The Dickenson Bay Agreement
Agreement Establishing the Caribbean Free Trade Association
The Governments of Antigua, Barbados and British Guiana -
SHARING a common determination to fulfil within the shortest possible time
the hopes and aspirations of their peoples of other Caribbean countries
for full employment and improved living standards;
CONSCIOUS that these goals can most rapidly be attained by the optimum use
of available human and other resources and by accelerated and sustained
economic development;
AWARE that the broadening of domestic markets through the elimination of
barriers to trade between the territories is a prerequisite to such
development;
CONVINCED that such elimination of barriers to trade can best be achieved
by the immediate establishment of a Free Trade Economic Community for all
the countries who so desire;
HAVE AGREED as follows:-
ARTICLE 1
ASSOCIATION 1. An Association to be called the Caribbean Free Trade Association
(hereinafter referred to as "the Association") is hereby established.
2. The Members of the Association, hereinafter referred to as "Member
Territories" shall be the Territories on behalf of the Governments of
which this Agreement is ratified in accordance with Article 31 and such
other Territories as participate therein by virtue of paragraph 1 of
Article 32.
3. The institutions of the Association shall be a Council and such organs
as the Council may set up.
4. The Caribbean Free Trade Association shall operate over the areas of
the Member Territories collectively called the Caribbean Free Trade Area
(hereinafter referred to as "the Area").
ARTICLE 2
OBJECTIVES The objectives of the
Association shall be
a) to promote the expansion and diversification of trade in the area of
the Association;
(b) to secure that trade between member territories takes place in
conditions of fair competition;
(c) to encourage the progressive development of the economies of the Area;
(d) to foster the harmonious development of Caribbean trade and its
liberalisation by the removal of barriers to it.
ARTICLE 3
EXCLUSION FROM THIS AGREEMENT The provisions of the Agreement shall not affect the rights and
obligations under any agreements entered into by any of the parties to
this agreement before it is signed:
Provided, however, that each Party shall take any steps at its disposal
which are necessary to reconcile the provisions of any such agreements
with the purposes of this Agreement.
ARTICLE 4
IMPORT DUTIES 1. Subject to the provisions of Annex A, Member Territories shall not
apply any import duties on goods which are eligible for Area tariff
treatment in accordance with Article 5.
2. For the purposes of this Article and Annex A, the term "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 duties notified under Article 7 and other charges which
fall within that Article.
3. The provisions of this Article do not apply to fees and similar charges
in respect of services rendered.
ARTICLE 5
AREA ORIGIN FOR TARIFF PURPOSES 1. For the purposes of Articles 4 - 8, goods shall, subject to Annex B, be
accepted as eligible for Area tariff treatment if they are consigned from
a Member Territory to a consignee in the importing Member Territory and if
they are of Area origin under any one of the following conditions -
(a) that they have been wholly produced within the area;
(b) that they fall within a description of goods listed in a process list
to be established by decision of the Council and have been produced within
the area by the appropriate qualifying process described in that List;
(c) that they have been produced within the Area and that the value of any
materials imported from outside the Area or of undetermined origin which
have been used at any stage of the production of the good does not exceed
50 percent of the export price of the goods.
2. For the purposes of sub-paragraphs (a), (b) and (c) of paragraph 1 of
this Article, materials listed in the Basic Materials List which forms the
schedule to Annex B, which have been used in the state described in that
List in a process of production within the Area, shall be deemed to
contain no element imported from outside the Area.
3. Nothing in this agreement shall prevent a Member Territory from
accepting as eligible for Area tariff treatment any imports consigned from
another Member Territory, provided that the like imports consigned from
any Member Territory are accorded the same treatment.
4. Provisions necessary for the administration and effective application
of this Article are contained in Annex B.
5. The Council may decide to amend the provisions of this Article, Annex B
and the Process List established under sub-paragraph (b) of paragraph 1 of
this Article.
6. The Council shall from time to time examine in what respect this
Agreement can be amended in order to ensure the smooth operation of the
origin rules.
ARTICLE 6
DEFLECTION OF TRADE 1. For the purpose of this Article, trade is said to be deflected when-
(a) imports into a Member Territory of consignments of a particular
product from another Member Territory are increasing-
(i) as a result of the reduction or elimination in the importing Member
Territory of duties and charges in that product in accordance with Article
4 or 7, and
(ii) because the duties or charges levied by the exporting Member
territory on imports of raw materials or intermediate products, used in
the production of the product in by the importing Member Territory, and
(b) this increase in imports causes or would cause serious injury to
production which is carried on in the importing Member Territory.
2. The Council shall keep under review the question of deflections of
trade and their causes. It shall take such decisions as are necessary in
order to deal with the causes of deflection of trade by amending the rules
of origin in accordance with paragraph 5 or Article 5 or by such other
means as it may consider appropriate.
3. If a deflection of trade of a particularly urgent nature occurs, any
Member Territory may refer the matter to the Council. The Council shall
take its decision as quickly as possible and, in general within one month.
The Council may, by majority decision, authorise interim measures to
safeguard the position of the Member Territory in question. Such measures
shall not continue for longer than is necessary for the procedure under
paragraph 2 above to take place, and for not more than two months, unless
in exceptional cases, the Council, by majority decision, authorises an
extension of this period by not more than two months.
4. A Member Territory which is considering the reduction of the effective
level of its duties or charges on any product not eligible for Area tariff
treatment shall, as far as may be practicable, notify the Council not less
than thirty (30) days before such reduction comes into effect, and shall
consider any representations by other Member Territories that the
reduction is likely to lead to a deflection of trade. Information received
under this paragraph shall not be disclosed to any person outside the
service of the Association or the Governments of Member Territories.
5. When considering changes in their duties or charges on any product not
eligible for Area tariff treatment, Member Territories shall have due
regard to the desirability of avoiding consequential deflections of trade.
In case of any such change, any Member territory which considers that
trade is being deflected may refer the matter to the Council in accordance
with Article 26.
6. If, in the consideration of any complaint in accordance with Article
26, reference is made to a difference in the level of duties or charges on
any product not eligible for Area tariff treatment, that difference shall
be taken into account only if the Council finds by a majority vote that
there is a deflection of trade.
7. The Council shall review from time to time the provisions of this
Article and may decide to amend those provisions.
ARTICLE 7
REVENUE DUTIES AND INTERNAL TAXATION
1. Subject to the provisions of Annex C, Member Territories shall not -
(a) apply directly or indirectly to imported goods any fiscal charges in
excess of those applied directly or indirectly to like domestic goods, nor
otherwise apply such charges so as to afford effective protection to like
domestic goods; or
(b) apply fiscal charges to imported goods of a kind which they do not
produce, or which they do not produce in substantial quantities, in such a
way as to afford effective protection to the domestic production of goods
of a different kind which are substitutable for the imported goods, which
enter into direct competition with them which do not bear, directly or
indirectly, in the country of importation, fiscal charges of equivalent
incidence.
2. A Member Territory shall notify the Council of all fiscal 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
Territory applying the charge considers that the charge is, or has been
made, consistent with sub-paragraph (a) of paragraph 1 of this Article.
Each Member Territory shall, at the request of any other Member Territory,
supply information about the application of paragraph 1 of this Article.
3. For the purposes of this Article and Annex C -
(a) "fiscal charges" means revenue duties, internal taxes and other
internal charges on goods;
(b) "revenue duties" means customs duties and other similar charges
applied primarily for the purpose of raising revenue; and
(c) "imported goods" means goods which are accepted as being eligible for
area tariff treatment in accordance with Article 5.
ARTICLE 8
EXPORT DRAWBACK Each Member Territory may refuse to accept as eligible for Area tariff
treatment goods which benefit from export drawback allowed by Member
territories in which the goods have undergone the process of production
which form the basis of the claim to Area origin. In applying this
paragraph, each Member Territory shall accord the same treatment to
imports consigned from all other Member Territories.
For the purpose 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 from duties 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 7 applies and (ii) any protective
element in such fiscal charges;
(d) "materials" and "process of production" have the meanings assigned to
them in Rule 1 of Annex B.
ARTICLE 9
PROHIBITION OF EXPORT DUTIES
1. Member Territories shall not apply any export duties.
2. The provisions of this article shall not prevent any member Territory
from taking such measures as are necessary to prevent evasion, by means of
re-export, of duties which it applies to exports to territories outside
the Area.
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 from any Member Territory to a consignee in any other
Member Territory.
ARTICLE 10
CO-OPERATION IN CUSTOMS ADMINISTRATION
Member Territories shall take appropriate measures, including arrangements
regarding administrative co-operation, to ensure that the provisions of
Articles 4 to 8 and of Annexes A, B and C are effectively and harmoniously
applied, taking account of the need to reduce as far as possible the
formalities imposed on trade and of the need to achieve mutually
satisfactory solution of any difficulties arising out of the operation of
those provisions.
ARTICLE 11
FREEDOM OF TRANSIT Products imported into, or exported from, a Member Territory shall enjoy
freedom of transit within the Area and shall only be subject to the
payment of the normal rates for services rendered.
ARTICLE 12
DUMPED AND SUBSIDISED IMPORTS
1. Nothing in this Agreement shall prevent any Member Territory from
taking action against dumped or subsidised imports consistently with any
international obligations to which it is subject.
2. Any products which have been exported from one Member Territory to a
consignee in another Member territory and have not undergone any
manufacturing process since exportation shall, when re-imported into the
first member territory, be admitted free of quantitative restrictions and
measures with equivalent effect. They shall also be admitted free of
customs duties and charges with equivalent effect, except that any
allowance by way of drawback, relief from duty or otherwise, given by
reason of the exportation from the first member territory, may be
recovered.
3. If any industry in any Member Territory is suffering or is threatened
with material injury as the result of the import of dumped or subsidised
products into another Member Territory, the latter Member Territory shall,
at the request of the former Member Territory, examine the possibility of
taking, consistently with any international obligations to which it is
subject, action to remedy the injury or prevent the threatened injury.
ARTICLE 13
QUANTITATIVE IMPORT RESTRICTIONS
1. Subject to the provisions of Annex D, a Member Territory shall not
apply any quantitative restrictions on imports of goods from any other
part of the area.
2. For the purposes of the proceeding paragraph and Annex D,
"Quantitative restrictions" means prohibitions or restrictions on imports
into any Member Territory from any other part of the area whether made
effective through quotas, import licences or other measures with
equivalent effect, including administrative measures and requirements
restricting import.
3. The provisions of this article shall not prevent any Member territory
from taking such measures are as necessary to prevent evasion of any
prohibitions or restrictions which it applies to imports from territories
outside the area.
ARTICLE 14
QUANTITATIVE EXPORT RESTRICTIONS
1. A Member Territory shall not apply any prohibitions or restrictions on
exports to any other part of the Area, whether made effective through
quotas or export licences or other measures with equivalent effect.
2. The provisions of this Article shall not prevent any Member Territory
from taking such measures as are necessary to prevent evasion of any
prohibitions or restrictions which it applies to exports to territories
outside the Area.
ARTICLE 15
GENERAL EXCEPTIONS Provided that such measures are not used as a means of arbitrary or
unjustifiable discrimination between Member Territories , or as a
disguised restriction on the inter-territorial trade of the Area, nothing
in Articles 13 and 14 shall prevent the adoption or enforcement by any
Member Territory of Measures-
(a) necessary to protect public morals;
(b) necessary for the prevention of disorder or crime;
(c) necessary to protect human, animal or plant life or health;
(d) necessary to secure compliance with laws or regulations relating to
customs enforcement, or to the classification, grading or marketing of
goods, or to the operation of monopolies by means of state enterprises or
enterprises given exclusive or special privileges;
(e) necessary to protect industrial property or copyrights or to prevent
deceptive practices;
(f) relating to gold or silver;
(g) relating to the products of prison labour;
(h) imposed for the protection of national treasures of artistic, historic
or archaeological value; or
(i) necessary to prevent or relieve critical shortages of foodstuffs in
any exporting Member Territory.
ARTICLE 16
SECURITY EXCEPTIONS Nothing in the Agreement shall prevent any Member Territory from taking
action which it considers necessary for the protection of its essential
security interests, where such action-
(a) is taken to prevent the disclosure of information;
(b) relates to trade in arms, ammunition or war materials or to research,
development or production indispensable for defence purposes, provided
that such action does not include the application of import duties or the
quantitative restriction of imports except in so far as such restriction
is permitted in accordance with Article 15 or is authorised by decision of
the council;
(c) is taken to ensure that nuclear materials and equipment made available
for peaceful purposes do not further military purposes; or
(d) is taken in time of war or other emergency in international relations.
2. Nothing in this Agreement shall prevent any Member Territory from
taking action to perform any obligations to which it is subject for the
purpose of maintaining international peace and security.
ARTICLE 17
GOVERNMENT AIDS 1. A Member territory shall not maintain or introduce-
(a) the forms of aid to export of goods to any other part of the Area of
the kinds which are described in Annex E; or
(b) any other form of aid, 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 agreement.
2. If the application of any form of aid by a Member territory, although
not contrary to paragraph 1 of this Article , frustrates the benefits
expected from such removal or absence of duties and quantitative
restrictions as is required by this Agreement and provided that the
procedure set out in paragraphs 1 to 3 of Article 26 has been followed,
the Council may, by majority decision, authorise any Member Territory to
suspend to the Member Territory which is supplying aid, the application of
such obligations under this Agreement as the Council considers
appropriate.
3. The Council may decide to amend the provisions of this Article and of
Annex B.
ARTICLE 18
PUBLIC UNDERTAKINGS 1. Member Territories shall ensure the elimination in the practices of
public undertakings, of-
(a) measures the effect of which is to afford protection to domestic
production which would be inconsistent with this Agreement if achieved by
means of a duty or charge with equivalent effect or quantitative
restriction or government aid; or
(b) trade discrimination on grounds of Territorial origin in so far as it
frustrates the benefits expected from such removal or absence of duties
and quantitative restrictions as is required by this Agreement.
2. In so far as the provisions of Article 19 are relevant to the
activities of public undertakings, that Article shall apply to them in the
same way as it applies to other enterprises.
3. Member Territories shall ensure that new practices of the kind
described in paragraph 1 of this Article are not introduced.
4. Where Member Territories do not have the necessary legal powers to
control the activities of regional or local government authorities or
enterprises under their control in these matters, they shall nevertheless
endeavour to ensure that those authorities or enterprises comply with the
provisions of this Article.
5. The Council shall keep the provisions of this Article under review and
may decide to amend them.
6. For the purpose of this Article, "public undertakings" means central,
regional or local government authorities, public enterprises and any other
organisation by means of which a Member Territory by law or in practice
controls or appreciably influences imports from, or exports to, any other
part of the Area.
ARTICLE 19
RESTRICTIVE BUSINESS PRACTICES
1. Member Territories recognise that the following practices are
incompatible with this Agreement in so far as they frustrate the benefits
expected from such removal or absence of duties and quantitative
restrictions as is required by this Agreement -
(a) agreement between enterprises, decisions by association of enterprises
and concerted practices between enterprises which have as their object or
result the prevention, restriction or distortion of competition within the
area;
(b) actions by which one or more enterprises take unfair advantage of a
dominant position within the Area or a substantial part of it.
2. If any practice of the kind described in paragraph 1 of this Article is
referred to the Council in accordance with Article 26, the Council may, in
any recommendation in accordance with paragraph 3 or in any decision in
accordance with paragraph 4 of that Article, make provision for
publication of a report on the circumstances of the matter.
3. (a) In the light of experience gained, the Council shall consider
before 31st December,1967, and may consider at any time thereafter whether
further or different provisions are necessary to deal with the effect of
restrictive business practices or dominant enterprises on the
inter-territorial trade of the Area.
(b) Such review shall include consideration of the following matters -
(i) specification of the restrictive business practices or dominant
enterprises with which the Council should be concerned;
(ii) methods of securing information about restrictive business practices
or dominant enterprises;
(iii) procedures for investigations;
(iv) whether the right to initiate inquiries should be conferred on the
Council.
(c) The Council may decide to make the provisions found necessary as a
result of the review envisaged in sub-paragraphs (a) and (b) of this
paragraph.
ARTICLE 20
ESTABLISHMENT 1. Each Member Territory recognises that restrictions on the establishment
and operation of economic enterprises therein by persons belonging to
other Member Territories should not be applied, through accord to such
persons of treatment which is less favourable than that accorded in such
matters to persons belonging to that Member Territory, in such a way as to
frustrate the benefits expected from such removal or absence of duties and
quantitative restrictions as is required by this Agreement.
2. Member Territories shall not apply new restrictions in such a way that
they conflict with the principle set out in paragraph 1 of this Article.
3. A Member Territory shall notify the Council within such period as the
Council may decide of particulars of any restrictions which it applies in
such a way that persons belonging to another Member Territory are accorded
in the first-mentioned Territory less favourable treatment in respect of
the matters set out in paragraph 1 of this Article than is accorded to
persons belonging thereto.
4. The Council shall consider before 31st December, 1967, and may consider
at any time thereafter, whether further or different provisions are
necessary to give effect to the principles set out in paragraph 1 of this
Article and may decide to make the necessary provisions.
5. Nothing in this Article shall prevent the adoption and enforcement by a
Member Territory of measures for the control of entry, residence, activity
and departure of persons where such measures are justified by reasons of
public order, public health or morality, or national security of that
Member Territory.
6. For the purposes of this Article-
(a) a person shall be regarded as belonging to a Member Territory if such
person-
(i) is a citizen of that Territory;
(ii) has a connection with that Territory of a kind which entitles him to
be regarded as belonging to, or, if it be so expressed, as being a native
of, the Territory for the purpose of such laws thereof relating to
immigration as are for the time being in force ; or
(iii) is a company or other legal person constituted in the Member
Territory in conformity with the law thereof and which that territory
regards as belonging to it, provided that such company or other legal
person has been formed for gainful purposes and has its registered office
and central administration, and carries on substantial activity, within
the Area;
(b) "economic enterprises" means any type of economic enterprises for
production of or commerce in goods which are of Area origin, whether
conducted by individuals or through agencies, branches or companies or
other legal persons.
ARTICLE 21
BALANCE OF PAYMENTS DIFFICULTIES
1. Notwithstanding the provisions of Article 13 any Member Territory may,
consistently with any international obligations to which it is subject,
introduce quantitative restrictions on imports for the purpose of
safeguarding its balance of payments.
2. Any Member Territory taking measures in accordance with paragraph 1 of
this Article shall notify them to the Council, if possible before they
come into force. The Council shall examine the situation and keep it under
review and may at any time by majority vote make recommendations designed
to moderate any damaging effect of these restrictions or to assist the
Member Territory concerned to overcome its difficulties. If the balance of
payments difficulties persist for more than 18 months and the measures
applied seriously disturb the operation of the Association, the Council
shall examine the situation and may, taking into account the interests of
all Member Territories, by majority decision, devise special procedures to
attenuate or compensate for the effect of such measures.
3. A Member Territory which has taken measures in accordance with
paragraph 1 of this Article shall have regard to its obligation to resume
the full application of Article 13 and shall, as soon as its balance of
payments situation improves, make proposals to the Council on the way in
which this should be done. The Council, if it is not satisfied that these
proposals are adequate, may recommend to the Member Territories
alternative arrangements to the same end. Decisions of the Council
pursuant to this paragraph shall be made by majority vote.
ARTICLE 22I
DIFFICULTIES IN PARTICULAR SECTORS
1. If, in a Member Territory -
(a) an appreciable rise in the unemployment in a particular sector of
industry or region is caused by a substantial decrease in internal demand
for a domestic product, and
(b) this decrease in demand is due to an increase in imports consigned
from other Member Territories as a result of the progressive reduction or
the elimination of duties, charges and quantitative restrictions in
accordance with Articles 4, 7 and 13, that Member Territory may,
notwithstanding any other provisions of this Agreement -
(i) limit those imports by means of quantitative restrictions to a rate
not less than the rate of such imports during any period of twelve months
which ended within twelve months of the date on which the restrictions
come into force; the restrictions shall not be continued for a period
longer than eighteen months, unless the Council, by majority decision,
authorises their continuance for such further period and on such
conditions as the Council considers appropriate; and
(ii) take such measures, either instead of or in addition to restriction
of imports in accordance with sub-paragraph (i) of this paragraph, as the
Council may, by majority decision, authorise.
2. In applying measures in accordance with paragraph 1 of this Article, a
Member Territory shall give like treatment to imports consigned from all
Member Territories.
3. A Member Territory applying restrictions in accordance with
sub-paragraph (i) of this Article shall notify them to the Council, if
possible before they come into force. The Council may at any time consider
those restrictions and may, by majority vote make recommendations designed
to moderate any damaging effect of those restrictions or to assist the
Member State concerned to overcome its difficulties.
4. This article shall have effect until 31st December, 1970.
5. Before 1st January, 1971, if the Council considers that some provision
similar to those in paragraphs 1 to 3 of this Article will be required
thereafter, it may decide that such provisions shall have effect for any
period after that date.
ARTICLE 23
APPROXIMATION OF INCENTIVE LEGISLATION
1. A Tax of any kind in a Member Territory shall not, by the introduction
or extension of incentive provisions at any time after this Agreement
takes effect, be rendered liable to mitigation to any extent to which no
tax of that kind elsewhere in the Area (if any) is rendered by incentive
provisions previously introduced or extended, liable to mitigation.
2. A Member Territory which is considering the introduction or alteration
of any incentive provisions shall, as far as may be practicable, notify
the Council not less than thirty days before such introduction or
alteration comes into effect, and shall consider any representations with
respect thereto by other Member Territories, any of which may refer the
matter to the Council under Article 26 if a breach of this Article is
apprehended. Information received under this paragraph shall not be
disclosed to any person outside the service of the Association or the
Governments of Member Territories.
3. The Council may on its own initiative recommend to Member Territories
proposals for the approximation of incentive provisions within the Area.
Such proposals may include schemes for the increase or reduction of
concessions within the Area consistently with the provisions of the
foregoing Articles of this Agreement, and , may be implemented
notwithstanding anything provided in paragraph 1 of this Article. The
Council may take any appropriate measure provided for in this Agreement in
furtherance of the objectives of this Article.
4. The Council may from time to time review the provisions of this Article
and may decide to amend those provisions.
5. For the purposes of this Article -
"incentive provisions" means any legislation or practice providing for the
granting of concessions for the purpose of encouraging the establishment
or development of manufacturing industry;
"concessions" means any tax exemptions or remissions or refunds of tax;
"tax" includes any impost, duty or due.
ARTICLE 24
ECONOMIC AND FINANCIAL POLICIES
Member Territories recognise that the economic and financial policies of
each of them affect the economies of other Member Territories and intend
to pursue those policies in a manner which serves to promote the
objectives of the Association. They shall periodically exchange views on
all aspects of those policies. The Council may make recommendations to
Member Territories on matters relating to these policies to the extent
necessary to ensure the attainment of the objectives of the smooth
operation of the Association.
ARTICLE 25
INVISIBLES Member Territories recognise the importance of invisible transactions and
transfers for the proper functioning of the Association. The Council may
decide on provisions with regard to such transactions and transfers as may
prove desirable, having due regard to any international obligations to
which Member Territories are subject.
ARTICLE 26
GENERAL CONSULTATIONS AND COMPLAINTS PROCEDURE
1. If any Member Territory considers that any benefit conferred upon it by
this Agreement or any objective of the Association is being or may be
frustrated and if no satisfactory settlement is reached between the Member
Territories concerned, any of those Member Territories may refer the
matter to the Council.
2. The Council shall promptly, by majority vote, make arrangements for
examining the matter. Such arrangements may include a reference to an
examining committee constituted in accordance with Article 27. Before
taking action under paragraph 3 of this Article, the Council shall so
refer the matter at the request of any Member Territory concerned. Member
Territories shall furnish all information which they can make available
and shall lend their assistance to establish the facts.
3. When considering the matter, the Council shall have regard to whether
it has been established that an obligation under this agreement has not
been fulfilled and whether and to what extent any benefit conferred by
this Agreement or any objective of the Association is being or may be
frustrated. In the light of this consideration and of the report of any
examining committee which may have been appointed, the Council may, by
majority vote, make to any Member Territory such recommendations as it
considers appropriate.
4. If a Member Territory does not or is unable to comply with a
recommendation made in accordance with paragraph 3 of this Article and the
Council finds, by majority vote, that an obligation under this Agreement
has not been fulfilled, the Council may, by majority decision, authorise
any Member Territory to suspend to the Member territory which has not
complied with the recommendation the application of such obligations under
this Agreement as the Council considers appropriate.
5. Any Member Territory may, at any time while the matter is under
consideration, request the Council to authorise as a matter of urgency,
interim measures to safeguard its position. If it is found by majority
vote of the Council that the circumstances are sufficiently serious to
justify interim action, and without prejudice to any action which it may
subsequently take in accordance with the preceding paragraphs of this
Article, the Council may, by majority decision, authorise a Member
Territory to suspend its obligations under this Agreement to such an
extent and for such a period as the Council considers appropriate.
ARTICLE 27
EXAMINING COMMITTEES
The examining committees referred to in Article 26 shall consist of
persons selected for their competence and integrity, who, in the
performance of their duties, shall neither seek nor receive instructions
from any Territory or from any authority or organisation other than the
Association. They shall be appointed, on such terms and conditions as may
be decided, by majority vote of the Council.
ARTICLE 28
THE COUNCIL
1. It shall be the responsibility of the Council -
(a) to exercise such powers and functions as are conferred upon it by this
Agreement;
(b) to supervise the application of this Agreement and keep its operation
under review;
(c) to consider whether further action should be taken by Member
Territories in order to promote the attainment of the objectives of the
Association and to facilitate the establishment of closer links with other
countries, unions of countries or international organisations.
2. Each Member Territory shall be represented in the Council and shall
have one vote.
3. The Council may decide to set up such organs, committees and other
bodies as it considers necessary to assist it on accomplishing its tasks.
4. In exercising its responsibility under paragraph 1 of this Article, the
Council may take decisions which shall be binding on all Member
Territories and may make recommendations to Member Territories.
5. Decisions and recommendations of the Council shall be made by unanimous
vote, except in so far as this Agreement provides otherwise. Decisions or
recommendations shall be regarded as unanimous unless any Member Territory
casts a negative vote. Decisions and recommendations which are to be made
by majority vote require the affirmative vote of a majority of all Member
Territories.
ARTICLE 29
ADMINISTRATIVE ARRANGEMENTS OF THE ASSOCIATION
1. The Council shall take decisions for the following purposes -
(a) to lay down the Rules of Procedure of the Council and of any bodies of
the Association, which may include provision that procedural questions may
be decided by majority vote;
(b) to make arrangements for the Secretariat services required by the
association;
(c) to establish the financial arrangements necessary for the
administrative expenses of the Association and the procedure for
establishing an annual budget.
2. The expenses of the Association shall be shared equally between the
Member Territories.
ARTICLE 30
RELATIONS WITH INTERNATIONAL ORGANISATIONS
The Council, acting on behalf of the Association, shall seek to procure
the establishment of such relationships with other international
organisations as may facilitate the attainment of the objectives of the
Association.
ARTICLE 31
RATIFICATION REQUIRED FOR EFFECTIVENESS
1. This Agreement shall be subject to ratification by the Legislatures of
all the Signatory Territories.
2. Instruments signifying such ratification shall be deposited with the
Government of Antigua, which shall notify the other Signatory Territories,
and, subject to the next following paragraph, this Agreement shall take
effect as soon as all such instruments have been so deposited.
3. If prior to the ratification of this Agreement by any Signatory
Territory that Territory indicates by notice to the Government of Antigua
that difficulties have arisen in relation to carrying any provision of
this Agreement into effect, the Agreement shall not take effect with
respect to that Territory except in accordance with the terms of a
supplementary agreement between all the signatory Territories providing
for the resolution of such difficulties.
ARTICLE 32
JOINING ASSOCIATION 1. Any Territory, though it be not a signatory hereto, may participate in
this Agreement, subject to prior approval of the Council of the
Territory's participation in this Agreement on terms and conditions
decided by the Council. The instrument duly signifying the agreement of
the Government of the Territory to its participation in this Agreement on
the terms and conditions decided as aforesaid shall be deposited with the
Government of Antigua which shall notify all other Member territories.
This Agreement shall have effect in relation to the participating
Territory as, and from the time, indicated in the Council's decision.
2. The Council may seek to procure the creation of an association
consisting of Member Territories and any other Territory, union of
Territories, or international organisation, and embodying such reciprocal
rights and obligations, common actions and special procedures as may be
appropriate.
3. For the purpose of this Article, "Territory" includes a sovereign state
internationally recognised.
ARTICLE 33
WITHDRAWAL Any Member Territory may withdraw from participation in this Agreement
provided that the Government thereof gives twelve months' notice in
writing to the Government of Antigua which shall notify the other Member
Territories.
ARTICLE 34
AMENDMENT Except where provision for modification is made elsewhere in this
agreement, including the Annexes to it, an amendment to the provisions of
this Agreement shall be submitted to the Governments of Member Territories
for acceptance if it is approved by decision of the Council, and it shall
have effect provided it is accepted by all such Governments. Instruments
of acceptance shall be deposited with the Government of Antigua which
shall notify the other Member Territories.
ARTICLE 35
ACQUISITION OF SOVEREIGN STATUS
1. If a Member Territory, upon becoming a sovereign state recognised
internationally, intimates its willingness to continue to participate in
this Agreement, then, notwithstanding its having become such a state, this
Agreement shall continue to have effect in relation to it.
2. For the purposes of paragraph 1 of this Article, any intimation
thereunder shall be given by notice to the Government of Antigua, which
shall notify all other Member Territories.
ARTICLE 36
ANNEXES The annexes to this Agreement are an integral part of this Agreement.
ARTICLE 37I
LEGAL CAPACITY, PRIVILEGES AND IMMUNITIES
1. The legal capacity, privileges and immunities to be recognised and
granted by the Member Territories in connection with the Association shall
be laid down in a Protocol to this Agreement
2. The Council, acting on behalf of the Association, may conclude with the
Government of the Territory in which the headquarters will be situated an
agreement relating to the legal capacity and the privileges and immunities
to be recognised and granted in connection with the Association.
IN WITNESS whereof the undersigned, duly authorised, have signed the
present Agreement for the Governments of Antigua, Barbados and British
Guiana.
Done at Dickenson Bay, ANTIGUA, this 15th day of December, 1965, in a
single copy which shall be deposited with the Government of Antigua by
which certified copies shall be transmitted to all other signatory and
participating Territories.
Signed by V.C. Bird , Chief Minister
For the Government of Antigua |
Signed by E.W. Barrow, Premier
For the Government of Barbados
|
Signed by L.F.S. Burnham, Premier
For the Government of British Guiana |
ANNEX "A"
1. Special arrangements are provided in this Annex for the progressive
elimination by Member Territories of import duties on such products as are
itemised according to the Standard International Trade Classification
(original) as follows:
SITC
Item No. |
Description of Product |
|
|
533-03 |
Prepared
paints, enamels, lacquer and varnishes |
552-02 |
Cleansing
preparations without soap (detergents) |
641-05 |
Bagasse board |
821-01 |
Wood furniture |
821-02 |
Metal
furniture |
821-09 |
Matresses |
841-02 |
Underwear and
shirts of knitted fabrics |
841-04 |
Underwear,
shirts and pajamas other than knitted |
2. On and after each of the following dates a Member Territory may apply
an import duty on any product eligible for Area tariff treatment as
mentioned in paragraph 1 of this Annex at a level not exceeding the
percentage of the basic duty specified against that date -
Effective date hereof 100 per cent
1st January 1967 80 per cent
1st January 1968 60 per cent
1st January 1969 40 per cent
1st January 1970 20 per cent
1st January 1971 0 per cent
3. For the purpose of this Annex -
"basic duty" means, in respect of any product imported into a Member
territory, the import duty applicable in that Territory on the 1st
January,1966, to the imports of that product consigned from other Member
Territories.
ANNEX
"B"
Rules regarding area origin for tariff purposes
For the purpose of determining the origin of goods under Article 5 and for
the application of that Article, the following Rules shall be applied:
Rule 1 - Interpretative Provisions
1. In determining the place of production of marine products and goods
produced therefrom, a vessel of a Member Territory shall be regarded as
part of that Territory. In determining the place from which goods have
been consigned, marine products taken from the sea or goods produced
therefrom at sea shall be regarded as having been consigned from a Member
Territory if they were taken by or produced in a vessel of a member
territory and have been brought direct to the Area.
2. A vessel which is registered shall be registered as a vessel of the
Member Territory in which it is registered.
3. "Materials" includes products, parts and components used in the
production of the goods.
4. Energy, fuel, plant, machinery and tools used in the production of
goods within the Area, and materials used in the maintenance of such
plant, machinery and tools, shall be regarded as wholly produced within
the Area when determining the origin of those goods.
5. "Produced" in sub-paragraph (c) of paragraph 1 of Article 5 and a
"Process of production" in paragraph 2 of that Article include the
application of any operation or process, with the exception of any
operation or process which consists only of one or more of the following
:-
(a) packing, wherever the packing materials may have been produced;
(b) splitting up into lots;
(c) sorting and grading;
(d) marking;
(e) putting up into sets.
6. The term "producer" includes a grower and a manufacturer and also a
person who supplies his goods otherwise than be sale to another person and
to whose order the last process in the course of the manufacturer of the
goods is applied by that other person.
Rule 2 - Goods wholly produced within the Area
For the purposes of sub-paragraph (a) of paragraph 1 of Article 5, the
following are among the products which shall be regarded as wholly
produced within the Area:-
(a) mineral products extracted from the ground within the Area;
(b) vegetable products harvested within the Area;
(c) live animals born and raised within the Area;
(d) products obtained within the Area from live animals;
(e) products obtained by hunting or fishing conducted within the Area;
(f) marine products taken from the sea by a vessel of a Member Territory;
(g) used articles fit only for the recovery of materials, provided that
they have been collected from users within the Area;
(h) scrap and waste resulting from manufacturing operations within the
Area;
(i) goods produced within the Area exclusively from one or both of the
following:-
(1) products within sub-paragraphs (a) to (h);
(2) materials containing no element imported from outside the Area or of
undetermined origin.
Rule 3 - Application of Percentage Criterion
For the purposes of sub-paragraph (c) of paragraph 1 of article 5 -
(a) Any materials which meet the conditions specified in sub-paragraph (a)
or (b) of paragraph 1 of that Article shall be regarded as containing no
element imported from outside the Area.
(b) The value of any materials which can be identified as having been
imported from outside the Area shall be their c.i.f. value accepted by the
customs authorities on clearance for home use, or on temporary admission,
at the time of last importation into the Member Territory where they were
used in a process of production, less the amount of any transport costs
incurred in transit through other Member Territories.
(c) If the value of any materials imported from outside the area cannot be
determined in accordance with sub-paragraph (b) of this rule, their value
shall be the earliest ascertainable price paid for them in the Member
Territory where they were used in a process of production.
(d) If the origin of any materials cannot be determined, such materials
shall be deemed to have been imported from outside the Area and their
value shall be the earliest ascertainable price paid for them in the
Member Territory where they were used in a process of production.
(e) The export price of the goods shall be the price paid or payable for
them to the exporter in the Member Territory where the goods were
produced, that price being adjusted, where necessary, to an f.o.b. or free
at frontier basis in that Territory.
(f) The value under sub-paragraphs (b), (c) or (d) or the export price
under sub-paragraph (e) of this Rule may be adjusted to correspond with
the amount which would have been obtained on a sale in the open market
between buyer and seller independent of each other. This amount shall also
be taken to be the export price when the goods are not the subject of a
sale.
Rule 4 - Unit of Qualification
1. Each article in a consignment shall be considered separately.
2. For the purposes of paragraph 1 of this Rule -
(a) where the original Standard International Trade Classification
specifies that a group, set or assembly of articles is to be classified
within a single item, such a group, set or assembly shall be treated as
one article;
(b) tools, parts and accessories which are imported with an article, and
the price of which is included in that of the article or for which no
separate charge is made, shall be considered as forming a whole with the
article, provided that they constitute the standard equipment customarily
included on the sale of articles of that kind;
(c) in cases not within sub-paragraphs (a) and (b), goods shall be treated
as a single article if they are so treated for purposes of assessing
customs duties by the importing Member Territory.
3. An assembled or disassembled article which is imported in more than one
consignment because it is not feasible for transport or production reasons
to import it in a single consignment shall, if the importer so requests,
be treated as one article.
Rule 5 - Segregation of materials
1. For those products or industries where it would be impracticable for
the producer physically to segregate materials of similar character but
different origin used in the production of goods, such segregation may be
replaced by an appropriate accounting system, which ensures that no more
goods received Area tariff treatment than would have been the case if the
producer had been able physically to segregate the materials.
2. Any such accounting system shall conform to such conditions as may be
agreed upon by the Member Territories concerned in order to ensure that
adequate control measures will be applied.
Rule 6 - Treatment of mixtures
1. In the case of mixtures, not being groups, sets or assemblies of
separable articles dealt with under Rule 4, a Member Territory may refuse
to accept as being of Area origin any product resulting from the mixing
together of goods which would qualify as being of Area origin with goods
which would not so qualify, if the characteristics of the products as a
whole are not essentially different from the characteristics of the goods
which have been mixed.
2. In the case of particular products where it is, however recognised by
Member Territories concerned to be desirable to permit mixing of the kind
described in the foregoing paragraph, such products shall be accepted as
of Area origin in respect of such part thereof as may be shown to
correspond to the quantity of goods of Area origin used in the mixing,
subject to such conditions as may be agreed upon.
Rule 7 - Treatment of packing
1. Where for purposes of assessing customs duties a Member Territory
treats goods separately from their packing, it may also, in respect of its
imports consigned from another Member Territory, determine separately the
origin of such packing.
2. Where paragraph 1 of this Rule is not applied, packing shall be
considered as forming a whole with the goods and no part of any packing
required for their transport or storage shall be considered as having been
imported from outside the Area, when determining the origin of the goods
as a whole.
3. For the purpose of paragraph 2 of this Rule, packing with which goods
are ordinarily sold by retail shall not be regarded as packing required
for the transport or storage of goods.
Rule 8 - Documentary evidence
1. A claim that goods shall be accepted as eligible for Area tariff
treatment shall be supported by appropriate documentary evidence of origin
and consignment. The evidence of origin shall consist of either -
(a) a declaration of origin completed by the last producer of the goods
within the Area, together with a supplementary declaration completed by
the exporter in cases where the producer is not himself or by his agent
the exporter of the goods; or
(b) a certificate given by a governmental authority or authorised body
nominated by the exporting Member Territory and notified to the other
Member Territories together with a supplementary declaration completed by
the exporter of the goods.
These declarations, certificates and supplementary declarations shall be
in such form as may be agreed by the Governments of all the signatory
Territories, and a copy of such Agreement shall be deposited with the
Government of Antigua by which certified copies shall be transmitted to
all other signatory and participating Territories. The agreed forms shall,
for the purposes of paragraph 5 of Article 5, be deemed to form part of
this Annex.
2. The exporter may choose either of the forms of evidence referred to in
paragraph 1 of this Rule. Nevertheless the authorities of the country of
exportation may require for certain categories of goods that evidence of
origin shall be furnished in the form indicated in sub-paragraph (b) of
that paragraph.
3. In cases where a certificate of origin is to be supplied by a
governmental authority or an authorised body under sub-paragraph (b) of
paragraph 1 of this rule, that authority of body shall obtain a
declaration as to the origin of the goods given by the last producer to
the goods within the area. The governmental authority or the authorised
body shall satisfy themselves as to the accuracy of the evidence provided,
where necessary they shall require the production of additional
information, and shall carry out any suitable check. If the authorities of
the importing member Territory so require, a confidential indication of
the producer of the goods shall be given.
4. Nominations of authorised bodies for the purpose of sub-paragraph (b)
of paragraph 1 of this rule, may be withdrawn by the exporting Member
Territory if the need arises. Each member Territory shall retain, in
regard to its imports, the right of refusing to accept certificates from
any authorised body which is shown to have repeatedly issued certificates
in an improper manner, but such action shall not be taken without adequate
prior notification to the exporting Member territory on the grounds for
dissatisfaction.
5. In cases where the member Territories concerned recognise that it is
impracticable for the producer to make the declaration of origin specified
in sub-paragraph (a) of paragraph 1 or in paragraph 3 of this Rule, the
exporter may make that declaration in such for as those Member Territories
may for the purpose specify.
6. The Council may decide that further or different provisions concerning
evidence of origin or of consignment shall apply to particular categories
of goods or classes of transactions.
Rule 9 - Verification of evidence of origin
1. The importing Member Territory may as necessary require further
evidence to support any declaration or certificate of origin furnished
under Rule 8.
2. The importing Member Territory shall not prevent the importer from
taking delivery of the goods solely on the grounds that it requires such
further evidence, but may require security for any duty or other charge
which may be payable.
3. Where under paragraph 1 of this Rule, a Member Territory has required
further evidence to be furnished, those concerned in another Member
territory shall be free to produce it to a governmental authority or an
authorised body of the latter Territory, who shall after thorough
verification of the evidence, furnish an appropriate report to the
importing Member Territory.
4. Where it is necessary to do so by reason of its legislation, a Member
Territory may prescribe that requests by the authorities of an importing
Member Territories for further evidence from those concerned in the Member
Territory shall be addressed to a specified governmental authority, who
shall after thorough verification of the evidence furnish an appropriate
report to the importing Member Territory.
5. If the importing Member Territory wishes an investigation to be made
into the accuracy of the evidence which it has received, it may make a
request to that effect to the other Member Territory or Territories
concerned.
6. Information obtained under the provisions of this Rule by the importing
Member Territory shall be treated as confidential.
Rule 10 - Sanctions
1. Member Territories undertake to introduce legislation making such
provision as may be necessary for penalties against persons who, in their
territory, furnish or cause to be furnished a document which is untrue in
a material particular in support of a claim in another Member territory
that goods should be accepted as eligible for Area tariff treatment. The
penalties applicable shall be similar to those applicable in cases of
untrue declarations in regard to payment of duty on imports.
2. A Member territory may deal with the offence out of court, if it can be
more appropriately dealt with by a compromise penalty or similar
administrative procedure.
3. A Member Territory shall be under no obligation to institute or
continue court proceedings, or action under paragraph 2 of this Rule -
(a) if it has not been requested to do so by the importing Member
Territory to which the untrue claim was made; or
(b) if, on the evidence available, the proceedings would not be justified.
SCHEDULE
BASIC MATERIALS LIST
These materials may always be regarded as originating wholly within the
"Area" when used in the state described in this List in a process of
production within the "Area"
Note: The classification used in this List is in accordance with the
original Standard International Trade Classification.
041-01 Wheat and spelt (including meslin) unmilled
043-01 Barley unmilled
045-01 Rye unmilled
045-02 Oats unmilled
045-09 Cereals unmilled (except rice and corn)
046-01 Semolina
048-02 Malt
051-04 Apples
051-05 Grapes
054-01 Potatoes (excluding sweet)
054-03 Hop cones fresh or dried
061-09 Lactose, glucose, maltose, caramel
072-01 Cocoa beans
075-01 Pepper
075-02 Spices, ginger, cinnamon, vanilla, nutmeg, mace
081-02 Pollard, sharps
221-05 Linseed
231-02 Synthetic rubbers and rubber substitutes
244-01 Cork, raw and waste (including natural cork in blocks and sheets)
251-01 Waste paper and old paper
261 Silk
262 Wool and other animal hair
264 Jute, including jute cuttings and waste
265 Vegetable fibres except cotton, jute and coir fibre
272-05 Salt, coarse and rock
272-06 Sulphur
272-11 Gypsum and plasters
272-16 Natural graphite
282-01 Iron and steel scrap
284-01 Non-ferrous metal scrap
291-09 Sponges, fish eggs (not for food) bristles, hair and their wastes
292-02 Natural gums, resins and balsam
292-09 Kapok
312-01 Crude petroleum
411-01 Oils from fish and marine animals
411-02 Linseed oil
412-11 Castor oil
413-02 Hydrogenated oils and fats
413-04 Waxes of animal or vegetable origin
511-01 Sulphuric acid
511-09 Calcium carbide, sodium pyrophosphate and white lead
512-09 Saccharine to be used for medicinal purposes only
531-01 Cola tar, dyestuffs and natural indigo
531-01 Dyeing extracts
532-02 Tanning extracts
532-03 Synthetic tanning materials
551-01 Essential vegetable oils
599-01 Synthetic plastic materials in blocks, sheets, rods, tubes, power
and other primary forms
599-04 Casein, albumen, gelatin, glue
611 Leather
651 Textile yarn and thread
652 Cotton fabrics
653 Miscellaneous fabrics
655 Special textile fabrics
655-02 Hat bodies of wool felt and fur felt
655-06 Twine of cotton
655-06 Twine of hemp
671-01 Silver, unworked and partly worked
671-02 Platinum and other metal of platinum group, unworked and partly
worked
672-03 Pearls worked
681-01 Pig iron and sponge iron (including iron and steel powder)
681-02 Ferro-alloys
681-03 Ingots, blooms, slabs, billets, sheet bars, and tinplate bars and
equivalent primary forms
681-04 Angles, shapes, sections, bars
681-05 Universals, plates and sheets, uncoated
681-06 Hoop and strip (including tube strip and steel strip for springs)
coated or not
681-13 Steel tubes and fittings, welded or drawn
681-14 Pipes and fittings, case whether gray iron or malleable iron
682-01 Copper and alloys not refined and refined unwrought
682-02 Copper and alloys of copper, worked (bars, rods, plates, sheets,
wire, pipes, tubes, castings and forgings
683-01 Nickel and nickel alloys unwrought
683-02 Nickel and alloys of nickel, worked (bars, rods, plates, sheets,
wire, pipes, tubes, castings and forgings
684-01 Aluminium and aluminium alloys unwrought
684-02 Aluminium and alloys of aluminium, worked (bars, rods, plates,
sheets, wire, pipes, tubes, castings and forgings
685-01 Lead and lead alloys unwrought
685-02 Lead and alloys of lead, worked (bars, rods, plates, sheets, wire,
pipes, tubes, castings and forgings
689-01 Non-ferrous base metals employed in metallurgy and their alloys,
n.e.s. unwrought
689-02 Non-ferrous base metals employed in metallurgy and their alloys
n.e.s. worked (bars, rods, sheets, wire, pipes, tubes, castings and
forgings)
699-05 Expanded metal of iron and steel
699-06 Expanded metal of aluminium, copper and other non-ferrous base
metals
899-05 Buttons and studs of all materials, except those of precious metals
and precious stones.
ANNEX "C"
1. Special arrangements are provided in this Annex for the progressive
elimination by Member Territories of the effective protective element in
revenue duties (hereinafter referred to as protective revenue duty)
applied to such imported goods as are itemised under the Standard
International Trade Classification (original) as follows :-
SITC Item No. Description of Product
112-04 Rum
2. On and after each of the following dates, a Member Territory may apply
a protective revenue duty on imports mentioned in paragraph 1 of this
Annex at a level not exceeding the percentage of the basic protective duty
specified against that date:-
Effective date
hereof |
100 per cent |
1st January
1967 |
40 per cent |
1st January
1968 |
30 per cent |
1st January
1969 |
20 per cent |
1st January
1970 |
10 per cent |
1st January
1971 |
0 per cent |
3. Before the 1st of July, 1966, each Member Territory shall notify to the
Council its basic protective duty on the product to which paragraph 2 of
this Annex applies. Each Member Territory shall also notify to the Council
the reductions which it intends to bring into effect in accordance with
the said provisions.
4. For the purpose of this Annex -
"Basic protective duty" means the protective revenue duty applicable in
the Member Territory on the 1st January, 1966, to imports of rum consigned
from other Member Territories.
ANNEX "D"
1. Special arrangements are provided in this Annex for the progressive
elimination by Barbados and British Guiana of quantitative restrictions on
imports consigned from each other of the goods itemised under the Standard
International Trade Classification (original) as follows :-
SITC Item No. Description of Product
91-01 Margarine: animal, vegetable or mixed
2. Barbados and British Guiana shall eliminate all quantitative
restrictions on imports consigned from each other of the goods mentioned
in paragraph 1 of this Annex as soon as practicable and not later than 1st
January, 1971.
3. On 1st January, 1967, Barbados and British Guiana shall each establish
for imports to which paragraph 2 of this Annex applies, a quota of a size
not less than 25 per cent above the basic Guianese quota.
4. On 1st January, 1968, and 1st January in each succeeding year, Barbados
and British Guiana shall each increase the quota established in accordance
with paragraph 3 of this Annex by not less than 25 per cent of an amount
equivalent to the basic Guianese quota as already increased pursuant to
this Annex.
5. Barbados and British Guiana shall each notify to the Council details of
the quota established in accordance with the provisions of this Annex.
6. For the purpose of this Annex -
"Basic Guianese quota" means any quota or the total of any quotas which
have been established by British Guiana in respect of imports in the
calendar year 1964 of the goods consigned from Barbados.
ANNEX "E"
List of Government aids referred to in paragraph 1 of Article 17:-
(a) currency retention schemes or any similar practices which involve a
bonus on exports or re-exports;
(b) the provision by governments of direct subsidies to exporters;
(c) the remission, calculated in relation to exports, of direct taxes or
social welfare charges on industrial or commercial enterprises;
(d) the exemption, respect of exported goods, from charges or taxes, other
than charges in connection with importation or indirect taxes levied at
one or several stages on the same goods if sold for internal consumption,
or the payment, in respect of exported goods, of amounts exceeding those
effectively levied at one or several stages on these goods in the form of
indirect taxes or of charges in connection with importation or in both
forms;
(e) in respect of deliveries by governments or governmental agencies of
imported raw materials for export business on different terms than for
domestic business, the charging of prices below world prices;
(f) in respect of government export credit guarantees, the charging of
premiums at rates which are manifestly inadequate to cover the long-term
operating coats and losses of the credit insurance institutions;
(g) the grant by governments (or special institutions controlled by
governments ) of export credit at rates below those which they have to pay
in order to obtain the funds so employed;
(h) the Government bearing all or part of the costs incurred by exporters
in obtaining credit.
SUPPLEMENTARY AGREEMENT UNDER ARTICLE 31(3) OF THE AGREEMENT
FOR THE ESTABLISHMENT OF THE CARIBBEAN FREE TRADE ASSOCIATION
SIGNED AT DICKENSON BAY, ANTIGUA ON 15 DECEMBER 1965 (1968) WHEREAS an Agreement (hereinafter referred to as the "Principal
Agreement") for the Establishment of a Caribbean Free Trade Area was
signed at Dickenson Bay, Antigua, on behalf of the Governments of Antigua,
Barbados and British Guiana on the 15th December, 1965;
AND WHEREAS it is provided by Paragraph 3 of Article 31 of the Principal
Agreement that, in the event of the notification of difficulties in
relation to carrying into effect any provision thereof to the Government
of Antigua by any Signatory Territory prior to its ratification thereof,
the Principal Agreement shall not take effect with respect to that
Territory except in accordance with a supplementary agreement between all
the Signatory Territories providing for the resolution of such
difficulties;
AND WHEREAS a Supplementary Agreement required to be read and construed as
one with the Principal Agreement has been signed on behalf of the
Governments of Antigua, Barbados and Guiana in keeping with the provisions
of paragraph 3 Article 31 of the Principal Agreement;
AND WHEREAS Guyana has not yet ratified the Principal Agreement and,
acting under the provisions of paragraph 3 of Article 31 thereof has
notified the Government of Antigua that certain difficulties have arisen
in relation to carrying the Principal Agreement into effect in view of an
undertaking given by the Signatories of the Principal Agreement, at the
Fourth Conference of Heads of Government of Commonwealth Caribbean
Countries, to conclude a further supplementary agreement on terms approved
by post-Conference machinery to give effect to the resolutions adopted at
the said Conference for the establishment of a wider Caribbean Free Trade
Area;
AND WHEREAS it was so resolved at the said Conference that the Governments
of the Commonwealth Caribbean Countries should approach the task of
freeing trade by using the Principal Agreement as a basis with suitable
modifications;
AND WHEREAS the terms of the further supplementary agreement to be
concluded for the purpose of effecting such suitable modifications to the
Principal Agreement as aforesaid have been approved by the post-Conference
machinery hereinafter mentioned;
AND WHEREAS the Governments of Antigua, Barbados and Guyana are desirous
of hereby concluding in conformity with the abovementioned provisions of
the Principal Agreement such further supplementary agreement for its
suitable modification and thereby providing for the resolution of the
difficulties which have arisen, as aforesaid.
NOW, THEREFORE IT IS HEREBY AGREED BY THE GOVERNMENTS OF ANTIGUA, BARBADOS
AND GUYANA AS FOLLOWS:
ARTICLE 1
SUBSTITUTION OF NEW PREAMBLE TO PRINCIPAL AGREEMENT
All the words appearing in the Principal Agreement before Article 1
thereof are hereby deleted and the following substituted therefor:
THE GOVERNMENTS OF THE SIGNATORY TERRITORIES -
SHARING a common determination to fulfil within the shortest possible time
the hopes and aspirations of the peoples of the Caribbean Territories for
full employment and improve living standards;
CONSCIOUS that these goals can most rapidly be attained by the optimum use
of available human and other resources and by accelerated, co-ordination
and sustained economic development;
AWARE that the broadening by domestic markets through the Elimination of
barriers to trade between the Territories is a pre-requisite to such
development;
CONVINCED that such elimination of barriers to trade can best be achieved
by the immediate establishment of a free trade area which will contribute
to this ultimate creation of a viable economic community of Caribbean
Territories;
MINDFUL of the difference levels of development attained by the
Territories of the Caribbean;
HAVE AGREED as follows
ARTICLE 2
AMENDMENT OF PROVISIONS OF PRINCIPAL AGREEMENT
There are hereby made, to the provisions of the Principal Agreement
referred to in the first column of the First Schedule hereto, the
amendments specified opposite such references, respectively in the second
column of the said Schedule.
ARTICLE 3
SUBSTITUTION OF NEW ARTICLE 25 OF PRINCIPAL AGREEMENT
Article 25 of the Principal Agreement is hereby deleted and the following
substituted therefor -
"
ARTICLE 25
INVISIBLES
The Council shall as soon as
practicable, having due regard to international obligations, decide the
treatment to be given to invisible transactions and transfers amongst
Member Territories with a view to promoting the objectives of this
Agreement."
ARTICLE 4
INSERTION OF NEW ARTICLES 38 AND39 IN PRINCIPAL AGREEMENT
The following Articles are hereby inserted in the Principal Agreement
after Article 37 thereof -
"ARTICLE 38
PROTECTION OF GUYANESE PETROLEUM PRODUCTS
1. Notwithstanding anything in this Agreement, any quantitative
restrictions within the meaning of Article 13 may, during any period for
which the Government of Guyana is party to any protective Agreement in
that behalf relating to a petroleum product produced in Guyana, be applied
on imports into Guyana of that petroleum product form any other part of
the Area:
Provided that no such restriction shall be so applied on imports of any
petroleum product, other than Bunker C, asphalt or road oil, during any
year except with a view to preventing the importation of that petroleum
product into Guyana to any extent in excess of -
(a) one third of such amount of that petroleum product as is reasonably
considered by the Government of Guyana to be marketable in Guyana during
such year; or
(b) the difference between such amount of that petroleum product as is
reasonably considered by the Government of Guyana to be marketable in
Guyana during such year and any lesser amount of that petroleum product
which is reasonably considered by the said Government to be producible in
Guyana during such year, whichever is more.
2. During any period first hereinbefore in this Article referred to in
connection with a petroleum product produced in Guyana, customs duties
shall, at rates not lower than those in force when this agreement takes
effect, be applicable to any permitted imports into Guyana of that
petroleum product from outside the area.
3. Not later than -
(a) the commencement, during any year, of period mentioned in paragraph 2
of this Article;
(b) the commencement, during any such period, of any year, Guyana shall
notify to the Council the Amounts mentioned in paragraph (b) of the
proviso to paragraph 1 of this Article in relation to that year and shall,
at the request of any Member Territory, inform the Council in strictest
confidence of the reasons of the Government of Guyana for arriving at such
amounts.
4. In this Article, "the petroleum product" includes any like or
substitutable petroleum product.
5. This Article shall not have effect for longer than 15 years from the
Commencement of a period mentioned in paragraph 2 of this Article.
ARTICLE 39
PROMOTION OF INDUSTRIAL DEVELOPMENT IN LESS DEVELOPED TERRITORIES
Upon any application made in that behalf by the less developed Territories
as defined in Annex B, the Council may, if necessary as a temporary
measure in order to promote the development an industry in any of those
Territories, authorise by majority decision such Territories to suspend
Area tariff treatment of any description of Imports eligible therefor on
grounds of production in other Member Territories, any of whom may, during
the period for which such authorisation is in force, suspend Area tariff
treatment of the like description of imports eligible therefor on grounds
of production in the less-developed Territories."
ARTICLE 5
VARIATION OF ANNEXES TO PRINCIPAL AGREEMENT
The Principal Agreement is hereby amended -
(a) by deleting Annex C and substituting for the letter "B" in the caption
to Annex B, the letter "C" ;
(b) by deleting from the Basic Materials List, which forms the Schedule to
the last-mentioned Annex, the items set out in Part 1 of the second
schedule hereto, and by inserting the word "EX" immediately before the
following items numbers in that list, that is to say, 291-09, 312-01,
511-09, 655-06 (wherever it appears), 699-05 and 699-06;
(c) (in substituting for every such classification of materials as appears
in the said Basic Materials List against any item number mentioned in the
first Column of Part II of the Second Schedule hereto The classification
set out opposite in the second column of that Part:
(d) by substituting for Annex A and Annex D the annexes set out in the
Third Schedule and the Fourth Schedule hereto, respectively, and inserting
(with appropriate caption) to Annex A to the Principal agreement the
Resolution set out in the Fifth Schedule hereto;
(e) by substituting for the letter "E" in the caption to Annex E the
letter "F" and insert as Annex E to the Principal Agreement the annex set
out in the Sixth Schedule hereto.
ARTICLE 6
SCHEDULES
The Schedules of this Agreement are an integral part of this Agreement.
ARTICLE 7
RESCISSION OF PREVIOUS SUPPLEMENTARY AGREEMENT
The Supplementary Agreement heretofore made between the parties to this
Agreement and required to be read and construed as one with the Principal
Agreement is hereby rescinded.
ARTICLE 8
CONSTRUCTION OF THIS AGREEMENT
This Agreement shall be read and construed as one with the Principal
Agreement.
IN WITNESS WHEREOF the undersigned, duly authorised, have signed the
present Agreement for the Governments of Antigua, Barbados and Guyana.
Done in a single copy which shall be deposited with the Government of
Antigua by which certified copies shall be transmitted to all other
Signatory and participating Territories.
Signed by V.C. Bird
For the Government of Antigua on the 18th day of March, 1968
at St. John's Antigua.
Signed by Errol Barrow
For the Government of Barbados on the 18th Day of March, 1968
at St. John's Antigua
Signed by Forbes Burnham
For the Government of Guyana on the15th day of March, 1968
at Georgetown, Guyana
FIRST SCHEDULE
Article 2
FIRST COLUMN |
SECOND COLUMN |
Article 1 |
(i) Delete the words and figures "or paragraphs 1 and 3"
(ii) Insert immediately after the figures "32" the word 'and, for the
purposes hereof, "Territories" includes sovereign states inter- nationally
recognised'
(iii) Substitute for the words "the Council may set up" the words "are
mentioned in Paragraph 3 of article 28"Article 2
|
Article 2 |
(i) Substitute for paragraph (c) the following -
"(c) to encourage the balanced progressive development of the economies of
the Area in keeping with paragraphs 3 to 10 of the Resolution adopted at
the Fourth Conference of the Heads of Government of Common-wealth
Caribbean Countries as set out in Annex A;"
(ii) Substitute for the full stop at the end of paragraph (d) a semicolon
and add the following paragraph -
"(c) to ensure that the benefits of free trade are equitably distributed
among the Member Territories."
|
Article 3 |
(i) Insert the figure "1" and a full stop, before the word "The"
(ii) Substitute for the words "it is signed" the words "the effective date
hereof and notified to the Council."
(iii) Substitute for the full stop at the end of the proviso a colon and
add the following proviso -
"Provided further that, in case of any non-observance of any provisions of
this Agreement on the part of a Member Territory pursuant to its exemption
in that behalf by virtue of the foregoing provisions of this Article, any
other Member Territory which considers that it would enjoy any benefit
under this Agreement but for such exemption may if no satisfactory
settlement is reached between the Member territories concerned, refer the
matter to the Council, which may, by majority decision, authorise any
Member Territory to suspend to the first mentioned Member Territory the
application of such obligations under this Agreement as the Council
considers meet, due regard being had to the report of such committee (if
any) as may have been constituted in accordance with Article 27 to examine
the matter, and paragraphs 2 and 5 of Article 26 shall apply mutatis
mutandis in the case of any reference under this proviso as they apply in
the case of a reference under paragraph 1 of Article 26."
(iv) Add the following as paragraph 2, 3, and 4 of Article 3 -
"2. All such agreements shall be registered in such form as the Council
shall decide and by way of such service in that behalf as shall be
arranged pursuant to sub-paragraph (b) of paragraph 1 of Article 29.
3. The Council shall annually review the observance by Parties to this
Agreement of the first proviso to paragraph 1 of this Article and may from
time to time, by majority vote, recommend to any of them the taking of any
steps for the purposes of that proviso.
4. For the purposes of this Article, "agreements" means any agreements
concluded by instruments or any arrangements made in writing which the
Council decides, by majority vote, constitute agreements for those
purposes, but does not include any agreement or arrangements entered into
by a Party hereto, not being the Government of Grenada, in respect of
which negotiations commenced after the 22nd February, 1968"
|
Article 4 |
(i) Substitute for the letter "A" wherever it appears after the
word "Annex", the Letter "B"
(ii) Substitute for the full stop at the end of the paragraph 3 a
semicolon and add to that paragraph the words "and nothing in paragraph 2
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
neither the like of which, nor a competitive substitute for which, is
produced in the importing Member territory, or to extend such application
to non-discriminatory internal charges on any such product."
(iii) Add the following as paragraph 4 of Article 4-
4. For the purposes of paragraph 3 of this Article
(a) "non-discriminatory" means non-discriminatory as between goods
eligible for Area tariff treatment as aforesaid and goods not so eligible;
(b) a charge shall not be deemed other than internal by reason only that
it is collected at the time and place of importation.
|
Article 5 |
(i) Substitute for the letter "B", wherever it appears after the
word "Annex", the letter "C"
(ii) Add the following paragraph -
"Nothing in this Agreement shall require a Member Territory to accept as
eligible for Area tariff treatment any imports consigned from another
Member Territory and consisting of, or manufactured from, oils and fats as
defined by clause 2 of the Oils and Fats Agreement, or any of such oils or
fats, where the Government of one of such Territories is a part to the
Oils and Fats Agreement, and the Government of the other of such
Territories is not a party to the Agreement, being the Agreement made on
the 26th January, 1967, between the Governments of Barbados, Dominica,
Grenada, Guyana, St. Lucia, St. Vincent and Trinidad and Tobago or any
agreement amending or replacing the same."
|
Article 7 |
Substitute for the letter "C", where ever it appears after the
word "Annex", the letter "D" |
Article 8 |
Substitute for the letter "B" after the word "Annex" in
sub-paragraph (d) the letter "C" |
Article 9 |
Add the following paragraphs -
"4 Nothing in this Article shall preclude a Member Territory from applying
to any commodity listed in Annex E, within ten years from the effective
date of this Agreement, export duty not exceeding that applicable by the
Member Territory to such commodity immediately before the effective date
of this Agreement.
5. Any Member Territory which, pursuant to Paragraph 4 of this Article,
applies or continues to apply export duty to any commodity listed in Annex
E shall notify the Council of every commodity on which export duty is
applicable and the rate of such duty. The Council shall keep under review
the question of such expert duties and may at any time by majority vote
make recommendations designed to moderate any damaging effect of those
duties."
|
Article 10 |
Substitute for
the letters and words "A, B and C" the letters and words "B, C and
D" |
Article 13 |
(i) Substitute for the words "the provisions of Annex D' in
paragraph 1 the words
"anything to the contrary in any agricultural marketing arrangements made
pursuant to paragraph 6 of Annex A and laid down in a Protocol between the
Parties of this Agreement."
(ii) Delete the words "and Annex D" in Paragraph 2. |
Article 14
Paragraph 1 |
Substitute for
the word "A" the words "Subject is mentioned in paragraph 1 of
Article 13, a." |
Article 17 |
(i) Substitute for the letter "E", wherever it appears after
the word "Annex", the letter "F"
(ii) Add the following paragraph -
"4 . The provisions of this Article -
(a) shall not apply in respect of inter-territorial trade within the Area
in any agricultural products until such time as Member Territories shall
agree upon the regional policy with respect to the production and
marketing, including the subsidization, of agricultural products;
(b) exclusive of sub-paragraph (a) of Paragraph 1 and paragraph 3, shall
not apply in respect of inter-territorial trade within the Area in any
manufactured goods until Member Territories have agreed upon a regional
policy with respect to incentives to industry."
|
Article 18 |
Add the following paragraph -
"7. The provisions of this Article shall not not apply in respect of inter
territorial trade within the Area -
(a) in agricultural products until such time as member Territories shall
agree upon a regional policy with respect to the production and marketing,
including the subsidization, of agricultural products;
(b) in manufactured goods until Member Territories have agreed upon a
regional policy with respect to incentives to industry"
|
Article 19Paragraph 3 |
Substitute for the ordinal, word and figures "31st December,
1967" in sub-paragraph (a) the ordinal word and figure 30th April, 1970"
|
Article 20 |
Substitute for the ordinal, word and figures 31st December,
1967" the ordinal, word and figures
"30th April, 1970."
|
Article 22 |
(i) Substitute for the ordinal, word and figures 31st December,
1970" in paragraph 4 the ordinal, word and figures 30th April, 1973".
(ii) Substitute for the ordinal, word and figures "1st January, 1971" in
paragraph 5 the ordinal, word and figures1st May, 1973". |
Article 23 |
(i) Substitute for the full stop at the end of Paragraph 1 a
colon and add to that paragraph the following proviso -
"Provided that, in resolving any question whether any breach by a Member
Territory of its obligations for the purposes of this Article is to be
apprehended or has resulted from the introduction or extension of any
incentive provisions, the Council shall take into account the overall
level and structure of taxation and the general economic circumstances in
that Member Territory as compared with other Member Territories."
|
Article 23
(cont'd) |
(ii) Renumber paragraphs 2, 3, 4 and 5 as paragraph 3,
4, 5 and 6, respectively, and insert the following as paragraph 2 -
"2. This Council may, by majority decision, authorise any Member Territory
to withhold, from imports of any products in relation to the manufacture
of which it has been established to the satisfaction of a majority of the
Council that any such breach by another Member Territory has resulted as
aforesaid, treatment the benefit whereof is applicable in conformity with
any provisions of this Agreement to such imports."
|
Article 28 |
(i) Substitute for paragraph 5 the following -
"3. The Commonwealth Caribbean Regional Secretariat shall be the principal
administrative organ of the Association and the Council may entrust it,
and may set up other organs, committees and bodies and entrust them with
such functions as the Council considers necessary to assist in
Accomplishing its tasks. Decisions of the Council pursuant to this
paragraph shall be made by majority vote."
(ii) Substitute for all the words appearing in paragraph 5 after the words
"negative vote." the words
"A decision or recommendation of the Council pursuant to any such
provision as aforesaid requires the affirmative votes of not less than
two-thirds of all Member Territories, and reference in any such provision
to a majority shall, in relation to the Council, be construed
accordingly."
(iii) Add the following paragraph -
"6. The Council may, by its decision to confer any authority under this
Agreement, impose conditions to which such authority shall be subject."
|
Article 29
Paragraph 2 |
Substitute for the words "equally between Member Territories" the words
"between Member Territories in conformity with the appropriate basis of
Territorial contributions to the annual budget of the Commonwealth
Regional Secretariat, approved at the Conference of Ministers of Trade
held in Guyana on 21st and 22nd February 1968, or in such other member as
the Council may decide" |
Article 31 |
(i) Insert after the words "as soon as" in paragraph 2 the
words "the number of Signatory Territories has been ascertained
consistently with paragraphs 4 and 5 of this Article and"
(ii) Add the following paragraphs -
"4. Any Commonwealth Caribbean Country by whose Government on instrument
signifying its endorsement of the Resolution set out in Annex A has been
deposited with the Government of Antigua shall be deemed for the purposes
of the Agreement to be a Signatory Territory as from the date of such
deposit, which shall be notified to the other Signatory Territories by the
Government of Antigua.
5. Notwithstanding anything to the contrary in this Agreement, the
preceding paragraph shall not apply on or after the 1st May, 1968, to a
Commonwealth Caribbean Country unless, before that date, there has been
deposited an instrument signifying ratification by its Legislature of this
Agreement, pursuant to the deposit by its Government of an instrument of
endorsement, in accordance with this Article."
(iii) Insert before the word "seek" in paragraph 2 the words, "pursuant to
any decision thereof in that behalf."
(iv) Delete paragraph 3.
|
SECOND SCHEDULE
Article 5(b) and (c)
PART I
061-02
211-01 Waste paper and old paper
271-05 Salt, course and rock
272-11 Gypsum and plasters
282-01 Iron and steel scrap
511-11 Sulphuric acid
512-09 Saccharine to be used for medicinal purposes only
655 Special textile fabrics
655-02 Mat bodies of wool felt and fur felt
PART II
Column 1 Column II
072-01 Cocoa beans (except flavoured cocoa)
072-01 Pepper (except sweet peppers, unground) and pimento whether
unground, ground or otherwise prepared.
075-02 Spices other than ginger, cinnamon, nutmeg and mace.
252-02 Natural gums,…………………………….
551-01 Essential vegetable oils (except lime, bay, Pimento, nutmeg and
orange oils)
611 Leather with the exception of sole leather
653 Textile fabrics, other than cotton fabrics
581-03 Ingots, blooms, slabs, billets, sheet…….. and tin plate bars of
iron and steel and equivalent primary forms
681-04 Iron and Steel bars
681-05 Universal, plates and sheets of iron and steel uncoated.
681-06 Hoop and strip of iron and steel (including tube strips and steel
strip for springs) coated or not
THIRD SCHEDULE
Article 5(d)
Annex `B'
1. Special arrangements are provided in this Annex for the progressive
elimination by less-developed Territories, within ten years from the
effective date of this Agreement in conformity with paragraph,4, of import
duties on such products as are itemised according to the Standard
International Trade Classification (original) as follows:-
SITS Item No. Description of Product
Ex 048-04 Biscuits, sweetened or unsweetened.
Ex 657-03 Coir products, mats and matting
Ex 899-13 Brushes made with plastic bristles, Except paint brushes and
artists' brushes
2. Special arrangements are provided in this Annex for the progressive
elimination by less-developed Territories within ten years from the
effective date of this Agreement in conformity with paragraph 4, and by
other Member Territories within five years from that date in conformity
with paragraph 3, of import duties on such products as are itemised
according to the Standard International trade Classification (original) as
follows:-
SITC Item No. Description of Product
C53 Fruits preserved and fruit preparations, Except frozen citrus
concentrates and Citrus segments
121-01 Tobacco manufactured (including scrap Tobacco, and tobacco stems)
Manufactured tobacco except cigars.
122 Prepared paints, enamels, lacquer and Varnishes. Ships' bottom
compositions, Putty and all others (including driers).
Ex 552-02 Cleansing preparations without soap detergents).
Ex 632 Crates and wooden containers.
Ex 721-04 Radio and Television sets.
Ex 721-19 Accumulators.
Ex 821 Wood furniture, metal furniture.
Ex 821-09 Mattresses.
Ex 841 Underwear, shirts and nightwear of fabrics, other than knitted.
Ex 851-01 Slippers and house footwear, wholly or mainly of leather.
851-02 Footwear wholly or mainly of leather .
3. On and after each of the following dates, a Member Territory may apply
an import duty on any product eligible for Area tariffs treatment, being a
product the duty on which is to be eliminate by the Member Territory
within five years as mentioned in the foregoing provisions of this Annex,
at a level not exceeding the percentage of the basic duty specified
against that date:-
Effective date hereof 100 per cent
1st May, 1969 80 per cent
1st May, 1970 60 per cent
1st May, 1971 40 per cent
1st May, 1972 20 per cent
1st May, 1973 0 per cent
4. On an after each of the following dates, a less-developed Territory may
apply import duty on any product eligible for Area tariff treatment, being
a product the duty on which is to be eliminated by the Territory within
ten years as mentioned in the foregoing provisions of this Annex, at a
level no exceeding the percentage of the basic duty specified against that
date:-
Effective date hereof 100 per cent
1st May, 1973 53 per cent
1st May, 1978 0 per cent
5. Notwithstanding anything hereinbefore provided, special arrangements
for the progressive elimination by Member Territories of import duty on
any product listed in this Annex shall, in case of its being produced in
any such Member Territory at the effective date hereof, come into
operation on that date and, in any other case, shall come into operation
in so far as applicable, if and when such production commences in any of
the Member Territories to which any of such arrangements have for the time
being reference and the percentages of basic duty which are thence forth
applicable and prescribed by this Annex in relation to that product may be
applied thereto accordingly.
6. Any less-developed Territory which considers that serious injury may be
done to an industry in such Territory by the total elimination of import
duty on any product as required by paragraph 4 may refer the matter to
this Council, which may, by majority decision, authorise the continued
application by any less-developed territory of import duty on such product
after the 30th April, 1978, due regard being had to the report of such
committee (if any) as may have been constituted in accordance with Article
27 to examine the matter, and paragraph 2 and 5 of Article 26 shall apply
mutatis mutandis in the case of a reference under this paragraph as they
apply in the case of a reference by a Member Territory to the Council
under that Article.
7. For the purposes of this Annex -
(a) "basic duty" means, in respect of any product imported into a Member
Territory, the import duty applicable in this Territory immediately before
the effective date hereof, to importer of such a product form the other
Territories becoming Member of the Association;
(b) "paragraph" means a paragraph of this Annex;
(c) "less-developed Territories" means Member Territories including
neither Barbados, Guyana, Jamaica nor Trinidad and Tobago.
(8) Nothing in this Agreement shall preclude any agreement made between
the less- developed Territories, and notified by them to the Council,
whereby their import duties on any of the products listed in this Annex
and imported form the less-developed Territories shall at any time be
eliminated by all the less-developed territories or reduced by not less
than such percentage of their respective basic duties as may be so agreed
between them, notwithstanding that no corresponding elimination or
reduction be made by them in respect of such products imported from the
other Member Territories except in so far as it may be necessary so to do
for the purposes of compliance with this Annex.
FOURTH SCHEDULE
Article 5(d)
Annex `D'
1. Special arrangements are provided in this Annex for the progressive
elimination by Member Territories, within five years from the effective
date of this Agreement in conformity with paragraph 3, of the effective
protective element in revenue duties (hereinafter referred to as
protective revenue duty) applied to such imported goods as are itemised
according to the Standard International Trade Classification (original) as
follows:-
SITC Item No. Description of Product
112-03 Beer, stout and ale.
112-04 Gin, vodka and whisky.
313 Petroleum Products.
2. Special arrangements are provided in this Annex for the progressive
elimination by less-developed Territories within ten years from the
effective date of this Agreement in conformity with paragraph 4 and by
other Member Territories within five years from that date in conformity
with paragraph 3, of protective revenue duty applied to imported goods
itemised under the Standard International Trade Classification (original)
as follows:-
SITC Item No. Description of Product
112-4 Rum
3. On and after each of the following dates, a Member Territory may apply,
to any imported goods the protective revenue duty on which is to be
eliminated by the Member Territory within five years as mentioned in the
foregoing provisions of this Annex, a protective revenue duty at a level
not exceeding the percentage of the basic protective revenue duty
specified against that date:-
Effective date hereof 100 per cent
1st May, 1969 40 per cent
1st May, 1970 30 per cent
1st May, 1971 20 per cent
1st May, 1972 10 per cent
1st May, 1973 0 per cent
4. On and after each of the following dates, a less-developed territory
may apply, to any imported goods the protective revenue duty on which is
to be eliminated by the Territory within ten years as mentioned in the
foregoing provisions of this Annex, a protective revenue duty at a level
not exceeding the percentage of the basic protective revenue duty
specified against that date:-
Effective date hereof 100 per cent
1st May, 1973 50 per cent
1st May, 1978 0 per cent
5. Before the 1st November, 1968, every Member Territory shall notify to
the Council its basic protective revenue duty on each product to which the
foregoing provisions of this Annex apply. Every Member Territory shall
also notify to the Council the reductions which it intends to bring into
effect in accordance with the said provisions.
6. Any less-developed Territory which considers that serious injury may be
done to an industry in such Territory by the total elimination of
protective revenue duty on any product as required by paragraph 4 may
refer the matter to the Council, which may, by majority decision,
authorise the continued application by any less-developed Territory of
protective revenue duty on such product after the 30th April, 1978, due
regard being had to the report of such committee (if any) as may have been
constituted in accordance with Article 27 to examine the matter, and
paragraphs 2 and 5 of Article 26 shall apply mutatis mutandis in the case
of any reference under this paragraph as they apply in the case of a
reference by a Member Territory to the Council under that Article.
7. For the purposes of this Annex -
(a) the basic protective revenue duty, in respect of any product imported
into a Member Territory, shall be the protective revenue duty applicable
in that Territory, immediately before the effective date hereof, to
imports of such a product from the other Territories becoming Members of
the Association;
(b) "less-developed Territories" shall have the meaning assigned thereto
by paragraph 7 of Annex `B';
(c) "paragraph" means a paragraph of this Annex.
8. Notwithstanding anything hereinbefore provided, the foregoing
provisions of this Annex shall, in respect of any imported goods itemised
as aforesaid, apply to an importing Member Territory wherein neither like
goods nor competitive substitutes therefor are produced subject to the
following modification, that is to say, the substitution for every
reference in those provisions to protective revenue duty of a reference to
import duty within the meaning of Article 4.
9. Nothing in this Agreement shall preclude any agreement made between the
less-developed Territories, and notified by them to the Council whereby
their protective revenue duties on any of the products listed in this
Annex and imported from the less-developed Territories shall at any time
be eliminated by all the less-developed Territories or reduced by not less
than such percentage of their respective basic protective revenue duties
as may be so agreed between them, notwithstanding that no corresponding
elimination or reduction be made by them in respect of such products
imported form the other Member Territories except in so far as it may be
necessary so to do for the purpose of compliance with this Annex.
FIFTH SCHEDULE
Article 5(d)
RESOLUTION ADOPTED BY FOURTH HEADS OF GOVERNMENT
CONFERENCE ON REGIONAL INTEGRATION
1. Free Trade should be introduced with respect to all intra-Commonwealth
Caribbean trade by 1st May 1968, subject to a list of reserved commodities
which would be freed within a five-year period for the more-developed
countries and within a ten-year period for the less-developed countries;
subject to special provisions for appeal by a less-developed Territory to
the governing body of the Free Trade Area for further extension in any
case where serious injury may be done to a territorial industry.
2. The Governments should approach the task of freeing of trade, by using
the CARIFTA Agreement as a basis with suitable modifications.
3. The Commonwealth Caribbean Countries shall immediately take steps to
initiate studies to determine whether the objective of achieving trade
expansion to the mutual benefit of the member states can be facilitated by
the establishment of a common external tariff in whole or in part.
4. The principle should be accepted that certain industries may require
for their economic operation the whole or a large part of the entire
regional market protected by a common external tariff or other suitable
instrument. The location of such industries and the criteria to be applied
in respect thereof, as well as the implementation of the principle
accepted above, should be the subject of immediate study - such study to
have special regard to the situation of the relatively less-developed
countries.
5. Subject to existing commitments a regional policy of incentives to
industry should be adopted as early as possible on the basis of studies
mentioned in Resolution 7 below, bearing in mind the special needs of the
less-developed countries for preferential treatment, such as soft loans.
6. Marketing agreements for an agreed list of agricultural commodities
should be sought to come into effect at the same time as the commencement
of free trade and the territories in the region should examine the
possibility of restricting imports from extra-regional sources of
agricultural products that are produced within the region and are
available for satisfying regional demand.
7. The principle of seeking to establishing more industries in the
less-developed countries should be accepted and the ECLA Secretariat
should be asked to undertake feasibility studies immediately with a view
to identifying industries which should be located in the less-developed
countries and to devising special measures for securing the establishment
of such industries in these countries. These studies should be submitted
to governments no later than one year after the commencement of free
trade.
8. The Commonwealth Caribbean Countries should endeavour to maintain and
improve regional carriers to facilitate the movement of goods and services
within the region.
9. The Commonwealth Caribbean Countries should agree to negotiate with the
Shipping Conference the rationalisation freight rates on extra-regional
traffic.
10. The ECLA Secretariat for the Caribbean should be asked to undertake a
number of studies, for example, studies on the harmonising of incentives
and the feasibility of establishing certain regional industries.
11. A committee of Ministers should be set up immediately, functioning as
a sub-committee of the Heads of Government Conference, with general
responsibility for the establishment of Free Trade Area.
SIXTH SCHEDULE
Article 5(e)
Annex "E"
copra, nutmegs and mace, arrowroot
sugar, cocoa, eddoes
coconut oil, sweet potatoes, peanuts
bauxite
SUPPLEMENTARY AGREEMENT NO. 2 TO THE
AGREEMENT FOR THE ESTABLISHMENT OF THE
CARIBBEAN FREE TRADE ASSOCIATION (1965)
WHEREAS an Agreement (hereinafter referred to as the "Principal
Agreement") for the establishment of a Caribbean Free trade Area
(hereinafter called "the Area") was signed at Dickenson Bay, Antigua, on
behalf of the Governments of Antigua, Barbados and British Guiana on the
15th December, 1965;
AND WHEREAS it is provided by paragraph (3) of Article 31 of the Principal
Agreement that, in the event of the notification of difficulties in
relation to carrying into effect any provision thereof to the Government
of Antigua by any Signatory Territory prior to its ratification thereof,
the Principal Agreement shall not take effect except in accordance with a
Supplementary Agreement between all the Signatory Territories providing
for the resolution of such difficulties;
AND WHEREAS the Government of Guyana, which comprises the territory
formerly comprised in British Guiana, has not yet ratified the Principal
Agreement and has notified the Government of Antigua that difficulties
have arisen in relation to carrying the provisions of the Principal
Agreement into effect in so far as they relate to the importation into
Guyana of petroleum products;
AND WHEREAS the Governments of Antigua, Barbados and Guyana are desirous
of hereby providing for the resolution the said difficulties, and agreeing
as to the construction of Article 4 of the Principal Agreement, and that
the Principal Agreement should, upon deposit of instruments signifying
ratification by them under Article 31 thereof, take effect in accordance
herewith:
NOW, THEREFORE, IT IS HEREBY AGREED BY THE GOVERNMENTS OF ANTIGUA,
BARBADOS AND GUYANA AS FOLLOWS:-
ARTICLE 1
PROTECTION OF GUYANESE PETROLEUM PRODUCTS
1. Notwithstanding anything in the Principal Agreement, any quantitative
restriction within the meaning of Article 13 thereof may, during any
period for which the Government of Guyana is a party to any protective
agreement in that behalf relating to a petroleum product produced in
Guyana, be applied on imports into Guyana of that petroleum product from
any part of the Area:
Provided that no such restriction shall be so applied on imports of any
petroleum product, other than Bunker C, asphalt or road oil, during any
year except with a view to preventing the importation of that petroleum
product into Guyana to any extent in excess of -
(a) one third of such amount of that petroleum product as is reasonably
considered by the Government of Guyana to be marketable in Guyana during
such year; or
(b) the difference between such amount of that petroleum of Guyana to be
marketable in Guyana during such year and any lesser amount of that
petroleum product which is reasonably considered by the said Government to
be producible in Guyana during such year, whichever is more.
2. During any period first hereinbefore in this Article referred to in
connection with a petroleum produced in Guyana, customs duties shall, at
rates not lower than those in force when the Principal Agreement takes
effect, be applicable to any permitted imports into Guyana of that
petroleum product from outside the Area.
3. Not later than -
(a) the commencement, during any year, of any period mentioned in
paragraph 2 of this Article;
(b) the commencement, during any such period, of any year, Guyana shall
notify to the Council of the Caribbean Free Trade Association the amounts
mentioned in paragraph (b) of the proviso to paragraph 1 of this Article
in relation to that year and shall, at the request of any member of the
Association, inform the Council in strictest confidence of the reasons of
the Government of Guyana for arriving at such amounts.
4. In this Article "that petroleum product" includes any like of
substitute petroleum product.
5. This Article shall not have effect for longer than 15 years from the
commencement of a period mentioned in paragraph 2 of this Article.
ARTICLE 2
CONSTRUCTION OF ARTICLE 4 OF PRINCIPAL AGREEMENT
Nothing in paragraph 2 of Article 4 of the Principal Agreement shall be
construed to exclude from the application of paragraph 1 of that Article
any tax or surtax of customs on goods the like of which, or substitutes
for which, are not produced in the importing Member Territory, or to
extend such application to internal charges on any such goods.
ARTICLE 3
CONSTRUCTION OF THIS AGREEMENT
This Agreement shall be read and construed as one with the Principal
Agreement.
IN WITNESS whereof the undersigned, duly authorised, have signed the
present Agreement for the Governments of Antigua, Barbados and Guyana.
Done in a single copy which shall be deposited with the Government of
Antigua by which certified copies shall be transmitted to all other
signatory and participating Territories.
Signed by E.H. Lake
For the Government of Antigua on the 10th day of December, 1966
at Georgetown, Guyana.
Signed by Cameron Tudor
For the Government of Barbados on the 10th day of December, 1966
at Georgetown, Guyana.
Signed by S.S. Ramphal
For the Government of Guyana on the 10th day of December, 1966
at Georgetown, Guyana.
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