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Bilateral Safeguard Investigations under Free Trade Agreements

The Commission conducts country or region-specific safeguard investigations under U.S. legislation that implements U.S. free trade agreements (FTAs). The safeguard provisions in the FTAs are generally transitional provisions operative for a limited period (e.g., 10 years) after the agreement enters into force. While each agreement is different, in general, if the Commission finds, as a result of a duty reduction under the agreement, that a domestic industry is seriously injured or threatened with serious injury by increased imports, it recommends a remedy to the President; the President makes the final decision on remedy. The United States has negotiated free trade agreements with Canada and Mexico (NAFTA), Australia, Bahrain, Chile, the Dominican Republic and several Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua) (DR-CAFTA-US FTA), Israel, Jordan, Morocco, Oman, Peru, and Singapore. Several of these agreements have been in force for a period longer than the transitional period.