Agreement on Safeguards: a WTO agreement setting out when and how members may resort to action under GATT Article XIX, also called escape- clause action. This Article deals with the possibility of emergency action to protect domestic industry from an unforeseen increase in imports which is causing, or likely to cause, serious injury to the industry. “Serious injury” is defined as a significant overall impairment in the position of a domestic industry, and “threat of serious injury” means that such injury is clearly imminent. The Agreement notes that a finding of a threat of serious injury must be based on facts, not merely an allegation, conjecture or remote possibility. The Agreement sets out criteria for safeguards investigation which include public notice for hearings and other appropriate means for interested parties to present evidence. The criteria may include whether a safeguard measure would be in the public interest. If a delay in taking safeguard action would cause damage difficult to repair, provisional safeguards measures not exceeding 200 days may be taken. Safeguards action must be non-discriminatory. It must be imposed against the product and not against the source of the product. In other words, even though products from country X might be perceived to be the main problem, country X may not be singled out for import reductions. Selectivity is possible only if (i) if it is clear that imports from certain countries have increased disproportionately in the period under consideration, (ii) all the other conditions for taking safeguard action have been satisfied, and (iii) if this would be equitable to other suppliers. Generally, the duration of a safeguards measure should not exceed four years, though this may in some circumstances be extended to a maximum of eight years. Any measure imposed for more than one year must be accompanied by structural adjustment aimed at liberalizing access. Members taking safeguards action may have to offer compensation. The Agreement prohibits so- called grey-area measures, including voluntary restraint arrangements. All safeguards measures in force on 1 January 1995 had to be phased out within five years. See also de minimis safeguards rule, Transitional Product-Specific Safeguard Mechanism and transitional safeguards mechanism.