Common use of Special Textile And Apparel Safeguard Actions Clause in Contracts

Special Textile And Apparel Safeguard Actions. 1. If, as a result of the reduction or elimination of a duty under this Agreement, a textile or apparel good benefiting from preferential tariff treatment under this Agreement is being imported into the territory of a Party in such increased quantities, in absolute terms or relative to the domestic market for that good, and under such conditions as to cause serious damage, or actual threat thereof, to a domestic industry producing a like or directly competitive good, the Party may, to the extent and for such time as may be necessary to prevent or remedy such damage and to facilitate adjustment, increase the rate of duty on the good to a level not to exceed the lesser of: (a) the most-favored-nation (“MFN”) applied rate of duty in effect at the time the action is taken; and (b) the MFN applied rate of duty in effect on the date of entry into force of this Agreement. 2. In determining serious damage, or actual threat thereof, the importing Party: (a) shall examine the effect of increased imports of the good from the exporting Party on the particular industry, as reflected in changes in such relevant economic variables as output, productivity, utilization of capacity, inventories, market share, exports, wages, employment, domestic prices, profits, and investment, none of which shall necessarily be decisive; and (b) shall not consider changes in technology or consumer preference as factors supporting a determination of serious damage or actual threat thereof. 3. The importing Party may take a safeguard action under this Article only following an investigation by its competent authorities. 4. The importing Party shall deliver to the exporting Party, without delay, written notice of its intent to take a safeguard action and, on the request of the exporting Party, shall enter into consultations with that Party regarding the matter.