Page 516 - Manual Of Operating Practices For Trade Remedy Investigations

Safeguard Investigations

21.53 The WTO Panel in the case of Korea-Dairy Productsset forth the basic
approach for determining “causation”, which inter-alia includes that in its causation
assessment, the national authority is obliged to evaluate all relevant factors of an
objective and quantifiable nature having a bearing on the situation of that industry.
In addition, if the national authority has identified factors other than increased
imports which have caused injury to the Domestic Industry, it shall ensure that any
injury caused by such factors is not considered to have been caused by the increased
imports. In addition, having analysed the situation of the Domestic Industry, the
authority has the obligation not to attribute to the increased imports any injury
caused by other factors.

21.54 The Appellate Body in the US-Safeguard Measures on Wheat Gluten held
that the existence of causal link does not mean that increased imports are the sole
cause of injury. According to the Appellate Body the language of Article 4.2(b)
suggests that the causal link between the increased imports and serious injury may
exist, even though other factors are also contributing “at the same time” to the
situation of the domestic industry.

Adjustment Plan
21.55 “Adjustment Plan” refers to an action plan which a domestic industry is
required to submit, that describes a set of quantified goals, specific plans, and
timetables that a concerned industry commits to undertake in order to facilitate
positive adjustment of the industry to import competition. One of the core features
of the WTO Agreement on Safeguards is emphasis on adjustment by the domestic
industry.

Reviews of Safeguard Duty
21.56 Rule 18 of the Safeguard Rules, 1997 provides for the review of Safeguard
Duties. Rule 18 reads as under:

(1) The Director General shall, from time to time, review the need for continued
imposition of the safeguard duty and shall, if he is satisfied on the basis of
information received to him that,
(i) safeguard duty is necessary to prevent or remedy serious injury
and there is evidence that the industry is adjusting positively, it may
recommend to the Central Government for the continued imposition
of duty;

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