| XII | Restrictions to Safeguard the Balance of Payments | |
| 1 | Exempts from Article XI:1 quantity restrictions on imports to "safeguard" a CP's "external financial position and its balance of payments" subject to the provisions of this Article | |
| 2(a) | Restrictions shall be just sufficient to prevent "a serious decline in...monetary reserves" or a "reasonable rate of increase" in cases of "very low monetary reserves" | |
| 2(b) | Provides for phase-out of restrictions imposed under (a) | |
| 3(a) | Mandates that Contracting Parties carry out domestic policies with due regard for sound and lasting balance of payments equilibrium and aim to "adopt measures which expand rather than contract international trade." | |
| 3(b) | Allows prioritization of imports when imposing restrictions. | |
| 3(c) | Specifies that restrictions (i) avoid unnecessary damage, (ii) protect "regular channels of trade" and (iii) protect "patent, trade mark, copyright, or similar procedures." | |
| 3(d) | Allows Contracting Parties to maintain restrictions in cases of "a high level of demand for imports" due to "domestic policies directed towards the achievement and maintenance of full and productive employment or towards the development of economic resources." | |
| 4(a) | Requires immediate notification of instituted restrictions, alternative measures and effects. | |
| 4(b) | Requires annual consultations for any Contracting Party imposing restrictions under this Article. | |
| 4(c) | (i) Consultations may lead to advice for modifications based on inappropriate restrictions; and (ii) Contracting Parties may be allowed to retaliate for recognized damages caused by failure to comply with recommendations based on consultations | |
| 4(d) | "any contracting party which can establish a prima facie case" of inappropriate restrictions, following unsuccessful direct discussions can require consultations and resort to retaliation following failure of the importer to comply with resulting recommendations. | |
| 4(e) | Requires consideration of "any special external factors" affecting exports of the CP "applying the restrictions." | |
| 4(f) | Sets a time limit on determinations of 60 days following initiation of consultations. | |
| 5 | Requires discussions of possible remedies in cases of widespread restrictions due to the "existence of a general disequilibrium which is restricting international trade." | |