Common use of Suspension of benefits Clause in Contracts

Suspension of benefits. 1. If the Parties: (a) are unable to agree on compensation within 30 days after the period for developing such compensation has begun; or (b) have agreed on compensation and the complaining Party considers that the Party complained against has failed to observe the terms of the agreement within 20 days following such agreement, the complaining Party may, at any time thereafter, communicate in writing to the Party complained against its intention to suspend the application of benefits. The communication shall specify the level of benefits that the complaining Party proposes to suspend. 2. The complaining Party may initiate the suspension of benefits 30 days following the later date between the date of the communication in accordance with paragraph 1 and the date when the panel issued its report in accordance with Article 23.18. 3. The level of benefits to be suspended shall have an equivalent effect to the adverse trade effect caused by the Party complained against. 4. In considering what benefits to suspend in accordance with paragraph 1: (a) the complaining Party should first seek to suspend benefits in the same sector or sectors as that or those affected by the measure; and (b) if the complaining Party considers that it is not practicable or effective to suspend benefits in the same sector or sectors, it may suspend benefits in other sectors. 5. Any suspension of benefits shall be restricted to benefits granted to the Party complained against under this Agreement. 6. The suspension of benefits shall be temporary and may only be applied until such time as the measure found to be inconsistent with this Agreement has been removed, or a mutually satisfactory solution is reached. If the panel established under Article 23.18 decides that the Party complained against has eliminated the non-conformity, the complaining Party shall promptly reinstate any benefits that it had suspended in accordance with this Article.