Agreement on safeguards

This agreement disciplines initiation of emergency safeguards measures by laying down requirements for safeguard investigations. These have to be transparent as well as oblige the Member countries to follow established rules and practices. The criteria for serious injury caused or threatened to be caused has been also laid down. The agreement also sets time limit on all safeguard actions (4 years) and addresses “grey area”, measures by providing that the members must not seek/take or maintain any voluntary export restraints, orderly marketing arrangements or any other similar measures. An import “surge” that triggers action under this agreement is defined it to be a real increase in imports i.e. an absolute increase or an increase in the import share of a shrinking market (even if the import quantity has not increased). Relevance of the furniture sector
This agreement can be used wherever any importing country finds that there has been a surge in imports, causing injury to the domestic industry. Affected parties are well advised to approach the Government of Pakistan for remedial steps in such a case.
By the same token, the exporting country can always show that action under safeguards provisions is not transparent or does not meet the criteria of serious injury or threat of serious injury.