GENERAL AGREEMENT ON TARIFFS AND TRADE ITO CHARTER (a) in the case of an export monopoly, arrangements designed to limit or reduce any protection that might be afforded through the operation of the monopoly to domestic users of the monopolized product, or designed to assure exports of the monopolized product in adequate quantities at reasonable prices; (b) in the case of an import monopoly, arrangements designed to limit or reduce any protection that might be afforded through the operation of the monopoly to domestic producers of the monopolized product, or designed to relax any limitation on imports which is comparable with a limitation made subject to negotiation under other provisions of this Chapter. 2. In order to satisfy the requirements of paragraph 1 (b), the Member establishing, maintaining or authorizing a monopoly shall negotiate: (a) for the establishment of the maximum import duty that may be applied in respect of the product concerned; or (b) for any other mutually satisfactory arrangement consistent with the provisions of this Charter, if it is evident to the negotiating parties that to negotiate a maximum import duty under sub-paragraph (a) of this paragraph is impracticable or would be ineffective for the achievement of the objectives of paragraph 1; any Member entering into negotiations under this sub-paragraph shall afford to other interested Members an opportunity for consultation. 3. In any case in which a maximum import duty is not negotiated under paragraph 2 (a), the Member establishing, maintaining or authorizing the import monopoly shall make public, or notify the Organization of, the maximum import duty which it will apply in respect of the product concerned. Balance of Article given opposite of Article II of GATT) 5. With regard to any product to which the provisions of this Article apply, the monopoly shall, wherever this principle can be effectively applied and subject to the other provisions of this Charter, import and offer for sale such quantities of the product as will be sufficient to satisfy the full domestic demand for the imported product, account being taken of any rationing to consumers of the imported and like domestic product which may be in force at that time. 1. If a Member holding stocks of any primary commodity accumulated for non-commercial purposes should liquidate such stocks, it shall carry out the liquidation, as far as practicable, in a manner that will avoid serious disturbance to world markets for the commodity concerned. 2. Such Member shall: (a) give not less than four months' public notice of its intention to liquidate such stocks; or (b) give not less than four months' prior notice to the Organization of such intention. 3. Such Member shall, at the request of any Member which considers itself substantially interested, consult as to the best means of avoiding substantial injury to the economic interests of producers and consumers of the primary commodity in question. In cases where the interests of several Members might be substantially affected, the Organization may participate in the consultations, and the Member holding the stocks shall give due consideration to its recommendations. GENERAL AGREEMENT ON TARIFFS AND TRADE ARTICLE XVIII. GOVERNMENTAL ASSISTANCE TO ECONOMIC DEVELOPMENT AND RECONSTRUCTION 1. The contracting parties recognize that special governmental assistance may be required to promote the establishment, development or reconstruction of particular industries or branches of agriculture, and that in appropriate circumstances the grant of such assistance in the form of protective measures is justified. At the same time they recognize that an unwise use of such measures would impose undue burdens on their own economies and unwarranted restrictions on international trade, and might increase unnecessarily the difficulties of adjustment for the economies of other countries. 2. The CONTRACTING PARTIES and the contracting parties concerned shall preserve the utmost secrecy in respect of matters arising under this article. A 3. If a contracting party, in the interest of its economic development or reconstruction, or for the purpose of increasing a most-favoured-nation rate of duty in connexion with the establishment of a new preferential agreement in accordance with the provisions of paragraph 3 of article I, considers it desirable to adopt any non-discriminatory measure affecting imports which would conflict with an obligation which the contracting party has assumed under article II of this Agreement, but which would not conflict with other provisions in this Agreement, such contracting party (a) Shall enter into direct negotiations with all the other contracting parties. The appropriate Schedules to this Agreement shall be amended in accordance with any agreement resulting from such negotiations; or (b) Shall initially or may, in the event of failure to reach agreement under sub-paragraph (a), apply to the CONTRACTING PARTIES. The CONTRACTING PARTIES shall determine the contracting party or parties materially affected by the proposed measure and shall sponsor negotiations between such ITO CHARTER 4. The provisions of paragraphs 2 and 3 shall not apply to routine disposal of supplies necessary for the rotation of stocks to avoid deterioration. ARTICLE 13. GOVERNMENTAL ASSISTANCE TO ECONOMIC DEVELOPMENT AND RECONSTRUCTION 1. The Members recognize hat special governmental assistance may be required to promote the establishment, development or reconstruction of particular industries or branches of agriculture, and that in appropriate circumstances the grant of such assistance in the form of protective measures is justified. At the same time they recognize that an unwise use of such measures would impose undue burdens on their own economies and unwarranted restrictions on international trade, and might increase unnecessarily the difficulties of adjustment for the economies of other countries. 2. The Organization and the Members concerned shall preserve the utmost secrecy in respect of matters arising under this Article. A 3. If a Member, in the interest of its economic development or reconstruction, or for the purpose of increasing a most-favored-nation rate of duty in connection with the establishment of a new preferential agreement in accordance with the provisions of Article 15, considers it desirable to adopt any nondiscriminatory measure affecting imports which would conflict with an obligation which the Member has assumed in respect of any product through negotiations with any other Member or Members pursuant to Chapter IV but which would not conflict with that Chapter, such Member (a) shall enter into direct negotiations with all the other Members which have contractual rights. The Members shall be free to proceed in accordance with the terms of any agreement resulting from such negotiations, provided that the Organization is informed thereof; or (b) shall initially or may, in the event of failure to reach agreement under subparagraph (a), apply to the Organization. The Organization shall determine, from among Members which have contractual rights, the Member or Members materially affected by the proposed measure and shall sponsor negotiations GENERAL AGREEMENT ON TARIFFS AND TRADE ITO CHARTER contracting party or parties and the ap- between such Member or Members and plicant contracting party with a view to the applicant Member with a view to obtaining expeditious and substantial obtaining expeditious and substantial agreement. The CONTRACTING PARTIES agreement. The Organization shall esshall establish and communicate to the tablish and communicate to the Memcontracting parties concerned a time bers concerned a time schedule for such schedule for such negotiations, follow- negotiations, following as far as pracing as far as practicable any time sched- ticable any time schedule which may ule which may have been proposed by have been proposed by the applicant the applicant contracting party. The Member. The Members shall commence contracting parties shall commence and and proceed continuously with such proceed continuously with such nego- negotiations in accordance with the tiations in accordance with the time time schedule established by the Orschedule established by the CONTRACTING ganization. At the request of a MemPARTIES. At the request of a contract- ber, the Organization may, where ing party, the CONTRACTING PARTIES concurs in principle with the proposed may, where they concur in principle measure, assist in the negotiations. with the proposed measure, assist in the negotiations. Upon substantial agreement being reached, the applicant contracting party may be released by the CONTRACTING PARTIES from the obligation referred to in this paragraph, subject to such limitations as may have been agreed upon in the negotiations between the contracting parties concerned. Upon substantial agreement being reached, the applicant Member may be released by the Organization from the obligation referred to in this paragraph. subject to such limitations as may have been agreed upon in the negotiations be tween the Members concerned. 4. (a) If as a result of action initi- 4. (a) If as a result of action initiated under paragraph 3 there should be ated under paragraph 3, there should be an increase in imports of any product an increase in imports of any product concerned, including products which concerned, including products which can can be directly substituted therefor, be directly substituted therefor, which which if continued would be so great as if continued would be so great as to to jeopardize the establishment, devel- jeopardize the establishment, develop opment or reconstruction of the industry ment or reconstruction of the industry. or branch of agriculture concerned, and or branch of agriculture concerned, and if no preventive measures consistent if no preventive measures consistent with the provisions of this Agreement with the provisions of this Charter can be found which seem likely to prove can be found which seem likely to effective, the applicant contracting party prove affective, the applicant Memmay, after informing, and when prac- ber may, after informing, and when ticable consulting with, the CONTRACT- practicable consulting with, the OrganiING PARTIES, adopt such other measures zation, adopt such other measures as as the situation may require, provided that such measures do not restrict imports more than necessary to offset the increase in imports referred to in this sub-paragraph; except in unusual circumstances, such measures shall not reduce imports below the level obtaining in the most recent representative period preceding the date on which the contracting party initiated action under paragraph 3. (b) The CONTRACTING PARTIES shall determine, as soon as practicable, whether any such measures should be continued, discontinued or modified. It shall in any case be terminated as soon as the CONTRACTING PARTIES determine that the negotiations are completed or discontiued. the situation may require, provided that such measures do not restrict im ports more than necessary to offset the increase in imports referred to in this sub-paragraph; except in unusual cir cumstances, such measures shall not re duce imports below the level obtaining in the most recent representative period preceding the date on which the Mem ber initiated action under paragraph 3 (b) The Organization shall deter mine, as soon as practicable, whether any such measure should be continued discontinued or modified. It shall in any case be terminated as soon as the Organization determines that the nego tiations are completed or discontinued GENERAL AGREEMENT ON TARIFFS AND TRADE (c) It is recognized that the relationships between contracting parties under article II of this Agreement involve reciprocal advantages, and therefore any contracting party whose trade is materially affected by the action may suspend the application to the trade of the applicant contracting party of substantially equivalent obligations or concessions under this Agreement provided that the contracting party concerned has consulted the CONTRACTING PARTIES before taking such action and the CONTRACTING PARTIES do not disapprove. B 5. In the case of any non-discriminatory measure affecting imports which would apply to any product in respect of which the contracting party has assumed an obligation under article II of this Agreement and which would conflict with any other provision of this Agreement, the provisions of sub-paragraph (b) of paragraph 3 shall apply; provided that before granting a release the CONTRACTING PARTIES shall afford adequate opportunity for all contracting parties which they determine to be materially affected to express their views. The provisions of paragraph 4 shall also be applicable in this case. C 6. If a contracting party in the interest of its economic development or reconstruction considers it desirable to adopt any non-discriminatory measure affecting imports which would conflict with the provisions of this Agreement other than article II, but which would not apply to any product in respect of which the contracting party has assumed an obligation under article II, such contracting party shall notify the CONTRACTING PARTIES and shall transmit to the CONTRACTING PARTIES a written statement of the considerations in support of the adoption, for a specified period, of the proposed measure. 7. (a) On application by such contracting party the CONTRACTING PARTIES shall concur in the proposed measure and grant the necessary release for a specified period if, having particular regard to the applicant contracting party's need for economic development or reconstruction, it is established that the measure ITO CHARTER (c) It is recognized that the contractual relationships referred to in paragraph 3 involve reciprocal advantages, and therefore any Member which has a contractual right in respect of the product to which such action relates, and whose trade is materially affected by the action, may suspend the application to the trade of the applicant Member of substantially equivalent obligations or concessions under or pursuant to Chapter IV, provided that the Member concerned has consulted the Organization before taking such action and the Organization does not disapprove. B 5. In the case of any non-discriminatory measure affecting imports which would conflict with Chapter IV and which would apply to any product in respect of which the Member has assumed an obligation through negotiations with any other Member or Members pursuant to Chapter IV, the provisions of sub-paragraph (b) of paragraph 3 shall apply; Provided that before granting a release the Organization shall afford adequate opportunity for all Members which it determines to be materially affected to express their views. The provisions of paragraph 4 shall also be applicable in this case. C 6. If a Member in the interest of its economic development or reconstruction considers it desirable to adopt any non-discriminatory measure affecting imports which would conflict with Chapter IV, but which would not apply to any product in respect of which the Member has assumed an obligation through negotiations with any other Member or Members pursuant to Chapter IV, such Member shall notify the Organization and shall transmit to the Organization a written statement of the considerations in support of the adoption, for a specified period, of the proposed measure. 7. (a) On application by such Member the Organization shall concur in the proposed measure and grant the necessary release for a specified period if, having particular regard to the applicant Member's need for economic development or reconstruction, it is established that the measure |