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1.

In cases where matters are referred to the Committee for conciliation failing a mutually agreed solution in consultations under any provision of this Agreement, the Committee shall immediataly review the facts involved and, through its good offices, shall encourage the signatories involved to develop a mutually acceptable solution.1

2.

Signatories shall make their best efforts to reach a mutually satisfactory solution throughout the period of conciliation.

3. Should the matter remain unresolved, notwithstanding efforts at conciliation made under paragraph 2 above, any signatory involved may,

thirty days after the request for conciliation, request that a panel be established by the Committee in accordance with the provisions of Article 18

below.

Article 18

1.

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The Committee shall establish a panel upon request pursuant to

2

paragraph 3 of Article 17. A panel so established shall review the facts of the matter and, in light of such facts, shall present to the Committee

In this connection, the Committee may draw signatories' attention to those cases in which, in its view, there is no reasonable basis supporting the allegations made.

2This does not preclude, however, the more rapid establishment of a panel when the Committee so decides, taking into account the urgency of the situation.

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its findings concerning the rights and soligations of the signatories party to the dispute under the relevant provisions of the General Agreement as interpreted and applied by this Agreement.

A panel should be established within thirty days of a request therefor and a panel so established should deliver its findings to the Committee within sixty days after its establishment.

3. When a panel is to be established, the Chairman of the Committee, after securing the agreement of the signatories concerned, should propose the composition of the panel. Panels shell be composed of three or five members, preferably governmental, and the composition of panels should not give rise to delays in their establishment.

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It is understood that citizens

are parties to the dispute would not be

members of the panel concerned with cher dispute.

In order to facilitate the constitution of panels, the Chairmen of the Committee should maintain an informal indicative list of governmental and non-governmental persons qualified in the fields of trade relations, economic development, and other matters covered by the General Agreement and this Agreement, who could be available for serving on panels, For this purpose, each signatory would be invited to indicate at the beginning of every year to the Chairman of the Committee the name of one or two persons who would be available for such work.

The parties to the dispute would respond within a short period of time, i.e., seven working days, to nominations of panel members by the Chairmen of the Committee and would not oppose nominations except for compelling reasons.

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The term govemments" is understood to mean governments of all member countries in cases of customs unions,

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5. Panel members would serve in their individual capacities and not as government representatives, nor as representatives of any organization. Governments would therefore not give them instructions with regard to matters before a panel. Panel members should be selected with a view to ensuring the independence of the members, a sufficiently diverse background and a wide spectrum of experience.

6. To encourage development of mutually satisfactory solutions between the parties to a dispute and with a view to obtaining their comments, each panel should first submit the descriptive part of its report to the parties concerned, and should subsequently submit to the parties to the dispute its conclusions, or an outline thereof, a reasonable period of time before they are circulated to the Committee.

7. If a mutually satisfactory solution is developed by the parties to a dispute before a panel, any signatory with an interest in the matter bes a right to enquire about and be given appropriate information about that solution and a notice outlining the solution that has been reached shall be presented by the panel to the Committee.

8.

In cases where the parties to a dispute have failed to come to a satisfactory solution, the panels shall submit a written report to the Committee which should set forth the findings of the panel as to the questions of fact and the application of the relevant provisions of the General Agreement as interpreted and applied by this Agreement and the reasons and bases therefor.

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9. The Committee shall consider the panel report as soon as possible and, taking into account the findings contained therein, may make recommendations to the parties with a view to resolving the dispute. If the Committee's recommendations are not followed within a reasonable period, the Committee may authorize appropriate countermeasures (including withdrawal of GATT concessions or obligations) taking into account the nature and degree of the adverse effect found to exist. Committee recommendations should be presented to the parties within thirty days of the receipt of the panel report.

Article 19

1.

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No specific action against a subsidy of another signatory can be taken except in accordance with the provisions of the General Agreement, as inter

preted by this Agreement.1

Acceptance and accession

2. (a) This Agreement shall be open for acceptance by signature or otherwise, by governments contracting parties to the GATT and by the European Economic Community.

(b) This Agreement shall be open to accession by any other government
on terms, related to the effective application of rights and obli-
gations under this Agreement, to be agreed between that government
and the signatories, by the deposit with the Director-General to the
CONTRACTING PARTIES to the GATT of an instrument of accession

which states the terms so agreed.

This paragraph is not intended to preclude action under other relevant provisions of the. General Agreement, where appropriate.

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(c)

Contracting parties may accept this Agreement in respect of those territories for which they have international responsibility, provided that the GATT is being applied in respect of such territories in accordance with the provisions of Article XXVI:5(a)

or (b) of the General Agreement;

and in terms of such acceptance,

each such territory shall be treated as though it were a signatory.

Reservations

3.

Reservations may not be entered in respect of any of the provisions of this Agreement without the consent of the other signatories.

Entry into force

4. This Agreement shall enter into force on 1 January 1980

for the

1

governments which have accepted or acceded to it by that date.

For each

other government it shall enter into force on the thirtieth day following the date of its acceptance or accession to this Agreement. National legislation

5.

(a)

Each government accepting or acceding to this Agreement shall take all necessary steps, of a general or particular character, to ensure, not later than the date of entry into force of this Agreement for it, the conformity of its laws, regulations and

administrative procedures with the provisions of this Agreement as they may apply to the signatory in question.

(b) Each signatory shall inform the Committee of any changes in its laws and regulations relevant to this Agreement and in the administration of such laws and regulations.

The term "governments" is deemed to include the competent authorities of the European Economic Community.

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