. /.   WORLD TRADE  
ORGANIZATION  G/SG/Q2/PHL/13 
27 January 2011 
 (11-0456) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE  
AGREEMENT ON SAFEGUARDS 
(EXTENSION OF THE EXISTING MEASURE) 
 
Replies to Questions Posed by THAILAND
1 Regarding the  
Notification of the PHILIPPINES2 
 
(Figured Glass ) 
  
 The following communication, dated 22 December 2010, is being circulated at the request of 
the Delegation of the Philippines.  
_______________ 
 
 Question 1   First, the Philippines states in its notification  that it would conduct a monitoring review 
of the measure after the first quarter of 2010 to consider terminating the measure if the 
domestic industry has not resumed production.  Could the Philippines please indicate if this 
review has been undertaken, including any results of such review?  
Reply
 
  The Philippine Tariff Commission (TC) has completed its monitoring review and the report was received by the Department of Trade and Industry (DTI) on 8 September 2010.  The DTI is 
expected to issue an Order based on the results of  the TC findings before the end of this year. 
 
Question 2 
 
 Second, the notification states that if the suspension is lifted, the applicable duty "shall 
be equal to the amount which DTI would have applied according to the schedule of progressive 
liberalization each year ... ."  Could the Philippines please provide an example calculation of what the applicable duty would be if the suspension were lifted for 2011? 
 
Reply
 
 
 The DTI Order of 13 January 2010 provides th at in case the suspension is lifted, the 
applicable safeguard duty upon the lifting of the su spension shall be equal to the amount which DTI 
would have applied according to the schedule of progr essive liberalization each year at a linear rate of 
reduction of 5 per cent from the issuance of the last DTI Order dated 8 November 2006 liberalizing 
                                                      
1 G/SG/Q2/PHL/10. 
2 G/SG/N/14/PHL/5. G/SG/Q2/PHL/13 
Page 2  
 
  the imposed safeguard measure, as if there was no suspension in the imposition of the measure.  The 
estimated definitive SG measure using the 5 per cent linear rate of reduction will be as follows:  
  November 2006  P
 2,274.30/MT 
 November 2007  P  2,160.60/MT 
 November 2008  P  2,052.60/MT 
 November 2009  P  1,950.00/MT 
 November 2010  P  1,852.50/MT 
 November 2011  P  1,759.90/MT 
 November 2012  P  1,671.05/MT 
 
Question 3 
  We note that Article 7.4 of the Safeguar ds Agreement prohibits an extended measure 
from being more restrictive than it is at the end of  its initial period, and that it should continue 
to liberalized.  While the Philippines provided some  vies on this issue today, we continue to 
wonder how the Philippines would be able to fu rther liberalize a measure which is currently 
suspended, apart from terminating the measure altogether. 
 
Reply
 
 
 During the investigation of the domestic indus try's request for the final extension of the 
measure, it was concluded that the safeguard measure on figured glass continues to be necessary to prevent the recurrence of serious injury once the local industry resumes its production.  The domestic 
industry has been undertaking serious efforts to comply  with its adjustment plan  and there is evidence 
that they are adjusting positively to import compe tition.  Factors beyond the control of the industry 
negated the gains resulting from its adjustment plan.  Thus, extension of the measure shall allow the 
industry to fully adjust to import competition.  When the industry resumes production of figured glass, they would be able to complete its adjustment pl an and enable its operation to become viable and 
effectively compete with imports.  
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