The concept of Safeguard Measures in International Trade plays a crucial role in protecting domestic industries from unexpected surges in imports. As per Article XIX of GATT 1994 and the Agreement on Safeguard, countries have the right to impose temporary import restrictions when their domestic sectors face serious injury or threats due to increased imports. Understanding these trade policies is essential for students preparing for exams and anyone keen on grasping global trade mechanisms.
When a domestic industry suffers serious injury or is under threat from rising imports, the country can take action by either raising import duties beyond bound levels or imposing quantitative restrictions. The framework for such actions is detailed and governed by Article XIX of GATT 1994 and the Agreement on Safeguard.
Safeguard measures are temporary, carefully regulated tools that allow a country to respond to import surges while ensuring fairness in international trade.
Before applying a safeguard measure, the country must carry out a detailed and transparent investigation to assess the impact of rising imports on domestic industries. This ensures decisions are evidence-based and justified.
These measures are inherently temporary, designed to give domestic industries time to adjust without permanently restricting international trade.
Safeguard measures exemplify the principle of burden-sharing in global trade, ensuring that the economic strain from sudden import surges is distributed among all trading partners rather than falling solely on the importing country.
Understanding safeguard measures is vital for students and exam aspirants as it highlights how countries protect their domestic industries, balance global trade obligations, and share economic responsibilities under GATT/WTO. These provisions illustrate practical applications of trade policy principles and underscore the importance of temporary, evidence-based, and equitable measures in international commerce.
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