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4.

When considering the suggested measures pursuant to paragraphs 2 and 3 of this Article, due consideration shall be given to special and more favourable treatment to developing countries, where this is feasible and appropriate.

5. Any participant may raise before the Council any matter affecting this Arrangement. The Council shall, at the request of a participant, meet within a period of not more than fifteen days to consider any matter affecting the present Arrangement.

[In accordance with the provisions of Article XX of the General Agreement, participants recognize the need to avoid that the measures referred to in this paragraph constitute a means of arbitrary or unjustifiable discrimination between countries where the same conditions prevail or a disguised restriction on international trade in the products. covered by this Arrangement.

Consequently, participants undertake to notify the Council in writing of any measures they propose to adopt, with an indication of the circumstances which, in their opinion, make the adoption of such measures

necessary.

Notification prior to application of a measure may be omitted in the event of urgent problems of human or animal health or of environmental protection, and provided such omission is justified to the entire satisfaction of the Council in the light of the provisions of Article XX of the General Agreement and of the present Arrangement.

The Council, in pursuance of paragraph (5) of Article IV, may adopt such recommendations as it deems appropriate.2]

[The notification referred to in Article XIX:2 of the General Agreement on Tariffs and Trade shall likewise be made to the Council established under this Arrangement where the emergency action envisaged in that Article concerns products covered by this Arrangement.

The notification shall include a statement of the facts that are causing or threatening to cause, in the opinion of the participant intending to take the action, serious injury to domestic producers of like or directly competing products.

If a satisfactory solution is reached in the Group "Agriculture"

concerning the applicability to agricultural products of the draft Code on standards, such a provision would not be necessary.

2Proposal made by Argentina.

3If a satisfactory solution is reached in the Group "Safeguards" such a provision would not be necessary.

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In any case, and without prejudice to the provisions of Article XIX of the General Agreement on Tariffs and Trade and paragraph (5) of Article IV, participants adversely affected by the action may refer the matter to the Council.

3.

The Council may adopt such recommendations as it deems appropriate.1]

(Title to be decided on later)

(3) Participants in this Arrangement undertake to take appropriate steps to ensure that their trade is carried out under as steady and orderly conditions as possible." [Developing countries may be exempted in whole or in part from such commitments."]

(b) The participants undertake to contribute to the fullest possible
extent to the implementation of the objectives of this Arrangement set
forth in Article I. To this end, and consistent with the principles,
rules and disciplines of the General Agreement, participants shall, on
a regular basis, enter into the discussions provided in Article IV:1(c)
with a view to exploring the possibilities of realizing the objectives
of the present Arrangement, in particular the further dismantling of
obstacles to world trade in bovine meat and live animals.
discussions should prepare the way for subsequent consideration of
possible solutions of trade problems consistent with the rules and
principles of the GATT, which could be jointly accepted by all the
parties concerned, in e balanced context of mutual advantages.

Such

proposel made by Argentina.

It is understood that the word "possible" appearing in this paragraph is to be interpreted as meaning also that participants commit themselves within the limits of their institutional possibilities.

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4.

Subsidies

Alternative 1

(Participants recognize that subsidies that contribute to distort markets for the products covered by the present Arrangement, including those applied at stages other than that of export whether they have the effect of increasing exports or of reducing imports of those products, jeopardize the achievement of the objectives of this Arrangement.

Accordingly, they undertake to avoid the use of such subsidies and gradually to reduce any that are in force with the object of eliminating them as soon as possible.

Consequently, participants agree, without prejudice to the provisions of Article XVI of the General Agreement on Tariffs and Trade to notify in writing to the Council the purpose and nature of any subsidies maintained by them, with an indication of their estimated effects on the quantity of the product or products imported or exported by them and the circumstances which, in their opinion, make the subsidy necessary.

Likewise, participants maintaining subsidies shall examine, with any participant or participants that so request, or in the Council, upon request by an interested participant, the modalities for implementing the undertaking gradually to reduce the said subsidies. The Council shall make such recommendations as it deems necessary.2]

Alternative 2

Export subsidies

(i) Participants recognize that export subsidies, including any form
of income or price support, which operate directly or indirectly to
increase exports of bovine meat may endanger the fulfilment of the
objectives of this Arrangement and accordingly undertake to avoid
the use or maintenance of such subsidies.

(ii) If a participant grants or maintains any such subsidy it shall on 1 January each year notify the Council in writing of (a) the extent and nature of the subsidization, (b) the effect of the subsidization on the quantity exported from its territory and (c) of the circumstances making the subsidization necessary.

IIf

a satisfactory solution is reached in the Sub-Group "Subsidies and Countervailing Duties", such a provision would not be necessary. 2Proposal made by Argentina.

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(iii) If a participant applies any subsidy which operates directly or indirectly to increase its exports such subsidy shall not be applied in a manner which results in that participant having more than an equitable share of trade of that product either globally or in an individual country market, account being taken of the shares of the participant in such trade in the product during a previous representative period and any special factors which may have affected or may be affecting such trade in the product.

(iv) If a participant considers that serious prejudice to its
interests under this Arrangement is caused or threatened by exports
benefiting from export subsidies, the participant applying the measure
shall, upon request, discuss with the other participant or participants
concerned or with the Council the possibility of limiting or elimi-
nating the subsidized exports in question.

Note:

Since the legal relationship between the proposed Arrangement
Regarding Bovine Meat and the GATT has yet to be established,
there may need to be additional provisios within an arrangement
ovisios
relating to dispute settlement.

Proposal made by Australia.