The Secretary-General`s enterprise agreement was widely negotiated due to the increasing application by gaTT contracting parties of a large number of so-called “shadow zones” measures (voluntary bilateral export restrictions, ordered marketing agreements and similar measures) to limit imports of certain products. These measures were not imposed under Article XIX and are therefore not subject to the multilateral discipline of the GATT and the legality of these measures under the GATT was questionable. The agreement now clearly prohibits these measures and contains specific provisions to eliminate the measures in force when the WTO agreement came into force. Article 1 provides that the SG agreement is the instrument for applying the measures provided for in Article XIX of the GATT of 1994. In other words, any measure for which the scope of Article XIX (which allows the suspension of GATT concessions and obligations in defined emergency situations) must be taken in accordance with the provisions of the Treaty on the General Protection Enterprise. The agreement does not expressly apply to measures taken under other provisions of the 1994 GATT, to other annex 1A multilateral trade agreements, or to protocols and agreements or agreements concluded under the 1994 GATT. (s. 11.1 (c)) The repeated application of protection measures for a particular product is limited by the agreement. As a general rule, a safeguard clause can only be re-applied to a product after the expiry of a period equal to the duration of the original safeguard clause, as long as the non-request period is at least two years.
8 Application of protective measuresA member applies safeguards only to the extent necessary to prevent or correct serious injuries and facilitate adjustment. When a quantitative restriction is used, such a measure should not lower the volume of imports below the level of a last period corresponding to the average of imports over the last three representative years. In cases where a quota is distributed among the supplier countries, the member applying the restrictions may endeavour to reach an agreement on the allocation of contingent shares with all other members who have a significant interest in the delivery of the product concerned 15 concession levels and other commitments if no agreement has been reached (…) , at the end of a thirty-day period from the date on which the Council for Trade of Trade goods is informed in writing of this suspension, the application of concessions substantially equivalent to the trade of the member applying the safeguard measure, provided that the Council does not object to the suspension for trade in goods (art.