Common use of Bilateral Emergency Actions Clause in Contracts

Bilateral Emergency Actions. 1. If, as a result of the elimination of a duty provided for in this Agreement, a textile or apparel good 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 market for that good, and under such conditions as to cause serious damage, or actual threat thereof, to a domestic industry producing a like or directly competitive good, the importing Party may, to the extent and for such time as may be necessary to prevent or remedy such damage and to facilitate adjustment, take emergency action, consisting of an increase in the rate of duty on the good to a level not to exceed the lesser of: (a) the most-favored-nation (MFN) applied rate of duty in effect at the time the action is taken; and (b) the MFN applied rate of duty in effect on the date of entry into force of this Agreement. 2. In determining serious damage, or actual threat thereof, the importing Party: (a) shall examine the effect of increased imports from the other Party on the particular industry, as reflected in changes in such relevant economic variables as output, productivity, utilization of capacity, inventories, market share, exports, wages, employment, domestic prices, profits and investment, none of which is necessarily decisive; and (b) shall not consider changes in technology or consumer preference as factors supporting a determination of serious damage or actual threat thereof. 3. The importing Party may take an emergency action under this Article only following an investigation by its competent authorities. 4. The importing Party shall deliver to the other Party, without delay, written notice of its intent to take emergency action, and, on request of the other Party, shall enter into consultations with that Party. 5. The following conditions and limitations shall apply to any emergency action taken under this Article: (a) no emergency action may be maintained for a period exceeding three years; (b) no emergency action may be taken or maintained beyond the period ending eight years after duties on a good have been eliminated pursuant to this Agreement; (c) no emergency action may be taken by an importing Party against any particular good of the other Party more than once; and (d) on termination of the action, the good will return to duty-free status. 6. The Party taking an emergency action under this Article shall provide to the Party against whose good the action is taken 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 emergency action. Such concessions shall be limited to textile and apparel goods, unless the Parties otherwise agree. If the Parties are unable to agree on compensation, the Party against whose good the emergency action is taken may take tariff action having trade effects substantially equivalent to the trade effects of the emergency action taken under this Article. Such tariff action may be taken against any goods of the Party taking the emergency action. The Party taking the tariff action shall apply such action only for the minimum period necessary to achieve the substantially equivalent trade effects. The importing Party's obligation to provide trade compensation and the exporting Party's right to take tariff action shall terminate when the emergency action terminates. 7. Nothing in this Agreement shall be construed to limit a Party's right to restrain imports of textile and apparel goods in a manner consistent with the Agreement on Textiles and Clothing or the Safeguards Agreement. However, a Party may not take or maintain an emergency action under this Article against a textile or apparel good that is subject, or becomes subject, to a safeguard measure that a Party takes pursuant to either such WTO agreement.

Bilateral Emergency Actions. 1. If, as a result of the reduction or elimination of a duty provided for in under this Agreement, a textile or apparel good 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 market for that good, and under such conditions as to cause serious damage, or actual threat thereof, to a domestic industry producing a like or directly competitive good, the importing Party may, to the extent and for such time as may be necessary to prevent or remedy such damage and to facilitate adjustment, take emergency action, consisting of an increase in the rate of duty on the good to a level not to exceed the lesser of: (a) the most-favored-nation (MFN) applied rate of duty in effect at the time the action is taken; and (b) the MFN applied rate of duty in effect on the date of entry into force of this Agreement. 2. In determining serious damage, or actual threat thereof, the importing Party: (a) shall examine the effect of increased imports of the good from the other exporting Party on the particular industry, as reflected in changes in such relevant economic variables as output, productivity, utilization of capacity, inventories, market share, exports, wages, employment, domestic prices, profits profits, and investment, none of which is necessarily decisive; and (b) shall not consider changes in technology or consumer preference as factors supporting a determination of serious damage or actual threat thereof. 3. The importing Party may take an emergency action under this Article only following an investigation by its competent authorities. 4. The importing Party shall deliver to the other exporting Party, without delay, written notice of its intent to take emergency action, and, on the request of the other exporting Party, shall enter into consultations with that PartyParty regarding the matter. 5. The following conditions and limitations shall apply to any emergency action taken under this Article: (a) no emergency action may be maintained for a period exceeding three years; (b) no emergency action against a good may be taken or maintained beyond the period ending eight ten years after duties on a that good have been eliminated pursuant to this Agreement; (c) no emergency action may be taken by an importing Party against any particular the same good of the other exporting Party more than once; and (d) on termination of the emergency action, the importing Party shall accord to the good will return that was subject to duty-free statusthe emergency action the tariff treatment that would have been in effect but for the action. 6. The Party taking an emergency action under this Article shall provide to the exporting Party against whose good the action is taken 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 emergency action. Such concessions shall be limited to textile and apparel goods, unless the Parties otherwise agree. If the Parties are unable to agree on compensation, the Party against whose good the emergency action is taken may take tariff action having trade effects substantially equivalent to the trade effects of the emergency action taken under this Article. Such tariff action may be taken against any goods of the Party taking the emergency action. The Party taking the tariff action shall apply such the tariff action only for the minimum period necessary to achieve the substantially equivalent trade effects. The importing Party's ’s obligation to provide trade compensation and the exporting Party's ’s right to take tariff action shall terminate when the emergency action terminates. 7. Nothing in this Agreement shall be construed to limit a Party's ’s right to restrain imports of textile and apparel goods in a manner consistent with the Agreement on Textiles and Clothing or the Safeguards Agreement. However, a Party may not take or maintain an emergency action under this Article against a textile or apparel good that is subject, or becomes subject, to a safeguard measure that a Party takes pursuant to either such WTO agreementthe Safeguards Agreement.

Bilateral Emergency Actions. 1. If, as a result of the reduction or elimination of a duty provided for in under this Agreement, a textile or apparel good 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 market for that good, and under such conditions as to cause serious damage, or actual threat thereof, to a domestic industry producing a like or directly competitive good, the importing Party may, to the extent and for such time as may be necessary to prevent or remedy such damage and to facilitate adjustment, take emergency action, consisting of an increase in the rate of duty on the good to a level not to exceed the lesser of: (a) the most-favored-nation (MFN) applied rate of duty in effect at the time the action is taken; and (b) the MFN applied rate of duty in effect on the date of entry into force of this Agreement. 2. In determining serious damage, or actual threat thereof, the importing Party: (a) shall examine the effect of increased imports of the good from the other exporting Party on the particular industry, as reflected in changes in such relevant economic variables as output, productivity, utilization of capacity, inventories, market share, exports, wages, employment, domestic prices, profits profits, and investment, none of which is necessarily decisive; and (b) shall not consider changes in technology or consumer preference as factors supporting a determination of serious damage or actual threat thereof. 3. The importing Party may take an emergency action under this Article only following an investigation by its competent authorities. 4. The importing Party shall deliver to the other exporting Party, without delay, written notice of its intent to take emergency action, and, on the request of the other exporting Party, shall enter into consultations with that PartyParty regarding the matter. 5. The following conditions and limitations shall apply to any emergency action taken under this Article: (a) no emergency action may be maintained for a period exceeding three years; (b) no emergency action against a good may be taken or maintained beyond the period ending eight ten years after duties on a that good have been eliminated pursuant to this Agreement; (c) no emergency action may be taken by an importing Party against any particular the same good of the other exporting Party more than once; and (d) on termination of the emergency action, the importing Party shall accord to the good will return that was subject to duty-free statusthe emergency action the tariff treatment that would have been in effect but for the action. 6. The Party taking an emergency action under this Article shall provide to the exporting Party against whose good the action is taken 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 emergency action. Such concessions shall be limited to textile and apparel goods, unless the Parties otherwise agree. If the Parties are unable to agree on compensation, the Party against whose good the emergency action is taken may take tariff action having trade effects substantially equivalent to the trade effects of the emergency action taken under this Article. Such tariff action may be taken against any goods of the Party taking the emergency action. The Party taking the tariff action shall apply such the tariff action only for the minimum period necessary to achieve the substantially equivalent trade effects. The importing Party's obligation to provide trade compensation and the exporting Party's right to take tariff action shall terminate when the emergency action terminates. 7. Nothing in this Agreement shall be construed to limit a Party's right to restrain imports of textile and apparel goods in a manner consistent with the Agreement on Textiles and Clothing or the Safeguards Agreement. However, a Party may not take or maintain an emergency action under this Article against a textile or apparel good that is subject, or becomes subject, to a safeguard measure that a Party takes pursuant to either such WTO agreementthe Safeguards Agreement.

Bilateral Emergency Actions. 1. If, as a result of the reduction or elimination of a customs duty provided for in under this Agreement, a textile or apparel good 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 market for that good, and under such conditions as to cause serious damage, or actual threat thereof, to a domestic industry producing a like or directly competitive good, the importing Party may, to the extent and for such time as may be necessary to prevent or remedy such damage and to facilitate adjustment, take emergency action, consisting of an increase in the rate of customs duty on the good to a level not to exceed the lesser of: (a) the most-favoredfavoured-nation (MFN) applied rate of duty in effect at the time the action is taken; and (b) the MFN applied rate of duty in effect on the date of entry into force of this Agreement. 2. In determining serious damage, or actual threat thereof, the importing Party: (a) shall examine the effect of increased imports from the other exporting Party on the particular industry, as reflected in changes in such relevant economic variables as output, productivity, utilization of capacity, inventories, market share, exports, wages, employment, domestic prices, profits profits, and investment, none of which is necessarily decisive; and (b) shall not consider changes in technology or consumer preference as factors supporting a determination of serious damage or actual threat thereof. 3. The importing Party may take an emergency action under this Article only following an investigation by its competent authorities. 4. The In the event that the importing Party decides to take an emergency action under this Article, the importing Party shall deliver to the other exporting Party, without delay, written notice of its intent to take emergency actiondecision, and, on the request of the other exporting Party, shall enter into consultations consult with that Party. 5. In critical circumstances where delay would cause damage which it would be difficult to repair, a Party may take emergency action under this Article on a provisional basis pursuant to a preliminary determination that there is clear evidence that imports from the exporting Party have increased as the result of the reduction or elimination of a customs duty under this Agreement, and such imports are causing serious damage, or actual threat thereof, to a domestic industry producing a like or directly competitive good. The duration of such a provisional measure shall not exceed 200 days, during which time an investigation by its competent authorities shall be undertaken. Any additional customs duty paid as a result of a provisional measure shall be promptly refunded if the investigation does not result in a finding of serious damage or actual threat thereof consistent with paragraph 1. The duration of any provisional measure shall be counted as part of the period described in paragraph 6(a). 6. The following conditions and limitations shall apply to any emergency action taken under this Article: (a) no emergency action against a good may be maintained for a period exceeding three two years, except that the period may be extended by up to two years if the competent authorities of the importing Party determine, in conformity with the procedures set out in this Article, that: (i) the emergency action continues to be necessary to prevent or remedy serious damage and to facilitate adjustment by the domestic industry, and (ii) there is evidence that the industry is adjusting; (b) no emergency action against a good may be taken or maintained beyond the period ending eight ten years after customs duties on a that good have been eliminated pursuant to this Agreement; (c) no emergency action may be taken by an importing Party against any particular good of the other exporting Party more than once; and (d) on termination of the emergency action, the good will return to duty-free statusrate of customs duty shall be the rate that would have been in effect but for the emergency action. 67. The importing Party taking an emergency action under this Article shall provide to the exporting Party against whose good the action is taken mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional customs duties expected to result from the emergency action. Such concessions shall be limited to textile and or apparel goods, unless the Parties otherwise agree. If the Parties are unable to agree on compensation, the exporting Party against whose good the emergency action is taken may take tariff action having trade effects substantially equivalent to the trade effects of the emergency action taken under this Article. Such The exporting Party may take such tariff action may be taken against any goods of the Party taking the emergency actionimporting Party. The exporting Party taking shall apply the tariff action shall apply such action only for the minimum period necessary to achieve the substantially equivalent trade effects. The importing Party's ’s obligation to provide trade compensation and the exporting Party's ’s right to take tariff action shall terminate when the emergency action terminates. 7. Nothing in this Agreement shall be construed to limit a Party's right to restrain imports (a) Each Party retains its rights and obligations under Article XIX of textile the GATT 1994 and apparel goods in a manner consistent with the Safeguards Agreement, and the Agreement on Textiles and Clothing or the Safeguards Agreement. However, a Clothing. (b) Neither Party may not take or maintain apply, with respect to the same good at the same time, an emergency action under this Article against a textile or apparel good that is subject, or becomes subject, to and: (i) a safeguard measure that under Chapter Nine (Safeguards); or (ii) a Party takes pursuant to either such WTO agreementmeasure under Article XIX of GATT 1994 and the Safeguards Agreement, or the Agreement on Textiles and Clothing.