1. Tariffs and Preferences Members of the Iro must carry out negotiations directed toward the substantial reduction of tariffs. But if, through unforeseen developments, a particular reduction should increase imports so sharply as to cause or threaten serious injury to domestic producers, a member may suspend its operation in whole or in part. Reductions in tariffs will operate to reduce or eliminate margins of preference. Aside from the preferences that may survive negotiation, each member must grant every other member equal treatment for its trade. No new preferences can be created. No existing preferences can be increased. An exception is made, however, for new preferential arrangements which are incidental to the establishment of a customs union. 1 restrictions on other countries, the causes of its monetary difficulties, and the ways in which they may be overcome. It must relax its quotas as its monetary position improves and eliminate them entirely when its difficulties disappear. Any member may complain that another has failed to satisfy these conditions. If the Iro finds that the complaint is justified, it must recommend that the restrictions in question be withdrawn or modified. If the offending member does not comply with its recommendation, the Iro may then authorize other members to impose higher tariffs, quotas, or other restrictions on its trade. In all of its decisions in such cases the Iro must accept as conclusive the determinations of the International Monetary Fund as to the financial questions that are involved. Where quotas are permitted they must be administered without discrimination. But there are also necessary exceptions to this rule. In the main these exceptions are designed to make the provisions of the charter consistent with the Articles of Agreement of the International Monetary Fund. The most important of them permits a member to discriminate in using quotas if it can thereby increase its total imports and safeguard its monetary reserves. But, in doing so, the member must satisfy strict criteria and, after March 1952, it must also obtain the prior approval of the Iro. The Iro may, at any time, order a member to discontinue discriminations that are inconsistent with these provisions and, whenever it finds that there is no longer a wide-spread disequilibrium in interna |