In principle, safeguard measures cannot target imports from a particular country. However, the agreement describes how quotas can be allocated among supplier countries, even in exceptional cases where imports from certain countries have increased at a disproportionate rate. A safeguard measure should not last more than four years, although it may be extended up to eight years, provided that the competent national authorities determine that the measure is necessary and there is evidence that the industry is adapting. The measures imposed for more than a year must be gradually liberalised. But the WTO is an organization of countries and their governments. The WTO does not deal with business and cannot regulate corporate measures such as dumping. Therefore, the anti-dumping agreement only concerns measures that governments can take against dumping. Governments on both sides deal with subsidies: they subsidize and they exchange subsidies for one another. Therefore, the grant agreement disciplines both subsidies and reactions. The WTO Agreement created a new territory. It prohibits grey area measures and sets deadlines (sunset clause) for all protective measures. The agreement stipulates that Members may not seek, take or maintain voluntary export restrictions, orderly marketing agreements or other similar measures on the export or import side.
Bilateral measures, which were not adapted to the Agreement, were gradually adopted at the end of 1998. Countries were allowed to maintain one of these measures for another year (until the end of 1999), but only the European Union for restrictions on imports of motor vehicles from Japan made use of this provision. Binding tariffs and their equal application to all trading partners (most-favoured-nation treatment or most-favoured-nation law) are the key to the smooth movement of goods. The WTO Agreements respect the principles, but also provide for exceptions in certain circumstances. Three of these questions are: What is the name of this agreement? Agreement on Implementation of Article VI [i.e. 6] of the General Agreement on Tariffs and Trade 1994 The Agreement contains a definition of the term “subsidy”. It also introduces the concept of a specific subsidy, i.e. a subsidy offered only to an enterprise, industry, group of enterprises or group of industries in the country (or state, etc.) that provides the subsidy. The disciplines set out in the agreement apply only to certain subsidies. These may be domestic or export subsidies. The Agreement establishes criteria for assessing whether there is serious injury caused or threatened and the factors to be taken into account in determining the impact of imports on domestic production. When introduced, a safeguard measure should be applied only to the extent necessary to prevent or remedy serious injury and to assist the industry concerned in adapting.
Where quantitative restrictions (quotas) are introduced, import volumes should not, as a general rule, be reduced below the annual average of the last three representative years for which statistics are available, unless it is clearly justified that a different level is necessary to prevent or remedy serious injury. Countervailable subsidies: In this category, the complaining country must demonstrate that the subsidy harms its interests. Otherwise, the subsidy is authorized. The agreement defines three types of damage they can cause. A country`s subsidies can harm a domestic industry in an importing country. They can harm competing exporters from another country if both compete in third markets. And domestic subsidies in a country can hurt exporters trying to compete in the domestic market of the subsidizing country. If the Dispute Settlement Body decides that the subsidy has an injurious effect, the subsidy must be withdrawn or its adverse effects eliminated.
If the importation of subsidy products harms domestic producers, a countervailing duty may be imposed. The agreement defines two categories of subsidies: prohibited subsidies and countervailable subsidies […].