Common use of Temporary Safeguard Measures Clause in Contracts

Temporary Safeguard Measures. 1. If a Party is in serious balance of payments and external financial difficulties or under threat thereof, or if, in exceptional circumstances, payments or transfers relating to capital movements cause or threaten to cause serious difficulties for macroeconomic management, it may adopt or maintain restrictions on payments or transfers related to covered investments. 2. Restrictions adopted or maintained under paragraph 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 paragraph 1; (d) Be temporary and be phased out progressively as the situation specified in paragraph 1 improves, and shall not exceed 18 months in duration; (e) Not be inconsistent with Article 10; (f) Be applied on a non-discriminatory basis; (g) In the case of restrictions on capital outflows, not interfere with an investor's ability to earn a market rate of return in the Area of the restricting Party on any restricted assets (11); and (h) Not be used to avoid necessary macroeconomic adjustment. 3. Restrictions referred to in paragraph 1 shall not apply to payments or transfers relating to foreign direct investment (12). 4. In determining the incidence of restrictions 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. 5. Any restrictions adopted or maintained by a Party under paragraph 1, or any changes therein, shall be notified promptly to the other Party. 6. A Party adopting or maintaining any restrictions under paragraph 1 shall respond to the other Party that requests consultations in relation to the restrictions adopted by it, if such consultations are not otherwise taking place outside this Agreement.

Temporary Safeguard Measures. 1. If a Party is in serious balance of payments and external financial difficulties or under threat thereof, or if, in exceptional circumstances, payments or transfers relating to capital movements cause or threaten to cause serious difficulties for macroeconomic management, it may adopt or maintain restrictions on payments or transfers related to covered investments. 2. Restrictions adopted or maintained under paragraph 1 shall: (a) Be be consistent with the Articles of Agreement of the International Monetary Fund; (b) Avoid avoid unnecessary damage to the commercial, economic and financial interests of the other Party; (c) Not not exceed those necessary to deal with the circumstances described in paragraph 1; (d) Be be temporary and be phased out progressively as the situation specified in paragraph 1 improves, and shall not exceed 18 months in duration;; 10 For greater certainty, measures referred to in paragraph 1(b) include: (i) those relating to fissionable and fusionable materials or the materials from which they are derived; (ii) those relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials or relating to the supply of services as carried out directly or indirectly for the purpose of supplying or provisioning a military establishment; (iii) those taken so as to protect critical public infrastructure, whether publicly or privately owned, including communications, power, transport and water infrastructures from deliberate attempts intended to disable, degrade or otherwise interfere with such infrastructures (including measures taken to prevent such attempts); and (iv) those taken in time of national emergency, war or other emergency in international relations. (e) Not not be inconsistent with Article 10; (f) Be be applied on a non-discriminatory basis; (g) In in the case of restrictions on capital outflows, not interfere with an investor's ’s ability to earn a market rate of return in the Area of the restricting Party on any restricted assets (11)assets11; and (h) Not not be used to avoid necessary macroeconomic adjustment. 3. Restrictions referred to in paragraph 1 shall not apply to payments or transfers relating to foreign direct investment (12)investment12. 4. In determining the incidence of restrictions 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. 5. Any restrictions adopted or maintained by a Party under paragraph 1, or any changes therein, shall be notified promptly to the other Party. 6. A Party adopting or maintaining any restrictions under paragraph 1 shall respond to the other Party that requests consultations in relation to the restrictions adopted by it, if such consultations are not otherwise taking place outside this Agreement.

Temporary Safeguard Measures. 1. If a Party is in serious balance of payments and external financial difficulties or under threat thereof, or if, in exceptional circumstances, payments or transfers relating to capital movements cause or threaten to cause serious difficulties for macroeconomic management, it may adopt or maintain restrictions on payments or transfers related to covered investments. 2. Restrictions adopted or maintained under paragraph 1 shall: (a) Be be consistent with the Articles of Agreement of the International Monetary Fund; (b) Avoid avoid unnecessary damage to the commercial, economic and financial interests of the other Party; (c) Not not exceed those necessary to deal with the circumstances described in paragraph 1;; 10 For greater certainty, measures referred to in paragraph 1(b) include: (i) those relating to fissionable and fusionable materials or the materials from which they are derived; (ii) those relating to the traffic in arms, ammunition and implements of war and to such traffic in other goods and materials or relating to the supply of services as carried out directly or indirectly for the purpose of supplying or provisioning a military establishment; (iii) those taken so as to protect critical public infrastructure, whether publicly or privately owned, including communications, power, transport and water infrastructures from deliberate attempts intended to disable, degrade or otherwise interfere with such infrastructures (including measures taken to prevent such attempts); and (iv) those taken in time of national emergency, war or other emergency in international relations. (d) Be be temporary and be phased out progressively as the situation specified in paragraph 1 improves, and shall not exceed 18 months in duration; (e) Not not be inconsistent with Article 10; (f) Be be applied on a non-discriminatory basis; (g) In in the case of restrictions on capital outflows, not interfere with an investor's ’s ability to earn a market rate of return in the Area of the restricting Party on any restricted assets (11)assets11; and (h) Not not be used to avoid necessary macroeconomic adjustment. 3. Restrictions referred to in paragraph 1 shall not apply to payments or transfers relating to foreign direct investment (12)investment12. 4. In determining the incidence of restrictions 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. 5. Any restrictions adopted or maintained by a Party under paragraph 1, or any changes therein, shall be notified promptly to the other Party. 6. A Party adopting or maintaining any restrictions under paragraph 1 shall respond to the other Party that requests consultations in relation to the restrictions adopted by it, if such consultations are not otherwise taking place outside this Agreement.