RESTRICTED
WORLD TRADE G/SG/W/122
7February 1996
ORGANIZATION(96-0446)
Original: English Committee onSafeguards
REPLIES TOQUESTIONS POSED BYTHE UNITED STATES1
CONCERNING THE NOTIFICATION OFLAWS AND REGULATIONS
OFROMANIA2UNDER ARTICLE 12.6OFTHE AGREEMENT
Thefollowing communication, dated 19January 1996, hasbeenreceived fromthePermanent
Mission ofRomania.3
_______________
Q.1 Procedures forsafeguards proceedings .Thenotification indicates (inArt.6ofDecree 228/7
andChapter VoftheWorking Rules) thatsafeguard investigations aretobecarried outby
acommission consisting ofcertain government officials.
(a) What procedures arefollowed bythecommission inconducting aninvestigation and
arriving atasafeguards recommendation? Forexample, whatprovision isthere for
reasonable public notice andameans forinterested parties topresent theirviews?
(b) Article 14,para. 2ofJointOrder No.128provides thatadetermination maybemade
bythecommission exofficio ,oruponrequest ofnational producers oflikeordirectly
competitive products ortheirassociations. What aretheprocedures forthefiling of
requests byproducers orassociations andwhat information must beincluded ina
request?
A.1 Thepresent safeguards regulations donotcover allrules andprocedures provided forinthe
Safeguards Agreement. However, Article 15oftheRules annexed totheJoint Order
No.128/1992 stipulates that"Nomatter where inthese Rules therearenotmentioned express
provisions, GATT provisions aretobeapplied ...".Atpresent, Romania alsoapplies theresults
oftheUruguay Round, following ratification through LawNo.133/1994 oftheAgreement
Establishing theWTO, which includes, inAnnex 1,theSafeguards Agreement. Under these
circumstances, reference to"application ofGATT provisions" ofArticle 15oftheRules is
understood as"application oftheWTO rules".
Asaresult, therulesandprocedures theCommission forAnti-Dumping, Countervailing Duties
andSafeguard Measures follows incases where itreceives requests from national industry
1G/SG/W/61.
2G/SG/N/1/ROM/1.
3SeealsoGeneral Statement ofRomania (document G/SG/W/123), tobereadinconjuction with
thisdocument.G/SG/W/122
Page2
orincases where itactsexofficio ,aswellastheinformation tobeincluded intherequests,
willtakeintoconsideration therelevant provisions oftheSafeguards Agreement.
Q.1 (c) Chapter VoftheWorking Rules states thatrequests toestablish safeguard measures
must be“solved ”within three months. What isthemeaning of“solved ”?Does it
include thefinal decision onwhether toprovide relief, orisitlimited tothe
determination ofinjury orsome other event?
A.1 (c) Theexpression "solved within three months" refers totaking afinal decision in
introducing ornotintroducing safeguard measures.
Q.2 Standard fordetermining increased imports andserious injury. Article 14,para. 5ofJoint
Order No.128provides thatthevolume ofimports during aperiod of2-3years, compared
tothelast4-6months (which arenotincluded inthe2-3years) shall beexamined. Isit
appropriate touse,inallcases, a4-6month period asindicative ofincreased imports, inlight
ofthefactthat:
- products andindustries havedifferent business cycles, many ofwhich extend well
beyond aperiod of4-6months
- trade dataover aperiod of4-6months canbegreatly influenced byshort-term
aberrations intrade thatdonottrulyreflect significant economic trends.
Article 14,para. 5ofJoint Order No.128listsseveral factors thatwillbeexamined in
considering thecondition ofthedomestic industry, butdoesnotinclude allthefactors listed
inArticle 4.2(a) oftheAgreement onSafeguards. Willthecommission evaluate allthefactors
inArticle 4.2(a) indetermining whether there isinjury?
A.2 When evaluating theexistence oftheinjury, theCommission willtakeintoconsideration all
factors mentioned inArticle 4,paragraph 2(a)oftheSafeguards Agreement. Asaresult, the
period ofreference fordatacollection willbeestablished alsobytaking intoaccount thenature
oftheproducts under investigation.
Q.3 Imposition ofsafeguard measures .Chapter VoftheWorking Rules provides thatquotas are
established bytheMinister ofTrade andTourism andsurcharges areestablished bythe
regulations inforce byGovernment Decision attheproposal oftheMinistry ofTrade and
Tourism andtheMinistry ofEconomy andFinance. However, littleelsewithregard tothe
imposition ofsafeguards measures isspecified.
(a) Inparticular, howdoesRomania intend toimplement thefollowing requirements of
theAgreement onSafeguards:
(i) Article 5:application ofsafeguard measures (including limitations ontheuse
andstructure ofquantitative restrictions);
(ii) Article 6:provisional safeguard measures;
(iii) Article 7:duration andreview ofsafeguards measures?
A.3 (a) Concerning theimposition ofsafeguard measures, Romania willtakeintoaccount the
relevant provisions oftheAgreement onSafeguards.G/SG/W/122
Page3
Allissues raised bytheUSquestions arecovered bytheprovisions ofthenewdraft
lawwhich areformulated incompliance withtherulesintheWTO Agreements related
toanti-dumping, subsidies andsafeguards.
Q.3 (b) Also, what are“theregulations inforce byGovernment Decision ”withregard to
surcharges referenced inChapter V?
A.3 (b) Wethink theproblem appeared duetotranslation. Theoriginal textmakes reference
tothedecisional levelauthorized tointroduce surcharges.