Q17. Consider the following statements about Agreement on Safeguards:
1. Safeguard measures are defined as “emergency” actions with respect to increased imports of particular products, where such imports have caused or threaten to cause serious injury to the importing Member’s domestic industry.
2. Such measures, which in broad terms take the form of suspension of concessions or obligations, can consist of quantitative import restrictions or of duty increases to higher than bound rates.
Which of the following statements are correct?
Q17. Consider the following statements about Agreement on Safeguards:
1. Safeguard measures are defined as “emergency” actions with respect to increased imports of particular products, where such imports have caused or threaten to cause serious injury to the importing Member’s domestic industry.
2. Such measures, which in broad terms take the form of suspension of concessions or obligations, can consist of quantitative import restrictions or of duty increases to higher than bound rates.
Which of the following statements are correct?
The correct option is C c) Both 1 and 2
The Agreement on Safeguards (“SG Agreement”) sets forth the rules for the application of safeguard measures pursuant to Article XIX of GATT 1994.
Safeguard measures are defined as “emergency” actions with respect to increased imports of particular products, where such imports have caused or threaten to cause serious injury to the importing Member’s domestic industry.
Such measures, which in broad terms take the form of suspension of concessions or obligations, can consist of quantitative import restrictions or of duty increases to higher than bound rates.
Major guiding principles of the Agreement with respect to safeguard measures are that such measures must be temporary; that they may be imposed only when imports are found to cause or threaten serious injury to a competing domestic industry; that they be applied on a non-selective (i.e., most-favoured-nation, or “MFN”, basis; that they be progressively liberalized while in effect; and that the Member imposing them must pay compensation to the Members whose trade is affected.
c) Both 1 and 2
The Agreement on Safeguards (“SG Agreement”) sets forth the rules for the application of safeguard measures pursuant to Article XIX of GATT 1994.
Safeguard measures are defined as “emergency” actions with respect to increased imports of particular products, where such imports have caused or threaten to cause serious injury to the importing Member’s domestic industry.
Such measures, which in broad terms take the form of suspension of concessions or obligations, can consist of quantitative import restrictions or of duty increases to higher than bound rates.
Major guiding principles of the Agreement with respect to safeguard measures are that such measures must be temporary; that they may be imposed only when imports are found to cause or threaten serious injury to a competing domestic industry; that they be applied on a non-selective (i.e., most-favoured-nation, or “MFN”, basis; that they be progressively liberalized while in effect; and that the Member imposing them must pay compensation to the Members whose trade is affected.
