However, if a new protection measure lasts 180 days or less, it can be applied as long as one year has elapsed since the original protection measure was introduced and as long as, in the five years immediately preceding the introduction of the new protection measure, the product has not been subject to more than two safeguards. There are many ways to learn more about potential safeguards in countries where your business is doing business. First, your business can be contacted directly by the government considering safeguards (especially if your company is a major exporter of the product concerned) or by a company that imports your product. Second, you can read the official gazettes of the countries to which you export. Third, you may be contacted by the U.S. government after learning that one of our trading partners has decided to open a security investigation. (However, the U.S. government does not publish information on other countries` safeguards in the federal registry.) calls for protection measures to be constantly liberalised over the life of the community; The main guiding principles of the agreement with regard to safeguard measures are that these measures must be temporary; that they can only be taxed if it is found that imports cause serious harm or threaten a competing domestic industry; that they be applied on the basis of a non-selective nation (i.e. the most favoured nation or the MFN), that they are gradually liberalized when they are effective; and that the member who imposes it must pay compensation to the members whose trade is concerned. Prohibits so-called “shadow zones” measures, such as voluntary detention agreements and ordered marketing agreements.
Interim measures must be notified prior to implementation and consultations should be initiated immediately after these measures are implemented. The maximum duration of a safeguard measure is four years, unless it is extended in accordance with the provisions of the agreement. In particular, a measure can only be extended if a new investigation establishes that it is necessary to prevent or repair serious damage and only if the industry is corrected. The initial application period, plus possible extensions, should not normally exceed eight years (see: Special and Differential Treatment). In addition, protection measures applicable for more than one year must be progressively liberalized at regular intervals during the implementation period. If a measure is extended beyond the initial period and should be further liberalized. Any measure lasting more than three years must be reviewed in the medium term. If necessary, the member applying the measure must, on the basis of this review, withdraw it or increase the pace of its liberalisation. The Secretary-General`s enterprise agreement was widely negotiated due to the increasing application by gaTT contracting parties of a large number of so-called “shadow zones” measures (voluntary bilateral export restrictions, ordered marketing agreements and similar measures) to limit imports of certain products. These measures were not imposed under Article XIX and are therefore not subject to the multilateral discipline of the GATT and the legality of these measures under the GATT was questionable. The agreement now clearly prohibits these measures and contains specific provisions to eliminate the measures in force when the WTO agreement came into force. Members are required to inform the Committee of the initiation of an investigation into the existence of serious harm or threat, as well as of the reasons; Findings of serious harm or a threat to increase imports; Decisions on the application or extension of safeguards.
These communications contain the relevant information on which decisions are based. The right to retaliation, if no compensation is agreed, cannot be exercised in the first three years of a safeguard measure if the measure is taken on the basis of an absolute increase in imports and is in another way
