The safeguard provision or escape clause allows a country to:
A) import products below cost from foreign countries.
B) export products by selling below cost to foreign countries.
C) avoid tariffs in foreign countries temporarily.
D) temporarily increase tariffs on certain imported goods.

Question

Quizplus · Accepted Answer

The safeguard provision or escape clause allows a country to temporarily increase tariffs on certain imported goods when the domestic industry is being harmed by imports. This allows the domestic industry to have some protection against cheaper imports and gives them time to adjust and become more competitive. Option A is incorrect because importing products below cost is known as dumping and is usually subject to anti-dumping duties. Option B is incorrect because exporting products by selling below cost is not a desirable practice and can harm domestic industries in the foreign country. Option C is also incorrect because avoiding tariffs in foreign countries is not the purpose of the safeguard provision or escape clause.

The Safeguard Provision or Escape Clause Allows a Country To