home
***
CD-ROM
|
disk
|
FTP
|
other
***
search
/
Complete Home & Office Legal Guide
/
Complete Home and Office Legal Guide (Chestnut) (1993).ISO
/
stat
/
nafta
/
08saf.ws
(
.txt
)
< prev
next >
Wrap
WordStar Document
|
1993-08-23
|
22KB
|
488 lines
Chapter Eight
Emergency Action
Article 801: Bilateral Actions
1. Subject to paragraphs 2, 3 and 4 and Annex 801, and during
the transition period only, if a good originating in the
territory of a Party, as a result of the reduction or elimination
of a duty provided for in this Agreement, is being imported into
the territory of another Party in such increased quantities, in
absolute terms, and under such conditions so that the imports of
such good from that Party alone constitute a substantial cause of
serious injury, or threat thereof, to a domestic industry
producing a like or directly competitive good, the Party into
whose territory the good is being imported may, to the minimum
extent necessary to remedy or prevent the injury:
(a) suspend the further reduction of any rate of duty
provided for under this Agreement on such good;
(b) increase the rate of duty on such good to a level not
to exceed the lesser of
(i) the most-favored-nation (MFN) applied rate of duty
in effect at the time the action is taken, or
(ii) the MFN applied rate of duty in effect on the day
immediately preceding the date of entry into force
of this Agreement; or
(c) in the case of a duty applied to a good on a seasonal
basis, increase the rate of duty to a level not to
exceed the MFN applied rate of duty that was in effect
on such good for the corresponding season immediately
preceding the date of entry into force of this
Agreement.
2. The following conditions and limitations shall apply to a
proceeding that may result in emergency action under paragraph 1:
(a) a Party shall, without delay, deliver to any Party that
may be affected written notice of, and a request for
consultations regarding, the institution of a
proceeding that could result in emergency action
against a good originating in the territory of a Party;
(b) any such action shall commence not later than one year
from the date of institution of the proceeding;
(c) no action shall be maintained
(i) for a period exceeding three years, except where
the good against which the action is taken is
provided for in the items in staging category C+
of the Tariff Schedule of the Party taking the
action, and that Party determines that the
affected industry has undertaken adjustment and
requires an extension of the period of relief, in
which case the period of relief may be extended
for one year provided that the duty applied during
the initial period of relief is substantially
reduced at the commencement of the extension
period, or
(ii) beyond the expiration of the transition period,
except with the consent of the Party against whose
good the action is taken;
(d) no action shall be taken by a Party against any
particular good originating in the territory of another
Party more than once during the transition period; and
(e) upon the termination of the action, the rate of duty
shall be the rate that, according to the original
Schedule for the staged elimination of the tariff,
would have been in effect a year after the commencement
of the action, and commencing January 1 of the year
following the termination of the action, at the option
of the Party that has taken the action
(i) the rate of duty shall conform to the schedule in
the Tariff Schedule of the Party, or
(ii) the tariff shall be eliminated in equal annual
stages ending on the date set forth in the Tariff
Schedule of the Party for the elimination of the
tariff.
3. A Party may take a bilateral emergency action after the
expiration of the transition period to deal with cases of
serious injury, or threat thereof, to a domestic industry arising
from the operation of this Agreement only with the consent of the
Party against whose good the action would be taken.
4. The Party taking an action pursuant to this Article shall
provide to the Party against whose good the action is taken
mutually agreed trade liberalizing compensation in the form of
concessions having substantially equivalent trade effects to the
other Party, or equivalent to the value of the additional duties
expected to result from the action. If the Parties are unable to
agree upon compensation, the Party against whose good the action
is taken may take tariff action having trade effects
substantially equivalent to the action taken under paragraph 1.
The Party taking such tariff action shall apply the action only
for the minimum period necessary to achieve such substantially
equivalent effects.
5. This Article does not apply to emergency actions respecting
goods covered by Annex 300-B (Textile and Apparel Goods).
Article 802: Global Actions
1. Each Party shall retain its rights and obligations under
Article XIX of the GATT or any safeguard agreement pursuant
thereto except those regarding compensation or retaliation and
exclusion from an action to the extent that such rights or
obligations are inconsistent with this Article. Any Party taking
an emergency action under Article XIX or any such agreement shall
exclude imports of a good from each other Party from such action
unless:
(a) imports from a Party, considered individually, account
for a substantial share of total imports; and
(b) imports from a Party, considered individually, or in
exceptional circumstances imports from Parties
considered collectively, contribute importantly to the
serious injury, or threat thereof, caused by imports.
2. In determining whether:
(a) imports from a Party, considered individually, account
for a substantial share of total imports, such imports
normally shall not be considered to account for a
substantial share of total imports if such Party is not
among the top five suppliers of the good subject to the
proceeding, measured in terms of import share during
the most recent three-year period; and
(b) imports from a Party or Parties contribute importantly
to the serious injury, or threat thereof, the competent
investigating authority shall consider such factors as
the change in the import share of each Party, and the
level and change in the level of imports of each Party.
In this regard, imports from a Party normally shall not
be deemed to contribute importantly to serious injury,
or the threat thereof, if the growth rate of imports
from a Party during the period in which the injurious
surge in imports occurred is appreciably lower than the
growth rate of total imports from all sources over the
same period.
3. A Party taking such action, from which a good from another
Party or Parties is initially excluded pursuant to paragraph 1,
shall have the right subsequently to include that good of the
other Party or Parties in the action in the event that the
competent investigating authority determines that a surge in
imports of such good of the other Party or Parties undermines the
effectiveness of such action.
4. A Party shall, without delay, deliver written notice to the
other Parties of the institution of a proceeding that may result
in emergency action under paragraph 1 or 3.
5. In no case shall a Party impose restrictions on a good in an
action under paragraph 1 or 3:
(a) without delivery of prior written notice to the
Commission, and without adequate opportunity for
consultation with the Party or Parties against whose
good the action is proposed to be taken, as far in
advance of taking the action as practicable; and
(b) that would have the effect of reducing imports of such
good from a Party below the trend of imports of such
good from that Party over a recent representative base
period with allowance for reasonable growth.
6. The Party taking an action pursuant to this Article shall
provide to the Party or Parties against whose good the action is
taken mutually agreed trade liberalizing compensation in the form
of concessions having substantially equi