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gatloc.txt
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1994-08-24
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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.