The WTO’s Council for Trade and Goods (CTG) recently adjusted its policy on compliance for countries which notified the WTO and had requested for an extension.
Under the TRIMs provision, WTO members are supposed to remove their non-tariff barriers such as local content requirements and net foreign exchange earnings requirement as of end-1999.
However, at least nine other countries, aside from the Philippines requested for an extension of the deadline. These countries – Argentina, Chile, Columbia, Egypt, Malaysia, Mexico, Pakistan, Romania and Thailand – sought the extension saying there is a need to provide further protection to some of their industries.
The CTG-WTO agreed to allow the extension by two years up to end-2001 and gave an additional two-year leeway up to end-2003. However, to avail themselves of what is called as the "two plus two’ extension, the Philippines and the nine other countries which requested for an extension must negotiate bilaterally with and seek the approval of other WTO members.
In line with this, Hernandez said they are now negotiating with the US which has indicated its willingness to grant a three-and-a-half-year extension to the Philippines.