WORLD TRADE  
ORGANIZATION  G/SG/N/14/BRA/3 
16 August 2010 
 (10-4345) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE  
AGREEMENT ON SAFEGUARDS 
(EXTENSION OF THE EXISTING MEASURE)  
 
BRAZIL 
 
(Desiccated coconut
) 
   The following communication, dated 12 August 2010,  is being circulated at the request of the 
Delegation of Brazil.   
 
_______________  
 
  Brazil expresses its readiness, in conformity with Article 12 of the WTO Agreement on 
Safeguards, to hold prior consultations with those Members having a substantial interest as exporters 
of the product concerned, and proposes that such  consultations take place until the 20 August 2010.   
 1. Provide evidence, citing relevant data and the applicable period of investigation  of serious 
injury or threat thereo f caused by increased imports  
 
The review analysed the data covering the pe riod from April 2006 to March 2009 (corrected).  
Since this is a review of a measure, both analysis  of serious injury and threat thereof caused by 
increased imports do not apply.    2. Provide information on whether there is an ab solute increase in imports or an increase in 
imports relative to domestic production (please see also Article 2.1 for the context)  
 
Increase of 46.6 per cent on imports of desiccated  coconut in kilograms.  The increase in 
imports is consistent with the ob ligation of progressive liberalization of the measure, applied in the 
form of a quantitative restriction.   
 
3. Provide the precise description of the product involved  
  Provide the Harmonized System numbers under whic h the product enters at least at a 6-digit 
HS level, and at a sub-national leve l (e.g. 8-digit HS, 9-digit HS or 10-digit HS) if practicable.  (The 
HS codes will be provided fo r reference purposes only.)   
  The product subject to the safeguard measure is the desiccated peeled coconut, whether or not 
grated, classified in the item 0801.11.10 of the Mercosur Common Nomenclature.   G/SG/N/14/BRA/3 
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  4. If the final measure replaces a provisional measu re, or if a final measure is extended, a 
Member is encouraged to provide a written d escription of any part of the imported product 
that will no longer be subject to the measur e and the Harmonized System numbers under 
which it enters at least at a 6-digit level, and at  a sub-national level (e.g., 8-digit, 9-digit or 10-
digit level) if practicable1 
 
Not applicable.   
 5. Provide precise description of the proposed measure
 
 
 Extension of the safeguard measure in the form of quantitative restriction on imports of 
desiccated coconut, classified under the tariff line 0801.11.10 of Mercosur Co mmon Nomenclature.   
 6. Provide proposed date of introduction of the measure
 
 
1 September 2010. 
 7. Provide expected duration of the measure
 
 
2 years. 
 
8. For a measure with a duration of more than three years, provide the proposed date for the 
review (under Article 7.4) to be held not later th an the mid-term of the measure, if such a date 
for the review has already been scheduled  
 
Not applicable. 
 
9. If the expected duration is over one year , provide expected timetable for progressive 
liberalization of the measure  
  The quotas are set for 2 periods of 12 months, starting on 1 September 2010, and liberalized in 5 per cent of the quota for the first period as follows:  5770 tons in the first period 
(1 September 2010 to 31 august 2011) and 6058 t onnes in the second period (1 September 2011 to 
31 August 2012).  10. If the notification relates only to a finding of serious injury or threat thereof, and does not 
relate to a decision to apply or extend a safeguard measure  
 
(i) provide the deadlines for interested par ties to comment or any other procedures 
relevant to the decision to apply the measures, and 
(ii) provide information regarding procedur es for prior consultation with those Members 
having a substantial interest as expor ters of the product concerned. 
 
Not applicable.   
 11. If the measure is bei ng extended, also provide
 
  (i) evidence that the industry concerned is  adjusting and that the safeguard measure 
continues to be necessary to prev ent or remedy serious injury 
 
                                                     
 
1 The HS codes will be provided for reference purposes only.    G/SG/N/14/BRA/3 
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  • The cultivated area (desiccated coconut) increased 5,5 per cent and the production increased 
3,4 per cent.  Workforce increas ed as a result of the incremen t in the cultivated area.   
 
• Growth on apparent domestic c onsumption was observed.  The reduction in the share of the 
domestic industry in the apparent  consumption is consistent with the obligation of progressive 
liberalization of the measure.   
 
• The sales increased 3,4 per cent in quantity.  Ne vertheless, price decreased and consequently 
did income.  The producer prices recovered from P2 to P3, but in P3 prices did not reach the 
level in P1. 
 
• The unitary cost and the use of fertilizer decr eased due to innovations, based on the results of 
researches.   
 
 (ii) reference to the WTO document that no tified the initial application of the measure 
  G/SG/N/6/BRA/4.     (iii) duration of the measure from initial a pplication till the date at which it will be 
extended 
  8 years.  At the end of the period of the proposed extension, the measure will have been applied for 10 years.    
 and, 
  (iv) precise description of the measure in place prior to the date of extension (in this 
context, please note that the last sentence of Article 7.4 states that:  "A measure extended under paragraph 2 shall not be more restrictive than it was at the end of the initial period, and should continue to be liberalized".) 
 
 The original measure was applied in the fo rm of a quantitative restriction and has been 
progressively liberalized.  The previous measure (which had already been extended) established 
quotas for four periods of twelve months, starting on 1 September 2006, and liberalized by 5 per cent, 
10 per cent and 15 per cent of the quota for the first period, as follows:  4.778 tons in the first period 
(1 September 2006 to 31 August 200 7), 5.017 tonnes in the second period (from 1 September 2007 to 
31 August 2008), 5.256 tonnes in the third period (from 1 September 2008 to 31 August 2009) and 
5.495 tonnes in the fourth term of the extended measure (1 September 2009 to 31 August 2010).   
 12. If the notification relates to a decision to apply or extend a safeguard measure, Members are 
encouraged to provide the following information  
 
 (i) The major exporting Members of imports of the product involved   Indonesia, Philippines and Vietnam.    
 (ii) If there are any exporting Members to which the measure does not apply for any 
reason other than the application of Article  9.1, the names of such exporting Members 
and reasons for non-application of the measure 
 
Argentina, Paraguay and Uruguay were exclude d from the safeguard measure, because they 
are members of MERCOSUR.    G/SG/N/14/BRA/3 
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  13. Members are encouraged to attach, in an electronic form, publicly available document(s) 
containing the relevant decision(s) made by the co mpetent 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 document will neither be translated nor circulated to the Committee, but will be made 
available by the Secretariat to Members requesting it. 
 
 
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