Contingent Protection Measures in WTO

Only available on StudyMode
  • Download(s) : 58
  • Published : December 24, 2012
Open Document
Text Preview
CONTINGENT PROTECTION MEASURES IN WTO
First the paper views the issue of contingent protection measures. Next it examines the problem of anti dumping, subsidies, countervailing and safeguard measures, and their effects on welfare. Also the paper considers the ways WTO regulates these measures. To begin with, the term contingent protection refers to certain trade restrictions, providing protection from imports beyond the protection granted by the tariff schedules negotiated as part of GATT, representing an exception to the GATT/WTO fundamental principles of reciprocity and nondiscrimination. Contingent protection is realized through a number of measures: 1. Antidumping actions (temporary discriminatory measure) – duties to offset unfair competition from foreign exporters, only applied to dumping firms; 2. Subsidies countervailing duties (temporary discriminatory measure) – duties to offset export subsidies granted by the government of an exporting country; 3. Safeguards (temporary non-discriminatory measure) – tariffs or quota to offset fair competition from imports causing damages to the domestic industry; As to the WTO contingent protection regulation, anti-dumping and safeguards are disciplined by GATT 1994 Article VI and by the Agreement on Implementation of Article VI of GATT 1994. While subsidies and countervailing duties are disciplined by the Agreement on Subsidies and Countervailing Measures of GATT 1994, by the Agreement on Agriculture and Textiles and Clothing, and only partly by the General Agreement on Trade in Services. First let’s consider antidumping measures in detail. Antidumping measures are tariffs imposed by an importing country on imports of a product that has been dumped into its domestic market by some exporting firms. The measures are aimed at offsetting unfair competition from foreign exporters, only applied to dumping firms Anti dumping actions concern developed, developing...
tracking img