G/SG/Q1/NZL/3  
 
6 July 2015  
(15-3458)  Page: 1/3  
Committee on Safeguards  Original: English  
 
 NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLE 12.6 OF THE AGREEMENT 
REPLIES TO QUESTIONS1 POSED BY INDIA REGARDING 
THE NOTIFICATION OF NEW ZEALAND2 
The following communication, dated 2 July 2015, is being circulated at the request of the 
Delegation New Zealand. 
 
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India thanks New Zealand for its notification of Trade (Safeguard Measures) Act, 2014,  and would 
like to pose the following questions for the purpose of clarity regarding the notified law:  
Question 1 
 New Zealand may please clarify if there are any rules or regulations that have been 
issued in relation to the implementation of Sections 14, 19 and 23 of New Zealand's 
Safeguard Act. In particular, do the above rules or regulations carry the requirements: 
 
a. That imports exempted from the safeguard measure are not considered in 
the determination of serious injury; or 
 
b. When imports that are exempted from the safeguard measure are 
considered in the determination of serious injury, the competent authority 
establishes explicitly through a rea soned and adequate explanation that 
imports from sources outside the free trade areas alone satisfied the 
conditions for the application of a safeguard measure. 
 Could New Zealand refer to / provide inform ation about such rules or regulations? 
 
Reply: 
 
There are no rules or regulations that have been  issued in relation to the implementation of 
Sections 14, 19 and 23 of New Zealand's Safeguards Act.  
 Question 2 
 
Please explain how New Zealand considers that  the exemption of certain goods from the 
imposition of a safeguard measure is within the scope of Article 2.2 of the Safeguards 
Agreement which mandates that a safeguard me asure shall be applied irrespective of its 
source. 
 Reply: 
 New Zealand considers that exempting certain imports under sections 14(2), 19(3) and 23(3) of our Act is consistent with our obligations under Article 2.2 of the Safeguards Agreement provided 
                                               
1 G/SG/Q1/NZL/1. 
2 G/SG/N/1/NZL/2. G/SG/Q1/NZL/3 
 
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  the concept known as "parallelism" is applied to the analysis of whether increased imports have 
caused serious injury to a domestic industry.   Question 3 
 
Please explain how an exemption provided to goods imported from a certain country 
subsequent to the imposition of a safegu ard measure would be consistent with the 
concept of parallelism. 
 Reply: 
 
Under the concept of parallelism, provided the im ports from the exempted countries are excluded 
from an analysis of whether increased imports have caused or threatened serious injury, the exemption is consistent with Article 2.2 of the Safeguards Agreement. The concept of parallelism 
has been upheld by the Appellate Body in a number of WTO DSU cases. 
 Question 4 
 
Sections 14(2)(a), 19(3)(a) and 23(3)(a) of New Zealand's Safeguard Act provide that one of the grounds for exempting goods fr om certain countries from the safeguard 
measure is if the Minister is satisfied that  the measure is "necessary to comply with 
New Zealand's obligations as a party to th e WTO Agreement or otherwise". New Zealand 
would like to clarify the meaning of th e term "otherwise" as used herein. 
 
Reply: 
 
The term " otherwise"  is intended to capture the situation where either an unqualified exemption is 
provide for, or a non-injury exemption is provided for, in a free trade agreeement between 
New Zealand and one of our trading partners.  Question 5 
 
Sections 14(2)(b), 19(3)(b) and 23(3)(b) of New Zealand's Safeguard Act provide that one of the grounds for exempting goods fr om certain countries from the safeguard 
measure is if the Minister is  satisfied that the measure " will further New Zealand's 
international relations or trade goals ". Please provide the nature of the aforesaid 
"international relations or trade goals " in pursuit of which goods from certain countries 
may be exempted from safeguard measure. 
 Reply: 
 
The term "international relations or trade goals" allows an exemption to be given to a trading 
partner which we wish to maintain good relations with. This could include for example managing a delicate stage in a trade negotiation process. 
 
Question 6  
New Zealand would also like to clarify whether the Minister is mandated to make public 
the grounds on the basis of which exemptio ns are granted to certain countries from 
safeguard measures under Sections 14(2), 19(3) and 23(3) of Ne w Zealand's Safeguard 
Act. In addition, please confirm if the afores aid decision of the Minister may be appealed 
before any higher authority. 
 Reply: 
 The Minister is not mandated to make public the grounds which exemptions are granted to certain countries under sections 14(2), 19(3) and 23(3). However, these grounds will be detailed in a 
Report by the Chief Executive (on the safeguard investigation) which is notified and made 
available to interested persons under the notification requirements contained in the Act (section 7). Notificiation of this Report is subject to the confidentiality of information and other information that the Chief Executive would be likely to withhold if it were requested under 
New Zealand's Official Information Act 1982. G/SG/Q1/NZL/3 
 
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  All decisions by the Minister (including making public decisions the grounds which exemptions are 
granted to certain countries) are reviewable under the New Zealand's Judicature Act 1908 and its amendments.  
 
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