When China joined the World Trade Organization (WTO), the associated agreements included a transitional product-specific safeguard mechanism to address market disruption caused or threatened by surging Chinese imports. This mechanism is only available until 11 December 2013 or twelve years from when China joined the WTO. The relevant US statute that adopted the safeguard mechanism is commonly referred to as 'section 421'. Under section 421, the US International Trade Commission conducts a market disruption investigation and, if it reaches an affirmative determination, the President decides whether to proclaim a remedy with assistance from the US Trade Representative. Section 421 investigations proceed quickly, and import remedies such as increased duties or quotas may be imposed in a matter of months. President Obama proclaimed import relief for the first time under section 421 in a case involving certain Chinese tires in 2009. With less than two years remaining in the lifespan of this transitional product-specific safeguard mechanism, this article concludes that section 421 remains a useful method for US industries facing injurious Chinese imports to obtain meaningful relief.
Global Trade and Customs Journal