WORLD TRADE  
ORGANIZATION  G/SG/Q1/CRI/5 
17 June 2008 
 (08-2824) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION OF LAWS AND REGULATIONS 
UNDER ARTICLE 12.6 OF THE AGREEMENT 
 
Replies to Questions Posed by the UNITED STATES
1 
Regarding the Notification of COSTA RICA2 
 
  The following communication, dated 6 June 2008, is being circulated at the request of the 
delegation of Costa Rica.  
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Question 1 
 
Is the WTO Agreement on Safeguards self-imp lementing under Costa Rican law?  Also, 
in potential cases of conflict between th e WTO Agreement on Safeguards and the Regulations  
which legislation would have precedent? 
 
Reply
 
 
 Yes, the WTO Agreement on Safeguards is self-implementing under Costa Rican law and 
would take precedence over the Central American Regulations on Safeguard Measures (hereinafter 
"the Regulations") in all subs tantive and procedural aspects not  covered by the Regulations, as 
provided for in Article 4 of the Regulations.  Both  legal instruments are implemented simultaneously 
and complement each other.  Question 2  
 
After reviewing the Regulations , we would ask that Costa Rica 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.  
 
Reply
 
  Each Member State of the Central American Economic Integration System has its own 
investigating authority in cases relating to safeguard  measures.  Under Article 35 of the Regulations, 
the Council of Ministers for Central American Economic  Integration shall be a pprised of and approve 
any resolutions issued by an investigating author ity which are to result in the application of 
provisional or definitive measures involving increased  duties.  To this effect, the investigating 
authority must transmit to the Secretariat for Ce ntral American Economic Integration (SIECA) a copy 
                                                     
 
1 G/SG/Q1/CRI/3. 
2 G/SG/N/1/CRI/4. G/SG/Q1/CRI/5 
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  of resolutions for the application of measures, in order that SIECA may convene the Council of 
Ministers for Central American Economic Integration so that it may be apprised of the case.  
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 competen t for matters 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 measures provided 
for in these Regulations".  However, it is not entirely clear who the investigating authority will 
be for a safeguard action, nor how the Secretaria t for Central American Economic Integration 
(SIECA) will function with regards to a safeguar d investigation.  Please clarify whether there 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 will function in the safeguards process.  What role will SIECA play with regards to 
initiation of safeguards investigations and determining injury and the causal link between 
imports and injury?  
 
Reply
 
 
For the time being there is no regional authority in charge of safeguard investigations in 
Central America.  Each country has its own inv estigating authority responsible for conducting such 
investigations.  Article 35 of the Regulations sti pulates that SIECA's only role is to convene the 
Council of Ministers for Central American Economic In tegration so that the latter may be apprised of 
and approve the resolutions of each country's inv estigating authority regarding the application of 
provisional or definitive safeguard measures. 
 
Question 4  
 
Article 2 (Object of the Regulations) and Ar ticle 4 (Substantive and procedural rules) 
explain that the Regulations  "set out the provisions for the [Safeguards Agreement]", but that 
substantive aspects "not covered by [the Regulations ] shall be determined by the provisions of 
the [Safeguards Agreement]".  Are these provision s to be interpreted as creating a hierarchy 
such that in any conflict between the Regulations  and the WTO Agreement on Safeguards, the 
Regulations  prevail?  
 Reply
 
 
Both legal instruments are self-implementing unde r Costa Rican law;  they are applied jointly 
and on a complementary basis.  
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.  
 
Reply
 
  Article 6 of the Agreement on Safeguards is applied, on a complementary and supplementary 
basis, in addition to the provisions of the Regulat ions, so that in order for provisional safeguard  G/SG/Q1/CRI/5 
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  measures to be imposed, there must be a positive pr eliminary determination of clear evidence that 
increased imports have caused or are threatening to cause serious injury to a domestic industry. 
 
Question 6  
 
Article 23 (Verification of information) of the Regulations  notes that the investigating 
authority may conduct verification visits as it  deems necessary.  Given the WTO Agreement on 
Safeguards is silent on the issue of verifica tion visits, can Costa Rica please explain the 
circumstances that would result in a verification being conducted?  
 Reply
 
  As explained in Article 23 of the Regulations, the purpose of such visits would be to verify 
the information submitted by interested parties during the investigation.  However, in order to ensure 
that such visits are effective, express agreement sh all first be obtained from the firms to be visited, 
which shall be duly advised of the general na ture of the information to be verified. 
 
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 mu st be progressively liberalized throughout 
its duration as per Article 7, paragraph 4 of the WTO Agreement on Safeguards.  Can 
Costa Rica please clarify that it will progressi vely liberalize safeguard measures through their 
respective durations? 
 Reply
 
  As explained above, the WTO Agreement on Safeguards is self-implementing under 
Costa Rican law.  The application of Article 7.4 of the Agreement would therefore be complementary and supplementary to that of Article 32 of the Re gulations, which means that any safeguard measure 
imposed will be subject to the progressive liber alization requirement dur ing its application. 
 
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 which has previously been subject 
to a safeguard measure in accordance with Article 7, paragraphs 5 and 6 of the 
WTO Agreement on Safeguards.  Please clarif y how Costa Rica will apply safeguards in 
situations in which a product was prev iously subject to a safeguard measure.  
 
Reply
 
 
 As explained above, the WTO Agreement on Safeguards is self-implementing under 
Costa Rican law.  The application of Article 7.5 of the Agreement would therefore be complementary and supplementary to that of Article 32 of the Re gulations, which means that any safeguard measure 
applied to a product which has previously been su bject to such a measure will be subject to the 
provisions set forth in Article 7.5 of the WTO Agreement on Safeguards. 
 
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 G/SG/Q1/CRI/5 
Page 4  
 
  application, in accordance with the provisions of the Agreement".  However, there is no 
discussion about a mandatory review for a safe guard measure the duration of which exceeds 
three years as per Article 7, paragraph 4 of th e 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 co nfirm that Costa Rica will only withdraw a 
safeguard measure or increase the pace of libera lization through these reviews, and will not use 
reviews to decrease the pace of liberalization.  
 
Reply
 
 
 As explained above, the WTO Agreement on Safeguards is self-implementing under 
Costa Rican law.  The application of Article 7.4 of the Agreement would therefore be complementary and supplementary to that of the provisions of the Regulations, which means that any safeguard 
measure subject to review will be dea lt with in accordance with that Article. 
 Question 10  
 
Article 38 (Publication) of the Regulations  notes that resolutions regarding the initiation 
of a safeguard investigation and the imposition of preliminary and/or final measures shall be 
published only once and at the cost of the interest ed party.  What would happen if an interested 
party refuses to pay?  Please identify whic h national newspapers would publish these 
notifications, as well as where the Official Journ al of the Central American Integration System 
can be located online. 
 
Reply
 
 
 It is important to note that the commitment assumed by the Central American countries under 
this provision is not to submit a semi-annual re port, but to inform the Executive Committee for 
Economic Integration about the application of the Regulations.  In practice, this commitment is 
followed through orally at the regular meetings held  by the Committee.  Nevertheless, one must bear 
in mind that safeguard measures are not instrume nts frequently used by the Central American 
countries, so it is not usual for such reports to be given. 
 
 In any case, the minutes of the meeti ngs of the Executive Committee for Economic 
Integration are not made public and are therefore not accessible to interested par ties.  One should bear 
in mind that Article 41 of the Regulations refers to transparency commitmen ts between the States 
Parties, not the investigating authority's transpar ency commitments towards interested parties.  
Article 43 of the regulations sets out to develop th is aspect further and provides that investigating 
authorities shall notify procedural ac tions to interested parties, in  accordance with Article 12 of the 
Agreement on Safeguards. 
 
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