The Regulation of International Trade by Mavroidis Petros C.;

Author:Mavroidis, Petros C.; [Mavroidis, Petros C.]
Language: eng
Format: epub
ISBN: 9780262029995
Publisher: MIT Press
Published: 2016-05-09T17:22:55+00:00

It is probably high time that trade negotiators reflect on this and similar ideas that have been advanced.100 A new agreement that would combine the stringent procedural requirements in the AD Agreement and institutions like the dynamic use constraint would be a net improvement over the current situation, where AD duties follow safeguards and vice versa, in a never-ending sequence of responses to so-called fair and unfair trade.

Notes

1. US Stat. 833 (1943). Safeguards are often referred to in literature as “escape clauses.”

2. S. Rep. No. 1298, 93rd Cong., 2nd Sess. 119 (1974). Or, to borrow from Segal (2011), trade produces winners and losers, as capital and labor get reallocated to the sectors in which countries excel. Since the winners win more than the losers lose, openness is to a nation’s overall benefit—even though the autoworker in Ohio who is put out of work after his factory closes may not share in that benefit. Safeguards are to help protect the autoworker in Ohio. Whether this is sound policy is something that we will be discussing in what follows.

3. See Bronckers (1985); Jackson (1969); Stewart and Brilliant (1993). See also Article 5 of the Preliminary Draft International Agreement for the Abolition of Import and Export Prohibitions and Restrictions, League of Nations, Economic and Financial, 1928.II.7.

4. See also Article 5 of the Preliminary Draft International Agreement for the Abolition of Import and Export Prohibitions and Restrictions, League of Nations, Economic and Financial, 1928.II.7.

5. Only in exceptional circumstances would this obligation be waived. Even in such cases, nevertheless, negotiations would resume as soon as practicable after the imposition of the safeguard.

6. The US State Department developed the escape clause in 1941 after Congress expressed concerns about the impact of war and postwar disruptions on US industries. It was a component of the December 1941 template reciprocal trade agreement reproduced in Annex B-1. It first appeared in the US–Mexico trade agreement of 1934, as stated previously. The Article XI safeguard of the 1934 reciprocal trade agreement with Mexico read “If, as a result of unforeseen developments and of the concession granted on any article enumerated and described in the Schedules annexed to this Agreement, such article is being imported in such increased quantities and under such conditions as to cause or threaten serious injury to domestic producers of like or similar articles, the Government of either country shall be free to withdraw the concession, in whole or in part, or to modify it to the extent and for such time as may be necessary to prevent injury” (57 Stat. 845). In addition, as chapter 1 also mentions, Congress required a safeguard measure in all executive trade agreements as a result of a deal with the Harry Truman administration in February 1947.

7. E/PC/T/C.6/28 of 31 January 1947, and Rev. 1 of 8 February 1947; see also E/PC/T/C.6/W.66 of 11 February 1947, at pp. 1ff., and E/PC/T/C.6/W.87, at pp. 1ff. Canada and Chile, nevertheless, continued to be opposed to the idea of allowing safeguard action without prior

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