Common use of Application of a Bilateral Safeguard Measure Clause in Contracts

Application of a Bilateral Safeguard Measure. 1. If during the transition period, as a result of the reduction or elimination of a customs duty in accordance with this Agreement, an originating product is being imported into a Party's territory 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 the domestic industry that produces a like or directly competitive product, the importing Party may apply a bilateral safeguard measure described in paragraph 2. 2. If the conditions in paragraph 1 are met, a Party may, only to the extent necessary to prevent or remedy serious injury and facilitate adjustment: (a) suspend the further reduction of any rate of duty provided for under this Agreement on the product; or (b) increase the rate of duty on the good to a level not to exceed the lesser of: (i) the most-favoured-nation (hereinafter referred to as "MFN") applied rate of duty on the product in effect at the time the measure is applied; and (ii) the MEN applied rate of duty on the product in effect on the day immediately preceding the date of entry into force of this Agreement. (1) The Parties understand that neither tariff rate quotas nor quantitative restrictions would be permissible forms of bilateral safeguard measures.

Application of a Bilateral Safeguard Measure. 1. If during the transition period, as a result of the reduction or elimination of a customs duty in accordance with this Agreement, an originating product is being imported into a Party's ’s territory 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 the domestic industry that produces a like or directly competitive product, the importing Party may apply a bilateral safeguard measure described in paragraph 2. 2. If the conditions in paragraph 1 are met, a Party may, only to the extent necessary to prevent or remedy serious injury and facilitate adjustment: (a) suspend the further reduction of any rate of duty provided for under this Agreement on the product; or (b) increase the rate of duty on the good to a level not to exceed the lesser of: (i) the most-favoured-nation (hereinafter referred to as "“MFN"”) applied rate of duty on the product in effect at the time the measure is applied; and (ii) the MEN MFN applied rate of duty on the product in effect on the day immediately preceding the date of entry into force of this Agreement. (1) The Parties understand that neither tariff rate quotas nor quantitative restrictions would be permissible forms of bilateral safeguard measures.Agreement.†