- Subject to Article 150, wherever imports of any product, including any primary agricultural product, into a Member State cause serious injury or the threat of serious injury to domestic producers of like or directly competitive products in any industry or specific sector of any industry, the importing Member State shall be free to impose restrictions in respect of such product if:
(a) the import of the product in question results in a substantial decrease in demand for the like or directly competitive product produced within its jurisdiction; and
(b) the decrease in demand is directly linked to an increase in imports consigned from another Member State.
- Where a Member State decides to exercise its rights under paragraph I, it may provisionally, until a determination by COTED is made:
(a) limit imports of the product of Community origin by means of quantitative restrictions at a rate not less than the rate of such imports during any period of 12 months which ended 12 months before the date on which the restrictions entered into force;
(b) take such other measures either instead of or in addition to quantitative restrictions in accordance with sub-paragraph (a) as COTED may authorise.
- In applying the restrictions in accordance with paragraph 2, a Member State shall not discriminate among the sources of supply or the nationality of suppliers, and shall give consideration to the proportionate share of the market previously enjoyed by each Member State.
- Where a Member State:
(a) intends to act in accordance with paragraph 2, it shall, prior to taking such action, enter into consultations with affected Member States and notify COTED of that intention and the nature of the action;
(b) is unable to comply with sub-paragraph (a) of this paragraph, it shall, in taking the action, immediately notify COTED of the application and the nature of the action.
- The Member State at the time of taking such action in accordance with paragraph 2 shall submit to COTED:
(a) such information as is reasonably available, including:
(i) the identity of the producers and the length of time during which the producers of the like or directly competitive product have been in production;
(ii) a complete description of the product and the annual volume of production;
(iii) an estimate of the size by volume of the domestic market, the share by volume in the domestic market of the domestic product, imports from other Member States and from third States;
(iv) information on changes in the level of sales and employment for the periods comparable to the periods during which imports have increased; and
(v) any other information as COTED may from time to time prescribe;
(b) a programme setting out the measures to be taken to assist the domestic producers to alleviate the difficulties they face and to restore their position in the domestic market. 5, and:
- COTED shall give its earliest consideration to the submission made under paragraph
(a) make a determination of the appropriateness of the restrictions and whether they shall be continued;
(b) where it decides that the restrictions shall be continued, determine the adequacy of the programme and the period for which the restrictions shall continue.
- Restrictions applied by a Member State pursuant to paragraph 2 shall be confined to those necessary to forestall a threat of serious injury or otherwise eliminate injury.
- The Member States in applying restrictions pursuant to paragraph 2 shall not discriminate and:
(a) shall progressively relax them as the relevant conditions improve;
(b) may maintain them only to the extent that the conditions mentioned in paragraph 1 of this Article continue to justify their application.
- If a Member State has demonstrated that the imposition of measures by another Member State under paragraph 2 has caused injury or the threat of serious injury to domestic producers in its jurisdiction, then the first mentioned Member State may request consultation with the Member State maintaining the restrictions and notify COTED accordingly.
- Where the consultations do not result in a mutually agreed solution, the matter may be referred to COTED for a determination.
- If COTED is not satisfied that the Member States applying restrictions are acting in accordance with the provisions of paragraph 7, it may recommend to the Member State adversely affected thereby, alternative arrangements to the same end.