Chapter9LegalSystemonSafeguardMeasuresSection1AnOverview“clausularebussicstantibus〞whenlegitimateimportscauseorthreatenseriousinjurytodomesticproduction,safeguardproceduresmaybeinvokedsafeguardsconstitutearightorresponsetofairtradepracticesArticle19oftheGATT1994providesfortheuseofsafeguardswhereincreasedimports“causeorthreatenseriousinjury〞(andfortheimpositionofsubstantiallyequivalentconcessionsintheeventsafeguardsareimposed)GATT1947Article19-EmergencyActiononImportsofParticularProducts

1. (a) If,asaresultofunforeseendevelopmentsandoftheeffectoftheobligationsincurredbyacontractingpartyunderthisAgreement,includingtariffconcessions,anyproductisbeingimportedintotheterritoryofthatcontractingpartyinsuchincreasedquantitiesandundersuchconditionsastocauseorthreatenseriousinjurytodomesticproducersinthatterritoryoflikeordirectlycompetitiveproducts,thecontractingpartyshallbefree,inrespectofsuchproduct,andtotheextentandforsuchtimeasmaybenecessarytopreventorremedysuchinjury,tosuspendtheobligationinwholeorinpartortowithdrawormodifytheconcession.SafeguardsunderArticle19,safeguardsmustbeappliedonaMFNbasis(importsoftheproductfromallsourcesmustbetreatedequally;itisnotpossibletoimposesafeguardsonlyagainstimportsfromselectedcountries;thisfeaturetendedtoincreasethe“cost〞ofimposingsafeguards,asmanynationsmightbeaffected,andmightseekretaliatoryaction)theresultisthatsafeguardswererarelyused,andanti-dumpingandcountervailingdutieswereamoreattractiveandlesscostlywaytoprotectdomesticproduction(becausetheycouldbeselectiveandtherewasnorequirementofcompensation)Agreementon

Safeguards1994theAgreementonSafeguardsoftheUruguayRoundprovidesamuchmorestringentstandardforadministrativeproceedingsleadingtotheadoptionofsafeguardmeasures(noteArticleXIXoftheGATT1994whichdealswithsafeguards)theAgreementprovidesthatsafeguardsmayonlybeimposedifincreasedimports,asaresultoftradeconcessions,arethecauseorthreatentocauseseriousinjurytotheproductionoflikedomesticproducts(asisthecaseunderArticleXIXoftheGATT1994)Article2(2)restatestheMFNobligation,thusrejectingselectivemeasures(butseeArticle5(2)(b)whichprovidesforsomeselectivemeasuresifaMembercandemonstratethatimportsfromcertainMembershaveincreaseddisproportionately,andthesuchaselectivereductionisequitableandcanbejustified)AgreementonSafeguardsArticle3requiresasafeguardinvestigationpursuanttopublishedtransparentproceduresArticle4clarifieshowaseriousinjuryorthreatthereofshallbedetermined;seriousinjuryisdefinedas“asignificantoverallimpairmentinthepositionofadomesticindustry〞;allrelevantfactorsmustbeconsideredandtheremustbeevidenceofa“causallink〞betweentheimportsandtheinjurybeingsufferedtheymustbeperiodicallyreviewed(atleasteveryfouryears)andmustnotremaininforceformorethaneightyears(Article7)WTOMembersmustcompensateothermembersinordertomaintainasubstantiallyequivalentlevelofconcessions(Article8)Section2MajorLegalSourcesofSafeguard1.Article19ofGATT19942.AgreementonSafeguards3.AgreementsonAgricultureArticle54.Article16oftheChina’sAccessionProtocolDiscriminativetransitionalsafeguardsspeciallytargetedagainsttheproductsexportedbyChineseexporter.5.Section242oftheWorkingPartyunderChina’sAccessionProtocolSection3ADetailedAnalysisoftheASG1.SubstantiveRulesIncreasedImportsAbsoluteorrelativeincreaseinimportsofproducts(Art2oftheSA)——quantity,notvalueUnforeseenDevelopments,etc.IncreasedimportsasaresultofunforeseendevelopmentandoftheeffectoftheWTOobligations(ArticleXIXoftheGATT)Determinationof"seriousinjury"andcasuallinkSeriousinjuryfoundintermsofeconomicfactorssuchasimports,production,sales,productivity,etc.,andcausallinkbetweenincreasedimportsandinjury(Article4oftheSA)實施保障措施的條件：1.有關產品的進口大量增加;2.由不可預見的開展和承擔總協定義務造成的;3.對國內產業造成嚴重損害或嚴重損害威脅;4.

進口增加與國內產業損害有因果關系。Determinationofinjury-Article4oftheSADefinitionofSeriousInjury/ThreatofSeriousInjury…seriousinjurythatisclearlyimminent(shallbebasedonfactsandnotmerelyonallegation,conjectureorremotepossibility)…asignificantoverallimpairmentinthepositionofadomesticindustry;“嚴重損害〞指對國內某一產業的狀況造成重大的總體損害。“嚴重損害威脅〞：指對國內某一產業的地位造成的重大總體損害還沒有發生，但已迫在眉睫。“國內產業〞，指在成員方領土內生產相似產品或直接競爭產品的國內生產者全體，或相似產品或直接競爭產品的總體產量占該成員國內總產量主要局部的生產者。InjuryfactorsmustbeconcernedDefinitionoftheDomesticIndustrytheproducersmakingproducts,whichare“like〞or“directlycompetitive〞totheimportstargetedbytheinvestigation.eitherthewholeofsuchdomesticindustry,ortothatpartthereofwhichamountstoa“majorproportion〞.InjuryFactors(Article4.2(a)SA)…thecompetentauthoritiesshallevaluateallrelevantfactorsofanobjectiveandquantifiablenaturehavingabearingonthesituationofthatindustry,therateandamountoftheincreaseinimportsoftheproductconcernedinabsoluteandrelativeterms,theshareofthedomesticmarkettakenbyincreasedimports,changesinthelevelofsales,production,productivity,capacityutilization,profitsandlosses,employment.進口成員的調查機構必須評估與該產業狀況相關的所有客觀的和可量化的因素。包括：絕對或相對條件下的有關產品的進口的比例和數量，增加的進口所占有的市場份額，銷售水平、產量、生產率、設備利用率、盈虧及就業狀況的變化情況。CausallinkWhenfactorsotherthanincreasedimportsarecausinginjurytothedomesticindustryatthesametime,suchinjuryshallnotbeattributedtoincreasedimports.

如進口增加之外的因素正在同時對國內產業造成損害，那么此類損害不得歸因于進口增加CaseStudyTextbook,p.244-246.2.SafeguardMeasuresandProvisionalSafeguardMeasuresProvisionalMeasuresBasedonpreliminaryconfirmativedeterminationDuration:notexceed200daysForm:tariffincreaseDefinitivemeasuresForm:tariffincrease,quantitiesrestrictionsandtariff-quotaDurationNottoexceedfouryearsinitially,andmaybeextendedtothemaximumofeightyears(includingtheperiodofprovisionalmeasure).LevelsofQuantitativeRestrictionsMust,inprinciple,notfallbelowtheaverageofimportsinthelastthree