Consultations under Article XXV Sample Clauses

Consultations under Article XXV. 1 The 1979 “Understanding Regarding Notification, Consultation, Dispute Settlement and Surveillance” provides “that Article XXV may, as recognized by the CONTRACTING PARTIES, inter alia, when they adopted the report of the Working Party on particular difficulties connected with trade in primary products (L/930) also afford an appropriate avenue for consultation and dispute settlement in certain circumstances”.15 The Report of the Working Party in 1959 on “Particular Difficulties Connected with Trade in Primary Commodities” considered actions taken to follow up on a 1956 Resolution on “Particular Difficulties Connected with Trade in Primary Commodities,” which had provided for consultations under Article XXII concerning commodity problems. The 1959 Report noted that: “Paragraph 3 of the basic resolution has not been utilized, perhaps due to a lack of understanding of the potentialities of the General Agreement in facilitating consultations on trade problems of concern to individual contracting parties or the CONTRACTING PARTIES generally. Therefore the Working Party has thought it useful to describe the manner in which contracting parties may have recourse to the facilities of Articles XXII and XXV for dealing with problems in their trade in primary products … there may be situations in which joint action by the CONTRACTING PARTIES under Article XXV would be more appropriate [than consultations under Article XXII], for example, where a developing situation might lead to commercial policy measures being taken by one or more contracting parties which would be injurious to others unless it is dealt with by co-operative action. For a consultation to be initiated under Article XXV, there must be a prior decision by the CONTRACTING PARTIES which could, if they wished, invite non- contracting parties to participate. Thus under these two Articles there are procedures, for initiating action and a search for solutions, which are well adapted for dealing with many of the special situations arising in the trade in primary products which could be more appropriately handled by GATT techniques than otherwise. “Accordingly, the Working Party recommends that contracting parties, when contemplating action on problems arising in commodity trade, should consider the possibility of initiating consultations under Article XXII with a view to arriving at mutually acceptable solutions, thus avoiding the need for unilateral action. The CONTRACTING PARTIES are reminded that, when spe...