SICE: Trade Agreements: The Dickenson Bay Agreement

The Dickenson Bay Agreement

Agreement Establishing the Caribbean Free Trade Association

The Governments of Antigua, Barbados and British Guiana -

SHARING a common determination to fulfil within the shortest possible time the hopes and aspirations of their peoples of other Caribbean countries for full employment and improved living standards;

CONSCIOUS that these goals can most rapidly be attained by the optimum use of available human and other resources and by accelerated and sustained economic development;

AWARE that the broadening of domestic markets through the elimination of barriers to trade between the territories is a prerequisite to such development;

CONVINCED that such elimination of barriers to trade can best be achieved by the immediate establishment of a Free Trade Economic Community for all the countries who so desire;

HAVE AGREED as follows:-

1. An Association to be called the Caribbean Free Trade Association (hereinafter referred to as "the Association") is hereby established.

2. The Members of the Association, hereinafter referred to as "Member Territories" shall be the Territories on behalf of the Governments of which this Agreement is ratified in accordance with Article 31 and such other Territories as participate therein by virtue of paragraph 1 of Article 32.

3. The institutions of the Association shall be a Council and such organs as the Council may set up.

4. The Caribbean Free Trade Association shall operate over the areas of the Member Territories collectively called the Caribbean Free Trade Area (hereinafter referred to as "the Area").

The provisions of the Agreement shall not affect the rights and obligations under any agreements entered into by any of the parties to this agreement before it is signed:

Provided, however, that each Party shall take any steps at its disposal which are necessary to reconcile the provisions of any such agreements with the purposes of this Agreement.

1. Subject to the provisions of Annex A, Member Territories shall not apply any import duties on goods which are eligible for Area tariff treatment in accordance with Article 5.

2. For the purposes of this Article and Annex A, the term "import duties" means any tax or surtax of customs and any other charges of equivalent effect - whether fiscal, monetary or exchange - which are levied on imports, except duties notified under Article 7 and other charges which fall within that Article.

3. The provisions of this Article do not apply to fees and similar charges in respect of services rendered.

1. For the purposes of Articles 4 - 8, goods shall, subject to Annex B, be accepted as eligible for Area tariff treatment if they are consigned from a Member Territory to a consignee in the importing Member Territory and if they are of Area origin under any one of the following conditions -

2. For the purposes of sub-paragraphs (a), (b) and (c) of paragraph 1 of this Article, materials listed in the Basic Materials List which forms the schedule to Annex B, which have been used in the state described in that List in a process of production within the Area, shall be deemed to contain no element imported from outside the Area.

3. Nothing in this agreement shall prevent a Member Territory from accepting as eligible for Area tariff treatment any imports consigned from another Member Territory, provided that the like imports consigned from any Member Territory are accorded the same treatment.

4. Provisions necessary for the administration and effective application of this Article are contained in Annex B.

5. The Council may decide to amend the provisions of this Article, Annex B and the Process List established under sub-paragraph (b) of paragraph 1 of this Article.

6. The Council shall from time to time examine in what respect this Agreement can be amended in order to ensure the smooth operation of the origin rules.

2. The Council shall keep under review the question of deflections of trade and their causes. It shall take such decisions as are necessary in order to deal with the causes of deflection of trade by amending the rules of origin in accordance with paragraph 5 or Article 5 or by such other means as it may consider appropriate.

3. If a deflection of trade of a particularly urgent nature occurs, any Member Territory may refer the matter to the Council. The Council shall take its decision as quickly as possible and, in general within one month. The Council may, by majority decision, authorise interim measures to safeguard the position of the Member Territory in question. Such measures shall not continue for longer than is necessary for the procedure under paragraph 2 above to take place, and for not more than two months, unless in exceptional cases, the Council, by majority decision, authorises an extension of this period by not more than two months.

4. A Member Territory which is considering the reduction of the effective level of its duties or charges on any product not eligible for Area tariff treatment shall, as far as may be practicable, notify the Council not less than thirty (30) days before such reduction comes into effect, and shall consider any representations by other Member Territories that the reduction is likely to lead to a deflection of trade. Information received under this paragraph shall not be disclosed to any person outside the service of the Association or the Governments of Member Territories.

5. When considering changes in their duties or charges on any product not eligible for Area tariff treatment, Member Territories shall have due regard to the desirability of avoiding consequential deflections of trade. In case of any such change, any Member territory which considers that trade is being deflected may refer the matter to the Council in accordance with Article 26.

6. If, in the consideration of any complaint in accordance with Article 26, reference is made to a difference in the level of duties or charges on any product not eligible for Area tariff treatment, that difference shall be taken into account only if the Council finds by a majority vote that there is a deflection of trade.

7. The Council shall review from time to time the provisions of this Article and may decide to amend those provisions.

2. A Member Territory shall notify the Council of all fiscal charges applied by it where, although the rates of charge, or the conditions governing the imposition or collection of the charge, are not identical in relation to the imported goods and to the like domestic goods, the Member Territory applying the charge considers that the charge is, or has been made, consistent with sub-paragraph (a) of paragraph 1 of this Article. Each Member Territory shall, at the request of any other Member Territory, supply information about the application of paragraph 1 of this Article.

3. For the purposes of this Article and Annex C -

Each Member Territory may refuse to accept as eligible for Area tariff treatment goods which benefit from export drawback allowed by Member territories in which the goods have undergone the process of production which form the basis of the claim to Area origin. In applying this paragraph, each Member Territory shall accord the same treatment to imports consigned from all other Member Territories.

For the purpose of this Article-

1. Member Territories shall not apply any export duties.

2. The provisions of this article shall not prevent any member Territory from taking such measures as are necessary to prevent evasion, by means of re-export, of duties which it applies to exports to territories outside the Area.

3. For the purposes of this Article, "export duties" means any duties or charges with equivalent effect imposed on or in connection with the exportation of goods from any Member Territory to a consignee in any other Member Territory.

Member Territories shall take appropriate measures, including arrangements regarding administrative co-operation, to ensure that the provisions of Articles 4 to 8 and of Annexes A, B and C are effectively and harmoniously applied, taking account of the need to reduce as far as possible the formalities imposed on trade and of the need to achieve mutually satisfactory solution of any difficulties arising out of the operation of those provisions.

Products imported into, or exported from, a Member Territory shall enjoy freedom of transit within the Area and shall only be subject to the payment of the normal rates for services rendered.

1. Nothing in this Agreement shall prevent any Member Territory from taking action against dumped or subsidised imports consistently with any international obligations to which it is subject.

2. Any products which have been exported from one Member Territory to a consignee in another Member territory and have not undergone any manufacturing process since exportation shall, when re-imported into the first member territory, be admitted free of quantitative restrictions and measures with equivalent effect. They shall also be admitted free of customs duties and charges with equivalent effect, except that any allowance by way of drawback, relief from duty or otherwise, given by reason of the exportation from the first member territory, may be recovered.

3. If any industry in any Member Territory is suffering or is threatened with material injury as the result of the import of dumped or subsidised products into another Member Territory, the latter Member Territory shall, at the request of the former Member Territory, examine the possibility of taking, consistently with any international obligations to which it is subject, action to remedy the injury or prevent the threatened injury.

1. Subject to the provisions of Annex D, a Member Territory shall not apply any quantitative restrictions on imports of goods from any other part of the area.

2. For the purposes of the proceeding paragraph and Annex D,

3. The provisions of this article shall not prevent any Member territory from taking such measures are as necessary to prevent evasion of any prohibitions or restrictions which it applies to imports from territories outside the area.

1. A Member Territory shall not apply any prohibitions or restrictions on exports to any other part of the Area, whether made effective through quotas or export licences or other measures with equivalent effect.

2. The provisions of this Article shall not prevent any Member Territory from taking such measures as are necessary to prevent evasion of any prohibitions or restrictions which it applies to exports to territories outside the Area.

Provided that such measures are not used as a means of arbitrary or unjustifiable discrimination between Member Territories , or as a disguised restriction on the inter-territorial trade of the Area, nothing in Articles 13 and 14 shall prevent the adoption or enforcement by any Member Territory of Measures-

Nothing in the Agreement shall prevent any Member Territory from taking action which it considers necessary for the protection of its essential security interests, where such action-

2. Nothing in this Agreement shall prevent any Member Territory from taking action to perform any obligations to which it is subject for the purpose of maintaining international peace and security.

2. If the application of any form of aid by a Member territory, although not contrary to paragraph 1 of this Article , frustrates the benefits expected from such removal or absence of duties and quantitative restrictions as is required by this Agreement and provided that the procedure set out in paragraphs 1 to 3 of Article 26 has been followed, the Council may, by majority decision, authorise any Member Territory to suspend to the Member Territory which is supplying aid, the application of such obligations under this Agreement as the Council considers appropriate.

3. The Council may decide to amend the provisions of this Article and of Annex B.

1. Member Territories shall ensure the elimination in the practices of public undertakings, of-

2. In so far as the provisions of Article 19 are relevant to the activities of public undertakings, that Article shall apply to them in the same way as it applies to other enterprises.

3. Member Territories shall ensure that new practices of the kind described in paragraph 1 of this Article are not introduced.

4. Where Member Territories do not have the necessary legal powers to control the activities of regional or local government authorities or enterprises under their control in these matters, they shall nevertheless endeavour to ensure that those authorities or enterprises comply with the provisions of this Article.

5. The Council shall keep the provisions of this Article under review and may decide to amend them.

6. For the purpose of this Article, "public undertakings" means central, regional or local government authorities, public enterprises and any other organisation by means of which a Member Territory by law or in practice controls or appreciably influences imports from, or exports to, any other part of the Area.

1. Member Territories recognise that the following practices are incompatible with this Agreement in so far as they frustrate the benefits expected from such removal or absence of duties and quantitative restrictions as is required by this Agreement -

2. If any practice of the kind described in paragraph 1 of this Article is referred to the Council in accordance with Article 26, the Council may, in any recommendation in accordance with paragraph 3 or in any decision in accordance with paragraph 4 of that Article, make provision for publication of a report on the circumstances of the matter.

3. (a) In the light of experience gained, the Council shall consider before 31st December,1967, and may consider at any time thereafter whether further or different provisions are necessary to deal with the effect of restrictive business practices or dominant enterprises on the inter-territorial trade of the Area.

1. Each Member Territory recognises that restrictions on the establishment and operation of economic enterprises therein by persons belonging to other Member Territories should not be applied, through accord to such persons of treatment which is less favourable than that accorded in such matters to persons belonging to that Member Territory, in such a way as to frustrate the benefits expected from such removal or absence of duties and quantitative restrictions as is required by this Agreement.

2. Member Territories shall not apply new restrictions in such a way that they conflict with the principle set out in paragraph 1 of this Article.

3. A Member Territory shall notify the Council within such period as the Council may decide of particulars of any restrictions which it applies in such a way that persons belonging to another Member Territory are accorded in the first-mentioned Territory less favourable treatment in respect of the matters set out in paragraph 1 of this Article than is accorded to persons belonging thereto.

4. The Council shall consider before 31st December, 1967, and may consider at any time thereafter, whether further or different provisions are necessary to give effect to the principles set out in paragraph 1 of this Article and may decide to make the necessary provisions.

5. Nothing in this Article shall prevent the adoption and enforcement by a Member Territory of measures for the control of entry, residence, activity and departure of persons where such measures are justified by reasons of public order, public health or morality, or national security of that Member Territory.

6. For the purposes of this Article-

1. Notwithstanding the provisions of Article 13 any Member Territory may, consistently with any international obligations to which it is subject, introduce quantitative restrictions on imports for the purpose of safeguarding its balance of payments.

2. Any Member Territory taking measures in accordance with paragraph 1 of this Article shall notify them to the Council, if possible before they come into force. The Council shall examine the situation and keep it under review and may at any time by majority vote make recommendations designed to moderate any damaging effect of these restrictions or to assist the Member Territory concerned to overcome its difficulties. If the balance of payments difficulties persist for more than 18 months and the measures applied seriously disturb the operation of the Association, the Council shall examine the situation and may, taking into account the interests of all Member Territories, by majority decision, devise special procedures to attenuate or compensate for the effect of such measures.

3. A Member Territory which has taken measures in accordance with paragraph 1 of this Article shall have regard to its obligation to resume the full application of Article 13 and shall, as soon as its balance of payments situation improves, make proposals to the Council on the way in which this should be done. The Council, if it is not satisfied that these proposals are adequate, may recommend to the Member Territories alternative arrangements to the same end. Decisions of the Council pursuant to this paragraph shall be made by majority vote.

2. In applying measures in accordance with paragraph 1 of this Article, a Member Territory shall give like treatment to imports consigned from all Member Territories.

3. A Member Territory applying restrictions in accordance with sub-paragraph (i) of this Article shall notify them to the Council, if possible before they come into force. The Council may at any time consider those restrictions and may, by majority vote make recommendations designed to moderate any damaging effect of those restrictions or to assist the Member State concerned to overcome its difficulties.

4. This article shall have effect until 31st December, 1970.

5. Before 1st January, 1971, if the Council considers that some provision similar to those in paragraphs 1 to 3 of this Article will be required thereafter, it may decide that such provisions shall have effect for any period after that date.

1. A Tax of any kind in a Member Territory shall not, by the introduction or extension of incentive provisions at any time after this Agreement takes effect, be rendered liable to mitigation to any extent to which no tax of that kind elsewhere in the Area (if any) is rendered by incentive provisions previously introduced or extended, liable to mitigation.

2. A Member Territory which is considering the introduction or alteration of any incentive provisions shall, as far as may be practicable, notify the Council not less than thirty days before such introduction or alteration comes into effect, and shall consider any representations with respect thereto by other Member Territories, any of which may refer the matter to the Council under Article 26 if a breach of this Article is apprehended. Information received under this paragraph shall not be disclosed to any person outside the service of the Association or the Governments of Member Territories.

3. The Council may on its own initiative recommend to Member Territories proposals for the approximation of incentive provisions within the Area. Such proposals may include schemes for the increase or reduction of concessions within the Area consistently with the provisions of the foregoing Articles of this Agreement, and , may be implemented notwithstanding anything provided in paragraph 1 of this Article. The Council may take any appropriate measure provided for in this Agreement in furtherance of the objectives of this Article.

4. The Council may from time to time review the provisions of this Article and may decide to amend those provisions.

5. For the purposes of this Article -

Member Territories recognise that the economic and financial policies of each of them affect the economies of other Member Territories and intend to pursue those policies in a manner which serves to promote the objectives of the Association. They shall periodically exchange views on all aspects of those policies. The Council may make recommendations to Member Territories on matters relating to these policies to the extent necessary to ensure the attainment of the objectives of the smooth operation of the Association.

Member Territories recognise the importance of invisible transactions and transfers for the proper functioning of the Association. The Council may decide on provisions with regard to such transactions and transfers as may prove desirable, having due regard to any international obligations to which Member Territories are subject.

1. If any Member Territory considers that any benefit conferred upon it by this Agreement or any objective of the Association is being or may be frustrated and if no satisfactory settlement is reached between the Member Territories concerned, any of those Member Territories may refer the matter to the Council.

2. The Council shall promptly, by majority vote, make arrangements for examining the matter. Such arrangements may include a reference to an examining committee constituted in accordance with Article 27. Before taking action under paragraph 3 of this Article, the Council shall so refer the matter at the request of any Member Territory concerned. Member Territories shall furnish all information which they can make available and shall lend their assistance to establish the facts.

3. When considering the matter, the Council shall have regard to whether it has been established that an obligation under this agreement has not been fulfilled and whether and to what extent any benefit conferred by this Agreement or any objective of the Association is being or may be frustrated. In the light of this consideration and of the report of any examining committee which may have been appointed, the Council may, by majority vote, make to any Member Territory such recommendations as it considers appropriate.

4. If a Member Territory does not or is unable to comply with a recommendation made in accordance with paragraph 3 of this Article and the Council finds, by majority vote, that an obligation under this Agreement has not been fulfilled, the Council may, by majority decision, authorise any Member Territory to suspend to the Member territory which has not complied with the recommendation the application of such obligations under this Agreement as the Council considers appropriate.

5. Any Member Territory may, at any time while the matter is under consideration, request the Council to authorise as a matter of urgency, interim measures to safeguard its position. If it is found by majority vote of the Council that the circumstances are sufficiently serious to justify interim action, and without prejudice to any action which it may subsequently take in accordance with the preceding paragraphs of this Article, the Council may, by majority decision, authorise a Member Territory to suspend its obligations under this Agreement to such an extent and for such a period as the Council considers appropriate.

The examining committees referred to in Article 26 shall consist of persons selected for their competence and integrity, who, in the performance of their duties, shall neither seek nor receive instructions from any Territory or from any authority or organisation other than the Association. They shall be appointed, on such terms and conditions as may be decided, by majority vote of the Council.

2. Each Member Territory shall be represented in the Council and shall have one vote.

3. The Council may decide to set up such organs, committees and other bodies as it considers necessary to assist it on accomplishing its tasks.

4. In exercising its responsibility under paragraph 1 of this Article, the Council may take decisions which shall be binding on all Member Territories and may make recommendations to Member Territories.

5. Decisions and recommendations of the Council shall be made by unanimous vote, except in so far as this Agreement provides otherwise. Decisions or recommendations shall be regarded as unanimous unless any Member Territory casts a negative vote. Decisions and recommendations which are to be made by majority vote require the affirmative vote of a majority of all Member Territories.

2. The expenses of the Association shall be shared equally between the Member Territories.

The Council, acting on behalf of the Association, shall seek to procure the establishment of such relationships with other international organisations as may facilitate the attainment of the objectives of the Association.

1. This Agreement shall be subject to ratification by the Legislatures of all the Signatory Territories.

2. Instruments signifying such ratification shall be deposited with the Government of Antigua, which shall notify the other Signatory Territories, and, subject to the next following paragraph, this Agreement shall take effect as soon as all such instruments have been so deposited.

3. If prior to the ratification of this Agreement by any Signatory Territory that Territory indicates by notice to the Government of Antigua that difficulties have arisen in relation to carrying any provision of this Agreement into effect, the Agreement shall not take effect with respect to that Territory except in accordance with the terms of a supplementary agreement between all the signatory Territories providing for the resolution of such difficulties.

1. Any Territory, though it be not a signatory hereto, may participate in this Agreement, subject to prior approval of the Council of the Territory's participation in this Agreement on terms and conditions decided by the Council. The instrument duly signifying the agreement of the Government of the Territory to its participation in this Agreement on the terms and conditions decided as aforesaid shall be deposited with the Government of Antigua which shall notify all other Member territories. This Agreement shall have effect in relation to the participating Territory as, and from the time, indicated in the Council's decision.

2. The Council may seek to procure the creation of an association consisting of Member Territories and any other Territory, union of Territories, or international organisation, and embodying such reciprocal rights and obligations, common actions and special procedures as may be appropriate.

3. For the purpose of this Article, "Territory" includes a sovereign state internationally recognised.

Any Member Territory may withdraw from participation in this Agreement provided that the Government thereof gives twelve months' notice in writing to the Government of Antigua which shall notify the other Member Territories.

Except where provision for modification is made elsewhere in this agreement, including the Annexes to it, an amendment to the provisions of this Agreement shall be submitted to the Governments of Member Territories for acceptance if it is approved by decision of the Council, and it shall have effect provided it is accepted by all such Governments. Instruments of acceptance shall be deposited with the Government of Antigua which shall notify the other Member Territories.

1. If a Member Territory, upon becoming a sovereign state recognised internationally, intimates its willingness to continue to participate in this Agreement, then, notwithstanding its having become such a state, this Agreement shall continue to have effect in relation to it.

2. For the purposes of paragraph 1 of this Article, any intimation thereunder shall be given by notice to the Government of Antigua, which shall notify all other Member Territories.

1. The legal capacity, privileges and immunities to be recognised and granted by the Member Territories in connection with the Association shall be laid down in a Protocol to this Agreement

2. The Council, acting on behalf of the Association, may conclude with the Government of the Territory in which the headquarters will be situated an agreement relating to the legal capacity and the privileges and immunities to be recognised and granted in connection with the Association.

1. Special arrangements are provided in this Annex for the progressive elimination by Member Territories of import duties on such products as are itemised according to the Standard International Trade Classification (original) as follows:

2. On and after each of the following dates a Member Territory may apply an import duty on any product eligible for Area tariff treatment as mentioned in paragraph 1 of this Annex at a level not exceeding the percentage of the basic duty specified against that date -

Effective date hereof                            100 per cent
1st January 1967                                  80 per cent
1st January 1968                                  60 per cent
1st January 1969                                  40 per cent
1st January 1970                                  20 per cent
1st January 1971                                    0 per cent

3. For the purpose of this Annex -

For the purpose of determining the origin of goods under Article 5 and for the application of that Article, the following Rules shall be applied:

Rule 1 - Interpretative Provisions

1. In determining the place of production of marine products and goods produced therefrom, a vessel of a Member Territory shall be regarded as part of that Territory. In determining the place from which goods have been consigned, marine products taken from the sea or goods produced therefrom at sea shall be regarded as having been consigned from a Member Territory if they were taken by or produced in a vessel of a member territory and have been brought direct to the Area.

2. A vessel which is registered shall be registered as a vessel of the Member Territory in which it is registered.

3. "Materials" includes products, parts and components used in the production of the goods.

4. Energy, fuel, plant, machinery and tools used in the production of goods within the Area, and materials used in the maintenance of such plant, machinery and tools, shall be regarded as wholly produced within the Area when determining the origin of those goods.

5. "Produced" in sub-paragraph (c) of paragraph 1 of Article 5 and a "Process of production" in paragraph 2 of that Article include the application of any operation or process, with the exception of any operation or process which consists only of one or more of the following :-

6. The term "producer" includes a grower and a manufacturer and also a person who supplies his goods otherwise than be sale to another person and to whose order the last process in the course of the manufacturer of the goods is applied by that other person.

Rule 2 - Goods wholly produced within the Area

For the purposes of sub-paragraph (a) of paragraph 1 of Article 5, the following are among the products which shall be regarded as wholly produced within the Area:-

Rule 3 - Application of Percentage Criterion

For the purposes of sub-paragraph (c) of paragraph 1 of article 5 -

Rule 4 - Unit of Qualification

1. Each article in a consignment shall be considered separately.

2. For the purposes of paragraph 1 of this Rule -

3. An assembled or disassembled article which is imported in more than one consignment because it is not feasible for transport or production reasons to import it in a single consignment shall, if the importer so requests, be treated as one article.

Rule 5 - Segregation of materials

1. For those products or industries where it would be impracticable for the producer physically to segregate materials of similar character but different origin used in the production of goods, such segregation may be replaced by an appropriate accounting system, which ensures that no more goods received Area tariff treatment than would have been the case if the producer had been able physically to segregate the materials.

2. Any such accounting system shall conform to such conditions as may be agreed upon by the Member Territories concerned in order to ensure that adequate control measures will be applied.

Rule 6 - Treatment of mixtures

1. In the case of mixtures, not being groups, sets or assemblies of separable articles dealt with under Rule 4, a Member Territory may refuse to accept as being of Area origin any product resulting from the mixing together of goods which would qualify as being of Area origin with goods which would not so qualify, if the characteristics of the products as a whole are not essentially different from the characteristics of the goods which have been mixed.

2. In the case of particular products where it is, however recognised by Member Territories concerned to be desirable to permit mixing of the kind described in the foregoing paragraph, such products shall be accepted as of Area origin in respect of such part thereof as may be shown to correspond to the quantity of goods of Area origin used in the mixing, subject to such conditions as may be agreed upon.

Rule 7 - Treatment of packing

1. Where for purposes of assessing customs duties a Member Territory treats goods separately from their packing, it may also, in respect of its imports consigned from another Member Territory, determine separately the origin of such packing.

2. Where paragraph 1 of this Rule is not applied, packing shall be considered as forming a whole with the goods and no part of any packing required for their transport or storage shall be considered as having been imported from outside the Area, when determining the origin of the goods as a whole.

3. For the purpose of paragraph 2 of this Rule, packing with which goods are ordinarily sold by retail shall not be regarded as packing required for the transport or storage of goods.

Rule 8 - Documentary evidence

1. A claim that goods shall be accepted as eligible for Area tariff treatment shall be supported by appropriate documentary evidence of origin and consignment. The evidence of origin shall consist of either -

These declarations, certificates and supplementary declarations shall be in such form as may be agreed by the Governments of all the signatory Territories, and a copy of such Agreement shall be deposited with the Government of Antigua by which certified copies shall be transmitted to all other signatory and participating Territories. The agreed forms shall, for the purposes of paragraph 5 of Article 5, be deemed to form part of this Annex.

2. The exporter may choose either of the forms of evidence referred to in paragraph 1 of this Rule. Nevertheless the authorities of the country of exportation may require for certain categories of goods that evidence of origin shall be furnished in the form indicated in sub-paragraph (b) of that paragraph.

3. In cases where a certificate of origin is to be supplied by a governmental authority or an authorised body under sub-paragraph (b) of paragraph 1 of this rule, that authority of body shall obtain a declaration as to the origin of the goods given by the last producer to the goods within the area. The governmental authority or the authorised body shall satisfy themselves as to the accuracy of the evidence provided, where necessary they shall require the production of additional information, and shall carry out any suitable check. If the authorities of the importing member Territory so require, a confidential indication of the producer of the goods shall be given.

4. Nominations of authorised bodies for the purpose of sub-paragraph (b) of paragraph 1 of this rule, may be withdrawn by the exporting Member Territory if the need arises. Each member Territory shall retain, in regard to its imports, the right of refusing to accept certificates from any authorised body which is shown to have repeatedly issued certificates in an improper manner, but such action shall not be taken without adequate prior notification to the exporting Member territory on the grounds for dissatisfaction.

5. In cases where the member Territories concerned recognise that it is impracticable for the producer to make the declaration of origin specified in sub-paragraph (a) of paragraph 1 or in paragraph 3 of this Rule, the exporter may make that declaration in such for as those Member Territories may for the purpose specify.

6. The Council may decide that further or different provisions concerning evidence of origin or of consignment shall apply to particular categories of goods or classes of transactions.

Rule 9 - Verification of evidence of origin

1. The importing Member Territory may as necessary require further evidence to support any declaration or certificate of origin furnished under Rule 8.

2. The importing Member Territory shall not prevent the importer from taking delivery of the goods solely on the grounds that it requires such further evidence, but may require security for any duty or other charge which may be payable.

3. Where under paragraph 1 of this Rule, a Member Territory has required further evidence to be furnished, those concerned in another Member territory shall be free to produce it to a governmental authority or an authorised body of the latter Territory, who shall after thorough verification of the evidence, furnish an appropriate report to the importing Member Territory.

4. Where it is necessary to do so by reason of its legislation, a Member Territory may prescribe that requests by the authorities of an importing Member Territories for further evidence from those concerned in the Member Territory shall be addressed to a specified governmental authority, who shall after thorough verification of the evidence furnish an appropriate report to the importing Member Territory.

5. If the importing Member Territory wishes an investigation to be made into the accuracy of the evidence which it has received, it may make a request to that effect to the other Member Territory or Territories concerned.

6. Information obtained under the provisions of this Rule by the importing Member Territory shall be treated as confidential.

Rule 10 - Sanctions

1. Member Territories undertake to introduce legislation making such provision as may be necessary for penalties against persons who, in their territory, furnish or cause to be furnished a document which is untrue in a material particular in support of a claim in another Member territory that goods should be accepted as eligible for Area tariff treatment. The penalties applicable shall be similar to those applicable in cases of untrue declarations in regard to payment of duty on imports.

2. A Member territory may deal with the offence out of court, if it can be more appropriately dealt with by a compromise penalty or similar administrative procedure.

3. A Member Territory shall be under no obligation to institute or continue court proceedings, or action under paragraph 2 of this Rule -

These materials may always be regarded as originating wholly within the "Area" when used in the state described in this List in a process of production within the "Area"

Note: The classification used in this List is in accordance with the original Standard International Trade Classification.

041-01 Wheat and spelt (including meslin) unmilled
043-01 Barley unmilled
045-01 Rye unmilled
045-02 Oats unmilled
045-09 Cereals unmilled (except rice and corn)
046-01 Semolina
048-02 Malt
051-04 Apples
051-05 Grapes
054-01 Potatoes (excluding sweet)
054-03 Hop cones fresh or dried
061-09 Lactose, glucose, maltose, caramel
072-01 Cocoa beans
075-01 Pepper
075-02 Spices, ginger, cinnamon, vanilla, nutmeg, mace
081-02 Pollard, sharps
221-05 Linseed
231-02 Synthetic rubbers and rubber substitutes
244-01 Cork, raw and waste (including natural cork in blocks and sheets)
251-01 Waste paper and old paper
261      Silk
262      Wool and other animal hair
264      Jute, including jute cuttings and waste
265      Vegetable fibres except cotton, jute and coir fibre
272-05 Salt, coarse and rock
272-06 Sulphur
272-11 Gypsum and plasters
272-16 Natural graphite
282-01 Iron and steel scrap
284-01 Non-ferrous metal scrap
291-09 Sponges, fish eggs (not for food) bristles, hair and their wastes
292-02 Natural gums, resins and balsam
292-09 Kapok
312-01 Crude petroleum
411-01 Oils from fish and marine animals
411-02 Linseed oil
412-11 Castor oil
413-02 Hydrogenated oils and fats
413-04 Waxes of animal or vegetable origin
511-01 Sulphuric acid
511-09 Calcium carbide, sodium pyrophosphate and white lead
512-09 Saccharine to be used for medicinal purposes only
531-01 Cola tar, dyestuffs and natural indigo
531-01 Dyeing extracts
532-02 Tanning extracts
532-03 Synthetic tanning materials
551-01 Essential vegetable oils
599-01 Synthetic plastic materials in blocks, sheets, rods, tubes, power and other primary forms
599-04 Casein, albumen, gelatin, glue
611      Leather
651      Textile yarn and thread
652      Cotton fabrics
653      Miscellaneous fabrics
655      Special textile fabrics
655-02 Hat bodies of wool felt and fur felt
655-06 Twine of cotton
655-06 Twine of hemp
671-01 Silver, unworked and partly worked
671-02 Platinum and other metal of platinum group, unworked and partly worked
672-03 Pearls worked
681-01 Pig iron and sponge iron (including iron and steel powder)
681-02 Ferro-alloys
681-03 Ingots, blooms, slabs, billets, sheet bars, and tinplate bars and equivalent primary forms
681-04 Angles, shapes, sections, bars
681-05 Universals, plates and sheets, uncoated
681-06 Hoop and strip (including tube strip and steel strip for springs) coated or not
681-13 Steel tubes and fittings, welded or drawn
681-14 Pipes and fittings, case whether gray iron or malleable iron
682-01 Copper and alloys not refined and refined unwrought
682-02 Copper and alloys of copper, worked (bars, rods, plates, sheets, wire, pipes, tubes, castings and forgings
683-01 Nickel and nickel alloys unwrought
683-02 Nickel and alloys of nickel, worked (bars, rods, plates, sheets, wire, pipes, tubes, castings and forgings
684-01 Aluminium and aluminium alloys unwrought
684-02 Aluminium and alloys of aluminium, worked (bars, rods, plates, sheets, wire, pipes, tubes, castings and forgings
685-01 Lead and lead alloys unwrought
685-02 Lead and alloys of lead, worked (bars, rods, plates, sheets, wire, pipes, tubes, castings and forgings
689-01 Non-ferrous base metals employed in metallurgy and their alloys, n.e.s. unwrought
689-02 Non-ferrous base metals employed in metallurgy and their alloys n.e.s. worked (bars, rods, sheets, wire, pipes, tubes, castings and forgings)
699-05 Expanded metal of iron and steel
699-06 Expanded metal of aluminium, copper and other non-ferrous base metals
899-05 Buttons and studs of all materials, except those of precious metals and precious stones.

1. Special arrangements are provided in this Annex for the progressive elimination by Member Territories of the effective protective element in revenue duties (hereinafter referred to as protective revenue duty) applied to such imported goods as are itemised under the Standard International Trade Classification (original) as follows :-

SITC Item No. Description of Product

112-04 Rum

2. On and after each of the following dates, a Member Territory may apply a protective revenue duty on imports mentioned in paragraph 1 of this Annex at a level not exceeding the percentage of the basic protective duty specified against that date:-

3. Before the 1st of July, 1966, each Member Territory shall notify to the Council its basic protective duty on the product to which paragraph 2 of this Annex applies. Each Member Territory shall also notify to the Council the reductions which it intends to bring into effect in accordance with the said provisions.

4. For the purpose of this Annex -

1. Special arrangements are provided in this Annex for the progressive elimination by Barbados and British Guiana of quantitative restrictions on imports consigned from each other of the goods itemised under the Standard International Trade Classification (original) as follows :-

SITC Item No. Description of Product

91-01 Margarine: animal, vegetable or mixed

2. Barbados and British Guiana shall eliminate all quantitative restrictions on imports consigned from each other of the goods mentioned in paragraph 1 of this Annex as soon as practicable and not later than 1st January, 1971.

3. On 1st January, 1967, Barbados and British Guiana shall each establish for imports to which paragraph 2 of this Annex applies, a quota of a size not less than 25 per cent above the basic Guianese quota.

4. On 1st January, 1968, and 1st January in each succeeding year, Barbados and British Guiana shall each increase the quota established in accordance with paragraph 3 of this Annex by not less than 25 per cent of an amount equivalent to the basic Guianese quota as already increased pursuant to this Annex.

5. Barbados and British Guiana shall each notify to the Council details of the quota established in accordance with the provisions of this Annex.

6. For the purpose of this Annex -

SUPPLEMENTARY AGREEMENT UNDER ARTICLE 31(3) OF THE AGREEMENT FOR THE ESTABLISHMENT OF THE CARIBBEAN FREE TRADE ASSOCIATION SIGNED AT DICKENSON BAY, ANTIGUA ON 15 DECEMBER 1965 (1968)

WHEREAS an Agreement (hereinafter referred to as the "Principal Agreement") for the Establishment of a Caribbean Free Trade Area was signed at Dickenson Bay, Antigua, on behalf of the Governments of Antigua, Barbados and British Guiana on the 15th December, 1965;

AND WHEREAS it is provided by Paragraph 3 of Article 31 of the Principal Agreement that, in the event of the notification of difficulties in relation to carrying into effect any provision thereof to the Government of Antigua by any Signatory Territory prior to its ratification thereof, the Principal Agreement shall not take effect with respect to that Territory except in accordance with a supplementary agreement between all the Signatory Territories providing for the resolution of such difficulties;

AND WHEREAS a Supplementary Agreement required to be read and construed as one with the Principal Agreement has been signed on behalf of the Governments of Antigua, Barbados and Guiana in keeping with the provisions of paragraph 3 Article 31 of the Principal Agreement;

AND WHEREAS Guyana has not yet ratified the Principal Agreement and, acting under the provisions of paragraph 3 of Article 31 thereof has notified the Government of Antigua that certain difficulties have arisen in relation to carrying the Principal Agreement into effect in view of an undertaking given by the Signatories of the Principal Agreement, at the Fourth Conference of Heads of Government of Commonwealth Caribbean Countries, to conclude a further supplementary agreement on terms approved by post-Conference machinery to give effect to the resolutions adopted at the said Conference for the establishment of a wider Caribbean Free Trade Area;

AND WHEREAS it was so resolved at the said Conference that the Governments of the Commonwealth Caribbean Countries should approach the task of freeing trade by using the Principal Agreement as a basis with suitable modifications;

AND WHEREAS the terms of the further supplementary agreement to be concluded for the purpose of effecting such suitable modifications to the Principal Agreement as aforesaid have been approved by the post-Conference machinery hereinafter mentioned;

AND WHEREAS the Governments of Antigua, Barbados and Guyana are desirous of hereby concluding in conformity with the abovementioned provisions of the Principal Agreement such further supplementary agreement for its suitable modification and thereby providing for the resolution of the difficulties which have arisen, as aforesaid.

NOW, THEREFORE IT IS HEREBY AGREED BY THE GOVERNMENTS OF ANTIGUA, BARBADOS AND GUYANA AS FOLLOWS:

All the words appearing in the Principal Agreement before Article 1 thereof are hereby deleted and the following substituted therefor:

There are hereby made, to the provisions of the Principal Agreement referred to in the first column of the First Schedule hereto, the amendments specified opposite such references, respectively in the second column of the said Schedule.

Article 25 of the Principal Agreement is hereby deleted and the following substituted therefor -

The following Articles are hereby inserted in the Principal Agreement after Article 37 thereof -

The Supplementary Agreement heretofore made between the parties to this Agreement and required to be read and construed as one with the Principal Agreement is hereby rescinded.

Signed by V.C. Bird
For the Government of Antigua on the 18th day of March, 1968
at St. John's Antigua.

Signed by Errol Barrow
For the Government of Barbados on the 18th Day of March, 1968
at St. John's Antigua

Signed by Forbes Burnham
For the Government of Guyana on the15th day of March, 1968
at Georgetown, Guyana

FIRST COLUMN	SECOND COLUMN
Article 1	(i) Delete the words and figures "or paragraphs 1 and 3" (ii) Insert immediately after the figures "32" the word 'and, for the purposes hereof, "Territories" includes sovereign states inter- nationally recognised' (iii) Substitute for the words "the Council may set up" the words "are mentioned in Paragraph 3 of article 28"Article 2
Article 2	(i) Substitute for paragraph (c) the following - "(c) to encourage the balanced progressive development of the economies of the Area in keeping with paragraphs 3 to 10 of the Resolution adopted at the Fourth Conference of the Heads of Government of Common-wealth Caribbean Countries as set out in Annex A;" (ii) Substitute for the full stop at the end of paragraph (d) a semicolon and add the following paragraph - "(c) to ensure that the benefits of free trade are equitably distributed among the Member Territories."
Article 3	(i) Insert the figure "1" and a full stop, before the word "The" (ii) Substitute for the words "it is signed" the words "the effective date hereof and notified to the Council." (iii) Substitute for the full stop at the end of the proviso a colon and add the following proviso - "Provided further that, in case of any non-observance of any provisions of this Agreement on the part of a Member Territory pursuant to its exemption in that behalf by virtue of the foregoing provisions of this Article, any other Member Territory which considers that it would enjoy any benefit under this Agreement but for such exemption may if no satisfactory settlement is reached between the Member territories concerned, refer the matter to the Council, which may, by majority decision, authorise any Member Territory to suspend to the first mentioned Member Territory the application of such obligations under this Agreement as the Council considers meet, due regard being had to the report of such committee (if any) as may have been constituted in accordance with Article 27 to examine the matter, and paragraphs 2 and 5 of Article 26 shall apply mutatis mutandis in the case of any reference under this proviso as they apply in the case of a reference under paragraph 1 of Article 26." (iv) Add the following as paragraph 2, 3, and 4 of Article 3 - "2. All such agreements shall be registered in such form as the Council shall decide and by way of such service in that behalf as shall be arranged pursuant to sub-paragraph (b) of paragraph 1 of Article 29. 3. The Council shall annually review the observance by Parties to this Agreement of the first proviso to paragraph 1 of this Article and may from time to time, by majority vote, recommend to any of them the taking of any steps for the purposes of that proviso. 4. For the purposes of this Article, "agreements" means any agreements concluded by instruments or any arrangements made in writing which the Council decides, by majority vote, constitute agreements for those purposes, but does not include any agreement or arrangements entered into by a Party hereto, not being the Government of Grenada, in respect of which negotiations commenced after the 22nd February, 1968"
Article 4	(i) Substitute for the letter "A" wherever it appears after the word "Annex", the Letter "B" (ii) Substitute for the full stop at the end of the paragraph 3 a semicolon and add to that paragraph the words "and nothing in paragraph 2 of this Article shall be construed to exclude from the application of paragraph 1 of this Article any tax or surtax of customs on any Product neither the like of which, nor a competitive substitute for which, is produced in the importing Member territory, or to extend such application to non-discriminatory internal charges on any such product." (iii) Add the following as paragraph 4 of Article 4- 4. For the purposes of paragraph 3 of this Article (a) "non-discriminatory" means non-discriminatory as between goods eligible for Area tariff treatment as aforesaid and goods not so eligible; (b) a charge shall not be deemed other than internal by reason only that it is collected at the time and place of importation.
Article 5	(i) Substitute for the letter "B", wherever it appears after the word "Annex", the letter "C" (ii) Add the following paragraph - "Nothing in this Agreement shall require a Member Territory to accept as eligible for Area tariff treatment any imports consigned from another Member Territory and consisting of, or manufactured from, oils and fats as defined by clause 2 of the Oils and Fats Agreement, or any of such oils or fats, where the Government of one of such Territories is a part to the Oils and Fats Agreement, and the Government of the other of such Territories is not a party to the Agreement, being the Agreement made on the 26th January, 1967, between the Governments of Barbados, Dominica, Grenada, Guyana, St. Lucia, St. Vincent and Trinidad and Tobago or any agreement amending or replacing the same."
Article 7	Substitute for the letter "C", where ever it appears after the word "Annex", the letter "D"
Article 8	Substitute for the letter "B" after the word "Annex" in sub-paragraph (d) the letter "C"
Article 9	Add the following paragraphs - "4 Nothing in this Article shall preclude a Member Territory from applying to any commodity listed in Annex E, within ten years from the effective date of this Agreement, export duty not exceeding that applicable by the Member Territory to such commodity immediately before the effective date of this Agreement. 5. Any Member Territory which, pursuant to Paragraph 4 of this Article, applies or continues to apply export duty to any commodity listed in Annex E shall notify the Council of every commodity on which export duty is applicable and the rate of such duty. The Council shall keep under review the question of such expert duties and may at any time by majority vote make recommendations designed to moderate any damaging effect of those duties."
Article 10	Substitute for the letters and words "A, B and C" the letters and words "B, C and D"
Article 13	(i) Substitute for the words "the provisions of Annex D' in paragraph 1 the words "anything to the contrary in any agricultural marketing arrangements made pursuant to paragraph 6 of Annex A and laid down in a Protocol between the Parties of this Agreement." (ii) Delete the words "and Annex D" in Paragraph 2.
Article 14 Paragraph 1	Substitute for the word "A" the words "Subject is mentioned in paragraph 1 of Article 13, a."
Article 17	(i) Substitute for the letter "E", wherever it appears after the word "Annex", the letter "F" (ii) Add the following paragraph - "4 . The provisions of this Article - (a) shall not apply in respect of inter-territorial trade within the Area in any agricultural products until such time as Member Territories shall agree upon the regional policy with respect to the production and marketing, including the subsidization, of agricultural products; (b) exclusive of sub-paragraph (a) of Paragraph 1 and paragraph 3, shall not apply in respect of inter-territorial trade within the Area in any manufactured goods until Member Territories have agreed upon a regional policy with respect to incentives to industry."
Article 18	Add the following paragraph - "7. The provisions of this Article shall not not apply in respect of inter territorial trade within the Area - (a) in agricultural products until such time as member Territories shall agree upon a regional policy with respect to the production and marketing, including the subsidization, of agricultural products; (b) in manufactured goods until Member Territories have agreed upon a regional policy with respect to incentives to industry"
Article 19Paragraph 3	Substitute for the ordinal, word and figures "31st December, 1967" in sub-paragraph (a) the ordinal word and figure 30th April, 1970"
Article 20	Substitute for the ordinal, word and figures 31st December, 1967" the ordinal, word and figures "30th April, 1970."
Article 22	(i) Substitute for the ordinal, word and figures 31st December, 1970" in paragraph 4 the ordinal, word and figures 30th April, 1973". (ii) Substitute for the ordinal, word and figures "1st January, 1971" in paragraph 5 the ordinal, word and figures1st May, 1973".
Article 23	(i) Substitute for the full stop at the end of Paragraph 1 a colon and add to that paragraph the following proviso - "Provided that, in resolving any question whether any breach by a Member Territory of its obligations for the purposes of this Article is to be apprehended or has resulted from the introduction or extension of any incentive provisions, the Council shall take into account the overall level and structure of taxation and the general economic circumstances in that Member Territory as compared with other Member Territories."
Article 23 (cont'd)	(ii) Renumber paragraphs 2, 3, 4 and 5 as paragraph 3, 4, 5 and 6, respectively, and insert the following as paragraph 2 - "2. This Council may, by majority decision, authorise any Member Territory to withhold, from imports of any products in relation to the manufacture of which it has been established to the satisfaction of a majority of the Council that any such breach by another Member Territory has resulted as aforesaid, treatment the benefit whereof is applicable in conformity with any provisions of this Agreement to such imports."
Article 28	(i) Substitute for paragraph 5 the following - "3. The Commonwealth Caribbean Regional Secretariat shall be the principal administrative organ of the Association and the Council may entrust it, and may set up other organs, committees and bodies and entrust them with such functions as the Council considers necessary to assist in Accomplishing its tasks. Decisions of the Council pursuant to this paragraph shall be made by majority vote." (ii) Substitute for all the words appearing in paragraph 5 after the words "negative vote." the words "A decision or recommendation of the Council pursuant to any such provision as aforesaid requires the affirmative votes of not less than two-thirds of all Member Territories, and reference in any such provision to a majority shall, in relation to the Council, be construed accordingly." (iii) Add the following paragraph - "6. The Council may, by its decision to confer any authority under this Agreement, impose conditions to which such authority shall be subject."
Article 29 Paragraph 2	Substitute for the words "equally between Member Territories" the words "between Member Territories in conformity with the appropriate basis of Territorial contributions to the annual budget of the Commonwealth Regional Secretariat, approved at the Conference of Ministers of Trade held in Guyana on 21st and 22nd February 1968, or in such other member as the Council may decide"
Article 31	(i) Insert after the words "as soon as" in paragraph 2 the words "the number of Signatory Territories has been ascertained consistently with paragraphs 4 and 5 of this Article and" (ii) Add the following paragraphs - "4. Any Commonwealth Caribbean Country by whose Government on instrument signifying its endorsement of the Resolution set out in Annex A has been deposited with the Government of Antigua shall be deemed for the purposes of the Agreement to be a Signatory Territory as from the date of such deposit, which shall be notified to the other Signatory Territories by the Government of Antigua. 5. Notwithstanding anything to the contrary in this Agreement, the preceding paragraph shall not apply on or after the 1st May, 1968, to a Commonwealth Caribbean Country unless, before that date, there has been deposited an instrument signifying ratification by its Legislature of this Agreement, pursuant to the deposit by its Government of an instrument of endorsement, in accordance with this Article." (iii) Insert before the word "seek" in paragraph 2 the words, "pursuant to any decision thereof in that behalf." (iv) Delete paragraph 3.

061-02

211-01 Waste paper and old paper

271-05 Salt, course and rock

272-11 Gypsum and plasters

282-01 Iron and steel scrap

511-11 Sulphuric acid

512-09 Saccharine to be used for medicinal purposes only

655 Special textile fabrics

655-02 Mat bodies of wool felt and fur felt

Column 1    Column II

072-01        Cocoa beans (except flavoured cocoa)

072-01        Pepper (except sweet peppers, unground) and pimento whether unground, ground or otherwise prepared.

075-02        Spices other than ginger, cinnamon, nutmeg and mace.

252-02        Natural gums,…………………………….

551-01        Essential vegetable oils (except lime, bay, Pimento, nutmeg and orange oils)

611            Leather with the exception of sole leather

653            Textile fabrics, other than cotton fabrics

581-03        Ingots, blooms, slabs, billets, sheet…….. and tin plate bars of iron and steel and equivalent primary forms

681-04        Iron and Steel bars

681-05        Universal, plates and sheets of iron and steel uncoated.

681-06        Hoop and strip of iron and steel (including tube strips and steel strip for springs) coated or not

1. Special arrangements are provided in this Annex for the progressive elimination by less-developed Territories, within ten years from the effective date of this Agreement in conformity with paragraph,4, of import duties on such products as are itemised according to the Standard International Trade Classification (original) as follows:-

2. Special arrangements are provided in this Annex for the progressive elimination by less-developed Territories within ten years from the effective date of this Agreement in conformity with paragraph 4, and by other Member Territories within five years from that date in conformity with paragraph 3, of import duties on such products as are itemised according to the Standard International trade Classification (original) as follows:-

SITC Item No.            Description of Product

C53                          Fruits preserved and fruit preparations, Except frozen citrus concentrates and Citrus segments

121-01                      Tobacco manufactured (including scrap Tobacco, and tobacco stems) Manufactured tobacco except cigars.

122                           Prepared paints, enamels, lacquer and Varnishes. Ships' bottom compositions, Putty and all others (including driers).

Ex 552-02                  Cleansing preparations without soap detergents).

Ex 632                      Crates and wooden containers.

Ex 721-04                  Radio and Television sets.

Ex 721-19                  Accumulators.

Ex 821                      Wood furniture, metal furniture.

Ex 821-09                  Mattresses.

Ex 841                      Underwear, shirts and nightwear of fabrics, other than knitted.

Ex 851-01                 Slippers and house footwear, wholly or mainly of leather.

851-02                      Footwear wholly or mainly of leather .

3. On and after each of the following dates, a Member Territory may apply an import duty on any product eligible for Area tariffs treatment, being a product the duty on which is to be eliminate by the Member Territory within five years as mentioned in the foregoing provisions of this Annex, at a level not exceeding the percentage of the basic duty specified against that date:-

Effective date hereof                100 per cent

1st May, 1969                          80 per cent

1st May, 1970                          60 per cent

1st May, 1971                          40 per cent

1st May, 1972                          20 per cent

1st May, 1973                            0 per cent

4. On an after each of the following dates, a less-developed Territory may apply import duty on any product eligible for Area tariff treatment, being a product the duty on which is to be eliminated by the Territory within ten years as mentioned in the foregoing provisions of this Annex, at a level no exceeding the percentage of the basic duty specified against that date:-

Effective date hereof                 100 per cent

1st May, 1973                           53 per cent

1st May, 1978                             0 per cent

5. Notwithstanding anything hereinbefore provided, special arrangements for the progressive elimination by Member Territories of import duty on any product listed in this Annex shall, in case of its being produced in any such Member Territory at the effective date hereof, come into operation on that date and, in any other case, shall come into operation in so far as applicable, if and when such production commences in any of the Member Territories to which any of such arrangements have for the time being reference and the percentages of basic duty which are thence forth applicable and prescribed by this Annex in relation to that product may be applied thereto accordingly.

6. Any less-developed Territory which considers that serious injury may be done to an industry in such Territory by the total elimination of import duty on any product as required by paragraph 4 may refer the matter to this Council, which may, by majority decision, authorise the continued application by any less-developed territory of import duty on such product after the 30th April, 1978, due regard being had to the report of such committee (if any) as may have been constituted in accordance with Article 27 to examine the matter, and paragraph 2 and 5 of Article 26 shall apply mutatis mutandis in the case of a reference under this paragraph as they apply in the case of a reference by a Member Territory to the Council under that Article.

7. For the purposes of this Annex -

(8) Nothing in this Agreement shall preclude any agreement made between the less- developed Territories, and notified by them to the Council, whereby their import duties on any of the products listed in this Annex and imported form the less-developed Territories shall at any time be eliminated by all the less-developed territories or reduced by not less than such percentage of their respective basic duties as may be so agreed between them, notwithstanding that no corresponding elimination or reduction be made by them in respect of such products imported from the other Member Territories except in so far as it may be necessary so to do for the purposes of compliance with this Annex.

1. Special arrangements are provided in this Annex for the progressive elimination by Member Territories, within five years from the effective date of this Agreement in conformity with paragraph 3, of the effective protective element in revenue duties (hereinafter referred to as protective revenue duty) applied to such imported goods as are itemised according to the Standard International Trade Classification (original) as follows:-

SITC Item No.          Description of Product

112-03                     Beer, stout and ale.

112-04                     Gin, vodka and whisky.

313                          Petroleum Products.

2. Special arrangements are provided in this Annex for the progressive elimination by less-developed Territories within ten years from the effective date of this Agreement in conformity with paragraph 4 and by other Member Territories within five years from that date in conformity with paragraph 3, of protective revenue duty applied to imported goods itemised under the Standard International Trade Classification (original) as follows:-

SITC Item No.            Description of Product

112-4                         Rum

3. On and after each of the following dates, a Member Territory may apply, to any imported goods the protective revenue duty on which is to be eliminated by the Member Territory within five years as mentioned in the foregoing provisions of this Annex, a protective revenue duty at a level not exceeding the percentage of the basic protective revenue duty specified against that date:-

Effective date hereof         100 per cent

1st May, 1969                   40 per cent

1st May, 1970                   30 per cent

1st May, 1971                   20 per cent

1st May, 1972                   10 per cent

1st May, 1973                     0 per cent

4. On and after each of the following dates, a less-developed territory may apply, to any imported goods the protective revenue duty on which is to be eliminated by the Territory within ten years as mentioned in the foregoing provisions of this Annex, a protective revenue duty at a level not exceeding the percentage of the basic protective revenue duty specified against that date:-

Effective date hereof           100 per cent

1st May, 1973                     50 per cent

1st May, 1978                       0 per cent

5. Before the 1st November, 1968, every Member Territory shall notify to the Council its basic protective revenue duty on each product to which the foregoing provisions of this Annex apply. Every Member Territory shall also notify to the Council the reductions which it intends to bring into effect in accordance with the said provisions.

6. Any less-developed Territory which considers that serious injury may be done to an industry in such Territory by the total elimination of protective revenue duty on any product as required by paragraph 4 may refer the matter to the Council, which may, by majority decision, authorise the continued application by any less-developed Territory of protective revenue duty on such product after the 30th April, 1978, due regard being had to the report of such committee (if any) as may have been constituted in accordance with Article 27 to examine the matter, and paragraphs 2 and 5 of Article 26 shall apply mutatis mutandis in the case of any reference under this paragraph as they apply in the case of a reference by a Member Territory to the Council under that Article.

7. For the purposes of this Annex -

8. Notwithstanding anything hereinbefore provided, the foregoing provisions of this Annex shall, in respect of any imported goods itemised as aforesaid, apply to an importing Member Territory wherein neither like goods nor competitive substitutes therefor are produced subject to the following modification, that is to say, the substitution for every reference in those provisions to protective revenue duty of a reference to import duty within the meaning of Article 4.

9. Nothing in this Agreement shall preclude any agreement made between the less-developed Territories, and notified by them to the Council whereby their protective revenue duties on any of the products listed in this Annex and imported from the less-developed Territories shall at any time be eliminated by all the less-developed Territories or reduced by not less than such percentage of their respective basic protective revenue duties as may be so agreed between them, notwithstanding that no corresponding elimination or reduction be made by them in respect of such products imported form the other Member Territories except in so far as it may be necessary so to do for the purpose of compliance with this Annex.

RESOLUTION ADOPTED BY FOURTH HEADS OF GOVERNMENT CONFERENCE ON REGIONAL INTEGRATION

1. Free Trade should be introduced with respect to all intra-Commonwealth Caribbean trade by 1st May 1968, subject to a list of reserved commodities which would be freed within a five-year period for the more-developed countries and within a ten-year period for the less-developed countries; subject to special provisions for appeal by a less-developed Territory to the governing body of the Free Trade Area for further extension in any case where serious injury may be done to a territorial industry.

2. The Governments should approach the task of freeing of trade, by using the CARIFTA Agreement as a basis with suitable modifications.

3. The Commonwealth Caribbean Countries shall immediately take steps to initiate studies to determine whether the objective of achieving trade expansion to the mutual benefit of the member states can be facilitated by the establishment of a common external tariff in whole or in part.

4. The principle should be accepted that certain industries may require for their economic operation the whole or a large part of the entire regional market protected by a common external tariff or other suitable instrument. The location of such industries and the criteria to be applied in respect thereof, as well as the implementation of the principle accepted above, should be the subject of immediate study - such study to have special regard to the situation of the relatively less-developed countries.

5. Subject to existing commitments a regional policy of incentives to industry should be adopted as early as possible on the basis of studies mentioned in Resolution 7 below, bearing in mind the special needs of the less-developed countries for preferential treatment, such as soft loans.

6. Marketing agreements for an agreed list of agricultural commodities should be sought to come into effect at the same time as the commencement of free trade and the territories in the region should examine the possibility of restricting imports from extra-regional sources of agricultural products that are produced within the region and are available for satisfying regional demand.

7. The principle of seeking to establishing more industries in the less-developed countries should be accepted and the ECLA Secretariat should be asked to undertake feasibility studies immediately with a view to identifying industries which should be located in the less-developed countries and to devising special measures for securing the establishment of such industries in these countries. These studies should be submitted to governments no later than one year after the commencement of free trade.

8. The Commonwealth Caribbean Countries should endeavour to maintain and improve regional carriers to facilitate the movement of goods and services within the region.

9. The Commonwealth Caribbean Countries should agree to negotiate with the Shipping Conference the rationalisation freight rates on extra-regional traffic.

10. The ECLA Secretariat for the Caribbean should be asked to undertake a number of studies, for example, studies on the harmonising of incentives and the feasibility of establishing certain regional industries.

11. A committee of Ministers should be set up immediately, functioning as a sub-committee of the Heads of Government Conference, with general responsibility for the establishment of Free Trade Area.

copra, nutmegs and mace, arrowroot

sugar, cocoa, eddoes

coconut oil, sweet potatoes, peanuts

bauxite

SUPPLEMENTARY AGREEMENT NO. 2 TO THE AGREEMENT FOR THE ESTABLISHMENT OF THE CARIBBEAN FREE TRADE ASSOCIATION (1965)

WHEREAS an Agreement (hereinafter referred to as the "Principal Agreement") for the establishment of a Caribbean Free trade Area (hereinafter called "the Area") was signed at Dickenson Bay, Antigua, on behalf of the Governments of Antigua, Barbados and British Guiana on the 15th December, 1965;

AND WHEREAS it is provided by paragraph (3) of Article 31 of the Principal Agreement that, in the event of the notification of difficulties in relation to carrying into effect any provision thereof to the Government of Antigua by any Signatory Territory prior to its ratification thereof, the Principal Agreement shall not take effect except in accordance with a Supplementary Agreement between all the Signatory Territories providing for the resolution of such difficulties;

AND WHEREAS the Government of Guyana, which comprises the territory formerly comprised in British Guiana, has not yet ratified the Principal Agreement and has notified the Government of Antigua that difficulties have arisen in relation to carrying the provisions of the Principal Agreement into effect in so far as they relate to the importation into Guyana of petroleum products;

AND WHEREAS the Governments of Antigua, Barbados and Guyana are desirous of hereby providing for the resolution the said difficulties, and agreeing as to the construction of Article 4 of the Principal Agreement, and that the Principal Agreement should, upon deposit of instruments signifying ratification by them under Article 31 thereof, take effect in accordance herewith:

NOW, THEREFORE, IT IS HEREBY AGREED BY THE GOVERNMENTS OF ANTIGUA, BARBADOS AND GUYANA AS FOLLOWS:-

1. Notwithstanding anything in the Principal Agreement, any quantitative restriction within the meaning of Article 13 thereof may, during any period for which the Government of Guyana is a party to any protective agreement in that behalf relating to a petroleum product produced in Guyana, be applied on imports into Guyana of that petroleum product from any part of the Area:

2. During any period first hereinbefore in this Article referred to in connection with a petroleum produced in Guyana, customs duties shall, at rates not lower than those in force when the Principal Agreement takes effect, be applicable to any permitted imports into Guyana of that petroleum product from outside the Area.

3. Not later than -

4. In this Article "that petroleum product" includes any like of substitute petroleum product.

5. This Article shall not have effect for longer than 15 years from the commencement of a period mentioned in paragraph 2 of this Article.

Nothing in paragraph 2 of Article 4 of the Principal Agreement shall be construed to exclude from the application of paragraph 1 of that Article any tax or surtax of customs on goods the like of which, or substitutes for which, are not produced in the importing Member Territory, or to extend such application to internal charges on any such goods.

Signed by E.H. Lake
For the Government of Antigua on the 10th day of December, 1966
at Georgetown, Guyana.

Signed by Cameron Tudor
For the Government of Barbados on the 10th day of December, 1966
at Georgetown, Guyana.

Signed by S.S. Ramphal
For the Government of Guyana on the 10th day of December, 1966
at Georgetown, Guyana.