Article 3 — Principles

1. A safeguard measure may be imposed in accordance with this Regulation where a product originating in a country concerned is imported into the Union: (a) in such increased quantities, in absolute terms or relative to Union production or consumption; and (b) under such conditions, as to cause or threaten to cause serious injury to the Union industry; and (c) the increase in imports is the result of the effect of obligations incurred under the Agreement, including of the reduction or the elimination of the customs duties on that product. 2. A safeguard measure may take one of the following forms: (a) a suspension of a further reduction of the rate of customs duty on the product concerned provided for in Annex 10-A (Tariff Elimination Schedule) to the EMPA and Annex 2-A (Tariff Elimination Schedule) to the ITA with the country concerned; (b) an increase in the rate of customs duty on the product concerned to a level which does not exceed the lesser of: (i) the most-favoured-nation applied rate of customs duty on the product concerned in effect at the time the safeguard measure is taken; or (ii) the base rate of customs duty as specified in Annex 10-A (Tariff Elimination Schedule) to the EMPA and Annex 2-A (Tariff Elimination Schedule) to the ITA with the country concerned.