RECIPROCAL TRADE Agreement, protocol of signature, and related notes signed at Washing- Proclaimed by the President of the United States May 16, 1936 Declared inoperative as of January 1, 1948, by agreement of October Terminated December 13, 1962 * 53 Stat. 2236; Executive Agreement Series 146 AGREEMENT The President of the United States of America and the Government of the French Republic, being equally desirous of contributing to the establishment of a more liberal economic policy between the nations by the relaxation of restrictions on trade, taking into account the fact that there is no restriction either in the United States of America or in France upon the settlement of commercial obligations nor upon the circulation of capital and that there is stability in fact in the relation between their respective currencies, have decided to conclude an agreement for the betterment of their commercial relations and for that purpose have appointed their Plenipotentiaries as follows: The President of the United States of America: Cordell Hull, Secretary of State of the United States of America, and The President of the French Republic: André Lefebvre de la Boulaye, Ambassador Extraordinary and Plenipotentiary of the French Republic to the United States of America who, after communicating to each other their respective full powers, found to be in good and due form, have agreed upon the following Articles: 2 For schedules annexed to agreement, see 53 Stat. 2258 or p. 26 of EAS 146. 'Pursuant to notice of termination given by the United States June 13, 1962. ARTICLE I5 1. Natural or manufactured products originating in and coming from. the United States of America or any of its territories or possessions, with the exception of those products which are enumerated and described in Section A of Schedule I annexed to this Agreement, shall be subject, on their importation into the territory of the French Republic, to the lowest ordinary customs duties applicable to like products imported from any other foreign country. The products enumerated and described in Section B of Schedule I shall be subject to the lowest ordinary customs duties applicable to like products imported from any other foreign country, within the limitation of the annual quotas specified in the said Section. 2. The benefit of the intermediate duties in force in the territory of the French Republic on the day of the application of this Agreement shall be maintained for the products originating in and coming from the United States of America, enumerated and described in Section A of Schedule I: provided, however, that the minimum rate of duty shall automatically apply to any of the said products if the minimum rate applicable to the like product of any foreign origin shall at any time be equal to or exceed the intermediate rate in force on the day of the application of this Agreement. The foregoing provision shall not be an obstacle to the modification of the tariff nomenclature. The provisions of this paragraph shall be applied to products originating in and coming from any of the territories or possessions of the United States of America. 3. With respect to all duties or taxes other than ordinary customs duties collected on importation, most-favored-nation treatment shall be accorded to all products of the United States of America or any of its territories or possessions imported into the territory of the French Republic. With respect to the method of levying all duties or charges as well as with respect to all rules and formalities in connection with importation or exportation, to duties or charges imposed on exportation, to transit, warehousing, the transshipment of goods, as well as for official charges applicable to these various operations, most-favored-nation treatment shall likewise be accorded. 4. Dating from the application of this Agreement, products originating in and coming from the United States of America, enumerated and described in Section A of Schedule II, annexed to this Agreement, shall benefit on their importation into the territory of the French Republic, subject to the provisions of the following paragraph, from the specified tariff rates provided for in this Agreement. 5. If, with a view to protecting the essential economic and financial interests of the country, it should be considered necessary to increase the ordi For a further agreement relating to art. I, see protocol of signature, p. 1008. 6 See footnote 1. nary customs duties provided for in paragraph 4 of this Article or those applicable in the territory of the French Republic on the day of the signature or application of this Agreement to any of the products enumerated and described in Section B of Schedule II and in Schedule III, annexed hereto, the French Government shall notify the Government of the United States of America in writing at least 15 days before putting into force any new duties. of its intention to increase the ordinary customs duties affecting any of the said products. No such increase shall however, be made effective prior to the expiration of the first full calendar quarter after the application of this Agreement. Thereafter, and as long as this Agreement shall remain in force, no such increase shall be made except on the first day of a full calendar quarter. If, before the expiration of 30 days from the date on which such increase becomes effective, a satisfactory agreement has not been reached with respect to such compensatory modifications of this Agreement as may be deemed appropriate, the said Agreement shall terminate automatically in its entirety on the 30th day after the end of such period. 6. With respect to products enumerated and described in Schedules II and III, annexed hereto, no new or increased duties, fees or charges of any kind (other than ordinary customs duties) shall be imposed by the French Government on or in connection with importation which would have the effect of diminishing appreciably the value of any concession granted in this Agreement, unless such measures are required to be imposed by French legislation in force on the day of the signature of this Agreement. ARTICLE II" 1. Natural or manufactured products originating in the territory of the French Republic or any of its territories or possessions shall not be subject, on their importation into the United States of America, to duties or charges other or higher than those applied to like products originating in any other foreign country. 2. It is understood that, so long as and insofar as the law of the United States of America may otherwise require, the provisions of paragraph 1 of this Article, insofar as they would otherwise relate to duties, taxes, or charges on coal, coke manufactured therefrom, or coal or coke briquettes, shall not apply to such products imported into the United States of America. 3. With respect to the method of levying all duties or charges, with respect to all rules or formalities in connection with importation or exportation, with respect to duties or charges imposed on exportation, with respect to transit, warehousing, and the transshipment of goods as well as the governmental charges applicable to these various operations, all products originating in or destined for the territory of the French Republic or any of its colonies or possessions shall enjoy unconditional most-favored-nation treatment. "For an understanding relating to art. II, see first U.S. note, p. 1012. 4. Natural or manufactured products originating in the territory of the French Republic or any of its colonies or possessions, enumerated and described in Schedule IV annexed to this Agreement, shall not be subject on their importation into the United States of America to ordinary customs duties in excess of those set forth and provided for in the said Schedule. The said products shall also be exempt from all other duties, taxes, fees, charges or exactions, imposed on or in connection with importation, in excess of those imposed on the day of the signature of this Agreement or required to be imposed thereafter under laws of the United States of America in force on the day of the signature of this Agreement. ARTICLE III The provisions of this Agreement shall not prevent the Government of either country from imposing at any time on the importation of any product a charge equivalent to an internal tax imposed in respect of a like domestic product or in respect of a commodity from which the imported product has been manufactured or produced in whole or in part. ARTICLE IV The Government of the French Republic shall take the necessary measures in order that, on and after the date of application of this Agreement, the increases in rates of the import tax instituted by Article 32 of the Law of March 31, 1932, on semimanufactured products or articles and on manufactured products or articles, shall be suppressed with regard to goods originating in and coming from the United States of America. ARTICLE V The Government of the United States of America and the Government of the French Republic agree, as long as this Agreement remains in force, not to impose any quantitative restriction on the importation of any product, not now subject to such restriction, enumerated and described in Schedule IV and Schedule II, respectively, annexed hereto. Nevertheless, quantitative restrictions may be applied by either Government to the importation of the aforesaid products if such restrictions are imposed in conjunction with governmental measures operating to regulate or control the production or prices of like domestic products. However, the Government which proposes to establish or change such import restrictions shall give at least 30 days' advance notice to the other Government. If an arrangement regarding the proposed measures is not agreed upon before the expiration of such period such other Government may, within 15 days thereafter, terminate this Agreement in its entirety on 30 days' prior notice. ARTICLE VI 8 Considering the fact that there does not exist in their reciprocal exchanges any restriction on the settlement of commercial obligations, and so long as this situation is maintained, each of the two Governments agrees upon the following provisions in the event that it should establish or maintain, in any form whatever, a quantitative restriction on or a regulation of the importation or sale of any product. 1. The French Government guarantees that, if measures of quantitative restriction or control of the importation or sale are or shall be established for any of the products of commercial interest to the United States of America, including those in Schedule III, annexed to the present Agreement, there shall be allotted to the United States of America, when these measures of quantitative restriction or control take the form of allocation among the various countries, a share of the total quantity or value of any such product permitted to be imported or sold during a specified period equivalent to the proportion of the total importation of such product from foreign countries which the United States of America supplied in a basic period prior to the imposition of any quantitative restriction on such product. Furthermore, as concerns quotas which may be established after the date of application of this Agreement, the French Government agrees, in case there shall be no allocation by countries, to subject the importation to the formality of licenses. In the issuance of such licenses no condition shall be imposed which would be prejudicial to the importation of products of the United States of America and such products shall be placed in all respects upon a footing of complete equality of treatment with those originating in every other foreign country. 2. The Government of the United States of America guarantees that if measures of quantitative restriction or control of the importation or sale of any of the products of commercial interest to the French Republic are or shall be established, there shall be allotted to the French Republic, when these measures of quantitative restriction or control take the form of allocation among the various countries, a share of the total quantity or value of any such product permitted to be imported or sold during a specified period equivalent to the proportion of the total importation of such product which the French Republic supplied in a basic period prior to the imposition of any quantitative restriction on such product. Furthermore, as concerns quotas which may be established after the date of application of this Agreement, the Government of the United States of America agrees, in case there shall be no allocation by countries, to subject the importation to the formality of licenses. In the issuance of such licenses no condition shall be imposed which would be prejudicial to the importation For declarations regarding art. VI, see protocol of signature, p. 1008. |