RESTRICTED
WORLD TRADE G/SG/W/65
2November 1995
ORGANIZATION(95-3389)
Original: French Committee onSafeguards
QUESTIONS CONCERNING THE NOTIFICATION PROVIDED
BYNEW ZEALAND1OFLAWS AND REGULATIONS
UNDER ARTICLE 12.6OFTHE AGREEMENT
Thefollowing communication, dated 27October 1995, hasbeenreceived fromthePermanent
Delegation oftheEuropean Commission.
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PRELIMINARY OBSERVATIONS
Given thebrevity ofthetextnotified byNew Zealand, itdoes notappear tomeet the
requirements ofarigorous discipline inrespect ofsafeguards, which isthecornerstone oftheAgreement
onSafeguards.
There areanumber ofgapsinthetextandthewording ofmany articles differs profoundly
from thewording ofthecorresponding provisions oftheAgreement.
Inaddition, certain provisions (e.g.Article 7,paragraphs 3and4),theapplication ofwhich
hasadirect effect oneconomic agents, merely statethatthemeasures tobeadopted mustbecompatible
withNewZealand 'sobligations asaMember oftheWTO. Suchageneric formula could wellimpair
thetransparency ofthetextandthelegalcertainty ofeconomic operators.
Thefollowing points areparticularly noteworthy:
(a) Conditions fortheapplication ofsafeguard measures (Article 2,paragraph 1,ofthe
Agreement onSafeguards)
Article 2,paragraph 1,oftheAgreement onSafeguards stipulates that"AMember mayapply
asafeguard measure toaproduct onlyifthatMember hasdetermined ...thatsuchproduct
isbeing imported intoitsterritory insuchincreased quantities ...andunder suchconditions
astocause orthreaten tocause serious injury tothedomestic industry ...".
Articles 5,6and7(2and3)oftheNewZealand legislation concerning theconditions forthe
application ofsafeguard measures referonlytoimportation which hascaused ormaycause
injury,withoutmentioningthetwoconditionsprovidedforinArticle2oftheAgreement,namely
importation insuchincreased quantities andunder suchconditions, andwithout pointing out
thattheinjury must beserious.
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IntheCommunity 'sopinion, theprovisions oftheNewZealand legislation donotappear to
beconsistent withArticle 2,paragraph 1,oftheabove-mentioned Agreement.
CanNewZealand explain thedifferences between theNewZealand legislation andtheprovision
ofArticle 2,paragraph 1,oftheAgreement onSafeguards?
(b) Provisional safeguard measures (Article 6oftheAgreement onSafeguards)
Article 6oftheAgreement onSafeguards laysdown quitespecific conditions fortheapplication
ofprovisional measures.
CanNewZealand indicate which Articles ofitslegislation reflect those provisions?
(c) Investigation (Article 3oftheAgreement onSafeguards)
Theprovisions oftheNewZealand legislation concerning investigation arenotfullyconsistent
withtheAgreement onSafeguards, particularly asregards thepossibility fortheinterested
parties tomake known theirviews, tosecure ahearing andtorespond tothequestions asked
bytheotherparties. Inaddition, theNewZealand legislation contains nodefinition ofinterested
parties.
CanNewZealand provide explanatory information onthissubject and,inparticular, make
clearwhether therepresentatives ofathirdcountry maybeconsidered tobeinterested parties?
(d) Review ofsafeguard measures -progressive liberalization ofsuch measures -interval
between twosafeguard measures (Article 7,paragraphs 4and5)
CantheNewZealand authorities explain why, withregard totheabove-mentioned topics, the
NewZealand legislation contains nospecific provisions reflecting theobligations placed on
WTO Members bytheAgreement onSafeguards?