The International Practice of the European Communities - Current Survey

International Trade Developments, Including Commercial Defence Actions XIV: 1 July 1997 - 30 June 1998

2 World Trade Organization
A Information Technology Agreement (ITA)
Negotiations on the extension of the product coverage of the WTO Information Technology Agreement (known as ITA-2) were still ongoing at the end of June 1998. It seems that there are still important differences between countries such as Malaysia, which favours the inclusion of consumer electronics in the ITA-2, and the European Community, which is reportedly against the inclusion of mainstream consumer products such as televisions or video recorders.
B Financial Services
After three rounds of negotiations, a GATS Protocol on Financial Services (the Fifth Protocol) was finally agreed. The third round of negotiations was opened in April 1997 and lasted until 12 December 1997, when 56 schedules representing 70 WTO members were annexed to the Fifth Protocol. This Protocol is open for ratification and acceptance by WTO members until 29 January 1999. The commitments are expected to enter into force by 1 March 1999.
The Protocol covers activities in the insurance and insurance-related, banking and other financial services sectors. As far as the insurance and insurance-related activities are concerned, the Protocol covers life and non-life insurance, reinsurance, insurance intermediation such as brokerage and agency services, and services auxiliary to insurance such as consultancy and actuarial services. With regard to banking and other financial services sectors, it covers all the traditional services provided by banks such as acceptance of deposits, lending of all types, and payment and money transmission services. Other financial services include, inter alia, trading in foreign exchange, derivatives and all kinds of securities, securities underwriting, money brokering, asset management, settlement and clearing services, provision and transfer of financial information.
C Rules of Origin
The harmonization work programme provided for in the WTO Agreement on Rules of Origin was not completed on its original deadline of 20 July 1998. The technical work concerning the determination of the rules of origin for specific products was advanced. However, in several areas - elaboration of definitions of goods wholly obtained, minimal operations and the architecture of the harmonized rules of origin, the section/chapter rules and the residual rules - further work has to take place. The WTO members have set November 1999 as the new deadline for the finalization of the harmonization work programme.
D Basic Telecommunication Services Agreement
The Fourth GATS Protocol on basic telecommunication services concluded in February 1997 entered into force on 5 February 1998.
E WTO dispute Settlement
For a detailed analysis of the panel and appellate body reports, we refer to the previously published reports in this series. 3
F Standards and Conformity Assessment
The EC signed mutual recognition agreements (MRA) with Canada, the United States, New Zealand and Australia. These agreements cover, inter alia , medical devices, telecommunications terminal equipment and electromagnetic compatibility. Negotiations with Japan still continue. Finally, exploratory talks with Israel and Korea took place during 1998.
3 "Decisions on the Appellate Body of the World Trade Organization", European Journal of International Law 1998, 182-184: from http://www.ejil.org/journal/Vol9/No1/sr1a.html to http://www.ejil.org/journal/Vol2/No2/sr1e.html and from http://www.ejil.org/journal/Vol9/No3/sr2.html to http://www.ejil.org/journal/Vol9/No3/sr5.html.