. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q1/SVN/2
14 June 2001
(01-2954)
Committee on Safeguards Original:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLE 12.6 OF THE AGREEMENT
Replies to Questions Posed by the UNITED STATES1
Concerning the Notification of SLOVENIA2
The following communication, dated 12 June 2001, has been received from the Permanent
Mission of Slovenia.
_______________
Q1. Definition of directly competitive.   Article 2(6) of the decree appears to preclude the
Slovenian competent authorities from considerin g a domestic product that is like the imported
product from also being directly competitive with that article.  If a product is not like theimported product but is directly competitive with it, why would a product that is like the
imported product not also be directly competitive with it?
Reply
Article 2(6) does not preclude the possibility of a combination of criteria.  "Like product"  can
be "directly competitive"  either because of its character solely or because of the mixture of its
characteristics and market circumstances.  For the initiation of the procedure the consideration of one
criterion is sufficient.
Q2.  Non-application of safeguard measures to FTA partners.   Article 3(2) of the decree
provides that the decree does not apply to products from countries with which Slovenia hasentered into a free trade agreement.  When the Slovenian competent authorities make a
determination under the decree, will they exclude imports from FTA partners in determining
whether imports have increased and in determ ining whether increased imports are causing or
threatening serious injury, or will they include such imports in making their determination and
then exclude imports from the FTA partner from the safeguard measure?
Reply
Application of safeguard measures to FTA partners is stipulated separately in the relevant
provisions of the Free Trade Agreements.  However,  those provisions do not exclude the possibility of
taking appropriate measures on an MFN basis.  The SA, with the ratification of the Marrakesh
Agreement, became part of the Slovenian legal system and has a status of law and thus can be applied
directly.  Therefore, in the case of legal uncertainty the provisions of an international agreement
overrule other legal provisions.
                                                     
1 G/SG/Q1/SVN/1
2 G/SG/N/1/SVN/3G/SG/Q1/SVN/2
Page 2
Q3. Increased dependence on imports factor.   The list of economic factors to be considered by
the Slovenian competent authorities in making their determination includes, inter alia , “an
increased dependence on imports” (Article 4(2)(c)).  This is not one of the factors listed in SA
Article 4.2(a), but rather suggests that the domestic  industry is entitled to some share of the
domestic market, an issue addressed in Korea B Resins  in the context of reviewing an
antidumping action.  Please explain how such  a factor may be relevant to the question of
whether the domestic industry is seriously injured or threatened with serious injury?
Reply
The SA does not exclude consideration of additional factors in making a determination
whether increased imports have caused or are threatening to cause serious injury to domestic industry.
Consideration of the increased dependence on the imports factor does not by itself influence the
initiation of a safeguard procedure.  By considering this factor the authorities might even decide that
limiting the imports would be damaging to domestic industry.
Q4. Provisional relief.   SA Article 6 requires that the competent authorities find, inter alia,
“clear evidence” that increased imports have caus ed or are threatening to cause serious injury.
Article 15 of the Slovenian decree does not include a “clear evidence” requirement.  Please
explain how the Article 15 conforms with the requirements of SA Article 6.
Reply
We believe that the Decree's Article 15 is in conformity with SA Article 6, albeit it does not
mention explicitly the "clear evidence" requiremen t.  The compliance with SA is evident throughout
the Decree, especially from the factors in Article 4, the conditions of which set the criteria.  In orderto initiate an investigation clear evidence is needed of  serious injury or direct threat of injury.  In the
case of legal uncertainty the provisions of an inte rnational agreement, as ratified by law, overrule
other legal provisions.  Thus, the SA can be applied directly.
__________