Article 5.11 Special Agricultural Safeguard Measures
1. A Party may, in exceptional circumstances, apply a special safeguard measure to a limited number of specified sensitive agricultural goods as indicated by the letters SSG in its Tariff Schedule set out in Annex 1.
2. The Parties shall endeavour to apply special safeguard measures in a manner that is consistent with their commitments under this Agreement to liberalise and promote the expansion of trade in these goods between the Parties.
3. A Party may impose a special safeguard measure on a good only during the period set out in Annex 3 for that good.
4. Such a special safeguard measure may be applied to imports of an agricultural good listed in Annex 3 if the volume of imports of that originating good of the other Party entering the customs territory of the Party during any given calendar year exceeds the specified volume trigger level for that year. The applicable trigger levels are set out in Annex 3.
5. If the conditions in Paragraph 4 are met, a Party may increase the rate of customs duty applicable to the good for the remainder of that calendar year through the application of customs duty on such good at the current MFN applied rate or the base rate, whichever is lower.
6. Supplies of the good in question which were en route on the basis of a contract settled before the additional customs duty is imposed under the terms of this Article shall be exempted from any such additional customs duty, provided that they may be counted in the volume of imports of the good in question during the following year for the purposes of triggering the provisions of Paragraph 4 in that year.
7. A Party shall apply any special safeguard measure in a transparent manner. A Party shall ensure that the current volume of imports is published in a manner which is readily accessible to traders and the other Party. A Party applying a special safeguard measure shall give notice in writing, including relevant data, to the other Party as far in advance as may be practicable and in any event within 10 working days of the implementation of such action. A Party which decides not to apply a special safeguard measure where the specified trigger volume has been or is about to be met, shall notify the other Party promptly of its decision.
8. Upon request of a Party, the Parties shall consult promptly and cooperate in exchanging information, as appropriate, with respect to the conditions for applying a special safeguard measure.
9. A Party may not apply a special safeguard measure on a good that is subject to a measure that the Party has applied pursuant to Article XIX of GATT 1994 and the WTO Agreement on Safeguards, or any other relevant provisions in the WTO Agreement, or to a measure set forth in Articles 5.5 to 5.10, nor may a Party continue to maintain a special safeguard measure on a good that becomes subject to a measure that the Party applies pursuant to Article XIX of GATT 1994 and the WTO Agreement on Safeguards, or any other relevant provisions in the WTO Agreement, or to any measure set forth in Articles 5.5 to 5.10.
10. No later than three years following the entry into force of this Agreement, the Parties shall review the operation of this Article, including the appropriateness of the list of products set out in Annex 3 and the trigger levels, including the growth factors set out in Annex 3. The review shall take into account relevant international, regional and bilateral trade developments.
11. In the event that a Party enters into an agreement or an arrangement with a non-Party following the entry into force of this Agreement that does not provide for special safeguard measures on a good or goods covered in the relevant section of Annex 3 of this Agreement, and where the non-Party is a substantial supplier of the good or goods, the Parties shall, by mutual consent, enter into consultations on the scope for that good or those goods to be withdrawn from Annex.