WORLD TRADE
ORGANIZATIONG/SG/N/10/ARG/4
G/SG/N/11/ARG/4
23 July 2001
(01-3664)
Committee on Safeguards Original:  Spanish
NOTIFICATIONS PURSUANT TO ARTICLE 12.1(C)
AND ARTICLE 9, FOOTNOTE 2, OF THE
AGREEMENT ON SAFEGUARDS
ARGENTINA
The following communication, dated 10 July 2001, has been received from the Permanent
Mission of Uruguay.
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The Permanent Mission of Uruguay to the World Trade Organization (WTO), in its capacity
as representative of the MERCOSUR pro-tempore  Presidency, presents its compliments to the Central
Registry of Notifications of the WTO Secretariat and, in compliance with the "Regulation on theApplication of Safeguard Measures to Imports  from Non-Member C ountries of MERCOSUR",
hereby notifies the Committee on Safeguards of Resolution No. ME 229/2001 of the Ministry of the
Economy of the Argentine Republic, dated 21 June  2001, declaring the closure of the safeguards
investigation into exports to the Argentine Republic of certain mopeds and motorcycles and imposing
a safeguard measure consisting in the setting of minimum specific duties for exports of the products
described, as provided for in Article 12.1 and Article 9, footnote 2, of the WTO Agreement on
Safeguards.
∗
                                                     
∗ Also notified by Argentina in documents G/SG/N/8/ARG/3 and Corr.1 and Add.1.G/SG/N/10/ARG/4
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Ministry of the Economy
FOREIGN TRADEResolution 229/2001Announcing the decision to close the safeguard investigation concerning imports of mopeds and
motorcycles of up to one hundred cubic centimetres (100 cc) cylinder capacity, excluding
quadricycles and so-called all-terrain vehicles.
Buenos Aires, 21 June 2001
HAVING REGARD to File No. 060-001869/2000 of the Registry of the MINISTRY OF
THE ECONOMY, and
WHEREAS:
In that file the domestic manufacturer ZANELLA HERMANOS Y COMPAÑIA SOCIEDAD
ANONIMA, COMERCIAL, INDUSTRIAL, FINANCIERA E INMOBILIARIA requested the
opening of an investigation with a view to the application of a safeguard measure concerning theimportation of mopeds and motorcycles of up to ONE HUNDRED CUBIC CENTIMETRES (100 cc)
cylinder capacity, excluding quadricycles and so-called all-terrain vehicles, by which is meant trial,
endurance and motorcross vehicles, under the foll owing tariff headings of the MERCOSUR Common
Nomenclature:  8711.10.00 and 8711.20.10.
The NATIONAL FOREIGN TRADE COMMISSION, a decentralized body under the former
SECRETARIAT OF INDUSTRY, TRADE AND MINING of the MINISTRY OF THE ECONOMY,
determined, pursuant to Article 10 of Decree No. 1059 of 19 September 1996, in its Directive No. 615
of 10 May 2000 that "the request showed sufficient evidence of serious injury caused by imports to
the domestic industry, though without satisfying the conditions required by the current regulations for
the possible application of provisional measures".
The former UNDER-SECRETARIAT OF INDUSTRY, TRADE AND MINING in the
former SECRETARIAT OF INDUSTRY, TRADE AND MINING of the MINISTRY OF THE
ECONOMY, in its technical report of 19 May 2000 prepared pursuant to  Article 10 of Decree
No. 1059 of 19 September 1996, concluded that "throughout the period concerned and especially
since 1998, the year when the greatest absolute variation in imports was recorded, domesticproduction of the product in question lost market share to imports …".
The existence of a causal link between the increased imports and the serious injury has been
established.
In the light of the conclusions of the NATIONAL FOREIGN TRADE COMMISSION, and of
the technical report by the former UNDER-SECRETARIAT FOR INDUSTRY, TRADE AND
MINING, and in view of the factors in the present case, it was concluded that circumstances existed to
justify the opening of an investigation with a view to the application of a safeguard measure
concerning the product under investigation.
Pursuant to Resolution No. 353 of 17 July 2000 and Resolution No. 438 of 14 August 2000 of
the former SECRETARIAT OF INDUSTRY, TRADE AND MINING, it was decided to open a
safeguard investigation concerning imports of mopeds and motorcycles of up to ONE HUNDREDG/SG/N/10/ARG/4
G/SG/N/11/ARG/4
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CUBIC CENTIMETRES (100 cc) cylinder capacity, excluding quadricycles and so-called all-terrain
vehicles, by which is meant trial, endurance and motorcross vehicles.
Following the opening of the investigation on 19 September 2000 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 OF TRADE of the MINISTRY OF THE ECONOMY, concluded in Act No. 776 of13 June 2001 that "the domestic industry of mopeds and motorcycles of up to one hundred cubic
centimetres (100 cc) cylinder capacity, excluding quadricycles and so-called all-terrain vehicles, by
which is meant trial, endurance and motorcross vehicles, is suffering serious injury, that there is a
causal link between the increased imports and such injury, and that that increase has been the result of
an unforeseen series of circumstances.  Consequently, the Commission finds that the conditionsrequired under Article 2 of the WTO Agreement on Safeguards have been met so as to allow the
application of a safeguard measure".
The applicant has submitted a readjustment plan and has engaged to apply it and fulfil the
objectives contained therein subject to monitoring by the implementing authority.
The SECRETARIAT OF TRADE of that Ministry, acting within its field of competence,
supported the adoption of a safeguard measure.
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 that Ministry of the
technical reports provided for in Article 15 of the above-mentioned regulation, it has been concluded
that the legal conditions and other reasons in terms of  timing, merit and advisability exist 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 branch of domestic
production affected.
Accordingly, in order to ensure effective implementation, the measure will take the form of
minimum specific duties under the tariff headings of the MERCOSUR Common Nomenclature for theproduct 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 Articles 12.1 and
12.4 and footnote 2 to Article 9.1 of the Agreement on Safeguards, incorporated into our legal system
by Law No. 24.425.
Decision No. 8/94 of the Common Market Council stipulates in Article 3 that "safeguard
measures may be applied under the GATT legal regime when imports from commercial free zones,
industrial free zones, free zones for the processing of exports and special customs areas involve an
unforeseen increase in imports that cause injury or the threat thereof for the importing country".
There has been found to be an increase in imports from the Manaos Special Customs Area of
the FEDERATIVE REPUBLIC OF BRAZIL.G/SG/N/10/ARG/4
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The Legal Service for Industry, Trade and Mining in the GENERAL DIRECTORATE OF
LEGAL AFFAIRS of the MINISTRY OF THE ECONOMY stated in opinion No. 1660 of
24 May 2001 that "in the opinion of the advisory body, it is clear from the provisions of Article 3 of
Decision No. 8/94 of the Common Market Council that it is legally permissible in the framework of
GATT and MERCOSUR to apply safeguard measures to goods form the Manaos Special Customs
Area".
Article 9.1 of the Agreement on Safeguards as approved by Law No. 24.425 provides that
safeguard measures shall not be applied to developing country Members of the World Trade
Organization whose imports do not exceed TH REE PER CENT (3%) taken individually and
NINE PER CENT (9%) collectively.
It was decided, on the basis of imports for the period covered by the years 1998-2000, that the
imports from the KINGDOM OF THAILAND, the REPUBLIC OF PERU and HONG KONG 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 of the imports referred to in the preceding preambular paragraph increasing, so as
to produce a change in their percentage, the treatment granted will be reviewed.
This measure shall be carried out with due respect for existing multilateral, regional or
bilateral international agreements.
With respect to imports of goods originatin g in and coming from 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-preferential origin 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 that Ministry is the implementing authority of the
regime in question and as such stipulates the circumstances and methods that are to apply in carrying
out such monitoring.
Accordingly, it may decide to require certificates  of origin when the goods are subject to the
application of anti-dumping, countervailing or specific duties or safeguard measures in accordance
with the provisions of 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 General-Directorate of Customs of the FEDERAL PUBLIC REVENUE
ADMINISTRATION, an autonomous body within the MINISTRY OF THE ECONOMY, to maintain
the requirement for certificates of origin.
The GENERAL DIRECTORATE OF LEGAL AFFAIRS of the MINISTRY OF THE
ECONOMY has taken the appropriate acti on within its sphere of competence.G/SG/N/10/ARG/4
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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.
Therefore,THE MINISTRY OF THE ECONOMYDECIDES:Article 1 .  The safeguard investigation on exports to the ARGENTINE REPUBLIC of
mopeds and motorcycles of up to ONE HUNDRED CUBIC CENTIMETRES (100 cc) cylindercapacity, excluding quadricycles and so-called all-terrain vehicles, by which is meant trial, endurance
and motorcross vehicles, under the following tariff headings of the MERCOSUR Common
Nomenclature:  8711.10.00 and 8711.20.10, is declared closed.
Article 2 .  A safeguard measure consisting in the setting of minimum specific duties for
imports of the products described in Annex I, which is an integral part of this Resolution, including
the corresponding liberalization timetable, shall be imposed.
Article 3 .  The safeguard measure provided for in Article 2 of this Resolution shall be
progressively liberalized in accordance with the timetable established in the above-mentionedAnnex I.
Article 4 .  By virtue of Article 3 of MERCOSUR COMMON MARKET COUNCIL Decision
No. 8/94 the safeguard measure shall be applicab le to goods originating in the MANAOS Special
Customs Area of the FEDERATIVE REPUBLIC OF BRAZIL in accordance with the descriptioncontained in Annex I which is an integral part of this Resolution.
Article 5 .  Imports originating in the KINGDOM OF THAILAND, the REPUBLIC OF
PERU and HONG KONG shall not be subject to the measure imposed since they are covered by the
exception provided for in Article 9.1 of the Agreement on Safeguards, incorporated into our legal
system by Law No. 24.425.
Article 6 .  The General Directorate of Customs attached to the FEDERAL PUBLIC
REVENUE ADMINISTRATION, 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 WORKSAND SERVICES.
Article 7 .  The requirement mentioned in the previo us Article will comply with the conditions
and procedures established by 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 ANDSERVICES, and the supplementary rules and customs provisions established for their
implementation.
Article 8 .  The safeguard measure imposed by this Resolution shall remain in force for
THREE (3) years and shall take effect as of 22 June 2001.
Article 9 .  With regard to imports originating in and coming from MERCOSUR States
Parties, the provisions of the Regulation on the Application of Safeguard Measures to Imports fromG/SG/N/10/ARG/4
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Non-Members of MERCOSUR, approved by COMMON MARKET COUNCIL Decision No. 17/96,
shall apply.
Article 10 .  For communication, publication, transmittal to the Official Registry and
archiving - Carlos M. Bastos.G/SG/N/10/ARG/4
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ANNEX I TO RESOLUTION No. 229
Minimum Specific Duties on Imports of Mopeds and Motorcycles of
Up to One Hundred Cubic Centimetres (100 cc) Cylinder Capacity,
Excluding Quadricycles and So-Called All-Terrain Vehicles,
by which is Meant Trial, Endurance and Motorcross
Vehicles which Come under MERCOSUR Tariff
Headings 8711.10.00 and 8711.20.10
Safeguard measure Liberalization timetable
Cylinder capacityUS$/Unit
from 22 June 2001
to 21 June 2002US$/Unit
From 22 June 2002 to
21 June 2003US$/Unit
From 22 June 2003 to
21 June 2004
Less than or equal to50 cc 314 251 219
Greater than 50 cc andless than or equal to
55 cc314 251 219
Greater than 55 cc and
less than or equal to
75 cc297 238 208
Greater than 75 cc and
less than or equal to100 cc444 355 311
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