G/L/1217  
G/SG/164  
 
3 April  2018 
(18-2006) Page: 1/2 
Council for Trade in Goods  
Committee on Safeguards  
 Original: English  
 
IMMEDIATE NOTIFICATI ON TO THE COUNCIL FO R TRADE IN GOODS OF THE RESULTS OF 
THE CONSULTATIONS UN DER ARTICLE 12.3  
CHINA  
Large Residential Washers  
The following communication, dated 29 March  2018, is being circulated at the request of the 
Delegation  of China .   
 
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1. Specify the provision under which consultations were held (i.e.  Article 12.3 or 
Article 12.4)  
 
Article 12.3.  
 
2. Provide reference to the WTO document that notified the safeguard action 
regarding which consultations were held under Arti cle 12.3 or Article 12. 4 
 
The documents notifying the safeguard action are as follows: G/SG/N/8/USA/10 (dated 
13 October  2017), G/SG/N/8/USA/10/Suppl.2 (dated 11 December 2017), and 
G/SG/N/8/USA/10/Suppl.3 –G/SG/N/10/USA/8 –G/SG/N/11/USA/7 (dated 26 January 2018) 
contain notifications from the United States concerning measures taken under the Safeguards 
Agreement affecting imports of large residential washers and parts thereof (large residential 
washers).  
 
3. Specify the Members involved in the consultations, an d provide the time period 
during which consultations were held  
 
On 12 February 2018, China and the United States conducted consultations with a view to discuss 
the information provided in the above -mentioned documents related to the safeguard measure on 
large residential washers and exchanged views on the safeguard measure. China and the United 
States agreed that the thirty -day consultation requirement under Article 8.2 (allowing countries to, 
under certain circumstances, suspend concessions if "no agreement is reached within thirty days in 
the consultations under paragraph 3  of Article 12 ") would be met on 22 February 2018.  
 
4. Describe the results of the consultation  
 
China and the United States discussed the relevant information, exchanged views on the measure, 
and discussed the United States ' obligation to compe nsate China under Article 8.1. The 
United  States ' position was that, as it believes itself to have acted in conformity with Article 8.1, it 
did not have an obligation to compensate China under Article 8.1. China asserted that Article 8.1 
requires compensation regardle ss of the legality of the measure. Further, as the consultation 
period stipulated in Article 8.2 has now ended and as the United States ' safeguard measure, under 
Article 8.3, was not "taken as a result of an absolute increase in imports" and in "comform[it y] to 
the provisions of [the Safeguard Agreement]," China has the right to apply countermeasures by 
withdrawing "substantially equivalent concessions or other obligations under GATT 1994." As the G/L/1217 • G/SG/164  
 
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  period set forth under Article 8.2 for Article 12.3 consulta tions has now expired, China has a right 
to apply these countermeasures so long as it does so thirty days after providing notice to the 
Council for Trade in Goods of its proposed suspension of concessions and other obligations and the 
Council for Trade in Goods does not object.  
 
Additionally, the United States stipulates that the 90 -day period set forth in Article 8.2 of the 
Safeguards Agreement and Article XIX:3(a) of the General Agreement on Tariffs and Trade 1994 
shall be considered to expire on 7 Febru ary 2021. The extension of this 90 -day period in no way 
prejudices the right of China to apply the countermeasures pursuant to its rights afore described. 
China took no position with respect to this extension.   
 
 
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