WORLD TRADE
ORGANIZATIONG/SG/N/6/ECU/2
11 November 1999
(99-4873)
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
The following communication dated 2 November 1999, has been received from the
Permanent Mission of Ecuador.
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Pursuant to Article 12.1(a) of the WTO Ag reement on Safeguards, I hereby notify the
Committee on Safeguards that the Ministry of Foreign Trade, Industrialization, Fisheries and Tourism
of Ecuador has issued Resolution No. 990016, dated 28 October 1999, initiating an investigatoryprocess to determine whether it is appropriate to apply a safeguard measure on imports of matches
coming under tariff heading SA 3605.00.00.G/SG/N/6/ECU/2
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RESOLUTION No. 990016
THE UNDERSECRETARIAT FOR FOREIGN TRADE AND INTEGRATION
OF THE MINISTRY OF FOREIGN TRADE, INDUSTRIALIZATION,
FISHERIES AND TOURISM
WHEREAS
The company FOSFORERA ECUATORIANA S.A., in a communication dated 29 July 1999,
requested the application of a provisional safeguard of 80 per cent on imports of matches coming
under tariff heading 3605.00.00 in order to prevent them from continuing to cause injury to the
domestic industry;
Additional information in support of the claims contained in the request was sought through
faxes Nos. DOCI 990098, 990114, 990146 and 121 of 2 August, 9 and 13 September and
4 October 1999 respectively;
The requesting company provided the said addi tional information in official letters dated
27 September and 8 and 14 October 1999;
The company FOSFORERA ECUATORIANA S.A. requested confidential treatment of the
following information:  report of the auditors, profit and loss statements, and financial and generalposition of the company;
The company FOSFORERA ECUATORIANA S.A. produces 100 per cent of matches
manufactured in Ecuador;
According to the company concerned, the product for which a safeguard measure was
requested is matches, a finished product consisting of a small high-quality stick made of white kraft
paper impregnated with refined paraffin and other microcrystalline waxes purchased at international
prices higher than for a simple wooden stick;
The requesting company has identified the following enterprises exporting matches to
Ecuador whose exports are causing serious injury to domestic production:  TAIPINGADVERTISING MATCHES SND, KAMUNTING IND., located in Pennang, and SINCERE
IMPORT & EXPORT CO. LTD. and CHINESE PERSONNEL WORKING ABROAD, located in
Singapore;
The company FOSFORERA ECUATORIANA S.A. has identified as importers into Ecuador
the following natural and legal persons:  Mariana Carmen Rodríguez, Rafael Antonio Ulloa Navarro,
Fernando Cucalón, Raúl Benítez de la Pauta, FERCONSA CIA., Importador a el Rosado, CIA. Ltda.,
Inversiones y Negocios CIA. Ltda ., Imortadora BACUS S.A., Distribu idora de Fósforos del Pacífico
DIFOPAC, IMPORCAL S.A., Supermercados la Favorita C.A., PYDACO Productores y
Distribuidores Comerciales, ALMON del Ecuador S. A., Sociedad Industrial y Comercial C.A. SICO,
Tabacalera Andina S.A., TANASA JULIECOM S.A ., Almacenes Juan Eljuri CIA. Ltda., Ortiz
Jácome de Comercio CIA. Ltda., PROMOTERA WTC QUITO S.A. and ALPACIFIC S.A. de
Ecuador;
The company FOSFORERA ECUATORIANA S.A. contends that there have been massive
imports of matches since January 1997;G/SG/N/6/ECU/2
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According to the statistical information of the Central Bank of Ecuador, total imports during
the period from 1996 to August 1999 have shown a somewhat irregular behaviour, but with a general
growth trend;
According to the information supplied by the re questing company it has been determined that
the massive imports of matches are largely capturing the domestic market;
The company FOSFORERA ECUATORIANA S.A., in conformity with Article 4.2(a) of the
Agreement on Safeguards of the World Trade Organization and Article 26 of Resolution 0003 of
COMEXI, published in Official Register No. 288 of  1 April 1998, submitted information relating to
level of sales, production, productivity, capacity utilization, profits and losses, and employment which
lead to the presumption of injury to the domestic industry;
The investigating authority has elements whic h justify the initiation of an investigation;
By virtue of the powers conferred upon it,
DECIDES
Article 1 – To initiate the investigation requested by the company FOSFORERA ECUATORIANA
S.A. to determine whether the massive increase in imports of matches under tariff heading
NANDINA 3605.00.00 is causing serious injury to domestic production.
Article 2 – The investigation shall take place over a period of twelve months from the date of issue of
this Resolution, extendable by six months if the investigating authority so decides in exceptional
circumstances.
Article 3 – Pursuant to Article 12.1(a) of the Agreement on Safeguards of the World Trade
Organization and Article 64 of Resolution 003 of COMEXI, the investigating authority shall notify
the WTO Committee on Safeguards and the interest ed parties concerning the initiation of the
investigation.
Done in the City of Quito on the 28th day of October 1999.
(Signed)
Juan García Miranda
Under-Secretary for Foreign
Trade and Integration
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