RESTRICTED
WORLD TRADE G/SG/W/106
11December 1995
ORGANIZATION(95-4022)
Original: English Committee onSafeguards
QUESTIONS CONCERNING THE NOTIFICATION PROVIDED
BYHUNGARY1OFLAWS AND REGULATIONS
UNDER ARTICLE 12.6OFAGREEMENT
Thefollowing communication, dated 7December 1995, hasbeenreceived fromthePermanent
Mission oftheUnited States.
_______________
General
Hungary ’snotification ofGovernment Decree No.113/1990 (XII.23.) Korm implies thatnew
safeguards legislation isunder development.
- Ifthisisthecase, whatisthestatus ofthenewlegislation? Willthenewlegislation replace
thedecree which Hungary notified totheWTO? What aspects ofthelegislation arebeing
modified? Willthenewlegislation beconsistent withtheprovisions oftheWTO Agreement
onSafeguards?
Section 1
Hungary cites“increased quantities ”asonecondition forapplying asafeguard measure.
- What constitutes “increased quantities ”forthese purposes, andhowisthiscondition tiedto
domestic production, ifatall?
Section 2
Thedecree doesnotoutline theadministrative process governing theapplication ofsafeguard
measures, including theinvestigation anddetermination asrequired bytheWTO.
- What aretheadministrative procedures thattheMinistry forInternational Economic Relations
must follow when making adecision regarding theapplication ofsafeguard measures?
- Whatspecificproceduresdictatethemannerinwhichgovernment,producerandforeigninterests
aresolicited andconsidered inthisprocess?
1G/SG/N/1/HUN/2
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Page2
- How doesthegovernment determine thatimports cause orthreaten tocause serious injury?
- What factors aretaken intoaccount when conducting suchaninvestigation? Howisthelevel
ofimport restriction determined?
- Aretheregulations andprocedures ofsuchinvestigations published pursuant toHungary ’s
obligations under Article 3oftheWTO Safeguards Agreement andArticle XofGATT 1994?
Duration ofSafeguard Measures
Noreference ismade tohowsafeguard measures would bereviewed orphased out.There
isalsonoreference totheapplication ofprovisional measures incritical circumstances. Inaddition,
there arenoprovisions describing thetimeinterval required before there-application ofasafeguard
measure.
- Would Hungary elaborate onthese points?
Section 2(c)
- Please elaborate whatactions constitute an“undertaking fromtheexporter onthepriceand/or
thevolume oftheproduct imported. ”
- Howissuchameasure consistent withtheprovisions ofWTO Agreement onSafeguards which
prohibit voluntary export restraints andorderly marketing agreements outside theframework
oftheAgreement?
Section 3.6
Hungary notes thatbefore asafeguard measure isadopted, theopinions of“consumers ’
organizations ”aresought.
- Aretheviews ofallinterested parties, including foreign firms, alsoconsidered priortoapplying
anysafeguard measure? Ifso,howaresuchviews solicited andconsidered?
Section 5
Thelegislation notes thattheproceedings concerning safeguard measures shallbegoverned
bytheprovisions ofActNo.IVof1957 ontheGeneral Rules ofState Administration Procedures.
- What types ofproceedings arecovered bytheAdministrative Procedures? What dothese
Procedures provide, particularly inlightofrequirements oftheWTO Agreement onSafeguards?
HasHungary submitted copies oftheProcedures totheWTO?