WORLD TRADE
ORGANIZATIONG/SG/N/8/SVK/2
G/SG/N/10/SVK/2G/SG/N/11/SVK/2
14 April 2003
(03-2063)
Committee on Safeguards Original:  English
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT
THEREOF CAUSED BY INCREASED IMPORTS
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)
OF THE AGREEMENT ON SAFEGUARDS
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2
OF THE AGREEMENT ON SAFEGUARDS
SLOVAK REPUBLIC
The following communication, dated 8 April 2003, has been received from the Permanent
Mission of the Slovak Republic.
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Pursuant to Articles 12.1(b), 12.1(c) and Article 9, Footnote 2 of the Agreement on
Safeguards, the Slovak Republic submits a notification on finding serious injury or threat thereof, to
the domestic industry producing ammonium nitrate with magnesial or calcium additive and anotification on proposed safeguard measure.  This notification contains all pertinent information
relating to the proposed safeguard measure in accordance with Article 12.2 of the Agreement on
Safeguards.G/SG/N/8/SVK/2
G/SG/N/10/SVK/2
G/SG/N/11/SVK/2
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NOTIFICATION UNDER ARTICLE 12.1(B) AND 12.1(C) OF THE AGREEMENT ON
SAFEGUARDS
In light of the agreed format for notifications (G/SG/W/1, 23 February 1995), the Slovak
Republic provides notification to the Committee on Safeguards of findings of serious injury or threat
thereof caused by increased imports and notification of proposed safeguard measure.
On 14 October 2002, the Slovak Republic initiated an investigation relating to serious injury to
domestic producers of products like or directly competing with imported ammonium nitrate, which
contains min. 34 per cent of nitric, used as manure in agriculture (under CN code ex 3102 30 90 of theCustoms Tariff).  The initiation of the investigation has been notified to the Committee on Safeguards
in G/SG/N/6/SVK/3 (15 October 2002).
Consistent with Article 12.2 of the Agreement on Safeguards, this notification contains all
pertinent information relating to the product on which definitive safeguard measure is proposed.  Thisnotification includes all the elements of information specified in Article 12.2 of the Agreement on
Safeguards.
1. Provide evidence of serious injury or th reat thereof caused by increased imports
The Ministry of Economy of the Slovak Republic, the government authority responsible for
conducting the investigation, concluded that ammonium nitrate, which contains min. 34 per cent of
nitric, used as fertilizer in agriculture (under CN code ex 3102 30 90 of the Customs Tariff)  is being
imported into the Slovak Republic in such increased quantities and under such conditions as to cause
serious injury or threat thereof to the domestic industry.  This conclusion is based on a number offactors as described below.
  In tonnes
Import of product  (CN code ex 3102 30 90) 1999 2000 2001 2002
  Ukraine 562 543 4,017 6,027
  Russian Federation 0 985 24,649 19,310
  Total import 562 1,528 28,726 25,337
The import of product in question increased during investigation period to 28 726 tonnes in
2001, which represents an increase of 5,111 per cent and average unit price of imported product was
40 - 45 per cent less in comparison to recalculated prices of comparable goods (ammonium nitratewith magnesial or calcium additive).  In 2002 the level of import remained at a very high level.
As a result of increased imports and conditions of those imports, the domestic producers lost
their market share.  In 1999 their market share was 99.2 per cent, in 2001 only 79.5 per cent.
It was determined that the significant decline of dome stic sales resulted in redirection of sales to the
less effective foreign markets.G/SG/N/8/SVK/2
G/SG/N/10/SVK/2
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The table below contains all relevant indicators concerning the injury to the domestic
industry.
Situation of domestic producers in relation to product in question
1999 2000 2001 2002 ∗
  Domestic consumption  (in %, 1999=100 %) 100 185 197 196
  Domestic sales (in %, 1999=100 %) 100 183 158 160
  Total production (in %, 1999=100 %) 100 145 149 135
   Market share of domestic producers (in %) 99 98 79 81
  Net profit/loss on domestic market sales
  (in %, 1999=100 %) 100 264 237 112
  Employment (end of the year) 100 99 96 96
  Productivity (in %, 1999=100 %) 100 178 157 84
∗ preliminary results
It was determined that significant increase in imports deteriorated basic economic indicators,
in particular production, domestic sales, profitability, share on domestic market and employment.  On
the basis of these results it was found, that the imports of products in question caused and still threaten
to cause serious injury to the domestic industry.
The Ministry of Economy of the Slovak Republic examined also other factors, which might
have effect on the existing injury to the domestic industry.  The situation on the world market,
production and exporting capacities represent further threat to the domestic market.  In 1999 the
expansion of ammonium nitrate from the Russian Federation to other markets has started.  The lowprices of ammonium nitrate originated in the Russian Federation are based on the double price system
of natural gas for domestic producers and for export and this fact allows to export the ammonium
nitrate for very low prices.  Because of this reason our producers were not able to compete with these
exports.
It is considered that there is a causal link between increased volume of imports in 2001 and a
serious injury caused to the domestic industry.  This is demonstrated by the coincidence in time
between the recent increase in imports and the rapid deterioration of the injury indicators.
The safeguard measures adopted by number of countries in 2002 caused distortions on the
world market, in particular in their traditional business flows and caused unforeseen development.
Increased imports of product under CN code ex 3102 30 90 caused and still threaten to cause injury to
the domestic industry of like or directly competitive products.G/SG/N/8/SVK/2
G/SG/N/10/SVK/2
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2. Provide information on whether there is an absolute increase in imports or an increase
in imports relative to domestic production (please see also Article 2.1 for the context)
The table below contains data of consumption volume and development of imports
1999 2000 2001 2002 ∗
 Consumption (in tonnes) 87,746 162,405 173,494 172,000
 Consumption (in % 1999=100 %) 100 185 197 196
 Ratio between imports and
 consumption (in %) (Market share) 1 2 21 19
 Total imports (in tonnes) 562 1,528 28,726 25,337
 Rate of increase (in % 1999=100 %) 100 272 5,111 4,508
 Ratio between imports and total
 production (in %) 0.2 0.6 7.0 6.9
 Ratio between imports and production sold (in %) on domestic market 0.8 2.0 25.8 22.8
∗ preliminary results
3. Provide precise description of the product involved
Ammonium nitrate (HS item ex 3102 30 90 – Ammonium nitrate, whether or not in aqueous
solution;  other), which contains min. 34 per cent of nitric, used as manure in agriculture.
4. Provide precise description of the proposed measure
The Ministry of Economy of the Slovak Republic proposed to apply the safeguard measure in
the form of global quantitative quota, calculated as an average of imports during the last three years
(1999-2001).  In accordance with the relevant provisions of the Act No. 214/1997 Coll. and the WTO
Agreement on Safeguards, the measure will be liberalized progressively during the period of its
validity.
5. Provide proposed date of introduction of the measure
The proposed date of introduction of the proposed safeguard measure is 20 April 2003.
6. Provide expected duration of the measure
The safeguard measure will be applied for the maximum period not exceeding 19 April 2006
or until accession of the Slovak Republic into the European Union.
7. For a measure with a duration of more than three years, provide the proposed date for
the review (under Article 7.4) to be held not later than the mid-term of the measure, if
such a date for the review has already been scheduled
Not applicable.G/SG/N/8/SVK/2
G/SG/N/10/SVK/2
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8. If the expected duration is over one year, provide expected timetable for progressive
liberalization of the measure
20/04/2003-
19/04/200420/04/2004 -
19/04/200520/04/2005-
19/04/2006
Quantitative quota (in tonnes) 10,252 11,277 12,302
9. Provide information relating to the extension of a safeguard measure
Not applicable.
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2, ON THE NON-APPLICATION OF
SAFEGUARD MEASURE TO DEVELOPING COUNTRIES UNDER ARTICLE 9.1
1. Specify the measure
See response to question 4 above.
2. Specify the product subject to the measure
See response to question 3 above.
3. Specify the developing countries to which the measure is not applicable under
Article 9.1 of the Agreement on Safeguards, and the import shares of these countries
individually and collectively
The developing countries to which the measure is not applied under Article 9.1 of the
Agreement on Safeguards are the members of the WTO listed in Annex of the Government
Regulation No. 728/2002, issuing the Customs Tariff and establishing rates of import tariffs on goods
origination in developing countries and least developed countries and the terms for their application.
A list of these countries is attached to this notification.
4. Subsequently, if there is a change in the list of developing countries exempted form the
safeguard measure pursuant to Article 9.1, please notify
(i) the reference to the WTO document that no tified the Members about the initial action
under footnote 2 to Article 9.1;
(ii) if applicable, names of the countries which are dropped from the list of developing
countries to which the safeguard measure does not apply pursuant to Article 9.1, the
countries remaining on the list, the individual and collective import shares of thedeveloping countries remaining on the list, and the date on which the safeguard
measure applies to the countries dropped from the list;
(iii) if applicable, names of the countries which are added to the list of developing
countries to which the safeguard measure does not apply pursuant to Article 9.1, the
list of all the countries on the list, the individual and collective import shares of the
developing countries on the list, and the date from which the safeguard measure does
not apply to the countries which are added to the list.
Not applicable.G/SG/N/8/SVK/2
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ANNEX
AL Albania LS Lesotho
AO Angola MG Madagascar
AG Antigua and Barbuda MY Malaysia
AR Argentina MW Malawi
BH Kingdom of Bahrain MV Maldives
BD Bangladesh ML Mali
BB Barbados MR Mauritania
BZ Belize MU Mauritius
BJ Benin MX Mexico
BO Bolivia MD Moldova
BW Botswana MN Mongolia
BR Brazil MA Morocco
BN Brunei Darussalam MZ Mozambique
BF Burkina Faso MM Myanmar
BI Burundi NA Namibia
CM Cameroon NI Nicaragua
CF Central African Republic NE Niger
TD Chad NG Nigeria
CL Chile OM Oman
CN China PK Pakistan
CO Colombia PA Panama
CG Congo PG Papua New Guinea
CR Costa Rica PY Paraguay
CI Côte d’Ivoire PE Peru
CU Cuba PH Philippines
CD Democratic Republic of the Congo QA Qatar
DJ Djibouti RW Rwanda
DM Dominica LC Saint Lucia
DO Dominican Republic VC Saint Vincent and the Grenadines
EC Ecuador SN Senegal
EG Egypt SL Sierra Leone
SV El Salvador SB Solomon Islands
FJ Fiji ZA South Africa
GA Gabon LK Sri Lanka
GM Gambia SR SurinameG/SG/N/8/SVK/2
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GE Georgia SZ Swaziland
GH Ghana TZ Tanzania
GD Grenada TH Thailand
GT Guatemala TG Togo
GN Guinea TT Trinidad and Tobago
GW Guinea-Bissau TN Tunisia
GY Guyana UG Uganda
HT Haiti AE United Arab Emirates
HN Honduras UY Uruguay
IN India VE Venezuela
ID Indonesia ZM Zambia
JM Jamaica ZW Zimbabwe
JO Jordan
KE Kenya
KW Kuwait
KG Kyrgyz Republic
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