cooperate in introducing such standards as are found to be desirable and practicable to encourage the freer movement of goods in inter national trade.

7. The Organization, in cooperation with the other organizations referred to in paragraph 4 of this Article, may adopt standards, nomenclature, terms and forms to be used in official documents and statistics of Members in the field of international trade. Such standards, nomenclature, terms or forms shall automatically become effective as to all Members of the Organization after notice has been given of their adoption by the Organization, except for such Members as may notify the Director General of rejection or reservations within the period stated in the notice, which period shall be not less than six months.

Article 17. Boycotts

No Member shall encourage, support or participate in boycotts or other campaigns which are designed to discourage, directly or indirectly, the consumption within its territory of products of other Member countries on grounds of origin, or the sale of products for consumption within other Member countries on grounds of destination. Moreover, each Member shall discourage, by such means as may be available to it, such campaigns by political entities within its jurisdiction.

SECTION B. TARIFFS AND TARIFF PREFERENCES

Article 18. Reduction of Tariffs and Elimination of Preferences

1. Each Member, other than a Member subject to the provisions of Article 28, shall, upon the request of any other Member or Members, enter into reciprocal and mutually advantageous negotiations with such other Member or Members directed to the substantial reduction of tariffs (or of margins of protection afforded by state trading) on imports and exports, and to the elimination of import tariff preferences. These negotiations shall proceed in accordance with the following rules:

a. Prior international commitments shall not be permitted to stand in the way of action with respect to tariff preferences.

b. All negotiated reductions in most-favored-nation import tariffs shall operate automatically to reduce or eliminate margins of preference, so that, in respect of any product on which the most-favorednation rate of duty is reduced or bound against increase pursuant to

the negotiations, the margin of preference which may apply to such product may not exceed the margin by which the most-favored-nation rate, as reduced or bound against increase, exceeds the preferential rate in force on July 1, 1939.

2. Each Member participating in negotiations pursuant to paragraph 1 of this Article shall keep the Organization informed of the progress thereof and shall transmit to the Organization a copy of the agreement or agreements incorporating the results of such negotiations.

3. If any Member considers that any other Member has failed, within a reasonable period of time, to fulfill its obligations under paragraph 1 of this Article, such Member may refer the matter to the Organization, which shall investigate the matter and make appropriate recommendations to the Members concerned. The Organization, if it finds that a Member has, without sufficient justification, failed to negotiate with such complaining Member as required by paragraph 1 of this Article, may determine that the complaining Member, or in exceptional cases the Members of the Organization generally, shall, notwithstanding the provisions of Article 8, be entitled to withhold from the trade of the other Member any of the tariff reductions which the complaining Member, or the Members of the Organization generally, as the case may be, may have negotiated pursuant to paragraph 1 of this Article, and if such reductions are in fact withheld, such other Member shall then be free, within sixty days after such action is taken, to withdraw from the Organization on sixty days' written notice to the Organization. The provisions of this paragraph shall operate in accordance with the provisions of Article 56.

SECTION C. QUANTITATIVE RESTRICTIONS

Article 19. General Elimination of Quantitative Restrictions

1. Except as otherwise provided elsewhere in this Chapter,' no prohibition or restriction other than duties, taxes or other charges, whether made effective through quotas, licenses or other measures, shall be imposed or maintained by any Member country on the importation of any product of any other Member country, or on the exportation, or sale for export, of any product destined for any other Member country.

2. The provisions of paragraph 1 of this Article shall not extend to the following:

1

See paragraph 2 of Article 19; Article 20; paragraph 1 of Article 22; and Article 29.

a. Prohibitions or restrictions on imports or exports, imposed or maintained during the early post-war transitional period, which are essential to (i) the equitable distribution among the several consuming countries of products in short supply, whether such products are owned by private interests or by the government of any Member country, or (ii) the orderly liquidation of temporary surpluses of stocks owned or controlled by the government of any Member country: Provided, That restrictions under (ii) of this subparagraph may be imposed by any Member only after consultation with other interested Members with a view to appropriate international action. Import and export prohibitions and restrictions imposed or maintained under this subparagraph shall be removed as soon as the conditions giving rise to them have ceased to exist and, in any event, not later than July 1, 1949: Provided, That this period may, in extraordinary and abnormal circumstances, and with the concurrence of the Organization, be extended in respect of any product for further periods not to exceed six months each.

b. Export prohibitions or restrictions temporarily imposed to relieve conditions of distress which are local to the exporting country and which are caused by severe shortages of foodstuffs or other essential products.

c. Import and export prohibitions or restrictions necessary to the application of standards for the classification and grading of commodities in international commerce.

d. Export or import quotas imposed under intergovernmental commodity agreements concluded in accordance with the provisions of Chapter VI.

e. Import restrictions on any agricultural product, imported in any form, necessary to the enforcement of governmental measures which operate (i) to restrict the quantities of the like domestic product permitted to be marketed or produced, or (ii) to remove a temporary surplus of the like domestic product by making the surplus available to certain groups of domestic consumers free of charge or at prices below the current market level. Any Member imposing restrictions on the importation of any product pursuant to this subparagraph shall give public notice of the total quantity or value of the product permitted to be imported during a specified future period and of any change in such quantity or value. Moreover, any restrictions imposed under (i) of this subparagraph shall not be such as will reduce the total of imports relative to the total of domestic production, as compared with the proportion between the two prevailing during a previous representative period, account being taken in so far as practicable of any special factors which may have affected or may be affecting the trade in the product concerned.

Article 20. Restrictions to Restore Equilibrium in the Balance of Payments

1. Notwithstanding the provisions of Article 19, any Member confronted with an adverse balance of international payments may, as an aid to the restoration of equilibrium therein, impose or maintain restrictions on the quantity or value of merchandise permitted to be imported. The imposition or maintenance of restrictions under this paragraph shall conform to the conditions and requirements set forth in paragraphs 2 or 3 of this Article, as the case may be.

2. Any Member which considers such action necessary to restore equilibrium in its balance of international payments shall be entitled to impose or maintain quantitative import restrictions under paragraph 1 of this Article until December 31, 1949: Provided, That any Member availing itself of the privileges of this paragraph shall consult, through the Organization, with the other Members affected with a view to assuring that the effects of such restrictions on their commercial interests are minimized to the fullest possible extent compatible with the safeguarding of the balance of payments of the Member imposing the restrictions. Any Member still maintaining such restrictions on December 31, 1949 shall complete arrangements so that no such restrictions shall remain in force on or after the expiration of six months from that date.

3. Notwithstanding the provisions of paragraph 2 of this Article, any Member shall be entitled to impose balance-of-payments restrictions, whether during or after the transitional period provided for in paragraph 2 of this Article, subject to the following conditions:

a. No Member shall impose such restrictions under this paragraph unless such action is necessary (i) to arrest a long-continuing or large deficit in the Member's balance of payments, or (ii) in the case of a Member with very low monetary reserves, to forestall a large deficit in the Member's balance of payments. Such restrictions under (i) shall be progressively relaxed with the reduction of the deficit in the Member's balance of payments and shall be completely removed upon the elimination of the deficit in the Member's balance of payments. Such restrictions under (ii) shall be progressively relaxed with improvement in the Member's monetary reserves, and shall be completely removed with the attainment by the Member of adequate monetary reserves. The deficit or surplus in a Member's balance of payments shall be understood to mean its deficit or surplus on current account, as defined in Article XIX (i) of the Articles of Agreement of the International Monetary Fund. A Member's monetary reserves shall

be understood to mean its reserves as defined in Article XIX (e) of the Articles of Agreement of the International Monetary Fund.

b. Any Member imposing new restrictions, or continuing beyond the transitional period restrictions imposed pursuant to paragraph 2 of this Article, shall enter into consultation with the Organization within thirty days after the imposition of new restrictions, or after the expiration of the transitional period, as the case may be. The Organization shall seek consultation with the International Monetary Fund in reviewing, in the light of the criteria set forth in (a) above, the balance of payments or monetary reserves of any Member availing itself of the privileges of this paragraph.

c. Any Member which considers that any other Member is applying import restrictions under this paragraph contrary to the letter or spirit of the undertakings in this Charter with respect to such restrictions, or in a manner tending to impair the commercial relations between the two Members, shall be entitled to bring the matter before the Organization for discussion, and the Member imposing the restrictions shall undertake in these circumstances to enter into discussions with a view to a mutually satisfactory settlement of the matter. The Organization may determine that such restrictions are: not in harmony with the principles set forth in this paragraph and' in the event appropriate action is not taken within thirty days after such determination any Member which considers that such restrictions have impaired its commercial relations with the Member imposing: the restrictions shall be free, within sixty days after the date of such determination, to suspend on sixty days' written notice to the Organization the application to the trade of such Member of any of the obligations or concessions under this Chapter the suspension of which the Organization does not recommend against.

4. Restrictions maintained or imposed under this Article by any Member shall be so administered as to avoid unnecessary dislocation to the trade of other Members having an interest in the exportation of particular products. To this end the Member maintaining or imposing such restrictions shall apply them to all imported products in a. manner as nearly uniform as practicable and shall in no event apply them in such a manner as would prevent the continuous importation in minimum commercial quantities of any product (a) if imports of the product are supplied principally or in important part by any cther Member or Members, or (b) if imports of the product are important to the maintenance of the economy of any other Member engaged in exporting the product to the Member maintaining or imposing such restrictions.