RESTRICTED
WORLD TRADE G/SG/W/60
25October 1995
ORGANIZATION(95-3262)
Original: English Committee onSafeguards
QUESTIONS CONCERNING THE NOTIFICATION
PROVIDED BYKOREA1OFLAWS AND REGULATIONS
UNDER ARTICLE 12.6OFTHE AGREEMENT
Thefollowing communication, dated 18October 1995, hasbeenreceived from theOffice of
theUnited States Trade Representative.
_______________
1. General.
(a) How isthe“administrative agency concerned whotakes charge oftheindustry ”,
referenced inSection 32(1) oftheForeign Trade Actandelsewhere, defined?
(b) Paragraphs 2and3ofsection 32(1) oftheForeign Trade Actrefer todamage toa
domestic industry caused by,respectively, increase oftradeandsupply ofdistribution
services, andimportation ofgoods thatinfringe protected intellectual property rights.
How, ifatall,dothese standards relate totheobligations contained intheAgreement
onSafeguards?
(c) Articles 12and43-9oftheCustoms Acteachsetoutserious injury testsandauthorize
thetaking ofcertain remedial action. What isthelegal relationship between these
provisions? Aretheyseparate bases fortaking action, andifso,howdotheydiffer?
Howdothese provisions relate totheinjury standard contained inArticle 32(1) ofthe
Foreign Trade Act?
2. Imposition ofsafeguard measures.
(a) Which ofthesixtypes ofremedial measures listed insection 34(1) oftheForeign Trade
Actmaybeemployed following afinding ofserious injury inasafeguard proceeding?
(b) Article 71oftheEnforcement Decree provides that,indeciding whatremedial measure
topropose, theTrade Commission shall examine theopinions ofthehead ofthe
administrative agency taking charge oftheindustry, andassociations, partnerships etc.
related totheindustry. Please explain whether theTrade Commission isrequired
toconsider theopinions ofother interested parties, suchasforeign producers and
exporters andKorean importers.
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(c) Please explain thereference inArticle 72(2)1 oftheEnforcement Decree to“Article 47
oftheAct.”
(d) Please explain whatismeant byArticle 72(2)2 oftheEnforcement Decree, andhow
theTrade Commission orother entities oftheKorean Government would implement
orenforce suchameasure.
3. Provisional measures. Does thestandard setforth inthissection 35(1) oftheForeign Trade
Actprovide forafinding thatthere isclear evidence thatincreased imports havecaused or
arethreateningtocauseseriousinjurypriortotheapplicationofaprovisionalsafeguardmeasure,
asrequired byArticle 6oftheAgreement onSafeguards?
4. Extension ofmeasures. Does thestandard setforthinArticle 74oftheEnforcement Decree
forextension ofmeasures include afinding thatthereisevidence thattheindustry isadjusting,
asrequired byArticle 7(2)oftheAgreement onSafeguards?
5. Procedures.
(a) Article 67(1) oftheEnforcement Decree liststhetypes ofpersons thattheTrade
Commission mayappoint toaninvestigation committee inconnection withasafeguard
proceeding. Please confirm whether thecommittee mayinclude private individuals
whoarenotaffiliated withthegovernment. Iftheanswer isyes,please explain how
theTrade Commission assures thatsuchindividuals, ifappointed, donotsuffer from
conflicts ofinterest duetotheirinterests orrelationships withinterested parties. We
areparticularly interested inthereference inparagraph 5to“other persons withawide
range ofknowledge andexperience inindustry, tradeandtheinternational economy. ”
(b) Doesarticle67-2(3)oftheEnforcementDecreeprovidethatahearingwillautomatically
begranted upon request ofanyinterested person? Does aninterested person include
aforeign producer orexporter ofthesubject goods, andanimporter ofthelikeor
directly competitive goods?
(c) Article 67-2(5) oftheEnforcement Decree provides thattheTrade Commission shall
comply withaninterested person ’srequest forinspection ofmaterials submitted by
therequesting person orother interested person “unless there isanyspecial reason ”.
Please explain whatbasis there could befordenial ofaccess tomaterials other than
where thematerials concern business secrets, referenced inArticle 67-4.
(d) Article68(2)providesforterminationofasafeguardproceedingwhereaforeigncountry
hasagreed toreduce exports. Please explain howthisisconsistent withArticle 11(1)
oftheAgreement onSafeguards.
(e) Article 75(1) oftheEnforcement Decree provides thatmeetings oftheTrade
Commission maybeclosed tothepublic ifdeemed necessary toprotect business secrets
or“forthepublic interest. ”Please explain thecircumstances inwhich thelatterphrase
mayapply.
(f) Arethere provisions inKorea ’slawpertaining totherequirement ofArticle 3ofthe
Agreement onSafeguards thattheauthorities publish areport setting forth findings
andreasoned conclusions onallpertinent issues offactandlaw?