AGREEMENT ON COMMERCE BETWEEN JAPAN AND NEW ZEALAND

THE GOVERNMENT OF JAPAN AND THE GOVERNMENT OF NEW ZEALAND, DESIRING TO INCREASE AND FACILITATE TRADE AND COMMERCE BETWEEN THE TWO COUNTRIES TO THEIR MUTUAL ADVANTAGE, HAVE AGREED AS FOLLOWS:

ARTICLE I

1. THE GOVERNMENT OF EACH COUNTRY SHALL ACCORD TO THE OTHER COUNTRY UNCONDITIONAL MOST-FAVOURED-NATION TREATMENT IN ALL MATTERS WITH RESPECT TO CUSTOMS DUTIES AND CHARGES OF ANY KIND IMPOSED ON OR IN CONNECTION WITH IMPORTATION OR EXPORTATION OR IMPOSED ON THE INTERNATIONAL TRANSFER OF PAYMENTS FOR IMPORTS OR EXPORTS AND WITH RESPECT TO THE METHOD OF LEVYING SUCH DUTIES AND CHARGES, WITH RESPECT TO THE RULES AND FORMALITIES CONNECTED WITH IMPORTATION OR EXPORTATION, AND WITH RESPECT TO ALL INTERNAL TAXES OR OTHER INTERNAL CHARGES OF ANY KIND, AND WITH RESPECT TO ALL LAWS, REGULATIONS AND REQUIREMENTS AFFECTING INTERNAL SALE, OFFERING FOR SALE, PURCHASE, DISTRIBUTION OR USE OF IMPORTED GOODS WITHIN THAT COUNTRY.

2. ACCORDINGLY, PRODUCTS OF EITHER COUNTRY IMPORTED INTO THE OTHER COUNTRY SHALL NOT BE SUBJECT, IN REGARD TO THE MATTERS REFERRED TO IN PARAGRAPH 1 OF THIS ARTICLE, TO ANY DUTIES, TAXES OR CHARGES HIGHER, OR TO ANY RULES OR FORMALITIES MORE BURDENSOME, THAN THOSE TO WHICH THE LIKE PRODUCTS OF ANY THIRD COUNTRY ARE OR MAY HEREAFTER BE SUBJECT.

3. SIMILARLY, PRODUCTS EXPORTED FROM EITHER COUNTRY AND CONSIGNED TO THE OTHER COUNTRY SHALL NOT BE SUBJECT, IN REGARD TO THE MATTERS REFERRED TO IN PARAGRAPH 1 OF THIS ARTICLE, TO ANY DUTIES, TAXES OR CHARGES HIGHER, OR TO ANY RULES OR FORMALITIES MORE BURDENSOME, THAN THOSE TO WHICH THE LIKE PRODUCTS WHEN CONSIGNED TO ANY THIRD COUNTRY ARE OR MAY HEREAFTER BE SUBJECT.

4. ANY ADVANTAGE, FAVOUR, PRIVILEGE OR IMMUNITY WHICH HAS BEEN OR MAY HEREAFTER BE GRANTED BY THE GOVERNMENT OF EITHER COUNTRY IN REGARD TO THE MATTERS REFERRED TO IN PARAGRAPH 1 OF THIS ARTICLE TO ANY PRODUCT ORIGINATING IN OR CONSIGNED TO ANY THIRD COUNTRY SHALL BE ACCORDED IMMEDIATELY AND UNCONDITIONALLY TO THE LIKE PRODUCT ORIGINATING IN OR CONSIGNED TO THE OTHER COUNTRY.

5. THE PROVISIONS OF THIS ARTICLE RELATING TO MOST-FAVOURED-NATION TREATMENT SHALL NOT ENTITLE THE GOVERNMENT OF JAPAN TO CLAIM THE BENEFIT OF ANY PREFERENCE OR ADVANTAGE WHICH MAY AT ANY TIME BE ACCORDED BY THE GOVERNMENT OF NEW ZEALAND TO ANY MEMBER COUNTRY OF THE COMMONWEALTH OF NATIONS (INCLUDING ITS DEPENDENT TERRITORIES) OR TO THE REPUBLIC OF IRELAND.

ARTICLE II

1. NO PROHIBITIONS OR RESTRICTIONS, WHETHER MADE EFFECTIVE THROUGH QUOTAS, IMPORT OR EXPORT LICENCES OR OTHER MEASURES, SHALL BE INSTITUTED OR MAINTAINED BY THE GOVERNMENT OF EITHER COUNTRY ON THE IMPORTATION OF ANY PRODUCT OF THE OTHER COUNTRY OR ON THE EXPORTATION OR SALE FOR EXPORT OF ANY PRODUCT CONSIGNED TO THE OTHER COUNTRY UNLESS THE IMPORTATION OF THE LIKE PRODUCT OF ALL THIRD COUNTRIES OR THE EXPORTATION OR SALE FOR EXPORT OF THE LIKE PRODUCT TO ALL THIRD COUNTRIES IS SIMILARLY PROHIBITED OR RESTRICTED.

2. IN ALL MATTERS RELATING TO THE ALLOCATION OF FOREIGN EXCHANGE, AND TO THE ADMINISTRATION OF FOREIGN EXCHANGE RESTRICTIONS, AFFECTING TRANSACTIONS INVOLVING THE IMPORTATION AND EXPORTATION OF GOODS, THE GOVERNMENT OF EACH COUNTRY UNDERTAKES TO ACCORD TO THE OTHER COUNTRY UNCONDITIONAL MOST-FAVOURED-NATION TREATMENT.

3. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS 1 AND 2 OF THIS ARTICLE, EACH GOVERNMENT MAY TAKE SUCH MEASURES AS ARE NECESSARY TO SAFEGUARD ITS EXTERNAL FINANCIAL POSITION AND BALANCE OF PAYMENTS.

ARTICLE III

1. THE GOVERNMENT OF EACH COUNTRY UNDERTAKES THAT, IF IT ESTABLISHES OR MAINTAINS A STATE ENTERPRISE WHEREVER LOCATED, OR GRANTS TO ANY ENTERPRISE, FORMALLY OR IN EFFECT, EXCLUSIVE OR SPECIAL PRIVILEGES, THAT ENTERPRISE SHALL, IN ITS PURCHASES OR SALES INVOLVING EITHER IMPORTATION OR EXPORTATION, ACT IN A MANNER CONSISTENT WITH THE PRINCIPLES OF NON-DISCRIMINATORY TREATMENT PRESCRIBED IN THIS AGREEMENT.  TO THIS END, THAT ENTERPRISE SHALL, SUBJECT TO THE PROVISIONS OF THIS AGREEMENT, MAKE ANY PURCHASES OR SALES SOLELY IN ACCORDANCE WITH COMMERCIAL CONSIDERATIONS, INCLUDING PRICE, QUALITY, AVAILABILITY, MARKETABILITY, TRANSPORTATION AND OTHER CONDIDIONS OF PURCHASE OR SALE, AND SHALL AFFORD TO THE ENTERPRISES OF THE OTHER COUNTRY ADEQUATE OPPORTUNITY IN ACCORDANCE WITH CUSTOMARY BUSINESS PRACTICE TO COMPETE FOR PARTICIPATION IN SUCH PURCHASES OR SALES.

2. NEITHER GOVERNMENT SHALL PREVENT ANY ENTERPRISE UNDER ITS JURISDICTION (WHETHER OR NOT IT IS AN ENTERPRISE OF THE KIND DESCRIBED IN PARAGRAPH 1 OF THIS ARTICLE) FROM ACTING IN ACCORDANCE WITH THE PRINCIPLES OF PARAGRAPH 1 OF THIS ARTICLE.

3. THE PROVISIONS OF PARAGRAPHS 1 AND 2 OF THIS ARTICLE SHALL NOT APPLY TO THE IMPORTATION OF PRODUCTS FOR IMMEDIATE OR ULTIMATE CONSUMPTION IN GOVERNMENTAL USE AND NOT OTHERWISE FOR RE-SALE OR USE IN THE PRODUCTION OF GOODS FOR SALE.  WITH RESPECT TO THE IMPORTATION OF THOSE PRODUCTS, THE GOVERNMENT OF EACH COUNTRY SHALL ACCORD TO THE TRADE OF THE OTHER COUNTRY FAIR AND EQUITABLE TREATMENT.

ARTICLE IV

1. THE PROVISIONS OF THIS AGREEMENT SHALL NOT BE REGARDED AS CONFERRING ANY MORE FAVOURABLE TREATMENT ON THE TRADE OF EITHER COUNTRY THAN THE GOVERNMENT OF THE OTHER COUNTRY IS ENTITLED OR OBLIGED TO ACCORD TO THE TRADE OF THOSE COUNTRIES IN RESPECT OF WHICH IT APPLIES THE GENERAL AGREEMENT ON TARIFFS AND TRADE.  THE TWO GOVERNMENTS SHALL, SO FAR AS PRACTICABLE AND AS MAY BE AGREED BETWEEN THEM FROM TIME TO TIME, BASE THEIR COMMERCIAL RELATIONS UPON THE PROVISIONS OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN RESPECT OF MATTERS NOT COVERED BY THIS AGREEMENT.

2. NEITHER THE PROVISIONS OF THIS AGREEMENT NOR ANY ACTION TAKEN UNDER THOSE PROVISIONS SHALL AFFECT THE RIGHTS OF EITHER GOVERNMENT UNDER ARTICLE XXXV OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR DETRACT FROM THE FREEDOM OF EITHER GOVERNMENT IN ANY NEGOTIATIONS FOR THE APPLICATION OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE BETWEEN THE TWO COUNTRIES.

ARTICLE V

1. IT IS THE EXPECTATION OF BOTH GOVERNMENTS THAT MUTUAL TRADE WILL BE INCREASED AS A RESULT OF THIS AGREEMENT.  IT IS FURTHER EXPECTED THAT THIS EXPANSION OF TRADE WILL BE ACHIEVED WITHOUT SERIOUS INJURY BEING CAUSED OR THREATEND TO DOMESTIC PRODUCERS IN NEW ZEALAND OR JAPAN.  IF NEVERTHELESS, AS A RESULT OF UNFORESEEN DEVELOPMENTS, THE GOVERNMENT OF EITHER COUNTRY FINDS THAT ANY PRODUCT IS BEING IMPORTED FROM THE OTHER COUNTRY UNDER SUCH CONDITIONS AS TO CAUSE OR THREATEN SERIOUS INJURY TO PRODUCERS IN THE COUNTRY OF IMPORTATION OF LIKE OR DIRECTLY COMPETITIVE PRODUCTS, THAT GOVERNMENT MAY, IN RESPECT OF SUCH PRODUCT, SUSPEND ITS OBLIGATIONS UNDER THIS AGREEMENT TO THE EXTENT AND FOR SUCH TIME AS MAY BE NECESSARY TO PREVENT OR REMEDY THAT INJURY.

2. BEFORE EITHER GOVERNMENT TAKES ACTION PURSUANT TO THE PROVISIONS OF PARAGRAPH 1 OF THIS ARTICLE, IT SHALL GIVE WRITTEN NOTICE TO THE OTHER GOVERNMENT AS FAR IN ADVANCE AS MAY BE PRACTICABLE AND SHALL AFFORD THE OTHER GOVERNMENT AN OPPORTUNITY TO CONSULT WITH IT IN RESPECT OF THE PROPOSED ACTION AS FULLY AS CIRCUMSTANCES PERMIT.

3. IN THE EVENT THAT EITHER GOVERNMENT FINDS IT NECESSARY TO TAKE UNDER THIS ARTICLE ACTION WHICH AFFECTS SUCH A NUMBER OF PRODUCTS OR SUCH A VOLUME OF TRADE THAT, IN THE VIEW OF THE OTHER GOVERNMENT, THE ACHIEVEMENT OF THE OBJECTIVES OF THIS AGREEMENT IS SERIOUSLY IMPAIRED, THE GOVERNMENT WHICH CONSIDERS ITS INTERESTS ADVERSELY AFFECTED MAY REQUEST CONSULTATIONS WITH THE OTHER GOVERNMENT ON THE SITUATION WHICH HAS DEVELOPED INCLUDING THE ACTION TAKEN, AND, AT THE EXPIRATION OF TWO MONTHS FROM THE DATE ON WHICH THE ACTION WAS TAKEN, IF NO MUTUALLY SATISFACTORY SOLUTION HAS THEN BEEN REACHED, OR AT AN EARLIER DATE IF IT IS AGREED THAT NO SUCH SOLUTION IS LIKELY TO BE FOUND, MAY MAKE A WRITTEN REQUEST FOR THE RENEGOTIATION OF THE TERMS OF THE AGREEMENT.  THE RENEGOTIATION SHALL BE COMMENCED AS SOON AS PRACTICABLE AFTER THE DATE ON WHICH THE WRITTEN REQUEST FOR THE RENEGOTIATION IS MADE.  IN THE EVENT THAT A MUTUALLY SATISFACTORY SOLUTION IS NOT REACHED WITHIN TWO MONTHS FROM THE DATE ON WHICH THE WRITTEN REQUEST FOR THE RENEGOTIATION IS MADE, THE GOVERNMENT WHICH REQUESTED THE RENEGOTIATION MAY GIVE TO THE OTHER GOVERNMENT WRITTEN NOTICE OF ITS INTENTION TO TERMINATE THE AGREEMENT.

ARTICLE VI

1. EACH GOVERNMENT SHALL ACCORD SYMPATHETIC CONSIDERATION TO REPRESENTATIONS MADE BY THE OTHER GOVERNMENT ON MATTERS ARISING OUT OF THE OPERATION OF THIS AGREEMENT AND SHALL AFFORD TO THE OTHER GOVERNMENT ADEQUATE OPPORTUNITY FOR CONSULTATIONS.

2. CONSULTATIONS ON THE OPERATION OF THIS AGREEMENT SHALL, IN ANY EVENT, BE HELD ANNUALLY.

ARTICLE VII

1. THIS AGREEMENT SHALL BE SUBJECT TO RATIFICATION BY EACH GOVERNMENT AND SHALL ENTER INTO FORCE ON THE DATE OF THE EXCHANGE OF THE INSTRUMENTS OF RATIFICATION WHICH SHALL TAKE PLACE IN TOKYO AS SOON AS POSSIBLE.

2. AT ANY TIME AFTER THE EIGHTH DAY OF SEPTEMBER 1961 EITHER GOVERNMENT MAY GIVE TO THE OTHER GOVERNMENT WRITTEN NOTICE OF ITS INTENTION TO TERMINATE THE AGREEMENT.

3. THIS AGREEMENT SHALL TERMINATE UPON THE EXPIRATION OF THREE MONTHS FROM THE DATE ON WHICH EITHER GOVERNMENT RECEIVES FROM THE OTHER WRITTEN NOTICE OF THAT GOVERNMENT'S INTENTION TO TERMINATE THE AGREEMENT GIVEN IN ACCORDANCE WITH PARAGRAPH 2 OF THIS ARTICLE OR PARAGRAPH 3 OF ARTICLE V.

IN WITNESS WHEREOF THE REPRESENTATIVES OF THE TWO GOVERNMENTS, DULY AUTHORIZED FOR THE PURPOSE, HAVE SIGNED THIS AGREEMENT.

DONE AT WELLINGTON, IN DUPLICATE, IN THE JAPANESE AND ENGLISH LANGUAGES, BOTH EQUALLY AUTHENTIC, THIS NINTH DAY OF SEPTEMBER, 1958.

FOR THE GOVERNMENT OF JAPAN:

HISANAGA SHIMADZU

FOR THE GOVERNMENT OF NEW ZEALAND:

W.NASH

YOUR EXCELLENCY, WITH REFERENCE TO THE AGREEMENT ON COMMERCE BETWEEN JAPAN AND NEW ZEALAND SIGNED TODAY, I HAVE THE HONOUR TO INFORM YOUR EXCELLENCY THAT THE MOST-FAVOURED-NATION PROVISIONS OF THE AGREEMENT SHALL NOT APPLY TO ADVANTAGES WHICH ARE ACCORDED OR WHICH MAY BE ACCORDED HEREAFTER BY JAPAN TO THE AREAS SET FORTH IN ARTICLE 3 OF THE TREATY OF PEACE WITH JAPAN SIGNED AT SAN FRANCISCO ON 8 SEPTEMBER 1951, SO LONG AS THE SITUATION SET FORTH IN THE SECOND SENTENCE OF THAT ARTICLE CONTINUES WITH RESPECT TO THE POWERS OF ADMINISTRATION, LEGISLATION AND JURISDICTION OVER THOSE AREAS.

I HAVE THE FURTHER HONOUR TO REQUEST YOUR EXCELLENCY TO BE GOOD ENOUGH TO CONFIRM THE FOREGOING UNDERSTANDING ON BEHALF OF YOUR GOVERNMENT.

I AVAIL MYSELF, EXCELLENCY, OF THIS OPPORTUNITY TO RENEW ASSURANCES OF MY HIGHEST CONSIDERATION.

9 SEPTEMBER 1958

HISANAGA SHIMADZU AMBASSADOR PLENIPOTENTIARY AND EXTRAORDINARY OF JAPAN

THE RT. HON. W. NASH, MINISTER OF EXETRNAL AFFAIRS OF NEW ZELAND

YOUR EXCELLENCY, I HAVE THE HONOUR TO ACKNOWLEDGE THE RECEIPT OF YOUR EXCELLENCY'S NOTE OF TODAY'S DATE WHICH READS:

"WITH REFERENCE TO THE AGREEMENT ON COMMERCE BETWEEN JAPAN AND NEW ZEALAND SIGNED TODAY, I HAVE THE HONOUR TO INFORM YOUR EXCELLENCY THAT THE MOST-FAVOURED-NATION PROVISIONS OF THE AGREEMENT SHALL NOT APPLY TO ADVANTAGES WHICH ARE ACCORDED OR WHICH MAY BE ACCORDED HEREAFTER BY JAPAN TO THE AREAS SET FORTH IN ARTICLE 3 OF THE TREATY OF PEACE WITH JAPAN SIGNED AT SAN FRANCISCO ON 8 SEPTEMBER 1951, SO LONG AS THE SITUATION SET FORTH IN THE SECOND SENTENCE OF THAT ARTICLE CONTINUES WITH RESPECT TO THE POWERS OF ADMINISTRATION, LEGISLATION AND JURISDICTION OVER THOSE AREAS.

"I HAVE THE FURTHER HONOUR TO REQUEST YOUR EXCELLENCY TO BE GOOD ENOUGH TO CONFIRM THE FOREGOING UNDERSTANDING ON BEHALF OF YOUR GOVERNMENT."

ON BEHALF OF THE GOVERNMENT OF NEW ZEALAND, I HAVE THE HONOUR TO CONFIRM THE UNDERSTANDING STATED IN YOUR EXCELLENCY'S NOTE WITH RESPECT TO THE APPLICATION OF THE AGREEMENT ON COMMERCE BETWEEN NEW ZEALAND AND JAPAN SIGNED TODAY TO THE AREAS SPECIFIED IN ARTICLE 3 OF THE TREATY OF PEACE WITH JAPAN.

I AVAIL MYSELF, EXCELLENCY, OF THIS OPPORTUNITY TO RENEW ASSURANCES OF MY HIGHEST CONSIDERATION.

9 SEPTEMBER 1958

I HAVE THE HONOUR TO BE, EXCELLENCY, YOUR OBEDIENT SERVANT, W. NASH MINISTER OF EXTERNAL AFFAIRS.

HIS EXCELLENCY MR. HISANAGA SHIMADZU, AMBASSADOR OF JAPAN, WELLINGTON.

SECOND PROTOCOL

AT THE TIME OF SIGNING THE AGREEMENT ON COMMERCE BETWEEN JAPAN ON THE ONE HAND AND THE KINGDOM OF THE NETHERLANDS AND THE BELGO-LUXEMBURG ECONOMIC UNION ON THE OTHER HAND, THE UNDERSIGNED REPRESENTATIVES, DULY AUTHORIZED BY THEIR RESPECTIVE GOVERNMENTS, HAVE FURTHER AGREED ON THE FOLLOWING PROVISIONS WHICH SHALL BE CONSIDERED INTEGRAL PARTS OF THE AFORESAID AGREEMENT:

1. IF, IN THE VIEW OF EITHER CONTRACTING PARTY, THERE IS REASONABLE EVIDENCE THAT, AS A RESULT OF UNFORESEEN DEVELOPMENTS, ANY PRODUCT OF THE OTHER CONTRACTING PARTY IS BEING IMPORTED INTO ITS TERRITORY UNDER SUCH CONDITIONS AS TO CAUSE OR THREATEN SERIOUS INJURY TO ITS DOMESTIC PRODUCERS OF LIKE OR DIRECTLY COMPETITIVE PRODUCTS AND THAT CERTAIN ACTION IS REQUIRED TO PREVENT OR REMEDY SUCH INJURY, IT SHALL GIVE TO THE OTHER CONTRACTING PARTY WRITTEN NOTICE TO THIS EFFECT.  THE CONTRACTING PARTIES SHALL, UPON SUCH NOTICE, ENTER INTO CONSULTATIONS IMMEDIATELY FOR THE PURPOSE OF FINDING A MUTUALLY SATISFACTORY SOLUTION.

2. IF THE CONSULTATIONS REFERRED TO ABOVE DO NOT RESULT WITHIN A REASONABLE PERIOD OF TIME IN A MUTUALLY SATISFACTORY SOLUTION, THE IMPORTING CONTRACTING PARTY MAY, IN RESPECT OF THE PRODUCT IN QUESTION, SUSPEND ITS OBLIGATIONS UNDER THE AGREEMENT TO THE EXTENT AND FOR SUCH TIME AS MAY BE NECESSARY TO PREVENT OR REMEDY SUCH INJURY.

3. IN CRITICAL CIRCUMSTANCES WHERE DELAY WOULD CAUSE DAMAGE WHICH IT WOULD BE DIFFICULT TO REPAIR, ACTION UNDER PARAGRAPH 2 ABOVE MAY BE TAKEN PROVISIONALLY AFTER THE NOTICE MENTIONED IN PARAGRAPH 1 ABOVE HAS BEEN GIVEN OR BEFORE THE CONSULTATIONS REFERRED TO IN THAT PARAGRAPH ARE COMPLETED, PROVIDED THAT SUCH CONSULTATIONS SHALL BE CONTINUED IN AN ENDEAVOUR TO FIND A MUTUALLY SATISFACTORY SOLUTION.

4. (A) IF THE EXPORTING CONTRACTING PARTY DEEMS THAT THE ACTION TAKEN BY THE IMPORTING CONTRACTING PARTY UNDER PARAGRAPH 2 OR 3 OF THE PRESENT PROTOCOL AFFECTS SUCH A NUMBER OF PRODUCTS OR SUCH A VOLUME OF TRADE THAT THE INTERESTS OF THAT EXPORTING CONTRACTING PARTY ARE SERIOUSLY IMPAIRED, IT MAY REQUEST IN WRITING CONSULTATIONS WITH THE IMPORTING CONTRACTING PARTY ON THE SITUATION WHICH HAS DEVELOPED INCLUDING THE ACTION TAKEN.

(B) IF NO SATISFACTORY AGREEMENT CAN BE REACHED WITHIN A REASONABLE PERIOD OF TIME THE EXPORTING CONTRACTING PARTY MAY SUSPEND ITS OBLIGATIONS UNDER THE AGREEMENT TO SUCH AN EXTENT AS IS SUBSTANTIALLY EQUIVALENT TO THE EFFECT OF THE ACTION TAKEN BY THE IMPORTING CONTRACTING PARTY.

(C) IF THE IMPORTING CONTRACTING PARTY TERMINATES ITS ACTION UNDER THE PRESENT PROTOCOL, THE EXPORTING CONTRACTING PARTY SHALL TERMINATE THE SUSPENSION OF ITS OBLIGATIONS FORTHWITH.

5. IN CASE THE PROVISIONS OF PARAGRAPH 2, 3 OR 4 ABOVE ARE APPLIED, THE CONTRACTING PARTIES SHALL EXERT THEIR BEST ENDEAVOURS, INDIVIDUALLY AS WELL AS IN COOPERATION WITH EACH OTHER, SO THAT THE SITUATIONS ENVISAGED IN THE AGREEMENT WILL BE RESTORED AS FULLY AND AS SOON AS POSSIBLE.

6. (A) IN CASE IMPORT RESTRICTIONS HAVE BEEN CONTINUOUSLY IN FORCE IN EITHER CONTRACTING PARTY WITH REGARD TO SOME SPECIFIC PRODUCTS OF THE OTHER CONTRACTING PARTY AND THE SUDDEN REMOVAL OF RESTRICTIONS ON SUCH PRODUCTS WOULD RESULT IN SERIOUS INJURY TO DOMESTIC PRODUCERS OF LIKE OR DIRECTLY COMPETITIVE PRODUCTS, THE IMPORTING CONTRACTING PARTY MAY, AS A TRANSITIONAL PERIOD MEASURE, APPLY SUCH IMPORT RESTRICTIONS AS MAY BE AGREED UPON BETWEEN THE GOVERNMENTS OF THE CONTRACTING PARTIES.

(B) THE CONTRACTING PARTY APPLYING THE ABOVE RESTRICTIONS UNDERTAKES:

(I) TO GRANT TO THE TRADE OF THE OTHER CONTRACTING PARTY A FAIR AND REASONABLE SHARE OF THE MARKET, AND

(II) TO CARRY OUT A POLICY WHICH IS AIMED AT THE RELAXATION OR REMOVAL OF SUCH RESTRICTIONS AT THE EARLIEST POSSIBLE DATE.

7. WHEN THE GENERAL AGREEMENT ON TARIFFS AND TRADE BECOMES APPLICABLE BETWEEN THE CONTRACTING PARTIES WHILE THE AGREEMENT REMAINS IN FORCE IN ACCORDANCE WITH ARTICLE VII THEREOF, THE PRESENT PROTOCOL SHALL CEASE TO BE IN EFFECT FORTHWITH.

IN WITNESS WHEREOF, THE UNDERSIGNED REPRESENTATIVES HAVE SIGNED THE PRESENT PROTOCOL.

DONE AT TOKYO, IN TRIPLICATE IN THE ENGLISH LANGUAGE, THIS EIGHTH DAY OF OCTOBER, NINETEEN HUNDRED AND SIXTY.

FOR THE GOVERNMENT OF JAPAN:

ZENTARO KOSAKA

FOR THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS:

N.A.J. DE VOOGD

FOR THE GOVERNMENTS OF THE BELGO-LUXEMBURG ECONOMIC UNION:

EUGENE DU BOIS

THE GOVERNMENT OF JAPAN AND THE GOVERNMENT OF NEW ZEALAND,

DESIRING TO AMEND THE AGREEMENT ON COMMERCE BETWEEN JAPAN AND NEW ZEALAND, SIGNED AT WELLINGTON ON 9 SEPTEMBER, 1958, (HEREINAFTER REFERRED TO AS "THE AGREEMENT") AS A RESULT OF THE DISINVOCATION BY THE GOVERNMENT OF NEW ZEALAND OF ARTICLE XXXV OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN RESPECT OF JAPAN,

HAVE AGREED AS FOLLOWS:

ARTICLE I

PARAGRAPHS 1 AND 2 OF ARTICLE IV OF THE AGREEMENT ARE DELETED AND REPLACED BY THE FOLLOWING:

"NOTHING IN THIS AGREEMENT SHALL AFFECT THE RIGHTS AND OBLIGATIONS THAT EITHER COUNTRY HAS OR MAY HAVE AS A CONTRACTING PARTY TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE, SO LONG AS BOTH COUNTRIES ARE CONTRACTING PARTIES TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE."

ARTICLE II

ARTICLE V OF THE AGREEMENT IS DELETED.

ARTICLE III

PARAGRAPH 3 OF ARTICLE VII OF THE AGREEMENT IS AMENDED BY DELETING THE PHRASE "OR PARAGRAPH 3 OF ARTICLE V."

ARTICLE IV

THIS PROTOCOL SHALL BE SUBJECT TO RATIFICATION BY EACH GOVERNMENT AND SHALL ENTER INTO FORCE ON THE DATE OF THE EXCHANGE OF THE INSTRUMENTS OF RATIFICATION WHICH SHALL TAKE PLACE IN WELLINGTON AS SOON AS POSSIBLE.

IN WITNESS WHEREOF THE REPRESENTATIVES OF THE TWO GOVERNMENTS, DULY AUTHORIZED FOR THE PURPOSE, HAVE SIGNED THIS PROTOCOL.

DONE AT TOKYO, IN DUPLICATE, IN THE JAPANESE AND ENGLISH LANGUAGES, BOTH EQUALLY AUTHENTIC, THIS NINTH DAY OF MARCH, 1962.

FOR THE GOVERNMENT OF JAPAN:

ZENTARO KOSAKA

FOR THE GOVERNMENT OF NEW ZEALAND:

J R MARSHALL

　Tokyo, 9 March, 1962.

　Your Excellency, I have the honour to refer to our recent discussions regarding trading relations between Japan and New Zealand:

　The Govornment of New Zealand is aware of the importance which the Government of Japan attaches to full participation in the General Agreement on Tariffs and Trade and I am happy to inform you that my Government will immediately notify other Contracting Parties through the Executive Secretary that New Zealand no longer intends to apply the provisions of Article XXXV of the General Agreement in respect of Japan.

　As the above notification will establish full relations between our two countries in terms of the General Agreement on Tariffs and Trade, we have today signed a protocol
providing for the amendment of the Agreement on Commerce between New Zealand and Japan signed at Wellington on 9 September, 1958. This protocol will be ratified as soon as possible and it is understood that in the meantime neither Government will take action under Article V of the Agreement referred to above.

　In our discussions we noted that trade between our two countries had increased significantly since the signing of the Agreement on Commerce between New Zealand and Japan and we agreed that there was further scope for the expansion of mutual trade. We also recognized the value of the annual review of the trade between our two countries provided for by our existing Agreement and noted that these arrangements would continue. We were agreed that difficulties which might arise should, in principle, be settled through the process of consultation.

　It was also agreed that the future expansion could be facilitated by recognition of the special difficulties which still remained. Our discussions resulted in the following understandings which I set out and explain below:

(a) I referred to the special difficulties inherent in the small size of the New Zealand market for manufactured goods and in the development of manufacturing industries in New Zealand, which make domestic industries particularly vulnerable to excessive competition from imports. You referred to the vulnerability inherent in some sectors of primary industry in Japan, and your Government's concern that serious difficulties might arise as a result of excessive competition from imports. It was understood that in either of the circumstances explained above the Government of the exporting country would give urgent and sympathetic consideration to any repuest by the Government of the importing country for the adoption of appropriate remedial measures if the export of any particular commodity was causing or was likely to cause serious injury to a domestic industry in the importing country.

(b) It was also understood that in cases where there was no time for prior consultation either Government may, in order to avoid damage to domestic industry, take immediate remedial action by way of restricting imports. Should such action be taken and the Government of the exporting country consider that its trade was being unduly affected, the Government of the importing country would be willing to discuss the matter upon receiving a request to do so.

　I should be gratefull if you would inform me whether the understandings set out above are acceptable to your Government. If so, I have the honour to suggest that this Note and your reply thereto should constitute an agreement between our two Governments which shall come into force on the date of your reply.

　I avail myself, Excellency, of this opportunity to renew the assurances of my highest consideration.

　J R Marshall

　Deputy Prime Minister and Minister of Overseas Trade of New Zealand

　His Excellency Mr. Zentaro Kosaka, Minister for Foreign Affairs of Japan, Tokyo.

　Tokyo, 9 March 1962.

　Your Excellency,
  I have the honour to acknowledge the receipt of your Note of today's date which reads as follows:

　I have the honour to refer to our recent discussions regarding trading relations between Japan and New Zealand:

　The Government of New Zealand is aware of the importance which the Government of Japan attaches to full participation in the General Agreement on Tariffs and Trade and I am happy to inform you that my Government will immediately notify other Contracting Parties through the Executive Secretary that New Zealand no longer intends to apply the provisions of Article XXXV of the General Agreement in respect of Japan.

　As the above notification will establish full relations between our two countries in terms of the General Agreement on Tariffs and Trade, we have today signed a protocol providing for the amendment of the Agreement on Commerce between New Zealand and Japan signed at Wellington on 9 September, 1958. This protocol will be ratified as soon as possible and it is understood that in the meantime neither Government will take action under Article V of the Agreement referred to above.

　In our discussions we noted that trade between our two countries had increased significantly since the signing of the Agreement on Commerce between New Zealand and Japan and we agreed that there was further scope for the expansion of mutual trade. We also recognized the value of the annual review of the trade between our two countries provided for by our existing Agreement and noted that these arrangements would continue. We were agreed that difficulties which might arise should, in principle, be settled through the process of consultation.

　It was also agreed that the future expansion could be facilitated by recognition of the special difficulties which still remained. Our discussions resulted in the following understandings which I set out and explain below:

(a) I referred to the special difficulties inherent in the small size of the New Zealand market for manufactured goods and in the development of manufacturing industries in New Zealand, which make domestic industries particularly vulnerable to excessive competition from imports.  You referred to the vulnerability inherent in some sectors of primary industry in Japan, and your Government's concern that serious difficulties might arise as a result of excessive competition from imports. It was understood that in either of the circumstances explained above the Government of the exporting country would give urgent and sympathetic consideration to any request by the Government of the importing country for the adoption of appropriate remedial measures if the export of any particular commodity was causing or was likely to cause serious injury to a domestic industry in the importing country.

(b) It was also understood that in cases where there was no time for prior consultation either Government may, in order to avoid damage to domestic industry, take immediate remedial action by way of restricting imports.  Should such action be taken and the Government of the exporting country consider that its trade was being unduly affected, the Government of the importing country would be willing to discuss the matter upon receiving a request to do so.

　I should be grateful if you would inform me whether the understandings set out above are acceptable to your Government. If so, I have the honour to suggest that this Note and your reply thereto should constitute an agreement between our two Governments which shall come into force on the date of your reply.

　I have the honour to inform you that the understandings set out in your Note are acceptable to my Government and to agree that your Note and this reply should constitute an agreement between our two Governments which shall come into force on today's date.

　I avail myself, Excellency, of this opportunity to renew the assurances of my highest consideration.

　(Zentaro Kosaka)
Minister for Foreign Affairs

　The Hon. J. R. Marshall,
  Deputy Prime Minister and Minister of Overseas Trade of New Zealand

　Tokyo, 9 March, 1962.

　Your Excellency,
 With reference to our discussions held in Tokyo from 28 February to 9 March, 1962, I have the honour to confirm on behalf of my Government the following understandings:-

1. Following the establishment of full relations between our two countries in terms of the General Agreement on Tariffs and Trade, our Governments will as soon as possible enter into tariff negotiations.

2.In the course of the above negotiations, the Government of New Zealand will, in particular, request assurances that the existing rates of duty in Japan on mutton and lamb will not be increased, and I understand that the Government of Japan will accede to this request.

3.In those negotiations, the Government of Japan will, in order to balance the concessions offered by them, request assurances that, among other things, the Government of New Zealand will not increase the existing rates of duty either on canned salmon or on canned crustacea and mollusca, and I understand that the Government of New Zealand will accede to this request.

　I should be grateful if you would be good enough to confirm the understandings as set out above on behalf of your Government. If so, I have the honour to suggest that this Note and your reply thereto should constitute an agreement between our two Governments which shall come into force on the date of your reply.

　I avail myself, Excellency, of this opportunity to renew the assurances of my highest consideration.

　J R Marshall

　Deputy Prime Minister and Minister of Overseas Trade of New Zealand

　His Excellency Mr. Zentaro Kosaka,
  Minister for Foreign Affairs of Japan, Tokyo.

　(Translation)

　Tokyo, 9 March, 1962.

　Your Excellency,I have the honour to acknowledge the receipt of your Note of today's date which reads as follows:

　With reference to our discussions held in Tokyo from 28 February to 9 March, 1962, I have the honour to confirm on behalf of my Government the following understandings: -

1. Following the establishment of full relations between our two countries in terms of the General Agreement on Tariffs and Trade, our Governments will as soon possible enter into tariff negotiations.

2. In the course of the above negotiations, the Government of New Zealand will, in particular, request assurances that the existing rates of duty in Japan on mutton and lamb will not be increased, and I understand that the Government of Japan will accede to this request.

3. In those negotiations, the Government of Japan
  will, in order to balance the concessions offered by them, request assurances that, among other things, the Government of New Zealand will not increase the existing rates of duty either on canned salmon or on canned crustacea and mollusca, and l understand that the Government of New Zealand will accede to this request.

　I should be grateful if you would be good enough to confirm the understandings as set out above on behalf of your Government. If so, I have the honour to suggest that this Note and your reply thereto should constitute an agreement between our two Governments which shall come into force on the date of your reply.

　I have the honour to confirm the understandings set out in your Note on behalf of my Government and to agree that your Note and this reply should constitute an agreement between our two Governments which shall come into force on today's date.

　I avail myself, Excellency, of this opportunity to renew the assurances of my highest consideration.

　(Zentaro Kosaka)
Minister for Foreign Affairs

　The Hon. J. R. Marshall,
Deputy Prime Minister and Minister of Overseas Trade of New Zealand