Post Date : 99-12-01
As described by John H. Jackson, safeguard measures are permitted to be taken, under certain conditions, by importing countries to protect their domestic industries in response to fair trade practices, while other import relief measures may be taken to unfair trade practices, i.e. dumping and subsidy. According to Art. 2 of the SG Agreement, a Member may impose a safeguard measure if a surge in imports causes or threatens to cause serious injury to its domestic industry, and there must be a causal link between increased imports and serious injury.
Prior to imposing a safeguard measure, an investigation shall be completed by competent authorities pursuant to procedures previously established and made public in order to avoid arbitrary methods. The investigation shall be announced publicly, and public hearings or other appropriate means shall be provided thereof for interested parties to present evidence and voice their views. The findings and reasoned conclusions of the investigation shall be published by competent authorities, and if a safeguard measure is imposed, it shall be applied only to the extent necessary to prevent or remedy serious injury and facilitate adjustment. The period shall not exceed 4 years unless it is extended by a new investigation which reviews and determines that continuation of the safeguard measure is necessary. Under critical circumstances, a provisional safeguard measure may be taken in accordance with a preliminary determination if there is clear evidence showing that delay of protection measures would cause damage which would be difficult to remedy, in which case, the duration of such a provisional measure shall not exceed 200 days. Including the period of any provisional measure, the total duration of a safeguard measure cannot exceed 8 years.
The Agreement provides special and differential treatment for developing country Members. In applying safeguard measures, developing country Members receive 2 extra years beyond the maximum period permitted, thus, they may apply a safeguard measure for up to 10 years. Moreover, a single developing country Member shall be exempted from safeguard measures as long as its share of imports of the product concerned in the importing Member accounts for no more than 3 per cent, unless the shares of these developing country Members collectively account for more than 9 per cent.
Actions regarding the complete process for imposing safeguard measures shall be notified to the Committee on Safeguards, such as initiating an investigatory process, making a finding of serious injury or threat thereof caused by increased imports, taking a decision to apply or extend a safeguard measure. In addition, to enhance transparency, Members shall notify promptly their relevant legislation as well as any modifications made to it.