Lecture 7 Flashcards
What do unilateral opt outs involve?
Unforseen developments causing serious injury to domestic producers
How many safeguard initiations bw 1995 and 2013?
255
Which article of GATT sets out the safeguard regime?
article XIX. If a product has been imported in a damaging way, others must be notified and compensated. If compensation cannot be agreed upon, affected parties may suspend concessions under GATT.
Uruguay Round: Article 4
serious injury means a significant overall impairment in the position of a domestic industry, clearly iminent, and based on fact rather than mere allegations
Uruguay Round Article 4.2a
an investigation where domestic authorities must evaluate all relevant factors of an objective and quantifiable nature having a bearing on the situation of that industry.
Article 4.2b
investigation must demonstrate objective evidence, the existence of a causal link between increased imports of the product concerned and serious injury or threat thereof
Article 5.2
safeguard measures take the form of a quota, shall allocate the quota to members based on the proportions of imports supplied by such members during the previous representative period
When can a country depart from this requirement of non discrimination?
- if imports from certain members have increased disproportionately in relation to the total increase of imports
- if the reasons for the departure is justified
- if the conditions of such departure are equitable to all suppliers
Article 7 on safeguards
measures may not exceed four years unless competent authorities have determined that the measures continue to be necessary to prevent serious injury. Safeguard measures will be progressively liberalized at regular intervals during the period of application
Article 8
The right of exporting countries to suspend equivalent trade concessions shall not be exercised for the first three years
Article 11
member countries shall not seek any Voluntary Export Restraints, Orderly Marketing Agreements, or other measures
Argentina- Footwear (1999)
AB held that there has to be a trend in increased imports, and it has to be recent and sharp enough to cause injury
US- Lamb (2000)
Serious injury is more significant than material injury
US-Wheat Gluten (2000)
Causation. Imports aren’t the only cause of serious injury