When a product imported in increased quantities causes or threatens to cause serious injury to the established domestic industry of like or directly competitive products, or materially retards the establishment of domestic production, safeguard measures may be applied to that product in accordance with the provisions of the World Trade Organization Agreement on Safeguards.
Safeguard measures can take the form of quantitative restrictions or suspension of concessions.
For the purposes of the law, serious damage means a significant general deterioration in the situation of a national industry.
The assessment of serious injury caused or likely to be caused to a domestic industry by increased imports of a product is made within the framework recommended by the Minister in charge of foreign trade, in accordance with the World Trade Organization’s Agreement on Safeguards, and following the criteria defined by regulation.
The application of the safeguard measures referred to above shall be the subject of prior consultations with the Government of the exporting country with a view to agreeing on appropriate means of compensating commercially for the prejudicial effects of the measure on trade with that country.
The result of the consultations is notified to the Council for Trade in Goods of the World Trade Organization through diplomatic channels.
If a quantitative restriction is applied, the quantities imported must be at least equal to the average of imports over the last three (03) years, unless it is clearly established that a different level is necessary to prevent or remedy the serious injury caused by the imports in question.
Where a quota is shared between supplier countries, the allocation of shares is either negotiated or made in proportion to the total quantities or values of average imports over the last three (03) years.
When the delay in carrying out a commercial investigation causes damage that is difficult to repair, a provisional safeguard measure can be taken. This measure can only be taken if there is clear evidence that increased imports have caused or are threatening to cause serious injury to a domestic industry.
Provisional measures are taken in the form of increased customs duties. If the results of the trade investigation do not confirm that the serious injury caused or threatened to be caused to the domestic industry is due to increased imports, the customs duties are refunded in the form of credit notes.
The application of a provisional measure may not last more than two hundred (200) days. Safeguard measures are applied only for the period necessary to prevent or remedy serious injury and to facilitate the adjustment of the domestic industry concerned. This period, which may include the duration of a provis
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