WORLD TRADE
ORGANIZATIONG/SG/N/8/EGY/2
G/SG/N/10/EGY/2
1 March 2000
(00-0773)
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
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)
OF THE AGREEMENT ON SAFEGUARDS
EGYPT
The following communication, dated 25 February 2000, has been received from the
Permanent Mission of Egypt.
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With regard to WTO document No. G/SG/N/6/EGY/2 dated 24 September 1999, regarding
notice of initiation of a safeguard investigation concerning imports of "Common Fluorescent Lamps",
and pursuant to the above-referenced provisions of the Agreement on Safeguards, and in the light of
the agreed format for notifications (G/SG/1, July  1996), the Arab Republic of Egypt provides the
following notification to the Committee on Safeguards.
It is worth noting that none of the concerned Member countries had requested consultations in
this regard in accordance with Article 12.5.
I. NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT THEREOF
CAUSED BY INCREASED IMPORTS
1. Provide evidence of serious injury or th reat thereof caused by increased imports
The following is a summary of the conclusions reached during the investigation of serious
injury:
(a) Imports have increased significantly since 1997/98, both in absolute terms and in
relation to production, and the rate of increase is accelerating from year to year.
(b) There has been a significant decline in both production and sales during 1998/99.
(c) The market share of the domestic industry declined significantly in 1998/99.
(d) There has been a significant decline in capacity utilization in 1998/99.(e) Inventory increased significantly since 1997/98 and continued to increase in 1998/99
until it exceeded sales in five months.G/SG/N/8/EGY/2
G/SG/N/10/EGY/2
Page 2
(f) Although profits were maintained during 1996/97 and 1997/98 there were losses in
1998/99.
(g) The above-mentioned injury aspects occurred when there was an increase in imports.
(h) Other causes of injury have been examined.  There were a number of aspects of injury
which management had not been addressing , including costs, investment in plant,
equipment, and technology and marketing.  It has been found that the injury factors
existed before the large increase in imports.  The sudden surge in imports has made
the injury factors serious.
Actual injury was found not a threat of injury.
2. Provide information on whether there is an absolute increase in imports or an increase
in imports relative to domestic production
There was an absolute increase in imports since 1996/97.  Imports increased in 1997/1998 by
145 per cent compared to 1996/97.  In 1998/99 the imports increased by 219 per cent compared to
1996/97 (i.e. more than triple the volume of imports in 1996/97).  There has been an increase in
imports relative to domestic production since 1996/97.  Imports increased to 148 per cent in 1997/98and to 262 per cent in 1998/99 compared to 1996/97.
3. Provide a precise description of the product involved
Common fluorescent lamps from 18 to 40 watts.  These are classified under H.S. Tariff
Heading No. 85 39 31 10.
4. Provide a precise description of the measure
The safeguard measure is to be over one year from the additional duty of 30 per cent.
5. Provide the expected duration of the measure
As noted in item 4 above, the measure calls for the imposition of an additional duty over one
year.
6. For a measure with a duration of more than 3 years, provide the proposed date for this
review (under Article 7.4) to hold not later than mid-term of the measure, if such a date
for review has already been scheduled
Not applicable.  Refer to item 5 above.
7. If the expected duration is over one year, provide the expected timetable for progressive
liberalization of the measure
Not applicable.G/SG/N/8/EGY/2
G/SG/N/10/EGY/2
Page 3
II. NOTIFICATION PURSUANT TO ARTICLE 12.1(C) ON THE AGREEMENT ON
SAFEGUARDS UPON TAKING A DECISION TO APPLY OR EXTEND A
SAFEGUARDS MEASURE
1. Provide evidence of serious injury or th reat thereof caused by increased imports
The following is a summary of the conclusions reached during the investigation of serious
injury.
(a) Imports have increased significantly since 1997/98, both in absolute terms and in
relation to production, and the rate of increase is accelerating from year to year.
(b) There has been a significant decline in both production and sales during 1998/99.
(c) The market share of the domestic industry declined significantly in 1998/99.(d) There has been a significant decline in capacity utilization in 1998/99.(e) Inventory increased significantly since 1997/98 and continued to increase in 1998/99
until it exceeded sales in five months.
(f) Although profits were maintained during 1996/97 and 1997/98 there were losses in
1998/99.
(g) The above-mentioned injury aspects occurred when there was an increase in imports.(h) Other causes of injury have been examined.  There were a number of aspects of injury
which management had not been addressing , including costs, investment in plant,
equipment, and technology and marketing.  It has been found that the injury factors
existed before the large increase in imports.  The sudden surge in imports has made
the injury factors serious.
In light of the above findings, it was concluded that the domestic industry had not addressed
the problems of cost, investment and marketing, including packaging adequately over the period priorto the surge of imports.  It was concluded that the imports of fluorescent lamps had changed the injury
already being experienced to serious injury and this caused a significant overall impairment of its
position.  It was also concluded that actual injury had been found not a threat of injury.
2. Provide information on whether there is an absolute increase in imports or an increase
in imports relative to domestic production
There was an absolute increase in imports since 1996/97.  Imports increased in 1997/1998 by
145 per cent compared to 1996/97.  In 1998/99 the imports increased by 219 per cent compared to
1996/97 (i.e. more than triple the volume of imports in 1996/97).  There has been an increase inimports relative to domestic production since 1996/97.  Imports increased to 148 per cent in 1997/98
and to 262 per cent in 1998/99 compared to 1996/97.
3. Provide a precise description of the product involved
Common fluorescent lamps from 18 to 40 watts.  These are classified under H.S. Tariff
Heading No. 85 39 31 10.G/SG/N/8/EGY/2
G/SG/N/10/EGY/2
Page 4
4. Provide a precise description of the proposed measure
The safeguard measure is to be over one year from the additional duty of 30 per cent.
5. Provide the expected date of introduction
The proposed date of introduction of the measure is 27 February 2000.
6. Provide the expected duration of the measure
The measure will be imposed over one year.
7. For a measure with a duration of more than 3 years, provide the proposed date for this
review (under Article 7.4) to hold not later than mid-term of the measure, if such a date
for review has already been scheduled
Not applicable.
8. If the expected duration is over one year, provide the expected timetable for progressive
liberalization of the measure
Not applicable.
9. If the measure is being extended, also provid e:  (i) evidence that the industry concerned
is adjusting and that the safeguard measure continues to be necessary to prevent or
remedy injury
Not applicable.
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