RESTRICTED
WORLD TRADE G/SG/W/137
12March 1996
ORGANIZATION(96-0869)
Original: English Committee onSafeguards
REPLIES TOQUESTIONS POSED BYJAPAN1
CONCERNING THE NOTIFICATION OFLAWS AND REGULATIONS
OFHUNGARY2UNDER ARTICLE 12.6OFTHE AGREEMENT
Thefollowing communication, dated 29February 1996, hasbeenreceived fromthePermanent
Mission ofHungary.
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Q1. When (approximate date) isthereviewed regulation expected tobeenacted?
A1. Weareunable forthetimebeing toindicate theapproximate datewhen thereviewed regulation
isexpected tobeenacted.
Q2. Please advise major changes reflected intherevised legislation asaresult ofthereview.
A2. Itwould bepremature untiltherevised legislation isenacted toadvise major changes reflected
intherevised legislation, asaresult ofthereview.
Q3. Weunderstand thatHungary concluded theassociation agreement withtheECin1994whereby
thefreetrade arrangement wasintroduced. Areimports fromtheMember States oftheECsubject
tosafeguard measures inthesame manner asimports fromnon-Member States?
A3. Under theEuropean Agreement imports from theMember States oftheECmaybesubject
tosafeguard measures onaselective basisiftheincreased imports andtheirconditions cause orthreaten
tocause serious injury tothedomestic producers ofthelikeordirectly competitive products, orthey
cause orthreaten tocause serious disturbances inanysector oftheeconomy orsuchdifficulties which
mayleadtoserious deterioration oftheeconomic situation oftheregion. Generally, there isaprior
consultation requirement intheframework oftheAssociation Committee anda30-day timeperiod
toagree onasolution. Special rules areapplied tourgent cases.
1G/SG/W/77.
2G/SG/N/1/HUN/2.
./.G/SG/W/137
Page2
Q4. Section 1ofthenotified decree setsoutconditions fortheapplication ofthesafeguard measures.
Oneofthemisincreased imports which threaten tocause injury tothedomestic industry rather than
thethreat ofserious injury asrequired inparagraph 1ofArticle 2oftheAgreement onSafeguards.
Isthisconsistent withtherequirement oftheAgreement onSafeguards?
A4. Weunderstand thatincreased imports mustthreaten tocause serious injury. (Thepresent text
oftheDecree originates from1990andtheabove understanding isbased ontheprovision ofSection 4
ofit).
Q5. IstheAgreement onSafeguards directly applied inHungary withrespect totheprocedures
ofsafeguard measures suchasinvestigations, time-period andprovisional measures?
A5. Bythefactofcommunication oftheratification theAgreement ofSafeguards became obligatory
forHungary.