How does the WTO provide for the protection of domestic industries under the safeguards clause?
The WTO permits its members to apply a safeguard measure against imports of a particular product if it has been determined that these imports have come into the country in such increased quantities (absolute or relative to domestic production) and under such conditions as to cause or threaten to cause serious injury to the domestic industry which produces like or directly competitive products. Safeguard measures may take the form of tariff increases or import restrictions (import quotas), but they must be of a temporary nature (maximum duration four years; extension up to eight years; for developing countries, 10 years).
