WHAT?

The Agreement on Safeguards (AoS) is a World Trade Organization (WTO) agreement that governs the use of safeguard measures — temporary import restrictions that a country can impose when a sudden surge in imports causes serious injury to its domestic industry. It is one of the key agreements under the Uruguay Round (1995) of WTO.

Purpose of the Agreement
 

To ensure that the safeguard measures:

• Are applied transparently and fairly
• Are temporary and non-protectionist
• Are based on clear evidence of injury
• Do not discriminate between exporting countries (MFN principle)
• Developing countries can maintain safeguards for a longer period

What Are Safeguard Measures?

Safeguard measures are temporary restrictions such as:

• Increased tariffs
• Quantitative import restrictions (quotas)
• Tariff-rate quotas

They are different from anti-dumping and countervailing duties because safeguards are not about unfair trade, but about surges in fairly traded imports.

Key Provisions of the Agreement
 

Example
 

In 2018, India imposed safeguard duties on solar panels imported from China and Malaysia, citing injury to domestic manufacturers — under the WTO Safeguards Agreement.

Criticism of Safeguards
 

• Often misused for protectionism
• Developed countries rarely compensate affected developing nations
• Proving “serious injury” is procedurally burdensome