SECTION 38

Deflection of trade arising from barter agreements 1. If, as a result of a barter agreement dealing with a specific category of articles between a Member State, or a natural or legal person of the said State and a third country, or a natural or legal person of the said country there is a substantial deflection of trade in such a category to the detriment of articles imported from and manufactured in any other Member State but in favour of articles imported under the barter agreement, the Member State importing such articles shall take effective steps to correct the deflection. 2. To determine whether a deflection of trade has occurred in a specific category of articles within the meaning of this article, consideration shall be given to all the relevant trade statistics and other data on the category of articles available for the six months prior to a complaint from a Member State affected concerning deflection of trade and to the average of two comparable six-month periods during the 24 months prior to the first importation of goods under the barter agreement. 3. The Secretary-General shall refer the matter to the Council which shall consider it and submit it to the Conference for a decision.