Sir Claude Corea, of Ceylon, who was nominated as chairman in 1955. The Contracting Parties also agreed that the chairman of the ICCICA should submit to them each year a review of the annual report prepared by the ICCICA. Proposed agreement on commodity arrangements At their Ninth Session in 1954-55, the Contracting Parties established a working party to consider and report on proposals for intergovernmental action designed to settle problems that arise with respect to 1/ international trade in primary commodities. When the working party made its report to the Contracting Parties, it also submitted a draft of an agreement designed to facilitate the preparation and conclusion of intergovernmental commodity agreements. The Contracting Parties discussed the report and the draft agreement and, as a result of their discussion, revised the draft agreement. At their 10th Session, the Contracting Parties discussed at length the revised draft agreement on commodity arrangements. Since they continued to disagree on the provisions of the agreement, the Contracting Parties authorized the Intersessional Committee--should it appear that agreement could be reached--to establish a subcommittee to prepare a final draft agreement for consideration by the Contracting Parties at their 11th Session. As no agreement was reached before the 11th Session the Contracting Parties at that session reconstituted the working party on commodity 1/ The United States did not accept membership on the working party. At the 10th and 11th Sessions the United States took the position that an additional agreement in this field was neither necessary nor desirable, and that the United States did not intend to participate in a commodity convention should such a convention be concluded. problems and directed it to consider alterative approaches to the problem. On the recommendation of the working party, the Contracting Parties adopted a resolution that provided for consideration of problems related to international trade in primary commodities. Under the terms of the resolution, which recognized the competence of other international organizations in the field of primary commodities, the Contracting Parties will discuss at future sessions the trends and developments in international trade in primary commodities, as outlined by the chairman of the ICCICA in his annual report and as indicated by consultations held under the various provisions of the General Agreement. Restrictive business practices In 1953 the United Nations Economic and Social Council recognized the detrimental effects of restrictive business practices in international trade on economic development, employment, and international trade, and adopted a resolution stating that both national action and international cooperation are necessary to deal with such practices. At the Ninth Session of the Contracting Parties in 1954-55, the delegations of Denmark, Norway, and Sweden--in response to this resolution--proposed that the Contracting Parties revise the General Agreement to provide for the control of restrictive business practices in international trade. Because of a procedural misunderstanding between the Contracting Parties and the United Nations Economic and Social Council, however, the Contracting Parties postponed consideration of the proposal. At the 11th Session of the Contracting Parties, Norway and the Federal Republic of Germany made individual proposals with respect to restrictive trade practices. Western Germany proposed that the Contracting Parties recognize that such business practices may have adverse effects on trade between various contracting parties. Germany also proposed that the Contracting Parties require any contracting party that maintains restrictive trade practices affecting international trade to consult with interested contracting parties, and to take appropriate domestic legal action to eliminate such practices. The Norwegian delegate likewise proposed that the Contracting Parties recognize the adverse effects of restrictive business practices. He suggested that the Contracting Parties establish a working party to consider whether they should undertake to control such practices. Should the working party so recommend, he suggested that it also recommend at the 12th Session the appropriate provisions that should be added to the General Agreement--or included in a supplemental agreement--to establish such controls. After discussion, the Contracting Parties referred the German and Norwegian proposals to the Intersessional Committee, with instructions that it submit a report and recommendations to them at their 12th Session. Disposal of surplus agricultural products To prevent the disposal of surplus agricultural commodities from unduly disturbing world markets, the Contracting Parties--at their Ninth Session in 1954-55--adopted a resolution urging contracting parties that are planning to dispose of such surplus stocks to consult with the principal suppliers of the commodities involved, and with any other interested parties. During their 10th Session, at the request of Australia, the Contracting Parties discussed the disposal of surplus agricultural products in world trade since they adopted the resolution mentioned above. The discussion made it clear that disposal of surplus agricultural commodities, as well as the consultations relating to such disposal, were of serious and continuing concern to many contracting parties. Some of the contracting parties indicated that, in their opinion, the consultations that had been held pursuant to the resolution had contributed to the more orderly disposal of surpluses. Most of the contracting parties, however, believed that the consultations had not been greatly effective. A few contracting parties believed that insufficient time had elapsed to permit the Contracting Parties to adequately assess the success of consultations held pursuant to the resolution. At the 11th Session of the Contracting Parties a number of contracting parties expressed concern at what they considered to be the growing threat of the United States surplus disposal program to their traditional markets for agricultural products. As at the 10th Session, contracting parties also complained that the United States had not provided adequate notice of its intention to release surplus products in world markets and that, therefore, they had not been able to undertake effective consultations with the United States. Because of the many problems that still existed with respect to the disposal of surplus agricultural commodities, the Contracting Parties agreed to consider the matter again at their 12th Session. Trade and customs regulations In June 1951 the International Chamber of Commerce adopted a number cof resolutions relating to the reduction of trade barriers. The resolutions dealt with customs treatment of commercial samples and advertising materials, documentary requirements for the importation of goods, consular formalities, valuation of goods for customs purposes, the nationality of imported goods, and formalities connected with the 1/ administration of quantitative restrictions on imports. A working party considered these resolutions at the Sixth Session of the Contracting Parties in 1951, and again at the Seventh Session in 1952. As a result of the working party's report, the Contracting Parties adopted a draft convention for the importation of samples and advertising material, a code of standard practices relating to documentary requirements for the importation of goods, a code of standard practices relating to consular formalities, and a resolution regarding the application of import- and export-licensing restrictions to existing contracts. The Contracting Parties also recommended that individual contracting parties abolish their requirements for consular invoices and consular visas by December 31, 1956, and requested that they report each 2/ year on the progress they had made in doing so. At their Eighth Session in 1953 and their Ninth Session in 1954-55, the Contracting Parties continued their discussions on the valuation of goods for customs purposes, on the nationality of imported goods, and on practices relating to consular formalities. They also made recommendations with respect to the convention on the importation of samples and advertising material, and with respect to proof of origin in determining the nation3/ ality of imported goods. At the 10th Session the Contracting Parties continued their discussions on the nationality of imported goods. They 1 For a detailed discussion of the resolutions adopted by the International Chamber of Commerce, see Operation of the Trade Agreements Program (sixth report), pp. 61-64. 2 See Operation of the Trade Agreements Program (seventh report), pp. 89-94 3/ See Operation of the Trade Agreements Program: Seventh report, pp. 89-94; and eighth report, pp. 79-81. |