WORLD TRADE
ORGANIZATIONG/SG/N/1/URY/1/Suppl.1
6 April 1999
(99-1347)
Committee on Safeguards Original:  Spanish
NOTIFICATIONS OF LAWS, REGULATIONS AND
ADMINISTRATIVE PROCEDURES RELATING
TO SAFEGUARD MEASURES
URUGUAY
Supplement
The following communication, dated 24 February 1999, has been received from the
Permanent Mission of Uruguay.
_______________
The Permanent Mission of Uruguay to the World Trade Organization presents its
compliments to the WTO Committee on Safeguards and has the honour to notify it that Decree 2/999,
a copy of which is attached, was promulgated on 8 January 1999.  It concerns the Agreement onSafeguards, an integral part of Law No. 16.671, which sets out the Uruguay Round Agreements and
was notified to the WTO at the appropriate time.
The purpose of promulgating the Decree is to ensure effective implementation of the rules
contained in Law No. 16.671 concerning the Agreement on Safeguards.
The Permanent Mission of Uruguay reiterates to the WTO Committee on Safeguards the
assurances of its highest consideration.G/SG/N/1/U RY/1/Suppl.1
Page 2
Decree 2/999
REGULATIONS FOR EFFECTIVE IMPLEMENTATION OF THE AGREEMENT
ON SAFEGUARDS, SIGNED IN THE URUGUAY ROUND OF
MULTILATERAL TRADE NEGOTIATIONS
Ministry of the Economy and Finance
Ministry of External Relations
Ministry of Industry, Energy and Mining
Ministry of Livestock, Agriculture and Fisheries
Montevideo, 8 January 1999
HAVING REGARD TO Law No. 16.671 of 13 De cember 1994 approving the Agreements
signed in the Uruguay Round of multilateral trade negotiations, contained in the Final Act signed in
Marrakesh on 15 April 1994.
CONSIDERING:  I.  That the Agreements  adopted in the above-mentioned round of
negotiations include the "Agreement on Safeguards", which establishes the regime for Members of the
World Trade Organization for the purposes of application of the measures in question.
II. That in keeping with the commitments undertaken by the States Parties to Mercosur,
the "Regime of Final Conformity with the Cust oms Union", created by Decision No. 5/94 of the
Council of the Common Market and still operative, constitutes the instrument replacing the safeguards
regime in intra-Mercosur trade.
III. That the purpose of the regime in question is to facilitate the processes of
reconversion and structural change of specific production sectors of the States Parties to Mercosur, so
that they can achieve better conditions of competitiveness, thereby adjusting to greater intra-regional
competition.
WHEREAS:  I.  It is appropriate to issue regulations for effective implementation of the
"Agreement on Safeguards" referred to in item I above.
II. That the implementation of the agreement concerning restraint measures on imports
under a regime based on gradually opening up markets calls for a strict assessment of its premises and
an appropriate evaluation of the measure to be adopted in the light of considerations of public interest
and overall economic policy.
III. That the implementation of the provisions  referred to in item I should comply with
the commitments undertaken by Uruguay in the context of the process of regional integration.
ACCORDINGLY
THE PRESIDENT OF THE REPUBLIC
DECREESG/SG/N/1/U RY/1/Suppl.1
Page 3
CHAPTER I
Scope and Conditions of Implementation
Article 1.  A safeguard measure may be applied to a product when it has been determined, as
a result of an investigation, that such product is being imported in such increased quantities, absoluteor relative to domestic production, and under such conditions as to cause or threaten to cause serious
injury to the domestic industry that produces like or directly competitive products.
Safeguard measures shall be applied to a product being imported irrespective of its source,
with the exception regarding textile products referred to in Chapter VII.
Article 2.  For the purpose of this Decree, safeguard measures are understood to mean
measures under Article XIX of the General Agreement on Tariffs and Trade – GATT 1994
(Emergency Action on Imports of Particular Products), in conformity with the interpretation in the
Agreement on Safeguards, of the World Trade Organization (WTO).
CHAPTER II
Determination of Serious Injury or Threat Thereof
Article 3.  For the purposes of this Decree:
(a) "serious injury" is understood to mean a significant overall impairment in the position
of a domestic industry;
(b) "serious injury" is understood to mean a serious injury that is clearly imminent.  A
determination of the existence of a threat of serious injury shall be based on facts andnot merely on allegation, conjecture or remote possibility;
(c) "domestic industry" is understood to mean the producers as a whole of the like or
directly competitive products operating within Uruguay, or those whose collective
output of the like or directly competitive products constitutes a major proportion ofthe total domestic production of those products.
Article 4.  In the investigation to determine whether increased imports have caused or are
threatening to cause serious injury to a domestic industry, an evaluation shall be made of relevant
factors of an objective and quantifiable nature having a  bearing on the situation of the domestic
industry, in particular the following:
(a) The rate and amount of the increase in imports of the product concerned in absolute
and relative terms;
(b) the share of the domestic market taken by increased imports;
(c) changes in the level of sales, production, productivity, capacity utilisation, profits and
losses, and employment.
Article 5.  For the purpose of the investigation referred to in Article 4, other factors may also
be examined, such as the prices of the imports, especially to determine if there was significantundercutting as compared with the price of the like product in Uruguay, and the trend in the domesticG/SG/N/1/U RY/1/Suppl.1
Page 4
prices of like or directly competitive products in order to determine whether there was a fall or
whether no increases in price which would otherwise have occurred.
Article 6.  In the case of an allegation of a threat of serious injury, an examination shall also
be made, in addition to the above-mentioned factors, as to whether it is foreseeable that a particular
situation is likely to be actually transformed into serious injury.  To this end, account may be taken offactors such as the rate of increase in exports to Uruguay and the export capacity in the country of
origin or export, existing or potential, in the near future, and the likelihood that such capacity will be
used to export to Uruguay.
Article 7.  The determination of the existence of serious injury or threat of serious injury,
referred to in Article 4, shall be made on the basis of objective evidence demonstrating the existence
of a causal link between increased imports of the product concerned and serious injury or threatthereof.  When factors other than increased imports are causing injury to the domestic industry in
question, such injury shall not be attributed to increased imports.
CHAPTER III
Investigation Procedure
Section I
Competent Bodies
Article 8.  The Executive, with the Ministry of the Economy and Finance, the Ministry of
External Relations, the Ministry of Industry, En ergy and Mining and the Ministry of Livestock,
Agriculture and Fisheries shall issue resolutions concerning the application of provisional or final
safeguard measures and for the review, revocation or extension thereof.
Article 9.  The Ministry of the Economy and Finance, the Ministry of External Relations, the
Ministry of Industry, Energy and Mining and the Mi nistry of Livestock, Agriculture and Fisheries
shall issue the corresponding interministerial re solutions pertaining to the initiation of the
investigation, rejection of the request for application of provisional safeguard measures, closure of theinvestigation at the request of the applicant, the initiation of the procedure for review and extension of
safeguard measures and the closure of procedures  without any application of safeguard measures.
Article 10.  An Implementation Commission is  hereby established, consisting of a
representative of the Ministry of the Economy and Finance, who shall head the Commission, and one
representative each of the Ministry of External Relations, the Ministry of Livestock, Agriculture and
Fisheries, the Ministry of Industry, Energy and Mi ning and the Planning and Budget Office, whose
task shall be to implement the regime.
In furtherance of this task, it shall examine and compulsorily rule on the various aspects
pertaining to a decision of conformity with the provisions of the preceding articles, designating the
body to conduct the investigation provided for in this Decree and it shall supervise all matterspertaining to the investigation, without prejudice to participating therein when it deems such a course
appropriate.
The Commission shall form part of the Minist ry of the Economy and Finance, which shall
provide the requisite resources for it to function properly.
Article 11.  The investigation provided for in this Decree may be conducted by the National
Directorate of Industry (DNI) of the Ministry of Industry, Energy and Mining, the Agricultural
Programming and Policy Office (OPYPA), of the Ministry of Livestock, Agriculture and Fisheries,G/SG/N/1/U RY/1/Suppl.1
Page 5
the Trade Policy Unit of the Ministry of the Economy and Finance, in coordination with the Foreign
Trade Unit of the Directorate General of Trade of the Ministry, or any other body of the
Administration to which the Implementation Commission assigns the task.
The investigating body shall comply with the provisions and rules issues issued by the
Implementation Commission, to which it shall report at all times on all matters relating to theinvestigation.
Section II
Application
Article 12.  An application to implement a safeguard measure shall be submitted by
enterprises or the bodies representing them, in writing, with two copies, to the Implementation
Commission.
Article 13.  The application referred to in the preceding article shall be accompanied by
sufficient evidence of increased imports, serious injury or threat of serious injury and the causal linkbetween both circumstances, and a plan of adjustment whereby the domestic industry will be more
competitive with regard to imports.
The application shall contain the following:
(a) Applicant's identity and domicile, stating the place at which notifications are to be
made in the city of Montevideo;
(b) amount and value of domestic production of the like or directly competitive product;
(c) full description of the product for which the adoption of measures is requested, the
names of the country or countries of origin or export, the identity of each known
foreign exporter or producer and a list of the known importers importing the product
concerned;
(d) data on the trend in the volume of imports of the product in question, the effect of
such imports on the prices of the like or directly competitive product on the domestic
market and the consequent impact of imports on the domestic industry, demonstrated
by the factors and relevant indices affecting the state of the domestic industry, as
enumerated in Article 4;
(e) the proposed adjustment plan to make the domestic industry more competitive in
relation to imports.  If the application contains any confidential information, the
provisions of Articles 25 et seq . shall apply.
Article 14.  The Implementation Commission shall proceed to examine the admissibility of
the application in order to determine whether it has been properly prepared or, otherwise, isunacceptable.  To this end, it may call for  any advice it deems relevant.
An application is properly prepared when all the requirements of the preceding article have
been satisfied and the facts set out in the applicat ion have been checked and verified by preliminary,
summary examination.
The Implementation Commission may, once only, request the applicant to provide additional
information and shall establish the time-limit for submitting it.G/SG/N/1/U RY/1/Suppl.1
Page 6
If the application is deemed unacceptable, the applicant shall be notified accordingly and the
proceedings shall be terminated.
Section III
Initiation
Article 15.  If the application is deemed to have been properly prepared, the Implementation
Commission, after calling for any advice it deems appropriate, shall issue an opinion as to whether it
is appropriate to initiate the investigation and the opinion shall contain a preliminary determination
concerning the existence of serious injury or threat thereof to domestic industry caused by the
increased imports of the product in question, as well as a preliminary analysis of the adjustment plan
submitted by the applicant.
Such opinion shall be issued within a period of 50 (fifty) days from the date of submission of
the application.
Article 16.  The interministerial resolution, whether affirmative or negative, regarding the
initiation of investigation shall be issued within a period of 30 (thirty) days from the date of the
Implementation Commission's opinion, as referred to in the preceding article.
Article 17.  An interministerial resolution orderi ng the initiation of the investigation, which
shall be issued after evaluation of the Implementation Commission's opinion and on the basis ofconsiderations of public interest and general economic policy, shall contain a summary of the
elements on which the initiation decision was based.
The resolution shall be published in the Official Gazette and notified to the applicant;  a
resolution dismissing the application for initiation sh all be notified solely to the applicant and the
proceedings shall be terminated.
Article 18.  A resolution ordering the invitation of the investigation shall establish:(a) The period within which the interested parties may submit all written evidence to the
investigating body, which shall be establishe d in the resolution, so that the evidence
may be taken into account in the investigation.  Within that period they shall also
have the opportunity to submit their views, inter alia , as to whether or not the
application of a safeguard measure would be in the public interest, and to respond to
communications from other parties;
(b) the period within which the interested parties may apply to the investigating body to
hold hearings, in accordance with Articles 22 and 30 of this Decree.
Article 19.  The interministerial resolution ordering the initiation of the investigation, together
with the relevant documents, shall be notified through the Ministry of External Relations to the
Committee on Safeguards of the World Trade Organization (WTO) within 15 (fifteen) days followingadoption.
Article 20.  The investigation procedure shall not impede customs clearance of the product
under investigation.G/SG/N/1/U RY/1/Suppl.1
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Section IV
Investigation
Article 21.  When the initiation of the investigation has been ordered, the investigating body
may request the known interested parties, through questionnaires, to provide any information deemednecessary, granting them for such purpose a period in keeping with the nature of the information
requested, which period may be extended upon a substantiated request.  Other sources of information
may also be consulted and inspections may be made in situ .
Article 22.  The investigating body shall hear interested parties which demonstrate that they
may actually be affected by the result of the investigation and have special reasons to be heard,
provided they have made a written application for hearings to be held, within the period establishedfor that purpose in the resolution referred to in Article 18.
Article 23.  Interested parties in the investigation shall accredit their legal representatives in
writing to the investigating body.
Article 24.  During the investigation, the Im plementation Commission, calling for any advice
it deems appropriate, shall evaluate the action provided for in the adjustment plan submitted by the
domestic industry, so as to determine whether the plan is suitable for making the domestic industry
more competitive with regard to imports.
Article 25.  Information which is by nature confidential or which the parties provide on a
confidential basis shall, upon cause being shown, be  treated as such.  Such information shall not be
disclosed without the permission of the party submitting it.  Information classed as confidential shall
not be incorporated in the file and shall be known only to the participating bodies.
Article 26. Interested parties providing confidential information shall furnish non-confidential
summaries thereof.  Such summaries shall be in su fficient detail to permit a reasonable understanding
of the substantive content of the information submitted in confidence.  In exceptional circumstances,
such parties may indicate that the information in question cannot be summarized and shall give the
reasons why it is not possible.
Article 27.  When a request for confidentiality is not warranted, if the party that has furnished
it is unwilling to make the information public or to authorize its disclosure in generalized or summary
form, the information may be disregarded, unless it can be demonstrated satisfactorily that the
information is correct.
Article 28.  In the course of the investigation, efforts shall be made to verify the accuracy of
the information furnished by the interested parties.
Article 29.  Where possible and deemed necessary, investigations may be conducted in the
territory of other countries, provided the interested firms agree, the government of the country
concerned is notified and does not object to the investigation.
Where deemed necessary, investigations may also be conducted in the firms involved that are
established in national territory, provided such firms give their permission.
Without prejudice to the provisions on the protection of confidential information, the results
of such investigations shall be incorporated in the proceedings.
Article 30.  During the investigation all interested parties shall have an opportunity to defend
their interests, for which purpose they shall be afford ed the opportunity to meet with other parties withG/SG/N/1/U RY/1/Suppl.1
Page 8
adverse interests, in order for them to present th eir arguments, provided that written application is
made to hold hearings within the period established for that purpose in the interministerial resolution
referred to in Article 18.
The party requesting a hearing shall, together with the request, provide a list of the matters to
be considered therein.
Article 31.  The interested parties shall formally indicate at least 5 (five) days in advance  the
legal representatives who will be attending the hearing referred to in the preceding article and shall
furnish in writing any arguments to be made at the hearing, at least 10 (ten) days in advance.
The interested parties may also, upon cause being shown, orally submit other information in
the course of the hearing.
Account shall only be taken of information presented orally if it is reproduced in writing and
submitted for incorporation in the proceedings within a period of 10 (ten) days following the hearing.
In the course of the hearing procedure, the co nfidential nature of the information shall be
preserved.
Article 32.  Before the Implementation Commission rules on the existence of serious injury or
threat thereof to the domestic industry from increased imports of the product in question, as well as
the viability of the adjustment plan for the domestic industry, the investigating body shall convene ahearing to inform the interested parties involved in the procedure of the essential facts that will be
taken into account in the ruling, and such interested parties shall be granted a period of
15 (fifteen) days to make its final arguments.
Article 33.  After expiry of the period specified in the preceding article, the procedure shall be
regarded as completed.  Information received afte rwards shall not be considered for the purposes of
the ruling by the Implementation Commission.
Article 34.  The investigation shall be completed within 9 (nine) months following the
initiation, and may be extended for 2 (two) months in exceptional cases.
When provisional safeguard measures have been applied, the maximum period for the
investigation shall be 200 (two hundred) days.
Article 35.  The Implementation Commission shall rule on the determination of the existence
of serious injury or threat thereof to the domestic industry caused by the increased imports of the
product in question, as well as the viability of the adjustment plan for the domestic industry and theadequacy of the proposed action for the planned objectives within a period of 30 (thirty) days from the
date of completion of the procedures.
Article 36.  If it is found that the conditions specified in the preceding article do not apply, the
investigation shall be terminated without the adoption of safeguard measures, under aninterministerial resolution to be adopted within a period of 15 (fifteen) days from the date following
the date of the opinion of the Implementation Commission referred to in the preceding article, and the
provisions of Article 39,  second paragraph, and Articles 40 and 41 shall apply where relevant.G/SG/N/1/U RY/1/Suppl.1
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Section V
Consultations
Article 37.  The Executive, after the application of a safeguard measure and within a period of
10 (ten) days following the date of the ruling by the Implementation Commission referred to in
Article 35, shall invite the governments of the countries having a substantial interest as exporters of
the product in question to hold consultations for the purpose,  inter alia, of reviewing the information
provided, exchanging views on the measure to be adopted and reaching an understanding on ways to
achieve the objective of maintaining an equivalent level of concessions of rights and obligations under
the terms of  GATT 1994, in accordance with the provisions of Article 69.
The period of consultations may not last more than 60 (sixty) days from the issue of the
invitations referred to in the preceding paragraph.
Article 38.  The Implementation Commission shall designate the body responsible for
co-ordinating the consultations procedure, issuin g any instructions it deems appropriate for that
purpose.
When the consultations have been completed, the body in question shall have a period of 10
(ten) days to transmit to the Implementation Commission a report on the results.
Within a period of 10 (ten) days following receipt of the report referred to in the preceding
paragraph, the Implementation Commission shall issue an opinion on whether or not it is appropriate
to adopt safeguard measures.
Section VI
Application of Safeguard Measures
Article 39.  The investigation may conclude with the application of safeguard measures when
the Executive, on the basis of information resulting from the procedures referred to in the precedingarticles, reaches a final determination of increased imports which cause or threaten to cause injury to
the domestic industry and the viability of the adjustment plan submitted by the industry.
The resolution of the Executive containing the decision on the adoption of a safeguard
measure shall be adopted within a period of 15 (fifteen) days following the date of issue of the
opinion of the Implementation Commission referred to in the preceding article and shall contain the
substantiated findings and conclusions reached on relevant issues of fact and law taken into account,including a detailed analysis of the case under investigation and a demonstration of the relevance of
the factors reviewed.
Article 40.  The mandatory publication in the Official Gazette of the resolution of the
Executive ruling on the application of safeguard measures shall be sufficient notification, withoutprejudice to the communication to the interested parties appearing in the investigation.
Article 41.  The resolution of the Executive referred to in the previous article, together with
the relevant documents, shall be notified within a period of 15 (fifteen) days of adoption to the
Committee on Safeguards of the World Trade Organization (WTO), through the Ministry of ExternalRelations.
Article 42.  The adoption of safeguard measures shall be decided to the extent necessary to
prevent or remedy the serious injury and to facilitate adjustment of the domestic industry.G/SG/N/1/U RY/1/Suppl.1
Page 10
Article 43.  Safeguard measures shall be applied:
I. As an increase in import duties, additional to the Common External Tariff, in the form
of:
(a) ad valorem  duties;
(b) specific duties;  or(c) a combination of both;  or
II. In the form of quantitative restrictions
If a quantitative restriction is used, such a measure shall not reduce the quantity of imports
below the level of a recent period which shall be the average of imports in the last three representative
years for which statistics are available, unless clear justification is given that a different level is
necessary to prevent or remedy serious injury.
Article 44.  In cases in which a quota is allocated among supplying countries, the Executive,
through the Implementation Commission – which may for such purposes request the collaboration of
the body it deems appropriate – may seek agreement with respect to the allocation of the quota with
the governments of countries having a substantial interest in supplying the product concerned.  If sucha method is not reasonably practicable, the Executive, after advice from the Implementation
Commission, shall allot to countries having a substantial interest in supplying the product quotas
based on the relative share of each one, in terms of value or quantity, of imports of the product during
a previous representative period, account being taken of any special factors which may have affected
or may be affecting the trade in the product.
Article 45.  The Executive may, after advice from the Implementation Commission, adopt
other criteria for the allocation of quotas different from those established in the preceding article in
cases of a determination of serious injury but not of threat of serious injury, provided that
consultations are held with the governments of the countries concerned, in accordance with theprovisions of Article 37, under the auspices of the WTO Committee on Safeguards, and it is
demonstrated that imports from certain countries have increased in disproportionate percentage in
relation to the total increase of imports of the product concerned in the representative period.
The reasons for the departure from the provisions of the preceding article shall be justified
and the conditions in which the new criteria apply shall be equitable to all suppliers of the product
concerned.  The duration of any such measure shall not be extended beyond the initial period offour years specified in Article 46.
Section VII
Duration and Review of Safeguard Measures
Article 46.  Safeguard measures shall be applied only for such period of time as may be
necessary to prevent or remedy serious injury and to facilitate adjustment of the domestic industry.
The period shall not exceed four years, unless it is extended pursuant to the following articles.
Article 47.  The Executive may extend the period of application of safeguard measures when
it has determined, in accordance with the criteria and procedures established in Chapters I and II and
in Sections II to IV of Chapter III, that the safeguard measure continues to be necessary to prevent or
remedy serious injury and there is sufficient evidence that the industry affected is readjusting.G/SG/N/1/U RY/1/Suppl.1
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Article 48.  The Executive, before ordering an extension of the safeguard measure and within
a period of 10 (ten) days following the date of the ruling by the Implementation Commission, shall
invite the governments of countries having a substantial interest as exporters of the product concerned
to hold consultations for the purpose, inter alia , of reviewing the information provided, exchanging
views on the measure to be adopted and reaching an understanding on ways to achieve the objectiveof maintaining an equivalent level of concessions of rights and obligations under the terms of
GATT 1994, in accordance with the provisions of Article 69.
The period for consultations may not last more than 60 (sixty) days from the issue of the
invitations referred to in the preceding paragraphs.
Article 49. The Implementation Commission shall designate the body responsible for
coordinating the consultations procedure, issuing any instructions it deems appropriate for that
purpose.
When the consultations have been completed, the body in question shall have a period of
10 (ten) days to transmit to the Implementation Commission a report on the results.
Within a period of 10 (ten) days following receipt of the report referred to in the preceding
paragraph, the Implementation Commission shall issue an opinion on the advisability of extending the
safeguard measure.
Article 50.  The Executive, taking account of the results of the findings and the opinion of the
Implementation Commission, shall decide on an extension of the safeguard measure in a resolution to
be issued within a period of 15 (fifteen) days from the date of the opinion.
Article 51.  The resolution of the Executive ordering an extension of the safeguard measure
shall set out the substantiated findings and conclusions reached on relevant issues of fact and law
taken into account, including a detailed analysis of the case under investigation and a demonstration
of the relevance of the factors reviewed.
Article 52.  The mandatory publication in the Official Gazette of the resolution of the
Executive ruling on an extension of safeguard measures shall be sufficient notice, without prejudice to
the communication to the interested parties appearing in the investigation.
Article 53.  The resolution of the Executive referred to in the preceding article, together with
the relevant documents, shall be notified within a period of 15 (fifteen) days of adoption to the
Committee on Safeguards of the World Trade Organization (WTO), through the Ministry of External
Relations.
Article 54.  The total period of application of a safeguard measure, including the period of
application of any provisional measure, the period  of initial application and any extension thereof
shall not exceed eight years.
Article 55.  In order to facilitate adjustment of the domestic industry when the expected
duration of a safeguard measure as notified under the provisions of Article 40 is over one year, the
measure shall be progressively liberalized at regular intervals during the period of application.  If the
duration of the measure exceeds three years, the Implementation Commission, not later than the
mid-term of the measure, shall review with any advice it deems relevant the concrete effects producedand, where appropriate, the Executive, with the advice of the Commission, shall withdraw the
measure or increase the pace of liberalization.  Measures extended under Article 47 shall not be more
restrictive than they were at the end of the initial period and should continue to be liberalized.G/SG/N/1/U RY/1/Suppl.1
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Article 56.  Whenever the Executive, after advice from the Implementation Commission,
finds that the efforts in the proposed adjustment of the domestic industry are insufficient or unsuitable
or that changes have occurred in the situation that created the application of the safeguard measure,
may revoke the measure or increase the pace of liberalization.
Article 57.  No safeguard measure shall be applied again to a product which has been subject
to such a measure, for a period of time equal to half that in which such measure had been previously
applied, provided that the period of non-application is at least two years.
Article 58.  Notwithstanding the provision of the preceding article, a safeguard measure with
a duration of one hundred and eighty days or less may be applied again to the import of a product if:
(a) At least 1 (one) year has elapsed since the date of the introduction of a safeguard
measure on the import of that product;  and
(b) such a safeguard measure has not been applied on the same product more than twice
in the 5 (five)-year period immediately preceding the date of introduction of the
measure.
Section VIII
Provisional Safeguard Measures
Article 59.  In critical circumstances where delay would cause injury which it would be
difficult to repair, the Executive may take a provisional safeguard measure pursuant to a preliminary
determination that there is clear evidence that increased imports have caused or are threatening to
cause serious injury to the domestic industry.
Article 60.  Where the applicant has requested the adoption of a provisional safeguard
measure, the Implementation Commission shall, in the opinion referred to in Article 15, also report on
critical circumstance requiring an immediate measure.
If the information on the circumstances for adopting provisional safeguard measures is not
substantiated, the application shall be rejected in an interministerial resolution, which shall be adopted
within 15 (fifteen) days following the date of i ssue of the opinion referred to in the preceding
paragraph and the applicant shall be notified.
Article 61.  The resolution of the Executive ordering the application of a provisional measure
shall contain a summary concerning the preliminary determination of serious injury or threat of
serious injury to the domestic industry and the causal link between the increased imports and theserious injury or threat of serious injury, as well as the existence of critical circumstances.
Article 62.  The resolution of the Executive concerning the adoption of a provisional
safeguard measure shall be adopted within a period of 15 (fifteen) days from the date of issue of the
opinion referred to in Article 60 and shall be notified to the applicant and published in the OfficialGazette.
Article 63.  The Executive, immediately after the provisional safety measure has been
applied, shall invite the governments of the countries having a substantial interest as exporters of the
product concerned to hold consultations.
Article 64.  The Implementation Commission shall designate the body responsible for
coordinating the consultations procedure, issuing any instructions it deems appropriate for that
purpose.G/SG/N/1/U RY/1/Suppl.1
Page 13
When the consultations have been completed, the body in question shall have a period of
10 (ten) days to transmit to the Implementation Commission a report on the result, in order for the
Commission to advise the Executive.
The Implementation Commission shall transmit an opinion to the Executive within a period of
10 (ten) days from the date of receipt of the report referred to in the preceding paragraph.
Article 65.  The duration of the provisional measures shall not exceed 200 (two hundred)
days, during which period the pertinent provisions of this Decree concerning the investigation,
notifications and consultations shall be met.
Article 66.  Provisional safeguard measures shall take the form of an increase in import
duties, additional to the Common External Tariff, as:
(a) ad valorem  duties;
(b) specific duties;  or
(c) a combination of both.
The ad valorem  rates shall be applied to the customs value of the good, calculated in
accordance with the relevant legislation.  The specific rates shall be fixed in United States dollars and
converted into Uruguayan currency in accordance with the relevant legislation.
Article 67.  If, on completion of the investigation, it is not determined that the increased
imports cause or threaten to cause serious danger, the amount levied under the provisional measures
shall be promptly refunded.
Article 68.  The duration of provisional safeguard measures shall be counted as a part of the
initial period and any extension referred to in Articles 47 et seq . of this Decree.
CHAPTER IV
Level of Concessions and other Ob ligations of Uruguay under GATT 1994
Article 69.  When safeguard measures are adopted or the duration thereof is extended, efforts
shall be made to maintain a substantially equivalent level of concessions and other obligations to that
existing under the General Agreement on Tariffs and Trade 1994.  To achieve this objective,
agreements may be reached on any adequate means of trade compensation for the adverse effects of
the safeguard measure on trade.
Article 70.  When it is decided to introduce a safeguard measure it shall be borne in mind that,
if no agreement is reached on adequate means of trade compensation in the consultations under
Article 37 of this Decree, then the affected exporting countries may, in accordance of the terms of the
WTO Agreement on Safeguards, suspend the application, to Uruguay's trade, of substantiallyequivalent concessions or other obligations under GATT 1994, the suspension of which the WTO
Council for Trade in Goods does not disapprove.  The right of suspension of substantially equivalent
concessions and other obligations referred to here shall not be exercised for the first three years that a
safeguard measure is in effect, provided that the measure has been taken as a result of an absolute
increase in imports and it conforms to the provisions of the WTO Agreement on Safeguards.G/SG/N/1/U RY/1/Suppl.1
Page 14
CHAPTER V
Differential Treatment for Developing Countries
Article 71.  Safeguard measures shall not be applied against a product originating in a
developing country as long as its share of im ports of the product concerned in Uruguay does not
exceed 3 per cent  (three per cent), provided that developing countries with less than 3 per cent (three
per cent) import share collectively account for not more than 9 per cent (nine per cent) of total imports
of the product concerned.
CHAPTER VI
Notifications
Article 72.  When the notifications referred to in this Decree are made to the WTO Committee
on Safeguards, the Committee shall be provided with all pertinent information, which shall include
evidence of serious injury or threat thereof caused by increased imports, a precise description of the
product involved and the proposed date of introduction, the expected duration and the timetable forprogressive liberalization.  In the case of an extension of a measure, evidence that the industry is
adjusting should also be provided.
Article 73.  The provisions of this Decree concerning notification shall not require the
disclosure of confidential information which would impede enforcement of the legal provisions andregulations on the matter or otherwise be contrary  to the public interest or would prejudice the
legitimate commercial interests of public or private enterprises.
CHAPTER VII
Transitional Provisions concerning Textile Products
Article 74.  During the transition period for the integration of the textile and clothing sector
established in the Agreement on Textiles and Clothing of GATT 1994, the safeguard provided for in
Article 6 of that Agreement may be applied to  products which have not been incorporated by
Uruguay  in GATT 1994.
Article 75.  A safeguard measure may be applied under this Chapter if the Executive has
determined, in accordance with the investigation procedure established in Chapter III, applicable as
appropriate, that total imports of a particular product have increased in such quantities as to cause
serious injury or threat thereof to the domestic industry producing like and/or directly competitive
products.
For the purpose of the application of a safeguard measure, it shall be determined whether the
serious injury or threat thereof is caused by the increased imports and not by such other factors as
technological changes or changes in consumer preference.
Article 76.  For the purpose of determining whether the increased imports have caused or
threaten to cause serious injury, an assessment shall be made of the effect of the imports on the state
of the particular industry, as reflected in changes in such relevant economic variables as output,
productivity, utilisation of capacity, inventories, market share, exports, wages, employment, domestic
prices, profits and investment.  Nevertheless, none of these factors, either alone or combined withothers, can necessarily give decisive guidance.
Article 77.  A safeguard measure applied under this Chapter shall be applied on a country-by-
country basis.G/SG/N/1/U RY/1/Suppl.1
Page 15
The determination of the country or countries to which the serious injury or threat thereof is
attributed shall be made on the basis of a sharp and substantial increase in imports, actual or
imminent, from such a country or countries individually as compared with imports from other
sources, market share and import and domestic prices at a comparable stage of commercial
transaction.  Nevertheless, none of these factors, either alone or combined with others, can necessarily
give decisive guidance.
An imminent increase in imports shall be quantifiable and shall not be determined to exist on
the basis of allegation, conjecture or mere possibility arising, for example, from the existence of
production capacity in the exporting country.
Article 78.  The period of validity of a determinat ion of serious injury or threat thereof, for the
purpose of adopting safeguard measures, shall not exceed 90 (ninety) days from the date of the initialnotification as set forth in Article 79.
Article 79.  When the Executive proposes to adopt a safeguard measure under this Chapter it
shall afford adequate opportunity to the government s that might be affected by the measure to hold
consultations before the measure is applied.
The request for consultations shall be accompanied by specific and relevant factual
information, as up-to-date as possible, particularly in regard to:
(a) The factors, referred to in Article 76, on which the determination of serious injury or
threat thereof was based;  and
(b) the factors, referred to in Article 77, on the basis of which the Government of
Uruguay intends to apply the measure with respect to the country or countries
concerned.
The information accompanying the request for consultations shall relate as closely as possible
to identifiable segments of production and to the reference period established in Article 82.  Such
information shall also indicate the specific level at  which imports of the product in question from the
country or countries concerned are proposed to be restrained;  such levels shall not be lower than
stipulated in Article 82.
Article 80.  The request for consultations referred to in the preceding article, including the
information referred to in paragraphs (a) and (b) of that article and the proposed level of restraint,
shall be communicated to the governments of the countries affected by the measures and to the
Chairman of the Textiles Monitoring Body, through the Ministry of External Relations.
Article 81.  The countries concerned shall respond promptly to the above-mentioned request
for consultations, which shall be held without delay and shall be completed within 60 (sixty) days of
the date on which the request was received.
Article 82.  If, in the consultations, there is an understanding that the situation calls for
restraint on the exports of the particular product from the country or countries concerned, such
restraint shall not be lower than the actual level of exports or imports from the country concerned
during the 12 (twelve) month period terminating 2 (two) months preceding the month in which the
request for consultations was made.
Article 83.  Details of the agreed restraint measure shall be communicated to the Textiles
Monitoring Body within 60 (sixty) days from the date of conclusion of the agreement.  The body in
question shall determine whether the agreement is consistent with the provisions of the Agreement on
Textiles and Clothing of GATT 1994.G/SG/N/1/U RY/1/Suppl.1
Page 16
Article 84.  If, after the expiry of the period of 60 (sixty) days from the date of
communication of the request for consultations there has been no agreement between the countries
concerned, Uruguay may apply the restraint by date of import or date of export, in accordance with
the provisions of this Decree, within 30 (thirt y) days following the 60 (sixty) day period for
consultations and refer the matter to the Textiles Monitoring Body.
Article 85.  In unusual and critical circumstances, where delay would cause injury that  would
be difficult to repair, the measures provided for in Article 84 of this Decree may be adopted
provisionally, on condition that the request for consultations and notification to the Textiles
Monitoring Body shall be effected within 5 (five) working days of adoption.
In the case that consultations do not produce agreement, the Textiles Monitoring Body shall
be notified at the conclusion, of the consultations, within a maximum period of 60 (sixty) days from
the date of the application of the measure.
In the case that consultations do produce agreement, Uruguay shall notify the Textiles
Monitoring Body upon conclusion, within a maximum pe riod of 90 (ninety) days from the date of the
application of the measure.
Article 86.  Safeguard measures adopted under this Chapter may remain in force for up to
three years without extension or until the product is integrated into GATT 1994, whichever comes
first.
Article 87.  Should the restraint measure remain in force for a period exceeding one year, the
levels of all subsequent years shall be the level specified for the first year increased by a growth rate
of not less than 6 per cent (six per cent) per annum, unless otherwise justified to the Textiles
Monitoring Body.
The restraint level for the product concerned may be exceeded in any of the subsequent years
by carry forward and/or carry-over of 10 per cent (ten per cent), of which carry-forward shall not
represent more that 5 per cent (five per cent).
No quantitative limits shall be placed on the co mbined use of carry-over, carry-forward and
provisions of the following article.
Article 88.  Where more than one product from another country is placed under restraint
under this Chapter, the level of restraint agreed, pursuant to the present provisions, for each of these
products may be exceeded by 7 per cent (seven per cent), provided that the total exports subject to
restraint do not exceed the total of the levels for all products so restrained, on the basis of agreedcommon units.  Where the periods of application of restraints of these products do not coincide with
each other, this article shall be applied to any overlapping period on a pro rata basis.
Article 89.  If the Executive decides to apply safeguard measures under this Chapter, it shall
adopt appropriate measures which:
(a) Take full account of such factors as established tariff classification and quantitative
units based on normal commercial practices in export and import transactions, both as
regards fibre composition and in terms of competing for the same segment of its
domestic market;  and
(b) avoid over-categorization.G/SG/N/1/U RY/1/Suppl.1
Page 17
Article 90.  The provisions contained in this Chapter shall remain in force until the first day of
the 121st month that the Agreement Establishing the World Trade Organization is in effect, on which
date the textiles and clothing sector shall be fully integrated into GATT 1994.
CHAPTER VIII
General Provisions
Article 91.  The procedures provided for in these regulations shall be written procedures and
records shall be kept at the hearings.  Similarly, it shall be compulsory to use the Spanish language
and provide a translation, by an official tr anslator, of documents in another language.
Article 92.  Applications and documents submitted by interested parties shall comply with the
terms of this Decree and with instructions issued by the investigating body;  otherwise, they will not
be incorporated in the proceedings.
Article 93.  The Implementation Commission and the investigating bodies, where appropriate,
may request direct from the units and departments of the Public Administration, regardless of theirlegal nature or institutional status, any cooperation and information deemed necessary in connection
with all procedures provided for in this Decree.
Article 94.  The time-limits specified for interested parties shall be counted from the date
following that on which the action in question was notified or published.
Article 95.  Notification under this Decree shall be made in accordance with the provisions of
Article 91of the Decree No. 500/991, of 27 September 1991.
Article 96.  This Decree shall enter into force on 1 February 1999.Article 97.  For transmittal, publication, etc. – Sanguinetti, Luis Mosca, Roberto Rodriguez
Pioli, Primavera Garbarino, Ignacio Zorilla de San Martin.
Received by the Official Gazette on 13 January 1999.
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