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Safeguard Measures

This presentation discusses safeguard measures under WTO agreements. It provides background on safeguard provisions in earlier GATT articles and the desire to clarify and regulate safeguard measures. It outlines the structure, coverage, rules for new and old safeguard measures, and special provisions for developing countries.

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28 views12 pages

Safeguard Measures

This presentation discusses safeguard measures under WTO agreements. It provides background on safeguard provisions in earlier GATT articles and the desire to clarify and regulate safeguard measures. It outlines the structure, coverage, rules for new and old safeguard measures, and special provisions for developing countries.

Uploaded by

negamenge
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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e-ppt-sg-215.

ppt

Safeguard Measures

This presentation has been prepared by the Secretariat under its own responsibility. It is for general
information only and is not intended to affect the rights and obligations of Members.

World Trade Organization, 2004

With written permission of the WTO Secretariat, reproduction and use of the material contained in this
document for non-commercial educational and training purposes is encouraged.

WTO – Institute for Training and Technical Cooperation,


Centre William Rappard, 154 Rue de Lausanne, 1211 Geneva 21
Tel: (41 22) 739 56 31 , Fax: (41 22) 739 57 81
Why an Agreement?
e-ppt-sg-215.ppt

1947:
‹ Principle of “Emergency actions”
(safeguards) GATT Art. XIX
Later…
‹ Increase of so-called “grey-area” measures
Bilateral voluntary export restraints
‹
‹ Orderly marketing agreements and
similar measures (to limit imports)
‹ Æ Desire to clarify and better regulate the
use of safeguard measures

2
Historical Background
e-ppt-sg-215.ppt

1947
‹ GATT Art. XIX
Emergency action (safeguards)
‹
‹ GATT Art. XII
‹ Restrictions to safeguard the balance of
payments
‹ GATT Art. XVIII
‹ Governmental assistance to economic
development
‹ XVIII.C (infant industry)

3
e-ppt-sg-215.ppt

Structure
of the Agreement
‹ Coverage
‹ Application of “new” safeguard measures
‹ Rules concerning “old” safeguard measures
‹ Notification and monitoring

4
Coverage
e-ppt-sg-215.ppt

‹ The Agreement defines the use of the


safeguard measures provided for in Art. XIX
of the GATT
‹ Conditions:
‹ Safeguard measures are applicable if:
‹ “a product is being imported into a
Member’s territory in such increased
quantities, absolute or relative to
domestic production, and under such
conditions as to cause or threaten to
cause serious injury to the domestic
industry that produces like or directly
competitive products”
5
e-ppt-sg-215.ppt

… in such increased
quantities …
‹ Absolute …
‹ Relative to domestic production

6
e-ppt-sg-215.ppt

… serious injury …
(threat of)
‹ = significant overall impairment in the
position of a domestic industry
‹ Relevant factors:
‹ Increased imports (value and volume)
‹ Market penetration of imports
‹ Changes in sales
‹ Production
‹ Productivity
‹ Capacity utilization
‹ Profits / losses
‹ Employment

7
… domestic industry
e-ppt-sg-215.ppt

‹ Producers as a whole of the like or directly


competitive products operating within the
territory of a Member (major proportion of
the total domestic production of those
products)

8
e-ppt-sg-215.ppt

“New”
Safeguard Measures
‹ Investigation
‹ Increased imports
‹ Serious injury
‹ Causal link between increased imports and
serious injury (or threat thereof)
‹ Provisional measures (if necessary)
‹ Measures (final)
‹ Increased tariffs
‹ Quotas (if necessary)
‹ MFN principle, as a rule

9
e-ppt-sg-215.ppt

“New”
Safeguard Measures
‹ Maximum duration
‹ 4 years
‹ Extension (max. + 4 years)
‹ Compensation
‹ In principle (agreement on compensation)
‹ If no agreement :
‹ “retaliation”
‹ not within the first 3 years (if absolute
increase in imports)

10
e-ppt-sg-215.ppt

“Old”
Safeguard Measures
‹ Terminated no later than 8 years after first
applied
‹ By 2000 at the latest
‹ “Grey-area” measures phased out by
31.12.1998

11
e-ppt-sg-215.ppt

Special and
Differential Treatment
‹ No safeguard applied to imports from
developing countries if imports are less than
3% (single developing country) or 9%
(developing countries collectively)
‹ Duration of safeguard measures applied by
developing countries: 10 years
(as compared with 8)

12

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