THE DICKENSON BAY AGREEMENT
AGREEMENT ESTABLISHING THE CARIBBEAN FREE TRADE ASSOCIATION
The Governments of Antigua, Barbados and British Guiana -
SHARING a common determination to fulfil within the shortest possible time
the hopes and aspirations of their peoples of other Caribbean countries
for full employment and improved living standards;
CONSCIOUS that these goals can most rapidly be attained by the optimum use
of available human and other resources and by accelerated and sustained
economic development;
AWARE that the broadening of domestic markets through the elimination of
barriers to trade between the territories is a prerequisite to such
development;
CONVINCED that such elimination of barriers to trade can best be achieved
by the immediate establishment of a Free Trade Economic Community for all
the countries who so desire;
HAVE AGREED as follows:-
ARTICLE 1
ASSOCIATION 1. An Association to be called the Caribbean Free Trade Association
(hereinafter referred to as "the Association") is hereby established.
2. The Members of the Association, hereinafter referred to as "Member
Territories" shall be the Territories on behalf of the Governments of
which this Agreement is ratified in accordance with Article 31 and such
other Territories as participate therein by virtue of paragraph 1 of
Article 32.
3. The institutions of the Association shall be a Council and such organs
as the Council may set up.
4. The Caribbean Free Trade Association shall operate over the areas of
the Member Territories collectively called the Caribbean Free Trade Area
(hereinafter referred to as "the Area").
ARTICLE 2
OBJECTIVES The objectives of the
Association shall be
a) to promote the expansion and diversification of trade in the area of
the Association;
(b) to secure that trade between member territories takes place in
conditions of fair competition;
(c) to encourage the progressive development of the economies of the Area;
(d) to foster the harmonious development of Caribbean trade and its
liberalisation by the removal of barriers to it.
ARTICLE 3
EXCLUSION FROM THIS AGREEMENT The provisions of the Agreement shall not affect the rights and
obligations under any agreements entered into by any of the parties to
this agreement before it is signed:
Provided, however, that each Party shall take any steps at its disposal
which are necessary to reconcile the provisions of any such agreements
with the purposes of this Agreement.
ARTICLE 4
IMPORT DUTIES 1. Subject to the provisions of Annex A, Member Territories shall not
apply any import duties on goods which are eligible for Area tariff
treatment in accordance with Article 5.
2. For the purposes of this Article and Annex A, the term "import duties"
means any tax or surtax of customs and any other charges of equivalent
effect - whether fiscal, monetary or exchange - which are levied on
imports, except duties notified under Article 7 and other charges which
fall within that Article.
3. The provisions of this Article do not apply to fees and similar charges
in respect of services rendered. ARTICLE 5
AREA ORIGIN FOR TARIFF PURPOSES 1. For the purposes of Articles 4 - 8, goods shall, subject to Annex B, be
accepted as eligible for Area tariff treatment if they are consigned from
a Member Territory to a consignee in the importing Member Territory and if
they are of Area origin under any one of the following conditions -
(a) that they have been wholly produced within the area;
(b) that they fall within a description of goods listed in a process list
to be established by decision of the Council and have been produced within
the area by the appropriate qualifying process described in that List;
(c) that they have been produced within the Area and that the value of any
materials imported from outside the Area or of undetermined origin which
have been used at any stage of the production of the good does not exceed
50 percent of the export price of the goods.
2. For the purposes of sub-paragraphs (a), (b) and (c) of paragraph 1 of
this Article, materials listed in the Basic Materials List which forms the
schedule to Annex B, which have been used in the state described in that
List in a process of production within the Area, shall be deemed to
contain no element imported from outside the Area.
3. Nothing in this agreement shall prevent a Member Territory from
accepting as eligible for Area tariff treatment any imports consigned from
another Member Territory, provided that the like imports consigned from
any Member Territory are accorded the same treatment.
4. Provisions necessary for the administration and effective application
of this Article are contained in Annex B.
5. The Council may decide to amend the provisions of this Article, Annex B
and the Process List established under sub-paragraph (b) of paragraph 1 of
this Article.
6. The Council shall from time to time examine in what respect this
Agreement can be amended in order to ensure the smooth operation of the
origin rules. ARTICLE 6
DEFLECTION OF TRADE 1. For the purpose of this Article, trade is said to be deflected when-
(a) imports into a Member Territory of consignments of a particular
product from another Member Territory are increasing-
(i) as a result of the reduction or elimination in the importing Member
Territory of duties and charges in that product in accordance with Article
4 or 7, and
(ii) because the duties or charges levied by the exporting Member
territory on imports of raw materials or intermediate products, used in
the production of the product in by the importing Member Territory, and
(b) this increase in imports causes or would cause serious injury to
production which is carried on in the importing Member Territory.
2. The Council shall keep under review the question of deflections of
trade and their causes. It shall take such decisions as are necessary in
order to deal with the causes of deflection of trade by amending the rules
of origin in accordance with paragraph 5 or Article 5 or by such other
means as it may consider appropriate.
3. If a deflection of trade of a particularly urgent nature occurs, any
Member Territory may refer the matter to the Council. The Council shall
take its decision as quickly as possible and, in general within one month.
The Council may, by majority decision, authorise interim measures to
safeguard the position of the Member Territory in question. Such measures
shall not continue for longer than is necessary for the procedure under
paragraph 2 above to take place, and for not more than two months, unless
in exceptional cases, the Council, by majority decision, authorises an
extension of this period by not more than two months.
4. A Member Territory which is considering the reduction of the effective
level of its duties or charges on any product not eligible for Area tariff
treatment shall, as far as may be practicable, notify the Council not less
than thirty (30) days before such reduction comes into effect, and shall
consider any representations by other Member Territories that the
reduction is likely to lead to a deflection of trade. Information received
under this paragraph shall not be disclosed to any person outside the
service of the Association or the Governments of Member Territories.
5. When considering changes in their duties or charges on any product not
eligible for Area tariff treatment, Member Territories shall have due
regard to the desirability of avoiding consequential deflections of trade.
In case of any such change, any Member territory which considers that
trade is being deflected may refer the matter to the Council in accordance
with Article 26.
6. If, in the consideration of any complaint in accordance with Article
26, reference is made to a difference in the level of duties or charges on
any product not eligible for Area tariff treatment, that difference shall
be taken into account only if the Council finds by a majority vote that
there is a deflection of trade.
7. The Council shall review from time to time the provisions of this
Article and may decide to amend those provisions.
ARTICLE 7
REVENUE DUTIES AND INTERNAL TAXATION
1. Subject to the provisions of Annex C, Member Territories shall not -
(a) apply directly or indirectly to imported goods any fiscal charges in
excess of those applied directly or indirectly to like domestic goods, nor
otherwise apply such charges so as to afford effective protection to like
domestic goods; or
(b) apply fiscal charges to imported goods of a kind which they do not
produce, or which they do not produce in substantial quantities, in such a
way as to afford effective protection to the domestic production of goods
of a different kind which are substitutable for the imported goods, which
enter into direct competition with them which do not bear, directly or
indirectly, in the country of importation, fiscal charges of equivalent
incidence.
2. A Member Territory shall notify the Council of all fiscal charges
applied by it where, although the rates of charge, or the conditions
governing the imposition or collection of the charge, are not identical in
relation to the imported goods and to the like domestic goods, the Member
Territory applying the charge considers that the charge is, or has been
made, consistent with sub-paragraph (a) of paragraph 1 of this Article.
Each Member Territory shall, at the request of any other Member Territory,
supply information about the application of paragraph 1 of this Article.
3. For the purposes of this Article and Annex C -
(a) "fiscal charges" means revenue duties, internal taxes and other
internal charges on goods;
(b) "revenue duties" means customs duties and other similar charges
applied primarily for the purpose of raising revenue; and
(c) "imported goods" means goods which are accepted as being eligible for
area tariff treatment in accordance with Article 5.
ARTICLE 8
EXPORT DRAWBACK Each Member Territory may refuse to accept as eligible for Area tariff
treatment goods which benefit from export drawback allowed by Member
territories in which the goods have undergone the process of production
which form the basis of the claim to Area origin. In applying this
paragraph, each Member Territory shall accord the same treatment to
imports consigned from all other Member Territories.
For the purpose of this Article-
(a) "export drawback" means any arrangement for the refund or remission,
wholly or in part, of import duties applicable to imported materials,
provided that the arrangement, expressly or in effect, allows refund or
remission if certain goods or materials are exported, but not if they are
retained for home use;
(b) "remission" includes exemption from duties for materials brought into
free ports and other places which have similar customs privileges;
(c) "duties" means (i) all charges on or in connection with importation,
except fiscal charges to which Article 7 applies and (ii) any protective
element in such fiscal charges;
(d) "materials" and "process of production" have the meanings assigned to
them in Rule 1 of Annex B.
ARTICLE 9
PROHIBITION OF EXPORT DUTIES
1. Member Territories shall not apply any export duties.
2. The provisions of this article shall not prevent any member Territory
from taking such measures as are necessary to prevent evasion, by means of
re-export, of duties which it applies to exports to territories outside
the Area.
3. For the purposes of this Article, "export duties" means any duties or
charges with equivalent effect imposed on or in connection with the
exportation of goods from any Member Territory to a consignee in any other
Member Territory. ARTICLE 10
CO-OPERATION IN CUSTOMS ADMINISTRATION
Member Territories shall take appropriate measures, including arrangements
regarding administrative co-operation, to ensure that the provisions of
Articles 4 to 8 and of Annexes A, B and C are effectively and harmoniously
applied, taking account of the need to reduce as far as possible the
formalities imposed on trade and of the need to achieve mutually
satisfactory solution of any difficulties arising out of the operation of
those provisions. ARTICLE 11
FREEDOM OF TRANSIT Products imported into, or exported from, a Member Territory shall enjoy
freedom of transit within the Area and shall only be subject to the
payment of the normal rates for services rendered.
ARTICLE 12
DUMPED AND SUBSIDISED IMPORTS
1. Nothing in this Agreement shall prevent any Member Territory from
taking action against dumped or subsidised imports consistently with any
international obligations to which it is subject.
2. Any products which have been exported from one Member Territory to a
consignee in another Member territory and have not undergone any
manufacturing process since exportation shall, when re-imported into the
first member territory, be admitted free of quantitative restrictions and
measures with equivalent effect. They shall also be admitted free of
customs duties and charges with equivalent effect, except that any
allowance by way of drawback, relief from duty or otherwise, given by
reason of the exportation from the first member territory, may be
recovered.
3. If any industry in any Member Territory is suffering or is threatened
with material injury as the result of the import of dumped or subsidised
products into another Member Territory, the latter Member Territory shall,
at the request of the former Member Territory, examine the possibility of
taking, consistently with any international obligations to which it is
subject, action to remedy the injury or prevent the threatened injury.
ARTICLE 13
QUANTITATIVE IMPORT RESTRICTIONS
1. Subject to the provisions of Annex D, a Member Territory shall not
apply any quantitative restrictions on imports of goods from any other
part of the area.
2. For the purposes of the proceeding paragraph and Annex D,
"Quantitative restrictions" means prohibitions or restrictions on imports
into any Member Territory from any other part of the area whether made
effective through quotas, import licences or other measures with
equivalent effect, including administrative measures and requirements
restricting import.
3. The provisions of this article shall not prevent any Member territory
from taking such measures are as necessary to prevent evasion of any
prohibitions or restrictions which it applies to imports from territories
outside the area. ARTICLE 14
QUANTITATIVE EXPORT RESTRICTIONS
1. A Member Territory shall not apply any prohibitions or restrictions on
exports to any other part of the Area, whether made effective through
quotas or export licences or other measures with equivalent effect.
2. The provisions of this Article shall not prevent any Member Territory
from taking such measures as are necessary to prevent evasion of any
prohibitions or restrictions which it applies to exports to territories
outside the Area. ARTICLE 15
GENERAL EXCEPTIONS Provided that such measures are not used as a means of arbitrary or
unjustifiable discrimination between Member Territories , or as a
disguised restriction on the inter-territorial trade of the Area, nothing
in Articles 13 and 14 shall prevent the adoption or enforcement by any
Member Territory of Measures-
(a) necessary to protect public morals;
(b) necessary for the prevention of disorder or crime;
(c) necessary to protect human, animal or plant life or health;
(d) necessary to secure compliance with laws or regulations relating to
customs enforcement, or to the classification, grading or marketing of
goods, or to the operation of monopolies by means of state enterprises or
enterprises given exclusive or special privileges;
(e) necessary to protect industrial property or copyrights or to prevent
deceptive practices;
(f) relating to gold or silver;
(g) relating to the products of prison labour;
(h) imposed for the protection of national treasures of artistic, historic
or archaeological value; or
(i) necessary to prevent or relieve critical shortages of foodstuffs in
any exporting Member Territory.
ARTICLE 16
SECURITY EXCEPTIONS Nothing in the Agreement shall prevent any Member Territory from taking
action which it considers necessary for the protection of its essential
security interests, where such action-
(a) is taken to prevent the disclosure of information;
(b) relates to trade in arms, ammunition or war materials or to research,
development or production indispensable for defence purposes, provided
that such action does not include the application of import duties or the
quantitative restriction of imports except in so far as such restriction
is permitted in accordance with Article 15 or is authorised by decision of
the council;
(c) is taken to ensure that nuclear materials and equipment made available
for peaceful purposes do not further military purposes; or
(d) is taken in time of war or other emergency in international relations.
2. Nothing in this Agreement shall prevent any Member Territory from
taking action to perform any obligations to which it is subject for the
purpose of maintaining international peace and security.
ARTICLE 17
GOVERNMENT AIDS 1. A Member territory shall not maintain or introduce-
(a) the forms of aid to export of goods to any other part of the Area of
the kinds which are described in Annex E; or
(b) any other form of aid, the main purpose or effect of which is to
frustrate the benefits expected from such removal or absence of duties and
quantitative restrictions as is required by this agreement.
2. If the application of any form of aid by a Member territory, although
not contrary to paragraph 1 of this Article , frustrates the benefits
expected from such removal or absence of duties and quantitative
restrictions as is required by this Agreement and provided that the
procedure set out in paragraphs 1 to 3 of Article 26 has been followed,
the Council may, by majority decision, authorise any Member Territory to
suspend to the Member Territory which is supplying aid, the application of
such obligations under this Agreement as the Council considers
appropriate.
3. The Council may decide to amend the provisions of this Article and of
Annex B. ARTICLE 18
PUBLIC UNDERTAKINGS 1. Member Territories shall ensure the elimination in the practices of
public undertakings, of-
(a) measures the effect of which is to afford protection to domestic
production which would be inconsistent with this Agreement if achieved by
means of a duty or charge with equivalent effect or quantitative
restriction or government aid; or
(b) trade discrimination on grounds of Territorial origin in so far as it
frustrates the benefits expected from such removal or absence of duties
and quantitative restrictions as is required by this Agreement.
2. In so far as the provisions of Article 19 are relevant to the
activities of public undertakings, that Article shall apply to them in the
same way as it applies to other enterprises.
3. Member Territories shall ensure that new practices of the kind
described in paragraph 1 of this Article are not introduced.
4. Where Member Territories do not have the necessary legal powers to
control the activities of regional or local government authorities or
enterprises under their control in these matters, they shall nevertheless
endeavour to ensure that those authorities or enterprises comply with the
provisions of this Article.
5. The Council shall keep the provisions of this Article under review and
may decide to amend them.
6. For the purpose of this Article, "public undertakings" means central,
regional or local government authorities, public enterprises and any other
organisation by means of which a Member Territory by law or in practice
controls or appreciably influences imports from, or exports to, any other
part of the Area. ARTICLE 19
RESTRICTIVE BUSINESS PRACTICES
1. Member Territories recognise that the following practices are
incompatible with this Agreement in so far as they frustrate the benefits
expected from such removal or absence of duties and quantitative
restrictions as is required by this Agreement -
(a) agreement between enterprises, decisions by association of enterprises
and concerted practices between enterprises which have as their object or
result the prevention, restriction or distortion of competition within the
area;
(b) actions by which one or more enterprises take unfair advantage of a
dominant position within the Area or a substantial part of it.
2. If any practice of the kind described in paragraph 1 of this Article is
referred to the Council in accordance with Article 26, the Council may, in
any recommendation in accordance with paragraph 3 or in any decision in
accordance with paragraph 4 of that Article, make provision for
publication of a report on the circumstances of the matter.
3. (a) In the light of experience gained, the Council shall consider
before 31st December,1967, and may consider at any time thereafter whether
further or different provisions are necessary to deal with the effect of
restrictive business practices or dominant enterprises on the
inter-territorial trade of the Area.
(b) Such review shall include consideration of the following matters -
(i) specification of the restrictive business practices or dominant
enterprises with which the Council should be concerned;
(ii) methods of securing information about restrictive business practices
or dominant enterprises;
(iii) procedures for investigations;
(iv) whether the right to initiate inquiries should be conferred on the
Council.
(c) The Council may decide to make the provisions found necessary as a
result of the review envisaged in sub-paragraphs (a) and (b) of this
paragraph.
ARTICLE 20
ESTABLISHMENT 1. Each Member Territory recognises that restrictions on the establishment
and operation of economic enterprises therein by persons belonging to
other Member Territories should not be applied, through accord to such
persons of treatment which is less favourable than that accorded in such
matters to persons belonging to that Member Territory, in such a way as to
frustrate the benefits expected from such removal or absence of duties and
quantitative restrictions as is required by this Agreement.
2. Member Territories shall not apply new restrictions in such a way that
they conflict with the principle set out in paragraph 1 of this Article.
3. A Member Territory shall notify the Council within such period as the
Council may decide of particulars of any restrictions which it applies in
such a way that persons belonging to another Member Territory are accorded
in the first-mentioned Territory less favourable treatment in respect of
the matters set out in paragraph 1 of this Article than is accorded to
persons belonging thereto.
4. The Council shall consider before 31st December, 1967, and may consider
at any time thereafter, whether further or different provisions are
necessary to give effect to the principles set out in paragraph 1 of this
Article and may decide to make the necessary provisions.
5. Nothing in this Article shall prevent the adoption and enforcement by a
Member Territory of measures for the control of entry, residence, activity
and departure of persons where such measures are justified by reasons of
public order, public health or morality, or national security of that
Member Territory.
6. For the purposes of this Article-
(a) a person shall be regarded as belonging to a Member Territory if such
person-
(i) is a citizen of that Territory;
(ii) has a connection with that Territory of a kind which entitles him to
be regarded as belonging to, or, if it be so expressed, as being a native
of, the Territory for the purpose of such laws thereof relating to
immigration as are for the time being in force ; or
(iii) is a company or other legal person constituted in the Member
Territory in conformity with the law thereof and which that territory
regards as belonging to it, provided that such company or other legal
person has been formed for gainful purposes and has its registered office
and central administration, and carries on substantial activity, within
the Area;
(b) "economic enterprises" means any type of economic enterprises for
production of or commerce in goods which are of Area origin, whether
conducted by individuals or through agencies, branches or companies or
other legal persons.
ARTICLE 21
BALANCE OF PAYMENTS DIFFICULTIES
1. Notwithstanding the provisions of Article 13 any Member Territory may,
consistently with any international obligations to which it is subject,
introduce quantitative restrictions on imports for the purpose of
safeguarding its balance of payments.
2. Any Member Territory taking measures in accordance with paragraph 1 of
this Article shall notify them to the Council, if possible before they
come into force. The Council shall examine the situation and keep it under
review and may at any time by majority vote make recommendations designed
to moderate any damaging effect of these restrictions or to assist the
Member Territory concerned to overcome its difficulties. If the balance of
payments difficulties persist for more than 18 months and the measures
applied seriously disturb the operation of the Association, the Council
shall examine the situation and may, taking into account the interests of
all Member Territories, by majority decision, devise special procedures to
attenuate or compensate for the effect of such measures.
3. A Member Territory which has taken measures in accordance with
paragraph 1 of this Article shall have regard to its obligation to resume
the full application of Article 13 and shall, as soon as its balance of
payments situation improves, make proposals to the Council on the way in
which this should be done. The Council, if it is not satisfied that these
proposals are adequate, may recommend to the Member Territories
alternative arrangements to the same end. Decisions of the Council
pursuant to this paragraph shall be made by majority vote.
ARTICLE 22
DIFFICULTIES IN PARTICULAR SECTORS
1. If, in a Member Territory -
(a) an appreciable rise in the unemployment in a particular sector of
industry or region is caused by a substantial decrease in internal demand
for a domestic product, and
(b) this decrease in demand is due to an increase in imports consigned
from other Member Territories as a result of the progressive reduction or
the elimination of duties, charges and quantitative restrictions in
accordance with Articles 4, 7 and 13, that Member Territory may,
notwithstanding any other provisions of this Agreement -
(i) limit those imports by means of quantitative restrictions to a rate
not less than the rate of such imports during any period of twelve months
which ended within twelve months of the date on which the restrictions
come into force; the restrictions shall not be continued for a period
longer than eighteen months, unless the Council, by majority decision,
authorises their continuance for such further period and on such
conditions as the Council considers appropriate; and
(ii) take such measures, either instead of or in addition to restriction
of imports in accordance with sub-paragraph (i) of this paragraph, as the
Council may, by majority decision, authorise.
2. In applying measures in accordance with paragraph 1 of this Article, a
Member Territory shall give like treatment to imports consigned from all
Member Territories.
3. A Member Territory applying restrictions in accordance with
sub-paragraph (i) of this Article shall notify them to the Council, if
possible before they come into force. The Council may at any time consider
those restrictions and may, by majority vote make recommendations designed
to moderate any damaging effect of those restrictions or to assist the
Member State concerned to overcome its difficulties.
4. This article shall have effect until 31st December, 1970.
5. Before 1st January, 1971, if the Council considers that some provision
similar to those in paragraphs 1 to 3 of this Article will be required
thereafter, it may decide that such provisions shall have effect for any
period after that date.
ARTICLE 23
APPROXIMATION OF INCENTIVE LEGISLATION
1. A Tax of any kind in a Member Territory shall not, by the introduction
or extension of incentive provisions at any time after this Agreement
takes effect, be rendered liable to mitigation to any extent to which no
tax of that kind elsewhere in the Area (if any) is rendered by incentive
provisions previously introduced or extended, liable to mitigation.
2. A Member Territory which is considering the introduction or alteration
of any incentive provisions shall, as far as may be practicable, notify
the Council not less than thirty days before such introduction or
alteration comes into effect, and shall consider any representations with
respect thereto by other Member Territories, any of which may refer the
matter to the Council under Article 26 if a breach of this Article is
apprehended. Information received under this paragraph shall not be
disclosed to any person outside the service of the Association or the
Governments of Member Territories.
3. The Council may on its own initiative recommend to Member Territories
proposals for the approximation of incentive provisions within the Area.
Such proposals may include schemes for the increase or reduction of
concessions within the Area consistently with the provisions of the
foregoing Articles of this Agreement, and , may be implemented
notwithstanding anything provided in paragraph 1 of this Article. The
Council may take any appropriate measure provided for in this Agreement in
furtherance of the objectives of this Article.
4. The Council may from time to time review the provisions of this Article
and may decide to amend those provisions.
5. For the purposes of this Article -
"incentive provisions" means any legislation or practice providing for the
granting of concessions for the purpose of encouraging the establishment
or development of manufacturing industry;
"concessions" means any tax exemptions or remissions or refunds of tax;
"tax" includes any impost, duty or due.
ARTICLE 24
ECONOMIC AND FINANCIAL POLICIES
Member Territories recognise that the economic and financial policies of
each of them affect the economies of other Member Territories and intend
to pursue those policies in a manner which serves to promote the
objectives of the Association. They shall periodically exchange views on
all aspects of those policies. The Council may make recommendations to
Member Territories on matters relating to these policies to the extent
necessary to ensure the attainment of the objectives of the smooth
operation of the Association.
ARTICLE 25
INVISIBLES Member Territories recognise the importance of invisible transactions and
transfers for the proper functioning of the Association. The Council may
decide on provisions with regard to such transactions and transfers as may
prove desirable, having due regard to any international obligations to
which Member Territories are subject.
ARTICLE 26
GENERAL CONSULTATIONS AND COMPLAINTS PROCEDURE
1. If any Member Territory considers that any benefit conferred upon it by
this Agreement or any objective of the Association is being or may be
frustrated and if no satisfactory settlement is reached between the Member
Territories concerned, any of those Member Territories may refer the
matter to the Council.
2. The Council shall promptly, by majority vote, make arrangements for
examining the matter. Such arrangements may include a reference to an
examining committee constituted in accordance with Article 27. Before
taking action under paragraph 3 of this Article, the Council shall so
refer the matter at the request of any Member Territory concerned. Member
Territories shall furnish all information which they can make available
and shall lend their assistance to establish the facts.
3. When considering the matter, the Council shall have regard to whether
it has been established that an obligation under this agreement has not
been fulfilled and whether and to what extent any benefit conferred by
this Agreement or any objective of the Association is being or may be
frustrated. In the light of this consideration and of the report of any
examining committee which may have been appointed, the Council may, by
majority vote, make to any Member Territory such recommendations as it
considers appropriate.
4. If a Member Territory does not or is unable to comply with a
recommendation made in accordance with paragraph 3 of this Article and the
Council finds, by majority vote, that an obligation under this Agreement
has not been fulfilled, the Council may, by majority decision, authorise
any Member Territory to suspend to the Member territory which has not
complied with the recommendation the application of such obligations under
this Agreement as the Council considers appropriate.
5. Any Member Territory may, at any time while the matter is under
consideration, request the Council to authorise as a matter of urgency,
interim measures to safeguard its position. If it is found by majority
vote of the Council that the circumstances are sufficiently serious to
justify interim action, and without prejudice to any action which it may
subsequently take in accordance with the preceding paragraphs of this
Article, the Council may, by majority decision, authorise a Member
Territory to suspend its obligations under this Agreement to such an
extent and for such a period as the Council considers appropriate.
ARTICLE 27
EXAMINING COMMITTEES
The examining committees referred to in Article 26 shall consist of
persons selected for their competence and integrity, who, in the
performance of their duties, shall neither seek nor receive instructions
from any Territory or from any authority or organisation other than the
Association. They shall be appointed, on such terms and conditions as may
be decided, by majority vote of the Council.
Continue with: ARTICLE 28
THE COUNCIL
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