Safeguard actions are initiated to provide industries with temporary, comprehensive relief from imports that are entering in volumes that cause or threaten to cause serious injury. ECS has unparalleled experience in safeguard proceedings, participating in the vast majority of cases that have been conducted over the past two decades.
Section 201 of the Trade Act of 1974 (known as the "Escape Clause") provides U.S. industries with temporary, comprehensive relief from imports that are entering the country at a rate that causes or threatens to cause serious injury. ECS has aided domestic industries and importers in a large portion of all U.S. Escape Clause cases, testifying before and providing economic analysis to the ITC as well as preparing analyses for submission to the Executive Branch.
China's accession to the WTO included transitional remedies to address import surges into other countries that lead to market disruption. In the United States, the relevant safeguard provision was enacted as Section 421 of the Trade Act of 1974 (as amended). If the ITC makes an affirmative determination to market disruption, the ITC recommends a remedy to the President, who can accept, modify, or reject the remedy recommendation. A Section 421 proceeding includes both an ITC investigation as well as executive branch consideration including an inter-agency hearing under the direction of the Office of the U.S. Trade Representative. ECS has participated in three Section 421 proceedings, as of this writing.