Annex 41B:
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:
- the rate that was applicable to those goods immediately prior to the date of entry into
force of the NAFTA, and
- 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 41(1) or
(2):
- 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 occupational safety and health, child labor
or minimum wage technical labor standards; and
- 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.
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