WORLD TRADE  
ORGANIZATION  G/SG/Q1/NIC/1 
9 April 2008 
 (08-1624) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 12.6 OF THE AGREEMENT 
 
Questions Posed by the UNITED STATES
  
Regarding the Notification of NICARAGUA1 
 
 
 The following communication, dated 7 April 2008, is being circulated at the request of the Delegation of the United States.    
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  The United States thanks Nicaragua for its notif ication and poses the following questions with 
regard to Nicaragua's Notificati on of Laws, Regulations and Admi nistrative Procedures Relating to 
Safeguard Measures, Resolution No. 194-2007 (COMIECO-XLIV) of 24 April 2007, Central 
American Regulations on Safeguard Measures (hereinafter Regulations ). 
 
Question 1 
 
Is the WTO Agreement on Safeguards self impl ementing under Nicaraguan law?  Also, in 
potential cases of conflict between the WTO Agreement on Safeguards and the Regulations  which 
legislation would have precedent?    
Question 2 
 
After reviewing the Regulations , we would ask that Nicaragua please elaborate on the 
organizational relationship and process of trade remedy proceedings between the investigating 
authority, Directorate-General of Integrating of the Ministry or Secretariat of the Economy and the 
Council for Economic Integration.    
Question 3 
 
Article 1 (Definitions) of the Regulations  define the investigating authority as "The 
Directorate or Directorate-General of Integration of  the Ministry or Secretariat of the Economy or, as 
the case may be, the Directorate competent for ma tters pertaining to Central American economic 
integration in each State Party, or  the technical unit with responsibility for investigating situations that 
may warrant the application of the safeguard measu res provided for in these Regulations".  However, 
it is not entirely clear who the investigating auth ority will be for a safeguard action, nor how the 
Secretariat for Central American Economic Integr ation (SIECA) will function with regards to a 
safeguard investigation.  Please clarify whether ther e is one investigating authority across the Central 
American Tariff and Customs Region or whether each country will have its own investigating 
authority.  In addition, please clarify how SIECA wi ll function in the safeguards process.  What role 
                                                     
 
1 G/SG/N/1/NIC/2.   G/SG/Q1/NIC/1 
Page 2  
 
  will SIECA play with regards to initiation of safegua rds investigations and determining injury and the 
causal link between imports and injury?    
Question 4 
 
Article 2 (Object of the Regulations) and Article  4 (Substantive and procedural rules) explain 
that the Regulations  "set out the provisions for the [Safe guards Agreement]", but that substantive 
aspects "not covered by [the Regulations ] shall be determined by the pr ovisions of the [Safeguards 
Agreement]".  Are these provisions to be interprete d as creating a hierarchy such that in any conflict 
between the Regulations  and the WTO Agreement on Safeguards, the Regulations  prevail?   
 
Question 5 
 
Please explain how Article 20 of the Regulations is consistent with Article 6 of the WTO 
Safeguards Agreement, including with respect to the requirement in Article 6 that there be "clear 
evidence" that increased imports have caused or  are threatening to cause serious injury.   
 
Question 6 
 
Article 23 (Verification of information) of the Regulations  notes that the investigating 
authority may conduct verification visits as it de ems necessary.  Given the WTO Agreement on 
Safeguards is silent on the issue of verification vi sits, can Nicaragua please explain the circumstances 
that would result in a verification being conducted?    
Question 7 
 
Article 32 (Duration of safeguard measures) of the Regulations  states that a safeguard may be 
in place for a period not to exceed four years.  However, there is no provision of the Regulations  that 
states that a safeguard measure must be progressi vely liberalized throughout its duration as per 
Article 7, paragraph 4 of the WTO Agreement on Safeguards.  Can Nicaragua please clarify that it will progressively liberalize safeguard meas ures through their respective durations?   
 Question 8  
 
Article 32 (Duration of safeguard measures) of the Regulations  does not appear to address the 
application of a safeguard measure to an import wh ich has previously been subject to a safeguard 
measure in accordance with Article 7, paragraphs  5 and 6 of the WTO Agreement on Safeguards.  
Please clarify how Nicaragua will apply safeguards in  situations in which a product was previously 
subject to a safeguard measure.    
Question 9  
 
Article 37 (Review of the measure) of the Regulations  states:  "A safeguard measure that has 
been adopted may be reviewed, at the request of  a party or ex officio, at any time during its 
application, in accordance with the provisions of the Agreement".  However, there is no discussion 
about a mandatory review for a safeguard measure the duration of which exceeds three years as per 
Article 7, paragraph 4 of the WTO Agreement on Safeguards.  Please clarify that reviews will be 
mandatory if they exceed a three year period as per Article 7, paragraph 4 of the WTO Agreement on 
Safeguards.  Please confirm that Nicaragua will onl y withdraw a safeguard measure or increase the 
pace of liberalization through these reviews, and will not use reviews to decrease the pace of 
liberalization.    G/SG/Q1/NIC/1 
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  Question 10 
 
Article 38 (Publication) of the Regulations  notes that resolutions regarding the initiation of a 
safeguard investigation and the imposition of pre liminary and/or final measures shall be published 
only once and at the cost of the interested party.  Please explain whether Nicaragua intends to require 
interested parties to pay the cost of publishing the r esolutions for the investigating authority;  and, if 
so, what interested parties will be required to pay.   What would happen if an interested party refuses 
to pay?  Please identify which national newspapers  would publish these notifications, as well as where 
the Official Journal of the Central American Integration System can be located online.   
 Question 11  
 
Article 39 (Remedies) of the Regulations  states that "The remedies provided for in the 
domestic legislation of each State Party shall lie ag ainst resolutions issued by national authorities".  
Please clarify whether this means that the laws and re gulations issued by Nicaragua with regard to the 
provision of remedies are now superseded by these Regulations .   
 
Question 12  
 
Article 41 (Amendments to the Regulations) of the  Regulations  states that "Each State Party 
shall submit a semi-annual report to the Executiv e Committee for Economic Integration, through 
SIECA, on the implementation of this instrument".   Please clarify how and where these semi-annual 
reports will be made available to interested parties.     
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