Copyright 1995 NLCIFT



Title:Understanding in respect of waivers of obligations


    UNDERSTANDING IN RESPECT OF WAIVERS OF OBLIGATIONS UNDER 
         THE GENERAL AGREEMENT ON TARIFFS AND TRADE 1994


1.   It is agreed that a request for a waiver or for an extension
     of an existing waiver shall describe the measures which the
     Member proposes to take, the specific policy objectives
     which the Member seeks to pursue and the reasons which
     prevent the Member from achieving its policy objectives by
     measures consistent with its obligations under the
     GATT 1994.

2.   Any waiver in effect on the date of entry into force of the
     Agreement Establishing the MTO shall terminate, unless
     extended in accordance with the procedures above and those
     of Article IX of the Agreement Establishing the MTO, on the
     date of its expiry or two years from the date of entry into
     force of the Agreement Establishing the MTO, whichever is
     earlier.

3.   Any Member considering that a benefit accruing to it under
     the GATT 1994 is being nullified or impaired as a result of

     (a)  the failure of the Member to whom a waiver was granted
          to observe the terms or conditions of the waiver, or

     (b)  the application of a measure consistent with the terms
     and conditions of the waiver 

     may invoke the provisions of Article XXIII of the GATT 1994
     as elaborated and applied by the Understanding on Rules and
     Procedures Governing the Settlement of Disputes.