Article 94: Public Undertakings

  1.         Except as otherwise provided in this Treaty, Member States shall ensure the elimination in the practices of public undertakings of :

(a) measures the effect of which is to afford protection to domestic production and which would be inconsistent with this Treaty if achieved by means of a duty or charge with equivalent effect or quantitative restrictions or Government assistance; or

(b) trade discrimination on grounds of territorial origin in so far as it frustrates the benefits expected from the removal or absence of such charges, duties and quantitative restrictions as is required by this Treaty.

  1.         In so far as Article 92 is relevant to the activities of public undertakings, that Article shall apply to them in the same way as it applies to other enterprises.
  1. Where a public undertaking has introduced a measure or practice which: (a) is inconsistent with paragraph 1; or

(b) in  law  or  in  effect, results in  limiting access to  any  market, distorts competition or fair trade, or otherwise nullifies or impairs benefits expected from the establishment of the CSME, then, in such a case, the aggrieved Member State may request consultations with the offending Member State and promptly notify COTED of the request.

  1.         The Member State alleged to have introduced a measure or practice within the meaning of paragraph 3 shall give favourable consideration to a request for consultations by the aggrieved Member State with a view to resolving their differences and arriving at a mutually acceptable solution.
  1.         If no mutually acceptable solution is reached within 30 days of the date of request for consultations, the aggrieved Member State may refer the matter to COTED, which shall cause an investigation to be carried out into the circumstance giving rise to the complaint; the investigation is to be completed within 60 days of the date of receipt of the complaint by COTED.
  1.         COTED shall, upon receipt of the report arising from the investigation, make available the report to the Member States concerned to facilitate consultations and to permit them to reach a mutually acceptable solution.
  1.         If no mutually acceptable solution is reached at the end of 15 days starting from the date of submission of the report by COTED to the parties concerned and COTED is satisfied that the rights of the aggrieved Member States under paragraph 1 have been unreasonably denied, then COTED shall request the offending Member State to withdraw the measure or practice, as the case may be.
  1.         If the offending Member State referred to in paragraph 7 fails to comply with the request of COTED within 60 days of the date thereof, then COTED may authorise the Member States to suspend, in relation to the Member State which is applying the measure or practice, the application of such provisions of this Treaty as COTED may decide.
  1.         The Member States shall ensure that new practices of the kind described in paragraph 3 of this Article are not introduced.
  1.              For the purposes of this Article, ‘public undertakings’ means central, regional, or local government authorities, public enterprises and any other organisation by means of which a Member State by law or in practice controls or appreciably influences imports from, or exports to any other part of the Community.