An empirical analysis on the WTO safeguard actions

Abstract

Using WTO data on safeguard (SG) actions initiated during the period from 1995 to 2012, we empirically identify the factors that influence SG measure. Our analysis shows that most of the determinants emphasized by the existing studies peform their expected and statistically significant role in explaining the observed SG usage patterns across countries and industries. Countries take into consideration all factors that matter for SG measure, including potential retaliation threats, during initial investigation decision stage. Emerging economies as a group display a higher likelihood of SG utilization than other (advanced and developing) economies, but only a few such economies invoke SG measure more frequently than other SG-utilizing WTO members at individual level.