. /.   WORLD TRADE  
ORGANIZATION  G/SG/Q2/IDN/1 
21 April 2011 
 (11-2102) 
Committee on Safeguards Original:   English 
 
 
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT 
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION 
AND THE REASONS FOR IT 
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT 
THEREOF CAUSED BY INCREASED IMPORTS  
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF 
THE AGREEMENT ON SAFEGUARDS 
 
INDONESIA 
 
Questions Posed by INDIA Regarding  
Notifications of INDONESIA1 
 
(Cotton Yarn Other Than Sewing Thread ) 
 
  The following communication, dated 20 April 2011, is being circulated at the request of the 
Delegation of India. 
 
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 With reference to Indonesia's Notification on Safeguard actions circulated vide document 
G/SG/N/6/IDN/11 dated 16 July 2010, G/ SG/N/8/IDN/4 dated 20 January 2011 and 
G/SG/N/10/IDN/4 dated 17 February 2011,  India raises the following questions: 
 1. Under Article 4.2(a) of the Safeguards Agreement, the competent authority has to 
mandatorily evaluate all relevant factors of an objective and quantifiable nature having a bearing on 
the situation of that industry.  It is seen from the figures given in notification G/SG/N/IDN/4 dated 
20 January 2011 that the volume of imports of th e product under investigation decreased in 2009, 
compared to previous years.  Productivity also incr eased in 2009 compared to previous years.  Thus, 
Indonesia seems to have violated the obligation of Article 4.2(a) of the Safeguards Agreement by 
failing to address all relevant factors that must be covered as evidence of serious injury.  
Consequently, Indonesia has failed to establish a ca usal link between increased imports and serious 
injury or threat thereof as required under Ar ticle 4.2(b) of the Safeguards Agreement. 
                                                     
 
1 G/SG/N/6/IDN/11, G/SG/N/8 /IDN/4 and G/SG/N/10/IDN/4. G/SG/Q2/IDN/1 
Page 2  
 
  2. Article 12.3 of the Safeguards Agreement also provides that a Member proposing to apply or 
extend safeguard measures shall be provided with adequate opportunity for prior consultation with 
those Members having a substantial interest as e xporters of the product concerned with a view to 
exchanging views on the measure.  Indonesia's Notification G/SG/N/10/IDN/4 dated 
17 February 2011 proposing to appl y safeguard measures has been issued without prior consultation 
with the Members having a substa ntial interest as exporters of the product concerned.  Thus, 
Indonesia appears to have violated pr ovisions of Article 12.3.  Indon esia has also violated Article 12.5 
in not holding consultations and notifying the result of such consultation to WTO. 
3. Article 8.1 provides that a Member applying a saf eguard measure shall endeavour to maintain 
a substantially equivalent level of concessions a nd other obligations in accordance with paragraph 3 
of Article 12.  Indonesia has failed to comply with this requirement. 
4. Article 3 provides that a Member may appl y a safeguard measure only following an 
investigation pursuant to the established proce dure.  Indonesia has not followed the prescribed 
procedure as pointed out in the above paragraphs. 
Indonesia is requested to clarify its position on the above points. 
 
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