GENERAL AGREEMENT ON TARIFFS AND TRADE 1994

1. The General Agreement on Tariffs and Trade 1994 ("GATT 1994") shall consist of:
(a) the provisions in the General Agreement on Tariffs and Trade, dated 30 
October 1947, annexed to the Final Act Adopted at the Conclusion of the 
Second Session of the Preparatory Committee of the United Nations 
Conference on Trade and Employment (excluding the Protocol of Provisional 
Application), as rectified, amended or modified by the terms of legal 
instruments which have entered into force before the date of entry into 
force of the WTO Agreement;
(b) the provisions of the legal instruments set forth below that have 
entered into force under the GATT 1947 before the date of entry into force 
of the WTO Agreement: 
(i) protocols and certifications relating to tariff concessions;
(ii) protocols of accession (excluding the provisions (a) concerning 
provisional application and withdrawal of provisional application and (b) 
providing that Part II of GATT 1947 shall be applied provisionally to the 
fullest extent not inconsistent with legislation existing on the date of 
the Protocol);
(iii) decisions on waivers granted under Article XXV of GATT 1947 and 
still in force on the date of entry into force of the WTO Agreement[1];
(iv) other decisions of the CONTRACTING PARTIES to GATT 1947;
(c) the Understandings set forth below:
(i) Understanding on the Interpretation of Article II:1(b) of the General 
Agreement on Tariffs and Trade 1994;
(ii) Understanding on the Interpretation of Article XVII of the General 
Agreement on Tariffs and Trade 1994;
(iii) Understanding on Balance-of-Payments Provisions of the General 
Agreement on Tariffs and Trade 1994;
(iv) Understanding on the Interpretation of Article XXIV of the General 
Agreement on Tariffs and Trade 1994;
(v) Understanding in Respect of Waivers of Obligations under the General 
Agreement on Tariffs and Trade 1994;
(vi) Understanding on the Interpretation of Article XXVIII of the General 
Agreement on Tariffs and Trade 1994; and
(d) the Marrakesh Protocol to GATT 1994.
2. Explanatory Notes
(a) The references to "contracting party" in the provisions of GATT 1994 
shall be deemed to read "Member". The references to "less-developed 
contracting party" and "developed contracting party" shall be deemed to 
read "developing country Member" and "developed country Member". The 
references to "Executive Secretary" shall be deemed to read 
"Director-General of the WTO".
(b) The references to the CONTRACTING PARTIES acting jointly in Articles 
XV:1, XV:2, XV:8, XXXVIII and the Notes Ad Article XII and XVIII; and in 
the provisions on special exchange agreements in Articles XV:2, XV:3, 
XV:6, XV:7 and XV:9 of GATT 1994 shall be deemed to be references to the 
WTO. The other functions that the provisions of GATT 1994 assign to the 
CONTRACTING PARTIES acting jointly shall be allocated by the Ministerial 
Conference.
(c) (i) The text of GATT 1994 shall be authentic in English, French and 
Spanish.
(ii) The text of GATT 1994 in the French language shall be subject to the 
rectifications of terms indicated in Annex A to document MTN.TNC/41.
(iii) The authentic text of GATT 1994 in the Spanish language shall be the 
text in Volume IV of the Basic Instruments and Selected Documents series, 
subject to the rectifications of terms indicated in Annex B to document 
MTN.TNC/41.
3. (a) The provisions of Part II of GATT 1994 shall not apply to measures 
taken by a Member under specific mandatory legislation, enacted by that 
Member before it became a contracting party to GATT 1947, that prohibits 
the use, sale or lease of foreign-built or foreign-reconstructed vessels 
in commercial applications between points in national waters or the waters 
of an exclusive economic zone. This exemption applies to: (a) the 
continuation or prompt renewal of a non-conforming provision of such 
legislation; and (b) the amendment to a non-conforming provision of such 
legislation to the extent that the amendment does not decrease the 
conformity of the provision with Part II of GATT 1947. This exemption is 
limited to measures taken under legislation described above that is 
notified and specified prior to the date of entry into force of the WTO 
Agreement. If such legislation is subsequently modified to decrease its 
conformity with Part II of GATT 1994, it will no longer qualify for 
coverage under this paragraph. 
(b) The Ministerial Conference shall review this exemption not later than 
five years after the date of entry into force of the WTO Agreement and 
thereafter every two years for as long as the exemption is in force for 
the purpose of examining whether the conditions which created the need for 
the exemption still prevail.
(c) A Member whose measures are covered by this exemption shall annually 
submit a detailed statistical notification consisting of a five-year 
moving average of actual and expected deliveries of relevant vessels as 
well as additional information on the use, sale, lease or repair of 
relevant vessels covered by this exemption.
(d) A Member that considers that this exemption operates in such a manner 
as to justify a reciprocal and proportionate limitation on the use, sale, 
lease or repair of vessels constructed in the territory of the Member 
invoking the exemption shall be free to introduce such a limitation 
subject to prior notification to the Ministerial Conference.
(e) This exemption is without prejudice to solutions concerning specific 
aspects of the legislation covered by this exemption negotiated in 
sectoral agreements or in other fora.


[1]The waivers covered by this provision are listed in footnote 7 on pages 
11 and 12 in Part II of document MTN/FA of 15 December 1993 and in 
MTN/FA/Corr.6 of 21 March 1994. The Ministerial Conference shall establish 
at its first session a revised list of waivers covered by this provision 
that adds any waivers granted under GATT 1947 after 15 December 1993 and 
before the date of entry into force of the WTO Agreement, and deletes the 
waivers which will have expired by that time.