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- UNDERSTANDING ON THE INTERPRETATION OF ARTICLE XXIV OF THE
- GENERAL AGREEMENT ON TARIFFS AND TRADE 1994
-
- Article XXIV:12
-
- 13. Each Member is fully responsible under the GATT 1994 for the
- observance of all provisions of the GATT 1994, and shall take
- such reasonable measures as may be available to it to ensure such
- observance by regional and local governments and authorities
- within its territory.
-
- 14. The provisions of Articles XXII and XXIII of the GATT 1994
- as elaborated and applied by the Understanding on Rules and
- Procedures Governing the Settlement of Disputes may be invoked in
- respect of measures affecting its observance taken by regional or
- local governments or authorities within the territory of a
- Member. When the Dispute Settlement Body has ruled that a
- provision of the GATT 1994 has not been observed, the responsible
- Member shall take such reasonable measures as may be available to
- it to ensure its observance. The provisions relating to
- compensation and suspension of concessions or other obligations
- apply in cases where it has not been possible to secure such
- observance.
-
-
- AGREEMENT ON THE APPLICATION OF
- SANITARY AND PHYTOSANITARY MEASURES
-
- Implementation
-
- 45. Members are fully responsible under this Agreement for the
- observance of all obligations set forth herein. Members shall
- formulate and implement positive measures and mechanisms in
- support of the observance of the provisions of this Agreement by
- other than central government bodies. Members shall take such
- reasonable measures as may be available to them to ensure that
- non-governmental entities within their territories, as well as
- regional bodies in which relevant entities within their
- territories are Members, comply with the relevant provisions of
- this Agreement. In addition, Members shall not take measures
- which have the effect of, directly or indirectly, requiring or
- encouraging such regional or non-governmental entities, or local
- governmental bodies, to act in a manner inconsistent with the
- provisions of this Agreement. Members shall ensure that they
- rely on the services of non-governmental entities for
- implementing sanitary or phytosanitary measures only if these
- entities comply with the provisions of this Agreement.
-
-
- Article 3
-
- Preparation, Adoption and Application of Technical Regulations
- by Local Government Bodies and Non-Governmental Bodies
-
- With respect to their local government and non-governmental
- bodies within their territories:
-
- 3.1 Members shall take such reasonable measures as may be
- available to them to ensure compliance by such bodies with the
- provisions of Article 2, with the exception of the obligation to
- notify as referred to in paragraphs 9.2 and 10.1 of Article 2.
-
- 3.2 Members shall ensure that the technical regulations of local
- governments on the level directly below that of the central
- government in Members are notified in accordance with the
- provisions of Article 2, paragraphs 9.2 and 10.1, noting that
- notification shall not be required for technical regulations the
- technical content of which is substantially the same as that of
- previously notified technical regulations of central government
- bodies of the Member concerned.
-
- 3.3 Members may require contact with other Members, including
- the notifications, provision of information, comments and
- discussions referred to in paragraphs 9 and 10 of Article 2, to
- take place through the central government.
-
- 3.4 Members shall not take measures which require or encourage
- local government bodies or non-governmental bodies within their
- territories to act in a manner inconsistent with the provisions
- of Article 2.
-
- 3.5 Members are fully responsible under this Agreement for the
- observance of all provisions of Article 2. Members shall
- formulate and implement positive measures and mechanisms in
- support of the observance of the provisions of Article 2 by other
- than central government bodies.
-
- AGREEMENT ON TECHNICAL BARRIERS TO TRADE
-
- Procedures for Assessment of Conformity by Local Government
- Bodies
-
- With respect to their local government bodies within their
- territories:
-
- 7.1 Members shall take such reasonable measures as may be
- available to them to ensure compliance by such bodies with the
- provisions of Articles 5 and 6, with the exception of the
- obligation to notify as referred to in paragraphs 6.2 and 7.1 of
- Article 5.
-
- 7.2 Members shall ensure that the conformity assessment
- procedures of local governments on the level directly below that
- of the central government in Members are notified in accordance
- with the provisions of paragraphs 6.2 and 7.1 of Article 5,
- noting that notifications shall not be required for conformity
- assessment procedures the technical content of which is
- substantially the same as that of previously notified conformity
- assessment procedures of central government bodies of the Members
- concerned.
-
- 7.3 Members may require contact with other Members, including
- the notifications, provision of information, comments and
- discussions referred to in paragraphs 6 and 7 of Article 5, to
- take place through the central government.
-
- 7.4 Members shall not take measures which require or encourage
- local government bodies within their territories to act in a
- manner inconsistent with the provisions of Articles 5 and 6.
-
- 7.5 Members are fully responsible under this Agreement for the
- observance of all provisions of Articles 5 and 6. Members shall
- formulate and implement positive measures and mechanisms in
- support of the observance of the provisions of Articles 5 and 6
- by other than central government bodies.
-
-
- (TECHNICAL BARRIERS)
- INFORMATION AND ASSISTANCE
-
- Article 10
-
- Information About Technical Regulations, Standards and
- Conformity Assessment Procedures
-
- 10.1 Each Member shall ensure that an enquiry point exists which
- is able to answer all reasonable enquiries from other Members and
- interested parties in other Members as well as to provide the
- relevant documents regarding:
-
- 10.1.1 any technical regulations adopted or proposed
- within its territory by central or local
- government bodies, by non-governmental bodies
- which have legal power to enforce a technical
- regulation, or by regional standardizing bodies of
- which such bodies are members or participants;
-
- 10.1.2 any standards adopted or proposed within its
- territory by central or local government bodies,
- or by regional standardizing bodies of which such
- bodies are members or participants;
-
- 10.1.3 any conformity assessment procedures, or proposed
- conformity assessment procedures, which are
- operated within its territory by central or local
- government bodies, or by non-governmental bodies
- which have legal power to enforce a technical
- regulation, or by regional bodies of which such
- bodies are members or participants;
-
- 10.1.4 the membership and participation of the Member, or
- of relevant central or local government bodies
- within its territory, in international and
- regional standardizing bodies and conformity
- assessment systems, as well as in bilateral and
- multilateral arrangements within the scope of this
- Agreement; they shall also be able to provide
- reasonable information on the provisions of such
- systems and arrangements;
-
-
- 10.1.5 the location of notices published pursuant to this
- Agreement, or the provision of information as to
- where such information can be obtained; and
-
- 10.1.6 the location of the enquiry points mentioned in
- paragraph 3 of Article 10.
-
- ANNEX 1
-
- TERMS AND THEIR DEFINITIONS FOR THE
- PURPOSE OF THIS AGREEMENT
-
- 7. Local government body
-
- Government other than a central government (e.g. states,
- provinces, Länder, cantons, municipalities, etc.), its ministries
- or departments or any body subject to the control of such a1
- government in respect of the activity in question.
-
-
- AGREEMENT ON TRADE-RELATED INVESTMENT MEASURES
-
-
- GENERAL AGREEMENT ON TRADE IN SERVICES
-
-
-
- 3. For the purposes of this Agreement:
-
- (a) "measures by Members" means measures taken by:
-
- (i) central, regional or local governments and
- authorities; and
-
- (ii) non-governmental bodies in the exercise of powers
- delegated by central, regional or local
- governments or authorities;
-
- In fulfilling its obligations and commitments under the
- Agreement, each Member shall take such reasonable
- measures as may be available to it to ensure their
- observance by regional and local governments and
- authorities and non-governmental bodies within its
- territory.
-
- UNDERSTANDING ON RULES AND PROCEDURES
- GOVERNING THE SETTLEMENT OF DISPUTES
-
- 22.9 The dispute settlement provisions of the covered agreements
- may be invoked in respect of measures affecting their observance
- taken by regional or local governments or authorities within the
- territory of a Member. When the DSB has ruled that a provision
- of a covered agreement has not been observed, the responsible
- Member shall take such reasonable measures as may be available to
- it to ensure its observance. The provisions of the covered
- agreements and this Understanding relating to compensation and
- suspension of concessions or other obligations apply in cases
- where it has not been possible to secure such observance.
-
- KANTOR"S SUMMARY
-
- The Agreement prohibits local content and trade balancing
- requirements. This prohibition will apply whether the measures
- are mandatory or are required in return for an
- incentive/advantage. A transition period of 5 years will be
- afforded for developing countries to eliminate existing
- prohibited measures, but only if they notify the GATT regarding
- each specific measure. Only two years is provided for developed
- countries. (Investment issues are also dealt with in the General
- Agreement on Trade in Services
-
-
- Market Access: The GATS also includes a market access provision
- which incorporates disciplines on six types of discriminatory
- measures that governments frequently impose to limit competition
- or new entry in their markets. These laws and regulations --
- such as restrictions on the number of firms allowed in the
- market, economic "needs tests" and mandatory local incorporation
- rules -- are often used to bar or restrict market access by
- foreign firms. A country must either eliminate these barriers in
- any sector that it includes in its schedule of commitments or
- negotiate with its trading partners for their limited retention.
-
- The text on preferential trading arrangements clarifies the GATT
- rules that pertain to regional arrangements (customs unions and
- free trade arrangements) and defines the state/local relationship
- in regard to GATT obligations.
-
-