SAFEGUARD MEASURES

WTO Committee Reviews Record Number of Safeguard Actions

· A record 45 notifications of safeguard actions taken by WTO members

· United States Launches 28 Safeguard Investigations

A record 45 notifications of safeguard actions taken by WTO members were reviewed at the 18 November meeting of the WTO’s Safeguards Committee. A group of members reiterated their concerns about the rising use of safeguard measures, particularly in the steel sector, and the need to ensure that such measures are taken in accordance with the WTO’s Safeguards Agreement.

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.

Japan, Korea, Switzerland, Australia, the United States and China voiced their general concerns over the rising use of safeguard measures by WTO members. For Japan, Korea and Switzerland, their concerns focused on the steel sector. Australia said members should be mindful that safeguards are emergency measures targeting fairly-traded goods, and expressed concern about the increasing number of provisional safeguard measures being applied.

The United States said that the number of new safeguard investigations already launched this year (28) is the second highest annual number on record, and that members need to determine whether these actions are truly in response to emergency actions. China said it was concerned about the increasing number of safeguard measures which should be restricted to emergency situations only.

Review of legislative notifications

The committee reviewed new safeguard legislative notifications from Canada and Kenya, and continued reviews of previously-reviewed legislative notifications from Afghanistan, Cameroon, El Salvador, Liberia, the United Arab Emirates and Viet Nam.

Notifications of actions related to safeguard measures

The committee reviewed various notifications of actions related to safeguard measures received since the last committee meeting from the following members: Canada; Costa Rica; members of the Gulf Cooperation Council; Egypt; members of the Eurasian Economic Union; the European Union; Guatemala, India; Indonesia; Jordan; Madagascar; Morocco; Panama; the Philippines; South Africa; Turkey; Ukraine; the United States; and Viet Nam.

Measures removed

Several members informed the committee that existing safeguard measures have been removed or that safeguard investigations have been terminated without measures being imposed. These include:

· The Philippines — Rice

· Panama — Pork

· Madagascar — Soap

· Turkey — Certain steel products

Separate matters raised

Other matters addressed as separate agenda items at the committee meeting were US measures on steel (requested by Turkey) and Colombia's safeguard investigation on sheets of paperboard and polyethylene (raised by Brazil).

Other business

Under other business, Switzerland asked the European Union about the impact of the United Kingdom's possible departure from the EU on the EU's existing safeguard measures.