THE COUNCIL,

Having regard to the Convention on the Organisation for Economic Co-operation and Development of 14th December 1960 and, in particular, to Articles 2(c), 2(d), 3 and 5(a) thereof:

Having regard to the Resolution of the Council of 22nd December 1976 on the Terms of Reference of the Committee on International Investment and Multinational Enterprises and, in particular, to paragraph 2 thereof [Doc. No. C(76)209(Final)];

TAKING NOTE of the Declaration by the Governments of OECD Member countries of 21st June 1976 on National Treatment;

Having regard to the Decision of the Council of 21st June 1976 on National Treatment [Doc. No. C(76)118];

Considering that it is appropriate to establish within the Organisation suitable procedures for reviewing laws, regulations and administrative practices (hereinafter referred to as "measures") which depart from "National Treatment";

Considering the Report on the review of the 1976 Declaration and Decisions on international investment and multinational enterprises [Doc. No. C(79)102(Final)];

On the proposal of the Committee on International Investment and Multinational Enterprises;

DECIDES:

1.            Measures taken by a Member country constituting exceptions to "National Treatment" (including measures restricting new investment by "Foreign-Controlled Enterprises" already established in their territory) in effect on 21st June 1976 shall be notified to the Organisation within 60 days after that date.

2.            Measures taken by a Member country constituting new exceptions to "National Treatment" (including measures restricting new investment by "Foreign-Controlled Enterprises" already established in their territory) taken after 21st June 197 6 shall be notified to the Organisation within 30 days of their introduction together with the specific reasons therefor and the proposed duration thereof.

3.            Measures introduced by a territorial subdivision of a Member country, pursuant to its independent powers, which constitute exceptions to "National Treatment", shall be notified to the Organisation by the Member country concerned, insofar as it has knowledge thereof, within 30 days of the responsible officials of the Member country obtaining such knowledge.

4.            The Committee on International Investment and Multinational Enterprises (hereinafter called "the Committee") shall periodically review the application of "National Treatment" (including exceptions thereto) with a view to extending such application of "National Treatment". The Committee shall make proposals as and when necessary in this connection.

5.            The Committee may periodically invite the Business and Industry Advisory Committee to OECD (BIAC) and the Trade Union Advisory Committee to OECD (TUAC) to express their views on matters related to National Treatment and shall take account of such views in its periodic reports to the Council.

6.            The Committee shall act as a forum for consultations, at the request of a Member country, in respect of any matter related to this instrument and its implementation, including exceptions to "National Treatment" and their application.

7.            Member countries shall provide to the Committee, upon its request, all relevant information concerning measures pertaining to the application of "National Treatment" and exceptions thereto.