Application of a Bilateral Safeguard Measure. 1. During the transition period only, if as a result of the reduction or elimination of a customs duty provided for in this Agreement, any product originating in a Party is being imported into the territory of the other Party in such increased quantities in absolute terms or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to domestic industry producing a like or directly competitive product, the importing Party may apply a bilateral safeguard measure described in paragraph 2 of this Article. 2. If the conditions in paragraph 1 are met, a Party may, only to the extent necessary to prevent or remedy serious injury 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 customs 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 bilateral safeguard measure is applied.
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Samples: Free Trade Agreement, Free Trade Agreement, Free Trade Agreement
