Hatters' fur
Hatters' fur: a dispute in 1950 between the United States and Czechoslovakia about the interpretation of "unforeseen developments". This is one of the conditions set out in GATT Article XIX (Emergency Action on Imports of Particular Products) which had to be satisfied before action to cut imports could be taken. The United States argued, the first time it had resorted to this Article in a GATT working party, that a change in hat fashions was an unforeseen development and therefore justification for action against the import of hatters' fur from Czechoslovakia. Czechoslovakia argued that changes in fashions were normal and should be expected. The United States won. John Jackson said of this case in World Trade and the Law of the GATT that one could almost conclude that an increase in imports could itself be an unforeseen development. The WTO Agreement on Safeguards now permits the use of safeguards action only if it has been properly determined that a product is being imported in such increased quantities to cause or threaten to cause serious injury to domestic industry that produces like or directly competitive products. A case of this nature would be difficult to win under the current rules.
Source: http://ctrc.sice.oas.org/trc/WTO/Documents/Dictionary%20of%20trade%20%20policy%20terms.pdf
Web site to visit: http://ctrc.sice.oas.org
Author of the text: W. Goode
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