RESTRICTED
WORLD TRADE G/SG/W/93
5December 1995
ORGANIZATION(95-3938)
Original: English Committee onSafeguards
ORAL QUESTIONS POSED ATTHE SECOND SPECIAL MEETING
OFTHE COMMITTEE CONCERNING THE NOTIFICATION
PROVIDED BYTHE UNITED STATES1OFLAWS AND REGULATIONS
UNDER ARTICLE 12.6OFAGREEMENT
Thefollowing communication, dated 23November 1995, hasbeenreceived fromthePermanent
Mission ofJapan.
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1. Section 202(c)(4)(C) -major geographic area
Paragraph 1(c)ofArticle 4oftheAgreement onSafeguards (the"SGA") requires thatthe
"collective output ofthelikeordirectly competitive products constitutes amajor proportion ofthe
totaldomestic production ofthose products." Section 202(c)(4)(c) refers to"production facilities in
sucharea".Theremaybeasignificantdifferencebetween"collectiveoutput"and"productionfacilities".
Aretheyidentical?
2. Section 203(a)(3)(E) -footnote 3oftheSGA
IntheSpecialCommittee,therepresentativeoftheUnitedStatesstatedthatagreementsconcluded
under thesection 203(a)(3)(E) willbeconsistent withtherequirements offootnote 3oftheSGA.
However, footnote 3authorizes theexporting country, bymutual agreement, toadminister animport
quota applied asasafeguard measure and,therefore, themutual agreement canbeconcluded onlyafter
theimport quota isimposed. Ontheother hand, Section 203(a)(3)(E) liststhenegotiation andthe
conclusion ofagreements withforeign countries limiting theexport from foreign countries asoneof
thesafeguard measures equivalent totariffincrease orimposition ofquota and,therefore, theimposition
ofquota isnotaprerequisite forthenegotiation ortheconclusion ofthissortofagreement. Given
that,isitpossible fortheUnited States tojustify whatthePresident maydounder section 203(a)(3)(E)
byreference tofootnote 3oftheSGA?
3. Anti-circumvention (Section 204(b)(2))
Under theprocedures applicable toSection 201,theITCmustmake aninjury finding andmake
recommendations tothePresident onremedies. However, under section 204(b)(2), thePresident has
unchecked authority totakenewmeasures ontheground ofcircumvention. Themeasures thePresident
might takemaybetheoretically more thanwhatisnecessary tocurtail thecircumvention andmaybe
more thanwhatisnecessary toremedy theinjury. Aretheprovisions having theabove-mentioned
possibility consistent withthespirit ofSGA?
1G/SG/N/1/USA/1.