8 - Article 8, Level of Concessions and Other Obligations

Summary

Chapter 8 explains a process that is unique to the multilateral safeguard mechanism and that is sometimes misunderstood: the process of rebalancing. The chapter examines the conceptual questions that arise with the general notion of rebalancing as relating to a negotiation-derived consequence. It notes that the obligation of maintaining the balance of concessions informs the whole rebalancing exercise, in particular the consultations under Articles 8.1 and 12.3, the consideration of the means of compensation, and the notion of the withdrawal of substantially equivalent concessions and other obligations under the GATT 1994. The Chapter also explains the temporary suspension of the right to take rebalancing action under Article 8.2, and the natural tension that exists between the mandates of this provision and the conduct of dispute settlement proceedings under the DSU.