According to the GATT, a tariff applied under the safeguard provision must:
A) be temporary.
B) be permanent.
C) apply to all imports.
D) be no higher than 10%.

Question

Quizplus · Accepted Answer

The correct answer is A because a safeguard tariff is meant to be temporary and only applied when a domestic industry is suffering from an unexpected surge of imports that is causing serious injury. This means that the tariff is not permanent and is intended to be removed once the domestic industry has had time to adjust and become competitive again. There is no specific maximum or minimum tariff rate for a safeguard measure under the GATT.

According to the GATT, a Tariff Applied Under the Safeguard