Definitive safeguard measures

Tariff measures    back to top

Other than the general requirement that safeguard measures be applied only to the extent necessary to remedy or prevent serious injury and to facilitate adjustment, the Agreement provides no guidance as to how the level of a safeguard measure in the form of an increase in the tariff above the bound rate should be set.

  

Level of quotas and quota modulation    back to top

If the measure takes the form of a quantitative restriction, the level must not be below the actual import level of the most recent three representative years, unless there is clear justification for setting a different, lower, level. Rules also govern how quota shares are to be allocated among supplier countries based on past market shares. These levels may be departed from (i.e. the quota levels may be modulated) if (i) the percentage increase in imports from certain Members has been disproportionate to the overall increase in imports, (ii) the reasons for the departure from the general rule are justified, and (iii) the conditions of such a departure are equitable to all suppliers of the product concerned.

  

Duration and review of measures    back to top

The maximum duration of any safeguard measure is four years, unless it is extended consistent with the Agreement's provisions. In particular, a measure may be extended only if it is found, through a new investigation, that its continuation is necessary to prevent or remedy serious injury, and only if evidence shows that the industry is adjusting. The initial period of application plus any extension generally cannot exceed eight years (See:special and differential treatment). In addition, safeguard measures in place for longer than one year must be progressively liberalized at regular intervals during the period of application. If a measure is extended beyond the initial period, and it should continue to be liberalized. Any measure of more than three years duration must be reviewed at mid-term. If appropriate, based on that review, the Member applying the measure must withdraw it or increase the pace of its liberalization.

  

Level of concessions and other obligations    back to top

General rule

Members applying safeguard measures generally must “pay” for them through payment of compensation. A Member applying a safeguard measure must maintain a substantially equivalent level of concessions and other obligations with respect to affected exporting Members. To do so, any adequate means of trade compensation may be agreed among the affected Members through consultation. Absent such agreement on compensation within 30 days, the affected exporting Members individually may suspend substantially equivalent concessions and other obligations (i.e., “retaliate”) unless the Council for Trade in Goods disapproves.   

Partial exception

The right to retaliate, if compensation is not agreed on, cannot be exercised during the first three years of application of a safeguard measure if the measure is taken based on an absolute increase in imports, and otherwise conforms to the provisions of the Agreement.

  

Reapplication of measures to a product    back to top

Special rules limit re-application of safeguard measures to a given product. Ordinarily, a safeguard may not be applied again to a product until a period equal to the duration of the original safeguard measure has elapsed provided that such period of non-application must generally be at least two years. Nonetheless, if a new safeguard measure has a duration of 180 days or less, it may be applied so long as one year has elapsed since the date the original safeguard measure was introduced, and so long as no more than two safeguard measures have been applied on the product during the five years immediately preceding the date of introduction of the new safeguard measure ( See special and Differential Treatment.)