States of America on their continued systemic and commercial concerns about the resolutions adopted by the Russian Federation providing subsidies to the automobile producers in four specific areas; the lack of transparency and responses concerning the bans and controls imposed at the Russian border; the lack of implementation of the Russian Federation's accession commitments; and the industrial policies which favoured Russian products at the expense of competition. The Council also took note of the responses from the Russian Federation.

11  Nigeria – Local Content Measures in Oil and Gas – request from the European Union and the United States of America

11.1.  At its meeting of 26 March, the Council took note of the statements made by Australia; the European Union; Japan; and the United States of America reiterating their concerns about the Local Content Act of 2010, the review of Schedule A of such Law and the lack of responses from Nigeria to the written questions posed to it at the TRIMs Committee. The Council also took note of the responses from Nigeria.

11.2.  At its meeting of 26 June, the Council took note of the statements made by Australia; the European Union; Norway; and the United States of America, and reiterated their longstanding concerns about the Local Content Act of 2010 and its revised Bill which required mandatory use of locally manufactured products in the oil and gas industry, and about how Nigeria intended to achieve the goal of enhancing domestic capacity in its oil and gas industry through this Law. The Council also took note of the responses from Nigeria.

12  Nigeria – Restriction/Ban Imposed by Nigeria to Imports of Sea Products – Request from Iceland and norway

12.1.  At its meeting of 26 March, the Council took note of the statements made by the European Union; Iceland; Norway; the United States of America; and Uruguay, reiterating once again their concerns about the lack of transparency and predictability of Nigeria's regime applied to imports of fish and fish products and the possible new fish import policy that Nigeria was preparing. The Council also took note of the statement made by Nigeria.

13  Nigeria – Import restriction MEASURES – request from Chile, the European Union, Iceland, Norway, and uruguay

13.1.  At its meeting of 10 November, the Council took note of the statements made by Chile, the European Union, Iceland, Norway, and Uruguay, supported by Malaysia, Switzerland, Thailand, and the United States of America about a recent restriction applied to a group of 41 products for which foreign exchange transactions were prohibited. This affected imports of fish as well as agricultural products, plastics, aircraft and aircraft parts, and metal and metal products. Under this new agenda item, concerns were also expressed with regard to the local content requirements in Nigeria's oil and gas industry, an issue already raised at the CTG and at the TRIMs Committee. The Council also took note of the statement made by Nigeria.

14  Ecuador – import RESTRICTING measures – request from Japan

14.1.  At its meeting of 26 March, the Council took note of the statements made by Canada; the European Union; Japan; and the United States of America, expressing concerns about the restricting measures on automobiles adopted by Ecuador since 2012, which had been extended to end–December 2015 and justified by Ecuador under GATT Article XX(b); however, a different treatment was applied to imported assembled cars and to CKD assembled cars circulating in Ecuador. The Council also took note of the systemic concerns raised by Colombia; Guatemala; Japan; Mexico; Panama; Peru; and the United States of America about Ecuador's Resolution 11‑2015 establishing a surcharge in the form of temporary taxes for balance of payment reasons on a wide range of goods; Ecuador had justified such measures under GATT Article XVIII:B but it had already applied similar measures in 2009. The Council took note of the statement made by Ecuador on these issues.

14.2.  At its meeting of 26 June the Council took note of the statements made by Canada; Chile; Colombia; Costa Rica; the European Union; Israel; Japan; Republic of Korea; Mexico; Panama; Chinese Taipei; the United States of America; and Uruguay, reiterating their concerns expressed at the previous meeting about the measures applied by Ecuador to the automobile sector and about the tariff surcharge imposed by Ecuador as from 11 March 2015 for balance of payment purposes. The Council also took note of the statement made by the Dominican Republic explaining the situation faced by Ecuador as it did not have a Central Bank; and of the statement made by Ecuador.

14.3.  At its meeting of 10 November, the Council took note of the statement made by Japan, echoed by Canada, Korea, Mexico, and the United States of America, over the restricting measures on automobiles adopted by Ecuador since 2012, which had been extended to end‑December 2015. Chile, Colombia, the European Union, Japan, Panama, Peru, Switzerland, and the United States of America also reiterated their systemic concerns about Resolution 11‑2015 that established a surcharge in the form of temporary taxes on a wide range of products. The Council also took note of Ecuador's answers.

15  Pakistan – discriminatory taxes – request from the european union and the United States of America

15.1.  At its meeting of 26 June, the Council took note of the statements made by Canada; the European Union; Norway; Switzerland; and the United States of America expressing concerns over Pakistan's Regulatory Order No. 1125 on domestic sales taxes, which covered a large number of products destined for industrial use and retail sale such as apparel, footwear, leather, and sporting goods. The Regulatory Order imposed a sales tax of 17% upon imported goods, while similar domestically produced goods were taxed only at 5%; these ran counter to GATT Article III. The Council also took note of the statement made by Pakistan.

15.2.  At its meeting of 10 November, the Council took note of the statements made by the European Union and the United States of America, echoed by Canada, Japan, and Switzerland, reiterating their concerns over Pakistan's Regulatory Order No. 1125 on domestic sales taxes. Delegations indicated that this issue had also been raised at the Committee on Market Access and during Pakistan's Trade Policy Review (TPR). The Council also took note of Pakistan's responses.

16  China – issues related to trade in seafood – request from Norway

16.1.  At its meeting of 10 November, the Council took note of the statement made by Norway, echoed by the European Union, expressing concerns over China's measures established since 2010 that included quarantine and testing procedures, import licences for salmon, and lack of indication about the list of companies authorized to export seafood to China. The Council also took note of the responses from China.

17  illicit trade: fighting money laundering in INTERNATIONAL trade – statement from Colombia

17.1.  At its meeting on 10 November, the Council took note of the statement made by Colombia presenting the conclusions of the Panel on Illicit Trade and Money Laundering in International Trade that took place at the 2015 WTO Public Forum, and to include this issue on the WTO agenda. The Council also took note of the statements made by Chile, Costa Rica, the European Union, Guatemala, Mexico, and Peru.

18  Ukraine – issues related to customs valuation – rEquest from Norway

18.1.  At its meeting of 10 November the Council took note of the statements made by Norway, Iceland, and Switzerland on Resolution 724, which permitted the use of indicative prices for customs valuation purposes. The Council also took note of the statement made by Ukraine.

19  India – port closures for apple imports – request from Chile, the European Union, New Zealand, and the United States of America

19.1.  At its meeting of 10 November the Council took note of the statements made by Chile, the European Union, New Zealand, and the United States of America, supported by China, concerning India's decision, adopted in September 2015, to limit imports of apples to only one port (Nhava Sheba), an issue that had also been raised at the Committees on Agriculture, Import Licensing, Sanitary and Phytosanitary Measures, and TBT. The Council also took note of the statement made by India.

20  Brazil – industrial nitrocellulose non‑automatic import licences – request from the European Union

20.1.  At its meeting of 10 November the Council took note of the statement made by the European Union over Brazil's import licensing requirements to import industrial nitrocellulose (NC), an issue in which the Ministry of Defence of Brazil had also been involved. It also took note of the statement made by Brazil. When adopting this Annual Report, Brazil requested, and the European Union accepted, that the title of this item be changed to "Industrial Nitrocellulose Non‑Automatic Import Licences", instead of "Industrial Nitrocellulose Import Ban" as indicated in the meeting's agenda.

21  Work Programme on Electronic Commerce

21.1.  At its meeting of 26 March, the Chairperson reminded delegations that Ministers in Bali agreed, first, to continue with the positive work under the Work Programme on E‑Commerce based on its existing mandate and guidelines and on the basis of proposals submitted by Members in the respective WTO bodies; second, to instruct the General Council and its relevant bodies, including this Council, to continue to reinvigorate this work, especially under the initiatives taken in relation to commercial issues, development, and evolving technologies; and third, that any relevant body of the Work Programme might explore appropriate mechanisms to address the relationship between electronic commerce and development in a focused and comprehensive manner. He invited delegations to express their opinions and to make suggestions as to how to work on the preparations of the periodic reviews to be held in the General Council at its session of July 2015. The Chairperson also informed the Council that, on 16 February 2015, the 10th Dedicated Session on E‑commerce had taken place, where Members had expressed varied views on the way forward on possible outcomes for MC10, and where delegations had emphasized the importance of a bottom‑up approach; he also indicated that a background information note had been prepared by the Secretariat. The Council also took note of the statement made by Canada.

21.2.  At its meeting on 26 June, the Chairperson recalled the Bali mandate on the Work Programme on E‑commerce and invited delegations to make further comments on this issue. In the absence of any comments he informed the Council that he, on his own responsibility, would make a factual report to the General Council on the discussions held in the Goods Council.[2]

22  ISSUES CONSIDERED UNDER AGENDA ITEM "OTHER BUSINESS"

22.1  Fostering Participation of Micro‑, Small‑, and Medium‑Sized Enterprises (MSMEs) in Regional Global Trade – Statement by the Philippines

22.1.  At its meeting of 26 June, the Council took note of the statement made by the Philippines to introduce this issue at the WTO, and of the statement made by Malaysia on behalf of ASEAN.

22.2  Status of the Election Process of the Permanent Group of Experts (PGE) under the Committee on Subsidies and Countervailing Measures (SCM) – Statement by Japan

22.2.  At its meeting of 26 June, the Council took note of the statement made by Japan about the status of the election process of a member of the PGE of the SCM Committee. It also took note of the statements made by Thailand and Turkey.

22.3  China – Information about the expiry date of Section 15(a)(ii) of the Protocol on the Accession of the People's Republic of China

22.3.  At its meeting of 10 November China informed the Council that Section 15(a)(ii) of its Protocol of Accession would expire on 11 December 2016 and indicated that, consequently, Members using the surrogate or analogue country methodology in their anti‑dumping investigations against China should take the necessary steps to bring their legislation into line with the new conditions after the expiry date of Section 15.

23  Consideration of annual reports of subsidiary bodies of the Council for Trade in Goods

23.1.  At its meeting of 10 November, the Council took note of the annual reports of its subsidiary bodies.[3]

24  Adoption of the Annual Report of the Council for Trade in Goods to the General Council

24.1.  At its meeting of 10 November, the Council adopted its Annual Report (2015) to the General Council.

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[1] To be issued.

[2] Document G/C/56.

[3] Agriculture (G/L/1126); TRIMs (G/L/1123); Subsidies and Countervailing Measures (G/L/1133); Anti‑dumping (G/L/1134); Safeguards (G/L/1130 and G/L/1130/Corr.1); Market Access (G/L/1131/Rev.1); Import Licensing (G/L/1132); Customs Valuation (G/L/1135); Sanitary and Phytosanitary Measures (G/L/1129); ITA (G/L/1125); Preshipment Inspection and Independent Entity (G/L/1136); Rules of Origin (G/L/1127 and G/RO/77); Technical Barriers to Trade (G/L/1138); and Working Party on State Trading Enterprises (G/L/1124).