For example, the “specific safeguard measures” in Article 5 of the WTO Agreement on Agriculture and the “transitional guarantees” under Article 6 of the WTO Agreement on Textiles and Textiles apply only to agricultural or textile products. See chapters 6 and 9 of this book. The safeguard agreement contains many of the terms contained in U.S. intellectual property law under WTO rules (section 201 of the Trade Act 1974, as amended). Article 1 provides that the SG agreement is the instrument for applying the measures provided for in Article XIX of the GATT of 1994. In other words, any measure for which the scope of Article XIX (which allows the suspension of GATT concessions and obligations in defined emergency situations) must be taken in accordance with the provisions of the Treaty on the General Protection Enterprise. The agreement does not expressly apply to measures taken under other provisions of the 1994 GATT, to other annex 1A multilateral trade agreements, or to protocols and agreements or agreements concluded under the 1994 GATT. (s. 11.1 (c)) 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. Once a security device has been implemented, it will need to be gradually liberalized over time. As a general rule, protection measures should not last more than four years, but they can be extended for up to eight years if the country implementing the protection measure deems it necessary to prevent or repair serious injuries.
Developing countries are allowed to maintain security measures for up to 10 years. All safeguards require the payment of compensation – in the form of substantially equivalent trade concessions – for each implementation beyond three years. 2. (a) In cases where a quota is distributed among the supplier countries, the member applying the restrictions may seek agreement on the allocation of quota shares with all other members who have a considerable interest in delivering the product concerned.