WORLD TRADE
ORGANIZATIONG/SG/N/8/CZE/2
18 July 2001
(01-3554)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT
THEREOF CAUSED BY INCREASED IMPORTS
CZECH REPUBLIC
The following notification, dated 13 July 2001, has been received from the Permanent
Mission of the Czech Republic.
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1. Evidence of serious injury or threat  thereof caused by increased imports
The Ministry of Industry and Trade, the body responsible for conducting respective
investigation, concluded that increased imports of substitutes of sugar caused  or threaten to cause
serious injury to the domestic sugar industry.  This conclusion is based on a number of factors as
described below.
The volume of sales of domestic sugar producers decreased substantially in the year 2000
representing 89.9 per cent of the volume of sales in 1999.  By contrast, the share of imported products
increased and reached 10.65 per cent of domestic consumption of sugar, and 10.29 per cent ofdomestic production of sugar.  At the same time the number of employees in the domestic sugar
industry declined by 8 per cent in 2000.
Table 1
Volumes of domestic sugar sales
1997 1998 1999 2000
Quantity (t) 480,636 362,299 356,068 320,362
In (%) 100 75 74
10067
90
Increased imports appeared following the imposition by the Czech Republic of a safeguard
measure on imports of sugar in 1999 (G/SG/N/10/CZE/1) and made the situation in the domestic
sugar industry worse.  Serious injury to the domestic sugar industry has been caused, in particular, due
to the further decrease in domestic sugar purchase and subsequent revenue losses.  Imports of
products in question in 2000 have been realized on substantially lower prices representing only 77 per
cent of the import price average in 1999.  Redirection of purchasing threaten to result in economicdifficulties of the Czech sugar companies to make contracts with the domestic sugar beet growers to
buy their production.G/SG/N/8/CZE/2
Page 2
The injury caused to the domestic sugar industry can only be explained by the volume of
increased imports of products, substitutes of sugar.  There were found to be no other factors
aggravating the serious situation of the domestic industry.
2. Information  on whether there is an abso lute increase in imports or an increase in
imports relative to domestic production
Imports of products in question represented the total amount of 55,876.92 tons in 2000 which
recounted in volume of sugar contained therein equals 35,332.82 tons.
Table 2
Volumes of imports
1999
(t)2000
(t)Increase in
2000 (t)Increase in
2000 (%)
Imports of substitutes ofsugar14,249.92 70,126.84 55,876.99 392
Imports of substitutes of
sugar recounted to the
volume of sugar9,342.58 44,675.40 35,332.82 378
Increased imports calculated as a difference between the total volume of imports in 2000 and
the average volume of imports realized in the period of the last three representative years, representtotal amount of 60,484 tons (38,512.9 tons respectively when recounted to the volume of sugar
contained therein).
Table 3
Volume of increased imports
1997
(t)1998
(t)1999
(t)Average for
97-99
(t)2000
(t)Increased
imports
(t)
Imports ofsubstitutes of sugar5,291.35 9,389.66 14,249.92 9,643 70,126.84 60,484
Imports of
substitutes of sugar
recounted to the
volume of sugar2,911.14 6,233.75 9,342.58 6,162.5 44,675.4 38,512.9
Table 4
Share of imported products on domestic consumption
and domestic production of sugar
1997
(%)1998
/%)1999
(%)2000
(%)
Share on domesticconsumption of
sugar0.72 1.55 2.28 10.65
Share on domestic
production of
sugar0.55 1.33 2.36 10.29G/SG/N/8/CZE/2
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3. Precise description of the product involved
The following are imported products in question and their corresponding classification:
• Isoglucose (HS items 1702.30.10;  1702.40.10;  1702.60.10;  1702.90.30)
• Isoglucose syrups, others (HS items 2106.90.30;  2106.90.59)
• Other sugars (HS items 1702.90.99)
Based on the information provided in the course of the investigation, the Ministry of Industry
and Trade has determined that products "Other glucose and glucose syrup, not containing fructose or
containing in the dry state less than 20 per cent by weight of fructose" (HS item 1702.30.59;
1702.30.99) did not constitute substitutes of sugar and would not be subject to the safeguard measure.Consequently, data relating to the increased imports does not include volumes of imports of these
items.
4. Measure envisaged
Under the Czech Republic legislation, the Ministry of Industry and Trade will submit
conclusions of the investigation to the Government including recommendations on the measurenecessary to remedy serious injury.  It was proposed to introduce tariff quota calculated as an average
volume of imports in the last three representative years.  Imports above tariff quotas will be subject to
the additional duty.
5. Date set for the application of the measure
It is proposed to introduce a safeguard measure not later than 28 July 2001.
6. Expected duration of the measure
A safeguard measure may be applied for a period of up to 4 years.
7. Timetable for progressive liberalization
Yearly increase of tariff quotas.
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