WORLD TRADE  
ORGANIZATION  G/SG/N/16/ECU/2 
10 March 2006 
 
 (06-1070) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION OF THE INITIATION OF AN INVESTIGATION ON IMPORTS TO 
ECUADOR OF TAPS, COCKS AND VALVES FOR DOMESTIC USE FROM THE 
PEOPLE'S REPUBLIC OF CHINA 
 
 
 The following communication, dated 7 March 2006, has been received from the Permanent 
Mission of Ecuador.  
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 Pursuant to Section 16 of the Protocol of Ac cession of the People's Republic of China to the 
World Trade Organization (WTO) and Resolution No. 320 of the Foreign Trade and Investment 
Council of Ecuador (COMEXI), the Permanent Missi on of Ecuador to the WTO hereby notifies the 
Committee on Safeguards that Ecuador's Ministry of Foreign Trade, Industrialization, Fisheries and Competitiveness has decided to initiate  an investigation to determine whether the increase in imports 
of taps, cocks and valves for domestic use, classified under NANDINA national tariff subheading 
8481.80.10, from the People's Republic of China h as caused or threatens to cause market disruption 
for the domestic industry producing like or directly competitive products.    To that end, the text of Resolution No. 06- 019 initiating the investigation, as published in 
Official Journal No. 215 of 22 Febr uary 2006, is attached hereto. G/SG/N/16/ECU/2 
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  OFFICIAL JOURNAL NO. 215 - WEDNESDAY 22 FEBRUARY 2006 
 
Resolution No. 06-019 
 
THE UNDER-SECRETARY FOR FOREIGN TRADE AND INTEGRATION OF THE 
MINISTRY OF FOREIGN TRADE, INDUSTRIALIZATION, FISHERIES AND 
COMPETITIVENESS  
 
Whereas: 
 
In communications dated 15 November  and 12 December 2005, the company 
ECUACOBRE FV S.A., pursuant to Resoluti on No. 320 of Ecuador's Foreign Trade and 
Investment Council (COMEXI), published in Official Journal No. 105 of 16 September 2005, requested an investigatio n with a view to imposing a safeguard measure on imports of taps, cocks 
and valves for domestic use, classified under NANDINA tariff subheading 8 481.80.10, originating 
in and proceeding from the People's Republic of China; 
 
The relevant part of the above-mentioned S ection 16 provides that WTO Members may take 
measures to prevent or remedy market disruption caused by significant imports of products of Chinese origin which are like or directly competitiv e with those produced by the domestic industry; 
 
On the basis of data supplied by th e Central Bank of Ecuador, the company 
ECUACOBRE FV S.A. states that imports of pr oducts classified under NANDINA tariff subheading 
8481.80.10 originating in and proceeding from the People's Republic of China are causing serious 
injury to domestic production;  
The applicant company, in order to substantia te the existence of the aforementioned serious 
injury in the period 2002-2004, has submitted inform ation intended to demonstrate the effect on the 
variables of production, sales and share of domestic production in the domestic market and in profits; 
as well as an increased share of Chinese imports in domestic demand;  and a major difference between the prices of imported and locally produced products;  
The application and information submitted by  ECUACOBRE FV S.A. and the preliminary 
assessment conducted by the investigating authority show there to be elements which warrant the 
initiation of an investigation;  and,  
By virtue of the powers conferred upon him by  Article 8 of COMEXI Resolution No. 320, 
 
Hereby decides the following: 
Article 1. -  To initiate the investigation request ed by the company ECUACOBRE FV S.A., 
pursuant to Section 16 of the Protocol of Accession of the People's Republic of China to the WTO and 
COMEXI Resolution No. 320. 
Article 2. -  The products under investigation are ta ps, cocks and valves for domestic use, 
classified under NANDINA national import tariff subheading 8481.80.10. 
Article 3. -  In the course of the investigation, the investigating authority shall conduct a 
transparent and objective assessme nt of all the information and documentation submitted by the 
parties involved in order to establish whether the increased imports of the products of Chinese origin 
which are like or directly competitive with those produced by the domestic industry are causing or  G/SG/N/16/ECU/2 
 Page 3 
 
 
  threatening to cause market disruption. The appr opriateness of applying the requested safeguard 
measure shall be determined on the basis of the outcome of this assessment. 
Article 4. -  As part of the investigation process, the investigating authority shall foster 
consultation meetings between the parties involved at which they can state their case. 
Article 5. -  In order to determine the role played by Chinese imports in the market disruption, 
the investigation period shall cover the years 2003 to 2005. 
Article 6. -  Information submitted on a confidential basis shall be treated as such, subject to 
the approval of the investigating authority. 
Article 7. -  Pursuant to Article 8 of COMEXI Reso lution No. 320, the investigating authority 
shall notify the WTO Committee on Safeguards and th e interested parties of the initiation of the 
investigation upon publication of this Resolution in the Official Journal. 
Done at Quito (Metropolitan District) on 13 February 2006. 
Signed by Manuel Chiriboga, Under-Secretary for Foreign Trade and Integration. 
 
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