The Agreement On Safeguards

(c) This Agreement shall not apply to measures requested, taken or maintained by a Member under provisions of GATT 1994 other than Article XIX and multilateral trade agreements set out in Annex 1A than this Agreement, or under protocols and conventions or agreements concluded under GATT 1994. Prohibits so-called “grey area” measures, such as voluntary restraint agreements and orderly marketing agreements. In its own words, the SG Agreement, which explicitly applies to all members in the same way, aims to clarify and strengthen GATT disciplines, including those of Article XIX; (2) to re-establish multilateral control over safeguard measures and to eliminate measures that are beyond that control; and (3) promote structural adjustment of industries affected by increased imports, thereby increasing competition in international markets. 2. If, within thirty days, the consultations referred to in Article 12(3) have not reached an agreement, the exporting Members concerned shall be free to suspend, no later than 90 days after the application of the measure, after the expiry of thirty days from the date on which written notification of such suspension was received by the Council for Trade in Goods; the application of substantially equivalent concessions or other obligations under GATT 1994 to the trade of the member applying the safeguard measure, the suspension of which the Council for Trade in Goods does not view with a negative eye. Once a security measure has been implemented, it will have to be progressively liberalised over time. Protective measures cannot normally last more than four years, but they can be extended for a maximum of eight years if the country implementing the protection measure deems it necessary to prevent or repair serious damage. Developing countries can maintain security measures for up to ten years. All safeguard measures require the payment of compensation — in the form of substantially equivalent trade concessions — for each implementation after three years. (b) In addition, a Member may not seek, not take or maintain voluntary export restrictions, orderly marketing regimes or other similar measures on the export or import side.

(3), (4) These include measures taken by a single Member and measures under agreements, agreements and arrangements concluded by two or more Members. Any measure in force on the date of entry into force of the WTO Agreement shall be brought into conformity with this Agreement or progressively repealed in accordance with paragraph 2. Further recognizing that, to this end, a comprehensive agreement applicable to all Members, based on the fundamental principles of GATT 1994, applies, for example, only to “special safeguard measures” provided for in Article 5 of the WTO Agreement on Agriculture and to “transitional safeguards” under Article 6 of the WTO Agreement on Textiles and Clothing. See chapters 6 and 9 of this book. 2. (a) In cases where a quota is allocated among the supplier countries, the Member applying the restrictions may request an agreement on the allocation of quota shares with all other Members having a major interest in delivering the product concerned. In cases where this method is reasonably inapplicable, the Member concerned shall allocate to Members having a material interest in the delivery of the product a share of the total quantity or value of imports of the product, on the basis of the shares of the total quantity or value of imports of the product delivered by those Members during a previous representative period, taking due account of particular factors which have or could affect trade in the product. . .

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