Application of a Transitional Safeguard Measure Sample Clauses
The "Application of a Transitional Safeguard Measure" clause allows a country to temporarily restrict imports of certain goods to protect a domestic industry from serious injury caused by a surge in imports. In practice, this may involve imposing higher tariffs, quotas, or other trade barriers for a limited period, typically after an investigation confirms the need for such action. The core function of this clause is to provide a legal mechanism for countries to stabilize their markets and give domestic industries time to adjust to increased competition, thereby preventing long-term economic harm.
Application of a Transitional Safeguard Measure. If, as a result of the reduction or elimination of a customs duty pursuant to this Agreement, an originating good of a Party is being imported into the other Party’s territory in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to a domestic industry producing a like or directly competitive good, the other Party may, to the minimum extent necessary to prevent or remedy serious injury and facilitate adjustment, apply a safeguard measure, consisting of:
(a) the suspension of the further reduction of any rate of customs duty provided for under this Agreement on the good from the date on which the action to apply the safeguard measure is taken; or
(b) an increase of the rate of customs duty on the good to a level not to exceed the lesser of:
(i) the most-favoured-nation (MFN) applied rate of customs duty in effect on the date on which the action to apply the safeguard measure is taken; or
(ii) the MFN applied rate of customs duty in effect on the day immediately preceding the date of entry into force of this Agreement.
Application of a Transitional Safeguard Measure. 1. During the transition period only, if as a result of the reduction or elimination of a customs duty provided under this Agreement, any product originating in a Party is being imported into the territory of the other Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to domestic industry producing a like or directly competitive product, the importing Party may apply a transitional safeguard measure described in paragraph 2 of this Article.
2. If the conditions in paragraph 1 of this Article are met, a Party may:
(a) suspend the further reduction of any rate of customs duty on the product provided for under this Agreement; or
(b) increase the rate of customs duty on the product to a level not exceeding the lesser of:
(i) the most-favored-nation (hereinafter referred to as “MFN”) applied rate of duty in effect on the product on the day immediately preceding the date of entry into force of this Agreement; or
(ii) the MFN applied rate of customs duty in effect on the product on the date on which the transitional safeguard measure is applied.
Application of a Transitional Safeguard Measure. Comment [D6]: Acceptable Comment [D5]: Acceptable Comment [D4]: Corresponds with changes to Article 5.6 (1) regarding the termination date of a safeguard measure Comment [D7]: See comment on subpara (b)(i) below.
Application of a Transitional Safeguard Measure. 1. During the transition period only, if as a result of the reduction or elimination of a customs duty provided under this Agreement, any product originating in a Party is being imported into the territory of the other Party in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to domestic industry producing a like or directly competitive product, the importing Party may apply a transitional safeguard measure described in paragraph 2 of this Article.
2. If the conditions in paragraph 1 of this Article are met, a Party may:
(a) Suspend the further reduction of any rate of customs duty on the product provided for under this Agreement; or
(b) Increase the rate of customs duty on the product to a level not exceeding the lesser of:
(i) The most-favored-nation (hereinafter referred to as "MFN") applied rate of duty in effect on the product on the day immediately preceding the date of entry into force of this Agreement; or
(ii) The MFN applied rate of customs duty in effect on the product on the date on which the transitional safeguard measure is applied.