AGREEMENT ON SAFEGUARDS Meaning and
Definition
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The "Agreement on Safeguards" is an international trade agreement that aims to regulate the implementation of safeguard measures by countries in order to protect their domestic industries. It was established as a part of the broader World Trade Organization (WTO) framework to ensure fair and transparent trade practices.
Under the Agreement on Safeguards, a safeguard measure refers to a temporary trade restriction imposed by a country to prevent or alleviate serious injury caused to its domestic industry as a result of an increase in imports. It allows the affected country to impose tariffs, quotas, or other trade restrictions on specific imports for a limited period of time.
The agreement sets out a range of rules and principles that govern the implementation of safeguard measures. These include the requirement of notifying the WTO and other affected members prior to the imposition of a safeguard measure, the provision of a detailed investigation into the cause and effect of increased imports on the domestic industry, and the establishment of a compensation mechanism for affected exporting countries.
The Agreement on Safeguards also emphasizes the principle of non-discrimination, which states that any safeguard measure imposed by a country should be applied uniformly to all WTO members and should not discriminate against any particular country or group of countries. It also encourages transparency in the implementation of safeguard measures by requiring countries to provide timely information and consultations with affected parties.
Overall, the Agreement on Safeguards aims to strike a balance between protecting domestic industries and ensuring that trade remains fair and predictable among WTO members.
