General Agreement on Tariffs and Trade 4

General Agreement on Tariffs and Trade

 

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 the 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.

 

Conclusion

Notes

See Also

References and Further Reading

About the Author/s and Reviewer/s

Author: international

Mentioned in these Entries

Other provisions.


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