KUALA LUMPUR, Nov 7 – Following are the latest Frequently Asked Questions (FAQ) on the Trans-Pacific Partnership Agreement (TPPA) available on the International Trade and Industry Ministry website. The following are questions and answers on trade remedies:
1. What are trade remedies?
Trade remedies are measures taken to provide temporary relief to countries that encounter injury to the domestic industry as a result of liberalisation. Such injured Parties will be able to resort to certain avenues to depart temporarily from their liberalization commitments under trade agreements, subject to specific terms and conditions.
2. What are the trade remedies in TPPA?
One of the trade remedies in the TPPA is the application of safeguard measures. This could also be considered as an “emergency action” as it may be taken when there is a surge of imports that causes, or threatens to cause, serious injury to a domestic industry. Safeguard measures allow a country to respond to increased imports due to liberalisation which have caused serious injury.
However, such imports must be recent, sudden, sharp and significant enough to have caused the serious injury. Once it is proven that there is a surge of imports that causes or threatens to cause serious injury to a Party’s domestic industry, the following measures can be taken:
a) suspension of further reduction of any customs duty rate provided for under the TPPA on the affected goods; or
b) increase of customs duty rate on the goods to a level prevailing before the safeguard action.