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ESTABLISHMENT

[The International Trade Organization of the United Nations is hereby established and shall operate in accordance with the following provisions:]

CHAPTER I. PURPOSES

Article 1. General Purposes of the Organization

[The purposes of the Organization shall be:

[1. To promote the solution of problems in the field of international commercial policies and relations through consultation and collaboration among Members.

[2. To enable Members to avoid recourse to measures destructive of world commerce by providing, on a reciprocal and mutually advantageous basis, expanding opportunities for their trade and economic development.

[3. To encourage and assist the industrial and general economic development of Member countries, particularly of those still in the early stages of industrial development.

[4. In general, to promote national and international action for the expansion of the production, exchange and consumption of goods, for the reduction of tariffs and other trade barriers, and for the elimination of all forms of discriminatory treatment in international commerce; thus contributing to an expanding world economy, to the establishment and maintenance in all countries of high levels of employment and real income, and to the creation of economic conditions conducive to the maintenance of world peace.

[5. To provide a centralized agency for the coordination of the work of Members to the above ends.]

CHAPTER II. MEMBERSHIP

Article 2. Membership

1. The original Members of the Organization shall be those countries represented at the United Nations Conference on Trade and Employment which accept the provisions of this Charter by December 31, 194 or, in the event that this Charter has not entered into

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force by that date, the countries which agree to bring this Charter into force pursuant to the proviso to paragraph 3 of article 88.

2. Membership in the Organization shall be open to such other countries as accept the provisions of this Charter, subject to the approval of the Conference.

3. The Conference shall establish procedures that will open a membership in the Organization to the United Nations on behalf of the trust territories for which the United Nations is the administering authority.

CHAPTER III. EMPLOYMENT

Article 3. Relation of Employment to the Purposes of
the Organization

1. Members recognize that the avoidance of unemployment or underemployment through the achievement and maintenance in each country of useful employment opportunities for those able and willing to work and of high and steadily rising effective demand for goods and services is not of domestic concern alone, but is a necessary condition for the expansion of international trade and, in general, for the realization of the purposes of the Organization. They also recognize that measures to sustain demand and employment should be consistent with the other purposes and provisions of the Organization, and that in the choice of such measures, each country should seek to avoid creating balance of payments difficulties for other countries.

2. They agree that, while the achievement and maintenance of effective demand and employment must depend primarily on domestic measures, such measures should be assisted by the regular exchange of information and views among Members and, so far as possible, be supplemented by international action sponsored by the Economic and Social Council of the United Nations and carried out in collaboration with the appropriate intergovernmental organizations, acting within their respective spheres and consistently with the terms and purposes of their basic instruments.

Article 4. The Maintenance of Domestic Employment

Members shall take action designed to achieve and maintain full and productive employment and high and stable levels of effective demand within their own jurisdictions through measures appropriate to their political and economic institutions and compatible with the other purposes of the Organization.

Article 5. The Development of Domestic Resources and
Productivity

Members, recognizing that all countries have a common interest in the productive use of the world's resources, agree to take action designed progressively to develop economic resources and to raise standards of productivity within their jurisdiction through measures compatible with the other purposes of the Organization.

Article 6. Fair Labor Standards

Members, recognizing that all countries have a common interest in the maintenance of fair labor standards, related to national productivity, agree to take whatever action may be appropriate and feasible to eliminate substandard conditions of labor in production for export and generally throughout their jurisdiction.

Article 7. The Removal of Maladjustments in the Balance
of Payments

Members agree that in case of a fundamental disequilibrium in their balance of payments involving other countries in persistent balance of payments difficulties which handicap them in maintaining employment, they will make their full contribution to action designed to correct the maladjustment.

Article 8. Safeguards for Countries Subject to External

Deflationary Pressure

The Organization shall have regard, in the exercise of its functions as defined in the other articles of this Charter, to the need of Members to take action within the provisions of the Charter to safeguard their economies against deflationary pressure in the event of a serious or abrupt decline in the effective demand of other countries.

Article 9. Consultation and Exchange of Information on Matters Relating to Employment

Members agree to participate in arrangements undertaken or sponsored by the Economic and Social Council of the United Nations, including arrangements with the appropriate intergovernmental organizations:

(a) for the regular collection, analysis, and exchange of information on domestic employment problems, trends, and policies, including as far as possible information relating to national income, demand, and the balance of payments; and

(b) for consultation with a view to concerted action on the part of governments and intergovernmental organizations in the field of employment policies.

CHAPTER IV. ECONOMIC DEVELOPMENT

Article 10. Importance of Economic Development

Members recognize that the industrial and general economic development of all countries and in particular of those countries whose resources are as yet relatively undeveloped will improve opportunities for employment, enhance the productivity of labor, increase the demand for goods and services, contribute to economic stability, expand international trade, and raise levels of real income, thus strengthening the ties of international understanding and accord.

Article 11. Plans for Economic Development

1. Members undertake to promote the continuing industrial and general economic development of their respective countries and territories in order to assist in realizing the purposes of the Organization.

2. Members agree that they will cooperate through the Economic and Social Council of the United Nations and the appropriate intergovernmental organizations in promoting industrial and general economic development.

(3. The Organization, at the request of any Member, shall advise such Member concerning its plans for economic development and, within its competence and resources, shall provide such Member with technical assistance in completing its plans and carrying out its programs.) 1

Article 12. Means of Economic Development

1. Members recognize that progressive economic development is dependent upon the availability of adequate supplies of:

(a) capital funds; and

(b) materials, equipment, advanced technology, trained workers and managerial skill.

2. Members agree to impose no unreasonable impediments that would prevent other Members from obtaining access to facilities required for their economic development.

3. Members agree to cooperate within the limits of their power to do so, with the appropriate intergovernmental organizations of which they are members in the provision of such facilities.

4. Members agree that, in their treatment of other Members, business entities, or persons supplying them with facilities for their industrial and general economic development, not only will they con

1 This paragraph was adopted provisionally by the Preparatory Committee pending receipt of advice (before the spring meeting of the Preparatory Committee) from the Economic and Social Council as to whether it was in accordance with the Council's views on the appropriate allocation of functions among the various specialized international agencies.

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