It being three minutes after six o'clock the house adjourned, without question put, pursuant to standing order.

INTERNATIONAL WHEAT AGREEMENT, 1962 as adopted at the final plenary session held at Geneva on 10 March 1962

The governments signatory to this agreement, Considering that the international wheat agreement, 1949 was revised and renewed in 1953, 1956 and 1959, and Considering that the international wheat agreement, 1959 expires on 31 July 1962 and that it is desirable to conclude a new agreement for a further period,- Have agreed as follows: PART I.-GENERAL Article 1 Objectives The objectives of this agreement are: (a) To assure supplies of wheat and wheat flour to importing countries and markets for wheat and wheat flour to exporting countries at equitable and stable prices; (b) To promote the expansion of the international trade in wheat and wheat flour and to secure the freest possible flow of this trade in the interests of both exporting and importing countries, and thus contribute to the development of countries, the economies of which depend on commercial sales of wheat; (c) To overcome the serious hardship caused to producers and consumers by burdensome surpluses and critical shortages of wheat; (d) To encourage the use and consumption of wheat and wheat flour generally, and in particular in developing countries, so as to improve health and nutrition in those countries and thus to assist in their development; and (e) In general to further international cooperation in connection with world wheat problems, recognizing the relationship of the trade in wheat to the economic stability of markets for other agricultural products. Article 2 Definitions (1) For the purposes of this agreement: (a) "Advisory committee on price equivalents" means the committee established under Article 31; (b) "Balance of commitment" means the amount of wheat which an exporting country is obliged to make available at not greater than the maximum price under Article 5, that is, the amount by which its datum quantity with respect to importing countries exceeds the actual commercial purchases from it by those countries in the crop year at the relevant time; (c) "Balance of entitlement" means the amount of wheat which an importing country is entitled to purchase at not greater than the maximum price under Article 5; that is, the amount by which its datum quantity with respect to the exporting country or countries concerned, as the context requires, exceeds its actual commercial purchases from those countries in the crop year at the relevant time; (d) "Bushel" means 60 pounds avoirdupois or 27.2155.. kilogrammes; (e) "Carrying charges" means the costs incurred for storage, interest and insurance in holding wheat; (f) "Certified seed wheat" means wheat which has been officially certified according to the custom of the country of origin and which conforms to recognized specification standards for seed wheat in that country; (g) "C. & f." means cost and freight; (h) "Council" means the international wheat council established by the international wheat agreement, 1949 and continued in being by Article 25; (i) "Crop year" means the period from 1 August to 31 July; (j) "Datum quantity" means: (i) In the case of an exporting country the average annual commercial purchases from that country by importing countries during the years determined under Article 15; (ii) In the case of an importing country the average annual commercial purchases from exporting countries or from a particular exporting country, as the context requires, during the years determined under Article 15; (k) "Executive committee" means the committee established under Article 30; (l) "Exporting country" means, as the context requires either;

(i) the government of a country listed in annex B which has accepted or acceded to this agreement and has not withdrawn therefrom; or (ii) that country itself and the territories in respect of which the rights and obligations of its government under this agreement apply. (m) "F.a.q." means fair average quality; (n) "F.o.b." means free on board ocean vessel or sea-going vessel, as the case may be, and in the case of French wheat delivered at a Rhine port, free on board river craft; (o) "Importing country" means, as the context requires, either: (i) the government of a country listed in annex C which has accepted or acceded to this agreement and has not withdrawn therefrom; or (ii) that country itself and the territories in respect of which the rights and obligations of its government under this agreement apply; (p) "Marketing costs" means all usual charges incurred in marketing, chartering, and forwarding; (q) "Maximum price" means the maximum prices specified in or determined under Articles 6 or 7 or one of those prices, as the context requires; (r) "Maximum price declaration" means a declaration made in accordance with Article 13; (s) "Metric ton", or 1,000 kilogrammes, means 36.74371 bushels; (t) "Minimum price" means the minimum prices specified in or determined under Articles 6 or 7 or one of those prices, as the context requires; (u) "Price range" means prices between the minimum and maximum prices specified in or determined under Articles 6 or 7, including the minimum prices but excluding the maximum prices; (v) "Purchase" means a purchase for import of wheat exported or to be exported from an exporting country or from other than an exporting country, as the case may be, or the quantity of such wheat so purchased, as the context requires. Where reference is made in this agreement to a purchase, it shall be understood to refer not only to purchases concluded between the governments concerned but also to purchases concluded between private traders and to purchases concluded between a private trader and the government concerned. In this definition "government" shall be deemed to include the government of any territory in respect of which the rights and obligations of any government accepting or acceding to this agreement apply under Article 37; (w) "Territory" in relation to an exporting or importing country includes any territory in respect of which the rights and obligations under this agreement of the government of that country apply under Article 37; (x) "Wheat" includes wheat grain of any description, class, type, grade or quality and, except in Article 6, wheat flour. (2) All calculations of the wheat equivalent of purchases of wheat flour shall be made on the basis of the rate of extraction indicated by the contract between the buyer and the seller. If no such rate is indicated, 72 units by weight of wheat flour shall, for the purpose of such calculations, be deemed to be equivalent to 100 units by weight of wheat grain unless the council decides otherwise. Article 3 Commercial Purchases and Special Transactions (1) A commercial purchase for the purposes of this agreement is a purchase as defined in Article 2 which conforms to the usual commercial practices in international trade and which does not include those transactions referred to in paragraph (2) of this article. (2) A special transaction for the purposes of this agreement is one which, whether or not within the price range, includes features introduced by the government of a country concerned which do not conform with usual commercial practices. Special transactions include the following: (a) Sales on credit in which, as a result of government intervention, the interest rate, period of payment, or other related terms do not conform with the commercial rates, periods or terms prevailing in the world market; (b) Sales in which the funds for the purchase of wheat are obtained under a loan from the government of the exporting country tied to the purchase of wheat; (c) Sales for currency of the importing country which is not transferable or convertible into currency or goods for use in the exporting country; (d) Sales under trade agreements with special payments arrangements which include clearing accounts for settling credit balances bilaterally through the exchange of goods, except where the exporting country and the importing country concerned agree that the sale shall be regarded as commercial; (e) Barter transactions (i) which result from the intervention of governments where wheat is exchanged at other than prevailing world prices, or (ii) which involve sponsorship under a government purchase program except where the purchase of wheat results from a barter transaction in which the country of final destination was not named in the original barter contract; (f) A gift of wheat or a purchase of wheat out of a monetary grant by the exporting country made for that specific purpose; (g) Any other categories of transactions that include features introduced by the government of a country concerned which do not conform with usual commercial practices, as the council may prescribe. (3) Any question raised by the executive secretary or by any exporting or importing country as to whether a transaction is a commercial purchase as defined in paragraph (1) of this article or a special transaction as defined in paragraph (2) of this article shall be decided by the council. PART II.-RIGHTS AND OBLIGATIONS Article 4 Purchases within the Price Range (1) Each importing country undertakes that not less than the percentage specified for that country in annex A of its total commercial purchases of wheat in any crop year shall be purchased from exporting countries at prices within the price range and that any additional commercial purchases of wheat from exporting countries shall also be at prices within the price range, except when a maximum price declaration is in effect in respect of any exporting country in which case the provisions of Article 5 shall apply. (2) Exporting countries undertake, in association with one another, that wheat from their countries shall be made available for purchase by importing countries in any crop year at prices within the price range in quantities sufficient to satisfy the commercial requirements of those countries, except when a maximum price declaration is in effect in respect of an exporting country, in which case the provisions of Article 5 shall apply to that country. (3) For the purposes of this agreement, except as provided in Article 5, any wheat purchased from an importing country by a second importing country which originated during that crop year from an exporting country shall be deemed to have been purchased from that exporting country by the second importing country. Subject to the provisions of Article 19, this paragraph shall apply to wheat flour only if the wheat flour originated from the exporting country concerned. Article 5 Purchases at the Maximum Price (1) If the council makes a maximum price declaration in respect of an exporting country, that country shall make available for purchase by importing countries at not greater than the maximum price its balance of commitment toward those countries to the extent that the balance of entitlement of any importing country with respect to all exporting countries is not exceeded. (2) If the council makes a maximum price declaration in respect of all exporting countries, each importing country shall be entitled, while the declaration is in effect, (a) To purchase from exporting countries at prices not greater than the maximum price its balance of entitlement with respect to all exporting countries; and (b) To purchase wheat from any source without being regarded as committing any breach of paragraph (1) of Article 4. (3) If the council makes a maximum price declaration in respect of one of more exporting countries, but not all of them, each importing country shall be entitled while the declaration is in effect, (a) To make purchases under paragraph (1) of this article from such one or more exporting countries and to purchase the balance of its commercial requirements within the price range from the other exporting countries, and (b) To purchase wheat from any source without being regarded as committing any breach of paragraph (1) of Article 4 to the extent of its balance of entitlement with respect to such one or more exporting countries as at the effective date of the declaration, provided such balance is not larger than its balance of entitlement with respect to all exporting countries. (4) Purchases by any importing country from an exporting country in excess of the balance of entitlement of that importing country with respect to all exporting countries shall not reduce the obligation of that exporting country under this article. The provisions of paragraph (3) of Article 4 shall apply also to this article provided the balance of entitlement of any importing country with respect to all exporting countries is not thereby exceeded. (5) In determining whether it has fulfilled its required percentage under paragraph (1) of Article 4, purchases made by any importing

country while a maximum price declaration is in effect, subject to the limitations in paragraphs (2) (b) and (3) (b) of this article, (a) shall be taken into account if those purchases were made from any exporting country, including an exporting country in respect of which the declaration was made, and (b) shall be entirely disregarded if those purchases were made from a country other than an exporting country. Article 6 Prices of Wheat (1)-(a) The basic minimum and maximum prices for the duration of this agreement shall be: Minimum $1.62J Maximum $2.02£ Canadian currency per bushel at the parity for the Canadian dollar, determined for the purposes of the international monetary fund as at 1 March 1949, for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur. The basic minimum and maximum prices, and the equivalents thereof hereafter referred to, shall exclude such carrying charges and marketing costs as may be agreed between the buyer and the seller. (b) Durum wheat and certified seed wheat are excluded from the provisions relating to maximum prices. (c) Carrying charges as agreed between the buyer and seller may accrue for the buyer's account only after an agreed date specified in the contract under which the wheat is sold. (2) The equivalent maximum price for bulk wheat for: (a) No. 1 Manitoba Northern wheat in store Vancouver shall be the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article; (b) No. 1 Manitoba Northern wheat f.o.b. Port Churchill, Manitoba, shall be the price equivalent to the c. & f. price in the country of destination of the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using currently prevailing transportation costs and exchange rates; (c) Argentine wheat in store ocean ports shall be the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, converted into Argentine currency at the prevailing rate of exchange, making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (d) f.a.q. Australian wheat in store ocean ports shall be the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in store graph (1) of this article, converted into Australian currency at the prevailing rate of exchange, making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (e) French wheat on sample or on description f.o.b. French ports or at the French border (whichever is applicable) shall be the price equivalent to the c. & f. price in the country of destination, or the c. & f. price at an appropriate port for delivery to the country of destination, of the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this Article, computed by using currently prevailing transportation costs and exchange rates and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (f) Italian wheat on sample or on description f.o.b. Italian ports or at the Italian border (whichever is applicable) shall be the price equivalent to the c. & f. price in the country of destination, or the c. & f. price at an appropriate port for delivery to the country of destination, of the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using currently prevailing transportation costs and exchange rates and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (g) (i) Mexican wheat on sample or on description f.o.b. Mexican gulf ports or at the Mexican border (whichever is applicable) shall be the price equivalent to the c. & f. price in the country of destination of the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using currently prevailing transportation costs and exchange rates and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (ii) Mexican wheat on sample or on description in store Mexican Pacific ports shall be the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, converted into Mexican currency at the prevailing rate of exchange, making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (h) Spanish wheat on sample or on description f.o.b. Spanish ports or at the Spanish border (whichever is applicable) shall be the price equivalent to the c. & f. price in the country of destination, or the c. & f. price at an appropriate port for delivery to the country of destination, of the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using currently prevailing transportation costs and exchange rates and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (i) Swedish wheat on sample or on description f.o.b. Swedish ports between Stockholm and Gothenburg, both included, shall be the price equivalent to the c. & f. price in the country of destination of the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using currently prevailing transportation costs and exchange rates and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (j) No. 1 heavy dark northern spring wheat in store Duluth/Superior shall be the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using the prevailing rate of exchange and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (k) No. 1 hard winter wheat f.o.b. gulf/ Atlantic ports of the United States of America shall be the price equivalent to the c. & f. price in the United Kingdom of Great Britain and Northern Ireland of the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using currently prevailing transportation costs and exchange rates and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (l) No. 1 soft white wheat or No. 1 hard winter wheat in store Pacific ports of the United States of America shall be the maximum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using the prevailing rate of exchange and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned; (m) Soviet south winter wheat f.o.b. Black sea ports or Baltic ports or at U.S.S.R. border (whichever is applicable) shall be the price equivalent to the c. and f. price in the country of destination for the maximum price of No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using currently prevailing transportation costs and exchange rates and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned. (3) The equivalent minimum price for bulk wheat for: (a) No. 1 Manitoba Northern wheat f.o.b. Vancouver, (b) No. 1 Manitoba Northern wheat f.o.b. Port Churchill, Manitoba, (c) Argentine wheat f.o.b. Argentina, (d) f.a.q. wheat f.o.b. Australia, (e) Mexican wheat on sample or on description f.o.b. Mexican ports, or at the Mexican border (whichever is applicable), (f) No. 1 hard winter wheat f.o.b. gulf/ Atlantic ports of the United States of America, and (g) No. 1 soft white wheat or No. 1 hard winter wheat f.o.b. Pacific ports of the United States of America, (h) Soviet south winter wheat f.o.b. Black sea ports or Baltic ports or at U.S.S.R. border (whichever is applicable), shall be respectively: the f.o.b. price Vancouver, Port Churchill, Argentina, Australia, Mexican ports, United States of America gulf/Atlantic ports, United States of America Pacific ports and the Black sea ports and Baltic ports of the Union of Soviet Socialist Republics equivalent to the c. and f. price in the United Kingdom of Great Britain and Northern Ireland of the minimum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using currently prevailing transportation costs and exchange rates and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned,

(i) No. 1 heavy dark northern spring wheat in store Duluth/Superior shall be the minimum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using the prevailing rate of exchange and by making such allowance for difference in quality as may be agreed between the exporting and the importing country concerned, (j) French wheat on sample or on description f.o.b. French ports, or at the French border (whichever is applicable), (k) Italian wheat on sample or on description f.o.b. Italian ports, or at the Italian border (whichever is applicable), (l) Spanish wheat on sample or on description f.o.b. Spanish ports, or at the Spanish border (whichever is applicable), (m) Swedish wheat on sample or on description f.o.b. Swedish ports between Stockholm and Gothenburg, both included, shall be: the price equivalent to the c. and f. price in the country of destination, or the c. and f. price at an appropriate port for delivery to the country of destination, of the minimum price for No. 1 Manitoba Northern wheat in bulk in store Fort William/Port Arthur specified in paragraph (1) of this article, computed by using currently prevailing transportation costs and exchange rates and by making such allowance for difference in quality as may be agreed between the exporting country and the importing country concerned. (4) For the period of closed navigation between Fort William/Port Arthur and the Canadian Atlantic ports, equivalent maximum and minimum prices shall be determined by references only to the lake and rail movement of wheat from Fort William/Port Arthur to Canadian winter ports. (5) The executive committee may in consultation with the advisory committee on price equivalents, determine the minimum and maximum price equivalents for wheat at points other than those specified above and may also designate any description, class, type, grade or quality of wheat other than those specified in paragraphs (2) and (3) of this article and determine the minimum and maximum price equivalents thereof; provided that, in the case of any other wheat the price equivalent of which has not yet been determined, the minimum and maximum prices for the time being shall be derived from the minimum and maximum prices of the description, class, type, grade or quality of wheat specified in this article, or subsequently designated by the executive committee in consultation with the advisory committee on price equivalents, which is most closely comparable to such other wheat by the addition of an appropriate premium or by the deduction of an appropriate discount. (6) If any exporting or importing country represents to the executive committee that any price equivalent established under paragraph (2), (3) or (5) of this article, is, in the light of current transportation or exchange rates or market premiums or discounts, no longer fair, the executive committee shall consider the matter and may, in consultation with the advisory committee on price equivalents, make such adjustments as it considers desirable. (7) In establishing equivalent minimum and maximum prices under paragraphs (2), (3), (5) or (6) of this article and subject to the provisions of Article 16 relating to Durum wheat and certified seed wheat, no allowance for difference in quality shall be made which would result in the equivalent minimum and maximum price of any wheat being fixed at a level higher than the basic minimum or maximum price, respectively, specified in paragraph (1). (8) If a dispute arises as to what premium or discount is appropriate for the purposes of paragraphs (5) and (6) of this article in respect of any description of wheat specified in paragraph (2) or (3) or designated under paragraph (5) the executive committee, in consultation with the advisory committee on price equivalents, shall on the request of the exporting or importing country concerned decide the issue. (9) All decisions of the executive committee under paragraphs (5), (6) and (8) of this article shall be binding on all exporting and importing countries, provided that any of those countries which considers that any such decision is disadvantageous to it may ask the council to review that decision. Article 7 Prices of Wheat Flour (1) Commercial purchases of wheat flour will be deemed to be at prices consistent with the prices for wheat specified in or determined under Article 6 unless a statement to the contrary, with supporting information, is received by the council from any exporting or importing country, in which case the council shall, with the assistance of any countries concerned, consider the matter and decide whether the price is so consistent. (2) The council may in co-operation with any exporting and importing countries carry out studies of the prices of wheat flour in relation to the prices of wheat. Article 8 Countries which both export and import wheat (1) For the duration of this agreement and for the purposes of its application, a country listed in annex B shall be regarded as an exporting country and a country listed in annex C shall be regarded as an importing country. (2) Any country listed in annex C which makes wheat available for purchase by any exporting or importing country shall do so at prices consistent with the price range, except in the case of denatured feed wheat, and in making such wheat available for purchase shall avoid taking any action which would be prejudicial to the operation of this agreement. (3) Any country listed in annex B which desires to purchase wheat shall endeavour so far as possible to purchase its requirements from exporting countries at prices within the price range and, in meeting its requirements, to avoid taking any action which would be prejudicial to the operation of this agreement. PART III.-ADJUSTMENTS Article 9 Adjustment in Case of Short Crop (1) Any exporting country which fears that it may be prevented by a short crop from carrying out its obligations under this agreement in respect of a particular crop year shall report the matter to the council at the earliest possible date and apply to the council to be relieved of a part or the whole of its obligations for that crop year. An application made to the council pursuant to this paragraph shall be heard without delay. (2) The council shall, in dealing with a request for relief under this article, review the exporting country's supply situation and the extent to which the exporting country has observed the principle that it should, to the maximum extent feasible, make wheat available for purchase to meet its obligations under this agreement. (3) The council shall also, in dealing with a request for relief under this article, have regard to the importance of the exporting country's maintaining the principles stated in paragraph (2) of this article. (4) If the council finds that the country's representations are well founded, it shall decide to what extent and on what conditions that country shall be relieved of its obligations for the crop year concerned. The council shall inform the exporting country of its decision. (5) If the council decides that the exporting country shall be relieved of the whole or part of its obligations under Article 5 for the crop year concerned, the council shall increase the commitments as represented by the datum quantities of the other exporting countries to the extent agreed by each of them. If such increases do not offset the relief granted under paragraph (4) of this article, it shall reduce by the amount necessary the entitlements, as represented by the datum quantities of the importing countries to the extent agreed by each of them. (6) If the relief granted under paragraph (4) of this article cannot be entirely offset by measures taken under paragraph (5), the council shall reduce pro rata the entitlement as represented by the datum quantities of the importing countries, account being taken of any reductions under paragraph (5). (7) If the commitment as represented by the datum quantity of an exporting country is reduced under paragraph (4) of this article, the amount of such reduction shall be regarded for the purpose of establishing its datum quantity and that of all other exporting countries in subsequent crop years as having been purchased from that exporting country in the crop year concerned. In the light of the circumstances, the council shall determine whether any adjustment shall be made, and if so in what manner, for the purpose of establishing the datum quantities of importing countries in such subsequent crop years as a result of the operation of this paragraph. (8) If the entitlement as represented by the datum quantity of an importing country is reduced under paragraphs (5) or (6) of this article to offset the relief granted to an exporting country under paragraph (4), the amount of such reduction shall be regarded as having been purchased in the crop year concerned from that exporting country for the purposes of establishing the datum quantity of that importing country in subsequent crop years. Article 10 Adjustment in Case of Necessity to Safeguard Balance of Payments or Monetary Reserves (1) Any importing country which fears that it may be prevented by the necessity to safeguard its balance of payments or monetary reserves from carrying out its obligations under this agreement in respect of a particular crop year shall report the matter to the council at the earliest possible date and apply to