Article
XVIII*: Governmental Assistance to Economic Development
1. The contracting parties recognize that the attainment of the
objectives of this Agreement will be facilitated by the progressive
development of their economies, particularly of those contracting
parties the economies of which can only support low standards of
living* and are in the early stages of development.*
2. The contracting parties recognize further that it may be necessary for
those contracting parties, in order to implement programmes and
policies of economic development designed to raise the general
standard of living of their people, to take protective or other
measures affecting imports, and that such measures are justified in so
far as they facilitate the attainment of the objectives of this
Agreement. They agree, therefore, that those contracting parties
should enjoy additional facilities to enable them (a) to maintain
sufficient flexibility in their tariff structure to be able to grant
the tariff protection required for the establishment of a particular
industry* and (b) to apply quantitative restrictions for balance of
payments purposes in a manner which takes full account of the
continued high level of demand for imports likely to be generated by
their programmes of economic development.
3. The contracting parties recognize finally that, with those additional
facilities which are provided for in Sections A and B of this Article,
the provisions of this Agreement would normally be sufficient to
enable contracting parties to meet the requirements of their economic
development. They agree, however, that there may be circumstances
where no measure consistent with those provisions is practicable to
permit a contracting party in the process of economic development to
grant the governmental assistance required to promote the
establishment of particular industries* with a view to raising the
general standard of living of its people. Special procedures are laid
down in Sections C and D of this Article to deal with those cases.
4. (a) Consequently, a contracting party, the economy of which can only
support low standards of living* and is in the early stages of
development,* shall be free to deviate temporarily from the provisions
of the other Articles of this Agreement, as provided in Sections A,
B and C of this Article.
(b) A contracting party, the economy of which is in the process of
development, but which does not come within the scope of subparagraph
(a) above, may submit applications to the CONTRACTING PARTIES under
Section D of this Article.
5. The contracting parties recognize that the export earnings of
contracting parties, the economies of which are of the type described
in paragraph 4 (a) and (b) above and which depend on exports of a
small number of primary commodities, may be seriously reduced by a
decline in the sale of such commodities. Accordingly, when the exports
of primary commodities by such a contracting party are seriously
affected by measures taken by another contracting party, it may have
resort to the consultation provisions of Article XXII of this
Agreement.
6. The CONTRACTING PARTIES shall review annually all measures applied
pursuant to the provisions of Sections C and D of this Article.
Section
A
7. (a) If a contracting party coming within the scope of paragraph 4 (a) of
this Article considers it desirable, in order to promote the
establishment of a particular industry* with a view to raising the
general standard of living of its people, to modify or withdraw a
concession included in the appropriate Schedule annexed to this
Agreement, it shall notify the CONTRACTING PARTIES to this effect and
enter into negotiations 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 substantial
interest therein. If agreement is reached between such contracting
parties concerned, they shall be free to modify or withdraw
concessions under the appropriate Schedules to this Agreement in order
to give effect to such agreement, including any compensatory
adjustments involved.
(b) If agreement is not reached within sixty days after the notification
provided for in subparagraph (a) above, the contracting party which
proposes to modify or withdraw the concession may refer the matter to
the CONTRACTING PARTIES which shall promptly examine it. If they find
that the contracting party which proposes to modify or withdraw the
concession has made every effort to reach an agreement and that the
compensatory adjustment offered by it is adequate, that contracting
party shall be free to modify or withdraw the concession if, at the
same time, it gives effect to the compensatory adjustment. If the
CONTRACTING PARTIES do not find that the compensation offered by a
contracting party proposing to modify or withdraw the concession is
adequate, but find that it has made every reasonable effort to offer
adequate compensation, that contracting party shall be free to proceed
with such modification or withdrawal. If such action is taken, any
other contracting party referred to in subparagraph (a) above shall be
free to modify or withdraw substantially equivalent concessions
initially negotiated with the contracting party which has taken the
action.*
Section
B
8. The contracting parties recognize that contracting parties coming
within the scope of paragraph 4 (a) of this Article tend, when they
are in rapid process of development, to experience balance of payments
difficulties arising mainly from efforts to expand their internal
markets as well as from the instability in their terms of trade.
9. In order to safeguard its external financial position and to ensure a
level of reserves adequate for the implementation of its programme of
economic development, a contracting party coming within the scope of
paragraph 4 (a) of this Article may, subject to the provisions of
paragraphs 10 to 12, control the general level of its imports by
restricting the quantity or value of merchandise permitted to be
imported; Provided that the import restrictions instituted,
maintained or intensified shall not exceed those necessary:
(a) to forestall the threat of, or to stop, a serious decline in its
monetary reserves, or
(b) in the case of a contracting party with inadequate monetary reserves,
to achieve a reasonable rate of increase in its reserves.
Due
regard shall be paid in either case to any special factors which may
be affecting the reserves of the contracting party or its need for
reserves, including, where special external credits or other resources
are available to it, the need to provide for the appropriate use of
such credits or resources.
10. In applying these restrictions, the contracting party may determine
their incidence on imports of different products or classes of
products in such a way as to give priority to the importation of those
products which are more essential in the light of its policy of
economic development; Provided that the restrictions are so
applied as to avoid unnecessary damage to the commercial or economic
interests of any other contracting party and not to prevent
unreasonably the importation of any description of goods in minimum
commercial quantities the exclusion of which would impair regular
channels of trade; and Provided further that the restrictions
are not so applied as to prevent the importation of commercial samples
or to prevent compliance with patent, trade mark, copyright or similar
procedures.
11. In carrying out its domestic policies, the contracting party concerned
shall pay due regard to the need for restoring equilibrium in its
balance of payments on a sound and lasting basis and to the
desirability of assuring an economic employment of productive
resources. It shall progressively relax any restrictions applied under
this Section as conditions improve, maintaining them only to the
extent necessary under the terms of paragraph 9 of this Article and
shall eliminate them when conditions no longer justify such
maintenance; Provided that no contracting party shall be
required to withdraw or modify restrictions on the ground that a
change in its development policy would render unnecessary the
restrictions which it is applying under this Section.*
12. (a) Any contracting party applying new restrictions or raising the general
level of its existing restrictions by a substantial intensification of
the measures applied under this Section, shall immediately after
instituting or intensifying such restrictions (or, in circumstances in
which prior consultation is practicable, before doing so) consult with
the CONTRACTING PARTIES as to the nature of its balance of payments
difficulties, alternative corrective measures which may be available,
and the possible effect of the restrictions on the economies of other
contracting parties.
(b) On a date to be determined by them* the CONTRACTING PARTIES shall
review all restrictions still applied under this Section on that date.
Beginning two years after that date, contracting parties applying
restrictions under this Section shall enter into consultations of the
type provided for in subparagraph (a) above with the CONTRACTING
PARTIES at intervals of approximately, but not less than, two years
according to a programme to be drawn up each year by the CONTRACTING
PARTIES; Provided that no consultation under this subparagraph
shall take place within two years after the conclusion of a
consultation of a general nature under any other provision of this
paragraph.
(c) (i) If, in the course of consultations with a contracting party under
subparagraph (a) or (b) of this paragraph, the CONTRACTING PARTIES
find that the restrictions are not consistent with the provisions of
this Section or with those of Article XIII (subject to the provisions
of Article XIV), they shall indicate the nature of the inconsistency
and may advise that the restrictions be suitably modified.
(ii) If, however, as a result of the consultations, the CONTRACTING PARTIES
determine that the restrictions are being applied in a manner
involving an inconsistency of a serious nature with the provisions of
this Section or with those of Article XIII (subject to the provisions
of Article XIV) and that damage to the trade of any contracting party
is caused or threatened thereby, they shall so inform the contracting
party applying the restrictions and shall make appropriate
recommendations for securing conformity with such provisions within a
specified period. If such contracting party does not comply with these
recommendations within the specified period, the CONTRACTING PARTIES
may release any contracting party the trade of which is adversely
affected by the restrictions from such obligations under this
Agreement towards the contracting party applying the restrictions as
they determine to be appropriate in the circumstances.
(d) The CONTRACTING PARTIES shall invite any contracting party which is
applying restrictions under this Section to enter into consultations
with them at the request of any contracting party which can establish
a prima facie case that the restrictions are inconsistent with
the provisions of this Section or with those of Article XIII (subject
to the provisions of Article XIV) and that its trade is adversely
affected thereby. However, no such invitation shall be issued unless
the CONTRACTING PARTIES have ascertained that direct discussions
between the contracting parties concerned have not been successful.
If, as a result of the consultations with the CONTRACTING PARTIES no
agreement is reached and they determine that the restrictions are
being applied inconsistently with such provisions, and that damage to
the trade of the contracting party initiating the procedure is caused
or threatened thereby, they shall recommend the withdrawal or
modification of the restrictions. If the restrictions are not
withdrawn or modified within such time as the CONTRACTING PARTIES may
prescribe, they may release the contracting party initiating the
procedure from such obligations under this Agreement towards the
contracting party applying the restrictions as they determine to be
appropriate in the circumstances.
(e) If a contracting party against which action has been taken in
accordance with the last sentence of subparagraph (c) (ii) or (d) of
this paragraph, finds that the release of obligations authorized by
the CONTRACTING PARTIES adversely affects the operation of its
programme and policy of economic development, it shall be free, not
later than sixty days after such action is taken, to give written
notice to the Executive Secretary(2) to the Contracting
Parties of its intention to withdraw from this Agreement and such
withdrawal shall take effect on the sixtieth day following the day on
which the notice is received by him.
(f) In proceeding under this paragraph, the CONTRACTING PARTIES shall have
due regard to the factors referred to in paragraph 2 of this Article.
Determinations under this paragraph shall be rendered expeditiously
and, if possible, within sixty days of the initiation of the
consultations.
Section
C
13. If a contracting party coming within the scope of paragraph 4 (a) of
this Article finds that governmental assistance is required to promote
the establishment of a particular industry* with a view to raising the
general standard of living of its people, but that no measure
consistent with the other provisions of this Agreement is practicable
to achieve that objective, it may have recourse to the provisions and
procedures set out in this Section.*
14. The contracting party concerned shall notify the CONTRACTING PARTIES
of the special difficulties which it meets in the achievement of the
objective outlined in paragraph 13 of this Article and shall indicate
the specific measure affecting imports which it proposes to introduce
in order to remedy these difficulties. It shall not introduce that
measure before the expiration of the time-limit laid down in paragraph
15 or 17, as the case may be, or if the measure affects imports of a
product which is the subject of a concession included in the
appropriate Schedule annexed to this Agreement, unless it has secured
the concurrence of the CONTRACTING PARTIES in accordance with
provisions of paragraph 18; Provided that, if the industry
receiving assistance has already started production, the contracting
party may, after informing the CONTRACTING PARTIES, take such measures
as may be necessary to prevent, during that period, imports of the
product or products concerned from increasing substantially above a
normal level.*
15. If, within thirty days of the notification of the measure, the
CONTRACTING PARTIES do not request the contracting party concerned to
consult with them,* that contracting party shall be free to deviate
from the relevant provisions of the other Articles of this Agreement
to the extent necessary to apply the proposed measure.
16. If it is requested by the CONTRACTING PARTIES to do so, *the
contracting party concerned shall consult with them as to the purpose
of the proposed measure, as to alternative measures which may be
available under this Agreement, and as to the possible effect of the
measure proposed on the commercial and economic interests of other
contracting parties. If, as a result of such consultation, the
CONTRACTING PARTIES agree that there is no measure consistent with the
other provisions of this Agreement which is practicable in order to
achieve the objective outlined in paragraph 13 of this Article, and
concur* in the proposed measure, the contracting party concerned shall
be released from its obligations under the relevant provisions of the
other Articles of this Agreement to the extent necessary to apply that
measure.
17. If, within ninety days after the date of the notification of the
proposed measure under paragraph 14 of this Article, the CONTRACTING
PARTIES have not concurred in such measure, the contracting party
concerned may introduce the measure proposed after informing the
CONTRACTING PARTIES.
18. If the proposed measure affects a product which is the subject of a
concession included in the appropriate Schedule annexed to this
Agreement, the contracting party concerned shall enter into
consultations with any other contracting party with which the
concession was initially negotiated, and with any other contracting
party determined by the CONTRACTING PARTIES to have a substantial
interest therein. The CONTRACTING PARTIES shall concur* in the measure
if they agree that there is no measure consistent with the other
provisions of this Agreement which is practicable in order to achieve
the objective set forth in paragraph 13 of this Article, and if they
are satisfied:
(a) that agreement has been reached with such other contracting parties as
a result of the consultations referred to above, or
(b) if no such agreement has been reached within sixty days after the
notification provided for in paragraph 14 has been received by the
CONTRACTING PARTIES, that the contracting party having recourse to
this Section has made all reasonable efforts to reach an agreement and
that the interests of other contracting parties are adequately
safeguarded.*
The
contracting party having recourse to this Section shall thereupon be
released from its obligations under the relevant provisions of the
other Articles of this Agreement to the extent necessary to permit it
to apply the measure.
19. If a proposed measure of the type described in paragraph 13 of this
Article concerns an industry the establishment of which has in the
initial period been facilitated by incidental protection afforded by
restrictions imposed by the contracting party concerned for balance of
payments purposes under the relevant provisions of this Agreement,
that contracting party may resort to the provisions and procedures of
this Section; Provided that it shall not apply the proposed
measure without the concurrence* of the CONTRACTING PARTIES.*
20. Nothing in the preceding paragraphs of this Section shall authorize
any deviation from the provisions of Articles I, II and XIII of this
Agreement. The provisos to paragraph 10 of this Article shall also be
applicable to any restriction under this Section.
21. At any time while a measure is being applied under paragraph 17 of
this Article any contracting party substantially affected by it may
suspend the application to the trade of the contracting party having
recourse to this Section of such substantially equivalent concessions
or other obligations under this Agreement the suspension of which the
CONTRACTING PARTIES do not disapprove;* Provided that sixty
days’ notice of such suspension is given to the CONTRACTING PARTIES
not later than six months after the measure has been introduced or
changed substantially to the detriment of the contracting party
affected. Any such contracting party shall afford adequate opportunity
for consultation in accordance with the provisions of Article XXII of
this Agreement.
Section
D
22. A contracting party coming within the scope of subparagraph 4 (b) of
this Article desiring, in the interest of the development of its
economy, to introduce a measure of the type described in paragraph 13
of this Article in respect of the establishment of a particular
industry* may apply to the CONTRACTING PARTIES for approval of such
measure. The CONTRACTING PARTIES shall promptly consult with such
contracting party and shall, in making their decision, be guided by
the considerations set out in paragraph 16. If the CONTRACTING PARTIES
concur* in the proposed measure the contracting party concerned shall
be released from its obligations under the relevant provisions of the
other Articles of this Agreement to the extent necessary to permit it
to apply the measure. If the proposed measure affects a product which
is the subject of a concession included in the appropriate Schedule
annexed to this Agreement, the provisions of paragraph 18 shall
apply.*
23. Any measure applied under this Section shall comply with the
provisions of paragraph 20 of this Article.
Article
XIX: Emergency Action on Imports of Particular Products back to top
1. (a) If, as a result of unforeseen developments and of the effect of the
obligations incurred by a contracting party under this Agreement,
including tariff concessions, any product is being imported into the
territory of that contracting party in such increased quantities and
under such conditions as to cause or threaten serious injury to
domestic producers in that territory of like or directly competitive
products, the contracting party shall be free, in respect of such
product, and to the extent and for such time as may be necessary to
prevent or remedy such injury, to suspend the obligation in whole or
in part or to withdraw or modify the concession.
(b) If any product, which is the subject of a concession with respect to a
preference, is being imported into the territory of a contracting
party in the circumstances set forth in subparagraph (a) of this
paragraph, so as to cause or threaten serious injury to domestic
producers of like or directly competitive products in the territory of
a contracting party which receives or received such preference, the
importing contracting party shall be free, if that other contracting
party so requests, to suspend the relevant obligation in whole or in
part or to withdraw or modify the concession in respect of the
product, to the extent and for such time as may be necessary to
prevent or remedy such injury.
2. Before any contracting party shall take action pursuant to the
provisions of paragraph 1 of this Article, it shall give notice in
writing to the CONTRACTING PARTIES as far in advance as may be
practicable and shall afford the CONTRACTING PARTIES and those
contracting parties having a substantial interest as exporters of the
product concerned an opportunity to consult with it in respect of the
proposed action. When such notice is given in relation to a concession
with respect to a preference, the notice shall name the contracting
party which has requested the action. In critical circumstances, where
delay would cause damage which it would be difficult to repair, action
under paragraph 1 of this Article may be taken provisionally without
prior consultation, on the condition that consultation shall be
effected immediately after taking such action.
3. (a) If agreement among the interested contracting parties with respect to
the action is not reached, the contracting party which proposes to
take or continue the action shall, nevertheless, be free to do so, and
if such action is taken or continued, the affected contracting parties
shall then be free, not later than ninety days after such action is
taken, to suspend, upon the expiration of thirty days from the day on
which written notice of such suspension is received by the CONTRACTING
PARTIES, the application to the trade of the contracting party taking
such action, or, in the case envisaged in paragraph 1 (b) of this
Article, to the trade of the contracting party requesting such action,
of such substantially equivalent concessions or other obligations
under this Agreement the suspension of which the CONTRACTING PARTIES
do not disapprove.
(b) Notwithstanding the provisions of subparagraph (a) of this paragraph,
where action is taken under paragraph 2 of this Article without prior
consultation and causes or threatens serious injury in the territory
of a contracting party to the domestic producers of products affected
by the action, that contracting party shall, where delay would cause
damage difficult to repair, be free to suspend, upon the taking of the
action and throughout the period of consultation, such concessions or
other obligations as may be necessary to prevent or remedy the injury.
Article XX: General
Exceptions back to top
Subject to the requirement that such measures are not applied
in a manner which would constitute a means of arbitrary or
unjustifiable discrimination between countries where the same
conditions prevail, or a disguised restriction on international trade,
nothing in this Agreement shall be construed to prevent the adoption
or enforcement by any contracting party of measures:
(a) necessary to protect public morals;
(b) necessary to protect human, animal or plant life or health;
(c) relating to the importations or exportations of gold or silver;
(d) necessary to secure compliance with laws or regulations which
are not inconsistent with the provisions of this Agreement, including
those relating to customs enforcement, the enforcement of monopolies
operated under paragraph 4 of Article II and Article XVII, the
protection of patents, trade marks and copyrights, and the prevention
of deceptive practices;
(e) relating to the products of prison
labour;
(f) imposed for the protection of national treasures of artistic,
historic or archaeological value;
(g) relating to the conservation of exhaustible natural resources
if such measures are made effective in conjunction with restrictions
on domestic production or consumption;
(h) undertaken in pursuance of obligations under any
intergovernmental commodity agreement which conforms to criteria
submitted to the CONTRACTING PARTIES and not disapproved by them or
which is itself so submitted and not so disapproved;*
(i) involving restrictions on exports of domestic materials
necessary to ensure essential quantities of such materials to a
domestic processing industry during periods when the domestic price of
such materials is held below the world price as part of a governmental
stabilization plan; Provided that
such restrictions shall not operate to increase the exports of or the
protection afforded to such domestic industry, and shall not depart
from the provisions of this Agreement relating to non-discrimination;
(j) essential to the acquisition or distribution of products in
general or local short supply; Provided that any such measures shall be consistent with the
principle that all contracting parties are entitled to an equitable
share of the international supply of such products, and that any such
measures, which are inconsistent with the other provisions of the
Agreement shall be discontinued as soon as the conditions giving rise
to them have ceased to exist. The CONTRACTING PARTIES shall review the
need for this sub-paragraph not later than 30 June 1960.
Article
XXI: Security
Exceptions back to top
Nothing in this Agreement shall be construed
(a) to require any contracting party to furnish any information the
disclosure of which it considers contrary to its essential security
interests; or
(b) to prevent any contracting party from taking any action which it
considers necessary for the protection of its essential security
interests
(i) relating to fissionable materials or the materials from which they are
derived;
(ii) relating to the traffic in arms, ammunition and implements of war and
to such traffic in other goods and materials as is carried on directly
or indirectly for the purpose of supplying a military establishment;
(iii) taken in time of war or other emergency in international relations; or
(c) to prevent any contracting party from taking any action in pursuance
of its obligations under the United Nations Charter for the
maintenance of international peace and security.
Article
XXII: Consultation back to top
1. Each contracting party shall accord sympathetic consideration to, and
shall afford adequate opportunity for consultation regarding, such
representations as may be made by another contracting party with
respect to any matter affecting the operation of this Agreement.
2. The CONTRACTING PARTIES may, at the request of a contracting party,
consult with any contracting party or parties in respect of any matter
for which it has not been possible to find a satisfactory solution
through consultation under paragraph 1.
Article XXIII: Nullification or
Impairment back to top
1. If any contracting party should consider that any benefit accruing to
it directly or indirectly under this Agreement is being nullified or
impaired or that the attainment of any objective of the Agreement is
being impeded as the result of
(a) the failure of another contracting party to carry out its obligations
under this Agreement, or
(b) the application by another contracting party of any measure, whether
or not it conflicts with the provisions of this Agreement, or
(c) the existence of any other situation,
the
contracting party may, with a view to the satisfactory adjustment of
the matter, make written representations or proposals to the other
contracting party or parties which it considers to be concerned. Any
contracting party thus approached shall give sympathetic consideration
to the representations or proposals made to it.
2. If no satisfactory adjustment is effected between the contracting
parties concerned within a reasonable time, or if the difficulty is of
the type described in paragraph 1 (c) of this Article, the matter may
be referred to the CONTRACTING PARTIES. The CONTRACTING PARTIES shall
promptly investigate any matter so referred to them and shall make
appropriate recommendations to the contracting parties which they
consider to be concerned, or give a ruling on the matter, as
appropriate. The CONTRACTING PARTIES may consult with contracting
parties, with the Economic and Social Council of the United Nations
and with any appropriate inter-governmental organization in cases
where they consider such consultation necessary. If the CONTRACTING
PARTIES consider that the circumstances are serious enough to justify
such action, they may authorize a contracting party or parties to
suspend the application to any other contracting party or parties of
such concessions or other obligations under this Agreement as they
determine to be appropriate in the circumstances. If the application
to any contracting party of any concession or other obligation is in
fact suspended, that contracting party shall then be free, not later
than sixty days after such action is taken, to give written notice to
the Executive Secretary(3) to the Contracting Parties of
its intention to withdraw from this Agreement and such withdrawal
shall take effect upon the sixtieth day following the day on which
such notice is received by him.
Part
III
Article
XXIV: Territorial Application — Frontier Traffic — Customs Unions
and Free-trade Areas back to top
1. The provisions of this Agreement shall apply to the metropolitan
customs territories of the contracting parties and to any other
customs territories in respect of which this Agreement has been
accepted under Article XXVI or is being applied under Article XXXIII
or pursuant to the Protocol of Provisional Application. Each such
customs territory shall, exclusively for the purposes of the
territorial application of this Agreement, be treated as though it
were a contracting party; Provided that the provisions of this
paragraph shall not be construed to create any rights or obligations
as between two or more customs territories in respect of which this
Agreement has been accepted under Article XXVI or is being applied
under Article XXXIII or pursuant to the Protocol of Provisional
Application by a single contracting party.
2. For the purposes of this Agreement a customs territory shall be
understood to mean any territory with respect to which separate
tariffs or other regulations of commerce are maintained for a
substantial part of the trade of such territory with other
territories.
3. The provisions of this Agreement shall not be construed to prevent:
(a) Advantages accorded by any contracting party to adjacent countries in
order to facilitate frontier traffic;
(b) Advantages accorded to the trade with the Free Territory of Trieste by
countries contiguous to that territory, provided that such advantages
are not in conflict with the Treaties of Peace arising out of the
Second World War.
4. The contracting parties recognize the desirability of increasing
freedom of trade by the development, through voluntary agreements, of
closer integration between the economies of the countries parties to
such agreements. They also recognize that the purpose of a customs
union or of a free-trade area should be to facilitate trade between
the constituent territories and not to raise barriers to the trade of
other contracting parties with such territories.
5. Accordingly, the provisions of this Agreement shall not prevent, as
between the territories of contracting parties, the formation of a
customs union or of a free-trade area or the adoption of an interim
agreement necessary for the formation of a customs union or of a
free-trade area; Provided that:
(a) with respect to a customs union, or an interim agreement leading to a
formation of a customs union, the duties and other regulations of
commerce imposed at the institution of any such union or interim
agreement in respect of trade with contracting parties not parties to
such union or agreement shall not on the whole be higher or more
restrictive than the general incidence of the duties and regulations
of commerce applicable in the constituent territories prior to the
formation of such union or the adoption of such interim agreement, as
the case may be;
(b) with respect to a free-trade area, or an interim agreement leading to
the formation of a free-trade area, the duties and other regulations
of commerce maintained in each of the constituent territories and
applicable at the formation of such free–trade area or the
adoption of such interim agreement to the trade of contracting parties
not included in such area or not parties to such agreement shall not
be higher or more restrictive than the corresponding duties and other
regulations of commerce existing in the same constituent territories
prior to the formation of the free-trade area, or interim agreement as
the case may be; and
(c) any interim agreement referred to in subparagraphs (a) and (b) shall
include a plan and schedule for the formation of such a customs union
or of such a free-trade area within a reasonable length of time.
6. If, in fulfilling the requirements of subparagraph 5 (a), a
contracting party proposes to increase any rate of duty inconsistently
with the provisions of Article II, the procedure set forth in Article
XXVIII shall apply. In providing for compensatory adjustment, due
account shall be taken of the compensation already afforded by the
reduction brought about in the corresponding duty of the other
constituents of the union.
7. (a) Any contracting party deciding to enter into a customs union or
free-trade area, or an interim agreement leading to the formation of
such a union or area, shall promptly notify the CONTRACTING PARTIES
and shall make available to them such information regarding the
proposed union or area as will enable them to make such reports and
recommendations to contracting parties as they may deem appropriate.
(b) If, after having studied the plan and schedule included in an interim
agreement referred to in paragraph 5 in consultation with the parties
to that agreement and taking due account of the information made
available in accordance with the provisions of subparagraph (a), the
CONTRACTING PARTIES find that such agreement is not likely to result
in the formation of a customs union or of a free-trade area within the
period contemplated by the parties to the agreement or that such
period is not a reasonable one, the CONTRACTING PARTIES shall make
recommendations to the parties to the agreement. The parties shall not
maintain or put into force, as the case may be, such agreement if they
are not prepared to modify it in accordance with these
recommendations.
(c) Any substantial change in the plan or schedule referred to in
paragraph 5 (c) shall be communicated to the CONTRACTING PARTIES,
which may request the contracting parties concerned to consult with
them if the change seems likely to jeopardize or delay unduly the
formation of the customs union or of the free-trade area.
8. For the purposes of this Agreement:
(a) A customs union shall be understood to mean the substitution of a
single customs territory for two or more customs territories, so that
(i) duties and other restrictive regulations of commerce (except, where
necessary, those permitted under Articles XI, XII, XIII, XIV, XV and
XX) are eliminated with respect to substantially all the trade between
the constituent territories of the union or at least with respect to
substantially all the trade in products originating in such
territories, and,
(ii) subject to the provisions of paragraph 9, substantially the same
duties and other regulations of commerce are applied by each of the
members of the union to the trade of territories not included in the
union;
(b) A free-trade area shall be understood to mean a group of two or more
customs territories in which the duties and other restrictive
regulations of commerce (except, where necessary, those permitted
under Articles XI, XII, XIII, XIV, XV and XX) are eliminated on
substantially all the trade between the constituent territories in
products originating in such territories.
9. The preferences referred to in paragraph 2 of Article I shall not be
affected by the formation of a customs union or of a free-trade area
but may be eliminated or adjusted by means of negotiations with
contracting parties affected.* This procedure of negotiations with
affected contracting parties shall, in particular, apply to the
elimination of preferences required to conform with the provisions of
paragraph 8 (a)(i) and paragraph 8 (b).
10. The CONTRACTING PARTIES may by a two-thirds majority approve proposals
which do not fully comply with the requirements of paragraphs 5 to 9
inclusive, provided that such proposals lead to the formation of a
customs union or a free-trade area in the sense of this Article.
11. Taking into account the exceptional circumstances arising out of the
establishment of India and Pakistan as independent States and
recognizing the fact that they have long constituted an economic unit,
the contracting parties agree that the provisions of this Agreement
shall not prevent the two countries from entering into special
arrangements with respect to the trade between them, pending the
establishment of their mutual trade relations on a definitive basis.*
12. Each contracting party shall take such reasonable measures as may be
available to it to ensure observance of the provisions of this
Agreement by the regional and local governments and authorities within
its territories.
Article
XXV: Joint
Action by the Contracting Parties back to top
1. Representatives of the contracting parties shall meet from time to
time for the purpose of giving effect to those provisions of this
Agreement which involve joint action and, generally, with a view to
facilitating the operation and furthering the objectives of this
Agreement. Wherever reference is made in this Agreement to the
contracting parties acting jointly they are designated as the
CONTRACTING PARTIES.
2. The Secretary-General of the United Nations is requested to convene
the first meeting of the CONTRACTING PARTIES, which shall take place
not later than March 1, 1948.
3. Each contracting party shall be entitled to have one vote at all
meetings of the CONTRACTING PARTIES.
4. Except as otherwise provided for in this Agreement, decisions of the
CONTRACTING PARTIES shall be taken by a majority of the votes cast.
5. In exceptional circumstances not elsewhere provided for in this
Agreement, the CONTRACTING PARTIES may waive an obligation imposed
upon a contracting party by this Agreement; Provided that any
such decision shall be approved by a two-thirds majority of the votes
cast and that such majority shall comprise more than half of the
contracting parties. The CONTRACTING PARTIES may also by such a vote
(i) define certain categories of exceptional circumstances to which other
voting requirements shall apply for the waiver of obligations, and
(ii) prescribe such criteria as may be necessary for the application of
this paragraph(4).
Article
XXVI: Acceptance, Entry into Force and Registration back to top
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.
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 Secretary(5) 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.
7. The United Nations is authorized to effect registration of this
Agreement as soon as it enters into force.
Article
XXVII: Withholding or Withdrawal of Concessions back to top
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.
Article
XXVIII*: Modification of
Schedules back to top
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.
Article
XXVIII bis: Tariff
Negotiations back to top
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.
Article
XXIX: The
Relation of this Agreement to the Havana Charter back to top
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.
Article
XXX: Amendments back to top
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.
Article
XXXI: Withdrawal back to top
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.
Article
XXXII: Contracting Parties back to top
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.
Article
XXXIII: Accession back to top
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.
Article
XXXIV: Annexes back to top
The annexes to this Agreement are hereby made an integral part of this
Agreement.
Article
XXXV: Non-application
of the Agreement between Particular Contracting Parties back to top
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.
Part IV: Trade
and Development
Article
XXXVI: Principles and Objectives back to top
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 inter-relationships 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.
Article
XXXVII: Commitments back to top
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.
Article XXXVIII: Joint Action
back to top
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.
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