RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q1/COL/2
26 March 1999
(99-1233)
Committee on Safeguards Original:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLE 12.6 OF THE AGREEMENT
Replies to Questions Posed by the United States1
Regarding the Notification of Colombia2
The following communication, dated 16 March 1999, has been received from the Permanent
Mission of Colombia.
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Replies to Questions Posed by the United States Regarding the
Safeguard Legislation Notified to the Committee
(G/SG/N/1/COL/2)
The questions posed by the United States app ear to refer to Decree No. 809/94, which was
abolished by Decree No. 152/98, in all aspects relating to the application of safeguard measures for
Members of the WTO.  As notified, current legislation is incorporated in Decree No. 152/98.
Question 1
Article 3, paragraph 1 of the Agreement on Safeguards sets forth certain requirements
concerning an investigation by competent authorities, public notice, public hearings and other
appropriate means for interested parties to present evidence and views, and publication of
reports setting forth findings and conclusions reached on pertinent issues of fact and law.  How
does Colombia plan to implement these requirements?
Reply
Colombia's legislation incorporates all the provisions of the Agreement on Safeguards.
Article 3 of the Agreement is dealt with in Chapter 2, Articles 6 to 19, of Decree No. 152/98, as
follows:
(1) Official receipt:  (Article 8) INCOMEX notifies the applicant in writing that the
application meets the requirements specifie d in Article 7 of Decree No. 152/98, and
thus the application is accepted.
(2) Initiation of the investigation:  This is done by means of a reasoned administrative
act, once it has been established that there has been both a substantial increase in
                                                     
1 G/SG/Q1/COL/1
2 G/SG/N/1/COL/2G/SG/Q1/COL/2
Page 2
imports of a product together with serious in jury or threat of serious injury to the
domestic industry, and that there is a connection between the two.
(3) Publication of the initiation and notificatio n to take part in the investigation:  In
addition to being published in the Official Gazette, which is a legal requirement, a
notice is also published in a national newspaper with broad circulation.  In the notice,
all parties who believe they have a legitimate interest in the investigation that has
been opened are called upon to put forw ard their views as well as any supporting
evidence they wish to provide.
(4) Dispatch and receipt of questionnaires:  Questionnaires and notification to take part in
the investigation are sent out at the same time to all known interested parties as well
as domestic producers.  Their purpose is to establish the actual situation of the
domestic industry, through an analysis of variables such as prices, sales policies and
other data which provide evidence concerning serious injury or threat thereof to the
industry.  Questionnaires are also sent to all importers known to INCOMEX, in order
to obtain more information on imports and to verify that which has already beencollected.
(5) Collection of evidence:  A reasonable time-limit is set for receiving questionnaires
and convening interested parties.  INCO MEX will collect the evidence requested by
the interested parties that it considers useful, necessary, relevant and valid forverifying the facts investigated.
(6) Verification visits:  These may be carried out at any time during the course of the
investigation, in order to verify the do cuments, evidence and information collected
for the procedure.  Any other evidence that the investigatory body deems relevant isalso gathered.
(7) Arguments:  At this stage in the procedure, the parties are invited to submit their
arguments, which is an opportunity to express their views on the investigation and/or
contest the evidence produced.  They may also at this point express their views on
whether or not the application of a safeguard measure is in the public interest.  There
is the additional stage of joint hearings of interested parties, where they may putforward their arguments and comments on the claims made by the parties during the
investigation.  Representatives of different interests attend these hearings.
(8) Conclusions of the investigation:  Once the investigatory body has all the evidence at
its disposal, the information provided by the parties, together with the evaluation and
documents supplied by INCOMEX, it draws up a final technical report containing
INCOMEX's findings and conclusions regarding relevant matters of fact and law.  If
there is an affirmative recommendation, it also includes the form, duration and
liberalization programme of the measure to be adopted.
Question 2
In Article 3 of the Colombian Safeguard Law, reference is made to the domestic
industry producing "the identical, like or directly competitive" product, but in Article 6, the
reference is to domestic production of the "like or directly competitive" product.  Why is the
term "identical" used in some places and not in others, and does it have a distinct meaning?G/SG/Q1/COL/2
Page 3
Reply
The definition given in Article 3 of Decree No. 152/98 of a "domestic industry", refers to
"like or directly competitive products", without making reference to identical products.  However, in
the same article a "similar product" it is defined as an "identical product".  Finally, Article 6 refers to"domestic industry" without mentioning "identical  products", but nevertheless similar products can be
defined as identical products, which means the same thing.
Question 3
Article 7 of paragraph 1 of the Agreement on  Safeguards provides that a Member shall
apply safeguard measures only for such period  of time as may be necessary to prevent or
remedy serious injury "and to facilitate adjustme nt".  While reference is made to adjustment
measures in several provisions of the Colombian Safeguard Law, no reference is made to
adjustment in Articles 22 and 23 of the Colomb ian Safeguard Law which relate to the scope and
duration of safeguard measures.  How does Colombia plan to consider the "facilitate
adjustment" requirement in determining whether to apply a measure and, if so, in what amountand for what period?
Reply
Articles 22 and 23 of Decree No. 152/98 refer to the "period for the evaluation of serious
injury or threat of serious injury" and to the "causal link".
In accordance with Article 25 of Decree No. 152/98, the safeguard measure is applied only
for as long as is necessary to prevent or remedy injury or threat thereof and to facilitate adjustment of
the domestic industry.
Including the period of application of any provisional measure, it shall be applied for a
maximum of four years, which can be extended to eight.  Preferably, the measure shall consist of a
customs duty, unless this is not feasible, in which case a quantitative restriction shall be applied.
Question 4
In the case of safeguard measures of mo re than three years duration, does Columbia
intend to conduct midterm reviews as required by Article 7 paragraph 4 of the Agreement on
Safeguards?
Reply
The legislation does provide for mid-term revi ews.  See Article 30 of Decree No. 152/98, in
Columbia's notification.
Question 5
Article 17 of the Colombian safeguard law authorizes safeguard measures for
agricultural and fisheries products when a threat of serious injury is found to exist.  Article 17
defines "threat of serious injury" to mean:  "A fa ll in international prices of an agricultural or
fisheries product below domestic production  costs, the threatened significant material
impairment of the situation in agricultural or fisheries production."  This appears to be to a
separate import causation test.  Are measures taken pursuant to this provision intended to be
safeguard measures that conform with the WTO Agreement on safeguards and Article 19 of
GATT 1994 if so, explain how this provision in Colombian law conforms with the standard in
Article 2, paragraph 1 of the Agreement on Safeguards.G/SG/Q1/COL/2
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Reply
This provision has been abolished pursuant to Article 86 of Decree No. 152/98.
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