SAFEGUARD MEASURES

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At the meeting, a number of members expressed concern over recent safeguard actions on steel products. Most of the members taking these actions referred to current global overcapacity in steel and certain measures imposed by other members.

Under the WTO Safeguards Agreement, a member may restrict imports of a product temporarily (take “safeguard” actions) through higher tariffs or other measures if its domestic industry is seriously injured, or threatened with serious injury, due to an unforeseen surge in imports. Unlike anti-dumping duties, safeguard measures cover imports from all countries although imports from developing countries with a small share of imports are exempted through special and differential treatment provisions.    

Actions on products related to steel

Eurasian Economic Union (EAEU) - three members voiced concern about the investigation notified by the EAEU on flat-rolled steel products. In response, Russia stressed that the investigation had just started on 7 August.

European Union – seven members voiced concern about the investigation notified by the EU on certain steel products, including on the provisional measure that took effect in mid-July 2018. Several members considered that the necessary preconditions for imposing a provisional measure had not been met, and that WTO rules did not allow for preventive measures. The EU responded that the investigation was carried out in a WTO-consistent manner and that the measure was neither a preventive measure nor retaliatory.

Turkey – six WTO members voiced concern about the investigation notified by Turkey on certain steel products, including on the provisional measure that took effect in mid-October. Turkey stressed that this was still only a provisional measure and that the investigation was continuing.

Canada - three WTO members voiced concern about the investigation notified by Canada on certain steel products, including on the provisional measure that took effect at the same time as the initiation on 11 October 2018. Canada stressed that the investigation was carried out in a WTO-consistent manner.

Other actions and issues discussed

In addition, six members expressed concerns with the US tariffs on imports of steel and aluminium products taken under Section 232 of its Trade Expansion Act of 1962. Those members consider these measures to be safeguards for which the United States has not offered trade compensation as required by the WTO Safeguards Agreement. Some of these members said that they had withdrawn equivalent trade concessions pursuant to the Safeguards Agreement.

The United States indicated that the measures are not safeguards and that the countermeasures are not authorized. Some of these members are pursuing WTO dispute settlement concerning the US measures and the US is pursuing dispute settlement on some of the measures that have been applied.  Information about these disputes can be accessed here.

Next

In 2019, the Committee on Safeguards is scheduled to meet in late April and in October.

More background on safeguards is available here.

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