RECIPROCAL TRADE Agreement and exchanges of notes signed at Washington November 17, Proclaimed by the President of the United States November 25, 1938 Proclamation and ratification exchanged at London November 24, 1939 Declared inoperative as of January 1, 1948, by agreement of October 30, 1947,2 for such time as the United States and the United Kingdom are both contracting parties to the General Agreement on Tariffs and Trade 3 Terminated July 28, 1962, by agreement of June 27 and 28, 1962 * 54 Stat. 1897; Executive Agreement Series 164 AGREEMENT The President of the United States of America and His Majesty the King of Great Britain, Ireland and the British Dominions beyond the Seas, Emperor of India, in respect of Great Britain and Northern Ireland; Desiring to grant reciprocal concessions and advantages in order to facilitate and extend mutual relations of trade and commerce; Taking into account the absence of any restriction upon the settlement of commercial obligations arising out of such relations; Have resolved to conclude a Trade Agreement and have appointed for this purpose as their Plenipotentiaries: The President of the United States of America: Mr. Cordell Hull, Secretary of State of the United States of America; and His Majesty the King of Great Britain, Ireland and the British Dominions beyond the Seas, Emperor of India: 1 For schedules annexed to agreement, see 54 Stat. 1907 or p. 12 of EAS 164. 'TIAS 1706, post, p. 830. TIAS 1700, ante, vol. 4, p. 639. 13 UST 1786; TIAS 5124. For Great Britain and Northern Ireland: The Right Honorable Sir Ronald Charles Lindsay, G.C.M.G., K.C.B., C.V.O., his Ambassador Extraordinary and Plenipotentiary at Washington, and Arnold Edersheim Overton, Esquire, C.M.G., M.C., a Second Secretary in his Board of Trade; Who, having communicated to each other their full powers, found in good and due form, have agreed as follows: ARTICLE I The territories to which this Agreement shall apply are, on the part of the United States of America, the continental territory of the United States of America and such of its territories and possessions as are included in its customs territory on the day of the signature of this Agreement; and, on the part of His Majesty the King of Great Britain, Ireland and the British Dominions beyond the Seas, Emperor of India (hereinafter referred to as His Majesty the King), Great Britain and Northern Ireland, Newfoundland, the British non-self-governing Colonies, Protectorates and Protected States (except the High Commission Territories in South Africa, namely, Basutoland, Bechuanaland Protectorate and Swaziland, and excluding any territories in the region of the Persian Gulf) and the Mandated Territories of Palestine including Trans-Jordan, the Cameroons under British Mandate, Tanganyika Territory and Togoland under British Mandate. The provisions of this Agreement relating to most-favored-nation treatment shall apply, however, to all territories under the sovereignty or authority of the United States of America, other than the Panama Canal Zone. ARTICLE II 1. Articles the growth, produce or manufacture of the territories of either High Contracting Party shall not be subjected, upon importation into the territories of the other, from whatever place arriving, to other or higher duties or charges of any kind or to any rules or formalities other or more burdensome than those to which the like articles the growth, produce or manufacture of any other foreign country are subject. 2. Articles exported from the territories of either High Contracting Party to the territories of the other shall not be subjected to other or higher duties or charges of any kind or to any rules or formalities other or more burdensome than those to which the like articles exported to any other foreign country are subject. 3. Any advantage, favor, privilege or immunity which has been or may hereafter be granted in the territories of either High Contracting Party in respect of any article originating in or destined for any other foreign country in regard to customs duties and other charges of any kind imposed on or in connection with importation or exportation, to the method of levying such duties or charges, to all matters concerning the rules, formalities and charges imposed in connection with importation or exportation, and to all laws or regulations affecting the sale or use of imported goods within those territories, shall be accorded immediately and unconditionally in respect of the like article originating in or destined for the territories of the other High Contracting Party. ARTICLE III Articles the growth, produce or manufacture of the territories of either High Contracting Party shall, after importation into the territories of the other, be exempt from all internal taxes, fees, charges or exactions other or higher than those payable on or in connection with like articles of domestic or any other origin, except as otherwise required by laws in force on the day of the signature of this Agreement and subject, in the case of the United States of America, to the constitutional limitations on the authority of the Federal Government. ARTICLE IV 1. No prohibition or restriction shall be imposed or maintained on the importation into the territories of either High Contracting Party of any article, from whatever place arriving, the growth, produce or manufacture of the territories of the other High Contracting Party, to which the importation of the like article the growth, produce or manufacture of any other foreign country is not similarly subject. 2. No prohibition or restriction shall be imposed or maintained on the exportation of any article from the territories of either High Contracting Party to the territories of the other, to which the exportation of the like article to any other foreign country is not similarly subject. ARTICLE V If imports of any article into any of the territories of either High Contracting Party should be regulated either as regards the total amount permitted to be imported or as regards the amount permitted to be imported at a specified rate of duty, and if shares are allocated to countries of export, the share allocated to the territories of the other High Contracting Party shall be based upon the proportion of the total imports of such article from all foreign countries supplied by the territories of that High Contracting Party in past years, account being taken in so far as practicable in appropriate cases of any special factors which may have affected or may be affecting the trade in that article. In those cases in which a territory of one of the High Contracting Parties is a relatively large supplier of any such article, the High Contracting Party imposing the regulation shall, whenever practicable, consult with the other High Contracting Party before the share to be allocated to such territory is determined. If the share allocated should, otherwise than from temporary and unavoidable causes, fail to be supplied, the High Contracting Party imposing the regulation may, after due consultation with the other, adjust the allocation to meet the new situation thus created. ARTICLE VI All the provisions of this Agreement providing for most-favored-nation treatment shall be interpreted as meaning that such treatment shall be accorded immediately and unconditionally, without request or compensation. ARTICLE VII The provisions of this Agreement do not extend to favors which are or may hereafter be granted in the territories of either High Contracting Party (1) to facilitate frontier traffic with an adjoining country; (2) in virtue of a customs union which has already been, or may hereafter be, concluded with another country. ARTICLE VIII 1. If either High Contracting Party should establish a monopoly for the importation into or the production or sale in the territories of that High Contracting Party of a particular article, or should grant exclusive privileges to one or more agencies for any of these purposes, or if either High Contracting Party should take measures to enable such a monopoly to be established or such exclusive privileges to be granted, the commerce of the territories of the other High Contracting Party shall receive fair and equitable treatment in respect of the foreign purchases of such monopoly or agency. To this end such monopoly or agency will, in making its foreign purchases of any article, be influenced solely by considerations, such as those of price, quality, marketability and terms of sale, which would ordinarily be taken into account by a private commercial enterprise interested solely in purchasing on the most favorable terms. 2. In awarding contracts for public works and in purchasing supplies, neither High Contracting Party shall discriminate against articles the growth, produce or manufacture of the territories of the other High Contracting Party in favor of those of any other foreign country. ARTICLE IX 5 1. Articles the growth, produce or manufacture of the United States of America specified in Schedule I annexed to this Agreement shall, on their importation into the United Kingdom of Great Britain and Northern Ire "See footnote 1, p. 522. land, from whatever place arriving, be accorded the treatment provided for in the said Schedule. 2. If, however, the Government of the United Kingdom is satisfied after inquiry (a) that any article the growth, produce or manufacture of the United States of America of the description specified in Schedule I is being imported and sold in the United Kingdom at less than the comparable price in the United States of America, due allowance being made for costs of transportation and other charges incidental to making delivery of the goods, or (b) that any such article imported into the United Kingdom is the subject of export bounties or subsidies in the United States of America, and that in consequence of the fulfilment of either of the foregoing conditions a trade or industry in the United Kingdom is or is likely to be injuriously affected; then, notwithstanding anything in paragraph 1 of this Article, the Government of the United Kingdom shall be at liberty, after consultation with the Government of the United States of America, in cases coming under (a) above, to take such measures as the two Governments may deem necessary and appropriate in order to act as an effective deterrent to the practice in question; and, in cases coming under (b) above, to impose such additional duties or charges on the article concerned as may be required to compensate for the bounty or subsidy. 3. Any measures taken under the preceding paragraph shall be withdrawn as soon as the circumstances which gave rise to their imposition have ceased to operate. ARTICLE X 1. Articles the growth, produce or manufacture of the United States of America specified in Schedule II annexed to this Agreement shall, on their importation into Newfoundland, from whatever place arriving, be accorded the treatment provided for in the said Schedule. 2. If, however, the Government of Newfoundland is satisfied after inquiry (a) that any article the growth, produce or manufacture of the United States of America of the description specified in Schedule II is being imported and sold in Newfoundland at less than the comparable price in the United States of America, due allowance being made for costs of transportation and other charges incidental to making delivery of the goods, or (b) that any such article imported into Newfoundland is the subject of export bounties or subsidies in the United States of America, and that in consequence of the fulfilment of either of the foregoing conditions a trade or industry in Newfoundland is or is likely to be injuriously affected; then, notwithstanding anything in paragraph 1 of this Article, the Government of Newfoundland shall be at liberty, after consultation between the Government of the United Kingdom and the Government of the United States of America, in cases coming under (a) above, to take such measures as the Governments may deem necessary and appropriate in order to act as an effective deterrent to the |