Each WTO member can take “Safeguard” action (e.g. temporary import restrictions) to protect the domestic industry from a sudden increase in imports, causing injury or threatening to cause serious injury to the domestic industry.

 

However, safeguard measures are not used frequently. Governments in some countries prioritize the protection of their industries through voluntary export restraint agreements for products.

The number of safeguard investigations has been on a downward trend in recent years. While the total number of investigations initiated in 2019 was 30 cases, this number was only 9 cases in 2021. 

Figure 1: Global Trend in Safeguard Investigations 

 

Source: WTO data

Countries using safeguard measures

According to WTO statistics, India was the country that conducts the most safeguard investigations in the world with 46 initiations (accounting for 11% of the total number of investigations initiated globally), of which 22 cases were subject to safeguard measures.

Figure 2: Top countries conducting the most safeguard investigations (1995-2021)

Source: WTO data

Sectors subject to safeguard measures

As in the case of anti-dumping and countervailing investigations, base metals and articles are subject to the most safeguard measures globally. In fact, in the total number of cases subject to safeguard duty, up to 26% are base metals, followed by products of the chemical industries with 17%.

Figure 3: Sectors subject to the most safeguard measures globally (1995-2021)
 

Source: WTO data

 

In short, the purpose of trade remedies is to minimize the damage caused to the domestic industry of the importing country from the unfair trade practices of the exporting country, as well as to re-establish fair competition.

In fact, the imposition of trade remedies can affect the prices of final products, which can affect the competitiveness of these products. However, to ensure a fair playing field and healthy competition for domestic industries in the importing country, the imposition of trade remedies is essential. Therefore, trade remedies should be used with caution only in cases of necessity. 

Source: Center for WTO and International Trade