./.WORLD TRADE
ORGANIZATIONG/SG/N/6/CZE/2
17 November 2000
(00-4904)
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 15 November 2000, 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
1 November 2000.
2. Product subject to investigation
Footwear, gaiters and the like, parts of such articles falling under Harmonized System Tariff
Headings 6401, 6402, 6403, 6404 and 6405.
3. Reasons for the initiation of the investigation
The investigation was initiated by the Ministry of Industry and Trade on the basis of an
application filed by the Czech Footwear Association on behalf of the domestic industry, and on the
information and evidence contained therein.
The Ministry of Industry and Trade has evidence of substantial increases in imports of
footwear products, both in absolute terms and compared to domestic production and consumption.
While imports rose from 24 million pairs in 1996 to 30 million pairs in 1999, domestic production fell
in the same period of time from 26 million pairs to 13.5 million pairs (by 48 per cent).  As a result of
raising imports and conditions of those imports, the industry's share in the total domestic consumption
came almost to zero (from 28 per cent in 1996) and the total domestic production had to be exportedin 1999.
During the period 1996-1999, the total income from sales for the domestic industry as a
whole declined by 35 per cent.  Domestic capacity utilization fell to 52 per cent of capacities used in
1996.  The number of people employed in the domestic industry fell by 12,500.G/SG/N/6/CZE/2
Page 2
The Ministry of Industry and Trade found the evidence of substantial increase in footwear
imports causing or threatening to cause serious injury to the domestic industry sufficient and
accordingly decided to initiate the investigation.
__________