Safeguard Measures

The WTO permits Member Countries to provide

affected domestic industries relief against imports
under circumstances specified in the General
Agreement on Tariffs and Trade 1994 (GATT 1994).
Under Article XIX (Emergency Action on Imports of
Particular Products) of GATT 1994, as clarified and
reinforced by the WTO Agreement on safeguards,
the tariffs, tariff quotas, or quantitative restrictions)
against imports if the products at issue are being
imported in such increased quantities, either
absolute or relative to domestic production, and
under such conditions as to cause or threaten to
cause serious injury to the domestic industry.

The WTO on Agreement on Agriculture allows for the

application of special transitional safeguards (additional
duty not exceeding one-third of the level of the effective
tariff) against importations of agricultural products whose
quantitative import restriction (QRs) were converted
(tariffied) into ordinary customs duties and agricultural
products designated with the symbol SSG (Special
Safeguard Measures) in the GATT Schedule of
Concessions.
Special safeguard measures maybe invoked, if;
The volume of imports exceeds a trigger level; or (but
not currently)
* The price of imports falls below a trigger price.

 The purpose for the application of safeguard measures

is to give the affected domestic industry time to prepare
itself for and adjust to increased import competition
resulting from the reduction of tariffs or the lifting of
quantitative restrictions agreed upon in multilateral trade
negotiations.

Comparison of Anti-Dumping, Countervailing, and

Safeguard Measures
Relevant Agreement
Anti-dumping/Countervailing
Measures
*WTO Anti-Dumping
(GATT Article VI)

Agreement

*WTO Agreement on Subsidies and

Countervailing Measures (GATT
Article XVI)

General/Special Safeguard
Measures
WTO Agreement on Safeguards
(GATT Article XIX)
WTO Agreement on Agriculture

Nature of Measure
Address unfairly traded
imports :

Address fairly traded imports:

Export Price is lower than the

normal value
Subsidized
production
or
exportation
of
the
foreign
merchandise.

*Export price at the level of normal

value
Increased level of imports absolute
or relative to production (general
safeguards)
Volume of imports exceed a base
trigger level or price falls below a
trigger
price
level
(special
safeguards.

Coverage of Measure
* Limited to like products
* Country specific and exporter
specific

* All like or directly competitive

products
All countries exporting like or directly
competitive product.
General safeguards apply to industrial
and non-tariffied goods
Special safeguards apply to tariffied
agricultural products denominated with the
acronym SSG in the GATT Schedule of
Concessions

Minimum Threshold of Support of Industry for Application

Minimum which
Threshold
of Industry
forcase
Application
A domestic
Industry
is of*Support
Industry
filing the
should
supported by domestic producers be a producer of the like or
whose collective output constitutes
directly
competitive
product
more than 50% of the total production
collective
output
of the like product produced by other whose
domestic
producers
that
are constitutes a major proportion of
expressing either support for or the total domestic production
opposition to the application. However, general safeguards
no investigation shall be initiated when
domestic
producers
expressly
supporting the application account of
the like production of the like product
produced by the domestic industry.

Department of
(motu propio)
safguards

Agriculture
special

Objective
Dumping/countervailing duty seeks
to provide a remedy to level the
playing field
To protect the domestic industries
against the unfair trade practices of
dumping and/or subsidization.

General
safeguards
will
remove injury and facilitate
structural adjustments for the
industry to be competitive.

Special safeguards will assist

farmers whose products were
previously
protected
by
quantitative restrictions that
have been tariffied.

Elements to be Established
Product comparability (like
product)
Price difference/subsidy
Material injury or threat of material
injury
Causal link

General Safeguards :
Product comparability (like or
directly competitive product)
Increased imports
Serious injury or threat of serious
injury
Causal link
Special Safeguards:
- Product
comparability
(like
product)
- Volume of imports exceed a base
trigger level, or
- Price falls below a trigger price level.

Forms of Measure
a) Provisional
measure
dumping/countervailing bond
b) Definitive
dumping/countervailing duty

anti-

General Safeguards :
a) Provisional
measure

tariff
increase
b) Definitive safeguard measure:
- Tariff increase
- Quantitative restrictions (e.g. import
quota; import licencing.
Special Safeguards :
a) Additional duty not exceeding one
third of the level of the ordinary
customs duty in effect during the year
in which the action is taken .

Imposition of Provisional Measure

of Provisional
* Requires the conduct Imposition
of a preliminary
General Measure
Safeguards :
investigation (affirmative preliminary
determination) prior to imposition of a
dumping or countervailing bond for a
duration of four (4) months or 120
days.

* In critical circumstances where delay

may cause damage that is difficult to
repair, safeguard measure in the form
of tariff adjustment may be imposed for
200 days pursuant to a preliminary
determination.
Special Safeguards :
*Not provisionally applied.

Duration of Definitive Measure

* Five (5) years, subject to sunset
review to determine whether or not to
extend
the
effectivity
of
the
dumping/countervailing

General Safeguards :
Four (4) years, extendable for
another 4 years provided that
industry can show that structural
adjustment is being implemented
with an extension for another two (2)
years for developing countries.
Special Safeguards :
* Shall only be maintained until the
ends of the year in which it has been
imposed.

Republic Act No. 8800 other wise known as Safeguard Measures

Act.

Signed the law by former President Joseph Ejercito Estrada on July 19, 2000.
Published on July 24, 2000
Took effect on August 9, 2000, fifteen days following its complete publication.

R.A. No. 8800 provides for :

-

General Safeguard measures to relieve domestic industries suffering from serious injury as a
result of increased imports; and
Special Safeguard measures (additional duty not exceeding 1/3 of the existing rate of duty) on
agricultural products marked SSG in Schedule LXXV-Philippines, when the import volume
exceeds its trigger level or when the actual c.i.f. import price falls below a trigger level.

Implementing Rules and Regulations :

- Joint Administrative Order No. 03, s. 2000
- Signed by the concerned Secretaries/Agency Heads and published in Manila Standard on
October 4, 2000.
- Took effect on October 11, 2000, seven (7) days after publication.

Government Agency to Administer Safeguard Measures Act :

General Safeguard Measures

Department of Trade and Industry/Bureau of Import Services(DTI/BIS) Conducts preliminary investigation to ascertain
whether or not provisional measure may be imposed in the case of industrial goods.
- Department of Agriculture (DA) - Conducts preliminary investigation to ascertain whether or not provisional measure may
be imposed in the case of agricultural products.
- Tariff Commission conducts formal investigation and submits recommendation to DTI or DA Secretary on the form of
definitive safeguard measure to be imposed.
* monitor the domestic industrys progress and its efforts to make a positive adjustment to import
competition.
* conducts investigation on any legitimate request for the extension and re-application of safeguard
measures; the reduction, modification and/or termination of safeguard action.
* after the termination of safeguard measure, evaluates the effectiveness of the actions taken by the
domestic industry to facilitate its positive adjustment to import competition.
- Department of Trade and Industry/Bureau of Import Services(DTI/BIS) decides on the form of definitive safeguard
measure to impose and issues a Department Order for implementation by concerned agencies.

Special Safeguard Measures

- Department of Agriculture (DA) in the case of sensitive, tariffied agricultural products (marked SSG
schedule LXXV Philippines), conducts whether;
1. Volume of imports exceeds a base trigger level or
2. C.i.f. import price falls below a trigger price level.

in

- issues Department Order requesting the Bureau of Customs, through the Department of Finance to impose
additional special safeguard duty on subject product equivalent to not more than 1/3 of its existing rate