Chapter 3 Custom

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CHAPTER FOUR

THE INTERNATIONAL ORGANIZATIONS AND

CONVENTIONS GOVERNIG GUSTOMS

4.1 International Conventions and Agreements

4.1.1 Definitions of Treaties, Agreements, andConventions

International Agreements, Conventions and Treaties

represent a primary source of international law. Parties to

such Agreements are legally bound to observe their terms

and conditions.

The United Nations Treaty Reference Guide provides

definitions of key terms used in International Agreements,

including the following definitions of Treaties, Agreements,

and Conventions.

ii. Treaties

The term Treaty can be used as a common generic term or

as a particular term which indicates an instrument with

certain characteristics.

a. Treaty as Generic Term: The term Treaty has

regularly been used as a generic term embracing all

instruments binding at international law concluded

between international entities, regardless of their formal

designation. Both the 1969 Vienna Convention and the

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1986 Vienna Convention defines a Treaty as an

international agreement concluded between States in

written form and governed by international law, whether

embodied in a single instrument or in two or more

related instruments and whatever its particular

designation. The 1986 Vienna Convention extends the

definition of Treaties to include International Agreements

involving international organizations as parties. In order

to speak of a Treaty in the generic sense, an

instrument has to meet various criteria. First of all, it hasto be a binding instrument, which means that the

contracting parties intended to create legal rights and

duties. Secondly, the instrument must be concluded by

states or International Organizations with treaty-making

power. Thirdly, it has to be governed by international

law. Finally, the engagement has to be in writing. Even

before the 1969 Vienna Convention on the Law of

Treaties, the word Treaty in its generic sense had been

generally reserved for engagements concluded in written

form.

b. Treaty as a Specific Term:- There are no consistent

rules when state practice employs the term Treaty as atitle for an international instrument. Usually the term

Treaty is reserved for matters of some gravity that

require more solemn agreements. Their signatures are

usually sealed and they normally require ratification.

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Typical examples of international instruments designated

as Treaties are Peace Treaties, Border Treaties,

Delimitation Treaties, Extradition Treaties and Treaties of

Friendship, Commerce and Cooperation.

The use of the term Treaty for international instruments

has considerably declined in the last decades in favour of

other terms.

iii. Agreements

The term Agreement can have a generic and a specificmeaning. It also has acquired a special meaning in the

law of regional economic integration.

a. Agreement as a Generic Term:- The 1969 Vienna

Convention on the Law of Treaties employs the term

International Agreement in its broadest sense. On

the one hand, it defines Treaties as International

Agreements with certain characteristics. On the

other hand, it employs the term International

Agreements for instruments, which do not meet its

definition of Treaty. Its Art.3 refers also to

International Agreements not in written form.

Although such Oral Agreements may be rare, they

can have the same binding force as Treaties,

depending on the intention of the parties. An

example of an Oral Agreement might be a promise

made by the Minister of Foreign Affairs of one State

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to his counterpart of another State. The term

International Agreement in its generic sense

consequently embraces the widest range of

International Instruments.

b. Agreement as a Particular Term: Agreements

are usually less formal and deal with a narrower

range of subject matter than Treaties. There is a

general tendency to apply the term Agreement to

Bilateral or restricted Multilateral Treaties. It is

employed especially for instruments of a technical oradministrative character, which are signed by the

representatives of government departments, but are

not subject to ratification. Typical Agreements deal

with matters of economic, cultural, scientific and

technical cooperation.

Agreements also frequently deal with financial

matters, such as avoidance of double taxation,

investment guarantees or financial assistance. The

UN and other international organizations regularly

conclude agreements with the host country to an

international conference or to a session of

representative organ of the organization. Especially

in international economic law, the term Agreement

is also used as a title for broad Multilateral

Agreements (e.g. The Commodity Agreements). The

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use of the term Agreement slowly developed in the

first decades of this century.

Nowadays by far the majority of International

Instruments are designated as Agreements.

c. Agreements in Regional Integration Schemes:

Regional integration schemes are based on general

framework of Treaties with constitutional character.

International instruments which amend this

framework at a later stage (e.g. accessions,revisions) are also designated as Treaties.

Instruments that are concluded within the framework

of the Constitutional Treaty or by the organs of the

Regional Organization are usually referred to as

Agreements, in order to distinguish them from the

Constitutional Treaty. For example, whereas the

Treaty of Rome of 1957 serves as quasi-constitution

of the European Community (EC), Treaties concluded

by the EC with other national are usually designated

as Agreements. Also, the Latin American Integration

Association (LAIA) was established by the Treaty of

Montevideo of 1980, but the sub regional

instruments entered into under its framework are

called Agreements.

iii. Conventions

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The term Convention again can have both a generic

and a specific meaning.

a. Convention as a Generic Term: Art.38(1) (a) of

the Statute of the International Court of Justice refers

to International conventions, whether general or

particular as a source of law, a part from-

international customary rules and general principles

of international law and-as a secondary source-

judicial decisions and the teachings of the most

highly qualified publicists.

This generic use of the term Convention embraces

all International Agreements, in the same way as

does the generic term Treaty. Black letter law is

also regularly referred to as Conventional Law, in

order to distinguish it from the other sources of

international law, such as customary law or the

general principles of International Law. The generic

term Convention thus is synonymous with the

generic term Treaty.

b. Convention as a Specific Term: Whereas in the

last century the term Convention was regularly

employed for Bilateral Agreements, it now is

generally used for formal Multilateral Treaties with a

broad number of parties. Conventions are normally

open for participation by the international community

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as a whole, or by a large number of states. Usually

the instruments negotiated under the auspices of an

international organization are entitled Conventions

(e.g. Convention on Biological Diversity of 1992,

United Nations Convention on the Law of the Sea of

1982, Vienna Convention on the Law of Treaties of

1969).

The same holds true for instruments adopted by an

organ of an international organization (e.g. the 1951

ILO Convention concerning Equal Remuneration for

Men and Women Workers for Work of Equal Value,

adopted by the International Labour Conference or

the 1989 Convention on the Rights of the Child,

adopted by the General Assembly of the UN)

(UN2000,pp 3-4).

4.1.2 Types of International Agreements

There are essentially three types of International

Agreements:

Multilateral Agreements are binding

agreements between several states and/or

international organizations, and are generally

open to the signature on a global basis. The

WTO Agreements on Customs Valuation and

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Customs Convention on Temporary Admission

are examples of Multilateral Agreements.

Plurilateral Agreements are binding

Agreements between several states and/or

international organizations, which are generally

restricted to signatories from a particular

region.

Examples include the North American Free

Trade Agreement (NAFTA), and the South Pacific

Regional Trade and Economic Cooperation

Agreement (SPARTECA).

Bilateral Agreements are binding

Agreements between two States, a state and an

International Organization, or two international

organizations. Examples include Agreement on

Economic Cooperation between the

Government of the Kingdom of Thailand and the

Government of Canada, and the Free Trade

Agreement between Mexico and Bolivia.

4.1.3 Customs-Specific Agreements

A principal determinant of the degree to which the

movement of people, cargo and carriers may be

expedited across a countrys borders, and the level of

government control which may be exercised over such

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movements, is the relevant statutory framework. For

example, national legislative provisions dictate the

circumstances under which cargo may cross a

countrys borders, and how and to whom these

movements must be reported. Such provisions include

any licensing, authorization and permit requirements

relating to traders requirements such as import duties

and other taxes.

While all statutory requirements must be provided for

in national law, those which are designed to fulfill a

countrys obligations to its trading partners have their

origins in International Agreements (including treaties

and conventions) such as those sponsored by the

World Trade Organization (WTO) and World Customs

Organization (WCO). Other statutory requirements are

country-specific and are generally designed to meetpublic health, safety and internal security needs.

Combined, the various legal requirements can have a

significant impact on the overall operation and

efficiency of international supply chains.

Many of the International Agreements that have a

significant impact on the business of Customs,

particularly those that primarily deal with Customs

matters are either sponsored or are at least

administered, by the WCO. These include:

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Convention establishing the Customs Co-operation

Council;

Convention on Nomenclature for the Classification of

Goods in Customs Tariffs (and Protocol of Amendment

thereto);

Convention on the Harmonized Commodity Description

and Coding System (commonly referred to as the

Harmonized System);

Customs Convention on the Temporary Importation of

Packings;


Professional Equipment;

Customs Convention concerning Facilities for the

Importation of Goods for Display or use at Exhibitions,

Fairs, Meetings or Similar Events;

Customs Convention on the ATA Carnet for the

Temporary Admission of Goods (ATA Convention);

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Customs Convention concerning Welfare Material for

Seafarers;


Scientific Equipment;

Customs Convention of the Temporary Importation of

Pedagogic Material;

International Convention on the Simplification and

Harmonization of Customs Procedures (Revised Kyoto

Convention). This is an extremely important Convention

for Customs,

International Convention on Mutual Administrative

Assistance in Customs Matters (Johannesburg

Convention not yet in force);

International Convention on mutual administrative

assistance for the Prevention, Investigation and

Repression of Customs Offences (Nairobi Convention);

Convention on Temporary Admission (Istanbul

Convention);

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Agreement on Implementation of Article VII of the

General Agreement on Tariffs and Trade 1994 (The

WTO valuation Agreement)-sponsored by the WTO and

administered by the WCO; and

Customs Convention on Containers- sponsored by the

UNECE and administered by the WCO.

4.1.4 Other Significant Agreements

Other Agreements that have a significant impact on

Customs include, among others:

Convention against Illicit Traffic in Narcotic Drugs

and Psychotropic Substances;

Convention on Contracts for the International Sale

of Goods;

Convention on the Law of the Sea;

Universal Postal Union and Universal Postal

Convention;

International Convention for the Unification of

Certain Rules relating to International Carriage by

Air;

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Convention for the Unification of Certain Rules of

Law relating to Bills of Lading (also known as

Carriage of Goods by Sea Convention);

Convention on Facilitation of International

Maritime Traffic (FAL);

International Maritime Organization (IMO)

International Convention for Safe Containers;

International Civil Aviation Organization (ICAO)

Convention on International Civil Aviation (Chicago

Convention)-Particularly the Facilitation Annex

(Annex 9);

Convention on the International Trade in

Endangered Species of Wild Fauna and Flora

(CITES);

Trademark Law Treaty (World Intellectual Property

Organization);

Berne Convention for the Protection of Literary

and Artistic Works;

Pairs Convention for the Protection of Industrial

Property;

World Intellectual Property Organization (WIPO)

Copyright Treaty;

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UNESCO Convention on the Means of Prohibiting

and Preventing the Illicit Import, Export and

Transfer of Ownership of Cultural Property;

Agreement on Importation of Educational, Scientific and

Cultural Materials; and

Convention relating to International Exhibitions.

4.1.5 Revised Kyoto Convention

In June 1999, the Council of the WCO approved the

revised International Convention on the Simplification

and Harmonization of Customs Procedures- the Revised

Kyoto Convention. The Revised Kyoto Convention has

been developed in the face of mounting pressure from

the international trading community to minimize the

level of Customs intervention in cargo movements and

to maximize the level of trade facilitation.

Essentially, the Revised Kyoto Convention is intended

to promote the achievement of a highly facilitative

international travel and trading environment while

maintaining appropriate levels of regulatory control

across all member administrations.

It is designed to provide the underlying conditions and

instruments to help the contracting parties to achieve a

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Modern Customs Administration and to make a major

contribution to the facilitation of international trade by:

Eliminating divergence between the Customs

procedures and parties of contracting parties that can

hamper international trade and other international

exchanges;

Meeting the needs of both international trade and

Customs Authorities for Facilitation, simplification andHarmonization of Customs procedures and practices;

Ensuring appropriate standards of Customs control;

Enabling Customs Authorities to respond to major

changes in business and administrative methods and

techniques;

Ensuring that the core principles for Simplification and

harmonization are made obligatory on contracting

parties; and

Providing Customs Authorities with efficient

procedures, supported by appropriate and effective

control methods (World Customs Organization 1999).

The Revised Kyoto Convention incorporates important

concepts of contemporary compliance management. These

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include the application of new technology, the

implementation of new philosophies on Customs control and

the willingness of private sector partners to engage with

Customs Authorities in mutually beneficial alliances. Central

to the new governing principles of the Revised Kyoto

Convention is a required commitment by Customs

Administrations to provide transparency and predictability

for all those involved in aspects of international trade. In

addition, administrations are required to:

Commit to adopt the use of Risk Management

Techniques;

Co-Operate with other relevant Authorities and Trade

Communities;

Maximize the use of Information Technology; and

Implement appropriate International Standards.

4.2. INTERNATIONAL ORGANIZATIONS

4.2.2 World Trade Organization

i. Background and evolution

The allied powers met from 1946 to 1948 in London,

Geneva, Havana and at Bretton Woods in the USA to

establish an economic structure for the future and to

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ensure that the economic mistakes of the past were not

repeated. The so-called Bretton Woods System produced

a comprehensive plan to set up mechanisms to deal with

international trade, investment, and foreign exchange.

Agreement was reached for the creation of three linked

bodies: the International Monetary Fund (IMF), the

International Bank for Reconstruction and Development

(IBRD or the World Bank), and an International Trade

Organization (ITO).

The IMF was designed to provide short-term finance to

countries in balance of payment difficulties, While the

World Bank provided long-term capital of support growth

and development.

The ITO was intended to promote a liberal trading system,

however, never materialized (mainly due to the realization

that the US Congress would not ratify it) and its intended

functions were gradually absorbed into the General

Agreement on Tariffs and Trade (GATT). For our purposes

the GATT and its successor, the World Trade Organization

(WTO) are the most important trade-oriented institutions

we need to be concerned about, as they shape domesticimport and export laws that directly affect all international

sale of goods transactions, as well as trade in services.

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It is important at this point to be aware of the limitations

on the powers of these bodies. International organizations

have only limited authority they cannot dictate to

member states, nor can they operate as independent

legislative bodies. Their powers are limited by their

constitutions and by the fact that they are always subject

to the will of their member states. While they can develop

model rules and conventions, they cannot pass them into

law. The drafting of the documents and the acceptance of

those documents by the international community isalways dependent upon the actions of individual states.

But that is not to say that some organizations are not

authoritative.

The WTO is a good example of an organization which is

very influential in the development of international law

within its jurisdiction. It enjoys a very high level of

membership, is the primary forum for the resolution of

trade disputes and provides the principal forum for

multilateral trade negotiations.

iii. The GATT/WTO

While originally intended only as an interim agreement

before the ITO was established, the GATT evolved from

an agreement into the dominant organization dealing

with inter governmental trading relationships. The

original GATT was signed on 30 October 1947. GATT

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1947 did not establish any institutional framework

necessary for an ongoing international trade-regulating

organization. But when the ITO failed to eventuate, the

GATT developed institutional and dispute settlement

elements and found a permanent home in Geneva.

When first negotiated, the GATT was not seen as

threatening by key states, because of the so-called

grandfather clause. A Provision in the Protocol of

Provisional Application stated that Part II of the GATT

need only be applied To the fullest extent not

inconsistent with existing legislation.

This clause allowed many signatories to maintain

existing protectionist measures inconsistent with the

GATT Agreement. This enabled the GATT to develop a

strong constituency internationally, although a number

of large non-capitalist countries such as the Soviet Unionand China did not join it. (China has since joined, a

reflection of the profound shift in Chinese communist

ideology in the last 15 years. Since the demise of the

Soviet Union, and the emergence of independent

republics, longstanding negotiations are under way for

them to become members of the WTO also).

The GATT worked on two levels. The first was a day-to-

day level, where existing rules sought to circumscribe

protectionist government activity, where disputes were

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mediated and where discussions could be held on

general issues. The second level involved negotiation

Round . These were held at various locations around

the world, and were lengthy multilateral trade

negotiations aimed at liberalizing trade. Early Rounds

focused on the promotion of further tariff reductions on a

reciprocal negotiating basis. Later Rounds dealt with

other trade rules and protectionist barriers beside tariffs.

Of these Rounds, by far the most significant was the

Uruguay Round. It was a result of the Uruguay Round

that the informal GATT machinery was formalized

through the creation of the World Trade Organization.

The WTO inherited the structure of the GATT and

perpetuated the GATT way of doing business through

negotiating rounds and so on.

iii. Why The Uruguay Round Took Place

The Uruguay Round is the most significant to date, not

only because it spawned the WTO. There are many

reasons why the Uruguay Round occurred.

Overtime there had been significant departures from

the non-discrimination principles of the GATT to add

to exemptions special rules for developing countries

and free trade areas, and other side agreements;

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The three key players- the US, EU, and Japan- were

increasingly protectionist. The desire to include

(then) non- market economies such as China into

the GATT system added to the problems;

The Role of Multi National Corporations had grown

to the extent that some had immense economic

power and control over trade, but they were not

subject to the GATT obligations;

There was a growing attitude among some

governments that managed trade, as opposed to

free trade, could lead to significant benefits, which

in turn reduced the promotion of the GATT norms;

Countries were resorting to non-tariff barriers in

response to many years of low growth andrecession. Subsidies were in use to defend the

competitiveness of local industries, leading in some

cases to over-production which in turn led to

governments subsidizing the export of surplus

production. Another non-tariff barrier was the

voluntary export restraint-used to prevent the

threat of protectionist measures in an importing

country. These measures were argued to be outside

the GATT and therefore permissible.

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The GATT demonstrated inability to make the

dispute settlement procedures effective, eitherthrough states failing to use the mechanism

properly, or else refusing to accept decisions once

made.

The above problems prompted many countries in the 1980s

to press for a new Round of trade talks. There was a need to

revitalize the organizational and dispute settlement

functions and to broaden substantive rules. A glaring gap

was that the GATT Agreement only dealt with trade in goods,

yet more than half the workforce in industrialized countries

was involved in the service sector.

The Uruguay Round was formally launched in 1986, with an

initial completion date of 1990. In the end, the Round

continued until 1994. The Round concluded with the

signature of the Final Act in Marrkesh.

The Final Act is significant because it incorporated a large

number of new agreements as well as important changes to

the GATT itself. It marked a qualitative step forward from the

failing GATT provisions of 1947. It greatly expanded the legal

instruments applying to global trade. It led to significant

reductions in both tariff and non-tariff barriers to trade. It

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removed the 1947 grandfather clauses that had allowed

states to retain their existing tariff barriers. GATT 1994 is not

merely an extension of GATT 1947. It effectively replaces it,

although the key provisions of the 1947 Agreement remain

in place.

The Uruguay Round produced many important agreements,

but none more important than the Agreement to establish

the WTO, which came into being on 1 January 1995. Counties

that had previously subscribed to the GATT all became

members of the WTO. Member countries (153 countries as at

July 2008) undertook several major obligations when they

accepted the WTO Agreement:

To become Members of the WTO itself;

To be bound by GATT 1994;

To be bound by the Agreements listed in the Annexes

to the WTO Agreement;

To be bound by the WTO Dispute Resolution

mechanism To forego the grandfather clauses under

which their existing tariff levels had been preservedwhen they signed up to GATT 1947.

iv. Membership of the WTO does not merely mean

joining the organizations:-

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It means that each member must configure its trading

laws, policies and practices so that they conform with all

of these commitments. Any Country that fails to meet

these commitments risks being called to account in the

WTO itself. This may be either through the dispute

settlement procedures, or through the political processes

of the WTO Council.

v. Developments Since The Uruguay Round

The WTO is now the principal institution of the multilateral

trading system. Many countries have made significant

changes to their trading policies since the Uruguay Round.

Many countries have become members of the WTO, or

have expressed their intention to do so. Chinas accession

to membership has been a very important development,

and many ASEAN members have moved to implement key

WTO Agreements such as the valuation Agreement. These

developments have also coincided with the growth of

global trade-and backlash in many countries against what

are seen to be the harmful consequences of globalization.

In 2000, the WTO sought to launch a new round of

negotiations in Seattle, but violent protests- and a lack of

meeting of minds as to what should be on the agenda-saw the Round aborted. Since then, Ministers meeting in

Doha have agreed on an agenda and the Doha Round was

undertaken. It was due to finish on 1 January 2005 but

that did not happen and the General Council, at its

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meeting on 27-28 July 2006, supported a recommendation

by Director-General Pascal Lamy to suspend the Doha

negotiations. Many issues such as agricultural protection,

which were progressed in the Uruguay Round, remain

unresolved. New issues have arisen. Even arguments over

global rules for Customs clearance have arisen. (More

detail on the Doha Development Agenda is included on

the following Pages).

The WTO

How is the WTO Constituted?

If we look at the agreement itself, we can identify some of

the key provisions:

Article I establishes the WTO.

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By Virtue of Article II, the WTO exercises Jurisdiction

Over:

GATT-1994, as included in Amex 1A of the Agreement;

All other Multilateral Trade Agreements (MTAs) and

associated legal instruments include in Annexs 1,2 and

3 of the Agreement;

All plurilateral agreements included in Annex 4 of theAgreement.

Article III establishes the functions of the WTO,

namely:

To implement, administer and further the objectives of

the MTAs;

To provide the forum for negotiations among Members;

To Administer the Understanding on Rules and

procedures Governing the settlement of Disputes;

To Administer the Trade Review Policy Mechanism in

Annex 3;

To Cooperate with the IMF and the World Bank.

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Article IV sets out the structure of the WTO. There is to be a

Ministerial Conference at least every two years, and between

meetings of the Conference its functions are carried out by a

General Council.

Other Councils are established for General Agreement on

Trades and Service (GATS)( and the Agreement on Trade

Related Aspects of International property Rights (TRIPS).

Article VII establishes that the WTO shall have legal

personality and such legal capacity as is necessary for the

exercise of its functions and that it shall be entitled to

privileges and immunities.

Article IX enshrines the concept of decision-making by

consensus, and voting only where consensus cannot be

achieved.

Article X establishes the mechanism for amending the WTO

Agreement and the Multilateral Agreements.

vi. The Doha Development Agenda

The November 2001 declaration of the Fourth Ministerial

conference in Doha, Qatar, provided a mandate for

negotiations on a range of trade related including

agriculture and services. The Ministers also approved a

linked decision to examine the problems developing

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countries face in implementing the current WTO

agreements.

The agenda placed trade in agricultural goods on same

footing with trade in other goods.

It was recognized that agricultural access was of prime

importance to developing countries yet it ranked as the

most distorted sector of trade in goods-imports usually

faced a high tariff, high domestic support in USA, Europe

and Japan with domestic farm subsidies and was the only

area allowing export subsidies. As a result the agenda

aimed to:

Reduce Export Subsides;

Reduce Domestic Support;

Increase market access, thereby placing trade in

agricultural goods on equal footing with

manufactured goods.

Negotiations on agriculture began in early 2000, under

Article 20 of the WTO Agriculture Agreement. By

November 2001 and the Doha Ministerial conference,

121 governments had submitted a large number of

negotiating proposals. Doha Round was supposed to

finish on 1 January 2005.

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At the Cancun WTO Ministerial Conference in September

2003, a deadlock occurred as the developed nations

wanted to focus on the so called Singapore issues; of

investment, Competition Policy, Government

Procurement and Trade Facilitation. The developing

countries, including the Cairns Group, rejected this focus

stating agriculture was central to delivering the Doha

Development Agenda.

At a meeting of the WTO2 147 members in Geneva in

August 2004, the deadlock of Cancun was broken when

members agreed to abolish all forms of Agricultural

Export Subsidies and Substantial reductions in domestic

support by the year 2013. The main features were:

Export Subsides: reduction in export subsidies is to be

made on both a value and quantity basis and to apply on

a commodity-by-commodity basis, rather than on an

aggregate basis. Aimed to phase out these subsidies.

Domestic Support: Substantial reductions in the use of

domestic subsidies in agriculture. In 2000-2002 OECD

Countries Spent US$230B on domesticsupport/Protection for Agricultural Products- by blocking

market access and driving down world prices, developed

countries policies reduced agricultural exports from

developing world by US$7B.

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Market Access: All non-tariff restrictions on agricultural

products such as quotas were to be converted into

tariffs. These were initially set at current levels of

protection, but were to be reduced by 36% over a 6-year

implementation period. There was an obvious need to

reduce tariffs; e.g. EUs tariffs on sugar were 230% and

tariffs on meat products reached 826%.

By June 2006 the focus was still on template agreementsknown as Modalities for cutting Tariffs and Subsidies in

Agriculture and Opening Markets for Industrial Goods.

But agreement was elusive- the US wanted rich countries

to slash barriers by 66%. The EUs official offer was 39%,

the Group of 20 (a forum of big emerging economies

including Australia, Brazil, China and India) Wanted 54%

cut from the rich countries (The Australian newspaper, 7

Jul 2006).

Negotiations have continued and on 06 December 2008,

WTO Director- General Pascal Lamy welcomed revised

negotiating documents on Agriculture and Industrial

Goods which, he said, should move the Doha round of

global trade negotiations closer to completion.

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The Director General said the Agriculture and Non-

Agricultural market access texts faithfully reflect the

state-of-play in the Doha negotiation. He said the

documents were balanced and accurately capture

progress made since the last texts were issued 10 July.

Mr.Lamy said the texts also clearly define those areas

where members disagree. Although these areas of

discord are few in number, he said, they involve

politically sensitive issues. He urged governments to

show flexibility and diligence in bridging these gaps assoon as possible.

With these revised texts we are closer to our goal of

clinching modalities in agriculture and industry, a

steeping stone towards the conclusion of the Doha

Round. We still have a long way to go before the Round

is concluded and all Members are asked to cast their

ballot on the final package. However, the modalities step

would send a signal that all WTO members stand united

to face the challenges of the current economic crisis. It

will confirm that they reject unilateral beggar they

neighbors solutions. Mr. Lamy said.

He added: This is not the time for unrealistic demands.

Nor is it the time for inflexible stances. This is the time

for collective moves towards global solutions.

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vii. Summary

As we discussed in previously, the WTO systems

overriding purpose is to help trade flow as freely as

possible so long as there are no undesirable side-

effects. The activities of the WTO, particularly in areas

such as the Doha negotiations, will continue to impact

upon the efforts of Customs Administration to facilitate

the flow of legitimate trade whilst maintaining

appropriate border controls. As the international

blueprint for prudent, innovative Customs

Management. the provisions of the Revised Kyoto

Convention will continue to guide and support Customs

modernization, Reform and Development.

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