H. R. 5550, 84TH CONGRESS, 1ST SESSION A BILL To amend the Tariff Act of 1930 with respect to the administration of the General Agreement on Tariffs and Trade Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That part III of title III of the Tariff Act of 1930, as amended (relating to foreign-trade agreements), is hereby amended by inserting after section 350 the following new section: "SEC. 351. (a) The President is hereby authorized to accept membership for the United States in the Organization for Trade Cooperation provided for in the Agreement on the Organization for Trade Cooperation drawn up by the Contracting Parties to the General Agreement on Tariffs and Trade at their ninth session and opened for acceptance at Geneva on March 10, 1955. (b) There is hereby authorized to be appropriated annually to the Department of State '(1) such sums as may be necessary for the payment by the United States of its share of the expenses of the Organization for Trade Cooperation as determined in accordance with article 9 of the agreement referred to in subsection (a); and "(2) such additional sums as may be necessary to pay the expenses incident to participation by the United States in the activities of the Organization for Trade Cooperation, including 1348 "(A) the salaries of the United States representative or representatives and alternates, and appropriate staff, without regard to the civil-service laws and the Classification Act of 1949, as amended; "(B) amounts for services as authorized by section 15 of the Act of August 2, 1946 (5 U. S. C. 55a); and "(C) such other expenses as the Secretary of State deems necessary to participation by the United States in the activities of the Organization." " TEXT OF THE AGREEMENT ON THE ORGANIZATION FOR TRADE COOPERATION AND ARTICLE-BY-ARTICLE ANALYSIS TEXT OF THE AGREEMENT ARTICLE-BY-ARTICLE ANALYSIS PART I-GENERAL ARTICLE 1-ESTABLISHMENT The Organization for Trade Co- Article 1 establishes the Organioperation (hereinafter referred to zation for Trade Cooperation to as "the Organization") is hereby further the achievement of the established to further, as provided purposes and objectives set forth for in the General Agreement and in the General Agreement on herein, the achievement of the Tariffs and Trade. Such purpurposes and objectives set forth poses and objectives relate to the in the General Agreement on freeing of international trade from Tariffs and Trade (herein referred artificial barriers as a contribution to as "the General Agreement"). to the broad goals of international trade and economic endeavor, i. e., raising standards of living, insuring full employment and increasing real income, developing the world's resources, expanding the production and exchange of goods, and promoting the development of economies. The language of the article makes clear that the means envisaged for the accomplishment of these objectives are limited to action in the trade field. ARTICLE 2 The Members of the Organiza MEMBERSHIP Article 2 first lays down the gention shall be the contracting par- eral principle that the Members of ties to the General Agreement. the Organization shall be the conGovernments which become or tracting parties to the General cease to be contracting parties to Agreement. An amendment to the General Agreement shall be- Article XXV of the General Agreecome or cease to be Members of ment provides that those contractthe Organization. The Organiza- ing parties which have accepted tion may, by a two-thirds majority the organizational agreement may of the votes cast, invite govern- decide that any contracting party ments which are not or which cease which has not accepted the organto be contracting parties to the izational agreement shall cease to General Agreement to participate be a contracting party to the Genin such activities of the Organiza- eral Agreement. 7501856-86 TEXT OF THE AGREEMENT ARTICLE-BY-ARTICLE ANALYSIS tion and on such terms as it shall Governments which become decide; Provided that in no case contracting parties to the General shall such participation involve Agreement shall become Members the right to vote or to be counted of the Organization, and conin determining the fulfillment of versely governments which cease the relevant voting requirements to be contracting parties to the when the Organization is exercis- General Agreement shall cease to ing any function relating directly to the General Agreement. be Members of the Organization. These provisions are contained, respectively, in an amendment to Article XXXIII of the General Agreement and in Article 17 of the organizational agreement. The provision in Article 2 on ceasing to be a Member takes the place of any provision for withdrawal from the Organization. By a two-thirds majority of the votes cast, the Organization may invite governments which have not been or which have ceased to be contracting parties to the General Agreement to participate in such activities of the Organization, and on such terms, as are decided by the Organization. While it would generally be for the Organization to decide what these limited rights might be, the Agreement specifically provides that such governments would have no voting rights when the Organization is exercising any activity relating directly to the General Agreement. ARTICLE 3- -FUNCTIONS (a) The Organization shall administer the General Agreement and generally facilitate the operation of that Agreement. Article 3 prescribes the functions of the Organization. It first states that the Organization shall administer the General Agreement and generally facilitate its operation. Part III of the Agreement. discussed later, contains more (i) to facilitate intergovern- detail as to the exercise of this mental consultations on ques- function. Additional functions of tions relating to international the Organization are: to facilitate trade; intergovernmental consultations (b) In addition, the Organization shall have the following func tions: (ii) to sponsor international on questions relating to internatrade negotiations; tional trade; to sponsor interna TEXT OF THE AGREEMENT ARTICLE-BY-ARTICLE ANALYSIS (iii) to study questions of tional trade negotiations; to study international trade and com- questions of international trade mercial policy and, where appro- and commercial policy and where priate, make recommendations appropriate make recommendathereon; tions thereon; and, finally, to col (iv) to collect, analyse and lect, analyze and publish informapublish information and statis- tion and statistical data relating to tical data relating to interna- international trade and commertional trade and commercial cial policy. policy, due regard being paid It will be noted that the Agreeto the activities in this field of ment gives the Organization other international bodies. powers of administration only in (c) The Organization shall, in respect to the General Agreement. carrying out these functions, en- Furthermore, sponsorship of negodeavour to give full effect to the tiations relating to trade does not provisions of Article 1 of this necessarily imply endorsement by Agreement. the Organization, or by any particular Member, of any result of such negotiations. (d) The Organization shall have no authority to amend the provisions of the General Agreement; This article also provides that no decision or other action of the the Organization shall not have Assembly or any subsidiary body authority to amend the provisions of the Organization shall have the of the General Agreement. (The effect of imposing on a Member General Agreement may be any new obligation which the amended only if proposed amendMember has not specifically agreed to undertake. ments are accepted by individual contracting parties, acting under Article XXX of the General Agreement). Amendments cannot be put into effect by the contracting parties acting jointly. Moreover, it specifies that the Organization may not impose on a Member any new obligations which the Member has not specifically agreed to undertake. PART II-STRUCTURE AND ADMINISTRATION OF THE ORGANIZATION ARTICLE 4-STRUCTURE IN GENERAL The Organization shall have an Article 4 provides simply that Assembly, an Executive Com- the Organization shall have an mittee and a Secretariat. Assembly, an Executive Committee, and a Secretariat. TEXT OF THE AGREEMENT ARTICLE-BY-ARTICLE ANALYSIS ARTICLE 5-THE ASSEMBLY (a) The Assembly shall consist Article 5 provides that the Asof all the Members of the Organization. (b) It shall be the responsibility of the Assembly to carry out the functions of the Organization. (c) The Assembly shall determine the seat of the Organization. (d) The Assembly shall meet in regular annual session and in such special sessions as may be convened in accordance with the rules of procedure. sembly, which consists of all of the members of the Organization, is responsible for carrying out the functions of the Organization. Specific provision is made that the Assembly, which shall meet in regular annual sessions, with provisions for special sessions, shall specify the seat of the Organization, establish its own rules of procedure, and approve the rules of procedure of the Executive (e) The Assembly shall establish Committee. It will also be the its own rules of procedure and shall body which will have the responsi approve the rules of procedure of bility for the carrying out of the the Executive Committee and of various activities involved in the any other subsidiary body. administration of the General Agreement (discussed in connection with Part III), and the general functions of consultation, recommendation, and the sponsorship of negotiations. ARTICLE 6- THE EXECUTIVE COMMITTEE (a) The Executive Committee Article 6 establishes an Execushall consist of seventeen Members tive Committee. It is to consist of the Organization elected peri- of 17 members of the Organization odically by the Assembly. Each to be elected periodically by the election shall be for a single term Assembly. These will include the and each Member shall be eligible five Members of chief economic for re-election. In such elections, importance, thus assuring that the the Assembly shall be guided by United States will always be a the following criteria: member of the Executive Com(i) the Executive Committee mittee. The other members will shall include the five members be selected on the basis of repreof chief economic importance, in sentation of different geographic the determination of which areas, types of economies, and particular regard shall be paid degrees of economic development. to their shares in international trade; This Executive Committee shall have such powers and perform |