RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q2/BRA/7
15 May 2000
(00-1982)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.1(b) OF THE AGREEMENT ON
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT
THEREOF CAUSED BY INCREASED IMPORT
NOTIFICATION PURSUANT TO ARTICLE 12.1 (c)
OF THE AGREEMENT ON SAFEGUARDS
Questions posed by the UNITED STATES
Regarding the Notification of BRAZIL1
The following communication, dated 11 May 2000, has been received from the Permanent
Mission of the United States.
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1. We are interested in hearing from the Brazilian delegation how the devaluation of the Real,
amounting to roughly 35 per cent, was taken into account in making its determination to extend the
safeguard measure and in making its decision regarding the safeguard rates to be applied.  Was this
item discussed in the report of the authorities investigating the extension of the safeguard?
2. Please explain why the analysis is based on data for only two time periods, within the initial
safeguard relief period.  Specifically, why was the analysis based on data for only two time periods
within the initial safeguard relief period:  1997 rather than 1996, and 1998 rather than 1999?  We note
that the safeguard level was at its highest, and imports declined the most in 1996.  Given the
importance of the Real devaluation, why did the au thorities not consider 1999 data for imports and
assessment industry conditions?
3. Looking at the value data on imports provided in table 2 of the notification, there is a decline
in imports during the safeguard period, not an increase.  The small increase for 1998 has already been
overtaken by the sharp decrease in imports following the real devaluation.  And even after their slight
rise in 1998, imports remained 35 per cent below their pre-safeguard level in 1995.  Please explain thejustification for the decision to extend a safeguard measure when imports are declining.
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1 G/SG/N/8/BRA/2-G/SG/N/10/BRA/2 & Suppl.1