Safeguard Measures in World Trade
Show Less

Safeguard Measures in World Trade

The Legal Analysis, Third Edition

Yong-Shik Lee

Safeguard Measures in World Trade tackles the controversial issue of restrictions on imports. Professor Yong-Shik Lee skillfully argues that Safeguards interfere substantially with the normal stream of trade, and their improper application undermines the objectives of the World Trade Organization (WTO).
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 8: Compensation and retaliation

Yong-Shik Lee


A multilateral trading system operates based on mutually agreed concessions among trading nations, and its success depends on their observance of the negotiated concessions. The problem with import restrictions such as safeguard measures is that such restrictions upset the balance of concessions between the importing and exporting Members. Thus, it is reasonable to allow Members to obtain compensation for the loss of their trade caused by the application of a safeguard measure. Thus, where compensation is not offered, the affected Members should, arguably, be allowed to suspend or withdraw their own concessions. Such a responsive measure is often described as retaliation. However, despite the negative connotation of the term, retaliation in the context of safeguards is not necessarily punitive in nature, as it attempts to restore the balance between the importing and exporting Members of concessions that have already been upset by the application of a safeguard measure. Nevertheless, retaliatory action is applied unilaterally to the trade of a Member applying a safeguard measure, often accompanying political and diplomatic feuds between the importing and exporting Members over the justification of the action. The trade relations of those Members may well deteriorate as a result of retaliation and the subsequent disputes. The Member whose trade is affected by retaliation may also apply yet another responsive measure, and, in the worst scenario, the downward spiral of sequential retaliations is a possibility, and this type of trade war would cause a grave disruption to the multilateral trading system.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.

Further information

or login to access all content.