./.WORLD TRADE
ORGANIZATIONG/SG/40/Suppl.3
1 March 2002
(02-1019)
Committee on Safeguards Original:  English
REQUEST FOR CONSULTATIONS FROM KOREA UNDER
ARTICLE 12.3 OF THE AGREEMENT ON SAFEGUARDS
Imposition of a Safeguard Measure by the United States
On Imports of Certain Steel Products
Supplement
The following communication, dated 27 February 2002, has been received from the
Permanent Mission of Korea.
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The Permanent Mission of the Republic of Korea refers to the United States' notification
under Article 12.1(b) of the WTO Agreement on Safeguards dated 28 December 2001, concerning
findings of serious injury or threat thereof caused by increased imports of certain steel products
(circulated as WTO docume nt G/SG/N/8/USA/8/Suppl.1).
Having a substantial interest as an exporter of the products concerned, Korea had
consultations with the United States on 4 and 5 February 2002, where Korea clearly explained its
position on this matter in detail.  However, Korea does not regard these consultations as those inaccordance with Article 12.3 of the Agreement on Safeguards because they were held under
circumstances where the United States had not provided information on the measure it intends to
apply.
The WTO Appellate Body, in the case of US - Line Pipe , recently affirmed its finding in US -
Wheat Gluten  that formal consultations under Article 12.3 of the Agreement on Safeguards were to be
held concerning the actual measure to be imposed by the US President, and that the absence of
consultations concerning the actual measure to be imposed did not allow the EC "to assess accurately
the likely impact of the measure being contemplated, nor to consult adequately on overall equivalent
concessions with the United States".  (Report of the WTO Appellate Body in US - Line Pipe ,
15 February 2002, at para. 98.)  The Appellate Body extended this reasoning in the US - Line Pipe  to
require that there be sufficient time for such cons ultations so as to allow for a meaningful exchange
and to allow for sufficient time to reach "an understanding" ( id. at para. 108) regarding how to
maintain a "substantially equivalent level of concessions and other obligations" ( id. at para. 108) in
accordance with Article 8.1 of the Agreement on Safeguards.  Moreover, the Appellate Body notedthat the sufficiency of time had to be judged with reference to the fact that the United States would
have to have sufficient time in which to carefully consider in good faith the comments received from
exporting members before implementing the measure.
In its Second Supplemental Notification (G/SG/ N/8/USA/8/Suppl.2), the United States has
indicated its intent to comply with US law, which requires that the US President take action in this
case by 6 March 2002.  Accordingly, noting the US statutory deadline for action by the President,G/SG/40/Suppl.3
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Korea formally requests consultations pursuant to Article 12.3 of the Agreement on Safeguards,
concerning the actual measure to be imposed by the US President, so as to permit Korea to assess
accurately the likely impact of the measure be ing contemplated and to allow for a meaningful
exchange in an attempt to reach an understand ing regarding how to maintain a "substantially
equivalent level of concessions and other obligations" in accordance with Article 8.1 of theAgreement on Safeguards.
Korea expects that the United States will comply with its obligations under Article 12 of the
Agreement on Safeguards to provide proper notification and will provide the opportunity for these
requested consultations in sufficient time prior to the US statutory deadline to enable the above-
described exchange of views to occur and to enable the United States to carefully consider in good
faith the comments received from Korea before impl ementing the measure.  Korea is ready to consult
with the United States at a mutually agreed date and place.
Korea further requests that the United States provide Korea with information concerning the
actual measure to be imposed in advance of these consultations and in accordance with Article 12.1(c)
so that Korea has an adequate opportunity to consult with the United States in accordance withArticles 12 and 8 of the Agreement on Safeguards before the Presidential Action is taken.
Korea reserves its rights under the Agreement on Safeguards, in particular Articles 8 and 14,
as well as Articles XXII and XXIII of the GATT 1994 and the Understanding on Rules and
Procedures Governing the Settlement of Disputes.
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