Provide an example of a recent safeguard measure imposed by a WTO member except USA and explain its purpose within the WTO framework (5 marks)
Question
Provide an example of a recent safeguard measure imposed by a WTO member except USA and explain its purpose within the WTO framework (5 marks)
Solution 1
One recent example of a safeguard measure imposed by a WTO member, other than the USA, is the safeguard measure imposed by India on imports of solar cells, whether or not assembled in modules or panels. This measure was imposed in July 2018 and is expected to last for a period of four years.
The purpose of this safeguard measure, within the WTO framework, is to protect the domestic industry from serious injury caused by increased imports. According to the WTO Agreement on Safeguards, a member may take a safeguard action, i.e., it may restrict imports of a product temporarily if its domestic industry is seriously injured or threatened with serious injury caused by a surge in imports.
In this case, India imposed a safeguard duty of 25% for the first year, 20% for the first six months of the second year, and 15% for the last six months. The aim was to protect the domestic solar industry from the sudden and significant increase in imports of solar cells.
The WTO framework allows for such measures in order to enable a level playing field for domestic industries. However, it also requires that such measures be gradually liberalized over time, to ensure that domestic industries do not become overly dependent on protection and can eventually compete without the safeguard measures.
In conclusion, the purpose of India's safeguard measure on solar cells within the WTO framework is to protect its domestic industry from serious injury due to a surge in imports, while also ensuring that the measure is temporary and gradually liberalized.
Solution 2
One recent example of a safeguard measure imposed by a WTO member, other than the USA, is the safeguard measure imposed by India on imports of solar cells, whether or not assembled in modules or panels. This measure was imposed in July 2018 and is expected to last for a period of four years.
The purpose of this safeguard measure, within the WTO framework, is to protect the domestic industry from serious injury caused by increased imports. According to the WTO Agreement on Safeguards, a member may take a safeguard action, i.e., it may restrict imports of a product temporarily if its domestic industry is seriously injured or threatened with serious injury caused by a surge in imports.
In this case, India imposed a safeguard duty of 25% for the first year, 20% for the first six months of the second year, and 15% for the remaining six months. The aim was to protect the domestic solar industry from the sudden and significant increase in imports of solar cells.
The WTO framework allows for such measures as long as they are temporary and transparent, and as long as the country imposing the safeguard measure provides evidence of serious injury to its domestic industry. In this case, India followed the WTO rules by notifying the WTO of its decision, providing evidence of the injury caused by the imports, and setting a time limit for the measure.
Solution 3
One recent example of a safeguard measure imposed by a WTO member, other than the USA, is the safeguard measure imposed by India on imports of solar cells, whether or not assembled in modules or panels. This measure was imposed in July 2018 and is expected to last for a period of four years.
The purpose of this safeguard measure, within the WTO framework, is to protect the domestic industry from serious injury caused by increased imports. According to the WTO Agreement on Safeguards, a member may take a safeguard action, i.e., it may restrict imports of a product temporarily if its domestic industry is seriously injured or threatened with serious injury caused by a surge in imports.
In this case, India imposed a safeguard duty of 25% for the first year, 20% for the first six months of the second year, and 15% for the remaining six months. The aim was to protect the domestic solar cell manufacturing industry from the sudden and significant increase in imports, which was causing serious injury to the domestic industry.
This measure is in line with the WTO's principle of allowing temporary protection for domestic industries facing such circumstances. However, the measure must not be discriminatory or a disguised restriction on international trade. In this case, India has followed the WTO's guidelines by progressively liberalizing the measure, i.e., by gradually reducing the duty over the four-year period.
Similar Questions
QUESTION TWO Research a recent case involving the agreement on safeguards and answer the following questions; a) What was the impact of the safeguard measure on both domestic industries and trading partners and how did the implementing country minimize adverse effects on other WTO members? (5 marks) b) How did the notifying country fulfill its obligations regarding notification and consultation when implementing safeguard measures? (5 marks) c) Was compensation provided to the affected WTO members due to safeguard measures? If yes, how was compensation determined and implemented? (5 marks) d) Evaluate the review and termination process of the safeguard measures showing how decisions were made and what the outcomes were. (5 marks)
7. The WTO seems at times to be interfering in domestic policy sinceA) the line between domestic policies and de factor protectionism is often fuzzy.B) it is a supra-national organization with the power to overturn governments.C) it determines which nations may trade what with whom.D) it punishes naughty nations.E) it exempts the U.S. and other powerful member nations from many of its edicts
QUESTION ONE The Agreement on Safeguards establishes rules for the application of safeguard measures by member governments as provided in Article XIX of GATT 1994 (Emergency Action on Imports of Particular products). This agreement is a product of the Uruguay round after the WTO member states had failed in their efforts to develop the safeguard code during the Tokyo round. According to the dictionary of trade policy terms, safeguards mean temporary measures designed to slow imports to enable a particular industry to adjust to heightened competition from foreign suppliers. The basic requirements according to this agreement is that there has to be a determination that, as a result of unforeseen developments and the effect of a member’s obligations under GATT 1994, a product is being imported in such increased quantities as to cause or threaten to cause serious injury to the domestic industry producing like or directly competitive products. With this in mind: a) How does the Agreement on Safeguards differ from the Anti- dumping agreement and the Agreement on subsidies and countervailing measures? Explain how trade issues are addressed according to these agreements (10 marks) b) Provide an example of a recent safeguard measure imposed by a WTO member and explain its purpose within the WTO framework (5 marks) c) Choose a specific industry in Uganda affected by imports and discuss the criteria that would need to be met for a safeguard measure to be justified under the WTO agreement on safeguards (5 marks)
Two key Factors Which Continue to Undermine the Influence of the WTO
Choose a specific industry in Uganda besides Textile affected by imports and discuss in detail the criteria that would need to be met for a safeguard measure to be justified under the WTO agreement on safeguards (5 marks).
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