. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q2/USA/8
5 June 2000
(00-2203)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.5 OF THE AGREEMENT
ON SAFEGUARDS OF THE RESULTS OF A MID-TERM
REVIEW REFERRED TO IN ARTICLE 7.4
Questions posed by the EUROPEAN COMMUNITIES
Regarding the Notification of the UNITED STATES1
The following communication, dated 29 May 2000, has been received from the Permanent
Delegation of the European Commission.
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Notification pertaining to the result of a mid-term review on Wheat Gluten (G/L/347-
G/SG/N/13/USA/1)
Question 1
Notification document G/L/347 - G/SG/N/13/USA/ 1 contains a reference to the allegation of
circumvention of the quota by substantial imports of a "pre-mix" product for use in pet food
applications containing wheat gluten classified under a different customs heading than wheat gluten.
Do the United States agree that any "extension" of the scope of the existing safeguard
measures on wheat gluten to cover the "pre-mix" product is not in accordance with the provisions of
the WTO Agreement on Safeguards since it has not been included in the original investigation and
there is therefore no evidence that the conditions laid down in Articles 2 and 4 of the said Agreement
are met with respect to imports including this product? If not, on what grounds would the US maintainthat such an extension of the quota would be in conformity with the WTO Agreement on Safeguards?
Question 2 (additional question, not raised during the meeting of the WTO Safeguards Committee of
8 May 2000):
The European Communities has received informati on that the United States intend to replace
the annual quota by a quarterly quota with each quota amount being 25 per cent of the former annual
amount.
(a) Do the United States confirm that shipments en route on the date on which public
notice is given of the new quota will be admitted under existing arrangements, i.e. the
quota regime as notified in G/ SG/N/10/USA/2-G/ SG/N/11/USA/2,
G/SG/N/10/USA/2/Suppl. 1-G/SG/N/ 11/USA/2/Suppl.1 as required by
Article XIII 3.b of GATT 1994?  If not, please explain how this provision is being
complied with.
                                                     
1 G/L/347-G/SG/N/13/USA/1G/SG/Q2/USA/8
Page 2
(b) Can the US confirm that, in the event product in excess of the 1st quarter's quota is
presented in the first period, the allocations of the excess product for the 2nd quarter's
quota will be determined during the first period for release at the later date, enabling
traders to plan their business with a degree of predictability? If not, how does the USintend to implement this new quota in a manner which will not provoke a quota race
for each quarter, causing maximum disruption to  trade, in particular in view of the
obligation contained in Article 5.1 of the WTO Agreement on Safeguards, that “a
member shall apply safeguard measures only to the extent necessary to remedy
serious injury and to facilitate adjustment”?
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