business practices. Under this procedure the ITO would receive complaints from a Member, or from persons or business organizations within a Member's territory, that a particular business arrangement is restricting international trade with harmful effects. If the ITO found that the complaint was justified, it could recommend that Members take appropriate remedial action. Members would agree to cooperate with the ITO in eliminating restrictive business practices. Among other things, they would agree to obtain and furnish to the ITO information needed by it in connection with particular investigations; to consult with the ITO regarding complaints which had been filed; and to take fullest account of ITO recommendations in initiating action to eliminate particular restrictive arrangements. Chapter VII. Intergovernmental Commodity Arrangements Chapter VII recognizes that in the case of certain commodities, usually primary agricultural products, special difficulties, such as a world surplus, may arise which would warrant the adoption of intergovernmental commodity agreements, including those which regulate production, trade, or prices. Such agreements would have to be consistent with certain general objectives and would need to satisfy certain conditions. Regulatory commodity agreements would be justified if necessary 1) to enable countries to solve difficulties caused by surpluses without. taking action inconsistent with the purposes of the Charter, 2) to avoid the serious distress to producers or labor caused by surpluseз when production adjustments cannot be made quickly enough because of the lack of alternative employment opportunities, and 3) to provide a working arrangement for a transitional period during which measures may be taken to increase consumption of the surplus prod-uct or to facilitate the movement of resources and manpower out of the production of the surplus product into more remunerative lines. It would be required that the Members concerned must formulate and adopt a program of economic adjustment designed to make progress toward solving the basic problem which gave rise to the proposal for a regulatory commodity agreement; that such agreements be open initially to all ITO Members on equal terms and that they afford equitable treatment to all Members (including those not. participating in the agreement); that they provide for adequate representation by Members primarily interested in the commodity as consumers, and give consuming countries an equal vote with producing countries in deciding matters such as the regulation of prices, trade, production, stocks, and the like; that, where practicable, they provide for measures to expand consumption of the commodity in question; that they assure supplies of the product adequate to meet world demand at reasonable prices; and that they make appropriate provision to satisfy world consumption from the most effective sources of supply. Provision is made that full publicity must attend all important stages in the making of intergovernmental commodity agreements. Chapter VIII. Organization Chapter VIII of the Charter sets forth the functions and structure of the ITO and relates them to the substantive undertakings of Members provided for in the earlier chapters. Functions. The functions of the ITO largely relate to its responsibilities in connection with chapter V (Commercial Policy), chapter VI (Restrictive Business Practices) and chapter VII (Commodity Agreements). In addition to functions of this kind, the ITO would be authorized to provide assistance and advice to Members and other international organizations in connection with specific projects of industrialization or other economic development; to promote international agreements such as those designed to facilitate the international movement of capital, technology, art, and skills, and those relating to commercial travelers, commercial arbitration, and the avoidance of double taxation; and to cooperate with the United Nations and other organizations on economic and social matters and on measures to maintain peace and security. Structure. The principal organs of the ITO would be a Conference; an Executive Board; a Commission on Commercial Policy, a Commission on Business Practices, and a Commodity Commission; and a Secretariat. The Conference. The governing body of the ITO would be the Conference on which each country belonging to the ITO would be represented. The decisions of the Conference on most matters would be taken by a simple majority vote of the Members present and voting, each country casting one vote.' The Conference would have final authority to determine the policies of the ITO. It would be authorized to make recommendations regarding any matter relating to the purposes of the ITO and to elect the members of the Executive Board. Interim Tariff Committee. An Interim Tariff Committee within the ITO would be charged with the function of authorizing Members to withhold, if necessary, tariff reductions from other Members which failed to meet their obligations to negotiate for the substantial reduction of tariffs and the elimination of preferences. The Committee would consist of those Members of the ITO which had already fulfilled A minority of the Preparatory Committee favored the use of a system of weighted voting in the Conference. these requirements among themselves. Other Members of the ITO would be entitled to join the Committee upon the completion by them of adequate negotiations regarding tariffs and preferences. All decisions of the Committee would be taken by majority vote, each Member casting one vote. Executive Board. The Executive Board would consist of fifteen Members of the ITO elected by the Conference every three years. [NOTE: Under alternative drafts of the appropriate article permanent membership on the Board by Members of chief economic importance would be provided for.] Decisions of the Board would be taken by a majority of the Members present and voting, each country casting one vote. The Board would be responsible for executing the policies of the ITO and for exercising powers delegated to it by the Conference. It would be authorized to make recommendations to Members of the ITO, to the Conference, and to other international organizations. The Board would be required to provide adequate machinery to review the work of the ITO as it relates to industrialization and other economic development. The Commissions. The Commission on Commercial Policy, the Commission on Business Practices, and the Commodity Commission would be established by the Conference and would be responsible to the Executive Board. The Conference would be authorized to estab lish any other commissions which might in time be required. The Commissioners would be expert persons appointed by the Board in their personal capacities. The chairmen of the commissions could participate, without vote, in the meetings of the Board and of the Conference. Other international organizations having a special interest in the activities of one of the commissions might be invited to participate in its work. The functions of the three commissions are concerned largely with the making of recommendations to the Executive Board relating to the discharge of the ITO's responsibilities in the three specialized fields. In addition, the commissions would perform any other functions assigned to them by the Conference or the Board, including such functions in connection with the settlement of disputes as the Board might deem appropriate. Secretariat. The Secretariat of the ITO would consist of a Director General and such staff as might be required. 2 Initially, the Interim Tariff Committee would consist of those Members which had made effective the agreement for concerted reduction of tariffs and trade barriers which it is hoped will be concluded by the countries already invited by the United States to negotiate for this purpose. It is contemplated that the agreement would incorporate schedules of tariff concessions and certain of the provisions of chapter V of the Charter (e.g. those relating to most-favored-nation treatment, to national treatment on internal taxes and regulations, to quantitative restrictions, etc.). The Director General would be appointed by the Conference upon the recommendation of the Board. He could participate in the deliberations of the Board, the Conference, and the commissions, and initiate proposals for consideration by any organ of the ITO. Miscellaneous provisions. These provisions largely parallel similar provisions in the constitutions of other international organizations. They deal with relations between the ITO and other organizations, the international responsibilities of the staff of the ITO, legal capacity of the ITO, privileges and immunities of the ITO, amendments to the Charter, interpretation and settlement of legal questions, contributions of Members, entry into force of the Charter, and withdrawal from the ITO and termination of the Charter. Article 3. Relation of Em.ployment to the Purposes of the Organization Article 5. The Development of Domestic Resources and Productivity 223∞∞ Article 7. The Removal of Maladjustments in the Balance of Payments 3 3 Article 9. Consultation and Exchange of Information on Matters Relating to Employment. . 3 4 45 CHAPTER IV. ECONOMIC DEVELOPMENT Article 10. Importance of Economic Development Article 12. Means of Economic Development . . Article 13. Governmental Assistance to Economic Development CHAPTER V. GENERAL COMMERCIAL POLICY SECTION A. General Commercial Provisions Article 14. General Most-Favored-Nation Treatment . . Article 15. National Treatment on Internal Taxation and Regulation* Article 17. Antidumping and Countervailing Duties* Article 18. Tariff Valuation*. Article 19. Customs Formalities* Article 20. Marks of Origin* . Article 21. Publication and Administration of Trade Regulations-Ad vance Notice of Restrictive Regulations* Article 22. Information, Statistics, and Trade Terminology* Article 23. Boycotts* SECTION B. Tariffs and Tariff Preferences Article 24. Reduction of Tariffs and Elimination of Preferences . *Asterisks indicate that these articles have been taken from the United States Suggested Charter and have been included in square brackets (see Foreword). |