Safeguard measure
Temporary import restriction applied on an emergency basis when a sudden surge of imports causes or threatens to cause serious injury to domestic industry.
Definition and legal basis
A safeguard measure is a temporary restriction on imports that a country may invoke when a product is imported in such increased quantities that it causes or threatens to cause serious injury to the domestic industry. Unlike anti-dumping and countervailing duties, safeguard measures do not target unfair trade practices but address emergency situations. The legal framework is GATT Article XIX and the WTO Agreement on Safeguards, implemented in the EU by Regulation (EU) 2015/478.
Key characteristics
- Temporary: maximum duration of 4 years, extendable up to 8 years
- Non-discriminatory: applicable to all origins (MFN principle), with limited exceptions
- Degressive: must be progressively liberalised
- Compensatory: affected exporting countries may seek compensation or take retaliatory measures after 3 years
Possible forms
Safeguard measures can take the form of:
- Additional customs duties
- Quantitative quotas
- Combination of both (safeguard tariff-rate quota)
Practical example
The EU applied safeguard measures on steel imports in 2018 (tariff-rate quotas by product category), renewed and adjusted through 2024, in response to destabilisation of the global steel market following US Section 232 tariffs.