Common use of Bilateral safeguards Clause in Contracts

Bilateral safeguards. 1. Each Party may apply, on an exceptional basis and under the conditions set out in this Chapter during the transition period, bilateral safeguard measures on the importation of goods benefiting from this Agreement, meaning the total or partial suspension of compliance with tariff preference commitments. 2. Bilateral safeguard measures applied pursuant to this Article shall consist of the suspension or reduction of the tariff preference. The preference applicable at the time of the adoption of the bilateral safeguard measure shall be maintained for a quota of imports, which shall be the average of the imports made in the three (3) years immediately preceding the period in which the existence of serious injury or threat of serious injury was determined. 3. Upon termination of the period of application of the bilateral safeguard measure, the preference negotiated in this Agreement shall be reestablished for the merchandise subject to such measure. 4. Bilateral safeguard measures shall have an initial maximum duration of 1 (one) year, including the period during which the provisional measures would have been in force. They may be extended for an additional year when it is determined, in accordance with the provisions of this Chapter, that they continue to be necessary to remedy serious injury or threat of serious injury and that there is evidence that the domestic industry is in the process of adjustment. 5. The total period of application of a bilateral safeguard measure shall not exceed two (2) years. The Parties shall not apply, more than once, a bilateral safeguard measure against any particular good originating in another Party, unless expressly authorized by the Commission.