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XXVII. Article XXVI back to top
A. Text of Article XXIV
Article XXVI: Acceptance, Entry into Force and Registration
1. The date of this Agreement shall be 30 October 1947.
2. This Agreement shall be open for acceptance by any contracting
party which, on 1 March 1955, was a contracting party or was negotiating
with a view to accession to this Agreement.
3. This Agreement, done in a single English original and a single
French original, both texts authentic, shall be deposited with the
Secretary-General of the United Nations, who shall furnish certified
copies thereof to all interested governments.
4. Each government accepting this Agreement shall deposit an
instrument of acceptance with the Executive Secretary(5) to the
Contracting Parties, who will inform all interested governments of the
date of deposit of each instrument of acceptance and of the day on which
this Agreement enters into force under paragraph 6 of this
Article.
(footnote original)
5 By the Decision of 23 March 1965, the
CONTRACTING PARTIES changed the title of the head of the GATT
secretariat from “Executive Secretary” to “Director-General”.
5.
(a) Each government accepting this Agreement does so in respect of
its metropolitan territory and of the other territories for which it has
international responsibility, except such separate customs territories
as it shall notify to the Executive Secretary5 to the CONTRACTING
PARTIES at the time of its own acceptance.
(b)
Any government, which has so notified the Executive Secretary(5)
under the exceptions in subparagraph (a) of this
paragraph, may at any
time give notice to the Executive Secretary(5) that its acceptance shall
be effective in respect of any separate customs territory or territories
so excepted and such notice shall take effect on the thirtieth day
following the day on which it is received by the Executive Secretary.(5)
(c)
If any of the customs territories, in respect of which a
contracting party has accepted this Agreement, possesses or acquires
full autonomy in the conduct of its external commercial relations and of
the other matters provided for in this Agreement, such territory shall,
upon sponsorship through a declaration by the responsible contracting
party establishing the above-mentioned fact, be deemed to be a
contracting party.
6. This Agreement shall enter into force, as among the governments
which have accepted it, on the thirtieth day following the day on which
instruments of acceptance have been deposited with Executive Secretary(6)
to the Contracting Parties on behalf of governments named in Annex
H,
the territories of which account for 85 per centum of the total external
trade of the territories of such governments, computed in accordance
with the applicable column of percentages set forth therein. The
instrument of acceptance of each other government shall take effect on
the thirtieth day following the day on which such instrument has been
deposited.
(footnote original) 6 By the Decision of 23 March 1965, the
CONTRACTING PARTIES changed the title of the head of the GATT
secretariat from “Executive Secretary” to “Director-General”.
7. The United Nations is authorized to effect registration of this
Agreement as soon as it enters into force.
B. Interpretation and Application of Article
XXVI
728. With respect to acceptance, entry into force and deposit under
the WTO Agreement, see Chapter on the WTO Agreement, Section
XV.B.
1. Reference to GATT practice
729. With respect to GATT practice on this subject-matter, Article XXVI.
XXVIII. Article XXVII
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A. Text of Article XXVII
Article XXVII: Withholding or Withdrawal of Concessions
Any contracting party shall at any time be free to withhold or to
withdraw in whole or in part any concession, provided for in the
appropriate Schedule annexed to this Agreement, in respect of which such
contracting party determines that it was initially negotiated with a
government which has not become, or has ceased to be, a contracting
party. A contracting party taking such action shall notify the
CONTRACTING PARTIES and, upon request, consult with contracting parties
which have a substantial interest in the product concerned.
B. Interpretation and Application of Article XXVII
No jurisprudence or decision of a competent WTO body.
1. Reference to GATT practice
730. With respect to GATT practice on this subject-matter, Article XXVII.
XXIX. Article XXVIII
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A. Text of Article XXVIII
Article XXVIII: Modification of Schedules
1. On the first day of each three-year period, the first period
beginning on 1 January 1958 (or on the first day of any other period
that may be specified by the CONTRACTING PARTIES by two-thirds of the
votes cast) a contracting party (hereafter in this Article referred to
as the “applicant contracting party”) may, by negotiation and
agreement with any contracting party with which such concession was
initially negotiated and with any other contracting party determined by
the CONTRACTING PARTIES to have a principal supplying interest (which
two preceding categories of contracting parties, together with the
applicant contracting party, are in this Article hereinafter referred to
as the “contracting parties primarily concerned”), and subject to
consultation with any other contracting party determined by the
CONTRACTING PARTIES to have a substantial interest in such concession,
modify or withdraw a concession included in the appropriate schedule
annexed to this Agreement.
2. In such negotiations and agreement, which may include provision
for compensatory adjustment with respect to other products, the
contracting parties concerned shall endeavour to maintain a general
level of reciprocal and mutually advantageous concessions not less
favourable to trade than that provided for in this Agreement prior to
such negotiations.
3.
(a) If agreement between the contracting parties primarily
concerned cannot be reached before 1 January 1958 or before the
expiration of a period envisaged in paragraph 1 of this
Article, the
contracting party which proposes to modify or withdraw the concession
shall, nevertheless, be free to do so and if such action is taken any
contracting party with which such concession was initially negotiated,
any contracting party determined under paragraph 1 to have a principal
supplying interest and any contracting party determined under paragraph
1 to have a substantial interest shall then be free not later than six
months after such action is taken, to withdraw, upon the expiration of
thirty days from the day on which written notice of such withdrawal is
received by the CONTRACTING PARTIES, substantially equivalent
concessions initially negotiated with the applicant contracting party.
(b)
If agreement between the contracting parties primarily concerned
is reached but any other contracting party determined under paragraph 1
of this Article to have a substantial interest is not satisfied, such
other contracting party shall be free, not later than six months after
action under such agreement is taken, to withdraw, upon the expiration
of thirty days from the day on which written notice of such withdrawal
is received by the CONTRACTING PARTIES, substantially equivalent
concessions initially negotiated with the applicant contracting party.
4. The CONTRACTING PARTIES may, at any time, in special
circumstances, authorize a contracting party to enter into negotiations
for modification or withdrawal of a concession included in the
appropriate Schedule annexed to this Agreement subject to the following
procedures and conditions:
(a) Such negotiations and any related consultations shall be
conducted in accordance with the provisions of paragraph 1 and
2 of this Article.
(b) If agreement between the contracting parties primarily concerned
is reached in the negotiations, the provisions of paragraph 3
(b) of
this Article shall apply.
(c) If agreement between the contracting parties primarily concerned
is not reached within a period of sixty days after negotiations have
been authorized, or within such longer period as the CONTRACTING PARTIES
may have prescribed, the applicant contracting party may refer the
matter to the CONTRACTING PARTIES.
(d) Upon such reference, the CONTRACTING PARTIES shall promptly
examine the matter and submit their views to the contracting parties
primarily concerned with the aim of achieving a settlement. If a
settlement is reached, the provisions of paragraph 3
(b)
shall apply as
if agreement between the contracting parties primarily concerned had
been reached. If no settlement is reached between the contracting
parties primarily concerned, the applicant contracting party shall be
free to modify or withdraw the concession, unless the CONTRACTING
PARTIES determine that the applicant contracting party has unreasonably
failed to offer adequate compensation. If such action is taken, any
contracting party with which the concession was initially negotiated,
any contracting party determined under paragraph 4
(a) to have a
principal supplying interest and any contracting party determined under paragraph 4
(a)
to have a substantial interest, shall be free, not later
than six months after such action is taken, to modify or withdraw, upon
the expiration of thirty days from the day on which written notice of
such withdrawal is received by the CONTRACTING PARTIES, substantially
equivalent concessions initially negotiated with applicant contracting
party.
5. Before 1 January 1958 and before the end of any period envisaged
in paragraph 1 a contracting party may elect by notifying the
CONTRACTING PARTIES to reserve the right, for the duration of the next
period, to modify the appropriate Schedule in accordance with the
procedures of paragraph 1 to 3. If a contracting party so elects, other
contracting parties shall have the right, during the same period, to
modify or withdraw, in accordance with the same procedures, concessions
initially negotiated with that contracting party.
B. Text of Ad Article XXVIII
Ad Article XXVIII
The CONTRACTING PARTIES and each contracting party concerned should
arrange to conduct the negotiations and consultations with the greatest
possible secrecy in order to avoid premature disclosure of details of
prospective tariff changes. The CONTRACTING PARTIES shall be informed
immediately of all changes in national tariffs resulting from recourse
to this Article.
Paragraph 1
1. If the CONTRACTING PARTIES specify a period other than a
three-year period, a contracting party may act pursuant to paragraph 1
or paragraph 3 of Article XXVIII on the first day following the
expiration of such other period and, unless the CONTRACTING PARTIES have
again specified another period, subsequent periods will be three-year
periods following the expiration of such specified period.
2. The provision that on 1 January 1958, and on other days determined
pursuant to paragraph 1, a contracting party “may … modify or
withdraw a concession” means that on such day, and on the first day
after the end of each period, the legal obligation of such contracting
party under Article II is altered; it does not mean that the changes in
its customs tariff should necessarily be made effective on that day. If
a tariff change resulting from negotiations undertaken pursuant to this
Article is delayed, the entry into force of any compensatory concessions
may be similarly delayed.
3. Not earlier than six months, nor later than three months, prior to
1 January 1958, or to the termination date of any subsequent period, a
contracting party wishing to modify or withdraw any concession embodied
in the appropriate Schedule, should notify the CONTRACTING PARTIES to
this effect. The CONTRACTING PARTIES shall then determine the
contracting party or contracting parties with which the negotiations or
consultations referred to in paragraph 1 shall take place. Any
contracting party so determined shall participate in such negotiations
or consultations with the applicant contracting party with the aim of
reaching agreement before the end of the period. Any extension of the
assured life of the Schedules shall relate to the Schedules as modified
after such negotiations, in accordance with paragraphs
1, 2, and 3 of
Article XXVIII. If the CONTRACTING PARTIES are arranging for
multilateral tariff negotiations to take place within the period of six
months before 1 January 1958, or before any other day determined
pursuant to paragraph 1, they shall include in the arrangements for such
negotiations suitable procedures for carrying out the negotiations
referred to in this paragraph.
4. The object of providing for the participation in the negotiation
of any contracting party with a principle supplying interest, in
addition to any contracting party with which the concession was
originally negotiated, is to ensure that a contracting party with a
larger share in the trade affected by the concession than a contracting
party with which the concession was originally negotiated shall have an
effective opportunity to protect the contractual right which it enjoys
under this Agreement. On the other hand, it is not intended that the
scope of the negotiations should be such as to make negotiations and
agreement under Article XXVIII unduly difficult nor to create
complications in the application of this Article in the future to
concessions which result from negotiations thereunder. Accordingly, the
CONTRACTING PARTIES should only determine that a contracting party has a
principal supplying interest if that contracting party has had, over a
reasonable period of time prior to the negotiations, a larger share in
the market of the applicant contracting party than a contracting party
with which the concession was initially negotiated or would, in the
judgement of the CONTRACTING PARTIES, have had such a share in the
absence of discriminatory quantitative restrictions maintained by the
applicant contracting party. It would therefore not be appropriate for
the CONTRACTING PARTIES to determine that more than one contracting
party, or in those exceptional cases where there is near equality more
than two contracting parties, had a principal supplying interest.
5. Notwithstanding the definition of a principal supplying interest
in note 4 to paragraph 1, the CONTRACTING PARTIES may exceptionally
determine that a contracting party has a principal supplying interest if
the concession in question affects trade which constitutes a major part
of the total exports of such contracting party.
6. It is not intended that provision for participation in the
negotiations of any contracting party with a principal supplying
interest, and for consultation with any contracting party having a
substantial interest in the concession which the applicant contracting
party is seeking to modify or withdraw, should have the effect that it
should have to pay compensation or suffer retaliation greater than the
withdrawal or modification sought, judged in the light of the conditions
of trade at the time of the proposed withdrawal or modification, making
allowance for any discriminatory quantitative restrictions maintained by
the applicant contracting party.
7. The expression “substantial interest” is not capable of a
precise definition and accordingly may present difficulties for the
CONTRACTING PARTIES. It is, however, intended to be construed to cover
only those contracting parties which have, or in the absence of
discriminatory quantitative restrictions affecting their exports could
reasonably be expected to have, a significant share in the market of the
contracting party seeking to modify or withdraw the concession.
Paragraph 4
1. Any request for authorization to enter into negotiations shall be
accompanied by all relevant statistical and other data. A decision on
such request shall be made within thirty days of its submission.
2. It is recognized that to permit certain contracting parties,
depending in large measure on a relatively small number of primary
commodities and relying on the tariff as an important aid for furthering
diversification of their economies or as an important source of revenue,
normally to negotiate for the modification or withdrawal of concessions
only under paragraph 1 of Article XXVIII, might cause them at such time
to make modifications or withdrawals which in the long run would prove
unnecessary. To avoid such a situation the CONTRACTING PARTIES shall
authorize any such contracting party, under paragraph
4, to enter into
negotiations unless they consider this would result in, or contribute
substantially towards, such an increase in tariff levels as to threaten
the stability of the Schedules to this Agreement or lead to undue
disturbance of international trade.
3. It is expected that negotiations authorized under
paragraph 4 for
modification or withdrawal of a single item, or a very small group of
items, could normally be brought to a conclusion in sixty days. It is
recognized, however, that such a period will be inadequate for cases
involving negotiations for the modification or withdrawal of a larger
number of items and in such cases, therefore, it would be appropriate
for the CONTRACTING PARTIES to prescribe a longer period.
4. The determination referred to in
paragraph 4 (d) shall be made by
the CONTRACTING PARTIES within thirty days of the submission of the
matter to them unless the applicant contracting party agrees to a longer
period.
5. In determining under paragraph 4
(d) whether an applicant
contracting party has unreasonably failed to offer adequate
compensation, it is understood that the CONTRACTING PARTIES will take
due account of the special position of a contracting party which has
bound a high proportion of its tariffs at very low rates of duty and to
this extent has less scope than other contracting parties to make
compensatory adjustment.
C. Understanding on the Interpretation of Article XXVIII of the
General Agreement on Tariffs and Trade 1994
Members hereby agree as follows:
1. For the purposes of modification or withdrawal of a concession,
the Member which has the highest ratio of exports affected by the
concession (i.e. exports of the product to the market of the Member
modifying or withdrawing the concession) to its total exports shall be
deemed to have a principal supplying interest if it does not already
have an initial negotiating right or a principal supplying interest as
provided for in paragraph 1 of Article XXVIII. It is however agreed that
this paragraph will be reviewed by the Council for Trade in Goods five
years from the date of entry into force of the WTO Agreement with a view
to deciding whether this criterion has worked satisfactorily in securing
a redistribution of negotiating rights in favour of small and
medium-sized exporting Members. If this is not the case, consideration
will be given to possible improvements, including, in the light of the
availability of adequate data, the adoption of a criterion based on the
ratio of exports affected by the concession to exports to all markets of
the product in question.
2. Where a Member considers that it has a principal supplying
interest in terms of paragraph 1, it should communicate its claim in
writing, with supporting evidence, to the Member proposing to modify or
withdraw a concession, and at the same time inform the Secretariat.
Paragraph 4 of the “Procedures for Negotiations under Article XXVIII”
adopted on 10 November 1980 (BISD 27S/26-28) shall apply in these
cases.
3. In the determination of which Members have a principal supplying
interest (whether as provided for in paragraph 1 above or in
paragraph 1
of Article XXVIII) or substantial interest, only trade in the affected
product which has taken place on an MFN basis shall be taken into
consideration. However, trade in the affected product which has taken
place under non-contractual preferences shall also be taken into account
if the trade in question has ceased to benefit from such preferential
treatment, thus becoming MFN trade, at the time of the negotiation for
the modification or withdrawal of the concession, or will do so by the
conclusion of that negotiation.
4. When a tariff concession is modified or withdrawn on a new product
(i.e. a product for which three years’ trade statistics are not
available) the Member possessing initial negotiating rights on the
tariff line where the product is or was formerly classified shall be
deemed to have an initial negotiating right in the concession in
question. The determination of principal supplying and substantial
interests and the calculation of compensation shall take into account,
inter alia, production capacity and investment in the affected product
in the exporting Member and estimates of export growth, as well as
forecasts of demand for the product in the importing Member. For the
purposes of this paragraph, “new product” is understood to include a
tariff item created by means of a breakout from an existing tariff line.
5. Where a Member considers that it has a principal supplying or a
substantial interest in terms of paragraph 4, it should communicate its
claim in writing, with supporting evidence, to the Member proposing to
modify or withdraw a concession, and at the same time inform the
Secretariat. Paragraph 4 of the above-mentioned “Procedures for
Negotiations under Article XXVIII” shall apply in these cases.
6. When an unlimited tariff concession is replaced by a tariff rate
quota, the amount of compensation provided should exceed the amount of
the trade actually affected by the modification of the concession. The
basis for the calculation of compensation should be the amount by which
future trade prospects exceed the level of the quota. It is understood
that the calculation of future trade prospects should be based on the
greater of:
(a) the average annual trade in the most recent representative
three-year period, increased by the average annual growth rate of
imports in that same period, or by 10 per cent, whichever is the
greater; or
(b) trade in the most recent year increased by 10 per cent.
In no case shall a Member’s liability for compensation exceed that
which would be entailed by complete withdrawal of the concession.
7. Any Member having a principal supplying interest, whether as
provided for in paragraph 1 above or in paragraph 1 of Article
XXVIII,
in a concession which is modified or withdrawn shall be accorded an
initial negotiating right in the compensatory concessions, unless
another form of compensation is agreed by the Members concerned.
D. Interpretation and Application of Article XXVIII
1. Legal relevance of Article XXVIII negotiations in interpretation
of GATT Articles
731. In EC —
Poultry, Brazil claimed that the MFN principle in
Articles I and XIII did not apply to tariff-rate quotas resulting from
compensation negotiations under Article XXVIII of the
GATT. The Panel
rejected this argument and held:
“[I]f a preferential treatment of a particular trading partner not
elsewhere justified is permitted under the pretext of ‘compensatory
adjustment’ under Article XXVIII:2, it would create a serious loophole
in the multilateral trading system. Such a result would fundamentally
alter the overall balance of concessions Article XXVIII is designed to
achieve.”(1029)
732. The Panel concluded that a tariff-rate quota which resulted from
negotiations under Article XXVIII of the
GATT 1947, and which was
incorporated into a Member’s Uruguay Round Schedule, must be
administered in a non-discriminatory manner consistent with Article XIII
of the GATT 1994.(1030) The Appellate Body agreed:
“We see nothing in Article XXVIII to suggest that compensation
negotiated within its framework may be exempt from compliance with the
non-discrimination principle inscribed in Articles I and
XIII of the
GATT 1994. As the Panel observed, this interpretation is, furthermore,
supported by the negotiating history of Article
XXVIII. Regarding the
provision which eventually became Article
XXVIII:3, the Chairman of the
Tariff Agreements Committee at Geneva in 1947, concluded:
‘It was agreed that there was no intention to interfere in any way
with the operation of the most-favoured-nation clause. This Article is
headed “Modification of Schedules”. It refers throughout to
concessions negotiated under paragraph 1 of Article
II, the Schedules,
and there is no reference to Article
I, which is the
Most-Favoured-Nation Clause. Therefore, I think the intent is clear:
that in no way should this Article interfere with the operation of the
Most-Favoured-Nation Clause.’(1031)
Although this statement refers specifically to the MFN clause in
Article I of the GATT, logic requires that it applies equally to the
non-discriminatory administration of quotas and tariff-rate quotas under
Article XIII of the GATT 1994.”(1032)
2. Review of the Understanding on the Interpretation of Article XXVIII of the GATT 1994
733. On 24 January 2000, the Council for Trade in Goods requested the
Committee on Market Access to conduct the review envisaged in paragraph 1 of the Understanding on the Interpretation of Article XXVIII of the
GATT 1994.(1033) On 12 October 2000, the Committee on Market Access agreed
to report to the Council for Trade in Goods that the review had been
carried out as mandated by that body and that, at that stage, there was
no basis to change the criterion contained in paragraph 1 of the
aforementioned Understanding, with a reservation that in the future any
Member would be free to raise this matter when necessary.(1034)
3. Reference to GATT practice
734. With respect to GATT practice under
Article XXVIII.
XXX. Article XXVIII
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A. Text of Article XXVIII bis
Article XXVIII bis: Tariff Negotiations
1. The contracting parties recognize that customs duties often
constitute serious obstacles to trade; thus negotiations on a reciprocal
and mutually advantageous basis, directed to the substantial reduction
of the general level of tariffs and other charges on imports and exports
and in particular to the reduction of such high tariffs as discourage
the importation even of minimum quantities, and conducted with due
regard to the objectives of this Agreement and the varying needs of
individual contracting parties, are of great importance to the expansion
of international trade. The CONTRACTING PARTIES may therefore sponsor
such negotiations from time to time.
2. (a)
Negotiations under this Article may be carried out on a
selective product-by-product basis or by the application of such
multilateral procedures as may be accepted by the contracting parties
concerned. Such negotiations may be directed towards the reduction of
duties, the binding of duties at then existing levels or undertakings
that individual duties or the average duties on specified categories of
products shall not exceed specified levels. The binding against increase
of low duties or of duty-free treatment shall, in principle, be
recognized as a concession equivalent in value to the reduction of high
duties.
(b) The contracting parties recognize that in general the success of
multilateral negotiations would depend on the participation of all
contracting parties which conduct a substantial proportion of their
external trade with one another.
3. Negotiations shall be conducted on a basis which affords adequate
opportunity to take into account:
(a) the needs of individual contracting parties and individual
industries;
(b) the needs of less-developed countries for a more flexible use of
tariff protection to assist their economic development and the special
needs of these countries to maintain tariffs for revenue purposes; and
(c) all other relevant circumstances, including the fiscal,
developmental, strategic and other needs of the contracting parties
concerned.
B. Text of Ad Article XXVIII bis
Ad Article XXVIII bis: Paragraph 3
It is understood that the reference to fiscal needs would include the
revenues aspect of duties and particularly duties imposed primarily for
revenue purpose, or duties imposed on products which can be substituted
for products subject to revenue duties to prevent the avoidance of such
duties.
C. Interpretation and Application of Article XXVIII bis
No jurisprudence or decision of a competent WTO body.
XXXI. Article XXIX
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A. Text of Article XXIX
Article XXIX: The Relation of this Agreement to the Havana Charter
1.
The contracting parties undertake to observe to the fullest extent of
their executive authority the general principles of Chapters I to VI
inclusive and of Chapter IX of the Havana Charter pending their
acceptance of it in accordance with their constitutional procedures.
2.
Part II of this Agreement shall be suspended on the day on which
the Havana Charter enters into force.
3. If by September 30, 1949, the Havana Charter has not entered into
force, the contracting parties shall meet before December 31, 1949, to
agree whether this Agreement shall be amended, supplemented or
maintained.
4. If at any time the Havana Charter should cease to be in force, the
CONTRACTING PARTIES shall meet as soon as practicable thereafter to
agree whether this Agreement shall be supplemented, amended or
maintained. Pending such agreement, Part II of this Agreement shall
again enter into force; Provided that the provisions of Part II other
than Article XXIII shall be replaced,
mutatis mutandis, in the form in
which they then appeared in the Havana Charter; and Provided further
that no contracting party shall be bound by any provisions which did not
bind it at the time when the Havana Charter ceased to be in force.
5. If any contracting party has not accepted the Havana Charter by
the date upon which it enters into force, the CONTRACTING PARTIES shall
confer to agree whether, and if so in what way, this Agreement in so far
as it affects relations between such contracting party and other
contracting parties, shall be supplemented or amended. Pending such
agreement the provisions of Part II of this Agreement shall,
notwithstanding the provisions of paragraph 2 of this
Article, continue
to apply as between such contracting party and other contracting
parties.
6. Contracting parties which are Members of the International Trade
Organization shall not invoke the provisions of this Agreement so as to
prevent the operation of any provision of the Havana Charter. The
application of the principle underlying this paragraph to any
contracting party which is not a Member of the International Trade
Organization shall be the subject of an agreement pursuant to paragraph
5 of this Article.
B. Text of Ad Article XXIX
Ad Article XXIX: Paragraph 1
Chapters VII and VIII of the Havana Charter have been excluded from
paragraph 1 because they generally deal with the organization, functions
and procedures of the International Trade Organization.
C. Interpretation and Application of Article XXIX
No jurisprudence or decision of a competent WTO body.
XXXII. Article XXX
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A. Text of Article XXX
Article XXX: Amendments
1. Except where provision for modification is made elsewhere in this
Agreement, amendments to the provisions of Part I of this Agreement or
the provisions of Article XXIX or of this Article shall become effective
upon acceptance by all the contracting parties, and other amendments to
this Agreement shall become effective, in respect of those contracting
parties which accept them, upon acceptance by two-thirds of the
contracting parties and thereafter for each other contracting party upon
acceptance by it.
2. Any contracting party accepting an amendment to this Agreement
shall deposit an instrument of acceptance with the Secretary-General of
the United Nations within such period as the CONTRACTING PARTIES may
specify. The CONTRACTING PARTIES may decide that any amendment made
effective under this Article is of such a nature that any contracting
party which has not accepted it within a period specified by the
CONTRACTING PARTIES shall be free to withdraw from this Agreement, or to
remain a contracting party with the consent of the CONTRACTING PARTIES.
B. Interpretation and Application of Article XXX
735. With respect to amendments to the
WTO Agreement, see Chapter on
the WTO Agreement, Section XI.B.
1. Reference to GATT practice
736. With respect to GATT practice under
Article XXX.
XXXIII. Article XXXI
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A. Text of Article XXXI
Article XXXI: Withdrawal
Without prejudice to the provisions of
paragraph 12 of Article XVIII,
of Article XXIII or of paragraph 2 of Article XXX, any contracting party
may withdraw from this Agreement, or may separately withdraw on behalf
of any of the separate customs territories for which it has
international responsibility and which at the time possesses full
autonomy in the conduct of its external commercial relations and of the
other matters provided for in this Agreement. The withdrawal shall take
effect upon the expiration of six months from the day on which written
notice of withdrawal is received by the Secretary-General of the United
Nations.
B. Interpretation and Application of Article XXXI
737. With respect to withdrawal from the WTO, see Chapter on the
WTO Agreement, Section XVI.B.
1. Reference to GATT practice
738. With respect to GATT practice under
Article XXXI.
XXXIV. Article XXXII
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A. Text of Article XXXII
Article XXXII: Contracting Parties
1. The contracting parties to this Agreement shall be understood to
mean those governments which are applying the provisions of this
Agreement under Articles XXVI or XXXIII or pursuant to the Protocol of
Provisional Application.
2. At any time after the entry into force of this Agreement pursuant
to paragraph 6 of Article XXVI, those contracting parties which have
accepted this Agreement pursuant to paragraph 4 of Article XXVI may
decide that any contracting party which has not so accepted it shall
cease to be a contracting party.
B. Interpretation and Application of Article XXXII
No jurisprudence or decision of a competent WTO body.
1. Reference to GATT practice
739. With respect to GATT practice under
Article XXXII.
XXXV. Article XXXIII
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A. Text of Article XXXIII
Article XXXIII: Accession
A government not party to this Agreement, or a government acting on
behalf of a separate customs territory possessing full autonomy in the
conduct of its external commercial relations and of the other matters
provided for in this Agreement, may accede to this Agreement, on its own
behalf or on behalf of that territory, on terms to be agreed between
such government and the CONTRACTING PARTIES. Decisions of the
CONTRACTING PARTIES under this paragraph shall be taken by a two-thirds
majority.
B. Interpretation and Application of Article XXXIII
740. With respect to accession to the WTO, see Chapter on the
WTO Agreement, Section XIII.B.
1. Reference to GATT practice
741. With respect to GATT practice under
Article XXXIII.
XXXVI. Article XXXIV
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A. Text of Article XXXIV
Article XXXIV: Annexes
The annexes to this Agreement are hereby made an integral part of
this Agreement.
B. Interpretation and Application of Article XXXIV
742. See Chapter on the
WTO Agreement,
Section III.B.
1. Reference to GATT practice
743. With respect to GATT practice under
Article XXXIV.
XXXVII. Article XXXV
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A. Text of Article XXXV
Article XXXV: Non-application of the Agreement between
Particular
Contracting Parties
1. This Agreement, or alternatively
Article II of this Agreement,
shall not apply as between any contracting party and any other
contracting party if:
(a) the two contracting parties have not entered into tariff
negotiations with each other, and
(b) either of the contracting parties, at the time either becomes a
contracting party, does not consent to such application.
2. The CONTRACTING PARTIES may review the operation of this Article
in particular cases at the request of any contracting party and make
appropriate recommendations.
B. Interpretation and Application of Article XXXV
744. With respect to the non-application of the Multilateral Trade
Agreements between particular Members, see Chapter on the WTO
Agreement,
Section XIV.B.
1. Reference to GATT practice
745. With respect to GATT practice under
Article XXXV.
Part IV: Trade and Development
XXXVIII. Article XXXVI
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A. Text of Article XXXVI
Article XXXVI: Principles and Objectives
1. The contracting parties,
(a) recalling that the basic objectives of this Agreement include the
raising of standards of living and the progressive development of the
economies of all contracting parties, and considering that the
attainment of these objectives is particularly urgent for less-developed
contracting parties;
(b) considering that export earnings of the less-developed
contracting parties can play a vital part in their economic development
and that the extent of this contribution depends on the prices paid by
the less-developed contracting parties for essential imports, the volume
of their exports, and the prices received for these exports;
(c) noting, that there is a wide gap between standards of living in
less-developed countries and in other countries;
(d) recognizing that individual and joint action is essential to
further the development of the economies of less-developed contracting
parties and to bring about a rapid advance in the standards of living in
these countries;
(e) recognizing that international trade as a means of achieving
economic and social advancement should be governed by such rules and
procedures — and measures in conformity with such rules and procedures
— as are consistent with the objectives set forth in this Article;
(f) noting that the CONTRACTING PARTIES may enable less-developed
contracting parties to use special measures to promote their trade and
development;
agree as follows.
2. There is need for a rapid and sustained expansion of the export
earnings of the less-developed contracting parties.
3. There is need for positive efforts designed to ensure that
less-developed contracting parties secure a share in the growth in
international trade commensurate with the needs of their economic
development.
4. Given the continued dependence of many less-developed contracting
parties on the exportation of a limited range of primary products,
there is need to provide in the largest possible measure more favourable
and acceptable conditions of access to world markets for these products,
and wherever appropriate to devise measures designed to stabilize and
improve conditions of world markets in these products, including in
particular measures designed to attain stable, equitable and
remunerative prices, thus permitting an expansion of world trade and
demand and a dynamic and steady growth of the real export earnings of
these countries so as to provide them with expanding resources for their
economic development.
5. The rapid expansion of the economies of the less-developed
contracting parties will be facilitated by a diversification of the
structure of their economies and the avoidance of an excessive
dependence on the export of primary products. There is, therefore, need
for increased access in the largest possible measure to markets under
favourable conditions for processed and manufactured products currently
or potentially of particular export interest to less-developed
contracting parties.
6. Because of the chronic deficiency in the export proceeds and other
foreign exchange earnings of less-developed contracting parties, there
are important interrelationships between trade and financial assistance
to development. There is, therefore, need for close and continuing
collaboration between the CONTRACTING PARTIES and the international
lending agencies so that they can contribute most effectively to
alleviating the burdens these less-developed contracting parties assume
in the interest of their economic development.
7. There is need for appropriate collaboration between the
CONTRACTING PARTIES, other intergovernmental bodies and the organs and
agencies of the United Nations system, whose activities relate to the
trade and economic development of less-developed countries.
8. The developed
contracting parties do not expect reciprocity for commitments made by
them in trade negotiations to reduce or remove tariffs and other
barriers to the trade of less-developed contracting parties.
9. The adoption of measures to give effect to these principles and
objectives shall be a matter of conscious and purposeful effort on the
part of the contracting parties both individually and jointly.
B. Text of Ad Article XXXVI
Ad Article XXXVI: Paragraph 1
This Article is based upon the objectives set forth in
Article I as
it will be amended by Section A of paragraph 1 of the Protocol Amending
Part I and Articles XXIX and XXX when that Protocol enters into force.(1)
(footnote original)
1 This Protocol was abandoned on 1 January 1968.
Paragraph 4
The term “primary products” includes agricultural products,
vide
paragraph 2 of the note ad Article XVI, Section B.
Paragraph 5
A diversification programme would generally include the
intensification of activities for the processing of primary products and
the development of manufacturing industries, taking into account the
situation of the particular contracting party and the world outlook for
production and consumption of different commodities.
Paragraph 8
It is understood that the phrase “do not expect reciprocity”
means, in accordance with the objectives set forth in this Article, that
the less-developed contracting parties should not be expected, in the
course of trade negotiations, to make contributions which are
inconsistent with their individual development, financial and trade
needs, taking into consideration past trade developments.
This paragraph would apply in the event of action under
Section A of
Article XVIII, Article XXVIII, Article XXVIII
bis
(Article XXIX after
the amendment set forth in Section A of paragraph 1 of the Protocol
Amending Part I and Articles XXIX and
XXX shall have become effective(2)), Article
XXXIII, or any other procedure under this Agreement.
(footnote original)
2 This Protocol was abandoned on 1 January 1968.
C. Interpretation and Application of Article XXXVI
746. With respect to the issue of trade and development under the
WTO Agreement, see the Chapter on the WTO Agreement, paragraphs
V.B.7. Also,
with respect to special and preferential treatment for developing
country Members, see V.B.7(a)(iv).
1. Reference to GATT practice
747. With respect to GATT practice under
Article XXXVI.
XXXIX. Article XXXVII
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A. Text of Article XXXVII
Article XXXVII: Commitments
1. The developed contracting parties shall to the fullest extent
possible — that is, except when compelling reasons, which may include
legal reasons, make it impossible — give effect to the following
provisions:
(a)
accord high priority to the reduction and elimination of barriers to
products currently or potentially of particular export interest to
less-developed contracting parties, including customs duties and other
restrictions which differentiate unreasonably between such products in
their primary and in their processed forms;
(b) refrain from introducing, or increasing the incidence of, customs
duties or non-tariff import barriers on products currently or
potentially of particular export interest to less-developed contracting
parties; and
(c) (i) refrain from imposing new fiscal measures,
and
(ii) in any adjustments of fiscal policy accord high priority to the
reduction and elimination of fiscal measures, which would hamper, or
which hamper, significantly the growth of consumption of primary
products, in raw or processed form, wholly or mainly produced in the
territories of less-developed contracting parties, and which are applied
specifically to those products.
2. (a)
Whenever it is considered that effect is not being given to
any of the provisions of subparagraph (a), (b) or
(c) of paragraph 1,
the matter shall be reported to the CONTRACTING PARTIES either by the
contracting party not so giving effect to the relevant provisions or by
any other interested contracting party.
(b) (i) The CONTRACTING PARTIES shall, if requested so to do by any
interested contracting party, and without prejudice to any bilateral
consultations that may be undertaken, consult with the contracting party
concerned and all interested contracting parties with respect to the
matter with a view to reaching solutions satisfactory to all contracting
parties concerned in order to further the objectives set forth in
Article XXXVI. In the course of these consultations, the reasons given
in cases where effect was not being given to the provisions of subparagraph
(a), (b) or (c) of paragraph
1 shall be examined.
(ii) As the implementation of the provisions of
subparagraph (a), (b) or
(c) of paragraph 1 by individual contracting parties may in some
cases be more readily achieved where action is taken jointly with other
developed contracting parties, such consultation might, where
appropriate, be directed towards this end.
(iii) The consultations by the CONTRACTING PARTIES might also, in
appropriate cases, be directed towards agreement on joint action
designed to further the objectives of this Agreement as envisaged in
paragraph 1 of Article XXV.
3. The developed contracting parties shall:
(a) make every effort, in cases where a government directly or
indirectly determines the resale price of products wholly or mainly
produced in the territories of less-developed contracting parties, to
maintain trade margins at equitable levels;
(b) give active consideration to the adoption of other measures
designed to provide greater scope for the development of imports from
less-developed contracting parties and collaborate in appropriate
international action to this end;
(c) have special regard to the trade interests of less-developed
contracting parties when considering the application of other measures
permitted under this Agreement to meet particular problems and explore
all possibilities of constructive remedies before applying such measures
where they would affect essential interests of those contracting
parties.
4. Less-developed contracting parties agree to take appropriate
action in implementation of the provisions of Part IV for the benefit of
the trade of other less-developed contracting parties, in so far as such
action is consistent with their individual present and future
development, financial and trade needs taking into account past trade
developments as well as the trade interests of less-developed
contracting parties as a whole.
5. In the implementation of the commitments set forth in
paragraph 1
to 4 each contracting party shall afford to any other interested
contracting party or contracting parties full and prompt opportunity for
consultations under the normal procedures of this Agreement with respect
to any matter or difficulty which may arise.
B. Text of Ad Article XXXVII
Ad Article XXXVII: Paragraph 1 (a)
This paragraph would apply in the event of negotiations for reduction
or elimination of tariffs or other restrictive regulations of commerce
under Articles XXVIII, XXVIII
bis
(XXIX after the amendment set forth in
Section A of paragraph 1 of the Protocol Amending Part I and Articles
XXIX and XXX shall have become effective(13)), and
Article XXXIII, as well
as in connection with other action to effect such reduction or
elimination which contracting parties may be able to undertake.
(footnote original)
13 This Protocol was abandoned on 1 January
1968.
Paragraph 3 (b)
The other measures referred to in this paragraph might include steps
to promote domestic structural changes, to encourage the consumption of
particular products, or to introduce measures of trade promotion.
C. Interpretation and Application of Article XXXVII
748. With respect to the issue of trade and development under the
WTO Agreement, see the Chapter on the WTO Agreement, Section
V.B.7. Also,
with respect to special and preferential treatment for developing
country Members, see Section
V.B.7(a)(iv).
1. Reference to GATT practice
749. With respect to GATT practice under
Article XXXVII.
XL. Article XXXVIII
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A. Text of Article XXXVIII
Article XXXVIII: Joint Action
1. The contracting parties shall collaborate jointly, with the
framework of this Agreement and elsewhere, as appropriate, to further
the objectives set forth in Article XXXVI.
2. In particular, the CONTRACTING PARTIES shall:
(a) where appropriate, take action, including action through
international arrangements, to provide improved and acceptable
conditions of access to world markets for primary products of particular
interest to less-developed contracting parties and to devise measures
designed to stabilize and improve conditions of world markets in these
products including measures designed to attain stable, equitable and
remunerative prices for exports of such products;
(b) seek appropriate collaboration in matters of trade and
development policy with the United Nations and its organs and agencies,
including any institutions that may be created on the basis of
recommendations by the United Nations Conference on Trade and
Development;
(c) collaborate in analysing the development plans and policies of
individual less-developed contracting parties and in examining trade and
aid relationships with a view to devising concrete measures to promote
the development of export potential and to facilitate access to export
markets for the products of the industries thus developed and, in this
connection, seek appropriate collaboration with governments and
international organizations, and in particular with organizations having
competence in relation to financial assistance for economic development,
in systematic studies of trade and aid relationships in individual
less-developed contracting parties aimed at obtaining a clear analysis
of export potential, market prospects and any further action that may be
required;
(d) keep under continuous review the development of world trade with
special reference to the rate of growth of the trade of less-developed
contracting parties and make such recommendations to contracting parties
as may, in the circumstances, be deemed appropriate;
(e) collaborate in seeking feasible methods to expand trade for the
purpose of economic development, through international harmonization and
adjustment of national policies and regulations, through technical and
commercial standards affecting production, transportation and marketing,
and through export promotion by the establishment of facilities for the
increased flow of trade information and the development of market
research; and
(f) establish such institutional arrangements as may be necessary to
further the objectives set forth in Article XXXVI and to give effect to
the provision of this Part.
B. Interpretation and Application of Article XXXVIII
750. With respect to the issue of trade and development under the
WTO Agreement, see the Chapter on the WTO Agreement, Section
V.B.7. Also,
with respect to special and preferential treatment for developing
country Members, see V.B.7.(a)(iv).
1. Reference to GATT practice
751. With respect to GATT practice under
Article XXXVIII.
Footnotes:
1029. Panel Report on
EC — Poultry, para.
215. back to text
1030. Appellate Body Report on EC — Poultry,
para. 102. back to text
1031. (footnote original) EPCT/TAC/PV/18, p.
46; see Panel Report, para. 217. back to text
1032. Appellate Body Report on EC — Poultry,
para. 100. back to text
1033. G/C/M/42, para. 4. back to text
1034. G/MA/M/26, Section 6. back to text
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