RESTRICTED
WORLD TRADE G/SG/W/18
13July1995
ORGANIZATION(95-1978)
Original: English Committee onSafeguards
QUESTIONS CONCERNING THE NOTIFICATION PROVIDED
BYCANADA OFLAWS AND REGULATIONS UNDER
ARTICLE 12.6OFTHE AGREEMENT
Thefollowing communication, dated 10July1995, hasbeenreceived from theOffice of
theUnited States Trade Representative.
_______________
Please findenclosed thequestions oftheUnited States withregard tothelaws, regulations
andadministrative procedures relating tosafeguard measures notified totheCommittee byCanada
(G/SG/N/1/CAN/1).
1. Critical circumstances/perishable agricultural products. Determinations apparently are
made bytheMinister ofFinance under section 59oftheCustoms Tariff, asamended. How isit
determined when anaction istobetaken? Forexample, isarequest filedwiththeMinister, isa
request included inapetition filedwiththeCITT andthenforwarded totheMinister bythe
CITT, etc?Isanyadvance notice provided thatthetaking ofaprovisional measure isbeing
considered? What isthestandard used? How istheterm"perishable agricultural product"
defined? Isthere arequirement forawritten report describing theaction taken andthebasis
therefor?
2. Quantitative restrictions. Article 5setsoutcertain rules applicable inthecaseof
safeguard measures intheform ofquantitative restrictions, forexample, thatnoquantitative
restriction shallreduce thequantity ofimports below thelevelofarecent period which shallbe
theaverage ofimports inthelastthree representative years forwhich statistics areavailable.
Does Canada havelegislation thatimplements these rules.
3. Digressivity. Does Canadian lawcontain arequirement implementing Article 7.4ofthe
Agreement providing forprogressive liberalization ofsafeguard measures ofmore than1year's
duration?
4. Standards fordecision. Please explain therelationship between thefollowing four
standards found inCanadian lawpertaining todeterminations insafeguard investigations and
imposition ofsafeguard measures:
- Section 27(1) oftheCITT Actprovides thattheTribunal shalldetermine whether
subject goods "arebeing imported insuchincreased quantities andunder such
conditions astobeaprincipal cause ofserious injury, orthreat thereof ...etc."
(emphasis added)
./.G/SG/W/18
Page2
- Section 59.1(1) oftheCustoms Tariff provides thattheGovernor inCouncil may
impose asurtax ifitappears tohisorhersatisfaction thatgoods "arebeing
imported intoCanada under suchconditions astocause orthreaten serious injury
...etc." Thismakes nomention ofincreased quantities orprincipal cause.
- Section 59.1(5) provides thatwhere asurtax isimposed based onareport from the
Minister ofFinance, theorder ceases tohaveeffect in200days, unless theCITT
reports thatthegoods "arebeing imported intoCanada from thecountry named in
thereport under suchconditions astocause orthreaten serious injury". Again,
nomention ofincreased quantities orprincipal cause.
- Section 5(3)oftheExport andImport Permits Actprovides thattheGovernor in
Council mayinclude agood ontheImport Control Listifheorsheissatisfied
thatgoods "arebeing imported orarelikely tobeimported intoCanada atsuch
prices, insuchquantities andunder suchconditions astocause orthreaten serious
injury ...etc.". Thisalsomakes nomention ofincreased quantities orprincipal
cause, andaddsinthephrase "arelikely tobeimported".