General Agreement on Tariffs and Trade

Article XXXVII
Commitments

1. The developed contracting parties shall to the fullest extent
possible–that is, except when compelling reasons, which may include
legal reasons, make it impossible–give effect to the following
provisions:

(a) accord high priority to the reduction and elimination of barriers
to products currently or potentially of particular export interest
to less-developed contracting parties, including customs duties and
other restrictions which differentiate unreasonably between such
products in their primary and in their processed forms;

(b) refrain from introducing, or increasing the incidence of, customs
duties or non-tariff import barriers on products currently or
potentially of particular export interest to less-developed
contracting parties; and

(c) (i) refrain from imposing new fiscal measures, and

(ii) in any adjustments of fiscal policy accord high priority to
the reduction and elimination of fiscal measures,

which would hamper, or which hamper, significantly the growth of
consumption of primary products, in raw or processed form, wholly
or mainly produced in the territories of less-developed contracting
parties, and which are applied specifically to those products.

2. (a) Whenever it is considered that effect is not being given to any of
the provisions of sub-paragraph (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 sub-paragraph (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 I 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 paragraphs 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

1. The contracting parties shall collaborate jointly, within 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 connexion, 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 provisions of this Part.

Author: international

Mentioned in these Entries

General Agreement on Tariffs and Trade, International Organizations.