The Effects of Section 201 Safeguards on U.S. Industries

By Ryan, David | Georgetown Journal of International Law, Fall 2012 | Go to article overview

The Effects of Section 201 Safeguards on U.S. Industries


Ryan, David, Georgetown Journal of International Law


INTRODUCTION

I.  SAFEGUARDS IN INTERNATIONAL TRADE LAW
     A. Origins of International Safeguards Law: GATT
        Article XIX
     B. Modern Developments: Agreement on Safeguards and the
        WTO
II. SAFEGUARDS IN U.S. TRADE LAW
     A. Origins of U.S. Safeguards Law
     B. Modern Developments: Section 201 of the Trade Act
        of 1974
     C. Conflicts Between U.S. Safeguards Law and the WTO
     D. U.S. Safeguards in Practice
III. CASE STUDIES
     A. Case Study Methodology
     B. Case Study #1: Lamb Meat
        1. Background
        2. USITC Investigation
        3. Safeguards
        4. Industry Performance
           i.   Domestic Production
          ii.  Imports
         iii. Domestic Industry Market Share
          iv.  Price
           v. Number of U.S. Establishments
          vi. Conclusion
     C. Case Study #2: Wheat Gluten
        1. Background
        2. USITC Investigation
        3. Safeguards
        4. Industry Performance
           i. Imports
          ii. Domestic Industry Performance
        5. Conclusion
     D. Case Study #3: Circular Welded Carbon Quality Line Pipe
        1. Background
        2. USITC Investigation
        3. Safeguards
        4. Industry Performance
           i. Domestic Production
          ii. Imports
         iii. Domestic Industry Market Share
          iv. Average Unit Value
           v. Capacity Utilization
          vi. Hours Worked
        5. Conclusion
IV.  CONCLUSIONS AND RECOMMENDATIONS
     A. Apply Safeguards Only to Offset Import Surges Caused by
        Temporary and Unforeseen Factors
     B. Conduct Follow-Up Evaluations

INTRODUCTION

Over the past sixty years, the United States and many other countries have negotiated significant reductions in barriers to trade. (1) These reductions have helped spur the rise of international trade that has fundamentally re-shaped the modern world. While providing an engine for global economic growth and development, the liberalized trade regime has also increased international competition to unprecedented levels. (2)

The U.S. Congress passed section 201 of the U.S. Trade Act of 1974 (3) to mitigate the economic upheaval associated with the increased competition caused by liberalized trade and globalization. (4) Section 201 authorizes the President of the United States to instate temporary trade barriers, known as safeguards, to protect domestic industries that have been injured or threatened by increased imports. The stated goal of a section 201 safeguard is to facilitate efforts of the domestic industry to "make a positive adjustment to import competition." (5) The statute defines a "positive adjustment" as either (1) becoming "able to compete successfully with imports after actions taken under ... this title terminate," or (2) "experiencing an orderly transfer of resources to other productive pursuits." (6) In practice, the U.S. government generally implements safeguards with the goal of helping domestic industries become competitive with imports. (7) Four of the last six U.S. presidents implemented safeguards at least once to protect and restore injured or threatened domestic industries. (8)

Safeguards are permitted under the Global Agreement on Tariffs and Trade (GATT). (9) However, safeguards operate in tension with the general purpose of the international trade system. The trade system is structured around mutual obligations between countries to maintain agreed-upon levels of concessions for imports. (10) Safeguards explicitly allow countries to "escape" their obligations. Indeed, the portion of the GATT authorizing safeguards became known as the "escape clause." (11)

International lawyers and political scientists have engaged in considerable debate over the political and legal ramifications of safeguards. (12) However, the debate has not been informed by empirical data demonstrating whether safeguards are effective at achieving their primary function: to facilitate the efforts of the domestic industry to become "able to compete successfully with imports after [safeguard actions] terminate.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Effects of Section 201 Safeguards on U.S. Industries
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.