WORLD TRADE G/SG/N/6/ARG/2
15April 1998
ORGANIZATION(98-1452)
Original: Spanish Committee onSafeguards
NOTIFICATION UNDER ARTICLE 12.1(a) OFTHE AGREEMENT
ONSAFEGUARDS ONINITIATION OFANINVESTIGATION
AND THE REASONS FOR IT
ARGENTINA
Thefollowing communication, dated 30March 1998, hasbeenreceived fromthePermanent
Mission ofArgentina.
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Iampleased toinform you,forthepurposes ofnotifying theWorld Trade Organization 's
Committee onSafeguards that,under Article 12oftheAgreement onSafeguards, myGovernment
hasdecided toinitiate aninvestigation inconnection withtoys.
Thetextofthenotification, which follows theformat adopted bytheCommittee onSafeguards,
isattached, together withResolution SICyM No.56ordering therelevant administrative act.
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Pursuant toArticle 12.1(a) oftheWTO Agreement onSafeguards andusing theformat adopted
bytheCommitteeonSafeguards(documentG/SG/N/6),theArgentineRepublicherebygivesnotification
oftheinitiation ofasafeguards investigatory process.
1. Dateofinitiation oftheinvestigation
On22September 1997, theArgentine Chamber oftheToyIndustry submitted totheSecretariat
forIndustry, Trade andMining oftheMinistry oftheEconomy andPublic Works andServices arequest
fortheinitiation ofaninvestigation forthepurposes ofapplying asafeguard measure totheimportation
oftoysunder theAgreement onSafeguards oftheGATT 1994, adopted byLawNo.24.425/95 and
regulated byDecree No.1.059/96. Onthebasis ofthisrequest, theimplementing authority decided
toproceed toinitiate aninvestigation which willcommence on3February 1998.G/SG/N/6/ARG/2
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2. Products subject toinvestigation
Theinvestigation involves "toys, party novelties andarticles forChristmas festivities". These
products arecontained inthefollowing tariff headings:
Mercosur tariff
headingDescription ofthegoods
9501.00.00 Wheeled toysdesigned toberidden bychildren; doll'scarriages
9502.10.10 Dolls, whether ornotdressed, withaspring orelectircal mechanismi
9502.10.90 Other
9502.91.00 Parts andaccessories, garments andaccessories therefor, footwear
andheadgear
9502.99.00 Other
9503.30.00 Other construction setsandconstructional toys
9503.41.00 Stuffed
9503.49.00 Other
9503.60.00 Puzzles
9503.70.00 Other toys, putupinsetsoroutfits
9503.80.90 Other
9503.90.10 Other toysfriction, cordorspring operated
9503.90.90 Other
9504.40.00 Playing cards
9504.90.00 Other
9505.10.00 Articles forChristmas festivities
9505.90.00 Other
9506.62.00 Inflatable balls
9506.69.00 Other
3. Reasons forinitiating theinvestigation
Asstated under Item1,theArgentine Chamber oftheToyIndustry hassubmitted arequest
fortheinitiation ofaninvestigation forthepurpose ofapplying asafeguard measure totoyimports.
From theevidence gathered sofar,theimplementing authority considers thattheapplicant represents
approximately 95percentofthedomestic industry inthissector.
TheChamber attached information ondevelopments intoyimports, which made itpossible
notonlytomeasure theimpact onapparent consumption butalsotoanalyse theimpact ofsuchimports
ondomestic production. Theimplementing authority alsohasevidence toindicate thattheforegoing
hasproduced acomplex economic andfinancial situation forthesector withadecline indomestic
production, anincrease inidlecapacity, lossofjobs, increased stocks anddifficulties inrecovering
investment costs.G/SG/N/6/ARG/2
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Inview oftheevidence submitted bythesector involved, theimplementing authority finds
thatthisconstitutes thecircumstances necessary fortheinitiation ofaninvestigation.
Accordingly, theimplementing authority hasdecided thataninvestigation should beinitiated
andhasissued Resolution SICyM No.56of3February 1998 tothateffect (asfollows).
MINISTRY OFTHE ECONOMY AND PUBLIC WORKS AND SERVICES
Having regard toFileNo.061-008297/97 oftheRegistry oftheMinistry ofEconomy and
Public Works andServices, and
WHEREAS:
Intheabove-mentioned filetheArgentine Chamber oftheToyIndustry requested theinitiation
ofaninvestigation fortheapplication ofasafeguard measure toimports oftoyscleared forhome
consumptionunderthetariffheadingsoftheMERCOSURCommonNomenclature(N.C.M.)9501.00.00,
9502.10.10, 9502.10.90, 9502.91.00, 9502.99.00, 9503.30.00, 9503.41.00, 9503.49.00, 9503.60.00,
9503.70.00, 9503.80.90, 9503.90.10, 9503.90.90, 9504.40.00, 9504.90.00, 9505.10.00, 9505.90.00,
9506.62.00, 9506.69.00.
TheNationalForeignTradeCommission,adecentralizedbodyundertheSecretariatforIndustry,
Trade andMining oftheMinistry oftheEconomy andPublic Works andServices, inActNo.388
of17November 1997 determined that"...withrespect totheanalysis ofserious injury orthreat of
serious injury necessary fortheinitiation ofaninvestigation, theconditions forproceeding toinitiate
aninvestigation aresatisfied ...";
TheUndersecretariat ofForeign Trade oftheSecretariat forIndustry, Trade andMining of
theMinistry oftheEconomy andPublic Works andServices hasfound, byanalysing imports ofthe
productssubjecttoinvestigationmeasuredinkilograms,thattheseimportsincreasedconsiderablyduring
theperiod 1992to1996, experiencing acumulative increase of37percentinthecourse ofthatperiod;
Inthecourse oftheyears 1992 to1996 domestic production fellby17.18 percent;
Inrelation toitsshare ofapparent consumption, thedomestic industry haseachyearlostmarket
share toimports, accounting foronly16.63 percentofthemarket in1996 ascompared with
33.38 percent in1992;
Theexistence ofacausal relationship between theincreased imports andtheinjury orthreat
ofinjury hasbeenestablished;
Inviewoftheabove, therequirements oftheAgreement onSafeguards, incorporated inour
legalsystem byLawNo.24.425 andDecree No.1059of19September 1996, forproceeding toinitiate
asafeguards investigation havebeensatisfied;
Resolution oftheMinistry oftheEconomy andPublic Works andServices No.763of
7June1996 implemented theregime concerning therequirement ofcertificates oforigin incertain
circumstances;
Byvirtue oftheabove-mentioned Resolution, theSecretariat forIndustry, Trade andMining
oftheMinistry oftheEconomy andPublic Works andServices istheimplementing authority forthe
regime inquestion;G/SG/N/6/ARG/2
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Inaccordance withtheprovisions ofArticle 2(c)ofthatResolution, theimplementing authority
isauthorized toorder theproduction ofcertificates oforigin forstatistical purposes;
Asfollows fromparagraph 3ofAnnex IIofResolution oftheMinistry oftheEconomy and
Public Works andServices No.381of1November 1996explaining theregulations mentioned above,
theSecretary forIndustry, Trade andMining maydemand therelevant certificates when aninvestigation
aimed atthepossible establishment ofsafeguard measures hasbeeninitiated;
Byvirtue ofthepreceding itisnecessary toinstruct theGeneral Directorate ofCustoms, which
isresponsible totheFederal Public Revenue Administration oftheMinistry oftheEconomy andPublic
Works andServices, toproceed torequire thecertificates inquestion sixty(60)daysaftertheentry
intoforce oftheResolution stipulating thataninvestigation should beinitiated;
TheArgentine Republic, byLawNo.23.981 of15August 1981, ratified theTreaty ofAsuncion
making itaStateparty totheSouthern Common Market (MERCOSUR) andalso,byLawNo.24.560
of20September 1995, ratified theProtocol ofOuro Preto;
TheDecisionoftheMERCOSURCouncilNo.17of17December1996approvedtheRegulation
concerning theapplication ofsafeguard measures toimports from non-members ofMERCOSUR;
ChapterXII"Transitionalprovisions"oftheabove-mentionedRegulationestablishesatransition
period lasting upto31December 1998during which States parties willcontinue toapply theirdomestic
legislation where safeguard measures tobeapplied byjustoneofthem areconcerned;
TheGeneral Directorate ofLegal Affairs oftheMinistry oftheEconomy andPublic Works
andServices hastaken theappropriate action within itssphere ofcompetence;
This Resolution isissued under thepowers conferred bytheAgreement onSafeguards
incorporated inourlegalsystem byLawNo.24.425 andDecree No.1059 of19September 1996;
THEREFORE,
THE SECRETARY FOR INDUSTRY, TRADE AND MINING
RESOLVES:
Article 1.Todeclare thatasafeguards investigation should beinitiated forexports tothe
Argentine Republic oftoyscleared through customs under thetariff headings oftheMERCOSUR
Common Nomenclature 9501.00, 9502.10.10, 9502.10.90, 9502.91.00, 9502.99.00, 9503.30.00,
9503.41.00, 9503.49.00, 9503.60.00, 9503.70.00, 9503.80.90, 9503.90.10, 9503.90.90, 9504.40.00,
9504.90.00, 9505.10.00, 9505.90.00, 9506.62.00, 9506.69.00.
Article 2.Toinstruct theGeneral Directorate ofCustoms, which isresponsible totheFederal
Public Revenue Administration oftheMinistry oftheEconomy andPublic Works andServices, to
proceed torequire certificates oforigin forallimports, cleared through customs, oftheproducts
described inArticle 1ofthisResolution sixty (60)daysafterthedateofentry intoforce ofthis
Resolution, forverification purposes.
Article 3.Thehearing provided forinArticle 13(e) ofDecree No.1059 shallbeheldsixty
(60)calendar daysfromthedayfollowing publication ofthisResolution inthe"Boletin Oficial" (Official
Journal).G/SG/N/6/ARG/2
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Article 4.ThisResolution shalltakeeffect fromthedayfollowing itspublication intheOfficial
Journal oftheArgentine Republic.
Article5.Forcommunication,publication,transmittaltotheNationalDirectorateoftheOfficial
Registry andarchiving.
Resolution No.56
(signed) Dr.Aliego Aldo Guadagni
Secretary forIndustry
Trade andMining
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