WORLD TRADE
ORGANIZATIONG/SG/N/6/CZE/1
11 March 1999
(99-0970)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.1(a) OF THE AGREEMENT
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION
AND THE REASONS FOR IT
CZECH REPUBLIC
The following communication, dated 8 March 1999, has been received from the Permanent
Mission of the Czech Republic.
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Pursuant to Article 12.1 (a) of the Agreement on Safeguards and using the format adopted by
the Committee on Safeguards (G/SG/N/6), the Czech Republic hereby gives notification of theinitiation of a safeguards investigatory process, as follows:
1. Date investigation was iniatiated
On 3 March 1999, the Ministry of Agriculture decided to proceed to initiate an investigation
process relating to the importation of sugar.
2. Products subject to investigation
Cane or Beet Sugar and Chemically Pure Sucrose, in Solid Form -  tariff heading 1701.
3. Reasons for initiation of the investigation
The investigation was initiated by the Ministry of Agriculture on the basis of a petition filed
by the Czech-Moravian Sugar Association, and on the information and evidence contained therein.
The Ministry of Agriculture has evidence of substantial increases in sugar imports which have
caused and threaten to cause serious injury to the domestic industry.
Imports of sugar in the first quarter of the economic year 1998/99 increased by 1,086 per cent
compared to the same period of the previous economic year 1997/98 and by 845 per cent against the
same period of 1996/97 calendar year.
The Ministry of Agriculture has available data proving that this rapid increase in import
volumes was also observed in the first two months of 1999.
In view of the evidence submitted by the domestic industry, the Ministry of Agriculture has
found that the loss due to a heavy decrease of domestic sugar sales  makes a total of K č 807 million
CZK of which the loss suffered by sugar industry makes K č 573million and by sugar beet growers
Kč 234 million.
Accordingly, the Ministry of Agriculture decided to initiate the investigation.
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