NAFTA: Treaty | Page 2

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 equivalent trade effects to that Party or Parties or
equivalent to the value of the additional duties expected to result from
the action. If such Parties are unable to agree upon compensation, the
Party against whose good the action is taken may take action having
trade effects substantially equivalent to the action taken under
paragraph 1 or 3.
Article 803: Administration of Emergency Action Proceedings
1. Each Party shall ensure the consistent, impartial and reasonable
administration of its respective laws, regulations, decisions and rulings
governing all emergency action proceedings.
2. Each Party shall entrust determinations of serious injury, or threat
thereof, in emergency action proceedings to a competent investigating
authority, subject to review by judicial or administrative tribunals, to
the extent provided by domestic law. Negative injury determinations
shall not be subject to modification, except by such review. The
competent investigating authority empowered under domestic law to
conduct such proceedings should be provided with the necessary
resources to enable it to fulfill its duties.
3. Each Party shall adopt or maintain equitable, timely, transparent and
effective procedures for emergency action proceedings, in accordance
with the requirements set out in Annex 803.
4. This Article does not apply to emergency actions respecting goods

covered by Annex 300-B (Textile and Apparel Goods).
Article 804: Dispute Settlement in Emergency Action Matters
No party may request the establishment of an arbitral panel under
Article 2008 regarding any proposed emergency action.
Article 805: Definitions
For purposes of this Chapter:
competent investigating authority means the "competent investigating
authority" of a Party as defined in Annex 804;
contribute importantly means an important cause, but not necessarily
the most important cause;
critical circumstances means circumstances where delay would cause
damage that would be difficult to repair;
domestic industry means the producers as a whole of the