Common use of Standards for a Safeguard Measure Clause in Contracts

Standards for a Safeguard Measure. 1. A Party shall notify immediately the other Party in writing upon initiation of an investigation described in paragraph 2 and shall consult with the other Party within 30 days after the initiation of the investigation, with a view to reviewing the information arising from the investigation and exchanging views on the measure. 2. A Party shall apply a safeguard measure only following an investigation by the Party's competent authorities in accordance with Articles 3 and 4.2 of the Safeguards Agreement, and to this end, Articles 3 and 4.2 of the Safeguards Agreement are incorporated into and made a part of this Agreement, mutatis mutandis. 3. Each Party shall ensure that its competent authorities complete any such investigation within one year of its date of initiation. 4. Neither Party shall apply a safeguard measure: (a) except to the extent, and for such time, as may be necessary to prevent or remedy serious injury and to facilitate adjustment; (b) for a period exceeding two years, except that the period may be extended by up to one year if the competent authorities of the importing Party determine, in conformity with the procedures specified in this Article, that the measure continues to be necessary to prevent or remedy serious injury and to facilitate adjustment and that there is evidence that the industry is adjusting, provided that the total period of application of a safeguard measure, including the period of initial application and any extension thereof, shall not exceed three years; or (c) beyond the expiration of the transition period. 5. Neither Party shall apply a safeguard measure more than once against the same good. 6. Where the expected duration of the safeguard measure is over one year, the Party applying a measure shall progressively liberalize it at regular intervals during the period of application. 7. When a Party terminates a safeguard measure, the rate of customs duty shall be the rate that, according to the Party's Schedule to Annex 2-A (Elimination of Customs Duties), would have been in effect but for the measure.