WORLD TRADE G/SG/N/10/ARG/1/Suppl.1
G/SG/N/11/ARG/1/Suppl.1
10October 1997
ORGANIZATION(97-4345)
Original: Spanish Committee onSafeguards
NOTIFICATIONS PURSUANT TOARTICLE 12.1(C) AND ARTICLE 9,
FOOTNOTE 2,OFTHE AGREEMENT ONSAFEGUARDS
ARGENTINA
Supplement
Thefollowing communication, dated 26September 1997, hasbeenreceived fromthePermanent
Mission ofArgentina.
_______________
Please findenclosed fortransmittal totheCommittee onSafeguards acopyofResolution 987/97
published intheOfficial Journal oftheArgentine Republic, No.28,729, on12September 1997.
TheResolution determines theclosure oftheinvestigation previously opened attheproper
timeintofootwear, andimposes asfrom13September 1997adefinitive safeguard measure onimports
ofproducts listed inAnnex ItotheResolution. Inaddition, asprovided forintheAgreement on
Safeguards, itestablishes atimetable fortheprogressive liberalization ofthemeasure.G/SG/N/10/ARG/1/Suppl.1
G/SG/N/11/ARG/1/Suppl.1
Page2
HAVINGREGARDTOFileNo.061-003358/96oftheRegistryoftheMinistryoftheEconomy
andPublic Works andServices, and
WHEREAS:
Resolution No.226oftheMinistry oftheEconomy andPublic Works andServices of
14February 1997, published intheOfficial Journal on24February 1997, announced theopening of
aninvestigation fortheimposition ofsafeguard measures onimports offootwear, andestablished a
provisional safeguard measure intheform ofProvisional Minimum Specific Duties;
Following theopening oftheinvestigation andpursuant toArticle 3oftheAgreement on
Safeguards approved byLawNo.24,425 andArticle 13(e) ofDecree No.1059of19September 1996,
published intheOfficial Journal of24September 1996, ahearing washeldon24April 1997toenable
theparties concerned intheinvestigation topresent theirarguments;
TheNATIONAL FOREIGN TRADE COMMISSION, adecentralized bodyoftheSecretariat
ofIndustry, Trade andMining oftheMinistry oftheEconomy andPublic Works andServices,
determined inActNo.338of12June1997 that"increased imports arecausing serious injury tothe
domestic industry andthatthereisanadditional threat ofinjury intheabsence ofsafeguard measures";
Itmustbestressed thattheabove-mentioned body determined thatimports, bothinabsolute
terms andrelative todomestic production, measured inc.i.f. values orinnumbers ofpairs, increased
during theperiod 1991-1996, withaparticularly striking increase inimports ofperformance sports
footwear;
Italsoconcluded thatthedomestic market share ofimports increased substantially;
Owing totheirlower price, imports exerted strong pressure onthedomestic footwear industry,
significantly affecting itsactivity andresults;
Thesituation oftheindustry hasdeteriorated, withademonstrated decline inemployment,
rising inventories andaworsening oftheeconomic andfinancial situation ofcompanies inthedomestic
industry;
With respect tothepublic interest, theCommission states thatasafeguard measure willnot
haveamajor effect onconsumers interms ofprices orsupply;
TheUndersecretariat ofForeign Trade, parttotheSecretariat ofIndustry, Trade andMining
oftheMinistry oftheEconomy andPublic Works andServices, concluded that"imports offootwear
increased inabsolute terms during theinvestigation period";
TheSecretariat ofIndustry, Trade andMining oftheMinistry oftheEconomy andPublic Works
andServices determined thatthereisacausal relationship between theincrease inimports offootwear
inabsolute terms andrelative tothedomestic industry andtheserious injury totheindustry ofthe
petitioners during theinvestigation period, andrecommended imposition ofasafeguard measure;
Theapplicant hassubmitted anadjustment planandundertaken toapply itandfulfilthetargets
setoutinit,subject tomonitoring bytheimplementing authority;
Having established theexistence ofthecircumstances required under Article 18ofDecree
No.1059 of19September 1996, published intheOfficial Journal of24September 1996, andafterG/SG/N/10/ARG/1/Suppl.1
G/SG/N/11/ARG/1/Suppl.1
Page3
analysis bytheSecretariat ofIndustry, Trade andMining ofthetechnical reports provided forin
Article 15ofthatDecree, ithasbeenconcluded thatthelegalconditions andotherreasons oftimeliness,
merit andsuitability allexisttowarrant theapplication ofasafeguard measure;
Accordingly, suchmeasure shallbeputintoeffect intheform ofMinimum Specific Duties
foreachtariffheading oftheMERCOSUR Common Nomenclature corresponding totheinvestigated
product aslisted inAnnex I,which forms anintegral parthereof;
Itshould bepointed outthatthere aresome types offootwear notproduced inthecountry that
arenotsubstitutable forother locally produced footwear, inparticular skiandsnowboard boots, for
which asafeguard measure hasnotbeendetermined;
Ithasbeen established thatthevalue ofimports forsome ofthetariff headings ofthe
MERCOSUR Common Nomenclature, according tothedatafor1996, isnotsignificant;
Accordingly, thesafeguard measure willnotapply totheabove-mentioned tariff headings,
provided thatafter1997thereisnoincrease intheamounts imported, which would otherwise jeopardize
theeffect ofthismeasure;
Article 9,paragraph 1,oftheAgreement onSafeguards provides thatthesituation ofdeveloping
country Members oftheWorld Trade Organization should bereviewed, andithasbeendetermined
that,onthebasis ofimports for1996, there isagroup ofdeveloping countries withlessthan3per
centimport share taken individually andnotmore than9percentcollectively;
Imports from developing country Members oftheWorld Trade Organization could change
and,intheevent ofanincrease, leadtoareview ofthetreatment granted;
NotificationshavebeencarriedouttotheCommitteeonSafeguardsasprovidedforinArticle12,
paragraphs 1and4,andthefootnote toArticle 9,paragraph 1,oftheAgreement onSafeguards,
incorporated intoourlegalsystem byLawNo.24,425;
Theconsultations provided forinArticle 12,paragraphs 3and4,oftheabove-mentioned
Agreement havebeenheld;
Thismeasure shallbecarried outwithduerespect forexisting multilateral, regional orbilateral
international agreements;
Withrespect toimports ofgoods originating inandcoming fromMERCOSUR States Parties,
thismeasure shallbeimplemented pursuant totheprovisions inforce inthatregard;
Thetermforwhich themeasure isimposed, inaccordance withtheanalysis reflected inthe
report oftheSecretariat ofIndustry, Trade andMining, shallbethreeyears, which includes theperiod
during which provisional measures wereinforce pursuant toArticle 2ofResolution No.226ofthe
Ministry oftheEconomy andPublic Works andServices of14February 1997, published intheOfficial
Journal of24February 1997, thesuspension ofwhich measures wasrevoked byajudgement of
22August 1997oftheFourth Division oftheNational Appeal Court forFederal Administrative Cases,
inCase No.8447/97;
TheDirectorate-General forLegal Affairs oftheMinistry oftheEconomy andPublic Works
andServices hastaken theappropriate action within itssphere ofcompetence;G/SG/N/10/ARG/1/Suppl.1
G/SG/N/11/ARG/1/Suppl.1
Page4
Inviewoftheforegoing, theconditions existaslaiddown byLawNo.24,425 forproceeding
withtheapplication ofsafeguard measures;
Inaccordance withArticle 2(b)ofResolution No.763oftheMinistry oftheEconomy and
Public Works andServices of7June1996, published intheOfficial Journal of13June1996, the
Secretariat ofIndustry, Trade andMining isempowered asImplementing Authority torequire the
presentation ofcertificates oforigin inimport transactions when goods aresubject totheapplication
ofsafeguard measures;
Inaccordance withtheResolution citedinthepreceding preambular paragraph theDirectorate-
General ofCustoms oftheFederal Administration ofPublic Revenue oftheMinistry oftheEconomy
andPublic Works andServices mustbeinstructed toproceed torequire thepresentation oftheabove-
mentioned certificates;
ThisResolution isissued pursuant tothepowers conferred byLawNo.24,425 andArticle 36
ofDecree No.1059 of19September 1996, published intheOfficial Journal of24September 1996;
Therefore,
THE MINISTER OFTHE ECONOMY AND
PUBLIC WORKS AND SERVICES
DECIDES:
ARTICLE 1.Thesafeguards investigation concerning imports offootwear cleared through
customs under MERCOSUR Common Nomenclature Tariff Headings 6401.10.00, 6401.91.00,
6401.92.00, 6401.99.00, 6402.12.00, 6402.19.00, 6402.20.00, 6402.30.00, 6402.91.00, 6402.99.00,
6403.12.00, 6403.19.00, 6403.20.00, 6403.30.00, 6403.40.00, 6403.51.00, 6403.59.00, 6403.91.00,
6403.99.00, 6404.11.00, 6404.19.00, 6404.20.00, 6405.10.10, 6405.10.20, 6405.10.90, 6405.20.00,
6405.90.00, isdeclared closed.
ARTICLE 2.Asafeguard measure consisting inthesetting ofminimum specific duties for
imports oftheproducts described inAnnex I,which isanintegral partofthisResolution, including
thecorresponding liberalization timetable, shallbeimposed.
ARTICLE 3.Thesafeguard measure provided forinArticle 2ofthisResolution shallbe
progressively liberalized inaccordance withthetimetable established intheabove-mentioned Annex I.
ARTICLE 4.Imports originating intheRepublic ofKorea, Thailand, Philippines, Chile,
Hong Kong, Mexico, Macau, Malaysia, India, South Africa, Singapore, ElSalvador, Bolivia, Peru,
Egypt, Israel, Honduras, Colombia, andSriLanka shallnotbesubject tothemeasure imposed, because
theyarecovered bytheexception provided forinArticle 9,paragraph 1,oftheAgreement on
Safeguards, incorporated intoourlegalsystem byLawNo.24,245. Intheevent thatthese imports
weretoincrease andexceed thepercentage shares allowed inthatAgreement, thereshould beareview
ofthetreatment granted.
ARTICLE 5.Intheprocedure fortheimportation forconsumption, without entitlement to
preferential treatment, ofthegoods listed inAnnex Icovered bythesafeguard measure established
inArticle 2ofthisResolution, acertificate oforigin shallberequired inaccordance withArticle 2(b)
ofResolution No.763oftheMinistry oftheEconomy andPublic Works andServices of7June1996
andsupplementary provisions, asfrom thedateofentry intoforce ofthisResolution.G/SG/N/10/ARG/1/Suppl.1
G/SG/N/11/ARG/1/Suppl.1
Page5
ARTICLE 6.Thesafeguard measure imposed shall beineffect forthree years asfrom
25February 1997.
ARTICLE 7.Thismeasure shallbenotified totheCommittee onSafeguards oftheWorld
Trade Organization inaccordance ofArticle 26ofDecree No.1059of19September 1996, published
intheOfficial Journal of24September 1996.
ARTICLE 8.With regard toimports originating inandcoming from MERCOSUR States
Parties, theprovisions oftheRegulation ontheApplication ofSafeguard Measures toImports from
Non-MembersofMERCOSUR,approvedbyCommonMarketCouncilDecisionNo.17/96,shallapply.
Nevertheless, theCommon Market Council shallberequested toruleonthescope ofthatRegulation,
forwhich purpose thecorresponding notification shall bemade tothepro-tempore presidency of
MERCOSUR withtherequest thatthisquery beincluded intheagenda ofthenextmeeting ofthe
MERCOSUR Common Market Council.
ARTICLE 9.TheSecretariat ofIndustry, Trade andMining shallmonitor totalimports and
theadjustment planprovided forinthecommitments undertaken bythepetitioner.
(a) Tothisend,theSecretary ofIndustry, Trade andMining shallprepare areport to
determine whether there hasbeen anincrease inimports subject tothesafeguard
measures andimports originating inthecountries covered byArticle 9,paragraph 1,
oftheAgreement onSafeguards. Thereport willprovide acomparison between total
imports measured inpairs intheperiod September 1997-August 1998 andthesame
imports fortheimmediately preceding 12-month period uptoSeptember 1997. The
Ministry oftheEconomy andPublic Works andServices shallexamine thereport of
theSecretary ofIndustry, Trade andMining, andiftheincrease inimports isgreater
than30percentitmaysuspend theliberalization provided fortheperiod between
16December 1998 and31July1999, inwhich casethemeasure inforce atthetime
willcontinue until31July1999; while fortheremaining period during which the
safeguard measure isineffect, theliberalization timetable provided forinAnnex I
ofthisResolution shallbemaintained.
(b) Theapplicant shallpresent by30September 1998 areport reflecting thedegree of
performance ofthecommitments undertaken intheadjustment plan. TheSecretary
shallforward hisconclusions concerning theimplementation oftheadjustment plan
forconsideration bytheMinister, whomaydecide torevoke thesafeguard measure
ifthecommitments under theadjustment planhavenotbeenfulfilled.
TheSecretary 'sreport shall besubmitted totheMinister atleast 30days before
16December 1998.
ARTICLE 10.ThisResolution shallcome intoforce on13September 1997.
ARTICLE11.Forcommunication,publication,transmittaltotheOfficialRegistryandarchiving.
Resolution No.987
(Signed) Dr.Roque Benjamin Fernandez
Minister oftheEconomy andPublic Works andServicesG/SG/N/10/ARG/1/Suppl.1
G/SG/N/11/ARG/1/Suppl.1
Page6
Annex ItoResolution No.987
Minimum Specific Duties onFootwear Imports
US$perpair
Tariff heading Safeguard measure Liberalization timetable
13/9/97 to
30/4/981/5/98 to
15/12/9816/12/98 to
31/7/991/8/99 to
25/2/2000
6401.10.00 0 0 0 0
6401.91.00 0 0 0 0
6401.92.00 2.58 2.51 2.44 2.36
6401.99.00 2.26 2.20 2.14 2.07
6402.12.00 0.00 0.00 0.00 0.00
6402.19.00 7.40 7.10 6.40 4.90
6402.20.00 0.00 0.00 0.00 0.00
6402.30.00 0.00 0.00 0.00 0.00
6402.91.00 7.00 6.80 6.40 5.64
6402.99.00 6.30 6.10 5.65 4.45
6403.12.00 0.00 0.00 0.00 0.00
6403.19.00 12.10 11.70 10.60 8.10
6403.20.00 0.00 0.00 0.00 0.00
6403.30.00 0.00 0.00 0.00 0.00
6403.40.00 14.51 14.11 13.71 13.30
6403.51.00 13.32 12.95 12.58 12.21
6403.59.00 16.09 15.64 15.19 14.75
6403.91.00 10.40 10.00 9.15 7.04
6403.99.00 7.30 7.10 6.60 5.39
6404.11.00 7.00 6.80 6.25 4.90
6404.19.00 2.50 2.36 2.14 1.79
6404.20.00 0.00 0.00 0.00 0.00
6405.10.10 7.30 6.91 6.32 5.39G/SG/N/10/ARG/1/Suppl.1
G/SG/N/11/ARG/1/Suppl.1
Page7
Minimum Specific Duties onFootwear Imports
US$perpair
Tariff heading Safeguard measure Liberalization timetable
13/9/97 to
30/4/981/5/98 to
15/12/9816/12/98 to
31/7/991/8/99 to
25/2/2000
6405.10.20 7.30 6.91 6.32 5.39
6405.10.90 7.30 6.91 6.32 5.39
6405.20.00*0.84 0.80 0.75 0.68
6405.90.00 7.30 6.91 6.32 5.39
*Except forfootwear withfeltsoleanduppers.