Common use of Balance of Payments Clause in Contracts

Balance of Payments. 1. Either Contracting Party, when faced with serious balance of payments difficulties or under treat thereof, may take restrictive measures with regard to the transfer of payments for its current account transactions in the framework of this Agreement, subject to conditions and procedures set out in this Article. 2. Either Contracting Party intending to resort to such measures, shall enter into consultations with the other party with a view to designing a mutually acceptable mechanism to address the situation. In the event of it not being practical to enter into prior consultations, they shall promptly do so following the adoption of such measures. While in consultation, the Contracting Parties shall give exhaustive consideration to all other possible alternative solutions to deal with the situation. 3. If the Contracting Parties fail to come to a mutually satisfactory agreement within three months of the beginning of such consultations, the party affected by serious balance of payments difficulties, may adopt or maintain the measure concerned provided that it will: a. Avoid unnecessary damage to the commercial, economic or financial interests of the other party; b. not be more burdensome than necessary to deal with the balance of payments difficulties or threat thereof; c. be temporary and be phased out progressively as the balance of payments situation mitigates, and d. be applied in a manner that the other party is treated no less favorably than any non-contracting party. 4. In case the balance of negotiated concessions is substantially affected by the measures of a Contracting Party, falling under the provisions of this Article, the other Contracting Party shall have the right to deviate from its obligations under this Agreement with respect to substantially equivalent trade, until such time those restrictive measures are relaxed.

Balance of Payments. 1. Either Contracting Partyparty, when faced with serious balance of payments difficulties or under treat threat thereof, may take restrictive measures with regard to the transfer of payments for its current account transactions in the framework of this Agreement, subject to conditions and procedures set out in this Article. 2. Either Contracting Party intending to resort to such measures, shall enter into consultations with the other party Contracting Party with a view to designing a mutually acceptable mechanism to address the situation. In the event of it not being practical to enter into prior consultationsconsultation, they shall promptly do so following the adoption of such measures. While in consultation, the Contracting Parties shall give exhaustive consideration considerations to all other possible alternative solutions to deal with the situationsituation concerned. 3. If the Contracting Parties fail to come to a mutually satisfactory agreement within three months of the beginning of such consultations, the party Contracting Party affected by serious balance of payments difficulties, may adopt or maintain the measure concerned provided that it will: a. Avoid unnecessary damage to the commercial, economic or financial interests of the other partyContracting Party; b. not Not be more burdensome than necessary to deal with the balance of payments difficulties or threat thereof; c. be Be temporary and be phased out progressively as the balance of payments situation mitigates, and d. be applied in a manner that the other party is treated no less favorably than any non-contracting party. 4. In case the balance of negotiated concessions is substantially affected by the measures of a Contracting Partyparty, falling under the provisions of this Articlearticle, the other Contracting Party shall have the right to deviate from its obligations under this Agreement with respect to substantially equivalent trade, until such time those restrictive measures are relaxed.