What is the significance of safeguard measures?

• A. They are permanent duties to protect domestic industries
• B. They are temporary measures to protect domestic industries from unforeseen surges in imports, used when injury occurs but not necessarily due to dumping or subsidies
• C. They require proof of dumping in exporting countries
• D. They extend tariffs to all products

Answer: (B)

Safeguard measures are temporary remedies under international trade rules designed to shield a domestic industry from unforeseen surges in imports that cause or threaten serious injury. They provide quick, limited relief—such as a temporary tariff increase or import quotas—to give industries time to adjust, without relying on proof of dumping or subsidies. The key point is their temporary nature and their focus on a sudden import surge, not on unfair practices. They are not permanent duties, they do not require proving dumping, and they target specific products rather than extending protections to all goods. The idea is to address injury promptly while maintaining the broader market open in the longer term.