Diussions among Member Governments of the C.E.C.D. have led to a broad measure
of agreement on a number of key elements which mi, ht be included in arrangements for
the nt of special tariff treatment.
A.
Beneficiary Countries
Special tariff treatment should be given to the exports of any country, territory or area claiming developing status. This formula would get over the difficulty which would otherwise arise of reaching international agreement on objective criteria to anternine relative stages of development.
Individual developed countries might, however, decline to accord special tariff treatment to a particular country claiming developing status on grounds which they hold to be compelling. Such ab initio exclusion of a particular country would not be based on competitive considerations (which would have to be dealt with by the procedures discussed 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 those grounds ceased to exist.
Ba
Product Coverage
Special tariff treatment should apply in principle to all manufactured and semi- manufactured products. Other products could be included on a case-by-case basis.
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Exceptions
It is probable that developed countries will find it necessary to exclude from the outset from the benefit of the special tariff treatment a limited number of
products in respect of which developing countries are already competitive.
D. Thules 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 special 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.
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 ten 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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