South Centre Analytical Note - September 2005

WHAT IS AN EMERGENCY SAFEGUARD MECHANISM IN GATS?

An emergency safeguard mechanism (ESM) for trade in services would allow World Trade Organisation
Members to temporarily suspend their liberalisation commitments during or in response to a threat of an
import surge that would result in serious injury to domestic industry and hence national growth and
development.

There are currently negotiations within the General Agreement on Trade in Services on the issue of an ESM
for trade in services. These negotiations were reinitiated after the establishment of the GATS in 1995 after
Members were unable to complete these negotiations during the Uruguay Round.

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