Introduction

The World Trade Organization’s (WTO) Agreement on Safeguards requires that a Member State may only impose safeguard measures if there is:

1. •

   increased imports

2. •

   due to unforeseen circumstances

3. •

   under such conditions which cause or threaten to cause serious injury, or

4. •

   to domestic producers of like or directly competitive products

All four of these conditions must be met before an investigating authority may recommend that safeguard measures be imposed. For guidance on these conditions and the Agreement on Safeguards, see Practice Note: An introduction to the Agreement on Safeguards. For guidance on the application process, see Practice Note: How to apply for a safeguard investigation.

Often the most problematic condition to fulfil is if the increased imports are causing or threatening to cause serious injury to the domestic industry.

What constitutes serious injury?

The Agreement on Safeguards states that serious injury means a significant overall impairment in the position of a domestic industry. The Appellate Body has