A mechanism ensured by the WTO agreement to protect the domestic industry from serious injury or threat to cause injury du​e to unexpected developments that led to an absolute or relative increase in imports. This agreement is committed to limiting injuries suffered by member states through the suspension of their obligations under the WTO agreement by reducing the volume of imports of a particular product for a specified period of time until the domestic industry is well prepared to face these unexpected circumstances which led to an increase in imports and damaged the industry. However, one of the main reasons that pushed the negotiating countries to issue this mechanism, at times considered an "emergency escape from obligations", is to encourage a number of members to agree to the WTO's commitments to liberalizing markets and reducing tariffs, as this mechanism enables them to suspend these commitments temporarily until the industry gets back on its feet. The provisions for member states to take safeguards are contained in Article 19 of the General Agreement on Tariffs and Trade (GATT 1994) and the safeguards​ agreement.

​safeguards are imposed on the imported product of a member state, regardless of its source, whenever it is proven that this product is imported into the state's market in significant amounts, increasingly, suddenly, intensely, and recently, whether that increase is absolute or in relation to domestic production, causing serious injury to the domestic ​industry that produces similar or directly competitive goods, or threatens to cause such an injury​.

 

The following conditions are required for safeguard measures to be imposed:

• Unexpected developments.
  
• Developments led to a large, sudden, and recent absolute or relative increase in imports, compared to local production.
  
• Developments caused or threatened to cause injury to the domestic industry ​ that produces similar or relatively highly competitive products.
• The causal link ​between the sudden increase in imports and serious injury or threat to cause said the injury is proven.
  

"Serious injury" refers to a significant overall weakening of a domestic industrial center. The serious injury is usually considered more severe than material injury​ in cases of anti-dumping or countervailing measures. It requires examining the impact of the increase in imports on the economic indicators of the relevant local industry that affect the state of the industry, i.e., the actual and potential decline in sales, profits, production, exploited energy, and labor.

A threat to cause a serious injury is an imminent injury that leads to an overall weakening of a domestic industrial center. This threat is determined based on facts, rather than allegations, speculations, or possibilities.

There must be a causal link between the increased imports of the product in question and the serious injury or threat to cause said injury.

In case there are other factors which causing injury to the domestic industry, the injury should not attributed to the increased imports. ​

The requirements for determining the causal link conform to the provisions for anti-dumping and subsidy investigation.

It usually varies between three to five years. This period entails evaluating the serious injury based on industry data and its financial and economic indicators related to the similar product in order to demonstrate the serious injury caused to the domestic industry, as a result of the increased imports.

The safeguards investigation does not initiate until the investigation authority is confident of the validity and adequacy of the evidence presented in the complaint. After the investigation’s authority determines the relationship between the domestic industry and the producers of a similar or competing product for initiation of the investigation. The complaining industry and the other producers participating in the investigation represent a large proportion of the domestic industry. A complaint is submitted by one of the producers of the similar and competing product, a number of them, an industry union, or the relevant chamber of commerce on behalf of the domestic industry, provided that there is evidence that a large percentage of the industry that produces this similar or competing product is participating in the investigation.

• Temporary safeguard measures can imposed as soon as critical conditions proven to affect the domestic industry and any delay in imposing safeguard measures will lead to irreparable injury. Temporary safeguard measures shall take the form of an increase in the customs tariff for a period not exceeding 200 days. During which, the investigation will completed and results will reached.
  
• If the results are negative, these fees must refunded to the payers. However, if the result is positive and the imports are indeed causing serious injury to the domestic industry, final measures may be imposed for a period of four years, which may be extended to eight years, and this period may be extended to an additional two years for developing countries.
• Final measures may take the form of tariff increases or quantitative restrictions. In the case of quantitative restrictions, the quotas of each exporting country shall be calculated based on its average imports during the three years preceding the investigation. In this case, a consultation with the concerned exporting countries may take place.

The developing countries that are members of the organization exempted, as long as their shares of imports of the relevant product do not exceed 3% of the total imports of the product under investigation. Provided that the proportion of imports from all developing country members, knowing that each country has a share of imports below 3%, does not exceed 9% of the total imports of the product under investigation. Member states may exclude countries from safeguard measures if they have concluded free trade agreements, customs unions, or a common market stipulating this exception, giving these countries a preferential advantage in safeguard investigations or preventing to the imposition of such measures between these countries.​