What is safeguard under WTO regime?
Is this provision available to Pakistani industry also?
What are basic requirements to seek protection under the Safeguard Measures Ordinance 2002?
What are the basic conditions for a safeguard action?
What is unforeseen development?
What are obligations assumed under WTO?
Can safeguard action be taken for protection of industry below bound rates?
How does NTC process an application for safeguard measures?
Is NTC’s recommendation final and binding on Government?
Why in case of safeguard, the government is final authority?
Is safeguard measure imposed against a specific country?
How can indigenous industry apply for imposition of a safeguard measure?
How an appeal against the imposition of safeguard measure/ duty can be made?
What is safeguard under WTO regime?
Under the WTO multilateral Trading
System, a member country has the right to protect its domestic
industry if it is found that imports of a specific product has
increased substantially in absolute terms or relative to
domestic production in the recent period. If these increased
imports are causing injury to the domestic industry, this can be
remedied by imposing an appropriate measure/duty. This is called
safeguard measure/duty under the WTO agreement on safeguards.
Is this provision available to Pakistani
Pakistan, being Member of WTO, has promulgated Safeguard
Measures Ordinance 2002 to provide protection to the domestic
industry from surge in imports of any specific product. The
National Tariff Commission (NTC) Islamabad is responsible to
process the application for imposing safeguard measures/ duty.back to top
What are basic requirements to seek protection under the
Safeguard Measures Ordinance 2002?
The applicant industry has to show that
there is surge in imports because of certain unforeseen
developments, which cannot be remedied due to WTO obligations
assumed by Pakistan, and certain unforeseen developments;
There is surge in imports of a specific product
There is injury to the domestic industry producing
There is causal link between the surge in imports
and the injury to the domestic industry.back to top
The following are basic conditions for a
safeguard action to be taken.
There is sudden increase in imports
Which cannot otherwise, be remedied because of WTO
obligations assumed by the Pakistan
There is some unforeseen development for increase
There is serious injury to the domestic industry caused
by increased imports.
expected event or development, which was not foresee able at the
time of making commitments under the WTO Agreement are deemed to
be unforeseen developments.back to top
The WTO obligations assumed include mainly tariff
bindings given by any country and the elimination of quotas.
For details of tariff bindings are available on websites
of NTC and WTO.back to top
The countries have liberty to increase the
duties up to bound rates under WTO obligations; therefore, there
is no need to take a safeguard action.
How does NTC process an application for
On receipt of a properly documented and
complete application, NTC issues notice of initiation of an
investigation in this regard in the newspapers. In order to
solicit views/ comments of interested parties a public hearing
can also be held. After having collected all relevant
evidences, NTC carries out necessary analysis and prepares its
recommendation for imposing an appropriate safeguard measure
against the specific product. This recommendation is forwarded
to the Federal Government for consideration and imposition.back to top
Is NTC’s recommendation final and
binding on Government?
the recommendation of NTC is not binding on the government. It
is prerogative of the government to implement NTC’s
recommendations wholly or partially or not at all.
Why in case of safeguard, the government
is final authority?
Because, in case of safeguard, the
federal government is supposed to negotiate with the countries,
which are expected to be affected adversely from the safeguard
measure/ duty, recommended by NTC.
Is safeguard measure imposed against a
the safeguard measure is imposed against the specific product
across the board on an MFN basis i.e. measure is imposed on the
specific product coming from any source.back to top
can indigenous industry apply for imposition of a safeguard
The prescribed application forms are
available with National Tariff Commission Islamabad. The
applicant industry may obtain this application form and get it
duly filled in supported by relevant evidences and fee (Rs.
75,000/- in the form demand draft) to the Secretary NTC. The
application form and relevant law, rules etc are also available
on NTC website.
How an appeal against the imposition of safeguard measure/ duty
can be made?
a definite safeguard duty is imposed, it can be appealed through
the Dispute Settlement Mechanism of the WTO by any affected
back to top