Article 39
Trade deflection
1. For the purposes of this Article, trade is said to be deflected if,
(a) importsof any particularproductby a Member State from another Member State increase:
(i) as a result of the reduction or eliminationof duties and charges on that product, and
(ii) because duties and charges levied by the exporting Member States on imports of raw materials used for manufacture ofthe product in question are lower than the corresponding duties and charges levied by the importing Member State; and
(b) this increase in imports causes or could cause serious injury to production which is carried on in the territory of the importing Member State.
2. The Council shall keep under review the question of trade deflection and its causes. It shall take such decisions as are necessary, in order to deal with the causes of this deflection.
3. In case oftrade deflection to the detriment of a Member State resulting from the abusive reduction or elimination of duties and charges levied by another Member State, the Council shall study the question in order to arrive at a just solution.
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