G/SG/N/8/UKR/6/Suppl.2  
G/SG/N/10/UKR/6/Suppl.2  
 
25 August 2021  
(21-6409) Page: 1/5 
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 OF A PROPOSAL TO EXTEND THE EXISTING MEASURE  
UKRAINE  
Sulfuric acid and oleum  
Supplement  
The following communication, dated  and received  on 20 August 2021, is being circulated at the 
request of the delegation of  Ukraine.  
 
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Pursuant to Article 12.1(b) of the Agreement on Safeguards Ukraine submits a notification on 
proposal to extend a safeguard measure on imports of sulfuric acid and oleum. This notification 
contains all pertinent information relating to the proposed safeguard measures in accordance with 
Article 12.2 of the Agreement on Safeguards and a request for c onsultations pursuant to Article 12.3 
of the Agreement on Safeguards.  
On 5 August 2021 the Interdepartmental Commission for International Trade  took the Decision 
No SP – 498/2021/4411 -03 on initiation of a review of safeguard  measures on imports to Ukraine 
of sulfuric acid and oleum regardless of country of origin and export (G/SG/N/6/UKR/12/ Suppl.1 of 
12 August  2021).  
On 7 August 2021 the abovementioned decision was published in the official newspaper 
"Uryadoviy  Courier" No. 152.  
1  EVIDENCE THAT THE S AFEGUARD MEASURE CONTINUES TO BE NECESSARY TO 
PREVENT OR REMEDY SERIOUS INJURY OR THREAT THEREOF AND THAT THE INDUSTRY 
CONCERNED IS ADJUSTING  
In order to determine serious injury to the domestic industry as a result of increased imports into 
Ukraine, an as sessment  of all relevant factors of objective and quantifiable nature affecting the 
situation in this industry was undertaken.  
To determine the serious damage to the domestic industry as a result of increased imports to 
Ukraine, an assessment of all releva nt factors of objective and quantifiable nature that affect the 
situation in this industry was carried out  
The period considered  covers 2018 –– 1st half of 2021.  This period consists of four comparable 
periods: 2018 (1st period), 2019 (2nd period), 2020 (3rd period), 2nd half of 2020 – 1st half of 2021 
(4th period).  G/SG/N/8/UKR/6/Suppl.2 • G/SG/N/10/UKR/6/Suppl.2  
 
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  Table 1  
Item  1st period  2nd period  3rd period  4th period  
Volume of production  
Dynamics compared to base period, %  - -11,6 -15,3 10,3 
Dynamics compared to previous period, %  - -11,6 -4,2 30,2 
Capacity utilization  
Dynamics compared to base period, %  - 2,7 3,7 14,4 
Dynamics compared to previous period, %  - 2,7 1,0 10,3 
Total amount of stock of goods at the end of period  
Dynamics compared to base period, %  - 556,9  195,1  -82,2 
Dynamics compared to previous period, %  - 556,9  -55,1 -94,0 
Sales volume on the domestic market of Ukraine  
Dynamics compared to base period, %  - -9,1 -15,4 11,7 
Dynamics compared to previous period, %  - -9,1 -7,0 32,1 
Price on the domestic market of Ukraine  
Dynamics compared to base period, %  - 35,5 59,6 53,7 
Dynamics compared to previous period, %  - 35,5 17,9 -3,7 
Investments  
Dynamics compared to base period, %  - -33,3 -15,9 1,7 
Dynamics compared to previous period, %  - -33,3 26,1 20,8 
Employment  
Dynamics compared to base period, %  - -2,8 -11,0 -12,8 
Dynamics compared to previous period, %  - -2,8 -8,5 -2,0 
Labor productivity  
Dynamics compared to base period, %  - 5,7 16,6 31,3 
Dynamics compared to previous period, %  - 5,7 10,3 12,6 
Profit /loss 
Profit /loss loss profit  profit  profit  
Dynamics compared to base period, %  - -168,0  -870,3  -1155,5  
Dynamics compared to previous period, %  - -168,0  1033,1  37,0 
Consumption  
Dynamics compared to base period, %  - -12,5 -16,9 -1,3 
Dynamics compared to previous period, %  - -12,5 -5,1 18,8 
Share in consumption  
Dynamics compared to base period, %  - 3,9 1,8 13,2 
Dynamics compared to previous period, %  - 3,9 -2,0 11,3 
Table 1 shows that the main indicators of the domestic industry's performance have improved during 
the period of the application of safeguard measures. In the 4th period compared to the base period:  
• Applicant's production increased with trend 10.3 %; 
• Applicant's sales of goods on the domestic market increased by 11.7  %; 
• Applicant's activity became profitable;  
• Total amount of stock of goods decreased by 82.2  %; 
• Applicant's capital investments increased by 1.7  %; 
• Applicant's labor productivity increased by 31.3  %; 
• Applicant's share in consumption increased by 13.2  %. G/SG/N/8/UKR/6/Suppl.2 • G/SG/N/10/UKR/6/Suppl.2  
 
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  This trend indicates the positive effect of the measures on the domestic industry. At the same time, 
it should be noted that the main indicators started to grow only in  the 4th period.  
The reorientation of Belarusian and Russian producers to export to Ukraine due to reduced exports 
to third countries and significant unused production capacity of foreign producers threatens a sharp 
increase in imports, which requires the continued application of special measures on imports 
sulfuric  acid and oleum to Ukraine.  
2  PROVIDE INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN IMPORTS 
OR AN INCREASE IN IMPORTS RELATIVE TO DOMESTIC PRODUCTION  
Table 2  
Indicators  1st period  2nd period  3rd period  4th period  
Volume of imports, ton  50 754,3  38 709,60  39 696,40  28 107,20  
Dynamics compared to base period, %  - -23,7 -21,8 -44,6 
Dynamics compared to previous period, %  - -23,7 2,5 -29,2 
Import price, US dollars/ton  51,4 65,2 64,3 60,4 
Dynamics compared to base period, %  - 26,9 25,1 17,6 
Dynamics compared to previous period, %  - 26,9 -1,4 -6,0 
Like products price on the domestic market of Ukraine, US dollars/tons  
Dynamics compared to base period, %  - 35,5 59,6 53,7 
Dynamics compared to previous period, %  - 35,5 17,9 -3,7 
Like product production cost  
Dynamics compared to base period, %  - 31,1 38,3 30,6 
Dynamics compared to previous period, %  - 31,1 4,8 -4,9 
Imports relative to production of domestic industry  
Dynamics compared to base period, %  - -13,7 -7,7 -49,8 
Dynamics compared to previous period, %  - -13,7 7,0 -45,6 
According to the findings investigation authority, during the 1st period of the application of safeguard 
measures imports of product under review decreased in absolute terms and relative to domestic 
production.  
The price level of imports to Ukraine was lower than the price level of like product and even lower 
than the c ost of production of like products of domestic producers.  
3  PRECISE DESCRIPTION OF THE PRODUCT INVOLVED  
Sulfuric acid and oleum classified under UKT  ZED code 2807 00 00 00.  
4  DESCRIPTION OF ANY PART OF THE IMPORTED GOODS THAT WILL NO LONGER BE 
SUBJECT TO THE MEASURE  
Not applicable.  
5  PRECISE DESCRIPTION OF THE PROPOSED MEASURE  
The level of the quota should be increased by 5 % annually during measures validity . 
Table 3 
Quota for the 1st year period  Quota for the 2nd year period  Quota for the 3rd year period  
50 607 ton  53 137 ton 55 974 ton G/SG/N/8/UKR/6/Suppl.2 • G/SG/N/10/UKR/6/Suppl.2  
 
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  6  PROPOSED DATE OF INTRODUCTION OF THE MEASURE  
1 September 2021.  
7  EXPECTED DURATION OF THE MEASURE  
The safeguard measures are planned to be extended for the period of 3 years:  
1st year period – 1 September 2021 – 31 August 2022;  
2nd year period – 1 September 2022 – 31 August 2023;  
3rd year period – 1 September 2023 – 31 August 2024.  
8  PROPOSED DATE FOR T HE REVIEW OF A MEASURES WITH A DURATION OF MORE THAN 
THREE YEARS  
Not applicable.  
9  PROVIDE EXPECTED TIMETABLE FOR PROGRESSIVE LIBERALIZATION OF THE MEASURE  
According to Article 18 of the Law of Ukraine "On Application of Safeguard Measures against Imports 
to Ukraine" and Article 7.4 of the Agreement on Safeguards, the measure will be liberalized as stated 
in the Section 5.  The level of the quota should be increased by 5 % annually during measures 
validity . 
10  INVITATION FOR CONSULTATIONS  
In accordance with Article 12.3 of the Safeguards Agreement, Ukraine is ready to consult with those 
Members that have a substantial interest as exporters of the product concerned to exchange views 
on the measure proposed.  
The consultations will be held virtually before 27 August  2021. Members wishing to attend the 
consultation should contact directly at:  
postolnikova@me.gov.ua , tradedefence@me.gov.ua , meconomy@me.gov.ua . 
11  INFORMATION PROVIDED IN CASE OF PROLONGATION OF THE MEASURES  
i. Evidence that the industry concerned is adjusting and that the safeguard measure 
continues to be necessary to prevent or remedy serious injury  
Analysis of data of the domestic industry shows that the application of safeguard measures positively 
influence the adjusting process to the competition conditions. In 2018 - 1st half of 2021, the domestic 
industry partially modernized production equipment, i ntroduced new technologies to improve 
competitiveness. Continue of special measures is necessary for the reconstruction of the exhaust 
gas cleaning system from environmentally harmful substances, the construction of a new gas 
treatment plant; implementatio n of an investment projects for the construction of a new shops for 
the production of sulfuric acid with a capacity of 750 thousand tons per year and 40 thousand tons 
per year.  
However, the established period of the application of the mentioned measures ha s found to be 
insufficient for the adjusting process.  
ii. Reference to the WTO document that notified the initial application of the measure 
G/SG/N/8/UKR/6 - G/SG/N/10/UKR/6 - G/SG/N/11/UKR/4 of 13 July 2018.  
iii. Duration of the measure from initial application ti ll the date at which it will be extended  
Three years.  G/SG/N/8/UKR/6/Suppl.2 • G/SG/N/10/UKR/6/Suppl.2  
 
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  iv. Precise description of the measure in place prior to the date of extension:  
The safeguard measures in respect of import to Ukraine of sulfuric acid and oleum regardless the 
country of origin and export was applied due to the decision of the Interdepartmental Commission 
for International Trade No. SP -391/2018/4411 -05 of 2 July 2018.  
The notice on the mentioned decision was published in the official newspaper "Uryadoviy Courier" 
No. 122 of 4 July 2018  (https://goo.gl/enM6tG ). 
On 2 September 2020 Ukraine made the decision No SP -459/2020/4411 -03 to review and liberalize 
the safeguard measures applied by the Decision No SP - 391/2018/4411 -05 of 2 July 2018, by 
establishing total import volume at 48,197 tons for all countries for a 3rd year period, that starts 
from 1 September 2020 and ends on 31 August 2021  (official newspaper "Uryadoviy Courier" 
https://tinyurl.com/y xvdwh38 ). 
12  INFORMATION ON MAJOR EXPORTING COUNTRIES AND EXCLUSIONS FOR REASONS 
OTHER THAN THOSE MENTIONED IN ARTICLE 9.1 OF THE SAFEGUARDS AGREEMENT  
i. Major exporting countries  
The share of the total imports into Ukraine of products subject under review indic ated in Table  4. 
Table 4 
Country of origin  4th period  
Republic of Belarus  50,8 %  
Russian Federation  49,1 %  
Other countries  0,1 %  
13  PUBLICLY AVAILABLE DOCUMENT CONTAINING THE RELEVANT DECISION MADE BY 
THE COMPETENT AUTHORITY IS ATTACHED, IN AN ELECTRONIC FORM, AND CAN BE 
FOUND BY THE FOLLOWING LINK  
Not applicable.  
 
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