If appropriate based on that review, the Member applying the measure must withdraw it or increase the pace of its liberalization.
Under critical circumstances, defined as circumstances where delay would cause damage that would be difficult to repair, provisional measures may be imposed.
If a measure is extended beyond the initial period of application, it can be no more restrictive during this period than it was at the end of the initial period, and it should continue to be liberalized.
Any measure of more than three years duration must be reviewed at mid-term.
A domestic industry is defined as the producers as a whole of the like or directly competitive products operating within the territory of a Member, or producers who collectively account for a major proportion of the total domestic production of those products.
In determining whether serious injury or threat is present, investigating authorities are to evaluate all relevant factors having a bearing on the condition of the industry, and are not to attribute to imports injury caused by other factors.
In general terms, it has four main components: (1) general provisions (Articles 1 and 2); (2) rules governing Members' application of new safeguard measures (i.e., those applied after entry into force of WTO Agreement (Articles 3-9)); (3) rules pertaining to pre-existing measures that were applied before the WTO's entry into force (Articles 10 and 11); and (4) multilateral surveillance and institutions (Articles 12-14).
Rules also apply as to how quota shares are to be allocated among supplier countries, as to compensation to Members whose trade is affected, and as to consultations with affected Members.
The maximum duration of any safeguard measure is four years, unless it is extended consistent with the Agreement's provisions.
In particular, a measure may be extended only if its continuation is found to be necessary to prevent or remedy serious injury, and only if evidence shows that the industry is adjusting.
Factual Basis for Determination of Serious Injury or Threat Thereof The Agreement defines serious injury as significant impairment in the position of a domestic industry.
Threat of serious injury is threat that is clearly imminent as shown by facts, and not based on mere allegation, conjecture or remote possibility.
These measures were not imposed pursuant to Article XIX, and thus were not subject to multilateral discipline through the GATT, and the legality of such measures under the GATT was doubtful.