WORLD TRADE  
ORGANIZATION  G/SG/Q1/NIC/3 
17 June 2008 
 
 (08-2845) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 12.6 OF THE AGREEMENT 
 
Responses to Questions Posed by the UNITED STATES
1 
Regarding the Notification of NICARAGUA2 
 
  The following communication, dated 6 June 2008, is being circulated at the request of the 
delegation of Nicaragua.  
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  The following document contains Nicaragua's responses to the questions posed by the United States before and during the meeting of  the Committee on Safeguards of 30 April 2008. 
 Question 1
 
 
Is the WTO Agreement on Safeguards self im plementing under Nicaraguan law?  Also, 
in potential cases of conflict between th e WTO Agreement on Safeguards and the Regulations  
which legislation would have precedent?   
 
Response  
 The WTO Agreement on Safeguards is part of domestic law and is therefore 
self-implementing in Nicaragua. 
 
 The substantive implementing legislation is  the WTO Agreement on Safeguards, whilst the 
Central American Regulations on Safeguard Measures set forth the procedural rules, which are fully 
consistent with the WTO Agreements.  In the event of conflict, the WTO Agreements take 
precedence, since they complement the Central Am erican Regulations on Unfair Business Practices. 
 
 Article 4 the Central American Regulations on Safeguard Measures stipulates that all substantive aspects relating to the application of  safeguard measures and procedural aspects not 
covered by these Regulations shall be determined by the provisions of the inst ruments referred to in 
Article 2 of the Regulations.  The instruments in question are the WTO Agreement on Safeguards, 
Article XIX of the GATT 1994, and, where appropria te, the Guatemala Protocol and the Convention 
on the Central American Tariff and Customs Regime  and its Protocols, which concern the region's 
institutional framework. 
 
                                                     
 
1 G/SG/N/1/NIC/1. 
2 G/SG/N/1/NIC/2. G/SG/Q1/NIC/3 
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  Question 2
 
 
After reviewing the Regulations , we would ask that Nicaragua please elaborate on the 
organizational relationship and process of trad e remedy proceedings between the investigating 
authority, Directorate-General of Integration of the Ministry or Secretariat of the Economy and 
the Council for Economic Integration.  
Response
 
 Each State member of the Central American Integration System has its own investigating 
authority to deal with cases involving safeguard me asures.  In response to the first part of the 
question, the relationship between the investigat ing authority and the Council of Ministers for 
Economic Integration is established in Article 35 of the Central Amer ican Regulations, which requires 
the investigating authority to apprise the Council  of Ministers of the adoption of provisional or 
definitive safeguard measures, wher e these involve increased duties. 
 
 As to the second part of the question, the pro cess of trade remedy proceedings is laid down in 
Chapter II of the Central American Regulations on Safeguard Measures.  Articles 2 and 4 of the 
Regulations likewise apply regarding substantive aspects relating to the application of safeguard 
measures and procedural aspects not covered by these Regulations.  In addition, the States Parties may 
apply on a supplementary basis the provisions and pr inciples of Central American integration, the 
provisions of public international law, and the general principles of law (Article 44 of the 
Regulations).  
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 en tirely 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 auth ority.  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 in jury and the causal link between imports and 
injury? 
 
Response
 
 As established in Article 1 of the Regulations , the investigating authority for a safeguard 
action is the Directorate with jurisdiction over matters relating to Cent ral American economic 
integration, or the technical unit with responsibility for investigating situations that may warrant the 
application of safeguard measures.  In the case of Nicaragua, the investigating authority is the 
Department of Treaty Application of the Ministry  of Development, Industry and Trade (MIFIC).  
Article 35 of the Regulations stipulates that SIECA' s only role is to convene the Council of Ministers 
for Economic Integration so that the latter may be  apprised of and approve the decisions of each 
country's investigating authority regarding the ap plication of provisional or definitive safeguard 
measures.   G/SG/Q1/NIC/3 
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   It is important to specify that for the time being there is no regional authority in charge of 
safeguard investigations in Central America.  
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 [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? 
 
Response  
 It is important to note that the substantive implementing legislation is the WTO Agreement on 
Safeguards, whilst the Central A merican Regulations  on Safeguard Measures set forth the procedural 
rules, which are fully consistent with the WTO Ag reements.  In the event of conflict between the 
Regulations and the WTO Agreement, the substa ntive WTO rules take precedence in Nicaragua. 
  The legal logic that led to the development a nd drafting of Article 4 of the Central American 
Regulations, which also encompasses procedural provisions, was to avoid detailing the WTO rules, 
which cover procedures applicable to this type of investigation.  Hence a provision was established so 
that the provisions of the WTO Agreement on Safegua rds would apply for substantive and procedural 
aspects not covered by the Central American Regulations.  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 cau sed or are threatening to cause serious injury. 
 Response
 
 Article 20 of the Regulations  is consistent with Article  6 of the WTO Agreement on 
Safeguards.  Indeed, as stipulated in Article 2 of the Regulations, the object of these Regulations is to 
set out the provisions for the impl ementation of the Agreement on Safeguards , including Article 6.  
Article 6 of the Agreement on Safeguards therefore applies, on a complementary and supplementary 
basis, in addition to Article 20 of the Regulations, so  that in order for provisional safeguard measures 
to be imposed, there must be a positive preliminar y 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 verifi cation visits, can Nicaragua please explain the 
circumstances that would result in a verification being conducted?  
Response
 
 A verification visit under Article 23 of th e Regulations would be conducted if the 
investigating authority had doubts regarding the info rmation supplied by the interested parties during 
the investigation that would prevent it from making a full assessment of the case. G/SG/Q1/NIC/3 
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   It is important to note that a verification vis it is conducted only with the consent of the firms 
involved and provided that there is no objection on the part of the government of the country 
concerned, as stipulated in Article 23 of the Regul ations.  This means that if these requirements are 
not met, the verification visit will not take place.  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 progressively liberalized throughout 
its duration as per Article 7, paragraph 4 of the WTO Agreement on Safeguards.  Can 
Nicaragua please clarify that it will progressive ly liberalize safeguard measures through their 
respective durations? 
 
Response  
 Article 4 of the Central American Regulations stipulates that all substantive aspects  relating 
to the application of safeguard measures and procedural aspects not covered by the Regulations shall 
be governed by the instruments referred to in Article  2 of the Regulations, which refers to the WTO of 
the Agreement on Safeguards.  Therefore, Nicaragua  will act in compliance with Article 7.4 of the 
Safeguards Agreement, in that any safeguard me asure imposed will be subject to the progressive 
liberalization requirement during 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 Nicaragua will apply safeguards in 
situations in which a product was previo usly subject to a safeguard measure. 
 Response
 
 As mentioned above, Article 4 of the Centra l American Regulations stipulates that all 
substantive aspects relating to the application of safeguard measures and procedural aspects not 
covered by the Regulations shall be governed by the instruments referred to in Article 2 of the 
Regulations, which refers to the WTO Agreement on Safeguard Measures.  Therefore, when applying 
a safeguard measure Nicaragua will act in compliance with the provisions of Article 7.5 and 7.6 of the 
Safeguards Agreement.  
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 provision s 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 confirm that Nicaragua 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. 
  G/SG/Q1/NIC/3 
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  Response  
 Article 37 of the Regulations clearly states that the " [a] safeguard measure… may be 
reviewed, in accordance with th e provisions of the Agreement ".  The reference made to the WTO 
Agreement on Safeguards concerns the relevant provisions of Artic le 7 (Duration and Review of 
Safeguard Measures).  Therefore, when reviewing a measure Nicaragua will act in compliance with 
Article 7.4 of the WTO Agreement on Safeguards (s ince the latter is part of domestic legislation 
applicable to this type of investigation).  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 intere sted party.  Please explain whether Nicaragua 
intends to require interested parties to pay th e cost of publishing the resolutions 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 th e Official Journal of the Central American 
Integration System can be located online. 
 Response
 
 Article 38 of the Regulations provides that th e interested party shall cover the cost of 
publication in a national newspaper (in the case of Nicaragua this would be  El Nuevo Diario , 
La Prensa , or any other newspaper) – not that of mandatory  publication in the Official Journal of the 
State Party imposing the measure or the Official Jour nal of the Central American Integration System.  
If the interested party refuses to cover the cost of publication in a national newspaper, the resolution 
would simply not appear other than through publication in the official journals of the State Party.   It should be mentioned that the Central Amer ican Integration System does not yet have an 
Official Journal. 
 
Question 11
 
 
Article 39 (Remedies) of the Regulations  states that "The remedies provided for in the 
domestic legislation of each State Party shal l lie against resolutions issued by national 
authorities".  Please clarify whether this mean s that the laws and regulations issued by 
Nicaragua with regard to the provision of remedies are now superseded by these Regulations . 
 
Response  
 Since safeguard investigations are administra tive proceedings, the remedies provided for in 
Article 39 of the Regulations are, in the case of Nicaragua, those laid down in Law No. 290 (Law on 
the Organization, Powers and Procedures of the Ex ecutive).  Consequently, the Regulations can never 
be understood as superseding Nicaragua's own laws  and regulations regarding remedies, since the 
Regulations refer to the remedies established in th e domestic legislation of the State Party imposing 
the safeguard measure. 
 
Question 12  
 
Article 41 (Amendments to the Regulations) of the  Regulations  states that "Each State 
Party shall submit a semi-annual report to the Ex ecutive Committee for Economic Integration, G/SG/Q1/NIC/3 
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  through SIECA, on the implementation of this instrument".  Please clarify how and where these 
semi-annual reports will be made available to interested parties. 
 
Response
 
 The report submitted to the Executive Committe e for Economic Integration through SIECA is 
notified to interested parties having information in  the record, in accordance with Article 43 of the 
Regulations, unless a party requests to be excluded from the process.  Oral questions posed during the Safeguards Committee meeting on 30 April 2008
 
 Can the Council of Ministers amend resolutions brought before it? 
Response  
 No. Article 35 of the Central American Regula tions on Safeguard Measures clearly states that 
it is the national investigating authority (of any St ate Party) that adopts or amends the resolution 
implementing provisional or definitive measures, not the Council of Ministers (COMIECO).  The 
Council of Ministers is only informed via SIECA of the measures adopted by the investigating authority concerned.  
 It is also important to clarify that requirement to inform the Council of Ministers applies only 
where the provisional or definitive measure adopted by  the investigating authority takes the form of 
increased duties.  If in the course of the investiga tion it is decided that the safeguard measure to be 
adopted will take a form other than that of increas ed duties, there is no requirement to fulfil that 
obligation.  
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