Safeguard provisions and protective measures designed to protect manufacturers and domestic markets from injury that may result from quota elimination in 2005 include:
China Textile Specific Safeguards
Safeguard provisions for imports from China are designed to protect manufacturers from potential injury resulting from increased imports of textile and apparel products. This provision is only available for the 2005 – 2008 calendar years.
The proposed procedure requires written communication to the Minister of International Trade, stating that there is a surge in imports resulting in severe harm to the manufacturing sector, therefore requiring a re-imposition of quota. Currently, the Canadian government has not stipulated what timeframes will be followed or whether there will be a consultation process.
The quota for either government is only permitted to be in effect for a 12-month period from the original request date. For the quota to be re-instated after the 12-month period, the request and consultation process referred to above must once again occur.
World Trade Organization (WTO) Safeguards of Quotas and/or Duties
Protective measures of quota and/or duties are available for WTO members should a particular domestic industry experience injury or be threatened as a result of a surge in imports. While there is no expiration date for this safeguard mechanism, every action or request must be renewed.
Some examples of WTO member countries that continue to be the focus of attention are Hong Kong, China and India. For more details, please refer to www.wto.org.
Anti-Dumping Measures (not only limited to China)
Where material injury to the domestic market can be proven for particular products, anti-dumping duties may be levied. This is applicable when goods are sold into the domestic marketplace at a price less than what they would sell at in their own market, or at a price below the actual production cost. The maximum timeframe for the anti-dumping measures to remain in effect is five years from the date of imposition, unless further injury can be substantiated.
For Additional Information
Additional information can be obtained from the following websites:
Questions can be directed to our senior consultants.