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

Measures to Safeguard the 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 Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement, adopt restrictive import measures; (b) in the case of trade in services, adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments; (c) in the case of investments, adopt or maintain restrictions on payments or transfers related to covered investments as defined in Article 2(a) (Definitions) of Chapter 11 (Investment) 2. Restrictions adopted or maintained under Paragraph 1(b) or (c) shall: (a) be consistent with the IMF Articles of Agreement; (b) avoid unnecessary damage to the commercial, economic and financial interests of any other Party; (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 non-discriminatory basis such that no Party is treated less favourably than any other Party or non-Party. 3. With respect to trade in services and investment, (a) it is recognised that particular pressures on the balance of payments of a Party in the process of economic development or economic transition may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for the implementation of its programme of economic development or economic transition; (b) in determining the incidence of such restrictions, a Party may give priority to economic sectors which are more essential to their economic or development programmes. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector. 4. Any restrictions adopted or maintained by a Party under Paragraph 1, or any changes therein, shall be notified promptly to the other Parties. 5. A Party adopting or maintaining any restrictions under Paragraph 1 shall: (a) in the case of investment, respond to any other Party that requests consultations in relation to the restrictions adopted by it, if such consultations are not otherwise taking place outside this Agreement; (b) in the case of trade in services, if consultations in relation to the restrictions adopted by it are not taking place at the WTO, a Party, if requested, shall promptly commence consultations with any interested Party.

Measures to Safeguard the 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 In the case of trade in goods, in accordance with the GATT 1994 1994, including Article XVIII:B, and the WTO Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement, adopt restrictive import measures; (b) in In the case of trade in services, adopt or maintain restrictions on trade in services on for which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments; (c) in ; and In the case of investments, adopt or maintain restrictions on payments or transfers related to covered investments as defined in Article 2(a) 1 (Definitions) of Chapter 11 9 (Investment). 2. Restrictions adopted or maintained under Paragraph paragraph 1(b) or (c1(c) shall: (a) be Be consistent with the IMF Articles of Agreement; (b) avoid Avoid unnecessary damage to the commercial, economic and financial interests of any the other PartyParties; (c) not Not exceed those necessary to deal with the circumstances described in Paragraph 1paragraph 1 of this Article; (d) be Be temporary and be phased out progressively as the situation specified in Paragraph paragraph 1 of this Article improves; and; (e) be Be applied on a non-discriminatory basis such that the other Parties are treated no Party is treated less favourably than any other Party or non-Party. 3. With respect to trade in services and investment,; and (af) it is recognised Take into account that particular pressures on the balance of payments of a Party in the process of economic development or economic transition may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for the implementation of its programme of economic development or economic transition;development. (b) in 3. In determining the incidence of such restrictions, a Party the Parties may give priority to economic sectors which are more essential to their economic or development programmesdevelopment. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector. 4. Any restrictions adopted or maintained by a Party under Paragraph 1paragraph 1 of this Article, or any changes therein, shall be notified promptly to the other PartiesParties from the date such measures are taken. 5. A The Party adopting or maintaining any restrictions under Paragraph paragraph 1 shall: (a) in the case of investment, respond to any other Party that requests consultations in relation to the restrictions adopted by it, if such consultations are not otherwise taking place outside this Agreement; (b) in the case of trade in services, if consultations in relation to the restrictions adopted by it are not taking place at the WTO, a Party, if requested, Article shall promptly commence consultations with any interested PartyParties if requested in order to review the restrictions adopted or maintained by it.

Measures to Safeguard the 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 the GATT 1994 1994, including Article XVIII:B, and the WTO Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement, adopt restrictive import measures; (b) in the case of trade in services, adopt or maintain restrictions on trade in services on for which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments;; and (c) in the case of investments, adopt or maintain restrictions on payments or transfers related to covered investments as defined in Article 2(a) 1 (Definitions) of Chapter 11 9 (Investment). 2. Restrictions adopted or maintained under Paragraph paragraph 1(b) or (c1(c) shall:: 4 For greater certainty, this includes critical public infrastructures whether publicly or privately owned. (a) be consistent with the IMF Articles of Agreement; (b) avoid unnecessary damage to the commercial, economic and financial interests of any the other PartyParties; (c) not exceed those necessary to deal with the circumstances described in Paragraph 1paragraph 1 of this Article; (d) be temporary and be phased out progressively as the situation specified in Paragraph paragraph 1 of this Article improves; and; (e) be applied on a non-discriminatory basis such that the other Parties are treated no Party is treated less favourably than any other Party or non-Party. 3. With respect to trade in services and investment,; and (af) it is recognised take into account that particular pressures on the balance of payments of a Party in the process of economic development or economic transition may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for the implementation of its programme of economic development or economic transition;development. (b) in 3. In determining the incidence of such restrictions, a Party the Parties may give priority to economic sectors which are more essential to their economic or development programmesdevelopment. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector. 4. Any restrictions adopted or maintained by a Party under Paragraph 1paragraph 1 of this Article, or any changes therein, shall be notified promptly to the other PartiesParties from the date such measures are taken. 5. A The Party adopting or maintaining any restrictions under Paragraph paragraph 1 shall: (a) in the case of investment, respond to any other Party that requests consultations in relation to the restrictions adopted by it, if such consultations are not otherwise taking place outside this Agreement; (b) in the case of trade in services, if consultations in relation to the restrictions adopted by it are not taking place at the WTO, a Party, if requested, Article shall promptly commence consultations with any interested PartyParties if requested in order to review the restrictions adopted or maintained by it.

Measures to Safeguard the 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 Understanding on the Balance-of-Payments Provisions of the General Agreement on Tariffs and Trade 1994 in Annex 1A to the WTO Agreement, adopt restrictive import measures; (b) ; in the case of trade in services, adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments; (c) ; in the case of investments, adopt or maintain restrictions on payments or transfers related to covered investments as defined in Article 2(a) (Definitions) of Chapter 11 (Investment) 2. ) Restrictions adopted or maintained under Paragraph 1(b) or (c) shall: (a) : be consistent with the IMF Articles of Agreement; (b) ; avoid unnecessary damage to the commercial, economic and financial interests of any other Party; (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) and be applied on a non-discriminatory basis such that no Party is treated less favourably than any other Party or non-Party. 3. With respect to trade in services and investment, (a) , it is recognised that particular pressures on the balance of payments of a Party in the process of economic development or economic transition may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for the implementation of its programme of economic development or economic transition; (b) ; in determining the incidence of such restrictions, a Party may give priority to economic sectors which are more essential to their economic or development programmes. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector. 4. Any restrictions adopted or maintained by a Party under Paragraph 1, or any changes therein, shall be notified promptly to the other Parties. 5. A Party adopting or maintaining any restrictions under Paragraph 1 shall: (a) : in the case of investment, respond to any other Party that requests consultations in relation to the restrictions adopted by it, if such consultations are not otherwise taking place outside this Agreement; (b) ; in the case of trade in services, if consultations in relation to the restrictions adopted by it are not taking place at the WTO, a Party, if requested, shall promptly commence consultations with any interested Party.

Measures to Safeguard the 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 in Annex 1A to the WTO AgreementGATT 1994, adopt restrictive import measures; (b) in the case of trade in services, adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments; (c) . It is recognised that particular pressures on the balance of payments of a Party in the case process of investments, adopt or maintain economic development may necessitate the use of restrictions on payments or transfers related trade in services to covered investments as defined in Article 2(a) (Definitions) ensure, inter alia, the maintenance of Chapter 11 (Investment)a level of financial reserves adequate for the implementation of its programme of economic development. 2. Restrictions adopted or maintained under Paragraph paragraph 1(b) or (c) shall: (a) be consistent with the IMF Articles of Agreement; (b) avoid unnecessary damage to the commercial, economic and financial interests of any the other Party; (c) not exceed those necessary to deal with the circumstances described in Paragraph paragraph 1; (d) be temporary and be phased out progressively as the situation specified in Paragraph paragraph 1 improves; and (e) be applied on a non-discriminatory basis such that no the other Party is treated no less favourably than any other Party or non-Partycountry that is not a party to this Agreement. 3. With respect to trade in services and investment, (a) it is recognised that particular pressures on the balance of payments of a Party in the process of economic development or economic transition may necessitate the use of restrictions to ensure, inter alia, the maintenance of a level of financial reserves adequate for the implementation of its programme of economic development or economic transition; (b) in In determining the incidence of such restrictions, a Party the Parties may give priority to economic sectors which are more essential to their economic or development programmesdevelopment. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular sector. 4. Any restrictions adopted or maintained by a Party under Paragraph paragraph 1, or any changes therein, shall be notified promptly to the other PartiesParty from the date such measures are taken. 5. A To the extent that it does not duplicate the process under the WTO or the International Monetary Fund, the Party adopting or maintaining any restrictions under Paragraph paragraph 1 shall: (a) in the case of investment, respond to any other Party that requests consultations in relation to the restrictions adopted by it, if such consultations are not otherwise taking place outside this Agreement; (b) in the case of trade in services, if consultations in relation to the restrictions adopted by it are not taking place at the WTO, a Party, if requested, shall promptly commence consultations with any interested Partythe other Party from the date of notification in order to review the measures adopted or maintained by it.