RESTRICTED
WORLD TRADE G/SG/W/39
18October 1995
ORGANIZATION(95-3151)
Original: English Committee onSafeguards
QUESTIONS CONCERNING THE NOTIFICATION PROVIDED
BYTHE UNITED STATES1OFLAWS AND REGULATIONS
UNDER ARTICLE 12.6OFTHE AGREEMENT
Thefollowing communication, dated 5October 1995, hasbeenreceived fromthePermanent
Mission ofAustralia.
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1. Subparagraph 202(c)(1)(C) setsouttwoeconomic factors tobetaken intoaccount withrespect
todetermining substantial cause. Isitclearthatthefirstfactor (anincrease inimports, actual orrelative)
isanecessary factor forsafeguard action? Arethese twofactors sufficient foranaffirmative finding?
2. IfNAFTA imports have been excluded from safeguard action, forexample, under §312
(page 22),thenaresuchimports alsoexcluded fromconsideration under paragraph 202(c)(1) (pages 4
and5)andconsidered asother factors under subparagraph 202(c)(2)(B)? Ifnot,howcould thatbe
justified under theSafeguards Agreement?
3. Subparagraph 202(c)(4)(C) (page 5)envisages market segmentation forthepurpose ofdefining
domestic industry inthemanner ofArticle 4.1(ii) oftheAnti-Dumping Agreement. There isnosuch
exceptional circumstances provision under theSafeguards Agreement. How would such market
segmentation bejustified under theSafeguards Agreement?
4. Insubparagraph 202(c)(6)(A)(i) (page 6),whatistheapproach taken todetermining "amajor
proportion"?
5. How are"like article" and"directly competitive article" defined?
6. Insubparagraph 202(c)(6)(B) (page 6)would there havetobesignificant under-utilization of
production capacity forthere tobea"significant idling ofproductive facilities"?
7. Areprovisional measures taken under paragraph 202(d)(1) (pages 6,7)limited totariffincreases
asprovided forinArticle 6oftheSafeguards Agreement? (Subparagraphs 202(d)(1)(E) and(F)taken
inconjunction withsubparagraph 202(d)(5)(c)(ii), page9,would seem tosuggest thatthatisonlyto
bethepreferred option).
8. Subparagraph 203(a)(3)(E) (page 13)andparagraph 203(f)(1) (page 16)appear toprovide for
voluntary restraint arrangements. Ifthatisthecase, inwhatcircumstances would theybeconsistent
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withArticle 11.1(b) oftheSafeguards Agreement? Would suchvoluntary restraint arrangements be
theobjective oftheinternational negotiations referred toinsubparagraphs 202(e)(4)(A) and(5)(B)(v)
(page 10)? Ifnot,whatisenvisaged inthose subparagraphs?
9. Subparagraph 203(a)(3)(F) (page 13)allows fortheauctioning ofimport licences. Would this
onlytakeplace where thetariff levels werenotbound? Ifnot,inwhatcircumstances would suchan
additional impost onimports beconsistent withtheobligation under Article 5oftheSafeguards
Agreement toapply safeguard measures onlytotheextent necessary toprevent orremedy serious injury?
10. Paragraph 203(a)(4) (page 14)onlyprovides timeconstraints inrespect ofaction under
Section 202(d)(2)(D). What timeconstraints arethereinrespect ofaction under Section 202(d)(1)(G)
toensure thatprovisional measures arenotinplace formore than200days?
11. Paragraph204(e)(1)wouldappeartoallowdiscriminatorytreatmentintheoperationofsafeguard
measures. Isthiscorrect and,ifso,inwhat circumstances could thatoccur andhowwould itbe
consistent withtheWTO Agreement?
12. InRule§206.5(d) (page 25),does"consumers" include industrial consumers thatmight be
affected byrestraints onimports?