Measures to Safeguard. the Balance of Payments 1 In the event of serious balance of payments and external financial difficulties or threat thereof, a Party may adopt or maintain restrictions on trade in services on which it has undertaken specific commitments, including on payments or transfers for transactions related to such commitments. In the case of investments, a Party may adopt or maintain restrictions with regards to payments relating to the transfer of proceeds from investment. 2 The restrictions referred to in paragraph 1: a) shall be consistent with the Articles of Agreement of the International Monetary Fund; b) shall avoid unnecessary damage to the commercial, economic and financial interests of the other Party; c) shall not exceed those necessary to deal with the circumstances described in paragraph 1; d) shall be temporary and be phased out progressively as the situation specified in paragraph 1 improves; and e) shall be applied on a national treatment basis. 3 Any restrictions adopted or maintained under paragraph 1, or any changes therein, shall be promptly notified to the other Party within 14 days from the date such measures are taken. 4 The Party adopting any restrictions under paragraph 1 shall commence consultations with the other Party within 90 days from the date of notification in order to review the measures adopted by it. 12 The sole fact of requiring a visa for natural persons shall not be regarded as nullifying or impairing benefits under a specific commitment. 5 In the case of trade in goods, where a Party is in serious balance of payments and external financial difficulties or under threat thereof, it may, in accordance with GATT 1994 and the Understanding on the Balance-of- Payments Provisions of GATT 1994, adopt restrictive import measures.
Appears in 8 contracts
