Agreement on Safeguards

Agreement on Safeguards: What It Means and Why It Matters

Agreement on Safeguards is an important aspect of international trade laws, which helps countries to protect their domestic industries against an influx of cheap imports. The agreement is part of the World Trade Organization`s rules and regulations that enable member countries to impose temporary trade measures to address specific problems.

What is Agreement on Safeguards?

The Agreement on Safeguards was signed by all members of the World Trade Organization (WTO) in 1994 as part of the Uruguay Round of negotiations. The agreement aims to provide a legal framework for countries to take action against imports that are causing injury or threat of injury to their domestic industries.

In essence, the agreement allows countries to impose temporary trade measures, such as tariffs or quotas, to restrict imports that are causing economic harm to their domestic industries. However, these measures must be applied in a non-discriminatory manner and limited in duration to avoid undue disruption of international trade.

Why is Agreement on Safeguards important?

The Agreement on Safeguards is important for several reasons. First, it helps countries to protect their domestic industries from unfair competition. Without this mechanism, countries could face significant economic harm from a flood of low-priced imports that would undercut their domestic producers.

Secondly, the agreement provides a framework for resolving trade disputes. When a country imposes a safeguard measure, it must notify the WTO and provide evidence of the injury caused by imports. The WTO then reviews the measure and determines whether it is consistent with the agreement. If a country is found to have violated the agreement, it can face retaliation measures, including trade sanctions.

Thirdly, the agreement promotes fairness in international trade. By requiring countries to apply safeguards in a non-discriminatory manner, the agreement helps to prevent protectionist measures that could harm other countries` exports. It also allows for transparent and predictable trade relations between countries.


In conclusion, the Agreement on Safeguards is an essential aspect of international trade laws that enables countries to protect their domestic industries against unfair competition. By providing a legal framework for temporary trade measures, the agreement helps to promote fairness and transparency in international trade. As a professional, it is crucial to ensure that articles on complex topics like this are written in a clear and concise manner to educate readers while keeping them engaged.