WORLD TRADE
ORGANIZATIONWT/REG155/1
8 July 2003
(03-3677)
Committee on Regional Trade Agreements Original:  English
CARIBBEAN COMMUNITY AND COMMON MARKET
The following text reproduces the Revised Treaty of Chaguaramas establishing the Caribbean
Community including the CARICOM single market and economy.1
_______________
REVISED TREATY OF CHAGUARAMAS ESTABLISHING THE CARIBBEAN COMMUNITY
INCLUDING THE CARICOM SINGLE MARKET AND ECONOMY
PREAMBLE
The States Parties  to the Treaty Establishing the Caribbean Community and Common Market
signed at Chaguaramas on 4 July 1973,
Recalling  the Declaration of Grand Anse and other decisions of the Conference of Heads of
Government, in particular the commitment to deepening regional economic integration through the
establishment of the CARICOM Single Market and Economy (CSME) in order to achieve sustained
economic development based on international competitiveness, co-ordinated economic and foreign
policies, functional co-operation and enhanced trade and economic relations with third States;
Recognising  that globalisation and liberalisation have important implications for international
competitiveness;
Determined  to enhance the effectiveness of the decision-making and implementation
processes of the Community;
Desirous  of restructuring the Organs and Institutions of the Caribbean Community and
Common Market and redefining their functional relationships so as to enhance the participation of
their peoples, and in particular the social partners, in the integration movement;
Conscious  of the need to promote in the Community the highest level of efficiency in the
production of goods and services especially with a view to maximising foreign exchange earnings on
the basis of international competitiveness, attainin g food security, achieving structural diversification
and improving the standard of living of their peoples;
Aware  that optimal production by economic enterprises in the Community requires the
structured integration of production in the Region, and particularly, the unrestricted movement ofcapital, labour and technology;
                                                     
1 The full text of the Agreement together with its annexes and protocols is available at the WTO
Secretariat for consultation by interested Members (office 1174) and on the CARICOM Website
(www.caricom.org ).WT/REG155/1
Page 2
Resolved  to establish conditions which would facilitate access by their nationals to the
collective resources of the Region on a non-discriminatory basis;
Convinced  that market-driven industrial development in the production of goods and services
is essential for the economic and social development of the peoples of the Community;
Cognisant  that a fully integrated and liberalised internal market will create favourable
conditions for sustained, market-led production of goods and services on an internationally
competitive basis;
Desirous  further  of establishing and maintaining a sound and stable macro-economic
environment that is conducive to investment, incl uding cross-border investments, and the competitive
production of goods and services in the Community;
Believing  that differences in resource endowment and in the levels of economic development
of Member States, may affect the implementation of the Community Industrial Policy;
Recognising  also the potential of micro, small, and medium enterprise development to
contribute to the expansion and viability of national economies of the Community and the importance
of large enterprises for achieving economies of scale in the production process;
Mindful  that co-operation and joint action in developing trade relations with third States and
in establishing appropriate regulatory and administrative procedures and services are essential for the
development of the international and intraregional trade of Member States;
Determined  further  to effect a fundamental transformation of the agricultural sector of the
Community by diversifying agricultural production, intensifying agro-industrial development,expanding agri-business, strengthening the linkages between the agricultural sector and other sectors
of the CSME and generally conducting agricultural production on a market-oriented, internationally
competitive and environmentally sound basis;
Acknowledging  the vital importance of land, air and maritime transportation for maintaining
economic, social and cultural linkages as well as facilitating emergency assistance among the Member
States of the Community;
Recognising  further  the Importance of the establishment and structured development of
transport links with third States for the accel erated and sustained development of the CSME;
Conscious  also of the importance of promoting adequate air and maritime transport services
for the continued viability of the tourism industry and of reducing the vulnerability of the CARICOM
Region resulting from its reliance on extra-regional carriers;
Convinced  also that a viable transport policy for the Community will make a significant
contribution in satisfying the demands for the intra-regional movement of people and products in theCSME;
Acknowledging further  that some Member States, particularly the Less Developed Countries,
are entering the CSME at a disadvantage by reason of the size, structure and vulnerability of their
economies; and
Believing  further  that the persistence of disadvantage, however arising, may impact adversely
on the economic and social cohesion in the Community;WT/REG155/1
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Conscious  further  that disadvantaged countries, regions and sectors will require a transitional
period to facilitate adjustment to competition in the CSME;
Committed  to establish effective measures, programmes and mechanisms to assist
disadvantaged countries, regions and sectors of the Community;
Mindful  further  that the benefits expected from the establishment of the CSME are not
frustrated by anti-competitive business conduct whose object or effect is to prevent, restrict, or distort
competition;
Convinced  further  that the application and convergence of national competition policies and
the cooperation of competition authorities in the Community will promote the objectives of theCSME;
Affirming  that the employment of internationally accepted modes of disputes settlement in the
Community will facilitate achievement of the objectives of the Treaty;
Considering  that an efficient, transparent, and authoritative system of disputes settlement in
the Community will enhance the economic, social a nd other forms of activity in the CSME leading to
confidence in the investment climate and furthe r economic growth and development in the CSME;
Affirming  also that the original jurisdiction of the Caribbean Court of Justice is essential for
the successful operation of the CSME;
Recalling  further  the Charter of Civil Society adopted by the Conference of Heads of
Government on 19 February 1997 reaffirming the human rights of their peoples,
Have agreed  as follows:
Article 1
Use Of Terms
In this Treaty, unless the context otherwise requires:"Agreement" means the Agreement Establishing the Caribbean Court of Justice;"anti-competitive business conduct" has the meaning assigned to it in Article 173;
"Budget Committee" means the Body of the Community established by paragraph 1 of
Article 18;
"business" means any activity carried on for gain or reward or in the course of which goods or
services are produced, manufactured or supplied as the case may be;
"Commission" means the Competition Commission established by Article 167;"Committee of Central Bank Governors" means the Body of the Community referred to in
paragraph 2 of Article 18;
"Community" means the Caribbean Community established by Article 2 and includes the
CSME established by the provisions of this Treaty;WT/REG155/1
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"Community Council of Ministers" or "the Community Council" means the Organ of the
Community so named in paragraph 1 (b) of Article 10;
"Community origin" means origin which comp lies with the Rules of Origin set out in
Article 78;
"Community treatment" means the access accord ed to goods which are of Community origin
to the markets of Member States without the application of import duties or quantitative restrictions;
"competent authority" means the authority legally authorised to perform a function and for the
purpose of Chapter Five means the Minister of Government so designated by a Member State;
"Conference of Heads of Government" or "the Conference" means the Organ so named in
paragraph 1(a) of Article 10;
"Contracting Party" means a party to the Agreement;
"Council for Human and Social Development" or "COHSOD" means the Organ of the
Community so named in paragraph 2 of Article 10;
"Council for Finance and Planning" or "COF AP" means the Organ of the Community so
named in paragraph 2(a) of Article 10;
"Council for Foreign and Community Relations" or "COFCOR" means the Organ so named
in paragraph 2(c) of Article 10;
"Council for Trade and Economic Development" or "COTED" means the Organ of the
Community so named in paragraph 2(b) of Article 10;
"Court" means the Caribbean Court of Justice established by the Agreement;"the CSME" means the regime established by the provisions of this Treaty replacing Chapters
Three through Seven of the Annex to the Treaty Establishing the Caribbean Community and Common
Market signed at Chaguaramas on 4 July 1973;
"disadvantaged countries" means:(a) the Less Developed Countries within the meaning of Article 4; or
(b) Member States that may require special support measures of a transitional or
temporary nature by reason of:
(i) impairment of resources resulting from natural disasters; or
(ii) the adverse impact of the operation of the CSME on their economies; or
(iii) temporary low levels of economic development; or
(iv) being a Highly-Indebted Poor Country designated as such by the competent
inter-governmental organisation;
"disadvantaged regions" means:WT/REG155/1
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(a) regions within Member States experiencing economic dislocation from the operation
of the CSME; or
(b) regions that may require special support measures of a transitional or temporary
nature by reason of:
(i) impairment of resources resulting from natural disasters; or
(ii) temporary low levels of economic development;
"disadvantaged sectors" means:
(a) sectors of the economies of Member States in which economic enterprises experience
dislocation from the operation of the CSME; or
(b) sectors that may require special support measures of a transitional or temporary
nature by reason of natural disasters, whereby the loss in the sector causes social andeconomic disorder;
"dispute" means a dispute within the meaning of Article 183;
"economic enterprises" means economic enterprises within the meaning of paragraph 5(b) of
Article 32;
"enterprise" means any person or type of organisation, other than a non-profit organisation,
involved in the production of or the trade in goods, or the provision of services;
"goods" means all kinds of property other than real property, money, securities or choses in
action;
"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 those notified under
Article 85 and other charges which fall within that Article;
"Legal Affairs Committee" means the Body established by paragraph 1 of Article 18;"Member State" means a Member State of the Community excluding an Associate Member
within the meaning of Article 231;
"Ministerial Councils" means COFAP, COFCOR, COHSOD and COTED;"national" means a national within the meaning of paragraph 5(a) of Article 32;"President" means the President of the Court;
"recommended practice" means any specification for physical characteristics, configuration,
material, performance, personnel or procedure, the uniform application of which is regionally or
generally recognised in the international community as  desirable for the efficient delivery of transport
services;
"rules of competition" includes the rules set out in sub-paragraph (a)(i) of paragraph 1 of
Article 166 and Articles 176, 177, 178 and 179;WT/REG155/1
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"Secretariat" means the Secretariat of th e Community referred to in Article 23;
"Secretary-General" means the Secretary-General of the Community;"services" means services provided against remuneration other than wages in an approved
sector and "the provision of services" means the supply of services:
(a) from the territory of one Member State into the territory of another Member State;
(b) in the territory of one Member State to a service consumer of another Member State;
(c) by service supplier of one Member State through commercial presence in the territory
of another Member State; and
(d) by service supplier of one Member State through the presence of natural persons of a
Member State in the territory of another Member State;
"standard" means any specification for physical characteristics, configuration, material,
performance, personnel or procedure, the uniform application of which is regionally or generally
recognised in the international community as necessa ry for the efficient delivery of transport services;
"subsidies" includes the subsidies set out in Schedule V and shall apply only in relation to
goods;
"trade" includes any business, industry, profession or occupation relating to the supply or
acquisition of goods or services;
"WTO Agreement" means the Agreement establishing the World Trade Organisation done at
Marrakesh on 15 Apri11994.
CHAPTER ONE: PRINCIPLES
Article 2
Establishment Of The Community
The Community is hereby established and recognised in the Protocol hereto as successor to
the Caribbean Community and Common Market.
Article 3
Membership
1. Members of the Community consist of:
(a) Antigua and Barbuda
(b) The Bahamas
(c) Barbados
(d) BelizeWT/REG155/1
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(e) Dominica
(f) Grenada
(g) Guyana
(h) Jamaica
(i) Montserrat
(j) St. Kitts and Nevis
(k) Saint Lucia
(l) St. Vincent and the Grenadines
(m) Suriname
(n) Trinidad and Tobago.
2. Membership of the Community shall be open to any other State or Territory of the Caribbean
Region that is, in the opinion of the Conference, able  and willing to exercise the rights and assume the
obligations of membership.
Article 4
Less Developed Countries And More Developed Countries
For the purpose of this Treaty the States specified in sub-paragraphs 1 (b) , (c), (g), (h), (m)
and (n) of Article 3 shall be more developed countries and the remainder listed in the said paragraph
shall be less developed countries.
Article 5
Modification Of The Status Of Member States
Notwithstanding the provisions of Article 4 and paragraph 1 of Article 28, the Conference
may, by majority decision, modify the status of a Member State.
Article 6
Objectives Of The Community
The Community shall have the following objectives:
(a) improved standards of living and work;
(b) full employment of labour and other factors of production;
(c) accelerated, co-ordinated and sustained economic development and convergence;
(d) expansion of trade and economic relations with third States;WT/REG155/1
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(e) enhanced levels of international competitiveness;
(f) organisation for increased production and productivity;
(g) the achievement of a greater measure of economic leverage and effectiveness of
Member States in dealing with third States, groups of States and entities of any
description;
(h) enhanced co-ordination of Member States' foreign and [foreign] economic policies;
and
(i) enhanced functional co-operation, including:
(i) more efficient operation of common services and activities for the benefit of
its peoples;
(ii) accelerated promotion of greater understanding among its peoples and the
advancement of their social, cultural and technological development;
(iii) intensified activities in areas such as health, education, transportation,
telecommunications.
Article 7
Non-Discrimination
1. Within the scope of application of this Treaty and without prejudice to any special provisions
contained therein, any discrimination on grounds of nationality only shall be prohibited.
2. The Community Council shall, after consultation with the competent Organs, establish rules
to prohibit any such discrimination.
Article 8
Most Favoured Nation Treatment
Subject to the provisions of this Treaty, each Member State shall, with respect to any rights
covered by this Treaty, accord to another Member State treatment no less favourable than that
accorded to:
(a) a third Member State; or
(b) third States.
Article 9
General Undertaking On Implementation
Member States shall take all appropriate measures, whether general or particular, to ensure
the carrying out of obligations arising out of this Treaty or resulting from decisions taken by the
Organs and Bodies of the Community. They shall facilitate the achievement of the objectives of the
Community. They shall abstain from any measures which could jeopardise the attainment of the
objectives of this Treaty.WT/REG155/1
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CHAPTER TWO: INSTITUTIONAL ARRANGEMENTS
Article 10
Organs Of The Community
1. The principal Organs of the Community are:
(a) the Conference of Heads of Government; and
(b) the Community Council of Ministers which shall be the second highest organ.
2. In the performance of their functions, the principa l Organs shall be assisted by the following
Organs:
(a) the Council for Finance and Planning;
(b) the Council for Trade and Economic Development;
(c) the Council for Foreign and Community Relations, and
(d) the Council for Human and Social Development.
Article 11
Composition Of The Conference
1. The Conference of Heads of Government shall consist of the Heads of Government of the
Member States.
2. Any Head of Government may designate a Minister  or other person to represent him or her at
any Meeting of the Conference.
Article 12
Functions And Powers Of The Conference
1. The Conference shall be the supreme Organ of the Community.
2. The Conference shall determine and provide policy direction for the Community.
3. Save as otherwise provided in this Treaty, the Conference shall be the final authority for the
conclusion of treaties on behalf of the Community and for entering into relationships between the
Community and international organizations and States.
4. The Conference may take decisions for the purpose of establishing the financial arrangements
necessary to defray the expenses of the Community and shall be the final authority on questionsarising in relation to the financial affairs of the Community.
5. Subject to the relevant provisions of this Treaty, the Conference shall exercise such powers as
may be conferred on it by or under any Instrument elaborated by or under the auspices of the
Community.WT/REG155/1
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6. The Conference may establish such Organs or Bodies as it considers necessary for the
achievement of the objectives of the Community.
7. The Conference may issue policy directives of a general or special character to other Organs
and Bodies of the Community concerning the policies to be pursued for the achievement of the
objectives of the Community and effect shall be given to such directives.
8. Notwithstanding any other provision of this Tr eaty, the Conference may consider and resolve
disputes between Member States.
9. The Conference may consult with entities within the Caribbean Region or with other
organizations and for this purpose may establish such machinery as it considers necessary.
10. Subject to the provisions of this Chapter, the Conference shall regulate its own procedure and
may decide to admit at its deliberations as observers representatives of non-Member States of the
Community and other entities.
11. The Bureau, consisting of the current Chairman and the immediately outgoing and incoming
Chairmen of the Conference, shall perform the following functions:
(a) initiating proposals for development and approval by the Ministerial Councils as it
considers necessary;
(b) updating the consensus of the Member States on issues falling to be determined by
the Conference;
(c) facilitating implementation of Community decisions, both at the regional and local
levels, in an expeditious and informed manner;
(d) providing guidance to the Secretariat on policy issues.
Article 13
The Community Council Of Ministers
1. The Community Council shall consist of Minist ers responsible for Community Affairs and
any other Minister designated by the Member States in their absolute discretion.
2. The Community Council shall, in accordance with  the policy directions established by the
Conference, have primary responsibility for the development of Community strategic planning and
co-ordination in the areas of economic integration, functional co-operation and external relations.
3. In pursuance of paragraph 2, the Community Council shall:
(a) approve the programmes of the Community on the basis, inter alia , of proposals
emanating from other Community Organs;
(b) subject to paragraph 5 of Article 20, amend proposals developed by the Ministerial
Councils or request them to develop proposals for the achievement of Community
objectives,
and have responsibility for promoting and monitoring the implementation of Community decisions in
the Member States.WT/REG155/1
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4. Without prejudice to the generality of the fo regoing provisions, the Community Council shall;
(a) subject to paragraph 4 of Article 12, examine and approve the Community budget;
(b) mobilise and allocate resources for the implementation of Community plans and
programmes;
(c) establish, subject to the provisions of Article 26, a system of regional and national
consultations in order to enhance the decision-making and implementation processes
of the Community;
(d) promote, enhance, monitor and evaluate regional and national implementation
processes and, to this end, establish a regional technical assistance service;
(e) function as a preparatory body for meetings of the Conference;
(f) ensure the efficient operation and orderly development of the CSME, particularly by
seeking to resolve problems arising out of its functioning, taking into account thework and decisions of COTED;
(g) receive and consider allegations of breaches of obligations arising under this Treaty,
including disputes between Organs of the Community;
(h) on the instructions of the Conference, issue directives to Organs and to the Secretariat
aimed at ensuring the timely implementation of Community decisions;
(i) undertake any additional functions remitted to it by the Conference, arising under this
Treaty.
Article 14
The Council For Finance And Planning
1. The Council for Finance and Planning shall consist of Ministers designated by the Member
States. Each Member State shall be entitled to designate alternates to represent it on COFAP.
2. Subject to the relevant provisions of Article 12, COFAP shall have primary responsibility for
economic policy co-ordination and financial and monetary integration of Member States and, withoutprejudice to the generality of the foregoing, shall:
(a) establish and promote measures for the co-ordination and convergence of national
macro-economic policies of the Member States and for the execution of a harmonised
policy on foreign investment;
(b) promote and facilitate the adoption of measures for fiscal and monetary co-operation
among the Member States, including the establishment of mechanisms for payment
arrangements;
(c) recommend measures to achieve and maintain fiscal discipline by the Governments of
the Member States;WT/REG155/1
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(d) pending the establishment of a monetary union in the Community, recommend
arrangements for the free convertibility of the currencies of the Member States on a
reciprocal basis;
(e) promote the establishment and integration of capital markets in the Community, and
(f) undertake any additional functions remitted to it by the Conference arising under this
Treaty.
3. Under the direction of COFAP, the Committee of Central Bank Governors shall assist in the
performance of the functions mentioned in paragraph 2 of this Article.
Article 15
The Council For Trade And Economic Development
1. The Council for Trade and Economic Development shall consist of Ministers designated by
the Member States. Each Member State shall be entitled to designate alternates to represent it on
COTED.
2. Subject to the provisions of Article 12, COTED shall be responsible for the promotion of
trade and economic development of the Community. In particular, COTED shall:
(a) promote the development and oversee the operation of the CSME;
(b) evaluate, promote and establish measures to enhance production, quality control and
marketing of industrial and agricultural commodities so as to ensure their
international competitiveness;
(c) establish and promote measures to accelerate structural diversification of industrial
and agricultural production on a sustainable and regionally-integrated basis;
(d) determine and promote measures for the accelerated development and marketing of
services;
(e) promote and develop policies and programmes to facilitate the transportation of
people and goods;
(f) promote measures for the development of energy and natural resources on a
sustainable basis;
(g) establish and promote measures for the accelerated development of science and
technology;
(h) promote and develop policies for the protection of and preservation of the
environment and for sustainable development;
(i) promote and develop, in collaboration with the Council for Foreign and Community
Relations, co-ordinated policies for the enhancement of external economic and trade
relations of the Community, and
(j) undertake any additional functions remitted to it by the Conference, arising under this
Treaty.WT/REG155/1
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Article 16
The Council For Foreign And Community Relations
1. The Council for Foreign and Community Relations shall consist of Ministers Responsible for
the Foreign Affairs of Member States. Each Member State shall be entitled to designate an alternate to
represent it on COFCOR.
2. Subject to the provisions of Article 12, CO FCOR shall be responsible for determining
relations between the Community and international organisations and Third States.
3. Without prejudice to the generali ty of paragraph 2, COFCOR shall:
(a) promote the development of friendly and mutually beneficial relations among the
Member States;
(b) establish measures to co-ordinate the foreign policies of the Member States of the
Community, including proposals for joint representation, and seek to ensure, as far as
practicable, the adoption of Community positions on major hemispheric and
international issues;
(c) co-ordinate the positions of the Member States in inter-governmental organisations in
whose activities such States participate;
(d) collaborate with COTED in promoting and developing co-ordinated policies for the
enhancement of external economic and trade relations of the Community;
(e) co-ordinate, in close consultation with the Member States, Community policy on
International issues with the policies of States in the wider Caribbean Region in orderto arrive at common positions in relation to Third States, groups of States and
relevant inter-governmental organisations, and
(f) undertake any additional functions remitted to it by the Conference, arising under this
Treaty.
4. Only Member States possessing the necessary competence with respect to the matters under
consideration from time to time may take part in the deliberations of COFCOR.
Article 17
The Council For Human And Social Development
1. The Council for Human and Social Development shall consist of Ministers designated by the
Member States. Each Member State shall be entitled to designate alternates to represent it onCOHSOD.
2. Subject to the provisions of Article 12, COHSOD shall be responsible for the promotion of
human and social development in the Community. In particular, COHSOD shall:
(a) promote the improvement of health, including the development and organisation of
efficient and affordable health services in the Community;WT/REG155/1
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(b) promote the development of education through the efficient organisation of
educational and training facilities In the Community, including elementary and
advanced vocational training and technical facilities;
(c) promote and develop co-ordinated policies and programmes to improve the living and
working conditions of workers and take appropriate measures to facilitate theorganisation and development of harmonious labour and industrial relations in the
Community;
(d) establish policies and programmes to promote the development of youth and women
in the Community with a view to encour aging and enhancing their participation in
social, cultural, political and economic activities;
(e) promote and establish programmes for the development of culture and sports in the
Community;
(f) promote the development of special focus programmes supportive of the
establishment and maintenance of a healthy human environment in the Community,
and
(g) undertake any additional functions remitted to it by the Conference, arising under this
Treaty.
3. Without prejudice to the requirements of any other provision of this Treaty, COHSOD shall
promote co-operation among the Member States in the areas set out in the schedule hereto in
furtherance of the objectives set out in Article 5.
Article 18
Bodies Of The Community
1. There are hereby established as Bodies of the Community:
(a) the Legal Affairs Committee; and
(b) the Budget Committee.
2. The Council of Central Bank Governors shall be redesignated the "Committee of Central
Bank Governors" and recognised as a Body of the Community.
3. The Organs of the Community may establish, as they deem necessary, other Bodies of the
Community.
Article 19
Composition And Functions Of Bodies Of The Community
1. The Legal Affairs Committee shall consist of the Ministers responsible for Legal Affairs or
Attorneys-General of the Member States, or both, and shall be responsible for providing the Organs
and Bodies, either on request or on its own initia tive, with advice on treaties, international legal
issues, the harmonisation of laws of the Community and other legal matters.WT/REG155/1
Page 15
2. The Budget Committee shall consist of senior officials of the Member States who shall
perform their functions in a professional capacity. It shall examine the draft budget and work
programme of the Community prepared by the Secretariat and submit recommendations to the
Community Council.
3. The Committee of Central Bank Governors shall consist of the Governors or Heads of the
Central Banks of the Member States or thei r nominees. The Committee shall make recommendations
to COFAP on matters relating to monetary co-ope ration, payments arrangements, free movement of
capital, integration of capital markets, monetary union and any other related matters referred to it by
the Organs of the Community.
4. The procedures of Bodies shall be regulated, mutatis mutandis  by the relevant provisions of
Articles 27 and 29.
Article 20
Co-Operation By Community Organs
1. Community Organs shall co-operate with each other for the achievement of Community
objectives.
2. The Bureau and the Community Council may initiate proposals for development by the
Ministerial Councils within their respective areas of competence.
3. Where a Community Organ proposes to develop a proposal which is likely to impact
importantly on activities within the sphere of competence of another Community Organ, the first-
mentioned Community Organ shall transmit such proposal to other interested Community Organs fortheir consideration and reaction before reaching a final decision on the proposal.
4. Proposals approved by the Ministerial Councils shall be transmitted to the Community
Council for prioritisation and resource allocation for their implementation.
5. Proposals approved by the Ministerial Council s and transmitted to the Community Council
for prioritisation and resource allocation for implementation may be returned by the CommunityCouncil to the originating Organ for modificati on. The Community Council may modify the proposal
to the extent and in the manner agreed with the originating Organ.
6. The Secretariat shall monitor the developmen t and implementation of proposals for the
achievement of Community objectives and keep  the Community Council informed accordingly.
Article 21
Institutions Of The Community
The following entities established by or under the auspices of the Community shall be
recognised as Institutions of the Community:
• Caribbean Disaster Emergency Response Agency (CDERA);
• Caribbean Meteorological Institute (CMI);
• Caribbean Meteorological Organisation (CMO);
• Caribbean Environmental Health Institute (CEHI);
• Caribbean Agricultural Research and Development Institute (CAROl);WT/REG155/1
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• Caribbean Regional Centre for the Education and Training of Animal Health and
Veterinary Public Health Assistants (REPAHA);
• Assembly of Caribbean Community Parliamentarians (ACCP);
• Caribbean Centre For Developmental Administration (CARICAD);
• Caribbean Food and Nutrition Institute (CFNI);
and such other entities as may be designated by the Conference.
Article 22
Associate Institutions Of The Community
The following entities with which the Community enjoys important functional relationships
which contribute to the achievement of the objectives of the Community shall be recognised asAssociate Institutions of the Community:
• Caribbean Development Bank (COB);
• University of Guyana (UG);
• University of the West Indies (UWI);
• Caribbean Law Institute / Caribbean Law Institute Centre (CLI/CLIC);
• the Secretariat of the Organisation of Eastern Caribbean States;
and such other entities as may be designated by the Conference.
Article 23
The Secretariat
1. The Secretariat shall be the principal administrative organ of the Community. The
headquarters of the Community shall be located in Georgetown, Guyana.
2. The Secretariat shall comprise a Secretary-General and such other staff as the Community
may require. In the recruitment of such staff, consideration shall be given to securing the highest
standards of efficiency, competence and integrity, bearing in mind the principle of equitable
geographical distribution.
3. The Secretary-General shall, in addition to the powers conferred by or under the Treaty, be
the Chief Executive Officer of the Community and shall act in that capacity at all meetings ofCommunity Organs and Bodies. He shall make an annual report to the Conference on the work of the
Community.
4. In the performance of their duties the Secretary-General and staff shall neither seek nor
receive instructions from any Government of the Me mber States or from any other authority external
to the Community. They shall refrain from any action which might reflect adversely on their positionas officials of the Community and shall be responsible only to the Community.
5. Member States undertake to respect the exclusively international character of the
responsibilities of the Secretary-General and staff and shall not seek to influence them in the
discharge of their responsibilities.
6. The Conference shall approve the Staff Regulations governing the operations of the
Secretariat.WT/REG155/1
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7. The Community Council shall approve the financial regulations governing the operations of
the Secretariat.
8. The Secretary-General shall establish Staff Rules for the operation of the Secretariat.
Article 24
The Secretary-General
1. The Secretary-General shall be appointed by the Conference, on the recommendation of the
Community Council, for a term not exceeding five years and may be reappointed by the Conference.
2. The Secretary-General shall be the Chief Executive Officer of the Community and shall,
subject to the determinations of competent Orga ns of the Community and in accordance with the
financial and other regulations, perform the following functions:
(a) represent the Community;
(b) develop, as mandated, decisions of competent Organs of the Community into
implementable proposals;
(c) identify and mobilise, as required, external resources to implement decisions at the
regional level and undertake studies and develop decisions on relevant issues intoimplementable proposals;
(d) implement, as mandated, decisions at the regional level for the achievement of
Community objectives;
(e) implement, with the consent of the Member State concerned, Community decisions
which do not require legislative or administrative action by national authorities;
(f) monitor and report on, as mandated, implementation of Community decisions;
(g) initiate or develop proposals for consideration and decision by competent Organs in
order to achieve Community objectives, and
(h) such other functions assigned by the Conference or other competent Organs.
Article 25
Functions Of The Secretariat
In addition to any functions which may be assigned to it by Organs of the Community, the
Secretariat shall:
(a) service meetings of the Organs and Bodies of the Community and take appropriate
follow up action on determinations issuing from such meetings;
(b) initiate, organise and conduct studies on issues for the achievement of the objectives
of the Community;
(c) provide, on request, services to the Member States of the Community on matters
relating to the achievement of its objectives;WT/REG155/1
Page 18
(d) collect, store and disseminate to the Member States of the Community information
relevant for the achievement of its objectives;
(e) assist Community Organs in the development and implementation of proposals and
programmes for the achievement of objectives of the Community;
(f) co-ordinate in relation to the Commun ity the activities of donor agencies,
international, regional and national institutions for the achievement of objectives of
the Community;
(g) prepare the draft budget of the Community for examination by the Budget
Committee;
(h) provide, on request, technical assistan ce to national authorities to facilitate
implementation of Community decisions;
(i) conduct, as mandated, fact-finding assignments in the Member States, and
(j) initiate or develop proposals for consideration and decision by competent Organs in
order to achieve Community objectives.
Article 26
The Consultative Process
1. In order to enhance the decision-making pr ocess in the Community, the Community Council,
assisted by the Secretary-General, shall, in collaboration with competent authorities of the Member
States, establish and maintain an efficient system of consultations at the national and regional levels.
2. The system of consultations shall be structured to ensure that determinations of Community
Organs and the Legal Affairs Committee are adequately informed by relevant information inputs and
are reinforced by consultations undertaken at successively lower levels of the decision-making
process.
Article 27
Common Voting Procedures in Community Organs and Bodies
1. Subject to paragraph 2 of this Article, each Member State represented on Community Organs
and Bodies shall have one vote. A simple majority of Member States shall constitute a quorum.
2. Member States, whose contributions to the regular budget of the Community are in arrears for
more than two years, shall not have the right to vo te except on matters relating to the CSME, but may
otherwise participate in the deliberations of Community Organs and Bodies. The Conference may,nevertheless, permit such Member States to vote if it is satisfied that the failure to contribute is due to
conditions beyond their control.
3. Decisions on procedural issues in Community Organs shall be reached by a simple majority
of Member States.
4. Subject to the agreement of the Conference, a Member State may opt out of obligations
arising from the decisions of competent Organs provided that the fundamental objectives of the
Community, as laid down in the Treaty, are not prejudiced thereby.WT/REG155/1
Page 19
5. Prior to taking decisions on any issue falling to be determined by Community Organs, the
Secretariat shall bring to the attention of the meetin g the financial implications of such decisions and
any other matters which may be relevant.
6. Recommendations of Community Organs shall be  made by a two-thirds majority of Member
States and shall not be legally binding. Member States omitting to comply with recommendationsshall inform the Secretariat in writing within si x months stating the reasons for their non-compliance.
7. Subject to the relevant provisions of this Treaty, Community Organs and Bodies shall
establish their rules of procedure.
Article 28
Voting In The Conference
1. Save as otherwise provided in this Treaty and subject to paragraph 2 of this Article and the
relevant provisions of Article 27, the Conference shall take decisions by an affirmative vote of all its
members and such decisions shall be binding.
2. For the purpose of this Article abstentions shall not be construed as impairing the validity of
decisions of the Conference provided that the Member States constituting three-quarters of themembership of the Community, vote in favour of such decisions.
3. Omission by a Member State to participate in the vote shall be deemed an abstention within
the meaning of paragraph 2 of this Article.
4. Parties to a dispute or against which sanctions are being considered shall not have the right to
vote on the issue falling to be determined.
Article 29
Voting In The Community Council And Ministerial Councils
1. Save as otherwise provided in this Treaty and subject to the provisions of this Article and
Article 27, the Ministerial Councils shall take decisions by a qualified majority vote and such
decisions shall be binding.
2. For the purposes of paragraph 1 of this Article a qualified majority vote means an affirmative
vote of the Member States comprising no less than three-quarters of the membership of the
Community.
3. Where issues have been determined to be of critical importance to the national well-being of a
Member State, in accordance with paragraph 4 of this Article, such decisions shall be reached by anaffirmative vote of all Member States.
4. Decisions that an issue is of critical importance to the national well-being of a Member State
shall be reached by a two-thirds majority of the Member States.
5. For the purposes of paragraph 3 of this Article abstentions shall not be construed as impairing
the validity of decisions required to be reached by unanimity provided that Member Statesconstituting not less than three-quarters of the membership of the Community vote in favour of such
decisions.WT/REG155/1
Page 20
CHAPTER THREE: ESTABLISHMENT, SERVICES, CAPITAL AND
MOVEMENT OF COMMUNITY NATIONALS
Article 30
Scope Of Application
1. Save as otherwise provided in this Article and Article 31, the provisions of this Chapter shall
apply to the right of establishment, the right to pr ovide services and the right to move capital in the
Community.
2. Activities in a Member State involving the exercise  of governmental authority shall, in so far
as that Member State is concerned, be excluded from the operation of this Chapter.
3. For the purposes of this Chapter, "activities involving the exercise of governmental authority"
means activities conducted neither on a commercial basis nor in competition with one or more
economic enterprises, and includes:
(a) activities conducted by a central bank or monetary authority or any other public
entity, in pursuit of monetary or exchange rate policies;
(b) activities forming part of a statutory system of social security or public retirement
plans;
(c) activities forming part of a system of national security or for the establishment or
maintenance of public order; and
(d) other activities conducted by a public entity for the account of or with the guarantee
or using financial resources of the government.
Article 31
Treatment Of Monopolies
1. The Member States may determine that the public interest requires the exclusion or restriction
of the right of establishment in any industry or in a particular sector of an industry.
2. Where such a determination has been made:
(a) if the determination results in the continuation or establishment of a government
monopoly, the Member State shall adopt appropriate measures to ensure that the
monopoly does not discriminate between nationals of Member States, save as
otherwise provided In this Treaty, and is subject to the agreed rules of competitionestablished for Community economic enterprises;
(b) if the determination results in the continuation or establishment of a private sector
monopoly, the Member State shall, subject to the provisions of this Treaty, adopt
appropriate measures to ensure that national treatment is accorded to nationals of
other Member States in terms of participating in its operations.WT/REG155/1
Page 21
Article 32
Prohibition Of New Restrictions On The Right Of Establishment
1. The Member States shall not introduce in their territories any new restrictions relating to the
right of establishment of nationals of other Member States save as otherwise provided in this Treaty.
2. The Member States shall notify COTED of existing restrictions on the right of establishment
in respect of nationals of other Member States.
3. (1) The right of establishment within the meaning of this Chapter shall include the right
to:
(a) engage in any non-wage-earning activities of a commercial, industrial,
agricultural, professional or artisanal nature;
(b) create and manage economic enterprises referred to in paragraph 5(b) of this
Article.
(2) For the purposes of this Chapter "non-wage earning activities" means activities
undertaken by self-employed persons.
4. The Community Council may, with the approval of the Conference and upon the
recommendation of COTED or COFAP, as the case ma y be, enlarge the body of rights provided in
paragraph 3 of this Article. The competent Organ shall establish basic criteria for Member States inorder to safeguard against manipulation or abuse of such rights so as to gain an unfair advantage
against other Member States, for example, in the areas of nationality criteria and in the operation of
companies.
5. For the purposes of this Chapter:
(a) a person shall be regarded as a national of a Member State if such person:
(i) is a citizen of that State;
(ii) has a connection with that State of a kind which entitles him to be regarded as
belonging to or, if it be so expressed, as being a native or resident of the State
for the purposes of the laws thereof relating to immigration; or
(iii) is a company or other legal entity constituted in the Member State in
conformity with the laws thereof and which that State regards as belonging to
it, provided that such company or other legal entity has been formed forgainful purposes and has its registered office and central administration, and
carries on substantial activity, within the Community and which is
substantially owned and effectively controlled by persons mentioned in sub-
paragraphs (i) and (ii) of this paragraph;
(b) "economic enterprises" includes any type of organisation for the production of or
trade in goods or the provision of services (other than a non-profit organisation)
owned or controlled by any person or entity mentioned in sub-paragraph (a) of this
paragraph;
(c) a company or other legal entity is:WT/REG155/1
Page 22
(i) substantially owned if more than 50 per cent of the equity Interest therein is
beneficially owned by nationals mentioned in sub-paragraph (a) (i) or (ii) of
this paragraph;
(ii) effectively controlled if nationals mentioned in sub-paragraph (a) of this
paragraph have the power to name a majority of its directors or otherwiselegally to direct its actions.
Article 33
Removal Of Restrictions On The Right Of Establishment
1. Subject to the provisions of Article 221 and Article 222, the Member States shall remove
restrictions on the right of establishment of nationals of a Member State in the territory of anotherMember State.
2. The removal of restrictions on the right of establishment mentioned in paragraph 1 of this
Article shall also apply to restrictions on the setting up of agencies, branches or subsidiaries by
nationals of a Member State in the territory of another Member State.
3. Subject to the approval of the Conference, COTED, in consultation with COHSOD and
COFAP, shall, within one year from the entry into force of this Treaty, establish a programme
providing for the removal of restrictions on the right of establishment of nationals of a Member State
in the territory of another Member State. The programme shall, inter alia :
(a) identify the activities in respect of which the right of establishment shall not apply;
(b) establish the conditions under which the right of establishment is to be achieved; and
(c) set out the conditions, stages and time-frames for the removal of restrictions on the
right of establishment.
4. The Community Council may authorise a Member State whose nationals have been aggrieved
by the violation of obligations set out in this Article, Article 32, Article 36 and Article 37 to take such
measures as may be provided for in this Treaty.
Article 34
Management Of Removal Of Restricti ons On The Right Of Establishment
In performing its tasks set out in Article 33, COTED shall, inter alia :
(a) accord priority to the removal of restrictions on activities in respect of which the right
of establishment encourages the development of:
(i) the production of trade in goods;
(ii) the provision of services,
which generate foreign exchange earnings;
(b) require the Member States to remove administrative practices and procedures, the
maintenance of which impede the exercise of the right of establishment;WT/REG155/1
Page 23
(c) require the Member States to remove all restrictions on the movement of managerial,
technical and supervisory staff of economic enterprises and on establishing agencies,
branches and subsidiaries of companies and other entities established in the
Community;
(d) establish measures to ensure the removal of restrictions on the right of establishment
in respect of activities accorded priority treatment pursuant to paragraph (a) of this
Article as they relate to:
(i) the establishment, in the territories of the Member States, of agencies,
branches or subsidiaries belonging to an economic enterprise; and
(ii) the conditions governing the entry of managerial, technical or supervisory
personnel employed in such agencies, branches and subsidiaries, including
the spouses and immediate dependent family members of such personnel;
(e) take appropriate measures to ensure close collaboration among competent national
authorities in order to improve their knowledge of the particular situation regarding
the relevant activities within the Community;
(f) require the Member States to ensure that nationals of one Member State may have
access to land, buildings and other property situated in the territory of anotherMember State, other than for speculative purposes or for a purpose potentially
destabilising to the economy, on a non-discriminatory basis, bearing in mind the
importance of agriculture for many national economies;
(g) ensure concordance in the Member States regarding the protection afforded the
interests of partners, members and other persons with financial interests in companiesand other entities.
Article 35
Acceptance Of Diplomas, Certificates, And Other Evidence Of Qualifications
1. COHSOD, in consultation with the competent Organ, shall establish common standards and
measures for accreditation or when necessary for the mutual recognition of diplomas, certificates and
other evidence of qualifications of the nationals of the Member States in order to facilitate access to,
and engagement in, employment and non-wage-earning activities in the Community.
2. The Member States shall establish or employ, as the case may be, appropriate mechanisms to
establish common standards to determine equivalency or accord accreditation to diplomas, certificates
and other evidence of qualifications secured by nationals of other Member States.
3. COHSOD shall also establish measures for the co-ordination of legislative and administrative
requirements of the Member States for the participation of Community nationals in employment and
for the conduct of non-wage-earning activities in the Community.
Article 36
Prohibition Of New Restrictions On The Provision Of Services
1. The Member States shall not introduce any new restrictions on the provision of services in the
Community by nationals of other Member States except as otherwise provided in this Treaty.WT/REG155/1
Page 24
2. Without prejudice to the provisions relating to the right of establishment, persons providing
services may, in order to provide such services, temporarily engage in approved activities in the
Member State where the services are to be provided under the same conditions enjoyed by nationals
of that Member State.
3. The Member States shall notify COTED of existing restrictions on the provision of services in
respect of nationals of other Member States.
4. For the purposes of this Chapter, "services" means services provided against remuneration
other than wages in any approved sector and "the provision of services" means the supply of services:
(a) from the territory of one Member State into the territory of another Member State;
(b) in the territory of one Member State to the service consumer of another Member
State;
(c) by a service supplier of one Member State through commercial presence in the
territory of another Member State; and
(d) by a service supplier of one Member State through the presence of natural persons of
a Member State in the territory of another Member State.
Article 37
Removal Of Restrictions On Provision Of Services
1. Subject to the provisions of this Treaty, Member States shall abolish discriminatory
restrictions on the provision of services within the Community in respect of Community nationals.
2. Subject to the approval of the Conference, COTED, in consultation with other competent
Organs, shall, within one year from the entry into force of this Treaty, establish a programme for the
removal of restrictions on the provision of such services in the Community by Community nationals.
3. In establishing the programme mentioned in paragraph 2 of this Article, COTED shall:
(a) accord priority to services which directly affect production costs or facilitate the trade
in goods and services which generate foreign exchange earnings;
(b) require the Member States to remove administrative practices and procedures, the
maintenance of which impede the exercise of the right to provide services;
(c) establish measures to ensure the abolition of restrictions on the right to provide
services in respect of activities accorded  priority treatment in accordance with sub-
paragraph (a) of this paragraph, both in terms of conditions for the provision of
services in the territories of Member States as well as the conditions governing the
entry of personnel, including their spouses and immediate dependent familymembers, for the provision of services;
(d) take appropriate measures to ensure close collaboration among competent national
authorities in order to improve their knowledge of the conditions regarding relevant
activities within the Community, andWT/REG155/1
Page 25
(e) require the Member States to ensure that nationals of one Member State have on a
non-discriminatory basis, access to land, buildings and other property situated in the
territory of another Member State for purposes directly related to the provision of
services, bearing in mind the importance of agriculture for many national economies.
Article 38
Removal Of Restrictions On Banking, Insurance And Other Financial Services
1. Subject to the provisions of this Chapter, the Member States shall remove discriminatory
restrictions on banking, insurance and other financial services.
2. Subject to the approval of the Conference, COFAP, in consultation with other competent
Organs of the Community, may exclude certain financial services from the operation of the provisionsof this Article.
Article 39
Prohibition Of New Restrictions On Moveme nt Of Capital And Current Transactions
The Member States shall not introduce any new restrictions on the movement of capital and
payments connected with such movement and on current payments and transfers, nor render more
restrictive existing regulations except as provided in Article 43 and Article 46.
Article 40
Removal Of Restrictions On Movement  Of Capital And Current Transactions
1. The Member States shall, in order to ensure the proper functioning of the CSME, remove
among themselves:
(a) restrictions on the movement of capital payments;
(b) restrictions on all current payments including payments for goods and services and
other current transfers.
2. COFAP, subject to the approval of the Conference, shall establish in collaboration with the
Committee of Central Bank Governors a programme for the removal of the restrictions mentioned in
paragraph 1 of this Article.
3. For the purpose of this Article, capital and related payments and transfers include:
(a) equity and portfolio investments;
(b) short-term bank and credit transactions;
(c) payment of interest on loans and amortization;
(d) dividends and other income on investments after taxes;
(e) repatriation of proceeds from the sale of assets; and
(f) other transfers and payments relating to investment flows.WT/REG155/1
Page 26
Article 41
Authorisation To Facilitate Movement Of Capital
1. The Member States shall, where necessary and subject to paragraph 2 of this Article, grant the
authorisations required for the movement of capital mentioned in Article 40 on a non-discriminatory
basis.
2. A loan intended for State purposes may require prior notification to the State in which it is
being issued or placed.
Article 42
Co-Ordination Of Foreign Exchange Policies And Exchange Of Information
1. The Member States shall take such measures as are necessary to coordinate their foreign
exchange policies in respect of the movement of capital between them and third States.
2. The Member States shall keep the competent au thorities in other Member States informed of
significant unusual movements of capital within their knowledge to and from third States.
Article 43
Restrictions To Safeguard Balance-Of-Payments
1. In the event of serious balance-of-payments and external financial difficulties or threat thereof
a Member State may, consistently with its international obligations and subject to paragraph 5 of this
Article, adopt or maintain restrictions to address such difficulties.
2. The restrictions which may be adopted or maintained pursuant to paragraph 1 of this Article
may include quantitative restrictions on imports, restrictions on the right of establishment, restrictions
on the right to provide services, restrictions on the right to move capital or on payments and transfersfor transactions connected therewith. However, such restrictions:
(a) shall, subject to the provisions of this Treaty, not discriminate among Member States
or against Member States in favour of third States;
(b) shall at all times seek to minimise damage to the commercial, economic or financial
interests of any other Member State;
(c) shall not exceed those necessary to deal with the circumstances described in
paragraph 1 of this Article; and
(d) shall be temporary but in any event not longer than a period of eighteen (18) months
and be phased out progressively as the situation described in paragraph 1 improves.
3. In determining the incidence of such restrictions, the Member State concerned may accord
priority to activities which are essential to its economic stability. Such restrictions shall not be
adopted or maintained for the purpose of protecting a particular sector in contravention of the relevantprovisions of this Treaty, due regard being paid in either case to any special factors which may be
affecting the reserves of such Member State or its need for reserves.WT/REG155/1
Page 27
4. Restrictions adopted or maintained pursuant to paragraph 1 of this Article, or any changes
therein, shall be promptly notified within three (3) working days to COFAP and to COTED, and, in
any event, the Member State concerned shall imme diately consult with the competent Organ if and
when requested.
5. COFAP shall establish procedures for periodic consultations including, where possible and
desirable, prior consultations with the objective of making recommendations to the Member State
concerned for the removal of the restrictions.
6. The consultations referred to in paragraph 5 of this Article shall:
(a) be designed to assist the Member State concerned to overcome its balance-of-
payments and external financial difficulties;
(b) assess the balance-of-payments situation of the Member State concerned and the
restrictions adopted or maintained under this Article, taking into account, inter alia :
(i) the nature and extent of the balance-of-payments and the external financial
difficulties;
(ii) the external economic and trading environment of the Member State applying
the restrictions; and
(iii) alternative corrective measures which may be available.
7. The consultations shall address the compliance of any restrictions with paragraph 2 of this
Article and, in particular, the progressive phase-out of restrictions in accordance with paragraph 2(d).
8. In such consultations, all findings of statistical and other facts presented by the Committee of
Central Bank Governors relating to foreign exchange, monetary reserves and balance-of-payments,
shall be accepted and conclusions shall be based on the assessment by the Committee of the balance-of-payments and the external financial situation of the Member State concerned.
Article 44
Measures To Facilitate Establishment, Prov ision Of Services And Movement Of Capital
1. In order to facilitate the exercise of the ri ghts provided for in this Chapter, COTED and
COFAP shall, subject to the approval of the Conference, adopt appropriate measures for:
(a) the establishment of market intelligence and information systems in the Community;
(b) harmonised legal and administrative requirements for the operation of partnerships,
companies, or other entities;
(c) abolition of exchange controls in the Community, and free convertibility of the
currencies of the Member States;
(d) the establishment of an integrated capital market in the Community;
(e) convergence of macro-economic performance and policies through the co-ordination
or harmonisation of monetary and fiscal policies, including, in particular, policiesWT/REG155/1
Page 28
relating to interest rates, exchange rates, tax structures and national budgetary
deficits;
(f) the establishment of economical and efficient land, sea and air transport services
throughout the Community, and
(g) the establishment of efficient communication services.
2. COFAP and COTED shall establish a comprehensive set of rules in respect of the areas listed
in paragraph 1 of this Article for approval by the Conference.
Article 45
Movement Of Community Nationals
Member States commit themselves to the goal of free movement of their nationals within the
Community.
Article 46
Movement Of Skilled Community Nationals
1. Without prejudice to the rights recognised and agreed to be accorded by Member States in
Articles 32, 33, 37, 38 and 40 among themselves and to Community nationals, Member States have
agreed, and undertake as a first step towards achieving the goal set out in Article 45, to accord to the
following categories of Community nationals the right to seek employment in their jurisdictions:
(a) University graduates;
(b) media workers;
(c) sportspersons;
(d) artistes; and
(e) musicians,
recognised as such by the competent authorities of the receiving Member States.
2. Member States shall establish appropriate legislative, administrative and procedural
arrangements to:
(a) facilitate the movement of skills within the contemplation of this Article;
(b) provide for movement of Community nationals into and within their jurisdictions
without harassment or the imposition of impediments,
including:
(i) the elimination of the requirement for passports for Community nationals
travelling to their jurisdictions;
(ii) the elimination of the requirement for work permits for Community nationals
seeking approved employment in their jurisdictions;WT/REG155/1
Page 29
(iii) establishment of mechanisms for certifying and establishing equivalency of
degrees and for accrediting institutions;
(iv) harmonisation and transferability of social security benefits.
3. Nothing in this Treaty shall be construed as inhibiting Member States from according
Community nationals unrestricted access to, and movement within, their jurisdictions subject to suchconditions as the public interest may require.
4. The Conference shall keep the provisions of this Article under review in order to:
(a) enlarge, as appropriate, the classes of persons entitled to move and work freely in the
Community; and
(b) monitor and secure compliance therewith.
Article 47
Restrictions To Resolve Difficulties Or Ha rdships Arising From The Exercise Of Rights
1. Where the exercise of rights granted under this Chapter creates serious difficulties in any
sector of the economy of a Member State or occasions economic hardships in a region of the
Community, a Member State adversely affected thereby may, subject to the provisions of this Article,
apply such restrictions on the exercise of the rights as it considers appropriate in order to resolve the
difficulties or alleviate the hardships.
2. Where a Member State:
(a) intends to apply restrictions in accordance with paragraph 1 of this Article, it shall,
prior to applying those restrictions, notify  the competent Organ of that intention and
the nature of the restrictions;
(b) is unable to comply with sub-paragraph (a) of this paragraph, it shall, upon applying
the restrictions in accordance with paragraph 1, immediately notify the competent
Organ of the application and nature of the restrictions.
3. The Member State shall, at the time of application of the restrictions mentioned in
paragraph 1, submit to COTED or COFAP, as the case may require, a programme setting out the
measures to be taken by that Member State to resolve the difficulties or to alleviate the hardships.
4. The competent Organ shall give its earliest consideration to the programme, and:
(a) make a determination in respect of the appropriateness of the restrictions and whether
they shall be continued; and
(b) where it decides that the restrictions shall be continued, determine:
(i) the adequacy of the programme; and
(ii) the period for which the restrictions should continue.
The competent Organ, in making a determination under sub-paragraph (b) of this paragraph,
may impose such conditions as it considers necessary.WT/REG155/1
Page 30
5. Restrictions applied by a Member State pursuant to paragraph 1 of this Article shall be
confined to those necessary:
(a) to resolve the difficulties in the affected sectors;
(b) to alleviate economic hardships in a particular region.
6. In applying restrictions mentioned in paragraph 5, Member States shall:
(a) minimise damage to the commercial or economic interests of any other Member
State; or
(b) prevent the unreasonable exercise of rights granted under this Chapter, the exclusion
of which could impair the development of the CSME.
7. The Member States, in applying restrictions pursuant to paragraph 1 of this Article, shall not
discriminate and:
(a) shall progressively relax them as relevant conditions improve;
(b) may maintain them only to the extent that conditions mentioned in paragraph 1 of this
Article continue to justify their application.
8. If COTED or COFAP, as the case may require, is not satisfied that Member States applying
restrictions are acting in accordance with the provisions of paragraph 6 of this Article, it may
recommend to the Member States adversely affected thereby alternative arrangements to the sameend.
Article 48
Waiver Of Obligations To Grant Rights
1. Notwithstanding any provision in this Chapter, a Member State may apply to the Community
Council for a waiver of the requirement to grant any of the rights mentioned in paragraph 1 of
Article 30 in respect of any industry, sector or enterprise.
2. An application for a waiver within the meaning of paragraph 1 of this Article shall:
(a) be made prior to the establishment of the relevant programme for the removal of
restrictions on the rights mentioned in paragraph 1;
(b) identify the rights in respect of which the waiver is required;
(c) set out the circumstances justifying the grant of the waiver; and
(d) indicate the period for which the waiver is required.
3. The Community Council may require the applican t to furnish such additional information as
the Council may specify.
4. Where the Community Council is satisfied that the waiver should be granted, it shall grant a
waiver for a period not exceeding five years, subject to such terms and conditions as the Community
Council may determine.WT/REG155/1
Page 31
5. A Member State which has been granted a waiver within the meaning of paragraph 1 of this
Article:
(a) shall not, while the waiver is in force, be entitled to espouse a claim on behalf of its
nationals against another Member State in respect of the rights for which the waiver
was granted;
(b) shall:
(i) at the termination of the period of the waiver, remove the restrictions and
notify the Community Council; or
(ii) where the Member State removes the restrictions before the end of the period
of the waiver; notify the Community Council accordingly.
Article 49
Special Provisions For Less Developed Countries
Where in this Chapter; the Member States or competent Organs are required to remove
restrictions on the exercise of the rights mentioned in paragraph 1 of Article 30 the special needs and
circumstances of the Less Developed Countries shall be taken into account.
Article 50
Accelerated Implementation
Nothing in this Chapter shall be construed as precluding the Member States from adopting
measures to remove restrictions on the right of establishment, the right to provide services or the right
to move capital within the Community earlier than is required by these provisions.
CHAPTER FOUR: POLICIES FOR SECTORAL DEVELOPMENT
PART ONE: INDUSTRIAL POLICY
Article 51
Objectives Of The Community Industrial Policy
1. The goal of the Community Industrial Policy shall be market-led, internationally competitive
and sustainable production of goods and services for the promotion of the Region's economic and
social development.
2. In fulfilment of the goal set out in paragraph 1 of this Article, the Community shall pursue the
following objectives:
(a) cross-border employment of natural resources, human resources, capital, technology
and management capabilities for the production of goods and services on a
sustainable basis;
(b) linkages among economic sectors and enterprises within and among the Member
States of the CSME;WT/REG155/1
Page 32
(c) promotion of regional economic enterprises capable of achieving scales of production
to facilitate successful competition in domestic and extra-regional markets;
(d) establishment of a viable micro and small economic enterprise sector;
(e) enhanced and diversified production of goods and services for both export and
domestic markets;
(f) sustained public and private sector collaboration in order to secure market-led
production of goods and services;
(g) enhanced industrial production on an environmentally sustainable basis;
(h) balanced economic and social development in the CSME bearing in mind the special
needs of disadvantaged countries, regions and sectors within the meaning of Article I;
and
(i) stable industrial relations.
Article 52
Implementation Of Community Industrial Policy
1. In order to achieve the objectives of its industrial policy, the Community shall promote,  inter
alia:
(a) the co-ordination of national industrial policies of the Member States;
(b) the establishment and maintenance of an investment-friendly environment, including
a facilitative administrative process;
(c) the diversification of the products and markets for goods and services with a view to
increasing the range and value of exports;
(d) the organisation and development of product and factor markets;
(e) the development of required institutional, legal, technical, financial, administrative
and other support for the establishment or development of micro and small economic
enterprises throughout the Community; and
(f) in collaboration with the social partners, the advancement of production integration.
2. The Community shall establish a special regime for disadvantaged countries, regions and
sectors.
3. COTED shall, in collaboration with competent organs and bodies of the Community and the
private sector; establish criteria for according special consideration to particular industries and sectors.
Such criteria shall include, in particular; arrangements relating to the prospects of the industry for
successful production integration.
4. COTED shall collaborate with competent agencies  to assist the Member States in designing
appropriate policy instruments to support industries, which may include effective export promotion
policies, financing policies, incentives and technology policies.WT/REG155/1
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5. In implementing the Community Industrial Policy, COTED shall have regard to the
provisions of this Treaty relating to environmental protection.
6. The Member States undertake to establish and maintain appropriate macro-economic policies
supportive of efficient production in the Community. In addition, they shall undertake to put in place
arrangements for; inter alia :
(a) effective payment mechanisms;
(b) the avoidance of double taxation;
(c) harmonised legislation in relevant areas;
(d) the elimination of bureaucratic impediments to deployment of investments in
industrial enterprises;
(e) the improvement of infrastructure and co-operation in the areas of air and maritime
transport;
(f) communications systems.
7. In order to facilitate the implementation of the Community Industrial Policy, COTED shall, in
collaboration with competent organs and agencies:
(a) develop strategies for the development and dissemination of market information and
appropriate mechanisms to facilitate acquisition, storage and retrieval of suchinformation;
(b) promote the establishment and development of capital markets in the Member States;
and
(c) encourage the Member States to establish and develop export markets, especially in
non-traditional sectors, through the development of sector-specific incentives andappropriate policy instruments.
8. For the purpose of this Article, "production integration" includes:
(a) the direct organisation of production in more than one Member State by a single
economic enterprise;
(b) complementary production involving collaboration among several economic
enterprises operating in one or more Member States to produce and use required
inputs in the production chain; and
(c) co-operation among economic enterprises in areas such as purchasing, marketing, and
research and development.
Article 53
Micro And Small Economic Enterprise Development
1. The Community shall adopt appropriate policy measures to encourage the development of
competitive micro and small economic enterprises in the Member States.WT/REG155/1
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2. Without prejudice to the generality of the foregoing, the competent Organ shall encourage
policy initiatives and the establishment of effective programmes to foster a facilitative legal,
economic, and administrative framework in the Member States to enhance micro and small economic
enterprise development, and shall promote:
(a) the development of the capacities of national and regional support agencies for micro
and small economic enterprises, including the creation of entrepreneurial centres, by
organising technical assistance inclusive of planning, delivery and evaluation of
support services to the sector;
(b) access to, improvement in the quality of and opportunities for training and education
in areas such as technical skills, entrepreneurial competence and business
management for micro and small entrepreneurs;
(c) access by micro and small economic enterprises to the technical assistance provided
by the support agencies;
(d) the establishment, development or modernising, as the case may require, of financial
institutions to provide, to micro and small economic enterprises, services by way of
appropriate and innovative instruments;
(e) innovation within the micro and small enterprise sector; and
(f) the creation of, and access to, trade and technology information networks.
3. For the purposes of this Article, micro and small economic enterprises shall be economic
enterprises within the meaning of Article 32 that sa tisfy such other criteria as may be determined by
the competent authorities.
Article 54
Development Of The Services Sector
1. COTED shall, in collaboration with the appropriate Councils, promote the development of the
services sector in the Community in order to stimulate economic complementarities among, andaccelerate economic development in, the Member States. In particular; COTED shall promote
measures to achieve:
(a) increased investment in services;
(b) increased volume, value and range of trade in services within the Community and
with third States;
(c) competitiveness in the modes of delivering services; and
(d) enhanced enterprise and infrastructural development, including that of micro and
small service enterprises.
2. In order to achieve the objectives set out in paragraph 1, the Member States shall, through the
appropriate Councils, collaborate in:
(a) designing programmes for the development of human resources to achieve
competitiveness in the provision of services;WT/REG155/1
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(b) establishing a regime of incentives for the development of and trade in services; and
(c) adopting measures to promote the establishment of an appropriate institutional and
administrative framework and, in collaboration with the Legal Affairs Committee,
promote the establishment of the appropriate legal framework to support the services
sector in the Community.
3. In the establishment of programmes and policies of the Community for the development of
the services sector; the relevant Councils shall give priority to:
(a) the efficient provision of infrastructural services including telecommunications, road,
air, maritime and riverain transportation, statistical data generation and financial
services;
(b) the development of capacity-enhancing services including education services,
research and development services;
(c) the development of services which enhance cross-sector competitiveness;
(d) the facilitation of cross-border provision of services which enhance the
competitiveness of the services sector; and
(e) the development of informatics and other knowledge-based services.
Article 55
Sustainable Tourism Development
1. The Community shall, in collaboration with competent international organisations, formulate
proposals for sustainable tourism development. These proposals shall recognise the importance of thetourism sub-sector to the economic development of the Region, and the need to conserve its cultural
and natural resources and to maintain a balance between a healthy ecology and economic
development.
2. The programme for sustainable tourism development shall have the following objectives:
(a) an enhanced image for the Region as a tourist destination;
(b) a diversified tourism product of a consistently high quality;
(c) an expanded market-base;
(d) education programmes designed to ensure that appropriate practices are pursued by
service providers;
(e) linkages with other sectors in the economy;
(f) conservation of the natural and cultural resources of the Region through proper
management; and
(g) appropriate infrastructure and other services in support of tourism, considering the
natural and social carrying-capacity of the Member States.WT/REG155/1
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PART TWO: AGRICULTURAL POLICY
Article 56
The Community Agricultural Policy
1. The goal of the Community Agricultural Policy shall be:
(a) the fundamental transformation of the agricultural sector towards market-oriented,
internationally competitive and environmentally sound production of agricultural
products;
(b) improved income and employment opportunities, food and nutrition security, and
poverty alleviation in the Community;
(c) the efficient cultivation and production of traditional and non-traditional primary
agricultural products;
(d) increased production and diversification of processed agricultural products;
(e) an enlarged share of world markets for primary and processed agricultural products;
and
(f) the efficient management and sustainable exploitation of the Region's natural
resources, including its forests and the living resources of the exclusive economic
zone,
bearing in mind the differences in resource endowment and economic development of the Member
States.
Article 57
Implementation Of The Community Agricultural Policy
1. For the achievement of the goal set out in Article 56, the Community shall, through competent
Community Organs and Bodies, promote and support:
(a) the production, diversification, processing and marketing of agricultural products;
(b) the establishment of effective agricultural financing systems, including insurance,
bearing in mind the special needs of artisanal fishers, small farmers, foresters and
agro-processors;
(c) the establishment of linkages among the Member States with complementary natural
resources, industries, agricultural skills and technical abilities;
(d) the development of human resources and delivery systems responsive to the
requirements of the agricultural sector;
(e) the development of appropriate policies for the use of land and marine space with a
view to increased agricultural production;
(f) appropriate land tenure systems to provide the farmer with security of tenure;WT/REG155/1
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(g) the establishment of effective information and market intelligence services;
(h) research and development with a view to the adaptation, dissemination and
application of appropriate technologies at all levels of the sector and all stages of
production;
(i) the adoption of effective measures for rural enterprise development;
(j) public education to enhance the economic and social profiles of agriculture,
particularly among the youth;
(k) the establishment of an effective regime of sanitary and phytosanitary measures;
(l) the establishment of a policy environment designed to attract investment to the
agricultural sector; and
(m) technical co-operation and the dissemination of knowledge in agriculture.
2. For the purpose of assisting the Member States to implement the agricultural policy set out in
paragraph 1, COTED shall establish effective support measures including:
(a) strengthening the relevant administrative and institutional framework to modernise
and enhance the competitiveness of agriculture by:
(i) improving the capability of the Member States to undertake policy analysis,
formulation, planning, execution and resource mobilisation for thedevelopment of the sector;
(ii) investigating and analysing developments in the agri-food sector; and
(iii) improvement of the collection, analysis and dissemination of empirical data
and other relevant information;
(b) upgrading of national and regional capabilities in the areas of sustainable natural
resources management;
(c) enhancement of the capabilities of the Member States in the areas of agricultural trade
analysis and negotiations; and
(d) promotion of a mechanism for the collaboratio n of farmers, fishers, foresters and the
social partners in agricultural development.
3. The Community shall:
(a) promote collaboration among the Member States and competent regional
organisations in the areas of policy formulation and implementation of regional
agricultural policies; and
(b) establish an effective regime to protect regional agricultural production from
dumping, subsidisation and other unfair trading practices.
4. The Community shall, as a matter of priority, a nd in collaboration with national, regional and
international agencies and organisations, promote and adopt measures relating, inter alia , to:WT/REG155/1
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(a) the provision of appropriate inputs; and
(b) the development of infrastructure, such as port facilities, drainage, irrigation, access
roads, post-harvest handling and marketing facilities.
Article 58
Natural Resource Management
1. The Community shall adopt effective measures to assist the Member States in the
management of their natural resources in support of the transformation and sustainable development
of the agricultural sector.
2. Without prejudice to the generality of paragraph 1 and to obligations of Member States under
existing international agreements, the Community shall adopt measures for:
(a) the effective management of the soil, air and all water resources, the exclusive
economic zone and all other maritime areas under the national jurisdiction of the
Member States; and
(b) the conservation of biological diversity and the sustainable use of biological resources
of the Member States, especially those of important medicinal and traditional value.
Article 59
Marketing Of Agricultural Products
1. The Community shall, in collaboration with competent national, regional and international
organisations, promote the development of effective agricultural marketing systems in order to
respond to, influence and generate market demand for agricultural products of the Member States.
2. In effecting the promotion referred to in paragraph 1, the Community shall pay particular
attention to:
(a) market information, intelligence and planning;
(b) improved post-harvest technology;
(c) risk insurance; and
(d) efficient distribution services.
3. In order to accomplish the objectives referred to in paragraph 1, the Community shall adopt
measures to promote:
(a) the establishment of a regional market information system;
(b) the improvement of production and market information systems of the Member States
in order to facilitate, inter alia , the efficient co-ordination of marketing strategies and
systems;
(c) institutional arrangements including producer associations and joint venture
marketing enterprises in order to respond to existing and changing market conditions;WT/REG155/1
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(d) niche marketing;
(e) linkages between agriculture and other sectors in particular, the tourism sector;
(f) the identification and utilisation of sources of low cost alternative inputs;
(g) the establishment and adoption of regional standards and specifications compatible
with international standards for products being traded;
(h) enhanced productivity and food quality;
(i) insurance coverage for primary agricultural products; and
(j) the development of efficient distribution services to facilitate intra-regional and extra-
regional marketing.
4. In pursuance of the need to generate market demand for agricultural products of the Member
States and to promote the agricultural development of the Less Developed Countries, the Member
States shall agree to the arrangements for marketing oils and fats set out in Schedule III.
Article 60
Fisheries Management And Development
1. The Community, in collaboration with competen t national, regional and international agencies
and organisations, shall promote the development, management and conservation of the fisheries
resources in and among the Member States on a sustainable basis.
2. The Community shall effect the promotion and facilitation referred to in paragraph 1 by:
(a) enhancing the institutional capabilities of the Member States in areas such as policy
formulation, registration and management systems, resource monitoring andassessment, and harvesting and post-harvesting technologies;
(b) establishing mechanisms to provide assistance in:
(i) the development, management and conservation of the fisheries resources;
(ii) the discharge of obligations relating to fisheries resources arising under
Articles 62, 63 and 64 of the United Nations Convention on the Law of theSea (1982).
(c) effective regional representation at international fora;
(d) establishing development programmes for aquaculture;
(e) encouraging the establishment of protected aquatic habitats and associated terrestrial
areas and fish populations for the sustainable development of fisheries resources of
the Member States; and
(f) establishing, facilitating and strengthening research and human resource development
at the professional, technical and vocational levels.WT/REG155/1
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3. The Community shall collaborate with the Member States in:
(a) the management of straddling and highly migratory fish stocks;
(b) ongoing surveillance of their exclusive economic zones;
(c) the delimitation of maritime boundaries; and
(d) safeguarding their marine environment from pollutants and hazardous wastes.
4. Without prejudice to the provisions of Arti cle 56, COFCOR shall promote the establishment
of a regime for the effective management, conservation and utilisation of the living resources of the
exclusive economic zones of the Member States.
5. For the purpose of this Article, "fisheries resources" includes all the fishable resources,
natural and cultured, in the inland and internal waters, territorial seas and the exclusive economic
zones of the Member States.
Article 61
Forest Management And Development
1. The Community shall, in collaboration with competent national, regional and international
agencies and organisations, promote the developm ent, management and conservation of the forest
resources in the Member States on a sustainable basis.
2. The Community shall effect the promotion and facilitation referred to in paragraph 1 by
formulating policies and programmes for:
(a) the management of its forest resources;
(b) the integration of forest development in rural communities;
(c) enhancing the institutional capabilities of the Member States to design and implement
forest management systems;
(d) establishing, facilitating and strengthening programmes for research and for human
resource development at the professional, technical and vocational levels;
(e) encouraging public and private sector participation in the development and
application of technology;
(f) providing incentives for forestry development to stimulate domestic, regional and
foreign investment in the forestry sub-sector;
(g) harmonising standards for quality assurance, compatible with international
specifications;
(h) promoting commercialisation of natural forest products in a sustainable manner; and
(i) undertaking national forest inventories.WT/REG155/1
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3. For the purposes of this Article, "forest resources" are those natural assets of forest lands,
including timber and other forest products, biological diversity, recreation, fish and wildlife habitat,
wilderness, flora and fauna, air, water and soil.
Article 62
Saving
The provisions of this Chapter are without prejudice to obligations of the Member States
under existing international agreements.
PART THREE: COMMON SUPPORTIVE MEASURES
Article 63
Human Resources Development
1. Without prejudice to any other provision of this Treaty relating to human resources
development, the COTED shall, in collaboration with the COHSOD, adopt measures to develop the
Community's human resources which shall, inter alia , support its thrust toward international
competitiveness in the development, production and delivery of goods and services.
2. The measures referred to in paragraph 1 of this Article shall be designed to address the
economic, social and cultural aspects of human resources development, and shall include the
following:
(a) development of programmes that will assist Community nationals in engendering the
attitudes and acquiring the competence to function effectively;
(b) development of the skills and attitudes required to foster a culture of
entrepreneurship;
(c) establishing and strengthening educational and training institutions for formal and
informal modes of delivery and alternative modes for distance education;
(d) development of industry-oriented curricula designed to improve the competitiveness
of regional industries; and
(e) promotion of multi-lingual skills at all levels for general education, with particular
emphasis on the needs of the services sector.
3. The Community shall, in particular and on a continuing basis, adopt effective measures for
the development of human resources to satisfy the requirements for cadres of skilled agricultural
personnel at all levels in the Member States.
4. For the purposes of paragraph 3, provision shall be made to:
(a) monitor and evaluate, on an on-going basis, the demand for, and appropriateness of
agricultural education and training;
(b) establish training programmes in the agricultural sector;WT/REG155/1
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(c) develop effective delivery of in-field training for farmers, foresters and fishers; and
(d) improve the facilities and strengthen the capabilities of regional training institutions
and national administrations in support of agricultural development.
5. In performing the functions referred to in para graph 4 of this Article, the Community shall
collaborate with education and training institutions and relevant regional and internationalorganisations in developing harmonised agricultural syllabuses, training materials and case studies in
key areas of farming, fisheries and forestry utilising distance education technology where appropriate.
Article 64
Research And Development
1. COTED shall promote market-led research, technological development and adaptation of
technology in the Community in order to support the production, on a sustainable basis, of goods and
services in the Member States with a view to diversifying such production and enhancing its
international competitiveness.
2. In the discharge of its mandate set out in paragraph 1 of this Article, COTED shall adopt
measures to encourage, inter alia , inventions and innovation, and acquisition, transfer, assimilation,
adaptation and diffusion of technologies in the Community. Without prejudice to the generality of the
foregoing, COTED shall:
(a) encourage public and private sector agencies, research establishments and tertiary
institutions in their research and technological development activities and assist in
identifying sources of funding for such activities;
(b) promote co-operation in research and technological development among the Member
States and with third States and competent international organisations;
(c) facilitate co-operation:
(i) in training;
(ii) in the exchange of scientific and technical information among competent
institutions;
(iii) in the free movement of researchers in the Community;
(iv) among private sector enterprises to integrate the results of research and
development in the production process;
(d) develop and implement technological policies and strategies, having due regard for
the importance of technology management and protection of intellectual property
rights;
(e) facilitate access by Community nationals to technological and research facilities of
Member States; and
(f) promote the development of technology extension services.WT/REG155/1
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3. In particular, COTED shall promote and encourage research and development, and the
adaptation, diffusion and transfer of appropriate technologies in order to achieve increased
agricultural production and productivity, bearing in mind the need to protect the independence and
human rights of the farming community.
4. COTED shall, in collaboration with competent public and private sector research and
development institutions, encourage and assist Member States:
(a) to facilitate access to and use of new and appropriate technologies in the agricultural
sector;
(b) to develop:
(i) efficient systems for the generation and transfer of appropriate technologies;
and
(ii) technological and institutional capabilities in the public and private sectors,
compatible with competitive and sustainable agricultural production,
5. In the pursuit of its functions under this Article, COTED shall encourage the private sector to
play a vital role in:
(a) the development, adaptation and transfer of appropriate technologies in the
agricultural sector; and
(b) the development of producer associations as a basis for autonomous action and intra-
regional transfer of technologies and research findings.
6. COTED shall co-operate with the Member States and competent organisations to devise
means of protecting, developing and commercialising local knowledge about the value and use of theRegion's biodiversity for the benefit of their populations, especially their indigenous peoples.
Article 65
Environmental Protection
1. The policies of the Community shall be implemen ted in a manner that ensures the prudent and
rational management of the resources of the Member States. In particular, the Community shall
promote measures to ensure:
(a) the preservation, protection and improvement of the quality of the environment;
(b) the protection of the life and health of humans, animals and plants; and
(c) the adoption of initiatives at the Community level to address regional environmental
problems.
2. In formulating measures in relation to the environment, the Community shall take account of:
(a) available and accessible scientific and technical data;
(b) environmental conditions in the Member States;WT/REG155/1
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(c) the potential costs and benefits of action or inaction;
(d) the economic and social development of th e Community as a whole and the balanced
development of the Member States;
(e) the precautionary principle and those principles relating to preventive action,
rectification of environmental damage at source and the principle that the polluterpays; and
(f) the need to protect the Region from the harmful effects of hazardous materials
transported, generated, disposed of or shipped through or within the Community.
3. In performing its functions under this Treaty,  COTED shall ensure a balance between the
requirements of industrial development and the protection and preservation of the environment.
4. In giving effect to this Article, the Commun ity and the Member States shall, within their
respective spheres of competence, co-operate with third States and competent environmentalorganisations.
Article 66
Protection Of Intellectual Property Rights
COTED shall promote the protection of intellectual property rights within the Community by,
inter alia :
(a) the strengthening of regimes for the protection of intellectual property rights and the
simplification of registration procedures in the Member States;
(b) the establishment of a regional administration for intellectual property rights except
copyright;
(c) the identification and establishment, by the Member States of mechanisms to ensure:
(i) the use of protected works for the enhanced benefit of the Member States;
(ii) the preservation of indigenous Caribbean culture; and
(iii) the legal protection of the expressions of folklore, other traditional
knowledge and national heritage, particularly of indigenous populations in
the Community;
(d) increased dissemination and use of patent documentation as a source of technological
information;
(e) public education;
(f) measures to prevent the abuse of intellectual property rights by rights-holders or the
resort to practices which unreasonably restrain trade or adversely affect the
international transfer of technology; and
(g) participation by the Member States in international regimes for the protection of
intellectual property rights.WT/REG155/1
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Article 67
Standards And Technical Regulations
1. COTED shall, in collaboration with comp etent agencies, develop a standardisation
programme in furtherance of the objectives of this Chapter and consistent with the international
obligations of the Member States.
2. In implementing the programme, the Member States shall not use standards, technical
regulations and conformity assessment procedures as barriers to trade.
3. The programme shall have the following objectives:
(a) trade facilitation;
(b) enhanced efficiency in the production and delivery of goods and services;
(c) improved quality of goods and services tr aded within the Community and with third
States; and
(d) consumer and environmental protection.
4. The programme shall include the following elements:
(a) harmonisation of standards and technical regulations, and transparency in the
development and promulgation of standards and technical regulations;
(b) recognition of conformity assessment procedures through mutual recognition
agreements or other means;
(c) facilitation of standards infrastructure development at the national and regional
levels;
(d) facilitation of metrology infrastructure development; and
(e) arrangements for the exchange of inform ation with respect to development and
implementation of standards and technical regulations among the parties to this
Treaty.
5. The Community shall promote the establishment of a regional standards body which shall,
inter alia :
(a) facilitate implementation of the standardisation programme;
(b) assist the Member States in understanding and fulfilling their obligations under this
Treaty and other international agreements;
(c) promote the development of national standards bodies in the Member States; and
(d) facilitate access to technical assistance available in the Member States and in third
States.
6. For the purposes of this Article, the following definitions apply:WT/REG155/1
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(a) "technical regulations" means regulations which lay down product characteristics or
their related processes and production methods, including the applicable
administrative provisions, with which compliance is mandatory. The term may also
include or deal exclusively with termi nology, symbols, packaging, marking or
labeling requirements as they apply to a product, process or production method.
(b) "standard" means a guideline approved by a recognised body, that provides, for
common and repeated use, rules, guidelines or characteristics for products or related
processes and production methods, with which compliance is not mandatory. The
term may also include or deal exclusively with terminology, symbols, packaging,
marking or labelling requirements as they apply to a product, process or production
method.
(c) "conformity assessment procedures" includes any procedure used, directly or
indirectly, to determine that relevant requirements in technical regulations or
standards are fulfilled.
Article 68
Community Investment Policy
COTED in collaboration with COFAP and C OHSOD shall establish a Community Investment
Policy which shall include sound national macro-economic policies, a harmonised system of
investment incentives, stable industrial relations, appropriate financial institutions and arrangements,
supportive legal and social infrastructure and modernisation of the role of public authorities.
Article 69
Harmonisation Of Investment Incentives
1. The Member States shall harmonise national incentives to investments in the industrial,
agricultural and services sectors.
2. COFAP shall, consistently with relevant inte rnational agreements, formulate proposals for the
establishment of regimes for the granting of ince ntives to enterprises in the sectors mentioned in
paragraph 1. In particular, such proposals shall accord support for industries considered to be of
strategic interest to the Community.
3. In formulating the proposals mentioned in para graph 2, COFAP shall give due consideration
to the peculiarities of the industries concerned and, without prejudice to the generality of the
foregoing, may provide for the following:
(a) national incentives to investment designed to promote sustainable, export-led
industrial and service-oriented development;
(b) investment facilitation through the removal of bureaucratic impediments; and
(c) non-discrimination in the granting of incentives among Community nationals.WT/REG155/1
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Article 70
Macro-Economic Policies
1. COFAP shall formulate proposals and adopt appr opriate measures to promote a sound macro-
economic environment in the Member States, consistent with their obligations under this Treaty and
applicable international agreements.
2. COFAP shall, in collaboration with other competent Organs, promote economic development
in the Member States through the development and application of convergent macro-economic
policies to ensure fiscal discipline, favourable balance-of-payments, stable currencies and moderate
prices without prejudice to securing high levels of employment.
3. COFAP shall collaborate with COFCOR and COTED in co-ordinating:
(a) the economic policies of the Member States; and
(b) the positions and presentations of the Member States in all international economic,
financial and trade meetings at which they are represented.
4. In support of the development of macro-economic policies, the Community shall provide for
harmonisation of the output of the statistical services of the Member States.
Article 71
Financial Infrastructure
COFAP shall adopt proposals for the establishment of financial infrastructure supportive of
investments in the Community. In particular, COFAP shall assist the Member States in establishing
capital markets, financial institutions and appropriate financial instruments to facilitate capital
investment on a sustainable basis.
Article 72
Double Taxation Agreements
1. The Member States shall conclude among themselves an agreement for the avoidance of
double taxation in order to facilitate the free movement of capital in the Community.
2. The Member States shall conclude their double taxation agreements with third States on the
basis of mutually agreed principles which shall be determined by COFAP.
Article 73
Industrial Relations
COHSOD shall, in consultation with COTED, formulate proposals and adopt appropriate
measures for the promotion of harmonious, stable and enlightened industrial relations in the
Community. In formulating such measures and proposals, COHSOD shall, inter alia , promote:
(a) the objectives of full employment, improved living and working conditions; adequate
social security policies and programmes; tripartite consultations among governments,workers' and employers' organisations; and cross-border mobility of labour;WT/REG155/1
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(b) recognition of the principle of non-discriminatory treatment among Community
workers in the pursuit of employment within the Community;
(c) the establishment and maintenance of effective mechanisms for the enhancement of
industrial relations, particularly that of collective bargaining; and
(d) awareness among Community workers and employers that international
competitiveness is essential for social and economic development of Member States
and requires collaboration of employers an d workers for increased production and
productivity in Community enterprises.
Article 74
Legal Infrastructure
1. The Legal Affairs Committee shall co-operate with competent Organs of the Community to
advise the Member States on the legal infrastructure required to promote investments in the Member
States, including cross-border investments, bearing in mind the provisions of Article 68.
2. The Member States shall harmonise their laws and administrative practices in respect of, inter
alia:
(a) companies or other legal entities;
(b) intellectual property rights;
(c) standards and technical regulations;
(d) labeling of food and drugs;
(e) sanitary and phytosanitary measures;
(f) competition policy;
(g) dumping;
(h) subsidies and countervailing measures; and
(i) commercial arbitration.
Article 75
Development Of Social Infrastructure
1. In establishing its industrial policy, the Community shall promote appropriate measures for
the establishment of adequate social infrastructure, the alleviation of poverty, and securing social
stability in the Member States.
2. Without prejudice to the generality of the foregoing, the Community shall promote in the
Member States:
(a) the establishment and improvement of health, education, sports and social security
institutions and facilities;WT/REG155/1
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(b) conclusion of reciprocal social security agreements among Member States in order to
facilitate the movement of skills; and
(c) training and retraining of workers, mobility of instructors and trainees, co-operation
among educational and training institutions, and the development of distance
education.
3. The Member States shall engender an understanding and appreciation of the Community
through effective public relations, educational, cultural and youth exchange programmes.
Article 76
Role Of Public Authorities
COTED shall promote the modernisation of government bureaucracies by, inter alia :
(a) encouraging the development of closer contacts between public sector
administrations, industry and other stakeholders to ensure that challenges presented
by the global environment are understood and co-operative solutions developed;
(b) removing impediments and improving the regulatory framework for economic
enterprises at national and regional levels;
(c) encouraging cost-effectiveness in the de livery of services to the public; and
(d) proposing adequate arrangements to address the changes in the business environment
and future challenges to industry.
Article 77
Special Provisions For Less Developed Countries
Where in this Chapter Member States or competent Organs are required to adopt measures for
the achievement of the Community Industrial Policy, the special needs and circumstances of the LessDeveloped Countries shall be taken into account.
CHAPTER FIVE: TRADE POLICY
PART ONE: PRELIMINARY
Article 78
Objectives Of The Community Trade Policy
1. The goal of the Community Trade Policy shall be the sustained growth of intra-Community
and international trade and mutually beneficial exchange of goods and services among the Member
States and between the Community and third States.
2. In fulfilment of the goal set out in paragraph 1 of this Article the Community shall pursue the
following objectives:WT/REG155/1
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(a) full integration of the national markets of all Member States of the Community into a
single unified and open market area;
(b) the widening of the market area of the Community;
(c) the active promotion of export of internationally competitive goods and services
originating within the Community;
(d) the securing of the most favourable terms of trade for Community goods and services
exported to third States and groups of States.
3. In order to achieve the objectives of its Trade Policy, the Community shall:
(a) undertake:
(i) the establishment of common instruments, common services and the joint
regulation, operation and efficient administration of the internal and external
commerce of the CSME;
(ii) where possible, the employment of common negotiating strategies in the
development of mutually beneficial trade agreements with third States and
groups of States;
(iii) participation and joint representation as appropriate in international and
regional organisations which negotiate, establish and apply disciplinesgoverning international and regional trade;
(b) prohibit the imposition by the Member States of new restrictions on imports and
exports of products of Community origin.
4. Member States shall eliminate existing restrictions on imports and exports of goods of
Community origin, other than those authorised by this Treaty.
Article 79
General Provisions On Trade Liberalisation
1. The Member States shall establish and maintain a regime for the free movement of goods and
services within the CSME.
2. Each Member State shall refrain from trade policies and practices, the object or effect of
which is to distort competition, frustrate free moveme nt of goods and services, or otherwise nullify or
impair benefits to which other Member States are entitled under this Treaty.
3. The Member States shall not introduce in their territories any new restrictions on imports or
exports of Community origin save as otherwise provided in this Treaty.
Article 80
Co-Ordination Of External Trade Policy
1. The Member States shall co-ordinate their trade policies with third States or groups of third
States.WT/REG155/1
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2. The Community shall pursue the negotiation of external trade and economic agreements on a
joint basis in accordance with principles and mechanisms established by the Conference.
3. Bilateral agreements to be negotiated by Member States in pursuance of their national
strategic interests shall:
(a) be without prejudice to their obligations under the Treaty; and
(b) prior to their conclusion, be subject to certification by the CARICOM Secretariat that
the agreements do not prejudice or place at a disadvantage the position of other
CARICOM States vis-a-vis the Treaty.
4. Where trade agreements involving tariff concessions are being negotiated, the prior approval
of COTED shall be required.
5. Nothing in this Treaty shall preclude Belize from concluding arrangements with neighbouring
economic groupings provided that treatment not less favourable than that accorded to third Stateswithin such groupings shall be accorded to the Member States of the Community, and that the
arrangements make adequate provision to guard against the deflection of trade into the rest of
CARICOM from the countries of such groupings through Belize.
Article 81
Deposit Of Agreements With Third Countries
The Member States shall deposit with the Secret ariat, agreements relating to trade or aid
concluded by them with third countries.
PART TWO: TRADE LIBERALISATION
Article 82
Establishment Of Common External Tariff
The Member States shall establish and maintain a common external tariff in respect of all
goods which do not qualify for Community treatment in accordance with plans and schedules set out
in relevant determinations of COTED.
Article 83
Operation Of The Common External Tariff
1. Any alteration or suspension of the Common External Tariff on any item shall be decided by
COTED.
2. Where:
(a) a product is not being produced in the Community;
(b) the quantity of the product being produced in the Community does not satisfy the
demand of the Community; orWT/REG155/1
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(c) the quality of the product being produced in the Community is below the Community
standard or a standard the use of which is authorised by COTED,
COTED may decide to authorise the reduction or suspension of the Common External Tariff in
respect of imports of that product subject to such terms and conditions as it may decide, provided that
in no case shall the product imported from third States be accorded more favourable treatment thansimilar products produced in the Member States.
3. The authority referred to in paragraph 2 to suspend the Common External Tariff may be
exercised by the Secretary-General on behalf of COTED during any period between meetings of
COTED. Any exercise of such authority by the Secretary-General shall be reported to the next
meeting of COTED.
4. Each Member State shall, for the purpose of administering the Common External Tariff,
appoint a competent authority which shall be notified to COTED.
5. COTED shall continuously review the Common External Tariff; in whole or in part, to assess
its impact on production and trade, as well as to secure its uniform implementation throughout the
Community, in particular, by reducing the need for discretionary application in the day to day
administration of the Tariff.
Article 84
Community Rules Of Origin
1. Subject to the provisions of this Article, goods that have been consigned from one Member
State to a consignee in another Member State shall be treated as being of Community origin, where
the goods:
(a) have been wholly produced within the Community; or
(b) have been produced within the Community wholly or partly from materials imported
from outside the Community or from materials of undetermined origin by a processwhich effects a substantial transformation characterised:
(i) by the goods being classified in a tariff heading different from that in which
any of those materials is classified; or
(ii) in the case of the goods set out in the List in Schedule I to this Treaty
(hereinafter referred to as "the List"), only by satisfying the conditions
therefor specified.
2. Goods that have been consigned from one Member State to a consignee in another Member
State for repair; renovation or improvement shall, on their return to the Member State from which
they were exported, be treated for the purpose of re-importation only, in like manner as goods which
are of Community origin, provided that the goods are reconsigned directly to that Member State from
which they were exported and the value of materials imported from outside the Community or of
undetermined origin which have been used in the process of repair, renovation or improvement doesnot exceed:
(a) in the case where the goods have undergone the process of repair, renovation or
improvement in a More Developed Country, 65 per cent of the cost of repair,
renovation or improvement;WT/REG155/1
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(b) in the case where the goods have undergone the process of repair, renovation or
improvement in a Less Developed Country, 80 per cent of the cost of repair,
renovation or improvement.
3. Where there is an interruption or inadequacy of supplies of regional materials and the
manufacturer of goods, for which the qualifying condition for Community origin is that of "whollyproduced" or "produced from regional materials", is unable by reason of circumstances beyond his
control to obtain supplies of the regional materi als, he shall so inform the competent authority.
4. The competent authority shall:
(a) after receipt of information from the manufacturer; cause investigations to be made
into the matter, and if he is satisfied that the representation from the manufacturer is
justified, submit to the Secretary-General in the prescribed instrument an application
for a certificate provided for in this Article;
(b) at the time of making the application, inform the other Member States of the inability
of the manufacturer to obtain the supplies of the required materials from within the
Community with respect to quantities and specifications of the materials sought and
the period during which the materials are required.
5. The Secretary-General shall, on receipt of the application from the competent authority:
(a) forthwith make the relevant enquiries by the quickest possible means from the
competent authorities in the other Member St ates as to their ability to supply the
materials required by the manufacturer; and
(b) request a reply to the enquiry from each competent authority within seven calendar
days of the despatch of his enquiry.
6. A competent authority shall reply to the enquir y referred to in paragraph 5 within the time
specified.
7. Where the Secretary-General, on the basis of his investigations, is satisfied that the
application received from the competent authority justifies favourable consideration, he shall,
notwithstanding that he may not have received a reply to his enquiry from one or more MemberStates, within fourteen calendar days after the receipt of the application from the competent authority,
issue, on behalf of COTED, a certificate to th e competent authority authorising the use of like
materials from outside the Community, subject to such conditions as he may think fit to impose.
8. The Secretary-General shall inform the Member States of the issue of his certificate, including
any conditions attaching thereto and that notwithstandi ng anything to the contrary in the provisions of
this Article, goods manufactured from like materials imported from outside the Community shall be
deemed to be of Community origin.
9. A Member State may treat as of Community origin any imports consigned from another
Member State, provided that the like imports consigned from any other Member State are accorded
the same treatment. Member States concerned shall promptly inform COTED of any trading
arrangements concluded pursuant to this paragraph and COTED may, as it thinks fit, recommend to
the Member States concerned the adoption of alternative trading arrangements.WT/REG155/1
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10. The provisions of Schedule I shall apply to and have effect for the purposes of this Article.
COTED shall keep the Schedule and, in particular, the List under continuous review, and may amend
the Schedule in order to ensure the achievement of the objectives of the Community.
11. The issue of a certificate in accordance with paragraph 7 shall be reported by the Secretary-
General to COTED at the Meeting of COTED next following the date of issue thereof.
Article 85
Export Promotion
1. COTED shall adopt appropriate measures for the promotion and export of goods and services.
2. In the implementation of measures to promote exports, COTED shall give consideration to:
(a) the establishment and maintenance of effective trade information systems and
services;
(b) the design and implementation of trade facilitation programmes including the conduct
of market research and the organisation of trade missions;
(c) the co-ordination and support of the active participation of the Member States in
international trade promotion fora, including trade fairs and exhibitions.
Article 86
Freedom Of Transit
1. The Member States shall grant freedom of tran sit within the Community with respect to goods
and vessels and other vehicles transporting those goods.
2. For the purpose of paragraph 1 of this Article, transit means the passage of goods and of
vessels and aircraft and vehicles transporting those goods:
(a) through or across the frontier of a Member State;
(b) with or without transhipment, warehousin g, breaking bulk or change of mode of
transport,
where the passage is only a portion of a journey beginning and terminating beyond its frontier.
3. In granting freedom of transit within the meaning of paragraph 2, the Member States:
(a) shall ensure that there are no unnecessary delays or restrictions and that goods,
vessels, aircraft and vehicles transporting those goods are subject only to charges for
transport, handling, and other services rendered;
(b) shall not discriminate based on the flag of vessels, place of origin, departure, entry,
exit or destination or any circumstance relating to the ownership of goods, vessels, or
aircraft or vehicles;WT/REG155/1
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(c) shall, with respect to regulations, formalities, fees and other service charges in
connection with the transit, ensure that treatment extended to any Member State is on
terms no less favourable than those extended to all other Member States.
Article 87
Import Duties
1. Save as otherwise provided in this Treaty, Member States shall not impose import duties on
goods of Community origin.
2. Nothing in paragraph 1 of this Article shall be construed to extend to the imposition of non-
discriminatory internal charges on any products or a substitute not produced in the importing Member
State.
3. This Article does not apply to fees and similar charges commensurate with the cost of services
rendered.
4. Nothing in paragraph 3 of this Article shall be construed to exclude from the application of
paragraph 1 of this Article any tax or surtax of customs on any product or a substitute not produced in
the importing State.
Article 88
Prohibition Of Export Duties
1. The Member States shall not apply any export duties on goods of Community origin traded
within the Community.
2. Nothing in this Article shall prevent a Memb er State from taking such measures as are
necessary to prevent evasion of export duties which are applied to products destined for export outside
of the Community where such products are re-exported through another Member State.
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.
Article 89
Export Drawback
1. A Member State may refuse to treat as of Community origin goods which benefit from export
drawback allowed by other Member States. In appl ying this paragraph, a Member State shall accord
the same treatment to such goods consigned from all other Member States.
2. Whenever a Member State intends to apply an export drawback within the meaning of
paragraph 6, it shall notify COTED.
3. The Member State shall, at the time of notification, set out the circumstances which justify the
need to apply an export drawback, the products wh ich will benefit therefrom, the nature and proposed
duration of the measures, and such other information as COTED may prescribe from time to time.
4. COTED shall give its earliest consideration to the notification referred to in paragraph 3 and
make a determination of the appropriateness of the measures and, if it is not satisfied, mayWT/REG155/1
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recommend that the Member State which intends to apply an export drawback, modify the
programme.
5. COTED shall review annually all export dr awback programmes maintained by Member
States.
6. For the purposes 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 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 80 applies; and
(ii) any protective element in such fiscal charges;
(d) "materials" shall have the meaning assigned to it in Rule I of Schedule I to this
Treaty.
Article 90
Internal Taxes And Other Fiscal Charges
1. Save as otherwise provided in this Treaty, Member States shall not:
(a) apply directly or indirectly to imported goods of Community origin any fiscal charges
in excess of those applied directly or indirectly to like domestic goods, or otherwise
apply such charges so as to protect like domestic goods; or
(b) apply fiscal charges to imported goods of Community origin of a kind which they do
not produce, or which they do not produce in substantial quantities, in such a way asto protect the domestic production of substitutes which enter into direct competition
with them and which do not bear; directly or indirectly, in the country of importation,
fiscal charges of equivalent incidence.
2. A Member State shall notify COTED of all fis cal 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 State applying
the charge considers that the charge is, or has been made, consistently with sub-paragraph (a) ofparagraph 1 of this Article. A Member State shall,  at the request of any other Member State, supply
information about the application of paragraph I of this Article.
3. For the purposes of this Article "fiscal charges" means internal taxes and other internal
charges with equivalent effect on goods.WT/REG155/1
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Article 91
Quantitative Restrictions
1. Save as otherwise provided in this Treaty, and in particular Articles 88, 89 and 90, and in
Schedules II, III and IV, a Member State shall not apply any quantitative restrictions on the
importation of goods which are of Community origin.
2. Except as otherwise provided in this Treaty, and particularly in Articles 89 and 90, and in
Schedule III, a Member State shall not apply any quantitative restrictions on exports to any other
Member State.
3. This Article shall not prevent any Member State from taking such measures as are necessary
to prevent evasion of any prohibitions or restrictions which it applies to imports from or exports tothird States provided that less favourable treatment is not granted to Member States than to countries
outside the Community.
4. "Quantitative restrictions" means prohibitions or restrictions on imports into, or exports from,
any other Member State, as the case may be, whether made effective through quotas, import licences
or other measures with equivalent effect, including administrative measures and requirementsrestricting imports or exports.
Article 92
Difficulties Occasioned By Particular Imports
1. Subject to Article 150, wherever imports of any product, including any primary agricultural
product, into a Member State cause serious injury or the threat of serious injury to domestic producers
of like or directly competitive products in any industry or specific sector of any industry, the
importing Member State shall be free to impose restrictions in respect of such product if.
(a) the import of the product in question results in a substantial decrease in demand for
the like or directly competitive product produced within its jurisdiction; and
(b) the decrease in demand is directly linked to an increase in imports consigned from
another Member State.
2. Where a Member State decides to exercise its rights under paragraph I, it may provisionally,
until a determination by COTED is made:
(a) limit imports of the product of Community origin by means of quantitative
restrictions at a rate not less than the rate of such imports during any period of12 months which ended 12 months before the date on which the restrictions entered
into force;
(b) take such other measures either instead of or in addition to quantitative restrictions in
accordance with sub-paragraph (a) as COTED may authorise.
3. In applying the restrictions in accordance with paragraph 2, a Member State shall not
discriminate among the sources of supply or the nationality of suppliers, and shall give consideration
to the proportionate share of the market previously enjoyed by each Member State.
4. Where a Member State:WT/REG155/1
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(a) intends to act in accordance with paragraph 2, it shall, prior to taking such action,
enter into consultations with affected Member States and notify COTED of that
intention and the nature of the action;
(b) is unable to comply with sub-paragraph (a) of this paragraph, it shall, in taking the
action, immediately notify COTED of the application and the nature of the action.
5. The Member State at the time of taking such action in accordance with paragraph 2 shall
submit to COTED:
(a) such information as is reasonably available, including:
(i) the identity of the producers and the length of time during which the
producers of the like or directly competitive product have been in production;
(ii) a complete description of the product and the annual volume of production;
(iii) an estimate of the size by volume of the domestic market, the share by
volume in the domestic market of the domestic product, imports from other
Member States and from third States;
(iv) information on changes in the level of sales and employment for the periods
comparable to the periods during which imports have increased; and
(v) any other information as COTED may from time to time prescribe;
(b) a programme setting out the measures to be taken to assist the domestic producers to
alleviate the difficulties they face and to restore their position in the domestic market.
6. COTED shall give its earliest consideration to the submission made under paragraph 5, and:
(a) make a determination of the appropriateness of the restrictions and whether they shall
be continued;
(b) where it decides that the restrictions shall be continued, determine the adequacy of
the programme and the period for which the restrictions shall continue.
7. Restrictions applied by a Member State pursuant to paragraph 2 shall be confined to those
necessary to forestall a threat of serious injury or otherwise eliminate injury.
8. The Member States in applying restrictions pursuant to paragraph 2 shall not discriminate
and:
(a) shall progressively relax them as the relevant conditions improve;
(b) may maintain them only to the extent that the conditions mentioned in paragraph 1 of
this Article continue to justify their application.
9. If a Member State has demonstrated that the imposition of measures by another Member State
under paragraph 2 has caused injury or the threat of serious injury to domestic producers in its
jurisdiction, then the first mentioned Member State may request consultation with the Member Statemaintaining the restrictions and notify COTED accordingly.WT/REG155/1
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10. Where the consultations do not result in a mutually agreed solution, the matter may be
referred to COTED for a determination.
11. If COTED is not satisfied that the Member States applying restrictions are acting in
accordance with the provisions of paragraph 7, it may recommend to the Member State adversely
affected thereby, alternative arrangements to the same end.
Article 93
Government Assistance To Economic Development
1. Except as otherwise provided in this Treaty, a Member State shall not maintain or introduce:
(a) the forms of assistance to export of goods to any other part of the Community which
are described in Schedule V; or
(b) any other forms of assistance, 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 Treaty.
2. If the application of any type of assistance by a Member State, although not contrary to
paragraph 1 (b) of this Article, nevertheless frustrates the benefits expected from such removal orabsence of duties and quantitative restrictions as is required by this Treaty, COTED may authorise
any Member State to suspend, in relation to the Member State which is applying the assistance, the
application of such obligations under this Treaty as the COTED considers appropriate.
3. COTED may amend the provisions of Schedule V.
Article 94
Public Undertakings
1. Except as otherwise provided in this Treaty, Memb er States shall ensure the elimination in the
practices of public undertakings of :
(a) measures the effect of which is to afford protection to domestic production and which
would be inconsistent with this Treaty if achieved by means of a duty or charge with
equivalent effect or quantitative restrictions or Government assistance; or
(b) trade discrimination on grounds of territorial origin in so far as it frustrates the
benefits expected from the removal or absence of such charges, duties and
quantitative restrictions as is required by this Treaty.
2. In so far as Article 92 is relevant to the activities of public undertakings, that Article shall
apply to them in the same way as it applies to other enterprises.
3. Where a public undertaking has introduced a measure or practice which:
(a) is inconsistent with paragraph 1; or
(b) in law or in effect, results in limiting access to any market, distorts competition or fair
trade, or otherwise nullifies or impairs benefits expected from the establishment ofthe CSME,WT/REG155/1
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then, in such a case, the aggrieved Member State may request consultations with the offending
Member State and promptly notify COTED of the request.
4. The Member State alleged to have introduced a measure or practice within the meaning of
paragraph 3 shall give favourable consideration to a request for consultations by the aggrievedMember State with a view to resolving their differences and arriving at a mutually acceptable
solution.
5. If no mutually acceptable solution is reached within 30 days of the date of request for
consultations, the aggrieved Member State may refer the matter to COTED, which shall cause an
investigation to be carried out into the circumstance giving rise to the complaint; the investigation is
to be completed within 60 days of the date of receipt of the complaint by COTED.
6. COTED shall, upon receipt of the report arising from the investigation, make available the
report to the Member States concerned to facilitate consultations and to permit them to reach a
mutually acceptable solution.
7. If no mutually acceptable solution is reached at the end of 15 days starting from the date of
submission of the report by COTED to the parties concerned and COTED is satisfied that the rights of
the aggrieved Member States under paragraph 1 have been unreasonably denied, then COTED shallrequest the offending Member State to withdraw the measure or practice, as the case may be.
8. If the offending Member State referred to in paragraph 7 fails to comply with the request of
COTED within 60 days of the date thereof, then COTED may authorise the Member States to
suspend, in relation to the Member State which is applying the measure or practice, the application of
such provisions of this Treaty as COTED may decide.
9. The Member States shall ensure that new practices of the kind described in paragraph 3 of this
Article are not introduced.
10. For the purposes of this Article, "public undertakings" means central, regional, or local
government authorities, public enterprises and any other organisation by means of which a Member
State by law or in practice controls or appreciabl y influences imports from, or exports to any other
part of the Community.
Article 95
Co-Operation In Customs Administration
1. The Member States shall co-operate with each other to ensure that their interpretation and
application of Articles 82, 83, 84, 86, 87, 88, 89, 90, 93 and Schedule I are effectively andharmoniously applied, particularly with respect to provisions relating to:
(a) effective customs systems and procedures governing the movement of goods, people
and conveyances across customs borders;
(b) maximising the effectiveness of co-operation among customs administrations and
with international agencies to combat customs and other cross-border offences.
2. The Member States undertake to establish harmonised customs legislation and customs
procedures in accordance with the provisions of this Chapter.WT/REG155/1
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3. COTED shall establish procedures for co-opera tion in customs administration as described in
paragraph 1 of this Article.
PART THREE: SUBSIDIES
Article 96
Determination Of A Subsidy
For the purpose of this Part, a subsidy shall be deemed to exist if there is a financial
contribution by a Government or any public body within the territory of a Member State (hereinafter
referred to as "government") where:
(a) a government practice involves direct transfer of funds (e.g., grants, loans and equity
infusion) or potential direct transfer of funds or liabilities (e.g., loan guarantees);
(b) government revenue that is otherwise due is foregone or not collected (e.g., fiscal
incentives, such as tax credits);
(c) a government purchases goods or provides goods or services other than general
infrastructure;
(d) a government makes payments to a funding mechanism, or directs or entrusts to a
private body the conduct of activities mentioned in sub-paragraphs (a), (b) and (c)
which are normally conducted by governments;
(e) there is any form of income or price support,
and a benefit is thereby conferred.
Article 97
Types Of Subsidies
1. A subsidy within the meaning of Article 96 shall be categorised as follows:
(a) a prohibited subsidy;
(b) a subsidy which:
(i) causes injury to a domestic industry; or
(ii) results in nullification or impairment of benefits accruing directly or
indirectly to any Member State; or
(iii) seriously prejudices the interests of any Member State; or
(c) a subsidy which causes serious adverse effects to a domestic industry of any Member
State such as to cause damage which would be difficult to repair:
Provided that the subsidy is specific to an enterprise or industry or group of enterprises or
industries within the jurisdiction of the granting Member State.WT/REG155/1
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2. For the purpose of this Chapter a determination of whether a subsidy as defined in Article 92
is specific shall be governed by the following:
(a) in order to determine whether a subsidy referred to in paragraph 1 of this Article is
specific to an enterprise or industry or group of enterprises or industries (referred toin this Part as "certain enterprises") within the jurisdiction of the granting authority,
the following criteria shall apply:
(i) where the granting authority, or the legislation pursuant to which the granting
authority operates, explicitly limits access to a subsidy to certain enterprises,
such a subsidy shall be specific;
(ii) where the granting authority, or the legislation pursuant to which the granting
authority operates, establishes objective criteria or conditions governing theeligibility for, and the amount of a subsidy, specificity shall not exist,
provided that the eligibility is automatic  and that such criteria and conditions
are strictly adhered to. The criteria or conditions must be clearly spelled out
in law, regulation, or other official document, so as to be capable of
verification;
(iii) if notwithstanding any appearance of non-specificity resulting from the
application of the principles laid down in sub-sub-paragraphs (i) and (ii),
there are reasons to believe that the subsidy may in fact be specific, other
factors may be considered. Such factors are: use of a subsidy programme by a
limited number of certain enterprises, predominant use of certain enterprises,the granting of disproportionately large amounts of subsidy to certain
enterprises, and the manner in which discretion has been exercised by the
granting authority in the decision to grant a subsidy. In applying this sub-
paragraph, account shall be taken of the extent of diversification of economic
activities within the jurisdiction of the granting authority, as well as of thelength of time during which the subsidy programme has been in operation;
(b) a subsidy which is limited to certain enterprises located within a designated
geographical region within the jurisdiction of the granting authority shall be specific.
It is understood that the setting or change of generally applicable tax rates by all
levels of government entitled to do so shall not be deemed to be a specific subsidy for
the purposes of this Part;
(c) any subsidy falling under the provisions of Article 99 shall be deemed to be specific;
(d) any determination of specificity under the provisions of this Article shall be clearly
substantiated on the basis of positive evidence.
Article 98
Entitlement To Take Action Against Subsidised Products
1. A Member State may take action against subsidised products where:
(a) the products have benefited from a prohibited subsidy;
(b) the subsidy is specific and has caused any of the effects referred to in Article 112; andWT/REG155/1
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(c) the subsidy is specific and does not conform to the provisions of Article 108.
2. Notwithstanding the provisions of paragraph 1, a Member State shall not take definitive
action against products which are believed to be benefitting from subsidies referred to in Article 97 if
the Member State aggrieved thereby has not:
(a) promulgated legislation to permit the introduction of counter measures or
countervailing duties against subsidised imports;
(b) consulted with the Member State which is alleged to have introduced or to be
maintaining subsidies identified in Article 97;
(c) notified COTED of the alleged subsidisation based on preliminary investigations and
failure of consultations; and
(d) received authorisation from COTED to introduce countervailing duties or
countermeasures as a result of a definitive determination of the existence ofprohibited subsidies which cause nullification, impairment, serious prejudice or
adverse effects caused by subsidisation.
3. Consultations for the purposes of this Part sh all follow the procedures set out in Annex II.
Article 99
Prohibited Subsidies
1. Subject to this Treaty, a Member State shall neither grant nor maintain subsidies referred to in
paragraph 2.
2. The following subsidies within the meaning of Article 96 shall be prohibited:
(a) subsidies contingent, in law or in fact, whether solely or as one of several other
conditions, upon export performance, including those listed in Schedule V; and
(b) subsidies contingent, whether solely or as one of several other conditions, upon the
use of domestic over imported goods.
3. Nothing in this Article shall be construed as applying to agricultural commodities produced in
the Community.
Article 100
Preliminary Investigation Of Prohibited Subsidies
1. An application for an investigation may be made in writing by or on behalf of a domestic
industry to the competent authority where the industry has reason to believe that a prohibited subsidyreferred to in Article 99 has been granted or maintained by another Member State. The authority shall
examine the application and determine, on the basis of the facts available, whether to initiate an
investigation.
2. An investigation initiated pursuant to paragraph 1 of this Article shall be deemed to be a
preliminary investigation. The authority shall give public notice of the preliminary investigation toWT/REG155/1
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inform the concerned Member State, other Member States and the interested parties all of whom shall
be afforded adequate time to submit information required and to make comments.
3. The authority shall make a preliminary determination whether a prohibited subsidy has been
granted or maintained and, where the determination is affirmative, invite the concerned Member
States and interested parties to defend their interests.
4. A request for investigation by the domestic industry under this Article or under Article 106 or
112 shall be accompanied by information set out in the Illustrative List at Annex 111 (a).
5. Wherever the term "domestic industry" is used in this Chapter, it shall mean domestic
industry as defined in Annex I.
Article 101
Request For Consultations Relating To Prohibited Subsidies
1. Whenever a Member State has reason to believe, pursuant to Article 99 that a prohibited
subsidy has been granted or is maintained by a Member State, the aggrieved or any other Member
State may request consultations with the Member State believed to be granting or maintaining the
subsidy. The aggrieved Member State shall notify COTED of the request for consultations. A requestfor consultations shall include a statement of the av ailable evidence with regard to the existence and
nature of the alleged prohibited subsidy.
2. Upon receipt of a request for consultations under paragraph 1, the Member State believed to
be granting or maintaining the subsidy shall reply within 10 days and shall furnish the relevant
information requested and shall promptly enter into consultations which shall be concluded within30 days of the date of request for such consultations unless the parties agree to extend the
consultations to a mutually agreed date. The purpose of the consultations shall be to clarify the facts
relating to the existence and type of the alleged subsidy and to arrive at a mutually agreed solution.
Article 102
Reference To COTED To Investigate  Prohibited Subsidies
1. If no mutually agreed solution is reached at the completion of 30 days from the date of the
request for the consultations referred to in Article 101 , or at such time as the parties agree, or if the
Member State believed to be granting or mainta ining the subsidy refuses to co-operate, the Member
State requesting consultations or any other Member State interested in such consultations may refer
the matter to COTED which shall carry out an investigation to establish whether the subsidy inquestion is a prohibited subsidy.
2. The referral of the matter to COTED for an in vestigation shall not prevent the aggrieved
Member State from taking, on a provisional basis, which shall not be sooner than 60 days from the
date of initiation of investigations under paragraph 1 of Article 103 counter-measures to forestall
injury or to prevent further injury to its domestic industry.
Article 103
Investigation By COTED Of  Prohibited Subsidies
1. Whenever COTED decides to carry out an in vestigation pursuant to Article 102, such an
investigation by COTED shall proceed as expediti ously as possible. COTED may appoint competentWT/REG155/1
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experts to advise whether the subsidy falls to be classified as a prohibited subsidy, in which case
COTED shall set a time limit for the examination of the evidence by the competent experts. COTED
shall make its determination and issue its report which shall, unless extenuating circumstances arise,
not exceed 90 days from the date of receipt of request for the investigation.
2. The results of an investigation carried out pursuant to Article 102 shall be made available to
all Member States for information and to afford the concerned Member States an opportunity to arrive
at a mutually agreed solution within 30 days from the date of issue of the report failing which COTED
shall adopt the recommendations of the report.
3. If COTED is satisfied, based on the results of the investigation, that the subsidy in question is
a prohibited subsidy and that the concerned Member States cannot reach a mutually agreed solution, it
shall, subject to Article 104, require the offending Member State to withdraw the subsidy within a
specified time-frame. Where the offending Member State fails to comply, COTED shall authorise theaggrieved Member State to take counter-measures on the products which benefit from such a subsidy.
Article 104
Withdrawal Of Prohibited Subsidies
1. Notwithstanding the investigation confirming  the existence of a prohibited subsidy in
paragraph 3 of Article 103, COTED shall not impose a requirement for the Member States to
withdraw such a subsidy sooner than sp ecified in this paragraph as follows:
(a) with respect to subsidies contingent upon export performance:
(i) the Member States with per capita GNP of less than one thousand United
States dollars shall be allowed to maintain such subsidies; and
(ii) other Member States shall be allowed to maintain such subsidies until
1 January 2003;
(b) with respect to subsidies contingent upon the use of domestic over imported inputs,
the Member States with per capita GNP of less than one thousand United Statesdollars shall be allowed to maintain such subsidies until 2003.
2. Whenever the results of an investigation by COTED prove that the alleged subsidy is not a
prohibited subsidy, any provisional countervailing measures which might have been imposed shall be
promptly withdrawn and any bond or deposit which mi ght have been effected, released or refunded,
as the case may be. If the provisional measures referred to in this paragraph have materially retarded
the exports of the Member State which was wrongfully alleged to have introduced or maintained
prohibited subsidies, COTED shall, upon application from such a Member State, assess the effects ofthe provisionally applied measures and determine the nature and extent of compensation which is
warranted and recommend compensation in accordance with its assessment.
3. From the date of entry into force of this Treaty until the expiration of the dates mentioned in
paragraph 1, no provisional measures shall be imposed where it has been determined by preliminary
investigations that prohibited subsidies are maintained.WT/REG155/1
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Article 105
Subsidies Causing Injury, Nullification, Impairment Or Serious Prejudice
1. A Member State may take action against subsidised imports from any other Member State
where it can be established, based on an investigation, that the effect of the subsidy has been:
(a) injury to its domestic industry;
(b) nullification or impairment of benefits which it expects under this Treaty; or
(c) serious prejudice to its interests.
2. Serious prejudice shall be deemed to exist in the case where:
(a) the total ad valorem  subsidisation of a product exceeds 5 per cent;
(b) subsidies cover operating losses sustained by an industry;
(c) subsidies cover operating losses sustained by an enterprise, other than one-time
measures which are non-recurrent and cannot be repeated for that enterprise and
which are given merely to provide time for the development of long-term solutions
and to avoid acute social problems; or
(d) subsidies are granted in the form of forgiveness of government-held debt and
government grants to cover debt repayment.
3. Notwithstanding the provisions of this Article, serious prejudice shall not be found if the
Member State granting the subsidy in question demonstrates that the effect of the subsidy has not
been:
(a) to displace or impede the imports of like products from the Member State exporting
to the Member State which has introduced or maintains the subsidy;
(b) to displace or impede the exports of a like product from the affected exporting
Member State into the market of a third Member State;
(c) a significant price undercutting by the subsidised product as compared with the price
of a like product of another Member State in the same market or a significant pricesuppression or price depression;
(d) lost sales of another Member State in the same market; or
(e) an increase in its market share within the CSME.
4. The provisions of this Article shall not apply to Part Three.WT/REG155/1
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Article 106
Preliminary Investigation Of Subsidies Causing Injury, Nullification,
Impairment Or Serious Prejudice
1. An application for an investigation may be made in writing by or on behalf of a domestic
industry to the national authority where the industry has reason to believe that a subsidy referred to in
Article 105 has been granted or is maintained by another Member State and has caused injury, or
resulted in nullification, impairment or serious prejudice to its interests.
2. An application under paragraph 1 shall include sufficient information about the existence of a
subsidy and, if possible, its amount, injury and a causal link between the subsidised products and the
alleged injury.
3. An application to initiate an investigation shall be considered to have been made by or on
behalf of a domestic industry if it is supported by those domestic producers whose collective output
constitutes more than 50 per cent of the total production of the like product by that proportion of the
domestic industry expressing support for or opposition to the application. The investigation shall not
be initiated where the domestic producers expressly supporting the application account for less than25 per cent of the total production of the like product produced by the domestic industry.
4. Upon receipt of a request for such an investigat ion, the authority shall examine the application
and determine, on the basis of the facts available, whether to initiate an investigation. If the authority
decides to initiate an investigation, it shall issue a public notice to that effect, invite the concerned
Member State, other interested Member States and interested parties to submit required informationand comments.
5. An investigation initiated pursuant to paragr aph 1 shall be deemed to be a preliminary
investigation. The authority shall inform the concer ned Member State and all interested parties of the
results of the investigation.
6. For the purpose of this Part, "like product" shall be interpreted to mean a product which is
identical, i.e., alike in all respects to the product under consideration, or in the absence of such a
product, another product, which, although not alike in all respects, has characteristics closely
resembling those of the product under consideration.
Article 107
Request For Consultations Relating To Subsidies Causing Injury, Nullification,
Impairment Or Serious Prejudice
1. Whenever a Member State has reason to believe that a subsidy within the meaning of
Article 96 has been granted or is maintained by another Member State, and that imports from such a
Member State have resulted in any of the effects mentioned in paragraph 1(b) of Article 97, the first-
mentioned Member State may approach the Member State believed to be granting a subsidy with arequest for consultations.
2. A request for consultations shall include a statement of available evidence with regard to:
(a) the existence and nature of the subsidy; and
(b) the injury caused to the domestic industry; orWT/REG155/1
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(c) the impairment or nullification of benefits of exporting to other Member States in the
Community; or
(d) serious prejudice to its interests.
3. Upon receipt of a request for consultations under paragraph 1, the Member State believed to
be granting or maintaining the subsidy shall reply within 10 days, and shall furnish relevantinformation and enter into consultations within 30 days of the date of the request. The purpose of the
consultations shall be to clarify the facts relating to the existence, type and effect of the alleged
subsidy and to arrive at a mutually agreed solution.
Article 108
Reference To COTED To Investigate Subsidies Causing Injury, Nullification,
Impairment Or Serious Prejudice
1. If no mutually agreed solution is reached at the completion of 60 days from the date of request
for consultations, or on a date mutually agreed, the Member State requesting consultations may refer
the matter to COTED which shall in itiate an investigation, make a determination to resolve the
dispute and issue a report within 120 days of the date of the request for an investigation by theaggrieved Member State.
2. A decision by COTED to initiate an investigation shall not prevent the aggrieved Member
State from taking, on a provisional basis, countermeasures which shall not be sooner than 60 days
from the date of initiation of a preliminary investigation by the national authority to forestall or
prevent further adverse effects.
Article 109
Investigation By COTED Of Subsidies Causing Injury, Nullification,
Impairment Or Serious Prejudice
1. In order to arrive at a determination of the existence, degree and effect of subsidisation, and
remedial action which may be taken pursuant to the referral of a complaint of alleged subsidisation
mentioned in Article 108, COTED shall:
(a) carry out an investigation into the circumstances relating to the alleged grant or
maintenance of the subsidy by the offending Member State; the investigation is to be
completed within 120 days of the date of  receipt of a complaint regarding alleged
subsidisation by an offending Member State; and
(b) upon receipt of the report arising from the investigation, promptly make available the
report to the concerned Member States to facilitate consultation and to permit the
Member states concerned to arrive at a mutually acceptable solution.
Article 110
Consequences Of Failure To Remove Subsidies Causing Injury, Nullification,
Impairment Or Serious Prejudice
1. If no mutually acceptable solution is reached within 30 days of the date of issue of the report
by COTED, and COTED is satisfied:WT/REG155/1
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(a) of the existence of a subsidy within the meaning of Article 105; and
(b) that the subsidy has caused injury to the enterprise in the aggrieved Member State; or
(c) that the subsidy has impaired or nullified benefits expected of the aggrieved Member
State with respect to its exports to the Community; or
(d) that the effect of the subsidy was to seriously prejudice the interests of the Member
State,
then in such a case, COTED shall request the Me mber State which has granted or maintained the
subsidy to take appropriate steps to remedy the effects of the subsidy within six months of the date of
the issue of the report by COTED.
2. If, at the end of the period of six months al lowed by COTED to the Member State granting or
maintaining the subsidy to remedy the effects of th e subsidy, the Member State fails to comply and in
the absence of agreement on compensation COTED shall authorise the aggrieved Member State to
impose countervailing duties at a rate equivalent to the amount of subsidisation for such time and
under such conditions as COTED may prescribe.
Article 111
Types Of Subsidies Causing Serious Adverse Effects
1. The Member States shall not ordinarily impose or introduce countervailing duties or take
countermeasures on products which benefit from:
(a) subsidies which are not specific within the meaning of Article 97; or
(b) subsidies which are specific within the meaning of Article 97 but which satisfy all of
the conditions set out in this sub-paragraph hereunder:
(i) subsidies granted for research activities conducted by enterprises or by higher
education or research establishments on a contract basis with firms if the
assistance covers not more than 75 per cent of the costs of industrial researchor 50 per cent of the costs of pre-competitive development activity and
provided that such assistance is limited exclusively to:
(aa) costs of personnel (researchers, technicians and other supporting staff
employed exclusively in the research activity);
(bb) costs of instruments, equipment, land and buildings used exclusively
and permanently (except when disposed of on a commercial basis)for the research activity;
(cc) costs of consultancy and equivalent services used exclusively for the
research activity, including bought-in research, technical knowledge,
patents, etc.;
(dd) additional overhead costs incurred directly as a result of the research
activity;WT/REG155/1
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(ee) other running costs (such as those of materials, supplies and the like),
incurred directly as a result of the research activity.
(c) subsidies granted to assist disadvantaged regions within the territory of a Member
State given pursuant to a general framework of regional development and that arenon-specific within eligible regions provided that:
(i) each disadvantaged region must be a clearly designated contiguous
geographical area with a definable economic and administrative identify;
(ii) the Region is considered as disadvantaged on the basis of neutral and
objective criteria, indicating that the region's difficulties arise out of more
than temporary circumstances; such criteria must be clearly spelled out in
law, regulation, or other official document, so as to be capable of verification;
(iii) the criteria shall include a measurement of economic development which
shall be based on at least one of the following factors:
(aa) one of either income per capita or household income per capita, or
GDP per capita, which must not be above 85 per cent of the average
for the territory concerned;
(bb) unemployment rate, which must be at least 110 per cent of the
average for the territory concerned;
(d) subsidies granted to assist entities in the adaptation of existing facilities to new
environmental requirements imposed by law and/or regulations which result in
greater constraints and financial burden on enterprises provided that the subsidies:
(i) are a one-time non-recurring measure; and
(ii) are limited to 20 per cent of the cost of adaptation; and
(iii) do not cover the cost of replacing and operating the assisted investment,
which must be fully borne by firms; and
(iv) are directly linked to and proportionate to a firm's planned reduction of
nuisances and pollution, and do not cover any manufacturing cost savings
which may be achieved; and
(v) are available to all firms which can adopt the new equipment and/or
production processes.
(e) subsidies granted to assist enterprises to undertake training or retraining of
employees, whether or not the enterprise is new, and the upgrading of existing
facilities to facilitate transition to competitive status within the Community, provided
that such subsidies are not specific.
2. The Member States shall notify COTED of any subsidy mentioned in paragraph 1. Any
Member State may request further information regarding a notified subsidy programme and COTEDshall review annually all notified subsidies referred to in paragraph 1.WT/REG155/1
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Article 112
Preliminary Investigation Of Subsidies Causing Serious Adverse Effects
1. A domestic industry may submit to the competent authority an application for an investigation
to verify that serious adverse effects have been caused by imports which benefit from subsidies
referred to in Article 111.
2. Upon receipt of an application for an investigati on to verify adverse effects, the authority shall
examine the application, and, on the basis of the available facts, determine whether to initiate an
investigation.
3. The investigation referred to in paragraph 2 sh all be deemed a preliminary investigation. The
authority shall give public notice of its decision to initiate a preliminary investigation and theconcerned Member State, other interested Member States, and the interested persons shall all be
invited to provide relevant information and make comments.
4. The results of the preliminary investigation shall be made available to the concerned Member
State, other interested Member States and the interested persons to enable them to defend their
interests.
Article 113
Request For Consultations Relating To Subsidies Causing Serious Adverse Effects
1. Whenever a Member State has reason to believe that imports from another Member State
benefited from subsidies within the meaning of Article 111 and such imports have resulted in serious
adverse effects to a domestic industry so as to cause damage which would be difficult to repair, the
Member State aggrieved may request consultations with the Member State granting or maintaining the
subsidy.
2. The Member State alleged to be granting the subsidy which caused adverse effects shall reply
within 10 days of the date of the request for consultations and shall enter into the consultations
requested by the aggrieved Member State. If there is no mutual agreement within 60 days of the date
of the request for such consultations or on a later date which was mutually agreed or if the Member
State refuses to co-operate, the aggrieved Member State may refer the matter to COTED and request
COTED to carry out an investigation.
Article 114
Investigation By COTED Of Subsidies Causing Serious Adverse Effects
1. The referral of the matter to COTED for an in vestigation shall not prevent the aggrieved
Member State from imposing on a provisional basis not sooner than 60 days from the date of initiation
of the preliminary investigation referred to in Article 106, countermeasures to forestall or preventfurther adverse effects.
2. If COTED is satisfied that the investigation requested is justified, COTED shall carry out the
investigation, make a determination and issue a report within 120 days from the date when the request
was referred.
3. Where the results of the investigation carried out by COTED demonstrate that the subsidised
imports caused serious adverse effects to the domestic industry of the aggrieved Member StateWT/REG155/1
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requesting the investigation, COTED shall recommend that the offending Member State modify the
programme of subsidies in such a way as to remove the adverse effects complained of.
Article 115
Consequences Of Failure To Eliminate Or Establish Adverse Effects Of Subsidies
1. If the offending Member State fails to implement the recommendations of COTED within 6
months of the date of issue of the report referred to in paragraph 2 of Article 114, COTED shall
authorise the aggrieved Member State to impose appropriate countervailing duties commensurate with
the nature and degree of serious adverse effects determined to exist.
2. Whenever the results of an investigation by COTED prove that serious adverse effects have
not been caused by subsidised imports referred to in paragraph 1 of Article 111, the Member Statealleging that its domestic industry has suffered serious adverse effects shall promptly refund any
duties which might have been provisionally imposed and where such provisional duties had materially
retarded the exports of the Member State complained against, COTED shall, upon application from
such State, assess the effects of the provisionally applied duties and determine the nature and extent of
compensation which is warranted and require compensation in accordance with its assessment.
Article 116
Imposition Of Provisional Measures And Countervailing Duties
1. Notwithstanding anything to the contrary in this Chapter; a Member State aggrieved by the
application or maintenance of prohibited subsidies or by subsidies which cause injury, or result in
nullification, impairment, or serious prejudice, or cause serious adverse effects, as the case may be,
shall introduce provisional measures only on the basis of the following rules:
(a) Provisional measures may be applied only if:
(i) a preliminary investigation has been initiated in accordance with the
provisions of this Chapter; a public notice has been given to that effect and
interested persons have been given adequate opportunities to submit
information and make comments;
(ii) an affirmative preliminary determination has been made of the existence of a
prohibited subsidy, or a subsidy causing injury, nullification, impairment,
serious prejudice, or a subsidy causing serious adverse effects, as the case
may be;
(iii) consultations were requested and undertaken, COTED was notified and
requested to investigate and the authorities concerned judge such measures
necessary to prevent injury being caused during the investigation;
(b) Provisional measures may take the form of provisional countervailing duties
guaranteed by cash deposits or bonds equal to the amount of the subsidisationcalculated on a provisional basis;
(c) Provisional measures shall not be applied sooner than 60 days from the date of
initiation of the preliminary investigation;WT/REG155/1
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(d) The application of provisional measures shall be limited to as short a period as
possible, not exceeding 120 days.
2. Where investigations by COTED continue beyond the period allowed for the maintenance of
provisional measures under sub-paragraph 1 (d), the Member State imposing the measures may
continue with such measures until a definitive determination is made by COTED.
3. The Member States which are parties to an investigation to verify the existence and the effect
of alleged subsidisation, may seek or accept, as the case may be, undertakings from the Member State
alleged to have granted or to be maintaining a subsidy. Undertakings may take the form of:
(a) withdrawal, or limiting the amount of the subsidy to such an extent that injury,
nullification, impairment, serious prejudice or serious adverse effects, as the case may
be, are eliminated; or
(b) a guarantee from the exporter benefiting from the subsidy to raise his price to such an
extent that the injurious effect is eliminated.
4. If a Member State accepts a voluntary guarantee pursuant to sub-paragraph 3(b), then the
accepting Member State shall notify COTED and promptly suspend proceedings, and any provisional
measures which may have been imposed shall be withdrawn with immediate effect.
5. In the event that investigations to determin e subsidisation have been concluded and the
evidence proves injury, nullification, impairment or serious prejudice, or serious adverse effects, as
the case may be, a Member State may impose countervailing duties retroactively to account for the
entire period during which provisional measures have been in force. Such retroactively applied duties
shall take into account the definitively assessed countervailing duties and the amount guaranteed by
cash deposit or bond and:
(a) where the definitive countervailing duties are higher than the provisional duties, the
difference shall not be collected;
(b) where the definitive countervailing duties are lower than the provisional duties, the
excess of the deposit shall be refunded or the bond released promptly.
6. No Member State shall impose countervailing duties other than provisional countervailing
duties without prior authorisation from COTED and the determination and imposition of definitive
countervailing duties shall be governed by the relevant provisions of the WTO Agreement on
Subsidies and Countervailing Measures.
7. COTED shall keep under review all counter-measures imposed by the Member States and
shall ensure that the Member States observe the conditions and timetable for review and withdrawal
of counter-measures that it may have authorised.
8. The Member States undertake to co-operate in establishing harmonised legislation and
procedures in accordance with the provisions of this Chapter.WT/REG155/1
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PART FOUR: SUBSIDIES TO AGRICULTURE
Article 117
Definition
1. For the purpose of this Part, an agricultural subsidy means any form of domestic support,
financial or otherwise, including revenue foregone, provided by government or any public agency in
favour of the producers of a specific agricultural product or to the agricultural sector as a whole. This
includes:
(a) assistance provided by government or any public agency to foster agricultural and
rural development or to assist low income producers or producers with deficientresources;
(b) financial concessions granted by government or a public agency to offset the cost of
agricultural inputs or to encourage investments in agriculture;
(c) any other financial concession which has the effect of providing price or income
support to producers of agricultural products which is administered either throughdirect payments to the producers or processors  of an agricultural product or indirectly
through government or other publicly funded programmes;
(d) payments in kind to agricultural producers.
2. "Agricultural products" refers to the products listed in Annex IV.
Article 118
Rights
Having regard to the general use of subsidies in Member States to encourage agricultural and
rural development, to promote investments in agriculture generally and to assist low-income orresource-poor producers, Member States may grant subsidies to meet those objectives, consistently
with their obligations under international agreements and subject to the provisions of this Part.
Article 119
Obligations
1. Notwithstanding the right to grant subsidies indicated in Article 118, a Member State shall not
use such subsidies in a manner to distort the production of and intra-regional trade in the product or
products benefiting from such subsidies.
2. Accordingly, subsidies provided by a Member State to agriculture shall not involve transfers
from consumers, or direct payments to producers or processors which would have the effect ofproviding price support to producers.
3. Subsidies provided by a Member State to agriculture shall be made through publicly funded
programmes which benefit the agricultural sector generally, in areas such as research, training,
extension and advisory services, pest and disease control, inspection services, marketing and
promotion services and infrastructural services.WT/REG155/1
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4. Where a Member State makes direct payments of a subsidy to agricultural producers or
processors through such schemes as crop insurance, disaster relief income safety-net programmes,
regional assistance programmes and structural adjustment assistance programmes, the Member State
shall ensure that these payments, whether financial or otherwise, have no or minimal production and
trade distortion effect and do not constitute price support to producers of the product or productsbenefitting from the use of such schemes.
Article 120
Regulation
1. Any subsidy provided by a Member State in favour of the production of an agricultural
product entering regional trade, except for the provision of general services programmes or directpayments satisfying the conditions stated in Article 119, shall not exceed 10 per cent of the total value
of that Member State's annual production of such tradeable agricultural product in any one year.
2. Any subsidy provided by a Member State in fav our of agricultural producers or processors in
general, except for the provision of general services programmes or direct payments satisfying the
conditions stated in Article 119, shall not exceed 10 per cent of the total value of that Member State'sannual total agricultural output, in any one year.
3. Where a Member State provides a subsidy, except for the provision of general services
programmes or direct payments satisfying the conditions stated in Article 119, in excess of the levels
prescribed in paragraphs 1 and 2, such a subsidy shall be considered as a subsidy causing injury,
nullification, impairment or serious prejudice.
Article 121
Discipline
1. Each Member State shall ensure that any subsid y in favour of agricultural producers conforms
with the provisions of Article 119 and Article 120.
2. Any subsidy in favour of agricultural producers that cannot be shown to satisfy the provisions
in Article 119 and Article 120, shall be subject to the provisions of Article 106 to Article 110
inclusive.
3. A subsidies programme undertaken in conformity with the provisions of this Part shall be
subject to action based on Article 106 to 110 inclusive where a determination of injury or threat
thereof is made in accordance with the provisions of this Part.
4. In the determination of a threat of injury, the investigating authorities shall consider, inter
alia, such factors as:
(i) the nature of the subsidy or subsidies in question and the trade effects likely
to arise therefrom;
(ii) a significant rate of increase of subsidised imports into the domestic market
indicating the likelihood of substantially increased importations;
(iii) sufficient freely disposable or an imminent, substantial increase in capacity of
the exporter indicating the likelihood of substantially increased subsidisedWT/REG155/1
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exports to the importing country's market, taking into account the availability
of other export markets to absorb any additional exports;
(iv) whether imports are entering at prices that will have a significant depressing
or suppressing effect on domestic prices, and are likely to increase demand
for further imports;
(v) inventories of the product being investigated.
Article 122
Due Restraint
Where it has been determined that a subsidy cause s injury or threatens to cause such injury, in
accordance with the provisions of this Part, the aggrieved Member State shall exercise due restraint ininitiating any action in retaliation.
Article 123
Notification
1. The Member States shall notify COTED of any subsidy programme pursuant to Article 117
prior to implementation.
2. In addition to the notification to be submitted under this Article, any new subsidy or
modification of an existing measure shall be notified promptly. This notification shall contain detailsof the new or modified subsidy and its conformity with the agreed criteria as set out in Article 116 and
Article 120.
3. Any Member State may bring to the attention of COTED any measure which it considers
ought to have been notified by another Member State.
Article 124
Review
COTED shall undertake a review of the implementation of the provisions on subsidies to
agriculture on the basis of notifications of the subsidies programmes submitted by the Member States,
as well as on the basis of any other documentation which the COTED may request to be prepared to
facilitate its review.
PART FIVE: DUMPING
Article 125
Action Against Dumping
A Member State may take action against dumped imports if such imports cause injury or pose
a serious threat of injury to a domestic industry.WT/REG155/1
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Article 126
Determination Of Dumping
1. For the purpose of this Part, a product is to be considered to be a dumped import where it is
introduced into the commerce of another country at less than its normal value if the export price of the
product exported from one Member state to another Member State is less than the comparable price,
in the ordinary course of trade, for the like produc t when destined for consumption in the exporting
Member State.
2. When there are no sales of the like product in the ordinary course of trade in the domestic
market of the exporting country or when, because of the particular market situation or the low volume
of the sales in the domestic market of the exporting country, such sales do not permit a propercomparison, the margin of dumping shall be determined by comparison with a comparable price of
the like product when exported to an appropriate third country, provided that this price is
representative, or with the cost of production in the country of origin plus a reasonable amount for
administrative, selling and general costs and for profits.
3. In cases where there is no export price or where it appears to the authorities concerned that the
export price is unreliable because of association or a compensatory arrangement between the exporter
and importer or a third party, the export price may be constructed on the basis of the price at which
the imported products are first resold to an independent buyer, or if the products are not resold to an
independent buyer; or not resold in the condition as imported, on such reasonable basis as the
authorities may determine.
4. A fair comparison shall be made between the export price and the normal value. This
comparison shall be made at the same level of trade, normally at the ex-factory level, and in respect of
sales made at as nearly as possible the same time. Due allowance shall be made in each case, on its
merits, for differences which affect price comparability, including differences in conditions and terms
of sale, taxation, levels of trade, quantities, physical characteristics, and any other differences whichare also demonstrated to affect price comparability. In the cases referred to in paragraph 3, allowances
for costs, including duties and taxes incurred between importation and resale, and for profits accruing,
should also be made. If in these cases price comparability has been affected, the authorities shall
establish the normal value at a level of trade equivalent to the level of trade of the constructed export
price, or shall make due allowance as warranted under this paragraph. The authorities shall indicate to
the parties in question what information is necessary to ensure a fair comparison and shall not impose
an unreasonable burden of proof on those parties.
5. In the case where products are not imported directly from the country of origin but are
exported to the importing Member from an intermediate country, the price at which the products are
sold from the country of export to the importing Member shall normally be compared with the
comparable price in the country of export. However, comparison may be made with the price in the
country of origin, if for example, the products are merely transshipped through the country of export,or such products are not produced in the country of export, or there is no comparable price for them in
the country of export.
6. For the purpose of this Part, "like product" shall be interpreted to mean a product which is
identical, i.e., alike in all respects to the product under consideration, or in the absence of such a
product, another product, which, although not alike in all respects, has characteristics closelyresembling those of the product under consideration.WT/REG155/1
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Article 127
Determination Of Injury
1. For the purpose of this Part, injury shall, unless otherwise specified, be taken to mean material
injury to a domestic industry, threat of material injury to a domestic industry or material retardation of
the establishment of such an industry.
2. A determination of injury within the meaning of paragraph I shall be based on positive
evidence and involve an objective examination of:
(a) the volume of the dumped imports and the effect of such imports on prices in the
domestic market for like products; and
(b) the consequent impact of the dumped imports on domestic producers of such
products.
3. In making a determination regarding the existence of a threat of material injury, the competent
authorities shall consider, inter alia :
(a) a significant rate of increase of dumped imports into the domestic market indicating
the likelihood of substantially increased importation;
(b) sufficient freely disposable, or an imminent, substantial increase in, capacity of the
exporter indicating the likelihood of substantially increased dumped exports to the
importing Member's market taking into account the availability of other export
markets to absorb any additional exports;
(c) whether imports are entering at prices that will have a significant depressing or
suppressing effect on domestic prices, and would likely increase demand for further
imports; and
(d) inventories of the product being investigated.
Article 128
Definition Of Domestic Industry
For the purpose of this Part, the term "domestic industry" means "domestic industry" as
defined in Annex I.
Article 129
Initiation Of Preliminary Investigations
1. If a domestic industry in a Member State has reason to believe that it is being injured or faces
the threat of injury as a result of dumped imports, an application may be submitted in writing by the
industry or on its behalf by an association represen ting the industry or by employees employed by the
producers of the like product to the competent authority to initiate an investigation in order to verify
the existence of dumped imports and injury caused or the existence of a serious threat of injury as the
case may be.WT/REG155/1
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2. The application shall be considered to have been made by or on behalf of the domestic
industry if it is supported by those domestic producers whose collective output constitutes more than
50 per cent of the total production of the like product produced by that portion of the domestic
industry expressing either support for or opposition to the request. However, no investigation shall be
initiated when domestic producers expressly supporting the request account for less than 25 per centof total production of the like product produced by the domestic industry.
3. The authority shall examine the application and determine if an investigation is justified and if
it is satisfied, it shall issue a public notice to that effect and request the concerned Member State,
other interested Member States and the interested parties, all of which may be requested to and shall
be afforded an opportunity to provide required information and comments.
4. A decision by the authority to initiate an investigation shall be considered a decision to initiate
a preliminary investigation, the results of which shall be made available by a public notice.
5. Where a preliminary investigation provides sufficient evidence that dumped imports have
entered into the commerce of the Member State and such imports seriously threaten or have injured a
domestic industry, it may submit to the competent authority of the exporting Member State a request
for consultations which shall be notified to COTED.
6. The purpose of the request for consultations shall be to establish whether imports have been
dumped and injury has been caused or there is a serious threat of injury and if the injury or the serious
threat thereof is directly the result of dumped imports.
7. Interested parties who have been requested to provide information shall be allowed 30 days
from the date of submission of the application by or on behalf of a domestic industry under paragraph
2 to reply unless the authorities concerned agree to a later date.
8. For the purpose of this Part, "interested parties" shall include:
(a) an exporter or foreign producer or the importer of a product subject to investigation,
or a trade or business association, a majority of the members of which are producers,
exporters or importers of such product;
(b) the government of the exporting Member State; and
(c) a producer of the like product in the importing Member State or a trade and business
association, a majority of the members of which produce the like product in the
territory of the importing Member State.
9. A request for investigations to be undertaken by the competent authority of a Member State or
by COTED shall include but shall not necessarily be limited to the information indicated in the
Illustrative List set out in Annex 111(b). If however, an aggrieved Member State is satisfied that the
offending party had not made satisfactory efforts to afford consultations, to provide requested
information or otherwise unreasonably impede an investigation which has been initiated, the
competent authority of the Member State aggrieved may impose on a provisional basis anti-dumping
measures and may refer the request for investigation to COTED. A public notice of the imposition of
provisional anti-dumping measures shall be issued by the Member State which has imposed such
measures.WT/REG155/1
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Article 130
Provisional Measures
1. Provisional measures may be applied only if:
(a) an investigation has been initiated in accordance with the provisions of paragraph 4 of
Article 129, a public notice has been given to that effect and interested parties have
been given adequate opportunities to submit information and make comments;
(b) a preliminary affirmative determination has been made of dumping and consequent
injury to a domestic industry; and
(c) the authorities concerned judge such measures necessary to prevent injury being
caused during the investigation.
2. Provisional measures may take the form of a provisional duty or preferably, a security - by
cash deposit or bond - equal to the amount of the anti-dumping duty provisionally estimated, being
not greater than the provisionally estimated margin of dumping. Withholding of appraisement is an
appropriate provisional measure, provided that the normal duty and the estimated amount of the anti-
dumping duty be indicated and as long as the with holding of appraisement is subject to the same
conditions as other provisional measures.
3. Provisional measures shall not be applied sooner than 60 days from the date of initiation of
the investigation by a competent authority.
4. The application of provisional measures shall be limited to as short a period as possible, not
exceeding 120 days or, on decision of the authorities concerned, upon request by exportersrepresenting a significant percentage of the trade involved, to a period not exceeding 180 days. When
authorities, in the course of an investigatio n, examine whether a duty lower than the margin of
dumping would be sufficient to remove injury, these periods may be 180 and 270 days, respectively.
Article 131
Conduct Of Investigations Leading To Definitive Determination Of Injury
1. Whenever COTED receives a request for investigation, referred to it under paragraph 9 of
Article 126, COTED shall determine whether the information accompanying the request justifies the
continuation of investigations and if it is satisfied, cause an investigation to be completed within
12 months but not longer than 18 m onths after the date of receipt of the request. If COTED is not
satisfied that there is sufficient justification to ini tiate an investigation, it shall inform the applicant in
writing of its refusal to investigate.
2. Investigations initiated either by a competent authority of a Member State or undertaken by
COTED shall be terminated promptly whenever:
(a) the margin of dumping is determined to be less than two per cent; and
(b) the volume of dumped imports from a particular country is less than three per cent of
imports of the like product in the importing Member State, unless countries which
individually account for less than three per cent of the imports of the like product into
the importing Member State collectively account for more than seven per cent of the
imports of the like product in the importing Member State,WT/REG155/1
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and a public notice of the termination of investigations under this paragraph shall be made by the
Member State terminating investigations or by COTED, as the case may be.
3. The Member States recognise that an investigation into the circumstances of alleged dumping
based on a request by another Member State on behalf of a domestic industry will require the full co-operation of the competent authority and the parties alleged to be responsible for dumped imports, in
the Member State from which such imports originated, all of whom shall provide relevant information
in the time specified in this Article.
4. In the conduct of an investigation to determine the existence and effect of dumped imports,
competent authorities of the Member States and the parties concerned shall observe the rights of the
parties providing information with regard to confid entiality of any information provided and shall not
disclose any such information without the prior written approval of the parties providing the
information.
5. Where an industry within the CSME has suffered injury or faces the threat of serious injury
based on evidence of dumped imports by third States, the competent authority for requesting
investigation on behalf of the affected industry shall be COTED.
6. Nothing in this Article shall be construed so as to prevent an injured party or a Member State
from initiating and proceeding with an investigation into alleged dumping having regard to the rights
of such parties under international agreements to which they are signatories.
Article 132
Co-Operation By Competent Authorities And Interested Parties
1. Where an applicant for an investigation w ho receives information pursuant to dumping
investigations requires verification of the information, the competent authority and the parties alleged
to be responsible for dumped imports shall co-operate in allowing the applicant to carry out
verifications in the offending Member State.
2. The results of any investigations carried out by a competent authority of a Member State
aggrieved or by COTED shall be disclosed promptly to the competent authority and the parties
alleged to be responsible for dumped imports in the offending Member State. A public notice of the
conclusions of the investigations shall be issued by the Member State or by COTED, as the case may
be.
3. The purpose of the disclosure referred to in paragraph 2 shall be to present the facts of the
case and to allow the parties alleged to be responsible for the dumped imports to defend theirinterests.
Article 133
Imposition Of Anti-Dumping Measures
1. COTED shall, after consideration of the available evidence and having been satisfied of the
existence of dumped imports, injury caused by dumped imports or the threat of serious injury from
dumped imports, authorise the Member State aggrieved to take anti-dumping action:
(a) if the parties alleged to be responsible for dumped imports refuse to co-operate within
the time specified so as to frustrate or otherwise impede an investigation;WT/REG155/1
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(b) if there is a serious threat of injury or if injury has resulted.
2. In authorising the imposition of anti-dumping measures, COTED shall set the date, duration
and conditions for the imposition of the measures as the case may require.
3. Anti-dumping action taken pursuant to this Article, shall be based on the calculated margin of
dumping and may be applied as follows:
(a) if the evidence arising from definitive investigations of dumping proves the existence
of dumping and that injury was caused  by dumping, a Member State may impose
anti-dumping duties  sufficient to eliminate the margin of dumping. COTED may
authorise all affected Member States to impose similar anti-dumping duties for such
time and under such conditions as COTED may prescribe;
(b) in the imposition of anti-dumping duties, the Member States imposing the measure
shall not discriminate among the sources of all dumped imports based on country oforigin or nationality of the exporters;
(c) an exporter whose exports are the subject of anti-dumping duties may request at any
time the Member State imposing the duties to review the application of the duties
against the relevant exports;
(d) if an applicant for review of anti-dumping duties applied to exports mentioned in sub-
paragraph (c) is not satisfied that the competent authorities in the importing Member
States have given adequate consideration to the request for review within 30 days of
the receipt of the request, the applicant may refer the request to COTED which shall
recommend to the Member State maintaining the anti-dumping duty to take the
appropriate action if it is satisfied that the application for review is justified;
(e) in the event that investigations have been concluded and the evidence proves that
injury has been caused, a Member State may impose anti-dumping duties
retroactively to account for the entire period during which provisional anti-dumping
duties have been in force preceding the date of imposition of definitive anti- dumping
duties. If however, the definitive anti-dumping duties are higher than the provisionalduties paid or payable or the amount estimated for the purpose of security, the
difference shall not be collected. If the definitive duties are lower than the provisional
duties payable, or the amount estimated for the purpose of security, the difference
shall be reimbursed or the duties recalculated as the case may require;
(f) if however the investigations reveal that injury was not caused by dumped imports as
alleged, but the provisional measures have materially retarded exports of the Member
State complained against, COTED shall, upon application by such State, assess theeffects of the provisionally applied duties and determine the nature and extent of
compensation which is warranted and require the Member State applying provisional
measures to withdraw the measure and pay compensation in accordance with its
assessment;
(g) a Member State may accept a voluntary price guarantee from an exporter who is
believed to be exporting dumped products, to raise the price of the export sufficiently
to forestall a serious threat of injury or to eliminate injury caused by dumped imports;
(h) if a Member State has initiated investigations based on evidence of dumped imports
and the Member State had imposed provisional measures, the Member State may,WT/REG155/1
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upon the receipt of a voluntary guarantee from the exporter referred to in sub-
paragraph (g), promptly suspend the investigation and withdraw any provisional
measures it may have imposed as appropriate.
4. COTED shall keep under review all anti-dumping measures imposed by the Member States
and shall ensure that the Member States observe the conditions and the timetable for review andwithdrawal of anti-dumping measur es that it may have authorised.
5. The Member States undertake to co-operate in the establishment of harmonised anti-dumping
legislation and procedures in accordance with the provisions of this Protocol.
CHAPTER SIX: TRANSPORT POLICY
Article 134
Objectives Of The Community Transport Policy
1. The goal of the Community Transport Policy shall be the provision of adequate, safe and
internationally competitive transport services for the development and consolidation of the CSME.
2. In fulfilment of the goal set out in paragraph 1 of this Article, the Community shall pursue the
following objectives:
(a) the organisation of efficient, reliable, af fordable transport services throughout the
Community;
(b) the development and expansion of air and maritime transport capabilities in the
Community;
(c) the promotion of co-operative arrangements for the provision of transport services;
(d) the development of efficient internationally competitive ancillary transport services;
(e) the development of human resources for employment in all areas and at all levels of
the transport sector;
(f) the implementation of standards for the development of safe road, riverine, sea and
air transport services.
Article 135
Implementation Of Community Transport Policy
1. In order to achieve the objectives of the Community Transport Policy, COTED shall, in
collaboration with other Organs of the Community as appropriate, promote, inter alia :
(a) co-ordination of the national transport policies of the Member States;
(b) the implementation of uniform regulations and procedures, consistent with standards
and recommended practices, for the development of an efficient multi-modal
transport system, particularly in respect of operations, safety, licensing andcertification;WT/REG155/1
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(c) the development of required institutional, legal, technical, financial and
administrative support for the balanced, sustainable development of the transport
sector;
(d) the establishment of measures:
(i) to ensure that the development of the transport sector does not impact
adversely on the environment of the Member States and, in particular, the
Caribbean Sea;
(ii) for the acquisition and transfer of technology in the transport sector; and
(iii) for human resources development in accordance with Article 63;
(e) investment in the transport sector, including ancillary services supportive of the
sector through, for example, joint ventures;
(f) the removal of obstacles to the provision of transport services by nationals of the
Member States in accordance with the relevant provisions of Chapter Three.
2. COTED shall develop programmes to facilitate the achievement of the objectives set out in
Article 134.
3. The Member States shall co-ordinate their actions in order to secure the best terms and
conditions for the provision of transport services by service providers.
Article 136
Search And Rescue
1. COTED shall promote co-operation in air and maritime search and rescue operations in the
Community, bearing in mind such machinery as may ex ist for the overall co-ordination of search and
rescue services.
2. The Member States shall notify COTED of air and maritime equipment and facilities
available for use in search and rescue operations.
3. The Member States shall collaborate with third States and competent international
organisations in search and rescue operations.
Article 137
Intra-Community Transport Services
1. The Member States shall adopt uniform standards and recommended practices for the
provision of transport services.
2. The Member States shall notify COTED of legislative, regulatory or administrative measures
affecting the provision of transport services within their domestic jurisdictions where such measures
deviate from uniform standards and recommended practices.WT/REG155/1
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3. The Member States adversely affected by such regulatory or administrative measures may
notify COTED of such adverse effects, and shall have  recourse to the disputes settlement procedures
provided in the Treaty.
Article 138
Development Of Air Transport Services
1. The Member States shall co-operate in:
(a) the development of air transport services in the Community and towards this end may
conclude among themselves air transport agreements designed to facilitate the
provision of such services;
(b) establishing measures to ensure that the provision of international air transport
services in the Community is undertaken by financially viable and technically
qualified carriers and operators, and that the Community interest in safety, security
and economy of air travel is not prejudiced.
2. COTED shall promote co-operation among the Member States in the registration of aircraft
and the enforcement of applicable standards in the air transport industry.
3. The Member States shall co-operate in ensuring uniformity in licensing and certification
procedures and equivalencies within the Community for aviation personnel in conformity with
international standards.
4. COTED shall promote co-operation among operators of air transport services of the Member
States particularly in purchasing of equipment and supplies, the management of inventories, interlineand inter-modal operations, code sharing, reservations, insurance, leasing and similar operations.
Article 139
Aircraft Accident And Incident Investigation
1. The Member States undertake to conduct effective and comprehensive investigations into
aircraft accidents and incidents with a view to enhancing the technical conditions for the safe delivery
of air transport services.
2. The Member States shall, to the extent practicable, make available appropriate equipment,
facilities and personnel to assist in the investigation of aircraft accidents or incidents which occur
within the Community and take effective measures to protect the property of victims, relevant
evidence and the crash site from interference and unauthorised entry.
3. The Member States shall collaborate with third States and competent international
organisations in the conduct of aircraft accident investigations.
Article 140
Development Of Maritime Transport Services
1. The Member States shall co-operate in the development of maritime transport services in the
Community. In particular, the Member States shall co-operate in:WT/REG155/1
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(a) enhancing flag and port State control activities in the Region;
(b) developing and providing expertise in the shipping industry, including the necessary
services and infrastructure necessary for the growth of the shipping sector;
(c) protecting the marine environment from the effects of vessel source pollution and in
combating the effects of such pollution; and
(d) taking any other action necessary for the sustainable development of the shipping
sector.
2. The Community shall co-operate with competent national, regional and international
organisations in establishing conditions for the provision of efficient and affordable maritime
transport services among the Member States.
3. COTED shall promote co-operation among the Member States in the implementation of
relevant international maritime instruments relating to maritime safety, marine environmentalprotection, maritime accident investigation and the facilitation of maritime traffic.
4. COTED shall promote and co-ordinate the developm ent of maritime transport services in the
Community through, inter alia :
(a) the development of proposals for the establishment and upgrade of small vessel
enterprises in the Community;
(b) the establishment of a regime of incentives to encourage the development of shipping
enterprises in the Community;
(c) measures for the establishment, improvement and rationalisation of port facilities in
the Community, to respond to the demands of containerisation, refrigeration and
storage of agricultural commodities, nautical and cruise tourism and other special anddedicated services;
(d) co-operation and regular interchange among administrations to promote a harmonised
system for the development of maritime transport in the Community;
(e) promotion of joint ventures among Community nationals and with extra-regional
shipping enterprises to facilitate the transfer of appropriate technology and increasethe participation of the Member States in international shipping;
(f) the organisation and harmonisation of training programmes within the Community,
the strengthening of the capabilities of training institutions and the ease of access of
Community nationals to all aspects of training and development in the shipping
industry; and
(g) measures for the development of ancillary services in the shipping industry, including
non-vessel operating common carriers, marine insurance, freight forwarding,transshipment and other services.
5. The Member States shall promote the developm ent of maritime transport services in the
Community through, inter alia :
(a) the establishment and improvement of port facilities;WT/REG155/1
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(b) the establishment of effective maritime administrations for the regulation of shipping
in the respective jurisdictions of maritime safety and marine environmental
protection;
(c) the implementation of relevant internatio nal maritime instruments related to the
safety of shipping and the prevention of vessel source pollution; and
(d) encouraging improved efficiency in ports and in related services to reduce maritime
transportation costs.
Article 141
Special Status Of The Caribbean Sea
The Member States shall co-operate in achiev ing international recognition for the Caribbean
Sea as a Special Area requiring protection from the potentially harmful effects of the transit of nuclear
and other hazardous wastes, dumping, pollution by oil or by any other substance carried by sea or
wastes generated through the conduct of ship operations.
CHAPTER SEVEN: DISADVANTAGED COUNTRIES, REGIONS AND SECTORS
PART ONE: PRELIMINARY
Article 142
Scope Of Application
1. The provisions of this Chapter shall have effect for the purpose of establishing a regime for
disadvantaged countries, regions or sectors within the framework of the Treaty as well as a specialregime for the Less Developed Countries in order to enhance their prospects for successful
competition within the Community, and redress, to the extent possible, any negative impact of the
establishment of the CSME.
2. As soon as practicable after the entry into force of this Treaty, the Conference shall, on the
recommendation of the Community Council and in accordance with Article 1, designate
disadvantaged countries, regions and sectors and may, from time to time, make such further
designations or terminate such designations as circumstances warrant.
3. Wherever in this Treaty reference is made to disadvantaged countries, regions and sectors or
to the Less Developed Countries, the Organs of the Community shall take the measures required to
give effect to the spirit and intent of this Chapter.
Article 143
Objective Of The Regimes
1. The objective of the regimes mentioned in Article 142 is to assist the disadvantaged countries,
regions and sectors towards becoming economically viable and competitive by appropriate
interventions of a transitional or temporary nature.
2. The interventions referred to in paragraph 1 of this Article may include:WT/REG155/1
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(a) technical and financial assistance to address economic dislocation arising from the
operation of the CSME;
(b) special measures to attract investment and industries;
(c) transitional or temporary arrangements to ameliorate or arrest adverse economic and
social impact arising from the operation of the CSME;
(d) special measures to assist industries to become efficient and competitive;
(e) assistance intended to achieve structural diversification and infrastructural
development;
(f) assistance to economic enterprises disadvantaged by the removal of intraregional
barriers;
(g) the establishment of mechanisms to monitor, and assist in the discharge of obligations
assumed under the Treaty and other international trade agreements.
Article 144
Implementation Of Measures
Subject to the authority of the Conference, COTED and COFAP, as appropriate, shall
establish, administer and monitor the measures identified in Article 143.
Article 145
Review Of Measures
1. The Community Council shall review, as appropri ate, the effectiveness of measures taken
pursuant to this Chapter and take such action as may be necessary to achieve the objective set out in
Article 143, and shall submit a report thereon to the Conference.
2. The review shall include an examination of relevant programmes and support measures in
order to determine their efficacy as a basis for their termination or modification as the case may be.
PART TWO: REGIME FOR DISADVANTAGED COUNTRIES, REGIONS AND SECTORS
Article 146
Measures To Redress Disadvantage Arising From Economic Dislocation
1. The Member States agree that where economic dislocation arising from the operation of the
CSME occurs, and notwithstanding any provisions to the contrary in this Treaty, COTED may, as the
case may require on a temporary basis and subject to Article 144, adopt effective measures to arrest or
mitigate adverse effects on economic activity. Such measures may include the grant of incentives toaddress the dislocation and shall be without prejudice to any incentives provided for in Articles 52
and 69.WT/REG155/1
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2. Notwithstanding any provisions to the contrary in this Treaty, the measures mentioned in this
Article may, where necessary, provide for temporary derogations from rights and obligations set out
in the Treaty.
3. COTED shall periodically examine the impact of the measures mentioned in paragraph 2 with
a view to determining their adequacy and establishing a time-frame for their discontinuance.
4. The Member States shall co-operate with the Community Organs in implementing the
measures mentioned in paragraph 2 of this Article and shall take the action required to secure
compliance therewith.
Article 147
Promotion Of Investment
COFAP shall promote investment in disadvantaged countries by, inter alia , facilitating:
(a) the establishment of joint ventures among nationals of disadvantaged countries as
well as between nationals of disadvantaged countries and nationals of other Member
States;
(b) the establishment of joint ventures between nationals of disadvantaged countries and
nationals of third countries;
(c) investment for economic diversification including diversification of the agricultural
sector;
(d) research, development and the transfer of technology in the development of
disadvantaged countries; and
(e) capital flows from other Member States to disadvantaged countries through the
conclusion of double taxation agreements and appropriate policy instruments.
Article 148
Measures Relating To The Services Sector
1. COTED, in establishing the programme for removal of restrictions by Member States on the
provision of services in the Community mentioned in paragraph 2 of Article 37 shall give due
consideration to the peculiar economic vulnerability of disadvantaged countries, bearing in mind
Article 49.
2. Without prejudice to the generality of the provisions set out in paragraph 1 of this Article,
COTED shall, in establishing the said programme,  determine in respect of disadvantaged countries:
(a) a list of services in respect of which national treatment may not be applied for a
specified period of time;
(b) the manner in which restrictions on services not mentioned in sub-paragraph (a) of
this paragraph shall be removed:WT/REG155/1
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Provided that such disadvantaged countries shall accord the Member States rights no more restrictive
than those accorded to other parties of the WTO under the General Agreement on Trade in Services
(GATS).
Article 149
Measures Relating To The Right Of Establishment
1. COTED shall take appropriate measures to ensure that, in establishing the programme for the
removal of restrictions by the Member States on the right of establishment in the Community
mentioned in paragraph 3 of Article 33, the peculiar economic vulnerability of disadvantaged
countries in the Community is taken into account, bearing in mind Article 49.
2. Without prejudice to the generality of the provisions of paragraph 1 of this Article, COTED
shall, in establishing the said programme, determine in respect of disadvantaged countries:
(a) a list of economic activities in respect of which national treatment may not be
accorded to persons exercising the right of establishment for a specified period of
time;
(b) the manner in which restrictions on the right of establishment in respect of economic
activities not mentioned in sub-paragraph (a) of this paragraph shall be removed:
Provided that such disadvantaged countries shall accord to the Member States rights of establishment
no more restrictive than those accorded to third States.
Article 150
Safeguard Measures
1. Where, in accordance with paragraph 1 of Article 92, a disadvantaged country establishes an
entitlement to limit imports of goods from other Member States, then, notwithstanding any other
provisions to the contrary in this Treaty, the disadvantaged country may limit such imports for a
period of up to three (3) years unless COTED authorises the limitation for a longer period and take
such other measures as COTED may authorise.
2. A disadvantaged country applying restrictions in accordance with paragraph 1 of this Article
shall notify them to COTED, if possible, before  they come into force. COTED may, at any time,
consider those restrictions and shall, in light of such consideration, make recommendations designedto moderate any damaging effect of such restrictions or to assist the disadvantaged country to
overcome its difficulties.
3. Nothing in this Treaty shall be construed as entitling any Member State to apply safeguard
measures against the products of Community origin of a disadvantaged country where such products
do not exceed 20 per cent of the market of the importing Member State.
Article 151
Support For Sensitive Industries
1. COTED may authorise a Member State having a sensitive industry which can be
disadvantaged by the operation of the CSME to suspend Community treatment to products of other
Member States.WT/REG155/1
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2. The suspension authorised in paragraph 1 of this Article shall be granted upon application to
COTED in that behalf where the applicant establishes that the product is from a sensitive industry.
3. For the purpose of this Article, an industry may be considered to be sensitive by reason of its
vulnerable nature and:
(a) the significance of its contribution to, inter alia :
(i) Gross Domestic Product;
(ii) employment;
(iii) foreign exchange earnings; or
(b) its designation as vital within the national industrial policy.
4. Notwithstanding any other provisions of this Treaty, a disadvantaged country may, for the
period of suspension decided upon by COTED, suspend Community treatment in respect of imports
of like description from the Member State granted the suspension.
5. COTED, in authorising the suspension mentioned in paragraph 1 of this Article may impose
terms and conditions for the grant of the suspension.
6. COTED shall monitor the progress of the industry concerned and undertake a periodic review.
Article 152
Public Undertakings
Notwithstanding any provisions to the contrary in this Treaty, disadvantaged countries may,
with the prior approval of COTED, maintain, in resp ect of public undertakings, measures, the effect of
which is to afford support to domestic production where such measures are in the form of:
(a) a duty or charge having equivalent effect; or
(b) quantitative restrictions.
Article 153
Use Of Technological And Research Facilities In Member States
1. The Member States undertake to provide opportunities for access to their technological and
research facilities by nationals of disadvantaged countries.
2. COTED shall encourage close collaboration between research institutions and facilities
located in disadvantaged countries with others located in other Member States.
Article 154
Promotion Of Development
1. COTED shall promote the establishment of infrastructure in a disadvantaged country, region
or sector to encourage or stimulate economic activity.WT/REG155/1
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2. COTED may also adopt measures for the establishment of new industries or for the retooling
or expansion of existing industries in a disadvantaged country, region or sector.
Article 155
Special Provisions For Guyana
Notwithstanding any provisions to the contrary in this Treaty, Guyana shall be allowed, for as
long as it continues to benefit from wheat imports under PL 480 Agreements with the United States of
America, to impose quantitative restrictions on the importation of wheat flour.
Article 156
Application Of The Special Regime To Highly- Indebted Poor Countries
COTED shall to the extent necessary and for a period to be determined, apply the provisions
of the Special Regime for the less developed countries to Highly-lndebted Poor Countries.
Article 157
Technical And Financial Assistance
1. As soon as practicable after the entry into fo rce of this Treaty, the Community Council shall,
in collaboration with other competent Organs of the Community, make adequate arrangements to
extend to disadvantaged countries, regions and sectors such technical and financial assistance as may
be required to allow them to participate effectively in the GSME and to administer international trade
agreements.
2. Pursuant to paragraph 1 of this Article, COTED shall evaluate the need for technical and
financial assistance to disadvantaged countries, regions and sectors, and promote and facilitate
appropriate programmes and projects. Such assistance may include:
(a) grants or access to low-cost financing;
(b) preparation of project proposals for financing;
(c) performance guarantees and other guarantees to enterprises;
(d) accessing technology including information technology;
(e) product design or quality enhancement;
(f) factory design and market development.
3. Technical assistance within the meaning of this Article may also include:
(a) assistance to establish or upgrade national standardising bodies;
(b) assistance to countries to advance their diversification programmes;
(c) professional assistance in meeting obligations under trade-related agreements;WT/REG155/1
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(d) assistance to establish institutions or centres for the training or retraining of
employees as the case may require;
(e) provision of relevant expertise to formulate a legal policy framework conducive to
fair trading and fair competition;
(f) professional expertise in espousing and defending claims arising in connection with
the WTO Agreement and other trade-related agreements;
(g) professional assistance in preparing for disputes resolution arising in connection with
trade-related agreements;
(h) professional assistance in preparing legislation.
4. The evaluation mentioned in paragraph 2 of this Article may be undertaken by COTED on its
own initiative, or in response to an application for assistance issuing from a Member State.
5. COTED shall, from time to time, examine the impact of the measures mentioned in
paragraph 2 with a view to determining their ad equacy and establishing a time-frame for their
discontinuance.
Article 158
The Development Fund
1. There is hereby established a Development Fund for the purpose of providing financial or
technical assistance to disadvantaged countries, regions and sectors.
2. Subject to the provisions of this Article and relevant provisions of this Treaty, the Community
Council, in collaboration with COFAP, shall:
(a) determine the status, composition and functions of the Development Fund;
(b) determine the contributions of the Member States to the Development Fund.
3. The Development Fund may accept subventions from public or private sector entities of the
Member States or from other entities external to the Community. Subventions shall not be accepted
nor applied by the Development Fund on conditions which discriminate against Member States,regions or sectors except in accordance with the provisions of this Treaty.
Article 159
Saving
Nothing in this Chapter shall be construed as disentitling a disadvantaged country, region or
sector, being the beneficiary of any other technical assistance programme, from simultaneouslybenefiting from technical assistance pursuant to the provisions herein set forth.WT/REG155/1
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PART THREE: SPECIAL REGIME FOR LESS DEVELOPED COUNTRIES
Article 160
Import Duties
Where a less developed country has suffered or is likely to suffer loss of revenue as a result of
the importation of goods eligible for Community treatment, COTED may, on application made in that
behalf by the less developed country, authorise the imposition of import duties on such goods for such
time and on such terms and conditions as COTED may decide.
Article 161
Community Origin
The Member States agree that in the determination and operation of the criterion of
substantial transformation pursuant to Article 84, the special needs of the less developed countriesshall be taken into account.
Article 162
Incentive Regimes
The Member States agree that in the establishment of any programme for incentives in the
Community provided for in Article 52 and Article 69, the special needs of the less developed
countries shall be taken into account.
Article 163
The Common External Tariff
The Member States agree that in the implementation of the Common External Tariff provided
for in Article 82, the special needs of the less developed countries shall be taken into account.
Article 164
Promotion Of Industrial Development
1. Upon application made in that behalf by the less developed countries, COTED may, if
necessary, as a temporary measure in order to promote the development of an industry in any of these
States, authorise such States to suspend Community origin treatment to any description of imports
eligible therefor on grounds of production in one or more less developed countries.
2. COTED may, in taking decisions pursuant to paragraph 1 of this Article, establish terms and
conditions including a phasing-out period during which Member States and the Community shallprovide support measures and the industry implement the necessary programmes for achieving
competitiveness.
3. The grant of authorisation pursuant to paragraph 1 of this Article shall be by means of a
decision supported by the affirmative votes of all the less developed countries and at least two of the
more developed countries.WT/REG155/1
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Article 165
Public Undertakings
Paragraph 1 of Article 94 hall not apply to the less developed countries.
Article 166
Use Of Technological And Research Facilities
The more developed countries undertake to provide opportunities for the use of their
technological and research facilities by the less developed countries.
Article 167
Special Provisions For Belize
Belize shall be allowed to impose import duties or quantitative restrictions on beer and
cigarettes produced in the Community for a period ending 31 December 2000.
CHAPTER EIGHT: COMPETITION POLICY AND CONSUMER PROTECTION
PART ONE: RULES OF COMPETITION
Article 168
Scope Of Chapter
The rules of competition shall not apply to:
(a) combinations or activities of employees for their own reasonable protection as
employees;
(b) arrangements for collective bargaining on behalf of employers or employees for the
purpose of fixing terms and conditions of employment;
(c) business conduct within the meaning of Article 177 duly notified to COTED in
accordance with Article 170;
(d) negative clearance rulings within the meaning of Article 180 or exemptions within
the meaning of Articles 181 and 183;
(e) activities of professional associations designed to develop or enforce professional
standards of competence reasonably necessary for the protection of the public and
approved by the Commission.
Article 169
Objectives Of Community Competition Policy
1. The goal of the Community Competition Policy shall be to ensure that the benefits expected
from the establishment of the CSME are not frustrated by anti-competitive business conduct.WT/REG155/1
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2. In fulfilment of the goal set out in paragraph 1 of this Article, the Community shall pursue the
following objectives:
(a) the promotion and maintenance of competition and enhancement of economic
efficiency in production, trade and commerce;
(b) subject to this Treaty, the prohibition of anti-competitive business conduct which
prevents, restricts or distorts competition or which constitutes the abuse of a dominant
position in the market; and
(c) the promotion of consumer welfare and protection of consumer interests.
Article 170
Implementation Of Community Competition Policy
1. In order to achieve the objectives of the Community Competition Policy,
(a) the Community shall:
(i) subject to Articles 164, 177, 178 and 179 of this Treaty, establish appropriate
norms and institutional arrangements to prohibit and penalise anti-
competitive business conduct; and
(ii) establish and maintain information systems to enable enterprises and
consumers to be kept informed about the operation of markets within the
CSME;
(b) the Member States shall:
(i) take the necessary legislative measures to ensure consistency and compliance
with the rules of competition and provide penalties for anti-competitive
business conduct;
(ii) provide for the dissemination of relevant information to facilitate consumer
choice;
(iii) establish and maintain institutional arrangements and administrative
procedures to enforce competition laws; and
(iv) take effective measures to ensure access by nationals of other Member States
to competent enforcement authorities including the courts on an equitable,
transparent and non-discriminatory basis.
2. Every Member State shall establish and maintain a national competition authority for the
purpose of facilitating the implementation of the rules of competition.
3. Every Member State shall require its national competition authority to:
(a) co-operate with the Commission in achieving compliance with the rules of
competition;WT/REG155/1
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(b) investigate any allegations of anti-competitive business conduct referred to the
authority by the Commission or another Member State;
(c) co-operate with other national competition authorities in the detection and prevention
of anti-competitive business conduct, and the exchange of information relating to
such conduct.
4. Nothing in this Article shall be construed as requiring a Member State to disclose confidential
information, the disclosure of which would be prejudicial to the public interest or to the legitimate
commercial interests of enterprises, public or private. Confidential or proprietary information
disclosed in the course of an investigation shall be treated on the same basis as that on which it was
provided.
5. Within 24 months of the entry into force of this Treaty, the Member States shall notify
COTED of existing legislation, agreements and ad ministrative practices inconsistent with the
provisions of this Chapter. Within 36 months of entry into force of this Treaty, COTED shall establish
a programme providing for the repeal of such legislation, and termination of agreements and
administrative practices.
Article 171
Establishment Of The Competition Commission
For the purposes of implementation of the Community Competition Policy, there is hereby
established a Competition Commission (hereina fter called "the Commission") having the
composition, functions and powers hereinafter set forth.
Article 172
Composition Of The Commission
1. The Commission shall comprise seven members appointed by the Regional Judicial and Legal
Services Commission to serve on the Commission.  The Regional Judicial and Legal Services
Commission shall appoint a Chairman from among the members so appointed.
2. The Commission shall comprise persons, collectively having expertise or experience in
commerce, finance, economics, law, competition policy and practice, international trade and such
other areas of expertise or experience as may be necessary.
3. A Commissioner shall be appointed for a term of five years and such appointment may be
renewed for a further period of not more than five years as determined by the Regional Judicial and
Legal Services Commission.
4. A Commissioner may be removed from office only for inability to perform the functions of
his office or for misbehaviour and shall otherwise be subject to the disciplinary procedures of the
Regional Judicial and Legal Services Commission.
5. A Commissioner shall be removed only on the vote of the Judicial and Legal Services
Commission that represents not less than three-quarters of all the Members of the Commission.
6. A Commissioner may at any time resign the office of Commissioner by writing under his
hand addressed to the Chairman of the Judicial and Legal Services Commission.WT/REG155/1
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7. A Commissioner shall not enter upon the duties of the office unless he has taken and
subscribed before the Chairman of the Judicial and Legal Services Commission, the Oath of Office set
out in the Annex to this Treaty.
8. Notwithstanding the foregoing provisions of this Article, the Conference shall on the
recommendation of COTED execute the functions required to be carried out by the Regional Judicialand Legal Services Commission where the Parties to the Agreement Establishing the Caribbean Court
of Justice are less than seven.
Article 173
Functions Of The Commission
1. The Commission shall:
(a) apply the rules of competition in respect of anti-competitive cross-border business
conduct;
(b) promote and protect competition in the Community and co-ordinate the
implementation of the Community Competition Policy; and
(c) perform any other function conferred on it by any competent body of the Community.
2. In discharging the functions set out in paragraph 1, the Commission shall:
(a) monitor anti-competitive practices of enterprises operating in the CSME, and
investigate and arbitrate cross-border disputes;
(b) keep the Community Competition Policy under review and advise and make
recommendations to COTED to enhance its effectiveness;
(c) promote the establishment of institutions and the development and implementation of
harmonised competition laws and practices by the Member States to achieve
uniformity in the administration of applicable rules;
(d) review the progress made by the Member States in the implementation of the legal
and institutional framework for enforcement;
(e) co-operate with competent authorities in the Member States;
(f) provide support to the Member States in promoting and protecting consumer welfare;
(g) facilitate the exchange of relevant information and expertise; and
(h) develop and disseminate information about competition policy, and consumer
protection policy.
3. The Commission may, by directions in writing and subject to such conditions as it thinks fit,
delegate any of its functions to one or more of its members.WT/REG155/1
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Article 174
Powers Of The Commission
1. Subject to Articles 175 and 176, the Commission may, in respect of cross-border transactions
or transactions with cross-border effects, monitor,  investigate, detect, make determinations or take
action to inhibit and penalise enterprises whose business conduct prejudices trade or prevents, restricts
or distorts competition within the CSME.
2. The Commission may, in accordance with applicable national laws, in the conduct of its
investigations:
(a) secure the attendance of any person before it to give evidence;
(b) require the discovery or production of any document or part thereof; and
(c) take such other action as may be necessary in furtherance of the investigation.
3. The Commission may, on the basis of its investigations, make determinations regarding the
compatibility of business conduct with the rules of competition and other related provisions of the
Treaty.
4. The Commission shall, to the extent required to remedy or penalise anti-competitive business
conduct referred to in Article 177:
(a) order the termination or nullification as the case may require, of agreements, conduct,
activities or decisions prohibited by Article 170;
(b) direct the enterprise to cease and desist from anti-competitive business conduct and to
take such steps as are necessary to overcome the effects of abuse of its dominantposition in the market, or any other business conduct inconsistent with the principles
of fair competition set out in this Chapter;
(c) order payment of compensation to persons affected; and
(d) impose fines for breaches of the rules of competition.
5. The Commission may enter into such arrangements for the provision of services as may be
necessary for the efficient performance of its functions.
6. The Member States shall enact legislation to ensure that determinations of the Commission
are enforceable in their jurisdictions.
7. The Commission may establish its own rules of procedure.
Article 175
Determination Of Anti-Competitive Business Conduct: Procedure Of Commission On Request
1. A Member State may request an investigation referred to in paragraph 1 of Article 174 where
it has reason to believe that business conduct by an enterprise located in another Member State
prejudices trade and prevents, restricts or distorts competition in the territory of the requesting
Member State.WT/REG155/1
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2. Where COTED has reason to believe that business conduct by an enterprise in the CSME
prejudices trade and prevents, restricts or distorts competition within the CSME and has or is likely to
have cross-border effects, COTED may request an investigation referred to in paragraph 1 of
Article 174.
3. Requests under paragraphs 1 and 2 shall be in writing and shall disclose sufficient information
for the Commission to make a preliminary assessment whether it should proceed with the
investigation.
4. Upon receipt of a request mentioned in paragraph 3, the Commission shall consult with the
interested parties and shall determine on the basis of such consultations whether:
(a) the investigation is within the jurisdiction of the Commission; and
(b) the investigation is justified in all the circumstances of the case.
5. The consultations shall be concluded within 30 days of the date of receipt of the request for
the investigation, unless the parties agree to continue the consultations for a longer period.
6. Where the Commission decides to conduct the investigation, the Commission shall:
(a) notify the interested parties and COTED;
(b) complete the investigation within 120 days from the date of receipt of the request for
the investigation; and
(c) where the circumstances so warrant, extend the time period for completion of the
investigation and notify the interested parties.
7. Where the Commission decides to conduct an enquiry following an investigation, the
Commission shall afford any party complained of the opportunity to defend its interest.
8. At the conclusion of an enquiry, the Commission shall notify the interested parties of its
determination.
9. Where the Commission determines that a party has engaged in anti-competitive business
conduct, it shall also require the party to take the action necessary to remove the effects of the anti-
competitive business conduct.
10. Where a specific course of action is required under paragraph 9, the enterprise concerned shall
take the appropriate course of action within 30 days of the date of notification. If the concerned
enterprise cannot comply, it shall notify the Commission and request an extension.
11. If the enterprise cannot comply within the ti me period specified and fails to inform the
Commission, the Commission may apply to the Court for an order.
12. A party which is aggrieved by a determination of the Commission under paragraph 4 of
Article 174 in any matter may apply to the Co urt for a review of that determination.WT/REG155/1
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Article 176
Determination Of Anti-Competitive Business Conduct: Procedure Of Commission Proprio Motu
1. Where the Commission has reason to believe that business conduct by an enterprise in the
CSME prejudices trade and prevents, restricts, or distorts competition within the CSME and has
cross-border effects, the Commission shall request the national competition authority to undertake a
preliminary examination of the business conduct of the enterprise.
2. Where a request is made under paragraph 1, the national competition authority shall examine
the matter and report its findings to the Commission within such time as may be determined by the
Commission.
3. Where the Commission is not satisfied with the outcome of its request, the Commission may
initiate its own preliminary examin ation into the business conduct of the enterprise referred to in
paragraph 1.
4. Where the findings of the preliminary examination under paragraphs 2 and 3 require
investigation, the Commission and the Member State concerned shall hold consultations to determine
and agree on who should have jurisdiction to investigate.
5. If there is a difference of opinion between the Commission and the Member State regarding
the nature and effects of the business conduct or the jurisdiction of the investigating authority, the
Commission shall:
(a) cease any further examination of the matter; and
(b) refer the matter to COTED for its decision.
6. Nothing in this Article shall prejudice the righ t of the Member State to initiate proceedings
before the Court at any time.
7. Where there is a finding that the Commission has jurisdiction to investigate the matter, the
Commission shall follow the procedures set out in paragraphs 5, 6, 7 and 8 of Article 175.
Article 177
Prohibition Of Anti-Competitive Business Conduct
1. A Member State shall, within its jurisdiction, prohibit as being anti-competitive business
conduct, the following:
(a) agreements between enterprises, decisions by associations of enterprises, and
concerted practices by enterprises which have as their object or effect the prevention,restriction or distortion of competition within the Community;
(b) actions by which an enterprise abuses its dominant position within the Community; or
(c) any other like conduct by enterprises whose object or effect is to frustrate the benefits
expected from the establishment of the CSME.
2. Anti-competitive business conduct within the meaning of paragraph 1 includes the following:WT/REG155/1
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(a) the direct or indirect fixing of purchase or selling prices,
(b) the limitation or control of production, markets, investment or technical development;
(c) the artificial dividing up of markets or restriction of supply sources;
(d) the application of unequal conditions to parties undertaking equivalent engagements
in commercial transactions thereby causing a competitive disadvantage;
(e) making the conclusion of a contract subject to the acceptance by the other party to the
contract of additional obligations which, by their nature or according to commercial
practice, have no connection with the subject matter of the contract;
(f) unauthorised denial of access to networks or essential infrastructure;
(g) predatory pricing;
(h) price discrimination;
(i) loyalty discounts or concessions;
(j) exclusionary vertical restrictions; and
(k) bid-rigging.
3. Subject to Article 168, a Member State shall ensure that all agreements and decisions within
the meaning of paragraph 1 of this Article shall be null and void within its jurisdiction.
4. An enterprise shall not be treated as engaging in anti-competitive business conduct if it
establishes that the activity complained of:
(a) contributes to:
(i) the improvement of production or distribution of goods and services; or
(ii) the promotion of technical or economic progress,
while allowing consumers a fair share of the resulting benefit;
(b) imposes on the enterprises affected only such restrictions as are indispensable to the
attainment of the objectives mentioned in sub-paragraph (a); or
(c) does not afford the enterprise engaged in the activity the possibility of eliminating
competition in respect of a substantial part of the market for goods or servicesconcerned.
Article 178
Determination Of Dominant Position
For the purposes of this Chapter:WT/REG155/1
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(a) an enterprise holds a dominant position in a market if by itself or together with an
interconnected enterprise, it occupies such a position of economic strength as will
enable it to operate in the market without effective constraints from its competitors or
potential competitors;
(b) any two enterprises shall be treated as interconnected enterprises if one of them is a
subsidiary of the other or both of them are subsidiaries of the same parent enterprise.
Article 179
Abuse Of A Dominant Position
1. Subject to paragraph 2 of this Article, an enterprise abuses its dominant position in a market if
it prevents, restricts or distorts competition in the market and, in particular but without prejudice tothe generality of the foregoing, it:
(a) restricts the entry of any enterprise into a market;
(b) prevents or deters any enterprise from engaging in competition in a market;
(c) eliminates or removes any enterprise from a market;
(d) directly or indirectly imposes unfair purchase or selling prices or other restrictive
practices;
(e) limits the production of goods or services for a market to the prejudice of consumers;
(f) as a party to an agreement, makes the conclusion of such agreement subject to
acceptance by another party of supplementary obligations which, by their nature or
according to commercial usage, have no connection with the subject of theagreement;
(g) engages in any business conduct that results in the exploitation of its customers or
suppliers,
so as to frustrate the benefits expected from the establishment of the CSME.
2. In determining whether an enterprise has abused its dominant position, consideration shall be
given to:
(a) the relevant market defined in terms of the product and the geographic context;
(b) the concentration level before and after the relevant activity of the enterprise
measured in terms of annual sales volume, the value of assets and the value of the
transaction;
(c) the level of competition among the participants in terms of number of competitors,
production capacity and product demand;
(d) the barriers to entry of competitors; and
(e) the history of competition and rivalry between participants in the sector of activity.WT/REG155/1
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3. An enterprise shall not be treated as abusing its dominant position if it establishes that:
(a) its behaviour was directed exclusively to increasing efficiency in the production,
provision or distribution of goods or services or to promoting technical or economic
progress and that consumers were allowed a fair share of the resulting benefit;
(b) it reasonably enforces or seeks to enforce a right under or existing by virtue of a
copyright, patent, registered trade mark or design; or
(c) the effect or likely effect of its behaviour on the market is the result of superior
competitive performance of the enterprise concerned.
Article 180
Negative Clearance Rulings
1. In any case where a Member State is uncertain whether business conduct is prohibited by
paragraph 1 of Article 177, such a Member State may apply to the Commission for a ruling on the
matter. If the Commission determines that such conduct is not prohibited by paragraph 1 of Article
177, it shall issue a negative clearance ruling to this effect.
2. Subject to paragraph 3, a negative clearance ruling shall be conclusive of the matters stated
therein in any judicial proceedings in the Community.
3. The Court may, on an application of the Commission, review a decision of the Commission
where the decision was induced by deceit or improper means.
Article 181
De Minimis Rule
The Commission may exempt from the provisions of this Part any business conduct referred
to it if it considers that the impact of such c onduct on competition and trade in the CSME is minimal.
Article 182
Powers Of The COTED Respecting Community Competition Policy And Rules
Subject to this Treaty, COTED shall develop and establish appropriate policies and rules of
competition within the Community including special rules for particular sectors.
Article 183
Exemptions
1. Where COTED determines, pursuant to Article 182, that special rules shall apply to specific
sectors of the Community, it may suspend or exclude the application of Article 177 to such sectors
pending adoption of the relevant rules.
2. COTED may, on its own initiative or pursuant to an application by a Member State in that
behalf exclude or suspend the application of Article 177 to any sector or any enterprise or group of
enterprises in the public interest.WT/REG155/1
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PART TWO: CONSUMER PROTECTION
Article 184
Promotion Of Consumer Interests In The Community
1. The Member States shall promote the interests of consumers in the Community by appropriate
measures that:
(a) provide for the production and supply of goods and the provision of services to
ensure the protection of life, health and safety of consumers;
(b) ensure that goods supplied and services provided in the CSME satisfy regulations,
standards, codes and licensing requirements established or approved b y competentbodies in the Community;
(c) provide, where the regulations, standards, codes and licensing requirements referred
to in paragraph (b) do not exist, for their establishment and implementation;
(d) encourage high levels of ethical conduct for those engaged in the production and
distribution of goods and services to consumers;
(e) encourage fair and effective competition in order to provide consumers with greater
choice among goods and services at lowest cost;
(f) promote the provision of adequate information to consumers to enable the making of
informed choices;
(g) ensure the availability of adequate information and education programmes for
consumers and suppliers;
(h) protect consumers by prohibiting discrimination against producers and suppliers of
goods produced in the Community and against service providers who are nationals of
other Member States of the Community;
(i) encourage the development of independent consumer organisations;
(j) provide adequate and effective redress for consumers.
2. For the purpose of this Part,
"consumer" means any person:
(a) to whom goods or services are supplied or intended to be supplied in the course of
business carried on by a supplier or potential supplier; and
(b) who does not receive the goods or services in the course of a business carried on by
him.WT/REG155/1
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Article 185
Protection Of Consumer Interests In The Community
The Member States shall enact harmonised legislation to provide, inter alia :
(a) for the fundamental terms of a contract and the implied obligations of parties to a
contract for the supply of goods or services;
(b) for the prohibition of the inclusion of unconscionable terms in contracts for the sale
and supply of goods or services to consumers;
(c) for the prohibition of unfair trading practices, particularly such practices relating to
misleading or deceptive or fraudulent conduct;
(d) for the prohibition of production and supply of harmful and defective goods and for
the adoption of measures to prevent the supply or sale of such goods including
measures requiring the removal of defective goods from the market;
(e) that the provision of services is in compliance with the applicable regulations,
standards, codes and licensing requirements;
(f) that goods supplied to consumers are labelled in accordance with standards and
specifications prescribed by the competent authorities;
(g) that hazardous or other goods whose distribution and consumption are regulated by
law are sold or supplied in accordance with applicable regulations;
(h) that goods or materials, the production or use of which is likely to result in potentially
harmful environmental effects, are labelled and supplied in accordance with
applicable standards and regulations;
(i) that producers and suppliers are liable for defects in goods and for violation of
product standards and consumer safety standards which occasion loss or damage to
consumers;
(j) that violations of consumer safety standards by producers or suppliers are
appropriately sanctioned and relevant civil or criminal defences to such violations are
available to defendants.
Article 186
Action By The Commission To Provide Support In The Promotion
Of Consumer Welfare And Prot ection Of Consumer Interests
1. The Commission shall, for the purpose of providing support to the Member States in the
enhancement of consumer education and consumer welfare:
(a) promote in the Community the elaboration, publication and adoption of fair contract
terms between suppliers and consumers of goods and services produced or traded inthe CSME;WT/REG155/1
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(b) take such measures as it considers necessary to ensure that the Member States
discourage and eliminate unfair trading practices, including misleading or deceptive
conduct, false advertising, bait advertising, referral selling and pyramid selling;
(c) promote in the Member States product safety standards as part of a programme of
consumer education in order to assist the consumer to make informed choicesconcerning the purchase of consumer goods;
(d) keep under review the carrying on of commercial activities in the Member States
which relate to goods supplied to consumers in such States or produced with a view
to their being so supplied, or which relate to services supplied for consumers with a
view to identifying practices which may adversely affect the interests of consumers;
(e) educate and guide consumers generally in the practical resolution of their problems
and in the best use of their income and credit, using such techniques and means ofcommunications as are available;
(f) confer, on request, with consumer organisations of the Member States and offer such
advice and information as may be appropriate for the resolution of their consumer
problems;
(g) establish the necessary co-ordination with government agencies and departments for
the effective education and guidance of consumers having regard to the programmes,
activities and resources of each agency or department;
(h) conduct research and collect and collate information in respect of matters affecting
the interests of consumers;
(i) compile, evaluate and publicise enactments for the protection of consumers in such
States and recommend to COTED the enactment of legislation considered necessary
or desirable for the protection of consumers;
(j) promote, after consultation with the competent standardising agency and other public
and private agencies or organisations, the establishment of quality standards for
consumer products;
(k) promote and monitor, after consultation w ith relevant agencies and departments of
Government, the enforcement of legislation affecting the interests of consumers,
including, but not limited to, legislation relating to weights and measures, food and
drugs adulteration, the control of standards and price controls;
(l) make recommendations to COTED for the enactment of legislation by the Member
States for the effective enforcement of the rights of consumers.
2. The Commission shall:
(a) draw to the attention of COTED business conduct by enterprises which impacts
adversely on consumer welfare;
(b) collaborate with competent Organs of the Community to promote consumer
education and consumer welfare.WT/REG155/1
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CHAPTER NINE: DISPUTES SETTLEMENT
Article 187
Scope Of The Chapter
The provisions of this Chapter shall apply to the settlement of disputes concerning the
interpretation and application of the Treaty, including:
(a) allegations that an actual or proposed measure of another Member State is, or would
be, inconsistent with the objectives of the Community;
(b) allegations of injury, serious prejudice suffered or likely to be suffered, nullification
or impairment of benefits expected from the establishment and operation of the
CSME;
(c) allegations that an organ or body of the Community has acted ultra vires ; or
(d) allegations that the purpose or object of the Treaty is being frustrated or prejudiced.
Article 188
Modes Of Dispute Settlement
1. Subject to the provisions of this Treaty, the disputes mentioned in Article 187 shall be settled
only by recourse to anyone of the following modes for the settlement of disputes, namely, goodoffices, mediation, consultations, conciliation, arbitration and adjudication.
2. Where a dispute has not been settled following the adoption of one of the modes referred to in
paragraph 1 other than arbitration or adjudication, either party may have recourse to another mode.
3. Subject to the procedural rules applicable in respect of arbitration or adjudication, the parties
may agree, pending a settlement, to have recourse to good offices, mediation or conciliation in orderto arrive at a settlement.
4. Without prejudice to the exclusive and compulsory jurisdiction of the Court in the
interpretation and application of this Treaty under Article 211, the parties may use any of the
voluntary modes of dispute settlement provided for in this Article in  the settlement of a dispute.
Article 189
Expeditious Settlement Of Disputes
Where a dispute arises between Member States, the parties shall proceed expeditiously to an
exchange of views for the purpose of agreeing on:
(a) a mode of settlement and where an agreed mode has been terminated, to another
mode of settlement; or
(b) a mutually satisfactory method of implementation where a settlement has been
reached and the circumstances require consultation regarding its implementation.WT/REG155/1
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Article 190
Notification Of Existence And Settlement Of Disputes
1. Member States parties to a dispute shall notify the Secretary-General of:
(a) the existence and nature of the dispute; and
(b) any mode of dispute settlement agreed upon or initiated.
2. Where a settlement is reached the Member States concerned shall notify the Secretary-
General of the settlement and the mode used in arriving at the settlement.
3. The Secretary-General shall, as soon as practicable after receiving the information pursuant to
paragraphs 1 and 2, notify other Member States of the information received.
Article 191
Good Offices
1. Member States parties to a dispute may agree to employ the good offices of a third party,
including those of the Secretary-General, to settle the dispute.
2. Good offices may begin or be terminated at any time. Subject to the procedural rules
applicable in respect of arbitration or adjudication, good offices may continue during the course of
arbitration or adjudication.
Article 192
Mediation
1. Where Member States parties to a dispute agree to settle the dispute by recourse to mediation,
the parties may agree on a mediator or may request the Secretary-General to appoint a mediator from
the list of conciliators mentioned in Article 196.
2. Mediation may begin or be terminated at any time. Subject to the procedural rules applicable
in respect of arbitration or adjudication, mediation may continue during the course of arbitration or
adjudication.
3. Proceedings involving mediation and, in particular, positions taken by parties during the
proceedings, shall be confidential and without prejudice to the rights of the parties in any further
proceedings.
Article 193
Obligation To Enter Consultations
1. A Member State shall enter into consultations upon the request of another Member State
where the requesting Member State alleges that an action taken by the requested Member Stateconstitutes a breach of obligations arising from or under the provisions of this Treaty.WT/REG155/1
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2. Where a request for consultations is made pursuant to paragraph 1, the requested Member
State shall enter into consultations within 14 days of the receipt of the request or a mutually agreed
period.
3. Where:
(a) consultations have not been entered into within the period referred to in paragraph 2;
or
(b) the consultations fail to settle the dispute within 45 days of the receipt of the request
for consultations or the dates mutually agreed,
the requesting Member State may resort to any mode of dispute settlement including arbitration and
adjudication.
4. Requests for consultations shall be in writing. The request shall state the reasons for the
consultations and identify the measure at issue and the legal basis for the complaint.
5. The Secretary-General shall be notified of any request for consultations.
6. Consultations shall be confidential and without prejudice to the rights of the Member States in
any further proceedings. However, before resorting to further proceedings, the Member States shall
employ their best endeavours to settle the dispute.
7. In cases of urgency including those concerning perishable goods, the requested Member State
shall enter into consultations within 3 days of the receipt of the request, and where such consultations
are not entered into, the requesting Member State may resort to arbitration and adjudication.
8. Where consultations under paragraph 7 fail to settle the dispute within 7 days of the receipt of
the request for such consultations, the requesting Member State may resort to arbitration andadjudication.
9. Whenever a Member State, other than the consulting Member States, considers that it has a
legitimate interest in consultations being held pursu ant to this Article, such Member State may notify
the consulting Member States and the Secretary-General, within 10 days after the date of the
circulation of the request for consultations, of its desire to be joined in the consultations. SuchMember State shall be joined in the consultations, provided that the requested Member State agrees
that the claim of legitimate interest is well-founded and based on similar facts and circumstances. In
that event, the Member States concerned shall notify the Secretary-General. If the request to be joined
in the consultations is not granted, the applicant Member State may request consultations under
paragraph 1 of this Article.
Article 194
Obligations Of Consulting Parties
Where Member States parties to a dispute agree to settle the dispute by consultations, they
shall endeavour to arrive at a mutually satisfactory settlement of the dispute through the consultations,
and to this end shall:
(a) provide sufficient information to enable a full examination of how the action
complained of constitutes a breach of obligations arising from or under the provisions
of this Treaty referred to in Article 193; andWT/REG155/1
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(b) treat any confidential or proprietary information exchanged in the course of
consultations on the same basis as it is treated by the Member State providing the
information.
Article 195
Initiation Of Conciliation Proceedings
Where Member States parties to a dispute have agreed to submit the dispute to conciliation
under this Part, any such Member State may institute proceedings by notification addressed to the
other party or parties to the dispute.
Article 196
Establishment Of A List Of Conciliators
1. A List of Conciliators shall be established and maintained by the Secretary-General. Every
Member State shall be entitled to nominate two conc iliators, each of whom shall be a person enjoying
the highest reputation for fairness, competence and integrity. The names of the persons so nominated
shall constitute the List. If at any time the number of conciliators nominated by a Member State is less
than two, the Member State concerned shall be entitled to make such nominations as are necessary.
The name of a conciliator shall remain on the List until withdrawn by the Member State which made
the nomination and where a conciliator has been appointed to serve on any mediation or conciliationcommission, the conciliator shall continue to se rve on such commission until the completion of the
relevant proceedings.
2. The term of a conciliator, including that of a conciliator appointed to fill a vacancy, shall be
five (5) years and may be renewed.
Article 197
Constitution Of Conciliation Commission
A conciliation commission shall be constituted from time to time as follows:(a) subject to the provisions of this Article, a conciliation commission shall consist of
three members;
(b) unless the parties otherwise agree, the party instituting the proceedings shall appoint
one conciliator to be chosen from the List mentioned in Article 196. The conciliator
appointed may be a national of the party making the appointment. Such an
appointment shall be included in the notification mentioned in Article 195;
(c) the other party to the dispute shall appoint a conciliator in the manner set forth in sub-
paragraph (b) within ten days of the notification referred to in Article 195. If the
appointment is not made within that period, the party instituting the proceedings may,
within one week of the expiration of that period, either terminate the proceedings by
notification addressed to the other party or request the Secretary-General to make the
appointment in accordance with sub-paragraph (e);
(d) within ten days after both conciliators have been appointed, they shall appoint a third
conciliator chosen from the List referred to in Article 196, and who shall be the
Chairman. If the appointment is not made within that period either party may, withinWT/REG155/1
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the week of the expiration of that period, request the Secretary-General to make the
appointment in accordance with sub-paragraph (e);
(e) within ten days of the receipt of a request under sub-paragraphs (c) and (d), the
Secretary-General shall make the necessary appointments from the List referred to in
Article 196 in consultation with the parties to the dispute;
(f) any vacancy on a conciliation commission shall be filled in the manner prescribed for
the initial appointment;
(g) two or more Member States parties to the dispute which determine by agreement that
they are of the same interest shall appoint one conciliator jointly;
(h) in disputes involving more than two parties having separate interests, or where there
is disagreement as to whether they are of the same interest, the parties shall apply
sub-paragraphs (a) to (f) in so far as may be possible.
Article 198
Amicable Settlement
A conciliation commission may draw to the atte ntion of the Member States parties to the
dispute any measures which might facilitate an amicable settlement of the dispute.
Article 199
Functions Of Conciliation Commission
A conciliation commission shall hear the Member States parties to the dispute, examine their
claims and objections, and make proposals to the parties with a view to reaching an amicable
settlement.
Article 200
Procedure
1. A conciliation commission shall, unless the Member States parties to the dispute otherwise
agree, determine its own procedure. A conciliation commission may, with the consent of the parties to
the dispute, invite any Member State to submit its vi ews to the commission, orally or in writing. The
report and recommendations and decisions of the commission regarding procedural matters shall be
made by a majority vote of its members.
2. The Member States parties to the dispute may, by agreement applicable solely to that dispute,
modify the procedure referred to in paragraph 1.
Article 201
Report
1. A conciliation commission shall report within three months of its constitution. Its report shall
record any agreements reached and, failing agreement, its conclusions on all questions of fact or lawrelevant to the matter in dispute and such recommendations as a conciliation commission may deem
appropriate for an amicable settlement.WT/REG155/1
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2. The conclusions or recommendations of a conciliation commission shall not be binding upon
the parties.
Article 202
Termination
The conciliation proceedings shall be deemed to be terminated when a settlement has been
reached, when the parties have accepted or one party has rejected the recommendations of the report
by notification addressed to the Secretary-General, or when a period of one month has expired from
the date of transmission of the report to the parties.
Article 203
Fees And Expenses
The fees and expenses of a conciliation commission shall be borne by the Member States
parties to the dispute.
Article 204
Arbitration
A Member State party to a dispute may, with the consent of the other party, refer the matter to
an arbitral tribunal constituted in accordance with the provisions of this Chapter.
Article 205
Constitution Of The List Of Arbitrators
1. For the purposes of constituting the arbitral tribunal referred to in Article 206, the Secretary-
General shall establish and maintain a List of Arbitrators comprising persons chosen strictly on the
basis of impartiality, reliability and sound judgment and who shall:
(a) have expertise or experience in law, international trade, other matters covered by this
Treaty, or the settlement of disputes arising under international trade agreements;
(b) be independent of and not be affiliated with or take instructions from any Member
State; and
(c) comply with the Code of Judicial Conduct governing the behaviour of judges of the
Court.
2. The term of an arbitrator, including that of any arbitrator nominated to fill a vacancy, shall be
five years and may be renewed.
Article 206
Constitution Of Arbitral Tribunal
1. Each of the Member States parties to a dispute shall be entitled to appoint one arbitrator from
the List of Arbitrators. The two arbitrators chosen by the parties shall be appointed within fifteen days
following the decision to refer the matter to arbitr ation. The two arbitrators shall, within fifteen daysWT/REG155/1
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following the date of their appointments, appoint a third arbitrator from the List who shall be the
Chairman. As far as practicable, the arbitrators shall not be nationals of any of the parties to the
dispute.
2. Where either party to the dispute fails to appoint its arbitrator under paragraph 1, the
Secretary-General shall appoint the arbitrator within ten days. Where the arbitrators fail to appoint aChairman within the time prescribed, the Secretary- General shall appoint a Chairman within ten days.
3. Where more than two Member States are parties to a dispute, the parties concerned shall agree
among themselves on the two arbitrators to be appointed from the List of Arbitrators within fifteen
days following the decision to refer the matter to ar bitration and the two arbitrators shall within fifteen
days of their appointment appoint a third arbitrator from the List who shall be the Chairman.
4. Where no agreement is reached under paragraph three, the Secretary-General shall make the
appointment within ten days and where the arbitrators fail to appoint a Chairman within the timeprescribed the Secretary-General shall make the appointment within ten days.
5. Notwithstanding paragraphs 1, 2, 3 and 4, Member States parties to a dispute may refer the
matter to arbitration and consent to the Secretary-General appointing a sole arbitrator from the list
who shall not be a national of a Party to the dispute.
Article 207
Rules Of Procedure Of Arbitral Tribunal
1. Subject to the relevant provisions of this Chapter, the arbitral tribunal shall establish its own
rules of procedure.
2. The procedures shall assure a right to at least one hearing before the arbitral tribunal as well
as the opportunity to provide initial and rebuttal written submissions.
3. The arbitral tribunal's hearings, deliberations and initial report, and all written submissions to
and communications with the arbitral tribunal, shall be confidential.
4. The arbitral tribunal may invite any Member State to submit views orally or in writing.
5. The award of the arbitral tribunal shall be confined to the subject matter of the dispute and
shall state the reasons on which it is based.
6. Where the parties cannot agree on the interpretation or implementation of the award, either
party may apply to the arbitral tribunal for a ruling within thirty days of the award. The term of the
arbitral tribunal shall come to an end unless an application for a ruling has been received, in which
case it shall continue for such reasonable time, not exceeding thirty days, as may be required to make
the ruling.
7. Decisions of the arbitral tribunal shall be taken by a majority vote of its members and shall be
final and binding on the Member States parties to the dispute.WT/REG155/1
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Article 208
Third Party Intervention
A Member State which is not a party to a dispute, on delivery of a notification to the parties to
a dispute and to the Secretary-General, shall be entitled to attend all hearings and to receive written
submissions of the parties to a dispute and may be permitted to make oral or written submissions to
the arbitral tribunal.
Article 209
Additional Information From Experts
Where proceedings have commenced, the arbitral tribunal may, on its own initiative or on the
request of a party to the dispute, seek information and technical advice from any expert or body that it
considers appropriate, provided that the parties to the dispute so agree and subject to such terms and
conditions as the parties may agree.
Article 210
Expenses Of Arbitral Tribunal
1. The expenses of the arbitral tribunal, including the fees and subsistence allowances of
arbitrators and experts engaged for the purposes of a dispute, shall be borne equally by the Member
States parties to the dispute unless the arbitral tribunal, taking into account the circumstances of the
case, otherwise determines.
2. Where a third party intervenes in the proceedin gs, the party shall bear the costs associated
with the intervention.
Article 211
Jurisdiction Of The Court In Contentious Proceedings
1. Subject to this Treaty, the Court shall have co mpulsory and exclusive jurisdiction to hear and
determine disputes concerning the interpretation and application of the Treaty, including:
(a) disputes between the Member States parties to the Agreement;
(b) disputes between the Member States to the parties to the Agreement and the
Community;
(c) referrals from national courts of the Member States parties to the Agreement;
(d) applications by persons in accordance with Article 222,
concerning the interpretation and application of this Treaty.
2. For the purpose of this Chapter, "national courts" includes the Eastern Caribbean Supreme
Court.WT/REG155/1
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Article 212
Advisory Opinions Of The Court
1. The Court shall have exclusive jurisdiction to deliver advisory opinions concerning the
interpretation and application of the Treaty.
2. Advisory opinions shall be delivered only at the request of the Member States parties to a
dispute or the Community.
Article 213
Institution Of Proceedings
Any party to a dispute may institute proceedings in accordance with the Rules of Court
governing Original Jurisdiction.
Article 214
Referral To The Court
Where a national court or tribunal of a Member State is seized of an issue whose resolution
involves a question concerning the interpretation or application of this Treaty, the court or tribunal
concerned shall, if it considers that a decision on the question is necessary to enable it to deliverjudgment, refer the question to the Court for determination before delivering judgment.
Article 215
Compliance With Judgments Of The Court
The Member States, Organs, Bodies of the Community, entities or persons to whom a
judgment of the Court applies, shall comply with that judgment promptly.
Article 216
Compulsory Jurisdiction Of The Court
1. The Member States agree that they recognise as compulsory, ipso facto  and without special
agreement, the original jurisdiction of the Court referred to in Article 211.
2. In the event of a dispute as to whether the Court has jurisdiction, the matter shall be
determined by decision of the Court.
Article 217
Law To Be Applied By The Court In The Exercise Of Its Original Jurisdiction
1. The Court, in exercising its original jurisdiction under Article 211, shall apply such rules of
international law as may be applicable.
2. The Court may not bring in a finding of non liquet  on the ground of silence or obscurity of the
law.WT/REG155/1
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3. The provisions of paragraphs 1 and 2 shall not prejudice the power of the Court to decide a
dispute ex aequo et bono  if the parties so agree.
Article 218
Application For Interim Measures
The Court shall have the power to prescribe, if it considers the circumstances so require, any
interim measures that ought to be taken to preserve the rights of either party.
Article 219
Revision Of Judgments Of The Court In Th e Exercise Of Its Original Jurisdiction
1. The Court shall, in the exercise of its Orig inal Jurisdiction, be competent to revise its
judgment on an application made in that behalf.
2. An application for the revision of a judgment of the Court in the exercise of its original
jurisdiction may be made only when it is based upon the discovery of some fact of such a nature as tobe a decisive factor; which fact was, when the judgment was given, unknown to the Court and to the
party claiming revision: provided always the ignorance of that fact was not due to negligence on the
part of the applicant.
3. Proceedings for a revision shall be opened by a judgment of the Court expressly recording the
existence of the new fact, recognising that it has such a character as to lay the case open to revision,
and declaring the application admissible on this ground.
4. The Court may require previous compliance with the terms of the judgment before it admits
proceedings for a revision.
5. The application for a revision shall be made within six months of the discovery of the new
fact.
6. No application for a revision may be made after the lapse of five years from the date of the
judgment.
Article 220
Rules Of Court Governing Original Jurisdiction
The Rules of Court established by the President of the Court in accordance with Article XXI
of the Agreement shall apply in the exercise of the original jurisdiction of the Court.
Article 221
Judgment Of The Court To Constitute Stare Decisis
Judgments of the Court shall constitute legally binding precedents for parties in proceedings
before the Court unless such judgments have been revised in accordance with Article 219.WT/REG155/1
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Article 222
Locus Standi Of Private Entities
Persons, natural or juridical, of a Contracting Party may, with the special leave of the Court,
be allowed to appear as parties in proceedings before the Court where:
(a) the Court has determined in any particular case that this Treaty intended that a right
or benefit conferred by or under this Treaty on a Contracting Party shall enure to the
benefit of such persons directly; and
(b) the persons concerned have established that such persons have been prejudiced in
respect of the enjoyment of the right or benefit mentioned in paragraph (a) of thisArticle; and
(c) the Contracting Party entitled to espouse the claim in proceedings before the Court
has:
(i) omitted or declined to espouse the claim, or
(ii) expressly agreed that the persons concerned may espouse the claim instead of
the Contracting Party so entitled; and
(d) the Court has found that the interest of justice requires that the persons be allowed to
espouse the claim.
Article 223
Alternative Disputes Settlement
1. The Member States shall, to the maximum extent possible, encourage and facilitate the use of
arbitration and other modes of alternative disputes settlement for the settlement of private commercial
disputes among Community nationals as well as among Community nationals and nationals of thirdStates.
2. Each Member State shall provide appropriate procedures in its legislation to ensure
observance of agreements to arbitrate and for the recognition and enforcement of arbitral awards in
such disputes.
3. A Member State which has implemented the 1958 United Nations Convention on the
Recognition and Enforcement of Foreign Arbitral  Awards or the Arbitration Rules of the United
Nations Commission on International Trade Law shal l be deemed to be in compliance with the
provisions of paragraph 2 of this Article.
Article 224
General Undertaking
Each Member State undertakes to employ its best endeavours to complete the constitutional
and legislative procedures required for its participation in the regime establishing the Court as soon as
possible.WT/REG155/1
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CHAPTER TEN: GENERAL AND FINAL PROVISIONS
Article 225
Security Exceptions
Nothing in this Treaty shall be construed:(a) as requiring any Member State to furnish information, the disclosure of which it
considers contrary to its essential security interests;
(b) as preventing any Member State from taking any action which it considers necessary
for the protection of its essential security interests:
(i) relating to the supply of services carried out directly or indirectly for the
purpose of provisioning a military establishment;
(ii) in time of war or other emergency in international relations; or
(c) as preventing any Member State from taking any action in pursuance of its
obligations for the maintenance of international peace and security.
Article 226
General Exceptions
1. Nothing in this Chapter shall be construed as preventing the adoption or enforcement by any
Member State of measures:
(a) to protect public morals or to maintain public order and safety;
(b) to protect human, animal or plant life or health;
(c) necessary to secure compliance with laws or regulations relating to customs
enforcement, or to the classification, grading or marketing of goods, or to theoperation of monopolies by means of state enterprises or enterprises given exclusive
or special privileges;
(d) necessary to protect intellectual property or to prevent deceptive practices;
(e) relating to gold or silver;
(f) relating to the products of prison labour;
(g) relating to child labour;
(h) imposed for the protection of national treasures of artistic, historic or archaeological
value;
(i) necessary to prevent or relieve critical food shortages in any exporting Member State;
(j) relating to the conservation of natural resources or the preservation of the
environment;WT/REG155/1
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(k) to secure compliance with laws or regula tions which are not inconsistent with the
provisions of this Treaty including those relating to:
(i) the prevention of deceptive and fraudulent practices, and the effects of a
default on contracts;
(ii) the protection of the privacy of individuals in relation to the processing and
dissemination of personal data and the protection of confidentiality of
individual records and accounts; and
(l) to give effect to international obligations including treaties on the avoidance of
double taxation,
but only if such measures do not constitute arbitrary or unjustifiable discrimination between Member
States where like conditions prevail, or a disguised restriction on trade within the Community.
2. Measures taken by the Member States pursuant to paragraph 1 shall be notified to COTED.
3. The Community Council shall take appropriate meas ures to co-ordinate applicable legislation,
regulations and administrative practices established in accordance with Article 44.
Article 227
Notification
Where in this Treaty provision is made for notification to an Organ of the Community, such
notification shall be effected through the Secretariat.
Article 228
Legal Capacity Of The Community
1. The Community shall have full juridical personality.
2. Every Member State shall in its territory accord to the Community the most extensive legal
capacity accorded to legal persons under its laws including the capacity to acquire and dispose of
movable and immovable property and to sue and be sued in its own name. In any legal proceedings,
the Community shall be represented by the Secretariat.
3. The Community may also conclude agreements with States and International Organisations.
4. The Member States agree to take such action as is necessary to give effect in their territories
to the provisions of this Article and shall promptly inform the Secretariat of such action.
Article 229
Privileges And Immunities Of The Community
1. The Headquarters Agreement concluded between the Caribbean Community and Common
Market and the Government of Guyana on 23 January 1976 shall continue to govern relations between
the Community and the host country.WT/REG155/1
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2. The Protocol on Privileges and Immunities concluded by the Member States in connection
with the Caribbean Community and Common Market  shall govern relations between the Community
and such Member States.
Article 230
Negotiation And Conclusion Of Agreements
1. Conference may designate any Organ or Body of the Community to negotiate agreements for
the achievement of the objectives of the Community.
2. Conference may delegate to the Secretary-General the conclusion of agreements, particularly
technical assistance agreements, on behalf of the Community.
Article 231
Associate Membership
Conference may admit any Caribbean State or Territory to associate membership of the
Community on such terms and conditions as Conference thinks fit.
Article 232
Signature
This Treaty shall be open for signature on the 5th day of July 2001 by the States mentioned in
paragraph 1 of Article 3.
Article 233
Ratification
This Treaty and any amendments thereto shall be subject to ratification by signatory States in
accordance with their respective constitutional procedures. Instruments of ratification shall be
deposited with the Secretariat which shall transmit certified copies to the signatory States.
Article 234
Entry Into Force
This Treaty shall enter into force on the deposit of the last instrument of ratification by the
States mentioned in paragraph 1 of Article 3.
Article 235
Registration
This Treaty and any amendments thereto shall be registered with the Secretariat of the United
Nations in accordance with Article 102 of the Charter of the United Nations.WT/REG155/1
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Article 236
Amendments
1. This Treaty may be amended by the unanimous decision of the Parties.
2. An amendment shall enter into force one month after the date on which the last instrument of
ratification is deposited with the Secretariat.
Article 237
Reservations
Reservations may be entered to this Treaty with the consent of the signatory States.
Article 238
Accession
1. After the entry into force of this Treaty a State or Territory of the Caribbean may, if
Conference so determines, accede to this Treaty.
2. Accession shall be on such terms and conditions as Conference decides and shall take effect
one month following the deposit of the instrument of accession with the Secretariat.
Article 239
Undertaking
The Member States undertake to elaborate a Protocol relating, inter alia . to:
(a) electronic commerce;
(b) government procurement;
(c) treatment of goods produced in free zones and similar jurisdictions;
(d) free circulation of goods in the CSME, and
(e) rights contingent on establishment, provision of services and movement of capital in
the Community.
Article 240
Saving
1. Decisions of competent Organs taken under this Treaty shall be subject to the relevant
constitutional procedures of the Member States before creating legally binding rights and obligationsfor nationals of such States.
2. The Member States undertake to act expeditiously to give effect to decisions of competent
Organs and Bodies in their municipal law.WT/REG155/1
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3. COTED shall monitor and keep under review th e implementation of the provisions of this
Article and shall convene a review conference of Member States within five years from the entry into
force of this Treaty.
IN WITNESS WHEREOF, the unde rsigned Heads of Government have appended their
signatures to this Treaty.
DONE at ______ this _____day of______ 2001 in a single copy which shall be deposited
with the Secretary-General of the Community by whom certified copies will be communicated to all
the signatories.
__________