7. All balance-of-payments restrictions are subject to periodic review in the Committee under Article XII, paragraph 4, paragraph b), or Article XVIII, paragraph 12, point b), subject to the possibility of modifying the periodicity of consultations in agreement with the advisor or in accordance with a special review procedure recommended by the General Council. 11. The unions and the constituent elements of free trade areas regularly report to the Goods Trade Council, as provided for by the Contracting PARTIES at the 1947 GATT in their instruction to the 1947 GATT Council on Regional Agreement Reports (BISD 18S/38) on the functioning of the agreement in question. Any substantial changes and/or developments in the agreements should be notified as soon as they occur. To refer to a location, use the prepositions “in” (the dot itself), “at” (the general environment), “on” (the surface) and “inside” (contains something). 1. Customs unions, free trade zones and interim agreements leading to the establishment of a customs union or free trade area in accordance with Article XXIV must, among other things, comply with the provisions of paragraphs 5, 6, 7 and 8 of this article. Recognising the contribution to the expansion of world trade, which can be made by closer integration between the economies of the parties to these agreements, 4. Article XXIV, paragraph 6, defines the procedure to be followed when a member forming a customs union proposes an increase in the bound tariff rate. In this context, members reaffirmed that the procedure under Article XXVIII, as defined in the guidelines adopted on 10 November 1980 (BISD 27S/26-28) and in the agreement on the interpretation of Article XXVIII of the GATT 1994, must be initiated before tariff concessions are amended or withdrawn following the creation of a customs union or an interim agreement leading to the formation of a customs union.
Noting that Article XVII provides Members with obligations relating to the activities of state-owned commercial enterprises covered by Article XVII, which must be consistent with the general principles of non-discriminatory treatment at the 1994 GATT with regard to government measures in relation to imports or exports by private economic operators; 5. These negotiations are initiated in good faith in order to achieve a satisfactory compensatory adjustment for both parties. These negotiations, as requested by Article XXIV, paragraph 6, take due account of tariff reductions made by other elements of the customs union when it was created on the same customs line. If these reductions are not sufficient to ensure the necessary compensatory adjustment, the customs union would propose countervailing measures that may take the form of tariff reductions on other tariff lines. Such an offer is taken into account by members who have binding bargaining rights over the amendment or withdrawal. If the compensatory adjustment remains unacceptable, negotiations should continue. If, despite these efforts, it is not possible to reach an agreement in the negotiations on the adjustment of the compensation under Article XXVIII in accordance with Article XXVIII, as established in the agreement on the interpretation of Article XXVIII of the 1994 GATT, the customs union may be free to amend or withdraw concessions; The members concerned are then free to withdraw substantially equivalent concessions under Article XXVIII.