Article Xii Of The Marrakesh Agreement
These negotiations are being initiated in good faith in order to achieve a satisfactory compensatory adjustment for both parties. These negotiations, as requested by Article XXIV, paragraph 6, take due account of tariff reductions made by other elements of the customs union when it was created on the same customs line. If these reductions are not sufficient to ensure the necessary compensatory adjustment, the customs union would propose countervailing measures that may take the form of tariff reductions on other tariff lines. Such an offer is taken into account by members who have binding bargaining rights over the amendment or withdrawal. If the compensatory adjustment remains unacceptable, negotiations should continue. If, despite these efforts, it is not possible to reach an agreement in the negotiations on the adjustment of the compensation under Article XXVIII in accordance with Article XXVIII, as established in the agreement on the interpretation of Article XXVIII of the 1994 GATT, the customs union may be free to amend or withdraw concessions; The members concerned are then free to withdraw substantially equivalent concessions under Article XXVIII. All balance-of-payments restrictions are subject to periodic review in the Committee under Article XII, paragraph 4, paragraph b), or Article XVIII, paragraph 12, point b), subject to the possibility of modifying the periodicity of consultations in agreement with the advisor or as part of a specific review procedure recommended by the General Council. (5) There is a commodity trade council, a services council and a council on aspects of intellectual property rights that affect trade (`TRIPS Advice`), acting under the general direction of the General Council. The Trade in Goods Council monitors the operation of the multilateral trade agreements in Schedule 1A. The Council for Trade in Services monitors the functioning of the general agreement on trade in services (`GATS`). The TRIPS Council monitors the functioning of the agreement on aspects of intellectual property rights that affect trade (hereafter referred to as the TRIPS Agreement).
These councils carry out the functions entrusted to them by their respective agreements and by the General Council. They decide on their internal regulations, subject to the agreement of the General Council. Membership in these councils is open to representatives of all members. These councils may meet to carry out their duties. The 1994 GATT obliges members to benefit from a reduction in tariffs which, as a result of the establishment of a customs union or an interim agreement leading to the formation of a customs union, undertakes to take countervailing measures for their constituent elements. With regard to interim agreements, the working group`s report can make appropriate recommendations on the proposed timetable and on the measures necessary to complete the establishment of the customs union or free trade area. It may provide, if necessary, for a further revision of the agreement. In the event of a conflict between a provision of the General Agreement on Tariffs and Trade in 1994 and a provision of another agreement in Schedule 1A of the World Trade Organization agreement (known as the „WTO agreement“ in the Schedule 1A agreements), priority is given to the definition of the other agreement.