RESTRICTED
WORLD TRADE G/SG/W/130
27February 1996
ORGANIZATION(96-0716)
Original: Spanish Committee onSafeguards
REPLIES TOQUESTIONS POSED BYTHE EUROPEAN COMMUNITIES1
CONCERNING THE NOTIFICATION OFLAWS AND REGULATIONS
OFMEXICO2UNDER ARTICLE 12.6OFTHE AGREEMENT
Thefollowing communication, dated 9February 1996, hasbeenreceived fromthePermanent
Mission ofMexico.
_______________
A. PRELIMINARY OBSERVATIONS
Thenotified textsaresometimes difficult tointerpret: adistinction hastobemade between
theprovisions referring tosafeguard measures andthose referring exclusively tounfair practices,
andthisdistinction isoften notclearly apparent, asinthechapter onpenalties (Foreign Trade
Act: Title IX,Chapter I).
Thestructure oftheForeign Trade Act,intheform oftitles, chapters andsections, makes
aclear distinction between theprovisions which apply tounfair international trade practices andto
safeguard measures. Thus, TitleVrelates tounfair international tradepractices, TitleVItosafeguard
measures, andTitleVIItoprocedures applicable tobothofthesematters. Chapter Iofthelattercontains
provisions common tobothofthese matters, Chapter IIrelates tounfair practices, Chapter IIIto
safeguard measures, andChapter IVtobothofthese matters.
Inthecaseofadministrative infringements andpenalties ascontained inChapter IofTitleIX
oftheAct,Article 93(III) and(IV)setforththeprovisions relating tocountervailing duties andsafeguard
measures. Article 93(V) relates onlytocountervailing duties and,lastly, paragraph (VI)relates to
bothmatters.
Both from theaspect oftheproper implementation oftheAgreement onSafeguards in
national legislation andforthepurposes ofthetransparency required bythecodeandthelegal
security ofeconomic operators, theCommunity doesnotconsider sufficient thedeclarations of
ageneral nature according towhich, intheapplication ofcertain provisions, Mexico willcomply
withtheinternational treaties andbilateral conventions concerned. See,forexample, Foreign
Trade Act:Article 78,Title VII,Chapter III,Section 2;Articles 132and134,Annex II,Title VII,
Chapter V;Article 147,Annex II,Title VIII, Chapter III.
1G/SG/W/90.
2G/SG/N/1/MEX/1.G/SG/W/130
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TheMexicanlegislationonsafeguardmeasuresdoesnotreflectsomefundamentalprovisions
oftheAgreement onSafeguards concerning themaximum duration ofmeasures, theirextension,
theinterval tobeobserved between twomeasures, methods forfixing quantitative quotas,
progressive liberalization ofsafeguard measures andreview ofthose measures.
B. INTERESTED PARTIES: FOREIGN TRADE ACT; ANNEX II,TITLE VIII,
CHAPTERS IAND II
CantheMexican authorities indicate iftherepresentatives ofthird countries canbe
informed, asinterested parties, ofinformation gathered during theinvestigation?
Inthecaseofsafeguards regulated bytheWTO Agreement, allexporters fromthesignatory
countries areentitled tobeinformed bytheinvestigating authority ofthecourse oftheinvestigation.
C. FOREIGN TRADE ACT: ANNEX I,TITLE VI,CHAPTER III,SECTION I,ARTICLE 77
Article 7,paragraph 2,oftheAgreement onSafeguards stipulates thattheduration of
measures cannot exceed fouryears.
CantheMexican authorities explain thedisparity between Article 77oftheir national
legislation andArticle 4,paragraph 2,oftheAgreement onSafeguards?
Article 77oftheForeign Trade Actstates thatsafeguard measures maybeextended butdoes
notspecify forhowlong. However, sincetheSafeguards Agreement isalegalinstrument which forms
partofMexican lawandwhich must beapplied tocomplement theAct,theinvestigating authority
willhavetoobserve theprovisions ofArticles 7.3and9.2oftheAgreement since, under Article 133
oftheConstitution, international agreements aredeemed thehighest lawintheUnion. Thisisin
conformity withtheSafeguards Agreement.
D. ARTICLE 128,ANNEX II,TITLE VII,CHAPTER IV,SAFEGUARD MEASURES
CantheMexican authorities explain therelationship between thisArticle 128andArticle 78
ofChapter III,Section II?
InMexico, ordinary lawssuchastheForeign Trade Actcontain legalprovisions which govern
specific matters ingeneral terms, while regulations, suchastheForeign Trade Regulations, develop
indetail andinconcrete terms theprovisions contained inthelaws. Accordingly, under Article 78
oftheAct,theFederal Executive isempowered todetermine provisional safeguard measures inthe
caseofcritical circumstances andofevidence thattheincreased imports cause orthreaten tocause
serious injury. Thisisfurther developed inArticle 128oftheRegulations under theForeign Trade
Act,setting outtheconditions relating totheincrease andspecifying thesector oftheMexican economy
inwhich safeguard measures maybeapplied.
Cantheyindicate, inparticular, themaximum duration ofthemeasures indicated in
Article 128,thetypeofmeasures applied, whether these measures must beconfirmed onthebasis
ofaninvestigation andthemeans ofremedying these measures if,following theinvestigation,
theyprove unjustified?
Under theterms ofArticle 2oftheForeign Trade ActandArticle 70oftheRegulations,
international treaties orconventions towhich Mexico isasignatory, aswellastheActandthe
Regulations, must becomplied withinthecaseofprovisional safeguard measures. Consequently,G/SG/W/130
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while Article 128establishes nomaximum duration forsuchmeasures, Article 6oftheSafeguards
Agreement doesestablish amaximum period (200days). Thisapplies forMexico.
E. ARTICLE 93,TITLE IX,CHAPTER I,INFRINGEMENTS AND PENALTIES
Subject totheconformity ofthisarticle withtheprovisions ofGATT 1994, cantheMexican
authorities confirm thatparagraphs VandVIofthisArticle donotapply inthecaseofsafeguard
measures?
Article 93(V) doesnotapply inthecaseofsafeguard measures. Bycontrast, paragraph (VI)
doesapply,sinceArticle80,referredtointhatparagraphisinthechapteron"OtherCommonProvisions
relating totheProceedings", i.e.onbothcountervailing duties andsafeguard measures.