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ANNEX 36B
SUSPENSION OF BENEFITS
1. Where a complaining Party suspends NAFTA tariff benefits in accordance with this Agreement, the Party may increase the rates of duty on originating goods of the Party complained against to levels not to exceed the lesser of:
- (a) the rate that was applicable to those goods immediately prior to the date of entry into force of the NAFTA, and
- (b) the Most-Favored-Nation rate applicable to those goods on the date the Party suspends such benefits,
and such increase may be applied only for such time as is necessary to collect, through such increase, the monetary enforcement assessment.
2. In considering what tariff or other benefits to suspend pursuant to Article 36(l) or (2):
- (a) a complaining Party shall first seek to suspend benefits in the same sector or sectors as that in respect of which there has been a persistent pattern of failure by the Party complained against to effectively enforce its environmental law; and
- (b) a complaining Party that considers it is not practicable or effective to suspend benefits in the same sector or sectors may suspend benefits in other sectors.
