I sometimes refer to parts of the actual GATT: here are some excerpts from it (some personal favourites are in yellow). You can find the whole thing in many places, including: http://www.tufts.edu/departments/fletcher/multi/texts/BH209.txt
If any contracting party establishes or maintains internal
quantitative regulations relating to exposed cinematograph films, such
regulations shall take the form of screen quotas which shall conform to the following
requirements:
(a) Screen quotas may require the
exhibition of cinematograph films of national origin during a specified minimum
proportion of the total screen time actually utilized, over a specified period
of not less than one year, in the commercial exhibition of all films of
whatever origin, and shall be computed on the basis of screen time per theatre
per year or the equivalent thereof;
(b) With the exception of screen time
reserved for films of national origin under a screen quota, screen time
including that released by administrative action from screen time reserved for
films of national origin, shall not be allocated formally or in effect among
sources of supply;
(c) Notwithstanding the provisions of
subparagraph (b) of this Article, any contracting party may maintain screen
quotas conforming to the requirements of subparagraph (a) of this Article which
reserve a minimum proportion of screen time for films of a specified origin
other than that of the contracting party imposing such screen quotas; Provided
that no such minimum proportion of screen time shall be increased above the
level in effect on April 10, 1947; (d) Screen quotas shall be subject to
negotiation for their limitation, liberalization or elimination.
1. The contracting parties recognize that dumping, by which
products of one country are introduced into the commerce of another country at
less than the normal value of the products, is to be condemned if it causes or
threatens material injury to an established industry in the territory of a
contracting party or materially retards the establishment of a domestic
industry. For the purposes of this Article, a product is to be considered as
being introduced into the commerce of an importing country at less than its
normal value, if the price of the product exported from one country to another
(a) is less than the comparable price,
in the ordinary course of trade, for the like product when destined for
consumption in the exporting country, or,
(b) in the absence of such domestic
price, is less than either
(i) the highest comparable price for
the like product for export to any third country in the ordinary course of
trade, or
(ii) the cost of production of the
product in the country of origin plus a reasonable addition for selling cost
and profit.
Due allowance shall be made in each case for differences in
conditions and terms of sale, for differences in taxation, and for other
differences affecting price comparability.
2. In order to offset or prevent dumping, a contracting
party may levy on any dumped product an anti-dumping duty not greater in amount
than the margin of dumping in respect of such product. For the purposes of this
Article, the margin of dumping is the price difference determined in accordance
with the provisions of paragraph 1.
3. No countervailing duty shall be levied on any product of
the territory of any contracting party imported into the territory of another
contracting party in excess of an amount equal to the estimated bounty or
subsidy determined to have been granted, directly or indirectly, on the
manufacture, production or export of such product in the country of origin or
exportation, including any special subsidy to the transportation of a
particular product. The term "countervailing duty" shall be
understood to mean a special duty levied for the purpose of offsetting any
bounty or subsidy bestowed, directly, or indirectly, upon the manufacture,
production or export of any merchandise.
4. No product of the territory of any contracting party
imported into the territory of any other contracting party shall be subject to
anti-dumping or countervailing duty by reason of the exemption of such product
from duties or taxes borne by the like product when destined for consumption in
the country of origin or exportation, or by reason of the refund of such duties
or taxes.
5. No product of the territory of any contracting party
imported into the territory of any other contracting party shall be subject to
both anti-dumping and countervailing duties to compensate for the same
situation of dumping or export subsidization.
6.
(a) No contracting party shall levy
any anti-dumping or countervailing duty on the importation of any product of
the territory of another contracting party unless it determines that the effect
of the dumping or subsidization, as the case may be, is such as to cause or
threaten material injury to an established domestic industry, or is such as to
retard materially the establishment of a domestic industry.
(b) The CONTRACTING PARTIES may waive
the requirement of subparagraph (a) of this paragraph so as to permit a
contracting party to levy an anti-dumping or countervailing duty on the
importation of any product for the purpose of offsetting dumping or subsidization
which causes or threatens material injury to an industry in the territory of
another contracting party exporting the product concerned to the territory of
the importing contracting party. The CONTRACTING PARTIES shall waive the
requirements of subparagraph (a) of this paragraph, so as to permit the levying
of a countervailing duty, in cases in which they find that a subsidy is causing
or threatening material injury to an industry in the territory of another
contracting party exporting the product concerned to the territory of the
importing contracting party.
(c) In exceptional circumstances,
however, where delay might cause damage which would be difficult to repair, a
contracting party may levy a countervailing duty for the purpose referred to in
subparagraph (b) of this paragraph without the prior approval of the
CONTRACTING PARTIES; Provided that such action shall be reported immediately to
the CONTRACTING PARTIES and that the countervailing duty shall be withdrawn
promptly if the CONTRACTING PARTIES disapprove.
7. A system for the stabilization of the domestic price or
of the return to domestic producers of a primary commodity, independently of
the movements of export prices, which results at times in the sale of the
commodity for export at a price lower than the comparable price charged for the
like commodity to buyers in the domestic market, shall be presumed not to
result in material injury within the meaning of paragraph 6 if it is determined
by consultation among the contracting parties substantially interested in the
commodity concerned that:
(a) the system has also resulted in
the sale of the commodity for export at a price higher than the comparable
price charged for the like commodity to buyers in the domestic market, and
(b) the system is so operated, either
because of the effective regulation of production, or otherwise, as not to
stimulate exports unduly or otherwise seriously prejudice the interests of
other contracting parties.
1. Notwithstanding the provisions of paragraph 1 of Article
XI, any contracting party, in order to safeguard its external financial
position and its balance of payments, may restrict the quantity or value of
merchandise permitted to be imported, subject to the provisions of the
following paragraphs of this Article.
2.
(a) Import restrictions instituted,
maintained or intensified by a contracting party under this Article shall not
exceed those necessary:
(i) to forestall the imminent threat
of, or to stop, a serious decline in its monetary reserves, or
(ii) in the case of a contracting
party with very low 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 such
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.
(b) Contracting parties applying
restrictions under sub-paragraph (a) of this paragraph shall progressively
relax them as such conditions improve, maintaining them only to the extent that
the conditions specified in that subparagraph still justify their application. They
shall eliminate the restrictions when conditions would no longer justify their
institution or maintenance under that subparagraph.
3.
(a) Contracting parties undertake, in
carrying out their domestic policies, to pay due regard to the need for maintaining
or restoring equilibrium in their balance of payments on a sound and lasting
basis and to the desirability of avoiding an uneconomic employment of
productive resources. They recognize that, in order to achieve these ends, it
is desirable so far as possible to adopt measures which expand rather than
contract international trade.
(b) Contracting parties applying
restrictions under this Article may determine the incidence of the restrictions
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.
(c) Contracting parties applying
restrictions under this Article undertake:
(i) to avoid unnecessary damage to the
commercial or economic interests of any other contracting party;
(ii) not to apply restrictions so as
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
(iii) not to apply restrictions which
would prevent the importations of commercial samples or prevent compliance with
patent, trade mark, copyright, or similar procedures.
(d) The contracting parties recognize
that, as a result of domestic policies directed towards the achievement and maintenance
of full and productive employment or towards the development of economic
resources, a contracting party may experience a high level of demand for
imports involving a threat to its monetary reserves of the sort referred to in
paragraph 2 (a) of this Article. Accordingly, a contracting party otherwise
complying with the provisions of this Article shall not be required to withdraw
or modify restrictions on the ground that a change in those policies would
render unnecessary restrictions which it is applying under this Article.
4.
(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 Article 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 Article on that date. Beginning one year after that date, contracting
parties applying import restrictions under this Article shall enter into
consultations of the type provided for in subparagraph (a) of this paragraph
with the CONTRACTING PARTIES annually.
(c)
(i) If, in the course of consultations
with a contracting party under subparagraph (a) or (b) above, the CONTRACTING
PARTIES find that the restrictions are not consistent with provisions of this
Article 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 Article 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 the specified period of time.
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 Article
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 Article 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) In proceeding under this
paragraph, the CONTRACTING PARTIES shall have due regard to any special
external factors adversely affecting the export trade of the contracting party
applying the restrictions.
(f) Determinations under this
paragraph shall be rendered expeditiously and, if possible, within sixty days
of the initiation of the consultations.
5. If there is a persistent and widespread application of
import restrictions under this Article, indicating the existence of a general
disequilibrium which is restricting international trade, the CONTRACTING
PARTIES shall initiate discussions to consider whether other measures might be
taken, either by those contracting parties the balance of payments of which are
under pressure or by those the balance of payments of which are tending to be
exceptionally favourable, or by any appropriate intergovernmental organization,
to remove the underlying causes of the disequilibrium. On the invitation of the
CONTRACTING PARTIES, contracting parties shall participate in such discussions.
1. A contracting party which applies restrictions under
Article XII or under Section B of Article XVIII may, in the application of such
restrictions, deviate from the provisions of Article XIII in a manner having
equivalent effect to restrictions on payments and transfers for current
international transactions which that contracting party may at that time apply
under Article VIII or XIV of the Articles of Agreement of the International
Monetary Fund, or under analogous provisions of a special exchange agreement
entered into pursuant to paragraph 6 of Article XV.
2. A contracting party which is applying import restrictions
under Article XII or under Section B of Article XVIII may, with the consent of
the CONTRACTING PARTIES, temporarily deviate from the provisions of Article
XIII in respect of a small part of its external trade where the benefits to the
contracting party or contracting parties concerned substantially outweigh any
njury which may result to the trade of other contracting parties.
3. The provisions of Article XIII shall not preclude a
group of territories having a common quota in the International Monetary Fund
from applying against imports from other countries, but not among themselves,
restrictions in accordance with the provisions of Article XII or of Section B
of Article XVIII on condition that such restrictions are in all other respects
consistent with the provisions of Article XIII.
4. A contracting party applying import restrictions under
Article XII or under Section B of Article XVIII shall not be precluded by
Articles XI to XV or Section B of Article XVIII of this Agreement from applying
measures to direct its exports in such a manner as to increase its earnings of
currencies which it can use without deviation from the provisions of Article
XIII.
5. A contracting party shall not be precluded by Articles
XI to XV, inclusive, or by Section B of Article XVIII, of this Agreement from
applying quantitative restrictions:
(a) having equivalent effect to
exchange restrictions authorized under Section 3 (b) of Article VII of the
Articles of Agreement of the International Monetary Fund, or
(b) under the preferential
arrangements provided for in Annex A of this Agreement, pending the outcome of
the negotiations referred to therein.
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.
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.
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.
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.
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.
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.
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
nondiscrimination;
(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 subparagraph not later than 30 June 1960.
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.
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 if 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.
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.
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.