Application of a Bilateral Safeguard Measure. 1. If, as a result of the reduction or elimination of a customs duty provided for in this Agreement, a product benefiting from preferential tariff treatment under this Agreement is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to the domestic production and under such conditions as to cause serious injury or threat thereof to a domestic industry producing a like or directly competitive product, the importing Party may apply a safeguard measure described in paragraph 2, during the transition period. 2. If the conditions in paragraph 1 are met, a Party may, only to the extent as may be necessary to prevent or remedy serious injury, or threat thereof, and to facilitate adjustment: (a) suspend the further reduction of any rate of customs duty on the product provided for under this Agreement; or (b) increase the rate of customs duty on the product to a level not exceeding the lesser of: (i) the MFN applied rate of duty in effect on the product on the day immediately preceding the date of entry into force of this Agreement; or (ii) the MFN applied rate of customs duty in effect on the product on the date on which the safeguard measure is applied.
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Samples: Zealand Free Trade Agreement, Zealand Free Trade Agreement, Zealand Free Trade Agreement
