WORLD TRADE
ORGANIZATIONG/SG/N/7/ECU/1
19 December 2000
(00-5520)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON
SAFEGUARDS BEFORE TAKING A PROVISIONAL SAFEGUARDS
MEASURE REFERRED TO IN ARTICLE 6
ECUADOR
The following communication, dated 29 November 2000, has been received from the
Permanent Mission of Ecuador.
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Mr. Chairman,
Pursuant to Article 12.4 of the Agreement on Safeguards, I hereby notify the adoption of a
provisional safeguard measure by the Government of Ecuador in connection with the investigation
initiated on matches, which was already notified to the WTO by Ecuador (G/SG/N/6/ECU/2).
Provisional safeguard measure
The investigating authority has decided to recommend the application of a provisional
safeguard measure on imports of matches as follows:
1. Specification of the product
Matches (tariff heading 3605.00.00).
2. Proposed provisional measure
The measure recommended is an ad valorem  tariff surcharge of 14 per cent.
3. Proposed date of introduction of the measure
It is expected that the measure will come into effect in early December 2000.
4. Expected duration of the measure
The provisional measure will remain in effect for six months.
5. Bases for making a preliminary determinat ion that the increased imports have caused
or are threatening to cause serious injury and reasons why delay in applying the measure would
cause damage which would be difficult to repair.
The investigating authority has determined that imports of matches are causing serious injury
to the domestic industry as a result of the 133 per cent increase in imports between July 1998 andJune 1999 in comparison with July 1997 to June 1998, as well as the decrease in the variables takenG/SG/N/7/ECU/1
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into account, for example,  the domestic industry, sales, utilization of plant capacity, total demand,
profits, number of employees and productivity.
A comparison of the growth in imports and the levels of domestic production show that, over
a short period, the injury caused to the domestic industry has been serious, making it necessary toadopt immediate measures to prevent damage which it would be difficult to repair.
I am attaching a copy of the Resolution of Ecuador's Foreign Trade and Investment Council
(COMEXI) implementing the aforementioned measure.
[signed]
Roberto Betancourt
Permanent RepresentativeG/SG/N/7/ECU/1
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FOREIGN TRADE AND INVESTMENT COUNCIL
COMEXI
Resolution No. 074
The Foreign Trade and Investment Council
WHEREAS:
The Agreement on Safeguards of the World Trade Organization (WTO) lays down rules for
the application of safeguards, meaning the measures provided in Article XIX of the GATT 1994, and
together with Resolution No. 003 of the COMEXI, published in Official Gazette No. 288 of
1 April 1998, constitute the legal basis which determin es the procedures to be followed in safeguards
investigations;
The Company Fosforera Ecuatoriana S.A., in a communication dated 29 June 1999, requested
the application of a provisional safeguard measure on imports of matches coming under tariff heading
3605.00.00, which were causing injury to the domestic industry;
The initiation of the investigation and the procedure followed throughout were strictly in
accordance with the relevant legal provisions in effect;
The Under-Secretariat for Foreign Trade and Integration of the MICIP, in
Resolution No. 990016 of 28 October 1999, initiated the safeguards investigation into imports of
matches;
In circular note No. DOCI 993082 MICIP, of 5 November 1999, this decision was
communicated to all importers and exporters of matches and they were requested to send in the
relevant forms in order to exercise their right of defence;
Taking into account the request made by the company PYDACO Cia Ltda., of
2 December 1999, an extension of 30 days was authorized for the presentation of information anddocuments contesting the complaint made by the company Fosforera Ecuatoriana S.A.;
The Foreign Trade and Investment Council gave a hearing in plenary session to the
representatives of Fosforera Ecuatoriana S.A. and of the importing company PYDACO Cia Ltda., so
that they could put forward their arguments relating to this case;
On the basis of the information available, th e investigating authority determined that the
imports of matches were causing injury to the domestic injury of like goods, with an increase of
133 per cent in imports between July 1998 and June 1999 compared with the period July 1997 to
June 1998, as well as a decrease in the variables taken into account, for example, domesticproduction, sales, utilization of plant capacity, total demand, profits, number of employees and
productivity;
Article 6 of the WTO Agreement on Safeguards permits the application of provisional
safeguard measures;
By virtue of the powers conferred upon it:G/SG/N/7/ECU/1
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DECIDES:
Article 1. To apply a provisional safeguard measure amounting to an additional 14 per cent on
the tariff for imports of matches under tariff heading 3605.00.00 for a period of six months to prevent
such imports from continuing to cause injury to the domestic industry while the investigation is beingconducted.
Article 2. During the period in which the measure applies, the investigation authority shall
continue the investigatory process until it reaches a definitive determination.
Article 3. In compliance with Article 12 of the WTO Agreement on Safeguards and Article 25
of Resolution No. 003 of the COMEXI, the investigat ing authority shall issue a public notice and shall
notify and communicate the provisional measure to  the WTO Committee on Safeguards and to the
parties concerned.
Article 4. This measure shall be notified by the Ministry for Foreign Trade, Industrialization
and Fisheries to the Ecuadorian Customs Corporation for information and implementation, inconformity with Article 29 of Resolution No. 003 of the COMEXI.
I certify that this Resolution was adopted by the Foreign Trade and Investment Council in a
session held on Tuesday, 14 November 2000.
[Signed]
Milton Cevallos Rodriguez
Under-Secretary for Foreign Trade
and Integration of the MICIP
Secretary of the COMEXI
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