Common use of Developing Countries Clause in Contracts

Developing Countries. 1. Signatories recognize that subsidies are an integral part of economic development programmes of developing countries. 2. Accordingly, this Agreement shall not prevent developing country signatories from adopting measures and policies to assist their industries, including those in the export sector. In particular the commitment of Article 9 shall not apply to developing country signatories, subject to the provisions of paragraphs 5 through 8 below. _______________ 31In making such recommendations, the Committee shall take into account the trade, development and financial needs of developing country signatories. 3. Developing country signatories agree that export subsidies on their industrial products shall not be used in a manner which causes serious prejudice to the trade or production of another signatory. 4. There shall be no presumption that export subsidies granted by developing country signatories result in adverse effects, as defined in this Agreement, to the trade or production of another signatory. Such adverse effects shall be demonstrated by positive evidence, through an economic examination of the impact on trade or production of another signatory. 5. A developing country signatory should endeavour to enter into a commitment32 to reduce or eliminate export subsidies when the use of such export subsidies is inconsistent with its competitive and development needs. 6. When a developing country has entered into a commitment to reduce or eliminate export subsidies, as provided in paragraph 5 above, countermeasures pursuant to the provisions of Parts II and VI of this Agreement against any export subsidies of such developing country shall not be authorized for other signatories of this Agreement, provided that the export subsidies in question are in accordance with the terms of the commitment referred to in paragraph 5 above. 7. With respect to any subsidy, other than an export subsidy, granted by a developing country signatory, action may not be authorized or taken under Parts II and VI of this Agreement, unless nullification or impairment of tariff concessions or other obligations under the General Agreement is found to exist as a result of such subsidy, in such a way as to displace or impede imports of like products into the market of the subsidizing country, or unless injury to domestic industry in the importing market of a signatory occurs in terms of Article VI of the General Agreement, as interpreted and applied by this Agreement. Signatories recognize that in developing countries, governments may play a large rôle in promoting economic growth and development. Intervention by such governments in their economy, for example through the practices enumerated in paragraph 3 of Article 11, shall not, per se, be considered subsidies. 8. The Committee shall, upon request by an interested signatory, undertake a review of a specific export subsidy practice of a developing country signatory to examine the extent to which the practice is in conformity with the objectives of this Agreement. If a developing country has entered into a commitment pursuant to paragraph 5 of this Article, it shall not be subject to such review for the period of that commitment. _______________ 32It is understood that after this Agreement has entered into force, any such proposed commitment shall be notified to the Committee in good time. 9. The Committee shall, upon request by an interested signatory, also undertake similar reviews of measures maintained or taken by developed country signatories under the provisions of this Agreement which affect interests of a developing country signatory. 10. Signatories recognize that the obligations of this Agreement with respect to export subsidies for certain primary products apply to all signatories.

Appears in 1 contract

Sources: Agreement on Interpretation and Application of Articles Vi, Xvi and Xxiii of the General Agreement on Tariffs and Trade

Developing Countries. 1. Signatories recognize that subsidies are an integral part of economic development programmes of developing countries. 2. Accordingly, this Agreement shall not prevent developing country signatories from adopting measures and policies to assist their industries, including those in the export sector. In particular the commitment of Article 9 shall not apply to developing country signatories, subject to the provisions of paragraphs 5 through 8 below. _______________ 31In making such recommendations, the Committee shall take into account the trade, development and financial needs of developing country signatories. 3. Developing country signatories agree that export subsidies on their industrial products shall not be used in a manner which causes serious prejudice to the trade or production of another signatory. 4. There shall be no presumption that export subsidies subs idies granted by developing country signatories result in adverse effects, as defined in this Agreement, to the trade or production of another signatory. Such adverse effects shall be demonstrated by positive evidence, through an economic examination of the impact on trade or production of another signatory. 5. A developing country signatory should endeavour to enter into a commitment32 commitment 32 to reduce or eliminate export subsidies when the use of such export subsidies is inconsistent with its competitive and development needs. 6. When a developing country has entered into a commitment to reduce or eliminate export subsidies, as provided in paragraph 5 above, countermeasures pursuant to the provisions of Parts II and VI of this Agreement against any export subsidies of such developing country shall not be authorized for other signatories of this Agreement, provided that the export subsidies in question are in accordance with the terms of the commitment referred to in paragraph 5 above. 7. With respect to any subsidysu bsidy, other than an export subsidy, granted by a developing country signatory, action may not be authorized or taken under Parts II and VI of this Agreement, unless nullification or impairment of tariff concessions or other obligations under the General Agreement is found to exist as a result of such subsidy, in such a way as to displace or impede imports of like products into the market of the subsidizing country, or unless injury to domestic industry in the importing market of a signatory occurs in terms of Article VI of the General Agreement, as interpreted and applied by this Agreement. Signatories recognize that in developing countries, governments may play a large rôle in promoting economic growth and development. Intervention by such governments in their economy, for example through the practices enumerated in paragraph 3 of Article 11, shall not, per se, be considered subsidies. 8. The Committee shall, upon request by an interested signatory, undertake a review of a specific export subsidy practice of a developing country signatory to examine the extent to which the practice is in conformity with the objectives of this Agreement. If a developing country has entered into a commitment pursuant to paragraph 5 of this Article, it shall not be subject to such review for the period of that commitment. _______________ 32It is understood that after this Agreement has entered into force, any such proposed commitment shall be notified to the Committee in good time. 9. The Committee shall, upon request by an a n interested signatory, also undertake similar reviews of measures maintained or taken by developed country signatories under the provisions of this Agreement which affect interests of a developing country signatory. 10. Signatories recognize that the obligations obl igations of this Agreement with respect to export subsidies for certain primary products apply to all signatories.. PART IV

Appears in 1 contract

Sources: Agreement on Interpretation and Application of Articles Vi, Xvi and Xxiii of the General Agreement on Tariffs and Trade