Common use of Measures to Safeguard Balance of Payments Clause in Contracts

Measures to Safeguard Balance of Payments. 1. Where a Party is in serious balance of payments and external financial difficulties or under threat thereof, it may: (a) in the case of trade in goods, in accordance with GATT 1994 and the WTO Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994, adopt restrictive import measures; (b) in the case of services, in accordance with GATS, adopt or maintain restrictions on trade in services on which it has undertaken commitments, including on payments or transfers for transactions related to such commitments; and (c) in the case of investments, adopt or maintain restrictions with regard to the transfer of funds related to investment, including those on capital account and the financial account. 2. Restrictions adopted or maintained under paragraph 1(b) or paragraph 1(c) shall: (a) be consistent with the Articles of Agreement of the International Monetary Fund; (b) avoid unnecessary damage to the commercial, economic and financial interests of the other Parties; (c) not exceed those necessary to deal with the circumstances described in paragraph 1; (d) be temporary and be phased out progressively as the situation specified in paragraph 1 improves; and (e) be applied on a national treatment basis and such that the other Parties are treated no less favourably than any non-Party.

Measures to Safeguard Balance of Payments. 1. Where a Party is in serious balance of payments and external financial difficulties or under threat thereof, it may: (a) in the case of trade in goods, in accordance with GATT 1994 and the WTO Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994, adopt restrictive import measures; (b) in the case of services, in accordance with GATS, adopt or maintain restrictions on trade in services on which it has undertaken commitments, including on payments or transfers for transactions related to such commitments; and (c) in the case of investments, adopt or maintain restrictions with regard to the transfer thetransfer of funds related to investment, including those on capital account and the financial account. 2. Restrictions adopted or maintained under paragraph 1(b) or paragraph 1(c) shall: (a) be consistent with the Articles of Agreement of the International Monetary Fund; (b) avoid unnecessary damage to the commercial, economic and financial interests of the other Parties; (c) not exceed those necessary to deal with the circumstances described in paragraph 1; (d) be temporary and be phased out progressively as the situation specified in paragraph 1 improves; and (e) be applied on a national treatment basis and such that the other Parties are treated no less favourably than any non-Party.