WORLD TRADE
ORGANIZATIONG/SG/N/8/ARG/4
G/SG/N/10/ARG/3G/SG/N/11/ARG/3
23 July 2001
(01-3660)
Committee on Safeguards Original:  Spanish
NOTIFICATION UNDER ARTICLE 12.1(b) OF THE
AGREEMENT ON SAFEGUARDS ON FINDING
A SERIOUS INJURY OR THREAT THEREOF
CAUSED BY INCREASED IMPORTS
NOTIFICATIONS PURSUANT TO ARTICLE 12.1(c)
AND ARTICLE 9, FOOTNOTE 2, OF THE
AGREEMENT ON SAFEGUARDS
ARGENTINA
The following communication, dated 17 July 2001, has been received from the Permanent
Mission of Argentina.
_______________
Within the framework of the safeguard investigation on imports of peaches, preserved in
water containing added sweetening matter, including syrup, the Republic of Argentina hereby
presents the following notifications to the Committee on Safeguards under Articles 12.1(b) and
12.1(c) and Article 9, footnote 2, of the Agreement on Safeguards.
Argentina would be most grateful if WTO Members having a substantial interest as exporters
of the product under investigation could be informed of its willingness to hold the consultations
provided for in Article 12.3 of the Agreement on Safeguards.
The investigation was initiated pursuant to a request by the CAMARA DE LA FRUTA
INDUSTRIALIZADA DE MENDOZA (Chamber of Industrial Fruit Production of Mendoza)
(CAFIM).
The evidence gathered by the implementing auth ority for this investigation is set out below.
1. Evidence of serious injury or threat  thereof caused by increased exports
• Information provided by the Chamber shows that domestic production decreased in
the order of 4.5 per cent in 1998 and then stabilized in 1999 and 2000 at
approximately 65,000 tonnes.  The enterprises surveyed and investigated by the
National Foreign Trade Commission (CNCE) , which produce approximately 60 per
cent of the total, showed an increase in 1998 and 1999 in part, found to be due to the
closure or absorption of the enterprises making up the rest of the total.  In 2000 the
production of this group of companies showed a fall of 14 per cent.G/SG/N/8/ARG/4
G/SG/N/10/ARG/3
G/SG/N/11/ARG/3
Page 2
• The analysis carried out by the CNCE revealed that domestic production fell in 2000
in line with the decrease recorded in the companies surveyed.  Domestic productionin 2000 stood at 57,847 tonnes, i.e. 12 per cent less than the previous year.
• Both production and installed capacity have been determined on the basis of the
factors that exclusively affect the product in question, there being no other elementsthat enter into the assessment of the relevant parameters.
• The value of sales in the domestic market of the group of enterprises surveyed
decreased by 14 per cent in 2000 as compared with the previous year and their share
of apparent consumption fell that year, against a background of increasing apparentconsumption from 1999 onwards.
• The investigation revealed evidence of falls in the level of employment and labour
productivity, as well as in the wage bill paid of the group of enterprises surveyed.The trends in these factors directly reflect the changes in sales and production.
• Exports have fallen, with the export ratio being no greater than 10 per cent for the
most recent years.
• In view of the particular characteristics of the product and of demand, the level of
stocks is not a determining parameter in this survey, the figure for the group ofenterprises surveyed being of the order of 14 per cent of sales in 2000.  The variations
recorded in this factor over several years and with respect to the time when they were
measured are also attributable to changes in the marketing systems.  However, such
changes and the impact on the industry are linked to the competition from importsand the quantities and conditions in which they have been introduced into the
domestic market.
• An analysis of the accounting statements of the enterprises is of limited value since
the enterprises in question produce several different products.  It is for this reason that
the investigation sought specific accounts, which showed falls in sales and in thepercentage of sales that acts as a marginal contribution to covering fixed costs.  The
ratio of sales to the breakeven point is generally decreasing, giving a figure in 2000,
depending on the enterprise, of between 0. 59 pesos and 1.12 pesos with a percentage
of marginal contribution over sales that is clearly declining.
• An analysis of the selling prices reveals a sharp decline in 2000, leading to falling
price/cost ratios, which in the last year have reached a point where they are about theunit value.  For some enterprises they are around 10 per cent below the unit value.
2. Information on whether there is an absolu te increase in exports or an increase in
imports relative to domestic production (see also Article 12.1 for the context)
• Trends in Argentinian imports of canned peaches in the period 1996-2000 need to be
analysed against a background of various factors, including climatic conditions,
countervailing measures in force in Argentina, and the structural patterns of world
production.  Thus, a comparison of the beginning and end of the period in question,
without prejudice to the analysis of the intermediate years, shows that imports inG/SG/N/8/ARG/4
G/SG/N/10/ARG/3
G/SG/N/11/ARG/3
Page 3
2000 represented 85 per cent of the volume imported in 1996, but measured in dollars
f.o.b. they only came to 64 per cent of the value for the first year.
• The year 1996 shows the greatest volume of imports with a figure of over
14,000 tonnes, equivalent to 10 million dollars f.o.b, and resulting in a generalaverage price, regardless of the origins of the imports, of 0.699 dollars per kilogram.
Greece was the major exporter to Argentina during this period, representing 42 per
cent of the total volume and approximately 36 per cent of the value, with an average
price of 0.596 dollars f.o.b. per kilogram, within a range of 0.70 to 0.46 US$/kg.
• In 1997 and 1998 total Argentinian imports fell by 55 per cent and 45 per cent
respectively, owing to severe climatic conditions that affected world production and,
consequently, trade in the product in question.  An analysis of average f.o.b. prices
shows that they increased in 1997, as did the price of the main exporter:  Greece.  In
1998 such prices continued to rise, though to a lesser extent on average, but in the
case of the aforementioned country they fell by some 15 per cent to a level of
0.594US$/kg.
• If we analyse the more recent period it can be seen that in 1999 total imports rose
sharply (by over 100 per cent), a situation that was repeated in 2000 with a rise of
68 per cent.  Imports in 2000 were over 12,000 tonnes with a value of approximately
US$6,400,000 f.o.b.  In this later year imports from Greece, the main exporter, came
to 60 per cent of the total imports.
• In 1999 the average price fell to 0.625 US$/kg. and in 2000 to US$0.525/kg. f.o.b.
The determining factor of this fall was the pric es of the main exporters, that is to say,
the European Union and, more specifically, Greece, whose average f.o.b. price in the
latter year was 0.412 US$/kg.
• The prices of the imports in the domestic market have generally remained below the
domestic price, despite the existence of tariffs equivalent to Argentina's bound ceilingof 35 per cent and of countervailing duties for Greece.
• The figures supplied by CAFIM for the ratio of imports to domestic production for
the most recent period show that imports represented 11 per cent in 1999 and 19 per
cent in 2000.
• On the basis of the survey carried out by the CNCE, the Commission concluded that
imports satisfy the provisions of Article 2 of the Agreement on Safeguards, insofar as
there was an increase in imports in the most recent period, both in absolute terms and
in relation to domestic production.  The following clear facts have emerged from the
investigation:
• The pattern of imports has had a distorting impact on the domestic market
with the effect of hampering the structural adjustment of domestic
production.
• The availability of imported products in supermarkets and hypermarkets at
lower and lower prices as a result of their greater concentration of purchasing
power has affected the domestic industry.G/SG/N/8/ARG/4
G/SG/N/10/ARG/3
G/SG/N/11/ARG/3
Page 4
3. Description of the product involved
Peaches, preserved in water containing added sweetening matter, including syrup, preserved
in any other form or in water.
This product comes under MERCOSUR tariff headings 2008.70.10 (Peaches, preserved in
water containing added sweetening matter, including syrup) and 2008.70.90 (Other).
4. Description of the proposed measure
The definitive safeguard measure takes the form of minimum specific duties on imports of
peaches, preserved in water containing added sweetening matter, including syrup, preserved in anyother form or in water, which come under MERCOSUR tariff headings 2008.70.10 and 2008.70.90,
for a period of three (3) years beginning from th e entry into force of the provisional measure 
1, as
illustrated in the following table.
PRODUCT
MERCOSUR tariff
headingSAFEGUARD
MEASURE
US$/kg. netLIBERALIZATION TIMETABLE
US$/kg. net
From 19 January 2001
to 18 January 2002From 19 January 2002
to 18 January 2003From 19 January 2003
to 18 January 2004
Peaches, preserved inwater containing added
sweetening matter,
including syrup
2008.70.100.50 0.45 0.40
Other 2008.70.90 0.50 0.45 0.40
5. Proposed date of introduction of the measure
The proposed date of introduction of the definitive measure is 8 August 2001.
6. Expected duration of the measure
The expected duration of the measure is three (3) years beginning from the entry into force of
the provisional measure.
7. For a measure with a duration of more than three years, provide the proposed date for
the review to be held not later than the mid-term of the measure.
Not applicable.
                                                     
1 Resolution ME No. 39 of 12 January 2001, imposing provisional duties, was published in the Official
Journal on 11 January 2001.G/SG/N/8/ARG/4
G/SG/N/10/ARG/3
G/SG/N/11/ARG/3
Page 5
8. If the expected duration is over one year , provide the expected timetable for the
progressive liberalization of the measure.
PRODUCT
MERCOSUR Tariff
HeadingSAFEGUARD
MEASURE
US$/kg. netLIBERALIZATION TIMETABLE
US$/kg. net
From 19 January 2001
to 18 January 2002From 19 January 2002
to 18 January 2003From 19 January 2003
to 18 January 2004
Peaches, preserved inwater containing added
sweetening matter,including syrup
2008.70.100.50 0.45 0.40
Other 2008.70.90 0.50 0.45 0.40
Ten-per-cent liberalization for the period 19 January 2002 to 18 January 2003 and 20 per cent
for the period 19 January 2003 to 18 January 2004, the percentages being calculated in relation to thebase year.
9. Information to be provided in the event of the duration of the measure having to be
extended.
Not applicable.
Notifications under Article 9, Footnote 2
Notification to the Committee on Safeguards of non-application of a safeguard measure to developing
countries under Article 9.1 of the Agreement on Safeguards
1. Description of the measure
PRODUCT
MERCOSUR Tariff
HeadingSAFEGUARD
MEASURE
US$/kg. netLIBERALIZATION TIMETABLE
US$/kg. net
From 19 January 2001
to 18 January 2002From 19 January 2002
to 18 January 2003From 19 January 2003
to 18 January 2004
Peaches, preserved inwater containing added
sweetening matter,
including syrup
2008.70.100.50 0.45 0.40
Other 2008.70.90 0.50 0.45 0.40G/SG/N/8/ARG/4
G/SG/N/10/ARG/3
G/SG/N/11/ARG/3
Page 6
2. Product subject to the measure
Peaches, preserved in water containing added sweetening matter, including syrup.
This product comes under MERCOSUR tariff headings 2008.7010 and 2008.70.90.
3. Specify the developing countries to which the measure is not applied under Article 9.1 of
the Agreement on Safeguards, and the import shares of these countries individually and
collectively.
Country Share
South Africa 0.4644%
The share is calculated on the basis of the total number of tonnes imported during the period
1999-2000.
4. If there is a change in the list of develo ping countries exempted from the safeguard
measure pursuant to Article 9.1, please notify.
Not applicable.
__________