Common use of Bilateral Actions Clause in Contracts

Bilateral Actions. 1. Subject to paragraphs 2 through 4, and during the transition period only, if a good originating in the territory of a Party, as a result of the reduction or elimination of a duty provided for in this Agreement, is being imported into the territory of the other Party in such increased quantities and under such conditions that the imports of the good from that Party alone constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party into whose territory the good is being imported may, to the minimum extent necessary to remedy or prevent the injury: a. suspend the further reduction of any rate of duty provided for under this Agreement on the good; b. increase the rate of duty on the good to a level not to exceed the lesser of: i. the most-favoured-nation (MFN) applied rate of duty in effect at the time the action is taken; and ii. the MFN applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement; or c. in the case of a duty applied to a good on a seasonal basis, increase the rate of duty to a level not to exceed the MFN applied rate of duty that was in effect on the good for the corresponding season immediately preceding the date of entry into force of this Agreement. 2. The following conditions and limitations shall apply to a proceeding that may result in emergency action under paragraph 1: a. a Party shall, without delay, deliver to the other Party written notice of, and a request for consultations regarding, the institution of a proceeding that could result in the application of emergency action against a good originating in the territory of the other Party; b. any such action shall be initiated no later than 1 year after the date of institution of the proceeding; c. no action may be maintained: i. for a period exceeding 3 years; or ii. beyond the expiration of the transition period, except with the consent of the Party against whose good the action is taken; d. during the transition period, the Parties may apply emergency actions to the same good no more than 2 times; e. on the termination of a first action, the rate of duty shall be the rate that, according to the Party's Schedule to Annex III.3.1 (Tariff Elimination) for the staged elimination of the tariff, would have been in effect 1 year after the initiation of the action, and beginning January 1 of the year following the termination of the action, at the option of the Party that has taken the action: i. the rate of duty shall conform to the applicable rate set out in its Schedule to Annex III.3.1 (Tariff Elimination); or ii. the tariff shall be eliminated in equal annual stages ending on the date set out in its Schedule to Annex III. 3.1 ( Tariff Elimination) for the elimination of the tariff; and f. a safeguard action may be applied a second time for up to three years, provided: i. the period of time that has elapsed since the initial application of the measure ended is equal to at least one half the initial period of application; ii. the rate of duty for the first year of the second action shall not be greater than the rate that would be in effect in accordance with that Party's Schedule to Annex III.3.1 (Tariff Elimination) at the time the first action was imposed; and iii. the rate of duty applicable to any subsequent year shall be reduced in equal steps such that the duty rate in the final year of the action is equivalent to the rate provided for in that Party's Schedule to Annex III.3.1 (Tariff Elimination) for that year. 3. A Party may take a bilateral emergency action after the expiration of the transition period to deal with cases of serious injury, or threat thereof, to a domestic industry arising from the operation of this Agreement only with the consent of the other Party. 4. The Party taking an action under this Article shall provide to the other Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the action. If the Parties are unable to agree on compensation, the Party against whose good the action is taken may take tariff action having trade effects substantially equivalent to the action taken under this Article. The Party taking the tariff action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. 5. This Article does not apply to emergency actions respecting goods covered byAnnex III.1 (Textile and Apparel Goods).

Bilateral Actions. 1. Subject to paragraphs 2 through 4, and during the transition period only, if a good originating in the territory of a Party, as a result of the reduction or elimination of a duty provided for in this Agreement, is being imported into the territory of the other Party in such increased quantities quantities, in absolute terms, and under such conditions that the imports of the good from that Party alone constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party into whose territory the good is being imported may, to the minimum extent necessary to remedy or prevent the injury: a. (a) suspend the further reduction of any rate of duty provided for under this Agreement on the good; b. (b) increase the rate of duty on the good to a level not to exceed the lesser of: i. of (i) the most-favoured-most favoured nation (MFN) applied rate of duty in effect at the time the action is taken; , and (ii. ) the MFN applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement; or c. (c) in the case of a duty applied to a good on a seasonal basis, increase the rate of duty to a level not to exceed the MFN applied rate of duty that was in effect on the good for the corresponding season immediately preceding the date of entry into force of this Agreement. 2. The following conditions and limitations shall apply to a proceeding that may result in emergency action under paragraph 1: a. (a) a Party shall, without delay, deliver to the other Party written notice of, and a request for consultations regarding, the institution of a proceeding that could result in the application of emergency action against a good originating in the territory of the other Party; b. (b) any such action shall be initiated no later than 1 one year after the date of institution of the proceeding; c. (c) no action may be maintained: i. (i) for a period exceeding 3 three years; , or (ii. ) beyond the expiration of the transition period, except with the consent of the Party against whose good the action is taken; d. (d) no action may be taken by a Party against any particular good originating in the territory of the other Party more than once during the transition period, the Parties may apply emergency actions to the same good no more than 2 times;; and e. (e) on the termination of a first the action, the rate of duty shall be the rate that, according to the Party's Schedule to Annex III.3.1 (Tariff Elimination) C-02. 2 for the staged elimination of the tariff, would have been in effect 1 one year after the initiation of the action, and beginning January 1 of the year following the termination of the action, at the option of the Party that has taken the action: i. (i) the rate of duty shall conform to the applicable rate set out in its Schedule to Annex III.3.1 (Tariff Elimination); C-02.2, or (ii. ) the tariff shall be eliminated in equal annual stages ending on the date set out in its Schedule to Annex III. 3.1 ( Tariff Elimination) C-02.2 for the elimination of the tariff; and f. a safeguard action may be applied a second time for up to three years, provided: i. the period of time that has elapsed since the initial application of the measure ended is equal to at least one half the initial period of application; ii. the rate of duty for the first year of the second action shall not be greater than the rate that would be in effect in accordance with that Party's Schedule to Annex III.3.1 (Tariff Elimination) at the time the first action was imposed; and iii. the rate of duty applicable to any subsequent year shall be reduced in equal steps such that the duty rate in the final year of the action is equivalent to the rate provided for in that Party's Schedule to Annex III.3.1 (Tariff Elimination) for that year. 3. A Party may take a bilateral emergency action after the expiration of the transition period to deal with cases of serious injury, or threat thereof, to a domestic industry arising from the operation of this Agreement only with the consent of the other Party. 4. The Party taking an action under this Article shall provide to the other Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the action. If the Parties are unable to agree on compensation, the Party against whose good the action is taken may take tariff action having trade effects substantially equivalent to the action taken under this Article. The Party taking the tariff action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. 5. This Article does not apply to emergency actions respecting goods covered byAnnex III.1 by Annex C00-B (Textile and Apparel Goods).

Bilateral Actions. 1. Subject to paragraphs 2 through 4, and during the transition period only, if a good originating in the territory of a Party, as a result of the reduction or elimination of a duty provided for in this Agreement, is being imported into the territory of the other Party in such increased quantities quantities, in absolute terms, and under such conditions that the imports of the good from that Party alone constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party into whose territory the good is being imported may, to the minimum extent necessary to remedy or prevent the injury: a. (a) suspend the further reduction of any rate of duty provided for under this Agreement on the good; b. (b) increase the rate of duty on the good to a level not to exceed the lesser of: i. (i) the most-favoured-nation mostfavourednation (MFN) applied rate of duty in effect at the time the action is taken; and , and (ii. ) the MFN applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement; or c. (c) in the case of a duty applied to a good on a seasonal basis, increase the rate of duty to a level not to exceed the MFN applied rate of duty that was in effect on the good for the corresponding season immediately preceding the date of entry into force of this Agreement. 2. The following conditions and limitations shall apply to a proceeding that may result in emergency action under paragraph 1: a. (a) a Party shall, without delay, deliver to the other Party written notice of, and a request for consultations regarding, the institution of a proceeding that could result in the application of emergency action against a good originating in the territory of the other Party; b. (b) any such action shall be initiated no later than 1 one year after the date of institution of the proceeding; c. (c) no action may be maintained: i. (i) for a period exceeding 3 three years; , or (ii. ) beyond the expiration of the transition period, except with the consent of the Party against whose good the action is taken; d. (d) no action may be taken by a Party against any particular good originating in the territory of the other Party more than once during the transition period, the Parties may apply emergency actions to the same good no more than 2 times;; and e. (e) on the termination of a first the action, the rate of duty shall be the rate that, according to the Party's Schedule to Annex III.3.1 (Tariff Elimination) C-02.2 for the staged elimination of the tariff, would have been in effect 1 one year after the initiation of the action, and beginning January 1 of the year following the termination of the action, at the option of the Party that has taken the action: i. (i) the rate of duty shall conform to the applicable rate set out in its Schedule to Annex III.3.1 (Tariff Elimination); C-02.2, or (ii. ) the tariff shall be eliminated in equal annual stages ending on the date set out in its Schedule to Annex III. 3.1 ( Tariff Elimination) C-02.2 for the elimination of the tariff; and f. a safeguard action may be applied a second time for up to three years, provided: i. the period of time that has elapsed since the initial application of the measure ended is equal to at least one half the initial period of application; ii. the rate of duty for the first year of the second action shall not be greater than the rate that would be in effect in accordance with that Party's Schedule to Annex III.3.1 (Tariff Elimination) at the time the first action was imposed; and iii. the rate of duty applicable to any subsequent year shall be reduced in equal steps such that the duty rate in the final year of the action is equivalent to the rate provided for in that Party's Schedule to Annex III.3.1 (Tariff Elimination) for that year. 3. A Party may take a bilateral emergency action after the expiration of the transition period to deal with cases of serious injury, or threat thereof, to a domestic industry arising from the operation of this Agreement only with the consent of the other Party. 4. The Party taking an action under this Article shall provide to the other Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the action. If the Parties are unable to agree on compensation, the Party against whose good the action is taken may take tariff action having trade effects substantially equivalent to the action taken under this Article. The Party taking the tariff action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. 5. This Article does not apply to emergency actions respecting goods covered byAnnex III.1 by Annex C-00-B (Textile and Apparel Goods).

Bilateral Actions. 1. Subject to paragraphs 2 through 4, and during the transition period only, if a good originating in the territory of a Party, as a result of the reduction or elimination of a duty provided for in this Agreement, is being imported into the territory of the other Party in such increased quantities quantities, in absolute terms, and under such conditions that the imports of the good from that Party alone constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party into whose territory the good is being imported may, to the minimum extent necessary to remedy or prevent the injury: a. (a) suspend the further reduction of any rate of duty provided for under this Agreement on the good; b. (b) increase the rate of duty on the good to a level not to exceed the lesser of: i. of (i) the most-favoured-most favoured nation (MFN) applied rate of duty in effect at the time the action is taken; , and (ii. ) the MFN applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement; or c. (c) in the case of a duty applied to a good on a seasonal basis, increase the rate of duty to a level not to exceed the MFN applied rate of duty that was in effect on the good for the corresponding season immediately preceding the date of entry into force of this Agreement. 2. The following conditions and limitations shall apply to a proceeding that may result in emergency action under paragraph 1: a. (a) a Party shall, without delay, deliver to the other Party written notice of, and a request for consultations regarding, the institution of a proceeding that could result in the application of emergency action against a good originating in the territory of the other Party; b. (b) any such action shall be initiated no later than 1 one year after the date of institution of the proceeding; c. (c) no action may be maintained: i. (i) for a period exceeding 3 three years; , or (ii. ) beyond the expiration of the transition period, except with the consent of the Party against whose good the action is taken; d. (d) no action may be taken by a Party against any particular good originating in the territory of the other Party more than once during the transition period, the Parties may apply emergency actions to the same good no more than 2 times; e. on the termination of a first action, the rate of duty shall be the rate that, according to the Party's Schedule to Annex III.3.1 (Tariff Elimination) for the staged elimination of the tariff, would have been in effect 1 year after the initiation of the action, and beginning January 1 of the year following the termination of the action, at the option of the Party that has taken the action: i. the rate of duty shall conform to the applicable rate set out in its Schedule to Annex III.3.1 (Tariff Elimination); or ii. the tariff shall be eliminated in equal annual stages ending on the date set out in its Schedule to Annex III. 3.1 ( Tariff Elimination) for the elimination of the tariff; and f. a safeguard action may be applied a second time for up to three years, provided: i. the period of time that has elapsed since the initial application of the measure ended is equal to at least one half the initial period of application; ii. the rate of duty for the first year of the second action shall not be greater than the rate that would be in effect in accordance with that Party's Schedule to Annex III.3.1 (Tariff Elimination) at the time the first action was imposed; and iii. the rate of duty applicable to any subsequent year shall be reduced in equal steps such that the duty rate in the final year of the action is equivalent to the rate provided for in that Party's Schedule to Annex III.3.1 (Tariff Elimination) for that year. 3. A Party may take a bilateral emergency action after the expiration of the transition period to deal with cases of serious injury, or threat thereof, to a domestic industry arising from the operation of this Agreement only with the consent of the other Party. 4. The Party taking an action under this Article shall provide to the other Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the action. If the Parties are unable to agree on compensation, the Party against whose good the action is taken may take tariff action having trade effects substantially equivalent to the action taken under this Article. The Party taking the tariff action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. 5. This Article does not apply to emergency actions respecting goods covered byAnnex III.1 (Textile and Apparel Goods).

Bilateral Actions. 1. Subject to paragraphs 2 through 4, and during the transition period only, if a good originating in the territory of a Party, as a result of the reduction or elimination of a duty provided for in this Agreement, is being imported into the territory of the other Party in such increased quantities and under such conditions that the imports of the good from that Party alone constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing a like or directly competitive good, the Party into whose territory the good is being imported may, to the minimum extent necessary to remedy or prevent the injury:: xxxxx://xxx.xxxxxxxxxxxxx.xx.xx/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/costa_rica/fta-ale/06.aspx?lang=eng 1/12 12/5/2021 Canada-Costa Rica Free Trade Agreement – Emergency Action a. suspend the further reduction of any rate of duty provided for under this Agreement on the good; b. increase the rate of duty on the good to a level not to exceed the lesser of: : i. the most-favoured-nation (MFN) applied rate of duty in effect at the time the action is taken; and and ii. the MFN applied rate of duty in effect on the day immediately preceding the date of entry into force of this Agreement; or c. in the case of a duty applied to a good on a seasonal basis, increase the rate of duty to a level not to exceed the MFN applied rate of duty that was in effect on the good for the corresponding season immediately preceding the date of entry into force of this Agreement. 2. The following conditions and limitations shall apply to a proceeding that may result in emergency action under paragraph 1: a. a Party shall, without delay, deliver to the other Party written notice of, and a request for consultations regarding, the institution of a proceeding that could result in the application of emergency action against a good originating in the territory of the other Party; b. any such action shall be initiated no later than 1 year after the date of institution of the proceeding; c. no action may be maintained: i. for a period exceeding 3 years; or ii. beyond the expiration of the transition period, except with the consent of the Party against whose good the action is taken;; xxxxx://xxx.xxxxxxxxxxxxx.xx.xx/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/costa_rica/fta-ale/06.aspx?lang=eng 2/12 12/5/2021 Canada-Costa Rica Free Trade Agreement – Emergency Action d. during the transition period, the Parties may apply emergency actions to the same good no more than 2 times; e. on the termination of a first action, the rate of duty shall be the rate that, according to the Party's Schedule to Annex III.3.1 (Tariff Elimination) for the staged elimination of the tariff, would have been in effect 1 year after the initiation of the action, and beginning January 1 of the year following the termination of the action, at the option of the Party that has taken the action: i. the rate of duty shall conform to the applicable rate set out in its Schedule to Annex III.3.1 (Tariff Elimination); or ii. the tariff shall be eliminated in equal annual stages ending on the date set out in its Schedule to Annex III. 3.1 ( Tariff Elimination) for the elimination of the tariff; and f. a safeguard action may be applied a second time for up to three years, provided: i. the period of time that has elapsed since the initial application of the measure ended is equal to at least one half the initial period of application; ii. the rate of duty for the first year of the second action shall not be greater than the rate that would be in effect in accordance with that Party's Schedule to Annex III.3.1 (Tariff Elimination) at the time the first action was imposed; and iii. the rate of duty applicable to any subsequent year shall be reduced in equal steps such that the duty rate in the final year of the action is equivalent to the rate provided for in that Party's Schedule to Annex III.3.1 (Tariff Elimination) for that year. 3. A Party may take a bilateral emergency action after the expiration of the transition period to deal with cases of serious injury, or threat thereof, to a domestic industry arising from the operation of this Agreement only with the consent of the other Party.. xxxxx://xxx.xxxxxxxxxxxxx.xx.xx/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/costa_rica/fta-ale/06.aspx?lang=eng 3/12 12/5/2021 Canada-Costa Rica Free Trade Agreement – Emergency Action 4. The Party taking an action under this Article shall provide to the other Party mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the action. If the Parties are unable to agree on compensation, the Party against whose good the action is taken may take tariff action having trade effects substantially equivalent to the action taken under this Article. The Party taking the tariff action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. 5. This Article does not apply to emergency actions respecting goods covered byAnnex III.1 (Textile and Apparel Goods).