. /.WORLD TRADE
ORGANIZATIONG/SG/N/10/ECU/1
18 October 2002
(02-5713)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.1(c) OF THE
AGREEMENT ON SAFEGUARDS
ECUADOR
The following communication, dated 17 October 2002, has been received from the Permanent
Mission of Ecuador.
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1. Pursuant to paragraphs 1(c) and 2 of Article 12 of the Agreement on Safeguards, the
Permanent Mission of Ecuador hereby notifies the Committee on Safeguards of the adoption by
Ecuador of a definitive safeguard measure on imports of matches (tariff heading 3605.00.00).
2. This notification refers to those made in documents G/SG/N/6/ECU/1 and G/SG/N/7/ECU/1,
which respectively concern the initiation of an investigation into the existence or threat of seriousinjury and the adoption of a provisional safeguard measure.
3. This notification is being made in conform ity with the suggested format for notifications
under the Agreement on Safeguards, as set fort h in document G/SG/W/1 of 28 February 1995.
1. Provide evidence of serious injury or th reat thereof caused by increased imports.
Imports of matches during the period under investigation have increased to such an extent as
to cause injury to the domestic production of like or directly competitive products.
The relevant information was notified in document G/SG/N/7/ECU/1. The national
investigating authority has determined that imports  of matches are causing serious injury to the
domestic industry because of a 133 per cent increase in imports between July 1998 and June 1999 in
comparison with the period July 1997 to June 1998, as well as a decrease in terms of objectively
quantifiable factors such as domestic production, productivity, sales, utilization of plant capacity,
profits, and loss of employment.
As stated in Resolution No. 118 issued by COMEXI (copy attached), the definitive safeguard
measure was adopted pursuant to Article 11(i) of  the Law on Foreign Trade and Investment (LEXI),
the rules governing the legal and administrative status  of the Executive, and Resolution No. 052 of the
Council for Foreign Trade and Investment (COMEXI), which is the applicable domestic instrument in
this matter, and Article 11(l) of the Law on Fore ign Trade and Investment (LEXI), which stipulates
that one of COMEXI's duties is to lay down policies to enhance the competitiveness of domestic
production and promote programmes and projects for the development of productive export activities.
2. Provide information on whether there is an absolute increase in imports or an increase
in imports relative to domestic production (please see also Article 2.1 for the context).G/SG/N/10/ECU/1
Page 2
Imports of matches over the years 1998, 1999 and 2000 have increased, since 1998, to such
an extent as to cause serious injury to domestic production.  In 1998, imports increased by 133 per
cent over the previous year and continued to gr ow over the following two years by 178 and 191 per
cent, respectively.
YEARS TONNES INCREASE %
 1998   282.7          133
 1999   504.7          178
 2000   541.8          191
3. Provide a precise description of the product involved.
The product involved is matches (tariff heading 3605.00.00), which produce a flame through
friction on a surface prepared, or not, for that purpose.  The product consists of a small, elongated
stick made of wood, cardboard or textile fibres impregnated with wax, stearin, paraffin or similar
substances (matches) or other materials, and of a head composed of various combustible chemicals.
4. Provide a precise description of the proposed measure.
The measure involves an additional 14 per cent on the tariff for imports of matches under
tariff heading 3605.00.00, to be applied for a period of two years.
5. Provide the proposed date of  introduction of the measure.
The definitive measure came into effect on 24 October 2001, i.e. one day after the
publication, in Official Register No. 438 of 23 October 2001, of Resolution COMEXI No. 118adopting the measure.
6. Provide the expected duration of the measure.
The measure will remain in effect for two years counted from the date of publication, as
stipulated in Resolution No. 118.
7. For a measure with a duration of more than three years, provide the proposed date for
the review (under Article 7.4) to be held not later than the mid-term of the measure, if
such a date for the review has already been scheduled.
The duration of the measure will not exceed three years.
8. If the expected duration is over one year, provide the expected timetable for progressive
liberalization of the measure.
The authorities are currently examining the progressive liberalization of the measure; their
conclusions will be notified in the near future.
9. If the measure is being extended, also provide (i) evidence that the industry concerned is
adjusting and that the safeguard measure continues to be necessary to prevent or
remedy serious injury.
It is impossible to answer this question, because Resolution No. 118 does not provide for any
extension of the safeguard measure.
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