SUPPLEMENTARY AGREEMENT UNDER ARTICLE 31(3) OF THE AGREEMENT FOR THE ESTABLISHMENT OF THE CARIBBEAN FREE TRADE ASSOCIATION SIGNED AT DICKENSON BAY, ANTIGUA, ON 15TH DECEMBER 1965 (signed March 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 Guyana in keeping with the provisions of paragraph 3 of Article 31 of the Principal Agreement;

AND WHEREAS Guyana has not yet ratified the Principal Agreement and, acting under the provision 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 hereinbefore mentioned;

AND WHEREAS the Governments of Antigua, Barbados and Guyana are desirous of hereby concluding in conformity with the above-mentioned 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:-

ARTICLE 1
Substitution of new preambles to Principal Agreement


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

"THE GOVERNMENTS OF THE SIGNATORY TERRITORIES - SHARING a common determination to fulfil within the shortest possible time the hopes and aspirations of the peoples of the Caribbean Territories 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, co-ordinated and sustained and economic development;

AWARE that the broadening of domestic markets through the elimination of barriers to trade between the Territories is a pre-requisite to such development;

CONVINCED that such elimination of barriers to trade can best be achieved by the immediate establishment of a free trade area which will contribute to the ultimate creation of a viable economic community of Caribbean Territories;

MINDFUL of the different levels of development attained by the Territories of the Caribbean;

HAVE AGREED as follows:"

ARTICLE 2
Amendment to Provisions of Principal Agreement


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 3
Substitution of new Article 25 of Principal Agreement


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

"ARTICLE 25
Invisibles


The Council shall as soon as practicable, having due regard to international obligations, decide the treatment to be given to invisible transactions and transfers amongst Member Territories with a view to promoting the objectives of this Agreement."

ARTICLE 4
Insertion of new Articles 38 and 39 in Principal Agreement


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

"ARTICLE 38 - Protection of Guyanese petroleum products

1. Notwithstanding anything in this Agreement, any quantitative restriction within the meaning of Article 13 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 other part of the Area:

Provided that no such restriction shall be so applied on imports of any petroleum product, other than Bunker C, asphalt or road oil, during any year except with a view to preventing the importation of that petroleum product into Guyana to any extent in excess of

(a) one third of such amount of that petroleum product as is reasonably considered by the Government of Guyana to be marketable in Guyana during such year; or
(b) the difference between such amount of that petroleum product as is reasonably considered by the Government of Guyana to be marketable in Guyana during such year and any lesser amount of that petroleum product which is reasonably considered by the said Government to be producible in Guyana during such year, whichever is more.

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

3. Not later than -

(a) the commencement, during any year, of any period mentioned in paragraph 2 of this Article;
(b) the commencement, during any such period, of any year, Guyana shall notify to the Council the amounts mentioned in paragraph (b) of the proviso to paragraph 1 of this Article in relation to that year and shall, at the request of any member Territory, inform the Council in strictest confidence of the reasons of the Government of Guyana for arriving at such amounts.

4. In this Article, "that petroleum product" includes any like or substitutable 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.

ARTICLE 39 - Promotion of Industrial Development in Less-Developed Territories

Upon any application made in that behalf by the less-developed Territories as defined in Annexe B, the Council may, if necessary as a temporary measure in order to promote the development of an industry in any of those Territories, authorise by majority decision such Territories to suspend Area tariff treatment of any description of imports eligible therefor on grounds of production in the other Member Territories, any of whom may, during the period for which such authorisation is in force, suspend Area tariff treatment of the like description of imports eligible therefor on grounds of production in the less-developed Territories."


ARTICLE 5
Variation of Annexes to Principal Agreement


The Principal Agreement is hereby amended -

(a) by deleting Annex C and substituting for the letter "B" in the caption to Annex B, the letter "C";
(b) by deleting from the Basic Materials List, which forms the Schedule to the last-mentioned Annex, the items, set out in Part 1 of the Second Schedule hereto, and by inserting the word "EX" immediately before the following item numbers in that list, that is to say, 291-09, 312-01, 511-09, 655-06 (wherever it appears), 699-05 and 699-06;
(c) by substituting for every such classification of materials as appears in the said Basic Materials List against any item number mentioned in the first column of Part 11 of the Second Schedule hereto the classification set out opposite in the second column of that Part;
(d) by substituting for Annex A and Annex D the annexes set out in the Third Schedule and the Fourth Schedule hereto, respectively, and inserting (with appropriate caption) as Annex A to the Principal Agreement the Resolution set out in the Fifth Schedule hereto;
(e) by substituting for the letter "E" in the caption to Annex E the letter "F" and inserting as Annex E to the Principal Agreement the annex set out in the Sixth Schedule hereto.

ARTICLE 6
Schedules


The Schedules to this Agreement are an integral part of this Agreement.

ARTICLE 7
Rescission of previous Supplementary Agreement


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.

ARTICLE 8
Construction of this Agreement


This Agreement shall be read and construed as one with the Principal Agreement.

IN WITNESS whereof the undersigned, duly authorised, have signed the present Agreement for the Governments of Antigua, Barbados and Guyana.

Done in a single copy which shall be deposited with the Government of Antigua by which certified copies shall be transmitted to all other Signatory and participating Territories.

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 the 15th day of March, 1968, at Georgetown, Guyana


FIRST SCHEDULE
 Article 2

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 internationally recognised'.

(iii) Substitute for the words "the Council may set up" the words "are mentioned in paragraph 3 of Article 28"
Article 2 (i) Substitute for paragraph (c) the following -
"(c) to encourage the balanced and progressive development of the economies of the Area in keeping with paragraphs 3 to10 of the Resolution adopted at the Fourth Conference of the Heads of Government of Commonwealth 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 -

"(e) 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 paragraphs 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,
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 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 -
"7. 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 party to the Oils and Fats Agreement, and the Government of the other of such Territories is not a party to that 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", wherever 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 applied and the rate of such duty. The Council shall keep under review the question of such export 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 word "A, B and C" the letters and word "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 to this Agreement".
(ii) Delete the words "and Annex D" in paragraph 2.
Article 14, paragraph 1 Substitute for the word "A" the words "Subject as 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 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 19, paragraph 3 Substitute for the ordinal, word and figures "31st December, 1967" in sub-paragraph (a) the ordinal, word and figures "30th April, 1970".
Article 20, paragraph 4 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 figures "1st 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."

(ii) Renumber paragraphs 2, 3, 4 and 5 as paragraphs 3, 4, 5 and 6, respectively, and insert the following as paragraph 2 -

"2. The 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 3 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 it 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 Caribbean Regional Secretariat, approved at the Conference of Ministers of Trade held in Guyana on 21st and 22nd February, 1968, or in such other manner 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."
Article 32 (i) Insert before the word "seek" in paragraph 2 the words, "pursuant to any decision thereof in that behalf,"

(ii) Delete paragraph 3.

SECOND SCHEDULE
Article 5(b) and (c)


PART 1
081-02 Pollard, sharps
251-01 Waste paper and old paper
272-05 Salt, coarse and rock
272-11 Gypsum and plasters
282-01 Iron and steel scrap
511-01 Sulphuric acid
512-09 Saccharine to be used for medicinal purposes only
655 Special textile fabrics
655-02 Hat bodies of wool felt and fur felt

PART II

Column I Column II
072-01 Cocoa beans (except flavoured cocoa)
075-01 Pepper (except sweet pepper, unground) and pimento whether unground, ground or otherwise prepared
075-02 Spices other than ginger, cinnamon, nutmeg and mace
292-02 Natural gum, resins and lacs
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
681-03 Ingots, blooms, slabs, billets, sheet bars and tin plate bars of iron and steel and equivalent primary forms
681-04 Iron and steel bars
681-05 Universals, 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

THIRD SCHEDULE
Article 5(d)

Annex 'B'

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:-

SITC Item No.
Description of Product
Ex 048-04 Biscuits, sweetened or unsweetened
Ex 657-03 Coir products, mats and matting
Ex 899-13 Brushes made with plastic bristles, except paint brushes and artists' brushes

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
053 Fruits preserved and fruit preparations, except frozen citrus concentrates and citrus segments.
121-01 Tobacco unmanufactured (including scrap tobacco and tobacco stems).
122 Manufactured tobacco except cigars.
Ex 523 Prepared paints, enamels, lacquer and varnishes. Ships' bottom compositions, putty and all other (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 and shirts of knitted fabrics. Underwear, shirts and nightwear of fabrics, other than knitted. Outerwear of non-knitted textile fabrics.
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 tariff treatment, being a product the duty on which is to be eliminated 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 and 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 not exceeding the percentage of the basic duty specified against that date:-

Effective date hereof 100 per cent
1st May, 1973 50 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 thenceforth applicable as 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 the 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 paragraphs 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 -

(a) "basic duty" means, in respect of any product imported into a Member Territory, the import duty applicable in that Territory, immediately before the effective date hereof, to imports of such a product from the other Territories becoming Members of the Association;
(b) "paragraph" means a paragraph of this Annex;
(c) "less-developed Territories" means Member Territories including neither Barbados, Guyana, Jamaica nor Trinidad and Tobago.

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 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 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.

FOURTH SCHEDULE
 Article 5(d)


Annex 'D'

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 whiskey
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
112-04 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 -

(a) the basic protective revenue duty, in respect of any product imported into a Member Territory, shall be the protective revenue duty applicable in that Territory, immediately before the effective date hereof, to imports of such a product from the other Territories becoming Members of the Association;
(b) "less-developed Territories" shall have the meaning assigned thereto by paragraph 7 of Annex 'B';
(c) "paragraph" means a paragraph 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 basis 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 from the other Member Territories except, in so far as it may be necessary so to do for the purpose of compliance with this Annex.

FIFTH SCHEDULE
Article 5(d)
Resolution adopted by Fourth Heads of Government
Conference on Regional Integration


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 into effect at the same time as the commencement of tree 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 establish 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 in 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.

SIXTH SCHEDULE
Article 5(e)
Annex 'E'

copra nutmegs and mace arrowroot
sugar cocoa eddoes
coconut oil sweet potatoes peanuts
bauxite

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