Emergency Action on Imports of Particular Products. 1. Where any product originating in a Party, as a result of the reduction or elimination of a customs duty under this Agreement, is being imported into the territory of another Party in such increased quantities and under such conditions as to constitute a substantial cause 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 emergency measures to the minimum extent necessary to remedy or prevent the injury. 2. Such measures shall consist in increasing the rate of customs duty on the product to a level not to exceed the lesser of: (a) the most-favoured nation (MFN) rate of duty in effect at the time the action is taken; and (b) the MFN applied rate of duty in effect on the day immediately preceding the date of the entry into force of this Agreement. 3. Emergency measures shall be taken for a period not exceeding one year. In very exceptional circumstances, after review by the Joint Committee, measures may be taken up to a total maximum period of three years. A Party taking such measures shall present a schedule leading to their progressive elimination. No measures shall be applied to the import of a product which has previously been subject to such a measure for a period of, at least, five years since the expiry of the measure. 4. Emergency 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 laid down in the WTO Agreement on Safeguards. 5. The Party intending to take an emergency measure under this Article shall promptly make a notification to the other Parties and the Joint Committee, containing all pertinent information which shall include evidence of serious injury or threat thereof caused by increased imports, precise description of the product involved, the proposed measure, proposed date of introduction and expected duration of the investigation and the proposed measure. Any Party that may be affected by the measure shall simultaneously be offered compensation in the form of substantially equivalent trade liberalisation in relation to the imports from any such Party. 6. The Joint Committee shall, within 30 days from the date of notification, examine the information provided under paragraph 5 in order to facilitate a mutually acceptable resolution to the matter. In the absence of such resolution, the importing Party may adopt a measure pursuant to paragraph 2 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 emergency measure and the compensatory action shall be immediately notified to the Joint Committee. The compensatory action shall 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 emergency action. In the selection of the emergency measure and the compensatory action, priority must be given to the action which least disturbs the functioning of this Agreement. 7. In critical circumstances, where delay would cause damage which would be difficult to repair, a Party may take a provisional emergency measure pursuant to a preliminary determination that there is clear evidence that increased imports have caused or are threatening to cause serious injury. The Party intending to take such a measure shall immediately inform the other Parties and the Joint Committee thereof. The duration of any such provisional measure shall be counted as part of the initial period and any extension. 8. Two years after entry into force of this Agreement the Parties shall meet to review this Article with a view to determining whether there is a need to maintain an emergency action mechanism. 9. If the Parties decide, after the first review, to maintain such a mechanism, they shall thereafter conduct biennial reviews in the Joint Committee.
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Samples: Free Trade Agreement, Free Trade Agreement
Emergency Action on Imports of Particular Products. 1. Where any product originating in a Party, as a result of the reduction or elimination of a customs duty under this Agreement, is being imported into the territory of another Party in such increased quantities and under such conditions as to constitute a substantial cause 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 emergency measures to the minimum extent necessary to remedy or prevent the injury.
2. Such measures shall consist in increasing the rate of customs duty on the product to t o a level not to exceed the lesser of:
(a) the most-favoured nation (MFN) rate of duty in effect at the time the action is taken; and
(b) the MFN applied rate of duty in effect on the day immediately preceding the date of the entry into force of this Agreement.
3. Emergency measures shall be taken for a period not exceeding one year. In very exceptional circumstances, after review by the Joint Committee, measures may be taken up to a total maximum period of three years. A Party taking such measures shall present a schedule leading to their progressive elimination. No measures shall be applied to the import of a product which has previously been subject to such a measure for a period of, at least, five years since the expiry of the measure.
4. Emergency 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 laid down in the WTO Agreement on Safeguards.
5. The Party intending to take an emergency measure under this Article shall promptly make a notification to the other Parties and the Joint Committee, containing all pertinent information which shall include evidence of serious injury or threat thereof caused by increased imports, precise description of the product involved, the proposed measure, proposed date of introduction and expected duration of the investigation and the proposed measure. Any Party that may be affected by the measure shall simultaneously be offered compensation in the form of substantially equivalent trade liberalisation in relation to the imports from any such Party.
6. The Joint Committee shall, within 30 days from the date of notification, examine the information provided under paragraph 5 in order to facilitate a mutually acceptable resolution to the matter. In the absence of such resolution, the importing Party may adopt a measure pursuant to paragraph 2 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 emergency measure and the compensatory action shall be immediately notified to the Joint Committee. The compensatory action shall consist of suspension of concessions having substantially equivalent trade effects or concessions substantially equivalent to the value of the additional duties expected to t o result from the emergency action. In the selection of the emergency measure and the compensatory action, priority must be given to the action which least disturbs the functioning of this Agreement.
7. In critical circumstances, where delay would cause damage which would be difficult to t o repair, a Party may take a provisional emergency measure pursuant to a preliminary determination that there is clear evidence that increased imports have caused or are threatening to cause serious injury. The Party intending to take such a measure shall immediately inform the other Parties and the Joint Committee thereof. The duration of any such provisional measure shall be counted as part of the initial period and any extension.
8. Two years after entry into force of this Agreement the Parties shall meet to review this Article with a view to determining whether there is a need to maintain an emergency action mechanism.
9. If the Parties decide, after the first review, to maintain such a mechanism, they shall thereafter conduct biennial reviews in the Joint Committee.
Appears in 1 contract
Samples: Free Trade Agreement
Emergency Action on Imports of Particular Products. 1. Where any product originating in a Party, as a result of the reduction or elimination of a customs duty under this Agreement, is being imported into the territory of another Party in such increased quantities and under such conditions as to constitute a substantial cause 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 emergency measures to the minimum extent necessary to remedy or prevent the injury.
2. Such measures shall may consist in in:
(a) suspending the further reduction of any rate of duty provided for under this Agreement on the product; or
(b) increasing the rate of customs duty on the product to a level not to exceed the lesser of:
(ai) the most-favoured nation (MFN) rate of duty in effect at the time the action is taken; and;
(bii) the MFN applied most-favoured nation rate of duty in effect on the day immediately preceding the date of the entry into force of this Agreement.
3. Emergency The Parties shall not take emergency measures shall be taken for a period not exceeding one year. In very exceptional circumstances, after review by the Joint Committee, measures may be taken up to a total maximum period of three years. A In this case, the Party taking such measures shall present a schedule leading to their progressive elimination. No The Parties shall not apply measures shall be applied to the import of a product which has previously been subject to such a measure for a period of, at least, five years since the expiry of the measure.
4. Emergency measures The Parties shall only be taken take emergency measures upon clear evidence that increased imports have caused or are threatening to cause serious injury pursuant to an investigation in accordance with the procedures laid down in the WTO Agreement on Safeguards.
5. The Party intending to take an emergency measure measures under this Article shall promptly make a notification to the other Parties and the Joint CommitteeParties, containing all pertinent information which shall include evidence of serious injury or threat thereof caused by increased imports, precise description of the product involved, the proposed measure, the proposed date of introduction and expected duration of the investigation and the proposed measuremeasures. Any Party that may be affected by the measure shall simultaneously be offered compensation in the form of substantially equivalent trade liberalisation in relation to the imports from any such Party.
6. The Joint Committee shall, within 30 days from the date of notificationnotification to the Parties, meet to examine the information provided under paragraph 5 5, in order to facilitate a mutually acceptable resolution to solution of the matter. In the absence of such resolutionsolution, the importing Party may adopt a measure pursuant to paragraph 2 to remedy the problem, and, in the absence of mutually agreed compensation, the Party against whose product the measure is taken may take compensatory retaliatory action. The emergency measure and the any compensatory or retaliatory action shall be immediately notified to the Joint Committee. The compensatory retaliatory action shall consist of the suspension of concessions having substantially equivalent trade effects or concessions substantially equivalent to the value of the additional duties expected to result from the emergency action. In the selection of the emergency measure and the compensatory retaliatory action, priority must be given to the action which least disturbs the functioning of this Agreement.
7. In critical circumstances, circumstances where delay would cause damage which would be difficult to repair, a Party may take a provisional emergency measure not exceeding 120 days pursuant to a preliminary determination that there is clear evidence that increased imports have caused or are threatening to cause serious injury. The Party intending to take such a measure shall immediately inform notify the other Parties thereof and, within 30 days of the date of such notification, the pertinent procedures set out in paragraphs 5 and 6, including for compensatory and retaliatory action, shall be initiated. Any compensation shall be based on the Joint Committee thereoftotal period of application of the provisional measure. The duration period of application of any such provisional measure shall be counted as part of the initial period duration of the definitive measure and any extensionextension thereof.
8. Two years after entry into force of this Agreement the Parties shall meet to review this Article with a view to determining whether there is a need to maintain an emergency action mechanism.
9. If the Parties decide, after the first review, to maintain such a mechanism, they shall thereafter conduct biennial reviews in the Joint Committee.
Appears in 1 contract
Samples: Free Trade Agreement