WORLD TRADE  
ORGANIZATION  G/SG/N/9/PER/2 
2 November 2009 
 
 (09-5440) 
Committee on Safeguards Original:   Spanish 
  
 
INFORMATION TO BE NOTIFIED TO THE COMMITTEE WHERE 
A SAFEGUARD INVESTIGATION IS TERMINATED 
WITH NO SAFEGUARD MEASURE IMPOSED 
 
PERU 
 
(Cotton yarn
) 
   The following notification, dated 27 October 200 9, is being circulated at the request of the 
delegation of Peru. 
 
_______________ 
 
  In accordance with the notification format approved by the Committee on Safeguards at its 
special meeting on 6 May 1996 (document G/SG/2 ), Peru submits herewith Supreme Decree 
No. 016-2009-MINCETUR of 15 August 2009, published in the Official Journal El Peruano on 
17 August 2009, whereby the Multisectoral Commissi on referred to in Article  5 of Supreme Decree 
No. 020-98-ITINCI, as amended, issues the decision no t to apply the general safeguard measure on 
imports of cotton yarn. 
 
1. Specify the product subject to investigation . 
  Imports of cotton yarn under tariff headi ngs 52.05 and 52.06 of th e NANDINA national tariff. 
 
2. Identify the WTO document containi ng the notification of initiation.  
 
 G/SG/N/6/PER/2 of 25 March 2009. 
 
3. Specify the date on which the investigation was terminated.  
  17 August 2009. 
 
4. Identify the reason(s) for termination (e.g . petition withdrawn;  negative determination 
of injury;  negative determination of causation, etc.).  
  The Multisectoral Commission, which decides wh ether or not general safeguard measures are 
to be applied, concluded that the investigating au thority's report did not provide sufficient information 
to demonstrate reliably that domestic yarn and im ported yarn constitute like or directly competitive 
products, in accordance with Article 2.1 of the WTO Agreement on Safeguards and domestic law. 
 G/SG/N/9/PER/2 
Page 2  
 
  5. Provide the reference for the published notice of termination (name of notifying 
Member's official journal, date and page  number at which notice appeared in the 
journal). 
 
 Official Journal El Peruano of 17 August 2009:  http://www.elperuano.com.pe/
 
 
6. Provide any other information that the notifying Member may consider relevant. 
 
 Supreme Decree No. 016-2009-MINCETUR setting forth the decision not to apply the 
general safeguard measure on imports of  cotton yarn is attached herewith. 
 
_______________ 
 
  G/SG/N/9/PER/2 
 Page 3 
 
 
   
Peru Ministry of Foreign  
Trade and Tourism Vice-Ministry of  
Foreign Trade National Directorate of 
Multilateral Affairs and 
International Trade 
Negotiations 
 
 
DECISION NOT TO APPLY THE GENERAL SAFEGUARD MEASURE 
ON IMPORTS OF COTTON YARN 
 
SUPREME DECREE 
NO. 016-2009-MINCETUR 
 
 
 THE PRESIDENT OF THE REPUBLIC 
 
 WHEREAS: 
 
 By virtue of Legislative Decision No. 26407, the Legislature incorporated into domestic law the Agreement Establishing the World Trade Organization (WTO) and the multilateral trade 
agreements contained in the Final Act of the Uruguay Round, signed in Marrakesh, Morocco, on 
15 April 1994; 
  The aforementioned multilateral trade agreem ents include the Agreement on Safeguards, 
which was incorporated into domestic law thr ough Supreme Decree No. 020-98-ITINCI, as amended; 
 
 Resolution No. 036-2009/CFD-INDECOPI provide d for the initiation of a general safeguard 
investigation into imports of cotton yarn under tariff headings 52.05 and 52.06 of the NANDINA 
national tariff;   Report No. 043-2009/CFD-INDECOPI was issued on 17 July 2009 within the framework of the general safeguard investiga tion into imports of cotton yarn under the above-mentioned tariff 
headings; 
  The Multisectoral Commission referred to in Article 5 of Supreme Decree No. 020-98-ITINCI, as amended, w as convened on 12 August 2009; 
 
 After examining the said report and exchanging views, the Ministers of the Multisectoral 
Commission concluded that the document did not provide sufficient information, inter alia , on the 
type of market and the characteristics of the product, to demonstrate reliably that domestic and 
imported cotton yarn constitute like or directly comp etitive products, in accordance with Article 2.1 of 
the WTO Agreement on Safeguards and Article 3 of Supreme Decree No. 020-98-ITINCI, as 
amended, thus making it impossible to carry out a comprehensive evaluation of the investigation 
conducted by INDECOPI; 
  Article 5 of Supreme Decree No. 020-98-ITINCI, as amended, stipulates that the decisions 
taken by the Multisectoral Commission in respect of the application or non-application of measures shall be made official by Supreme Decree of the Ministry of Foreign Trade and Tourism, endorsed by 
the Ministers of the Multisectoral Commission; 
 G/SG/N/9/PER/2 
Page 4  
 
   In accordance with Article 5 of Supr eme Decree No. 020-98-ITINCI, as amended; 
 
DECREES: 
 
Article 1 - Safeguard measure 
 
 The general safeguard measure on imports of cotton yarn shall not be applied, the reason 
being that Report No. 043-2009/CFD-INDECOPI of the INDECOPI Dumping and Subsidies 
Commission does not provide sufficient information, inter alia , on the type of market and the 
characteristics of the product, to demonstrate reliably that domestic and imported cotton yarn 
constitute like or directly competitive produc ts, in accordance with Article 2.1 of the 
WTO Agreement on Safeguards and Article 3 of Supreme Decree No. 020-98-ITINCI, as amended. 
 
Article 2 - Endorsement 
  This Supreme Decree shall be endorsed by the Minister of Foreign Trade and Tourism, the 
Minister of the Economy and Finance, and the Minister of Production.   Done at Government House, Lima, on the fifteenth day of the month of August of the year two thousand and nine.   ALAN GARCÍA PÉREZ  Constitutional President of the Republic 
 
 MARTÍN PÉREZ MONTEVERDE 
 Minister of Foreign Trade and Tourism 
 
 LUIS CARRANZA UGARTE 
 Minister of the Economy and Finance 
 
 MERCEDES ARAOZ FERNANDEZ 
 Minister of Production 
 
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