. /.WORLD TRADE
ORGANIZATIONG/SG/40/Suppl.8
8 March 2002
(02-1174)
Committee on Safeguards Original:  English
REQUEST FOR CONSULTATIONS FROM THE EUROPEAN COMMUNITIES
UNDER ARTICLE 12.3 OF THE AGREEMENT ON SAFEGUARDS
Imposition of a Safeguard Measure by the United States
On Imports of Certain Steel Products
Supplement
The following communication, dated 7 March 2002, has been received from the Permanent
Delegation of the European Commission.
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On 5 July 2001, the United States (“US”) notified the WTO under Article 12.1(a) of the
Agreement on Safeguards  on initiation of an investigation and the reasons for it (document
G/SG/N/6/USA/10).  On 11 Nove mber 2001, they notified the WTO under Article 12.1(b) of the
Agreement on Safeguards  on finding a serious injury or threat thereof caused by increased imports
(document G/SG/N/8/USA/8), and they offered to  hold consultations with countries having a
substantial interest as exporters.  On 18 January 2002, the European Communities (“EC”) accepted
the US offer for consultations, but noted that these consultations could not, alone, be considered to
relate to Article 12.3 of the Agreement on Safeguards .  These consultations were held on
13 February 2002 and the results thereof were notified by the US to the WTO under Article 12.5 of
the Agreement on Safeguards  on 21 February 2002 (document G/SG /40/Suppl.2 and G/L/509).  On
5 March 2002, the President of the US proclaimed the application of safeguard measures on imports
of certain steel products.  Under the Proclamation, the US provided the possibility to hold
consultations under Article 12.3 of the Agreement on Safeguards .
The EC is seriously concerned about the consistency of these measures with the GATT 1994
and the Agreement on Safeguards  and about the fact that the US measures for certain products has not
been taken as a result of an absolute increase of imports.
The EC formally requests the holding of consultations under Article 12.3 of the Agreement on
Safeguards  with a view to, inter alia , reviewing the information provided by the United States,
exchanging views on the announced measures and reaching an understanding on ways to achieve the
objective set out in Article 8.1 of the Agreement on Safeguards .  However, the EC reserves its
position as to whether the US Presidential Proclamation provides sufficient opportunity for adequateconsultations as required  by Article 12.3 of the Agreement on Safeguards .
The EC notes that the United States has not yet notified its decision to the WTO Committee
on Safeguards but trusts that it will do so in the co ming days in order to comply with the requirements
of Article 12.1(c) of the Agreement on Safeguards .
The EC proposes that consultations be held forthwith at a mutually agreed date and place.G/SG/40/Suppl.8
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The EC reserves all its rights regarding the pursuit of the remedies provided for under the
Agreement on Safeguards , and the Dispute Settlement Understanding.
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