A protective measure should not apply to small amounts of members in developing countries. In other words, if imports from a single developing country account for more than 3% of total imports of the product concerned and members of developing countries that, on an individual basis, account for no more than 9% of these imports, those imports are excluded from the measure. Basic introduction to the safeguard agreement Links to the “Safeguard measures” section of the WTO guide “WTO Agreement”, recognising that to this end, a comprehensive agreement applies to all members and is based on the fundamental principles of the 1994 GATT; This agreement establishes rules for the application of safeguard measures, i.e. the measures provided for in Article XIX of the GATT of 1994. 2. In the absence of agreement in the Article 12 consultations, paragraph 3, within 30 days, the exporting members concerned are exempt, no later than 90 days after the application of the measure, from suspending the suspension at the end of a period of thirty days from the date on which the Council for Trade in Goods received a written notification of the suspension. , the application, under the 1994 GATT, of concessions or other commitments essentially equivalent to the trade of the member applying the safeguard measure which the Council for Trade in Goods does not disapprove of the suspension of this measure. As part of the application of safeguard measures, members of developing countries can extend the application of a protection measure by an additional two years beyond the normally permitted deadline. In addition, the rules on the re-application of protection measures for a given product will be relaxed for members of developing countries. The Safeguard Measures Agreement (SG) sets out the rules for the application of safeguard measures under Article XIX of the 1994 GATT. Safeguards are defined as emergency measures to increase imports of certain products where such imports have caused or threaten to cause serious harm to the importing member`s domestic industry (Article 2). These measures, which are carried out, in large or broad terms, in the form of a suspension of concessions or obligations, may consist of quantitative import restrictions or tariff increases above the rates incurred. It is one of three types of trade defence measures available to WTO members in terms of anti-dumping and compensation measures.
The 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 are applied (generally) on a non-selective basis (i.e. the most favoured nation or MFN); they are gradually liberalized while they are in effect; and that the member who imposes it (usually) pays compensation to the members whose trade is concerned.