G/SG/Q2/ZMB/2  
 
21 June 2016  
(16-3352)  Page: 1/4  
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT 
ON SAFEGUARDS ON INITIATI ON OF AN INVESTIGATION 
AND THE REASONS FOR IT 
 
NOTIFICATION UNDER ARTICL E 12.4 OF THE AGREEMENT 
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL 
SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6 
REPLIES TO QUESTIONS1 POSED BY THE UNITED STATES 
REGARDING THE NOTIFICATION OF ZAMBIA2 
(Flat - rolled products of iron, non - alloy steel, 
trailers and semi - trailers) 
The following communication, dated 17 June 2016, is being circulated at the request of the 
Delegation of Zambia. 
 
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Question 1 
Section 1 of the notification notes the imp osition of provisional safeguards. However, 
the form of the provisional measure is not co ntained in the notification. Please identify 
the type of measure that is being applied an d, if a tariff increase, the amount of the 
tariff increase. 
Reply 
In line with Article 6 of the WTO Agreement on Safeguards, which specifies that 'Such measures 
(Provisional Safeguard Measures) 'should take the form of tariff increase', the type of measures applied in this case is tariff increase.  
Question 2 
Also, with respect to the imposition of provisional measures, Article 6 of the WTO 
Agreement on Safeguards (Safeguards Agreement) provides that a Member taking a provisional safeguard measure may do so only  "[i]n critical circumstances where delay 
would cause damage which it would be difficu lt to repair ... pursuant to a preliminary 
determination that there is clear evidence that increased imports have caused or are 
threatening to cause serious injury." In it s notification, Zambia does not indicate 
whether it made such a preliminary determ ination. Please indicate whether Zambia 
made such a determination, and if so the basis for such a determination. 
                                               
1 G/SG/Q2/ZMB/1. 
2 G/SG/N/6/ZMB/1–G/SG/N/7/ZMB/1 (dated 5 October 2015). G/SG/Q2/ZMB/2 
 
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  Reply 
This is to confirm that the provisional safeguard measures were imposed, following a preliminary 
determination of the products in question based on  an assessment of the quantities imported into 
Zambia, absolute or relative to domestic production; and a determination as to whether under 
such conditions, the products in question caused or threatened to cause serious injury to domestic 
industry that produce like or directly competing products. It was necessary to institute the provisional measures due to the critical circumstances prevailing at the time. If no immediate 
action had been taken, that would have caused damage which would have been difficult to repair.  
Question 3 In the notification, Zambia did not address a number of the factors listed in 
Article  4.2(a) of Safeguards Agreement, includin g: the rate and amount of the increase 
in imports, changes in the level of sales, production, productivity , and employment, or 
provide quantitative information on any of  these factors. Please explain why this 
information was not included. Also, Zambia  did not provide evidence regarding the 
existence of a causal link between increased im ports and serious injury or threat thereof 
in its notification. Please explain why such evidence was omitted. When will Zambia be 
providing updated information to reflect thes e obligations in the Safeguards Agreement 
and in the Committee's notification format?
3 
Reply 
Zambia was guided by Article 6 of the Safeguard Agreement which states that '… the subsequent 
investigation referred to in paragraph 2 of Article 4 does not determine that increased imports 
have caused or threatened to cause serious injury to a domestic industry….' 
According to this Article, steps in Article 4.2 are expected to be done during the full investigation 
to determine the increase in imports and the ca usal link between increased imports and serious 
injury or threat thereof. It was therefore not an omission. 
The outcome of the full investigation will be  communicated once the report is finalised. 
Question 4 
For the factors that Zambia states that it did consider (increasing trend in imports, 
capacity utilization, industry share of consumption and demand, and profitability), 
please indicate the data and time period cons idered in concluding that the requirements 
in Article 6 for taking a provisional measure were met.  
Reply 
Although Article 6 of the Safeguard Agreement does not state requirements for undertaking a 
preliminary determination, which is a basis for instituting a provisional safeguard measure, the 
reference period used is 2011 to 2013. As stated in Article, requirements for taking a provisional 
measure are: 
 critical circumstances where delay would cause damage 
 the duration of the provisional measure shall not exceed 200 days, during which period 
the pertinent requirements of Articles 2 through 7 and 12 shall be met  
                                               
3 See G/SG/1/Rev.1-G/SG/N/6/Rev.1-G/SG/89 (dated 5 November 2009). G/SG/Q2/ZMB/2 
 
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  Zambia, upon instituting the provisional measure (to last 180 days), made a notification to the 
Committee on Safeguards under Article 12.1 (a) and 12(4) and initiated consultations immediately. The Safeguard measures Committee of Zambia will, in accordance with Article 3 (1), publish a report setting forth their findings and reasoned conclusions reached on all pertinent 
issues of fact and law. The reference period used is 2011, 2012 and 2013. 
Question 5 Section 2 of the notification states that the "investigations" were initiated on 10 July 
2015, which seems to indicate that there is mo re than one active investigation. First, 
please clarify how many investigations th e notification covers. If there are two 
(or more) active investigations, please clarif y the products included, and scope of, each 
investigation. 
Second, the investigation(s) were initiated in July, but the notification was not 
submitted until October 2015. Arti cle 12.1 of the Safeguards Agreement provides that a 
Member "shall immediately notify" the Commi ttee when it initiates an investigation. 
As has been pointed out by Members during  past Committee meetings, notifications are 
oftentimes the only way that Members and in terested parties know of the existence of 
an investigation, so delayed notifications ma y affect the ability of exporters and other 
interested parties to prepare and present evid ence and views. Please  explain why it took 
Zambia nearly three months to notify both the initiation of its investigation and its 
decision to apply a provisional safeguard measure. 
Reply 
Kindly note that there is only one investigation being undertaken covering goods as indicated in 
the notification to the WTO.  
Question 6 
Article 12.4 of the Safeguards Agreement states that "[a] Member shall make a 
notification to the Committee on safeguards before taking a provisional safeguard 
measure referred to in Article 6" (emphasis added) and that "[c]on sultations shall be 
initiated immediately after the measure is  taken." Please explain how Zambia's 
application of provisional measures (starting in July 2015) and the notification (made in 
October 2015) is consistent with this obligat ion. Also, please identify the period when 
consultations will take place, as provided  for under Article 12. 4 of the Safeguards 
Agreement. 
Reply 
Zambia delayed in notifying the member because it was undertaking safeguards measures for the 
first time, hence lacked the capacity to deliver on time. With regards to the consultations, the 
notification submitted to the WTO Secretariat, indicates the period of investigations and consultations.  
Question 7 
Section 3 of the notification states that th e period of investigation is 10 July 2015 to 
10 January 2016. In other words, the beginning of the period of investigation coincides 
with the date of initiation. Normally, wh en an investigating authority conducts a 
safeguard investigation, it looks at past behaviour to determine whether a product is 
being imported into its territory in such increased quantities so as to cause serious 
injury to its domestic industry. Please expl ain why Zambia has departed from this norm. G/SG/Q2/ZMB/2 
 
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  Reply 
There is no departure from the norm, as 10 July 2015 to 10 January 2016 is the period for the 
provisional safeguard (180 days) to facilitate investigations. The investigation was based on past data to determine whether the products in question were imported into Zambia in such increased 
quantities so as to cause serious injury to its domestic industry. 
Question 8 The Committee's document regarding the format  for notifications states that "Members 
are encouraged to attach, in an electron ic form, publicly available document(s) 
containing the relevant decision(s) made by  the competent authority. This document 
may be in the original language of the Member, even when the language is not one of the official languages of the WTO. The docume nt will neither be translated nor circulated 
to the Committee, but will be made availabl e by the Secretariat to Members requesting 
it." In its notification, Zambia indicate s that a decision has been made by the 
investigating authority to im pose a provisional safeguard measure. When will Zambia 
submit the relevant decision discussing th e reasoning behind its determination to the 
Secretariat? 
Reply 
Zambia was guided by Article 12(a) of the Agreem ent on Safeguard with regard to the provisional 
measure applied. Information regarding investigations and the findings will be submitted once the reports are finalised. 
 
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