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

Measures to Safeguard the Balance of Payments. 1. When a Party is in serious balance of payments and external financial difficulties or under threat thereof, or when in exceptional circumstances, payments and capital movements between the Parties cause or threaten to cause serious difficulties for the operation on monetary policy or exchange rate policy in either Party, 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 GATT 1994, adopt restrictive import measures; (b) in the case of 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; or (c) in the case of investments, adopt or maintain restrictions with regard to payments relating to the transfer of proceeds from investment. 2. Restrictions adopted or maintained under paragraph 1(b) or (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 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; (e) not exceed a period of one year; however, if extremely exceptional circumstances arise such that a Party seeks to extend such measures, the Party will co-ordinate in advance with the other Party concerning the implementation of any proposed extension; and (f) be applied on a national treatment basis and such that the other Party is treated no less favorably than any non-Party. 3. In determining the incidence of such restrictions, the Parties may give priority to economic sectors which are more essential to their economic development. However, such restrictions shall not be adopted or maintained for the purposes of protecting a particular sector. 4. Any restrictions adopted or maintained by a Party under paragraph 1, or any changes therein, shall be promptly notified to the other Party. 5. The Party adopting or maintaining any restrictions under paragraph 1 shall promptly commence consultations in relation to the measures or any extension thereof on the request of the other Party.

Measures to Safeguard the Balance of Payments. 1. When If a Party is in serious balance of balance-of-payments and external financial difficulties or under threat thereof, or when in exceptional circumstances, payments and capital movements between the Parties cause or threaten to cause serious difficulties for the operation on monetary policy or exchange rate policy in either Party, 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 GATT the General Agreement on Tariffs and Trade 1994, set out in Annex 1A to the WTO Agreement, adopt or maintain restrictive import measures;; and (b) in the case of trade in services, adopt or maintain restrictions on payments or transfers related to trade in services on which services. 2. If a Party is in serious balance-of-payments and external financial difficulties or under threat thereof, or if, in exceptional circumstances, payments or transfers relating to capital movements cause or threaten to cause serious difficulties for macroeconomic management, it has undertaken specific commitments, including may adopt or maintain restrictions on payments or transfers for transactions related to such commitments; or (c) in the case of covered investments, adopt or maintain restrictions with regard to payments relating to the transfer of proceeds from investment. 23. Restrictions adopted or maintained under paragraph 1(b) or (c) paragraph 2 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 Party; (c) not exceed those necessary to deal with the circumstances described in paragraph 11(b) or paragraph 2; (d) be temporary, temporary and be phased out progressively as the situation specified in paragraph 1 1(b) or paragraph 2 improves; (e) not exceed a period of one year; however, if extremely exceptional circumstances arise such that a Party seeks to extend such measures, the Party will co-ordinate in advance with the other Party concerning the implementation of any proposed extension; and (fe) be applied on a national treatment non-discriminatory basis and such that the other Party is treated no less favorably favourably than any non-Party. 34. In determining the incidence of such restrictionsrestrictions adopted or maintained under paragraph 1 or paragraph 2, the Parties a Party may give priority to economic sectors which are more essential to their its economic development. However, such restrictions shall not be adopted or maintained for the purposes purpose of protecting a particular sector. 45. Any restrictions adopted or maintained by a Party under paragraph 11 or paragraph 2, or any changes therein, shall be notified promptly notified to the other Party. 56. The A Party adopting or maintaining any restrictions under paragraph 1 shall promptly commence or paragraph 2 shall: (a) in the case of trade in goods or trade in services, if consultations in relation to the measures restrictions adopted or any extension thereof on maintained by it are not taking place at the request of WTO, a Party, if requested, shall promptly commence consultations with the other Party; and (b) in the case of investment, respond to the other Party that requests consultations in relation to the restrictions adopted or maintained by it, if such consultations are not otherwise taking place outside this Agreement.

Measures to Safeguard the Balance of Payments. ‌ 1. When Where a Party is in serious balance of payments and external financial difficulties or under threat thereof, or when in exceptional circumstances, payments and capital movements between the Parties cause or threaten to cause serious difficulties for the operation on monetary policy or exchange rate policy in either Party, 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 GATT the General Agreement on Tariffs and Trade 1994, adopt restrictive import measures; (b) in the case of 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; orcommitments;7 (c) in the case of investments, adopt or maintain restrictions with regard to payments relating to the transfer of proceeds from investment. 7 This Sub-paragraph shall come into effect with respect to trade in services on entry into force of any commitments to liberalise trade in services under this Agreement. 2. Restrictions adopted or maintained under Sub-paragraph 1(b(b) or (c) of Paragraph 1 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 Party; (c) not exceed those necessary to deal with the circumstances described in paragraph Paragraph 1; (d) be temporary, temporary and be phased out progressively as the situation specified in paragraph Paragraph 1 improves; (e) not exceed a period of one year; however, if extremely exceptional circumstances arise such that a Party seeks to extend such measures, the Party will co-ordinate in advance with the other Party concerning the implementation of any proposed extension; and (fe) be applied on a national treatment basis and such that the other Party is treated no less favorably favourably than any non-Party. 3. In determining the incidence of such restrictions, the Parties may give priority to economic sectors which are more essential to their economic development. However, such restrictions shall not be adopted or maintained for the purposes 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 promptly notified to the other Party. 5. The Party adopting or maintaining any restrictions under paragraph Paragraph 1 shall promptly commence consultations with the other Party as soon as possible from the date of notification in relation order to review the measures adopted or any extension thereof on the request of the other Partymaintained by it.

Measures to Safeguard the Balance of Payments. 1. When Where a Party is in serious balance of payments and external financial difficulties or under threat thereof, or when in exceptional circumstances, payments and capital movements between the Parties cause or threaten to cause serious difficulties for the operation on monetary policy or exchange rate policy in either Party, 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 GATT 1994, adopt restrictive import measures; (b) in the case of 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; or. It is recognized that particular pressures on the balance of payments of a Party in the process of economic development 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. (c) in the case of investments, adopt or maintain restrictions with regard to payments or transfers relating to investment. It is recognized that particular pressures on the transfer balance of proceeds from investmentpayments of a Party in the process of economic development 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. 2. Restrictions adopted or maintained under paragraph 1(b) or (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 Party; (c) not exceed those necessary to deal with the circumstances described in paragraph 1; (d) be temporary, temporary and be phased out progressively as the situation specified in paragraph 1 improves;; and (e) not exceed a period of one year; however, if extremely exceptional circumstances arise such that a Party seeks to extend such measures, the Party will co-ordinate in advance with the other Party concerning the implementation of any proposed extension; and (f) be applied on in such a national treatment basis and such manner that the other Party is treated no less favorably favourably than any non-Partycountry that is not a party to this Agreement. 3. In determining the incidence of such restrictions, the Parties may give priority to economic sectors which are more essential to their economic development. However, such restrictions shall not be adopted or maintained for the purposes 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 notified to the other PartyParty from the date such measures are taken. 5. The To the extent that it does not duplicate the process under WTO and International Monetary Fund (“IMF”), the Party adopting or maintaining any restrictions under paragraph 1 shall promptly commence consultations with the other Party from the date of notification in relation order to review the measures adopted or any extension thereof on the request of the other Partymaintained by it.

Measures to Safeguard the Balance of Payments. 1. When Where a Party is in serious balance of payments and external financial difficulties or under threat thereof, it may adopt or when maintain restrictive measures with regard to trade in exceptional circumstancesgoods, payments trade in services, and capital movements between the Parties cause or threaten to cause serious difficulties for the operation on monetary policy or exchange rate policy establishment under Chapter 10 in either Party, it mayaccordance with: (a) in the case of trade in goods, in accordance with GATT 1994 and the WTO Understanding on the Balance-of-Payments Provisions PaymentsProvisions of GATT 1994, adopt restrictive import measures;the GeneralAgreement onTariffs and Trade1994; or (b) in the case Article XII.2 of services, adopt or maintain restrictions on trade in services on which it has undertaken specific commitmentsGATS, including on payments payments, transfers or transfers for transactions related to such commitments; or (c) in the case of investmentscapital movements, adopt or maintain restrictions with regard to payments relating to the transfer of proceeds from investmentas applicable. 2. Restrictions The Parties shall endeavour to avoid the application of the restrictive measures referred to in paragraph 1. 3. Any restrictive measure adopted or maintained under paragraph 1(b) or (c) shall: (a) this Article shall be consistent with the Articles non-discriminatory and of Agreement of the International Monetary Fund; (b) avoid unnecessary damage to the commercial, economic limited duration and financial interests of the other Party; (c) shall not exceed those go beyond what is necessary to deal with remedy the circumstances described in paragraph 1; (d) be temporary, balance of payments and be phased out progressively as the situation specified in paragraph 1 improves; (e) not exceed a period of one year; however, if extremely exceptional circumstances arise such that a Party seeks to extend such measures, the Party will co-ordinate in advance with the other Party concerning the implementation of any proposed extension; and (f) be applied on a national treatment basis and such that the other Party is treated no less favorably than any non-Partyexternal financial situation. 34. In determining the incidence of such restrictionsrestrictions adopted or maintained under paragraph 1, the Parties each Party may give priority to economic sectors which are more essential to their its economic development. However, such restrictions shall not be adopted or maintained for the purposes purpose of protecting a particular sector. 45. Any restrictions adopted or maintained by a Party under paragraph 1, or any changes therein, shall promptly be promptly notified to the other PartyParty and present, as soon as possible, a time schedule for their removal. 56. The Party adopting or maintaining any restrictions under paragraph 1 shall consult promptly commence consultations in relation to the measures or any extension thereof on the request of with the other Party. Such consultations shall assess the balance of payments situation of the Party concerned and the restrictions adopted or maintained under this Article, taking into account, inter alia, such factors as: (a) The nature and extent of the balance of payments and the external financial difficulties; (b) The external economic and trading environment of the consulting Party; and (c) Alternative corrective measures which may be available. The consultations shall address the compliance of any restrictive measures with paragraphs 3 and 4. All findings of statistical and other facts presented by the International Monetary Fund relating to foreign exchange, monetary reserves and balance of payments shall be accepted and conclusions shall be based on the assessment by the Fund of the balance of payments and external financial situation of the consulting Party.

Measures to Safeguard the Balance of Payments. 1. When Where a Party is in serious balance of payments and external financial difficulties or under threat thereof, or when in exceptional circumstances, payments and capital movements between the Parties cause or threaten to cause serious difficulties for the operation on monetary policy or exchange rate policy in either Party, 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 GATT 1994, adopt restrictive import measures; (b) in the case of 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; or; (c) in the case of investments, adopt or maintain restrictions with regard to payments relating to the transfer of proceeds from investment. 2. Restrictions adopted or maintained under paragraph 1(b) or (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 Party; (c) not exceed those necessary to deal with the circumstances described in paragraph 1; (d) be temporary, temporary and be phased out progressively as the situation specified in paragraph 1 improves; (e) not exceed a period of one year; however, if extremely exceptional circumstances arise such that a Party seeks to extend such measures, the Party will co-ordinate in advance with the other Party concerning the implementation of any proposed extension; and (fe) be applied on a national treatment basis and such that the other Party is treated no less favorably favourably than any non-Partythird party. 3. In determining the incidence of such restrictions, the Parties may give priority to economic sectors which are more essential to their economic development. However, such restrictions shall not be adopted or maintained for the purposes 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 notified to the other PartyParty from the date such measures are taken. 5. The Party adopting or maintaining any restrictions under paragraph 1 shall promptly commence consultations with the other Party from the date of notification in relation order to review the measures adopted or any extension thereof on the request of the other Partymaintained by it.