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article 15 countervailing measures
1. the parties maintain their rights and obligations under article vi of the gatt 1994 and the agreement on subsidies and countervailing measures which form part of the wto agreement.
2. countervailing actions taken pursuant to the wto agreement on subsidies and countervailing measures shall not be subject to chapter 11 of this agreement.
3. before a party initiates an investigation to determine the existence, degree and effect of any alleged subsidy, as provided for in article 11 of the wto agreement on subsidies and countervailing measures, the party considering initiating an investigation shall notify in writing as soon as possible the party whose products are subject to investigation and allow for a consultation with a view to finding a mutually acceptable solution. the consultation shall take place under the framework of the fta joint commission established under chapter 10, if either party so requests within 10 days from the receipt of the notification.
article 16 anti-dumping
1. the parties maintain their rights and obligations under article vi of the gatt l994 and the wto agreement on implementation of article vi of the gatt 1994.
2. anti-dumping actions taken pursuant to article vi of the gatt 1994 and the wto agreement on implementation of article vi of the gatt 1994 shall not be subject to chapter 11 of this agreement.
article 17 global safeguard measures
1. the parties maintain their rights and obligations under article xix of the gatt l994 and the wto agreement on safeguards.
2. actions taken pursuant to article xix of the gatt 1994 and the wto agreement on safeguards shall not be subject to chapter 11 of this agreement.
article 18 bilateral safeguard measures
1. during the transition period only, if as a result of the reduction or elimination of a customs duty under 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 constitute a substantial cause of serious injury or threat of serious injury to domestic industry producing a like or directly competitive product, the importing party may:
(a) suspend the further reduction of any rate of customs duty on the good provided for under this agreement; or
(b) increase the rate of customs duty on the good to a level not to exceed the lesser of:
(i) the mfn applied rate of customs duty on the good in effect at the time the measure is taken; or
(ii) the mfn applied rate of customs duty on the good in effect on the date of entry into force of this agreement.
2. the following conditions and limitations shall apply to an investigation or the application of a measure.
(a) a party shall immediately deliver written notice to the other party upon:
�i � initiating an investigatory process relating to serious injury or threat thereof and the reasons for it;
(ii) taking a provisional safeguard measure according to paragraph 3;
(iii) making a finding of serious injury or threat thereof caused by increased imports;
(iv) taking a decision to apply or extend a safeguard measure; and
(v) taking a decision to modify a measure previously undertaken.
(b) in making the notification referred to in sub-paragraphs (a)(ii) to (v), the party proposing to apply or extend a safeguard measure shall provide the other party with all pertinent information, which shall include evidence of serious injury or threat thereof caused by the increased imports, precise description of the good involved and the proposed measure, proposed date of introduction and expected duration; the party proposing to apply a measure shall also provide any additional information which the other party considers pertinent;
(c) a party proposing to apply a measure shall provide adequate opportunity for prior consultations with the other party as far in advance of taking any such measure as practicable, with a view to reviewing the information arising from the investigation, exchanging views on the measure and reaching an agreement on compensation set out in paragraph 4. the parties shall in such consultations review, inter alia, the information provided under sub-paragraph (b), to determine:
(i) compliance with the other provisions of this article;
(ii) whether any proposed measure should be taken; and
(iii) the appropriateness of the proposed measure, including consideration of alternative measures;
(d) a party shall apply the measure only following an investigation by the competent authorities of such party in accordance with articles 3 and 4.2(c) of the wto agreement on safeguards; and to this end, articles 3 and 4.2(c) of the wto agreement on safeguards are incorporated into and made part of this agreement mutatis mutandis;
(e) in undertaking the investigation described in paragraph (d), a party shall comply with the requirements of sub-paragraphs 2(a) and (b) of article 4 of the wto agreement on safeguards; and to this end, sub-paragraphs 2(a) and (b) of article 4 are incorporated into and made part of this agreement mutatis mutandis;
(f) no bilateral safeguard measure shall be maintained:
(i) except to the extent and for such time as may be necessary to remedy serious injury and to facilitate adjustment;
(ii) for an initial period exceeding one year, with an extension exceeding one year; or
(iii) beyond the expiration of the transition period, regardless of its duration or whether it has been subject to extension;
(g) no measures shall be applied to the import of a product, which has previously been subject to such a measure, for a period of, at least, two years from the expiry of the measure;
(h) no bilateral safeguard measure shall be taken against a particular product while a global safeguard measure in respect of that product is in place; in the event that a global safeguard measure is taken in respect of a particular product, any existing bilateral safeguard measure which is taken against that product shall be terminated; and
(i) upon the termination of the safeguard measure under this article, the rate of duty shall be the duty set out in the party s schedule in annex i as if the measure had never been applied
3. in critical circumstances where delay would cause damage that would be difficult to repair, a party may take a provisional safeguard measure pursuant to a preliminary determination that there is clear evidence that increased imports have caused or are threatening to cause serious injury. the duration of the provisional measure shall not exceed 200 days. such a measure should take the form of tariff increase, to be promptly refunded if the subsequent investigation does not determine that increased imports have caused or threatened to cause serious injury to a domestic industry. the duration of any such provisional measure shall be counted as a part of the initial period and any extension of a definitive measure.
4. the party proposing to apply a measure described in paragraph 1 shall provide to the other party a mutually agreed adequate means of trade liberalising compensation in the form of concessions having substantially equivalent trade effects or equivalent to the value of the additional duties expected to result from the measure. if the parties are unable to agree on compensation within 30 days in the consultations referred to in sub-paragraph 2(c), the party against whose originating goods the measure is applied may take action having trade effects substantially equivalent to the measure applied under this article. this action shall be applied only for the minimum period necessary to achieve the substantially equivalent effects, and in any case shall be terminated no later than the date of the termination of the safeguard measure.
5. in applying measures under this article, each party shall:
(a) ensure the consistent, impartial and reasonable administration of its laws, regulations, decisions and rulings governing all safeguard investigation proceedings;
(b) entrust determinations of serious injury or threat thereof in safeguard investigation proceedings to a competent investigating authority; and
(c) adopt or maintain equitable, timely, transparent and effective procedures for safeguard investigation proceedings.
6. for the purposes of this article:
(a) domestic industry means, with respect to an imported product, the producers as a whole of the like or directly competitive product or those producers whose collective production of the like or directly competitive product constitutes a major proportion of the total domestic production of such product;
(b) provisional safeguard measure means a provisional safeguard measure described in paragraph 3;
(c) safeguard measure means a safeguard measure described in paragraph 1;
(d) serious injury means a significant overall impairment in the position of a domestic industry;
(e) threat of serious injury means serious injury that, on the basis of facts and not merely on allegation, conjecture or remote possibility, is clearly imminent; and
(f) transition period means the three year period beginning on the date of entry into force of this agreement; except that in the case of a product where the liberalisation process lasts five or more years, the transition period shall last until such a product reaches zero tariff according to the schedule as set out in annex i.
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