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)

a) The Agreement on Safeguards, the Anti-dumping Agreement, and the Agreement on Subsidies and Countervailing Measures are all part of the WTO's framework for regulating international trade, but they address different issues.

The Agreement on Safeguards allows a country to restrict imports of a product temporarily (i.e., to "apply safeguards") if its domestic industry is injured or threatened with injury caused by a surge in imports. It is a measure to protect the domestic industry from an unexpected increase in imports.

The Anti-dumping Agreement, on the other hand, is designed to prevent exporters selling goods at a lower price abroad than the price they charge in their home market. If such dumping causes or threatens to cause material injury to a domestic industry in the importing country, anti-dumping duties may be applied on such dumped products.

The Agreement on Subsidies and Countervailing Measures regulates the use of subsidies, and it establishes multilateral disciplines regulating the provision of subsidies. It also provides remedies (in the form of countervailing duties) for the adverse effects that certain subsidies can cause to the domestic industry of other members.

b) An example of a recent safeguard measure is the one imposed by the United States on imports of large residential washers in 2018. The measure was imposed after the U.S. International Trade Commission determined that increased imports of these washers were a substantial cause of serious injury to the domestic industry. The safeguard measure was intended to give the domestic industry a chance to adjust to the import competition.

c) The textile industry in Uganda has been affected by imports. For a safeguard measure to be justified under the WTO Agreement on Safeguards, it would need to be demonstrated that the imports are increasing in such a way as to cause or threaten to cause serious injury to the domestic industry. This would involve an investigation that considers the volume of imports, the effect of imports on prices for like products in the domestic market, and the consequent impact of these imports on the domestic industry.