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.