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1
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2
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3
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4
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5
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6
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7
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8
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9
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- Differ from AD/CVD:
- Don’t require “unfair” practice
- “serious” vs “material” injury
- To be taken on MFN basis (with certain exception)
- Have to “pay” when take them (as a rule)
- Note : “SG measures are extraordinary remedies to be taken only in
emergency situations” (US – Line Pipe (DS202))
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10
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- A determination that,
- As a result of (i) unforeseen developments and (ii) the effect of a
Member’s obligations under GATT 1994
- A product is being imported in such increased quantities
- As to cause or threaten to cause
- Serious injury
- To the domestic industry
- Producing like or directly competitive products
- (GATT:XIX & Art. 2.1)
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11
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- Must establish and publish procedures, including:
- Public notice to interested parties
- Public hearings
- Opportunity to address public interest
- Published report of findings and conclusions
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12
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- Absolute
- Relative to domestic production
- Increase must be sufficiently recent, sudden, sharp and significant
- (Argentina -- footwear etc.)
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13
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- Identify injury caused by factors other than increased imports, and
demonstrate that such injury has not been attributed to increased
imports (“non-attribution”)
- No specific formula to separate the non-attribution. (US – Line Pipe
(AB, DS202; March 2002)
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14
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- General principles
- Applied to all imports irrespective of their source (MFN)
- Only to the extent necessary to prevent injury AND to facilitate
adjustment
- (Art. 2.2 & 5.1)
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15
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- Only for such period of time as may be necessary to prevent or remedy
serious injury and facilitate adjustment
- Not exceed 4 years
- Extend to 8 years if continuation necessary and industry adjusting (no
extension of modulated quota)
- Progressive liberalization if longer than 1 year
- Mid-term review if longer than 3 years
- (Art. 7)
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16
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- Members taking safeguard measures have to “pay” for them through
compensation or equivalent concessions
- Consult with Members having substantial export interests
- If can’t agree on compensation in 30 days, Member may suspend equivalent
concessions unless Council on Trade in Goods disapproves
- Right of suspension cannot be exercised in first 3 years, provided:
- There is an absolute increase in imports
- Measure is consistent with Agreement
- (Art. 8)
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17
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- Measures shall not apply to developing countries with imports
- That do not exceed 3 per cent of total imports individually
- Unless developing countries under 3 per cent together account for more
than 9 per cent of total imports
- (Art. 9.1)
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