WORLD TRADE
ORGANIZATIONG/SG/N/8/ARG/3/Add.1
G/SG/N/10/ARG/2/Add.1
G/SG/N/11/ARG/2/Add.1
11 July 2001
(01-3447)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.1(b) OF THE AGREEMENT
ON SAFEGUARDS ON FINDING A SERIOUS INJURY OR
THREAT THEREOF CAUSED BY
INCREASED IMPORTS
NOTIFICATIONS PURSUANT TO ARTICLE 12.1(c) AND
ARTICLE 9, FOOTNOTE 2, OF THE
AGREEMENT ON SAFEGUARDS
ARGENTINA
Addendum
The following communication, dated 26 June 2001, has been received from the Permanent
Mission of Argentina.
_______________
Further to our communication No. 189 of 18 June 2001, I have the pleasure to forward to you
the enclosed copy of Resolution No. 229/01 of the Ministry of the Economy so that it may be added to
the notification made by our country in accordance with Article 9, footnote 2, and Article 12.1(b) and
(c) of the Agreement on Safeguards, with reference to the closure of the safeguard investigation on
mopeds and motorcycles of up to 100 cc cylinder capacity, excluding quadricycles and so-called all-terrain vehicles.G/SG/N/8/ARG/3/Add.1
G/SG/N/10/ARG/2/Add.1
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Ministry of the Economy
Foreign Trade
Resolution 229/2001
Announcing the decision to close the safeguard investigation concerning imports of mopeds and
motorcycles of up to one hundred cubic centimetres (100 cc) cylinder capacity, excluding
quadricycles and so-called all-terrain vehicles
Buenos Aires, 21 June 2001
HAVING REGARD to File No. 060-001869/2000 of the Registry of the Ministry of the
Economy, and
WHEREAS:In that file the domestic manufacturer Zanella Hermanos y Compañia Sociedad Anonima,
Comercial, Industrial, Financiera e Inmobiliaria requested the opening of an investigation with a view
to the application of a safeguard measure concerning the importation of mopeds and motorcycles of
up to one hundred cubic centimetres (100 cc) cylinder capacity, excluding quadricycles and so-calledall-terrain vehicles, by which is meant trial, endurance and motorcross vehicles, under the following
tariff headings of the MERCOSUR Common Nomenclature:  8711.10.00 and 8711.20.10.
The National Foreign Trade Commission, a decentralized body under the former Secretariat
of Industry, Trade and Mining of the Ministry of  the Economy, determined, pursuant to Article 10 of
Decree No. 1059 of 19 September 1996, in its Di rective No. 615 of 10 May 2000 that "the request
showed sufficient evidence of serious injury caused by imports to the domestic industry, though
without satisfying the conditions required by the current regulations for the possible application of
provisional measures".
The former Under-Secretariat of Industry, Tr ade and Mining in the former Secretariat of
Industry, Trade and Mining of the Ministry of the Economy, in its technical report of 19 May 2000prepared pursuant to Article 10 of Decree No. 1059 of 19 September 1996, concluded that
"throughout the period concerned and especially since 1998, the year when the greatest absolute
variation in imports was recorded, domestic production of the product in question lost market share to
imports …".
The existence of a causal link between the increased imports and the serious injury has been
established.
In the light of the conclusions of the National Foreign Trade Commission, and of the
technical report by the former Under-Secretariat fo r Industry, Trade and Mining, and in view of the
factors in the present case, it was concluded that circumstances existed to justify the opening of an
investigation with a view to the application of a safeguard measure concerning the product under
investigation.
Pursuant to Resolution No. 353 of 17 July 2000 and Resolution No. 438 of 14 August 2000 of
the former Secretariat of Industry, Trade and Mining, it was decided to open a safeguard investigation
concerning imports of mopeds and motorcycles of up to one hundred cubic centimetres (100 cc)
cylinder capacity, excluding quadricycles and so-called all-terrain vehicles, by which is meant trial,
endurance and motorcross vehicles.G/SG/N/8/ARG/3/Add.1
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Following the opening of the investigation on  19 September 2000 in conformity with the
provisions of Article 3 of the Agreement on Safeguards, approved by Law No. 24.425 and
Article 13(e) of Decree No. 1059/96 establishing regulations for the implementation of
Law No. 24.425, a public hearing was held so that the parties involved in the investigation could setforth their arguments.
The National Foreign Trade Commission, a decentralized body under the Secretariat of Trade
of the Ministry of the Economy, concluded in Act No. 776 of 13 June 2001 that "the domestic
industry of mopeds and motorcycles of up to one hundred cubic centimetres (100 cc) cylinder
capacity, excluding quadricycles and so-called all-terrain vehicles, by which is meant trial, endurance
and motorcross vehicles, is suffering serious injury, that there is a causal link between the increasedimports and such injury, and that that increase has been the result of an unforeseen series of
circumstances.  Consequently, the Commission finds that the conditions required under Article 2 of
the WTO Agreement on Safeguards have been met so as to allow the application of a safeguard
measure".
The applicant has submitted a readjustment plan and has engaged to apply it and fulfil the
objectives contained therein subject to monitoring by the implementing authority.
The Secretariat of Trade of that Ministry, acting within its field of competence, supported the
adoption of a safeguard measure.
Having ascertained that there has been an in crease in imports in circumstances such as to
cause serious injury to domestic production, in conformity with Article 18 of Decree No. 1059 of
19 September 1996, and after analysis by the Secretariat of Trade of that Ministry of the technical
reports provided for in Article 15 of the above-mentioned regulation, it has been concluded that thelegal conditions and other reasons in terms of timing, merit and advisability exist to justify the
application of a safeguard measure.
In conformity with the provisions of Article 5.1 of the Agreement on Safeguards, the
proposed measure remedies the serious injury and facilitates adjustment of the branch of domestic
production affected.
Accordingly, in order to ensure effective implementation, the measure will take the form of
minimum specific duties under the tariff headings of the MERCOSUR Common Nomenclature for the
product under investigation, as specified in Annex I which is an integral part of this Resolution.
The Committee on Safeguards has been duly notified in accordance with Articles 12.1 and
12.4 and footnote 2 to Article 9.1 of the Agreement on Safeguards, incorporated into our legal system
by Law No. 24.425.
Decision No. 8/94 of the Common Market Council stipulates in Article 3 that "safeguard
measures may be applied under the GATT legal regime when imports from commercial free zones,industrial free zones, free zones for the processing of exports and special customs areas involve an
unforeseen increase in imports that cause injury or the threat thereof for the importing country.
There has been found to be an increase in imports from the Manaos Special Customs Area of
the Federative Republic of Brazil.
The Legal Service for Industry, Trade and Mining in the General Directorate of Legal Affairs
of the Ministry of the Economy stated in opinion No. 1660 of 24 May 2001 that "in the opinion of the
advisory body it is clear from the provisions of Article 3 of Decision No. 8/94 of the Common MarketG/SG/N/8/ARG/3/Add.1
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Council that it is legally permissible in the framework of GATT and MERCOSUR to apply safeguard
measures to goods form the Manaos Special Customs Area".
Article 9.1 of the Agreement on Safeguards as approved by Law No. 24.425 provides that
safeguard measures shall not be applied to developing country Members of the World Trade
Organization whose imports do not exceed 3 per cent (3%) taken individually and 9 per cent (9%)
collectively.
It was decided, on the basis of imports for the period covered by the years 1998-2000, that the
imports from the Kingdom of Thailand, the Republic of Peru and Hong Kong would be excluded from
the application of the safeguard measure since they come within the terms of Article 9.1 of theAgreement on Safeguards.
In the event of the imports referred to in the preceding preambular paragraph increasing, so as
to produce a change in their percentage, the treatment granted will be reviewed.
This measure shall be carried out with due respect for existing multilateral, regional or
bilateral international agreements.
With respect to imports of goods originatin g in and coming from MERCOSUR States Parties,
this measure shall be implemented pursuant to the provisions in force in that regard.
Resolution No. 763 of 7 June 1996 and Resolution No. 381 of 1 November 1996 of the
former Ministry of the Economy and Public Works and Services have established the contents and
procedures for the presentation of a certificate in the context of the monitoring of non-preferential
origin for import transactions subject to such a requirement, in accordance with the provisions of theAgreement on Rules of Origin, which forms part of  the Results of the Uruguay Round of the General
Agreement on Tariffs and Trade (GATT) 1994, approved by Law No. 24.425.
In accordance with the provisions of the Resolutions cited in the preceding preambular
paragraph, the Secretariat of Trade of that Ministry is the implementing authority of the regime in
question and as such stipulates the circumstances and methods that are to apply in carrying out such
monitoring.
Accordingly, it may decide to require certificates  of origin when the goods are subject to the
application of anti-dumping, countervailing or specific duties or safeguard measures in accordance
with the provisions of Article 2(b) of Resolution No. 763 of 7 June 1996 of the former Ministry of the
Economy and Public Works and Services.
In view of what has been stated in the preceding preambular paragraphs, it is necessary to
instruct the General-Directorate of Customs of  the Federal Public Revenue Administration, an
autonomous body within the Ministry of the Economy, to maintain the requirement for certificates of
origin.
The General Directorate of Legal Affairs of the Ministry of the Economy has taken the
appropriate action within its sphere of competence.
This Resolution is issued under the powers conferred by the Agreement on Safeguards,
incorporated into our legal system by Law No. 24.425 and Decree No. 1059 of 19 September 1996.G/SG/N/8/ARG/3/Add.1
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Therefore,The Ministry of the Economy
DECIDES:Article 1 .  The safeguard investigation on exports to the Argentine Republic of mopeds and
motorcycles of up to one hundred cubic centimetres (100 cc) cylinder capacity, excluding
quadricycles and so-called all-terrain vehicles, by which is meant trial, endurance and motorcross
vehicles, under the following tariff head ings of the MERCOSUR Common Nomenclature:
8711.10.00 and 8711.20.10, is declared closed.
Article 2 .  A safeguard measure consisting in the setting of minimum specific duties for
imports of the products described in Annex I, which is an integral part of this Resolution, including
the corresponding liberalization timetable, shall be imposed.
Article 3 .  The safeguard measure provided for in Article 2 of this Resolution shall be
progressively liberalized in accordance with the timetable established in the above-mentioned
Annex I.
Article 4 .  By virtue of Article 3 of MERC OSUR Common Market Council Decision
No. 8/94 the safeguard measure shall be applicable to goods originating in the Manaos Special
Customs Area of the Federative Republic of Brazil in accordance with the description contained in
Annex I which is an integral part of this Resolution.
Article 5 .  Imports originating in the Kingdom of Thailand, the Republic of Peru and Hong
Kong shall not be subject to the measure imposed since they are covered by the exception provided
for in Article 9.1 of the Agreement on Safeguards, incorporated into our legal system by
Law No. 24.425.
Article 6 .  The General Directorate of Customs attached to the Federal Public Revenue
Administration, an autonomous body within the Ministry of the Economy, shall be notified that all
imports of the products described in Article 2 of this Resolution are subject to the regime for themonitoring of non-preferential origin under the terms of Article 2(b) of Resolution No. 763 of
7 June 1996 of the former Ministry of the Economy and Public Works and Services.
Article 7 .  The requirement mentioned in the previo us Article will comply with the conditions
and procedures established by Resolution No. 763 of 7 June 1996 and Resolution No. 381 of1 November 1996 of the former Ministry of the Economy and Public Works and Services, and the
supplementary rules and customs provisions established for their implementation.
Article 8 .  The safeguard measure imposed by this Resolution shall remain in force for three
(3) years and shall take effect as of 22 June 2001.
Article 9 .  With regard to imports originating in and coming from MERCOSUR States
Parties, the provisions of the Regulation on the Application of Safeguard Measures to Imports from
Non-Members of MERCOSUR, approved by Comm on Market Council Decision No. 17/96, shall
apply.
Article 10 .  For communication, publication, transmittal to the Official Registry and
archiving - Carlos M. Bastos.G/SG/N/8/ARG/3/Add.1
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ANNEX I TO RESOLUTION No. 229
Minimum specific duties on imports of mopeds and motorcycles of up to one hundred cubic
centimetres (100 cc) cylinder capacity, excluding quadricycles and so-called all-terrain vehicles,by which is meant trial, endurance and motorcross vehicles which come under MERCOSUR
tariff headings 8711.10.00 and 8711.20.10
Safeguard measure Liberalization timetable
Cylinder capacityUS$/Unit
from 22 June 2001
to 21 June 2002US$/Unit
From 22 June 2002 to
21 June 2003US$/Unit
From 22 June 2003 to
21 June 2004
Less than or equal to50 cc 314 251 219
Greater than 50 cc andless than or equal to
55 cc314 251 219
Greater than 55 cc and
less than or equal to
75 cc297 238 208
Greater than 75 cc and
less than or equal to
100 cc444 355 311
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