Article 2
1. Until the adoption and entry into force of a specific Union legislative act implementing the bilateral safeguard clause for agricultural products of the EMPA and of the ITA, the Commission may, by means of implementing regulations, adopt bilateral safeguard measures that are consistent with the conditions set out in Chapter 9 of the ITA and in this Decision. 2. The Commission shall closely monitor the market for sensitive agricultural products, that is products subject to tariff-rate quotas of the Union in accordance with Section B of Annex 2-A (Tariff Elimination Schedule) to the ITA, in particular as regards import and export trends relating to Mercosur, production and price developments. The Commission shall promptly assess the market situation on the basis of such monitoring, by linking a possible increase in imports of the relevant sensitive agricultural products to the evolution of production and/or consumption, exports, prices and market shares on the Union market, as well as exports from the Union. Every six months, the Commission shall provide a monitoring report to the European Parliament and to the Council assessing the impact of imports of sensitive agricultural products, including on one or several Member States. 3. Where there is sufficient prima facie evidence, in particular obtained by means of the monitoring and market situation assessment referred to in paragraph 2, of serious injury, or the threat of serious injury, to the Union industry for sensitive agricultural products, including in cases where such injury or threat thereof is geographically concentrated in one or more Member States, the Commission shall, without delay, initiate an investigation upon the request of one or more Member States or of any legal person or association acting on behalf of the Union industry active in the sector concerned. 4. For the purposes of this Article, the ‘Union industry’ means the Union producers of like or directly competitive relevant products. 5. The Commission shall examine, as a matter of priority, whether prima facie evidence of serious injury, or the threat of serious injury, to the Union industry exists in cases where there is a surge of imports or a decrease in prices concentrated in one or more Member States, or where there is a surge of imports or a decrease in the price of a product and the Union industry is predominantly established in one or more Member States. The Commission shall treat, in the absence of contrary indications, an increase of more than 5 % year on year, as a rule, in the volume of imports under preferential terms of a given product from Signatory Mercosur States that is subject to a tariff rate quota as prima facie evidence of serious injury, or the threat of serious injury, to the Union industry, provided that at the same time the average import price for those imports from Signatory Mercosur States is at least 5 %, as a rule, below the relevant average domestic price of like or directly competitive products during the same period. 6. The Commission shall treat, in the absence of contrary indications, a decrease of more than 5 % year on year, as a rule, in the average import price of a given product from Signatory Mercosur States imported into the Union on preferential terms that is subject to a tariff rate quota as prima facie evidence of serious injury or the threat of serious injury to the Union industry, provided that at the same time the average import price for that product from Signatory Mercosur States is at least 5 %, as a rule, below the relevant average domestic price of like or directly competitive products during the same period. 7. The Commission shall impose without delay or hesitation, and in the case of sensitive agricultural products at the latest within 21 days of receiving a request as referred to in paragraph 3, provisional bilateral safeguard measures to avert any injury to the Union industry that would be difficult to repair, including where such injury is geographically concentrated in one or more Member States. 8. Given that detailed market monitoring is a standing feature of the Commission’s activities in the agricultural sector, the Commission shall endeavour to conclude any investigation for sensitive agricultural products regarding bilateral safeguard measures as swiftly as possible, with the aim of taking a final decision within four months of receiving a request as referred to in paragraph 3 of this Article. That period may be extended but shall not exceed the one-year period provided for in Article 9.13 of the ITA. 9. A safeguard measure may be imposed where a relevant product originating in a Signatory Mercosur State is imported into the Union: (a) in such increased quantities, in absolute terms or relative to Union production or consumption, and under such conditions as to cause or threaten to cause serious injury to the Union industry, including where such injury or threat thereof is geographically concentrated in one or more Member States; and (b) the increase in imports is the result of obligations incurred under the ITA, including of the reduction or elimination of the customs duties on that product. 10. A safeguard measure may take the form of a temporary suspension of the schedule of tariff reduction for the relevant product, or a reduction of the tariff preference back to the most-favoured-nation level or base-rate level, whichever is lower. 11. Any safeguard measures shall apply for a period of two years, which may be extended by a further period of up to two years in accordance with Article 9.9 of the ITA, provided that the relevant conditions justifying that extension are met.