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Trade Remedy Laws
The Safeguard Law
 
Safeguard measures are considered temporary trade barriers and are, therefore, relatively unpopular then the other forms of trade remedy instruments. The conditions for imposition of safeguard measures are much stringent i.e., in case of anti-dumping, injury to the domestic industry should be ‘material’, whereas, in case of safeguard the level is much higher ‘serious injury’. Similarly, the other condition such as ‘unforeseen developments’ and ‘surge in imports’ are also sometimes difficult to establish.

Safeguards are applied as temporary measure on MFN basis, where increased imports cause or threaten to cause serious injury to the domestic industry, regardless of the existence of any unfair trade practice on the part of exporters or the exporting government.

In Pakistan, the Safeguards Measures Ordinance, 2002 governs the investigation procedure followed by the Commission before sending its recommendation to the Federal Government. The procedure is relatively short and measures can be imposed straight away to prevent or remedy injury and to assist the industry in adjusting to import conditions. However, the relief granted is of limited duration and is reduced with time (relief to decline over time, consistent with the concept of temporary relief to help an industry adjust to the new conditions of competition).
 
 
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