62 STAT.] MULTILATERAL-TARIFFS AND TRADE-MAR . 24, 1948 regarding the proposed union or area as will enable them to make such reports and recommendations to contracting parties as they may deem appropriate. (b) If, after having studied the plan and schedule provided for in an interim agreement referred to in paragraph 5 in consultation with the parties to that agreement and taking due account of the information made available in accordance with the provisions of sub-paragraph (a), the CONTRACTING PARTIES find that such agreement is not likely to result in the formation of a customs union or of a free-trade area within the period contemplated by the parties to the agreement or that such period is not a reason- able one, the CONTRACTING PARTIES shall make recommendations to the parties to the agreement. The parties shall not maintain or put into force, as the case may be, such agreement if they are not prepared to modify it in accordance with these recommenda- tions. (c) Any substantial change in the plan or schedule referred to in paragraph 5 (c) shall be communicated to the CONTRACTING PARTIES, which may request the contracting parties concerned to consult with them if the change seems likely to jeopardize or delay unduly the formation of the customs union or of the free- trade area. "8. For the purposes of this Agreement: (a) A customs union shall be understood to mean the substitution of a single customs territory for two or more customs territories, so that (i) duties and other restrictive regulations of commerce (ex- cept, where necessary, those permitted under Articles XI, XII, XIII, XIV, XV and XX) are eliminated with ppA32tA;-A, A0. 5 respect to substantially all the trade between the con- stituent territories of the union or at least with respect to substantially all the trade in products orginating in such territories, and, (ii) subject to the provisions of paragraph 9, substantially the same duties and other regulations of commerce are applied by each of the members of the union to the trade of territories not included in the union; (b) A free-trade area shall be understood to mean a group of two or more customs territories in which the duties and other re- strictive regulations of commerce (except, where necessary, those permitted under Articles XI, XII, XIII, XIV, XV and XX) are eliminated on substantially all the trade between the con- stituent territories in products originating in such territories. "9. The preferences referred to in paragraph 2 of Article I shall not p6 ^ tat Pt. 51 be affected by the formation of a customs union or of a free-trade area but may be eliminated or adjusted by means of negotiations with contracting parties affected. This procedure of negotiations with af- fected contracting parties shall, in particular, apply to the elimina- 2015
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