Glossary of Customs Terms

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Balance Of Payments Consultations Article XV of GATT requires coordination between the General Agreement on Tariffs and Trade and the International Monetary Fund to ensure that the trade and payments implications of any quantitative restrictions imposed for balance of payments reasons are fully analyzed within the respective jurisdictions of both organizations. Any Contracting Party that imposes such quantitative restrictions for balance of payments reasons is expected to hold consultations with other interested Contracting Parties. The Framework Agreement concluded during the Tokyo Round provided that any other trade restrictive measures imposed for balance of payments reasons should also be discussed in such consultations.
See also: Consultations, Exchange Controls, Framework Agreement, General Agreement on Tariffs and Trade, International Monetary Fund, Prior Deposits, Quantitative Restrictions,

Consultations Formal discussions between two or more parties to an agreement, particularly with respect to their rights under the agreement. GATT Article XXII obligates a Contracting Party to consult on any GATT-related matter whenever any other Contracting Party requests it to do so. GATT Article XXIII provides that any country that believes its trade interests have been adversely affected--"nullified" or "impaired"--by changes in the trade regime of another country or by another country's failure to carry out its GATT obligations may request bilateral consultations with the concerned party. If such government-to-government consultations do not yield results satisfactory to the concerned parties, the complaining country may seek the establishment of a special panel under the aegis of GATT to review the facts and recommend compensation or other appropriate action. A GATT Contracting Party is also expected to hold consultations with other interested Contracting Parties to discuss any trade restrictive measures it imposes for balance of payments reasons. Bilateral agreements may also provide for consultations under specified circumstances.
See also: Balance of Payments Consultations, Compensation, Dispute Settlement, Panel of Experts,