./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q1/ECU/3
19 April 1999
(99-1567)
Committee on Safeguards Original:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLE 12.6 OF THE AGREEMENT
Replies to Questions Posed by the United States1
Regarding the Notification of Ecuador2
The following communication, dated 7 April 1999, has been received from the Permanent
Mission of Ecuador.
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Question 1
The definition of "safeguard" in Title II of Ecuador's law states that a safeguard
measure may be taken when imports "have increased or will increase".  Article XIX of
GATT 1994 and Article 2, paragraph 1 of the WTO Agreement on Safeguards refer only to"increased quantities".  Does Ecuador envision taking a safeguard action when it believes that
imports might increase but have not yet increased?  Please explain how the phrase "will
increase" is consistent with the term "incre ased quantities" in Article XIX and the WTO
Agreement on Safeguards.
Reply
Regardless of the definition of safeguard given in Article 3 of Resolution 0003, the
Ecuadorian investigating authority will apply a safeguard measure only if it has determined that
imports of the product under investigation have increased, as provided for in Article 54, ensuring
consistency with Article XIX of GATT 1994 and the WTO Agreement on Safeguards.
Question 2
Article 56 of Ecuador's law states that the "review for determining serious injury or
threat thereof shall comprise a period covering imports of the like product in the last twelve
(12) months for which information is available".  It further states that the administeringauthority may extend the period to include im ports entered after the initiation of the
investigation.  Does this mean that Ecuador will only examine imports and industry trends over
a 12-month period to determine whether imports have increased and whether an industry is
seriously injured or threatened with serious injur y?  Please explain how an investigation limited
to examination of data for the most recent 12 months could provide sufficient information tosupport a finding that increased imports are caus ing or threatening serious injury and that a
safeguard measure of up to four years duration is justified.
                                                     
1 G/SG/Q1/ECU/2.
2 G/SG/N/1/ECU/2/Suppl.1.G/SG/Q1/ECU/3
Page 2
Reply
The final part of Article 56 of Resolution 0003 establishes that the 12-month period may be
modified, which enables the authority to consider a period of analysis of imports covering the
previous four years and the elapsed period of the current year, ensuring consistency with the finalparagraph of Article 60 of the Resolution.
Question 3
Article 3 of the Agreement on Safeguards sets out certain procedures that must be
followed by the competent domestic authorities in conducting investigations, including with
respect of public notice, opportunity for importers, exporters, and other interested parties topresent evidence and views, and publication of a report setting forth findings and reasoned
conclusions on pertinent issues of fact and law.  Article 3 also addresses the issue of confidential
treatment of certain information obtained duri ng the investigation. Has Ecuador established
procedures consistent with its obligations under Article 3 for use in safeguard investigations,
and, if so, have they been notified to the Committee on Safeguards?  If Ecuador has notestablished such procedures, when does Ecuador in tend to and when will they be notified to the
Committee?  Will Ecuador consider applying a safeguard measure in the absence of published
and properly notified procedures?
Reply
Article 64 of Resolution 0003 enables the provisions of Articles 21 to 26 to be applied to the
case of safeguards.  Those Articles refer to submission, receipt, evaluation and acceptance of an
application, initiation of an investigation, consultations, publication and notification, and forms.
Article 65 also establishes that the provisions of Articles 28 to 35 apply in the case of
safeguards.  These Articles concern the preparation of the file, determination and imposition of
provisional measures, investigation time-frames, access to the file, evidence and information
requested or furnished, confidential information, technical information meetings and clarificatory
hearings.
In any event, Ecuador will not apply a safeguard measure without first publishing it and
without affording the corresponding opportunity for interested parties to submit their evidence and
views.
Question 4
With regard to remedy, who under Ecuador law will make the decision concerning the
remedy measure to be applied?  What procedures will be followed in deciding the remedy
question?  What factors will be considered in determining how much relief to apply and for
what duration, and what limitations will apply with respect of measures allowed under
Ecuadorian law?
Reply
Articles 69, 70 and 71 of Resolution 0003 establish the procedure to be followed by the
Ecuadorian authority as regards the conditions of application of a definitive safeguard and theapplication, duration and review of the measure.
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