Common use of BILATERAL TEXTILE AND APPAREL SAFEGUARD ACTIONS Clause in Contracts

BILATERAL TEXTILE AND APPAREL SAFEGUARD ACTIONS. 1. Subject to paragraphs 2 through 7 and during the transition period only, if, as a result of the reduction or elimination of a customs 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 that imports of such good from the other Party constitute a substantial cause of 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 the serious damage and to facilitate adjustment by the domestic industry: (a) suspend the further reduction of any rate of duty provided for under this Agreement on the good; or (b) increase the rate of duty on the good to a level not to exceed the lesser of: (i) the most-favored-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 date of entry into force of this Agreement. 2. In determining serious damage, or actual threat thereof, the Party: (a) shall examine the effect of increased imports 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. A Party shall deliver without delay written notice of its intent to take action under this Article to the other Party, and shall enter into consultations with that Party. 4. The following conditions and limitations apply to any action taken under paragraph 1: (a) no action may be maintained for a period exceeding two years, except that the period may be extended by up to two years if the competent authorities of the Party applying the action determine, in conformity with the procedures set out in this Article, that the action continues to be necessary to prevent or remedy serious damage and to facilitate adjustment by the domestic industry, and that there is evidence that the industry is adjusting; (b) no action may be taken by a Party against any particular good of the other Party more than once during the transition period; and (c) on termination of the action, the rate of duty shall be the rate that would have been in effect but for the action. 5. The Party taking an action under paragraph 1 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 concerned are unable to agree on compensation within 30 days in the consultations under paragraph 3, the exporting Party may take action with respect to textile and apparel goods of the other Party that has trade effects substantially equivalent to the action taken under paragraph 1. The Party taking such action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. However, the right to take such action shall not be exercised for the first 24 months that the action pursuant to paragraph 1 is in effect, provided that the action pursuant to paragraph 1 has been applied as a result of an absolute increase in imports and that such emergency action conforms to the provisions of this Article. 6. Nothing in this Article shall be construed to affect a Party’s rights and obligations under Chapter 7, except that an action under this Article shall be considered a “safeguard measure” for purposes of Article 7.2.7 (Conditions and Limitations). Nothing in Chapter 7 shall be construed to affect a Party's rights and obligations under this Article. 7. Nothing in this Article shall be construed to limit the ability of a Party to restrain imports of textile and apparel goods in a manner consistent with the WTO Agreement on Textiles and Clothing or the WTO Agreement on Safeguards. 8. For purposes of this Article: (a) substantial cause means a cause that is important and not less than any other cause; (b) transition period means the 10-year period following entry into force of the terms of this Agreement relating to textile and apparel goods under Article 5.10.

BILATERAL TEXTILE AND APPAREL SAFEGUARD ACTIONS. 1. Subject to paragraphs 2 through 7 and during the transition period only, if, as a result of the reduction or elimination of a customs 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 that imports of such good from the other Party constitute a substantial cause of 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 the serious damage and to facilitate adjustment by the domestic industry: (a) suspend the further reduction of any rate of duty provided for under this Agreement on the good; or (b) increase the rate of duty on the good to a level not to exceed the lesser of: (i) the most-favoredfavoured-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 date of entry into force of this Agreement. 2. In determining serious damage, or actual threat thereof, the Party: (a) shall examine the effect of increased imports 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. A Party shall deliver without delay written notice of its intent to take action under this Article to the other Party, and shall enter into consultations with that Party. 4. The following conditions and limitations apply to any action taken under paragraph 1: (a) no action may be maintained for a period exceeding two years, except that the period may be extended by up to two years if the competent authorities of the Party applying the action determine, in conformity with the procedures set out in this Article, that the action continues to be necessary to prevent or remedy serious damage and to facilitate adjustment by the domestic industry, and that there is evidence that the industry is adjusting; (b) no action may be taken by a Party against any particular good of the other Party more than once during the transition period; and (c) on termination of the action, the rate of duty shall be the rate that would have been in effect but for the action. 5. The Party taking an action under paragraph 1 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 concerned are unable to agree on compensation within 30 days in the consultations under paragraph 3, the exporting Party may take action with respect to textile and apparel goods of the other Party that has trade effects substantially equivalent to the action taken under paragraph 1. The Party taking such action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. However, the right to take such action shall not be exercised for the first 24 months that the action pursuant to paragraph 1 is in effect, provided that the action pursuant to paragraph 1 has been applied as a result of an absolute increase in imports and that such emergency action conforms to the provisions of this Article. 6. Nothing in this Article shall be construed to affect a Party’s rights and obligations under Chapter 7, except that an action under this Article shall be considered a “safeguard measure” for purposes of Article 7.2.7 (Conditions and Limitations). Nothing in Chapter 7 shall be construed to affect a Party's rights and obligations under this Article. 7. Nothing in this Article shall be construed to limit the ability of a Party to restrain imports of textile and apparel goods in a manner consistent with the WTO Agreement on Textiles and Clothing or the WTO Agreement on Safeguards. 8. For purposes of this Article: (a) substantial cause means a cause that is important and not less than any other cause; (b) transition period means the 10-year period following entry into force of the terms of this Agreement relating to textile and apparel goods under Article 5.10.

BILATERAL TEXTILE AND APPAREL SAFEGUARD ACTIONS. 1. Subject to paragraphs 2 through 7 and during the transition period only, if, as a result of the reduction or elimination of a customs 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 that imports of such good from the other Party constitute a substantial cause of 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 the serious damage and to facilitate adjustment by the domestic industry: (a) suspend the further reduction of any rate of duty provided for under this Agreement on the good; or (b) increase the rate of duty on the good to a level not to exceed the lesser of: (i) the most-favored-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 date of entry into force of this Agreement. 2. In determining serious damage, or actual threat thereof, the Party: (a) shall examine the effect of increased imports on the particular industry, as reflected in changes in such relevant economic variables as output, productivity, utilization of capacity, inventories, market share, exports, wages, employmentemp loyment, 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. A Party shall deliver without delay written notice of its intent to take action under this Article to the other Party, and shall enter into consultations with that Party. 4. The following conditions and limitations apply to any action taken under paragraph 1: (a) no action may be maintained for a period exceeding two years, except that the period may be extended by up to two years if the competent authorities of the Party applying the action determine, in conformity with the procedures set out in this Article, that the action continues to be necessary to prevent or remedy serious damage and to facilitate adjustment by the domestic industry, and that there is evidence that the industry is adjusting; (b) no action may be taken by a Party against any particular good of the other Party more than once during the transition period; and (c) on termination of the action, the rate of duty shall be the rate that would have been in effect but for the action. 5. The Party taking an action under paragraph 1 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 concerned are unable to agree on compensation within 30 days in the consultations under paragraph 3, the exporting Party may take action with respect to textile and apparel goods of the other Party that has trade effects substantially equivalent to the action taken under paragraph 1. The Party taking such action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. However, the right to take such action shall not be exercised for the first 24 months that the action pursuant to paragraph 1 is in effect, provided that the action pursuant to paragraph 1 has been applied as a result of an absolute increase in imports and that such emergency action conforms to the provisions of this Article. 6. Nothing in this Article shall be construed to affect a Party’s rights and obligations under Chapter 7, except that an action under this Article shall be considered a “safeguard measure” for purposes of Article 7.2.7 (Conditions and Limitations). Nothing in Chapter 7 shall be construed to affect a Party's rights and obligations under this Article. 7. Nothing in this Article shall be construed to limit the ability of a Party to restrain imports of textile and apparel goods in a manner consistent with the WTO Agreement on Textiles and Clothing or the WTO Agreement on Safeguards. 8. For purposes of this Article: (a) substantial cause means a cause that is important and not less than any other cause; (b) transition period means the 10-year period following entry into force of the terms of this Agreement relating to textile and apparel goods under Article 5.10.

BILATERAL TEXTILE AND APPAREL SAFEGUARD ACTIONS. 1. Subject to paragraphs 2 through 7 and during the transition period only, if, as a result of the reduction or elimination of a customs 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 that imports of such good from the other Party constitute a substantial cause of 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 the serious damage and to t o facilitate adjustment by the domestic industry: (a) suspend the further reduction of any rate of duty provided for under this Agreement on the good; or (b) increase the rate of duty on the good to a level not to exceed the lesser of: (i) the most-favored-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 date of entry into force of this Agreement. 2. In determining serious damage, or actual threat thereof, the Party: (a) shall examine the effect of increased imports 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. A Party shall deliver without delay written notice of its intent to take action under this Article to the other Party, and shall enter into consultations with that Party. 4. The following conditions and limitations apply to any action taken under paragraph 11 : (a) no action may be maintained for a period exceeding two years, except that the period may be extended by up to two years if the competent authorities of the Party applying the action determine, in conformity with the procedures set out in this Article, that the action continues to t o be necessary to prevent or remedy serious damage and to facilitate adjustment by the domestic industry, and that there is evidence that the industry is adjusting; (b) no action may be taken by a Party against any particular good of the other Party more than once during the transition period; and (c) on termination of the action, the rate of duty shall be the rate that would have been in effect but for the action. 5. The Party taking an action under paragraph 1 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 concerned are unable to agree on compensation within 30 days in the consultations under paragraph 3, the exporting Party may take action with respect to textile and apparel goods of the other Party that has trade effects substantially equivalent to the action taken under paragraph 1. The Party taking such action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. However, the right to take such action shall not be exercised for the first 24 2 4 months that the action pursuant to paragraph 1 is in effect, provided that the action pursuant to paragraph 1 has been applied as a result of an absolute increase in imports and that such emergency action conforms to the provisions of this Article. 6. Nothing in this Article shall be construed to affect a Party’s rights and obligations under Chapter 7, except that an action under this Article shall be considered a “safeguard measure” for purposes of Article 7.2.7 (Conditions and Limitations). Nothing in Chapter 7 shall be construed to affect a Party's rights and obligations under this Article. 7. Nothing in this Article shall be construed to limit the ability of a Party to restrain imports of textile and apparel goods in a manner consistent with the WTO Agreement on Textiles and Clothing or the WTO Agreement on Safeguards. 8. For purposes of this Article: (a) substantial cause means a cause that is important and not less than any other cause; (b) transition period means the 10-year period following entry into force of the terms of this Agreement relating to textile and apparel goods under Article 5.10.

BILATERAL TEXTILE AND APPAREL SAFEGUARD ACTIONS. 1. Subject to paragraphs 2 through 7 and during the transition period only, if, as a result of the reduction or elimination of a customs 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 that imports of such good from the other Party constitute a substantial cause of 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 the serious damage and to facilitate adjustment by the domestic industry: (a) suspend the further reduction of any rate of duty provided for under this Agreement on the good; or (b) increase the rate of duty on the good to a level not to exceed the lesser of: (i) the most-favored-nation (“MFN”âMFNâ) applied rate of duty in effect at the time the action is taken, and (ii) the MFN MEN 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 Party: (a) shall examine the effect of increased imports 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. A Party shall deliver without delay written notice of its intent to take action under this Article to the other Party, and shall enter into consultations with that Party. 4. The following conditions and limitations apply to any action taken under paragraph 1: (a) no action may be maintained for a period exceeding two years, except that the period may be extended by up to two years if the competent authorities of the Party applying the action determine, in conformity with the procedures set out in this Article, that the action continues to be necessary to prevent or remedy serious damage and to facilitate adjustment by the domestic industry, and that there is evidence that the industry is adjusting; (b) no action may be taken by a Party against any particular good of the other Party more than once during the transition period; and (c) on termination of the action, the rate of duty shall be the rate that would have been in effect but for the action. 5. The Party taking an action under paragraph 1 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 concerned are unable to agree on compensation within 30 days in the consultations under paragraph 3, the exporting Party may take action with respect to textile and apparel goods of the other Party that has trade effects substantially equivalent to the action taken under paragraph 1. The Party taking such action shall apply the action only for the minimum period necessary to achieve the substantially equivalent effects. However, the right to take such action shall not be exercised for the first 24 months that the action pursuant to paragraph 1 is in effect, provided that the action pursuant to paragraph 1 has been applied as a result of an absolute increase in imports and that such emergency action conforms to the provisions of this Article. 6. Nothing in this Article shall be construed to affect a Party’s Partyâs rights and obligations under Chapter 7, except that an action under this Article shall be considered a “safeguard measure” âsafeguard measureâ for purposes of Article 7.2.7 (Conditions and Limitations). Nothing in Chapter 7 shall be construed to affect a Party's rights and obligations under this Article. 7. Nothing in this Article shall be construed to limit the ability of a Party to restrain imports of textile and apparel goods in a manner consistent with the WTO Agreement on Textiles and Clothing or the WTO Agreement on Safeguards. 8. For purposes of this Article: (a) substantial cause means a cause that is important and not less than any other cause; (b) transition period means the 10-year period following entry into force of the terms of this Agreement relating to textile and apparel goods under Article 5.10.