XIX Emergency Action on Imports of Particular Products
  1(a) Provides a safeguard mechanism to temporarily withdraw concessions due to (i) "unforeseen developments" and (ii) negotiated concessions, which result in sharply increase imports and therefore "cause or threaten serious injury to domestic producers."
  1(b) Extends the safeguard provision to members of preferential trade arrangements, by allowing them to ask each other to temporarily withdraw concessions on their behalf.
  2 Requires timely notification and opportunities for consultation when safeguard actions are planned.
  3(a) Allows parties injured by safeguard actions to retaliate within 90 days after the action takes effect, following a 30-day advance notification.
  3(b) Advance notice is not required when safeguard actions are implemented prior to consultations.

 

Agreement on safeguards
  1 Applies this Agreement to Article XIX of GATT 1994.
  2 Sets forth the conditions under which safeguard measures may be applied: (i) increased imports and (ii) serious injury or threat thereof caused by such increased imports It also contains the requirement that such measures be applied on an MFN basis.
  3 Requires a publicized investigation under Article X of GATT 1994 (not required under Article XIX of GATT 1947).
  4 Defines terms
  5 A quantitative restriction, if used, shall not reduce the quantity of imports below the average of imports in the last three representative years for which statistics are available, without justification. It must also be nondiscriminatory.
  6 Authorizes tariffs as a provisional safeguard for up to 200 days under "critical circumstances."
  7 Limits safeguard measures to a 4-year maximum but can be extended for up to 8 years total, with progressive liberalization while in effect. No safeguard measure shall be applied again for a period of time equal to that during which such measure had been previously applied. (Allows 1-year lapse for safeguards up to 180 days in the case of no more than 2 measures in the previous 5 years.)
  8 Requires efforts to compensate within a 30-day negotiation period, or, if negotiations fail, authorizes retaliation within 90 days after the measure is applied unless the cause was an absolute increase in imports.
  9 Prohibits safeguards against developing country Members with import shares up to 3 percent individually or 9 percent collectively. Also allows developing country Members to apply measures for an extra two years and re-apply them after a lapse of half the time of the previous measure.
  10 Requires termination of existing safeguard measures within the later of 2000 or 8 years after implementation.
  11 Bans "grey area" measures such as "any voluntary export restraints, orderly marketing arrangements or any other similar measures on the export or the import side." Requires termination of existing measures by the start of 1999, with an extentsion to 12/31/99 for at most one exception (claimed only for EC/Japan trade in vehicles).
  12 Requires notification and consultation regarding safeguards.
  13 Establishes for monitoring purposes a Committee on Safeguards, under the authority of the Council for Trade in Goods, which shall be open to the participation of any Member indicating its wish to serve on it.
  14 Applies Articles XXII and XXIII of GATT 1994 as elaborated and applied by the Dispute Settlement Understanding to consultations and the settlement of disputes arising under this Agreement.