Common use of Bilateral Safeguard Measures Clause in Contracts

Bilateral Safeguard Measures. 1. Each Party may apply a safeguard measure to an originatinggood of the other Party in accordance with Article XIX of theGATT 1994 and the Agreement on Safeguards in Annex 1A to theWTO Agreement (hereinafter referred to in this Article as "theAgreement on Safeguards"), or Article 5 of the Agreement onAgriculture in Annex 1A to the WTO Agreement (hereinafterreferred to in this Article as "Agreement on Agriculture"). Anyaction taken pursuant to Article XIX of the GATT 1994 and theAgreement on Safeguards, or Article 5 of the Agreement onAgriculture shall not be subject to Chapter 13 of thisAgreement. 2. Each Party shall be free to apply a bilateral safeguardmeasure, to the minimum extent necessary to prevent or remedythe serious injury to a domestic industry of that Party and tofacilitate adjustment, if as an effect of the obligationsincurred by that Party under this Agreement, including tariffconcessions, or if as a result of unforeseen developments andof the effects of the obligations incurred by that Party underthis Agreement, an originating good of the other Party is beingimported in such increased quantities, in absolute terms orrelative to domestic production, and under such conditions asto cause or threaten to cause serious injury to the domesticindustry of the former Party that produces like or directlycompetitive goods in the former Party. 3. A Party shall not apply a bilateral safeguard measure xxxx originating good imported up to the limit of quota quantities granted under tariff rate quotas applied in accordance with its Schedule in Annex 1. 4. A Party applying a bilateral safeguard measure may: (a) suspend the further reduction of any customs duty onthe originating good of the other Party provided forunder this Chapter; or (b) increase the customs duty on the originating good ofthe other Party to a level not to exceed the lesserof: (i) the most-favored-nation applied rate on the xxxxxx effect on the day when the bilateral safeguardmeasure is applied; and (ii) the most-favored-nation applied rate on the xxxxxx effect on the day immediately preceding thedate of entry into force of this Agreement. 5. (a) A Party may apply a bilateral safeguard measure only after an investigation has been carried out by thecompetent authorities of that Party in accordance with the same procedures as those provided for in Article3 and paragraph 2 of Article 4 of the Agreement onSafeguards. (b) The investigation referred to in subparagraph (a)shall be completed within one year following its dateof initiation. 6. The following conditions and limitations shall apply withregard to a bilateral safeguard measure: (a) A Party shall immediately give a written notice to theother Party upon: (i) initiating an investigation referred to insubparagraph 5(a) relating to serious injury, orthreat of serious injury, and the reasons for it; (ii) making a finding of serious injury or threat ofserious injury caused by increased imports; and (iii) taking a decision to apply or extend a bilateralsafeguard measure. (b) The Party giving the written notice referred to insubparagraph (a) shall provide the other Party withall pertinent information, which shall include: (i) in the written notice referred to in subparagraph (a)(i), the reason for the initiation of theinvestigation, a precise description of anoriginating good subject to the investigation and its heading or subheading of the HarmonizedSystem, on which the Schedules in Annex 1 arebased, the period subject to the investigation,and the date of initiation of the investigation;and (ii) in the written notice referred to in subparagraphs (a)(ii) and (iii), the evidence of serious injury or threat of serious injury caused by theincreased imports of the originating good, aprecise description of the