RESTRICTED
WORLD TRADE G/SG/W/166
24April 1996
ORGANIZATION(96-1544)
Original: English Committee onSafeguards
QUESTIONS CONCERNING THE NOTIFICATION PROVIDED
BYECUADOR1OFLAWS AND REGULATIONS
UNDER ARTICLE 12.6OFAGREEMENT
Thefollowing communication, dated 17April 1996, hasbeenreceived from thePermanent
Mission oftheKorea.
_______________
1. Application oftheRegional Agreement:
Itisobserved thatthelegislation notified byEcuador doesnotconstitute domestic lawsor
regulations, butrather regional agreements. Could thesafeguard measures stipulated inthese
agreements bedirectly applied inEcuador? Ifso,whatisthelegalbasis forsuchapplication?
Itappears thatthesafeguard measures stipulated inthelegislation areapplied toproducts
originating intheregion. Could thesafeguard measures alsobeapplied inanon-discriminatory
manner toproducts originating inthenon-Member States outside theregion? Ifso,whatis
thelegal basis forguaranteeing non-discriminatory application?
2. Particulars applied Mutatis Mutandis:
Itseems thatEcuadorian regulations relating tosafeguard measures include those notprescribed
inArticle XIXofGATT 94ortheAgreement onSafeguards (e.g., BOPmeasures, measures
toremedy thedisruption caused bycurrency devaluation, andtoremedy theinjury caused by
theimplementation oftheAgreement ’sLiberalization Programme).
Could theparticulars, which arenotstipulated intheprovisions related tosafeguard measures
butarestipulated intheprovisions related totheother measures, beapplied mutatis mutandis
tothesafeguard measures?
Forexample, concerning import-restrictive measures taken forBOP reasons, Article 4of
Resolution No.70states that"...theimporting Stateshallgradually phase down theapplication
ofthesafeguard measures theconditions which justified theiradoption improve".
Could thisapply mutatis mutandis tothesafeguard measures prescribed inArticle XIXof
GATT 94andtheAgreement onSafeguards?
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3. Scope oftheMeasures:
Article 7ofResolution No.70states that"...theimporting Stateshallmaintain thepreferences
andother terms contained intherelevant agreement fortheimport ofaspecified volume or
value oftheproduct towhich safeguard measures apply. Thevolume orvalue shallbespecified
inthecommunication referred totheproceeding Article andshallbereviewed innegotiations
withsupplier States ...".
Article 5.1oftheSafeguards Agreement, however, requires thatquantitative restrictions shall
notreduce thequantity ofimports below thethree-year average "unless clearjustification is
given thatadifferent levelisnecessary toprevent orremedy serious injury".
Could thequantitative restriction stipulated inResolution No.70reduce thevolume ofimports
below theaverage annual levelofimports overthepastthreeyears asaresult ofanagreement
and/or negotiation?
4. Conditions forapplying provisional Safeguard Measures:
Article 79AoftheCartagena Agreement stipulates that"AMember Statemayapply remedial
measure ...when products originating inthesub-region areimported inquantities orunder
conditions thatdisrupt thenational production ofspecific products ...".
Could "disrupt thenational production" beinterpreted asthesame as"cause damage which
itwould bedifficult torepair ..."inArticle 6oftheAgreement onSafeguards?