Discussions among Member Governments of the 0.5.C.D. have led to a broad measure

of agreement on a number of key elements which mi, ht be included in arrangements for

nt of special tariff treatment.

Beneficiary Countries

Special teriff treatment should be given to the exporta of any country, territory area claiming developing status. This formula would get over the difficulty which * Derrigo arise of reaching international agreement on objective criteria to anlanan plative slagra of development.

fälvidual developed countries might, however, deoline to accord special tariff troaterut to a particular country claiming developing status on grounds which they

Such ab initio exclusion of a particular country would not be vä on om predtive ocneddərations (which would have to be dealt with by the procedures diequesed under C and G below).

It is to be expected that no country will claim developing status unless there are bona fide grounds for it to do so; and that such a claim would be relinquished If the groinds ceased to exist.

Product Covoraso

:

Spesial tariff treatment should apply in principle to all manufactured and semi- aronfactured products. Other products could be included on a case-by-case basis.

Exceptions

It is probable that developed countries will find it necessary to exclude from

the outnet from the benefit of the special tariff treatment a limited number of products in respect of which developing countries are already competitive.

D. Rules of Origin

The grant of special tariff treatment will require the application of rules of origin to determine the conditions under which imports shall qualify for admission at aponial rates of duty. It will be necessary to determine how best to achieve the

objectivos of ensuring that the rules are in accordance with the intentions of the new

arrangements and of providing broadly equivalent new import opportunities into each developed market.

E.

Duration

The special tariff treatment should be temporary and degressive. Margins of preferences would not be guaranteed. The initial arrangements should be for a period

of ton years with provision for a major review before the end of this period to Jotermine whether the special tariff treatment should be continued, modified or abolished. It is obvious that developed countries may wish before the ten-year period

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