. /.   WORLD TRADE  
ORGANIZATION  G/SG/Q2/ECU/13 
6 December 2010 
 (10-6558) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION UNDER ARTICLE 12.1(a) OF THE AGREEMENT 
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION 
PROCEDURE AND THE REASONS FOR IT 
 
Replies to the Questions Posed by COLOMBIA
1 
Regarding the Notification by ECUADOR2 
 
(Windshields ) 
  
 The following communication, dated 2 December 2010, is being circulated at the request of 
the delegation of Ecuador.  
__________  
 
 Question 1 
 
 What circumstances were evaluated by Ecua dor's investigating authority to determine 
that the increased imports were a result of th e "unforeseen developments" provided for in 
Article XIX:1(a) of the GATT 1994 and which are a key element in the ad option of safeguard 
measures?  
Reply
 
  Article XIX of the GATT 1994 (Emergency Action on Imports of Particular Products) 
stipulates that the increased imports must be a result of "unforeseen developments and of the effect of 
the obligations incurred by a contracting party unde r this agreement, including tariff concessions … ". 
  The term "unforeseen developments" is not e xpressly defined.  However, the Working Group 
responsible for examining the complaint of Czechoslovakia concerning the withdrawal by United States of concessions stated that "unforeseen devel opments" were developments occurring after the 
negotiation of the relevant tariff concession which it would not be reasonable to expect that the 
negotiators of the country making the concession could and should have  foreseen at the time when the 
concession was negotiated.
3 
  At the same time, "emergency action" is the title of Article XIX of the GATT, which leads us 
to believe that these are measures that Members ma y adopt when a production sector is being affected 
by imports of like goods and it is necessary to provide  temporary "protection" so that the sector can 
adjust to the new competitive conditions resulting from the growing imports.  
                                                     
 
1 G/SG/Q2/ECU/12. 
2 G/SG/N/6/ECU/8. 
3 GATT/CP/106, Report adopted on 22 October 1951, GATT/CP.6/SR.19. page 10, paragraph 9. G/SG/Q2/ECU/13 
Page 2  
 
   According to the applicant company, "the di sproportionate increase in imports of the product 
originating in Colombia is due, among other causes, to a loss of share in th e Venezuelan market by 
Colombia following the deterioration of trade rela tions between Colombia and Venezuela … ", which 
could be considered as an unforeseen situa tion that affected Ecuadorian production. 
 
 In order to verify the applicant's claims, data  on exports of windshields from Colombia to the 
Venezuelan market were examined .  This information, which app ears in the table below, shows a 
significant reduction in 2009, amounting to 78.82 per cent in terms of weight.  The increase in the 
f.o.b. value suggests that exports concerned mainly armoured windshields, whose price is 
considerably higher than "normal" windshields. 
 
Exports from Colombia to Venezuela 
Subheading 7007.21.00.00 
Year Quantity Variation Net weight (kg.) Variation F.o.b value (US$) Variation 
2007 172,434.0  2,207,615. 2  12,797,921. 8  
2008 200,773.0 16.43% 2,436,734. 4 10.38% 14,112,149. 210.27% 
2009 161,307.0 -19.66% 516,009.6 0-78.82% 18,344,930. 729.99% 
Source :  DIAN 
Prepared by: SCI 
 
Question 2 
 
 With reference to Articles 2 and 4 of the Agreement on Safeguards, what factors were 
evaluated by Ecuador's investigating authority to determine that imports into Ecuadorian 
territory took place under "such conditions" as to  cause or threaten to cause serious injury to 
the domestic manufacturing company CRILAMYT S.A.?  
Reply
 
  The price analysis carried out using informa tion submitted by the applicant and the analysis 
of windshield import prices show a downward tre nd, indicating the conditions in which the imports 
are being made, as a result of which the company is forced to reduce its market share.  The prices of 
the imported product are considerably lower than the prices of the domestic product, preventing the 
domestic industry from increasing its share in the domestic market.  
__________