Safeguard Measures: Why are They Not Applied Consistently with the Rules?

or safeguards refer to emergency import restrictions applied to prevent or remedy serious injury to domestic industry caused by rapid increases in imports. The WTO Agreement on Safeguards and Article XIX of the GATT regulates the application of safeguard measures. Unlike anti-dumping actions and countervailing duties, safeguard measures are applicable regardless of the existence of any unfair trade practices on the part of exporters. Safeguard measures are significant as they interfere with legitimate trade through unilateral restrictions on imports, and therefore, their abuse may well lead to the destabilization of the world trading system. WTO Members have had considerable difficulty defending their safeguard measures when challenged in the dispute settlement panel process. Most of the challenged safeguard measures have been found inconsistent with relevant rules. This paper analyzes why safeguard measures have not been applied consistently with the rules and proposes regulatory changes to improve the clarity and consistency of the disciplines of safeguards.