WORLD TRADE
ORGANIZATIONG/SG/Q2/CRI/1
7 August 2002
(02-4329)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON SAFEGUARDS
BEFORE TAKING A PROVISIONAL SAFEGUARDS MEASURE
REFERRED TO IN ARTICLE 6
Questions Posed by the UNITED STATES
Regarding the Notification of COSTA RICA1
The following communication, dated 24 July 2002, has been received from the Permanent
Mission of the United States.
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The United States submits the following questions regarding the notification by Costa Rica,
pursuant to Article 12.4 of the Agreement on Safeguards, before taking a provisional safeguardsmeasure on rice (G/SG/N/7/ CRI/1, dated 19 March 2002).
1. Paragraph (c)(ii) in Costa Rica's Article 12.1(a) notification (G/SG/N/6/CRI/1) refers to
commodity exchange record data.  Why did Costa Rica use commodity exchange records rather than
actual imports in the investigation?
2. What was the quantity of rice "in husk" recorded in the commodity exchange that has actually
been imported or is awaiting discharge off Costa Rica?  What are the additional tons that are known to
be en route?
3. Why is a commodity exchange involved in Costa Rican rice imports beyond the quantity level
of Costa Rica's tariff-rate quota commitment?
4. How were the levels of the provisional safeguard duties for both types of rice (as set forth in
G/SG/N/6/CRI/1, Paragraph 2) determined initially?  Why were they increased (as set forth in
G/SG/N/7/CRI/1/Suppl.1), and how we re the new levels determined?
5. Is the special agricultural safeguard notified by Costa Rica to the Committee on Agriculture
(G/AG/N/CRI/11, 11 October 2000) still in effect?  If so, is it applied to all imports?  If the special
agricultural safeguard has been terminated, when will Costa Rica notify the WTO of the termination?
6. What was the quantity of rice imported by Costa Rica in the 2002 calendar year prior to
applying the provisional safeguard measure on 12 March 2002?
7. Did Costa Rica apply the provisional safeguar d measure to shipments already contracted by
the 12 March 2002 application date of the measure?  Did Costa Rica apply the modification to the
                                                     
1 G/SG/N/6/CRI/1; G/SG/N/7/CRI/1 + Suppl.1.G/SG/Q2/CRI/1
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safeguard measure to shipments contracted by the 21 March 2002 publication date of the modification
(G/SG/N/7/CRI/Suppl.1)?
8. The United States understands that Costa Rica's National Production Council (CNP) was
involved in some of the commodity exchange transa ctions.  What is the relationship of the National
Production Council to the Government of Costa Rica?
9. Has the Government of Costa Rica notifie d the CNP to the WTO Working Party on State
Trading Enterprises as a State Trading Enterprise?  If not, when will it submit the notification?  Does
Costa Rica contend that CNP is not a State Trading Enterprise?  If so, on what basis?
10. What is the quantity of rice "in husk" imported by CNP in 2000 and 2001?11. What is the quantity of rice "in husk" contracted by CNP for import in 2002?  How much of
this has already been imported?
12. Did the Government of Costa Rica count CNP's activity in the commodity exchange records
in its investigation to determine whether a provisional safeguard measure should be imposed?
13. What was the total quantity of rice "in husk" for which CNP participated in bidding in the
commodity exchange transactions?
14. What was the total quantity of rice "in husk" for which CNP initiated the bidding in the
commodity exchange transactions?
15. On what dates were the commodity exchange transaction biddings in which CNP
participated?
16. On what dates were there other commodity exchange transaction biddings for rice for which
CNP did not participate?
17. Was the provisional safeguard measure applied to the rice purchased by CNP?  If not, why
not?
18. Was the regular 35 per cent tariff applied to the rice purchased by CNP?  If not, why not?
19. Did regular commercial interests have the opportunity to import rice into Costa Rica without
the applied tariff and/or safeguard?  If not, why not?
20. If there was a threat of serious injury to the Costa Rica domestic industry posed by imports
(G/SG/N/7/CRI/1, Paragraph 5), why did CN P contract to import additional rice?
21. We understand that Costa Rica may need to import more rice in 2002 to meet domestic
demand.  If Costa Rica imports additional rice, will Costa Rica determine that there was no injury andterminate the safeguard measure and investigation?  If not, will the additional rice imports be subject
to the safeguard even if imported by the CNP?
22. Regarding "pounded" rice, what is the quantity that has been imported by Costa Rica in 2002
to date?  Have permits been granted for all the requests recorded?  If not, why not?
23. Does CNP plan to import any "pounded" rice?  If so, will the imports be subject to the
safeguard?  Will the imports be subject to the regular applied tariff?G/SG/Q2/CRI/1
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24. What investigation did Costa Rica’s competent authority conduct before the provisional
safeguard measure was imposed?  When did the investigation begin?  What procedures did it follow
in the investigation?  Did it consider evidence from interested parties other than domestic producers
before making its preliminary determination?
25. Article 6 of the Agreement on Safeguards states that a Member may take a provisional
safeguard measure pursuant to a preliminary determination that there is “clear evidence” that
increased imports have caused or are threatening to cause serious injury.  Did Costa Rica’s competent
authority determine that there was “clear evidence” that increased imports were causing or threatening
to cause serious injury, what was that “clear evidence,” and where is that “clear evidence” set forth in
the preliminary determination?
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