1. Subject to paragraphs 2 and 4, and during the transition period only, if a good originating in the territory of one Party is, as a result of the reduction or elimination of a duty provided for in Chapter Four, being imported into the territory of the other Party in such increased quantities, in absolute terms, and under such conditions so that the imports of such good from the exporting Party alone constitute a substantial cause of serious injury to a domestic industry producing a like or directly competitive good, the importing Party may, to the extent necessary to remedy the injury:

2. The following conditions and limitations shall apply to an action authorized by paragraph 1:

3. A Party may institute a bilateral emergency action after the expiration of the transition period to deal with cases of serious injury to a domestic industry arising from the operation of this Agreement only with the consent of the other Party.

4. The Party taking an action pursuant to this Article shall provide to the other Party 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 exporting Party may take tariff action having trade effects substantially equivalent to the action taken by the importing Party under paragraph 1.

1. With respect to an emergency action taken by a Party on a global basis, the Parties shall retain their respective rights and obligations under Article XIX of the General Agreement on Tariffs and Trade subject to the requirement that a Party taking such action shall exclude the other Party from such global action unless imports from that Party are substantial and are contributing importantly to the serious injury or threat thereof caused by imports. For purposes of this paragraph, imports in the range of five percent to ten percent or less of total imports would normally not be considered substantial.

2. A Party taking an emergency global action, from which the other Party is initially excluded pursuant to paragraph 1, shall have the right subsequently to include the other Party in the global action in the event of a surge in imports of such good from the other Party that undermines the effectiveness of such action.

3. A Party shall, without delay, provide notice to the other Party of the institution of a proceeding that may result in an emergency action under paragraphs 1 or 2.

4. In no case shall a Party take an action authorized under paragraphs 1 or 2, imposing restrictions on a good:

5. The Party taking an action pursuant to this Article shall provide to the other Party 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 exporting Party may take action having trade effects substantially equivalent to the action taken by the importing Party under paragraph 1.

Articles 1806 (Arbitration) and 1807 (Panel Procedures) shall not apply with respect to proposed actions under this Chapter. Any dispute with respect to actual actions not resolved by consultation shall be referred to arbitration under Article 1806.

For purposes of this Chapter:

contribute importantly means an important cause, but not necessarily the most important cause, of serious injury from imports;

emergency action means any emergency action taken after the entry into force of this Agreement; and

surge means a significant increase in imports over the trend for a reasonable recent base period for which data are available.