Common use of Bilateral Safeguard Measures Clause in Contracts

Bilateral Safeguard Measures. 1. During the transition period1, where, as a result of the reduction or elimination of a customs duty under this Agreement, a product originating in the territory of a Party is being imported into the territory of another Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to constitute a substantial cause2 of serious injury or threat thereof to the domestic industry of like or directly competitive products in the territory of the importing Party, the importing Party may take safeguard measures to the minimum extent necessary to remedy or prevent the injury, subject to the provisions of this Article. 2. Safeguard measures shall only be taken upon clear evidence that increased imports have caused or are threatening to cause serious injury pursuant to an investigation in accordance with the procedures and definitions laid down in Articles 3 and 4 of the Safeguard Agreement. 3. The Party intending to take or extend a safeguard measure under this Article shall, immediately and in any case no later than 30 days before taking a measure, make notification to the other Parties and the Joint Committee. The notification shall contain all pertinent information, which shall include evidence of serious injury or threat thereof caused by increased imports, a precise description of the product involved, and the proposed measure, as well as the date of completion of the investigation procedure referred to in paragraph 2, expected duration and timetable for the progressive removal of the measure. 4. A Party applying a bilateral safeguard measure shall, after consultations with the other Party, provide mutually agreed trade liberalisation 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. The Party applying the measure shall provide an opportunity for such consultations no later than 15 days after the application of the bilateral safeguard measure. 5. If the conditions in paragraphs 1 and 2 are met, the importing Party may to the extent necessary to prevent or remedy serious injury or threat thereof: (a) suspend the further reduction of any rate of duty provided for under this Agreement for the product; or

Bilateral Safeguard Measures. 1. During the transition period1period (1), where, as a result of the reduction or elimination of a customs duty under this Agreement, a product originating in the territory of a Party is being imported into the territory of another Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to constitute a substantial cause2 cause (2) of serious injury or threat thereof to the domestic industry of like or directly competitive products in the territory of the importing Party, the importing Party may take safeguard measures to the minimum extent necessary to remedy or prevent the injury, subject to the provisions of this Article. 2. Safeguard measures shall only be taken upon clear evidence that increased imports have caused or are threatening to cause serious injury pursuant to an investigation in accordance with the procedures and definitions laid down in Articles 3 and 4 of the Safeguard Agreement. 3. The Party intending to take or extend a safeguard measure under this Article shall, immediately and in any case no later than 30 days before taking a measure, make notification to the other Parties and the Joint Committee. The notification shall contain all pertinent information, which shall include evidence of serious injury or threat thereof caused by increased imports, a precise description of the product involved, and the proposed measure, as well as the date of completion of the investigation procedure referred to in paragraph 2, expected duration and timetable for the progressive removal of the measure. 4. A Party applying a bilateral safeguard measure shall, after consultations with the other Party, provide mutually agreed trade liberalisation 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. The Party applying the measure shall provide an opportunity for such consultations no later than 15 days after the application of the bilateral safeguard measure. 5. If the conditions in paragraphs 1 and 2 are met, the importing Party may to the extent necessary to prevent or remedy serious injury or threat thereof: (a) suspend the further reduction of any rate of duty provided for under this Agreement for the product; or (b) increase the rate of customs duty for the product to a level not to exceed the lesser of: (i) the Most-Favoured Nation (hereinafter referred to as "MFN") applied rate of duty in effect at the time the measure is imposed; or (ii) the MEN applied rate of duty in effect on the day immediately preceding the date of the entry into force of this Agreement. 6. No Party may maintain a bilateral safeguard measure: (a) except to the extent, as may be necessary to prevent or remedy serious injury and to facilitate adjustment; (b) for a period exceeding two years. The period may be extended by up to one year if the competent authority of the importing Party determines, in conformity with the procedures set out in paragraphs 2 and 3 above, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the domestic industry is adjusting; or (c) beyond the expiration of the transition period. 7. No bilateral safeguard measure shall be applied to the import of a product, which has previously been subject to such a measure. 8. Within 30 days from the date of notification specified in paragraph 3, the Party conducting a safeguard proceeding under this Chapter, shall enter into consultations with a Party whose product is subject to that proceeding, in order to facilitate a mutually acceptable resolution of the matter and shall notify to Joint Committee the results of the consultations. In the absence of such resolution, the importing Party may adopt a measure pursuant to paragraph 5. 9. In the absence of such resolution, the importing Party may adopt a measure pursuant to paragraph 5 to remedy the problem, and, in the absence of mutually agreed compensation, the Party against whose product the measure is taken may take compensatory action. The safeguard measure and the compensatory action shall be immediately notified to the other Parties and the Joint Committee. In the selection of the safeguard measure and the compensatory action, priority must be given to the action which least disturbs the functioning of this Agreement. The compensatory action shall normally consist of suspension of concessions having substantially equivalent trade effects or concessions substantially equivalent to the value of the additional duties expected to result from the safeguard measure. The Party taking compensatory action shall apply the action only for the minimum period necessary to achieve the substantially equivalent trade effects and in any event, only while the measure under paragraph 5 is being applied. 10. In order to facilitate adjustment in a situation where the expected duration of a safeguard measure is one year or more, the Party applying the measure shall progressively liberalise it at regular intervals during the period of application. 11. 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. 12. In critical circumstances, where delay would cause damage which would be difficult to repair, a Party may take a provisional safeguard measure pursuant to a preliminary determination that there is clear evidence that increased imports constitute a substantial cause of serious injury, or threat thereof, to the domestic industry. The Party intending to take such a measure shall immediately notify all the Parties and the Joint Committee. During the time of the application of the provisional safeguard measure, the pertinent requirements and procedures set out in paragraphs 2 to 9 shall be met. 13. Any provisional safeguard measures shall be terminated within 180 days at the latest. The following modalities shall apply: (a) the period of application of any provisional measure shall be counted as part of the duration of the measure set out in paragraph 6 and any extension thereof. (b) such measures may only be imposed as a tariff increase pursuant to paragraph 5. Any additional duty actually paid shall be promptly refunded, and any guarantee shall be liberated, if the investigation described in paragraph 2 does not result in a finding that the conditions of paragraph 1 are met. (c) any mutually agreed compensation, or compensatory action, shall be based on the total period of application of the provisional safeguard measure and of the safeguard measure.