./.WORLD TRADE
ORGANIZATIONG/SG/N/6/CZE/6
1 March 2002
(02-1044)
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 27 February 2002, has been received from the
Permanent Mission of the Czech Republic.
_______________
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
27 February 2002
2. Products subject to investigation
Stranded wire, ropes and cables (HS item 7312 10)
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 stranded wire, ropes and cables, 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 19,094 tons in 2001, which represents an
increase of 36 per cent, compared to imports in 1999.  Average import prices fell from CZK 62.6/kg
in 1999 to CZK 55.25/kg in 2001.  As a result of increased imports and conditions of those imports,
production of domestic industry fell by 33 per cent and domestic capacity utilization fell to 60 per
cent, when data for the same period of time are compared.  The employment in domestic industry fell
by another 9 per cent in 2001.
The Ministry of Industry and Trade found the evidence of substantial increase in imports of
stranded wire, ropes and cables causing or threatening to cause serious injury to the domestic industry
sufficient and accordingly decided to initiate the investigation.G/SG/N/6/CZE/6
Page 2
The decision to initiate the investigation was published in the Commercial Bulletin dated
27 February 2002.
__________