./.WORLD TRADE
ORGANIZATIONG/SG/N/6/MDA/1
30 September 2003
(03-5120)
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
REPUBLIC OF MOLDOVA
The following communication, dated 24 September 2003, has been received from the
Permanent Mission of Moldova.
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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 Republic of Moldova hereby gives notification of the
initiation of a safeguards investigatory process, as follows:
1. Date investigation was initiated:
On 21 May 2003, the Investigation Authority of the Republic of Moldova decided 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 Investigation Authority of the Republic of Moldova on
the basis of a petition submitted by the Union of Sugar Producers from Moldova together with theUnion of Associations of Agricultural Producers, representing the majority of the Moldovan sugar
producers and beet growers.
The Investigation Authority has evidence of substantial increases in imports of sugar which
have caused and threaten to cause serious injury to the domestic sugar industry.
In 2000 and 2001 the total imports of sugar in volume has amounted to 8,500 and 30.200 tons
respectively, and in 2002 it had reached 82,400 tons, which represents the enormous increase of
imports of sugar by 870 per cent in 2002 compared to the year 2000.  This development in imports of
sugar caused that the share of imports in domestic consumption has increased from 9.4 per cent in2000 to 43 per cent in 2002.
According to the data submitted by the domestic industry, the Investigation Authority has
found that due to the increased imports of sugar, the total loss of the domestic industry reached
MDL 47.7 million in 2002, the number of employees in domestic sugar industry declined by360 employees.  The area under beets cultivation decreased from 62,800 ha in 2000 to 52,600 ha inG/SG/N/6/MDA/1
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2003, and the production capacities decreased by 15,000 tonnes (see table attached).  Following this
trend in imports of sugar under unchanged circumstances the area under cultivation is expected to
decrease to 45,000 ha in 2003, and other four to five sugar plants to shut down their operations in the
next coming two years.
After further examination of the petition, the Investigation Authority has decided to initiate
the safeguard investigation.
Statistical data
Figure 2000 2001 2002 2001/2000 2002/2001
Total imports of sugar for
domestic consumption (tonnes)8,500 30,200 82,400 3.55 2.73
Area under beet cultivation (ha) 62,800 57,400 52,600 0.91 0.91
Domestic consumption (tonnes) 90,000 90,000 90.000
Sales of import sugar in the
domestic market (tonnes)8,500 29,800 39,000 3.50 1.3
Number of sugar plants in the
industry7 7 6 1.00 0.86
Capacity of production (tonnes) 195,000 195,000 180,000 1.00 0,92
Production (tonnes) 102,000 115,000 114,000 1.13 0.99
Production capacity utilization
(%)52% 59% 63%
Employment in sugar industry 4,349 4,086 3,726 0.94 0.91
Employment in beets growing
sector of agriculture63,000 57,000 53,000 0.90 0.92
Economic result (mil. MDL) -2.8 -19.9 -47.7 - -
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