RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q2/ARG/4
30 October 1998
(98-4245)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON
SAFEGUARDS ON INITIATION OF AN INVESTIGATION
AND THE REASON FOR IT
Replies to Questions posed by the United States1
to Argentina2
The following communication, dated 27 October 1998, has been received from the Permanent
Mission of Argentina.
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Question Posed by the United States in the Meeting of the WTO Safeguards Committee
According to the notification, Chapter XII "Transitional Provisions" of the Regulation,
approved by Decision of the MERCOSUR Council No. 17 of 17 December 1996, "… establishes a
transition period lasting up to 31 December 1998, during which States parties will continue to apply
their domestic legislation where safeguard measures to be applied by just one of them are
concerned …".  If Argentina decides to impose a safeguard measure on toy imports, how would the
measure be applied to imports from MERCOSUR partners and from third parties beginning in
January 1999?
In accordance with the MERCOSUR Regulation, during the period of applicability of the
transitional provisions, the investigation procedure for the adoption of safeguard measures by
MERCOSUR on behalf of a State party will be conducted by the competent authorities of the Stateparty concerned, through the application of its relevant domestic legislation.  States parties will apply
their domestic legislation in accordance with the provisions of the Regulation.
Moreover, when safeguard measures are adopted through the application of domestic
legislation, imports from States parties are excluded from such measures.
At the end of the period of applicability of the transitional provisions, the MERCOSUR
Regulation will be used for the adoption of safeguard measures by MERCOSUR as a single entity and
on behalf of a State party.  (This means that the application of the common rules to imports from
countries that are not members of MERCOSUR will exclude imports from States parties.)
                                                     
1G/SG/Q2/ARG/3.
2G/SG/N/6/ARG/2.G/SG/Q2/ARG/4
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CHAPTER XII
Transitional Provisions
ARTICLE 88.  The provisions of this Regulation shall be applied to investigations and to
reviews of safeguard measures in force initiated on the basis of applications submitted on or after the
date of entry into force of this Regulation.
ARTICLE 89.  These transitional provisions shall remain in force until 31 December 1998.ARTICLE 90.  During the period in which these transitional provisions remain in force, the
investigation procedure for the adoption of safeguard measures by MERCOSUR on behalf of a State
party shall be conducted by the competent authorities of the State party concerned, through the
application of the relevant domestic legislation.  States parties shall apply their domestic legislations
in accordance with the provisions of this Regulation.
ARTICLE 91.  While these transitional provisi ons remain in force, adjustments to the
domestic legislation for the purpose of progressively aligning it on this Regulation may be made
whenever and to the extent that the States parties deem necessary.
ARTICLE 92.  The interested State party shall transmit to the President in office of the
Commission communications relating to the decisions taken in an investigation proceeding for the
application of a safeguard measure.  The President in office of MERCOSUR shall make the
notifications to the WTO Safeguards Committee specified in Article 12 of the WTO Agreement on
Safeguards.  These notifications shall be made within five days of the date of receipt of the
corresponding communication from the interested State party.
ARTICLE 93.  The notifications referred to in Article 92 shall be made by MERCOSUR on
behalf of the interested State party.
ARTICLE 94.  The President in office of the Commission shall transmit a copy of the
notifications referred to in Article 92 to the other States parties.
ARTICLE 95.  The consultations with intere sted exporting countries following the
application of provisional safeguard measures or prior to the application or extension of safeguard
measures in accordance with Article 90 shall be held  with the participation of the other States parties.
The non-appearance of any of the States parties duly notified shall not prevent the holding of the
consultations.
ARTICLE 96.  When a State party proposes to apply or endeavours to extend a safeguard
measure in accordance with Article 90, the consultations with the interested exporting countries with a
view to agreeing on adequate means of trade compensation for the adverse effects of the measure
shall be held with the coordinated participation of the States parties, for the purpose of defining thenature and scope of the trade compensation.
ARTICLE 97.  When a State party agrees on means of trade compensation, in accordance
with the provisions of Article 96, it shall do so in such a way as not to involve any impairment of the
trade interests of the other States parties.
ARTICLE 98.  When safeguard measures are applied in accordance with the provisions of
Article 90, imports from States parties shall be excluded therefrom.G/SG/Q2/ARG/4
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ARTICLE 99.  States parties shall monitor imports of products which are the subject of a
safeguard measure applied by a State party.
ARTICLE 100.  During the period of applicability of the transitional provisions, the
Commission shall proceed to draw up supplementary rules relating to the application of thisRegulation and may propose improvements in its provisions.
ARTICLE 101.  During the period of applicability of the transitional provisions, States parties
shall consider the possibility of applying this Regulation, as far as safeguard measures are concerned,
as a single entity.G/SG/Q2/ARG/4
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QUESTION - BOUND DUTY RATES AND APPLIED TARIFF RATES
REPLY (a) Bound duty rate is 35 per cent ad valorem  equivalent
(b) Applied tariff rate is 23 per cent ad valorem , except in the following cases:
1. Tariff line
95 02 10 10 26%
2. 95 02 10 90 27%
3. 95 03 30 00 26%
4. 95 03 41 00 27%5. 95 03 49 00 26%
6. 95 03 70 00 26%
7. 95 03 90 10 26%
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