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INTERNATIONAL TROPICAL TIMBER AGREEMENT
1994
UNITED NATIONS
New York and Geneva, 1994
CONTENTS
Introduction 3
List of States and Organizations Represented at the United Nations Conference for the
Negotiation of a Successor Agreement to the International Tropical Timber Agreement,
1983 6
Agenda of the United Nations Conference for the Negotiation of a Successor
Agreement to the International Tropical Timber agreement, 1983 9
Formal Statement by Consumer Members 10
Resolution Adopted by the Conference 11
International Tropical Timber Agreement, 1994 12
INTRODUCTION
1. Taking into account the decision of the International Tropical Timber Council (ITTC)
at its eleventh session on 4 December 1994, and in accordance with the calendar of
meetings approved by the Trade and Development Board on 14 October 1992, the
Secretary-General of UNCTAD convened the United Nations Conference for the
Negotiation of a Successor Agreement to the International Tropical Timber Agreement,
1983, on 13 April 1993. The Conference, which was opened by Mr. Carlos Fortin,
Deputy to the Secretary-General of UNCTAD, Director of the Commodities Division,
and Mr. B.C.Y. Freezailah, Executive Director of the International Tropical Timber
Organization, was held at the Palais des Nations, Geneva, in four parts: the first from
13 to 16 April 1993, the second from 21 to 25 June 1993, the third from 4 to 15 October
1993, and the fourth from 10 to 26 January 1994. Mr. Wisber Loeis (Indonesia) was
elected President of the Conference, and Mrs. Yolanda Goedkoop-Van Opijen
(Netherlands) and Mr. Jorge Barba (Ecuador) and fourth parts of the conference, was
replaced by Mr. Christian Espinoza (Ecuador) as the Vice-President for the duration of
the second and fourth parts of the Conference.
2. The Conference had before it separate proposals by the producer and consumer
groups of members of the International Tropical Timber Organization (ITTO)
(TD.TIMBER.2/R.1), which was prepared by the Secretary-General of UNCTAD, in
cooperation with the Executive Director of ITTP in accordance with the resolution
adopted on 16 April 1993 at the fourth plenary meeting of the Conference. The
Conference also had before it: a non-paper of the Chairman of ITTC on informal
consultations regarding a successor agreement to the International Tropical Timber
Agreement, 1983, during the fourteenth session of ITTC, (TD.TIMBER.2/CRP.1); the
President's revised discussion paper submitted by the President following the
consultations held pursuant to operative paragraph 1 of the resolution
(TD/TIMBER.2/12) adopted at the end of the third part of the Conference.
3. On 21 January 1994, a Formal Statement by Consumer Members was circulated in
TD/TIMBER.2/L.6 (see p. 10). A statement on the Sustainable Management of
Conference on 24 January 1994. (TD/TIMBER.2/L.7).
Participation and Credentials
4. Representatives of 61 States attended the Conference as participants and 2 as
observers. The first part of the Conference was attended by the representatives of 57
States, 55 attending as participants and 2 as observers. The second part was attended
by the representatives of 50 States attending as participants. The third part was
attended by the representatives of 52 States attending as participants, and the fourth
part by the representatives of 49 States, 48 attending as participants and 1 as an
observer. Representatives of the European Community participated in all parts of the
Conference.
5. A number of United Nations bodies and specialized and related agencies of the
United Nations, and one national liberation movement invited to participate pursuant to
General Assembly resolution 3280 (XXIX), sent observers to the Conference. On
intergovernmental organization and 19 non-governmental organizations participated in
the Conference by its decision (see pp. 7 and 8).
6. At each of the Conference, the credentials of the representatives of States
participating in the Conference were approved on the recommendation of the
Credentials Committee.
Structure of the Conference
7. At its first plenary meeting, on 13 April 1993, the Conference adopted its agenda as
contained in TD/TIMBER.2/4) (see p. 9) and its rules of procedure by the President of
the Conference and supported by the two Vice-Presidents, to deal with agenda items 8
and 9 in closed session. It subsequently appointed a Credentials Committee to examine
the credentials of the representatives of States participating in the Conference (see
para. 11 below).
8. The Executive Committee held 11 meetings. At its first meeting, on 3 April 1993, it
established and Economic and Technical Committee and a Committee convened, as
and when necessary, an informal contact group to deal with a number of key issues
pending in the Executive Committee.
9. The Economic and Technical Committee was chaired by Mr. David Boulter (Canada).
The Financial and Administrative Committee was chaired by Mr. Eugene Capito
(Gabon) who, in his absence during the fourth part of the Conference, was replaced by
Mr. E.O. Nsekyire (Ghana).
10. At its 12th plenary meeting, the Conference established an Editorial Group to take p
the texts of articles referred to it with a view to considering any editorial or linguistic
matters without touching upon substantive issues and to prepare the composite text of
a successor agreement. This Group was open to all interested participants. It had a
core membership consisting of 10 members, 5 representatives each from the producer
and consumer groups. The Group met three times. Mr. Christian Espinoza (Ecuador)
chaired this Group at its 1st and 2nd meetings, and Mr. E.O. Nsekyire (Ghana) chaired
the 3rd meeting of the Group.
11. The Credentials Committee was appointed by the Conference at its 3rd plenary
meeting on 14 April 1993, with the following membership: Congo, Japan, Mexico,
Netherlands and Phillippines. Mr. S. Ise (Japan) was elected as Chairman of the
Credentials Committee. The Committee had four meetings and prepared four reported
(TD/TIMBER.2/6), TD/TIMBER.2/8, TD/TIMBER./11 and TD/TIMBER.2/13, which were
approved by the Conference.
Closure of the Conference
12. At its 14th (closing) plenary meeting, on 26 January 1994, the Conference
established the text of the International Tropical Timber Agreement, 1994 (see p. 12)
and adopted a final resolution as contained in TD/TIMBER.2/14 (see p. 11). At the time
of the adoption of the Agreement, several delegations made statements, summaries of
which are reproduced in TD/TIMBER.2/15.
Entry into Force and Duration
13. The Agreement is open for signature, at United Nations Headquarters in New York
from 1 April 1994 until one month after the date of its entry into force, by Governments
invited to the United Nations Conference for the Negotiation of a Successor Agreement
to the International Tropical Timber Agreement, 1983. For the Agreement to enter into
force definitively, 12 Governments of producing countries holding at least 55 percent of
the total votes as set out in Annex A to the Agreement, and 16 Governments of
consuming countries holding at least 70 percent of the total votes as set out in Annex B
to the Agreement, must either sign the Agreement definitively or deposit instruments of
ratification, acceptance, approval or accession. If the requirements for definitive entry
into force provisionally on that date or on any date within six months thereafter, if 10
Governments of producing countries holding at least 50 percent of the total votes, as
set out in Annex A to the Agreement, and 14 Governments of consuming countries
holding at least 65 percent of the total votes, as set out in Annex B to the Agreement,
have either signed the Agreement definitively or have deposited instruments of
ratification, acceptance or approval, or have notified the depository that they will apply
the Agreement provisionally.
14. If the requirements for definitive or provisional entry into force have not been met by
1 September 1995, the Secretary-General of the United Nations is requested to invite
those Governments which have either signed the Agreement definitively, or have
deposited instruments of ratification acceptance or approval, or have notified the
depository that they will apply the Agreement provisionally, to meet at the earliest time
practicable to decide whether to put the Agreement into force provisionally or
definitively among themselves in whole or in part. Governments which decide to put this
Agreement into force provisionally among themselves may meet from time to time to
review the situation and decide whether this Agreement shall enter into force
definitively among themselves.
15. The Agreement will remain in force for a period of four years from the date of its
entry into force, unless the Council decides to extend, renegotiate or terminate it. The
Agreement provides that the Council may decide to extend the Agreement for not more
than two periods of three years each.
LIST OF STATES AND ORGANIZATIONS REPRESENTED AT THE UNITED
NATIONS CONFERENCE FOR THE NEGOTIATION OF A SUCCESSOR
AGREEMENT TO THE INTERNATIONAL TROPICAL TIMBER AGREEMENT, 1983The
full list of participants was distributed in documents TD/TIMBER.2/INF.1,
TD/TIMBER.2/INF.2, TD/TIMBER.2/INF.3 and TD/TIMBER.2/INF.4.
**Belgium represented Luxembourg at the first, second, and fourth parts. LIST OF STATES AND ORGANIZATIONS REPRESENTED AT THE UNITED NATIONS CONFERENCE FOR THE NEGOTIATION OF A SUCCESSOR AGREEMENT TO THE INTERNATIONAL TROPICAL TIMBER AGREEMENT, 1983**The full list of participants was distributed in documents TD/TIMBER.2/INF.1, TD/TIMBER.2/INF.2, TD/TIMBER.2/INF.3 and TD/TIMBER.2/INF.4. **Belgium represented Luxembourg at the first, second, and fourth parts.
I. Participants
Afghanistan
Algeria
Australia
Austria
Bahrain
Belgium*
Bolivia
Brazil
Bulgaria
Cameroon
Canada
Chile
China
Colombia
Congo
Costa Rica
Cote d'Ivoire
Denmark
Dominican Republic
Ecuador
Egypt
El Salvador
Equatorial Guinea
Finland
France
Gabon
Germany
Ghana
Greece
Honduras
Indonesia
Ireland
Italy
Japan
Liberia
Luxembourg**
Malaysia
Mexico
Myanmar
Nepal
Netherlands
New Zealand
Norway
Panama
Papua New Guinea
Paraguay
Peru
Philippines
Portugal
Republic of Korea
Russian Federation
Slovakia
Spain
Sweden
Switzerland
Thailand
Trinidad and Tobago
United Kingdom of Great Britain and Northern Ireland
United Republic of Tanzania
United States of America
Venezuela
* * *
European Community
II. Observers
States
Democratic People's Republic of Korea
India
Invited to participate pursuant to General Assembly resolution 3280 (XX(X)
Pan Africanist Congress of Azania
United Nations
Convention on International Trade in Endangered Species of Wild Fauna and Flora
Economic Commission for Europe
United Nations Development Programme
United Nations Environment Programme
* * *
International Trade Centre UNCTAD/GATT
Specialized and related agencies
Food and Agriculture Organization of the United Nations
International Labour Organization
International Monetary Fund
* * *
General Agreement on Tariffs and Trade
Intergovernmental organizations
Organization of African Unity
Non-governmental organization
Advice and Research for Development and Environment
Center for Energy and Environmental Studies
Centre for Resource and Environmental Studies
Friends of the Earth (England, Northern Ireland and Wale)
Friends of the Earth (Ghana)
Friends of the Earth (United States)
Indonesian Network for Forest Conservation
International Alliance of the Indigenous-Tribal Peoples of the Tropical Forests
International Council of Environmental Law
International Studies Association
International Technical Tropical Timber Association
National Wildlife Federation
Nuu-Chah-Nulth Tribal Council
Rainforest Action Network
Save the Rainforests
Sierra Club
Traffic International
World Conservation Union
World Wide Fund for Nature
AGENDA OF THE UNITED NATIONS CONFERENCE FOR THE NEGOTIATION
OF A SUCCESSOR AGREEMENT TO THE INTERNATIONAL TROPICAL TIMBER
AGREEMENT, 1983
1. Opening of the Conference
2. Adoption of the Agenda
3. Adoption of the rules of procedure
4. Election of officers
5. Credentials of representatives
(a) Appointment of the Credentials Committee
(b) Report of the Credentials Committee
6. Admission of observers
7. Establishment of committees and working parties as required
8. Preparation of a successor agreement to the International Tropical Timber
Agreement, 1983.
9. Consideration and adoption of final resolutions
10. Other business.
FORMAL STATEMENT BY CONSUMER MEMBERS
The States listed below, as well as the European Community, participating in the
United Nations Conference for the Negotiation of a Successor Agreement to the
International Tropical Timber Agreement, 1983:
1. Recognized the importance of the conversation and sustainable management of all
types of forests,
2. Note the high standard of sustainability which has already been achieved by
individual countries in the management of their respective forests.
3. Also not the international initiatives already taken towards sustainable management
of their forests by the year 2000.
4. Further note the international initiatives already taken towards sustainable
management of forests, as well as those that could be undertaken in the future, and
5. Are conscious of the desirability of having all timber-producing countries meet
comparably high standards of sustainable forest management.
6. Affirm therefore that:
- All States listed below commit to implement appropriate guidelines and criteria for
sustainable management of their forests comparable to those developed by the
International Timber Organization;
- Those States which have already achieved a high standard of sustainable
management of their forests commit to maintain and enhance the sustainable
management of either forest;
- Other States commit to the national objective of achieving sustainable management
of their forests by the year 2000; and
- Appropriate resources should be provided to developing consuming countries to
enable them to achieve the objective of sustainable forest management.
7. Request the Secretary-General of the United Nations Conference on Trade and
Development to publish and circulate this Statement together with the official
documents of the Conference.
Australia, Austria, Canada, China, European Community, Belgium/Luxembourg,
Denmark, France, Germany, Ireland, Italy, Netherlands, Portugal, Spain, United
Kingdom of Great Britain and Northern Ireland, Finland, Japan, New Zealand, Norway,
Republic of Korea, Russian Federation, Sweden, Switzerland, United States of
America.
RESOLUTION ADOPTED BY THE CONFERENCE
The United States Conference for the Negotiation of a Successor Agreement to the
International Tropical Timber Agreement, 1983,
Having met in Geneva from 13 to 16 April 1993, 21 to 25 June 1993, 4 to 15 October
1993 and from 10 to 26 January 1994,
Expressing its gratitude for the facilities and services provided by the
Secretary-General of UNCTAD,
Recording its appreciation of the contribution made by the President of the Conference
and by its other officers, as well as by the secretariat,
Having established the text of the International Tropical Timber Agreement, 1994, in
Arabic, Chinese, English, French, Russian and Spanish,
1. Requests the Secretary-General of the United Nations to forward copies of the text
of the Agreement to all Governments and intergovernmental organizations invited to the
Conference for their consideration;
2. Requests the Secretary-General of the United Nations to arrange for Agreement to
be open for signature at United Nations Headquarters in New York during the period
laid down in article 38 of the Agreement;
3. Draw attention to the procedures available to States and to intergovernmental
organizations referred to in article 5 of the Agreement to become parties to the
International Tropical Timber Agreement, 1994, and invites them to deposit the
appropriate instruments to this end.
PREAMBLE
The parties to this Agreement,
Recalling the Declaration and the Programme of Action on the Establishment of a New
International Economic Order; the Integrated Programme for Commodities; a New
Partnership for Development; the Cartagena Commitment and the relevant objectives
contained in the Spirit of Cartagena.
Recalling the International Tropical Timber Agreement, 1983; and recognizing the work
of the International Tropical Timber Organization and its achievement since its
inception, including a strategy for achieving international trade in tropical timber from
sustainably managed sources.
Recalling further the Rio Declaration on Environment and Development, the
Non-legally Binding Authoritative Statement of Principles for a Global Consensus on
the Management, Conservation and Sustainable Development of all Types of Forests,
and the relevant Chapters of Agenda 21 as adopted by the United Nations Conference
on Environment and Development in June 1992, in Rio de Janeiro, the United Nations
Framework Convention on Climate Changes, and the Convention on Biological
Diversity.
Recognizing the importance of timber to the economies of countries with
timber-producing forests.
Further recognizing the need to promote and apply comparable and appropriate
guidelines and criteria for the management, conservation and sustainable development
of all types of timber-producing forests.
Taking into account the linkage of tropical timber trade and the international timber
market and the need for taking a global perspective in order to improve transparency in
the international timber market.
Noting the commitment of all members, made in Bali, Indonesia, in May 1990, to
achieve exports of tropical timber products from sustainably managed sources by the
year 2000 and recognizing Principle 10 of the Non-legally Binding Authoritative
Statement of Principles for a Global Consensus on the Management, Conservation and
Sustainable Development of all Types of Forests which states that new and additional
financial resources should be provided to developing countries to enable them to
sustainably manage, conserve and develop their forests, including through
afforestation, reforestation and combating deforestation and forest and land
degradation.
Noting also the statement of commitment to maintain, or achieve by the year 2000, the
sustainable management of their respective forests made by consuming members who
are parties to the International Tropical Timber Agreement, 1983 at the fourth session
of the United Nations Conference for the Negotiation of a Successor Agreement to the
International Tropical Timber Agreement, 1983 in Geneva on 21 January 1994.
CHAPTER I: OBJECTIVES
Article 1
Objectives
Recognizing the sovereignty of members over their natural resources, as defined in
Principle 1 (a) of the Non-legally Binding Authoritative Statement of Principles for a
Global Consensus on the Management, Conservation and Sustainable Development of
all Types of Forests, the objectives of the International Tropical Timber Agreement,
1994 (hereinafter referred to as "this agreement") are:
(a) To provide an effective framework for consultation, international cooperation and
policy development among all members with regard to all relevant aspects of the world
timber practices;
(b) To provide a forum for consultation to promote non-discriminatory timber trade
practices;
(c) To contribute to the process of sustainable development;
(d) To enhance the capacity of members to implement a strategy for achieving exports
of tropical timber and timber products from sustainably managed sources by the year
2000;
(e) To promote the expansion and diversification of international trade in tropical timber
from sustainable sources by improving the structural conditions in international
markets, by taking into account, on the one hand, a long-term increase in consumption
and continuity of supplies, an, on the other, prices which reflect the costs of sustainable
forest management and which are remunerative and equitable for members, and the
improvement of market access;
(f) To promote and support research and development with a view to improving forest
management and efficiency of wood utilization as well as increasing the capacity to
conserve and enhance other forest values in timber producing tropical forests;
(g) To develop and contribute towards mechanisms for the provision of new and
additional financial resources and expertise needed to enhance the capacity of
producing members to attain the objectives of this Agreement;
(h) To improve market intelligence with a view to ensuring greater transparency in the
international timber market, including the gathering, compilation, and dissemination of
trade related data, including data related to species being traded;
(i) To promote increased and further processing of tropical timber from sustainable
sources in producing member countries with a view to promoting their industrialization
and thereby increasing their employment opportunities and export earnings;
(j) To encourage members to support and develop industrial tropical timber
reforestation and forest management activities as well as rehabilitation of degraded
forest land, with due regard for the interests of local communities dependent on forest
resources;
(k) To improve marketing and distribution of tropical timber exports from sustainably
managed sources;
(l) To encourage members to develop national policies aimed at sustainable utilization
and conservation of timber producing forests and their genetic resources and at
maintaining the ecological balance in the regions concerned, in the context of tropical
timber trade;
(m) To promote the access to, and transfer of, technologies and technical cooperation
to implement the objectives of this Agreement, including technical cooperation to
implement the objectives of this Agreement, including on confessional and preferential
terms and conditions, as mutually agree; and
(n) To encourage information-sharing on the international timber market.
CHAPTER II. DEFINITIONS
Article 2
Definitions
For the purposes of this Agreement:
1. "Tropical timber" means non-coniferous tropical wood for industrial uses, which
grows or is produced in the countries situated between the Tropic of Cancer and the
Tropic of Capricorn. The term covers logs, sawnwood, veneer sheets and plywood.
Plywood which includes in some measure conifers of tropical origin shall also be
covered by this definition;
2. "Further processing" means the transformation of logs into primary wood products,
semi-finished and finished products made wholly or almost wholly of tropical timber;
3. "Member" means a Government of an intergovernmental organization referred to in
article 5 which has consented to be bound by this Agreement whether it is in force
provisionally or definitively;
4. "Producing member" means any country with tropical forest resources and/or a new
exporter of tropical timber in volume terms which is listed in Annex A and which
becomes a party to this Agreement, or any country with tropical resources and/or a net
exporter of tropical timber in volume which is not so listed and which becomes a party
to this Agreement and which the Council, with the consent of that country, declares to
be a producing member;
5. "Consuming member" means any country listed in Annex B which becomes a party to
this Agreement, or any country not so listed which becomes a party to this Agreement
and which the Council, with the consent of that country, declares to be a consuming
member;
6. "Organization" means the International Tropical Timber Organization established in
accordance with article 3;
7. "Council" means the International Tropical Timber Council established in accordance
with article 6;
8. "Special vote" means a vote requiring at least tow thirds of the votes cast by
producing members present and voting and at least 60 percent of the votes cast by
consuming members present and voting, counted separately, on condition that these
cotes are cast by at least half of the producing members present and voting and at least
half of the consuming members present and voting;
9. "Simple distribution majority vote" means a vote requiring more than half of the votes
cast by producing members present and voting and more than half of the votes cast by
consuming members present and voting, counted separately;
10. "Financial year" means the period from 1 January to 21 December inclusive;
11. "Freely usable currencies" means the Deutsche mark, the French franc, the
Japanese yen, the pound sterling, the United States dollar and any other currency
which has been designated from time to time by a competent international monetary
organization as being in fact widely used to make payments for international
transactions and widely traded in the principal exchange markets.
CHAPTER III. ORGANIZATION AND ADMINISTRATION
Article 3
Headquarters and structure of the International
Tropical Timber Organization
1. The International Tropical Timber Organization established by the International
Tropical Timber Agreement, 1983 shall continue in being for the purposes of
administering the provisions and supervising the operation of this Agreement.
2. The Organization shall function through the Council established under article 6, the
committees and other subsidiary bodies referred to in article 26 and the Executive
Director and staff.
3. The headquarters of the Organization shall be in Yokohama, unless the Council, by
special vote, decides otherwise.
4. The headquarters of the Organization shall at all times by located in the territory of a
member.
Article 4
Membership in the Organization
There shall be two categories of membership in the Organization, namely:
(a) Producing; and
(b) Consuming.
Article 5
Membership by intergovernmental organizations
1. Any reference in this Agreement to "Governments" shall be construed as including
the European Community and any other intergovernmental organization having the
responsibilities in respect of the negotiation, conclusion and application of international
agreements, in particular commodity agreements. Accordingly, any reference in this
Agreement to signature, ratification, acceptance or approval, or to notification of
provisional application, or to accession shall, in the case of such intergovernmental
organizations, be construed as including a reference to signature, ratification,
acceptance or approval, or to notification of provisional application, or to accession, by
such intergovernmental organizations.
2. In the case of voting on matters within the competence, such intergovernmental
organizations shall vote with a number of votes equal to the total number of votes
attributable to their member States in accordance with article 10. In such cases, the
member States of such intergovernmental organizations shall not be entitled to exercise
their individual voting rights.
Article 6
Composition of the International Tropical Timber Council
1. The highest authority of the Organization shall be the International Tropical Timber
Council, which shall consist of all the members of the Organization.
2. Each member shall be represented in the Council by one representative and may
designate alternates and advisers to attend sessions of the Council.
3. An alternate representative shall be empowered to act and vote on behalf of the
representative during the latter's absence or in special circumstances.
Article 7
Powers and functions of the Council
1. The Council shall exercise all sch powers and perform or arrange for the
performance of all such functions as are necessary to carry out the provisions of this
Agreement.
2. The Council shall, by special vote, adopt such rules and regulations as are
necessary to carry out the provisions of this Agreement and as are consistent therewith,
including its own rules of procedure and the financial rules and staff regulations of the
Organization. Such financial rules shall, inter alia, govern the receipt and expenditure
of funds under the Administrative Account, the Special Account and the Bali
Partnership Funs. The Council may, in its rules of procedure, provide for a procedure
whereby it may, without meeting, decide specific questions.
3. The Council shall keep such records as are required for the performance of its
functions under this Agreement.
Article 8
Chairman and Vice-Chairman of the Council
1. The Council shall elect for each calendar year a Chairman and Vice-Chairman,
whose salaries shall not be paid by the Organization.
2. The Chairman and the Vice-Chairman shall be elected, one from among the
representatives of producing members and the other from among the representatives of
consuming members. These offices shall alternate each year between the two
categories of members, provided, however, that this shall not prohibit the re-election of
with or both, under exceptional circumstance, by special vote of the Council.
3. In the temporary absence of the Chairman, the Vice-President shall act in his place.
In the temporary absence of both the Chairman and the Vice-President, or in the
absence of one or both of them for the rest of the term for which they were elected\, the
Council may elect new officers from among the representatives of the producing
members and/or from among the representatives of the consuming members, as the
case may be, on a temporary basis or for the rest of the term for which the predecessor
or predecessors were elected.
Article 9
Session of the Council
1. As a general rule, the Council shall hold at least one regular session a year.
2. The Council shall meet in special session whenever it so decides or at the request
of:
(a) The Executive Director, in agreement with the Chairman of the Council; or
(b) A majority of producing members or a majority of consuming members; or
(c) Members holding at least 500 votes.
3. Sessions of the Council shall be held at the headquarters of the Organization unless
the Council, by special vote, decides otherwise. If on the invitation of any member the
Council meets elsewhere than at the headquarters of the Organization, that member
shall pay the additional cost of holding the meeting away from headquarters.
4. Notice of any sessions and the agenda for such sessions shall be communicated to
members by the Executive Director at least six weeks in advance, except in cases of
emergency, when notice shall be communicated at least seven days in advance.
Article 10
Distribution of votes
1. The producing members shall together hold 1,000 votes and the consuming
memebrs shall together hold 1,000 votes.
2. The votes of the producing members shall be distributed as follows:
(a) Four hundred votes shall be distributed equaly among the three producing regions
of Africa, Asia-Pacific and Latin America. The votes thus allocated to each of these
regions hall then be distributed equally amonf the producing members of that region;
(b) Three hundred votes shall be distributed among the producing members in
accordance with tiehr respective shares of the total tropical forest resources of all
producing members; and
(c) Three hundred votes shall be distributed among the producing members in
proportion to the average of the values of their respective net exports of tropical timber
during the most recent three year period for which definitie figures are available.
3. Notwithstanding the provisions of paragraph 2 of this article, the total votes allocated
to the producing members from the African region, calculated in accordance with
paragraph 2 of this article, shall be distributed equally among all producing members
from the African region. If there are any remaining votes, each of these votes shall be
allocated to a producing member from the African region: the first to the producing
member which is allocated the highest number of votes calculated in accordance with
paragraph 2 of this article, the second to the producing member which is allocate the
second highest number of votes, and so on until all the remaining votes have been
distributed.
4. For purposes of the calculation of the distribution of votes under paragraph 2 (b) of
this article, "tropical forest resources" means productive closed broadlevel forests as
defined by the Food and Agricultural Organization (FAO).
5. The votes of the consuming members shall be distributed as follows: each
consuming member shall have 10 initial votes: the remaining votes shall be distributed
among the consuming members in proportion to the average volume of their respective
net imports of tropical timber during the three-year period commencing four calendar
years prior to the distribution of votes.
6. The Council shall distribute the votes for each financial year at the beginning of its
first session of that year in accordance with the provisions of this article. Such
distribution shall remain in effect for the rest of that year, except as provided for in
paragraph 7 of this article.
7. Whenever the membership of the Organization changes or when any member has its
voting rights suspended or restored under any provision of this Agreement, the Council
shall redistribute the votes within the affected category or categories of members in
accordance with the provisions of this article. The Council shall, in that event, decide
when such redistribution shall become effective.
8. There shall be no fractional votes.
Article 11
Voting procedure of the Council
1. Each member shall be entitled to cast the number of votes it holds and no member
shall be entitled to divide its votes. A member may, however, cast differently from such
votes any votes which it is authorized to cast under paragraph 2 of this article.
2. By written notification to the Chairman of the Council, any producing member may
authorize, under its own responsibility, and other producing member, and any
consuming member may authorize, under its own responsibility, any other consuming
member, to represent its interests and to cast its votes at any meeting of the Council.
3. When abstaining, a member shall be deemed not to have cat its votes.
Article 12
Decisions and recommendations of the Council
1. The Council shall endeavor to take all decisions and to make all recommendations
by consensus. If consensus cannot be reached, the Council shall take all decisions and
make all recommendations by a simple distributed majority vote, unless this Agreement
provides a special vote.
. Where a member avails itself of the provisions of article 11, paragraph 2, and its votes
are cast at a meeting of the Council, such member shall, for the purposes of paragraph
1 of this article, be considered as present and voting.
Article 13
Quorum for the Council
1. The quorum for any meeting of the Council shall be the presences of a majority of
members of each category referred to in article 4, provided that such members hold at
least two thirds of the total votes in their respective categories.
2. If there is no quorum in accordance with paragraph 1 of this article on the day fixed
for the meeting and on the following day, the quorum on the subsequent days of the
session shall be the presence of a majority of members of each category referred to in
article 4, provided that such member hold a majority of the total votes in their respective
categories.
3. Representation in accordance with article 11, paragraph 2, shall be considered as
presence.
Article 14
Cooperation and coordination with other organizations
1. The Council shall make arrangements as appropriate for consultations and
cooperation with the United Nations and its organs, including the United Nations
Conference on Trade and Development (UNCTAD) and the Commission on
Sustainable Development (CSD), intergovernmental organizations, including the
General Agreement of Tariffs and Trade (GATT) and the Convention on International
Trade in Endangered Species of Wild Fauna and Flora (CITES), and non-governmental
organizations.
2. The Organization shall, to the maximum extent possible, utilize the facilities, services
and expertise of existing intergovernmental, governmental or non-governmental
organizations, in order to avoid duplication of efforts in achieving the objectives of this
of this Agreement and to enhance the complementary and the efficiency of their
activities.
Article 15
Admission of observers
1. The Council shall, by special vote, appoint the Executive Director:
2. The terms and conditions of appointment of the Executive Director shall be
determined by the Council.
3. The Executive Director shall be the chief administrative officer of the Organization
and shall be responsible to the Council for the administration and operation of this
Agreement in accordance with decisions of the Council.
4. The Executive Director shall appoint the staff in accordance with regulations to be
established by the Council. The Council shall, by special vote, decide the number of
executive and professional staff the Executive Director may appoint. Any changes in the
number of executive and professional staff shall be decided by the Council by special
vote. The staff shall be responsible to the Executive Director.
5. Neither the Executive Director nor any member of the staff shall have any financial
interest in the timber industry or trade, or associated commercial activities.
6. In the performance of their duties, the Executive Director and staff shall not seek or
receive instructions from any member or from any authority external to the
Organization. They shall refrain from any action which might reflect adversely on their
positions as international officials ultimately responsible to the Council. Each member
shall respect the exclusively international character of the responsibilities of the
Executive Director and staff and shall not seek to influence them in the discharge of
their responsibilities.
CHAPTER V. PRIVILEGES AND IMMUNITIES
Article 17
Privileges and immunities
1. The Organization shall have legal personality. It shall in particular have the capacity
to contract, to acquire and dispose of movable and immovable property, and to institute
legal proceedings.
2. The status, privileges and immunities of the Organization, of its Executive Director,
its staff and experts, and of representatives of members while in the territory of Japan
shall continue to be governed by the Headquarters Agreement between the
Government of Japan and the International Tropical Timber Organization signed at
Tokyo on 27 February 1988, with such amendments as may be necessary for the
proper functioning of this Agreement.
3. The Organization may conclude, with one or more countries, agreements to be
approved by the Council relating to such capacity, privileges and immunities as may be
necessary for the proper functioning of this Agreement.
4. If the headquarters of the Organization is moved to another country, the member in
questions shall, as soon as possible, conclude with the Organization a headquarters
agreement to be approved by the Council. Pending the conclusion of such an
agreement, the Organization shall request the new host Government to grant, within the
limits of its national legislation, exemption from taxation on remuneration paid by the
Organization to its employees, and on the assets, income and other property of the
Organization.
5. The Headquarters Agreement shall be independent of this Agreement. It shall,
however, terminate:
(a) By agreement between the host Government and the Organization;
(b) In the event of the headquarters of the Organization being moved from the country
of the host Government; or
(c) In the event of the Organization ceasing to exist.
CHAPTER VI. FINANCE
Article 18
Financial accounts
1. There shall be established:
(a) The Administrative Account;
(b) The Special Account;
(c) The Bali Partnership Fund; and
(d) Such other accounts as the Council shall deem appropriate and necessary.
2. The Executive Director shall be responsible for the administration of these accounts
and the Council shall make provisions thereof in the financial rules of the Organization.
ARTICLE 19
Administration Account
1. The expenses necessary for the administration of this Agreement shall be brought
into the Administrative Account and shall be mt by annual contributions paid by
members in accordance with their respective constitutional or institutional procedures
and assessed in accordance with paragraphs 3, 4 and 5 of this article.
2. The expenses of delegations to the Council, the committees and any other subsidiary
bodies of the Council referred to in article 26 shall be met by the members concerned.
In such cases where a member requests special services from the Organization, the
Council shall require that member to pay the costs of such services.
3. Before the end of each financial year, the Council shall approve the administrative
budget of the Organization for the following financial year and shall assess the
contribution of each member to pay the costs of such services.
4. The contribution of each member to the administrative budget for each financial year
shall be in the proportion which the number of its votes at the time the administrative
budget for that financial year is approved bears to the total votes of all the members. In
assessing contributions, the votes of the total votes of all the members. In assessing
contributions, the votes of each member shall be calculated without regard to the
suspension of any member's voting rights or any redistribution of votes resulting
therefrom.
5. The initial contribution of any member joining the Organization after the entry into
force of this Agreement shall be assessed by the Council on the basis of the number of
votes to be held by that member and the period remaining in the current financial year,
but the assessment made upon other members from the current financial year shall not
thereby be altered.
6. Contributions to administrative budgets shall become due on the first day of each
year. Contributions of members in respect of the financial year in which they join the
Organization shall be due on the date on which they become members.
7. If a member has not paid its full contribution to the administrative budget within four
months after such contribution becomes due in accordance with paragraph 6 of this
article, the Executive Director shall request that member to make payment as quickly as
possible. If that member has still not paid its contribution within two months after such
request, that member shall be requested to state the reasons for its inability to make
payment. If at the expiry of seven months from the due date of contribution, that
member shall still has not paid its contribution, its voting rights shall be suspended until
such time as it has paid in full its contribution, unless the Council, by full contributions
becomes due is accordance with paragraph 6 of this article, the member's contribution
shall receive a discount as may be established by the Council in the financial rules of
the Organization.
8. A member whose rights have been suspended under paragraph 7 of this article shall
remain liable to pay its contribution.
Article 20
Special Account
1. There shall be established two sub-accounts under the Special Account:
(a) The Pre-Project Sub-Account; and
(b) The Project Sub-Account.
2. The possible sources of finance for the Special Account may be:
(a) The Common Fund for Commodities;
(b) Regional and international financial institutions; and
(c) Voluntary contributions.
3. The resources of the Special Account shall be used only for approved pre-projects or
projects.
4. All expenditures under the Pre-Project Sub-Account shall be reimbursed from the
Project Sub-Account if projects are subsequently approved and funded. It within six
months of the entry into force of this Agreement the Council does not receive any funds
for the Pre-Project Sub-Account, it shall review the situation and take appropriate
action.
5. All receipts pertaining to specific identifiable pre-projects or projects under the
Special Account shall be brought into that Account. All expenditures incurred on such
pre-projects, including remuneration and travel expenses of consultants and exports,
shall be charged to the same Account.
6. The Council shall, by special vote, establish terms and conditions on which it would,
when and where appropriate , sponsor projects for loan financing, where a member or
members have voluntarily assumed full obligations and responsibilities for such loans.
The Organization shall have no obligation for such loans.
7. The Council may nominate and sponsor any entity with the consent of that entity,
including a member of members, to receive loans for the financing of approved projects
and to undertake all the obligations involved, except that the Organization shall reserve
to itself the right to monitor the use of resources and to follow up on the implementation
of projects so financed. However, the Organization shall not be responsible for
guarantees voluntarily provided by individual members or other entities.
8. No member shall be responsible by reason of its membership in the Organization for
any liability arising from borrowing or lending by any other member or entity in
connection with projects.
9. In the event that voluntary unearmarked funds are offered to the Organization, the
Council may accept such funds. Such funds may be utilized for approved pre-projects
and projects.
10. The Executive Director shall endeavor to seek, on such terms and conditions as the
Council may decide, adequate and assured finance for pre-projects and projects
approved by the Council.
11. Contributions for specified approved projects shall be used only for the projects for
which they were originally intended, unless otherwise decided by the Council in
agreement with the contributor. After the completion of a project, the Organization shall
return to each contributor for specific projects the balance of any fund remaining
pro
rata to each contributor's share in the total of the contributions originally made available
for financing that project, unless otherwise agreed to by the contributor.
Article 21
The Bali Partnership Fund
1. A Fund for sustainable management of tropical timber producing forests is hereby
established to assist producing members to make the investments necessary to achieve
the objective of article 1 (d) of this Agreement.
2. The Fund shall be constituted by:
(a) Contributions from donor members;
(b) Fifty percent of income earned as a result of activities related to the Special
Account;
(c) Resources from other private and public sources which the Organization may
accept consistent with its financial rules.
3. Resources of the Fund shall be allocated by the Council only for pre-projects and
projects for the purpose set out in paragraph 1 of this article and approved in
accordance with article 25.
4. In allocating resources of the Fund, the Council shall take into account:
(a) The special needs of members whose forestry sectors' contribution to their
economies is adversely affected by the implementation of the strategy for achieving the
exports of tropical timber and timber products from sustainable managed sources by the
year 2000;
(b) The needs of members with significant forest areas who establish conservation
programmes in timber producing forests.
5. The Council shall examine annually the adequacy of the resources available to the
Fund and endeavor to obtain additional resources needed by producing members to
achieve the purpose of the Fund. The ability of members to implement the strategy
referred to in paragraph 4 (a) of this article will be influenced by the availability of
resources.
6. The Council shall establish policies and financial rules for the operation of the Fund,
including rules covering the settlement of accounts on termination or expiry of this
Agreement.
Article 22
Forms of payment
1. Contributions to the Administrative Account shall be payable in freely useable
currencies and shall be exempt from foreign-exchange restrictions.
2. Financial contributions to the Special Account and the Bali Partnership Fund shall be
payable in freely useable currencies and shall be exempt from foreign-exchange
restrictions.
3. The Council may also decide to accept other forms of contributions to the Special
Account or the Bali Partnership Fund, including scientific and technical equipment or
personnel, to meet the requirements of approved projects.
Article 13
Audit and publication of accounts
1. The Council shall appoint independent auditors for the purpose of auditing the
accounts of the Organization.
2. Independently audited statements of the Administrative Account, of the Special
Account and of the Bali Partnership Fund shall be made available to members as soon
as possible after the close of each financial year, but not later than six months after that
date, and be considered for approval by the Council at its next season as appropriate.
A summary of the audited accounts AND BALANCE SHEET SHALL THEREAFTER BE
PUBLISHED.
CHAPTER VII. OPERATIONAL ACTIVITIES
Article 24
Policy work of the Organization
In order to achieve the objectives set out in article 1, the Organization shall undertake
policy work and project activities in the areas of Economic Information and Market
Intelligence, Reforestation and Forest Management and Forest Industry, in a balanced
manner, to the extent possible integrating policy work and project activities.
Article 25
Project activities of the Organization
1. Bearing in mind the needs of developing countries, members may submit pre-project
and project proposals to the Council in the fields of research and development, market
intelligence, further and increased wood processing in producing member countries,
and reforestation and forest management. Pre-projects and projects should contribute
to the achievement of one or more of the objectives of this Agreement.
2. The Council, in approving pre-projects, shall take into account:
(a) Their relevance to the objectives of this Agreement;
(b) Their environmental and social effects;
(c) The desirability of maintaining an appropriate geographical producing regions;
(d) The interest and characteristics of each of the developing producing regions;
(e) The desirability of equitable distribution of resources among the fields referred to in
paragraph 1 of this article;
(f) Their cost-effectiveness; and
(g) The need to avoid duplication of efforts.
3. The Council shall establish a schedule and procedure for submitting, appraising, and
prioritizing pre-projects and projects seeking funding from the Organization, as well as
for their implementation, monitoring and evaluation. The Council shall decide on the
approval of pre-projects and projects for financing or sponsorship in accordance with
article 20 or article 2.
4. The Executive Director may suspend disbursement of the Organization's funds to a
pre-project of project if they are being used contrary to the project document or in cases
of fraud, waste, neglect or mismanagement. The Executive Director will provide to the
Council at its next session a report for its consideration. The Council shall take
appropriate action.
5. The Council may, by special vote, terminate its sponsorship of any pre-projects or
project.
Article 26
Establishment of Committees
1. The following are hereby established as Committees of the Organization.
(a) Committee on Economic Information and Market Intelligence;
(b) Committee on Reforestation and Forest Management;
(c) Committee on Forest Industry; and
(d) Committee on Finance and Administration.
2. The Council may, by special vote, establish such other committees and subsidiary
bodies as it deems appropriate and necessary.
3. Participation in each of the committees shall be open to all members. The rules of
procedure of the committees and subsidiary bodies shall be convened by the Council.
4. The committees and subsidiary bodies referred to in paragraph 1 and 2 of this article
shall be responsible to, and work under the general direction of, the Council. Meetings
of the committees and subsidiary bodies shall be convened by the Council.
Article 27
Functions of the Committees
1. The Committee on Economic Information and Market Intelligence shall/
(a) Keep under review the availability and quality of statistics and other information
required by the Organization;
(b) Analyze the statistical data and specific indicators as decided by the Council for the
monitoring of international timber trade;
(c) Keep under continuous review the international timber market, its current situation
and short-term prospects on the basis of the data mentioned in subparagraph (b) above
and other relevant information, including information related to undocumented trade;
(d) Make recommendations to the Council on the need for, and nature of, appropriate
studies on tropical timber, including prices, market elasticity, market substitutability,
marketing of new products, and long-term prospects of the international tropical
timber-market, and monitor and review any studies commissioned by the Council;
(e) Carry out any other tasks related to the economic, technical and statistical aspects
of timber assigned to it by the Council;
(f) Assist in the provision of technical cooperation to developing member countries to
improve their relevant statistical services.
2. The Committee on Reforestation and Forest Management shall:
(a) Promote cooperation between members as partners in development of forest
activities in member countries, inter alis; in the following areas;
(i) Reforestation;
(ii) Rehabilitation;
(iii) Forest management;
(b) Encourage the increase of technical assistance and transfer of technology in the
fields of reforestation and forest management to developing countries;
(c) Follow up on-going activities in this field, and identify and consider problems and
possible solutions to them in cooperation with the competent organizations;
(d) Review regularly the future needs of international trade in industrial tropical timber
and, on this basis, identify and consider appropriate possible schemes and measures in
the field of reforestation, rehabilitation and forest management;
(e) Facilitate the transfer of knowledge in the field of reforestation and forest
management with the assistance of competent organizations;
(f) Coordinate and harmonize these activities for cooperation in the field of
reforestation and forest management with relevant activities pursued elsewhere, such
as those under the auspices of the Food and Agricultural Organization (FAO), the
United Nations Environmental Programme (UNEP), the World Bank, the United Nations
Development Programme (UNEP), regional development banks and other competent
organizations.
3. The Committee on Forest Industry shall;
(a) Promote cooperation between member countries as partners in the development of
processing activities in producing member countries, inter alia, in the following area:
(i) Product development through transfer of technology;
(ii) Human resources development and training;
(iii) Standardization of nomenclature of tropical timber;
(iv) Harmonization of specifications of processed products;
(v) Encouragement of investment and joint ventures; and
(vi) Marketing including the promotion of lesser known and lesser used species;
(b) Promote the exchange of information in order to facilitate structural changes
involved in increased and further processing in the interests of all member countries, in
particular developing member countries;
(c) Follow up on-going activities in this field, and identify and consider problems and
possible solutions to them in cooperation with the competent organizations;
(d) Encourage the increase of technical cooperation for the processing of tropical
timber for the benefit of producing member countries.
4. In order to promote the policy and project work of the Organization in a balanced
manner, the Committee on Economic Information and Market Intelligence, the
Committee of Reforestation and Forest Management and the Committee on Forest
Industry shall each:
(a) Be responsible for ensuring the effective appraisal, monitoring and evaluation of
pre-projects and projects;
(b) Make recommendations to the Council relating to pre-projects and projects;
(c) Follow up the implementation of pre-projects and projects and provide for the
collection and dissemination of their results as widely as possible for the benefit of all
members;
(d) Develop and advance policy ideas to the Council;
(e) Review regularly the results of project and policy work and make recommendations
to the Council on the future of the Organization's programme;
(f) Review regularly the strategies, criteria and priority areas for programme
development and project work contained in the Organization's Action Plan and
recommend revisions in member Council;
(g) Take account of the need to strengthen capacity-building and human resource
development in member countries;
(h) Carry out any other task related to the objectives of this Agreement assigned to
them by the Council;
5. Research and development shall be a common function of the Committees referred
to in paragraph , 2, and 3 of this article.
6. The Committee on Finance and Administration shall;
(a) Examine and make recommendations to the Council regarding the approval of the
Organization's administrative budget proposals and the management operations of the
Organization;
(b) Review the assets of the Organization to ensure prudent asset management and
that the Organization has sufficient reserves to carry out its work;
(c) Examine and make recommendations to the Council on the budgetary implications
of the Organization's annual work programme, and the actions that might be taken to
secure the resources needed to implement it;
(d) Recommend to the Council the choice of independent auditors and review the
independent audited statements;
(e) Recommend to the Council any modifications it may judge necessary to the Rules
of Procedure or the Financial Rules;
(f) Review the Organization's revenues and the extent to which they constrain the work
of the Secretariat.
CHAPTER VIII. RELATIONSHIP WITH THE COMMON FUND FOR COMMODITIES
Article 28
Relationship with the Common Fund for Commodities
The Organization shall take full advantage of the facilities of the Common Fund for
Commodities.
CHAPTER IX. STATISTICS, STUDIES AND INFORMATION
Article 29
Statistics, studies and information
1. The Council shall establish close relationships with relevant intergovernmental,
governmental and non-governmental organizations, in order to help ensure the
availability of recent reliable data and information on the trade in tropical timber, as well
as relevant information on non-tropical timber and on the management of timber
producing forests. As deemed necessary for the operations, shall compile, collate and,
where relevant, publish statistical information on production, supply, trade, stocks,
consumption and market prices of timber, the extent of timber resources and the
management of timber producing forests.
2. The Council shall annually review and assess:
(a) The international timber situation;
(b) Other factors, issues and developments considered relevant to achieve the
objectives of this Agreement.
3. The review shall be carried out in the light of:
(a) Information supplied by members in relation to national production, trade, supply,
stocks, consumption and prices of timber;
(b) Other statistical data and specific indicators provided by members as requested by
the Council;
(c) Information supplied by members on their progress towards the sustainable
management of their timber producing forests;
(d) Such other relevant information as may be available to the Council either directly or
through the organizations in the United Nations system and intergovernmental,
governmental or non-governmental organization.
4. The Council shall promote the exchange of views among member countries
regarding:
(a) The status of sustainable management of timber producing forests and related
matters in member countries;
(b) Resource flows and requirements in relation to objectives, criteria and guidelines
set by the Organization.
5. Upon request, the Council shall endeavor to enhance the technical capacity of
member countries, in particular developing member countries, to obtain the data
necessary for adequate information-sharing, including the provision of resources for
training and facilities to members.
6. The results of the review shall be included in the reports of the Council's
deliberations.
CHAPTER X. MISCELLANEOUS
Article 31
Complaints and disputes
Any complaint that a member has failed to fulfil its obligations under this Agreement
and any dispute concerning the interpretation or application of this Agreement shall be
referred to the Council for decision. Decisions of the Council on these matters shall be
final and binding.
Article 31
General obligations of members
1. Members shall, for the duration of this Agreement, use their best endeavors and
cooperate to promote the attainment of its objectives and to avoid any action contrary
thereto.
2. Members undertake o accept and carry out the decisions of the Council under the
provisions of this Agreement and shall refrain from implementing measures which would
have the effect of limiting or running counter to them.
Article 33
Relief from obligations
1. Where it is necessary on account of exceptional circumstances or emergency or
force majeure not expressly provided for in this Agreement, the Council may, by special
vote, relieve a member of an obligation under this Agreement if it is satisfied by an
explanation from that member regarding the reasons why the obligations cannot be
met.
2. The Council, in granting relief to a member under paragraph 1 of this article, shall
state explicitly the terms and conditions on which, and the period for which, the member
is relieved of such obligation, and the reasons form which the relief is granted.
Article 34
Differential and remedial measures and special measures
1. Developing importing members whose interest are adversely affected by measures
taken under this Agreement may apply to the Council for appropriate differential and
remedial measures. The Council shall consider taking appropriate measures in
accordance with section III paragraphs 3 and 4, of resolution 93 (IV) of the United
Nations Conference on Trade and Development.
2. Members in the category of least developed countries as defined by the United
Nations may apply to the Council for special measures in accordance with section III,
paragraph 4, of resolution 93 (IV) and with paragraphs 56 and 57 of the Paris
Declaration and Programme of Action for the Least Developed Countries for the 1990s.
Article 35
Review
The Council shall review the scope of this Agreement four years after its entry into
force.
Article 36
Non-discrimination
Nothing in this Agreement authorizes the uses of measures to restrict or ban
international trade in, and in particular as they concern imports of an utilization of,
timber and timber products.
CHAPTER XI. FINAL PROVISIONS
Article 37
Depository
The Secretary-General of the United Nations is hereby designated as the depositary of
this Agreement.
Article 38
Signature, ratification, acceptance and approval
1. This Agreement shall be open for signature, at United Nations Headquarters from 1
April 1994 until one month after the date of its entry into force, by Governments invited
to the United Nations Conference for the Negotiation of a Successor Agreement of the
International Tropical Timber Agreement, 1983.
2. Any Government referred to in paragraph 1 of this article may:
(a) At the time of signing this Agreement, declare that by such signature it expresses
its consent to be bound by this Agreement (definitive signature); or
(b) After signing this Agreement, ratify, accept or approve it by the deposit of an
instrument to that effect with the depositary.
Article 39
Accession
1. This Agreement shall be open for the accession by the Governments of all States
upon conditions established by the Council, which shall include a time-limit for the
deposit of instruments of accession. The Council may, however, grant extensions of
time to Governments which are unable to accede by the time-limit set in the conditions
of accession.
2. Accession shall be effected by the deposit of an instrument of accession with the
depositary.
Article 40
Notification of provisional application
A signatory Government which intends to ratify, accept or approve this Agreement, or a
Government for which the Council has established conditions for accession but which
has not yet been able to deposit its instrument, may at any time, notify the depositary
that it will apply this Agreement provionally either when it enters into force in
accordance with article 41, or, if it is already in force, at a specified date.
Article 41
Entry into force
1. This Agreement shall enter into force definitely on 1 February 1995 or on any date
thereafter, if 2 Governments of producing countries holding at least 55 percent of the
total votes as set out in annex A to this Agreement, and 16 Governments of consuming
countries holding at least 70 percent of the total votes as set out in annex B to this
Agreement have signed this Agreement definitively or have ratified, accepted or
approved it or aceded thereto pursuant to article 38, paragraph 2, or article 39.
2. If this Agreement has not entered into force definitively on 1 February 1995, it shall
enter into force provisionally on that date of on any date within six months thereafter, if,
10 Governments of producing countries holding at least 50 percent of the total votes as
set out in annex A to this Agreement, and 14 Governments of consuming countries
holding at least 65 percent of the total votes as set out in annex B to this Agreement,
have signed this Agreement definitively or have ratified, accepted or approved it
pursuant to article 38, paragraph 2, or have notified the depository under article 40 that
they will apply this Agreement provisionally.
3. If the requirements for entry into force under paragraph 1 or paragraph 2 of this
article have not been met on 1 September 1995, the Secretary-General of the United
Nations shall invite those Governments which have signed this Agreement definitively
or have ratified, accepted or approved it pursuant to article 38, paragraph 2, or have
notified the depository that they will apply this Agreement provisionally, to meet at the
earliest time practicable to decide whether to put this Agreement into force provisionally
among themselves may meet from time to time to review the situation and decide
whether this Agreement shall enter into force definitively among themselves.
4. For any Government which has not notified the depositary under article 40 that it will
apply this Agreement provisionally and which deposits its instrument of ratification,
acceptance, approval or accession after the entry into force of this Agreement, this
Agreement shall enter into force on the dat of such deposit.
5. The Executive Director of the Organization shall convene the COUNCIL as soon as
possible after the entry into force of this Agreement.
Article 42
Amendments
1. The Council may, by special vote, recommend an amendment of this Agreement to
members.
2. The Council shall fix a date by which members shall notify the depositary of their
acceptance of the amendment.
3. An amendment shall enter into force 90 days after the depositary has received
notifications of acceptance from members constituting at least two thirds of the
producing members and accounting for at least 75 percent of the votes of the producing
members, and from members constituting at least two thirds of the consuming members
and accounting for at least 75 percent of the votes of the consuming members.
4. After the depositary informs the Council that the requirements for entry into force of
the amendment have been met, and notwithoustanding the provisions of paragraph 2 of
this article relating to the date fixed by the COUNCIL, a member may still notify the
depositary of its acceptance of the amendment, provided that such notification is made
before the entry into force of the amendment.
5. Any member which has not notified its acceptance of an amendment by the date on
which such amendments enters into force shall cease to be a party to this Agreement
as from that date, unless such member has satisfied the Council that its acceptance
could not be obtained in time owing to difficulties in completing its constitutional or
institutional procedures, and the Council decides to extend for that member the period
for acceptance of the amendment. Such member shall not be bound by the amendment
before it has notified its acceptance thereof.
6. If the requirements for the entry into force of the amendment have not been met by
the date fixed by the Council in accordance with paragraph 2 of this article, the
amendment shall be considered withdrawn.
Article 44
Exclusion
If the Council decides that any member is in breach of its obligations under this
Agreement and decides further that such breach significantly impairs the operation of
this Agreement, it may, by special vote, exlucde that member from this Agreement. The
Council shall immediately so notify the depositary. Six months after the date of the
Council's decision, that member shall cease to be a party to this Agreement.
Article 45
Settlement of accounts with withdrawing or excluding members
or members unable to accept an amendment
1. The Council shall determine any settlement of accounts with a member which cease
to be a party to this Agreement owing to:
(a) Non-acceptance of an amendment to this Agreement under article 42;
(b) Withdrawal from this Agreement under article 43; or
(c) Exclusion from this Agreement under article 44.
2. The Council shall retain any contribution paid to the Administrative Account, to the
Special Account or to the Bali Partnership Dfund by a member which ceases to be a
party to this Agreement.
3. A member which has ceased to be a party to this Agreement shall not be entitled to
any share of the proceeds of liquidation or the other assets of the Organization. Nor
shall such member be liable for payment of any part of the deficit, it any, of the
Organization upon termination of this Agreement.
Article 46
Duration, extension and termination
1. This Agreement shall remain in force for a period of four years after its entry into
force unless the Council, by special vote, decide to extend, renegotiate or terminate it in
accordance with the provision of this article.
2. The Council may, by special vote, decide to extend this Agreement for two periods of
three years each.
3. If, before the expiry of the four-year period referred to in paragraph 1 of this article,
or before the expiry of an extension period referred to in paragraph 2 of this article, as
the case may be, a new agreement to replace this Agreement has been negotiated by
this not yet entered into force either definitively or Provisionally, the Council may, by
special vote, extend this Agreement until the provisional or definitive entry into force of
the new agreement.
4. If a new agreement is negotiated and enters into force during any period of extension
of this Agreement under paragraph 2 or paragraph 3 of this article, this Agreement, as
extended, shall terminate upon the entry into force of the new agreement.
5. The Council may at any time, by special vote, decide to terminate this Agreement
with effect from such date as it may determine.
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