Common use of Measures to Safeguard the Balance 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 in respect of 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 9.1 of Chapter 9 (Investment). 2. Restrictions adopted or maintained under subparagraphs 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 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; and (e) be applied on a non-discriminatory basis such that the other Party is treated no less favourably than any non-party. 3. In determining the incidence of such restrictions, a Party may give priority to economic sectors which are more essential to its economic development. 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 Party. 5. The Party adopting or maintaining any restrictions under paragraph 1 shall commence consultations with the other Party in order to review the restrictions applied by it.

Measures to Safeguard the Balance. ofOF-paymentsPAYMENTS 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 in respect of 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 9.1 of Chapter 9 (Investment). 2. Restrictions adopted or maintained under subparagraphs 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 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; and (e) be applied on a non-discriminatory basis such that the other Party is treated no less favourably than any non-party. 3. In determining the incidence of such restrictions, a Party may give priority to economic sectors which are more essential to its economic development. 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 Party. 5. The Party adopting or maintaining any restrictions under paragraph 1 shall commence consultations with the other Party in order to review the restrictions applied by it.

Measures to Safeguard the Balance. ofOF-paymentsPAYMENTS 1. Where a Party is in serious balance-of-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 in respect of on 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 9.1 of Chapter 9 (Investment). 2. Restrictions adopted or maintained under subparagraphs paragraph 1(b) or (c) shall: (a) be consistent with the IMF Articles of AgreementAgreement of the International Monetary Fund; (b) avoid unnecessary damage to the commercial, economic 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; and (e) be applied on a non-discriminatory basis such that the other Party is treated no less favourably than any non-partyParty. 3. In determining the incidence of such restrictionsrestrictions adopted or maintained under paragraph 1, a Party may give priority to economic sectors which are more essential to its economic development. 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 Party. 5. The Party adopting or maintaining any restrictions under paragraph 1 shall commence consultations with the other Party in order to review the restrictions applied by it.

Measures to Safeguard the Balance. of-paymentsof Payments 1. Where a Party is in serious balance-of-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 in respect of on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments; and (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 9.1 ensure, inter alia, the maintenance of Chapter 9 (Investment)a level of financial reserves adequate for the implementation of its programme of economic development. 2. Restrictions adopted or maintained under subparagraphs 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 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; and (e) be applied on a non-discriminatory basis such that the other Party is treated no less favourably than any non-partycountry that is not a party to this Agreement. 3. In determining the incidence of such restrictions, a Party the Parties may give priority to economic sectors which are more essential to its their economic development. 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 PartyParty from the date such measures are taken. 5. The 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 1 shall promptly commence consultations with the other Party from the date of notification in order to review the restrictions applied measures adopted or maintained by it.