RESTRICTED
WORLD TRADE G/SG/Q1/BRA/3
15May1997
ORGANIZATION(97-2029)
Original: English Committee onSafeguards
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLE 12.6OFTHE AGREEMENT
Replies ofBRAZIL1toquestions posed by
theEUROPEAN COMMUNITIES2andKOREA3
Thefollowingcommunication,dated6May1997,hasbeenreceivedfromthePermanentMission
ofBrazil.
_______________
EUROPEAN COMMUNITIES
1. Duration andreview ofSafeguard Measures
Question
1. Under Article 9(7)oftheDecree No.1488/95, "inexceptional cases" theliberalization process
ofsafeguard measures maybeinitiated afterthesecond year. Under Article 7(4)oftheSafeguard
Agreement, safeguard measures should bereviewed notlaterthanthemid-term ofthemeasure. How
isthisdifference tobeexplained? What arethe"exceptional cases" referred to?
Answer
Brazil willcomply withitsobligations under Article 7.4oftheAgreement onSafeguards.
Having beenincorporated intotheBrazilian legalsystem bymeans ofaPresidential Decree (Decree
No.1355, dated 30December 1994), theWTO Agreements havethesame hierarchical levelaslaws,
andaresubordinate onlytotheFederal Constitution. TheDecree No.1355/94 promulgated the
Legislative Decree No.30,dated 15December 1994, which approved theWTO Agreements. Assuch,
ithasadistinct character fromother subsequent legalinstruments (decrees, ministerial orders) having
precedence overthem.
1G/SG/N/1/BRA/3 +Suppl..1
2G/SG/Q1/BRA/2 +Corr.1
3G/SG/Q1/BRA/1G/SG/Q1/BRA/3
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2. Notification andconsultation
Question
Under Article 12(4) oftheSafeguard Agreement, Members shall make anotification tothe
Committee onSafeguards before taking provisional safeguard measures. TheBrazilian legislation does
notcontain anysuchprovision. Does thismean theBrazilian authorities would consider notifying
provisional measures when theyarealready ineffect?
Answer
No. Aswasthecaseinthefirstsafeguard investigation initiated byBrazil, theBrazilian
Government willcomply withArticle 12.4oftheAgreement onSafeguards andshallnotify provisional
measures before theyaretaken. Thisinternational obligation isalready contained inDecree 1355/94
anditwasnotdeemed necessary toduplicate itinDecree 1488/95.
3. Procedure
Question
3.1 Whocanfileacomplaint forasafeguard action?
Answer
Inaccordance withArticle 3ofDecree 1488, theinvestigative authorities, interested agencies
andorgans oftheFederal Government, companies andrepresentative associations ofcompanies can
allfileacomplaint forasafeguard action.
Question
3.2 Dotherepresentatives ofanexporting country have access totheevidence during the
investigation? Dotheyhavethestatus of"interested parties" forthepurpose oftheprocedure?
Answer
Therepresentatives ofanexporting country havethesamerights thataregranted toallinterested
parties inaccordance withArticle 3.1oftheAgreement onSafeguards.
KOREA
1. Liberalization process
Question
Article 7.4oftheAgreement onSafeguards stipulates that"Inorder tofacilitate adjustment
inasituation where theexpected duration ofasafeguard measure asnotified under theprovisions
ofparagraph 1ofArticle 12isoveroneyear, theMember applying themeasure shallprogressively
liberalize itatregular intervals during theperiod ofapplication".
Article 9.8oftheBrazilian Decree, however, provides that"Inexceptional cases, tobe
determined bytheauthorities referred tointheopening paragraph ofArticle 2,based onafinding
bySECEX, theliberalization process maybeinitiated afterthesecond year".G/SG/Q1/BRA/3
Page3
Could Brazil explain howitintends tojustify thedivergence between Article 9.8ofitsDecree
andArticle 7.4oftheAgreement onSafeguards?
Answer
Brazil willcomply withitsobligations under Article 7.4oftheAgreement onSafeguards.
Having beenincorporated intotheBrazilian legalsystem bymeans ofaPresidential Decree (Decree
No.1355, dated 30December 1994), theWTO Agreements havethesame hierarchical levelaslaws,
andaresubordinate onlytotheFederal Constitution. TheDecree No.1355/94 promulgated the
Legislative Decree No.30,dated 15December 1994, which approved theWTO Agreements. Assuch,
ithasadistinct character fromother subsequent legalinstruments (decrees, ministerial orders) having
precedence overthem.
2. Allocation ofquotas
Question
Article 8.4oftheBrazilian Decree states that"Other criteria maybeadopted fortheallocation
ofquotas ...iftheCommittee findsthatclear demonstration isprovided thattheimport fromcertain
countrieshaveincreasedingreaterproportionthanthetotalincreaseofimportsoftheproductconcerned
...andthattheconditions forapplication ofthese criteria areequitable toallsuppliers oftheproduct
concerned".
Article 5.2(b) oftheAgreement onSafeguards, however, alsorequires clear demonstration
ofthejustification ofthereasons fordeparture fromArticle 5.1(a), inaddition tothetwoconditions
prescribed intheBrazilian Decree.
What isBrazil 'sexplanation forthisdiscrepancy?
Answer
Brazil willcomply withitsobligations under paragraphs 1,2(a)and2(b)ofArticle 5ofthe
Agreement onSafeguards. Having beenincorporated intotheBrazilian legalsystem bymeans ofa
Presidential Decree (Decree No.1355, dated 30December 1994), theWTO Agreements havethesame
hierarchical levelaslaws, andaresubordinate onlytotheFederal Constitution. TheDecree No.1355/94
promulgated theLegislative Decree No.30,dated 15December 1994, which approved theWTO
Agreements. Assuch, ithasadistinct character from other subsequent legalinstruments (decrees,
ministerial orders) having precedence overthem.