Should the Multilateral Fund finance the conversion efforts of enterprises in Article 5 countries with export to non-Article 5 countries?
147. The Executive Committee endorsed the guidelines and decided to apply them to the five projects it had approved at the present meeting which had an export component.
[146. The representative of Colombia submitted the following guidelines, which had been agreed by the working group:
"In projects which benefit enterprises that export part of their production to non-Article 5 countries, the following rules shall apply:
1. Where exports to non-Article 5 countries correspond to or are less than 10 per cent of total production, the total incremental costs shall be covered.
2. Where exports to non-Article 5 countries exceed 10 per cent of production but do not exceed 70 per cent, there shall be a reduction equivalent to the percentage of total production represented by such exports less 10 per cent.
3. Where exports to non-Article 5 countries exceed 70 per cent of production, the project shall not be eligible.
4. The average over the three years prior to submission of the project shall be used to determine production and exports to non-Article 5 countries.
5. Projects where the exports to non-Article 5 countries are in the form of agricultural or fisheries products shall be eligible for total incremental costs."]