Common use of Balance- Of- Payments Exception Clause in Contracts

Balance- Of- Payments Exception. 1. The Parties shall endeavour to avoid the imposition of restrictive measures for balance-of-payments purposes. 2. A Party in serious balance-of-payments difficulties, or under imminent threat thereof, may, in accordance with the conditions established under the GATT 1994, the Understanding on the Balance-of-Payments Provisions of the GATT 1994 and the Declaration on Trade Measures Taken for Balance of Payments Purposes, adopt a trade restrictive measure, which shall be of limited duration and non-discriminatory and shall not go beyond what is necessary to remedy the balance-of- payments situation. 3. Before adopting a measure pursuant to paragraph 2, the Party shall notify the other Party. 4. The Party adopting the measure shall immediately consult the other Party and shall make every effort to hold such consultations before adopting the measure. 5. A measure under this Article shall not impair the relative benefits accorded to the other Party under this Agreement. 6. For greater certainty, the balance-of-payments exception contained in this Article applies only to balance-of-payments measures imposed on trade in goods.