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. Members are not required to disclose confidential information in their communications. Before implementing or extending a safeguard, members are required to provide an adequate opportunity for consultation with Members who, as exporters of the product, have significant interests. Among the objectives of these consultations are verification of fact-based information, exchanges of views on the proposed measures and agreements to maintain a substantially equivalent level of concessions and commitments. The results of these consultations must be notified. Interim measures must be notified prior to implementation and consultations should be initiated immediately after these measures are implemented. The results of the consultations, mid-term revisions of the measures taken, any form of concession and/or suspension of the proposed concessions must be communicated without delay to the Commercial Substances Council by the safeguarding committee by the member concerned.
1. A member who proposes to apply a safeguard measure or extend a safeguard measure strives, in accordance with Article 12, paragraph 3, to maintain a level of concessions and other commitments under the 1994 GATT, under the 1994 GATT, which would be affected by such a measure. To achieve this objective, the members concerned can agree on appropriate means of compensation for the negative effects of the measure on their trade. 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. Article 2 sets out the conditions under which safeguards can be applied. These conditions are: (i) increased imports and (ii) serious harm or threat of these imports. It also provides that these measures must be applied on the basis of the MFN. Yes, yes. If you are aware of security measures that are either detrimental to your company`s export or able to do so, contact the U.S. Department of Commerce`s Office of Trade Agreements Negotiations and Compliance hotline.
The U.S. government has information and assistance for U.S. companies who believe they have been harmed by a WTO member country`s non-compliance with the agreement. While it cannot guarantee that your problem can be resolved, the U.S. government can, if necessary, discuss the specific facts of your situation with officials from the other country concerned. (b) a member may depart from the provisions of item (a): when the section 12 consultations, paragraph 3, are conducted under the aegis of the safeguard committee covered by Article 13, paragraph 1, and that the Committee has clear evidence that (i) imports of certain members have increased disproportionately in relation to the overall increase in imports of the product concerned during the representative period – (ii) the reasons for the derogation from the provisions of point (a) are justified; (iii) the terms of this waiver for all
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