RESTRICTED
WORLD TRADE G/SG/W/46
20October 1995
ORGANIZATION(95-3209)
Original: English Committee onSafeguards
QUESTIONS CONCERNING THE NOTIFICATION PROVIDED
BYTHE UNITED STATES OFLAWS AND REGULATIONS
UNDER ARTICLE 12.6OFTHE AGREEMENT
Thefollowing communication, dated 12October 1995, hasbeenreceived fromthePermanent
Mission ofJapan.
_______________
Thenotificationoflaws,regulationsandadministrativeproceduresrelatingtosafeguardmeasures
submitted bytheUnited States (G/SG/N/1/USA/1) includes onlythefollowing legislation: (1)Sections
201-204 oftheTrade Actof1974, asamended (19U.S.C. sec.2251-2254); (2)Section 330(d) of
theTariff Actof1930, asamended (19U.S.C. sec.1330(d); and(3)Sections 311,312,316,and
317oftheNorth American FreeTrade Agreement Implementation Act(19U.S.C. sec.3371, 3372,
3381, 3381).
Ingeneral, many provisions arereferred tointheseprovisions notified bytheUSGovernment
without anyquotation andthismakes itextremely difficult tounderstand theentire USsafeguard system
correctly. Such provisions should bequoted. Atleastthefollowing provisions should beprovided:
Article 332(g) oftheTariff Actof1930 (G/SG/N/1/USA/1 Page3)
Part1ofTitleIIIoftheNAFTA Implementation Act(G/SG/N/1/USA/1 Page3)
Subtitles AandBofTitleVIIorSection 337ofthe
Tariff Actof1930 (G/SG/N/1/USA/1 Page5)
Section 242(a) oftheTrade Expansion Actof1902 (G/SG/N/1/USA/1 Page12)
Section 152(a) (1)(A)oftheTrade Actof1974 (G/SG/N/1/USA/1 Page14)
Section 129(a) (4)oftheUruguay Round Agreement
Act (G/SG/N/1/USA/1 Page18)
Section 126(a) oftheTrade Actof1974 (G/SG/N/1/USA/1 Page18)
Allprovisions referred toinSection 330(d) ofthe
Tariff Act1930 (e.g.Section 2252, 2436 etc.) (G/SG/N/1/USA/1 Page19)
Part1ofsubchapter IIofchapter 12ofTitle19(?) (G/SG/N/1/USA/1 Page21)
Section 1330(d) of"this" title (G/SG/N/1/USA/1 Page21)
Section 3372(a) of"this" title (G/SG/N/1/USA/1 Page22)
Section 2252 ofthistitle (G/SG/N/1/USA/1 Page23)
Thespecific questions areasfollows:
1. DoestheUSlegislation include theprovision which permits thederogation fromtheprovisions
ofParagraph 2(a)ofArticle 5oftheAgreement onSafeguards (hereinafter referred toas"SG
Agreement")(prorataallocationofquantitativerestriction)inaccordancewithparagraph2(b)ofArticle5
oftheSGAgreement?G/SG/W/46
Page2
2. Canthepublic hearing which isheldunder theprovision ofSection 202(b)(3) hearthecomments
ofinterested parties suchasimporters oftherelevant products notonlyontheadjustment planbut
alsoonother issues suchasthefactual findings ofserious injury orthreat ofserious injury?
3. (a) What constitutes themajor geographic area oftheUnited States setforth in
Sec.202(c)(4)(C)?
(b) Ifaserious injury ofthedomestic industry insuchareaisfound, whatsortofsafeguard
measures canbetaken?
(c) Inparticular, wewould liketoknow whether thesafeguard measure tobetaken under
suchcircumstances islimited tosuchspecific areaunder Sec.404(e)(2).
(d) Where intheSGAgreement doestheUnited States findsupport forenacting asafeguard
measure onthebasis ofaninjury finding based ona"major geographic areaofthe
United States"?
4. AstheUSGovernment isaware, theWTO Members adopted Paragraph 2ofArticle 2to
explicitly include them.f.n. principle intheSGAgreement. Inlightofthisimportant provision, why
hastheUSGovernment retained initslaws, Sec.204(e)(1) (19U.S.C. sec.2254(e)) which provides
explicit authority toignore therequirement ofm.f.n. treatment?
5. Does theUSlaworpractice provide anyguidance withrespect toahierarchy ofsafeguard
measures? Specifically, doestheUSlawencourage theuseoftariffmeasures asopposed toquantitative
restrictions?
6. (a) IsSec.203(a)(3)(E) consistent withtheprovisions ofparagraph 1(b)ofArticle 11
oftheSGAgreement, which prohibit theintroduction andmaintenance ofthevoluntary
export restraints andfurther require thatanyexisting measures tobephased out?
Section 302(a)(3)(E) explicitly authorizes thePresident toenter intoagreements with
foreign countries thatareequivalent tovoluntary export restraints. Howistheprovision
citedabove consistent withArticle 11oftheSGAgreement?
(b) Even ifSec.203(a)(3)(E) isconsistent therewith, when thePresident negotiates and
concludes agreements withforeign countries limiting theexport fromforeign countries
andtheimport intotheUnited States ofsucharticle inaccordance withSec.203(a)(3)(E)
cantheforeign exporters which restrict theirexports inaccordance therewith enjoy
immunity fromcivilandcriminal liability under theUSlegislation suchasanti-trust
laws? (Inthisconnection, seeSec.202(A)(7))
7. Sec.203(a)(3)(F) provides fortheallocation ofimport licences toUSimporters byanauction
system which doesnotnecessarily guarantee theprorataallocation ofanoverall quota among exporting
countries which isprovided forinparagraph 2(a)ofArticle 5oftheSGAgreement. Isthissystem
consistent withthesaidprovisions?
8. InthenotificationmadebytheUSGovernment,wemaynotfindanyprovisionswhichimplement
Article 8oftheSGAgreement setting forth theobligations ofconcessions andothers. CantheUS
government comply withsuchobligations without anyexplicit provisions which allow thegovernment
todoso?Does theUSTR, acting onbehalf ofthePresident, havetheauthority togrant concessions
totrading partners inorder tomaintain substantially equivalent levels ofconcessions withWTO
Members affected byaUSsafeguard measure?G/SG/W/46
Page3
9. What sortofmeasures canthePresident takeinorder toprevent thecircumvention under
Sec.204(b)(2), irrespective ofnon-existence oftheprovision which authorizes them inthe
SGAgreement? What assurances cantheUSGovernment givebywayofensuring thatthePresident
willexercise hisauthority under Sec.204(b)(2) inamanner consistent withtheSGAgreement?
10. (a) Under Article 312(b) oftheNAFTA Implementation Act,whatistheaction fromwhich
thePresident canexclude imports from aNAFTA country?
(b) What istheaction tobetaken under part1ofsub-chapter 12of"this" title? Wecan
notunderstand thiscross-reference duetothelackofthequotation ofsuchprovisions.
11. (a) Aretheproducts fromthemember states toNAFTA subject tothesafeguard measures
inthesame manner astheproducts from non-member states?
(b) IsArticle 802ofNAFTA implemented inthenational lawoftheUnited States? If
so,whydidtheUSGovernment notmake duenotification ofthisarticle?
(c) Under thelawsoftheUnited States, NAFTA countries areafforded special treatment
inthecontext ofsafeguard actions. Specifically, imports fromNAFTA countries may
beexcluded from thecoverage ofsafeguard actions ifcertain conditions aremet. Is
thisdifferential treatment ofNAFTA countries consistent withtheSGAgreement in
general andwithparagraph 2ofArticle 2oftheSGAgreement specifically?