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

Restrictions to Safeguard Balance of Payments. 1. In the event of serious balance of payments and external financial difficulties or threat thereof, a Party may adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions relating to such commitments. It is recognised 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. 2. The restrictions referred to in Article 4.13.1 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 Article 4.13.1; d. be temporary and be phased out progressively as the situation specified in Article 4.13.1 improves; and e. be applied on a basis such that the other Party is treated no less favorably than any non-Party. 3. In determining the incidence of such restrictions, Parties may give priority to the supply of services 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 service sector. 4. Any restrictions adopted or maintained under Article 4.13.1, or any changes therein, shall be promptly notified to the other Party. 5. The Party adopting any restrictions under Article 4.13.1 shall commence consultations with the other Party in order to review the restrictions adopted by it.

Restrictions to Safeguard Balance of Payments. 1. In the event of serious balance of payments and external financial difficulties or threat thereof, a Party may adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions relating to such commitments. It is recognised 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. 2. The restrictions referred to in Article 4.13.1 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 Article 4.13.1; d. be temporary and be phased out progressively as the situation specified in Article 4.13.1 improves; and e. be applied on a basis such that the other Party is treated no less favorably favourably than any non-Party. 3. In determining the incidence of such restrictions, Parties may give priority to the supply of services 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 service sector. 4. Any restrictions adopted or maintained under Article 4.13.1, or any changes therein, shall be promptly notified to the other Party. 5. The Party adopting any restrictions under Article 4.13.1 shall commence consultations with the other Party in order to review the restrictions adopted by it.

Restrictions to Safeguard Balance of Payments. 1. In the event of serious balance of balance-of-payments and external financial difficulties or threat thereof, a Party may adopt or maintain restrictions on trade in services on which it has undertaken specific commitmentsservices, including on payments or transfers for transactions relating to such commitmentsobligations. It is recognised that particular pressures on the balance of 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. 2. The restrictions referred to in Article 4.13.1 shallparagraph 1: a. (a) shall not discriminate among WTO Members; (b) shall be consistent with the Articles of Agreement of the International Monetary Fund; b. (c) shall avoid unnecessary damage to the commercial, economic and financial interests of the other Party; c. (d) shall not exceed those necessary to deal with the circumstances described in Article 4.13.1paragraph 1; d. (e) shall be temporary and be phased out progressively as the situation specified in Article 4.13.1 paragraph 1 improves; and e. be applied on a basis such that the other Party is treated no less favorably than any non-Party. 3. In determining the incidence of such restrictions, Parties a Party may give priority to the supply of services which are more essential to their its economic or development programmes. However, such restrictions shall not be adopted or maintained for the purpose of protecting a particular service sector. 4. Any restrictions adopted or maintained under Article 4.13.1paragraph 1, or any changes therein, shall be promptly notified to the other Party. 5. The Party adopting any restrictions under Article 4.13.1 in accordance with paragraph 1 shall commence consultations with the other Party promptly in order to review the restrictions adopted by itadopted.