Common use of Bilateral Safeguard Measures Clause in Contracts

Bilateral Safeguard Measures. 1. Subject to paragraphs 2, 3, 4, 5, 6, 7 and 8, if, as a result of the reduction or elimination of a customs duty under this Agreement, an originating good of the other Party is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that the imports of such originating good from the other Party constitute a substantial cause of serious injury or threat thereof, to a domestic industry producing a like or directly competitive good, such Party may: (a) suspend further reduction of any rate of customs duty provided for under this Agreement for such originating good; or (b) increase the rate of customs duty on such originating good to a level not to exceed the lesser of: (i) the most-favoured-nation (“MFN”) applied rate of duty on the good in effect at the time the action is taken; and (ii) the MFN applied rate of duty on the good in effect on the day immediately preceding the date of entry into force of this Agreement. 2. A Party shall take a measure only following an investigation by that Party’s competent authorities in accordance with Article 3 and paragraph 2 of Article 4 of the WTO Agreement on Safeguards. To this end, Article 3 and paragraph 2 of Article 4 of the WTO Agreement on Safeguards are incorporated into and made a part of this Agreement, mutatis mutandis. The investigation shall in all cases be completed within one year following its date of initiation. 3. A Party shall notify the other Party in writing upon initiation of an investigation provided for in paragraph 2 and shall consult with the other Party as far in advance of taking any such measure as practicable, with a view to reviewing the information arising from the investigation, exchanging views on the measure and reaching an agreement on compensation as set out in paragraph 8. If a Party takes a provisional measure pursuant to paragraph 7, the Party shall also notify the other Party prior to taking such measure, and shall initiate consultations with the other Party immediately after such measure is taken. 4. No measure may be maintained: (a) except to the extent and for such period of time as may be necessary to prevent or remedy serious injury and to facilitate adjustment; or (b) for a period exceeding two (2) years; except that the period may be extended by up to two (2) years if the competent authorities determine, in conformity with the procedures set out in paragraphs 1 through 3, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting. 5. Where the expected duration of the measure is over one year, the Party applying such measure shall progressively liberalise it at regular intervals during the period of application. 6. Upon the termination of the measure, the rate of customs duty shall be the rate which would have been in effect but for the measure. 7. In critical circumstances, where delay would cause damage which would be difficult to repair, a Party may take a measure described in paragraph 1 on a provisional basis pursuant to a preliminary determination that there is clear evidence that imports from the other Party have increased as the result of the reduction or elimination of a customs duty under this Agreement, and such imports constitute a substantial cause of serious injury, or threat thereof, to the domestic industry. The duration of such provisional measure shall not exceed 200 days, during which time the requirements of paragraph 2 shall be met. Any tariff increases shall be promptly refunded if the investigation provided for in paragraph 2 does not result in a finding that the requirements of paragraph 1 are met. The duration of any provisional measure shall be counted as part of the period described in paragraph 4. 8. The Party applying a measure described in paragraph 1 shall provide to the other Party mutually agreed trade liberalising 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 measure. If the Parties are unable to agree on compensation within thirty (30) days in the consultations under paragraph 3, the Party against whose originating good the measure is applied may take action with respect to originating goods of the other Party that has trade effects substantially equivalent to the measure. The Party taking such action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects, and in any event, only while the measure under paragraph 1 is being applied.

Appears in 3 contracts

Samples: Free Trade Agreement, Free Trade Agreement, Free Trade Agreement

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Bilateral Safeguard Measures. 1. Subject to paragraphs 2, 3, 4, 5, 6, 7 and 8, ifIf an originating good of a Party, as a result of the elimination or reduction or elimination of a customs duty under this Agreementin accordance with Article 18, an originating good of the other Party is being imported into the territory of a other Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that the imports of such the originating good from the other Party constitute a substantial cause of serious injury injury, or threat thereof, to a domestic industry producing a like or directly competitive goodof the other Party, such the other Party may, as a bilateral safeguard measure, to the minimum extent necessary to prevent or remedy the serious injury to the domestic industry of the other Party and to facilitate its adjustment: (a) suspend the further reduction of any rate of customs duty on the originating good provided for under in this Agreement for such originating goodChapter; or (b) increase the rate of customs duty on such the originating good to a level not to exceed the lesser of: (i) the most-favoured-nation (“MFN”) applied rate of customs duty on the good in effect at the time when the action bilateral safeguard measure is taken; and (ii) the MFN most-favoured-nation applied rate of customs duty on the good in effect on the day immediately preceding the date of entry into force of this Agreement. 2. (a) A Party shall may take a bilateral safeguard measure only following after an investigation has been carried out by that Party’s the competent authorities of that Party in accordance with Article 3 and paragraph 2 of Article 4 of the Agreement on Safeguards in Annex 1A to the WTO Agreement, as may be amended (hereinafter referred to in this Chapter as “the Agreement on Safeguards. To ”), and to this end, Article 3 and paragraph 2 of Article 4 of the WTO Agreement on Safeguards are incorporated into and made a part of this Agreement, mutatis mutandis. . (b) The investigation shall referred to in all cases subparagraph (a) above shall, except in special circumstances, be completed within one year 1 year, and in no case more than 18 months, following its date of initiation. 3. The following conditions and limitations shall apply to a bilateral safeguard measure: (a) A Party shall notify immediately deliver a written notice to the other Party upon: (i) initiating an investigation referred to in writing upon subparagraph 2(a) above relating to serious injury or threat thereof and the reasons for it; (ii) making a finding of serious injury or threat thereof caused by increased imports of an originating good of the other Party; and (iii) taking a decision to apply or extend a bilateral safeguard measure. (b) Subject to the provisions of Article 8, the Party making the written notice referred to in subparagraph (a) above shall provide the other Party with all relevant information, which shall include: (i) in the written notice referred to in subparagraph (a)(i) above, the reasons for the initiation of the investigation, a precise description of the originating good of the other Party subject to the investigation and its tariff classification under the Harmonized System and the date of initiation of the investigation; and (ii) in the written notice referred to in subparagraphs (a)(ii) and (iii) above, evidence of serious injury or threat thereof caused by the increased imports of an investigation provided originating good of the other Party, a precise description of the originating good of the other Party subject to the proposed bilateral safeguard measure and its tariff classification under the Harmonized System, a precise description of the proposed bilateral safeguard measure, the proposed date of its introduction and its expected duration. (c) A Party proposing to apply or extend a bilateral safeguard measure shall provide adequate opportunity for in paragraph 2 and shall consult prior consultations with the other Party as far in advance of taking any such measure as practicable, with a view to reviewing the information arising from the investigation, investigation referred to in subparagraph 2(a) above and exchanging views on the measure and reaching an agreement on compensation as set out in paragraph 8. If a Party takes a provisional measure pursuant to paragraph 7, the Party shall also notify the other Party prior to taking such bilateral safeguard measure, and shall initiate consultations with the other Party immediately after such measure is taken. 4. (d) No bilateral safeguard measure may shall be maintained: (a) maintained except to the extent and for such period of time as may be necessary to prevent or remedy serious injury and to facilitate adjustment; or (b) for a , provided that such period exceeding two (2) of time shall not exceed 3 years; except that the period . A bilateral safeguard measure may be extended by up to two (2) years if the competent authorities determine2 years, in conformity with the procedures set out in paragraphs 1 through 3, provided that the measure continues to be necessary to prevent or remedy serious injury and conditions of this Article are met. The total period of a bilateral safeguard measure, including any extensions thereof, shall not exceed 5 years. In order to facilitate adjustment and that there is evidence that the industry is adjusting. 5. Where in a situation where the expected duration of the a bilateral safeguard measure is over one 1 year, the Party applying such the bilateral safeguard measure shall progressively liberalise it the bilateral safeguard measure at regular intervals during the period of application. 6. (e) No bilateral safeguard measure shall be applied again to the import of a particular originating good of the other Party which has been subject to such a bilateral safeguard measure, for a period of time equal to the duration of the previous bilateral safeguard measure or 1 year, whichever is longer. (f) Upon the termination of a bilateral safeguard measure on an originating good of the measureother Party, the rate of customs duty for such originating good of the other Party shall be the rate which would have been in effect but as if the bilateral safeguard measure had never been applied. (a) A Party applying or extending a bilateral safeguard measure shall provide to the other Party an adequate opportunity to consult on adequate means of trade compensation in the form of concessions which are substantially equivalent to the bilateral safeguard measure without delay and no later than 30 days after such application or extension. (b) If the Parties are unable to agree on the compensation within 30 days after the commencement of the consultations pursuant to subparagraph (a) above, the Party against whose originating good the bilateral safeguard measure is taken shall be free to suspend the application of concessions under this Agreement, which are substantially equivalent to the bilateral safeguard measure. That Party may suspend the application of concessions only for the minimum period necessary to achieve the substantially equivalent effects and only while the bilateral safeguard measure is applied. (c) The Party exercising the right of suspension provided for in subparagraph (b) above shall deliver a written notice to the other Party at least 30 days before suspending the application of concession. (d) The right of suspension provided for in subparagraph (b) above shall not be exercised for the first 2 years that a bilateral safeguard measure is in effect, provided that the bilateral safeguard measure has been taken as a result of an absolute increase in imports and that such a bilateral safeguard measure conforms to the provisions of this Article. 5. Each Party shall ensure the consistent, impartial and reasonable administration of its laws and regulations relating to the bilateral safeguard measure. 76. Each Party shall adopt or maintain equitable, timely, transparent and effective procedures relating to bilateral safeguard measure. (a) In critical circumstances, where delay would cause damage which it would be difficult to repair, a Party may take a provisional bilateral safeguard measure, which shall take the form of the measure described set out in paragraph 1 on a provisional basis subparagraph 1(a) or (b) above, pursuant to a preliminary determination that there is clear evidence that increased imports from of an originating good of the other Party have increased as the a result of the elimination or reduction or elimination of a customs duty under this Agreement, and such imports constitute in accordance with Article 18 have caused or are threatening to cause serious injury to a substantial cause of serious injury, or threat thereof, domestic industry. (b) A Party shall deliver a written notice to the domestic industryother Party prior to applying a provisional bilateral safeguard measure. Consultations between the Parties on the application of the provisional bilateral safeguard measure shall be initiated immediately after the provisional bilateral safeguard measure is taken. (c) The duration of such the provisional bilateral safeguard measure shall not exceed 200 days. During that period, during which time the relevant requirements of paragraph 2 above shall be met. The duration of the provisional bilateral safeguard measure shall be counted as a part of the period referred to in subparagraph 3(d) above. (d) Subparagraph 3(f) and paragraphs 5 and 6 above shall apply mutatis mutandis to the provisional bilateral safeguard measure. Any tariff increases additional customs duties collected as a result of the provisional bilateral safeguard measure shall be promptly refunded if the subsequent investigation provided for referred to in paragraph 2 subparagraph 2(a) above does not result in a finding determine that the requirements of paragraph 1 are met. The duration of any provisional measure shall be counted as part increased imports of the period described in paragraph 4originating good of the other Party have caused or threatened to cause serious injury to a domestic industry. 8. The Party applying a measure described Written notice referred to in paragraph 1 subparagraphs 3(a), 4(c) and 7(b) above shall provide to the other Party mutually agreed trade liberalising compensation be done in the form English language. 9. Each Party retains its rights and obligations under Article XIX of concessions having substantially equivalent trade effects or equivalent to GATT 1994, the value Agreement on Safeguards and Article 5 of the additional duties expected to result from Agreement on Agriculture. 10. The Parties shall review the measure. If the Parties are unable to agree on compensation within thirty (30) days in the consultations under paragraph 3provisions of this Article, the Party against whose originating good the measure is applied may take action with respect to originating goods if necessary, after 15 years of the other Party that has trade effects substantially equivalent to the measure. The Party taking such action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects, and in any event, only while the measure under paragraph 1 is being applieddate of entry into force of this Agreement.

Appears in 2 contracts

Samples: Economic Partnership Agreement, Economic Partnership Agreement

Bilateral Safeguard Measures. 1. Subject to paragraphs 2, 3, 4, 5, 6, 7 and 8, if, If as a result of the reduction or elimination of a customs duty under this Agreement, an originating good of the other one Party is being imported into the territory of a the other Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that the imports of such originating good from the other exporting Party constitute a substantial cause of serious injury or threat thereof, to a domestic industry producing a like or directly competitive goodgood of the importing Party, such Party may: (a) suspend the further reduction of any rate of customs duty on the good provided for under this Agreement for such originating goodAgreement; or (b) increase the rate of customs duty on such originating the good to a level not to exceed the lesser of: (i) the most-favoured-nation (“MFN”) MFN applied rate of duty on the good in effect at the time the action is taken; and, or (iii ) the MFN applied rate of duty on the good in effect on the day immediately preceding the date of entry into force of this Agreement. 2. A Party shall take The fol owing conditions and limitations shal apply with regard to an investigation or a measure only following an investigation by that Party’s competent authorities described in accordance with Article 3 and paragraph 2 of Article 4 of the WTO Agreement on Safeguards. To this end, Article 3 and paragraph 2 of Article 4 of the WTO Agreement on Safeguards are incorporated into and made 1: (a) a part of this Agreement, mutatis mutandis. The investigation shall in all cases be completed within one year following its date of initiation. 3. A Party shall shal notify the other Party in writing upon initiation of an investigation provided for described in paragraph 2 2(c) and shall shal consult with the other Party as far in advance of taking any such measure as practicable, with a view to reviewing the information arising from the investigation, exchanging views on the measure and reaching an agreement on compensation as set out in paragraph 8. If 4; (b) any safeguard measure shal be taken no later than 1 year after the date of the initiation of the investigation; (c) a Party takes shal take a provisional measure pursuant only fol owing an investigation by that Party’s competent authorities in accordance with Articles 3 and 4.2(c) of the Agreement on Safeguards; and to this end, Articles 3 and 4.2(c) of the Agreement on Safeguards are incorporated into and made a part of this Agreement, mutatis mutandis; (d) in the investigation described in sub-paragraph 7(c), the a Party shall also notify the other Party prior to taking such measure, and shall initiate consultations shal comply with the other Party immediately after such measure requirements of Article 4.2(a) of the Agreement on Safeguards; and to this end, Article 4.2(a) is taken.incorporated into and made a part of this Agreement, mutatis mutandis; 4. No (e) no measure may be maintainedmaintained against a good: (ai) except to the extent and for such period of time as may be necessary to prevent or remedy serious injury and to facilitate adjustment; orand (bi ) for a period exceeding two one year, except in the case provided for under paragraph 3; or (2i i) years; beyond the expiration of the transition period, except that with the consent of the Party against whose originating good the measure is taken; (f) no measure under this Article may be applied more than once against the same good; (g) where the expected duration of the measure is over one year, the importing Party shal progressively liberalize it at regular intervals during the period may of application; (h) the transition period means two years beginning from the date of entry into force of this Agreement, except where the tariff elimination for the good against which the action is taken occurs over a longer period of time, in which case, the transition period shal be extended by up to two the period of staged tariff elimination for that good; and (2i) years if on the termination of a safeguard measure, the rate of duty shal immediately be the rate which would have been in effect but for the measure. 3. If the competent authorities of a Party determine, in conformity with the procedures set out in paragraphs 1 through 3paragraph 2, that the a safeguard measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting. 5. Where the expected duration of the measure is over one year, the Party applying such may extend the application of the safeguard measure shall progressively liberalise it at regular intervals during the period of applicationfor an additional two years. 64. Upon the termination of the measure, the rate of customs duty shall be the rate which would have been in effect but for the measure. 7. In critical circumstances, where delay would cause damage which would be difficult The Party proposing to repair, a Party may take or taking a measure described in paragraph 1 on a provisional basis pursuant shal endeavour to a preliminary determination that there is clear evidence that imports from the other Party have increased as the result of the reduction or elimination of a customs duty under this Agreement, and such imports constitute a substantial cause of serious injury, or threat thereof, to the domestic industry. The duration of such provisional measure shall not exceed 200 days, during which time the requirements of paragraph 2 shall be met. Any tariff increases shall be promptly refunded if the investigation provided for in paragraph 2 does not result in a finding that the requirements of paragraph 1 are met. The duration of any provisional measure shall be counted as part of the period described in paragraph 4. 8. The Party applying a measure described in paragraph 1 shall provide to the other Party mutually mutual y agreed trade liberalising liberalizing compensation in the form of concessions having substantially substantial y equivalent trade effects or equivalent to the value of the additional duties expected to result from the measure. If the Parties are unable to agree on compensation within thirty (30) 30 days in from the consultations under paragraph 3date the Party announces a decision to take the measure, the Party against whose originating good the measure is applied taken may take action with respect to originating goods of the other Party that has having trade effects substantially substantial y equivalent to the measuremeasure described in paragraph 1. The Party taking such the action shall shal apply the action only for the minimum period necessary to achieve the substantially substantial y equivalent effects, and in any event, only while the measure under paragraph 1 is being applied. 5. For the purposes of this Article: (a) domestic industry means the producers as a whole of the like or directly competitive product operating in the territory of a Party, or those whose col ective output of the like or directly competitive product constitutes a major proportion of the total domestic production of that product; (b) serious injury means a significant overal impairment in the position of a domestic industry, except that where an originating good is being imported into the territory of a Party in increased quantities relative to domestic production, “serious injury” shal be found to exist only when the difference between the volume of domestic production and the volume of imports of such originating good decreases over three consecutive years; and (c) substantial cause means a cause which is important and not less than any other cause.

Appears in 1 contract

Samples: Trade Agreement

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Bilateral Safeguard Measures. 1. Subject to paragraphs 2, 3, 4, 5, 6, 7 and 8, if, as a result of the reduction or elimination of a customs duty under this Agreement, an originating good of the other Party is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions that the imports of such originating good from the other Party constitute a substantial cause of serious injury or threat thereof, to a domestic industry producing a like or directly competitive good, such Party may: : (a) suspend further reduction of any rate of customs duty provided for under this Agreement for such originating good; or or (b) increase the rate of customs duty on such originating good to a level not to exceed the lesser of: : (i) the most-favoured-nation ("MFN") applied rate of duty on the good in effect at the time the action is taken; and and (ii) the MFN applied rate of duty on the good in effect on the day immediately preceding the date of entry into force of this Agreement. 2. A Party shall take a measure only following an investigation by that Party’s 's competent authorities in accordance with Article 3 and paragraph 2 of Article 4 of the WTO Agreement on Safeguards. To this end, Article 3 and paragraph 2 of Article 4 of the WTO Agreement on Safeguards are incorporated into and made a part of this Agreement, mutatis mutandis. The investigation shall in all cases be completed within one year following its date of initiation. . 3. A Party shall notify the other Party in writing upon initiation of an investigation provided for in paragraph 2 and shall consult with the other Party as far in advance of taking any such measure as practicable, with a view to reviewing the information arising from the investigation, exchanging views on the measure and reaching an agreement on compensation as set out in paragraph 8. If a Party takes a provisional measure pursuant to paragraph 7, the Party shall also notify the other Party prior to taking such measure, and shall initiate consultations with the other Party immediately after such measure is taken. 4. No measure may be maintained: : (a) except to the extent and for such period of time as may be necessary to prevent or remedy serious injury and to facilitate adjustment; or or (b) for a period exceeding two (2) years; except that the period may be extended by up to two (2) years if the competent authorities determine, in conformity with the procedures set out in paragraphs 1 through 3, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting. 5. Where the expected duration of the measure is over one year, the Party applying such measure shall progressively liberalise it at regular intervals during the period of application. 6. Upon the termination of the measure, the rate of customs duty shall be the rate which would have been in effect but for the measure.would 7. In critical circumstances, where delay would cause damage which would be difficult to repair, a Party may take a measure described in paragraph 1 on a provisional basis pursuant to a preliminary determination that there is clear evidence that imports from the other Party have increased as the result of the reduction or elimination of a customs duty under this Agreement, and such imports constitute a substantial cause of serious injury, or threat thereof, to the domestic industry. The duration of such provisional measure shall not exceed 200 days, during which time the requirements of paragraph 2 shall be met. Any tariff increases shall be promptly refunded if the investigation provided for in paragraph 2 does not result in a finding that the requirements of paragraph 1 are met. The duration of any provisional measure shall be counted as part of the period described in paragraph 4. . 8. The Party applying a measure described in paragraph 1 shall provide to the other Party mutually agreed trade liberalising 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 measure. If the Parties are unable to agree on compensation within thirty (30) days in the consultations under paragraph 3, the Party against whose originating good the measure is applied may take action with respect to originating goods of the other Party that has trade effects substantially equivalent to the measure. The Party taking such action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects, and in any event, only while the measure under paragraph 1 is being applied.

Appears in 1 contract

Samples: Free Trade Agreement

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