ANNEX 4
ADDITIONAL FLEXIBILITY ON SAFEGUARDS

  1. An ASEAN Member Country may raise the ASEAN applicable tariffs to the MFN levels when imports from ASEAN sources of highly sensitive commodities subject to the CEPT special concession reach a trigger level. In effect, the ASEAN concession shall be suspended when an import surge threatens domestic producers of the product.

  2. The trigger level will be based on the following formula:

         V = A3(1+ASG)(1+DG)

    where:

         V   = trigger volume; 
    
     A3  = average level of imports from ASEAN in the 3 years
          immediately preceding the last year, expressed in metric tons;
     ASG = growth rate of the share of imports from ASEAN to total
           imports, a number agreed upon in ASEAN is 10% per year;
           and
     DG  = growth rate of domestic consumption, a number agreed upon in
           ASEAN is 2% per year.

  3. The other elements of the special safeguards such as its duration and notification should be consistent with the WTO and that the safeguard action would be to raise the ASEAN applicable tariffs to the MFN level upon the suspension of the concession.