ESTABLISHMENT [The International Trade Organization of the United Nations is hereby established and shall operate in accordance with the following provisions:] CHAPTER I. PURPOSES Article 1. General Purposes of the Organization [The purposes of the Organization shall be: [1. To promote the solution of problems in the field of international commercial policies and relations through consultation and collaboration among Members. [2. To enable Members to avoid recourse to measures destructive of world commerce by providing, on a reciprocal and mutually advantageous basis, expanding opportunities for their trade and economic development. [3. To encourage and assist the industrial and general economic development of Member countries, particularly of those still in the early stages of industrial development. [4. In general, to promote national and international action for the expansion of the production, exchange and consumption of goods, for the reduction of tariffs and other trade barriers, and for the elimination of all forms of discriminatory treatment in international commerce; thus contributing to an expanding world economy, to the establishment and maintenance in all countries of high levels of employment and real income, and to the creation of economic conditions conducive to the maintenance of world peace. [5. To provide a centralized agency for the coordination of the work of Members to the above ends.] into force pursuant to the proviso to paragraph 3 of article 88. 2. Membership in the Organization shall be open to such other countries as accept the provisions of this Charter, subject to the approval of the Conference. 3. The Conference shall establish procedures that will open a membership in the Organization to the United Nations on behalf of the trust territories for which the United Nations is the administering authority. CHAPTER III. EMPLOYMENT Article 3. Relation of Employment to the Purposes of 1. Members recognize that the avoidance of unemployment or underemployment through the achievement and maintenance in each country of useful employment opportunities for those able and willing to work and of high and steadily rising effective demand for goods and services is not of domestic concern alone, but is a necessary condition for the expansion of international trade and, in general, for the realization of the purposes of the Organization. They also recognize that measures to sustain demand and employment should be consistent with the other purposes and provisions of the Organization, and that in the choice of such measures, each country should seek to avoid creating balance of payments difficulties for other countries. 2. They agree that, while the achievement and maintenance of effective demand and employment must depend primarily on domestic measures, such measures should be assisted by the regular exchange of information and views among Members and, so far as possible, be supplemented by international action sponsored by the Economic and Social Council of the United Nations and carried out in collaboration with the appropriate intergovernmental organizations, acting within their respective spheres and consistently with the terms and purposes of their basic instruments. Article 4. The Maintenance of Domestic Employment Members shall take action designed to achieve and maintain full and productive employment and high and stable levels of effective demand within their own jurisdictions through measures appropriate to their political and economic institutions and compatible with the other purposes of the Organization. is Char Article 5. The Development of Domestic Resources and Productivity Members, recognizing that all countries have a common interest in the productive use of the world's resources, agree to take action designed progressively to develop economic resources and to raise standards of productivity within their jurisdiction through measures compatible with the other purposes of the Organization. Article 6. Fair Labor Standards Members, recognizing that all countries have a common interest in the maintenance of fair labor standards, related to national productivity, agree to take whatever action may be appropriate and feasible to eliminate substandard conditions of labor in production for export and generally throughout their jurisdiction. Article 7. The Removal of Maladjustments in the Balance Members agree that in case of a fundamental disequilibrium in their balance of payments involving other countries in persistent balance of payments difficulties which handicap them in maintaining employment, they will make their full contribution to action designed to correct the maladjustment. Article 8. Safeguards for Countries Subject to External The Organization shall have regard, in the exercise of its functions as defined in the other articles of this Charter, to the need of Members to take action within the provisions of the Charter to safeguard their economies against deflationary pressure in the event of a serious or abrupt decline in the effective demand of other countries. Article 9. Consultation and Exchange of Information on Matters Relating to Employment Members agree to participate in arrangements undertaken or sponsored by the Economic and Social Council of the United Nations, including arrangements with the appropriate intergovernmental organizations: (a) for the regular collection, analysis, and exchange of information on domestic employment problems, trends, and policies, including as far as possible information relating to national income, demand, and the balance of payments; and (b) for consultation with a view to concerted action on the part of governments and intergovernmental organizations in the field of employment policies. Article 10. Importance of Economic Development Members recognize that the industrial and general economic development of all countries and in particular of those countries whose resources are as yet relatively undeveloped will improve opportunities for employment, enhance the productivity of labor, increase the demand for goods and services, contribute to economic stability, expand international trade, and raise levels of real income, thus strengthening the ties of international understanding and accord. Article 11. Plans for Economic Development 1. Members undertake to promote the continuing industrial and general economic development of their respective countries and territories in order to assist in realizing the purposes of the Organization. 2. Members agree that they will cooperate through the Economic and Social Council of the United Nations and the appropriate intergovernmental organizations in promoting industrial and general economic development. (3. The Organization, at the request of any Member, shall advise such Member concerning its plans for economic development and, within its competence and resources, shall provide such Member with technical assistance in completing its plans and carrying out its programs.) 1 Article 12. Means of Economic Development 1. Members recognize that progressive economic development is dependent upon the availability of adequate supplies of: (a) capital funds; and (b) materials, equipment, advanced technology, trained workers and managerial skill. 2. Members agree to impose no unreasonable impediments that would prevent other Members from obtaining access to facilities required for their economic development. 3. Members agree to cooperate within the limits of their power to do so, with the appropriate intergovernmental organizations of which they are members in the provision of such facilities. 4. Members agree that, in their treatment of other Members, business entities, or persons supplying them with facilities for their industrial and general economic development, not only will they con 1 This paragraph was adopted provisionally by the Preparatory Committee pending receipt of advice (before the spring meeting of the Preparatory Committee) from the Economic and Social Council as to whether it was in accordance with the Council's views on the appropriate allocation of functions among the various specialized international agencies. form to the provisions of their relevant international obligations, now in effect, or which they may undertake pursuant to article 61 (5) or otherwise, but also that in general they will take no unreasonable action injurious to the interest of such other Members, buiness entities, or persons. 5. The Organization shall receive from any affected Member, or with the permission of that Member from business entities or persons within its jurisdiction, complaints that action by another Member is inconsistent with its obligations under paragraphs 2, 3, or 4. In the event of such complaint, the Organization may, at its discretion, request the Members concerned to enter into consultation with a view to reaching a mutually satisfactory settlement and lend its good offices to this end. Article 13. Governmental Assistance to Economic Development 1. Members recognize that special governmental assistance may be required in order to promote the establishment or reconstruction of particular industries, and that such assistance may take the form of protective measures. 2. Members recognize that an unwise use of such protection would impose undue burdens on their own economies and unwarranted restrictions on international trade, and might increase unnecessarily the difficulties of adjustment for the economies of other countries. 3. (a) If a Member, in the interest of its program of development, proposes to employ any protective measures which would conflict with any of its obligations under or pursuant to the Charter, it shall inform the Organization and shall transmit to the Organization any finding in support of this proposal. The Organization shall promptly inform those Members whose trade would be substantially affected by the proposal and afford them an opportunity to present their views. The Organization shall then promptly examine the proposal in the light of the provisions of this chapter, the findings presented by the applicant Member, the views presented by Members substantially affected, and such criteria as to productivity and other factors as it may establish, taking into account the stage of economic development or reconstruction of the Member. (b) If, as a result of its investigations pursuant to subparagraph (a), the Organization determines upon any measure which would be inconsistent with any obligation that the applicant Member has assumed through negotiation with other Members pursuant to chapter V or would reduce the benefit to such other Members of any such obligation, the Organization shall sponsor and assist in negotiations between the applicant Member and other Members substantially affected, with a view to obtaining substantial agreement. Upon such agreement being reached the Organization may release the applicant Member from the obligation in question or from any other |