WORLD TRADE
ORGANIZATIONG/SG/N/6/ECU/7
17 December 2003
(03-6645)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.1(a) OF THE AGREEMENT ON SAFEGUARDS
ON INITIATION OF AN INVESTIGATION AND THE REASONS FOR IT
ECUADOR
(Pneumatic Tyres of Rubber)
The following communication, dated 5 December 2003, is circulated at the request of the
delegation of Ecuador.
_______________
1. Pursuant to Article 12.1(a) of the Agreement on Safeguards, I hereby notify the Committee on
Safeguards of the initiation of an investigation pro cess relating to serious injury or threat thereof and
the reasons for it in relation to pneumatic tyres of rubber classified under NANDINA
subheadings 4011.10.00 and 4011.20.00.
2. This notification is made in accordance with the suggested format for notifications under the
Agreement on Safeguards, as set forth in document G/SG/W/1 of 23 February 1995.
1. Specify the date when the investigation was initiated.
31 October 2003.
2. Specify the products subject to the investigation.
The products subject to this investigation are pneumatic tyres of rubber under NANDINA
subheadings 4011.10.00, of a kind used on motor cars (including station wagons and racing cars) and
4011.20.00, of a kind used on buses and lorries, as they appear in the national import tariff in
accordance with the Harmonized System.
3. Provide the reasons for the init iation of the investigation.
(i) Was the investigation pursuant to a petition from the domestic industry?
The request was made by the Compañía Ecuatoriana del Caucho S.A. (ERCO S.A.), which
represents 100 per cent of the domestic industry for pneumatic tyres.
(ii) Evidence on the basis of which the investigation was initiated.
The massive imports of the product are causing a deterioration in the economic situation in
the domestic industry as reflected by a decline in sales, profits and production in the domestic market
and an increase in stocks.G/SG/N/6/ECU/7
Page 2
It should be noted that the tendency has been for imports under both subheadings to continue
to grow.  Thus, imports under subheading 4011.10.00 grew (in volume) by 14 per cent between 2000
and 2001, subsequently decreasing by 6 per cent in 2002, while imports under subheading 4011.20.00
grew by 26 per cent in 2001, and decreased by 21 per cent in 2002, with a growth of 6 per cent
estimated for the end of 2003.
In short, the share of imports of the products under investigation has increased in the domestic
market, leading to a reduction in share and consequent loss of this market for domestic production.
(iii) Evidence, if any, of critical circumstances  where delay would cause injury that would be
difficult to repair.
The growth in imports has been displacing domestic tyre production from the local market:
production under subheading 4011.10.00 decreased by 1 per cent (in volume) from 2000 to 2001,
increasing by 7 per cent in 2002.  As regards domestic production under subheading 4011.20.00, there
was an 11 per cent decline during the period from 2000 to 2001, and 8 per cent for 2002, with a
decrease of 22 per cent estimated for 2003.
For subheading 4011.10.00 the share of imports in the domestic market was 52 per cent in
2000, 55 per cent in 2001 and 49 per cent in 2003, while for subheading 4011.20.00 the share was
53 per cent in 2000, 58 per cent in 2001 and 56 per cent in 2002, with a growth in share for 2003
estimated at 86 per cent.
This displacement of domestic tyre production by imported products led to a drop of 8 per
cent in exports under subheading 4011.10.00 during the period 2000-2001, 3 per cent during 2002,
and an estimated 9 per cent decrease for 2003.  Exports under subheading 4011.20.00 dropped by
33 per cent from 2000 to 2001, and grew by 8 per cent in 2002.
Stocks under subheading 4011.10.00 grew dramatically by 686 per cent between 2000 and
2001 and by 8 per cent in 2002, and a growth of 144 per cent is expected for 2003.  Similarly, stocks
under subheading 4011.20.00 grew considerably:  728 per cent between 2000 and 2001 and 29 per
cent in 2002, with an estimated growth of 7 per cent for 2003.
At the same time, displacement of domestic production as a result of imports has caused sales
revenue for tyres to decline by 10 per cent between 2000 and 2001, after which it grew by 1 per cent
in 2002 and is expected to increase by 5 per cent in 2003.
Thus, the above factors support the existence of critical circumstances causing damage that
would be difficult to repair to the domestic industry for the said product.
OFFICIAL REGISTER NO. 202
FRIDAY, 31 OCTOBER 2003
No. 03 053
THE UNDER-SECRETARY FOR FOREIGN TRADE AND INTEGRATION OF THE MINISTRY
OF FOREIGN TRADE, INDUSTRY, FISHERIES AND COMPETITIVENESS
Whereas:
In a communication dated 4 August 2003, Mr Patrick Cazals, as Executive President of the
Compañía Ecuatoriana del Caucho S.A. (ERCO S.A.), domiciled at Panamericana Norte km. 2.8 in
the town of Cuenca, Ecuador, requested the initiatio n of an investigation with a view to imposing aG/SG/N/6/ECU/7
Page 3
safeguard measure, as provided for under WTO law, for a period of four years, and also requested the
application of a provisional safeguard measure consisting of a customs duty in addition to those that
already apply in Ecuador, on imports of pneum atic tyres of rubber classified under NANDINA 4011,
subheadings 4011.10.00, 4011.20.00 and 4011.69.00, in the form of an ad valorem  tariff equivalent to
15 per cent, for a period of 200 days;
Under Article XIX of the General Agreement on Tariffs and Trade (GATT 1947), the WTO
Agreement on Safeguards and the provisions of Titles XVII and XVIII of the Consolidated Legal Text
of the Ministry of Foreign Trade, Industry, Fisheries and Competitiveness (MICIP) as reflected in
Executive Decree No. 3497, which was published in the Official Register No. 744 of 14 January 2003
and establishes the rules and procedures to prevent and counteract the effects of increased imports
under such conditions as to cause or threaten to cause serious injury to the domestic industry thatproduces like or directly competitive products, countries may impose safeguard measures;
In fax communication No. 2003–130 DOC–MICIP of 19 August 2003, the MICIP asked the
company ERCO S.A. for supplementary information on the main variables in order to be able to
evaluate the request submitted on 4 August 2003, and that information was transmitted to this StateSecretariat on 17 September 2003;
On the basis of the information supplied by ERCO and the evidence available, it was
determined that ERCO S.A. was the only domestic producer of pneumatic tyres of rubber in the
country, and as such represented 100 per cent of the domestic industry;
The products under investigation consist of pneumatic tyres of rubber classified under
NANDINA subheadings 4011.00.00, 4011.20.00 and 4011.69.00 of the national import tariff;
ERCO S.A. did not provide disaggregated information for subheading 4011.69.00 and the
variables allegedly affected by imports under that subheading;
According to the information supplied by the Central Bank of Ecuador, the countries
exporting the products classified unde r NANDINA subheadings 4011.10.00 and 4011.20.00 are:
Colombia, Mexico, United States, Japan, Venezuela, Chile, South Korea, France, Germany, China,
Peru, Chinese Taipei, Brazil, Belgium, Hong Kong, the Netherlands, Panama, Argentina, Thailand,
Indonesia, Czech Republic, South Africa, Morocc o, United Kingdom, India, Italy, Spain, Canada,
United Arab Emirates, and Russia, and the exports of these countries are causing serious injury to the
domestic industry;
According to the information supplied by the Central Bank of Ecuador, the following natural
and legal persons have been identified as importers of the products classified under tariff subheadings4011.10.00 and 4011.20.00:  Aduancomex S.A.; AEC Ecua dor Ltda.; Agregados Rocafuerte; Agrefort
S.A.; Agro, Industrial Valango C. Ltda.; Agui lar García Carlos Eduardo; Aguirre Edmundo;
Almacenes Juan E1juri Cía. Ltda.; Almero S.A.;  Alvarado Lazcano Diego Iván; Alvarez Barba S.A.;
Alvarez Sotomayor Juan Carlos; Andina de Llanta s, Andillantas S.A.; Andi na Licores S.A.; Andrés
Borbor C. Ltda.; Andrés Cárdenas Monge; Ange la Elizabeth Bazurto Sabando; Antonio Granda;
Antonio Pino Icaza & Cía.; Aquamar S.A.; Araujo  Cárdenas Félix Segundo; Arenera Anropevi Cía.
Ltda.; Arpi & Arpi Cía. Ltda.; Arturo Mora Es pinoza; As. Sta. Mariana de Jesús; Aura Sornoza;
Autec S.A.; Auto Decorativo S.A., "Autodecsa"; Auto Delta; Autoextreme Cía. Ltda.; Automotores
Andina, S.A.; Automotores y Anexos S.A.; Autonegocios Compañía Limitada; Autoservicio, Loraver
Cía. Ltda.; Autoplaza S.A.; Autoventas Way W. Amador y S.A.; Banco del Pichincha C.A.; BaronaRecalde Luis Eduardo; Barreiro Arteaga; Rubén Angel Bernardo; Jauregui Ponce; Boetti S.A.; Bonilla
Salazar Pedro Luis; Bowen Macias Víctor Miguel; Bravo Riofrío José Valentín; Buenagua S.A.;
Burneo Malo César; Burneo Malo Luis Leonardo; Byron Morales; Cabrera Espinoza Roberto; Caicedo
Figueroa Pedro; Canteras Basálticas Picoaza S.A. ; Canteras y Voladuras S.A., (Cantyvol); Caparol
S.A.; Cárdenas Cedeño Roberto Fernando; Carlos Enrique León Guerrero; Carlos Poggi Barbieri Cía.G/SG/N/6/ECU/7
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Ltda.; Carlos Yasbek; Carmen Rocío Flores; Carrillo Chávez Darwin Alejandro; Casabaca S.A.;
CEDEGE, Comisión de Estudios de Desarrollo para  la Cuenca del Guayas;  Cedeño Moreira Cristóbal
Colón;  Cementos Selva Alegre S.A.; Centro de Diversiones River Park C. Ltda.; Centro de
Rehabilitación de Manabí, Cepsa S.A.; Cerón Chamorro Ramiro Hernán; César Castro Torres; Chong
Qui Espinoza Hugo Alfredo; Cía. Gral. de Comercio y Mandato S.A.; Cía. Importadora Hervazt S.A.Cisneros Caicedo Jorge Fabián; Cisneros Razo Adriana Lorena; Cittadella S. A.; Clínica de
Especialidades Latinoamerican; Coello  Zapata Marcelo Belisario, Comercial Daniel Bonito S.A.;
Comercial Fourwiners C.A.; Comercial Importadora Qualimax S.A.; Comercial Importadora Ziegler
Cía. Ltda.; Comercios Varios Vancover S.A.; Co mllantas S.A.; Compañía Ecuatoriana del Caucho
S.A.; Compañía Verdu SA.; Compañía Naviera Ag maresa S.A.; Computronix Cía. Ltda. Comseza
Cía. Ltda.
 Conauto, C.A. Automotriz, Condervinsa S.A.; Conduto Ecuador S.A.; Conferencia
Episcopal Ecuat.; Consorcio Nacional de Cementos , Concem Cía. Ltda.; Consorcio Obrascon Huarte
Lain S.A. Semaica; Constructora Andrade Gutiérrez S.A.;  Constructora del Litoral S.A.; Colisa;
Constructora Luzagui Cía. Ltda.; Constructora Patridasa S.A.; Consulado Americano; Corp. de
Representac. y Serv. Tecncoreptec; Corpmiralc S.A., Corporación Ecuatoriana de Aluminio S.A.,
Cedal; Cosmollanta Importadora Co. Ltda., Costaven tura S.A.; Craicomsa; Criollo Ramírez Enrique;
Daniel Raúl Patiño Seni; Dayana S.A.; Depósito Automotriz (Depoauto) S.A.; Detalleres S.A.; Díaz
Torres Angelita Ernestina; Dicresa, Distribuidores y Crédito S.A.; Diego Prado M.; Diesel Parts S.A.,
Diparsa; Distribución y Comercialización, Dicol op; Distribuidora Nacional de Automotores S.A.;
Drillfor S.A.; Dulceyca Cía. Ltda.; Durallanta S.A.; Dusung S.A.; Dygoil Consultoría y . Servicios
Petroleros; Ecosfel S.A., Ecua Auto S.A.; Ecausa; Ecuador Bottling Company Corp., Sucursal
Ecuador; Ecuaestibas S.A.; Ecuavia (agencias) Cí a. Ltda., Ecuavía S.A.; Ecuawagen S.A.; Ecupren
Cía., Ltda., Editores Manabitas, El Ferretero Cía. Ltda.; Elasto S.A.; Electrocables C.A.; Embajada de
la Orden Soberana de Malta; Emilio Isaías Comp añía Anónima de Comerc.; Emp. de Construcciones
Minería A. Grandac; Emp. Proveedora Nacional, Empronaco C. L., Empaquefilm S.A. -Empafilm-;
Empresa Nacional de Correos; Enchapes Decorativos S.A., Endesa; Equipos Forestales Cía. Ltda.,
Efocol; Estar C.A.; Fábrica Industrial Fruit del Ecuador C.A.; Fabricio Leonardo Alvarez Sotomayor;Falconí Flores Mauricio; Felipe Córdova; Fernando Pinoargote Cía. Ltda.; Ferrancia S.A.; Ferrero del
Ecuador S.A.; Fililla Beltrán Carlos Ramiro; Flexiplast S.A; Francisco Javier Robalino Gándara;
Francisco Minuche Mosquera; Freire Aillón Teresa Milena; Fundac. para el Desarr. del Transp.en
Taxis del Ec.; Galarza Molina Genaro Gregorio; Galeano Rodríguez Joffre Fernando; Galo Orellana;
García Costa Miguel Eduardo; García Maya Ma rcelo Eduardo; Garibalde Macías Rosa, Garzón
Garzón Iván Marcelo; Gastón Olivares Cía. Ltda.; General Motors del Ecuador S.A.; Gerardo Ortiz e
Hijos; Giuseppe Manciati; González Salgado Fabián Mauricio; Grancolombiana de Negocios Cía.Ltda.; Grupo Norte S.A., Grunorsa; Guerrero Lenthall Javier; Guillermo Antonio Campuzano;
Guzmán Gallardo Eduardo Fabricio; H.C.J.B. La Voz de los Andes; Hacienda Celia María C.A.;
Harbert International Establishment S.A.; Héctor Lara, Herdoíza Crespo Construcciones Hercec Ci,
Herdoíza Guerrero Marcelo Daniel, Herman
- Antonio Valverde; Hermosa Hermosa Jorge
Washington; Herna G. Salazar Morán; Hernán Gonzalo ldrobo Andrande; Hi PerformanceAutomotriz Cía. Ltda.; Hidalgo Sánchez Diego Aurelio; Holger Humberto Salazar Mendoza; Hotel
Colón Guayaquil S.A.; Howard Narváez, HPP Ecuador,  Huang Hu Shui Hua; lcaro S.A.; Identra S.A.;
Imauvisa, Importadora Audiovideo Comercial S.A.; Imp. Com. Fernández Cía. Ltda., Imcofer; Imp.
de Materiales de Construcción, Imaco;, Imporaustro  Cía. Ltda.; Importaciones Manuel Rosero S.A.;
Importadora Aguilar C.A.; Imaguira; Importadora  Candylan S.A.; Importadora Comercial Imporaros
Cía. Ltda.; Importadora Comercial Lartizco C.  Ltda.; Importadora Comercial Mirasol S.A.;
lmportadora El
,Rosado Cía. Ltda.; Importadora Haho Cía. Ltda.; Importadora Industrial Agrícola
S.A.; Importadora Motorcicle C. Ltda.; Importadora Privanzza S.A., Importadora Romiliza S.A.;
Importadora Sayam de Comercio S.A.; Importadora Valenzuela Burbano Imvab Cía.; Importadora y
Exportadora Jeffry's, S.A.; Importitan Cía. Ltda .; Induauto S.A.; Induferro B&B S.A.; Industrial
Maderera Tymber S.A.; Infante Campoverde Julio  César; Ing. Alfonso Pérez G.; Isabel Donoso
Uribe; Itabsa Indus. del Tabaco; Alimentos y Be.; It al Llanta Cía Ltda..; Italcauchos S.A.; Italdesigin
Cía. Ltda..; Iván Bohman C.A.; Izurieta Mora Ricardo; J.F. Nasser & Co.; Jacquelines Gisella Bancho
Contreras; Jaime Machado; Joavis S.A.; Jorge Jurado Guerrero; Jorge Naranjo; José Elizalde
Elizalde; José Iturralde; José Rivera Tacoaman; Josrge Byron Estrella; Juan Marcet Cía. Ltda.;G/SG/N/6/ECU/7
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Juvenal Eloy Gonzales; Karting Club de Guayaquil; Kien Chong Chu Tai; Kien Chong Tay; La Fabril
S.A.; La Llave S.A. de Comercio; Lara Carrión Raúl José María; Lectora Ampuero Eduardo
Francisco del; Leoro Ponce Juan Carlos, Live Jiménez Marielita de Jesús; Llanta Baja Perbo Cía.
Ltda.; Llantambato, Llantas y Repuestos Cía. Ltda.;  Llantax S.A.; Llantera de la Costa C.A. "D.O.
Tire", Loor S.A. Obras y Proyectos; Lovircor S.A.; Ludeña Zambrano Carlos Eduardo; Luz MaríaEscibar Valverde; Mafare Ortiz Jenny
. Marlene; Mamut Andino C.A.; Manufacturas Armadurías y
Rep. Ecuat. S.A.; Maquinarias Henriques C.A.; María Reyes de Alvarado; María Susana lbarra;
Mariana Guadalupe Bailón; Mauricio E. Cuesta Miño; Maxillantas S.A; Medaico S.A.; Mélida
Rocío Orobio Lago; Mendoza Cedeño Enrique Agapito; Mendoza Palma Patricio; Mera Cedeño
Manuel Segundo; Mercantil Ecuador Motores (Ecumotor) C. Ltda.; Miami International Dutty Free;
María Belén Arroyo; Michelin del Ecuador Cía. Ltda.; Midlan S.A, MiguelRendón Foraine;
Multinegocios Dos Mil, Multidosmil S.A.; Mitsui del Ecuador S.A.; Molina Bravo OswaldoAlejandro; Mora Gaete Joe Williams; Morales Alcívar Jorge Luis; Moreno Martínez Córdova C.
Ltda.; Morocho Castillo Víctor Daniel; Morocho Santamaría Mayra Elizabeth; Mosquera Corrales
Mónica Janet; Moto Hot Scc, Motransa C.A.; Mujica Pazmiño Jhonny Richard; Multicontactos Cía.
Ltda.; Municipio del Distrito Metropolitano de Quito; Naranjo Hidalgo Jaime; Nasser B. Antonio
Cía. Ltda., Negocios Industriales Real, Nirsa S.A.; Néstor Cevallos; Neully S.A.; Nigensa S.A.;Nutricon, Nutrientes y Concentrados S.A.; Omnibus Bb Transportes S.A.; Optioncorp S.A.; Orellana
Peña Felipe Antonio; Organización Comercial Es cobar Triviño C.; Orlando Izurieta Cisneros;
Ororepuestos S.A.; Oso Llantera Nacional S.A.; Otani S.A.; Ovu Cía. Ltda .; Pablo Fabara Vera;
Pablo Guillen Córdova; Palacios Dueñas María Lorena; Palma Herrera Edy Francisco; Palma Herrera
Gilberto Anacleto; Pamela Brito Cárdenas; Parreño Campaña Hilma Raquel; Patricio Buitrón;Perdomo Andrés e Hijos S.A.; Perea Barriga Roberto José; Petróleos de Los Ríos C.A., "Petrolrios";
Plasticaucho Industrial S.A., Pisa; Plaza Plaza Juan Carlos; Plyw ood Ecuatoriana S.A.; Poliservicios
S.A.; Ponce Yépez Compañía de Comercio S.A., PY C; Pool International Ltd., Productos de Carros,
Prodecar Cía. Ltda.; Productos Paraíso del Ecuador S.A.; Progecon S.A.; Puebla Chávez Asociados;
Química Aristón Ecuador Cía. Ltda.; Quimis Baque Eliecer Gilberto; Quimiz Mero Manuel Nicolás;Quirola Bustos Alfonso Antonio; Quito Karting Club; Quito Motors S.A. Comercial Industrial;
Rafael Valdez Avilés C. Ltda.; Realpe Serrano Franklin Humberto; Rejapon S.A.; Renomb S.A.;
Reparsa S.A.; Richard Azua Romero; Riegoreal lngeniería y Riego; Jorge Real Cía. Ltda.; Rimasu
S.A.; Riofrío & Hijos Cía. Ltda.; Riofrío Guardera s Pablo Esteban; Rivera Delgado Hugo Geremías;
Rivera Raúl J.; Robalino Gándara José Miguel; Roberto Guerra; Roberto Salazar Zenck; Rodríguez
Beseke Luis Enrique; Rosa Ramírez Zapata; S. M. South Motors S.A.; Saénz Ormaza Jorge Luis; Sait
Samaniego Iturralde S.A.; Saivenin S.A.; Salazar Oquendo Alex Roberto; Salcedo García RamónAlfredo; Salimacorp S.A.; Salinas Yacht Club; Saltos Firmat Ronny Antonio; Sánchez Hinojoza
Víctor René; Santamaría Bonilla Manuel Fredy; Sa ntiago Acosta Andrade; Santos Padilla Ronaldo;
Sarmiento Zamora Bolívar; Secohi Cía. Ltda.; Se garra Aguilar Luis Antonio; Segundo Jacinto Oyola
Peralta; Semaan Gazal Joseph Fouad; Serv. Sociales y Comunales Conexos Carit; Servicios de
Alimentos y Mantenimientos Industria; Siembra Nueva S.A.; Simpson Nankervis Robert Peter;Soar Dorys Pilar Díaz; Sociedad Civil y Comercial Moto Hot S.C.C.; Suares Aviles Armando;
Suárez Moya Angel Medardo; Sumitomo Corporation del Ecuador S.A.; Super Llantera del Sur Cía.
Ltda.; Surti Llanta Carvajal & Cía.; Techint International Construction Corp.; Tecnandina S.A.;
Tecnocar C.A.; Teddy Intriago Vásquez; Tellina S.A.; Termoservicios Cía. Ltda.; Textiles
Industriales Textidin Cía. Ltda.; Textiles La Es cala S.A.; Tiendas Bohno Cía. Ltda.; Tiere Center
Consorcio de Llantas Cía. Ltda.; Tire Store An d Services S.A.; Tire Trading; Tireshop Cía.
Ltda.; Tirestore S.A.; Tome Torres Mena Cía.  Ltda.; Torres Villena Yolanda del Carmen;
Tracto Comercio Cía. Ltda.; Transportes Moreir a Llaguno Cía. Ltda.; Urgiles Campoverde Luis
Alberto; Urgiles León Ricardo Gu illermo; Ursatrex S.A.; Vargas San Martín Gonzalo, Vat Mat S.A.;
Vega Delgado Manuel Jacinto; Vega Egas Patricio Vicente; Vélez Saldarriaga Iván Darío; VeraMendoza Ronney Alex; Verdu Llerna David Ricardo; Verduga Hernández María Magdalena; Verdura
Zerega Yuri G.; Vicunia Wong Feliz Alberto; Villareal Bonilla Patricio René; Villigua Bravo
Grimaldo Oswaldo; Vintimilla Calle Juan Pablo;  Vivar Crespo Gabriel Alejandro; Track Tires;
Vizhñay Nieves Luis Mario; William Humberto Bolaños Guzmán; Wong Sáenz William Fei; XeroxG/SG/N/6/ECU/7
Page 6
del Ecuador S.A.; Xuan Gao Junci; Yong Bong Kim; Zapata Bernal Gyden  Bolívar; Zoldan P.
Jacobo;
On the basis of the information supplied by the requesting company, imports of pneumatic
tyres of rubber under subheadings 4011.10.00 and 4011.20.00 are considered to be displacingdomestic production of that product;
The company ERCO S.A., in conformity w ith Article 4.2(a) of the WTO Agreement on
Safeguards and Title XVII, Article 302 of the Consolidated Legal Text of the MICIP, submitted
information relating to the level of sales, production, productivity, capacity utilization, profits and
losses, and employment, which leads to the presumption of serious injury to the domestic industry;
The request submitted by the company ERCO S.A. meets the requirements set out in the
legislation currently in force;
Under Title XVIII, Article 307 of the Consolidated Legal Text of the MICIP it is the
responsibility of the Under-Secretariat for Foreig n Trade and Integration of the MICIP to decide on
and declare the initiation of an investigation;
In exercise of its powers,
Decides:
Article 1   To accept and initiate the investigation requested by the Compañía Ecuatoriana del Caucho
S.A. (ERCO S.A.), a legal person of Ecuadorian nationality, to determine whether the massive
increase in imports of pneumatic tyres of r ubber classified under NANDINA subheadings 4011.10.00
and 4011.20.00 is causing serious injury to domestic production.
Article 2   To declare inadmissible and reject the request for initiation of an investigation in relation to
to tariff subheading 4011.69.00 – Other.
Article 3   That the products subject to this investigation are pneumatic tyres of rubber under
NANDINA subheadings 4011.10.00 - of a kind used on motorcars (including station wagons and
racing cars), and 4011.20.00 - of a kind used on buses or lorries, of the national import tariff, that arelike or directly competitive with the products manufactured by the domestic industry.
Article 4   That pursuant to Title XVIII, Article 310 of the Consolidated Legal Text of the MICIP, the
investigation process shall take place over a period of three months from the date of publication of
this Resolution in the Official Register.  This period will be extendable in exceptional circumstancesin order to allow for the procedures established in Article 3 of the WTO Agreement on Safeguards
with regard to providing public not ice to all interested parties and arranging public hearings or other
appropriate means in which importers, exporters and other interested parties can present evidence and
their views, including the opportunity to respond to  the presentations of other parties and to submit
their views, inter alia , as to whether or not the application of a safeguard measure would be in the
public interest.
Article 5   That the investigation period shall cover the years 2000, 2001, 2002, and the months of
2003 to date.
Article 6   That the interested parties shall have a period of 30 calendar days starting from the
notification of this Resolution to present such ad ditional documentation or information as they deem
relevant within the investigation process.
Article 7   To treat as confidential any information supplied by ERCO S.A. as such.G/SG/N/6/ECU/7
Page 7
Article 8   That pursuant to Article 12.1(a) of the WTO Agreement on Safeguards and Title XVIII,
Article 331 of the Consolidated Legal Text of the MICIP, the investigating authority shall notify the
WTO Committee on Safeguards and the interested parties concerning the initiation of the
investigation.
Article 9   In accordance with Title XVIII,  Article 330 of the Consolidated Legal Text of the MICIP,
to ensure that this Resolution is published in the Official Register as well as in a widely circulated
newspaper in Ecuador.
Done in Quito on 20 October 2003.
(f) Cristian Espinosa C., Under-Secretary for Foreign Trade and Integration.
__________