WORLD TRADE
ORGANIZATIONG/SG/N/8/ARG/4/Suppl.1
G/SG/N/10/ARG/3/Suppl.1
27 September 2001
(01-4597)
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
NOTIFICATIONS PURSUANT TO ARTICLE 12.1(c)
ARGENTINA
Supplement
The following communication, dated 18 September 2001, has been received from the
Permanent Mission of Argentina.
_______________
In addition to the notifications under Article 12.1(b) and 12.1(c) of the Agreement on
Safeguards and within the framework of the safegu ard investigation on imports of peaches, preserved
in water containing added sweetening matter, including syrup, preserved in any other form or in water
Argentina hereby provides the Committee on Safegu ards with a copy of Resolution No. 348/2001 of
the Ministry of the Economy, published in the Official Bulletin of 7 August 2001.
This Resolution closes the investigation and imposes a safeguard in the form of minimum
specific duties on imports of the products described in Annex I thereto for a period of three years.G/SG/N/8/A RG/4/Suppl.1
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Ministry of the Economy
Foreign Trade
Resolution 348/2001
Providing for the closure of the safeguard investigation on the imports of peaches,
preserved in water containing added sweetening matter, including syrup, coming under certain
tariff headings of the MERCOSUR Common Nomenclature, and establishing minimum specific
duties on the said imports.  Liberalization timetable.  Exclusions.  Validity.
Buenos Aires, 6 August 2001
HAVING REGARD TO File No. 061-015235/2000 of th e Registry of the Ministry of the
Economy, and
WHEREAS:By means of the above mentioned file the CAMARA DE LA FRUTA INDUSTRIALIZADA
DE MENDOZA (Chamber of the Industrial Fruit Production of Mendoza) requested the initiation ofan investigation for the application of a safeguard measure on imports of peaches, preserved in water
containing added sweetening matter, including syrup, preserved in any other form or in water, coming
under MERCOSUR tariff headings 2008.70.10 and 2008.70.90.
The National Foreign Trade Commission, a decentralized body under the former Secretariat
for Industry and Trade of the Ministry of the Economy, decided by majority in Directive No. 711 of
2 January 2001 that "… the application contains sufficient evidence of the threat of serious injury to
the domestic industry caused by imports, thereby meeting the conditions laid down by the regulations
in force to implement possible provisional safeguard measures ...".
It also concluded from the analysis of all aspects of imports that "… recent trends in imports
meet the conditions required by the Agreement on Safeguards for initiating an investigation with a
view to the imposition of a safeguard measure …".
It was also of the opinion that "… the adjustment plan submitted is reasonable and can be
accepted …".
It considered that "… the current situation [therefore] constitutes critical circumstances
pursuant to Article 6 of the Agreement on Safeguards".
On 5 January 2001 the former Under-Secretaria t for Industry and Trade, attached to the
former Secretariat for Industry and Trade of the Ministry of the Economy, expressed a technicalopinion within its sphere of competence.
The implementing authority found that there was a causal relationship between the increase in
imports and the threat of serious injury to the domestic industry and that the proposed adjustment plan
was viable.
Having ascertained that the critical circumstances exist as required under Article 35 of
Decree No. 1059 of 19 September 1996, the former Under-Secretariat for Industry and Trade hasG/SG/N/8/A RG/4/Suppl.1
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concluded that sufficient reasons exist in terms of timing, merit and advisability to justify the opening
of an investigation and the adoption of  a provisional safeguard measure.
In order to avoid the threat of injury mentioned above and until the relevant investigation is
completed, it would be advisable to set a provisional safeguard measure in the form of provisional
minimum specific duties.
Accordingly, the Ministry of the Econom y, in Resolution No. 39 of 12 January 2001,
published in the Official Bulletin of 18 January 2001, announced the opening of a safeguards
investigation of exports to Argentina of peaches,  preserved in water containing added sweetening
matter, including syrup, preserved in any other fo rm or in water, coming under MERCOSUR tariff
headings NCM 2008.70.10 and 2008.70.90, establishing provisional minimum specific duties
amounting to 50 United States cents per kilogram net (US$0.50 per kg.net).
Following the opening of the investigation, on 20 March 2001, in conformity with the
provisions of Article 3 of the Agreement on Safeguards, approved by Law No. 24.425 and
Article 13(e) of Decree No. 1059/96 establishing regulations for the implementation of
Law No. 24.425, a public hearing was held so that the parties involved in the investigation could set
forth their arguments.
The National Foreign Trade Commission, a decentralized body under the Secretariat for
Trade of the Ministry of the Economy, stated in Record No. 781 of 2 July 2001 that "… having
concluded that the domestic industry is facing a threat of serious injury within the meaning of
Article 4 of the Agreement on Safeguards and that this is happening in the context of unforeseen
developments, the Commission finds that the conditions justifying the application of a safeguard
measure under that Article have been met.
The applicant has submitted a readjustment plan and has undertaken to apply it and fulfill the
objectives contained therein, monitored by the implementing authority.
Having ascertained that there has been an in crease in imports in circumstances such as to
cause serious injury to domestic production in conformity with Article 18 of Decree No. 1059 of
19 September 1996, and after analysis by the Secretariat of Trade of this Ministry of the technicalreports provided for in Article 15 of the above-mentioned Regulation, it has been concluded that the
legal conditions and other reasons exist in terms of timing, merit and advisability to justify the
application of a safeguard measure.
In conformity with the provisions of Article 5.1 of the Agreement on Safeguards, the
proposed measure remedies the serious injury and facilitates adjustment of the domestic industry
affected.
Accordingly, in order to ensure effective implementation, the measure will take the form of
minimum specific duties for the tariff headings of the MERCOSUR Common Nomenclaturecorresponding to the product under investigation as specified in Annex I, which is an integral part of
this Resolution.
The Committee on Safeguards has been duly notified in accordance with Article 12.1 and
12.3 and footnote 2 to Article 9.1 of the Agreement on Safeguards, incorporated into our legal systemby Law No. 24.425.
Consultations were held in accordance with Article 12.3 and 12.4 of the said Agreement.G/SG/N/8/A RG/4/Suppl.1
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Article 9.1 of the Agreement on Safeguards as approved by Law No. 24.425 stipulates that
safeguard measures shall not be applied against imports originating in a developing country Member
of the World Trade Organization with less than 3 per cent import share individually and less than
9 per cent collectively.
It was decided, on the basis of imports for the period from 1998 to 2000, that imports from
the Republic of South Africa would be excluded from the application of the safeguard measure since
they come within the terms of Article 9.1 of the Agreement on Safeguards.
In the event an increase in the imports referred to in the preceding preambular paragraph,
modifying their percentage, the treatment granted shall be reviewed.
This measure shall be applied with due respect for existing multilateral, regional or bilateral
international agreements.
With respect to imports of goods originating in and coming form MERCOSUR States Parties,
this measure shall be implemented pursuant to the provisions in force in that regard.
Resolution No. 763 of 7 June 1996 and Resolution No. 381 of 1 November 1996 of the
former Ministry of the Economy and Public Works and Services have established the contents and
procedures for the presentation of a certificate in the context of the monitoring of non-preferentialorigin for import transactions subject to such a requirement, in accordance with the provisions of the
Agreement on Rules of Origin, which forms part of  the Results of the Uruguay Round of the General
Agreement on Tariffs and Trade (GATT) 1994, approved by Law No. 24.425.
In accordance with the provisions of the Resolutions cited in the preceding preambular
paragraph, the Secretariat of Trade of the Ministry is the implementing authority of the regime in
question and as such decides when and how such monitoring is to take place.
Accordingly, it may decide to require certificat es of origin when goods are subject to the
application of anti-dumping, countervailing or specific duties or safeguard measures in accordance
with Article 2(b) of Resolution No. 763 of 7 June 1996 of the former Ministry of the Economy and
Public Works and Services.
In view of what has been stated in the preceding preambular paragraphs, it is necessary to
instruct the Directorate-General of Customs of the Federal Administration of Public Revenue, an
autonomous body within the Ministry of the Economy, to maintain the requirement for certificates of
origin.
The Directorate-General of Legal Affairs of the Ministry of the Economy has taken the
appropriate action within its sphere of competence.
This Resolution is issued under the powers conferred by the Agreement on Safeguards,
incorporated into our legal system by Law No. 24.425 and Decree No. 1059 of 19 September 1996.G/SG/N/8/A RG/4/Suppl.1
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The Ministry of the Economy therefore
DECIDES:
Article 1.   The safeguard investigation on the export to Argentina of peaches, preserved in
water containing added sweetening matter, including syrup, preserved in any other form or in water,
coming under MERCOSUR tariff headings NCM 2008.70.10 and 2008.70.90, is declared closed.
Article 2.  A safeguard measure in the form of minimum specific duties for imports of the
products described in Annex I, which is an integral part of this Resolution, is hereby imposed.
Article 3.  The safeguard measure provided for in Article 2 of this Resolution shall be
progressively liberalized in accordance with the timetable set forth in the aforementioned Annex I.
Article 4.  Imports originating in the Republic of South Africa shall not be subject to the
measure imposed since they are covered by the exception provided for in Article 9.1 of the Agreementon Safeguards, incorporated into Argentina's legal system by Law No. 24.425.
Article 5.  By virtue of Article 5 of Annex IV of th e Treaty of Asunción, the measure referred
to in Article 2 of this Resolution shall not ap ply to imports originating in and coming from
MERCOSUR States Parties.
Article 6.  The safeguard measure imposed by this Resolution shall be valid for a period of
three years starting on 19 January 2001.
Article 7.  The Directorate-General of Customs attached to the Federal Administration of
Public Revenue, an autonomous body within the Ministry of the Economy, shall be notified that all
imports of the products described in Article 2 of this Resolution are subject to the regime for the
monitoring of non-preferential origin under the terms of Article 2(b) of Resolution No. 763 of
7 June 1996 of the former Ministry of the Economy and Public Works and Services.
Article 8.  The requirement mentioned in the prev ious Article shall comply with the
conditions and modalities established by Resolution No. 763 of 7 June 1996 and Resolution No. 381of 19 November 1996 of the former Ministry of the Economy and Public Works and Services, and the
supplementary rules and customs provisions established for their implementation.
Article 9.  For communication, publication and transmittal to the Official Registry and
archiving – Domingo F. Cavallo.G/SG/N/8/A RG/4/Suppl.1
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ANNEX I
Liberalization timetable
US$/Kg.netProduct
NCM tariff headingSafeguard measure
US$/Kg.net
From 19.1.2001 to
18.1.2002From 19.1.2002
to 18.1.2003From 19.1.2003
 to 18.1.2004
Peaches in water containing
added sweetening matter,
including syrup
2008.70.100.50 0.45 0.40
Other
2008.70.900.50 0.45 0.40
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