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World Trade Organization Toolkit : Trade Remedies

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Safeguards are measures taken in violation of GATT obligations that cause injury to domestic industries of a product like, or competitive with, or whose import is increasing.

The Agreement on Safeguards lays down the rules for imposition of safeguards. First of all, it imposes a series of procedural requirements. No safeguard measure may be applied unless an investigation is conducted by competent authorities pursuant to previously published procedures. Reasonable public notice to all interested parties and the provision of a public hearing or other means by which interested parties can present their views and evidence is also mandatory. The competent authorities must ultimately "publish a report setting forth their findings and reasoned conclusions reached on all pertinent issues of fact and law." A non-confidential summary of confidential information submitted within the framework of an investigation must be made available to all interested parties.

Regarding substantive requirements, Article XIX of the GATT 1994 and paragraph 1 of Article 2 of the Agreement on Safeguards provide that safeguard measures may be imposed only if the product at issue is being imported in such increased quantities, under such conditions as to cause or threaten to cause serious injury to the domestic industry that produces like or directly competitive products.

If a WTO Member determines that injury has occurred under the substantive provisions set forth above, that Member is permitted to suspend the obligation in whole or in part or to withdraw or modify the concession. The measures imposed must, however, be applied only to the extent necessary to prevent or remedy serious injury and to facilitate adjustment.

In practice, Members typically employ tariffs, tariff rate quotas, or quantitative restrictions (primarily quotas) as safeguard measures. These measures must be product-specific and they must be applied to all imports irrespective of source.

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