ABSTRACT
Article XIX of the GATT is widely known as the Escape Clause or Safeguard Provision. It allows a GATT signatory in certain circumstances to avoid GATT obligations that cause serious injury to domestic industries of a product like, or competitive with, one whose importation is increasing.1 When the increase in imports is caused by unforeseen developments and prior GATT obligations, a Contracting Party can modify or withdraw the relevant trade concessions. Measures taken under Article XIX are intended to be temporary, lasting only long enough to prevent or remedy the injury, and applied in a nondiscriminatory way to all Parties exporting the product. Finally, they can only be undertaken when Parties with substantial interests have been consulted and agree to the import restraint or receive proper compensation.2 A new Agreement on Safeguards was negotiated during the Uruguay Round and is discussed throughout this chapter.
