business practices by public or private commerciel enterprises possessing rcnopoly cwer in international trade or conspiring to restrain international trade, cach country joining the ITO will commit itself (1) to "take appropriate measures . . to prevent" such practices whenever they "have harmful effects on the expansion of production or trade" (Art. 46); (2) (3) to "take all possible measures, by legislation to "take full account of each request, decision, These commitments are consistent with the policy embodied by the Congress of the United States in the Sherman Anti-Trust Act of 1890, as interpreted by the Supreme Court. For most other countries, however, they represent a radical departure from established policy. III. With rospect, to intergovernmental agreements to rogulate the production, exportation, importation, or prices of primary commodities, each country joining the ITO will commit itself (1) (2) (3) not to enter into any such agreement unless the not to adhere to any such agreement unless its not to adhere to any such agreement unless it contains specified provisions designed to safeguard the interests of consumers, including an equal vote for producer and consumer interests, (4) to modify or withdrew from any agreement that the With respect to subsidies, each country joining the ITO will commit itself (1) not to subsidize the exportation of any commodity (2) not to subsidize the exportation of any primary (3) upon request, to discuss with the ITO or its In these cases, as elsewhere, the procedure of enforcement through nullification and impairment action applies. The limitations on the freedom to subsidize are admittedly weak. The rules governing commodity agreements are more important. In the absence of these rules, no government will be under any commitment not to enter into such agreements, in any field, for any period of time, containing no safeguards for the protection of consumer interests. Under the Charter, in effect, no such agreement can be concluded unless its terms are acceptable to the United States. V. With respect to the inter-relationship between the international trade program and domestic programs for the stabilization of industrial activity, each country joining the TTO will commit itself (1) to "take action designed to achieve and maintain This commitment, originally proposed by the United States, is consistent with the provisions of the Employment Act of 1946. sists, a Member with a heavy export balance commits itself (2) to "make its full contribution, while appropriate action shall be taken by the other Members concerned, toward correcting the situation" (Art. 4). This wording involves a recognition of the inescapable fact that no country can continue indefinitely to sell far more than it buys. The character of the "contribution" by the overselling country is for it alone to decide. And "appropriate action" by others is also required. VI. With respect to economic development, each country joining the ITO will commit itself (1) to take action designed to develop its resources (3) to cooperate with other international organizations in promoting and facilitating economic development (Art. 10). VII. With respect to the treatment of private foreign investments, countries joining the ITO will commit themselves (1) (2) not to take "unreasonable or unjustifiable injurious to the rights or interests of nationals of other Members in the enterprise, skills, capital, arts or technology which they have supplied" (Art. 11); to provide "adequate security for existing and sec (3) to impose no requirements as to the ownership of investments that are not "just" (Art. 12); (4) to impose no other requirements with respect to investments that are not "reasonable" (Art. 12); and (5) to "enter into consultation or to participate in and and the ITC may "formulate and promote the adoption of a general agreement . . . regarding the conduct, practices and treatment of foreign investment" (Art. 11). If another Member fails to provide adequate security for American imposes requirements as to the ownership of investments which are not just, or other requirements with respect to investments cr takes any unreasonable or unjustifiable action or refuses to participate in negotiations directed toward agreements regarding the treatment of foreign investments, the United States may complain that benefits accruing to it under the Charter are being nullified or impaired (Art. 93), com and the ITO may then release the United States, on a pensatory basis, from "obligations or the grant of concessions to the offending Member" (Art. 94). 2. EXCEPTIONS The exceptions or possible exceptions to the general rules contained in the Charter fall into the following general categories: (1) definitions of jurisdiction which except matters covered in other parts of the Charter, by other international agreements, or by other intergovernmental organizations; (2) routine, boiler-plate exceptions copied from (3) temporary exceptions, limited to the post-war (4) exceptions permitting the retention of existing preferences, mixing regulations, and screen to reduction or elimination through negotiation; (5) other exceptions of minor importance which are designed, in most cases, to permit a single country to continue to employ a particular measure which would otherwise be inconsistent with the general principles of the Charter; and (6) a half dozen exceptions of major importance. Among thesc major exceptions, three were included on the initiative of the United States as prerequisites to acceptance of the Char ter: (1) tariff concessions may be suspended or withdrawn if increased imports cause or threaten serious injury to domestic producers (Art. 40); (2) quotas may be imposed on imports and subsidies paid on exports of agricultural products when domestic prices are maintained at levels higher than world prices through measures of the sort that are employed in the United States (Art. 20, 27); and (3) measures adopted and agreements entered into for the protection of essential security interests are exempt, in general, from the provisions of the Charter (Art. 99). None of these escapes requires the prior approval of the ITO. There remain three possible escapes of major importance that are likely to be used by other countries and not by the United States: (1) quantitative restrictions may be imposed and (2) exceptions to the most-favored-nation rule; (3) exceptions to other rules respecting restrictions |