WORLD TRADE
ORGANIZATIONG/SG/N/6/LVA/2
19 July 2002
(02-3997)
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
LATVIA
The following communication, dated 17 July 2002, has been received from the Permanent
Mission of Latvia.
_______________
Pursuant to Article 12.1(a) of the WTO Agreement on Safeguards and to the format of
notifications under the Agreement as adopted by the Committee on Safeguards (G/SG/N/6), Latvia
hereby notifies that the State Bureau of Trade De fence (hereinafter – SBTD) of the Republic of Latvia
decided to initiate a safeguard investigation concerning imports of pork into the territory of Latvia.
1. Date the investigation was initiated
The investigation is initiated on 1 July 2002.
2. Product subject to the investigation
(i) Live pigs, which are provided for slaughter for further obtaining of pork
carcasses, as well as variety meat; code 0103 of the Harmonized CommodityDescription and Coding System.
(ii) Fresh, refrigerated or frozen pork; code 0203 of the Harmonized Commodity
Description and Coding System.
(iii) Variety meat, code 0206 of the Harmonized Commodity Description and Coding
System:
- Fresh or refrigerated pork variety meat; code 020630 of the Harmonized
Commodity Description and Coding System.
- Frozen variety meat (liver), code 020641 of the Harmonized Commodity
Description and Coding System.
- Frozen variety meat (other), code 020649 of the Harmonized Commodity
Description and Coding System.
(iv) Pork carcasses and variety meat are provided for sale in sales network in
unprocessed condition, as well as for production of pork products (sausages,
smoked meat, etc.).G/SG/N/6/LVA/2
Page 2
3. Reasons for initiating the investigation
(i) Was the investigation initiated pursuant to  a petition from the domestic industry?
The investigation is initiated pursuant to the petition of the Latvian Pig Breeders Association.
The initiation of the investigation is supported by 124 local producers, who according to data on
1 April 2002 produce 58.69 per cent of pork live weight obtained in Latvia.
(ii) Evidence on the basis of which the investigation was initiated
(1) The exporters of the product under consideration in 1999-2002 are as follows:
(i) Live pigs which are provided for slaughter and further obtaining of pork carcasses, as
well as variety meat, code 0103 of the Harmonized Commodity Description and
Coding System: Belgium, Czech Republic, De nmark, Estonia, Finland, Great Britain,
Lithuania, Poland and Sweden.
(ii) Fresh, refrigerated or frozen pork, code 0203 of the Harmonized Commodity
Description and Coding System: Austria,  Belgium, Belarus, Germany, Denmark,
Estonia, Spain, Finland, France, Lithua nia, Netherlands, Norway, Poland, Sweden
and the US.
(iii) Fresh or refrigerated pork variety meat, code 020630 of the Harmonized Commodity
Description and Coding System: Fr ance, Lithuania and Netherlands.
(iv) Frozen variety meat (liver), code 02 0641 of the Harmonized Commodity Description
and Coding System: Austria, Belgium, De nmark, Estonia, Spain, France, Lithuania,
Netherlands and Poland.
(v) Frozen variety meat (other), code 020649 of the Harmonized Commodity Description
and Coding System: Austria, Belgium, Ge rmany, Estonia, Spain, France, Lithuania,
Netherlands, Poland and Sweden.
(2) Respective local and imported products are identical in use.
(3) According to data from the Central Statistica l Office the volume and value of the imports of
the products under consideration are as following:
1999 2000 2001 1st quarter of 2002
ProductCode of the
Latvian
Combined
Nomenclature Qty,
tonnesValue,
LVL th.Qty,
tonnesValue,
LVL th.Qty, tonnesValue,
LVL th.Qty,
tonnesValue,
LVL th.
Live pigs
0103 1247.1 777 1012.5 739.8 4885.2 3795.9 2227 1455
Fresh, refrigerated or
frozen pork
0203 4551.3 2300 4749.6 4060 7921.4 7144.4 2466 1995G/SG/N/6/LVA/2
Page 3
1999 2000 2001 1st quarter of 2002
ProductCode of the
Latvian
Combined
Nomenclature Qty,
tonnesValue,
LVL th.Qty,
tonnesValue,
LVL th.Qty, tonnesValue,
LVL th.Qty,
tonnesValue,
LVL th.
Fresh or refrigerated
pork variety meat
020630 6.3 2.4 0 0 0.7 0.4 3 1
Frozen pork variety
meat (liver)
020641 57.7 26.1 46.9 21.9 207 87.4 66 24
Frozen pork variety
meat (other)
020649 561.6 178.4 41.6 25.5 307.4 162.5 144.4 61
(4) The analysis of the information presented above shows the following tendencies:
(i) comparing the volume of imports of the product under consideration in 1999 with the
same indicators in 2001, the volumes of imports have sufficiently grown on 2001, the
same tendency is registered also in the first quarter of 2002;
(ii) the volume of imports of live pigs in 2000, compared with 1999, has fallen by 19 per
cent, however in 2001, in comparison with 2000, has grown by 382 per cent;similarly, comparing the first quarter of 2002 and the first quarter of 2001, the
increase of the imports volume is up to 182 per cent;
(iii) fresh, refrigerated or frozen imports volume in 2000, compared with 1999, increased
by 4 per cent, but in 2001, compared with 2000, increased by 67 per cent. Similarly,
comparing the first quarter of 2002 with the first quarter of 2001 the increase is39 per cent;
(iv) the volume of imports of fresh or refr igerated pork variety meat in 2001, compared
with 1999, has fallen by 89 per cent, in 2000 this product was not imported at all.
However, in the first quarter of 2002 the volume of imports has increased by 329 per
cent, compared with 2001 in total;
(v) frozen pork variety meat (liver) imports volume in 2000, compared with 1999,
decreased by 19 per cent, but in 2001, compared with 2000, increased by 341 per
cent. Respectively in the first quarter of 2002, compared with the first quarter of
2001, the volume of imports increased by 23 per cent.
(vi) frozen pork variety meat (other) imports volume in 2000, compared with 1999,
decreased by 93 per cent, but in 2001, compared with 2000, increased by 639 per
cent. Respectively in the first quarter of 2002, compared with the first quarter of
2001, the volume of imports increased by 176 per cent;
(vii) imports quantity, summarized for all described commodity codes, increased from
6,424 tonnes in 1999 up to 13,321.7 tonnes in 2001, i.e. by 107 per cent.
(5) The comparison of product prices:
(i) average value of live pigs per kilogram started to fall in the second quarter of 2001: in
the third quarter of 2001, compared with the second quarter of 2001, the price
decreased by 18 per cent, in the fourth quarter of 2001, compared with the thirdG/SG/N/6/LVA/2
Page 4
quarter, by 5 per cent, but in the first quarter of 2002, compared with the fourth
quarter of 2001 by 10 per cent;
(ii) fresh, refrigerated or frozen  pork average value per kilogram in the first quarter of
2002, in comparison with the fourth quarter of 2001, decreased by 11 per cent;
(iii) average value per kilogram of frozen pork variety meat (liver) in 2001 is lower than
in 2000 by 11 per cent, but in the first quarter of 2002, compared with the first quarter
of 2001, is lower by 24 per cent;
(iv) average value per kilogram of frozen pork variety meat (other) in 2001 is lower than
in 2000 by 13 per cent, but in the first quarter of 2002, compared with the first quarter
of 2001, is lower by 4 per cent.
(6) The volume of domestic product:
(i) Produced pork live weight volume in Latvia in 1999-2001 amounted to (all kind of
households in total):
- 44,580 tonnes in 1999;
- 40,437 tonnes in 2000;- 40,574 tonnes in 2001.
(ii) average sale prices of pork by delivering of live pigs to processing enterprises in live
weight:
- starting from June 2000, when the purchase price was 0.69 Ls/kg, the price
increased up to 0.83 Ls/kg in June 2001, i.e. during the year have increasedby 20 per cent;
- from June 2001, when purchase price was 0.83 Ls/kg, started the decrease of
the price down to 0.58 Ls/kg in April 2002: in July 2001, compared with
June, the price has decreased by 4 per cent; in August, compared with July,
by 4 per cent; in September, October and November purchase pricesremained unchanged; in December, compared with November, decrease of
prices by 6.5 per cent;  in January, compared with December, by 1 per cent;
in February, compared with January, by 13 per cent; in March, compared
with February, by 6.5 per cent; in April, compared with March, unchanged;
in May, compared with April, increase of price by 2 per cent. In total the
purchase price of pork during the aforementioned 11 months has decreased
by 29 per cent.
(7) Losses of the local producers
(i) According to the submission of the Latvian Pig Breeders Association, due to
problems with selling of pork, emerged from the beginning of January 2002, theLatvian pork producers lost the sufficient share of the respective market. In February-
May 2002 Latvian pig breeders suffered damages up to LVL 2.83-2.9 million. These
losses were caused by over-keeping of fed unsold pigs, with the result that their
quality characteristics and price decreased, as well as costs of over-consumed fodder,
which was fed to over-kept pigs.
(ii) Market shares (estimation of the theoretical Latvian consumption markets):
(a) The theoretical Latvian consumption market of pork (except variety meat)
has been calculated as following:G/SG/N/6/LVA/2
Page 5
+ Import under code 0103 (live pigs) x (multiplied) 68 per cent
(coefficient for obtaining of meat result from live weight).
+ Import under code 0203 (fresh, refrigerated or frozen pork).
+ Theoretical sale of pork of the local producers in the Latvian market.
Theoretical sale of pork of the local producers in the Latvian market has been
calculated as following:
(1) Pork in live weight produced by the local producers – (subtracted) export
under code 0103 (live pigs) = net pork in live weight produced by the local
producers;
(2) Net pork in live weight produced by the local producers x (multiplied) 68 per
cent (coefficient for obtaining of meat result from live weight) = amount of
pig carcasses produced by the local producers;
(3) Amount of pig carcasses produced by the local producers – (subtracted)
export under code 0203 (fresh, refrigerated or frozen pork) = Theoretical sale
of pork produced by the local producers, in the Latvian market;
= The theoretical Latvian consumption market of pork (except variety meat)
(b) The theoretical Latvian consumption market of pork variety meat has been calculated
as following:
+ Import under code 0103 (live pigs) x (multiplied) 14 per cent (coefficient for
obtaining of variety meat result from live weight).
+ Import under codes 020630; 020641; 020649 (fresh, refrigerated or frozen pork
variety meat).
+ Theoretical sale of pork variety meat produced by the local producers in the Latvian
market.
Theoretical sale of pork variety meat produced by the local producers in the Latvian
market has been calculated as following:
(1) Pork in live weight produced by the local producers - (subtracted) export
under code 0103 (live pigs) = net pork in live weight produced by the local
producers;
(2) Net pork in live weight produced by the local producers x (multiplied) 14 per
cent (coefficient for obtaining of variety meat result from live weight) =
amount of pork variety meat produced by the local producers;
(3) Amount of pork variety meat produced by the local producers - (subtracted)
export under codes 020630; 020641; 020649 (fresh, refrigerated or frozen
pork variety meat) = Theoretical sale of pork variety meat produced by the
local producers in the Latvian market;
= Theoretical Latvian consumption market of pork variety meat.
(c) The theoretical consolidated Latvian consumption market of pork and pork variety
meat has been calculated as following:
+ Theoretical Latvian consumption market of pork (except variety meat)G/SG/N/6/LVA/2
Page 6
+ Theoretical Latvian consumption market of pork variety meat
= Theoretical consolidated Latvian consumption market of pork and pork variety meat.
(d) Coefficient for obtaining of slaughter result except variety meat (68 per cent of pig
live weight) and coefficient for obtaining of amount of variety meat (14 per cent ofpig live weight) has been obtained from the book “Zemnieku rokasgr āmata”
(Farmers` Manual), published by the Publishing House “Avots” in 1991, compiled by
J.Uzuleņš, pg. 252.
(e) The theoretical Latvian consumption market shares of the imported commodity and
the commodity produced by the local producers:
Table No. 1: Theoretical market shares of the imported pork production
No. YEAR Theoretical Latvian
consumption market
shares for pork  (except
variety meat)Theoretical Latvian
consumption market
shares for variety meatTheoretical consolidated
Latvian consumption
market shares for pork and
variety meat
12 3 4 5
1. 1999 15.2% 11.4% 14.6%
2. 2000 16.5% 3.9% 14.6%
3. 2001 28.9% 17.4% 27.2%
Table No. 2: Theoretical market shares of the local producers` pork production
No. YEAR Theoretical Latvian
consumption market
shares for pork  (except
variety meat)Theoretical Latvian
consumption market
shares for variety meatTheoretical consolidated
Latvian consumption
market shares for pork and
variety meat
12 3 4 5
1. 1999 84.8% 88.6% 85.4%
2. 2000 83.5% 96.1% 85.4%
3. 2001 71.1% 82.6% 72.8%
Dynamics of the theoretical Latvian consumption market share of the imported commodity
and the local producers' commodity indicates that the market share of the local producers considerably
decreased in 2001:
(1) Theoretical Latvian consumption market share of pork (except variety meat)
decreased by 12.4 per cent.
(2) Theoretical Latvian consumption market share of pork variety meat decreased by
13.5 per cent.
(3) Theoretical consolidated Latvian consumption market share of pork and variety meat
decreased by 12.6 per cent.
(iii) Effect on prices of the product:
According to data, summarized by the Latvian Pig Breeders Association, the average
purchase price of pork in live weight in Latvia in 2001 was 0.78 LVL/kg. However in
February 2002 the average sale price of pork, at delivery of live pigs to processing
enterprises, was 0.62 LVL/kg, in March – 0.58 LVL/kg, in April – 0.58 LVL/kg, in
May – 0.59 LVL/kg. Such prices inevitably are causing damage to domestic pig
breeders. Taking into consideration represented import volumes and values, theG/SG/N/6/LVA/2
Page 7
SBTD admits the possibility that the decrease of prices has occurred, which could be
caused by the imports in growing values, as well as the decrease of the per unit value.
(iii) Evidence, if any, on critical circumstances where delay would cause damage which it
would be difficult to repair
Pursuant to the provisions of the Latvian legislation on safeguards (Paragraph 22 of the
Regulation No. 212 “Procedures for the Implementation of Measures for Safeguarding the Domestic
Market”) the SBTD shall take a decision regarding the existence of critical circumstances and thenecessity of provisional measures not later than 30 days after the initiation of an investigation.
4. Other information
The public notice on the initiation of investigation was published in the official newspaper
“Latvijas Vestnesis” No. 99(2674) of 3 July 2002, which also indicated that:
(i) All interested parties are invited to announce themselves to the SBTD and to submit
written arguments and information to the SBTD within 20 days from the publishing
date of the Decision on initiation of the investigation in the official newspaper of the
Republic of Latvia “Latvijas V ēstnesis”.
(ii) The interested parties are invited to submit a written application about organization of
hearings to the SBTD within 20 days from the publishing date of the Decision oninitiation of the investigation in the official newspaper of the Republic of Latvia
“Latvijas V ēstnesis”.
(iii) All applications, arguments and information shall be submitted to the SBTD in
written form, however, not electronically (unless stated otherwise), and the interested
party’s name, address, e-mail address, phone and fax numbers shall be identified in it.
(iv) Any additional information concerning the investigation may be obtained in the
SBTD (Maz ā monētu str. 3, R īga, LV-1050, Latvia, phone: +371 7814295, fax: +371
7814294, e-mail: vitab@vitab.gov.lv).
__________