Trade Defense Actions in Arab Countries Free Trade Agreements with the U.S: The Case of Safeguards

Abstract

The purpose of all free trade agreements is, among other things, to liberalize trade and increase market access. Mindful that requiring trade liberalization could result in damaging consequences among the participating countries that are at different levels of economic development, the U.S.–Arab countries free trade agreements (FTAs) include exceptions. These FTAs permit countries to depart “temporarily” from their obligations of liberalizing trade, and apply safeguard measures. This article surveys safeguard provisions on trade in goods in U.S.–Arab countries FTAs. In particular, the article identifies those FTAs that modify the conditions applicable to the partner either substantively or procedurally in the event that a global safeguard is invoked. In the case of bilateral safeguards, the article analyses provisions governing injury assessment and causation, conditions for the invocation of a measure, and the types of measures that may be employed. The article uses, whenever possible, the yardstick of GATT Article XIX and the WTO Safeguards Agreement to determine whether the provisions applicable to bilateral safeguard measures are more or less stringent than the corresponding multilateral rules. The article also examines the reference to infant industry and special safeguards applicable to textile and agricultural products found in these FTAs. The article concludes with a set of suggestions.