Safeguards

Safeguards

Safeguards protect domestic industries from sudden import surges that cause or threaten serious harm. They impose temporary restrictions, including tariffs and quotas.

Analysis of safeguards measures includes the identification of sudden import surges, the assessment of harm or threat to domestic industries, and the implementation of restrictions.

Examples of safeguards include tariffs imposed on steel imports to protect local producers, quotas limiting the influx of agricultural products to preserve local farming, and temporary bans on specific electronics to stabilize the domestic market.

Common safeguards measures:

• Tariffs: Additional duties on foreign goods, such as a 25% tariff on imported automobiles.
• Quotas: Import limits, like setting a 1,000-ton cap on textile imports.
• Temporary bans: Restrictions on imports, such as a six-month ban on certain electronics.

World Trade Organization (WTO) guidelines regulate the application of safeguards, ensuring measures are fair and necessary.