International Trade Files, Lot 57D284, Box 1081
United States Delegation Position Paper (First Session of the Contracting Parties)
Attachment A–VIII2—Supersession of Article I and Part II of General Provisions of GATT by corresponding ITO Charter provisions.
Problem
- a.
- Should the United States approve supersession?
- b.
- Should supersession become effective when the ITO Charter enters into force, or should GATT be amended to provide for earlier supersession?
Recommendation
- a.
- The United States should approve supersession.
- b.
- Supersession should become effective when the Charter enters into force, pursuant to Article XXIX, paragraph 2.
Discussion
a. On the assumption that the Charter provisions finally agreed upon at Habana will be acceptable to the United States, no difficulty is foreseen in agreeing to supersession of Article I and Part II of GATT as provided for in Article XXIX, paragraph 2 which reads as follows: “(a) On the day on which the Charter of the International Trade Organization enters into force, Article I and Part II of this Agreement shall be suspended and superseded by the corresponding provisions of the Charter; …”
Amendment of GATT to provide for earlier supersession should be opposed by the United States for the following reasons:
- 1.
- The corresponding provisions of the Charter, especially such key clauses as those regarding non-discriminatory import restrictions, seem likely to be weaker than those in GATT. We should endeavor to maintain the stronger provisions as long as possible.
- 2.
- Amendment of GATT to provide for earlier supersession would involve substantial drafting problems. Chapter IV of the Charter could not be incorporated into GATT as an integral whole because it contains provisions (e.g., subsidies) not suitable for GATT.
- 3.
- Incorporation of certain Charter provisions in GATT prior to submission of Charter to Congress would create difficulties in securing approval of the Charter by Congress.