WORLD TRADE
ORGANIZATIONG/SG/N/8/CZE/4
G/SG/N/10/CZE/4G/SG/N/11/CZE/5
25 February 2003
(03-1159)
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
CZECH REPUBLIC
The following notification, dated 19 February 2003, has been received from the Permanent
Mission of the Czech Republic.
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Pursuant to Article 12.1 (b), (c) of the Agreement on Safeguards and in light of the agreed
format for notifications (G/SG/W/1, 23 February 1995), the Czech Republic hereby submits a
notification to the Committee on Safeguards of its intention to extend the safeguard measure applied
to imports of sugar.
The notification of the initial application of this safeguard measure, covering also the
imposition of a provisional measure as well as the decision not to apply the measure to developing
countries under Article 9.1 of the Agreement on Safeguards, can be found in documents
G/SG/N/6/CZE/1 and Suppl.1, G/ SG/N/7/CZE/1 and Suppl.1; G/ SG/N/8/CZE/1 and Suppl.1 and
Corr.1, G/SG/10/CZE/1 and Suppl .1 and Corr.1, G/SG/N/11/CZ E/1 and Suppl.1 and Corr.1.
Consistent with Article 12.3 of the Agreement on Safeguards, the Czech Republic is prepared
to consult with those Members having a substantial interest as exporters of the product concerned.G/SG/N/8/CZE/4
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1. Evidence of serious injury or threat thereof caused by increased imports
2. Information on whether there is an absolute increase in imports or an increase in import
relative to domestic production
The proceeding to extend the safeguard measure applied to imports of sugar was initiated on
17 July 2002 (Commercial Bulletin No. 29/2002) as a result of a request made by the company
Pražská cukerní spole čnost TTD, a.s., acting pursuant to Article 25(1) of Act No.62/2000 Coll., on
Some Measures in the Export or Import of Pr oducts and on the Licensing Procedure and on the
Change of Some Acts.  The request contained evidence of the persistence of serious injury to thedomestic industry of the said product and that the industry is in a process of adjustment.
It is concluded that during the period of th e application of the safeguard measure from 2000 to
2002, imports of sugar increased by 12 per cent in terms of quantity.  The growth of imports was
particularly accentuated in 2002 when the imports of sugar increased by 23,4 per cent in comparisonwith  2001.  The increased imports occurred in the period which was marked by the beginning of the
recovery of domestic industry from the disruptions.  The imports in value decreased by 3,8 per cent.
The absolute increase in imports of the product concerned was due to progressive annual
increases of tariff quotas within which no additional duty was required to be paid (for further detailsplease refer to section 9(iv)).  However, important quantities were also imported in excess of the tariff
quotas.  This development was attributable to decrease of import prices of 14 per cent between 2002
and 2000, which contributed to undercutting of the domestic industry's prices.
It is further considered that the share of imports in domestic sales increased from 8,6 per cent
in 2000 to 8,8 per cent in 2002.  This increased market penetration coincided with a stagnation of
domestic consumption .
2000 2001 2002
Imports of sugar in tons 27,624 25,072 30 943
Share of imports in domestic production 6.4 5.1 5,8
Share of imports in domestic sales 8.6 9.1 8,8
3. Precise description of the product involved
The product subject to the safeguard measure is sugar provided for in headings 1701 of the
Harmonized system – “Cane or beet sugar and chemically pure sucrose, in solid form”.
4. Precise description of the proposed measure
It is proposed that the safeguard measure in the form of tariff quotas, in excess of which an
additional duty will have to be paid, be extended.  The tariff quota amount  will continue to be
increased by 1 800 tons in each following year so as to ensure that the measure is not more restrictivethan it was at the end of the initial period and continues to be liberalized.
The additional duty to be paid above the tariff quotas is set at 80 per cent with a minimum of
13,50 CZK /kg.  Individual country allocations will be established for sugar imported from the  EU,
the Republic of Poland and the “other countries” category.
The measure will be applied to all imports of sugar irrespective of their origin except imports
originating in the Slovak Republic and in developing countries.  The import of sugar originating in theSlovak Republic is subject to the regulations adopted under the Customs Union Agreement betweenG/SG/N/8/CZE/4
G/SG/N/10/CZE/4
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the Czech Republic and the Slovak Republic.  Developing countries - Members of WTO - are
excluded from the application of the measure in accordance with the provision of Article 9.1 of the
Agreement on Safeguards.
Period Tariff Quota
Products originating in the country
EU The Republic
of PolandOther
countries
From 11 March 2003 to 31 March 2003 300 tons
(4500-4200)125 tons
(1 875-1750)25 tons
(375-350)
From 1 April 2003 to 30 June 2003 4 500 tons 1875 tons 375 tons
From 1 July 2003 to 30 September 2003 4 500 tons 1875 tons 375 tons
From 1 October 2003 to 31 December 2003 4 500 tons 1875 tons 375 tons
From 1 January 2004 to 31 March 2004 4 800 tons 2000 tons 400 tons
From 1 April 2004 to 30 June 2004 4 800 tons 2000 tons 400 tons
From 1 July 2004 to 30 September 2004 4 800 tons 2000 tons 400 tons
From 1 October 2004 to 31 December 2004 4 800 tons 2000 tons 400 tons
5. Proposed date of introduction of the measure
As it is verified that there is evidence that the safeguard measure is still necessary to prevent
or remedy serious injury and that the domestic industry is undergoing a process of adjustment, it is
proposed to extend its application as of March 11, 2003.
6. Expected duration of the measure
The proposed measure will be applied for the maximum period not exceeding
31 December 2004.
7. Not applicable
8. Expected timetable for progressive liberalization of the measure
The measure will be liberalized through an annual increase of the tariff quota amount by
1 800 tons .
9. (i) Evidence that the industry concerned is adjusting and that the safeguard measures
continues to be necessary to prevent or remedy serious injury
The investigation has determined that the import of sugar had decreased until 2001.
Nevertheless the recuperation of the domestic sugar industry has started only in 2002 because of the
disruption of the domestic sugar market caused by increased imports of substitutes of sugar in 2000and cocoa powder in 2001.  Since 2002 the stabilization of domestic sugar producers and the domestic
sugar market has started.  Comparing the time periods January–September 1999-2002, it is evident
that domestic sugar sales increased for the first time significantly in 2002.  The domestic sugar
industry has been adjusting during the period of application of the safeguard measure by mergers of
the smaller companies to bigger associations with the aim to make the production more effective, to
decrease the production costs, and to raise productivity of labour.
The two main sources of exports to the Czech Republic are the EU and the Republic of Poland.
The relevant tariff quotas had been exhausted in 2002.  This suggests that the termination or significant
expansion of the quotas would lead to a significant increase in imports in the near future.  Moreover, asG/SG/N/8/CZE/4
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the domestic sugar market was stabilized in 2002 after its disruption caused by import surges of
substitutes of sugar in 2000 and cocoa powder in 2001 and consequent adoption of safeguard measures
for these products, the import of sugar could increase again.  This trend is already indicated by thedevelopment of imports of sugar in 2002. Increasing imports, import prices lower than domestic sugar
prices, and huge world stocks of sugar are the factors, which threaten to cause serious injury to the
domestic sugar industry.  It is evident that the abolition of the existing safeguard measure would lead to
increased imports, which would stop the positive development of domestic sugar industry in 2002.
As a result, the safeguard measure continues to be necessary to prevent or remedy serious
injury.
(ii) Reference to WTO documents that notified the initial application of the measure
G/SG/N/6/CZE/1 and Suppl.1
G/SG/N/7/CZE/1 and Suppl. 1
G/SG/N/8/CZE/1 and Suppl. 1 and Corr. 1G/SG/N/10/CZE/1 and Suppl. 1 and Corr. 1
G/SG/N/11/CZE/1 and Suppl. 1 and Corr. 1
(iii) Duration of the measure from initial application till the date at which it will be
extended
The measure was put in place on 12 March 1999 (the provisional measure on 12 March 1999
and the definitive measure on 20 September 1999) and is applied until 11 March 2003.
(iv) Precise description of the measure in place prior to the date of extension
Tariff quota
Products originating in the countryPeriod
EU The Republic
of PolandOther
countries
From 20 September 1999 to 31 December 1999 3,000 tons 1,250 tons 250 tons
From 1 January 2000 to 31 March 2000 3,300 tons 1,375 tons 275 tons
From 1 April 2000 to 30 June 2000 3,300 tons 1,375 tons 275 tons
From 1 July 2000 to 30 September 2000 3,300 tons 1,375 tons 275 tons
From 1 October 2000 to 31 December 2000 3,300 tons 1,375 tons 275 tons
From 1 January 2001 to 31 March 2001 3,600 tons 1,500 tons 300 tons
From 1 April 2001 to 30 June 2001 3,600 tons 1,500 tons 300 tons
From 1 July 2001 to 30 September 2001 3,600 tons 1,500 tons 300 tons
From 1 October 2001 to 31 December 2001 3,600 tons 1,500 tons 300 tons
From 1 January 2002 to 31 March 2002 3,900 tons 1,625 tons 325 tons
From 1 April 2002 to 30 June 2002 3,900 tons 1,625 tons 325 tons
From 1 July 2002 to 30 September 2002 3,900 tons 1,625 tons 325 tons
From 1 October 2002 to 31 December 2002 3,900 tons 1,625 tons 325 tons
From 1 January 2003 to 11 March 2003 4,200 tons 1,750 tons 350 tonsG/SG/N/8/CZE/4
G/SG/N/10/CZE/4
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NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 UPON TAKING A DECISION NOT
TO APPLY THOSE PROVISIONAL SAFEGUARD MEASURES TO CERTAIN PRODUCTS
ORIGINATING IN DEVELOPING COUNTRIES.
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 applied 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 th e WTO listed in Government Regulation 534/2002
Coll., issuing the Customs Tariff and establishing rates of import tariffs on goods originating in
developing countries and least developed countries and the terms for their application.  A list of thesecountries is attached in Annex 1 to this notification.
4. Subsequently, if there is a change in the list of developing countries exempted from 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 the
developing countries remaining on the list, and the date on which the safeguardmeasure 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 thedeveloping 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/CZE/4
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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 MALIVES
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
CONGOQA 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 SURINAME
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 ZAMBIAG/SG/N/8/CZE/4
G/SG/N/10/CZE/4
G/SG/N/11/CZE/5
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JM JAMAICA ZW ZIMBABWE
JO JORDAN
KE KENYA
KW KUWAIT
KG KYRGYZ REPUBLIC
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