CONFIDENTIAL DAFFEIMAI(97) 1 /REV2
   
   XI. IMPLEMENTATION AND OPERATION
   
   THE PREPARATORY GROUP
   
   (Text to be included in the Final Act)
   
   1. There shall be a Preparatory Group comprised of the Signatories to
   the Final Act and the
   
   Signatories to the Agreement. A Signatory to the Final Act shall cease
   to be a member if it fails to become
   
   a Signatory to the Agreement by the closing date for signature of the
   Agreement.
   
   2.The Preparatory Group shall:
   
   (a) prepare for entry into force of the Agreement and the
   establishment of the Parties Group;
   
   (b) conduct discussions with non-signatories to the Final Act;
   
   (c) conduct negotiations with interested non-signatories to the Final
   Act and make decisions
   
   on their eligibility to become a Signatory to the Agreement; and
   
   (d) ...[1](1)
   
   3. The Preparatory Group shall elect a Chair, who shall serve in a
   personal capacity. Meetings shall
   
   be held at intervals to be determined by the Preparatory Group. The
   Preparatory Group shall establish its
   
   rules and procedures.
   
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   CONFIDENTIAL DAFEE[MAl(97)IREV2
   
   4. The Preparatory Group shall make decisions by consensus. Such
   decisions may include a
   
   decision to adopt a different voting rule for a particular question or
   category of questions. A Signatory
   
   may abstain and express a differing view without barring consensus
   
   5. [However, except as otherwise provided, where a decision cannot be
   made by consensus, the
   
   decision shall be made by a majority comprising [two thirds] of the
   Signatories.][2](2)
   
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   CONFIDENTIAL DAFFEIMAI(97) 1/REV2 l
   
   THE PARTIES GROUP
   
   1. There shall be a Parties Group comprised of the Contracting Panies.
   
   2. The Parties Group shall facilitate the operation of this Agreement.
   To this end, it shall:
   
   (a)carry out the functions assigned to it under this Agreement;
   
   (b)[at the request of a Contracting Pany, clarify [by consensus] the
   interpretation or
   
   application of this Agreement]3;
   
   (c) consider any matter that may affect the operation of this
   Agreement; and
   
   (d) take such other actions as it deems necessary to fulfil its
   mandate.
   
   3. In carrying out the functions specified in paragraph 2, the Parties
   Group may consult
   
   governmental and non-governmental organizations or persons.
   
   4. The Panies Group shall elect a Chair, who shall serve in a personal
   capacity. Meetings shall be
   
   held at intervals to be determined by the Parties Group. The Parties
   Group shall establish its rules and
   
   procedures.
   
   5. The Parties Group shall make decisions by consensus. Such decisions
   may include a decision to
   
   adopt a different voting rule for a particular question or category of
   questions. A Contracting Party may
   
   abstain and express a differing view without barring consensus.
   
   6. [However, except as otherwise provided, where a decision cannot be
   reached by consensus, the
   
   decision shall be made by a majority comprising [two thirds] of the
   Contracting Parties.]4
   
   3. Expen Group No. l is considering the role of the Parties Group with
   respect to Dispute Settlement; this
   
   sub-paragraph would address clarification of interpretation and
   application outside the Dispute
   
   Settlement context. Delegations have varying views on the question of
   whether it is appropriate that the
   
   Panies Group expressly be given a formal role in clarifying the
   interpretation or application of the MAI.
   
   On a point of detail, one delegation has expressed the view that the
   Panies Group should have such
   
   authority, but only if more than one Contracting Pany makes a request.
   
   4. See footnote 5. Further consideration needs to be given to the
   question of an appropriate rule for voting
   
   by the European Communities. In addition, some delegations propose
   that the Parnies Group have
   
   authority to make decisions on budgetary matters by a majority
   (perhaps two thirds) vote of delegations
   
   whose assessed contributions represent, in combination, at least two
   thirds of the total assessed
   
   contributions. Consideration also needs to be given to the question of
   whether failure to pay budgetary
   
   contributions should lead to suspension of the right of a Contracting
   Pany to participate in making
   
   decisions.
   
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   CONFIDENTIAL DAFFE/M/.1(97) 1/REV2
   
   7. The Parties Group shall be assisted by a Secretariat.
   
   8. [Parties Group and Secretariat costs shall be borne by the
   Contracting Parties as approved and
   
   apportioned by the Parties Group.]
   
   f
   
   5. Further work is required on paragraphs 7 and 8. Some delegations
   noted that funding of the MAI will
   
   need to be addressed by delegations in advance of ratification and
   that there may be a need to include a
   
   formula in the Agreement. Apan from a paragraph on costs of the
   Parties Group, there may be a need for
   
   a paragraph in the Final Act on payment of the costs of the
   Preparatory Group.
   
   91
   
   1. This and any subsequent subparagraphs would be necessary only if
   there is business that remains unfinished at the conclusion of the
   negotiations that the negotiators consider should be completed by the
   Preparatory Group; the further subparagraphs would itemise the
   clean-up tasks to be undertaken by the Preparatory Group.
   
   2. Delegations agree in principle that some decisioons should be made
   by consesus and that it should be possible to make some decisions by
   majority vote. Some delegations take the view that the previous
   paragraph provides sufficient flexibility to accommodate this
   principle. However, many delegations believe that the MAI should state
   that, failing consensus, decisions may be made by a majority vote. The
   present paragraph is modelled on Article IX of the Marrakesh
   Agreement, which provides that the WTO shall continue the GATT
   practice of decision-making by consensus with the proviso that, except
   as shall otherwise provided in the WTO Agreements, where a decision
   cannot be arrived at by consensus, the matter at issue shall be
   decided by voting. Delegations hold varying views on whether the MAI
   should provide that certain decisions, such as Preparatory Group
   decisions on the eligibility of non-Signatories to the Final Act to
   sign the Agreement and Parties Group decisions on accession, must be
   mde by consensus. The phrase "except as otherwise provided"
   contemplates that the MAI might require some decision to be made by
   consensus or by a majority voting rule different from a standard rule
   that would be set out in the paragraph. Theree are a number of
   possible formulas for a majority voting rule, including consensus
   minus one (or some larger number), three quarters and two thirds. As
   an alternative approach, some delegations propose that the Agreement
   distinguish between substantive and procedural matters through
   inclusion of a paragraph along the following lines: "Decisions on
   prodedural matters shall be made by a [twothirds] majority of the
   Signatories. Where there are differing views, the decision as to
   whether a matter is procedural shall be made by [consensus][ a two
   thirds majority of the Signatories]."

References

   1. http://www.citizen.org/pctrade/maitext1112.htm#N_1_
   2. http://www.citizen.org/pctrade/maitext1112.htm#N_2_