WORLD TRADE  
ORGANIZATION  G/SG/70 
26 January 2004 
 (04-0257) 
Committee on Safeguards Original:   English 
  
 
TRANSITIONAL PRODUCT SPECIFIC SAFEGUARD ON IMPORTS  
OF FOOTWEAR INTO POLAND FROM THE  
PEOPLE'S REPUBLIC OF CHINA 
 
Request for Consultations from Poland
 
 
 
 The following communication, dated 22 January 2 004, is being circulated at the request of the 
Delegation of Poland.  
_______________ 
 
  According to instructions from my authorities in  Warsaw and with regard to Article 16 of the 
Protocol of Accession of China to the WTO, I would like to submit to you notification of the request of Poland for consultations with  the People's Republic of China on injurious imports of footwear 
originating in the PRC and possible remedies thereto. 
  We would like to kindly suggest to hold the above-mentioned consultations in Geneva at the 
earliest convenient date for the Chinese side.  
Request for consultations with the People's Republic of China on injurious  
imports of footwear originating in the PRC and possible remedies thereto 
 
 Poland hereby requests the People's Republic of China to enter into consultations concerning 
increasing imports of footwear originating in the PRC, injury caused by these imports to Polish 
industry as well as possible remedies to avoid further deterioration in the industry. 
 
I. Legal basis of the request  
 
 The legal basis of the request for consultations  is Article 16 of the Protocol of Accession of 
China to the WTO (Transitional Product Specific Safeguard Mechanism). 
 
II. Factual basis of the request  
 
 The factual basis of the request is the information on increase in imports of footwear originating in China, injury suffered by Polish in dustry manufacturing like or directly competitive 
products as well as causal link between the two. 
 1. Product concerned
 
  The product in question is footwear classified under the following HS headings:  6402, 6403, 6404, 6405. 
 G/SG/70 
Page 2  
 
 2. Increase of imports of footwear during the period of investigation
 
  The tables below present the volume and the value of imports of footwear under investigation. 
 
Period 1999 2000 2001 2002 I-VI 
2003 I-IX 
2003 
Volume 
(mln pairs) 62.7 51.8 68 80.8 42.6 74.3 
Value (mln 
US$) 199.96 178.26 206.31 235.95 128.8 227  
 
Total 
imports 
Average 
prices (US$/pair) 3.19 3.44 3.04 2.92 3.02 3.05 
 
 
Period 1999 2000 2001 2002 I-VI 
2003 I-IX 
2003 
Volume 
(mln pairs) 18.05 2.48 1.93 2.24 18.16 41.5 
Value (mln 
US$) 40.58 17.04 16.53 24.36 29.16 68.7  
 Imports 
originating 
in China Average 
prices 
(US$/pair) 2.25 6.86 8.58 10.86 1.61 1.65 
Share of Chinese imports 
in total imports (%) 28.8 4.8 2.8 2.8 42.6 55.8 
 
 According to figures presented above, total imports  of footwear in question, after a slight 
decrease in 2000, have been increasing significantly  since 2001.  In 2001, as compared to 2000, 
imports increased by 31.3 per cent  and in 2002 as co mpared to 2001 by 18.8 per cent.  This trend in 
imports was maintained in 2003.   Imports from China, after decreasing in 2000, remained at a relatively low level until the end 
of 2002.  This was due to the safeguard measure having been in force in the period 1999-2002.  In 
2003, imports from China increased sharply.  During the first 9 months of 2003 the volume of 
footwear of Chinese origin amounted to 41.1 milli on pairs and exceeded total Chinese imports in the 
period 1999-2002.  In 2003 the average prices of foot wear from China were at the lowest level in the 
whole period of investigation and significantly below the average prices of domestic production. 
 
3. Situation of the domestic industry
 
  The table below presents the main indicators concerning the situation of domestic industry 
manufacturing like or directly competitive products.  
Period 1999 2000 2001 I-VI 2002 
Domestic production (mln pairs) 41.97 39.46 37.08 19.75 
Domestic consumption (mln pairs) 86.47 73.16 87.94 63.44 
Domestic sales (mln pairs) 23.8 21.37 20.03 11.25 
Share of domestic sales in 
consumption 27.5 29.2 22.8 17.7 
Capacity utilization 88.15 87.46 82.61 83.58 
Average prices of domestic sales 
(US$/pair) 3.49 4.0 4.42 3.76 
Profitability -1.2 0.2 -2.3 -2.5  G/SG/70 
 Page 3 
 
 
  
 As the figures presented above indicate, during th e period of investigation the situation of the 
domestic industry manufacturing like or directly co mpetitive products has deteriorated significantly.  
Despite the increase in domestic consumption, domes tic sales of like or directly competitive products 
decreased which resulted in a sharp decline in th e share of domestic sales in consumption.  The 
downward trend in domestic sales caused a reductio n of production and a simultaneous decrease in 
capacity utilization.  Moreover, low prices in im ports affected the possible increase of domestic 
prices, and at the end of the period of investigati on they did not fully cover the costs of production.  
This resulted in worsening the profitability indicators.  
4. Causal link
 
  The preliminary causal link determination is based on the facts presented above, indicating coincidence in time increase in low-priced imports of footwear and deterioration in the condition of 
the domestic industry producing like or directly competitive products. 
 
 The data concerning injury analysis do not fully cover the period of investigation for import analysis.  However, they indicate a worsening trend in the situation of the domestic industry.  More 
actual data is currently collected and process ed.  It will be presented as soon as possible. 
 
III. Date and venue of consultations 
  Poland would like to suggest to hold the consu ltations in Geneva at the earliest convenience 
of the Chinese side.   
__________