Compensations. 1. A Party applying a safeguard measure for an overall period beyond 2 years shall, in consultation with the other Party, provide 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 measure during the period of extension of the measure beyond the aforementioned 2 years. The Party applying the safeguard measure shall provide opportunity for such consultations no later than 30 days after the decision to extend the measure. Such consultations shall take place prior to the effective date of the extension. 2. If the Parties are unable to reach agreement on compensation within 30 days of the commencement of consultations, the exporting Party may suspend the application of substantially equivalent concessions to the trade of the Party applying the safeguard measure. 3. The exporting Party shall notify the other Party in writing in the English language at least 30 days before suspending concessions under paragraph 2. 4. The obligation to provide compensation under paragraph 1 and the right to suspend concessions under paragraph 2 shall terminate on the date of the termination of the safeguard measure.
Appears in 4 contracts
Samples: Free Trade Agreement, Free Trade Agreement, Free Trade Agreement
