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income or price support, to the domestic producers of any product, which operates to increase the exports of such product from, or to reduce the imports of such product into, the territory of the Member. such Member shall notify the Organization in writing as to the extent and nature of the subsidization, as to the anticipated effect of the subsidization on the quantity of the product imported into and exported from the territory of the Member, and as to the conditions making the subsidization necessary. In any case in which it is determined that serious injury to the trade of any Member is caused or threatened by the operation of any such subsidization, the Member granting such subsidization shall undertake to discuss with the other Member or Members concerned, or with the Organization, the possibility of limiting the subsidization.

2. Except as provided in paragraph 3 of this Article, no Member shall grant, directly or indirectly, any subsidy on the exportation of any product, or establish or maintain any other system which results in the sale of such product for export at a price lower than the comparable price charged for the like product to buyers in the domestic market, due allowance being made for differences in conditions and terms of sale, for differences in taxation, and for other differences affecting price comparability. The preceding sentence shall not be construed to prevent any Member from exempting exported products from duties or taxes imposed in respect of like products when consumed domestically or from remitting such duties or taxes which have accrued. Members shall give effect to the provisions of this paragraph at the earliest practicable date, but in any event not later than three years from the day on which this Charter enters into force. If any Member considers itself unable to make the provisions of this paragraph effective in respect of any specified product or products upon the expiration of such period, such Member shall, at least three months before the expiration of such period, give to the Organization a notice in writing to that effect, accompanied by an explanatory statement and an indication as to the extension of the period desired. It shall then be determined whether such period should be extended for the Member desiring an extension in respect of the product or products concerned.

3. a. In any case in which it is determined that a specified product is, or is likely to become, in burdensome world surplus, the Members which are substantially interested in the production, trade or consumption of such product shall, upon the invitation of the Organization or of any such Member, consult with each other with a view to the adoption of measures to increase consumption and to reduce production through the diversion of resources from uneconomic production, or with a view to seeking, if necessary, the conclusion of an intergovernmental commodity agreement in accordance with the provisions of Chapter VI of this Charter.

b. If it is determined that the measures provided for in subpara graph (a) of this paragraph have not succeeded, or do not promise to succeed, within a reasonable period of time, in removing, or preventing the development of, a burdensome world surplus of the product concerned, the requirements of paragraphs 1 and 2 of this Article shall cease to apply in respect of such product as of the effective date of such determination and shall not be reapplied in respect of such product until a date determined in accordance with procedures approved by the Organization.

c. Notwithstanding the provisions of paragraphs 2 and 3(6) of this Article, no Member shall grant any subsidy on the exportation of any product which has the effect of acquiring for that Member a share of world trade in that product in excess of the share which it had 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 that product. The selection of a representative period for any product and the appraisal of any special factors affecting the trade in the product shall be made initially by the Member granting the subsidy: Provided, That such Member shall, upon the request of any other Member having an important interest in the tradein that product, or upon the request of the Organization, consult promptly with the other Member or with the Organization regarding the need for an adjustment of the base period selected or for the reappraisal of the special factors involved.

4. Any determination required or appropriate to the operation of this Article shall be made under procedures established by the Organization in accordance with paragraph 6 of Article 55.

SECTION F. STATE TRADING

Article 26. Nondiscriminatory Administration of State-Trading

Enterprises 1. If any Member establishes or maintains a state enterprise, wherever located, which imports, exports, purchases, sells, distributes or produces any product or service, or if any Member grants exclusive or special privileges, formally or in effect, to any enterprise to import, export, purchase, sell, distribute or produce any product or service, the commerce of each of the other Members shall be accorded nondiscriminatory treatment, as compared with the treatment accorded to the commerce of any country other than that in which the enterprise

is located, in respect of the purchase or sale by such enterprise of any product or service. To this end such enterprise shall, in making its external purchases or sales of any product or service, be influenced solely by commercial considerations, such as price, quality, marketability, transportation and terms of purchase or sale. The Member maintaining such state enterprise, or granting exclusive or special privileges to an enterprise, shall, upon the request of any other Member having an interest in the trade in the product or service concerned, or upon the request of the Organization, provide such specific and detailed information as will make possible a determination as to whether the operations of the enterprise are being conducted in accordance with the requirements of this paragraph.

2. For the purposes of this Article, a state enterprise shall be understood to be any enterprise over whose operations a Member government exercises, directly or indirectly, a substantial measure of control.

Article 27. Expansion of Trade by State Monopolies of Individual

Products

If any Member, other than a Member subject to the provisions of Article 28, establishes, maintains or authorizes, formally or in effect, a complete or substantially complete monopoly of the importation or exportation of any product, such Member shall enter into negotiations with other Members, in the manner provided for in respect of tariffs under Article 18, with regard to (a) in the case of an import monopoly, the maximum margin by which the price for an imported product charged by the monopoly in the home market may exceed the price at which such product is offered for sale to the monopoly by foreign suppliers, or (6) in the case of an export monopoly, the maximum margin by which the price for a product offered for sale by the monopoly to foreign purchasers may exceed the price for such product charged in the home market; after due allowance in either case for internal taxes and for transportation, distribution and other expenses incident to purchase, sale or further processing. Members newly establishing any such monopoly in respect of any product shall not create a margin as defined above greater than the maximum rate of import duty (or, in the case of an export monopoly, greater than the maximum rate of export duty) which may have been negotiated in regard to that product pursuant to Article 18. With regard to any monopolized product in respect of which a maximum margin has been established pursuant to this Article, the monopoly shall, subject to the provisions of Section C of this Chapter, import and offer for sale (or, in the case of an export monopoly, offer for sale to foreign purchasers) such quantities of the product as will be sufficient to satisfy the full domestic demand for the imported product (or, in the case of an export monopoly, the full foreign demand for the product). at the prices charged under such maximum margins. Article 28. Expansion of Trade by Complete State Monopolies of

Import Trade Any Member establishing or maintaining a complete or substantially complete monopoly of its import trade shall promote the expansion of its foreign trade with the other Members in consonance with the purposes of this Charter. To this end such Member shall negotiate with the other Members an arrangement under which, in conjunction with the granting of tariff concessions by such other Members, and in consideration of the other benefits of this Chapter, it shall undertake to import in the aggregate over a period products of the other Members valued at not less than an amount to be agreed upon. This purchase arrangement shall be subject to periodic adjustment. SECTION G. EMERGENCY PROVISIONS-CONSULTATION-NULLIFICATION

OR IMPAIRMENT Article 29. Emergency Action on Imports of Particular Products

1. If, as a result of unforeseen developments and of the effect of the obligations incurred under this Chapter, including the tariff concessions granted pursuant to Article 18, any product is being imported into the territory of any Member in such increased quantities and under such conditions as to cause or threaten serious injury to domestic producers of like or similar products, the Member shall be free to withdraw the concession, or suspend the obligation, in respect of such product, in whole or in part, or to modify the concession to the extent and for such time as may be necessary to prevent such injury.

2. Before any Member shall take action pursuant to the provisions of paragraph 1 of this Article, it shall give notice in writing to the Organization as far in advance as may be practicable and shall afford the Organization, and the other Members having a substantial interest as exporters of the product concerned, an opportunity to consult with it in respect of the proposed action. If agreement among the interested Members with respect to the proposed action is not reached, the Member which proposes to take the action shall, nevertheless, be free to do so, and if such action is taken the other affected Members shall then be free, within sixty days after such action is taken, to suspend on sixty days' written notice to the Organization the application to

the trade of the Member taking such action, of any of the obligations or concessions under this Chapter the suspension of which the Organization does not recommend against.

Article 30. Consultation-Nullification or Impairment Each Member will accord sympathetic consideration to, and will afford adequate opportunity for consultation regarding, such representations as may be made by any other Member with respect to the operation of customs regulations and formalities, quantitative and exchange regulations, state-trading operations, sanitary laws and regulations for the protection of human, animal or plant life or health, and generally all matters affecting the operation of this Chapter. Moreover, if any Member should consider that any measure adopted by any other Member, whether or not it conflicts with the terms of this Chapter, has the effect of nullifying or impairing any object of this Chapter, such other Member shall give sympathetic consideration to such written representations or proposals as may be made with a view to effecting a mutually satisfactory adjustment of the matter. If no such adjustment can be effected, either Member shall be free to refer the matter to the Organization, which shall investigate the matter and make appropriate recommendations to the Members concerned. The Organization, if it considers the case serious enough to justify such action, may determine that the complaining Member is entitled to suspend the application to the other Member of specified obligations or concessions under this Chapter, and if such obligations or concessions are in fact suspended, 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.

SECTION H. RELATIONS WITH NON-MEMBERS Article 31. Contractual Relations With Non-MembersTreatment of

Trade of Non-Members 1. No Member shall seek exclusive or preferential advantages for its trade in the territory of any non-Member which would result, directly or indirectly, in discrimination in that territory against the trade of any other Member.

2. No member shall be a party to any agreement or other arrangement with any non-Member under which such non-Member shall be contractually entitled to any of the benefits under this Charter.

3. With regard to countries which, although eligible for membership, have not become Members or have withdrawn from the Organization, no Member shall, except with the concurrence of the Organization, apply to the trade of such countries the tariff reductions effected

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