MINUTES OF THE
REGULAR MEETING
HELD
ON 27 October 2014
Chairperson:
Ms Kim Kampel
1. The Committee on Safeguards (the "Committee") held a
regular meeting on 27 October 2014.
2. The Committee adopted the following agenda:
1
national legislation.. 3
1.1 Cameroon – Review of New
Legislative Notification (G/SG/N/1/CMR/1/Suppl.1) 3
1.2 Congo – Review of New
Legislative Notification (G/SG/N/1/COG/1) 3
1.3 European Union – Review of
New Legislative Notification (G/SG/N/1/EU/1/Suppl.1 and G/SG/N/1/EU/1/Suppl.2) 3
1.4 Mexico – Review of New
Legislative Notification (G/SG/N/1/MEX/1/Suppl.4) 3
1.5 Montenegro – Review of New
Legislative Notification (G/SG/N/1/MNE/1/Suppl.1) 3
2 NOTIFICATIONS OF ACTIONS
RELATED TO SAFEGUARD MEASURES. 4
2.1 Colombia - Steel wire rod
(G/SG/N/8/COL/1/Suppl.1–G/SG/N/10/COL/1–G/SG/N/11/COL/1/Suppl.3 and
G/SG/N/8/COL/1/Corr.1 and
G/SG/N/8/COL/1/Suppl.2-G/SG/N/10/COL/1/Suppl.1–G/SG/N/11/COL/1/Suppl.4) 4
2.2 Colombia – Bars of iron or
non-alloy steel and wire rods of iron or non-alloy steel (G/Sg/N/7/Col/2/Suppl.2–G/Sg/N/11/Col/2/Suppl.2) 4
2.3 Colombia - Angles, Shapes and Sections of Iron
or Non-Alloy Steel (G/Sg/N/9/Col/4) 4
2.4 Colombia - Steel angles
(G/SG/N/9/COL/5) 4
2.5 Ecuador - Wood and Bamboo
Flooring and Accessories Thereof (G/SG/N/6/ECU/9 and G/SG/N/6/ECU/9/Corr.1) 4
2.6 Egypt – Steel Rebar
(G/SG/N/6/EGY/10-G/SG/N/7/EGY/9-G/SG/N/11/EGY/8) 5
2.7 India - Seamless Pipes,
Tubes and Hollow Profiles of Iron or Non-Alloy Steel
(G/SG/N/8/IND/25–G/SG/N/10/IND/16–G/SG/N/11/IND/11 and
G/SG/N/8/IND/25/Suppl.1–G/SG/N/10/IND/16/Suppl.1G/SG/N/11/IND/11/Suppl.1) 5
2.8 India - Saturated Fatty
Alcohols (G/SG/N/8/IND/26–G/SG/N/10/IND/17–G/SG/N/11/IND/12) 6
2.9 India - Sodium Di-Chromate
(G/SG/N/6/IND/39) 6
2.10 India - Flexible Slabstock
Polyol of Molecular Weight 3000 to 4000 (G/SG/N/6/IND/38) 6
2.11 India - PX-13
(G/SG/N/8/IND/21/Suppl.2–G/SG/N/10/IND/12/Suppl.2–G/SG/N/11/IND/7/Suppl.2) 6
2.12 India - Not-Alloyed Ingots
of Unwrought Aluminium (G/SG/N/6/IND/37 and G/SG/N/9/IND/12) 6
2.13 India – Bare Elastomeric
Filament Yarn (G/SG/N/9/IND/11) 6
2.14 India – Sodium Citrate
(G/SG/N/8/IND/27–G/SG/N/10/IND/18–G/SG/N/11/IND/13) 7
2.15 Indonesia - Coated Paper
and Paperboard, not Including Banknotes Paper (G/SG/N/6/IDN/26 AND
G/SG/N/6/IDN/26/Suppl.1) 7
2.16 Indonesia - Cotton Yarn
Other Than Sewing Thread (G/SG/N/8/IDN/4/Suppl.4–G/SG/N/10/IDN/4/Suppl.4) 7
2.17 Indonesia – Wheat Flour
(G/SG/N/8/IDN/15/Suppl.1–G/SG/N/10/IDN/15/Suppl.1–G/SG/N/11/IDN/13) 7
2.18 Indonesia - Flat-Rolled
Product of Iron or Non-Alloy Steel (G/SG/N/8/IDN/16–G/SG/N/10/IDN/16 and
G/SG/N/8/IDN/16/Suppl.1–G/SG/N/10/IDN/16/Suppl.1–G/SG/N/11/IDN/14) 7
2.19 Indonesia – I and H
Sections of Other Alloy Steel (G/SG/N/8/IDN/17-G/SG/N/10/IDN/17) 8
2.20 Jordan - Writing and
Printing Papers Size A4 (G/SG/N/6/JOR/17) 8
2.21 Jordan – Bars and Rods
(G/SG/N/11/JOR/4/Suppl.2) 8
2.22 Kyrgyz Republic – Wheat
Flour (G/SG/N/8/KGZ/2-G/SG/N/10/KGZ/2/Suppl.1) 8
2.23 Malaysia - Hot-Rolled
Steel Plate (G/SG/N/6/MYS/2) 8
2.24 Morocco - Cold-Rolled
Sheets and Plated or Coated Sheets (G/SG/N/6/MAR/8) 8
2.25 Morocco - Wire Rods and
Reinforcing Bars
(G/SG/N/8/MAR/3/Suppl.1/Corr.1–G/SG/N/10/MAR/3/Corr.1–G/SG/N/11/MAR/2/Suppl.1/Corr.1) 9
2.26 Philippines – Newsprint
(G/SG/N/6/PHL/9/Suppl.2) 9
2.27 South Africa – Frozen
Potato Chips
(G/SG/N/8/ZAF/2/Suppl.1–G/SG/N/10/ZAF/2/Suppl.1-G/SG/N/11/ZAF/2/Suppl.3) 9
2.28 Chinese Taipei - High
Density Polyethylene and Linear Low Density Polyethylene (G/SG/N/9/TPKM/1) 9
2.29 Thailand - Non-Alloy Hot
Rolled Steel Flat Products (G/SG/N/7/THA/3–G/SG/N/11/THA/3 and
G/SG/N/7/THA/3/Suppl.1-G/SG/N/11/THA/3/Suppl.1) 9
2.30 Tunisia – Fibreboard of
Wood (G/SG/N/6/TUN/3) 10
2.31 Tunisia – Glass Bottles
(G/SG/N/6/TUN/4) 10
2.32 Turkey - Polyethylene
Terephthalate (G/SG/N/10/TUR/13/Suppl.1–G/SG/N/14/TUR/10 and
G/SG/N/8/TUR/13/Suppl.1–G/SG/N/10/TUR/13/Suppl.2–G/SG/N/11/TUR/16/Suppl.1) 10
2.33 Turkey - Printing, Writing
and Copying Paper (G/SG/N/6/TUR/18) 10
2.34 Turkey – Terephthalic Acid
(G/Sg/N/8/Tur/14–G/Sg/N/10/Tur/14–G/Sg/N/11/Tur/19) 10
2.35 Ukraine - Tableware and
Kitchenware of Porcelain (G/SG/N/8/UKR/4/Suppl.1–G/SG/N/10/UKR/4/Suppl.1–G/SG/N/11/UKR/2) 10
2.36 Ukraine - Casing and
Pump-Compressor Seamless Steel Pipes
(G/SG/N/8/UKR/1/Suppl.3-G/SG/N/14/UKR/1/Suppl.2) 10
3 Continued Non-Notification Of
Safeguard Measures By The Russian Federation (item requested by the US). 11
4 Non-Notification Of
Legislation By The Kingdom Of Bahrain.. 11
5 Other Business. 12
5.1 Statement on an
investigation by India (cold rolled flat products of stainless steel) – Item
requested by Japan. 12
5.2 Statement regarding an
investigation by the Philippines (galvanized iron and pre-painted sheets and
coils) – Item requested by Australia. 12
5.3 Chair's statements. 12
6 Annual Report to the Council
for Trade in Goods. 13
7 DATE OF NEXT REGULAR MEETING.. 13
3. Written questions concerning this notification had been received
from the United States in document G/SG/Q1/CMR/3, but Cameroon was not
represented in the room. The Chair asked the Secretariat to request that
the delegation of Cameroon provide the responses in writing.
4. There were no comments or questions regarding this notification.
5. There were no comments or questions regarding this notification.
6. Written questions concerning this notification had been received
from the United States in document G/SG/Q1/MEX/6.
7. The US clarified that since this was a multi-symbolled
document, and the question related to anti-dumping, it preferred that the
discussion take place in the Committee on Anti-dumping Practices.
8. The Chair stated that written questions concerning this
notification had been received from the United States in document
G/SG/Q1/MNE/3, and Montenegro had submitted responses to the questions in
document G/SG/Q1/MNE/4.
9. Montenegro explained its responses.[1]
10. The US thanked Montenegro for the transparency and confirmed
that it had no more questions.
11. The Chair recalled that the deadline for written questions
concerning any legislation reviewed at this meeting was 17 November 2014. The
deadline for written answers to all written questions, including questions
submitted in writing prior to this meeting, was 8 December 2014.
12. The Chair informed the Committee that 22 Members had not yet made a
legislative notification.[2] This notification was one
of the important obligations of the Safeguards Agreement
("Agreement"). Members that did not yet have legislation need only
submit a simple "nil" notification.
13. The US thanked the Chair and the Secretariat for the efforts
to facilitate legislative notifications and encouraged those Members who had
not yet made a legislative notification to make the necessary notification
relevant to their individual situations.
14. The Committee took note of the statements made.
15. Canada stated that it continued to be
concerned with the high number of safeguard measures imposed, and requested
imposing Members to strictly observe the relevant obligations since safeguard
measures affected otherwise legitimate trade.
16. The US observed that there were 36 safeguard actions reviewed
at the meeting which was the most numerous since 2010, and the 3rd
most numerous since 1995. The US wondered whether all of those investigations
could qualify as emergency measures, and requested Members to be careful in
initiating and conducting investigations.
17. Australia agreed with the previous speakers.
Australia noted it was often the case that the choice of trade remedy through
the use of safeguard measures was not appropriate in the circumstances.
Australia highlighted the frequent delays in notifications of initiations as
well as between the findings of an investigation and the decision to impose a
safeguard measure. This called into question the justification of such actions.
18. The EU asked that Members explore whether a problem could be
solved by the more focused instruments of anti-dumping and countervailing
duties before initiating SG investigations.
19. Japan and the Separate Customs
Territory of Taiwan, Penghu, Kinmen and Matsu
("Chinese Taipei") agreed with the previous speakers.
20. There were no comments or questions raised at the meeting.
21. There were no comments or questions raised at the meeting.
22. There were no comments or questions raised at the meeting.
23. There were no comments or questions raised at the meeting.
24. Peru raised concerns regarding this
investigation. It stated that there was insufficient analysis made in the
investigation, for example, regarding increase of imports, injury and causal
relationship.
25. Ecuador explained that in relation to
transparency and due process, it had made timely notification, had invited
participation of interested parties, and would conduct necessary consultations
and hearings. Ecuador took this opportunity to ask how the dates indicated in
the circulated version of notifications were determined in general.
26. At the request of the Chair, the Secretariat explained that
the date that appeared at the top right corner of the notification indicated
the date when the document was posted on the WTO's electronic system to be made
available to all the Members. The date in the introductory part of the
notification, just below the title, was the date when the notifying Member
submitted the notification to the Secretariat. He added that depending on how
busy the relevant Secretariat staff was, and on how long/complicated the
notification was, the two dates could differ by several days.
27. The US recalled that Egypt had earlier initiated an
investigation on the same product. After imposing a provisional measure, Egypt
notified in December 2013 that the investigation had been terminated since the
threat of serious injury was not attributable to imports. The US first asked
what had changed since that conclusion was made. Second, referring to Article
7.5 of the Agreement, the US asked how Egypt could now impose a provisional
measure in light of the fact that a provisional measure was imposed during the
last investigation.
28. Turkey explained that it had substantial
interest in this investigation as an exporter. It reiterated that SG was an
emergency measure and thus Members needed to abide by stringent requirements.
In addition, Turkey recalled that Egypt initiated an anti-dumping investigation
on the same product in October 2010, while terminating it in July 2011. Egypt
then initiated a SG investigation on the same product in November 2012,
subsequently imposing a provisional measure, and then terminating the
investigation. While none of these investigations had resulted in a final
measure, they had deterrent effects. Turkey reserved all its rights under the
WTO Agreements, and asked Egypt to terminate this investigation.
29. Ukraine stated that it was one of the
main exporters of this product. Ukraine saw many deficiencies in this
investigation – for example, regarding determination of trends of imports,
injury, causal link, unforeseen development, and level of SG duty. Ukraine
asked Egypt to terminate this investigation.
30. Responding to the first query of the US, Egypt explained that
the new investigation was based on new data from a new investigation period,
and so was not inconsistent with the decision to terminate the first
investigation. Regarding the second query of the US, Egypt reiterated that the
measure taken in the first investigation was a 200-day provisional measure, and
that more than one year had passed since the provisional measure in the first
investigation was terminated.
31. The Chair explained that questions from Japan, European Union
and Russia regarding this investigation were left unanswered.
32. Japan noted that India was the most
frequent user of the SG instrument. On this particular investigation, Japan had
raised concerns at past Committee meetings as well as in the hearing. In
particular, Japan had several concerns with the final report published in March
2014, such as the lack of an adequate finding on unforeseen developments, on
increased imports and on serious injury. Japan was waiting for India's
responses to its questions.
33. The Russian Federation stated that it was currently in
bilateral discussions with India.
34. Noting that India was the largest user of the SG measure, Chinese
Taipei expressed its concerns regarding India's procedures, including due
process.
35. The EU noted that India was the largest user of the SG
instrument, and that its use of this instrument was increasing. The EU was of
the view that the investigations were generally initiated on weak grounds, and
the quality of the analysis made in the course of the investigations was not of
the required standard. In addition, it asked that a country-specific instrument
be used when the source of the problem was an increase of exports from only one
country. Moving to the particular investigation at hand, the EU noted that the
determination of increased imports was not proper, as in fact imports had
declined. The injury determination was not adequate as well. The EU asked that
this measure be repealed.
36. The US noted that India was by far the largest user of SG
investigations. Eight investigations by India were included in the agenda of
this meeting. The US was alarmed at the rate at which investigations were
brought and asked India to strictly abide by the rules. The US also regretted
the ambiguity and untimeliness of the notifications. The US asked India to
clarify these matters.
37. India explained that the findings of its
DG Safeguards were recommendatory in nature. Its recommendations were tabled
before an inter-ministry board, which would send its recommendation to the
Ministry of Finance. The Ministry of Finance would then notify the conclusion.
SG measures would not become applicable until such notifications were made.
India further explained that of the 8 investigations that were included in the
agenda of this meeting, 3 were terminated. India stressed that it was following
relevant disciplines of the Agreement, including making notifications. As for
the questions from Japan, EU and Russia, responses were currently being
prepared.
38. Indonesia noted that this notification
was a recommendation to impose a provisional measure. Indonesia had several concerns,
in particular with the injury analysis. Indonesia had already made this point
at the hearing. Indonesia asked India not to impose a final measure.
39. Malaysia supported Indonesia's
statement.
40. There were no comments or questions raised at the meeting.
41. Japan raised concerns about this
investigation, and asked that India strictly abide by the Agreement in
conducting the investigation.
42. Chile asked India to clarify the status
of this investigation.
43. India clarified that the investigation
had been terminated, and no final measure was imposed.
44. Australia was concerned with the
frequency with which India was initiating SG investigations, particularly since
the basis of many initiations was unclear and the choice of safeguards as the
appropriate remedy was unclear. Australia was also concerned with the
significant delays in notifications, often beyond the deadlines for exporters'
views. This affected the exporters' ability to defend themselves. Concerning
the particular investigation, in Australia's view, the imported products and
the products produced by the domestic industry were not like products and there
was no evidence of serious injury or causation. The determinations regarding
unforeseen developments and critical circumstances also were not adequate.
45. India explained that the investigation
had been terminated.
46. There were no comments or questions raised at the meeting.
47. There were no comments or questions raised at the meeting.
48. The EU urged Indonesia not to initiate SG investigations if
the increase of imports was from one country only. Initiation of SG
investigations would negatively affect all importers due to the uncertainty of
the outcome. The EU also asked Indonesia to closely follow the disciplines of
the Agreement in conducting its investigations, and in particular, in
conducting the investigations initiated in the course of 2014.
49. Noting that Indonesia often resorted to SG, Japan reiterated
that SG was an instrument to be used only in exceptional circumstances. Japan
asked Indonesia to abide by the disciplines of the Agreement and to fully take
into account the comments Japan had conveyed to Indonesia.
50. Chinese Taipei was also concerned with
Indonesia's frequent use of the SG instrument. It asked Indonesia to ensure
that all SG actions were based on solid evidence.
51. Indonesia explained that it had
initiated the investigation based on solid evidence. Indonesia was abiding by
the Agreement, including by holding hearings. It noted that Japan, EU and Korea
had participated in the hearing.
52. India was concerned with this
investigation. While India had problems with the original measure, it noted
that the measure had now been extended to last more than three years in total.
India had particular doubts about the determination regarding unforeseen
developments.
53. Indonesia explained that the
investigation was conducted in line with the Agreement.
54. Australia was of the view that this
investigation should not have been initiated to begin with. Indonesia should
have resorted to other instruments. Australia was also concerned over
considerable delays between completion of the investigation and the decision to
apply a measure. In Australia's view, this delay only showed that the situation
did not warrant an emergency measure to be taken.
55. Indonesia confirmed that the final
measure was imposed on 4 May 2014.
56. Viet Nam was concerned with the outcome
of the investigation. In its view, there were problems regarding how Indonesia
determined unforeseen developments, serious injury, and causal link.
57. Indonesia stated that the investigation
had been conducted in accordance with the Agreement. It had held hearings, and
had consulted with Viet Nam in October 2014.
58. China stated that its comments relate
not only to this specific item, but also to Indonesia's investigation on bars
and rods, which was ongoing, but not part of the agenda for the meeting.
Chinese exporters had fully cooperated in these two investigations. In China's
view there was no injury or causal relationship in these two cases. These SG
measures would only go against public interest of Indonesia. In addition,
Indonesia had imposed import licensing restrictions on these two products. An
anti-dumping duty had also been imposed in the case of I and H sections of
other alloy steel. In China's view, imposing SG duties in addition to all these
measures was simply an over-protection. China asked Indonesia to strictly abide
by the Agreement.
59. Indonesia explained with regards I and H
sections of other alloy steel that it had found serious injury and causal
relationship. Indonesia was prepared to consult with China.
60. There were no comments or questions raised at the meeting.
61. There were no comments or questions raised at the meeting.
62. The US pointed out that the notification simply stated that
the measure "shall be applied in the form of special customs duties",
and its exact form, such as the duty rate, was not clarified.
63. Kyrgyz Republic stated that it would
look into the matter.
64. Japan had concerns with this
investigation. In Japan's view, there were no exceptional circumstances. Japan
asked Malaysia to abide by the disciplines of the Agreement and to fully take
into account the comments Japan had conveyed to Malaysia.
65. Malaysia explained that the investigation was ongoing, and
that Malaysia would abide by the disciplines of the Agreement.
66. EU pointed out that SG measures were the
most restrictive of the three trade remedy instruments, and should be taken only
in exceptional circumstances.
67. The EU was concerned with Morocco's increased use of SG. SG
measures were normally not the cure of the fundamental problem, but were
transitional measures to facilitate adjustment of the domestic industry. More
specifically, EU noted that there were two SG investigations by Morocco on the
agenda of this meeting, and both of these investigations were in the steel
sector with the same producer. EU did not find any rational basis for
initiating this investigation. The EU was also paying close attention to how
Morocco's analysis would treat imports brought into its free trade zone.
68. Morocco clarified that it had initiated
only one investigation in 2012 and another in 2014. Morocco would take all
relevant data into account when conducting this investigation. As for imports
from the free trade zone, Morocco was currently considering the way forward.
69. Turkey stated that it was originally
exempted from this measure by virtue of Article 9.1 of the Agreement. However,
with this notified revision, Turkey was re-included in the measure. Turkey
deemed this action to violate the Agreement, and asked Morocco to rectify the
situation.
70. Morocco confirmed that Turkey was initially exempted from
the measure but was now re-included in the measure because imports from Turkey
had increased. Morocco was of the view that this action did not contradict the
Agreement.
71. There were no comments or questions raised at the meeting.
72. The EU was disappointed with this investigation since it saw
several substantive and procedural problems. First, the domestic industry had a
market share of 98%, and there was no injury. Second, the duty rate was
prohibitive and unnecessary. Third, South Africa was imposing a safeguard
measure in addition to an anti-dumping measure. Finally, South Africa imposed a
final measure after the provisional measure had expired.
73. South Africa asked that any questions
and comments be submitted in writing.
74. There were no comments or questions raised at the meeting.
75. Turkey explained that it had been
consulting with Thailand regarding this investigation. In Turkey's view, the
conditions necessary to impose a measure did not exist. In particular, the
determination regarding unforeseen developments, injury and causal relationship
were problematic. Turkey reserved all its rights under the relevant WTO
Agreements.
76. Japan had concerns with this
investigation. In Japan's view, there were no exceptional circumstances. Japan
asked Thailand to abide by the disciplines of the Agreement and to fully take
into account the comments Japan had conveyed to Thailand.
77. Chinese Taipei pointed out that the
provisional measure came into force on 6 June 2014, while the notification of
the decision was made in September 2014. Chinese Taipei was concerned with the
delay.
78. Australia was concerned about the
decision to impose a provisional measure and the delay in notification of that
decision. Australia recalled that it had made this point at the hearing as
well. Australia asked for an update on consideration of a final measure.
79. Korea, Republic of was also concerned
with this investigation. In particular, Korea saw no causal link between the
imports and the alleged injury.
80. Thailand asked that any questions and
comments be submitted in writing.
81. The EU commented on both investigations – regarding fibreboard
of wood and glass bottles. The EU was concerned with the delay of both
notifications. It asked Tunisia to carefully follow the obligations in the
Agreement. The EU also asked Tunisia to provide non-confidential summaries of
relevant documents.
82. Tunisia took note of The EU's comments.
83. The EU observed that Turkey almost systematically extended
all its safeguard measures. In EU's view, this was often done on a weak basis.
The EU urged Turkey to reconsider this practice. Regarding this particular
investigation, EU was of the view that extension of the measure was not
warranted because the share of imports had decreased and production of the
domestic industry had increased. The EU reminded that safeguards should not be
used as an industrial policy tool.
84. Turkey explained that its investigations
whether or not to extend the measure were carried out in a manner consistent
with the Agreement. Turkey asked that any questions and comments be submitted
in writing.
85. The EU had several concerns with this investigation. First,
the increase in imports was not recent, sudden or sharp enough to justify a
measure, and in fact the share of imports merely went back to its original
ratio. Second, there was no serious injury. Third, the conditions of imports
such as price trends did not warrant a measure. The EU asked Turkey to
carefully abide by the Agreement.
86. Turkey indicated that the investigation
would be conducted in accordance with the Agreement.
87. The EU was disappointed that Turkey had decided to impose the
measure notwithstanding the weak evidence. The EU expected that Turkey would
not extend this measure.
88. Turkey took note of the statement.
89. Egypt stated that although it did not
export the subject product to Ukraine during the relevant period, Egypt was not
included in the list of developing countries exempted from the measure by
virtue of Article 9.1 of the Agreement. Egypt asked that it be exempted from
the measure and added to the list.
90. Ukraine took note of Egypt's statement.
91. The Russian Federation expressed concerns regarding Ukraine's
decision to extend the existing measure. First, Ukraine did not conduct an
investigation before it decided to extend the measure. In particular, Ukraine
did not find increased imports or injury. Second, Ukraine did not allocate the
import quota adequately. Third, Ukraine did not take any action to maintain a
substantially equivalent level of concessions. Finally, if Ukraine's position
was that this was a new measure, it was in breach of Article 7.5 of the
Agreement.
92. Ukraine explained that interested
parties could submit comments until 14 November 2014.
93. The Chair reminded delegations that any questions for which
written responses were requested should be submitted to the Member concerned
and to the Secretariat no later than 17 November 2014. Written responses
to questions, including questions submitted in writing prior to this meeting,
should be submitted to the Secretariat no later than 8 December 2014. As with
legislative notifications, any unanswered questions would be indicated in the draft
annotated agenda of the next meeting.
94. The Committee took note of the statements made.
95. The US recalled that it had pointed out at the October 2013
meeting that Russia had initiated an investigation and imposed a measure on
corrosion resistant pipe and tubes, but no notification had been made. After
October 2013, the US learned of five more investigations and measures which had
not been notified. The products involved were flatware of stainless steel,
certain fasteners, activated carbon, caramel and graphite electrodes. Russia
acceded to the WTO in August 2012, and the US understood that all of these
measures were in effect at the time. The US noted that Russia did not
understand that Article 12.7 of the Agreement or paragraph 620 of the Working
Party Report would apply to this situation. The US provided several reasons why
it did not agree with this understanding. The US continued to request that the
Russian Federation notify those measures to the Committee.
96. Australia, the EU, Japan, Chinese Taipei, Canada and Norway shared the concerns and supported the views of the US.
97. The Russian Federation recalled that it had provided
explanations on several occasions including in the General Council and the
Council for Trade in Goods, as well as at relevant bilateral consultations.
Russia understood that there were six measures at issue: flatware of stainless
steel, certain fasteners, activated carbon, caramel, graphite electrodes and
flatware of stainless steel. Russia provided several reasons why Article 12.7
of the Agreement was not applicable to those measures. Russia then provided a
brief history of each of those investigations including the fact that the measure
on flatware of stainless steel had expired on 26 December 2012, the measure on
certain fasteners had expired on 17 March 2014, the measure on activated carbon
had expired on 7 September 2014, the measure on caramel had expired
on 7 July 2014, the measure on graphite electrodes had expired on 30 August
2012, and the measure on flatware of stainless steel was expected to expire on
1 November 2014. Russia had not acted contrary to any of the obligations
of the Agreement, and so Russia doubted whether any Member had to right to make
notifications under Article 12.8 of the Agreement.
98. The US stated that the Trade Policy Report of Bahrain
indicated that Bahrain had adopted the new Gulf Cooperation Council ("GCC")
Common Law on Anti-dumping, Countervailing Measures and Safeguards. The US
noted that that law had not yet been notified to the Committee, and urged
Bahrain to make the relevant notification.
99. Bahrain, Kingdom of explained that the
law the US was referring to needed to be notified collectively by the GCC
countries. Bahrain would keep the US and the Committee updated on any new
developments.
100. US stated that it understood that making
SG notifications was something to be done by each country.
5.1 Statement on an investigation by India (cold rolled flat products of
stainless steel) – Item requested by Japan
101. Japan referred to a notification by
India made very recently and that could not be included in the agenda of the
meeting. It was a notification regarding initiation of an investigation on cold
rolled flat products of stainless steel.[3] Japan noted that the
investigation was initiated on 19 September 2014, but the notification was
made only on 20 October 2014.
102. India stated that it was doing its best
to make notifications in a timely manner.
103. Japan stressed that timely notification
was very important, not only for India but for all investigating Members. In
that context Japan asked the Secretariat to produce a compilation of the
timelines of Members' notifications. Japan clarified that it had in mind a
compilation of the timing when investigating Members initiated the
investigation and when it was notified to the Committee.
104. Australia asked whether Japan had in
mind a compilation indicating individual Members.
105. The EU stated that it saw no harm in such compilation as long
as the compilation covered the notifying Members in a non-discriminatory
manner.
106. The Chair took note of Japan's proposal. Further clarity
would be sought from Japan.
107. Australia referred to a notification
made by the Philippines regarding an investigation on galvanized iron and
pre-painted sheets and coils, which was discussed at the spring 2014 meeting.[4] Australia wished to know the latest situation regarding this
investigation.
108. The Philippines responded that it would check.
109. First, in the interests of full transparency, the Chair wished
to report on the informal consultation held on 16 July 2014 regarding two
issues. She reminded Members that at the spring 2014 regular meeting, two
proposals were tabled by Members, and at the suggestion of the outgoing chair,
she had convened the open-ended informal consultations in July to allow for
further discussion. She recalled that she had initially reported the results of
this informal consultation to all the Members in a fax dated 28 July 2014. The
first issue related to the idea put forward by the US regarding the so-called
"discussion group regarding safeguard proceedings". As these
discussions, which had been held after each Committee meeting since 2013, had
now achieved some regularity, the US had suggested that some of the topics could
now be discussed in the framework of the Committee. The proponents had
explained that they envisaged the identification of topics on which Members
could volunteer to submit papers to form the basis of informal discussions.
While some Members had supported the idea, others still had concerns or needed
more clarification. The Chair recalled that, at the conclusion of the informal
consultations, she had suggested that Members continue to discuss among
themselves and reflect further on this issue. She had also emphasised that any
further action on this issue, would be on the basis of a Member-driven process
and she would await further guidance from Members, should they wish the issue
to be taken forward. As at the date of the current meeting, no further feedback
had been received from Members on this issue. The second issue concerned a
proposal by New Zealand regarding a seminar on Safeguard notifications, with a
view to improve the quality of notifications. Broad support had been expressed
for this idea in the informal consultation. She recalled that she had
communicated with the Members on this issue on 5 September 2014, and again on
30 September 2014. She reminded Members that this very seminar would take
place immediately after the meeting and she invited full participation. The
slides and the audio recordings of the seminar would subsequently be posted on
the "Members' website" of the WTO.
110. Second, the Chair drew the attention of the Members to the
importance of keeping the e‑mail addresses of delegations updated. Delegates
that were new to the Safeguards Committee were reminded to inform the
Secretariat.
111. The
Committee adopted its annual report (see document G/L/1087).
112. The Chair suggested that the Committee meet in the week of 27
April 2015. The exact date would be confirmed in due course.
113. The Committee so decided.
__________
[1] See document G/SG/Q1/MNE/4 for details.
[2] These Members were: Angola, Antigua & Barbuda, Belize, Cabo
Verde, Central African Republic, Congo, Democratic Republic of the Congo,
Djibouti, the Gambia, Grenada, Guinea-Bissau, Mauritania, Montenegro,
Mozambique, Niger, Papua New Guinea, Rwanda, Saint Kitts & Nevis,
Saint Vincent & the Grenadines, Samoa, Sierra Leone, Solomon Islands,
Swaziland, Tanzania, Tonga and Vanuatu.