./.WORLD TRADE
ORGANIZATIONG/SG/N/6/CZE/5
6 February 2002
(02-0556)
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 4 February 2002, 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 notifies that its competent
authorities have initiated a safeguard proceeding, as follows:
1. Date investigation was initiated
30 January 2002
2. Products subject to investigation
Citric acid (HS item 2918 14 00)
3. Reasons for initiating the investigation
The investigation was initiated by the Ministry of Industry and Trade having sufficient
evidence of the substantially increased imports of citric acid, absolute or relative to domestic
production and consumption, under such conditions as to cause or threaten to cause serious injury to
the domestic industry concerned.
Imports of the product in question increased to 5,107 tons in 2001, which represents an
increase of 18.72 per cent, compared to three years average of 1998-2000 when the imports amounted
to 4,302 tons.  Average import prices fell from 51.36 Kc/kg in 1998 to 34.26 Kc/kg in 2001.  As a
result of increased imports and conditions of those imports, the domestic production fell by 14.4 per
cent from 22,450 tons in 2000 to 19,223 tons in 2001 and domestic capacity utilization fell to 71.2 per
cent.  The employment in domestic industry fell by another 11 per cent in 2001.
The Ministry of Industry and Trade found the evidence of substantial increase in imports of
citric acid causing or threatening to cause serious  injury to the domestic industry sufficient and
accordingly decided to initiate the investigation.G/SG/N/6/CZE/5
Page 2
The decision to initiate the investigation was published in the Commercial Bulletin dated
30 January 2002.
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