. /.WORLD TRADE
ORGANIZATIONWT/DS260/1
G/L/554
G/SG/D28/1
5 June 2002
(02-3045)
Original:  English
EUROPEAN COMMUNITIES – PROVISIONAL SAFEGUARD MEASURES
ON IMPORTS OF CERTAIN STEEL PRODUCTS
Request for Consultations by the United States
The following communication, dated 30 May 2002, from the Permanent Mission of the
United States to the Permanent Delegation of the European Commission and to the Chairman of theDispute Settlement Body, is circulated in accordance with Article 4.4 of the DSU.
_______________
My authorities have instructed me to reques t consultations with the European Communities
(EC) pursuant to Article 4 of the  Understanding on Rules and Procedures Governing the Settlement
of Disputes  (DSU), Article XXII:1 of the General Agreement on Tariffs and Trade 1994
(GATT 1994) and Article 14 of the Agreement on Safeguards  with regard to the EC's imposition of
provisional safeguard measures against imports of certain steel products.  The measures in questioninclude Commission Regulation (EC) No 560/2002 of 27 March 2002
1, as well as any amendments
thereto or extensions thereof, and any related measures.
These measures appear to be inconsistent with the EC's obligations under the provisions of
GATT 1994 and of the Agreement on Safeguards .  In particular, the United States believes that the
measures are inconsistent with at least the following provisions:
• Article 6 of the Agreement on Safeguards , in conjunction with Articles 2.1, 4.1 and 4.2 of the
Agreement on Safeguards  and Article XIX of the GATT 1994, which permits the taking of a
provisional safeguard measure only pursuant to a preliminary determination that there is clear
evidence that increased imports have caused or are threatening to cause serious injury to the
domestic industry that produces like or directly competitive products.
• Article 6 of the Agreement on Safeguards  and Article XIX of the GATT 1994, which provide
that Members may take provisional safeguard measures only in critical circumstances, wheredelay would cause damage which it would be difficult to repair.
• Articles 3 and 6 of the Agreement on Safeguards , which, inter alia,   (1) require that any
provisional safeguard measure be taken only pursuant to a preliminary determination based
on clear evidence; (2) require that any safeguard measure be taken only following aninvestigation by the competent authorities of the Member pursuant to procedures previously
established and made public in consonance with Article X of the GATT 1994; (3) require
notice and opportunity for all interested parties to be heard; and (4) require the publication of
a report setting forth findings and reasoned conclusions reached on all pertinent issues of fact
and law.
                                                     
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• Article 12.1 of the Agreement on Safeguards , which requires Members immediately to notify
the Committee on Safeguards upon (a) initiating an investigation relating to serious injury or
threat thereof and the reasons for it, (b) upon making a finding of serious injury or threatthereof caused by increased imports, and (c) taking a decision to apply or extend a safeguard
measure.
• Article 2.2 of the Agreement on Safeguards , and Article I of the GATT 1994, by applying its
safeguard measures to the goods of some WTO Members, while excluding the goods of other
countries whose territories are not part of a free trade area or a customs union and who are not
developing country WTO Members.
• Article XIX:1(a) of the GATT 1994, which al lows a WTO Member to impose a safeguard
measure only if, as a result of unforeseen developments, a product is being imported in suchincreased quantities and under such conditions as to cause or threaten serious injury to
domestic producers of the like or directly competitive products.
We look forward to receiving your reply to this request and to fixing a mutually acceptable
date for consultations.
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