WORLD TRADE G/SG/N/8/KOR/1
6December 1996
ORGANIZATION(96-5107)
Original: English Committee onSafeguards
NOTIFICATION UNDER ARTICLE 12.1(b) OFTHE
AGREEMENT ONSAFEGUARDS ONFINDING ASERIOUS INJURY
ORTHREAT THEREOF CAUSED BYINCREASED IMPORTS
KOREA
Thefollowing communication, dated 2December 1996, hasbeenreceived fromthePermanent
Mission ofKorea.
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Pursuant toArticle 12.1(b) oftheWTO Agreement onSafeguards, andinlightoftheformat
fornotifications adopted bytheCommittee onSafeguards (G/SG/W/1, 23February 1995), the
Republic ofKorea hereby notifies thattheKorean Trade Commission (KTC) hasmade afinding of
serious injury tothedomestic industry caused bytheincreased imports ofdairy products on
23October 1996 (refer toG/SG/N/6/KOR/2 of1July1996).
1. Evidence ofserious injury caused byincreased imports
Increase ofimports, share ofthedomestic industry inconsumption, andstock:
Asimports oftheproducts subject toinvestigation havegrown, theshare ofdomestic industry
inapparent consumption hasbeenreduced from91.1percentin1993to85.4percentduring thefirst
halfof1996. Domestic stock hasincreased from4,509 tonsto14,994 tonsbetween theendof1993
and30June1994.
Salepriceofimported goods anddomestic goods, andmanufacturing costsofdomestic goods:
Thesalepriceofdomestic goods hasdecreased fromWon5,304 perkgin1993toWon4,994
perkginthefirstfourmonths of1996. Inaddition, themanufacturing costofthedomestic goods
hasbeenhigher thanthesalesprice since 1994.
./.G/SG/N/8/KOR/1
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Reduction ofthenumber ofdairy farming households andlossincurred byLivestock
Cooperatives:
Thenumber ofdairy farming households inKorea:
1993 28,219
1994 25,667
1995 23,519
asofJune1996 22,725
Korean dairy farming households organized Livestock Cooperatives inorder toprocess orsell
theirproducts. Thenetincome before taxes oftherelevant Livestock Cooperatives decreased from
Won6.7billion in1993 toWon4.7billion in1994, andWon 0.2billion in1995. TheLivestock
Cooperatives recorded alossofWon17billion during thefirsthalfof1996.
2. Information onwhether thereisanabsolute increase inimports oranincrease inimports relative
todomestic production
Imports oftheproducts subject totheinvestigation:
Year Imports (tons) Imports increase Domestic production increase
1993 3,217 -- --
1994 15,561 +384% +3.2%
1995 28,007 +80% +4.2%
1996 (first half) 16,320 +16.9% +4.4%
3. Precise description oftheproducts involved
Theimported goods inquestion fallunder thesubheadings 0404.90.0000 (products consisting
ofnatural milkconstituents, whether ornotcontaining added sugar orother sweetening substance,
notelsewhere specified orincluded) and1901.90.2000 (food preparations ofgoods ofheadings 0401
to0404, notcontaining cocoa powder inaproportion byweight oflessthan10percent,notelsewhere
specified orincluded) oftheHarmonized Tariff Schedule ofKorea. Inother words, theproducts
involved aremilkpowder blends which generally contain over75percentmilkpowder byweight.
4. Information onmeasure
TheKorean Trade Commission hasnotmade adecision toapply asafeguard measure yet.
Therefore, there isnoinformation onsuchameasure atthistime. TheKTC willrecommend tothe
relevant Minister anappropriate remedial measure within 45daysoftheinjury determination.