Safeguards: Escape Clause
o definition - temporary relief to U.S. firms and
workers injured by increases in imports that are
fairly traded
o president can terminate trade concession or
levy trade restrictions
o common forms: tariff increases, tariff-rate
quotas, trade adjustment assistance
o can be enacted for 4 years and extended for
another 4 years
o example: Multifiber Arrangement – system to
restrict textile imports from developing
countries (quotas, country-by-country basis)