The WTO permits Member Countries to provide affected domestic industries relief against imports under circumstances specified in the General Agreement on Tariffs and Trade 1994 (GATT 1994).

Under Article XIX (Emergency Action on Imports of Particular Products) of GATT 1994, as clarified and reinforced by the WTO Agreement on Safeguards, the importing government may take temporary (general) safeguard measures (higher tariffs, tariff quotas, or quantitative restrictions) against imports if the products at issue are being imported in such increased quantities, either absolute or relative to domestic production, and under such conditions as to cause or threaten to cause serious injury to the domestic industry.

On the other hand, the WTO Agreement on Agriculture allows for the application of special transitional safeguards (additional duty not exceeding one-third of the level of the effective tariff) against importations of agricultural products whose quantitative import restrictions (QR’s) were converted (“tariffied”) into ordinary customs duties and agricultural products designated with the symbol “SSG” (Special Safeguard Measures) in the GATT Schedule of Concessions.

Special safeguard measures may be invoked, if:

●    the volume of imports exceeds a trigger level; or (but not concurrently)

●    the price of imports falls below a trigger price.

In either case, injury to the domestic industry need not be established.

The purpose for the application of safeguard measures is to give the affected domestic industry time to prepare itself for and adjust to increased import competition resulting from the reduction of tariffs or the lifting of quantitative restrictions agreed upon in multilateral trade negotiations.