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Although we have tried to use plain English content on the site, you may come across specialist terms and acronyms. Find out what they mean in our glossary of terms.
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On occasion, sudden surges in imports can significantly strain domestic industries. In such cases, governments may apply temporary safeguards as a safety-valve to protect domestic producers from injury. Safeguards usually take the form of duty increases to higher than bound rates or quantitative restrictions. They give domestic producers a grace period for adjustment.
The WTO’s Agreement on Safeguards sets out rules for the application of safeguard measures. Safeguards may only be applied when there is an increased level of imports and there is serious injury (or the threat of) to the position of domestic industry caused by those imports.
Safeguards must be applied on a non-selective (most favoured nation) basis and be progressively liberalised while in effect. WTO Members applying safeguards have a duty to compensate other Members whose trade is affected.
The Safeguards Agreement is not the subject of negotiations in the current Doha Round.
