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SOLM193 - WTO Law Domestic Regulations and Trade Remedies - 2023/24

Safeguards and the Agreement on Safeguards (AoS)

Article XIX of the GATT 1994 provides for safeguard measures (i.e. emergency import restrictions) to counteract sharp increases in imports. These conditions were considered difficult for importing countries to meet, and it became more common for governments of importing countries to request or force exporting countries to implement voluntary export restraints (“VERs”). 

During the Uruguay Round the Agreement on Safeguards was negotiated on the principles of the GATT and contained elements covering: transparency, coverage, objective criteria for action including the concept of serious injury or threat thereof, temporary nature, degressivity and structural adjustment, compensation and retaliation, notification, consultation, multilateral surveillance and dispute settlement.

The resultant Agreement on Safeguards was incorporated in the WTO Agreement.

Topic Questions:

1. Can coffee producers in a WTO Member bring a safeguard complaint against increased imports of tea from another WTO Member?

2. A company files a petition for safeguard relief and argues that because of an international financial crisis, which has struck many WTO Members with consequent high depreciation of their currencies, domestic production of such countries is bound to be massively exported. Is this sufficient to warrant an affirmative determination of “increased imports”?

3(a). Imports of widgets into country X start massively to increase in 2007, with a 30 per cent increase over the entire year. In 2008 there is a further increase of one per cent, and so in 2009, while in 2010 imports decrease by one per cent each year. Assume domestic production remains constant over the 2007-2010 period. In 2011 a safeguard investigation is conducted and, relying upon the 2007-2010 data, an “increased imports” finding is made. Is this consistent with Article 2.1?
3(b). In 2008-2011 imports of widgets into country X increase by 5 per cent each year (all compared to the 2007 volume). Assume domestic production remains constant over the 2008-2011 period. Can a finding of “increased imports” consistent with Article 2.1 be made?
3(c). In 2008-2011 imports of widgets into country X increase by 5 per cent each year (all compared to the 2007 volume). Assume domestic production remains constant over the 1998-2001 period. However, in 2010 and 2011 the value of these imports on the domestic market increases. Does the answer to question 3(b) change in this case?


4. In the dispute: Dominican Republic: Safeguard Measures on Imports of Polypropylene Bags and Tubular Fabric (DS415, 416, 417, 418), the DR suggested that the following were unforeseen developments: a) China’s accession to the WTO b) Tariff liberalization under the Central America – DR FTA and the US-DR-CAFTA. Were these unforeseen developments?




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