WORLD TRADE
ORGANIZATIONG/SG/N/8/ARG/1/Suppl.2
G/SG/N/10/ARG/1/Suppl.5G/SG/N/11/ARG/1/Suppl.5
14 August 2000
(00-3296)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.1(b) OF THE AGREEMENT ON
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT
THEREOF CAUSED BY INCREASED IMPORTS
NOTIFICATION PURSUANT TO ARTICLE 12.1(c) AND ARTICLE 9,
FOOTNOTE 2, OF THE AGREEMENT ON SAFEGUARDS
ARGENTINA
Supplement
The following communication, dated 1 August 2000, has been received from the Permanent
Mission of Argentina.
_______________
Ministry of the Economy
IMPORTSResolution 571/2000
Extension of the safeguard measure established by Resolution No. 987/97 of the Ministry of
the Economy and Public Works and Services, for imports  of "performance sports footwear".
Buenos Aires, 21July 2000
HAVING REGARD TO File No. 061-006592/98 in th e Registry of the Former Ministry of
the Economy and Public Works and Services, and
WHEREAS:
Under Article 1 of Ministry of the Economy Resolution 122 of 24 February 2000 the
safeguard measure adopted by Resolution 987 of the former Ministry of the Economy and Public
Works and Services dated 10 September 1997, as amended by Resolutions 512 of 24 April 1998 and
1506 of 16 November 1998 in the Registry of the former Ministry of the Economy and Public Worksand Services does not apply to imports of non-sports footwear.G/SG/N/8/A RG/1/Suppl.2
G/SG/N/10/ARG/1/Suppl.5
G/SG/N/11/ARG/1/Suppl.5
Page 2
Article 2 of Ministry of the Economy Resoluti on 122/2000 extended for a period of 150 days
the safeguard measure established by former Ministry of the Economy and Public Works and Services
Resolution No. 987/97, as amended by Resolutions of the former Ministry of the Economy, PublicWorks and Services 512/98 and 1506/98, for imports of sports footwear and/or footwear for sports
use, consisting of specific duties and quotas established in Annexes I, II and III of former Ministry of
the Economy and Public Works and Services Resolution 1506/98 for imports of such products,
cleared through customs under MERCOSUR Common Nomenclature Tariff Headings 6402.12.00,
6402.19.00, 6402.91.00, 6402.99.00, 6403.12.00, 6403.19.00, 6403.91.00, 6403.99.00 and
6404.11.00.
In addition, Article 4 of Ministry of the Economy Resolution 122/2000 provides for the
holding of consultations with the interested parties for the purpose of assessing the possible
distribution of the quota established in the above Resolution, in accordance with the Agreement on
Safeguards of the World Trade Organization, WTO.
Argentina has held consultations on this matter with the European Union, the Republic of
Indonesia and the Kingdom of Thailand.
As a result of those consultations, the Ministry of the Economy issued Resolution 534 of
11 July 2000, which distributed the quota established in its Resolution 122/2000, applicable to exportsto the Argentine Republic of sports footwear and/or footwear for sports use, originating in the
European Union, the Republic of Indonesia and th e Kingdom of Thailand, cleared through customs
under MERCOSUR Common Nomenclature Tariff Headings 6402.12.00, 6402.19.00, 6402.91.00,
6402.99.00, 6403.12.00, 6403.19.00, 6403.91.00, 6403.99.00 and 6404.11.00, under the quota laid
down in Annex I of Ministry of the Economy Resolution 534/2000.
Furthermore the Under Secretariat of Industry, Trade and Mining in the Secretariat of
Industry, Trade and Mining of this Ministry issued the relevant report, pursuant to the provisions of
Article 10 of Decree 1059 of 19 September 1996.
For its part, on 29 June 2000, the National Foreign Trade Commission, a subordinate body of
the Secretariat of Industry, Trade and Mining, in its Directive 636, determined, "on the basis of theinvestigation carried out and evaluation of the results thereof that the safeguard measure continues to
be necessary to prevent and remedy the serious injury caused by the imports and that the national
"performance sports footwear" industry is in a process of restructuring".
Likewise, the National Foreign Trade Commission, in its Note CNCE PR/151, dated
4 July 2000, on product identification states that "in the international market, high-performance
footwear is essentially manufactured with vulcanized rubber soles with an undersole of low density
E.V.A. or P.U".
The reason for using this type of sole is that "high or low density P.U. , wears out more
rapidly and at the same time, has a "resistance" to slip which is practically half that of vulcanized
rubber".
Finally, the National Foreign Trade Commission, concludes in its report that neither PVC nor
unvulcanized rubber compound are used in the so les of performance sports footwear products.G/SG/N/8/A RG/1/Suppl.2
G/SG/N/10/ARG/1/Suppl.5
G/SG/N/11/ARG/1/Suppl.5
Page 3
Likewise, in Note CNCE PR/N190, the National Foreign Trade Commission , concerning the
product "performance sports footwear", considers th at the following can be identified as sports
footwear or footwear for sports use, cleared through customs under MERCOSUR Common
Nomenclature Tariff Headings 6402.12.00, 6402.19.00, 6402.91.00, 6402.99.00, 6403.12.00,
6403.19.00, 6403.91.00, 6403.99.00 and 6404.11.00, with separate soles of PVC or unvulcanized
rubber compound.
Furthermore, in accordance with the prov isions of Article 16 of Decree 1059/96,
consultations were held with interested governments.
It is necessary to reflect the results of the consultations held with the European Union, the
Republic of Indonesia and the Kingdom of Thailand.
The consultations initiated with the Kingdom of Thailand and the Republic of Indonesia are
continuing.
In this respect, the provisions of Article XIX paragraph 3 subparagraph (a) of GATT 1994
have been taken into account.
In accordance with the provisions of Article 9 of the Agreement on Safeguards, the situation
of developing countries which are Members of the WTO has been assessed and it has been
determined that there is a group of developing countries whose imports do not exceed 3 per cent taken
individually and do not exceed 9 per cent collectively.
Furthermore, the notifications to the Committee on Safeguards required under Article 12
paragraphs 1(b) and 1(c) and in the footnote to Article 9 paragraph 1 of the Agreement on Safeguards
were issued.
Finally, the Secretariat of Industry, Trade and Mining took a decision based on the result of
the consultations, evaluated the injury produced to domestic industry and also the current
restructuring in that industry.
In view of the foregoing circumstances and considerations, and having assessed all the
relevant factors, the need arises to extend the safeguard measure established under former Ministry of
the Economy and Public Works and Services Resolution 987/97, as amended by Resolutions 512/98
and 1506/98 of the former Ministry of the Economy and Public Works and Services, for imports of
"performance sports footwear".
The Directorate-General of Legal Affairs of the Ministry of the Economy has expressed an
opinion within its sphere of competence.
This Resolution is issued pursuant to the powers conferred by the Agreement on Safeguards
of the WTO, incorporated into our legal regime by Law No. 24.425 and Decree No. 1059 of
19 September 1996.G/SG/N/8/A RG/1/Suppl.2
G/SG/N/10/ARG/1/Suppl.5
G/SG/N/11/ARG/1/Suppl.5
Page 4
Therefore
THE MINISTER OF THE ECONOMY
DECIDES:
Article 1 - To extend for three years the safeguard measure established in former Ministry of
the Economy and Public Works and Services Resolution 987/97, as amended by former Ministry of
the Economy, and Public Works and Services Resolutions 512/98 and 1506/98, which were extended
for a period of 150 days by Ministry of the Economy Resolution 122/2000, for imports of"performance sports footwear", i.e. sports footwear or footwear for sports use with separate soles of
PVC or unvulcanized rubber compound, pursuant to the specific duties established in Annex I which
form an integral part of this Resolution, cleared through customs under MERCOSUR Common
Nomenclature Tariff Headings 6402.12.00, 6402.19.00, 6402.91.00, 6402.99.00, 6403.12.00,
6403.19.00, 6403.91.00, 6403.99.00 and 6404.11.00;  these specific rights shall be liberalized as setout in the Annex.
Article 2 - In the case of exports to Argentina originating in the Member States of the WTO
under the quota established in Annex II which forms an integral part of this Resolution, the measure
established in Article 1 shall not exceed the amount resulting from applying the import duty of 35 percent of the customs value of the goods;  these quotas shall be liberalized as set out in the Annex.  In
the case of exports to Argentina originating in countries which are not members of the WTO, under
the quota established in Annex II of this Resolution, the specific duty set out in Annex I of this
Resolution shall apply.
Article 3 - The annual quotas indicated for each of the periods listed in Annex II of this
Resolution shall be allocated on the basis of one quarter of the annual quota per quarter.
Article 4 - Where the quarterly quotas indicated in the preceeding Article are exceeded, the
specific duties established in Annex III, which forms an integral part of this Resolution, shall be
applied to these imports.  The specific duties shall be liberalized in accordance with the provisions of
that Annex.
Article 5 - The consultations initiated with the Kingdom of Thailand and the Republic of
Indonesia shall continue.
Article 6 - Imports originating from the Republic of Korea, the Republic of the Philippines,
the Kingdom of Morocco and Lithuania shall be excluded from the application of this measure,
because they are covered by the exception laid down in Article 9 paragraph 1 of the Agreement on
Safeguards.  In the event these imports increase, and exceed the share allowed under the above-
mentioned rule, the treatment granted will be reviewed.
Article 7 - The Secretariat of Industry, Trade and Mining of this Ministry shall determine the
procedure for allocating the quotas laid down in Annex II of this Resolution.
Article 8 - This Resolution shall enter into force from 22 July 2000.
Article 9 - For communication, publication, transmittal to the official registry and archiving.
José L. Machinea.G/SG/N/8/A RG/1/Suppl.2
G/SG/N/10/ARG/1/Suppl.5
G/SG/N/11/ARG/1/Suppl.5
Page 5
ANNEX I OF RESOLUTION NO. 571
Specific minimum import duties
US$ per pair
Liberalization timetable
Tariff heading22/7/2000 to 21/7/2001 22/7/2001 to 21/7/2002 22/7/2002 to 21/7/2003
6402.12.00(b) - - -
6402.19.00(b) 6.40 5.76 5.12
6402.91.00(a) 6.40 5.76 5.12
6402.99.00(a) 5.65 5.09 4.52
6403.12.00(b) - - -
6403.19.00(b) 10.60 9.54 8.48
6403.91.00(a) 9.15 8.24 7.32
6403.99.00(a) 6.60 5.94 5.28
6404.11.00(a) (b) 6.25 5.63 5.00
(a) Tennis, basketball, gym, training and similar shoes only with separate PVC or unvulcanized
compound rubber soles.
(b) Only sports shoes with separate PVC or unvulcanized compound rubber soles.
ANNEX II OF RESOLUTION NO. 571
Liberalization timetable
quotas in pairs* Origin
22/7/2000 to 21/7/2001 22/7/2001 to 21/7/2002 22/7/2002 to 21/7/2003
European Union 200,000 210,000 230,000
Kingdom of Thailand 250,000 262,500 287,500
Republic of Indonesia 1,350,000 1,417,000 1,552,500
Other 550,000 577,500 632,500
Total 2,350,000 2,467,000 2,702,500
*Except tariff headings 6402.12.00 and 6403.12.00G/SG/N/8/A RG/1/Suppl.2
G/SG/N/10/ARG/1/Suppl.5
G/SG/N/11/ARG/1/Suppl.5
Page 6
ANNEX III OF RESOLUTION 571
Specific minimum import duties
US$ per pair
Liberalization timetableTariff heading22/7/2000 to 21/7/2001 22/7/2001 to 21/7/2002 22/7/2002 to 21/7/2003
6402.12.00(b) - - -
6402.19.00(b) 16.00 14.40 12.80
6402.91.00(a) 16.00 14.40 12.80
6402.99.00(a) 14.13 12.71 11.30
6403.12.00(b) - - -
6403.19.00(b) 26.50 23.85 21.20
6403.91.00(a) 22.88 20.59 18.30
6403.99.00(a) 16.50 14.95 13.20
6404.11.00(a) (b) 15.83 14.06 12.50
(a) Tennis, basketball, gym, training and similar shoes only with separate PVC or unvulcanized
compound rubber soles.
(b) Only sports shoes with separate PVC or unvulcanized compound rubber soles.
__________