Common use of Textile Safeguard Measures Clause in Contracts

Textile Safeguard Measures. 1. Subject to the following paragraphs, and during the transition period only, if, as a result of the reduction or elimination of a duty provided for in this Agreement, a textile or apparel good of another Party 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 importing Party may, to the extent necessary to prevent or remedy such damage and to facilitate adjustment, apply a textile safeguard measure to that good, consisting of an increase in 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 measure is applied; 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 of the other 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, either alone or combined with other factors, 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 apply a textile safeguard measure only following an investigation by its competent authority. 4. If, on the basis of the results of the investigation under paragraph 3, the importing Party intends to apply a textile safeguard measure, the importing Party shall promptly provide written notice to the exporting Party of its intent to apply a textile safeguard measure, and on request shall enter into consultations with that Party. The importing Party and the exporting Party shall begin the consultations without delay and shall complete them within 60 days of the date of receipt of the request. The importing Party shall make a decision on whether to apply a safeguard measure within 30 days of completion of the consultations. 5. The following conditions and limitations apply to any textile safeguard measure: (a) no Party may maintain a textile safeguard measure for a period exceeding three years; (b) no Party may apply a textile safeguard measure to the same good of another Party more than once; (c) on termination of the textile safeguard measure, the Party applying the measure shall apply the rate of duty set out in its Schedule to Annex 3.3, as if the measure had never been applied; and (d) no Party may maintain a textile safeguard measure beyond the transition period. 6. The Party applying a textile safeguard measure shall provide to the Party against whose good the measure is taken mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the textile safeguard measure. Such concessions shall be limited to textile or apparel goods, unless the consulting Parties otherwise agree. If the consulting Parties are unable to agree on compensation within 30 days of application of a textile safeguard measure, the Party against whose good the measure is taken may take tariff action having trade effects substantially equivalent to the trade effects of the textile safeguard measure. Such tariff action may be taken against any goods of the Party applying the measure. The Party taking the tariff action shall apply such action only for the minimum period necessary to achieve the substantially equivalent trade effects. The importing Party’s obligation to provide trade compensation and the exporting Party’s right to take tariff action shall terminate when the textile safeguard measure terminates. (a) Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the Safeguards Agreement. (b) No Party may apply, with respect to the same good at the same time, a textile safeguard measure and: (i) a safeguard measure under Chapter Eight (Trade Remedies); or (ii) a measure under Article XIX of the GATT 1994 and the Safeguards Agreement.

Textile Safeguard Measures. 1. Subject to the following paragraphs, and during the transition period only, if, as a result of the reduction or elimination of a duty provided for in this Agreement, a textile or apparel good of another a Party is being imported into the territory of a the other 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 importing Party may, to the extent necessary to prevent or remedy such damage and to facilitate adjustment, apply a textile safeguard measure to that good, consisting of an increase in 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 measure is applied; andor (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 of the other 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, either alone or combined with other factors, 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 apply a textile safeguard measure only following an investigation by its competent authority. 4. If, on the basis of the results of the investigation under paragraph 3, the importing Party intends to apply a textile safeguard measure, the importing Party shall promptly provide written notice to the exporting Party of its intent to apply a textile safeguard measure, and on request shall enter into consultations with that Party. The importing Party and the exporting Party Parties shall begin the consultations without delay and shall complete them within 60 days of the date of receipt of the request. The importing Party shall make a decision on whether to apply a safeguard measure within 30 days of completion of the consultations. 5. The following conditions and limitations apply to any textile safeguard measure: (a) no neither Party may maintain a textile safeguard measure for a period exceeding three years; (b) no neither Party may apply a textile safeguard measure to the same good of another the other Party more than once; (c) on termination of the textile safeguard measure, the Party applying the measure shall apply the rate of duty set out in its Schedule to Annex 3.33.3 (Tariff Elimination), as if the measure had never been applied; and (d) no neither Party may maintain a textile safeguard measure beyond the transition period. 6. The Party applying a textile safeguard measure shall provide to the Party against whose good the measure is taken mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the textile safeguard measure. Such concessions shall be limited to textile or apparel goods, unless the consulting Parties otherwise agree. If the consulting Parties are unable to agree on compensation within 30 days of application of a textile safeguard measure, the Party against whose good the measure is taken may take tariff action having trade effects substantially equivalent to the trade effects of the textile safeguard measure. Such tariff action may be taken against any goods of the Party applying the measure. The Party taking the tariff action shall apply such action only for the minimum period necessary to achieve the substantially equivalent trade effects. The importing Party’s obligation to provide trade compensation and the exporting Party’s right to take tariff action shall terminate when the textile safeguard measure terminates. (a) Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the Safeguards Agreement. (b) No Neither Party may apply, with respect to the same good at the same time, a textile safeguard measure and: (i) a safeguard measure under Chapter Eight (Trade Remedies); or (ii) a measure under Article XIX of the GATT 1994 and the Safeguards Agreement.

Textile Safeguard Measures. 1. Subject to the following paragraphs, and during the transition period only, if, as a result of the reduction or elimination of a duty provided for in this Agreement, a textile or apparel good of another Party 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 importing Party may, to the extent necessary to prevent or remedy such damage and to facilitate adjustment, apply a textile safeguard measure to that good, consisting of an increase in 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 measure is applied; 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 of the other 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, either alone or combined with other factors, 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 apply a textile safeguard measure only following an investigation by its competent authority. 4. If, on the basis of the results of the investigation under paragraph 3, the importing Party intends to apply a textile safeguard measure, the importing Party shall promptly provide written notice to the exporting Party of its intent to apply a textile safeguard measure, and on request shall enter into consultations with that Party. The importing Party and the exporting Party shall begin the consultations without delay and shall complete them within 60 days of the date of receipt of the request. The importing Party shall make a decision on whether to apply a safeguard measure within 30 days of completion of the consultations. 5. The following conditions and limitations apply to any textile safeguard measure: (a) no Party may maintain a textile safeguard measure for a period exceeding three years; (b) no Party may apply a textile safeguard measure to the same good of another Party more than once; (c) on termination of the textile safeguard measure, the Party applying the measure shall apply the rate of duty set out in its Schedule to Annex 3.3, as if the measure had never been applied; and (d) no Party may maintain a textile safeguard measure beyond the transition period. 6. The Party applying a textile safeguard measure shall provide to the Party against whose good the measure is taken mutually agreed trade liberalizing compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the textile safeguard measure. Such concessions shall be limited to textile or apparel goods, unless the consulting Parties otherwise agree. If the consulting Parties are unable to agree on compensation within 30 days of application of a textile safeguard measure, the Party against whose good the measure is taken may take tariff action having trade effects substantially equivalent to the trade effects of the textile safeguard measure. Such tariff action may be taken against any goods of the Party applying the measure. The Party taking the tariff action shall apply such action only for the minimum period necessary to achieve the substantially equivalent trade effects. The importing Party’s obligation to provide trade compensation and the exporting Party’s right to take tariff action shall terminate when the textile safeguard measure terminates. (a) Each Party retains its rights and obligations under Article XIX of the GATT 1994 and the Safeguards Agreement. (b) No Party may apply, with respect to the same good at the same time, a textile safeguard measure and: (i) a safeguard measure under Chapter Eight (Trade Remedies); or (ii) a measure under Article XIX of the GATT 1994 and the Safeguards Agreement.