Over 60 Safeguard Actions Reviewed at WTO Committee
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India among 24 Countries on Hit list, EU Prominent in
Steel Safeguards
More than 60 specific safeguard investigations were reviewed
by WTO members at the WTO’s Safeguards Committee meeting on 26 October. The large
number of actions under review was partly due to the spring meeting not taking place
because of the COVID-19 lockdown. The European Union’s safeguard measures on imports
of steel products continued to draw many comments from members. Members also discussed
the United Kingdom’s “transition review” of safeguard measures currently imposed
by the EU.
China,
Japan, Korea and Australia once again highlighted their general concerns over the
rising number of safeguard measures taken and called on members to strictly abide
by the provisions of the Safeguards Agreement. In this context, some members raised
concerns regarding safeguard actions in the steel sector while others referred to
the economic situation brought about by the COVID-19 pandemic.
Several
members voiced their concerns with the European Union's safeguard measures on certain
steel products, including its most recent adjustments made to the measure.
In February
2019, the European Union decided to apply a definitive safeguard measure
on 28 categories of steel products up to June 2021.
The United
Kingdom submitted to the committee its new trade remedy legislations, which govern
trade remedies instruments including safeguards. The UK explained the current situation
as well as how the new system will operate when it leaves the EU on 1 January 2021.
The UK
also submitted a notification regarding the initiation of an investigation on certain
steel products. The UK said that the EU's safeguard measure on certain steel products
will be "transitioned" and will continue in respect of UK territory, with
adjustments made to ensure that it works specifically for the UK market. The UK-specific
tariff rate quotas will come into effect on 31 December 2020. Foreign exporters
will be given ample opportunity to engage in the transition review process, such
as making submissions and requesting hearings.
Several
members expressed concerns about the way the UK was proceeding. Switzerland, raising
a separate agenda item, questioned the relationship between, on the one hand, the
UK's notice of determination announced in September 2020 and, on the other hand,
the transition review notified to the committee. Other members asked, for example,
whether the UK did not need to embark on its own new investigation, or how the tariff
rate quotas provided in the September determination were calculated.
The committee
reviewed two dozen new safeguard legislative notifications from the following members:
Afghanistan, Bolivia, Cameroon, Costa Rica, Ghana, India, Lao PDR, Liberia, Tonga,
the United Kingdom (see above), Viet Nam and Zimbabwe. Members continued to discuss
previously reviewed legislative notifications from Kenya and the United Arab Emirates.
The committee
reviewed various notifications of actions related to safeguard measures received
since the last committee meeting (November 2019) from the following members: Colombia;
Costa Rica; Ecuador; Egypt; members of the
Eurasian Economic Union; the European Union (see above); member countries of the
Gulf Cooperation Council; Guatemala; India; Indonesia; Jordan; Madagascar; Malaysia;
Morocco; Panama; the Philippines; South Africa; Thailand; Turkey; Ukraine; the United
Kingdom (see above); the United States; and Viet Nam.
Other
matters addressed as separate agenda items at the committee meeting included US
measures on steel and aluminium (requested by India, Japan, the EU and Turkey),
members' procedures during COVID-19 (requested by Australia and the US) and notifications
of non-imposition of a safeguard measures (requested by Brazil).
The committee
adopted a new notification format that encourages members to make certain notifications
that enhance transparency.
The interim
chair provided an update regarding the EU's request under Article 13.1(e) of the
Agreement on Safeguards. The committee also adopted its annual report to the Council
for Trade in Goods.
At the
end of the meeting, Mr Mustafa Tuzcu
(Turkey) was elected to be the new chair of the Safeguards Committee.
The next
meeting of the Committee on Safeguards is provisionally scheduled for the week of
26 April 2021.
Under
the WTO Safeguards Agreement, a member may restrict imports of a product temporarily
(take “safeguard” actions) through higher tariffs or other measures if its domestic
industry is seriously injured, or threatened with serious injury, due to an unforeseen
surge in imports. Unlike anti-dumping duties, safeguard measures cover imports from
all sources, although imports from developing country members with a small share
of imports are exempted through special and differential treatment provisions.